Detailed Summary

<b>(This measure has not been amended since it was passed by the House on January 16, 2008. The summary of that version is repeated here.)</b>

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

(Sec. 104) Authorizes appropriations for FY2008 for: (1) defense-wide procurement; and (2) National Guard and reserve equipment.

<b>Subtitle B: Army Programs </b>- (Sec. 111) Authorizes the Secretary of the Army, beginning with the FY2008 program year, to enter into a multiyear contract for procurement of: (1) M1A2 Abrams system enhancement package upgrades; (2) M2A3/M3A3 Bradley fighting vehicle upgrades; (3) conversion of CH-47D helicopters to the CH-47F configuration; and (4) CH-47F helicopters.

(Sec. 115) Places an FY2008 limitation on the obligation or expenditure of funds for the Warfighter Information Network-Tactical program until the Director of Operational Test and Evaluation makes certain certifications concerning such program to the congressional defense and appropriations committees.

(Sec. 116) Prohibits the use of specified Army procurement funds to close the production line for the Army Tactical Missile System program until after the Secretary of the Army submits to the defense and appropriations committees: (1) a certification that the missions of such System can be performed by other weapons systems; and (2) a plan to mitigate any shortfalls in the industrial base that would be created by such closure.

(Sec. 117) Prohibits Army weapons and tracked combat vehicle funds from being obligated or expended for procurement of the Stryker Mobile Gun System until 30 days after the Secretary of the Army certifies to Congress its operational effectiveness in anticipated deployment missions. Authorizes the Secretary of Defense (Secretary) to waive such certification requirement in the national security interest, after congressional notification.

<b>Subtitle C: Navy Programs </b>- (Sec. 121) Authorizes the Secretary of the Navy, beginning with the FY2009 program year, to enter into multiyear contracts for procurement of Virginia-class submarines and government-furnished equipment. Prohibits such Secretary from entering into such a contract until 30 days after certification to the defense and appropriations committees with respect to contract specifications.

(Sec. 122) Directs the Secretary of the Navy to: (1) study the effectiveness of current financing mechanisms for providing incentives for contractors to make shipbuilding capital expenditures, and to assess potential capital incentives that would lead to ship construction or life-cycle cost savings to the government; and (2) report study results to the defense and appropriations committees.

(Sec. 123) Expresses the sense of Congress that the preservation of a robust domestic skilled workforce is required for the national shipbuilding infrastructure and essential to the construction of Navy ships. Directs the Secretary of the Navy to: (1) determine the average number of H2B visa workers employed by the major shipbuilders in the construction of Navy ships during 2007; and (2) report results to the defense and appropriations committees.

(Sec. 124) Requires the Secretary of the Navy to: (1) report to the defense and appropriations committees the results of any shipbuilding production readiness review; and (2) certify to such committees that the findings of any such review support commencement of shipbuilding construction.

(Sec. 125) Amends the National Defense Authorization Act (NDAA) for Fiscal Year 2006 to outline specified costs and government liability limits under the Navy's Littoral Combat Ship program, including a cost limit of $460 million per vessel. Authorizes the Secretary of the Navy to adjust such limit by the amounts of: (1) increases or decreases in costs attributable to compliance with changes in federal, state, or local laws enacted after September 30, 2007; and (2) outfitting costs and costs required to complete post-delivery test and trials.

<b>Subtitle D: Air Force Programs </b>- (Sec. 131) Prohibits the obligation or expenditure of certain funds for the Joint Cargo Aircraft until 30 days after the Secretary of Defense (Secretary) has submitted specified assessments and studies, and a related certification, to the defense and appropriations committees.

(Sec. 133) Amends the John Warner National Defense Authorization Act for Fiscal Year 2007 (Warner Act) to repeal the requirement that the Secretary of the Air Force maintain retired C-130E tactical airlift aircraft for possible recall. Makes such repeal effective 30 days after such Secretary submits a required fleet mix analysis study to the defense and appropriations committees.

(Sec. 134) Prohibits the Secretary of the Air Force from retiring C-130E/H tactical airlift aircraft during FY2008. Provides an exception for up to 24 C-130E aircraft, as long as such Secretary: (1) maintains the aircraft in a condition that would allow their recall to future service; and (2) submits the fleet mix analysis study to the defense and appropriations committees.

(Sec. 135) Prohibits the Secretary of the Air Force from retiring more than 48 KC-135E aerial refueling aircraft in FY2008. Authorizes such Secretary to retire up to 37 more of such aircraft during FY2008, after a specified certification to the defense and appropriations committees.

(Sec. 136) Authorizes the Secretary of the Air Force to transfer to the government of Iraq not more than three C-130E tactical airlift aircraft which were allowed to be retired under theWarner Act.

(Sec. 137) Requires the Secretary of the Air Force to maintain a primary B-52 bomber aircraft inventory of 63, a backup inventory of 11, and an attrition reserve inventory of at least two. Increases from 45 to 60 days the required prior notification to the defense committees before Department of Defense (DOD) funds may be used for the retirement of any such aircraft.

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

<b>Subtitle B: Program Requirements, Restrictions, and Limitations </b>- (Sec. 211) Directs the Secretary of the Army to complete an operational test and evaluation of the Future Combat Systems (FCS) network in a realistic environment simulating operational conditions. Requires a test and evaluation report from the Director, Operational Test and Evaluation (OTE) to the defense and appropriations committees. Provides certain FCS funding limitations until submission of such report (with an authorized waiver of such limitations by the Secretary of Defense for national security purposes). Excludes the non-line-of-sight cannon from the funding limitations.

(Sec. 212) Prohibits the obligation or expenditure of more than 50% of the funds for the Joint Light Tactical Vehicle for the acquisition program phase of systems development and demonstration for FY2008 and thereafter until the Under Secretary of Defense for Acquisition, Technology, and Logistics (Under Secretary) certifies program compliance to the defense and appropriations committees.

(Sec. 213) Directs the Secretary to ensure the obligation and expenditure in FY2008 and thereafter of sufficient amounts under the Joint Strike Fighter program for the development and procurement of two options for the propulsion system for such Fighter.

(Sec. 214) Prohibits funds from being used for the defense-wide manufacturing science and technology program until the Director of Defense Research and Engineering makes certain project assurances.

(Sec. 215) Earmarks specified funds for transfer to the Advanced Sensor Applications program. States that program management shall reside within the Office of the Under Secretary of Defense for Intelligence until certain conditions are met.

(Sec. 216) Requires the Secretary to: (1) undertake live-fire tests and a comprehensive assessment of foreign and domestic active protection systems suitable for protecting wheeled tactical vehicles for the consideration of the adoption of such systems in defense acquisition programs; and (2) report to the defense and appropriations committees on such tests and assessment.

<b>Subtitle C: Missile Defense Programs </b>- (Sec. 221) Requires the Director of the Missile Defense Agency (MDA) to make available to the OTE Director the results of all tests and evaluations conducted by the MDA.

(Sec. 222) Directs the Secretary to enter into an agreement with a federally funded research and development center (FFRDC) to carry out an independent study to examine, and make recommendations with respect to, the current and future structure, roles, and missions of the MDA. Requires a results report from the FFRDC to the defense committees. Provides funding.

(Sec. 223) Requires the budget justification materials submitted to Congress in support of the DOD budget for any fiscal year after 2009 to set forth separately requested amounts for the MDA for: (1) RDT&amp;E; (2) procurement; (3) operation and maintenance; and (4) military construction. Revises the MDA budget structure for FY2009. States that funds appropriated for FY2009 for RDT&amp;E for the MDA: (1) may be used for the development and fielding of ballistic missile defense (BMD) capabilities; and (2) may not be used for military construction or procurement or advance procurement of long lead items. Requires the MDA Director to submit to the defense committees a plan for transitioning the MDA from using exclusively RDT&amp;E funds to using procurement, military construction, operation and maintenance (O&amp;M), and RDT&amp;E funds for appropriate budget activities, and for transitioning from incremental funding to full funding for fiscal years after 2010. Outlines objectives for MDA acquisition activities. Specifies BMD system elements.

(Sec. 224) Prohibits funds from being obligated or expended to replace the unitary warhead on the SM-3 Block IIA missile with the Multiple Kill Vehicle until after the Secretary makes certain certifications to Congress.

(Sec. 225) Amends the NDAA for Fiscal Year 2002 to extend through FY2013 Comptroller General (CG) assessments of BMD programs.

(Sec. 226) Prohibits the obligation or expenditure of funds for the procurement, construction, or deployment of a long-range missile defense system in Europe until specified conditions have been met, including that: (1) the governments of the countries in which major components of the system are proposed to be deployed have each given final approval to any agreements concerning the proposed deployment; and (2) the Secretary has certified to Congress the reliability of the proposed interceptor to be deployed. Directs the Secretary to select a FFRDC to conduct an independent assessment of options for ballistic missile defense for forward deployed forces of the United States and its allies in Europe. Requires the FFRDC to report assessment results to the Secretary and the defense and appropriations committees. Provides funding.

(Sec. 227) Expresses the sense of Congress that the United States should have an active program of BMD cooperation with Israel, and should take steps to improve the coordination, interoperability, and integration of their mutual BMD capabilities. Requires a report from the Secretary to the defense and appropriations committees on the status of missile defense cooperation between the two countries.

(Sec. 228) Prohibits funds from being obligated or expended to deploy more than 40 ground-based interceptors at Fort Greely, Alaska, until the Secretary certifies to Congress that the Block 2006 ground-based midcourse defense element of the BMD system has demonstrated a high probability of working in an effective manner.

(Sec. 229) States that it is the policy of the United States to: (1) develop, test, and deploy an effective defense against the threat of Iranian ballistic missiles; (2) encourage the North Atlantic Treaty Organization (NATO) to accelerate efforts to protect its territory against the threat of Iranian short- and medium-range ballistic missiles, and to acquire missile defense systems needed to protect against such threat; and (3) make such missile defenses fielded by the United States in Europe integrated with or complimentary to such missile defenses fielded there by NATO.

<b>Subtitle D: Other Matters </b>- (Sec. 231) Directs the Secretary to: (1) coordinate and manage human systems integration activities throughout DOD acquisition programs; and (2) designate a senior DOD official to be responsible for such effort.

(Sec. 232) Authorizes DOD laboratory and research centers to make available to any person or entity facilities, services, and equipment of any government laboratory or research center in order to promote accelerated development of critical technologies and technology transfer initiatives that support DOD, as long as the facilities, services, and equipment provided will not be in direct competition with the domestic private sector.

(Sec. 233) Modifies the cost-sharing requirement under the Technology Transition Initiative.

(Sec. 234) Requires a report from the Secretary to the defense committees on implementation of the technologies and processes developed under the Manufacturing Technology Program.

(Sec. 235) Requires the OTE Director to assess and report on the sufficiency of such Director's test and evaluation staff.

(Sec. 236) Amends the NDAA for Fiscal Year 2006 to repeal the requirement for reports from the Secretary to the defense and appropriations committees on each technology area review and assessment.

(Sec. 237) Reduces from 30 to 7 days after notification of the defense and appropriations committees the wait required before the obligation of funds for the foreign comparative test program.

(Sec. 238) Directs the Secretary to develop, and update on a biennial basis, a strategic plan for the Manufacturing Technology program.

(Sec. 239) Amends the NDAA for Fiscal Year 1995 to authorize (current law requires) all solicitations under the Defense Experimental Program to Stimulate Competitive Research to be made to, and awards made through, the state committees established for such Program.

(Sec. 240) Amends the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Stump Act) to: (1) revise program purposes under the defense nanotechnology research and development program; (2) replace the Director of Defense Research and Engineering with the Under Secretary as the program's administrator; (3) include under program activities the development of a strategic plan for the National Nanotechnology Initiative; and (4) require the Under Secretary to report on the program to the defense and appropriations committees in each of 2009, 2011, and 2013.

(Sec. 241) Directs the Secretary to: (1) utilize a FFRDC to conduct an assessment of the effectiveness of the Defense Experimental Program to Stimulate Competitive Research; and (2) report assessment results to the defense committees.

(Sec. 242) Directs the Secretary to report to the defense and appropriations committees a cost-benefit analysis of the proposed funding reduction for the high energy laser systems test facility.

(Sec. 243) Requires the: (1) Secretary to submit to the defense and appropriations committees a research, development, and testing plan for prompt global strike program objectives for FY2008-FY2013; and (2) Under Secretary to submit to such committees a plan for the obligation and expenditure of funds available for such program for FY2008.

<b>Title III: Operation and Maintenance - Subtitle A: Authorization of Appropriations </b>- (Sec. 301) Authorizes appropriations for FY2008 for 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 to transfer specified funds to the Moses Lake Wellfield Superfund Site Special Account to reimburse the Environmental Protection Agency (EPA) for costs incurred in overseeing a remedial investigation and feasibility study performed by the Army.

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

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

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

(Sec. 315) Requires the Secretary of the Navy to identify and notify directly any individuals who were served by the Tarawa Terrace water distribution system at Camp Lejeune, North Carolina, during the years 1958 through 1987 that they may have been exposed to drinking water contaminated with tetrachloroethylene (PCE). Requires such Secretary to also: (1) notify individuals who were served by the Hadnot Point water distribution system of contaminated drinking water to which they may have been exposed; and (2) identify and notify directly civilian employees who worked at Camp Lejeune during the period identified in the study by the Agency for Toxic Substances and Disease Registry (ATSDR) of the drinking water contamination to which they may have been exposed. Requires the ATSDR to develop a health survey of individuals possibly contaminated, to be distributed by the Secretary of the Navy in connection with the required notifications.

<b>Subtitle C: Workplace and Depot Issues </b>- (Sec. 321) Allows funds in the Defense Information Systems Agency Working Capital Fund to be used for expenses directly related to technology upgrades to the Defense Information Systems Network, with limitations. Requires an annual report on the use of such authority from the Director of the Defense Information Systems Agency to the defense and appropriations committees. Terminates the authority on October 1, 2011.

(Sec. 322) Requires, with respect to public-private competition requirements prior to the conversion to contractor performance of certain functions currently performed by DOD civilian employees, a comparison of retirement system costs relating to employer-sponsored health insurance plans. Requires consultation with affected DOD employees by DOD officers making such conversion determinations.

(Sec. 323) Prohibits a military department or defense agency from being required to conduct such a public-private competition at the end of the period specified in the performance agreement for any DOD function performed by DOD civilian employees.

Sec. 324) Directs the Under Secretary of Defense for Personnel and Readiness to devise and implement guidelines and procedures to ensure that consideration is given to regularly using DOD civilian employees to perform new functions and functions performed by contractors which could be performed by such employees. Requires special consideration to be given for certain functions, including: (1) one performed by civilian DOD employees at any time during the previous ten years; and (2) one associated with the performance of an inherently governmental function. Provides limitations on competitions for new and expanded functions. Requires: (1) DOD to identify functions currently performed by contractors that could be performed by DOD civilian employees; and (2) the DOD Inspector General to report to the defense and appropriations committees on the implementation of this section.

(Sec. 325) Prohibits the Director of the Office of Management and Budget (OMB) from directing or requiring the Secretary or the Secretary of the military department concerned (Secretary concerned) to prepare for, undertake, continue, or complete a public-private competition or direct conversion of a DOD function to performance by a contractor under OMB Circular A-76, or any other successor regulation, directive, or policy. Prohibits any such Secretary from undertaking such action on behalf of OMB. Requires the DOD Inspector General to: (1) review all of the Secretaries' compliance with such prohibition; and (2) make an interim and final report to the defense and appropriations committees on review results.

(Sec. 326) Includes as an &quot;interested party&quot; for purposes of submitting bid protests with respect to public-private competitions conducted under OMB Circular A-76: (1) any official who submitted the agency tender in such competition; and (2) any individual representing the federal employees engaged in the performance of the activity or function for which the public-private competition is conducted in a protest that relates to such competition. Provides for expedited action in such protests, and authorizes an interested party to intervene in any related civil action.

(Sec. 327) Amends the Office of Federal Procurement Policy Act (OFPPA) to prohibit any function of an executive agency performed by ten or more agency civilian employees from being converted to performance by a contractor unless the conversion is based on the results of a public-private competition that, among other things: (1) formally compares the cost of performance by agency employees with the cost of performance by a contractor; and (2) would require continued performance by agency personnel unless the cost difference the lesser of 10% of the personnel-related costs of performance or $10 million. Requires each employee determining whether such performance should be converted to consult with affected agency civilian employees at least monthly during such determination. Requires the head of an executive agency, before commencing a required public-private competition, to report to Congress certain information with respect to such competition. Exempts from the public-private competition requirements procurements of products and services of the blind and other severely handicapped persons. Makes such requirements inapplicable during a period of war or national emergency.

(Sec. 328) Extends through FY2014 the authority for Army industrial facilities to engage in cooperative activities with non-Army entities to carry out specified military or commercial projects. Requires: (1) annual reports from the Secretary of the Army to Congress on the use of such authority; and (2) a one-time report from such Secretary to the defense and appropriations committees on the advisability of making such authority permanent and eliminating the limitation on the number of contracts that may be entered into under such authority.

(Sec. 329) Amends the NDAA for Fiscal Year 2004 to authorize the Secretary concerned to carry out a demonstration project under which workers who are certified at the journey level as able to perform multiple trades are promoted one grade level. Extends the multi-trades demonstration project under such Act through FY2013. Requires such Secretaries to recommend whether the multi-trade authority should become permanent.

(Sec. 330) Authorizes the Secretary of the Army to use an Army working capital fund for a product improvement pilot program on the procurement and installation of a component or subsystem of a weapon system platform or major end item that would improve the reliability, extend the useful life, enhance safety, lower maintenance costs, or provide performance enhancement of the platform or end item. Requires the Assistant Secretary of the Army for Acquisition, Logistics, and Technology to: (1) report annually to the defense and appropriations committees on the use of such authority; and (2) recommend whether the authority should be made permanent.

<b>Subtitle D: Extension of Program Authorities </b>- (Sec. 341) Amends the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Spence Act) to extend through FY2010 the arsenal support demonstration program (and a related report requirement).

(Sec. 342) Amends the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Reagan Act) to: (1) allow members of the Armed Forces deployed in contingency operations until the end of FY2007 to purchase protective helmet pads; and (2) give such members up to one year following such purchase to submit a cost reimbursement claim to DOD.

(Sec. 343) Amends the Stump Act to extend through FY2012 the temporary authority for the contractor performance of DOD security guard functions.

<b>Subtitle E: Reports </b>- (Sec. 351) Requires: (1) information concerning the use of National Guard equipment to respond to domestic emergencies or major disasters to be included in an annual report from the Secretary to Congress on National Guard and reserve personnel equipment; (2) an assessment of National Guard readiness to support the National Response Plan for support to civil authorities to be included in quarterly National Guard personnel and unit readiness reports; and (3) a report from the Secretary to the defense and appropriations committees on the implementation of this section.

(Sec. 352) Requires the Secretary to report annually to the defense and appropriations committees on the status of the materiel in the prepositioned stocks as of the end of the prior fiscal year. Directs the CG, until the end of FY2015, to review each report and report review results to such committees.

(Sec. 353) Amends the Warner Act to include, in a required report, the reporting of additional incremental costs resulting from the deployment and redeployment of forces to Iraq and Afghanistan above the levels deployed to such countries on January 1, 2007.

(Sec. 354) Amends the Warner Act to extend and expand the elements required in a report from the CG relating to readiness of Army and Marine Corps ground forces.

(Sec. 355) Requires the Secretary to report annually to the defense and appropriations committees on improving the readiness of active and reserve components of U.S. ground forces. Directs the CG, for the first five years of the Secretary's reports, to review each report and report review results to such committees.

(Sec. 356) Directs the Secretary to provide for an independent assessment of the viability of the Civil Reserve Air Fleet, to be conducted by a FFRDC selected by the Secretary. Requires the: (1) Secretary to report assessment results to the defense and appropriations committees; and (2) CG to review the independent assessment.

(Sec. 357) Requires a report from the DOD Inspector General to Congress on the physical security of DOD installations and resources.

(Sec. 358) Directs the Secretary to: (1) review DOD training requirements for helicopter operations in high-altitude or power-limited conditions; and (2) report review results to the defense and appropriations committees.

(Sec. 359) Requires: (1) annual reports, in each of 2008 through 2010, from the Secretary of the Air Force to the defense and appropriations committees on efforts made by all the military departments utilizing the Warren Grove Gunnery Range, New Jersey, to provide the highest level of safety; and (2) such Secretary to submit to such committees a master plan for the Range.

(Sec. 360) Directs the Secretary of the Air Force to report to specified congressional committees on Air Force search and rescue capabilities in the northwestern United States.

(Sec. 361) Requires the: (1) Secretary to report to Congress on the relocation of the North American Aerospace Defense Command Center and related functions from Cheyenne Mountain Air Station, Colorado, to Peterson Air Force Base, Colorado; (2) CG to submit to Congress a review of such report; and (3) Secretary of the Air Force to submit to Congress a master infrastructure recapitalization plan for the Cheyenne Mountain Station.

<b>Subtitle F: Other Matters </b>- (Sec. 371) Replaces provisions requiring the Secretary to designate a DOD officer, employee, or standing board or committee as the official or organization responsible for the prevention and mitigation of corrosion of DOD military equipment and infrastructure with provisions establishing an Office of Corrosion Policy and Oversight (headed by a Director) within the Office of the Under Secretary. Gives the Director additional authorities relating to the oversight of corrosion-related training, the development of directives, and interaction with non-DOD corrosion prevention activities, organizations, and research institutions. Includes the use of cooperative corrosion research agreements within the DOD corrosion reduction strategy. Requires annual reports from the Secretary and the CG concerning the use of DOD funds for corrosion prevention and mitigation activities.

(Sec. 372) Authorizes DOD to provide assistance for: (1) a sporting event sanctioned by the U.S. Olympic Committee through the Paralympic Military Program; or (2) certain national or international paralympic sporting events. Limits to $1 million the total amount of such assistance per fiscal year.

(Sec. 373) Authorizes the Secretary to require compliance with reasonable conditions before a member or DOD civilian employee receives full replacement value for personal property lost or damaged while being transported at government expense.

(Sec. 374) Requires the Secretary to provide transportation on DOD aircraft, on a space-available basis, for a member or former member who: (1) is entitled to retired or retainer pay; (2) resides in a commonwealth or possession of the United States; and (3) is referred by a primary care physician to a specialty care provider for services to be provided outside that commonwealth or possession. Requires the Secretary to provide such transportation for one dependent of each member, if the dependent is needed to accompany the member.

(Sec. 375) Authorizes the Secretary concerned to prescribe regulations for the accounting of property of that department and the fixing of responsibility for that property. Prohibits any member from selling or giving any clothing, arms, or equipment furnished by the United States to any person other than another member of the Armed Forces, or to an officer authorized to receive it. Authorizes the seizure of property improperly sold or given away.

(Sec. 376) Permits the Secretary concerned to allow members who have been deployed in support of a contingency operation for at least 30 days to retain combat uniforms and individual equipment issued to that member.

(Sec. 377) Authorizes the Secretary of the Navy to issue arms, tentage, and equipment appropriate for military training to any educational institution at which no unit of the Reserve Officers' Training Corps (ROTC) is maintained, but which has a course in military training attended by at least 50 physically fit students over 14 years of age. Authorizes such Secretary to issue: (1) rifles and appendages that are not existing service models to any educational institution having a uniformed corps of midshipmen of sufficient numbers for target practice; and (2) to any educational institution at which a naval officer is detailed as a professor of naval science, necessary supplies to establish and maintain a camp for the military instruction of students.

(Sec. 378) Extends through 2013 the authority of the Secretary of Transportation to provide insurance and reinsurance for commercial air carriers supporting DOD transportation activities.

<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 FY2008.

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

(Sec. 403) Authorizes the Secretary, for FY2009 and FY2010, to establish specified higher levels for Army and Marine Corps active-duty end strengths in order to support operational missions and achieve transformational reorganization objectives.

(Sec. 404) Increases the authorized end strengths for: (1) Army officers on active duty in the grade of major; and (2) Navy officers on active duty in the grades of lieutenant commander, commander, and captain.

(Sec. 406) Authorizes an increase in the maximum authorized daily average of active-duty enlisted members in pay grade E-9 from 1% to 1.25% of the enlisted force.

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

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

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

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

(Sec. 416) Directs the Secretary to conduct, and report to Congress on, a review of the long-term operational support missions performed by reserve personnel authorized to be on active duty or full-time National Guard duty to provide such support. Requires information on such support personnel to be included in the annual budget justification documents submitted to Congress for FY2009 and thereafter.

(Sec. 417) Increases from 2% to 3% the authorized fiscal year variance in end strengths for Selected Reserve personnel.

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

<b>Title V: Military Personnel Policy - Subtitle A: Officer Personnel Policy </b>- (Sec. 501) Allows officers serving as a lieutenant general, general, vice admiral, or admiral to continue to hold such position for up to 60 days following reassignment from such position, unless placed sooner in another designated position.

(Sec. 502) Excludes from active-duty general and flag officer end strength limitations certain reserve general and flag officers serving on active duty for not more than 365 days.

(Sec. 503) Increases from five to six years the probationary period of commissioned service for active duty and reserve officers prior to discharge for failure of promotion.

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

(Sec. 506) Allows regular Army and Air Force officers (under current law, allows only reserve officers) to reenlist (under certain conditions) in their former enlisted grade.

(Sec. 507) Increases from 22 to 28 the authorized number of permanent professors at the U.S. Military Academy.

(Sec. 508) Authorizes the promotion of Navy career military professors to the grade of captain or colonel. Requires a competitive selection board process to identify those best qualified for promotion. Requires a report to the defense and appropriations committees from the Secretary of: (1) Defense assessing the effectiveness of the revised promotion system; and (2) the Navy on the Navy's utilization of exemptions from authorized officer end strength limits, as well as projections for use of additional exemptions, with respect to such military professors.

<b>Subtitle B: Reserve Component Management </b>- (Sec. 511) Allows a military technician who loses dual (military and civilian) status as the result of a combat-related disability to be retained as a non-dual status technician as long as: (1) the disability does not prevent the person from performing the non-dual status function or position; and (2) the person is not disqualified from performing the non-dual status function or position because of performance, medical, or other reasons. Requires removal from such position no later than 30 days after becoming eligible for an unreduced annuity and attaining 60 years of age.

(Sec. 512) Provides that if the Secretary determines that the number of officers serving in specified health positions within DOD while serving on active status in grades below major or lieutenant commander is critically below the number needed, then the Secretary may authorize the Secretary concerned to credit a person receiving an original appointment as an officer serving in such a health position with a period of constructive service that will result in the grade of captain or lieutenant.

(Sec. 513) Requires reserve officers serving as a lieutenant general or vice admiral to be separated from active status on the later of: (1) 30 days after completing 38 years of commissioned service; or (2) five years after appointment to such grade.

(Sec. 514) Extends from six months to one year the period that National Guard members may be granted temporary federal recognition.

(Sec. 515) Directs the Secretary to ensure that a reserve member who will be called or ordered to active duty for a period of more than 30 days in support of a contingency operation is given a minimum of 30 days' advance notice, with a goal of providing 90 days' advance notice. Authorizes the Secretary to waive such requirement, or provide a shorter notice, during a war or national emergency or to meet mission requirements.

(Sec. 516) Requires the CG to study, and report to the defense committees on, the difficulties of National Guard or reserve personnel to maintain professional or other licensure or certification requirements while on active duty for an extended period of time.

<b>Subtitle C: Education and Training </b>- (Sec. 521) Revises DOD authority to pay tuition expenses for off-duty training or education to authorize the Secretaries concerned to pay tuition assistance to certain members who serve in critical occupational specialties and agree to a specified period of additional service in the Individual Ready Reserve or Selected Reserve . Directs the Secretary to carry out, and report to the defense committees on, a study of the tuition assistance program.

(Sec. 522) Authorizes the Secretary of the Army to modify requirements entered into by cadets in the ROTC who participate in the Guaranteed Reserve Forces Duty Scholarship program to allow the member to meet previously-required reserve service commitments by fulfilling active-duty service commitments as a physician upon graduation from the Uniformed Services University of the Health Sciences.

(Sec. 523) Repeals the 416-person annual limit on the number of ROTC scholarships authorized under the Army Reserve and Army National Guard financial assistance program.

(Sec. 524) Allows medical students at the Uniformed Services University of the Health Sciences and participants in military health professions scholarship and financial assistance programs who have prior active service to continue, while attending medical classes, to receive basic pay based on their former grade and years of service if that pay would be greater than the rate for regular officers in the grade of second lieutenant or ensign. Assigns any commissioned officer detailed to attend medical school to the grade of second lieutenant or ensign while in such school (while allowing pay at a higher rate if their former rate of pay was higher than the second lieutenant or ensign rate).

(Sec. 525) Repeals a provision prohibiting any phased increase in cadet end strength limits at the U.S. Military Academy after the 2007-2008 academic year.

(Sec. 526) Authorizes the National Defense University to award a master of arts degree in strategic security studies to graduates fulfilling requirements at the School for National Security Executive Education.

(Sec. 527) Authorizes the commander of the Air University to award the degree of master of science in flight test engineering to graduates of the Air Force Test Pilot School.

(Sec. 528) Authorizes payment on an accelerated basis of educational assistance for members of the Selected Reserve, or reserve members supporting contingency and certain combat operations, who are: (1) enrolled in an approved program of education not exceeding two years and not leading to an associate, bachelor, masters, or other degree; and (2) charged tuition and fees that exceed 200% of the monthly rate of educational assistance allowance otherwise payable for members of the Selected Reserve. Sets the authorized amount of such assistance at the lesser of: (1) 60% of the established charges for that program of education; or (2) the aggregate amount of educational assistance to which the person remains entitled. Requires such accelerated payments to be charged against any remaining educational assistance of such members. Authorizes educational assistance for reserve members supporting contingency and certain combat operations if such members accumulate three years of such service. (Current law allows such educational assistance for such members who perform two or more continuous years of such service.) Allows reserve members eligible for educational assistance to contribute additional amounts in order to receive an increased amount of such assistance.

(Sec. 529) Entitles to educational assistance certain members of the Selected Reserve affected by force shaping initiatives during FY2007-FY2014.

(Sec. 530) Allows a person who separates from the Selected Reserve after completion of active service in support of contingency and certain other operations under other than dishonorable conditions up to ten years after such separation to utilize their authorized educational assistance entitlement. Allows such a person who then reenters the Selected Reserve to utilize their entitlement for up to ten years following the subsequent separation.

(Sec. 531) Requires the Secretary to: (1) carry out an evaluation of the degree-granting authorities of certain military universities and educational institutions; and (2) report evaluation results to the defense committees.

(Sec. 532) Directs the Secretary of the Army to report to the defense committees on the success of the Senior ROTC financial assistance program in securing the appointment of second lieutenants in the Army Reserve and Army National Guard.

(Sec. 533) Requires a report from the Secretary of each military department to the defense and appropriations committees on the utilization of tuition assistance during FY2007 by military personnel of that department.

(Sec. 534) Allows three named high schools in Suffolk County, New York, to be treated as a single institution for purposes of maintaining a Navy Junior ROTC unit.

(Sec. 535) Directs the Secretary to report to the defense, appropriations, and veterans committees on the transfer from DOD to the Department of Veterans Affairs (VA) of the administration of certain educational assistance programs for members of the reserves. Requires: (1) a review of such report, before report submission, by the Defense Board and the Veterans Affairs Advisory Committee on Education; and (2) a CG assessment of the report as submitted.

<b>Subtitle D: Military Justice and Legal Assistance Matters </b>- (Sec. 541) Allows the Secretary concerned to provide legal assistance to: (1) survivors of deceased members or former members who were dependents of the member or former member at their time of death; and (2) civilian federal employees in locations where legal assistance from non-military providers is not reasonably available.

(Sec. 542) Authorizes judges of the U.S. Court of Appeals for the Armed Forces to administer oaths.

(Sec. 543) Requires judge advocate generals to serve in the grade of lieutenant genera or vice admiral. Redesignates assistant judge advocate generals as deputy judge advocate generals. Increases from 15.7 to 16.3 the percentage of general officers or admirals in a military department that may be appointed above the grade of major general or rear admiral. Excludes such judges from end strength limits for officers serving in grades above major general or rear admiral.

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

Directs the Secretary to develop, and report to the defense committees on, a strategic plan linking DOD missions and requirements for general and flag officers with statutory limits on the numbers of such officers, and current assignment, promotion, and joint officer development policies for such officers.

(Sec. 544) Requires the Secretary to prescribe regulations to prohibit the active participation of military personnel in street gangs.

<b>Subtitle E: Military Leave </b>- (Sec. 551) Increases from 60 to 75, for all military personnel, the number of days of accumulated leave they may carry over from one fiscal year to the next. Terminates such authority on December 31, 2010. Allows personnel serving in support of contingency operations an additional fiscal year after the current fiscal year to retain (without losing) any accumulated leave in excess of 90 days. Allows enlisted personnel who have accumulated more than 120 days of leave to sell back, on a one-time basis, up to 30 days of any leave in excess of the 120-day limit.

(Sec. 552) Authorizes the payment of rest and recuperative leave for up to 20 days for members with a specialty designated by the Secretary concerned whose qualifying tour of duty is longer than 12 months.

<b>Subtitle F: Decorations and Awards </b>- (Sec. 561) Authorizes and requests the President to award the Medal of Honor to: (1) Leslie H. Sabo, Jr., for acts of valor during the Vietnam War; (2) Henry Svehla for acts of valor during the Korean War; (3) Woodrow W. Keeble for acts of valor during the Korean War; (4) Private Philip G. Shadrach for acts of valor during the Civil War; and (5) Private George D. Wilson for acts of valor during the Civil War.

<b>Subtitle G: Impact Aid and Defense Dependents Education System </b>- (Sec. 571) Earmarks specified FY2008 DOD O&amp;M funds for the continuation of DOD assistance to local educational agencies (Leas) that have significant numbers of military dependent students or experience significant enrollment changes due to base closures, force structure changes, or force relocations.

(Sec. 572) Earmarks specified DOD O&amp;M funds for impact aid for children with severe disabilities under provisions of the Elementary and Secondary Education Act of 1965.

(Sec. 573) Amends the Warner Act to include dependents of non-DOD employees employed on federal property in the plan and annual reports required to identify and assist Leas experiencing growth in enrollment due to force structure changes, relocation of military units, or base closures and realignments.

(Sec. 574) Amends the Defense Dependents' Education Act of 1978 to authorize the Secretary to pay private boarding school tuition for military dependents in overseas areas not served by the defense dependents' school system.

<b>Subtitle H: Military Families</b>- (Sec. 581) Establishes the Department of Defense Military Family Readiness Council to provide certain advisory, monitoring, and assessment services with respect to DOD military family readiness programs and activities. Requires annual reports from the Council to the Secretary and the defense and appropriations committees. Directs the Secretary to: (1) develop policy and plans for DOD for the support of military family readiness; and (2) report annually to the defense and appropriations committees on the policy developed.

(Sec. 582) Directs the Secretary to establish a national combat veteran reintegration program (to be known as the Yellow Ribbon Reintegration Program) to provide National Guard members and their families with information, services, referral, and outreach opportunities throughout the entire deployment cycle. Requires the program to consist of informational events and activities for such members, their families, and community members through the following phases of the deployment cycle: (1) pre-deployment; (2) deployment; (3) demobilization; and (4) post-deployment-reconstitution. Requires the: (1) Under Secretary of Defense for Personnel and Readiness to establish the Office for Reintegration Programs to administer state National Guard reintegration programs; (2) Office to establish a Center for Excellence in Reintegration; (3) Secretary to appoint an advisory board to analyze and report areas of success and areas for necessary improvements; and (4) advisory board to submit an initial and annual report to the defense committees. Describes each deployment phase and authorized activities during such phase. Provides Program funding (with an equivalent offset). Authorizes the Office to develop outreach programs for members and their families concerning assistance and services available under the Yellow Ribbon Reintegration Program.

(Sec. 583) Requires the Secretary to: (1) study and assess the most effective means to enhance and improve support programs for families of deployed members before, during, and after deployment; and (2) report study results to the defense and appropriations committees.

(Sec. 584) Amends the Servicemembers Civil Relief Act to include child custody proceedings under provisions of such Act which provide certain servicemember protection against default judgments and allow for a stay of proceedings in the case of members deployed in support of a contingency operation.

(Sec. 585) Amends the Family and Medical Leave Act of 1993 to allow the use of leave for any qualifying exigency arising out of the fact that the spouse, son, daughter, or parent of an employee is on active duty (or has been notified of an impending call or order to active duty) in the Armed Forces in support of a contingency operation. Extends such Act to provide leave to employees who are the spouse, son, daughter, parent, or next of kin of a seriously injured service member, in order to care for the member. Extends from 12 to 26 workweeks the leave time available for caregivers of seriously injured servicemembers. Allows an affected employer to require that a request for such leave be supported by a certification of its necessity.

(Sec. 586) Directs the Secretary to develop procedures to ensure that an adequate family care plan is in place for a single parent, or dual military couples with minor dependents, when the member or members are deployed to an area in which imminent danger pay is authorized. Allows such members to request a deferment of such a deployment due to unforeseen circumstances.

(Sec. 587) Requires the Secretary to: (1) conduct a comprehensive assessment of the availability of federal, state, and local education and treatment services on and in the vicinity of a covered military installation for the children of members who are diagnosed with autism; and (2) conduct a review of best practices in the United States with respect to the provision of such services. Requires the Secretary concerned to provide case managers and individualized service plans to affected members. Authorizes the Secretary to conduct and evaluate one or more demonstration projects to evaluate various approaches to the provision of such services, and to utilize a corporate services provider model. Requires reports from the Secretary to: (1) the defense and appropriations committees identifying covered military installations; and (2) the defense committees on any demonstration projects conducted.

(Sec. 588) Expresses the sense of Congress that the people of the United States owe the deepest gratitude toward Kaziah M. Hancock and the members of Project Compassion, who have presented over 700 museum-quality original oil portraits to the families of members of the Armed Forces who have died during active duty since September 11, 2001.

<b>Subtitle I: Other Matters </b>- (Sec. 590) Revises federal provisions concerning performance policies for military bands and other military musical units to allow band members to perform music in their personal capacity, with or without compensation, while acting exclusively outside their official positions. Prohibits such members from wearing a military uniform while engaging in such private performances. Allows military bands or units to produce and distribute musical recordings to the public at a cost not to exceed production and distribution expenses.

(Sec. 591) Provides that, when transportation of the remains of members and certain civilian personnel who died in a combat theater of operations includes transportation through the mortuary facility at Dover Air Force Base, Delaware, the Secretary concerned shall provide for delivery of such remains by air to the commercial, general aviation, or military airport nearest to the place selected by the deceased's designee.

(Sec. 592) Authorizes the Secretary to support, with DOD funds, the establishment and operation of up to four (under current law, two) STARBASE academies in a state.

(Sec. 593) Makes permanent (under current law terminates December 31, 2007) the authority of the Secretary concerned to accept gifts on behalf of certain members, DOD civilian employees, and their dependents. Directs the Secretary to prescribe regulations prohibiting the solicitation by DOD of any gift if the nature or circumstances of the solicitation would compromise the integrity, or the appearance of integrity, of any DOD program or individual.

(Sec. 594) Allows members and veterans who are present but not in uniform during the hoisting, lowering, or passing of the flag to render the military salute.

(Sec. 595) Requires, within a current annual report concerning veterans' reemployment rights, the number of cases reviewed by the Secretary under the National Committee for Employer Support of the Guard and Reserve of the Department of Defense.

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

(Sec. 597) Requires a report from the: (1) Secretary to the defense committees on all cases of administrative separation from the Armed Forces on the basis of a personality disorder; and (2) CG to Congress on policies and procedures of DOD and the military departments relating to the separation of military personnel based on a personality disorder.

(Sec. 598) Authorizes the Secretary to conduct a program to commemorate the 50th anniversary of the Vietnam War. Outlines specified commemoration activities and objectives. Establishes the Department of Defense Vietnam War Commemoration Fund. Requires the Secretary to submit annually a separate budget request with respect to the commemoration program. Directs the Secretary, after the end of the program, to submit to Congress a final report on the accounting of all program funds. Limits FY2008 expenditures under the program. Provides program funding.

(Sec. 599) Recognizes the members of the Monuments, Fine Arts, and Archives program under the Civil Affairs and Military Government Sections of the United States Armed Forces for their service in the preservation, protection, and restoration of monuments, works of art, and other artifacts in Europe and Asia during and following World War II.

<b>Title VI: Compensation and Other Personnel Benefits - Subtitle A: Pay and Allowances </b>- (Sec. 601) Rescinds a prior adjustment made, as of January 1, 2008, pursuant to executive order, in military basic pay. Increases by 3.5%, effective January 1, 2008, the rates of basic pay for military personnel.

(Sec. 602) Allows reserve members without dependents to receive basic allowance for housing when attending accession training while maintaining a primary residence.

(Sec. 603) Extends: (1) from 20 to 60 days the authorized period for the payment of temporary lodging expenses for members in areas subject to declaration as a major disaster or for installations experiencing sudden increases in personnel levels due to force reallocations; and (2) through 2009 the authority for an increase in certain basic allowance for housing inside the United States.

(Sec. 604) Describes when income replacement payments are required for reserve personnel experiencing extended and frequent mobilization for active-duty service. Makes eligible for such payments members who are retained on active duty for authorized medical care, or for medical evaluation for a disability.

(Sec. 605) Requires mid-month federal contributions on behalf of military personnel who elect to participate in the Thrift Savings Plan (TSP).

<b>Subtitle B: Bonuses and Special and Incentive Pays </b>- (Sec. 610) Makes corrections for lapsed authorities with respect to the payment of bonuses, special pays, and other benefits for members under the proceeding four sections.

(Sec. 611) Extends through 2008 specified authorities currently scheduled to expire at the end of 2007 with respect to certain special pay and bonus programs within the regular and reserve Armed Forces.

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

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

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

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

(Sec. 619) Sets at three years the required minimum period of obligated service, and at $15,000 the maximum amount, for the Selected Reserve reenlistment bonus.

(Sec. 620) Authorizes payment of a Selected Reserve enlistment bonus to persons who had enlisted previously, but were unable to complete basic training requirements and whose service was characterized as honorable or uncharacterized.

(Sec. 621) Extends from 26 to 30 years of commissioned service the period of eligibility for nuclear officer continuation pay. Authorizes the revision of prior service agreements to allow for such extension.

(Sec. 622) Authorizes the Secretary, or the Secretary of Homeland Security with respect to the Coast Guard when it is not operating as a service in the Navy, to waive the 25-year service limitation on the eligibility to receive the retention bonus for certain members with designated critical military skills.

(Sec. 623) Authorizes the Secretary to pay an accession bonus of up to $20,000 to participants in the Armed Forces Health Professions Scholarship and Financial Assistance Program.

(Sec. 624) Authorizes the Secretary concerned to pay assignment incentive pay to a reserve member for each month, during the period beginning on January 1, 2005, through the end of any active-duty service in a combat zone associated with Operations Enduring Freedom or Iraqi Freedom, that such member served in excess of 22 months of qualifying service. Makes such monthly incentive pay $1,000.

<b>Subtitle C: Travel and Transportation Allowances </b>- (Sec. 631) Authorizes the Secretary concerned to reimburse inactive duty training travel costs of a member of the Selected Reserve who is: (1) qualified in a skill designated as critical; (2) assigned to a unit or in a reserve pay grade with a critical manpower shortage; or (3) assigned to a unit or position that is disestablished or relocated due to defense base closure or realignment or other force structure reallocation. Sets at $300 the maximum amount of such reimbursement, and terminates the reimbursement authority after December 31, 2010.

(Sec. 632) Includes as additional individuals eligible for a travel and transportation allowance for survivors of deceased members attending the member's burial ceremony: (1) any child or sibling of the deceased member; and (2) the person who directs the disposition of the remains of the deceased member.

(Sec. 633) Authorizes a member of the Individual Ready Reserve to be paid a stipend for participation in electronic screening for force readiness purposes. Limits to $50 the maximum stipend amount. Prohibits members from receiving retirement credit for such participation.

(Sec. 634) Authorizes the Secretary of the military department concerned to furnish up to $250 worth of civilian clothing and luggage to a member of the Armed Forces, or to reimburse the member up to such amount for the purchase of such civilian clothing and luggage, for use for travel in connection with a medical evacuation. (Under current law $250 is allowed, but only for furnishing civilian clothing or reimbursement for such clothing.)

(Sec. 635) Authorizes DOD to reimburse the moving expenses of JROTC instructors who agree to serve at least two years at an educational institution in a position that is hard to fill for geographic or economic reasons, as determined by the Secretary concerned.

<b>Subtitle D: Retired Pay and Survivor Benefits </b>- (Sec. 641) Expands eligibility for combat-related special compensation to include all servicemembers eligible for retirement pay who have a combat-related disability, including those retired or separated, or transferred to a temporary disability retired list, due to physical disability. Reduces such compensation amount with respect to retirees with fewer than 20 years of retirement-creditable service.

(Sec. 642) Allows veterans with service-connected disabilities rated as total by reason of unemployability who are also eligible for retired pay, except for the period beginning on January 1, 2004, and ending on December 31, 2004, to receive the full amount, without reduction, of retired pay and veterans' disability compensation for which such person is eligible. Prohibits the payment of retroactive benefits until after October 1, 2008.

(Sec. 643) Provides limitations (designed to protect a surviving or former spouse) on the recoupment of Survivor Benefit Plan (SBP) annuity amounts previously paid, but subject to offset for the payment of dependency and indemnity compensation (DIC). Requires the Secretary to notify the spouse or former spouse concerned of the net amount in question, the statutory requirements for the recoupment, an accounting of the offset calculation, and contact information.

(Sec. 644) Authorizes a special survivor indemnity allowance for spouses and former spouses affected by the DIC offsets from SBP annuities. Makes such allowance $50 for months during FY2009, with increases of $10 per fiscal year to $100 for months after FY2013. Makes such allowance effective for the period beginning on October 1, 2008, and ending on February 28, 2016.

(Sec. 645) Revises the authority of members to designate recipients of the death gratuity benefit to: (1) require such authority to be effective no later than July 1, 2008; (2) require spousal notification if the member designates a person other than the spouse to receive all or a portion of such benefit; (3) provide for partial designations in 10% increments; (4) revise the prioritized list of beneficiaries for a non-designated benefit; and (5) continue in effect, without change by this amendment, designations made before the enactment of this Act.

(Sec. 646) Revises the retired pay multiplier percentage with respect to members with over 30 years of retirement-creditable service.

(Sec. 647) Reduces below 60 the age at which a member of the Ready Reserve may receive retired pay by three months for every aggregate of 90 days of active-duty service performed under certain mobilization authorities, including responding to a national emergency. Prohibits such eligibility age from being reduced below age 50.

(Sec. 648) Allows up to 130 days in the year of military service that includes October 30, 2007, and any subsequent year of service to be used in the computation of years of service for purposes of retired pay for non-regular (reserve) service.

<b>Subtitle E: Commissary and Nonappropriated Fund Instrumentality Benefits </b>- (Sec. 651) Authorizes members involuntarily separated from active duty or the Selected Reserve to continue to use commissary and exchange stores for two years after separation. Makes such authority effective for the period beginning on October 1, 2007, and ending on December 31, 2012.

(Sec. 652) Authorizes nonappropriated fund instrumentalities to utilize employee pay deductions to collect indebtedness owed to the United States.

<b>Subtitle F: Consolidation of Special Pay, Incentive Pay, and Bonus Authorities </b>- (Sec. 661) Consolidates into the following eight categories various current federal provisions concerning special and incentive pays: (1) bonuses for enlisted members; (2) bonuses for officers; (3) bonuses and incentive pays for nuclear officers; (4) bonuses and incentive pays for aviation officers; (5) bonuses and incentive pays for officers in health professions; (6) hazardous duty pays; (7) assignment pays and special duty pays; and (8) skill incentive pays and proficiency bonuses. Sets a December 31, 2009, expiration date for all such pay and bonus categories, and provides maximum pay and bonus amounts. Continues current separate authorities for 15-year career status bonuses, critical skill retention bonuses, and the continuation of combat zone-related pays and allowances for members hospitalized as a result of combat-related wounds, injuries, or illnesses.

(Sec. 662) Directs the Secretary to develop and submit to the defense and appropriations committees a plan to implement the consolidation of special, incentive, and bonus pays referred to in the previous section. Allows for a transition period of up to ten years after the enactment of this Act. Requires the Secretary to notify such committees at least 30 days before a new special pay or bonus authority under this Subtitle is first utilized. Prohibits the consolidation from having any effect on FY2008 obligations for such special, incentive, or bonus pay.

<b>Subtitle G: Other Matters </b>- (Sec. 671) Authorizes the Secretary of the Army to pay a bonus of up to $2,000 to a regular or reserve member of the Army, a retired member of the Army, or a civilian Army employee who refers to an Army recruiter a person who has not previously served in an armed force and who, after such referral, enlists in the Army or Army Reserve.

Allows the Secretary of Defense to authorize the Secretary concerned to pay a bonus of up to $2,000 to any such person as described above who refers a person which leads to an appointment as a commissioned officer in an armed force in a health profession designated by the Secretary concerned.

Terminates each such bonus authority on December 31, 2008.

(Sec. 672) Expands the types of educational loans authorized to be repaid under the Selected Reserve loan repayment program. Makes eligible for such loan repayments Selected Reserve officers (under current law, only Selected Reserve enlisted members).

(Sec. 673) Amends the Immigration and Nationality Act to: (1) allow readmission into the United States of lawful U.S. permanent resident spouses and children of members stationed abroad after the spouse and children have resided with the member during their service abroad; and (2) provide overseas naturalization eligibility to such spouses and children by treating their period of residence abroad as residence within the United States.

(Sec. 675) Amends the Spence Act to increase amounts of back pay for members of the Navy and Marine Corps selected for promotion while interned as prisoners of war during World War II, to reflect changes in the Consumer Price Index. Requires the recalculation of previous payments.

<b>Title VII: Health Care Provisions </b>- <b>Subtitle A: Improvements to Military Health Benefits </b>- (Sec. 701) Extends through FY2008 the prohibition on increases in certain charges and premiums for care and coverage under TRICARE (a DOD managed care program) Prime, TRICARE Standard, and TRICARE Reserve Select.

(Sec. 702) Provides copayment limits, for the period beginning on October 1, 2007, and ending on September 30, 2008, for the receipt of generic, formulary, and nonformulary agents under the retail pharmacy system of the DOD pharmacy benefits program.

(Sec. 703) Provides that, with respect to any prescription filled on or after the date of enactment of this Act, the TRICARE retail pharmacy program shall be covered by the federal pricing limits applicable to covered drugs under the VA retail pharmacy program.

(Sec. 704) Authorizes the Secretary to pay a stipend to a reserve member who is called or ordered to active duty for a period of more than 30 days so that such member may maintain civilian health care coverage for a dependent whom the Secretary determines possesses a special health care need that would be best met by remaining in the member's civilian health plan.

(Sec. 705) Expands eligibility for temporary health benefits coverage under federal civilian employee provisions to include any person specified in regulations prescribed by the Secretary who loses entitlement to DOD health care services. Allows such temporary coverage for up to 36 months after the loss of such entitlement.

(Sec. 706) Amends the Warner Act to continue eligibility for TRICARE Standard coverage for certain members of the Selected Reserve.

(Sec. 707) Amends the Reagan Act to extend through FY2010 a pilot program of cooperative health care arrangements between military installations and local and regional nonmilitary health care systems. Extends related report requirements.

(Sec. 708) Includes mental health care within the definition of &quot;health care&quot; under the TRICARE program. Requires a report from the Secretary to the defense committees on the adequacy of access to mental health services under the TRICARE program.

<b>Subtitle B: Studies and Reports </b>- (Sec. 711) Directs the Secretary to: (1) conduct surveys on the current and future viability of the TRICARE Standard and TRICARE Extra health care programs; and (2) establish benchmarks for primary and specialty care providers to determine the adequacy of health care provided to TRICARE beneficiaries. Requires the CG to: (1) conduct an ongoing review of DOD processes, procedures, and analyses to determine the adequacy of health care and mental health care providers; and (2) report review results biannually to the defense committees.

(Sec. 712) Requires a report from the Secretary to the defense committees on requirements outlined in the Warner Act concerning training in the preservation of remains under combat or combat-related conditions.

(Sec. 713) Directs the Secretary to report to the defense and appropriations committees on the ongoing patient satisfaction surveys taking place in DOD inpatient and outpatient settings at military treatment facilities, and to use information in the report as the basis for a plan for improvements in such satisfaction.

(Sec. 714) Directs the Secretary to report to the defense committees on medical physical examinations of members before their deployment.

(Sec. 715) Requires a report from the Secretary to the defense committees on DOD's policies for administering and evaluating the vaccination of members of the Armed Forces.

(Sec. 716) Requires the Secretary to conduct a comprehensive review of: (1) the need for gender- and ethnic group-specific mental health treatment and services for members; and (2) the efficacy and adequacy of existing gender- and ethnic group-specific mental health treatment programs and services for members. Directs the Secretary to report review results to the defense and appropriations committees.

(Sec. 717) Directs the Secretary to: (1) establish criteria that licensed or certified mental health counselors must meet in order to independently provide care to TRICARE beneficiaries; (2) contract for an independent study of the credentials, preparation, and training of such individuals; and (3) report study results to the defense committees.

(Sec. 718) Requires the President to submit a justification report to Congress if the aggregate amount included in the DOD budget for health care for that fiscal year is less than the aggregate amount provided by Congress for DOD for health care for the preceding fiscal year, and the total allocation from the Defense Health Program to any military department is less than that total allocation for the previous fiscal year. Terminates such requirement after December 31, 2017.

<b>Subtitle C: Other Matters </b>- (Sec. 721) Prohibits the Secretary concerned from converting any military medical or dental position to a civilian medical or dental position between October 1, 2007, and September 30, 2012. Requires the restoration to a military medical or dental position for any such position that is or was converted to a civilian position between October 1, 2004, and September 30, 2008, if such position is or was not filled by a civilian by the latter date. Requires a report from the Secretary to the defense and appropriations committees on conversions made during FY2007.

(Sec. 722) Expresses the sense of Congress that: (1) the Armed Forces Institute of Pathology has provided important medical benefits to the Armed Forces and the United States; and (2) the federal government should retain a Joint Pathology Center (Center). Directs the President to establish and maintain a Center within DOD to function as the federal reference center in pathology. Provides authorized Center services.

<b>Title VIII: Acquisition Policy, Acquisition Management, and Related Matters - </b>Acquisition Improvement and Accountability Act of 2007<b> - Subtitle A:Acquisition Policy and Management </b>- (Sec. 801) Requires the inspectors general of DOD and the non-defense agencies listed below to conduct reviews of policies, procedures, and internal controls applicable to the procurement of property and services to determine whether such agency is or is not compliant with defense procurement requirements. Allows a DOD acquisition official to place an order or acquire property or services for DOD in excess of the simplified acquisition threshold through a non-defense agency only if there exists compliance with defense procurement requirements. Provides exceptions when necessary in the interests of DOD. Requires the Secretary to issue guidance on the use of interagency contracting by DOD. Includes as non-defense agencies under this section the General Services Administration (GSA), the Departments of the Treasury and the Interior, the National Aeronautics and Space Administration (NASA), the VA, and the National Institutes of Health (NIH).

(Sec. 802) Prohibits DOD from awarding any new contracts for lead systems integrator functions in the acquisition of major systems, effective October 1, 2010, to any entity that was not performing such functions prior to the enactment of this Act. Prohibits the award of any new such contract for a major system that has proceeded beyond low-rate initial production, effective upon the date of enactment of this Act, absent a written determination by the Secretary, sent to the defense committees, that meets specified conditions. Directs the Secretary to: (1) ensure that the acquisition workforce is of the appropriate size and skill level necessary to perform inherently governmental functions related to the acquisition of major systems; and (2) update progress made in compliance with (1), above, in an annual report required under the Warner Act. Provides conditions under which DOD may continue to award contracts for the procurement of services the main purpose of which is to perform acquisition support functions with respect to the development or production of a major system.

(Sec. 803) Requires the Strategic Materials Protection Board to: (1) assess the extent to which domestic producers of strategic materials are investing on a sustained basis in the processes, infrastructure, workforce training, and facilities required for the continued domestic production of such materials to meet national defense requirements; and (2) include assessment results in a currently-required annual report to Congress.

(Sec. 804) Makes the requirement that DOD follow Buy American requirements in the purchase of necessary property and services inapplicable with respect to the purchase of: (1) commercial items; (2) fasteners, high-performance magnets, electronic components, and commercial derivative military articles; and (3) certain specialty metals. Authorizes the Secretary to waive Buy American requirements upon a determination that acceptance of the end item is necessary to U.S. national security interests. Requires any domestic non-determinations made between December 6, 2006, and 60 days after the enactment of this Act to be reviewed and amended as necessary to comply with this section.

(Sec. 805) Requires the Secretary to modify DOD regulations concerning the procurement of commercial services to: (1) authorize the contracting officer in the procurement of certain commercial services to require bid offerors to submit sufficient information to evaluate the reasonableness of the proposed price; and (2) address the categories of services which may be purchased for or on behalf of DOD pursuant to commercial time and materials contracts.

(Sec. 806) Requires defense budget justification materials submitted for any fiscal year after 2009 to clearly and separately identify amounts requested in each budget account for the procurement of contract services.

(Sec. 807) Requires the: (1) Secretary to submit to Congress (and make available to the public) an annual inventory of activities performed pursuant to contracts for services for or on behalf of DOD; and (2) Secretary of the military department or agency head responsible for activities in the inventory to conduct certain review and planning on the basis of the inventories.

(Sec. 808) Requires the Secretary to: (1) issue guidance (with detailed implementation instructions) for DOD to provide for periodic independent management reviews of contracts for services; and (2) report to the defense and appropriations committees on the guidance and instructions. Directs the CG to report to such committees on the implementation of the guidance and instructions.

(Sec. 809) Requires the Secretary to: (1) issue guidance (with detailed implementation instructions) for DOD to ensure the implementation and enforcement of requirements applicable to undefinitized contractual actions; and (2) report to the defense and appropriations committees on the guidance and instructions. Directs the CG to report to such committees on the effect of the guidance and instructions.

(Sec. 810) Codifies the position and duties of the acquisition executive within the U.S. Special Operations Command.

<b>Subtitle B: Provisions Relating to Major Defense Acquisition Programs </b>- (Sec. 811) Requires the Secretary to certify in writing, by no later than March 1 of a year in which the Secretary requests legislative authority to enter into a multiyear contract with respect to a major defense acquisition program (MDAP), that the Secretary has made certain cost savings determinations with regard to such contract.

(Sec. 812) Requires the program manager for an MDAP that has received Milestone B certification to immediately notify the milestone decision authority of any changes to the MDAP that: (1) alter the substantive basis for such certification; or (2) deviate significantly from the certification material provided to the milestone decision authority. Requires the milestone decision authority to receive a business case analysis prior to making a certification.

(Sec. 813) Directs the CG to report to the defense and appropriations committees on potential modifications of the DOD organization and structure for MDAPs.

(Sec. 814) Requires submission of cost or pricing data on noncommercial modifications of commercial items to include the total price of the contract at the time of contract award. Raises from $500,000 to $650,000 the total contract price threshold after which submission of cost or pricing data is required.

(Sec. 815) Revises provisions allowing MDAP systems, components, and spare parts to be treated as commercial items for procurement purposes to require the contract offeror, in each case, to submit sufficient information to evaluate the reasonableness of the price for such system, component, or spare part. Allows other information to be submitted, including labor and material costs and overhead rates.

(Sec. 816) Directs the: (1) Under Secretary to conduct an annual review of MDAP systematic deficiencies in any fiscal year in which three or more MDAPs experience a critical cost growth threshold breach or lose MDAP certification or Key Decision Point A approval; and (2) Secretary to report review results to the defense and appropriations committees. Terminates review requirements after FY2012.

(Sec. 817) Requires the Secretary to report to the defense and appropriations committees on: (1) DOD strategies for the allocation of funds and other resources among MDAPs; and (2) the extent of implementation of recommendations contained in the February 2003 report of the Government Accountability Office (GAO) entitled &quot;Setting Requirements Differently Could Reduce Weapon Systems' Total Ownership Costs.&quot;

<b>Subtitle C: Amendments to General Contracting Authorities, Procedures, and Limitations </b>- (Sec. 821) Directs the Under Secretary to develop and implement a plan to minimize the number of government-unique contract clauses used in commercial contracts by restricting such clauses to: (1) those authorized by law or regulation; and (2) ones relevant and necessary to a specific contract.

(Sec. 822) Amends the Clinger-Cohen Act of 1996 to extend until January 1, 2010, the authority to use simplified acquisition procedures for the purchase of property or services that are commercial items valued at no more than $5 million. Requires a report from the Under Secretary to the defense committees on the use of such authority.

(Sec. 823) Amends the NDAA for Fiscal Year 1994 to extend through FY2013 DOD authority to carry out certain prototype projects.

(Sec. 824) Exempts the commander of the Special Operations Command from certain lease limitations regarding substantial termination liability if: (1) funds are available and obligated for the full cost of the contract on or before the contract is awarded; (2) the Secretary has certified to the defense and appropriations committees that there is no alternative for otherwise meeting urgent operational requirements; and (3) 30 days has expired following receipt of such certification.

(Sec. 825) Revises the acquisition authority provided to the Unified Combatant Command for Joint Warfighting to: (1) include the sustainment of equipment; and (2) extend such authority through FY2010.

(Sec. 826) Revises requirements for market research for procurements in excess of the simplified acquisition threshold to require prime contractors of a contract in excess of $5 million to engage in necessary market research. Directs the Secretary to develop training to assist contracting officers in performing such research.

(Sec. 827) Directs the Secretary, before purchasing a product listed in the latest edition of the Federal Prison Industries (FPI) catalog for which FPI does not have a significant market share, to conduct market research to determine whether the product is comparable to products available from the private sector that best meet the needs of DOD in terms of price, quality, and time of delivery. Authorizes the Secretary to purchase a product listed in the latest edition of the FPI catalog for which FPI does have a significant market share only if the Secretary uses competitive procedures for the procurement of the product or makes an individual purchase under a multiple award contract in accordance with applicable competition requirements. Requires the Secretary to publish a list of product categories for which FPI's share of the DOD market is greater than 5%.

(Sec. 828) Authorizes the Secretary to enter into multiyear contracts, for up to ten-year periods, for the purchase of electricity from sources of renewable energy. Provides circumstances under which the Secretary may enter into such multiyear contracts for periods in excess of five years.

(Sec. 829) Authorizes the Secretary to procure from foreign manufacturers fire-resistant rayon fiber for the production of military uniforms if, among other things, such fiber is not available from sources within the national technology and industrial base. Requires congressional notification. Terminates such authority five years after the enactment of this Act.

(Sec. 830) Directs the CG to report to the defense and appropriations committees on the use of procedures other than competitive procedures in the award of DOD contracts.

<b>Subtitle D: Accountability in Contracting </b>- (Sec. 841) Establishes the Commission on Wartime Contracting to study and investigate federal agency contracting for: (1) the reconstruction of Iraq and Afghanistan; (2) the logistical support of coalition forces operating in Iraq and Afghanistan; and (3) the performance of security functions in such operations. Requires interim reports and a final report from the Commission to Congress. Terminates the Commission 60 days after its final report.

(Sec. 842) Directs the inspectors general with jurisdiction over the relevant contracts to conduct a series of audits to identify potential waste, fraud, abuse, or mismanagement in the performance of DOD and federal agency contracts and subcontracts in support of coalition forces in Iraq and Afghanistan and in the performance of security and reconstruction functions in such countries. Requires the DOD Inspector General, the Special Inspector General for Iraq Reconstruction, and the Special Inspector General for Afghanistan Reconstruction to each develop a comprehensive plan for the conduct of such audits under their jurisdiction.

(Sec. 843) Requires that DOD task or delivery order contracts in excess of $100 million be awarded to multiple contractors (with certain exceptions). Establishes additional competition requirements (including requirements for debriefings and authorization of bid protests) for task or delivery orders in excess of $5 million under such multiple award contracts.

(Sec. 844) Amends the Federal Property and Administrative Services Act of 1949 to require the head of an executive agency, including a defense agency, to make certain justification and approval documents relating to the use of noncompetitive procedures in contracting available on the website of the agency within 14 days after contract award.

(Sec. 845) Requires each inspector general appointed under the Inspector General Act of 1978 to submit, as part of a semiannual inspector general report required under such Act, an annex on final, completed contract audit reports issued to the contracting activity containing significant audit findings over the period covered by the report. Exempts such information from public disclosure. Requires the head of each federal department or agency to provide, within 14 days after a request by specified committees, a full and unredacted copy of any such audit.

(Sec. 846) Includes, among others, a representative of a committee of Congress, an Inspector General, the GAO, and a DOD employee responsible for contract oversight or management among those to whom a contractor employee may disclose information concerning contractor fraud, waste, or abuse while being protected from reprisals for such disclosure (whistleblower protections). Provides for expedited determinations of alleged contractor reprisals. Establishes a private right of action for contractor employees subjected to reprisals.

(Sec. 847) Requires certain former senior DOD officials and general and flag officers who participated substantially in DOD acquisition contracts in excess of $10 million and who, within two years after leaving DOD service, expect to receive compensation from a DOD contractor to, prior to accepting such compensation, request a written opinion from a DOD ethics official regarding the applicability of post-employment restrictions on activities that such former official or officer may undertake on behalf of a contractor. Directs that: (1) such requested opinion be provided within 30 days; (2) the DOD contractor concerned, before providing such compensation, first determine whether the former DOD official or officer has sought and received such opinion; and (3) opinion requests and responses be retained by DOD in a central database or repository for at least five years after the opinion is provided.

(Sec. 848) Directs the CG to report to the defense committees on the internal ethics programs of major defense contractors (those that received more than $500 million in DOD contract awards during FY2006).

(Sec. 849) Directs the Secretaries of Defense and the Army to: (1) separately evaluate recommendations of the Commission on Army Acquisition Program and Program Management in Expeditionary Operations; and (2) report to the defense and appropriations committees their plans for implementation of such recommendations.

Amends the Warner Act to require the CG, as part of a required report under such Act, to review and report to the defense committees on joint policies developed the Secretary for the training of military personnel outside the acquisition workforce who are expected to have acquisition responsibility during combat operations, post-conflict operations, and contingency operations.

<b>Subtitle E: Acquisition Workforce Provisions </b>- (Sec. 851) Amends the OFPPA to require the Secretary to include a separate section on the acquisition workforce in the next and subsequent DOD strategic human capital plans required under the NDAA for Fiscal Year 2006.

(Sec. 852) Directs the Secretary to establish the Department of Defense Acquisition Workforce Fund for the recruitment, training, and retention of DOD acquisition personnel. Requires an annual report from the Secretary to the defense and appropriations committees on Fund operations.

(Sec. 853) Amends the NDAA for Fiscal Year 2004 to extend through FY2012 the authority to fill shortage category positions in the acquisition workforce.

(Sec. 854) Amends the OFPPA to repeal the termination of (and thereby make permanent) the acquisition workforce training fund.

(Sec. 855) Directs the: (1) Administrator for Federal Procurement Policy (FPP Administrator) to designate a member of the Senior Executive Service as the Associate Administrator for Acquisition Workforce Programs; (2) head of each executive agency to establish and operate acquisition and contract training programs; (3) FPP Administrator to promote the development of performance standards for acquisition workforce training and the uniform implementation of this section by executive agencies; (4) Chief Acquisition Officer of each agency to develop a plan for the recruitment, development, and retention of that agency's acquisition workforce; (5) FPP Administrator to ensure that a sufficient number of federal employees are trained in the acquisition of architect and engineering services; and (6) FPP Administrator to encourage executive agencies to utilize existing authorities to recruit and retain acquisition personnel and consider recruiting such personnel who may be retiring from the private sector.

<b>Subtitle F: Contracts in Iraq and Afghanistan </b>- (Sec. 861) Directs the Secretary, the Secretary of State, and the Administrator of the U.S. Agency for International Development (USAID) to: (1) enter into a memorandum of understanding regarding matters relating to contracting for contracts in Iraq or Afghanistan; and (2) report to specified congressional committees on implementation of the memorandum.

(Sec. 862) Requires the: (1) Secretary to prescribe regulations on the selection, training, equipping, and conduct of personnel performing private security functions under a federal contract or subcontract in an area of combat operations; and (2) Federal Acquisition Regulation to be revised to require the insertion into each covered contract or subcontract of a clause addressing such selection, training, equipping, and conduct. Requires a report from the DOD Inspector General to Congress on the feasibility and advisability of a pilot program for the imposition of fines on contractors or subcontractors for personnel who violate or fail to comply with such regulations or requirements. Makes requirements of this section inapplicable to contracts entered into by elements of the intelligence community in support of intelligence activities.

(Sec. 863) Directs the CG, every 12 months, to review contracts in Iraq or Afghanistan, and report review results to specified congressional committees.

(Sec. 864) Provides definitions with respect to provisions added by this Subtitle.

<b>Subtitle G: Defense Materiel Readiness Board </b>- (Sec. 871) Directs the Secretary to establish a Defense Materiel Readiness Board to provide to the Secretary and Congress independent assessments of materiel readiness, shortfalls, and plans. Requires the: (1) Board to report findings and recommendations to the Secretary at least every six months; and (2) Secretary to forward each such report, with comments, to the defense and appropriations committees.

(Sec. 872) Authorizes the Secretary to designate any requirement for equipment or supplies as a critical materiel readiness shortfall if there is an equipment or supplies shortfall that materially reduces readiness of the Armed Forces and that: (1) cannot be adequately addressed by substitute capabilities; and (2) is likely to persist for more than two years. Requires the Secretary to ensure that shortfalls so designated are transmitted to relevant DOD officials responsible for requirements, budgets, and acquisition. Authorizes the Secretary to transfer from amounts appropriated to DOD for FY2008 up to $2 billion to address critical readiness requirements designated by the Secretary. Establishes in the Treasury the Department of Defense Strategic Readiness Fund. Authorizes the Secretary concerned to enter into a multiyear contract to procure an item if such item will significantly accelerate efforts to address a critical material readiness shortfall, will provide cost savings, and will serve the interests of national security.

<b>Subtitle H: Other Matters </b>- (Sec. 881) Requires the Secretary to: (1) establish a clearinghouse to identify, assess, and disseminate knowledge about readily available information technologies that could support the DOD warfighting mission; (2) hire and support employees to assist in such activities; and (3) report to the defense and appropriations committees on implementation of this section.

(Sec. 882) Authorizes the Secretary concerned to license trademarks, service marks, certification marks, and collective marks owned or controlled by that Secretary relating to military designations and likenesses of military weapons systems to any qualifying company, upon their request. Defines &quot;qualifying companies&quot; as any small business that is a toy or hobby manufacturer.

(Sec. 883) Amends the Warner Act to allow the Secretary to waive the prohibition against entering into a service contract to acquire a military flight simulator if: (1) the contract was in effect as of October 17, 2006; and (2) granting the waiver would be in the national interest (currently, if necessary for national security purposes).

(Sec. 884) Directs the Secretary, at least 30 days prior to making a domestic nonavailability determination with respect to the procurement of specialty metals that would apply to more than one DOD contract, to: (1) publish on the GSA website notice of the intention to make such determination; and (2) solicit information relevant to such notice from interested parties, including producers of specialty metal mill products. Requires the Secretary's determination and the rationale therefor to be made publicly available consistent with the protection of national security information and confidential business information.

(Sec. 885) Requires the Secretary to: (1) use competitive procedures when contracting for morale, welfare, and recreation (MWR) telephone service for personnel serving in combat zones; (2) ensure that such contracts allow users to use phone cards from multiple phone service providers; and (3) report implementation results to the defense committees.

(Sec. 886) Authorizes the Secretary to establish a preference for the acquisition of products and services that are produced in Iraq and Afghanistan if: (1) the product or service is to be used only by military forces, police, or other security forces in Iraq or Afghanistan; (2) the preference is necessary to provide a stable source of jobs and employment in Iraq or Afghanistan; and (3) the preference will not have an adverse effect on U.S. military operations or the U.S. industrial base.

(Sec. 887) Requires the Secretary to: (1) direct the Defense Science Board to review DOD policies and procedures for the acquisition of information technology; and (2) report review results to the defense and appropriations committees.

(Sec. 888) Expresses the sense of the Senate that DOD should establish a system to document and track the use of environmentally preferable (green) products. Directs the Secretary to submit to Congress its plan to increase the use of environmentally friendly products at all DOD facilities inside and outside the United States.

(Sec. 889) Requires the CG to: (1) review the application of the Defense Production Act of 1950 since the date of enactment of the Defense Production Act Reauthorization of 2003, in light of amendments made by the latter Act; and (2) report to the defense and finance committees on review results.

(Sec. 890) Directs the Secretary to: (1) prescribe regulations requiring DOD contractors to comply with applicable export control laws and regulations; (2) develop a contract clause enforcing such requirement; (3) ensure that contractors are made aware of available resources to assist in compliance with such requirements; and (4) report to the defense committees on implementation of this section.

(Sec. 891) Extends to Native Hawaiian-serving and Alaska Native-serving institutions the federal contract goals for small disadvantaged businesses and certain institutions of higher education.

(Sec. 892) Requires the Secretary, with respect to the procurement of small arms (pistols and weapons less than 0.50 caliber) to be supplied to Iraq and Afghanistan for assistance to their army, police, and other security organizations, to ensure that: (1) full and open competition is obtained; (2) no responsible U.S. manufacturer is excluded from such competition; and (3) products manufactured in the United States are not excluded from the competition.

<b>Title IX: Department of Defense Organization and Management - Subtitle A: Department of Defense Management </b>- (Sec. 901) Repeals a provision limiting the number of DOD headquarters activities personnel. Requires the Secretary to include, within annual DOD budget materials, information on military and civilian personnel assigned to major DOD headquarters activities.

(Sec. 902) Authorizes the Secretaries concerned to choose any number of deputy and assistant chiefs of staff, as long as the total number does not exceed eight. (Currently, such Secretaries are limited to five deputies and three assistants.)

(Sec. 903) Reduces from ten to seven years the period that a regular commissioned officer must wait after being relieved from active duty in order to become eligible for appointment as the Secretary or Deputy Secretary of Defense, or the Under Secretary of Defense for Policy.

(Sec. 904) Designates the Deputy Secretary of Defense as Chief Management Officer of DOD. Provides for a Deputy Chief Management Officer. Requires the Secretary to develop a strategic management plan for DOD, update such plan every two years, and report to the defense committees on each plan and on implementation of this section.

(Sec. 905) Amends the Warner Act to eliminate the requirement that the acquisition programs of the U.S. Special Operations Command must support the acquisition priorities of the respective military departments.

(Sec. 906) Establishes a Department of Defense Board of Actuaries to review, and report to the President and Congress on, valuations of the Department of Defense Military Retirement Fund, Department of Defense Education Benefits Fund, and any related DOD funds. Requires annual Board reports to the Secretary. Terminates the Department of Defense Retirement Board of Actuaries and the Department of Defense Education Benefits Board of Actuaries.

(Sec. 907) Removes the requirement that the Under Secretary of Defense for Acquisition, Technology, and Logistics (Under Secretary) have extensive management experience in the private sector.

(Sec. 908) Designates one Assistant Secretary of the: (1) Army as the Assistant Secretary of the Army for Acquisition, Technology, and Logistics; (2) Navy as the Assistant Secretary of the Navy for Research, Development, and Acquisition; and (3) Air Force as the Assistant Secretary of the Air Force for Acquisition. Outlines duties for each position. Provides each a Principal Military Deputy.

(Sec. 909) Expresses the sense of Congress that the term of office of the DOD Director of Operational Test and Evaluation should not be less than five years.

<b>Subtitle B: Space Activities </b>- (Sec. 911) Expresses the sense of Congress that the United States should place greater priority on the protection of national security space systems. Directs the Secretary to: (1) develop the Space Protection Strategy for the development and fielding, for three periods beginning in FY2008 and ending in FY2025, of capabilities necessary to ensure freedom of action in space for the United States; and (2) report biennially to Congress on the strategy.

(Sec. 912) Directs the Secretary and each department Secretary to develop metrics to identify, track, and manage space cadre personnel within DOD to ensure sufficient personnel with the expertise, training, and experience to meet current and future national security space needs. Requires a biennial report from the Secretary to the defense and appropriations committees on the management of the space cadre.

(Sec. 913) Amends the Stump Act to extend into 2008 a reporting requirement concerning oversight of acquisition for defense space programs.

<b>Subtitle C: Chemical Demilitarization Program </b>- (Sec. 921) Amends the NDAA for Fiscal Year 1993 to: (1) make the Assistant Secretary of the Army (Acquisition, Logistics, and Technology) the Army's representative to local chemical demilitarization citizens advisory commissions; and (2) allow such commissions to remain in existence until all closure activities are completed at a chemical agent destruction facility pursuant to the Solid Waste Disposal Act, or upon request of the appropriate state governor, whichever occurs first.

(Sec. 922) Expresses the sense of Congress that: (1) the United States remain committed to dispose of its entire chemical weapons stockpile by April 2012, the current deadline, or as soon thereafter as possible; and (2) the Secretary should make every effort to plan for, and request in the annual DOD budget, sufficient funding to complete such disposition in a manner that will protect public health, safety, and the environment. Requires biennial reports, until the year such disposition is completed, from the Secretary to specified Members and committees of Congress on the U.S. implementation of its chemical weapons destruction obligations under the Chemical Weapons Convention.

(Sec. 923) Amends the Department of Defense Authorization Act, 1986 to repeal specified qualification requirements for the Army's Director of the Chemical Materials Agency.

(Sec. 924) Amends the Department of Defense Authorization Act, 1986 to extend until a specified conditional date the termination of assistance to state and local governments for