S.Amdt. 2044

SA 2044. Mr. WARNER submitted an amendment intended to be proposed to
amendment SA 1955 proposed by Mr. Warner (for himself and Mr. Levin) to
the bill H.R. 2863, making appropriations for the Department of Defense
for the fiscal year ending September 30, 2006, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. SENSE OF THE SENATE REGARDING MANNED SPACE FLIGHT.

(a) Findings.--The Congress finds that--
(1) human spaceflight preeminence allows the United States
to project leadership around the world and forms an important
component of United States national security;
(2) continued development of human spaceflight in low-Earth
orbit, on the Moon, and beyond adds to the overall national
strategic posture;
(3) human spaceflight enables continued stewardship of the
region between the earth and the Moon--an area that is
critical and of growing national and international security
relevance;
(4) human spaceflight provides unprecedented opportunities
for the United States to lead peaceful and productive
international relationships with the world community in
support of United States security and geo-political
objectives;
(5) a growing number of nations are pursuing human
spaceflight and space-related capabilities, including China
and India;
(6) past investments in human spaceflight capabilities
represent a national resource that can be built upon and
leveraged for a broad range of purposes, including national
and economic security; and
(7) the industrial base and capabilities represented by the
Space Transportation System provide a critical dissimilar
launch capability for the nation.
(b) Sense of the Senate.--It is the sense of the Senate
that it is in the national security interest of the United
States to maintain uninterrupted preeminence in human
spaceflight.
At the end of title XIV of division A, add the following:

SEC. 1411. TACTICAL WHEELED VEHICLES.

(a) Additional Amount for Other Procurement, Army.--The
amount authorized to be appropriated by section 1403(a)(3)
for other procurement for the Army is hereby increased by
$360,800,000.
(b) Availability of Amount.--Of the amount authorized to be
appropriated by section 1403(a)(3) for other procurement for
the Army, as increased by subsection (a)--
(1) $360,800,000 may be made available for the procurement
of armored Tactical Wheeled Vehicles for units deployed in
Iraq and Afghanistan; or
(2) if the Secretary of the Army determines that such
amount is not needed for the procurement of armored Tactical
Wheeled Vehicles for units deployed in Iraq and Afghanistan--
(A) up to $247,100,000 may be available for the procurement
of armored Tactical Wheeled Vehicles to reconstitute Army
Prepositioned Stocks-5, including the procurement of armored
Light Tactical Vehicles (LTVs), armored Medium Tactical
Vehicles (MTVs), and armored Heavy Tactical Vehicles (HTVs)
for purposes of equipping one heavy brigade, one infantry
brigade, and two infantry battalions; and
(B) up to $113,700,000 may be available for the procurement
of armored Tactical Wheeled Vehicles for the Joint Readiness
Training Center at Fort Polk, Louisiana, including the
procurement of armored Light Tactical Vehicles, armored
Medium Tactical Vehicles, and armored Heavy Tactical Vehicles
for purposes of equipping one infantry brigade combat team in
order to permit such vehicles to be used for the training and
preparation of troops, prior to deployment, on the use of
such vehicles.
On page 286, between lines 7 and 8, insert the following:

SEC. 1073. ANNUAL REPORT ON COSTS TO CARRY OUT UNITED NATIONS
RESOLUTIONS.

(a) Requirement for Annual Report.--The Secretary of
Defense and the Secretary of State shall submit to the
congressional defense committees, the Committee on Foreign
Relations of the Senate, and the Committee on International
Relations of the House of Representatives an annual report
that sets forth all direct and indirect costs (including
incremental costs) incurred by the Department of Defense
during the preceding year in implementing or supporting any
resolution adopted by the United Nations Security Council,
including any such resolution calling for international
sanctions, international peacekeeping operations,
international peace enforcement operations, monitoring
missions, observer missions, or humanitarian missions
undertaken by the Department of Defense. Each such report
shall include an aggregate of all such Department of Defense
costs by operation or mission, the percentage of the United
States contribution by operation or mission, and the total
cost of each operation or mission.
(b) Costs for Assisting Foreign Troops.--The Secretary of
Defense and the Secretary of State shall detail in each
annual report required by this section all direct and
indirect costs (including incremental costs) incurred in
training, equipping, and otherwise assisting, preparing,
resourcing, and transporting foreign troops for implementing
or supporting any resolution adopted by the United Nations
Security Council, including any such resolution calling for
international sanctions, international peacekeeping
operations, international peace enforcement operations,
monitoring missions, observer missions, or humanitarian
missions.
(c) Credit and Compensation.--The Secretary of Defense and
the Secretary of State shall detail in each annual report
required by this section all efforts made to seek credit
against past United Nations expenditures and all efforts made
to seek compensation from the United Nations for costs
incurred by the Department of Defense in implementing and
supporting United Nations activities.
(d) Form of Report.--Each annual report required by this
section shall be submitted in unclassified form, but may
include a classified annex.
On page 237, after line 17, insert the following:

SEC. 846. EXCLUSION OF CERTAIN SECURITY EXPENSES FROM
CONSIDERATION FOR PURPOSE OF SMALL BUSINESS
SIZE STANDARDS.

Section 3(a) of the Small Business Act (15 U.S.C. 632(a)),
is amended by adding at the end the following:
``(4) Exclusion of certain security expenses from
consideration for purpose of small business size standards.--
``(A) Determination required.--Not later than 30 days after
the date of enactment of this paragraph, the Administrator
shall review the application of size standards established
pursuant to paragraph (2) to small business concerns that are
performing contracts in qualified areas and determine whether
it would be fair and appropriate to exclude from
consideration in the average annual gross receipts of such
small business concerns any payments made to such small
business concerns by Federal agencies to reimburse such small
business concerns for the cost of subcontracts entered for
the sole purpose of providing security services in a
qualified area.
``(B) Action required.--Not later than 60 days after the
date of enactment of this paragraph, the Administrator shall
either--
``(i) initiate an adjustment to the size standards, as
described in subparagraph (A), if the Administrator
determines that such an adjustment would be fair and
appropriate; or
``(ii) provide a report to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives explaining in detail
the basis for the determination by the Administrator that
such an adjustment would not be fair and appropriate.
``(C) Qualified areas.--In this paragraph, the term
`qualified area' means--
``(i) Iraq,
``(ii) Afghanistan, and
``(iii) any foreign country which included a combat zone,
as that term is defined in section 112(c)(2) of the Internal
Revenue Code of 1986, at the time of performance of the
relevant Federal contract or subcontract.''.
On page 237, after line 17, insert the following:

SEC. 846. SMALL BUSINESS CONTRACTING IN OVERSEAS
PROCUREMENTS.

Section 15(g) of the Small Business Act (15 U.S.C. 644(g))
is amended by adding at the end the following:
``(3) Small business contracting in overseas
procurements.--
``(A) Statement of congressional policy.--It is the policy
of the Congress that Federal agencies shall endeavor to meet
the contracting goals established under this subsection,
regardless of the geographic area in which the contracts will
be performed.
``(B) Authorization to use contracting mechanisms.--Federal
agencies are authorized to use any of the contracting
mechanisms authorized in this Act for the purpose of
complying with the Congressional policy set forth in
subparagraph (A).
``(C) Report to congressional committees.--Not later than 1
year after the date of enactment of this paragraph, the
Administrator and the Chief Counsel for Advocacy shall submit
to the Committee on Small Business and Entrepreneurship of
the Senate and Committee on Small Business of the House of
Representatives a report on the activities undertaken by
Federal agencies, offices, and departments to carry out this
paragraph.''.
On page 237, after line 17, insert the following:

SEC. 846. FAIR ACCESS TO MULTIPLE-AWARD CONTRACTS.

Section 15(g) of the Small Business Act (15 U.S.C. 644(g))
is amended by adding at the end the following:

[[Page S10994]]

``(3) Fair access to multiple-award contracts.--
``(A) Statement of congressional policy.--It is the policy
of the Congress that Federal agencies shall endeavor to meet
the contracting goals established under this subsection with
regard to orders under multiple-award contracts, including
Federal Supply Schedule contracts and multi-agency contracts.
``(B) Authorization for limited competition.--The head of a
contracting agency may include in any contract entered under
section 2304a(d)(1)(B) or 2304b(e) of title 10, United States
Code, a clause setting aside a specific share of awards under
such contract pursuant to a competition that is limited to
small business concerns, if the head of the contracting
agency determines that such limitation is necessary to comply
with the congressional policy stated in subparagraph (A).
``(C) Report requirement.--
``(i) In general.--Not later than 180 days after the date
of enactment of this paragraph, the Administrator shall
submit a report on the level of participation of small
business concerns in multiple-award contracts, including
Federal Supply Schedule contracts, to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives.
``(ii) Contents.--The report required by clause (i) shall
include, for the most recent 2-year period for which data are
available--
``(I) the total number of multiple-award contracts;
``(II) the total number of small business concerns that
received multiple-award contracts;
``(III) the total number of orders under multiple-award
contracts;
``(IV) the total value of orders under multiple-award
contracts;
``(V) the number of orders received by small business
concerns under multiple-award contracts;
``(VI) the value of orders received by small business
concerns under multiple-award contracts;
``(VII) the number of small business concerns that received
orders under multiple-award contracts; and
``(VIII) such other information as may be relevant.''.
On page 218, strike line 1 and all that follows through
page 220, line 5, and insert the following:

SEC. 814. RESEARCH AND DEVELOPMENT EFFORTS FOR PURPOSES OF
SMALL BUSINESS RESEARCH.

(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638) is amended by adding at the end the following:
``(x) Research and Development Focus.--
``(1) Revision and update of criteria and procedures of
identification.--In carrying out subsection (g), the
Secretary of Defense shall, not less often than once every 4
years, revise and update the criteria and procedures utilized
to identify areas of the research and development efforts of
the Department of Defense which are suitable for the
provision of funds under the Small Business Innovation
Research Program and the Small Business Technology Transfer
Program.
``(2) Utilization of plans.--The criteria and procedures
described in paragraph (1) shall be developed through the use
of the most current versions of the following plans:
``(A) The joint warfighting science and technology plan
required under section 270 of the National Defense
Authorization Act for Fiscal Year 1997 (10 U.S.C. 2501 note).
``(B) The Defense Technology Area Plan of the Department of
Defense.
``(C) The Basic Research Plan of the Department of Defense.
``(3) Input in identification of areas of effort.--The
criteria and procedures described in paragraph (1) shall
include input in the identification of areas of research and
development efforts described in that paragraph from
Department of Defense program managers (PMs) and program
executive officers (PEOs).
``(y) Commercialization Pilot Program.--
``(1) In general.--The Secretary of Defense and the
Secretary of each military department is authorized to create
and administer a `Commercialization Pilot Program' to
accelerate the transition of technologies, products, and
services developed under the Small Business Innovation
Research Program to Phase III, including the acquisition
process.
``(2) Identification of research programs for accelerated
transition to acquisition process.--In carrying out the
Commercialization Pilot Program, the Secretary of Defense and
the Secretary of each military department shall identify
research programs of the Small Business Innovation Research
Program that have the potential for rapid transitioning to
Phase III and into the acquisition process.
``(3) Limitation.--No research program may be identified
under paragraph (2), unless the Secretary of the military
department concerned certifies in writing that the successful
transition of the program to Phase III and into the
acquisition process is expected to meet high priority
military requirements of such military department.
``(4) Funding.--For payment of expenses incurred to
administer the Commercialization Pilot Program under this
subsection, the Secretary of Defense and each Secretary of a
military department is authorized to use not more than an
amount equal to 1 percent of the funds available to the
Department of Defense or the military department pursuant to
the Small Business Innovation Research Program. Such funds--
``(A) shall not be subject to the limitations on the use of
funds in subsection (f)(2); and
``(B) shall not be used to make Phase III awards.
``(5) Evaluative report.--At the end of each fiscal year,
the Secretary of Defense and each Secretary of a military
department shall submit to the Committee on Armed Services
and the Committee on Small Business and Entrepreneurship of
the Senate and the Committee on Armed Services and the
Committee on Small Business of the House of Representatives
an evaluative report regarding activities under the
Commercialization Pilot Program. The report shall include--
``(A) an accounting of the funds used in the
Commercialization Pilot Program;
``(B) a detailed description of the Commercialization Pilot
Program, including incentives and activities undertaken by
acquisition program managers, program executive officers, and
by prime contractors; and
``(C) a detailed compilation of results achieved by the
Commercialization Pilot Program, including the number of
small business concerns assisted and a number of inventions
commercialized.
``(6) Sunset.--The pilot program under this subsection
shall terminate at the end of fiscal year 2009.''.
(b) Implementation of Executive Order 13329.--Section 9 of
the Small Business Act (15 U.S.C. 638) is amended--
(1) in subsection (b)--
(A) in paragraph (6), by striking ``and'' at the end;
(B) in paragraph (7), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(8) to provide for and fully implement the tenets of
Executive Order 13329 (Encouraging Innovation in
Manufacturing).'';
(2) in subsection (g)--
(A) in paragraph (9), by striking ``and'' at the end;
(B) in paragraph (10), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(11) provide for and fully implement the tenets of
Executive Order 13329 (Encouraging Innovation in
Manufacturing).''; and
(3) in subsection (o)--
(A) in paragraph (14), by striking ``and'' at the end;
(B) in paragraph (15), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(16) provide for and fully implement the tenets of
Executive Order 13329 (Encouraging Innovation in
Manufacturing).''.
(c) Testing and Evaluation Authority.--Section 9(e) of the
Small Business Act (15 U.S.C. 638(e)) is amended--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(9) the term `commercial applications' shall not be
construed to exclude testing and evaluation of products,
services, or technologies for use in technical or weapons
systems, and further, awards for testing and evaluation of
products, services, or technologies for use in technical or
weapons systems may be made in either the second or the third
phase of the Small Business Innovation Research Program and
of the Small Business Technology Transfer Program, as defined
in this subsection.''.
On page 237, after line 17, insert the following:

SEC. 846. DISASTER RELIEF FOR SMALL BUSINESS CONCERNS DAMAGED
BY DROUGHT.

(a) Drought Disaster Authority.--
(1) Definition of disaster.--Section 3(k) of the Small
Business Act (15 U.S.C. 632(k)) is amended--
(A) by inserting ``(1)'' after ``(k)''; and
(B) by adding at the end the following:
``(2) For purposes of section 7(b)(2), the term `disaster'
includes--
``(A) drought; and
``(B) below average water levels in the Great Lakes, or on
any body of water in the United States that supports commerce
by small business concerns.''.
(2) Drought disaster relief authority.--Section 7(b)(2) of
the Small Business Act (15 U.S.C. 636(b)(2)) is amended--
(A) by inserting ``(including drought), with respect to
both farm-related and nonfarm-related small business
concerns,'' before ``if the Administration''; and
(B) in subparagraph (B), by striking ``the Consolidated
Farmers Home Administration Act of 1961 (7 U.S.C. 1961)'' and
inserting the following: ``section 321 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1961), in which
case, assistance under this paragraph may be provided to
farm-related and nonfarm-related small business concerns,
subject to the other applicable requirements of this
paragraph''.
(b) Limitation on Loans.--From funds otherwise appropriated
for loans under section 7(b) of the Small Business Act (15
U.S.C. 636(b)), not more than $9,000,000 may be used during
each of fiscal years 2005 through 2008, to provide drought
disaster loans to nonfarm-related small business concerns in
accordance with this section and the amendments made by this
section.
(c) Prompt Response to Disaster Requests.--Section
7(b)(2)(D) of the Small Business Act (15 U.S.C. 636(b)(2)(D))
is

[[Page S10995]]

amended by striking ``Upon receipt of such certification, the
Administration may'' and inserting ``Not later than 30 days
after the date of receipt of such certification by a Governor
of a State, the Administration shall respond in writing to
that Governor on its determination and the reasons therefore,
and may''.
(d) Rulemaking.--Not later than 45 days after the date of
enactment of this Act, the Administrator of the Small
Business Administration shall promulgate final rules to carry
out this section and the amendments made by this section.
On page 237, after line 17, insert the following:

SEC. 846. RADIO FREQUENCY IDENTIFIER TECHNOLOGY.

(a) Small Business Strategy.--As part of implementing its
requirement that contractors use radio frequency identifier
technology, the Secretary of Defense shall develop and
implement a strategy to educate the small business community
regarding radio frequency identifier technology requirements,
compliance, standards, and opportunities.
(b) Reporting.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Defense shall submit
a report to the Committee on Small Business and
Entrepreneurship and the Committee on Armed Services of the
Senate and the Committee on Small Business and the Committee
on Armed Services of the House of Representatives detailing
the status of the efforts by the Secretary of Defense to
establish requirements for radio frequency identifier
technology used in Department of Defense contracting,
including--
(A) standardization of the data required to be reported by
such technology; and
(B) standardization of the manufacturing quality required
for such technology.
(C) the status of the efforts of the Secretary of Defense
to develop and implement a strategy to educate the small
business community, as required by subsection (a)(2).
At the end of subtitle E of title VI, add the following:

SEC. 653. SERVICEMEMBERS RIGHTS UNDER THE HOUSING AND URBAN
DEVELOPMENT ACT OF 1968.

(a) In General.--Section 106(c)(5)(A)(ii) of the Housing
and Urban Development Act of 1968 (12 U.S.C.
1701x(c)(5)(A)(ii)) is amended--
(1) in subclause (II), by striking ``; and'' and inserting
a semicolon;
(2) in subclause (III), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:

``(IV) notify the homeowner by a statement or notice,
written in plain English by the Secretary of Housing and
Urban Development, in consultation with the Secretary of
Defense and the Secretary of the Treasury, explaining the
mortgage and foreclosure rights of servicemembers, and the
dependents of such servicemembers, under the Servicemembers
Civil Relief Act (50 U.S.C. App. 501 et seq.), including the
toll-free military one source number to call if
servicemembers, or the dependents of such servicemembers,
require further assistance.''.

(b) No Effect on Other Laws.--Nothing in this section shall
relieve any person of any obligation imposed by any other
Federal, State, or local law.
(c) Disclosure Form.--Not later than 150 days after the
date of enactment of this Act, the Secretary of Housing and
Urban Development shall issue a final disclosure form to
fulfill the requirement of section 106(c)(5)(A)(ii)(IV) of
the Housing and Urban Development Act of 1968 (12 U.S.C.
1701x(c)(5)(A)(ii)).
(d) Effective Date.--The amendments made under subsection
(a) shall take effect 150 days after the date of enactment of
this Act.
At the end of subtitle B of title I, add the following:

SEC. 114. SECOND SOURCE FOR PRODUCTION AND SUPPLY OF TIRES
FOR THE STRYKER COMBAT VEHICLE.

(a) Requirement.--The Secretary of the Army shall conduct a
study of the feasibility and costs and benefits for the
participation of a second source for the production and
supply of tires for the Stryker combat vehicle to be procured
by the Army with funds authorized to be appropriated in this
Act.
(b) Report.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall submit to the
congressional defense committees a report on the results of
the study under subsection (a). The report shall include--
(1) an analysis of the capacity of the industrial base in
the United States to meet requirements for a second source
for the production and supply of tires for the Stryker combat
vehicle; and
(2) to the extent that the capacity of the industrial base
in the United States is not adequate to meet such
requirements, recommendations on means, over the short-term
and the long-term, to address that inadequacy.
At the appropriate place in title VIII, insert the
following:

SEC. __. ENSURING TRANSPARENCY IN FEDERAL CONTRACTING.

(a) Publication of Information on Federal Contractor
Penalties and Violations.--(1) The Secretary of Defense shall
maintain a publicly-available website that provides
information on instances in which major contractors have been
fined, paid penalties or restitution, settled, plead guilty
to, or had judgments entered against them in connection with
allegations of improper conduct. The website shall be updated
not less than once a year.
(2) For the purpose of this subsection, a major contractor
is a contractor that receives at least $100,000,000 in
Federal contracts in the most recent fiscal year for which
data are available.
(b) Report on Federal Sole Source Contracts Related to Iraq
Reconstruction.--
(1) Report required.--Not later than 120 days after the
date of the enactment of this Act, the Administrator for
Federal Procurement Policy shall submit to Congress a report
on all sole source contracts in excess of $2,000,000 entered
into by executive agencies in connection with Iraq
reconstruction from January 1, 2003, through the date of the
enactment of this Act.
(2) Content.--The report submitted under paragraph (1)
shall include the following information with respect to each
such contract:
(A) The date the contract was awarded.
(B) The contract number.
(C) The name of the contractor.
(D) The amount awarded.
(E) A brief description of the work to be performed under
the contract.
(3) Executive agency defined.--In this subsection, the term
``executive agency'' has the meaning given such term in
section 4 of the Office of Federal Procurement Policy Act (41
U.S.C. 403).
At the end of subtitle A of title VIII, add the following:

SEC. 807. GUIDANCE ON USE OF TIERED EVALUATION OF OFFERS FOR
CONTRACTS AND TASK ORDERS UNDER CONTRACTS.

(a) Guidance Required.--The Secretary of Defense shall
prescribe guidance for the military departments and the
Defense Agencies on the use of tiered evaluations of offers
or proposals of offerors for contracts and for task orders
under contracts.
(b) Elements.--The guidance prescribed under subsection (a)
shall include a prohibition on the initiation by a
contracting officer of a tiered evaluation of an offer or
proposal of an offeror for a contract or for a task or
delivery order under a contract unless the contracting
officer--
(1) has conducted market research in accordance with part
10 of the Federal Acquisition Regulation in order to
determine whether or not a sufficient number of qualified
small businesses are available to justify limiting
competition for the award of such contract or task or
delivery order under applicable law and regulations;
(2) is unable, after conducting market research under
paragraph (1), to make the determination described in that
paragraph; and
(3) includes in the contract file a written explanation why
such contracting officer was unable to make such
determination.
On page 52, between lines 5 and 6, insert the following:

SEC. 304. NAVY HUMAN RESOURCES BENEFIT CALL CENTER.

Of the amount authorized to be appropriated by section
301(2) for operation and maintenance for the Navy, $1,500,000
may be available for civilian manpower and personnel for a
human resources benefit call center.
On page 213, between lines 2 and 3, insert the following:

SEC. 807. CONGRESSIONAL NOTIFICATION OF CANCELLATION OF MAJOR
AUTOMATED INFORMATION SYSTEMS.

(a) Report Required.--The Secretary of Defense shall notify
the congressional defense committees not less than 60 days
before cancelling a major automated information system
program that has been fielded or approved to be fielded, or
making a change that will significantly reduce the scope of
such a program, of the proposed cancellation or change.
(b) Content.--Each notification submitted under subsection
(a) with respect to the proposed cancellation or change shall
include--
(1) the specific justification for the proposed change;
(2) a description of the impact of the proposed change on
the Department's ability to achieve the objectives of the
program that has been cancelled or changed;
(3) a description of the steps that the Department plans to
take to achieve such objectives; and
(4) other information relevant to the change in acquisition
strategy.
(c) Definitions.--In this section:
(1) The term ``major automated information system'' has the
meaning given that term in Department of Defense Directive
5000.
(2) The term ``approved to be fielded'' means having
received Milestone C approval.
At the end of subtitle C of title III, add the following:

SEC. 330. PROVISION OF DEPARTMENT OF DEFENSE SUPPORT FOR
CERTAIN PARALYMPIC SPORTING EVENTS.

Section 2564 of title 10, United States Code, is amended--
(1) in subsection (c) by adding at the end the following
new paragraphs:
``(4) A sporting event sanctions by the United States
Olympic Committee through the Paralympic Military Program.
``(5) A national or international Paralympic sporting event
(other than one covered by paragraph (3) or (4)) which is--
``(A) held in the United States or any of its territories
or commonwealths;
``(B) governed by the International Paralympic Committee;
``(C) sanctioned by the United States Olympic Committee;
and
``(D) for which participation exceeds 100 amateur
athletes.''; and

[[Page S10996]]

(2) in subsection (d)--
(A) by inserting ``(1)'' before ``The Secretary''; and
(B) by adding at the end the following new paragraph:
``(2) Not more than $1,000,000 may be expended in any
fiscal year to provide support for events specified under
paragraph (5) of subsection (c).''.
On page 292, between lines 15 and 16, insert the following:

SEC. 1106. BID PROTESTS BY FEDERAL EMPLOYEES IN ACTIONS UNDER
OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-76.

(a) Eligibility to Protest.--(1) Section 3551(2) of title
31, United States Code, is amended to read as follows:
``(2) The term `interested party'--
``(A) with respect to a contract or a solicitation or other
request for offers described in paragraph (1), means an
actual or prospective bidder or offeror whose direct economic
interest would be affected by the award of the contract or by
failure to award the contract; and
``(B) with respect to a public-private competition
conducted under Office of Management and Budget Circular A-76
regarding performance of an activity or function of a Federal
agency, includes--
``(i) any official who submitted the agency tender in such
competition; and
``(ii) any one person who, for the purpose of representing
them in a protest under this subchapter that relates to such
competition, has been designated as their agent by a majority
of the employees of such Federal agency who are engaged in
the performance of such activity or function.''.
(2)(A) Subchapter V of chapter 35 of such title is amended
by adding at the end the following new section:

``Sec. 3557. Expedited action in protests for Public-Private
competitions

``For protests in cases of public-private competitions
conducted under Office of Management and Budget Circular A-76
regarding performance of an activity or function of Federal
agencies, the Comptroller General shall administer the
provisions of this subchapter in a manner best suited for
expediting final resolution of such protests and final action
in such competitions.''.
(B) The chapter analysis at the beginning of such chapter
is amended by inserting after the item relating to section
3556 the following new item:

``3557. Expedited action in protests for public-private
competitions.''.

(b) Right to Intervene in Civil Action.--Section 1491(b) of
title 28, United States Code, is amended by adding at the end
the following new paragraph:
``(5) If a private sector interested party commences an
action described in paragraph (1) in the case of a public-
private competition conducted under Office of Management and
Budget Circular A-76 regarding performance of an activity or
function of a Federal agency, then an official or person
described in section 3551(2)(B) of title 31 shall be entitled
to intervene in that action.''.
(c) Applicability.--Subparagraph (B) of section 3551(2) of
title 31, United States Code (as added by subsection (a)),
and paragraph (5) of section 1491(b) of title 28, United
States Code (as added by subsection (b)), shall apply to--
(1) protests and civil actions that challenge final
selections of sources of performance of an activity or
function of a Federal agency that are made pursuant to
studies initiated under Office of Management and Budget
Circular A-76 on or after January 1, 2004; and
(2) any other protests and civil actions that relate to
public-private competitions initiated under Office of
Management and Budget Circular A-76 on or after the date of
the enactment of this Act.
On page 213, between lines 2 and 3, insert the following:

SEC. 807. PUBLIC-PRIVATE COMPETITION FOR WORK PERFORMED BY
CIVILIAN EMPLOYEES OF THE DEPARTMENT OF
DEFENSE.

(a) Limitation.--Section 2461(b) of title 10, United States
Code, is amended by adding at the end the following new
paragraph:
``(5)(A) Notwithstanding subsection (d), a function of the
Department of Defense performed by 10 or more civilian
employees may not be converted, in whole or in part, to
performance by a contractor unless the conversion is based on
the results of a public-private competition process that--
``(i) formally compares the cost of civilian employee
performance of that function with the costs of performance by
a contractor;
``(ii) creates an agency tender, including a most efficient
organization plan, in accordance with Office of Management
and Budget Circular A-76, as implemented on May 29, 2003; and
``(iii) requires continued performance of the function by
civilian employees unless the competitive sourcing official
concerned determines that, over all performance periods
stated in the solicitation of offers for performance of the
activity or function, the cost of performance of the activity
or function by a contractor would be less costly to the
Department of Defense by an amount that equals or exceeds the
lesser of $10,000,000 or 10 percent of the most efficient
organization's personnel-related costs for performance of
that activity or function by Federal employees.
``(B) Any function that is performed by civilian employees
of the Department of Defense and is proposed to be
reengineered, reorganized, modernized, upgraded, expanded, or
changed in order to become more efficient shall not be
considered a new requirement for the purpose of the
competition requirements in subparagraph (A) or the
requirements for public-private competition in Office of
Management and Budget Circular A-76.
``(C) A function performed by more than 10 Federal
Government employees may not be separated into separate
functions for the purposes of avoiding the competition
requirement in subparagraph (A) or the requirements for
public-private competition in Office of Management and Budget
Circular A-76.
``(D) The Secretary of Defense may waive the requirement
for a public-private competition under subparagraph (A) in
specific instances if--
``(i) the written waiver is prepared by the Secretary of
Defense or the relevant Assistant Secretary of Defense,
Secretary of a military department, or head of a Defense
Agency;
``(ii) the written waiver is accompanied by a detailed
determination that national security interests preclude
compliance with the requirement for a public-private
competition; and
``(iii) a copy of the waiver is published in the Federal
Register within 10 working days after the date on which the
waiver is granted, although use of the waiver need not be
delayed until its publication.''.
(b) Inapplicability to Best-Value Source Selection Pilot
Program.--Paragraph (5) of section 2461(b) of title 10,
United States Code, as added by subsection (a), shall not
apply with respect to the pilot program for best-value source
selection for performance of information technology services
authorized by section 336 of the National Defense
Authorization Act for Fiscal Year 2004 (Public Law 108-136;
117 Stat. 1444; 10 U.S.C. 2461 note).
(c) Repeal of Superseded Law.--Section 327 of the Ronald W.
Reagan National Defense Authorization Act for Fiscal Year
2005 (Public Law 108-375; 10 U.S.C. 2461 note) is repealed.

SEC. 808. PERFORMANCE OF CERTAIN WORK BY FEDERAL GOVERNMENT
EMPLOYEES.

(a) Guidelines.--
(1) In general.--The Secretary of Defense shall prescribe
guidelines and procedures for ensuring that consideration is
given to using Federal Government employees on a regular
basis for work that is performed under Department of Defense
contracts and could be performed by Federal Government
employees.
(2) Criteria.--The guidelines and procedures prescribed
under paragraph (1) shall provide for special consideration
to be given to contracts that--
(A) have been performed by Federal Government employees at
any time on or after October 1, 1980;
(B) are associated with the performance of inherently
governmental functions;
(C) were not awarded on a competitive basis; or
(D) have been determined by a contracting officer to be
poorly performed due to excessive costs or inferior quality.
(b) New Requirements.--
(1) Limitation on requiring public-private competition.--No
public-private competition may be required under Office of
Management and Budget Circular A-76 or any other provision of
law or regulation before the performance of a new requirement
by Federal Government employees commences, the performance by
Federal Government employees of work pursuant to subsection
(a) commences, or the scope of an existing activity performed
by Federal Government employees is expanded. Office of
Management and Budget Circular A-76 shall be revised to
ensure that the heads of all Federal agencies give fair
consideration to the performance of new requirements by
Federal Government employees.
(2) consideration of federal government employees.--The
Secretary of Defense shall, to the maximum extent
practicable, ensure that Federal Government employees are
fairly considered for the performance of new requirements,
with special consideration given to new requirements that
include functions that--
(A) are similar to functions that have been performed by
Federal Government employees at any time on or after October
1, 1980; or
(B) are associated with the performance of inherently
governmental functions.
(c) Use of Flexible Hiring Authority.--The Secretary shall
include the use of the flexible hiring authority available
through the National Security Personnel System in order to
facilitate performance by Federal Government employees of new
requirements and work that is performed under Department of
Defense contracts.
(d) Inspector General Report.--Not later than 180 days
after the enactment of this Act, the Inspector General of the
Department of Defense shall submit to the Committees on Armed
Services of the Senate and the House of Representatives a
report on the compliance of the Secretary of Defense with the
requirements of this section.
(e) Definitions.--In this section:
(1) The term ``National Security Personnel System'' means
the human resources management system established under the
authority of section 9902 of title 5, United States Code.
(2) The term ``inherently governmental function'' has the
meaning given that term

[[Page S10997]]

in section 5 of the Federal Activities Inventory Reform Act
of 1998 (Public Law 105-270; 112 Stat. 2384; 31 U.S.C. 501
note).
At the end of subtitle A of title VIII, add the following:

SEC. 807. CONTRACTING FOR PROCUREMENT OF CERTAIN SUPPLIES AND
SERVICES.

(a) Modification of Limitation on Conversion to Contractor
Performance.--Section 8014(a)(3) of the Department of Defense
Appropriations Act, 2005 (Public law 108-287; 118 Stat. 972)
is amended--
(1) in subparagraph (A), by inserting ``, payment that
could be used in lieu of such a plan, health savings account,
or medical savings account'' after ``health insurance plan'';
and
(2) in subparagraph (B), by striking ``that requires'' and
all that follows through the end and inserting ``that does
not comply with the requirements of any Federal law governing
the provision of health care benefits by Government
contractors that would be applicable if the contractor
performed the activity or function under the contract.''.
At the appropriate place in title V, insert the following:

SEC. __. PARTICIPATION OF MEMBERS OF THE ARMED FORCES IN THE
PARALYMPIC GAMES.

Section 717(a)(1) of title 10, United States Code, is
amended by striking ``and Olympic Games'' and inserting ``,
Olympic Games, and Paralympic Games,''.
On page 371, between lines 8 and 9, insert the following:

SEC. 2887. REPORT ON USE OF GROUND SOURCE HEAT PUMPS AT
DEPARTMENT OF DEFENSE FACILITIES.

(a) Report Required.--Not later than 180 days after the
date of the enactment of this Act, the Secretary of Defense
shall submit to the congressional defense committees a report
on the use of ground source heat pumps at Department of
Defense facilities.
(b) Content.--The report required under subsection (a)
shall include--
(1) a description of the types of Department of Defense
facilities that use ground source heat pumps;
(2) an assessment of the applicability and cost-
effectiveness of the use of ground source heat pumps at
Department of Defense facilities in different geographic
regions of the United States;
(3) a description of the relative applicability of ground
source heat pumps for purposes of new construction at, and
retrofitting of, Department of Defense facilities; and
(4) recommendations for facilitating and encouraging the
increased use of ground source heat pumps at Department of
Defense facilities.
______