National Defense Authorization Act for Fiscal Year 2003

National Defense Authorization Act for Fiscal Year 2003 - Division A: Department of Defense Authorizations - Title I: Procurement - Subtitle A: Authorization of Appropriations - Authorizes appropriations for FY 2003 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 2003 for: (1) defense-wide procurement; (2) the Defense Inspector General; (3) the chemical demilitarization program; and (4) defense health programs.

Subtitle B: Army Programs - Amends the National Defense Authorization Act for Fiscal Year 1998 to: (1) extend through 2004 a pilot program on sales of manufactured articles and services of certain Army industrial facilities without regard to their availability from domestic sources; (2) allow the use of a percentage of Army surplus funds for unutilized plant capacity to be transferred and used for the demilitarization of Army conventional ammunition; and (3) require the Inspector General of the Department of Defense (DOD) to review the experience under the above pilot program and report review results to Congress.

Subtitle C: Navy Programs - Earmarks specified Navy and Marine Corps procurement funds (with an offsetting reduction) for the procurement of the integrated bridge system.

(Sec. 122) Amends the National Defense Authorization Act for Fiscal Year 1997 to extend until October 1, 2007, multiyear procurement authority for DDG-51 class destroyers.

(Sec. 123) Sets forth the scope of the cruiser conversion program to be maintained by the Secretary of the Navy for the Ticonderoga class of AEGIS cruisers.

(Sec. 124) Increases (with an offsetting reduction) the amount authorized for Marine Corps procurement, to be allocated to range training devices.

Subtitle D: Air Force Programs - Authorizes the Secretary of the Air Force, beginning with the FY 2003 program year, to enter into a multiyear contract (up to six years) for the procurement of C-130J aircraft and variants, with a limitation.

(Sec. 132) Directs the Secretary of the Air Force to: (1) identify among specified pathfinder programs each program that such Secretary shall conduct as a spiral development program; and (2) submit to the Secretary of Defense (Secretary) for each selected program a spiral development plan meeting specified requirements. Requires the Secretary to: (1) review and approve or disapprove each plan; and (2) submit to the congressional defense and appropriations committees a copy of each approved plan. Requires specified DOD officials to assess each pathfinder program not selected or approved for spiral development, and report to the defense and appropriations committees an assessment for an acquisition plan for such program.

(Sec. 133) Directs the Office of the Secretary to maintain oversight of acquisition for defense space programs. Requires a report from the Secretary to the defense and appropriations committees on an oversight plan.

(Sec. 134) Prohibits the Secretary of the Air Force from entering into any lease for tanker aircraft until such Secretary submits a specified report required under a prior defense appropriations Act and obtains authorization and appropriation of necessary funds to enter into such a lease.

(Sec. 135) Earmarks specified Air Force procurement funds for the Compass Call program within classified projects and not within the Defense Airborne Reconnaissance Program.

(Sec. 136) Expresses the sense of Congress that the Under Secretary of the Air Force should: (1) evaluate all options for sustaining the U.S. space launch industrial base; (2) develop a plan for assuring U.S. access to space; and (3) report to Congress on such plan as early as practicable.

(Sec. 137) Earmarks specified Air Force procurement funds (with an offsetting reduction) for the procurement of technical communications-electronics equipment for the Mobile Emergency Broadcast System.

Title II: Research, Development, Test, and Evaluation - Subtitle A: Authorization of Appropriations - Authorizes appropriations for FY 2003 for the armed forces for research, development, test, and evaluation (RDT&E). Earmarks specified amounts for science and technology projects.

(Sec. 203) Authorizes appropriations for FY 2003 for RDT&E for carrying out DOD health care programs, projects, and activities.

Subtitle B: Program Requirements, Restrictions, and Limitations - Directs the Secretary of the Air Force to manage the DOD program of basic seismic research in support of national requirements for monitoring nuclear explosions. Earmarks specified RDT&E funds for such purpose.

(Sec. 212) Authorizes the Secretary, for RDT&E for the Advanced SEAL Delivery System, to use any funds that were authorized to be appropriated to DOD for FY 2002 for the procurement of that system, were so appropriated, and are no longer needed for such purpose.

(Sec. 213) Directs the Secretary of the Army to report to Congress on the Army experimentation program regarding design of the objective force required under a prior defense authorization Act.

(Sec. 214) Reduces by $475.6 million the amount available for continued research and development of the Crusader artillery system. Increases by the same amount funds available for Army RDT&E for the Objective Force indirect fire systems (prohibiting obligation of the latter funds until 30 days after the Secretary reports to the defense and appropriations committees concerning Army indirect fire alternative programs).

(Sec. 215) Earmarks specified Navy RDT&E funds (with an offsetting reduction) for laser welding and cutting demonstration in force protection applied research.

(Sec. 216) Increases (with an offsetting reduction) the amount of Navy RDT&E funds for Navy analysis of emerging threats.

(Sec. 217) Prohibits the Medical Free Electron Laser Program from being transferred from DOD to the National Institutes of Health or any other Federal department or agency.

(Sec. 218) Earmarks specified Navy RDT&E funds for the demonstration of renewable energy use program.

(Sec. 219) Increases (with offsetting reductions): (1) Army RDT&E funds for Army radar power technology and for development of a prototype composite hull design to meet theater support vessel requirements; (2) Air Force RDT&E funds for Theater Aerospace Command and Control Simulation Facility upgrades; (3) Navy RDT&E funds for the DDG optimized manning initiative and for development and demonstration of a full-scale high-speed permanent magnet generator; and (4) defense-wide RDT&E funds for research, analysis, and assessment of efforts to counter potential agroterrorist attacks. Earmarks (with offsetting reductions) specified: (1) defense-wide RDT&E funds for critical infrastructure protection; (2) Navy RDT&E funds for the aviation-shipboard information technology initiative and for development of the littoral ship program; and (3) Air Force RDT&E funds for the Aerospace Relay Mirror System demonstration.

Subtitle C: Missile Defense Programs - Requires the Director of Operational Test and Evaluation to perform annual operational assessments and reviews of ballistic missile defense programs, requiring reports to the Secretary and the defense and appropriations committees. Requires the Joint Requirements Oversight Council to: (1) review cost, schedule, and performance criteria for such programs, assessing criteria validity in relation to military requirements; and (2) report review results to the Secretary and the defense and appropriations committees.

(Sec. 222) Directs the Secretary to report to the defense and appropriations committees on the: (1) Midcourse Defense program of the United States Missile Defense Agency; (2) Air-based Boost program (formerly the Airborne Laser program); and (3) Theater High Altitude Area Defense program.

(Sec. 225) Amends specified Federal laws to change references to the Ballistic Missile Defense Organization to the United States Missile Defense Agency.

(Sec. 226) Prohibits the use of any funds authorized by this or any other Act for RDT&E, procurement, or deployment of nuclear armed interceptors of a missile defense system.

(Sec. 227) Requires the Director of the United States Missile Defense Agency to report to the defense and appropriations committees on each flight test of the Ground-based Midcourse national missile defense system.

Subtitle D: Improved Management of Department of Defense Test and Evaluation Facilities - Establishes within DOD a Test and Evaluation Resource Enterprise to manage all DOD funds available for the support of investment in, or operation, maintenance, development, and management of, the test and evaluation facilities and resources of the Major Range and Test Facility Base. Outlines duties of the head of such Enterprise. Directs the Secretary to develop a transition plan to ensure that the Enterprise head is prepared to assume such duties. States that, until the Enterprise is established, all investments of $500,000 or more in such Base shall be subject to the approval of the Director of Operational Test and Evaluation.

(Sec. 232) Transfers from DOD program accounts to the major test and evaluation investment programs of the military departments and to the DOD Central Test and Evaluation Investment Program amounts authorized for DOD demonstration and validation, engineering and manufacturing development, and operational systems development. Authorizes the Secretary of the military department concerned to charge an entity for using for testing a facility or resource of that department within the Major Range and Test Facility Base. Directs the Under Secretary of Defense (Comptroller) to review the funding policies of each military department to ensure compliance with cost recovery requirements.

(Sec. 233) Earmarks specified RDT&E funds for the DOD Central Test and Evaluation Investment Program.

(Sec. 234) Directs the Secretary to implement a single financial management and accounting system for all DOD test and evaluation facilities, with specified features.

(Sec. 235) Requires the Under Secretary of Defense for Acquisition, Technology, and Logistics to report to Congress on capabilities of the DOD test and evaluation workforce, including a plan to ensure that such workforce is of sufficient size and expertise to timely and accurately identify issues of military suitability and effectiveness of DOD systems through appropriate testing.

(Sec. 236) Requires the Director of Operational Test and Evaluation to include in certain annual reports an assessment of the waivers and deviations from DOD system test and evaluation master plans and other requirements.

(Sec. 237) Requires a report from the Secretary to the defense and appropriations committees on the extent of implementation of recommendations of the Defense Science Board Task Force on Test and Evaluation Capabilities.

Subtitle E: Other Matters - Authorizes the Secretary to carry out a three-year pilot program to demonstrate improved efficiency in the performance of DOD RDT&E functions. Requires reports from the Secretary to Congress on such program and the revitalization pilot programs (previously authorized). Extends the revitalization pilot programs for an additional three years. Authorizes laboratories and test centers participating in any of the pilot programs to enter into cooperative agreements with private-sector entities and institutions of higher education for the performance of work. Authorizes the Secretary to appoint up to 30 individuals for excepted Federal service in scientific, engineering, and technology positions under the pilot programs.

(Sec. 242) Directs the Secretary to carry out a Technology Transition Initiative to facilitate the rapid transition of new technologies from science and technology programs of DOD into acquisition programs for the production of such technologies. Requires jointly funded projects among the military departments under the Initiative. Establishes a Technology Transition Council. Authorizes appropriations.

(Sec. 243) Directs the Secretary to carry out a three-year program of outreach to small businesses and non-traditional defense contractors to review and evaluate activities and technologies that have the potential for meeting the DOD mission of combating terrorism. Requires a review panel to evaluate program proposals.

(Sec. 244) Directs the Secretary to carry out a vehicle fuel cell technology development program in cooperation with the Secretary of Energy, the heads of appropriate Federal agencies, and industry. Earmarks specified RDT&E funds for the program.

(Sec. 245) Requires the Secretary to carry out a defense nanotechnology research and development program. Requires the Director of Defense Research and Engineering, during each of 2004 through 2007, to report to the defense and appropriations committees on such program.

(Sec. 246) Amends the National Defense Authorization Act for Fiscal Year 1995 to require the Secretary to contract with the National Research Council to assess the effectiveness of the Defense Experimental Program to Stimulate Competitive Research in achieving program objectives.

(Sec. 247) Extends through FY 2007 the authority of the Defense Advanced Research Projects Agency to award prizes for defense advanced technology development achievements. Requires a report from the Agency Director to the defense and appropriations committees on the Director's proposal for the administration of such program.

Title III: Operation and Maintenance - Subtitle A: Authorization of Appropriations - Authorizes appropriations for FY 2003 for operation and maintenance (O&M) for the armed forces and specified activities and agencies of DOD.

(Sec. 302) Authorizes appropriations for FY 2003 for: (1) working capital funds; (2) the Armed Forces Retirement Home; and (3) the Range Enhancement Initiative Fund for the purchase of restrictive easements.

(Sec. 305) Earmarks specified O&M funds for the Navy Pilot Human Resources Call Center, Cutler, Maine.

(Sec. 306) Authorizes the Secretary of the Army to facilitate commencement of development for the National Army Museum at Fort Belvoir, Virginia. Provides funding through O&M funds (with a corresponding offset).

(Sec. 307) Earmarks specified O&M funds for the disposal of obsolete vessels of the National Defense Reserve Fleet.

Subtitle B: Environmental Provisions - Authorizes the use of cross-fiscal year agreements under DOD cooperative agreements for environmental purposes.

(Sec. 312) Authorizes the Secretary or the Secretary of a military department to carry out an environmental restoration project determined necessary as a response under the current DOD requirements or the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. Prohibits any project construction, development, conversion, or extension from being considered military construction.

(Sec. 313) Directs the Secretary to establish goals for the increased DOD procurement of items that are environmentally preferable or made with recovered materials. Directs the Secretary to assess current training and education of DOD procurement officials and contractors, and to develop a tracking system to identify the extent to which DOD is procuring such items. Requires an initial report, and annual reports during 2004 through 2007, on progress made in achieving such goals.

(Sec. 314) Directs the Secretary of the Navy to continue activities for the clearance and removal of unexploded ordnance on Kaho'olawe Island, Hawaii, and related remediation activities.

Subtitle C: Defense Dependents' Education - Earmarks specified O&M funds for the continuation of a DOD program of financial assistance to local educational agencies that benefit dependents of military personnel and DOD civilian employees. Requires the Secretary to notify each eligible local educational agency of the availability of such assistance.

(Sec. 332) Earmarks specified O&M funds for DOD impact aid payments for children with severe disabilities as authorized under the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Spence Act).

(Sec. 333) Amends the Defense Dependents' Education Act of 1978 to authorize the Secretary to fund summer school programs on the same basis as programs offered during the regular school year.

(Sec. 334) Amends the National Defense Authorization Act for Fiscal Year 2002 to include within a required study by the Comptroller General (CG) whether the process for setting the compensation for teachers participating in the defense dependents' education program is efficient and cost-effective. Extends a related report requirement.

Subtitle D: Other Matters - Authorizes the use of specified humanitarian assistance funds provided in conjunction with military operations for the pay of reserve personnel of the Special Operations Command performing duty in connection with training and other activities related to the clearing of landmines for humanitarian purposes.

(Sec. 342) Provides for the calculation of the beginning of the five-year period for the Navy-Marine Corps Intranet contract.

(Sec. 343) Makes funds appropriated or otherwise available to a military department, defense agency, or combatant command for O&M available for the pay, allowances, and other costs charged to appropriations for a reserve component for the performance of intelligence or counterintelligence support.

(Sec. 344) Includes Navy Exchange Markets in authorized rebate agreements under the DOD special supplemental food program. Allows such agreements to last up to three years.

(Sec. 345) Authorizes the Secretary to make available logistics support and services in support of contractor performance in a DOD contract for the construction, modification, or maintenance of a weapon system. Limits the number of contracts for which such support and services may be provided to five, the total estimated costs of all such contracts to $100 million, and the duration of such contracts to five years. Requires the Secretary to prescribe regulations ensuring that such contracts are entered into only when in the best interests of the United States. Terminates such authority on September 30, 2007.

(Sec. 346) Amends the Spence Act to extend through FY 2004 the arsenal support program initiative (and related reporting requirements).

(Sec. 347) Extends through December 31, 2004, the authority of the Secretary to engage in commercial activities as security for intelligence collection activities abroad.

(Sec. 348) Directs the Secretary to establish policy and procedures, applicable to the military departments and defense agencies, regarding the installation and connection of telecom switches to the Defense Switch Network. Provides exceptions. Directs the Secretary to: (1) prepare and maintain an inventory of all such switches that are connected to such Network but have not been tested, validated, and certified by the Defense Information Systems Agency; and (2) identify and assess switch interoperability risks.

(Sec. 349) Directs the Secretary of the Army to conduct a preliminary engineering study and environmental analysis to evaluate the feasibility of establishing a connector between Richmond Highway (U.S. Route 1) and Telegraph Road, in order to provide an alternative to certain roads closed as a force protection measure. Expresses the sense of Congress that the study should consider as one alternative the extension of Old Mill Road between Richmond Highway and Telegraph Road.

(Sec. 350) Amends the Spence Act to extend through FY 2003 the defense employees work safety demonstration program.

(Sec. 351) Earmarks specified Navy O&M funds (with offsetting reductions) for: (1) Navy requirements for providing lift support for mine warfare ships and other vessels; and (2) support of Navy data conversion activities.

Title IV: Military Personnel Authorizations - Subtitle A: Active Forces - Sets forth authorized end strengths for active-duty forces as of the end of FY 2003.

(Sec. 402) Authorizes an increase in active-duty end strength and grade limitations to account for reserve personnel on active duty in support of a contingency operation.

(Sec. 403) Increases the: (1) number of Marine Corps officers authorized to serve on active duty in grades above major general; and (2) authorized end strength for Marine Corps officers on active duty in the grade of colonel.

Subtitle B: Reserve Forces - Sets forth the authorized end strengths as of the end of FY 2003 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 2003 for Army and Air Force dual status military technicians.

(Sec. 414) Places specified FY 2003 limitations on the number of non-dual status technicians authorized to be employed by the Army and Air Force.

Subtitle C: Authorization of Appropriations - Authorizes appropriations for FY 2003 for military personnel.

Title V: Military Personnel Policy - Subtitle A: Officer Personnel Policy - Extends from September 30, 2003, to December 31, 2003, certain requirements and exclusions applicable to the service of general and flag officers serving on active duty in joint duty assignments.

(Sec. 502) Extends until December 31, 2003, the authority to waive the requirement of significant joint duty experience prior to appointment as a chief of a reserve component or a director of the National Guard.

(Sec. 503) Repeals a limitation on the authority of the Secretary to grant officers in grades below brigadier general and rear admiral (lower half) a waiver of a required sequence of joint professional military education and joint duty service.

(Sec. 504) Amends the National Defense Authorization Act for Fiscal Year 2000 to extend through FY 2008 the authority for the recall of retired aviators.

(Sec. 505) Increases the officer grade for persons serving as the head of the nurse corps of the various military departments.

(Sec. 506) Authorizes the Secretaries of the military departments to reduce to not less than two years the period of service (currently, three years) required before retirement in specified officer grades in the case of retirements occurring between September 1, 2002, and December 31, 2004. Requires the Secretary to notify the defense committees of the exercise of any such authority.

Subtitle B: Reserve Component Personnel Policy - Extends from 270 days until one year after enlistment in the reserves the authorized delay prior to commencement of an initial period of active duty for training.

(Sec. 512) Provides that, in the case of a reserve officer required to be retired or separated, if the Secretary concerned determines that the evaluation of the physical condition of the officer and determination of the officer's entitlement to retirement or separation for physical disability require hospitalization or medical observation that cannot be completed before the officer's retirement or separation date, then such Secretary may defer such retirement or separation until 30 days after the completion of the hospitalization or medical observation.

(Sec. 513) Repeals provisions which prohibit the use of Air Force Reserve AGR personnel (recruiters, instructors, and trainers) for Air Force base security functions.

Subtitle C: Education and Training - Increases from 4,000 to 4,400 the authorized end strengths for each of the military service academies.

Subtitle D: Decorations, Awards, and Commendations - Waives time limitations with respect to the award to specified individuals of the Army Distinguished Service Cross or Navy Distinguished Flying Cross.

(Sec. 532) Directs the Secretary concerned to issue a campaign medal, to be known as the Korea Defense Service Medal, to each member who served in the Republic of Korea or adjacent waters during the period beginning on July 28, 1954, and ending on a period determined by the Secretary of Defense and meets appropriate service requirements.

Subtitle E: National Call to Service - Authorizes the Secretary to carry out a program to facilitate national service under which a National Call to Service participant is entitled to an enlistment incentive. Requires participants to: (1) first serve on active duty in the armed forces for 15 months in a military occupational specialty designated by the Secretary; and (2) upon completion of such service and without a service break, serve a minimum period of obligated service on active duty, in the Selected Reserve or Individual Ready Reserve, the Peace Corps, Americorps, or other national service program, or any combination thereof. Provides as incentives: (1) payment of a bonus of $5,000; (2) payment of qualified student loans of up to $18,000; or (3) a specified allowance for educational assistance. Requires the participant to elect one of the incentives. Prohibits participants from educational assistance eligibility under the Montgomery GI Bill. Requires pro rata repayment of incentive amounts for unsatisfied service. Provides program funding from military pay, allowance, and expense funds.

(Sec. 542) Requires each institution receiving assistance under the Higher Education Act of 1965 to provide: (1) to military recruiters the same access to students as is provided to prospective employers; and (2) access to student name, address, and telephone listings of such students. Prohibits an institution from releasing such access information without the prior consent of the student or parent if such student or parent has submitted a request that such information with respect to that student not be released. Requires the Secretary of Education to notify institutions of such requirements.

Subtitle F: Other Matters - Changes from annual to biennial a survey requirement of the Secretary for identifying racial, ethnic, and gender issues and discrimination among military personnel serving on active duty and the extent of any activity that may be viewed as 'hate group' activity. Requires a separate biennial survey on: (1) racial and ethnic issues; and (2) gender issues.

(Sec. 552) Allows the Secretary concerned to require an officer to take leave pending the completion of an action by a board of inquiry to determine whether the officer should be removed from active duty. Provides that when the leave such officer takes is charged as excess leave, and upon a subsequent determination to not remove such officer from active duty, the officer shall be paid for the period charged as excess leave. Accrues all pay and allowances such officer would have been entitled to during such leave period, reduced by any other Federal benefits received.

(Sec. 553) Authorizes both military and civilian participants in funeral honors details to receive, in lieu of transportation expenses, a daily stipend designed to defray transportation and other costs incurred in connection with such participation.

(Sec. 554) Prohibits a superior officer from: (1) requiring a female member of the armed forces to wear the abaya garment, or any part thereof, while in Saudi Arabia pursuant to a permanent change of station or orders for temporary duty; or (2) taking any adverse action against a member for choosing not to wear such garment during such service. Requires the Secretary to inform such personnel of such prohibition, both orally and in writing, immediately upon their arrival. Prohibits any funds made available to DOD from being used to purchase abayas for such personnel or for contractor personnel accompanying such forces.

Title VI: Compensation and Other Personnel Benefits - Subtitle A: Pay and Allowances - Waives any FY 2003 pay increases tied to increases in the General Schedule of Compensation for Government employees. Increases, effective January 1, 2003, the rates of basic pay for military personnel.

(Sec. 602) Authorizes the Secretary, and the Secretary of Transportation with respect to the Coast Guard when not operating as a service in the Navy, to pay double the normal rate of basic allowance for subsistence to enlisted personnel occupying single Government quarters which have no adequate food storage, preparation, or messing facility.

(Sec. 604) Authorizes the Secretary, for contracts entered into until December 31, 2007, to pay higher rates of partial basic allowance for housing for certain members assigned to housing under DOD alternative authority for the acquisition and improvement of military housing.

Subtitle B: Bonuses and Special and Incentive Pays - Extends through 2003 specified authorities currently scheduled to expire at the end of 2002 with respect to certain special pay and bonus programs within the regular and reserve armed forces.

(Sec. 615) Increases to: (1) $25,000 the maximum amount payable as a multiyear retention bonus for military medical officers; and (2) $50,000 for any 12-month period after FY 2002 the maximum amount payable as incentive special pay for such officers.

(Sec. 617) Authorizes the Secretary concerned to pay monthly assignment incentive pay to a member for any period that the member performs service in an assignment designated by that Secretary. Terminates such authority three years after the enactment of this Act. Requires an annual report during such period from the Secretary to the defense committees on the exercise of such authority.

(Sec. 618) Increases maximum amounts (depending on the period of reenlistment) for the prior service enlistment bonus.

Subtitle C: Travel and Transportation Allowances - Revises the date to which travel may be deferred in connection with authorized leave between consecutive overseas duty tours.

(Sec. 632) Authorizes two (currently one) privately owned vehicles to be transported for a member or dependent between a residence and duty station (and vice versa), but allows payment for late delivery only if both vehicles arrive after their delivery date.

(Sec. 633) Authorizes an alternative destination (other than home and back) allowance for enlisted personnel extending tours of duty at designated overseas locations.

(Sec. 634) Authorizes vehicle storage, in lieu of transportation, in U.S. states, territories, and possessions outside the continental United States when such areas preclude vehicle transportation to a new station.

Subtitle D: Retirement and Survivor Benefit Matters - Requires a member or former member who is entitled to retired pay and veterans' disability compensation to be paid both concurrently, without deduction. Provides a special rule with regard to retirement or separation due to physical disability. Makes such requirement inapplicable to those with less than 20 years of retirement-creditable service. Prohibits retroactive benefits.

(Sec. 642) Increases by ten percent the military retired pay for enlisted personnel credited with extraordinary heroism in the line of duty.

Subtitle E: Other Matters - Authorizes the Secretary to provide, for families of military personnel on active duty, any assistance appropriate to ensure that children of such personnel obtain needed child care, education, and other youth services, with the primary focus of such assistance directed at children of personnel assigned to active duty in connection with a contingency operation.

(Sec. 652) Extends from ten to 14 years after first becoming entitled the time limit for the use of Montgomery GI Bill educational assistance by members of the Selected Reserve.

(Sec. 653) States that a person's obligation to repay the amount of educational assistance received as a member of the Selected Reserve due to the failure to perform duty obligations, including training, shall be considered a debt owed to the United States which is not discharged in a bankruptcy which occurs less than five years after such person's entitlement or other service.

(Sec. 654) Repeals a provision of the National Defense Authorization Act for Fiscal Year 1993 which allows faculty members at certain DOD schools to accept honoraria for scholarly and academic activities.

(Sec. 655) Makes the monthly rate of educational assistance under the Montgomery GI Bill for dependents to whom assistance entitlement is transferred by members of the armed forces with critical skills the same rate as would have been provided to such members.

(Sec. 656) Authorizes the Secretary concerned to pay the interest and any special allowances that accrue on one or more student loans of a member who is: (1) serving on active duty in fulfillment of his or her first enlistment in the armed forces or who, in the case of an officer, has not completed more than three years on active duty; (2) is the debtor on one or more unpaid loans under the Higher Education Act of 1965; and (3) is not in loan default. Provides a maximum period of 36 months for such payments. Requires the Secretary to transfer to the Secretary of Education funds sufficient for such payments. Amends the Higher Education Act of 1965 to allow eligible loan debtors under such Act, including those receiving Perkins loans, to receive such payments and to allow the Secretary of Education to pay such interest and allowances for up to 36 months.

(Sec. 657) Amends the Spence Act to require the back pay for members of the Navy and Marine Corps selected for promotion while interned as prisoners of war during World War II to be increased to take into account changes in the Consumer Price Index during such period.

Title VII: Health Care - Makes surviving dependents eligible for TRICARE (a DOD managed health care plan) dental benefits when the dependent is not enrolled in such plan by reason of discontinuance of a prior enrollment due to its required termination.

(Sec. 702) States that pre-admission authorization for inpatient mental health services under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) is not required either for an emergency or any case in which any benefits are payable for such services under title XVIII (Medicare) of the Social Security Act. Requires such advance authorization when such benefits are no longer payable under Medicare.

(Sec. 703) Continues TRICARE eligibility for dependents of members residing at remote locations when the dependent resided with the member at one location, but is not authorized to accompany the member to a new location.

(Sec. 704) Approves to provide CHAMPUS medical care a physician or other health care practitioner eligible to receive reimbursement for services provided under Medicare.

(Sec. 705) Directs the Secretary to limit information requirements in support of claims for payment of TRICARE health care items and services to the same requirements for claims for reimbursement for such services under Medicare.

(Sec. 706) Changes from DOD health care programs to pay of members the source of funds for payments into the Department of Defense Medicare-Eligible Retiree Health Care Fund. Requires all military departments to participate in payments to the Fund.

(Sec. 708) Extends through 2003 the authority of DOD to enter into personal services contracts for the performance of health care services for members at locations other than military medical facilities.

(Sec. 709) Repeals a provision prohibiting DOD facilities from being used to perform an abortion other than where the life of the mother is endangered or when the pregnancy is the result of rape or incest.

(Sec. 710) Prohibits a covered beneficiary enrolled in the DOD TRICARE Program from being denied such care on the ground that the beneficiary is receiving ongoing health care through the Department of Veterans Affairs if such Department cannot provide the beneficiary with the particular care sought within the period applicable under the TRICARE Program policy.

Title VIII: Acquisition Policy, Acquisition Management, and Related Matters - Subtitle A: Major Defense Acquisition Programs - Authorizes the head of a defense agency acquiring end items, using DOD funds, to acquire a higher quantity of the end item than specified if such agency head determines that: (1) the agency has an established requirement for such item expected to remain substantially unchanged throughout the period of acquisition; (2) it is possible to acquire the higher quantity without additional funding; (3) the amount of funds used for the higher quantity acquisition will not exceed the total amount provided for such acquisition; and (4) the amount provided is sufficient to ensure that each unit is fully funded as a complete end item. Requires the agency head to notify Congress within 30 days after such determination.

(Sec. 802) Directs the Secretary to report to the defense and appropriations committees on the approach planned to apply current Federal acquisition requirements to the incremental acquisition of major systems.

(Sec. 803) Authorizes the Secretary to conduct a pilot program for the spiral development of major systems and to designate research and development programs of the military departments and defense agencies for participation in the program. Requires: (1) secretarial approval of participating programs; and (2) submission of approved programs to the defense and appropriations committees. Directs the Secretary to: (1) issue specified guidance for pilot program implementation; and (2) report quarterly to Congress on each program participant. Provides for the termination of program participation, and terminates the pilot program three years after the enactment of this Act (while allowing activated programs to continue).

(Sec. 804) Directs the Secretary of each military department, and the head of each defense agency that manages a major defense acquisition program with a substantial software component, to establish a program to improve its software acquisition processes. Requires the Assistant Secretary of Defense for Command, Control, Communications, and Intelligence to provide program guidance.

(Sec. 805) Amends the National Defense Authorization Act for Fiscal Year 2002 to require the Secretary to identify, in certain reports concerning major defense acquisition programs, each case in which an authoritative decision has been made within DOD not to conduct an independent technology readiness assessment for a critical technology on a major defense acquisition program, and the reasons therefor.

(Sec. 806) Authorizes the Secretary to waive requirements for survivability and lethality testing of major defense systems and munitions programs if the Secretary: (1) determines that live-fire testing of such system or program would be unreasonably expensive and impractical; and (2) submits a certification of such determination to Congress before specified milestone approval of such system or program.

Subtitle B: Procurement Policy Improvements - Amends the National Defense Authorization Act for Fiscal Year 2002 with regard to specified savings goals for DOD under contracts for the procurement of services to outline specified ways to achieve such goals, including: (1) the gradual increase of contracts made on a competitive basis involving offers from two or more qualified contractors; and (2) the increased use of performance-based purchasing. Extends and revises related reporting requirements.

(Sec. 812) Directs the Secretary to issue guidance on the circumstances under which it is appropriate to grant exceptions to DOD cost or pricing data certification requirements and waivers of cost accounting standards, including a determination that the property or services cannot be obtained without granting such exception or waiver. Requires a semiannual report to the defense and appropriations committees on exceptions and waivers granted. Requires advance notification (ten days) to such committees on exceptions or waivers made in the case of contracts, subcontracts, or modifications expected to have a price of $75 million or more.

(Sec. 813) Amends the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 to extend through 2006 a required report on defense commercial pricing management improvement.

(Sec. 814) Directs the Secretary to ensure that: (1) appropriate internal controls for the use of purchase cards issued by the Federal Government to DOD personnel are in place throughout DOD; and (2) all DOD purchase card holders are aware of such controls. Requires the CG to review control actions taken and to report review results to the defense and appropriations committees.

(Sec. 815) Directs the Secretary to carry out, and report to Congress on, an assessment of the total fees paid by DOD for the acquisition of property and services under contracts between other Federal departments and agencies in FY 2000 through 2002.

(Sec. 816) Amends the National Defense Authorization Act for Fiscal Year 1994 to authorize the Secretary to carry out a pilot program for follow-on contracting for the production of items or processes that are developed by non-traditional defense contractors under prototype projects. Terminates such authority on September 30, 2005.

(Sec. 817) Authorizes the Secretary to waive the application of any DOD domestic source or content requirement for the procurement of items grown, reprocessed, reused, produced, or manufactured in a foreign country which has a reciprocal defense procurement agreement with the United States. Allows the Secretary to waive such requirement when: (1) its application would impede the reciprocal procurement of such items; and (2) such foreign country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country. Provides exceptions to such waiver authority.

Subtitle C: Other Matters - Amends the National Defense Authorization Act for Fiscal Year 1996 to extend until November 18, 2007, the applicability of certain personnel demonstration project exceptions to an acquisition workforce demonstration project.

(Sec. 822) Prohibits the defense acquisition and support workforce from being reduced during FY 2003 through 2005 below the level as of September 30, 2002, as determined on the basis of full-time equivalent positions. Authorizes a waiver of such prohibition by the Secretary after certification to Congress that a reduced workforce will be able to efficiently and effectively perform required workloads.

(Sec. 823) Extends through FY 2006 a contract goal for small disadvantaged businesses and certain institutions of higher education.

(Sec. 824) Amends the National Defense Authorization Act for Fiscal Year 1991 to include within its mentor-protege program: (1) a qualified HUBZone (heavily underutilized business zone) small business; or (2) a small business owned and controlled by service-disabled veterans.

(Sec. 825) Repeals specified provisions of the National Defense Authorization Act for Fiscal Year 1996 calling for CG reviews of: (1) administration of the Defense Modernization Account; (2) solutions-based contracting for information technology acquisition; and (3) the procurement of information technology products and services through multiple award schedules.

(Sec. 826) Authorizes the Secretary to enter into a contract for up to ten years for the purchase of dinitrogen tetroxide, hydrazine, and hydrazine-related products for the support of a U.S. national security or space program. Allows such contract to be extended for up to ten additional years.

(Sec. 827) Authorizes the use of multiyear procurement authority for environmental remediation services for military installations.

(Sec. 828) Increases from $300,000 to $600,000 the maximum authorized DOD assistance for tribal organizations or entities carrying out procurement technical assistance programs under cooperative agreements in two or more service areas.

(Sec. 829) Amends the National Defense Authorization Act for Fiscal Year 1991 to authorize the Secretary to permit a business entity operating on a non-profit basis to self-certify its eligibility for treatment as a qualified organization employing the severely disabled, for purposes of eligibility under the mentor-protege pilot program.

(Sec. 830) Directs the Secretary of the Army to report to the defense and small business committees on the effects of the establishment of an Army Contracting Agency on small business participation in Army procurements during the first year of such Agency's operation.

Title IX: Department of Defense Organization and Management - Revises the due date for submission of quadrennial defense review reports.

(Sec. 902) Increases from five to six the authorized number of Marine Corps Deputy Commandants.

(Sec. 903) Directs the Secretary concerned (currently, only the Secretary of the Navy with respect to the Navy) to provide base operating support for Fisher houses associated with health care facilities of that department.

(Sec. 904) Directs the Secretary to designate a DOD officer or employee as the senior official responsible for the prevention and mitigation of corrosion of the military equipment and infrastructure of DOD. Outlines required duties. Requires an interim report from the Secretary to Congress on actions taken. Directs the Secretary to submit to Congress a long-term strategy to reduce corrosion and its effects on DOD military equipment and infrastructure. Requires the CG to monitor the strategy implemented and provide results to Congress.

(Sec. 905) Authorizes the Secretary to accept foreign gifts and donations on behalf of the Western Hemisphere Institute for Security Cooperation. Requires the Secretary to notify Congress if the total amount of such gifts and donations exceeds $1 million in any fiscal year.

(Sec. 906) Establishes a Veterinary Corps of the Army, with a Chief and Assistant Chief.

(Sec. 907) Establishes the position of Under Secretary of Defense for Intelligence.

Title X: General Provisions - Subtitle A: Financial Matters - 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) Reallocates $690 million from ballistic missile RDT&E to naval shipbuilding and conversion. Allocates such funds among specified naval advance procurement programs.

(Sec. 1003) Authorizes $10 billion for FY 2003 for continued operations in the war on terrorism in accordance with the Authorization for Use of Military Force. Provides authorized activities. Makes such authorization contingent on a budget request stating that such amount is essential for the war on terrorism and specifying a proposed allocation and plan for the use of such funds.

(Sec. 1004) Adjusts amounts authorized to be appropriated in the National Defense Authorization Act for Fiscal Year 2002 by the amount by which appropriations pursuant to such authorization were increased or decreased in any law making supplemental appropriations for FY 2002 that is enacted during the 107th Congress, second session.

(Sec. 1005) 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 in titles II and III of this Act.

(Sec. 1006) Directs the Secretary to develop a proposed financial management enterprise architecture for all DOD budgetary, accounting, finance, and data feeder systems, together with a transition plan for implementing such architecture. Provides expenditure limitations during the development period with respect to defense financial system improvement funds. Requires the CG, during 2003 through 2005, to report to the defense and appropriations committees on defense financial management system improvements.

(Sec. 1007) Authorizes the Secretary to designate as a departmental accountable official any DOD employee or member of the armed forces who: (1) has a duty to provide a DOD certifying official with information directly relied upon in the certification of vouchers for payment; and (2) is not otherwise accountable for payments made on the basis of the vouchers. Applies monetary liability for illegal, improper, or incorrect voucher payments made on the basis of information provided by a departmental accountable official, but allows the Secretary to relieve such person from liability when the payment was not a result of fraud or negligence.

(Sec. 1008) Authorizes any designated officer or employee to act upon reports of surveys and vouchers pertaining to the loss, spoilage, unserviceability, unsuitability, or destruction of, or damage to, property of the United States under DOD control.

Makes members of the Navy or Marine Corps (currently, only Army and Air Force) responsible, by way of pay deductions, for damage or repair of military arms and equipment.

(Sec. 1009) Allows the Secretary to require that any part of the travel or transportation allowances of a DOD employee or member of the armed forces be distributed directly to the issuer of a defense travel card if such amount is a reimbursement for expenses of official travel charged by such employee or member. Authorizes pay offsets for delinquent travel card charges, with an offset limit of 15 percent of the disposable pay of such employee or member.

(Sec. 1010) Provides for: (1) the clearance of certain DOD financial transactions before March 1, 2001, under specified Treasury suspense accounts; and (2) the cancellation of any discrepancies between checks drawn on the Treasury and issued by or on behalf of DOD before October 31, 1998, and later paid, for which no DOD appropriation can be associated. Requires DOD, before such check discrepancy cancellations can be made, to attempt to discover which appropriation should be charged and to determine that any further attempts are not in the best interests of the United States. Terminates all such authority two years after the enactment of this Act.

(Sec. 1011) Authorizes appropriations (with an offsetting reduction) for FY 2003 for whichever of the following the President determines to be necessary to U.S. national security: (1) RDT&E for DOD ballistic missile defense programs; or (2) DOD activities for combating terrorism at home and abroad.

(Sec. 1012) Increases (with corresponding offsets) amounts authorized for: (1) Army procurement for certain helicopter improvements; and (2) DOD military personnel for up to 26 additional personnel for the Oregon Army National Guard.

Subtitle B: Naval Vessels and Shipyards - Requires the Secretary of the Navy, if the total number of Navy ships comprising the force of surface combatants is less than 116, to report to the defense committees on the size of such force. Prohibits force reduction until 90 days after notification of such committees. States that when such force is below 116, such Secretary shall maintain on the Naval Vessel Register a sufficient number of such ships to enable the Navy to regain a total force of 116 within 120 days after the President decides to increase such force.

(Sec. 1022) Directs the Secretary of the Navy to submit to Congress a plan for fielding, on an expedited schedule, the 155-millimeter gun on one surface combatant ship on active Navy service.

(Sec. 1023) Requires the Under Secretary of Defense for Acquisition, Technology, and Logistics to report to the defense committees on DOD initiatives to increase the number of operational days of Navy ships without increasing either the total number of ships or the routine lengths of deployment.

(Sec. 1024) Directs the Secretary to include in annual defense budget materials a plan for the construction of Navy combatant and support ships that either supports either the national security strategy or the ship force structure called for in the report of the latest Quadrennial Defense Review.

Subtitle C: Reporting Requirements - Amends Federal armed forces provisions, the National Defense Authorization Act for Fiscal Year 1995, and the Ballistic Missile Defense Act of 1995 to repeal or modify various DOD report requirements. Increases from $100,000 to $10 million the total annual contract award limit for foreign-controlled defense contractors before database information on such contractors is required to be maintained by the Secretaries of Defense and Energy.

(Sec. 1032) Requires an annual joint report from the above Secretaries and the Director of Central Intelligence to the defense and appropriations committees on R&D activities undertaken to develop a weapon to defeat hardened and deeply buried targets.

(Sec. 1033) Amends the National Defense Authorization Act for Fiscal Year 1995 to revise the due date of an annual report on counterproliferation activities and programs.

(Sec. 1034) Directs the Secretary, every four years and two years after each required quadrennial defense review, to: (1) conduct a comprehensive examination of the quality of life of military personnel; and (2) report examination results to the defense committees.

(Sec. 1035) Directs the Secretary to report to Congress: (1) every 90 days on U.S. efforts to determine the whereabouts and status of Captain Michael Scott Speicher, U.S. Navy; and (2) on actions being undertaken to ensure the adequacy of fire fighting staffs at military installations.

(Sec. 1037) Directs the Secretary of the Army to report to the defense and appropriations committees the results of a study on the advisability of designating a specified portion of Louisiana Highway 28 as a defense access road.

(Sec. 1038) Requires the Director of the Central Measurement and Signatures Intelligence Office to submit to Congress a plan for a five-year research program to provide for the incorporation of results of basic research on sensors into the measurement and signatures intelligence systems fielded by the Federal Government.

(Sec. 1039) Requires a report from the Secretary to the defense committees on volunteer services of members of reserve components in emergency response to the terrorist attacks of September 11, 2001.

(Sec. 1040) Requires biannual reports from the President to Congress identifying foreign persons making a material contribution to the development by a country of: (1) nuclear, biological, or chemical weapons; or (2) ballistic or cruise missile systems.

Subtitle D: Homeland Defense - Authorizes a State governor, upon request by the head of a Federal law enforcement agency and with the concurrence of the Secretary, to order any State National Guard personnel to perform full-time duty in carrying out homeland security activities. Limits such duty to 179 days, with an extension of 90 days to meet extraordinary circumstances. Provides safeguards to ensure that such service does not degrade the training and readiness of such personnel. Requires the Secretary to provide funds to State governors for such personnel use. Directs the Secretary and each governor to enter into a memorandum of agreement with the head of each Federal law enforcement agency to which such personnel are to provide such support. Exempts personnel performing such activities from active-duty end strength limits. Requires an annual report from the Secretary to Congress regarding any assistance provided and activities carried out.

(Sec. 1042) Allows all assigned full-time reservists to perform duties relating to defense against weapons of mass destruction. (Currently, only reservists assigned to a specified Office or element team may be so used.)

(Sec. 1043) Redefines "weapon of mass destruction," for purposes of the authority to use reservists to defend against them, to include any large conventional explosive designed to produce catastrophic loss of life or property.

(Sec. 1044) Requires a report from the Secretary to the defense and appropriations committees on DOD actions necessary for homeland defense. Requires the report to contain: (1) a homeland defense campaign plan; (2) DOD homeland intelligence capabilities; (3) a national threat and vulnerability assessment; (4) homeland defense training and exercises; and (5) an evaluation of the need for a bioterrorism initiative and DOD regional chemical biological incident response teams. Requires the homeland defense campaign plan to contain DOD duties and capabilities in response to attack on critical infrastructure.

(Sec. 1045) Directs the Secretary to develop and submit to the defense committees a comprehensive plan for improving the preparedness of military installations for preventing and responding to incidents involving the use or threatened use of weapons of mass destruction. Requires the CG to review the plan and submit review results to such committees. Requires such plan to be included in the defense budget submissions for 2004 through 2006.

Subtitle E: Other Matters - Continues Federal information security requirements with respect to DOD, notwithstanding the current October 30, 2002, termination of such requirements. Requires the Secretary, after such termination date, to perform such information security duties currently performed by the Director of the Office of Management and Budget.

(Sec. 1062) Authorizes the use of voluntary proctors for the administration to secondary school students of the Armed Services Vocational Aptitude Battery (test).

(Sec. 1063) Amends the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century to extend through FY 2006 the authority of the Secretary to sell aircraft and aircraft parts for use in responding to oil spills.

(Sec. 1064) Amends the Elementary and Secondary Education Act of 1965 to make eligible for impact aid assistance, for any fiscal year after 2002, a heavily impacted local educational agency that receives a basic support payment for the prior fiscal year, but is ineligible in the current fiscal year by reason of the conversion of military housing units to private housing.

(Sec. 1065) Directs the Secretary to submit to Congress and the Secretary of Veterans Affairs a comprehensive plan for the review, declassification, and submittal to the Department of Veterans Affairs of all medical records and information of DOD on the Shipboard Hazard and Defense project of the Navy that are relevant to the provision of veterans' benefits to military personnel who participated in that project. Requires implementation reports.

(Sec. 1066) Authorizes the Secretary of the Navy to convey to the Women Airforce Service Pilots Museum in Quartzsite, Arizona, all U.S. rights and interest to a DF-9E Panther aircraft.

(Sec. 1067) Authorizes the Secretary to pay a $200,000 reward to a person for providing U.S. personnel with information on nonlethal assistance that is beneficial to: (1) a U.S. military operation conducted outside the United States against international terrorism; or (2) force protection of the armed forces. Requires the Secretary to coordinate with the Secretary of State regarding payment of a award in excess of $100,000. Requires an annual report from the Secretary to the defense and appropriations committees on the administration of such awards.

(Sec. 1068) Authorizes the Secretary of a military department to provide, without charge, space and services to a military welfare society.

(Sec. 1069) Expresses appreciation for, and requests the President to issue a proclamation recognizing, the outstanding contribution that all military chaplains make to members of the armed forces and their families.

(Sec. 1070) Grants a Federal charter to the Korean War Veterans Association, Incorporated (a nonprofit corporation incorporated under the laws of New York).

Title XI: Department of Defense Civilian Personnel Policy - Extends through FY 2006: (1) the authority for the lump-sum payment of severance pay to DOD civilian employees; (2) the authority for the payment of voluntary separation incentive pay; and (3) the cost-sharing authority for continued Federal Employees' Health Benefits Program coverage of certain persons after separation from employment due to a reduction in force.

(Sec. 1104) Makes employees paid from nonappropriated funds eligible to participate in the Federal Employees Long-Term Care Insurance Program.

(Sec. 1105) Amends the Thurmond Act to increase from four to five years the maximum appointment period for scientific and technical personnel under an experimental program to recruit personnel for research and development projects of the Defense Advanced Research Projects Agency.

(Sec. 1106) Authorizes the Secretary to prescribe regulations that require a person employed in a professional accounting position within DOD to be a certified public accountant, and that apply such requirement to all or selected positions, as determined by the Secretary. Authorizes requirement waivers and exemptions.

(Sec. 1107) Amends the Defense Department Overseas Teachers Pay and Personnel Practices Act to provide housing benefits of such Act for teachers assigned to Guantanamo Bay Naval Station, Cuba, and unaccompanied by a dependent.

Title XII: Matters Relating to Other Nations - Subtitle A: Cooperative Threat Reduction With States of the Former Soviet Union - Specifies the cooperative threat reduction (CTR) programs to be funded through O&M funds provided under this Act. Makes funds appropriated for such purpose 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 such purposes. Provides limited authority to vary allocated amounts in the national interest, after congressional notification.

(Sec. 1203) Authorizes the Secretary to obligate and expend FY 2003 or earlier CTR funds for proliferation threat reduction projects and activities outside the states of the former Soviet Union if the Secretary determines that such projects and activities will: (1) assist the United States in the resolution of critical emerging proliferation threats; or (2) permit the United States to take advantage of opportunities to achieve long-standing U.S. nonproliferation goals. Limits such amount to $50 million per fiscal year. Requires amounts so used to be listed separately in the defense budget submitted for the next fiscal year. Directs the Secretary, before so obligating any such funds, to wait 30 days after notifying the defense and appropriations committees of the amount and purpose. Allows an exception to such notification if the Secretary determines that a critical emerging proliferation threat warrants immediate obligation and fund expenditure (in such case requiring notification within 72 hours thereafter). Requires the Secretary, if funds are so obligated and expended for two fiscal years, to report to Congress on the advisability of establishing one or more new CTR programs to account for such project or activity.

(Sec. 1204) Amends the Cooperative Threat Reduction Act of 1993 to authorize the President to waive certain assistance limits under programs to facilitate CTR and nonproliferation if the President certifies to the Speaker of the House of Representatives and President pro tempore of the Senate that such waiver is important to the national security interest. Amends the FREEDOM Support Act to provide a similar national security waiver for the President in the case of funds used under such Act for an independent state of the former Soviet Union not otherwise eligible for such funds.

(Sec. 1205) Expresses the sense of the Senate that: (1) one of the most likely nuclear weapon attack scenarios against the United States would involve detonation of a stolen Russian tactical nuclear warhead smuggled into the country; (2) it is a top U.S. national security priority to accelerate efforts to account for, secure, and reduce Russia's stockpile of such warheads and associated fissile material; and (3) the imminent threat warrants a special nonproliferation initiative. Directs the President to report to Congress on efforts to reduce the particular threats associated with Russia's tactical nuclear arsenal and the outlines of a special initiative for reducing the threat from Russia's tactical nuclear stockpile.

Subtitle B: Other Matters - Authorizes the Secretary to provide administrative services and support (including travel, subsistence, and related expenses) for the performance of duties by any liaison officer of another nation involved in a coalition while such officer is assigned temporarily to the headquarters of a combatant command, component command, or subordinate operational command of the United States in connection with the planning for or conduct of a coalition operation.

(Sec. 1212) Authorizes the use of Warsaw Initiative funds for travel expenses of defense personnel of a country participating in the NATO Partnership for Peace program.

(Sec. 1213) Limits to $15 million during FY 2003 the U.S. support of United Nations-sponsored efforts to inspect and monitor Iraqi weapons activities. Extends through FY 2003 the authority to provide such support.

(Sec. 1214) Authorizes the Secretary to conduct, on a cooperative basis with countries located in the Arctic and Western Pacific regions, a program of environmental activities between DOD elements and military departments or agencies of participating countries, to be known as the Arctic and Western Pacific Environmental Cooperation Program. Limits funding for projects other than radiological projects. Requires an annual report from the Secretary to Congress.

(Sec. 1215) Authorizes the Secretary to expand the DOD program of HIV/AIDS prevention educational activities undertaken in connection with the conduct of U.S. military training, exercises, and humanitarian assistance in sub-Saharan African countries. Provides funding.

(Sec. 1216) Requires the Office of Science and Technology Cooperation of the Department of State to monitor the implementation of the 1979 United States-China Agreement on Cooperation in Science and Technology and its protocols and to keep a systematic account of the protocols thereto. Requires the Secretary of State to ensure that all Agreement activities comply with applicable laws and regulations concerning the transfer of military sensitive and dual-use technologies. Requires biennial implementation reports from such Secretary to Congress.

Division B: Military Construction Authorization - Military Construction Authorization Act for Fiscal Year 2003 - Title XXI(sic): Army - 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 2002 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) Amends certain prior military construction authorization Acts to increase the amounts authorized for chemical demilitarization projects at: (1) Forts Carson and Jackson in Colorado; (2) the Blue Grass Army Depot, Kentucky; (3) the Newport Army Depot, Indiana; and (4) the Pueblo Chemical Activity, Colorado.

(Sec. 2109) Replaces Camp Page, Korea, with Camp Stanley, Korea, as an authorized construction project under the Military Construction Authorization Act for Fiscal Year 2001.

(Sec. 2110) Increases (with a corresponding offset) the amount authorized for Army military construction planning and design for an anechoic chamber at White Sands Missile Range, New Mexico.

Title XXI: Navy - Provides, with respect to the Navy, authorizations paralleling those provided for the Army under the previous title.

(Sec. 2205) Amends the Military Construction Authorization Act for Fiscal Year 2002 to: (1) increase the amount authorized for a construction project at the Naval Station, Norfolk, Virginia; and (2) revise the number of certain military housing units at Quantico, Virginia.

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

(Sec. 2305) Authorizes the Secretary of the Air Force to carry out a project: (1) to provide a public road and associated improvements to replace a public road adjacent to Aviano Air Base, Italy, that has been closed for force protection purposes; and (2) for construction of a new air traffic control facility at Dover Air Force Base, Delaware. Earmarks funds authorized under this title for such project (with an offsetting reduction).

(Sec. 2307) Makes specified funds authorized under this title available (with offsetting reductions) for a military construction project for consolidation of the materials computational research facility at Wright-Patterson Air Force Base, Ohio.

Title XXIV: Defense Agencies - 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 certain energy conservation projects. Authorizes appropriations to DOD for fiscal years after 2002 for military construction, land acquisition, and military family housing functions of DOD. Limits the total cost of construction projects authorized by this title.

Title XXV: North Atlantic Treaty Organization Security Investment Program - Authorizes the Secretary to make contributions for the North Atlantic Treaty Organization (NATO) Security Investment Program and authorizes appropriations for fiscal years after 2002 for such Program.

Title XXVI: Guard and Reserve Forces Facilities - Authorizes appropriations for fiscal years after 2002 for acquisition, architectural and engineering services, and construction of facilities.

(Sec. 2602) Increases (with offsetting reductions) the amount authorized for the: (1) Army National Guard for a military construction project for a Reserve Center in Lane County, Oregon; and (2) Air National Guard for construction of a Composite Support Facility for the 183rd Fighter Wing of the Illinois Air National Guard.

Title XXVII: Expiration and Extension of Authorizations - Terminates all authorizations contained in Titles XXI through XXVI of this Act on October 1, 2005, or the date of enactment of an Act authorizing funds for military construction for FY 2006, whichever is later, with exceptions. Extends certain prior-year military construction projects.

Title XXVIII: General Provisions - Subtitle A: Military Construction Program and Military Family Housing Changes - Authorizes the Secretary of the Army to lease additional family housing units in Korea both at and above the current lease limit of $25,000 per year (to a maximum of $35,000 per year).

(Sec. 2802) Amends the Military Construction Authorization Act, 1984 to repeal U.S. source requirements for military family housing construction overseas.

(Sec. 2803) Authorizes the Secretary concerned to enter into contracts for the lease of housing units determined suitable for use as military family or military unaccompanied housing. Repeals interim lease authority.

Subtitle B: Real Property and Facilities Administration - Authorizes the Secretary or the Secretary of a military department to enter into agreements with private entities to address the use or development of real property in the vicinity of a military installation in order to: (1) limit any property development or use that is incompatible with the installation's mission; or (2) preserve habitat in a manner that is compatible with environmental requirements and current or anticipated military training, testing, or operations. Outlines agreement requirements and conditions. Provides agreement funding through funds of the Range Enhancement Initiative Fund of DOD.

(Sec. 2812) Authorizes the Secretary concerned to convey to State or local governments or appropriate private entities surplus real property for the conservation of open space or natural resources. Provides a reversionary interest if the property is not used and maintained for such purposes.

(Sec. 2813) Amends the Military Construction Authorization Act for Fiscal Year 2002 to authorize the Secretary or the Secretary of a military department (currently, only the Secretary of the Army) to conduct a demonstration program on the reduction of long-term facility maintenance costs. Allows up to 12 (currently three) contracts to contain requirements for such program. Provides transitional provisions for program contracts currently administered by the Secretary of the Army. Requires the Secretary to undertake current program report requirements.

Provides funding from military construction funds defense-wide or of all the military departments (currently, only Army construction funds).

Subtitle C: Land Conveyances - Authorizes the Secretary of the: (1) Army to convey to the State of Alaska or an Alaska Native Corporation or Indian tribe certain property formerly used for the Alaska National Guard; (2) Army to convey to the city of Hopkinsville, Kentucky, an abandoned railroad spur at Fort Campbell, Kentucky, for storm water management, recreation, transportation, and other public purposes; (3) Navy to convey to the city of Chicopee, Massachusetts, a portion of the Westover Air Reserve Base in Chicopee, for economic and other public purposes; (4) Navy to convey to the State of Rhode Island the Melville Marina site in Rhode Island; (5) Air Force to convey to the State of Colorado all or part of the Watkins Communications Site in Arapahoe County, Colorado, in exchange for certain lands adjacent to Buckley Air Force Base, Colorado; (6) Interior to convey to the city of West Wendover, Nevada, and Tooele County, Utah, specified portions of the Wendover Air Force Base auxiliary field determined by the Secretary of the Air Force to be no longer required for Air Force purposes; (7) Army to convey to the Veterans Land Board of the State of Texas specified property at Fort Hood, Texas, for a State-run veterans' cemetery; (8) Army to convey to Fairfax County, Virginia, a portion of the Engineer Proving Ground at Fort Belvoir, Virginia, for park and recreational purposes; (9) Army or Administrator of General Services to convey to the Johnson County Park and Recreation District, Kansas, a portion of the Sunflower Army Ammunition Plant, for public recreational purposes; and (10) Army to convey to Madison County, Kentucky, a portion of the Bluegrass Army Depot, Kentucky, for the construction of a veterans' center.

(Sec. 2823) Amends the Military Construction Authorization Act for Fiscal Year 2002 to allow the transfer of the Corea and Winter Harbor properties as part of a conveyance to the State of Maine or political subdivision or tax-supported agency thereof. Exempts such conveyances from a Federal screening requirement.

(Sec. 2827) Authorizes the Secretary to acquire all rights and interest to the Boundary Channel Drive Site, Arlington, Virginia, for inclusion in the Pentagon Reservation.

(Sec. 2831) Amends the Military Construction Authorization Act for Fiscal Year 2000 to: (1) repeal provisions establishing the Commission on the National Military Museum; and (2) exclude references to such Commission under provisions authorizing the Secretary to transfer the Navy Annex to the Secretary of the Army.

Subtitle D: Other Matters - Authorizes the Secretary of the Air Force, using Air Force military construction funds, to transfer $15 million to the U.S. Fish and Wildlife Service in lieu of the acquisition of replacement property required after a transfer of certain lands within the Nevada National Wildlife Refuge System. Allows the Service to grant such funds to the National Fish and Wildlife Foundation to acquire the replacement 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 - Authorizes appropriations to the Department of Energy (DOE) for FY 2003 for: (1) activities of the National Nuclear Security Administration 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 environmental management privatization, and defense nuclear waste disposal.

Subtitle B: Recurring General Provisions - Prohibits the use of funds appropriated pursuant to this subtitle for: (1) the cost of a program exceeding 115 percent of, or $5 million more than, the amount authorized; or (2) programs which have not been presented to, or requested of, Congress until the Secretary of Energy (Secretary, for purposes of this Division) transmits to the defense and appropriations committees a full statement of the action proposed and 30 days have since expired.

(Sec. 3122) Authorizes the Secretary to carry out minor construction projects using O&M funds or facilities infrastructure funds authorized by this title.

(Sec. 3123) Places certain funding limits for general plant and construction projects of DOE. Requires congressional reports when amounts exceed such limits.

(Sec. 3124) Authorizes the Secretary to transfer DOE-authorized funds: (1) to other Federal agencies for the performance of work for which such funds were authorized; or (2) between authorizations within DOE, to be merged with and available for the same purposes. Requires notification to the defense committees of any such transfers.

(Sec. 3125) Directs the Secretary, before submitting a funding request for a construction project in support of a DOE national security program, to complete a conceptual design for such project. Requires a separate funding request for designs for which the estimated cost exceeds $3 million. Authorizes the Secretary to carry out construction design services in connection with any proposed construction project if the total estimated cost for the design does not exceed $600,000. Requires specific authorization by law for designs exceeding such amount.

(Sec. 3126) Authorizes the use of DOE funds for planning, design, or construction activities for any DOE national security program that must proceed expeditiously in order to protect public health and safety, meet the needs of national defense, or protect property. Requires the Secretary to report to the defense and appropriations committees when funds are so used.

(Sec. 3129) Directs the Secretary, during FY 2003, to empower each DOE field office manager with the authority to transfer defense environmental management funds from a program or project under such office's jurisdiction to another program or project in order to address a risk to health, safety, or the environment or to assure the most efficient use of such funds at that field office. Limits any such transfer to $5 million. Directs the Secretary to notify Congress within 30 days after any such transfer.

(Sec. 3130) Directs the Secretary, during FY 2003, to empower each DOE field office manager with the authority to transfer weapons activities funds from a program or project of that office to another such program or project when such transfer is necessary to address a risk to health, safety, or the environment or will result in cost savings and efficiencies. Limits any such transfer to $5 million. Directs the Secretary to notify Congress within 30 days after any such transfer.

Subtitle C: Program Authorizations, Restrictions, and Limitations - Prohibits funds authorized to DOE under this Act for environmental management cleanup reform activities from being obligated or expended until the Secretary publishes in the Federal Register, and submits to the defense and appropriations committees, a report setting forth project selection and priority criteria, or notifies such committees that such criteria will not be established. Outlines provisions for funding availability if such criteria are not established.

(Sec. 3132) Directs the Secretary of Defense to report to the defense and appropriations committees on the Robust Nuclear Earth Penetrator.

(Sec. 3133) Makes DOE funds authorized for the National Nuclear Security Administration available to the Deputy Administrator for Nuclear Security for Defense Programs for the development and implementation before the end of FY 2003 of a database for all national security laboratories to track the notification and resolution phases of Significant Finding Investigations.

(Sec. 3134) Requires that, in any fiscal year after 2002 in which the Secretary plans to carry out activities relating to the development of a new or modified nuclear weapon, the Secretary shall specifically request funds for such activities in the budget submitted for that fiscal year. Provides exceptions: (1) for the nuclear weapons life extension program; (2) to modify an existing nuclear weapon solely to address safety or reliability concerns; or (3) to address proliferation concerns.

(Sec. 3135) Amends the Department of Energy Organization Act to prohibit DOE amounts for national security programs and activities or activities under the Atomic Energy Act of 1954 from being obligated or expended unless funds therefor have been specifically authorized by law.

(Sec. 3136) Prohibits the obligation or expenditure of more than $100 million of the amounts authorized for the elimination of weapons grade plutonium production until 30 days after the Administrator for Nuclear Security submits to the defense and appropriations committees a copy of a United States-Russian Federation agreement to shut down the three plutonium-producing reactors in Russia.

Subtitle D: Proliferation Matters - Transfers from DOD to DOE the program to eliminate weapons grade plutonium production in Russia. Transfers associated funds, making such funds available for related DOE purposes.

( (Sec. 3152) Amends the National Defense Authorization Act for Fiscal Year 1996 to repeal required reports on the obligation of funds for programs on fissile materials in Russia.

(Sec. 3153) Amends the Spence Act to include within required reports on the status of nuclear materials protection, control, and accounting programs information on all countries having such materials (currently only Russia).

(Sec. 3154) Amends the Defense Against Weapons of Mass Destruction Act of 1996 to extend through FY 2013 a program for testing and improving the response of Federal, State, and local agencies to emergencies involving biological and chemical weapons and related materials.

(Sec. 3155) Directs the Administrator for Nuclear Security to carry out a program on research and technology for protection from nuclear or radiological terrorism, including technology for the detection, identification, assessment, control, disposition, consequences management, and consequences mitigation of the dispersal of radiological materials or nuclear terrorism. Requires the technology and information developed to be incorporated into the program on responses to emergencies involving nuclear and radiological weapons carried out under the above Act. Provides funding.

(Sec. 3156) Authorizes the Secretary to expand the International Materials Protection, Control, and Accounting program of DOE to encompass countries outside the Russian Federation and the independent states of the former Soviet Union. Requires the Secretary to notify Congress within 30 days after obligating funds for such purpose. Authorizes the Secretary, as part of such program, to provide technical assistance to the Secretary of State to assist other nuclear weapons states to review and improve their nuclear materials security programs.

Directs the Secretary to: (1) develop a plan to accelerate the conversion or return to the country of origin of all weapons-usable nuclear materials located in research reactors and other facilities outside such country; (2) establish within the above program a program on the protection, control, and accounting of materials usable in radiological dispersal devices; (3) require the Office of International Materials Protection, Control, and Accounting to conduct a study to determine the feasibility and advisability of developing a program to secure radiological materials outside the United States that pose a threat to U.S. national security; and (4) report such study's results to Congress.

Expresses the sense of Congress that the President should encourage amendment of the Convention on the Physical Protection of Nuclear Materials in order to provide that the Convention shall: (1) apply to both domestic and international use and transport of nuclear materials; (2) incorporate fundamental practices for the physical protection of such materials; and (3) address protection against sabotage involving nuclear materials. Earmarks funds for such purpose.

(Sec.3157) Expresses the sense of Congress that the Secretary should develop a comprehensive program of activities to encourage all countries with nuclear materials to adhere to, or adopt standards equivalent to, the International Atomic Energy Agency standard on the Physical Protection of Nuclear Materials and Nuclear Facilities relating to the security of stockpiles of highly enriched uranium and plutonium. Authorizes the Secretary to: (1) carry out a program to pursue with the Russian Federation and any other nation that possesses highly enriched uranium options for blending such uranium so that its concentration of U-235 is below 20 percent; (2) provide financial and other incentives for the removal of all highly enriched uranium from any particular facility in the Russian Federation if such incentives will facilitate the consolidation of such uranium in the Russian Federation to the best-secured facilities; (3) purchase from another nation, and transfer to and store in the United States, highly enriched uranium or weapons-grade plutonium; (4) encourage other nations with such uranium to transfer it to the Russian Federation for disposition; and (5) enter into contracts with the Russian Federation for blending and storing highly enriched uranium in the Russian Federation. Limits the release for sale of such blended uranium. Requires the Secretary to report to Congress on the status of the standards adoption program.

(Sec. 3158) Encourages the Secretary to continue to support the Secretary of State in negotiations with the Russian Ministry of Atomic Energy to finalize a specified agreement between the two countries regarding the plutonium disposition program of the Russian Federation. Authorizes the Secretary to consider providing additional funds in order to reach a successful agreement.

(Sec. 3159) Directs the Secretary to report to Congress on options for an international program to develop strengthened security for all nuclear materials and safety and security for current nuclear operations. Requires the Director of the Office of Nuclear Energy Science and Technology to pursue with the Russian Ministry of Atomic Energy joint programs on the development of proliferation-resistant nuclear energy technologies, including advanced fuel cycles. Authorizes the Secretary to: (1) provide assistance to nuclear facilities abroad on the interdiction of hostile insiders at such facilities in order to prevent incidents arising from the disablement of vital facility systems; and (2) expand and accelerate DOE programs to support the International Atomic Energy Agency in strengthening international nuclear safety and security. Provides funding.

(Sec. 3160) Authorizes the Secretary to pursue in the former Soviet Union and other regions of concern options for accelerating programs that assist countries in improving their domestic export control programs for materials, technologies, and expertise relevant to the construction or use of a nuclear or radiological dispersal device. Provides funding.

(Sec. 3161) Directs the Secretary to work cooperatively with the Russian Federation to update and improve the Joint Action Plan for the Materials Protection, Control, and Accounting programs of DOE and the Russian Ministry of Atomic Energy. Expresses the sense of Congress that the Secretary should: (1) enhance such partnership to increase the pace and effectiveness of nuclear materials accounting and security activities at facilities in the Russian Federation; and (2) clearly identify the assistance required by, and contributions expected from, the Russian Federation, as well as the milestones that can be used to assess progress in meeting such requirements.

(Sec. 3162) Amends the National Defense Authorization Act for Fiscal Year 2002 to require the President to report annually to Congress on a plan for the coordination and cooperation with the Russian Federation on the disposition of nuclear weapons and weapons-usable nuclear material in Russia that is not retained in its nuclear arsenal.

(Sec. 3163) Authorizes each Federal, State, or local department or agency that carries out work on counterterrorism and homeland security activities at a DOE national laboratory to be a joint sponsor, under a multiple agency sponsorship arrangement with DOE, with such laboratory in the performance of such work as if such site were a federally funded research and development center. Requires DOE to be the primary sponsor and the Administrator to act as lead agent. Provides funds, with a limitation.

Subtitle E: Other Matters - Amends the Atomic Energy Act of 1954 to extend until August 1, 2012, a program under which the Secretary indemnifies DOE contractors who perform activities that involve the risk of public liability and are not subject to financial protection requirements of such Act.

(Sec. 3172) Amends the above Act to provide new requirements for worker health and safety rules for DOE nuclear facilities. Provides civil penalties against persons who have entered into an indemnification agreement that violates rules or regulations relating to industrial or construction health and safety and a specified DOE Order. Requires such regulations to take effect within one year of promulgation, authorizing the Secretary to provide for regulation variances or exemptions to the extent necessary to avoid serious impairment of U.S. national security interests. Provides enforcement guidance with respect to structures to be disposed of due to industrial or construction health and safety requirements. Requires the Secretary to include in each DOE contract a provision that allows an appropriate reduction in contract fees or costs in the event of a contractor violation of DOE health or safety regulations or orders.

(Sec. 3173) Amends the National Defense Authorization Act for Fiscal Year 2000 to extend until January 1, 2005, the authority of DOE to pay voluntary separation incentive payments.

(Sec. 3174) Makes funds authorized under this title available for FY 2003 payments to the Los Alamos National Laboratory Foundation for the support of public education needs of children in the vicinity of the Los Alamos National Laboratory, New Mexico.

Subtitle F: Disposition of Weapons-Usable Plutonium at Savannah River, South Carolina - Directs the Secretary to submit to Congress a plan for the construction and operation at the Savannah River Site, South Carolina, of a mixed-oxide fuel facility for converting weapons-grade plutonium to a mixed-oxide fuel for use in commercial nuclear power reactors. Provides a construction schedule and production deadline dates, with the goal of achieving facility construction by January 1, 2009, and of processing 34 metric tons of plutonium into mixed-oxide fuel by January 1, 2019. Requires: (1) the Secretary to submit corrective action plans if the schedule and deadlines are not met; (2) the removal or disposal of unprocessed plutonium from the Site if the schedule and deadlines are not met; and (3) payments to South Carolina of economic and impact assistance associated with not meeting such schedule and deadlines. Directs the Secretary to submit to Congress: (1) a plan to address the failure to complete the planned removal or disposal; and (2) a report on the removal of the facility upon completion of operations.

(Sec. 3183) Requires the Defense Nuclear Facilities Safety Board to study and report to Congress and the Secretary on the adequacy of the K-Area Materials Storage Facility and related facilities at the Savannah River Site for the storage of defense plutonium and related materials in connection with the plutonium disposition program.

Title XXXII: Defense Nuclear Facilities Safety Board - Authorizes appropriations for FY 2003 for the: (1) Defense Nuclear Facilities Safety Board; and (2) Department of the Army for the formerly used sites remedial action program of the Corps of Engineers.