Bill summaries are authored by CRS.

Shown Here:
Public Law (11/24/2003)

National Defense Authorization Act for Fiscal Year 2004 - Division A: Department of Defense Authorizations - Title I: Procurement - Subtitle A: Authorization of Appropriations - (Sec. 101) Authorizes appropriations for FY 2004 for the Army, Navy and Marine Corps, and Air Force for aircraft, missiles, weapons and tracked combat vehicles, ammunition, shipbuilding and conversion, and other procurement.

(Sec. 104) Authorizes appropriations for FY 2004 for defense-wide procurement.

Subtitle B: Army Programs - (Sec. 111) Limits the obligation of FY 2004 funds for the Army's Stryker vehicle program until: (1) the Secretary of the Army has submitted a report to the Deputy Secretary of Defense on modifications of the equipment and configuration of Stryker brigades; (2) the Secretary of Defense (Secretary) has submitted such report to the congressional defense and appropriations committees, along with a certification concerning the modifications as planned by the Army; and (3) 30 days have elapsed since those committees received such report and certification.

(Sec. 112) Directs the Secretary of the Army to study and report to Congress on the participation of a second source in the production of gears for transmissions incorporated into CH-47 helicopters being procured by the Army with funds authorized under this Act.

Subtitle C: Navy Programs - (Sec. 121) Authorizes the Secretary of the Navy to enter into a multiyear procurement contract, beginning with: (1) the FY 2005 program year, for up to 234 aircraft in the F/A-18E, F/A-18F, and EA-18G configurations; (2) the FY 2004 program year, for tactical Tomahawk cruise missiles; (3) the FY 2004 program year, for Virginia class submarines; (4) the FY 2004 program year, for E-2C and TE-2C aircraft and engines for such aircraft; and (5) the FY 2004 program year, for the Phalanx Close In Weapon System program. Requires 30 days' prior notification of the defense and appropriations committees with respect to the submarines procurement.

(Sec. 126) Authorizes the Secretary of the Navy to carry out a pilot program of flexible funding of conversions and overhauls of Navy cruisers using transferred Navy procurement and operation and maintenance funds for FY 2004 through 2012. Provides limitations. Requires a program report from such Secretary to the defense and appropriations committees. Terminates the pilot program on September 30, 2012.

Subtitle D: Air Force Programs - (Sec. 131) Amends the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Stump Act) to eliminate quantity limitations on the multiyear procurement authority for C-130J aircraft.

(Sec. 132) Prohibits the Secretary of the Air Force from retiring C-5A aircraft to a number below 112 until: (1) the Air Force has modified such aircraft to a specified configuration; and (2) the Director of Operational Test and Evaluation has conducted an evaluation of the aircraft and provides an operational assessment to the Secretary and the defense and appropriations committees.

(Sec. 133) Limits FY 2004 funding availability for the procurement of F/A-22 aircraft until the Under Secretary of Defense for Acquisition, Technology, and Logistics makes a certification to the defense and appropriations committees with respect to the operational test and evaluation of the aircraft. Authorizes the Secretary to waive the certification requirement after notification to such committees.

(Sec. 134) Directs the Secretary of the Air Force to: (1) ensure that the number of KC-135E aircraft retired in FY 2004 does not exceed 12; and (2) submit to the defense and appropriations committees an analysis of alternatives for meeting Air Force aerial refueling requirements.

(Sec. 135) Authorizes the Secretary of the Air Force to enter into a multiyear lease for up to 20 aerial refueling tanker aircraft and to use such authority to lease up to 80 of such aircraft for up to ten program years beginning as early as FY 2004. Requires the Secretary of Defense to study and report to the defense and appropriations committees on alternative means for meeting long-term tanker aircraft maintenance and training requirements. Expresses the sense of Congress that the President should ensure sufficient budgeting resources to fully execute such program and to further ensure that all other critical defense programs are fully funded.

Title II: Research, Development, Test, and Evaluation - Subtitle A: Authorization of Appropriations - (Sec. 201) Authorizes appropriations for FY 2004 for the armed forces for research, development, test, and evaluation (RDT&E). Earmarks specified amounts for the Defense Science and Technology Program.

Subtitle B: Program Requirements, Restrictions, and Limitations - (Sec. 211) Directs the Secretary to establish and carry out a collaborative program for evaluation and demonstration of advanced technologies and concepts for advanced gun systems that use electromagnetic propulsion for direct and indirect fire applications. Requires an implementation report from the Director of the Defense Advanced Research Projects Agency to the defense and appropriations committees.

(Sec. 212) Authorizes the Secretary, in selecting a Director for the Department of Defense Test Resources Management Center, to choose from senior DOD civilian officials and employees. (Currently, the Secretary must select for such position only from among active-duty commissioned officers.)

(Sec. 213) Directs the Secretary to develop and submit such plan to the defense committees an implementation plan for management of the Joint Tactical Radio System development program. Requires plan implementation by December 1, 2004.

(Sec. 214) Prohibits the obligation of a specified amount of RDT&E funds under this Act for the development and demonstration of systems for the Future Combat Systems program until 30 days after the Secretary of the Army reports to the defense and appropriations committees on such program. Requires separate program elements under such program for fiscal years beginning with 2004. Requires an annual report from such Secretary to the defense and appropriations committees on the programs and projects comprising such program.

(Sec. 215) Amends the Stump Act to extend for FY 2004 a reporting requirement with respect to the RAH-66 Comanche aircraft program.

(Sec. 216) Directs the Secretary to provide for the performance of two independent studies on alternative future fleet platform architectures for the Navy. Requires study results to be forwarded to the defense and appropriations committees.

Subtitle C: Ballistic Missile Defense - (Sec. 221) Amends Federal provisions concerning program elements of ballistic missile defense (BMD) programs to: (1) repeal current program elements; and (2) authorize the President to specify such elements.

(Sec. 222) Earmarks specified RDT&E funds for the development and fielding of an initial set of BMD capabilities.

(Sec. 223) Directs the Secretary to include: (1) in budget justification materials submitted to Congress in support of the DOD budget specified information for each BMD element for which the Missile Defense Agency is engaged in planning for production and initial fielding; and (2) in the future-years defense program submitted to Congress each year an estimate of the amount necessary and justification for procurement for each BMD system element.

(Sec. 224) Amends the National Defense Authorization Act for Fiscal Year 2002 to: (1) extend through FY 2004 the authority to assist local communities impacted by the BMD system test bed; and (2) require the Secretary to report to the defense and appropriations committees on the community assistance projects so funded.

(Sec. 225) Prohibits the obligation or expenditure of any DOD funds authorized under this Act for RDT&E, or procurement or development, of nuclear armed interceptors in a missile defense system.

(Sec. 226) Revises provisions with respect to responsibility for follow-on RDT&E related to system improvements for missile defense programs transferred from the Missile Defense Agency to the military departments.

Subtitle D: Other Matters - (Sec. 231) Requires the Director of Defense Research and Engineering to carry out a Global Research Watch program to, among other things, monitor and analyze the basic and applied research activities and capabilities of foreign nations in areas of military interest. Terminates the program on September 30, 2006.

(Sec. 232) Requires the Director of the Defense Advanced Research Projects Agency, every other year, to prepare and submit to Congress a strategic plan for Agency activities.

(Sec. 233) Authorizes the Secretary, in furtherance of the support of educational programs in science, mathematics, engineering, and technology, to: (1) enter into contracts and cooperative arrangements; (2) make financial assistance grants; (3) provide cash awards and other incentives; (4) accept voluntary services; and (5) support national competition judging, educational event activities, and associated award ceremonies in connection with such programs.

(Sec. 234) Directs the Secretary to carry out a program of research and development (R&D) to promote the development of high-speed, high-bandwidth communications capabilities for support of network-centric operations by the armed forces. Requires the Secretary to report to the defense and appropriations committees on program activities undertaken.

(Sec. 235) Requires the Secretary, through the Commander of the U.S. Joint Forces Command, to carry out a joint experiment in FY 2004 to demonstrate and evaluate joint blue (friendly) forces tracking technologies. Requires the Secretary to report experiment results to the defense and appropriations committees, together with a plan for the development, acquisition, and fielding of a functional, near real-time blue forces tracking system.

Title III: Operation and Maintenance - Subtitle A: Authorization of Appropriations - (Sec. 301) Authorizes appropriations for FY 2004 for operation and maintenance (O&M) for the armed forces and specified activities and agencies of DOD.

(Sec. 302) Authorizes appropriations for FY 2004 for: (1) working capital funds; (2) the defense health program; (3) chemical agents and munitions destruction, defense; (4) defense drug interdiction and counter-drug activities; and (5) the Defense Inspector General.

Subtitle B: Environmental Provisions - (Sec. 311) Amends the Sikes Act to extend its authorization of appropriations through FY 2008. Expresses the sense of Congress that the Secretary take all necessary steps to ensure full implementation of the provisions of such Act, including the implementation of integrated natural resources management plans on lands upon and surrounding military installations. Requires, in the case of such a plan for any military installation on Guam during FY 2004 through 2008, the management, control, and eradication of invasive species not native to the ecosystem of that military installation the introduction of which cause or may cause harm to military readiness, the environment, or human health or safety.

(Sec. 312) Includes within the Secretary's authority to transport humanitarian relief supplies the authority to transport supplies used to respond to or mitigate the effects of environmental emergencies. Authorizes the Secretary to transport supplies for such purpose, but only if other transportation sources are not readily available.

(Sec. 313) Repeals the authority to use environmental restoration account funds for the relocation of a contaminated facility, but retains the authority to pay relocation costs under cooperative agreements entered into up to September 30, 2003.

(Sec. 314) Authorizes the Secretary with respect to a defense agency or the Secretary of a military department, when engaged in an authorized activity that may or will result in the destruction of or adverse impact to a wetland, to make payments to a wetland mitigation banking program or approved mitigation sponsor. Directs the Secretary of the Army to issue regulations establishing in permits issued by such Secretary performance standards and criteria for the use of mitigation and mitigation banking as compensation for lost wetlands functions.

(Sec. 315) Authorizes the Secretary of the Navy to include environmental protection equipment within salvage facilities provided for public and private vessels. Allows claims for salvage services to include claims for environmental protection services.

(Sec. 316) Amends the National Defense Authorization Act for Fiscal Year 1991 to repeal the authority for a model program of environmental restoration at closed military bases.

(Sec. 317) Requires the Secretary to amend regulations establishing restoration advisory boards to require board meetings to be held at a reasonable time and manner and be open to the public, and for the public to be given timely notice of such meetings. Makes the Federal Advisory Committee Act inapplicable to such boards.

(Sec. 318) Amends the Endangered Species Act of 1973 to prohibit the Secretary of the Interior from designating as critical habitat any lands or other areas owned or controlled by DOD, or designated for its use, that are subject to an integrated natural resources management plan prepared under the Sikes Act, if such Secretary determines that the plan provides a benefit to the species for which critical habitat is proposed for designation. Requires such Secretary to consider the impact on national security when considering the designation of a critical habitat.

(Sec. 319) Amends the Marine Mammal Protection Act of 1972 to add the definition of "harassment" with respect to a military readiness activity. Authorizes the Secretary, after conferring with the Secretary of Commerce or the Interior (or both), to exempt any action or category of actions undertaken by DOD or its components from compliance with any requirement of such Act if the Secretary determines that the exemption is necessary for national defense. Allows the incidental takings of marine mammals while engaged in a military readiness activity, requiring publication of notice thereof only in the Federal Register.

(Sec. 320) Directs the Secretary to conduct a study of the impacts of the following activities at military installations and operational ranges: (1) civilian community encroachment; (2) DOD compliance with State implementation plans for air quality under the Clean Air Act; and (3) DOD compliance with the Solid Waste Disposal Act and the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. Requiresthe Secretary to: (1) prepare a plan to respond to encroachment issues affecting military installations and operational ranges; and (2) report to the defense committees on results of the impacts study.

(Sec. 321) Limits Army responsibility for water consumption impacts related to Fort Huachuca, Arizona. Recognizes the Upper San Pedro Partnership, Arizona, and its efforts to establish a collaborative water use management program in the Sierra Vista Subwatershed regional aquifer in Arizona. Directs the Secretary of the Interior to report to Congress: (1) on the water use management and conservation measures needed to restore and maintain the sustainable yield of such aquifer by and after September 11, 2001; and (2) annually on Partnership progress toward achieving and maintaining such sustainable yield. Expresses the sense of Congress that any future appropriations to the Partnership should take into account whether it has met its annual goals for overdraft reduction.

(Sec. 322) Directs the Secretary to establish a task force to: (1) determine and assess various means of enabling full use of the live ordnance delivery areas while protecting endangered species at the Barry M. Goldwater Range, Arizona; and (2) report to Congress on its activities.

(Sec. 323) Requires the Secretary to: (1) provide for an epidemiological study of exposure to perchlorate in drinking water; and (2) provide for an independent review of the effects of perchlorate on the human endocrine system.

(Sec. 324) Directs the Comptroller General (CG) to review and report to Congress on the Arctic Military Environmental Cooperation program.

Subtitle C: Workplace and Depot Issues - (Sec. 331) Exempts from the prohibition on private contracts for the performance of DOD firefighting or security guard functions a contract for the performance of firefighting functions for one year or less if such functions would have been performed by military firefighters who are otherwise deployed.

(Sec. 332) Repeals a provision excepting the Sacramento Army Depot, California, from limitations on the DOD contracting-out of depot-level maintenance of materiel.

(Sec. 333) Excepts from certain competition requirements a depot-level maintenance and repair workload that is performed at a Center of Industrial and Technical Excellence as designated by a public-private partnership consisting of a depot-level activity and a private entity.

(Sec. 334) Requires any deadline or other schedule-related milestone for completion of a DOD public-private competition to be established solely on the basis of considered research and sound analysis regarding the availability of sufficient DOD personnel, training, and technical resources. Allows a responsible DOD official to extend such a deadline if such resources are insufficient.

(Sec. 335) Prohibits studies or competition from being conducted under the policies and procedures contained in the revised Office of Management and Budget (OMB) Circular A-76, as in effect on May 1, 2003, for possible contracting-out of work being performed by DOD employees until 45 days after the Secretary reports to Congress on the effects of such revisions.

(Sec. 336) Authorizes the Secretary to carry out a pilot program for the procurement of information technology services for DOD that uses a best-value criterion in the source selection for the performance of such services. Terminates the program at the end of FY 2008. Requires the CG to review the program and report results to Congress.

(Sec. 337) Directs the Secretary to establish a pilot program under which the Secretary of each military department shall create, or continue the implementation of, high-performing organizations at military installations through the conduct of a Business Process Reengineering Initiative. Describes eligible organizations. Limits program participation to eight military installations and facilities. Requires the Secretaries to conduct annual performance reviews of such organizations.

(Sec. 338) Requires the Secretary of the Navy to establish a demonstration project during FY 2004 through 2006 under which three naval aviation depots may promote by one grade level workers certified at the journey level to perform multiple trades. Prohibits more than 15 percent of the wage grade journeymen at a project location from being selected to participate. Requires: (1) the Secretary to report to Congress on project results; and (2) theCG to evaluate the report and submit evaluation results to Congress.

Subtitle D: Other Matters - (Sec. 341) Directs the Secretary to coordinate with the Administrator of General Services to enable the use of commercial identifiers for commercial items within the Federal cataloging system.

(Sec. 342) Authorizes the Secretary to sell working-capital funded services of the Defense Information Systems Agency to a person outside DOD for use in the performance of the Navy-Marine Corps Intranet contract. Requires reimbursement for the costs of such services.

(Sec. 343) Mandates that public works, utility, and other municipal services needed for the operation of any DOD asset in Monterey County, California, be purchased from government agencies located in that County.

(Sec. 344) Directs the Secretary to provide, wherever practicable, prepaid phone cards or an equivalent benefit to military personnel stationed outside the United States who are eligible for combat zone tax exclusion benefits due to service in direct support of Operations Enduring Freedom and Iraqi Freedom. Limits the monthly benefit of the phone program. Terminates the program at the end of FY 2004. Authorizes the Secretary, if determined necessary, to award a contract for the deployment of additional telephones in such areas.

(Sec. 345) Directs the Secretary to submit to the defense and appropriations committees an assessment of the material condition of the Air Force's KC-135 aerial refueling aircraft.

Title IV: Military Personnel Authorizations - Subtitle A: Active Forces - (Sec. 401) Sets forth authorized end strengths for active-duty forces as of the end of FY 2004.

(Sec. 402) Increases effective on October 1, 2003, the permanent active-duty end strength minimum levels.

(Sec. 403) Directs the Secretary: (1) to prescribe quarterly end strength levels for each service; and (2) at least annually, to establish for each service the maximum permissible variance of actual strength for an armed force from the end strengths so established. Requires the Secretary to notify the defense committees of any such strength levels or variances.

Subtitle B: Reserve Forces - (Sec. 411) Sets forth the authorized end strengths as of the end of FY 2004 for members of the Selected Reserve and reserve personnel on active duty in support of the reserves.

(Sec. 413) Sets forth the minimum end strength for FY 2004 for Army and Air Force dual status military technicians.

(Sec. 414) Places specified FY 2004 limits on the number of non-dual status technicians authorized to be employed by the Army and Air National Guard.

(Sec. 415) Increases effective October 1, 2007, the permanent limitation on the number of non-dual status technicians authorized to be employed by the Army and Air Force Reserve.

Subtitle C: Authorizations of Appropriations - (Sec. 421) Authorizes appropriations for FY 2004 for: (1) military personnel; and (2) the Armed Forces Retirement Home.

Title V: Military Personnel Policy - Subtitle A: Officer Personnel Matters - (Sec. 501) Allows for the selection of the Chief of Naval Operations and Commandant of the Marine Corps from among all Navy flag officers and all general officers of the Marine Corps, respectively. (Currently, such selection must be from active-duty list officers of certain grades.)

(Sec. 502) Requires the Chief of the Army Veterinary Corps to be appointed from Corps officers.

(Sec. 503) Repeals the requirement that the officer holding the position of defense attache to the U.S. embassy in France hold at least the grade of brigadier general or rear admiral (lower half).

(Sec. 504) Repeals the termination provision for (thus making permanent) certain authorities relating to the management of general and flag officers in certain grades.

(Sec. 505) Allows health professions officers who have failed of selection for promotion to be retained on active duty until completion of the active duty service for which the officer is obligated, unless the Secretary concerned determines that the completion of such service is not in the best interests of that military department.

(Sec. 506) Makes permanent (currently terminates at the end of 2003) the authority to reduce the three-year time-in-grade requirement for retirement in that grade for officers above major and lieutenant commander.

(Sec. 507) Exempts the position of Associate Director of Central Intelligence for Military Support from number and percentage limitations of officers in that armed force if no military officers are serving in the positions of Director of Central Intelligence, Deputy Director of Central Intelligence, or Deputy Director of Central Intelligence for Community Management.

(Sec. 508) Allows the President, by and with the advice and consent of the Senate, to reappoint the officer serving as Chief of Naval Operations on October 1, 2003, for an additional term of up to two years.

(Sec. 509) Requires the Secretary to: (1) approve the frocking (wearing of the insignia of a promoted rank before the official promotion date) of an officer above O-6; and (2) notify Congress of such intention 30 days before exercising such authority.

Subtitle B: Reserve Component Matters - (Sec. 511) Repeals the requirement of: (1) selection board participation in the determination whether to continue officers on the reserve active-status list; (2) approval of such continuation by the Secretary concerned; and (3) a continuation board to meet for such purposes.

(Sec. 512) Authorizes a reserve officer who has been ordered to or is serving on active duty in support of a contingency operation to be considered for promotion by a vacancy promotion board for up to two years after the officer begins such duty.

(Sec. 513) Provides limited authority (currently, none) for the Secretary concerned to delegate the authority to place certain retired members in the Ready Reserve.

(Sec. 514) Includes enlisted personnel within the authority of the Secretary concerned to pay expenses of Army and Air Staff personnel, and National Guard Bureau personnel, attending the national conventions of certain military associations.

(Sec. 515) Permits the use of Ready Reserve personnel for responding to a terrorist or threatened terrorist attack in the United States that results or could result in significant (currently, catastrophic) loss of life or property, if the President determines that the requirements needed for responding to such an emergency exceed the response capabilities of local, State, and Federal civilian agencies.

(Sec. 516) Prohibits an officer who is on active duty in the Army or Air National Guard in a State, territory, or the District of Columbia and who is also in command of a National Guard unit from being relieved of such active duty if: (1) the President authorizes such service in both duty statuses; and (2) the governor of the State or territory or commanding general of the District consents to service in both statuses.

(Sec. 517) Directs the President to report to Congress on the mobilization during FY 2002 and 2003 of members of the reserves. Directs the Secretary to report to the defense committees on, among other things: (1) the effects of reserve personnel being called or ordered to active duty during such period on reserve component recruitment and retention; and (2) the lessons learned from reserve mobilizations.

(Sec. 518) Authorizes the Secretary to use O&M funds for activities and materials of the National Committee for Employer Support of the Guard and Reserve to further employer commitments to employees who are members of the reserves.

Subtitle C: ROTC and Military Service Academies - (Sec. 521) Includes room and board expenses within financial assistance authorized for cadets and midshipmen receiving Reserve Officers' Training Corps (ROTC) scholarships, as well as for specially selected members of the Army Reserve and Army National Guard enrolled in advanced courses under ROTC programs.

(Sec. 522) Increases from ten to 17 the number of scholarships authorized to be awarded annually at each military junior college under the Army Reserve ROTC scholarship program.

(Sec. 523) Entitles a non-scholarship member of the Selected ROTC to a monthly subsistence allowance for up to 20 months. Allows a member of the Senior ROTC who has completed the first year of an ROTC course, who is not eligible for advanced training, and who is not an appointed cadet or midshipman to: (1) contract to serve for the period required by the program; and (2) agree to accept an appointment, if offered, as a commissioned officer and to serve for the period prescribed by the Secretary. Terminates the latter authority after December 31, 2006.

(Sec. 524) Increases from two to three the annual number of cadets authorized to be appointed to each of the military service academies from Guam, the Virgin Islands, and American Samoa.

(Sec. 525) Provides that when a formal report by a DOD Inspector General concerning the circumstances of a separation of a cadet or midshipman from a service academy contains a specific finding that such person received administrative or punitive action, or resigned in lieu of such action, as a result of a reprisal or threat of reprisal, then the Secretary concerned may use such report as the sole basis for readmission of the former cadet or midshipman to the respective academy. Requires each Secretary to prescribe readmission regulations with the goal of readmitting such cadet or midshipman with no loss of academic or military status previously held.

(Sec. 526) Directs the Secretary to establish a DOD task force to examine matters relating to sexual harassment and violence at the United States Military Academy and United States Naval Academy. Requires the task force to report to the: (1) Secretary recommending ways by which DOD and the service academies may more effectively address such matters; and (2) Secretary and the Secretaries of the Army and Navy on activities of the task force and such academies to respond to sexual harassment and violence at the academies. Requires the Secretary to report to the defense committees on: (1) an evaluation of the above reports; and (2) the Secretary's assessment of the effectiveness of corrective actions being taken at the United States Air Force Academy as a result of various investigations undertaken there with respect to matters involving sexual assault and harassment. Terminates the task force 90 days after submission of its final report.

(Sec. 527) Authorizes the Secretary concerned to direct the Superintendent of the military academy of that department to prescribe a policy on sexual harassment and violence applicable to academy personnel. Outlines policy requirements (including promotion of the awareness of the incidence of rape, acquaintance rape, and other sexual offenses that involve academy personnel) and procedures to follow in case of the occurrence of sexual harassment or violence. Requires the Secretary of Defense to direct each Superintendent to undertake an annual assessment of that academy's policies, training, and procedures to prevent criminal sexual harassment and violence involving academy personnel. Requires annual reports from each Secretary on sexual harassment and violence involving academy personnel for each of the 2004 through 2008 academy program years. Directs the Secretary of Defense to submit each annual report to the defense committees.

(Sec. 528) Directs the Secretary of: (1) the Air Force to report to the Secretary of Defense recommended changes in policy and law pertaining to the selection, tenure, utilization, responsibilities, and qualifications of the permanent professors at the Air Force Academy; and (2) Defense to transmit such report to the defense committees, together with recommendations for action and proposals for legislation.

(Sec. 529) Authorizes the dean of the faculty at the Air Force Academy to be appointed from either a military officer or civilian position. (Currently, only current Academy department faculty heads may be considered.)

Subtitle D: Other Military Education and Training Matters - (Sec. 531) Authorizes the President of the Marine Corps University to confer the degree of operational studies upon graduates of the Command and Staff College's School of Advanced Warfighting.

(Sec. 532) Authorizes the Secretary to permit enlisted personnel to receive instruction at the Naval Postgraduate School, including as a participant in the Information Security Scholarship program. Requires such personnel, prior to any such instruction, to have been awarded a baccalaureate degree from an institution of higher education. Authorizes the Secretary, on a space-available basis, to permit enlisted personnel who are assigned permanently to the staff of the Postgraduate School or to a nearby command to receive instruction at such School, with appropriate fees and costs as determined by the Secretary.

(Sec. 533) Requires the Departments of the Army, Navy, and Homeland Security to bear the cost of instruction at the Air Force Institute of Technology received by members of such departments. Allows such instruction only on a space-available basis.

(Sec. 534) Includes any accrued interest within amounts authorized to be repaid under the Selected Reserve critical specialties educational loan repayment program.

(Sec. 535) Requires funding of educational assistance entitlement incentives under the National Call to Service program to be derived from the Department of Defense Education Benefits Fund.

(Sec. 536) Earmarks FY 2004 DOD O&M funds for assistance to local educational agencies. Directs the Secretary to notify each agency of its eligibility for such assistance.

(Sec. 537) Amends the Elementary and Secondary Education Act of 1965 to authorize impact aid for heavily impacted local educational agencies that lost eligibility for such assistance due to the privatization of military housing in that area.

Subtitle E: Administrative Matters - (Sec. 541) Prohibits a member from being deployed, or continued in a deployment, on any day in which the total number of days in which the member has been deployed out of the preceding 365 days would exceed the maximum number of deployment days prescribed by the Secretary, acting through the Under Secretary of Defense for Personnel and Readiness. Provides exceptions. Requires the Secretary concerned to pay a high-tempo allowance for members deployed in excess of the authorized number due to an exception. Prohibits such monthly allowance from exceeding $1,000. Makes a member ineligible for such allowance while serving in a duty assignment designated as exempt by the Secretary concerned. Requires: (1) such allowance to be paid from O&M funds; and (2) allowance payment information to be included in a currently-required annual report.

(Sec. 542) Increases from 60 to 120 days the amount of annual leave authorized to be accumulated by high-deployment members. Requires the excess leave to be used within three years after termination of the high-deployment period.

(Sec. 544) Amends the National Defense Authorization Act for Fiscal Year 1996 to require the Secretary concerned, when determining whether to award the Purple Heart to members held as prisoners of war before April 25, 1962, to consider historical information as to the prison camp or other circumstances in which the applicant was held captive, as well as the length of time that the applicant was held. Requires the Secretary to assist the applicant in obtaining necessary information for applying for the award.

(Sec. 545) Prohibits reserve and retired regular officers who serve on active duty for more than 270 days from holding elective office in a State if the holding of such office is prohibited by the laws of that State or interferes with the officer's performance of duties. Prohibits any officer holding an elective office from performing that office's duties while serving on active duty.

(Sec. 546) Requires the Secretary to prescribe DOD policy on the public release of identifying information concerning military casualties.

(Sec. 547) Requires the Secretary to develop and report to the defense committees on a human capital resources strategy for space personnel of DOD. Requires the CG to review the strategy and report results to the defense committees.

(Sec. 548) Authorizes the Secretary to carry out a joint advertising, market research, and studies program to complement the recruiting advertising programs of the military departments and their ability to attract and recruit qualified individuals. Provides funding from defense-wide O&M funds.

(Sec. 549) Prohibits the Secretary of the Navy from reducing or disestablishing a Naval or Marine Corps Reserve aviation squadron before February 1, 2004.

Subtitle F: Military Justice Matters - (Sec. 551) Amends the Uniform Code of Military Justice (UCMJ) to allow a person charged with having committed a child abuse offense to be tried by court-martial at any time before the child reaches the age of 25.

(Sec. 552) Makes the requisite blood alcohol content under the UCMJ equal to or in excess of (currently, in excess of) the requisite blood alcohol content adopted by the State in which the offense occurs. Provides for the adoption of the lower requisite blood alcohol content in instances occurring on military installations located in more than one State.

Subtitle G: Benefits - (Sec. 561) Makes eligible for the Federal Long-Term Care Insurance Program any former Federal employee who has met all other Federal retirement qualifications but has not yet reached the minimum requisite age, including reservists transferred to the Retired Reserve who are under 60 years of age.

(Sec. 562) Removes: (1) the requirement that a member must have died in a military medical facility within the United States in order to be eligible for the transportation of remains for burial; and (2) the prohibition against transportation of such remains to a place outside the United States.

(Sec. 553) Amends the Defense Dependents' Education Act of 1978 to make eligible for tuition-free education under such Act the dependents of reserve members who: (1) are ordered to active duty; (2) were so ordered from a location inside the United States (other than Alaska or Hawaii); and (3) are serving outside the United States or in Alaska or Hawaii.

Subtitle H: Domestic Violence - (Sec. 571) Directs the Secretary concerned to provide travel and transportation allowances for the relocation of abused dependents of military personnel.

(Sec. 572) Revises the date of commencement of the payment of transitional compensation to the dependents of members separated from the armed forces for dependent abuse. Makes the duration of such payments not less than 12 months nor more than 36 months.

(Sec. 573) Authorizes the Secretary concerned to make eligible for transitional compensation the dependents and former dependents of a former member of the armed forces in a case in which such dependents are not otherwise eligible for such benefits and such Secretary determines that the former member engaged in dependent-abuse conduct and was thereafter separated from the armed forces. Authorizes such Secretary to make adjustments to the length and amount of such compensation in light of the circumstances. Provides that either a voluntary or involuntary separation shall trigger such assistance.

(Sec. 575) Directs the CG to: (1) review and assess DOD progress in implementing the recommendations of the Defense Task Force on Domestic Violence; and (2) report results to the defense committees.

(Sec. 576) Directs the Secretary concerned to conduct a multidisciplinary, impartial review in the case of each fatality known or suspected to have resulted from domestic violence or child abuse with respect to military personnel and dependents of such personnel in that military department. Requires the Secretary of Defense to provide guidance for the conduct of such reviews.

(Sec. 577) Expresses the sense of Congress that the Secretary of: (1) Defense shoulddevelop a strategic plan for domestic violence that incorporates principles proposed by the Defense Task Force on Domestic Violence in its third annual report; and (2) each military department should establish and support a Victim Advocate Protocol.

Subtitle I: Other Matters - (Sec. 581) Directs the Secretary to: (1) implement and sustain programs to celebrate the contributions and sacrifices of the American military family; (2) focus such celebrations during a specific period of each year; and (3) seek the assistance and support of appropriate civilian organizations, associations, and other entities in carrying out such celebrations.

(Sec. 582) Authorizes the Secretary of a military department to provide support services to chaplain-led programs to assist active-duty military personnel and their immediate family members and reserve active-status personnel and their immediate family members in building and maintaining a strong family structure.

(Sec. 583) Establishes the Department of Veterans Affairs-Department of Defense Joint Executive Committee to recommend to the Secretaries of such departments the strategic direction for joint coordination and sharing efforts between and within such departments. Requires an annual report from the Committee to the Secretaries and Congress.

(Sec. 584) Requires the Secretary to: (1) commence a review of the death of Colonel James S. Sabow, United States Marine Corps, who died on January 22, 1991, at the Marine Corps Air Station, El Toro, California, with the principal review focus being the determination of the cause of death; and (2) report findings to the defense committees.

(Sec. 585) Directs the Secretary to: (1) prescribe the DOD policy on concurrent deployment to a combat zone of both spouses of a dual-military family with one or more minor children; and (2) transmit such policy to the defense committees.

(Sec. 586) Provides that an amendment or cancellation of a DOD directive relating to access to military installations for conducting limited personal commercial solicitation shall not take effect until 90 days after the Secretary submits to Congress notice of the amendment or cancellation and the reasons therefor.

(Sec. 587) Directs the Secretary to study and report to Congress on the adequacy and impact of the matching funds requirement for States participating in the National Guard Challenge Program and on potential alternatives that would provide management flexibility.

(Sec. 588) Expresses the sense of Congress that the Secretary should: (1) use available authority to disburse funds rewarding individuals who provide information leading to the conclusive resolution of the status of any missing members of the armed forces; and (2) authorize and publicize an award of $1 million for information resolving the fate of those military personnel, such as Michael Scott Speicher, who the Secretary has reason to believe may yet be alive in captivity.

Title VI: Compensation and Other Personnel Benefits - Subtitle A: Pay and Allowances - (Sec. 601) Waives any FY 2004 pay increases tied to increases in the General Schedule of Compensation for Government employees. Increases, effective January 1, 2004, the rates of basic pay for military personnel.

(Sec. 602) Requires: (1) the annual adjustment to military basic pay rates on January 1 of each year; and (2) that such adjustment be an equal percentage increase for all military personnel based on the percentage increase in the Economic Cost Index. Directs that if the President considers any adjustment inappropriate because of national emergency or serious economic conditions, the President shall prepare and transmit to Congress a plan for an alternative pay adjustment for that year, including an assessment of its impact on the Government's ability to recruit and retain well-qualified persons for the armed forces.

(Sec. 603) Provides for the computation of the basic pay rate for commissioned officers with prior enlisted or warrant officer service.

(Sec. 604) Authorizes the Secretary to provide to a member assigned to duty in a high-cost duty location or under other unique and unusual circumstances, but not entitled to the meals portion of the per diem allowance in connection with such duty: (1) meals at no cost; (2) a basic allowance for subsistence at the standard rate; and/or (3) a supplemental subsistence allowance at a rate higher than the basic allowance for subsistence. Makes eligible for such meals or allowance members assigned to qualifying duty after September 11, 2001.

(Sec. 605) Entitles each member married to another member without dependents, when both members are on sea duty, to a basic allowance for housing. (Currently, such members are jointly entitled to one such allowance.)

(Sec. 606) Increases the monthly rate of the family separation allowance from $100 to $250 for the period beginning October 1, 2003, and ending December 31, 2004.

Subtitle B: Bonuses and Special and Incentive Pays - (Sec. 611) Extends through 2004 specified authorities currently scheduled to expire at the end of 2003 with respect to certain special pay and bonus programs within the regular and reserve armed forces.

(Sec. 615)Authorizes hazardous duty pay for duty involving the use of ski-equipped aircraft on the ground in Antarctica or on the Arctic icepack.

(Sec. 616) Limits the number of officers in the Selected Reserve who may be paid special pay for reserve officers holding positions of unusual responsibility and of a critical nature.

(Sec. 617) Ensures the payment of the Selected Reserve reenlistment bonus during any period that such members are called or ordered to active duty.

(Sec. 618) Makes reserve personnel on inactive duty eligible for hostile fire and imminent danger pay for periods during which such member: (1) was subject to hostile fire or explosion of hostile mines; (2) was on duty in an area of imminent danger; (3) was killed, injured, or wounded in hostile action; or (4) was on duty in a foreign area in which the member was subject to the threat of harm or imminent danger due to civil insurrection, civil war, terrorism, or wartime conditions. Continues such eligibility during any period of required hospitalization.

(Sec. 619) Increases from $150 to $225 the rate of hostile fire and imminent danger pay for the period beginning October 1, 2003, and ending December 31, 2004.

(Sec. 620) Authorizes such pay to members assigned to duty in the sea area of the Mediterranean Sea east of 30 degrees East Longitude during the period beginning March 19, 2003, and ending April 11, 2003.

(Sec. 621) Makes officers (currently, only enlisted personnel) eligible for: (1) special pay or a bonus for extending overseas tours of duty; and (2) a rest and recuperative absence in lieu of such pay or bonus.

(Sec. 622) Repeals the requirement of prior congressional notification prior to the designation of critical military skills for purposes of eligibility for a retention bonus.

(Sec. 623) Makes appointed warrant officers eligible for an accession bonus for new officers serving in critical skills positions.

(Sec. 624) Authorizes the Secretary of a military department to pay a special pay of $150 monthly to a member entitled to basic pay or a reserve member performing inactive duty training who is assigned to duty as a member of a Weapons of Mass Destruction Civil Support Team if such Secretary determines that the special pay is needed to address recruitment or retention concerns in that military department.

(Sec. 625) Authorizes the Secretary concerned to pay an incentive bonus of up to $4,000 to a member in pay grade E-6 with not more than ten years of service, or a member in pay grade E- 5 or below regardless of the number of years of service, who agrees to convert to, and serve for at least three years in, a military occupational specialty for which there is a shortage of trained and qualified personnel. Requires a pro rata bonus repayment for any obligated period not successfully served. Terminates such authority on December 31, 2006.

(Sec. 626) Authorizes the Secretary or the Secretary concerned to waive critical skill reenlistment, Selected Reserve reenlistment, or Ready Reserve reenlistment bonus eligibility requirements in the case of a reenlistment or voluntary enlistment extension while the member is serving on active duty in Afghanistan, Iraq, or Kuwait in support of Operations Enduring Freedom or Iraqi Freedom.

Subtitle C: Travel and Transportation Allowances - (Sec. 631) Authorizes the Secretary concerned to allow a member making a permanent change of station to arrange for the private shipment of a motor vehicle in lieu of motor vehicle transportation at the expense of the United States.

(Sec. 632) Authorizes round-trip transportation for up to two family members of a member who is retired due to an illness or injury incurred during active duty and hospitalized in a military medical facility if the attending physician and surgeon and the commander or head of the facility concerned determine that the presence of the family members would be in the best interest of the hospitalized family member.

(Sec. 633) Authorizes the payment or reimbursement of student baggage storage costs for dependent children accompanying members assigned to a permanent change of station overseas at any time in the same fiscal year of such change in station, as selected by the member.

(Sec. 634) Authorizes the Secretary to include in a contract for the transportation of baggage and household effects for members a clause that requires the carrier to pay the full replacement value for loss or damage to such baggage or effects.

(Sec. 635) Authorizes the Secretary concerned to pay or reimburse certain members assigned to temporary duty of more than 30 days in support of a contingency operation or in other specific situations as designated by such Secretary for the lodging expenses incurred while performing such duty, as long as the members perform such duty away from their home or permanent duty station.

Subtitle D: Retired Pay and Survivors Benefits - (Sec. 641) Authorizes the concurrent payment, phased in over a ten-year period from 2004 through 2013, of military retired pay and veterans' disability compensation for military retirees with service-connected disabilities rated at 50 percent or more. Provides special rules for retirees whose retirements were necessitated by physical disabilities. Prohibits such concurrent compensation for disabled retirees with less than 20 years of retirement-creditable service. Requires a person also eligible for combat-related special compensation under the next section to choose compensation from that program or from the concurrent compensation program, but not from both.

(Sec. 642) Authorizes the payment of special compensation for combat-related disabilities, as provided under the National Defense Authorization Act for Fiscal Year 2003, to all retirees eligible under the criteria set forth in such Act, including those whose disabilities are rated less than 50 percent. Requires the same choice as above for those eligible under this program and the concurrent compensation program.

(Sec. 643) Makes commanders of unified or specified combatant commands equal to chiefs of service for purposes of computation of the retired pay base.

(Sec. 644) Authorizes the payment of a Survivor Benefit Plan (SBP) annuity for the surviving spouses of reserve personnel not eligible for retirement who die from an injury or illness incurred or aggravated during inactive-duty training.

(Sec. 645) Expands coverage under the SBP for dependent children and surviving spouses of military personnel who die while on active duty. Requires vitiation of elections by disability-retired military personnel who die within one year after retirement from causes related to such disability with respect to elections of SBP or Supplemental SBP benefits and payments for individuals who are not dependents of the retiree.

(Sec. 646) Increases from $6,000 to $12,000 the death gratuity payable to survivors of deceased military personnel. Expresses the sense of Congress recognizing the sacrifices made by members of the armed forces, the significant disparity between death benefits for survivors of deceased military personnel and those for survivors of civilian victims of terrorism, and the inadequacy of the current military death benefits system. Directs the: (1) Secretary to study the adequacy of all current and projected death benefits for survivors of military personnel; and (2) CG to study death benefits payable under Federal, State, and local laws. Requires both studies' results to be submitted to the defense committees.

Subtitle E: Commissary and Nonappropriated Fund Instrumentality Benefits - (Sec. 651) Authorizes the use of military commissary stores on the same basis as for members on active duty for members of the Selected Reserve, members of the Ready Reserve not in the Selected Reserve, and reserve retirees under the age of 60, as well as their dependents. Repeals provisions limiting commissary access to 24 days per year for Ready Reserve personnel with 50 or more retirement-creditable points and persons qualified for military retired pay but for being under 60 years of age.

(Sec. 652) Directs the Secretary to operate as separate DOD systems a defense commissary system and an exchange stores system. Makes such requirement inapplicable to NEXMART stores of the Navy Exchange Service Command established before October 1, 2003.

(Sec. 653)Authorizes private persons to perform certain limited commissary store functions. Prohibits any change to private operation of such a function currently being performed by more than ten DOD civilian employees until 75 days after the Secretary so notifies Congress.

(Sec. 654) Requires (current law authorizes) commissary store operating expenses to be paid from appropriated funds (as opposed to nonappropriated fund instrumentalities). Allows amounts appropriated to cover operating expenses of the Defense Commissary Agency and the defense commissary system to be supplemented by amounts received as reimbursement for support activities provided by commissary activities.

(Sec. 655) Amends the Defense Authorization Amendments and Base Closure and Realignment Act and the Defense Base Closure and Realignment Act of 1990 to make defense base closure account funds available to the Secretary, without appropriation and until expended, to acquire, construct and improve commissary stores and real property and facilities for nonappropriated fund instrumentalities. (Currently, the Secretary is authorized to use such funds in such aggregate amounts as provided in advance in appropriation Acts.)

Subtitle F: Other Matters - (Sec. 661) Requires the CG to report to Congress regarding the adequacy of special pays and allowances for service members who experience frequent deployments of less than 30 days away from their permanent duty stations.

Title VII: Health Care Provisions - Subtitle A: Enhanced Benefits for Reserves - (Sec. 701)Authorizes the provision of medical and dental screening for members of the Ready Reserve who are called or ordered to active duty for a period of more than 30 days.

(Sec. 702) Makes eligible for enrollment under TRICARE members of the Selected Reserve and members of the Individual Ready Reserve, as well as the dependents of each, for any period that the member: (1) is an eligible unemployment recipient; or (2) is not eligible for health care benefits under an employer-sponsored health benefits plan. Allows the provision of either self alone or self and family coverage. Directs the Secretary to: (1) provide at least one open enrollment period for such individuals each year; and (2) charge annual premiums for such coverage. Prohibits a person from so enrolling while entitled to transitional health care authorized for a temporary period after active-duty service. Terminates such enrollment authority after December 31, 2004.

(Sec. 703) Provides an effective active-duty date, for purposes of eligibility for TRICARE benefits as active-duty personnel, for a reserve member who is issued a delayed-effective-date active-duty order or is covered by such an order.

(Sec. 704) Extends until January 1, 2005, the period for which former active-duty personnel and reserve personnel called to active duty for a contingency operation shall be entitled to transitional health care benefits to 180 days (currently, either 60 or 120 days depending on total years of active-duty service).

(Sec. 705) Directs the CG to evaluate, and report to the defense committees on, the needs of reserve personnel and their families for obtaining and maintaining coverage for health care benefits under health care benefits plans and programs, with special consideration for the increased use of such personnel for mobilized military operations.

(Sec. 706) Limits to $400 million the FY 2004 outlays for temporary Reserve health care programs.

(Sec. 707) Requires the designation for each of the TRICARE regions of at least one person to serve full-time as a beneficiary counseling and assistance coordinator solely for reserve members and their dependents who are beneficiaries under the TRICARE program.

(Sec. 708) Makes eligible for medical and dental care in any military medical facility a member of the reserves who has been commissioned as an officer if: (1) the member has requested orders for active duty for the initial period of duty following commissioning; (2) the request has been approved; (3) the orders are to be issued but have not been issued; and (4) the member does not have other health insurance or coverage.

Subtitle B: Other Benefits Improvements - (Sec. 711) Requires the Secretary to accelerate implementation of the plan required under the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Spence Act) relating to chiropractic health care services and benefits, with a goal of fully implementing the plan by October 1, 2005.

(Sec. 712) Includes a dental specialist as a dental care provider for purposes of authorized reimbursement of certain travel expenses of a covered military health care beneficiary who is referred by a primary care physician to a specialty care provider who is more than 100 miles from the location of the primary care physician.

(Sec. 713) Makes eligible for the premium-based temporary health care program, currently available only to members of the armed forces, members and dependents of all uniformed services, including members of the Commissioned Corps of the Public Health Service and the National Oceanic and Atmospheric Administration who are TRICARE beneficiaries.

(Sec. 714) Amends the National Defense Authorization Act for Fiscal Year 1997 to allow designated health care providers to market services to, and enroll covered beneficiaries with, other health insurance providers under specified requirements and limitations.

Subtitle C: Planning, Programming, and Management - (Sec. 721) Makes permanent (currently terminates on December 31, 2003) DOD authority to enter into personal services contracts for health care services to be performed at locations outside of military medical treatment facilities.

(Sec. 722) Authorizes the Secretary to determine separate Medicare-eligible retiree health care fund valuations and contributions for each participating military department.

(Sec. 723) Directs the Secretary to: (1) conduct surveys in at least 20 TRICARE Standard market areas to determine the number of health care providers in each area that are accepting new patients; and (2) designate a senior DOD official to take necessary actions to achieve and maintain participation of health care providers in TRICARE Standard in each market area in a number adequate to ensure its viability for beneficiaries in that area. Requires the CG to review the above actions and report, semiannually, to the defense committees.

(Sec. 724) Directs the Secretary to: (1) develop a plan for providing DOD health coverage information to members, former members, and dependents eligible for certain benefits, including benefits under TRICARE; (2) implement such plan with respect to any health care contract entered into by DOD after May 31, 2003; and (3) report to the defense committees on such plan and a schedule for implementation.

(Sec. 725) Transfers certain contractors and providers under the DOD pharmacy benefits program from membership on the Pharmacy and Therapeutics Committee to membership on the Uniform Formulary Beneficiary Advisory Panel.

(Sec. 726) Amends the National Defense Authorization Act for Fiscal Year 1993 to direct the Secretary to establish a working group on the provision of military health care to persons who rely for such care at military installations selected for closure or realignment either under the Defense Base Closure and Realignment Act of 1990 or as a result of force posture changes. Terminates the working group on December 31, 2006.

(Sec. 727) Authorizes the Secretaries of Defense and Veterans Affairs to conduct a program to develop and evaluate integrated healing care practices for military personnel and veterans. Requires such program to be carried out through the Department of Veterans Affairs-Department of Defense Joint Executive Committee as established under prior law.

Title VIII: Acquisition Policy, Acquisition Management, and Related Matters - Subtitle A: Acquisition Policy and Management - (Sec. 801) Directs the Secretary to require the Secretary of each military department, the head of each defense agency, and the head of each DOD field activity to ensure that decisions made regarding consolidation of contract requirements (consolidation) are made with a view to providing small businesses with appropriate opportunities to participate in DOD procurements as prime contractors and/or subcontractors. Prohibits any such official from executing an acquisition strategy that includes a consolidation with a total value in excess of $5 million unless the senior procurement executive concerned first: (1) conducts market research; (2) identifies any alternative contract approaches that would involve a lesser degree of consolidation; and (3) determines that the consolidation is necessary and justified. Requires the Secretary to: (1) revise the data collection systems of DOD to ensure that such systems are capable of identifying each procurement that includes a consolidation of contract requirements with a total value in excess of $5 million; and (2) ensure that appropriate DOD officials review the information collected in cooperation with the Small Business Administration.

(Sec. 802) Directs the Secretary to prescribe a quality control policy for the procurement of aviation critical safety items and of modifications, repair, and overhaul of such items.

(Sec. 803) Requires the Administrator for Federal Procurement Policy to establish a program under which States and units of local government may procure, through contracts entered into by DOD or the Department of Homeland Security, anti-terrorism technologies or services for preventing, detecting, identifying, deterring, or recovering from acts of terrorism.

(Sec. 804) Authorizes the Secretary, through FY 2006, to settle any financial account for a contract entered into by the Secretary or the Secretary of a military department before October 1, 1996, that is administratively complete if the account has an unreconciled balance, either positive or negative, of less than $100,000.

(Sec. 805) Requires DOD to fully comply with Federal competitive contracting requirements for any contract awarded for reconstruction activities in Iraq, and to conduct a full and open competition for performing work needed for the reconstruction of the Iraqi oil industry. Requires DOD, if it does not have on the date of enactment of this Act a fully competitive contract to replace the March 8, 2003, contract for the reconstruction of the Iraqi oil industry, to report to Congress detailing the reasons for allowing the March 8 contract to continue.

Subtitle B: United States Defense Industrial Base Provisions - Part I: Essential Items Identification and Domestic Production Capabilities Improvement Program - (Sec. 811) States that no provision of, or amendment made by, this Subtitle shall apply to the extent that the Secretary, after appropriate consultation, determines that it is inconsistent with U.S. obligations under an international agreement.

(Sec. 812) Directs the Secretary to establish a program to assess the: (1) degree to which the United States is dependent on foreign sources of supply; and (2) capabilities of the U.S. defense industrial base to produce military systems necessary to support national security requirements. Requires the Secretary to collect certain data in support of the program, including contracts and their bids and proposals, and to ensure that collected information remains confidential. Directs the Secretary to annually prepare an assessment of the data compiled and report such assessment to the defense committees.

(Sec. 813) Directs the Secretary to: (1) establish a process to identify essential items and components with respect to each military system; (2) produce a list of such items, to be known as the military system essential item breakout list; and (3) report annually to the defense committees on the implementation of such requirements. Requires a study by a federally funded research and development center to recommend those items for inclusion on such list.

(Sec. 814) Establishes in the Treasury the Defense Industrial Base Capabilities Fund toenhance or reconstitute U.S. industrial capability to produce items on the military system essential item breakout list or other essential military items in the quantity and quality necessary to achieve national security objectives. Requires the Fund Manager to report annually to Congress regarding Fund activities.

Part II: Requirements Relating to Specific Items - (Sec. 821) Directs the Secretary to: (1) identify and list foreign countries that restrict the provision or sale of military goods or services to the United States because of U.S. counterterrorism or military operations after the date of enactment of this Act; and (2) review and update such list as appropriate. Prohibits the Secretary from procuring any items or components contained in military systems if the items or components are manufactured in a foreign country on such list. Authorizes the waiver of such prohibition after notification of Congress of the unusual and compelling urgency with respect to obtaining such item or component.

(Sec. 822) Directs the Secretary to plan and establish an incentive program for contractors to purchase capital assets manufactured in the United States in part with funds available to DOD. Allows the Defense Industrial Capabilities Fund to be used for incentive payments under the program.

(Sec. 823) Directs the Secretary to publish in the Federal Register information on Government contracting for assisting machine tool companies in the United States and companies that use machine tools. Requires the Secretary to incorporate into the DOD science and technology initiatives on manufacturing technology an objective of developing advanced machine tool capabilities.

(Sec. 824) Directs the Secretary to study and report to Congress on the adequacy of the U.S. industrial base to meet defense requirements for beryllium.

Part III: Other Domestic Source Requirements - (Sec. 826)Exempts from Buy American requirements procurements: (1) outside the United States in support of contingency operations; (2) for which other than competitive procedures have been approved which relate to unusual and compelling urgency of need; and (3) of waste and byproducts of cotton and wool fiber for use in the production of propellants and explosives.

(Sec. 828) Provides a Buy American requirement exception with respect to ball and roller bearings prepared for use in foreign products.

Subtitle C: Defense Acquisition and Support Workforce Flexibility - (Sec. 831) Repeals provisions establishing certain acquisition workforce directors, boards, and policies. Authorizes the Secretary (currently the acquisition career program board concerned) to waive acquisition workforce management requirements when the Secretary determines that the employee possesses significant potential for advancement to levels of greater responsibility and authority.

(Sec. 832) Eliminates the requirement that the Office of Personnel Management (OPM) approve of DOD civilian workforce management requirements.

(Sec. 833) Provides for a single Acquisition Corps for all of the armed forces (currently one for each department).

(Sec. 834) Directs the Secretary (currently, each department) to conduct internship, cooperative education, and scholarship programs for aiming promising students toward DOD acquisition careers.

(Sec. 835) Authorizes the Secretary to prescribe a different minimum number of years of experience, different minimum education qualifications, and different tenure of service requirements for eligibility for appointment or advancement to the following acquisition positions: contracting officer, program executive officer, senior contracting official, program manager, and positions in the contract contingency force that are filled by military personnel.

Subtitle D: Amendments to General Contracting Authorities, Procedures, and Limitations - (Sec. 841) Authorizes the Secretary to enter into personal services contract if the personal services: (1) are to be provided by individuals outside the United States, regardless of their nationality, and the Secretary determines that the services are necessary and appropriate for supporting DOD activities and programs outside the United States; (2) directly support the mission of a defense intelligence component or counterintelligence organization of DOD; or (3) directly support the mission of the DOD special operations command.

(Sec. 842) Makes certain contractor-to-agency notification requirements with respect to cost contracts and cost-plus-a-fixed-fee contracts inapplicable to a prime contract with a contractor that maintains a purchasing system approved by the contracting officer for that contract.

(Sec. 843) Limits to five years the base period for which DOD task and delivery order contracts may be awarded.

(Sec. 844) Repeals the requirement that a procurement contractor include written assurances regarding the completeness, accuracy, and contractual sufficiency of technical data provided by the contractor.

(Sec. 845) Amends the Stump Act to require the Director of Operational Test and Evaluation, if items are deployed under rapid acquisition and deployment procedures before completion of operational testing and evaluation, to have access to relevant operational records and data in order to complete such testing and evaluation.

(Sec. 847) Amends the National Defense Authorization Act for Fiscal Year 1994 to extend through FY 2008 DOD authority to engage in certain weapons-related prototype projects. Includes under such authority the improvement of weapons or weapon systems currently in use by the armed forces. Authorizes the Secretary to carry out a pilot program for follow-on contracting for the production of items or processes that are developed by nontraditional defense contractors under prototype projects. Terminates pilot program authority on September 30, 2008.

(Sec. 848) Authorizes the Secretary to delegate to the commander of the unified combatant command responsible for joint warfighting experimentation the authority to develop and acquire battlefield command, control, communications, and intelligence equipment and other equipment appropriate for joint warfighting experimentation purposes. Provides cost limits. Requires the CG to review the implementation of this section and report review results to Congress.

Subtitle E: Acquisition-Related Reports and Other Matters - (Sec. 851) Directs the CG to report to the defense and appropriations committees on the timeliness of DOD contract payments made to small businesses during FY 2001 and 2002.

(Sec. 852) Makes the Act known as the Randolph-Sheppard Act inapplicable to any existing DOD dining facility contract entered into with a nonprofit agency for the blind or other severely handicapped in compliance with the Javits-Wagner-O'Day Act. Makes the Randolph-Sheppard Act the official short title of such Act.

(Sec. 853) Authorizes the Secretary to carry out a demonstration project of providing defense contracting opportunities for severely disabled individuals.

Title IX: Department of Defense Organization and Management - Subtitle A: Duties and Functions of Department of Defense Officers and Organizations - (Sec. 902) Redesignates the CINC Initiative Fund as the Combatant Commander Initiative Fund. Includes joint warfighting capabilities among authorized Fund activities. Increases the maximum amounts authorized for various Fund activities.

(Sec. 903) Directs the Chairman of the Joint Chiefs of Staff to report biennially to the defense committees on the results of a comprehensive examination of the national military strategy, including the risks associated with executing current missions. Requires each report to first be submitted to the Secretary, who shall include assessments and comments before forwarding the reports to such committees.

(Sec. 904) Directs the Secretary to report to the defense committees on the changing roles of the U.S. Special Operations Command.

(Sec. 905) Expresses the sense of Congress that the Secretary should maintain the functions and missions of the Army Peacekeeping Institute at the Army War College in Carlisle, Pennsylvania, or within a joint entity of DOD to ensure that members continue to study the strategic challenges and uses of peacekeeping missions.

(Sec. 906) Authorizes the Secretary to transfer to OPM the personnel security investigation functions currently performed by DOD's Defense Security Service, after the Secretary certifies to the defense committees that such transfer would meet specified conditions, including full OPM capability to perform such functions in a timely manner. Requires the transfer of appropriate personnel. Requires the OPM Director to review all other functions currently performed by the Defense Security Service and determine whether each function is inherently governmental or otherwise inappropriate for performance by contractor personnel.

(Sec. 907) Prohibits, during FY 2004, the number of defense acquisition and support personnel from being greater than one percent above, or less than one percent below, the number of such personnel as of October 1, 2003. Allows a waiver of such limitation for the protection of a significant U.S. national security interest.

Subtitle B: Space Activities - (Sec. 911) Directs the Secretary to develop and implement a space science and technology strategy and to annually review and, as appropriate, revise such strategy. Requires such strategy to be included as part of the annual National Security Space Plan. Requires the CG to review the strategy and report review results to the defense committees.

(Sec. 912) Declares it to be the policy of the United States for the President to undertake appropriate actions to ensure that the United States has the necessary capabilities to launch and insert U.S. national security payloads into space whenever needed.

(Sec. 913) Authorizes the Secretary to carry out a three-year pilot program to determine the feasibility and desirability of providing to non-U.S. Governmental entities specified space surveillance data support, including tracking services and data analysis. Requires a recipient to: (1) pay for such services; and (2) agree not to transfer any data or information received to any other entity without the Secretary's express approval. Prohibits services or information concerning or derived from U.S. intelligence assets or data from being provided under the pilot program.

(Sec. 914) Mandates additional information in a required report from the Secretary to the defense committees concerning the Global Positioning System.

(Sec. 915) Requires a report from the Secretary to the defense committees on the role of the U.S. Strategic Command in planning and requirements development for space systems to support the warfighter and the processes by which space systems capabilities are integrated into military training and doctrine.

Subtitle C: Department of Defense Intelligence Components - (Sec. 921) Redesignates the National Imagery and Mapping Agency as the National Geospatial-Intelligence Agency. Includes geospatial intelligence within such Agency's missions. Makes conforming amendments necessitated by such redesignation under defense intelligence provisions as well as the National Security Act of 1947.

(Sec. 922) Amends the National Security Act of 1947 to allow the Director of the National Security Agency (NSA) to exempt NSA's operational files from public disclosure requirements. Outlines exceptions. Provides for judicial review whenever any person requesting information under the Freedom of Information Act alleges that the NSA has improperly withheld records. Requires the Directors of NSA and Central Intelligence, at least every ten years, to review the exemptions to determine whether any should be removed, requiring consideration of the historical value of or other public interest in the subject matter of an exempted file and the potential for declassifying a significant part of the information.

(Sec. 923) Declares it to be a DOD goal to fully coordinate and integrate the intelligence, surveillance, and reconnaissance capabilities and developmental activities of the military departments, intelligence agencies, and relevant combatant commands. Requires the Under Secretary of Defense for Intelligence to: (1) establish an Intelligence, Surveillance, and Reconnaissance Integration Council to assist the Under Secretary in the integration of intelligence, surveillance, and reconnaissance capabilities; (2) develop a comprehensive Defense Intelligence, Surveillance, and Reconnaissance Integration Roadmap to guide the development and integration of DOD intelligence, surveillance, and reconnaissance capabilities for 15 years; and (3) report results to the defense, appropriations, and intelligence committees.

(Sec. 924) Requires the Secretary to: (1) direct that acquisitions under the National Security Agency Modernization Program be directed and managed by the Under Secretary of Defense for Acquisition, Technology, and Logistics; and (2) designate projects under such Program as major defense acquisition programs. Requires such Under Secretary to exercise milestone decision authority with respect to such projects. Allows such Under Secretary to delegate the milestone decision authority back to the NSA Director after September 30, 2005, upon meeting certain conditions.

(Sec. 925) Amends the David L. Boren National Security Education Act of 1991 to remove provisions allowing for civilian employment after a one-year period following graduation from the national security education scholarship or fellowship program under such Act. Requires, upon such graduation, employment in a DOD national security position for at least one year for each year the scholarship or fellowship assistance was provided.

(Sec. 926) Authorizes the NSA Director to provide living quarters to a student in the Student Educational Employment Program or similar program while the student is employed at the Agency laboratory.

(Sec. 927) Requires at least 90 percent of the total amount authorized to be appropriated for FY 2004 for the acquisition, processing, and licensing of imagery from commercial sources to be used for: (1) acquisition of space-based imagery from commercial sources; (2) support for the development of next-generation commercial imagery satellites; and (3) support for infrastructure improvements that meet unique requirements related to commercial imagery. Authorizes the Secretary to waive such requirement for national security purposes, requiring justification therefor to the defense, intelligence, and appropriations committees. Requires the Secretary to report to such committees on actions taken and to be taken by the Secretary to implement the President's U.S. Commercial Remote Sensing Space Policy.

Subtitle D: Other Matters - (Sec. 931) Precludes the Asia-Pacific Center for Security Studies from accepting gifts and donations from a Federal department or agency.

(Sec. 932) Amends the Defense Economic Adjustment, Diversification, Conversion, and Stabilization Act of 1990 to make the Secretary the permanent Chairman of the Economic Adjustment Committee. (Currently, such chairmanship rotates between the Secretaries of Defense, Labor, and Commerce.)

(Sec. 933) Includes within Federal provisions concerning the operation and control of the Pentagon Reservation and defense facilities in the National Capital Region the land and facilities at the Raven Rock Mountain Complex.

Title X: General Provisions - Subtitle A: Financial Matters - (Sec. 1001) Authorizes the Secretary, in the national interest, to transfer up to $2.5 billion of the amounts made available to DOD in this Act between any such authorizations for that fiscal year. Requires congressional notification of each transfer.

(Sec. 1002) Provides a new limitation on the total amount authorized to be contributed by the Secretary for the common-funded budgets of NATO (rather than the maximum amount otherwise applicable under the 1998 baseline limitation). Allocates for such purpose amounts authorized under titles II and III of this Act.

(Sec. 1003) Adjusts amounts authorized to be appropriated in the Stump Act by the amount by which appropriations pursuant to such authorizations were increased or decreased by any supplemental appropriations for FY 2003. Requires a report from the Secretary to the defense and appropriations committees on FY 2003 fund transfers through transfer accounts, including the Iraqi Freedom Fund.

(Sec. 1004) Increases amounts authorized to be appropriated in this Act by the amount by which the corresponding appropriation account is increased by a supplemental appropriation or transfer of funds under the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2003.

(Sec. 1005) Allows entering into a contract which covers parts of two different fiscal years, as long as the total contract period does not exceed one year, in connection with the DOD lease of real or personal property.

(Sec. 1006) Allows the Secretary to use the DOD reimbursement rate for military airlift services provided to the State Department for the transportation of armored motor vehicles to a foreign country. Limits the amounts that may be transferred from DOD accounts to State Department accounts as reimbursement for State Department maintenance of DOD vehicles at foreign diplomatic facilities to amounts that exceed such transportation charges.

(Sec. 1008) Allows funds from the Defense Modernization Account to be used to pay the costs of commencing any project undertaken by DOD or a defense agency to reduce the life cycle cost of a new or existing system. Requires: (1) the Account to be reimbursed from savings realized from reducing such life cycle costs; and (2) regulations to include a system for proposals for the use of Account funds in such manner. Extends through FY 2006 the authority to transfer funds into the Account.

(Sec. 1009) Requires ( current law authorizes) the Secretary to disburse travel card allowances permitted for DOD travel card users directly to the travel card creditors. Directs the Secretary to: (1) evaluate the creditworthiness of a DOD civilian employee or military member before a Defense travel card is issued; (2) prescribe regulations for making determinations regarding the taking of disciplinary action, including assessment of penalties, against DOD personnel for improper, fraudulent, or abusive use of such travel cards; and (3) report to the defense committees on the regulations prescribed.

Subtitle B: Naval Vessels and Shipyards - (Sec. 1011) Repeals the requirement that the Secretary of the Navy take certain action, when the number of Navy combatant surface vessels is less than 116, to ensure that such number may be reached within 120 days.

(Sec. 1012) Authorizes the sale of material and equipment stripped from a naval vessel stricken from the Naval Vessel Register. Includes within authorized experimental purposes for such ships Navy sink exercises or target practice.

(Sec. 1013) Authorizes the Secretary of the Navy to transfer any vessel stricken from the Naval Vessel Register to any State, U.S. possession, or municipal corporation or political subdivision thereof for use as an artificial reef.

(Sec. 1014) Amends the Merchant Marine Act, 1936 to direct the Secretary of Transportation to give priority for loan guarantees authorized under such Act to a vessel that the Secretary of Defense determines: (1) is fit for service as a naval auxiliary in time of war or national emergency; and (2) meets a shortfall in sealift capacity or capability. Requires such Secretaries to report jointly to specified congressional committees on the criteria to be used by the Secretary of Defense to make such determination.

(Sec. 1015) Authorizes the Secretary of the Navy to provide to designated entities assistance in support of a transfer of a decommissioned naval vessel or related shipboard equipment.

(Sec. 1016) Expresses: (1) support for the innovative Advanced Shipbuilding Enterprise of the National Shipbuilding Research Program; (2) concern that the future-years defense program for FY 2004 does not reflect any Enterprise funding after FY 2004; and (3) the sense of Congress that the Secretaries of Defense and the Navy should continue Enterprise funding at a sustained level through the future-years defense program in order to support subsequent rounds of research that reduce the cost of designing, building, and repairing ships.

(Sec. 1017) Requires the Secretary to report to the defense and appropriations committees on Navy plans for basing aircraft carriers through 2020.

(Sec. 1018) Prohibits the Secretary of the Navy from disposing of the decommissioned destroyer ex-Forrest Sherman before October 1, 2004, to an entity that is not a nonprofit organization unless such Secretary first determines that there is no nonprofit organization that meets the requirements for donation of that vessel.

Subtitle C: Counterdrug Matters - (Sec. 1021) Amends the National Defense Authorization Act for Fiscal Year 1998 to: (1) revise the years of coverage for certain countries with respect to DOD financial assistance in support of counter-drug activities; and (2) add as countries authorized to receive such support Afghanistan, Bolivia, Ecuador, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. Increases the amount of such assistance for FY 2004 through 2006.

(Sec. 1022) Authorizes a joint task force of DOD that provides support to law enforcement agencies conducting counter-drug activities to also provide support to such agencies in conducting counter-terrorism activities.

(Sec. 1023) Authorizes the Secretary, during FY 2004, to use funds available for assistance to the Government of Colombia to support a unified campaign against narcotics trafficking and against activities of certain organizations designated as terrorist organizations. Prohibits as part of such support the participation of any U.S. military or civilian contractor personnel in any combat operation.

(Sec. 1024) Expresses the sense of Congress that the Secretary should reconsider the decision of DOD to terminate the border and seaport inspection duties of the National Guard as part of the National Guard drug interdiction and counter-drug mission.

Subtitle D: Reports - (Sec. 1031) Repeals or revises various reporting requirements applicable to DOD under Federal armed forces provisions and prior national defense authorization and appropriations Acts.

(Sec. 1032) Directs the Secretary to prescribe an integrated plan for developing, deploying, and sustaining a prompt global strike capability in the armed forces. Requires plan reports from the Secretary to the defense and appropriations committees during FY 2004 through 2006.

(Sec. 1033) Requires the Director of Central Intelligence to report annually to the defense, intelligence, and foreign relations committees concerning dismantlement of Russian strategic nuclear warheads under the Treaty Between the United States of America and the Russian Federation on Strategic Offensive Reductions (Moscow Treaty). Terminates the report requirement when the Treaty is no longer in effect.

(Sec. 1034) Directs the President to report to Congress on potential uses of unmanned aerial vehicles for support of the performance of homeland security missions.

Subtitle E: Codifications, Definitions, and Technical Amendments - (Sec. 1041) Authorizes the Secretary to carry out a program to administer counterintelligence polygraph examinations to: (1) military and civilian personnel of DOD; (2) personnel of defense contractors; (3) a person assigned or detailed to DOD; or (4) a person applying for a position with DOD. Provides exceptions for certain intelligence agencies and functions. Requires the Secretary to carry out a continuing research program to support DOD polygraph activities.

(Sec. 1042) Adds definitions applicable to DOD facilities and operations requirements.

(Sec. 1043) Defines "congressional defense committees" and "base closure law" for purposes of Federal armed forces provisions.

(Sec. 1044) Requires inclusion in the annual defense authorization request from the Secretary to Congress of the authority to carry out military construction projects. Repeals the requirement of a separate transmission of request for such projects.

(Sec. 1045) Makes technical and clerical amendments to Federal armed forces and military pay and allowances provisions, prior national defense authorization Acts, the Federal Acquisition Streamlining Act of 1994, and the Armed Forces Retirement Home Act of 1991.

Subtitle F: Other Matters - (Sec. 1051) Requires a report from the Secretary to the defense committees assessing the effects of specified statutory limitations on the granting of security clearances for DOD and defense contractor personnel.

(Sec. 1052) Authorizes the Secretary concerned, during FY 2004 and 2005, to exchange for a historical artifact any obsolete or surplus property held by such department.

(Sec. 1053) Authorizes the Secretary of the Air Force to convey to the Air Force Heritage Foundation, Incorporated, all rights and interest to one surplus T-37 "Tweet" aircraft for the sole purpose of static display, after ensuring that such aircraft no longer has any flight or combat capability.

(Sec. 1054) Requires the Secretary, every other year, to prepare and submit to Congress a strategic plan for the management of the electromagnetic spectrum to ensure its effective use in supporting the DOD mission.

(Sec. 1055) Directs the Secretary to revise and reissue DOD Directive 4650.1 to update DOD procedures applicable to the management and use of the radio frequency spectrum.

(Sec. 1056) Expresses the sense of Congress that the Secretary of the Army should: (1) invigorate and coordinate efforts to develop chemical agent monitors with improved sensitivity, specificity, and response time; and (2) deploy the improved monitors in order to ensure maximum protection of the public, personnel involved in the chemical demilitarization program, and the environment.

(Sec. 1057) Amends the Federal Fire Protection and Control Act of 1974 to direct the U.S. Fire Administrator to make four-year grants to fire departments to increase the number of firefighters, attain 24-hour staffing of fire departments, and fulfill traditional missions of fire departments that antedate the creation of the Department of Homeland Security. Requires the Administrator to set aside ten percent of funds appropriated for such purpose each year for: (1) departments with majority-volunteer or all-volunteer personnel; and (2) the recruitment and retention of volunteer firefighters involved with or trained in the operations of firefighting and emergency response. Outlines grant requirements and limitations. Terminates the grant authority ten years after the enactment of this section. Requires a report from the Administrator to Congress on grant experiences and effectiveness. Authorizes appropriations.

(Sec. 1058) Requires the Director of OMB to conduct a review of existing authorities regarding the use of Air Force and Air National Guard modular airborne fire-fighting system units and other DOD assets to fight wildfires to ensure that such assets are available in the most expeditious manner to fight wildfires on Federal or non-Federal lands at the request of a Federal agency or State government. Authorizes the Director to develop and implement revised policies, if appropriate. Requires a report from the Director to Congress on review results and policy revisions. Prohibits implementation of any revised policies until 30 days after the report is submitted.

Title XI: Civilian Personnel Matters - Subtitle A: Department of Defense National Security Personnel System - (Sec. 1101) Authorizes the Secretary, in regulations prescribed jointly with the OPM Director, to establish and periodically adjust a human resources management system for some or all of the organizational or functional units of DOD. Sets forth system requirements, with specified limitations with respect to certain DOD research and laboratory facilities.

Prohibits the total amount of basic pay and other awards, allowances, etc. received by certain DOD senior executive or equivalent employees from exceeding the total compensation payable to the Vice President. Sets forth requirements to ensure the participation of employee representatives in the planning, development, and implementation of any management system. Excludes the National Guard Bureau and the Army and Air National Guard from such collective bargaining requirements and procedures.

Authorizes the Secretary to establish an appeals process for adverse actions against individual employees in the system, subject to review by the Merit Systems Protection Board.

Authorizes the Secretary to establish a program under which employees may be eligible for early retirement, offered incentive pay to separate from service voluntarily, or both. Entitles to early retirement any employee who is at least 50 years of age and has completed 20 years of service, or any employee who has completed 25 years of service. Provides separation incentive pay limits. Prohibits an employee receiving separation pay from being reemployed by DOD within 12 months, with exceptions on a case-by-case basis, or from being reemployed by the Federal Government within five years (requiring forfeiture of the entire separation incentive amount under the latter reemployment).

Authorizes the Secretary to establish and periodically adjust a labor relations system for DOD to address the unique role that its civilian workforce plays in supporting its national defense mission. Requires the participation of employee organizations in the development and implementation of such system.

Authorizes the Secretary to carry out a program to attract highly qualified experts in needed occupations within DOD. Limits to five years the term of appointment under such program, with limitations on additional payments to such employees.

Authorizes the Secretary to pay special allowances and benefits to certain DOD civilians employed outside the United States.

Subtitle B: Department of Defense Civilian Personnel Generally - (Sec. 1111) Authorizes the Secretary to carry out a two-year pilot program using an automated workforce management system to demonstrate improved efficiency in the performance of civilian personnel management.

(Sec. 1112) Amends the National Defense Authorization Act for Fiscal Year 1996 to require at least two-thirds of the individuals participating in a demonstration project relating to certain acquisition personnel management policies and procedures to be acquisition workforce and support personnel. Increases the authorized number of project participants from 95,000 to 120,000.

(Sec. 1113) Makes eligible for military leave Federal civilian employees who perform full-time military service as a result of a call or order to active duty in support of a contingency operation.

(Sec. 1114) Authorizes the Secretary to provide for the restoration of forfeited annual leave for all DOD employees transferring from a closed or realigned military installation during the period of October 1, 1992, through December 31, 1997.

(Sec. 1115) Authorizes the Secretary to employ civilian faculty members at the Western Hemisphere Institute for Security Cooperation.

(Sec. 1116) Amends the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 to: (1) extend through FY 2008 the experimental authority for DOD recruitment of science or engineering experts for R&D projects administered by the Defense Advanced Research Projects Agency; and (2) extend a required annual report.

Subtitle C: Other Federal Government Civilian Personnel Matters - (Sec. 1121) Revises the maximum overtime pay rate for Federal employees whose basic pay exceeds the minimum rate of basic pay for GS-10 employees.

(Sec. 1122) Applies to the pay of both Federal prevailing rate employees and General Schedule rate employees an identical standard for determination of the differential for any hardship or hazard related to asbestos by applying occupational safety and health standards consistent with the permissible exposure limit under the Occupational Safety and Health Act of 1970.

(Sec. 1123) Increases from $6,000 to $10,000 the calendar year limit on student loan amounts authorized to be paid by the head of a Federal agency in order to recruit or retain highly qualified personnel.

(Sec. 1124) Authorizes Cabinet Secretaries, Secretaries of military departments, and heads of executive agencies to be paid on a bi-weekly (currently, monthly) basis.

(Sec. 1125) Excludes Senior Executive Service positions, including those within the Federal Bureau of Investigation and the Drug Enforcement Administration, from current Federal comparability pay requirements.

Revises Federal provisions establishing pay rates for the Senior Executive Service. Requires each senior executive to be paid based on individual performance, contribution to the agency's performance, or both, as determined under a rigorous performance management system. Increases to level III (currently, level IV) of the Executive Schedule the highest rate of pay for a senior executive, or to level II for any agency certified as having a performance appraisal system which makes meaningful distinctions based or relative performance. Includes certain senior executives within current Federal post-employment restrictions. RequiresOPM to promulgate regulations requiring that each executive agency notify any employee subject to Federal post-employment restrictions.

(Sec. 1126) Prohibits a Federal pay-for-performance system from being initiated unless it incorporates specified elements, including a fair, credible, and transparent employee performance appraisal system and a link between elements of the pay-for-performance system, the performance appraisal system, and that agency's strategic plan.

(Sec. 1127) Prohibits a Federal agency or other employing entity which provides a flexible spending account option for its employees from imposing a fee to defray administrative costs associated therewith. Requires OPM to report to specified congressional committees on the Federal cost of the option program for FY 2003, as well as projected administrative costs over the next five fiscal years. Requires reports from entities employing such option to the OMB describing employment tax savings achieved, minus administrative fees paid.

(Sec. 1128) Requires each agency to conduct annual employee surveys to assess: (1) leadership and management practices that contribute to agency performance; and (2) employee satisfaction. Requires survey results to be made publicly available and posted on the agency website.

(Sec. 1129) Establishes the Human Capital Performance Fund for agency payments to individual employees based on exceptional performance contributing to the achievement of the agency mission. Prohibits any payment from exceeding ten percent of the employee's rate of basic pay. Requires each agency to submit to OPM a plan for participation in the Fund which shall include, among other things, a fair, credible, and transparent employee performance appraisal system as well as a link between a pay-for-performance system, the performance appraisal system, and the agency's strategic plan. Requires the Chief Human Capital Officers Council to include in its annual report to Congress an evaluation of the formulation and implementation of agency performance management systems. Authorizes appropriations.

Title XII: Matters Relating to Other Nations - Subtitle A: Matters Relating to Iraq - (Sec. 1201) Directs the Secretary to expeditiously provide all necessary support to assist Iraqi children who were injured during Operation Iraqi Freedom. ***

(Sec. 1202) Directs the Secretary to report to the defense, appropriations, and intelligence committees on the preparation for and conduct of military operations under Operation Iraqi Freedom from March 19, 2003, to May 1, 2003.

(Sec. 1203) Directs the Secretary to report to Congress on DOD security and reconstruction activities in Iraq.

(Sec. 1204) Requires a report from the Secretary to the defense and foreign relations committees on the acquisition by Iraq of: (1) weapons of mass destruction and associated delivery systems; and (2) advanced conventional weapons.

(Sec. 1205) Expresses the sense of Congress that the Secretary should ensure that outreach procedures are in place to provide information to small businesses and minority- and women-owned businesses regarding DOD requirements and contract opportunities for the rebuilding of Iraq.

Subtitle B: Matters Relating to Export Protections - (Sec. 1211) Directs the Secretary to: (1) identify goods or technologies that, if obtained by a potential adversary, could significantly undermine U.S. military superiority or advantage or contribute to the acquisition of weapons of mass destruction and their systems; (2) determine whether any of the items identified are not currently controlled for export purposes; and (3) report results to the defense committees.

(Sec. 1212) Requires the DOD Inspector General to study and report to the defense committees on DOD costs incurred for FY 1999 through 2003 relating to national security controls on satellite exports.

Subtitle C: Administrative Requirements and Authorities - (Sec. 1221) Authorizes the use of DOD funds to pay costs associated with the attendance of foreign military officers, ministry or defense officials, or security officials at U.S. military educational institutions or training programs conducted under the Regional Defense Counterterrorism Fellowship Program. Limits such funding to $20 million per fiscal year. Requires an annual report from the Secretary to Congress.

(Sec. 1222) Authorizes the Secretary to expend DOD O&M funds to present awards and mementos to recognize superior noncombat achievements or performance by members of friendly forces or foreign nationals that significantly enhance or support U.S. national security strategy.

(Sec. 1223) Amends the National Defense Authorization Act for Fiscal Year 1995 to authorize the Secretary to waive the costs of charges for attendance at the George C. Marshall European Center for Security Studies for individuals from states located in Europe or the territory of the former Soviet Union (currently, only for individuals from partner states of the North Atlantic Council or the Partnership for Peace).

(Sec. 1224) Authorizes a Federal disbursing official, under specified conditions, to offer check cashing and other monetary exchange transactions for a member of the military forces of an allied or coalition nation who is participating with U.S. forces in a combined operation, exercise, or humanitarian or peacekeeping mission.

(Sec. 1225) Requires the Secretary to make all reasonable efforts to ensure that certain excess trainer aircraft receive, in the United States, all necessary depot maintenance and repair work required before their transfer to a foreign country for flight operations by that country.

Subtitle D: Other Reports and Sense of Congress Statements - (Sec. 1231) Requires an annual report through 2008 from the Secretary to specified congressional committees on implementation of the Prague Capabilities Commitment and development of the NATO Response Force by NATO-member nations.

(Sec. 1232) Requires a report from the Secretary to Congress on appropriate steps that DOD could take against countries attempting to commence legal proceedings against, or compel the production of documents from, a current or former DOD official or member of the armed forces.

(Sec. 1233) Expresses the sense of Congress that: (1) the expansion of the NATO Alliance and the evolution of its military mission requires a fundamental reevaluation of the current posture of U.S. forces stationed in Europe; and (2) the President should initiate such reevaluation, taking maximum advantage of basing and training opportunities in newly admitted and invitee states.

(Sec. 1234) Expresses the sense of Congress that: (1) the Secretary and the U.S. Navy should engage with the Government of Israel and Israel Defense Forces to establish appropriate and effective arrangements to ensure the safety of U.S. Navy vessels and personnel; and (2) upon such arrangements, the Sixth Fleet should resume regular port visits to Haifa, Israel.

Title XIII: Cooperative Threat Reduction With States of the Former Soviet Union - (Sec. 1301) Specifies the cooperative threat reduction (CTR) programs to be funded through O&M funds provided under this Act. Makes funds appropriated for such purposes available for three fiscal years. Allocates such funds among specified CTR programs. Prohibits such funds from being used for purposes other than those specified until 30 days after the Secretary reports to Congress on the new purposes. Provides limited authority to vary allocated amounts in the national interest, after congressional notification.

(Sec. 1303) Directs the Secretary to seek to obtain all the permits required to complete each phase of construction of a project under CTR programs before obligating significant funds for such phase. Prohibits the obligation of more than 40 percent of the necessary funding for a new CTR construction project until the Secretary has obtained the necessary permits. Requires the Secretary to identify required permits for incomplete CTR construction projects, with the same 40 percent funding obligation limitation until all such permits are obtained. Authorizes the Secretary to waive the funding limitation in the national interest after notification of the defense and appropriations committees.

(Sec. 1304) Prohibits CTR funds from being obligated for collaborative biodefense research or bioattack early warning and preparedness at a site in the former Soviet Union until the Secretary notifies Congress that: (1) no prohibited biological weapon research is being conducted at the site; and (2) appropriate security measures have been or will be put in place to prevent the theft of dangerous pathogens from the facility.

(Sec. 1305) Requires the Secretary to appoint a U.S. Government employee as on-site manager before obligating any CTR funds for a project: (1) in a state of the former Soviet Union; (2) which involves dismantlement, destruction, or storage facilities, or the construction of a facility; and (3) with respect to which the total contribution by DOD is expected to exceed $50 million. Sets forth manager duties, including the identification and acquisition of necessary permits. Allows one individual to serve as on-site manager at more than one project, as long as the total of the projects at which the individual serves does not exceed $150 million for that fiscal year. Requires the Secretary, when directing an on-site manager to resume U.S. participation in such a project, to concurrently notify Congress.

(Sec. 1306) Makes certain expenditure conditions required under the National Defense Authorization Act for Fiscal Year 2000 inapplicable to the FY 2004 obligation and expenditure of funds for the planning, design, or construction of a chemical weapons destruction facility in Russia if the President submits a certification to Congress that includes: (1) a justification for the national security waiver of such conditions; and (2) a plan to promote a full and accurate disclosure by Russia regarding the size, content, status, and location of its chemical weapons stockpile. Terminates such authority on September 30, 2004.

(Sec. 1307) Requires the Secretary to make an annual certification to the defense and appropriations committees on the use of each facility for a CTR project or activity for which construction occurred during the preceding fiscal year.

(Sec. 1308) Authorizes the President to obligate and expend current and prior year CTR funds for a proliferation threat reduction project or activity outside the states of the former Soviet Union if such project or activity will: (1) assist the United States in the resolution of a critical emerging proliferation threat; or (2) permit the United States to take advantage of opportunities to achieve long-standing nonproliferation goals. Requires that the project or activity be completed in a short period of time and that DOD be the entity most capable of carrying it out. Limits fiscal year obligation for such purpose to $50 million. Requires the President to notify Congress within ten days after exercising such authority.

Title XIV: Services Acquisition Reform - Services Acquisition Reform Act of 2003 - Subtitle A: Acquisition Workforce and Training - (Sec. 1411) Amends the Office of Federal Procurement Policy Act to add a definition of "acquisition" for purposes of such Act.

(Sec. 1412) Directs the Administrator of General Services to establish an acquisition workforce training fund to support training of acquisition workforce personnel of agencies other than DOD. Provides for credits to the fund from a percentage of fees collected under specified Government contracts. Terminates such authority five years after the enactment of this Act.

(Sec. 1413) Authorizes the head of any Federal department or agency ( other than the Secretary) to determine that certain Federal acquisition positions are "shortage category" positions in order to recruit and appoint highly qualified persons thereto. Terminates such authority at the end of FY 2007. Requires an implementation report from the Administrator for Federal Procurement Policy (FPP) to Congress.

(Sec. 1414) Requires the FPP Administrator to develop and implement a plan to ensure that the Federal Government maintains the necessary architectural and engineering acquisition workforce.

Subtitle B: Adaptation of Business Acquisition Practices - Part I: Adaptation of Business Management Practices - (Sec. 1421) Requires the head of certain agencies with acquisition responsibilities, other than DOD, to appoint or designate a non-career employee as Chief Acquisition Officer for that agency, with the primary duty of acquisition management. Sets forth related functions. Requires each agency to designate a senior procurement executive.

(Sec. 1422) Amends the Office of Federal Procurement Policy Act to establish in the executive branch a Chief Acquisition Officers Council as the principal interagency forum for monitoring and improving the Federal acquisition system.

(Sec. 1423) Directs the FPP Administrator to establish an advisory panel to: (1) review laws and regulations regarding the use of commercial practices, performance-based contracting, performance of acquisition functions across agency lines of responsibility, and the use of Government-wide contracts; and (2) report to the FPP Administrator and specified congressional committees their findings, conclusions, and recommendations.

Part II: Other Acquisition Improvements - (Sec. 1426) Amends the Federal Financial Management Act of 1994 to extend until December 31, 2004, the authority to carry out franchise fund programs in executive agencies.

(Sec. 1427) Increases from $85,000 to $300,000 the threshold for contracts for architectural and engineering services and construction design in connection with a military construction or family housing project. Places specified conditions on architectural and engineering services offered under multiple-award schedule contracts or Government-wide task and delivery order contracts.

(Sec. 1428) Requires the Federal Acquisition Regulatory Council to amend the Federal Acquisition Regulation to permit telecommuting by employees of Federal contractors.

Subtitle C: Acquisitions of Commercial Items - (Sec. 1431) Provides standards under which a Federal performance-based contract or task order for the procurement of services may be treated as a contract for the procurement of commercial items. Requires a report from the OMB Director to specified congressional committees describing the contracts that were so treated using such authority. Terminates such authority ten years after the enactment of this Act.

Directs the FPP Administrator to establish a center of excellence in contracting for services to identify and serve as a clearinghouse for best practices in contracting for services in the public and private sectors.

(Sec. 1432) Authorizes under the Federal Acquisition Streamlining Act of 1994 a time and materials contract or a labor-hour contract for the performance of commercial services commonly sold to the general public..

Subtitle D: Other Matters - (Sec. 1441) Authorizes the head of an agency who engages in basic, applied, and advanced research, as well as development projects that have the potential to facilitate defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack, to exercise the same authority of the Secretary to enter into transactions other than contracts and grants in furtherance of such research and development, including carrying out prototype projects. Requires: (1) OMB authorization prior to agency exercise of such authority; and (2) an annual report from any agency exercising such authority to specified congressional committees. Terminates such authority at the end of FY 2008.

(Sec. 1442) Requires the head of any agency that enters into a contract for the repair, maintenance, or construction of infrastructure in Iraq without full and open competition to publish notice of such contract to the public, as well as related information. Makes such requirement inapplicable to contracts entered into after FY 2005. Allows the withholding of classified information regarding such contracts (but requires the classified information to be made available to specified congressional committees).

(Sec. 1443) Amends the Office of Federal Procurement Policy Act to authorize special emergency procurement authority with respect to the procurement of property or services that are to be used: (1) in support of a contingency operation; or (2) to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack. Increases, with respect to procurements for such purpose: (1) the procurement thresholds; and (2) maximum dollar limits while still retaining the use of simplified acquisition procedures. Allows the head of an agency exercising such emergency authority to treat such property or service as a commercial item for purposes of carrying out such procurement.

Title XV: Veterans' Disability Benefits Commission - (Sec. 1501) Establishes the Veterans' Disability Benefits Commission to study, and report to the President and Congress on, the benefits provided to compensate and assist veterans and their survivors for disabilities and deaths attributable to military service. Terminates the Commission 60 days after its report. Directs the Secretary of Veterans Affairs to provide Commission funding.

Title XVI: Defense Biomedical Countermeasures - (Sec. 1601) Directs the Secretary to carry out a program to accelerate the research, development, and procurement of biomedical countermeasures, including therapeutics and vaccines, for protection of military personnel from attack by one or more biological, chemical, radiological, or nuclear (BCRN) agents. Authorizes the Secretary to enter into interagency or other Federal collaborative undertakings for such purpose. Requires coordination of program activities with similar activities of the Departments of Health and Human Services and Homeland Security. Authorizes the Secretary, in connection with the program, to: (1) acquire, lease, construct,or improve DOD laboratories and research facilities; (2) enter into personal services contracts; and (3) appoint highly qualified experts to carry out R&D under the program.

(Sec. 1602) Requires the Secretary, on an ongoing basis, to: (1) assess current and emerging threats of the use of BCRN agents; (2) identify those agents that present a material risk of use against the armed forces; (3) assess possible health consequences of military personnel from such use; (4) identify those agents for which countermeasures are necessary; (5) assess the availability and appropriateness of such countermeasures; and (6) identify countermeasures which are appropriate for procurement for the DOD stockpile of biomedical countermeasures. Requires coordination of all such activities with the Secretaries of Homeland Security and Health and Human Services, allowing for the use of an interagency agreement. Provides funding from funds authorized under this Act.

(Sec. 1603) Amends the Federal Food, Drug, and Cosmetic Act to permit the Secretary of Health and Human Services to authorize emergency use by the general public of certain drugs, devices, or biological products during the period of a declaration by the Secretary of Defense of a military emergency or potential military emergency involving a heightened risk to U.S. military forces of attack with a specified BCRN agent. Allows the Secretary of Health and Human Services to authorize the use of such drugs, devices, or products only after determining that: (1) a BCRN agent can cause a serious or life-threatening disease or condition; (2) the drug, device, or product may be effective in diagnosing, treating, or preventing such disease or condition; and (3) there is no adequate, approved, or otherwise available drug, device, or product for such use. Outlines related conditions on exercising such authority. Allows such authority until the earlier of the termination of the declaration of emergency or when emergency criteria or conditions are no longer being met. Directs the Secretary of Health and Human Services to promptly publish notification of the exercise of such authority. Authorizes the President to waive the right of military personnel to refuse the administration of such a drug, device, or product if the President determines that affording personnel such right is not feasible, is contrary to the best interests of the members affected, or is not in the interests of national security. Terminates the emergency authority if the President notifies Congress that the Project Bioshield Act of 2003, when enacted, provides an effective emergency use authority with respect to military personnel.

Title XVII: Naturalization and Other Immigration Benefits for Military Personnel and Families - (Sec. 1701) Amends the Immigration and Nationality Act to reduce from three years to one the required period of U.S. military service before eligibility for naturalization for U.S. citizenship. Prohibits a fee from being charged for the application, or for the issuance of a certificate of citizenship, under such circumstances (allowing no fee other than that portion which is paid to the State). Allows such citizenship to be revoked for separation from military service under other than honorable conditions, up until the time the person has served honorably for an aggregate five-year period.

Requires the Secretaries of Homeland Security, State, and Defense to ensure that naturalization applications, interviews, or other proceedings are available through U.S. embassies, consulates, and, as practicable, U.S. military installations overseas.

Directs the Secretary to prescribe a policy that facilitates the opportunity of a member of the armed forces to finalize naturalization for which the member has applied.

(Sec. 1702) Provides such naturalization opportunities for members of the Selected Reserve of the Ready Reserve.

(Sec. 1703) Provides that in the case of an alien spouse, child, or parent who was the spouse, child, or parent of a U.S. citizen at the time of the citizen's death and who (in the case of the spouse) was not legally separated, if the citizen served honorably in an active duty status and died as a result of an injury or disease incurred in or aggravated by such service, the alien spouse, child, or parent shall be considered an immediate relative and therefore eligible to benefits as a surviving spouse, child, or parent. Requires such alien to file for such benefits within two years of the citizen's death and only (in the case of the spouse) until the alien remarries. Outlines application requirements for adjustment of status (to naturalized citizens) for: (1) surviving alien spouses, children, and parents; and (2) spouses, children, and parents of lawful permanent resident aliens. Includes all persons granted such posthumous citizenship under this section as "U.S. citizens" or "citizen spouses" for purposes of the Immigration and Nationality Act. Makes this section effective with respect to persons granted citizenship due to deaths occurring on or after September 11, 2001.

(Sec. 1704) Provides an expedited process for the granting of posthumous citizenship for members of the armed forces, with approval and documentation through the Director of the Bureau of Citizenship and Immigration Services.

Division B: Military Construction Authorizations - Military Construction Authorization Act for Fiscal Year 2004 - Title XXI(sic): Army - (Sec. 2101) Authorizes the Secretary of the Army to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes such Secretary to construct or acquire family housing units, carry out architectural planning and design activities, and improve existing military family housing in specified amounts. Authorizes appropriations to the Army for fiscal years after 2003 for military construction, land acquisition, and military family housing functions of the Army. Limits the total cost of construction projects authorized by this title.

(Sec. 2105) Terminates, or revises authorized amounts for, certain projects in each of FY 2001 through 2003.

Title XXII: Navy - (Sec. 2201) Provides, with respect to the Navy, authorizations paralleling those provided for the Army under the previous title.

(Sec. 2205) Terminates, or revises authorized amounts for, certain projects in FY 2002 and 2003.

Title XXIII: Air Force - (Sec. 2301) Provides, with respect to the Air Force, authorizations paralleling those provided for the Army under title XXI.

(Sec. 2305) Terminates an FY 2003 project at a classified location.

Title XXIV: Defense Agencies - (Sec. 2401) Authorizes the Secretary to acquire real property and carry out military construction projects in specified amounts at specified installations and locations. Authorizes the Secretary to carry out architectural and engineering services and construction design activities, improve existing military family housing units, and carry out certain energy conservation projects. Authorizes appropriations to DOD for fiscal years after 2003 for military construction, land acquisition, and military family housing functions of DOD. Limits the total cost of construction projects authorized by this title.

(Sec. 2406) Terminates the authority to carry out certain FY 2003 projects.

Title XXV: North Atlantic Treaty Organization Security Investment Program - (Sec. 2501) Authorizes the Secretary to make contributions for the North Atlantic Treaty Organization (NATO) Security Investment Program and authorizes appropriations for fiscal years after 2003 for such Program.

Title XXVI: Guard and Reserve Forces Facilities - (Sec. 2601) Authorizes appropriations for fiscal years after 2003 for National Guard and reserve forces for acquisition, architectural and engineering services, and construction of facilities.

Title XXVII: Expiration and Extension of Authorizations - (Sec. 2701) Terminates all authorizations contained in titles XXI through XXVI of this Act on October 1, 2006, or the date of enactment of an Act authorizing funds for military construction for FY 2006, whichever is later, with exceptions. Extends certain FY 2001 military construction projects.

Title XXVIII: General Provisions - Subtitle A: Military Construction Program and Military Family Housing Changes - (Sec. 2802) Increases from $30 million to $50 million the maximum amount authorized to be obligated per fiscal year by the Secretary concerned to carry out emergency military construction projects.

(Sec. 2803) Increases from 2,000 to 2,800 the number of family housing units in Italy authorized to be leased by the Navy.

(Sec. 2804) Increases from ten to 15 years the maximum lease term for family housing and other facilities in Korea.

(Sec. 2805) Authorizes the Secretary concerned to convey real property located on a military installation to be closed or realigned under a base closure law to any person who agrees to: (1) carry out a military construction or land acquisition project; or (2) transfer to the Secretary housing located at or near a military installation at which there is a shortage of suitable military family or unaccompanied housing, or both. Prohibits the value of the consideration received by the Secretary concerned in such a conveyance from being less than $1 million. Requires: (1) each Secretary exercising such authority to provide 14 days' advance notification to Congress; and (2) the Secretary of Defense to report annually on the Secretaries' use of such authority.

(Sec. 2807) Sets forth additional information required under annual reports from the Secretary concerning contracts, conveyances, or leases relating to the acquisition or construction of military family housing units.

(Sec. 2808) Authorizes the Secretary, during FY 2004, to obligate DOD O&M funds to carry out a construction project outside the United States if the Secretary determines that: (1) the construction is necessary to meet urgent military operational requirements of a temporary nature; (2) the construction is not carried out at a military installation where the United States is expected to have a long-term interest or presence; (3) the United States has no intention of using the construction after the operational requirement has been satisfied; and (4) the level of construction is the minimum necessary to meet the temporary operational requirements. Directs the Secretary to notify the defense committees within seven days of exercising such authority. Authorizes a waiver when the project is vital to national security. Prohibits the total cost of all such construction from exceeding $200 million in a fiscal year. Requires quarterly reports from the Secretary concerned to the defense committees on any such construction.

(Sec. 2809) Requires the Secretary to report to Congress describing the military construction projects carried out to support new homeland defense missions of the armed forces undertaken since September 11, 2001, and containing an assessment of the military construction requirements anticipated during FY 2005 through 2007 to support such missions.

Subtitle B: Real Property and Facilities Administration - (Sec. 2811) Increases from $500,000 to $750,000 the threshold for real property acquisitions or leases that may be undertaken by the Secretary concerned in the interests of national defense before notification of the defense committees. Allows such Secretary to acquire any interest in land that: (1) is needed to correct a life-, health-, or safety-threatening deficiency; and (2) does not cost more than $1.5 million.

(Sec. 2812) Authorizes a military installation to use all (currently, two-thirds) of the energy savings realized by such installation for specified installation activities and functions. Directs the Secretary to include in annual budget submissions a separate statement of amounts available for obligation under such authority.

(Sec. 2813) Provides for the acceptance of in-kind consideration for easements for rights-of-way granted by the Secretary concerned, including easements for utility lines.

Subtitle C: Base Closure and Realignment - (Sec. 2821) Amends the Defense Authorization Amendments and Base Closure and Realignment Act and the Defense Base Closure and Realignment Act of 1990 to state that if a military installation to be closed, realigned, or placed in an inactive status includes a road used for public access through, into, or around such installation, the local-interests consultation required under such Acts shall include consideration of the continued availability of the road for public use.

(Sec. 2822) Directs the Secretary to: (1) assess the probable threats to national security and the surge requirements to meet those threats; and (2) use such surge requirements in the defense base closure and realignment process.

Subtitle D: Land Conveyances - Part I: Army Conveyances - (Sec. 2831) Authorizes the Secretary of the Army, upon completion of a replacement Army Reserve facility located in Conway, Arkansas, to terminate the 99-year lease with the University of Central Arkansas for the property on which the old facility was located.

(Sec. 2832) Authorizes the Secretary of the Army to convey to: (1) the department of transportation of the State of Tennessee a parcel of real property at Fort Campbell, Kentucky and Tennessee, in order to realign and upgrade a highway; (2) the Kentucky Department of Veterans Affairs a parcel of property at Fort Knox, Kentucky, for establishing and operating a State-run veterans cemetery; and (3) the Fairfax County (Virginia) Park Authority a parcel of real property at Fort Belvoir, Virginia.

(Sec. 2834) Authorizes the Secretary of the Army to make a contribution for a new Army National Guard armory in Pierce City, Missouri, in excess of the amount authorized for such purpose if such Secretary determines that: (1) there is a compelling need for construction; (2) failure to do so would have an adverse impact; and (3) the real property for the facility will be provided by the State of Missouri.

Part II: Navy Conveyances - (Sec. 2841) Authorizes the Secretary of the Navy to convey to: (1) the Housing Authority of the city of Dixon, California, a parcel of real property currently used by the Authority for the Fred H. Rehman Dixon Migrant Center, to permit the Authority to continue to provide suitable housing and support services to migrant workers; (2) the Preferred Development Group Corporation, Georgia, a parcel of property at Turner Field and McAdams Road in Albany, Georgia, to use for economic development; (3) the United Parcel Service (UPS) the Naval and Marine Corps Reserve Center in Portland, Oregon, to facilitate expansion of the UPS main distribution complex in Portland, (4) the city of Orange, Texas, a parcel of property at the Orange Naval Reserve Center for road construction, economic development, and other public purposes; and (5) the city of Bremerton, Washington, a parcel of property at the Puget Sound Naval Shipyard in Bremerton.

Part III: Air Force Conveyances - (Sec. 2851) Authorizes the Secretary of the: (1) Army to transfer five parcels of real property at March Air Reserve Base, California, to the March Joint Powers Authority of Moreno Valley, California; and (2) Navy to transfer two parcels at such Base to such Authority. Directs such Authority to release its interests in two contiguous parcels of property there, to be administered by the Secretary of the Army.

(Sec. 2852) Authorizes the Secretary of the Air Force to take appropriate action to quiet title to certain tracts of land near Eglin Air Force Base, Florida, in order to resolve certain encroachment issues. Allows other public purposes with respect to a land conveyance at such Base under a prior military construction authorization Act.

Part IV: Other Conveyances - (Sec. 2861) Authorizes the Secretary to allow the Army and Air Force Exchange Service to convey by sale a parcel of real property on Roundtable Drive in Dallas, Texas.

(Sec. 2862) Authorizes the Secretary of the Air Force to offer to the Chaluka Corporation and the Aleut Corporation (Alaska Native corporations), respectively, the surface and subsurface estate of the former Nikolski Radio Relay Site on Umnak Island, Alaska, in exchange for specified real property in Alaska. Requires the property transferred to the Corporations to be part of and subject to the Alaska Native Claims Settlement Act. Requires environmental restoration with respect to the transferred lands. Directs the Secretary of the Interior to convey certain tracts in fee simple: (1) under a mutual help occupancy agreement under the Aleutian Housing Authority; and (2) in the Nikolski powerhouse land to the Tribal Government of the Native Village of Nikolski if, after restoration, the powerhouse continues to be located on the powerhouse land. Authorizes appropriations. Provides a conditional termination date of such transfer authority.

Subtitle E: Other Matters - (Sec. 2871) Amends the Military Construction Authorization Act for Fiscal Year 2001 to authorize the Secretary of the Navy to utilize certain gift acceptance authority to accept a qualified guarantee for the project to develop the Marine Corps Heritage Center. Terminates such authority on December 31, 2006.

(Sec. 2872) Redesignates the Yuma Training Range Complex in California and Arizona as the Bob Stump Training Range Complex.

(Sec. 2873) Requires the Secretary of the Army to study, and report to the defense committees on, the feasibility, costs, and benefits for the conveyance of the Louisiana Army Ammunition Plant in Doyline, Louisiana, as a model for a public-private partnership for the utilization and development of such Plant and similar parcels of real property.

Division C: Department of Energy National Security Authorizations and Other Authorizations - Title XXXI(sic): Department of Energy National Security Programs - Subtitle A: National Security Programs Authorizations - (Sec. 3101) Authorizes appropriations to the Department of Energy (DOE) for FY 2004 for: (1) activities of the National Nuclear Security Administration (NNSA) in carrying out programs necessary for national security, with specified allocations for weapons activities, defense nuclear nonproliferation activities, naval reactors, and the Office of the Administrator for Nuclear Security; and (2) environmental restoration and waste management activities in carrying out national security programs, with specified allocations for defense environmental management, other defense activities, defense nuclear waste disposal, and defense energy supply.

Subtitle B: Program Authorizations, Restrictions, and Limitations - (Sec. 3111) Amends the National Defense Authorization Act for Fiscal Year 2000 to repeal, after December 31, 2004, the requirement for annual updates of a long-term plan under the nuclear weapons stockpile life extension program.

(Sec. 3112) States that groups of DOE officers and employees reviewing or advising on matters relating to DOE management and operating contracts shall not be considered advisory committees subject to the Federal Advisory Committee Act.

(Sec. 3113) Directs the Secretary of Energy (Secretary, for purposes of this Division) to achieve and maintain a readiness posture of no more than 18 months for the resumption of U.S. underground nuclear tests.

(Sec. 3114) Requires the Administrator for Nuclear Security to: (1) complete project selection for inclusion in the Facilities and Infrastructure Recapitalization Program of the NNSA no later than December 31, 2004; (2) terminate such Program no later than September 30, 2011; (3) report to the defense and appropriations committees conduct guidelines of the Readiness in Technical Base and Facilities program of the NNSA; and (4) continue the NNSA's Operations of Facilities program as a subprogram within the Readiness in Technical Base and Facilities program. Requires the Secretary to submit annually to the defense and appropriations committees a separate statement on the amounts requested for such fiscal year for the Operations of Facilities subprogram.

(Sec. 3115) Amends the Spence Act to remove the F-canyon facility from DOE's authority to continue the processing, treatment, and disposition of legacy nuclear materials (leaving only the H-canyon facility). Revises a report requirement on the use of DOE funds for decommissioning the F-canyon facility.

(Sec. 3116) Amends the National Defense Authorization Act for Fiscal Year 1994 to repeal the prohibition on R&D of low-yield nuclear weapons. Prohibits the Secretary from commencing the engineering development or any subsequent phase of a low-yield nuclear weapon unless specifically authorized by Congress. Requires a joint report from the Secretaries of State, Defense, and Energy to Congress assessing whether the repeal of such prohibition will affect the ability of the United States to achieve its nonproliferation objectives and whether changes in programs and activities would be required to achieve those objectives.

(Sec. 3117) Prohibits the Secretary from commencing the engineering and development or any subsequent phase of a Robust Nuclear Earth Penetrator unless specifically authorized by Congress.

Subtitle C: Proliferation Matters - (Sec. 3121) Directs the Administrator to report semiannually to the defense committees on the amounts available for the DOE defense nuclear nonproliferation programs.

(Sec. 3122) Requires a spending plan report from the Administrator to the defense committees if, on September 30, 2004, the aggregate amount obligated but not expended for defense nuclear nonproliferation activities exceeds 20 percent of the amount already appropriated for such activities.

(Sec. 3123) Directs the Secretary to study, and report to Congress on, purchasing weapons-grade uranium and plutonium from states of the former Soviet Union and safeguarding such purchases until they are rendered unusable for nuclear weapons.

(Sec. 3124) Authorizes the President to obligate and expend international nuclear materials protection and cooperation program funds for a defense nuclear nonproliferation project or activity outside the states of the former Soviet Union if the President determines that such project or activity will: (1) assist the United States in the resolution of a critical emerging proliferation threat or permit the United States to achieve long-standing nonproliferation goals; and (2) will be completed in a short period of time. Requires DOE to be the entity most capable of carrying out such project or activity. Limits to $50 million the amount that may be so obligated in a fiscal year. Requires the President to notify Congress within ten days after any such obligation.

(Sec. 3125) Directs the Secretary to appoint a Federal employee as an on-site manager before obligating any defense nuclear nonproliferation funds for a project in a state of the former Soviet Union that involves dismantlement, destruction, or storage facilities, and for which the total DOE contribution is expected to exceed $50 million. Describes manager duties, including the identification and acquisition of necessary permits. Requires the Secretary to notify Congress upon directing an on-site manager to resume U.S. participation in a suspended project.

Subtitle D: Other Matters - (Sec. 3131) Amends the Atomic Energy Act of 1954 to allow a majority of the members of the Nuclear Regulatory Commission to require that investigations of employees whose positions carry a high degree of importance or sensitivity be carried out by the Federal Bureau of Investigation (FBI) rather than the Civil Service Commission. Repeals a requirement that the FBI conduct investigations of employees assigned to a DOE Personnel Security and Assurance Program.

(Sec. 3132) Directs the Secretary, beginning with FY 2005, to have in effect a policy for carrying out future defense environmental management matters of DOE. Requires a policy report from the Secretary to Congress.

(Sec. 3133) Requires certain stockpile stewardship criteria information to be included by the Secretary in the 2005 stockpile stewardship plan submitted to Congress.

(Sec. 3134) Requires a report from the: (1) National Institute for Occupational Safety and Health to Congress on the Institute's ability to obtain information necessary to carry out radiation dose reconstructions under the Energy Employees Occupational Illness Compensation Program Act of 2000; and (2) Secretary of Labor to Congress on the denial of claims under such Act.

(Sec. 3135) Amends the Stump Act to require the inclusion in a required report of information on the integration and interoperability of R&D, procurement, and other activities undertaken by DOD and DOE during FY 2003 with respect to the Robust Nuclear Earth Penetrator.

Subtitle E: Consolidation of National Security Provisions - (Sec. 3141) Amends the Stump Act to add to it, for consolidation purposes, certain recurring and general provisions of law on DOE national security programs, including provisions under various defense authorization Acts, relating to: (1) atomic energy defense; (2) the naval nuclear propulsion program; (3) nuclear weapons stockpile stewardship and production; (4) tritium production; (5) nuclear proliferation; (6) defense environmental restoration and waste management; (7) the closure of defense nuclear facilities; (8) particular nuclear facilities, including the Hanford Reservation, Washington, and the Savannah River Site, South Carolina; (9) laboratories safeguards and security, including background investigations and polygraph programs; (10) classified information; (11) defense emergency response; (12) personnel matters; (13) employee education and training; (14) worker safety at nuclear weapons facilities; (15) budget and financial matters, including penalties under environmental laws; (16) administrative and other matters; (17) R&D; (18) facilities management; and (19) local impact assistance.

Title XXXII: Defense Nuclear Facilities Safety Board - (Sec. 3201) Authorizes appropriations for FY 2004 for the Defense Nuclear Facilities Safety Board.

Title XXXIII: National Defense Stockpile - (Sec. 3301) Authorizes the National Defense Stockpile (NDS) Manager, during FY 2004, to obligate up to $69.701 million of the funds in the National Defense Stockpile Transaction Fund (Fund) for authorized Fund uses, including the disposal of hazardous materials that are environmentally sensitive. Authorizes the NDS Manager to obligate amounts in excess of such amount 45 days after notifying Congress that extraordinary or emergency conditions necessitate the additional obligations.

(Sec. 3302) Amends the National Defense Authorization Act for Fiscal Year 2000 to increase the monetary objectives for receipts by the end of FY 2013 from the disposal of certain NDS materials.

Title XXXIV: Naval Petroleum Reserves - (Sec. 3401) Authorizes appropriations to the Secretary for FY 2004 to carry out activities relating to the naval petroleum reserves.

Title XXXV: Maritime Administration - (Sec. 3501) Maritime Security Act of 2003 - Subtitle A: Maritime Administration Reauthorization - (Sec. 3511) Authorizes appropriations for the Secretary of Transportation (Secretary, for purposes of this title) for the Maritime Administration (MARAD) for fiscal years 2004 through 2008.

(Sec. 3512) Authorizes the Secretary to convey any vessel of the National Defense Reserve Fleet that has been identified as an obsolete vessel to a nonprofit organization, State or possession, municipal corporation, or political subdivision. Provides other transfer conditions, including that the recipient agrees: (1) not to use the vessel for commercial transportation purposes; and (2) to make the vessel available to the United States if the Secretary indicates that it is needed.

(Sec. 3513) Authorizes the Secretary to convey the vessel USS HOIST to the Last Patrol Museum in Toledo, Ohio, for use as a military museum, under specified transfer conditions.

(Sec. 3514) Updates the calendar year period for purposes of minimum percentage requirements under the cargo preference laws.

(Sec. 3515) Authorizes the Secretary to require either service on active duty in the armed forces or reimbursement for educational costs from any individual who has attended, under scholarship, a U.S. or State merchant marine academy for at least two years and has failed to serve for an agreed-upon period afterwards in either the U.S. merchant marine or on active military duty. Authorizes the Secretary of Defense, with respect to the active-duty service, to waive the service requirement in the case of hardship. Requires U.S. and State merchant marine academy graduates who receive Federal financial assistance to maintain a valid merchant mariner license and certification for at least six years following graduation. Increases from $3,000 to $4,000 the annual student incentive payments for State merchant marine academy graduates. Authorizes the Secretary to establish and maintain a medals and awards program to recognize commendable achievements, service, or performance by personnel of the U.S. Maritime Service.

(Sec. 3516) Amends the Stump Act to extend through March 31, 2004, the deadline for the preparation of obsolete U.S. vessels for transfer to U.S. States, territories and foreign countries for use as artificial reefs.

(Sec. 3517) Authorizes the Secretary to enter into a pilot program under which the Secretary may enter into an operating agreement with a U.S. maritime security fleet contractor for reimbursement by the Secretary for the costs of qualified ship maintenance and repair performed in the United States. States that such a contractor shall not be required to have such work performed in the United States if: (1) there is no U.S. facility available to perform such work; or (2) there are not sufficient funds available for such reimbursement. Provides cost limits and repair notification requirements. Requires the Secretary, following contractor notification of a request for repair, to certify to the contractor whether there is a U.S. facility available to perform the work and whether there are sufficient reimbursement funds. Requires the Secretary to report to specified congressional committees an analysis of the need for agreements authorized under the pilot program. Authorizes appropriations.

Subtitle B: Amendments to Title XI Loan Guarantee Program - (Sec. 3521) Amends provisions of the Merchant Marine Act, 1936 regarding the vessel loan guarantee program (a program under which MARAD guarantees a loan for the construction, reconstruction, or reconditioning of a vessel which will serve as security for the loan guarantee) to direct the Secretary to take certain action to ensure that no loan or portion thereof is disbursed to a ship owner before the obligor of the loan guarantee has met its cost-sharing obligations (25.5 percent or 12.5 percent depending upon vessel type). Directs the Secretary to establish a transparent, independent, and risk-based process for verifying and documenting the progress of projects under construction before disbursing guaranteed loan funds.

(Sec. 3522) Directs the Secretary to promulgate regulations concerning circumstances under which waivers of or exceptions to otherwise applicable regulatory requirements concerning the financial condition of the loan obligor can be made.

(Sec. 3523) Requires the Secretary to monitor the financial conditions and operations of the obligor on a regular basis during the term of the loan guarantee, document results, and take appropriate action, including default proceedings, if necessary. Directs the Secretary to include in loan agreements provisions that allow the Secretary to take action to limit potential loan losses.

(Sec. 3524) Directs the Secretary, in the event of a default proceeding, to take certain action to maximize the return on a default-related sale of assets by obtaining independent appraisals and ensuring adequate competition during foreclosure proceedings.

(Sec. 3525) Requires the Secretary to approve or deny an application for a loan guarantee within 270 days of receipt, with an extension for up to two years after receipt upon request of the applicant.

(Sec. 3526) Authorizes the Secretary to determine that: (1) aspects of a loan application require independent expert analysis due to risk factors associated with markets, technology, financial structures, or other factors as identified by the Secretary; or (2) an application requires additional equity because of the presence of one or more of such factors.

(Sec. 3527) Requires a report from the Secretary to Congress on the loan guarantee program.

(Sec. 3528) Directs the Secretary to: (1) conduct a comprehensive assessment of the human capital and other resource needs in connection with the loan guarantee program; (2) develop an organizational framework that insures a clear separation of administrative duties among the loan application, project monitoring, and default management functions; and (3) report to specified congressional committees on the results of the development of the framework.

Subtitle C: Maritime Security Fleet - (Sec. 3531) Directs the Secretary to establish a fleet of active, commercially viable, military useful, privately owned vessels to meet national defense and other security requirements and to maintain a U.S. presence in international commercial shipping. Sets forth: (1) vessel requirements, including that such vessels be suitable for national defense purposes in time of war or national emergency; and (2) citizenship requirements of vessel owners, charterers, and operators. Directs the Secretary to require that the vessel owner or operator enter into an operating agreement (with specified requirements) with the Secretary for a one-year period beginning with FY 2006, authorizing renewal each year through FY 2015. Provides an agreement priority: (1) first, for a new tank vessel constructed in the United States that is eligible for inclusion in the fleet and will be owned or operated during the agreement period by one or more U.S. citizens as defined under section 2 of the Shipping Act of 1916; (2) second, for the 47 vessels participating in the current national defense reserve fleet program; and (3) third, for vessels owned and operated by one or more section 2 citizens. Provides for agreement termination and the release of vessels from agreement obligations.

Requires under each agreement that the vessel: (1) be operated exclusively in the foreign commerce or in the mixed foreign commerce and domestic trade allowed under a vessel registry endorsement; (2) otherwise not be operated in the coastwise trade; and (3) be documented under Federal maritime law.

Requires annual payments from the Secretary to the vessel owner or charterer in return for the vessel being maintained for possible use for national security or emergency preparedness purposes. Provides payment amounts for fiscal years 2006 through 2015 .

Directs the Secretary to establish an Emergency Preparedness Program, approved by the Secretary of Defense, which shall require that whenever requested by the Secretary of Defense due to national security, national emergency, or a contingency operation, a contractor for a vessel covered by an operating agreement shall make available the commercial transportation resources of such vessel. Prohibits the Secretary from requiring that a contractor continue Program participation after the expiration of an operating agreement, but allows a contractor to volunteer to continue participation. Directs the Secretary of Defense to pay for all commercial transportation resources provided during the period that a vessel is called to participate under the Program. Provides for the use of temporary replacement vessels under the Program.

Provides a special rule making vessel maximum age limits inapplicable for a former participating fleet vessel.

Authorizes appropriations for FY 2006 through 2015.

(Sec. 3535) Requires the CG to study and report to specified congressional committees on: (1) the potential effects of increasing or decreasing the current 7,500 ton limit on the carriage of bulk food aid cargo by fleet program participants; and (2) whether the limitation should apply to bagged as well as bulk cargo.

Subtitle D: National Defense Tank Vessel Construction Assistance - (Sec. 3541) Directs the Secretary to establish a program for the provision of financial assistance for the construction in the United States of a fleet of up to five privately owned product tank vessels to be: (1) operated in commercial service in foreign commerce; and (2) available for national defense purposes in time of war or national emergency pursuant to an Emergency Preparedness Plan approved by the Secretary of Defense. Sets forth application requirements.

(Sec. 3543) Authorizes the Secretary to enter into a contract with the proposed purchaser and shipyard for the construction of a product tank vessel. Limits financial assistance to 75 percent of construction costs, but in no case more than $50 million per vessel. Requires: (1) all construction to be performed in U.S. shipyards; and (2) all constructed vessels to be documented under U.S. maritime law. Makes any such vessel ineligible for a certificate of documentation with a coastwise endorsement. Requires the vessel owner to enter into an Emergency Preparedness Agreement.

(Sec. 3544) Amends the Merchant Marine Act, 1936 to direct the Secretary, in guaranteeing ship mortgage loan guarantees, to give priority to product tank vessels constructed under this title.

(Sec. 3546) Authorizes appropriations for fiscal years after 2004.

Title XXXVI: Nuclear Security Initiative - Nuclear Security Initiative Act of 2003 - Subtitle A: Administration and Oversight of Threat Reduction and Nonproliferation Programs - (Sec. 3611) Directs the CG to carry out and report to the defense committees on an assessment of the management of the threat reduction and nonproliferation programs of DOD and DOE.

Subtitle B: Relations Between the United States and Russia - (Sec. 3621) Expresses the sense of Congress that the United States should work with the Russian Federation to develop a comprehensive inventory of Russian tactical nuclear weapons. Requires a report from the President to Congress describing progress made toward creating such an inventory.

(Sec. 3622) Establishes the Nuclear Threat Reduction Working Group as an inter-parliamentary group of the United States and the Russian Federation to enhance cooperation between such countries with respect to nuclear nonproliferation and security and other issues related to reducing nuclear weapons dangers.

(Sec. 3623) Expresses the sense of Congress that the President, in conjunction with NATO, should encourage cooperative relationships between the Russian Federation, the United States, and NATO with respect to the development and deployment of ballistic missile defenses. Requires a report from the Secretary of Defense to the defense committees on the feasibility of increasing such cooperation.

(Sec. 3624) Expresses the sense of Congress that the President should: (1) encourage joint efforts by the United States and the Russian Federation to reduce the probability of accidental nuclear attack as a result of misinformation or miscalculation; (2) encourage the development of joint programs to ensure that the Russian Federation has reliable information regarding launches of ballistic missiles anywhere in the world; and (3) pending execution of a new agreement for the conduct of the Russian-American Observation Satellite Program, ensure that funds appropriated for that Program for FY 2004 are obligated and expended to provide for the satisfactory continuation of that Program.

Subtitle C: Other Matters - (Sec. 3631) Expresses the sense of Congress that: (1) the United States should seek to initiate discussions between the International Atomic Energy Agency and the Organization for Economic Cooperation and Development for exploring issues of nuclear and radiological security and safety, including the creation of new sources of revenue for states to provide nuclear security; and (2) such discussions should also provide a forum to explore possible sources of funds in support of the G-8 Global Partnership Against the Spread of Weapons and Materials of Mass Destruction. Requires a report from the President to Congress on such discussions.