On Wednesday, May 16, 2012, the House is scheduled to begin consideration of H.R. 4310, the National Defense Authorization Act for FY2013, under a rule.  The rule provides one hour of general debate equally divided and controlled by the chair and ranking minority member of the Committee on Armed Services, and provides that no further consideration of the bill shall occur except pursuant to a subsequent order of the House.  It is expected that the Committee on Rules will report a separate resolution making in order amendments to the bill and providing for further consideration.  A summary of amendments made in order will be subsequently distributed.  The bill was introduced by Rep. Buck McKeon (R-CA) on March 29, 2012, and referred to the Committee on Armed Services.  The committee held a mark-up on May 9, 2012, and reported the bill as amended by a vote of 56-5. 

H.R. 4310 would authorize appropriations for the Department of Defense (DoD) and for the national security programs of the Department of Energy (DoE) for Fiscal Year 2013.  This authorization is intended to enhance national security through the procurement of materiel, the modernization of the Armed Forces, and continued funding for overseas contingency operations (OCO). 

The bill also contains a number of provisions concerning military personnel policy, education and training, military pay and allowances, acquisition policy and management, DoD organization and management, civilian personnel, and matters relating to foreign nations.

The bill would authorize a total discretionary budget authority of $637 billion for FY2013 ($3.6 billion above the President’s FY2013 budget request) for programs within the jurisdiction of the Armed Services Committee.  Of this amount, $546.8 billion is for “base” DoD programs (representing a $0.2 billion decrease below the levels provided for in the National Defense Authorization Act for Fiscal Year 2012 [P.L. 112–81]), including $18.1 billion for Department of Energy national security programs and the Defense Nuclear Facilities Safety Board, and $88.5 billion for OCO requirements.

These amounts include: $99.1 billion for procurement; $10.3 billion for procurement to support OCO; $70.4 billion for research, development, & testing (RDT&E); $175.1 billion for operation and maintenance (O&M); $61 billion for O&M supporting OCO; $135.7 billion for military personnel; $14 billion for personnel supporting OCO. 

The bill would authorize a 1.7% pay increaseand extend bonuses and special pay for our men and women in uniform.  Compared with end-strength levels for 2013 authorized under current law, the bill would authorize reductions in active-duty personnel across all four services: 9,900 fewer for the Army; 3,000 fewer for the Navy; 4,800 fewer for the Marine Corps; and 2,417 fewer for the Air Force.

The following summary of the bill’s highlights contains language taken from the Chairman’s Mark of H.R. 4310:

DIVISION A—DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I—PROCUREMENT

Section 132 would permit the Secretary of the Air Force to retire no more than 41 C-130 airlift aircraft after fiscal year 2013.

Section 135 would prevent the Secretary of the Air Force from divesting or retiring C-27J aircraft from the Air Force's inventory during fiscal year 2013 and until 180 days after the date on which the Secretary of the Air Force submits the report required by the National Defense Authorization Act for Fiscal Year 2012 (P.L. 112-81), and the Director of the Congressional Budget Office (CBO) submits to Congress a life-cycle cost analysis of C-27J aircraft, C-130H aircraft, and C-130J aircraft. This section would also require the Director to conduct the analysis, which would take into account all upgrades and modifications required to sustain the aircraft through a 40-year service-life. The Director would also provide its assessment of the most cost effective and mission-effective options for which C-27J aircraft could be affordably fielded by the Air National Guard with regard to the number of basing locations, the number of authorized personnel associated with a unit's manning document, and the maintenance and sustainment strategy. The cost-analysis would also outline any limiting factors regarding the assessment of the C-27J aircraft cost data as it relates to deriving cost ground rules and assumptions, and actual data derived from costs incurred for currently fielded aircraft. The Department of Defense would also be required to provide to the Director of the Congressional Budget Office all requested and all original source documentation needed to conduct the life-cycle cost analyses in a prompt and timely manner.

Section 136 would prevent the Secretary of the Air Force from terminating the C-130 Avionics Modernization Program (AMP) until 180 days after the Institute for Defense Analyses submits to the congressional defense committees a cost-benefit analysis of modernizing the legacy C-130 airlift fleet with C-130 AMP as compared to only modernizing the legacy C-130 airlift fleet with a reduced scope program for avionics and mission planning systems. The cost-benefit analysis would take into account the impact of lifecycle costs for both C-130s upgraded with C-130 AMP and C-130s not upgraded with C-130 AMP, and for legacy C-130 aircraft that are not upgraded with C-130 AMP, the impacts to future sustainment and maintenance costs associated with certain avionics and mission systems upgrades that may be required in the future for legacy C-130 aircraft to remain relevant and mission effective throughout the full service-life of the aircraft.

Section 142 would amend section 141 of the National Defense Authorization Act for Fiscal Year 2006 (P.L. 109-163), as amended by section 143 of the National Defense Authorization Act for Fiscal Year 2010 (P.L.111-84), to require that in carrying out a solicitation for a common data link (CDL), the Secretary of Defense shall ensure that such solicitation complies with the most recently issued CDL specification standard of the Department of Defense, and does not include any proprietary or undocumented interface or waveform as a requirement or evaluation criterion of such solicitation.

TITLE III—OPERATION AND MAINTENANCE

Section 352 would limit the funds authorized to be appropriated to disestablish 2 of the 18 Aerospace Control Alert locations. This section would also establish a consolidated budget exhibit for the Aerospace Control Alert mission.  Finally, this section would require the Secretary of Defense to submit a report to Congress that provides a cost-benefit analysis and a risk-based assessment of Aerospace Control Alert mission; and then have the Comptroller General of the United States assess the Secretary's report.

Section 355 would amend section 2572 of title 10, United States Code, and prohibit the President from transferring a veterans memorial object to a foreign country unless the transfer is specifically authorized by law or the transfer is made after September 30, 2017.

TITLE VII—HEALTH CARE PROVISIONS

Section 716 would require the Secretary of Defense to conduct a pilot program for 3 years at not less than two military installations to assess the feasibility of using revenue-cycle improvement processes, including cash flow management and accounts-receivable processes to increase amounts collected by military treatment facilities from third party payers. The Secretary of Defense would be required to submit a report of the results of the pilot program to Congress not later than 180 days after completion.

Section 717 would require the Secretary of Defense to conduct a pilot program for 5 years that would require TRICARE for Life eligible beneficiaries to obtain refill prescriptions for maintenance medication from the TRICARE mail order pharmacy. The section would allow beneficiaries to opt out of the mail order program after 1 year and would authorize the Secretary of Defense to waive the mail order requirement on an individual basis if the Secretary deems it appropriate.

Section 718 would establish the cost-sharing rates under the TRICARE pharmacy benefits program as $5 for generic medications, $17 for formulary medications and $44 for non-formulary medications obtained through retail pharmacies, and $0 for generic medications, $13 for formulary medications and $43 for non-formulary medications obtained through the TRICARE mail order pharmacy. This section would also limit any annual increase in cost-sharing rates under the TRICARE pharmacy program to the amount equal to the percentage increase by which retiree pay is increased beginning October 1, 2013.

TITLE VIII—ACQUISITION POLICY, ACQUISITION

Section 801 would authorize a 24-month pilot exemption for certain procurements performed by the Department of Energy on behalf of the Department of Defense from duplicative and unnecessary Inspector General of the Department of Defense reviews and compliance certifications required by section 801 of the National Defense Authorization Act for Fiscal Year 2008 (P.L. 110-181). This section would also require the Under Secretary of Defense for Acquisition, Technology, and Logistics to certify to the congressional defense committees within 20 months after the date of the enactment of this Act that the procurement policies, procedures, and internal controls of the Department of Energy provide sufficient protection and oversight for Department of Defense funds expended through the Department of Energy's Work For Others Program, and to provide a recommendation regarding whether the pilot exemption should be extended.

Section 811 would amend section 2401 of title 10, United States Code, by modifying the time period for congressional notification of the lease of certain vessels from 30 days of continuous session to 60 days.

Section 812 would amend section 4202 of the Clinger-Cohen Act of 1996 (division D of P.L. 104-106), as most recently amended by section 816 of the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84) to extend the authority for use of simplified acquisition procedures for certain commercial items to January 1, 2015.

Section 813 would codify section 805 of the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84) as section 2335 of title 10, United States Code, and include a new requirement for a product support manager for a major weapon system to use advanced predictive analysis technologies to improve material availability and reliability, increase operational availability rates, and reduce operation and sustainment costs. This section would also ensure a product support strategy maximizes small business participation at the appropriate tiers in a manner that ensures that small businesses are not inappropriately selected for performance as a prime contractor.

Section 814 would codify section 820 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (P.L. 109-364), relating to Government performance of critical acquisition functions, as a new section in subchapter I of chapter 87 of title 10, United States Code.

Section 815 would prohibit the Secretary of Defense from obligating or expending more than 80 percent of the funds authorized to be appropriated for the Office of the Secretary of Defense for fiscal year 2013 until such time as the Secretary certifies to the congressional defense committees that the Department of Defense is implementing the requirements of section 202(d) of the Weapon Systems Acquisition Reform Act of 2009 (P.L. 111-23), as amended. This section would also require that such certification be accompanied by: (1) a briefing to Congress on the processes and procedures that have been implemented across the military departments and defense agencies to maximize competition throughout the life-cycle of major defense acquisition programs; and (2) a representative sample of solicitations issued since May 22, 2009, intended to fulfill the objectives of section 202(d) of P.L. 111-23.

Section 821 would amend section 801 of the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84) relating to temporary authority to acquire products and services produced in countries along a major route of supply to the Islamic Republic of Afghanistan. This section would extend the authority through December 31, 2014. This section would also expand the authority under section 801 to acquire products or services to be used by U.S. and coalition forces in Afghanistan, subject to a determination by the Secretary of Defense that such products or services will be acquired from a country that has agreed to allow the retrograde of coalition personnel, equipment, and supplies from Afghanistan. This section would prohibit the preferential procurement of goods or services from the Islamic Republic of Pakistan until such time as the Government of Pakistan re-opens the ground lines of communication through Pakistan in support of coalition operations in Afghanistan. Finally, this section would repeal an expired reporting requirement.

Section 822 would amend section 886 of the National Defense Authorization Act for Fiscal Year 2008 (P.L. 110-181) to require the Secretary of Defense to make a determination that the Government of the Islamic Republic of Afghanistan is not taxing assistance provided by the United States to Afghanistan in violation of any bilateral or other agreement with the United States, before providing preferential treatment for the acquisition of a product or service produced in Afghanistan.

Section 831 would strike the requirement in section 804 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (P.L. 111-383) that the acquisition process for rapid fielding of capabilities in response to urgent operational needs (UON) may only be applied for capabilities that can appropriately be acquired under fixed price contracts.

TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Section 901 would amend section 139c of title 10, United States Code, by directing additional duties of the Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base Policy. The duties would include prescribing policies and procedures for ensuring reliable sources of materials that are critical to national security. This section would also amend section 187 of title 10, United States Code, by reconfiguring the Strategic Materials Protection Board to include: the Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base Policy; an official within the Defense Logistics Agency with responsibility for strategic materials; and designees from the Army, the Navy, and the Air Force.

Section 902 would require the Secretary of Defense to designate a senior official to be the focal point within the Department of Defense to lead the Department’s urgent operational needs and rapid acquisition efforts. The senior official's responsibilities would include, but not limited to: (1) acting as an advocate within the Department for issues related to the Department's ability to rapidly respond to urgent needs; (2) improving visibility across all urgent operational needs entities and processes; and (3) ensuring tools and mechanisms are used to track, monitor, and manage the status of urgent operational needs, from validation through the transition, including a formal feedback mechanism or channel for the military services to provide feedback on how well fielded solutions met urgent operational needs.

Section 905 would re-designate the Department of the Navy as the Department of the Navy and the Marine Corps and change the title of its secretary to the Secretary of the Navy and Marine Corps. This section would formally recognize the responsibility of the Office of the Secretary of the Navy over both the Navy and Marine Corps and the Marine Corps' status as an equal partner with the Navy.

Section 921 would provide a technical correction by recognizing the Department of Defense's redesignation of the "National Defense Intelligence College" as the "National Intelligence University".

Section 931 would withhold funds authorized to be appropriated for fiscal year 2013 as specified in the funding table in section 4301 of this Act for the Office of the Secretary of Defense, the Department of the Navy, and the Department of the Air Force until the defense agencies, the Department of the Navy, and the Department of the Air Force comply with the Inventory of Contracts for Services, which is mandated by section 2330a(c) of title 10, United States Code.

Section 941 would affirm that the Secretary of Defense has the authority to conduct military activities in cyberspace. In particular, this section would clarify that the Secretary of Defense has the authority to conduct clandestine cyberspace activities in support of military operations pursuant to a congressionally authorized use of force outside of the United States, or to defend against a cyber attack on an asset of the Department of Defense.

Section 951 would amend section 153 of title 10, United States Code, to clarify the role of the Chairman of the Joint Chiefs of Staff in identifying, assessing, and approving military requirements to meet the national military strategy, and in ensuring that life-cycle cost, schedule, and performance objectives are achieved in the acquisition of material solutions to meet such requirements. The section would also amend section 181 of title 10, United States Code, to clarify the role of the Joint Requirements Oversight Council in assisting the Chairman of the Joint Chiefs of Staff in these matters. Additionally, this section would amend section 2547 of title 10, United States Code, to clarify the role of the Chiefs of the Armed Forces in the development and certification of requirements for equipping the Armed Force concerned.

Section 953 would require the Secretary of Defense to brief Congress annually on the defense planning guidance and the written policy guidance regarding the preparation of contingency plans, developed pursuant to section 113 of title 10, United States Code.

Section 954 would extend for 1 year the current authority under section 941(b) of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (P.L. 110-417), as amended by section 941 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (P.L. 111-383), for the five Regional Centers for Security Studies of the Department of Defense to waive the reimbursement costs required under section 184(f) of title 10, United States Code, for personnel of nongovernmental organizations and international organizations to participate in activities of the centers. This section would also require the Comptroller General of the United States to assess the effectiveness of the Regional Centers for Security Studies in meeting the centers' objectives and advancing the priorities of the Department of Defense; the extent to which the Centers' perform a unique function within the inter-agency community; measures of effectiveness and impact indicators each Center uses to internally evaluate its programs; oversight mechanisms within the Department of Defense; and the benefits, if any, of waiving reimbursement costs for personnel of nongovernmental organizations and international organizations to participate in activities of the Centers on an ongoing basis. The Comptroller General would be required to submit a report of such assessment by March 1, 2013, to the appropriate congressional committees.

TITLE X—GENERAL PROVISIONS

Section 1001 would allow the Secretary of Defense to make transfers between any amounts of authorizations for fiscal year 2013 in division A of this Act. This section would limit the total amount transferred under this authority to $3.5 billion. This section would also require prompt notification to Congress of each transfer made.

Section 1011 would authorize the Chief of the National Guard Bureau to continue to operate the five National Guard Counterdrug Schools currently in existence for an additional period of 5 years.

Section 1012 would extend by 1 year the reporting requirement on expenditures to support foreign counter-drug activities.

Section 1013 would extend by 1 year the unified counter-drug and counterterrorism campaign in the Republic of Colombia.

Section 1014 would extend by 1 year the support for joint task forces under section 1022(b) of the National Defense Authorization Act for Fiscal Year 2004 (P.L. 108-136), as most recently amended by section 1004 of the National Defense Authorization Act for Fiscal Year 2012 (P.L. 112-81).

Findings on Detention Pursuant to the Authorization for Use of Military Force Enacted in 2001

Section 1031 would provide several congressional findings related to the detention authority provided by the Authorization for Use of Military Force (P.L. 107-40).

Habeas Corpus Rights

Section 1032 would provide two congressional findings related to the writ of habeas corpus.

Section 1033 would state that nothing in the Authorization for Use of Military Force (P.L. 107-40) or the National Defense Authorization Act for Fiscal Year 2012 (P.L. 112-81) shall be construed to deny the availability of the writ of habeas corpus in a court ordained or established by or under Article III of the Constitution for any person who is detained in the United States pursuant to the Authorization for Use of Military Force (P.L. 107-40).

Section 1035 would prohibit the rights and benefits afforded by section 141 of the applicable Compact of Free Association (P.L.s 99-658; 108-188) to be afforded to an individual currently or previously detained at U.S. Naval Station, Guantanamo Bay, Cuba, who has been repatriated to the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau.

Section 1036 would prohibit the Secretary of Defense from using funds available to the Department of Defense for fiscal year 2013 to transfer or release detainees at U.S. Naval Station, Guantanamo Bay, Cuba, to or within the United States, its territories, or possessions.

Section 1037 would prohibit the Secretary of Defense from using any of the funds available to the Department of Defense for the fiscal year 2013 to transfer or release individuals detained at U.S. Naval Station, Guantanamo Bay, Cuba, to or within a foreign country or any other foreign entity. This prohibition would apply unless the Secretary of Defense, in consultation with the Secretary of State, provides a written certification to Congress addressing several requirements at least 30 days prior to the transfer of any such individual. This section would also prohibit the Secretary of Defense from using any funds for the transfer of any such individual to the custody or effective control of a foreign country or any other foreign entity if there is a confirmed case of any individual transferred from U.S. Naval Station, Guantanamo Bay, Cuba, to the same country or entity who engaged in terrorist activity subsequent to their transfer. This section would allow the Secretary of Defense to waive the general prohibition against transfers to a foreign country if there is a confirmed case of any individual transferred from U.S. Naval Station, Guantanamo Bay, Cuba, as well as two of the requirements for other transfers. In these instances, the Secretary must determine that alternative actions will be taken, that it is not possible to certify the risks have been completely eliminated, and that actions taken will substantially mitigate the risk of recidivism. Whenever the Secretary uses the waiver, he must provide a report that includes a copy of the waiver, determination, a statement of the basis for the determination, and a summary of the alternative actions to be taken.

Section 1038 would prohibit the Secretary of Defense from using any of the funds available to the Department of Defense for fiscal year 2013 to modify or construct any facility in the United States, its territories, or possessions to house any detainee transferred from U.S. Naval Station, Guantanamo Bay, Cuba, for the purposes of detention or imprisonment in the custody or under the effective control of the Department of Defense.

Section 1039 would require two different reports relating to transfers of individuals detained at United States Naval Station, Guantanamo Bay, Cuba.

Section 1040 would require the Secretary of Defense to notify the Senate Committee on Armed Services and the House Committee on Armed Services no later than 5 days after detaining an individual pursuant to the Authorization for Use of Military Force (P.L. 107–40) outside the United States on a U.S. naval vessel. This section would also require the Secretary to submit a report on the use of U.S. naval vessels for detention purposes.

Section 1041 would require the Secretary of Defense to notify the appropriate congressional committees no later than 10 days before the transfer of any third country national detainee held at the Detention Facility at Parwan, Afghanistan, to the custody of the Government of the Islamic Republic of Afghanistan or of any other country. This section would also require the Secretary to provide additional assessments and certifications regarding such transfers.

Section 1061 would require the Secretary of Defense to submit a report to Congress within 270 days after the date of the enactment of this Act assessing the Department of Defense’s use of electromagnetic spectrum.

Section 1062 would require the Secretary of Defense to review and update Department of Defense guidance related to electronic warfare not later than January 1, 2013, to ensure that oversight roles and responsibilities within the Department are clearly defined. This section would also require the Commander, U.S. Strategic Command to update and issue guidance regarding the responsibilities of the combatant command with regard to joint electronic warfare capabilities. Finally, this section would include additional reporting requirements in the annual report on electronic warfare required by section 1053 of the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84).

Section 1071 would amend section 1062(c) of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (P.L. 111-383), relating to the rule of construction regarding the prohibition on collecting or recording information regarding the lawful ownership of a privately owned firearm or other weapon by a member of the Armed Forces or a Department of Defense civilian employee, to clarify that a military mental health professional or commanding officer may inquire if a member of the Armed Services owns any weapons, if such member is at high risk for suicide or causing harm to others.

Section 1081 would establish a bipartisan independent strategic review panel to conduct a regular review of the national defense strategic environment of the United States and to conduct an independent assessment of the quadrennial defense review required under section 118 of title 10, United States Code.

TITLE XI—CIVILIAN PERSONNEL MATTERS

Section 1111 would direct the establishment of a Committee on National Security Personnel that will manage the interagency personnel rotation among national security positions across the executive branch, except for the intelligence community.

TITLE XII—MATTERS RELATING TO FOREIGN NATIONS

Section 1201 would amend subsection (a) of section 1201 of the National Defense Authorization Act for Fiscal Year 2012 (P.L. 112-81) by extending the Commanders' Emergency Response Program in the Islamic Republic of Afghanistan through fiscal year 2013.

Section 1202 would modify the authority of the Secretary of Defense to direct, with the concurrence of the Secretary of State, programs to build the capacity of foreign forces to conduct counterterrorism and stability operations authorized pursuant to section 1206 of the National Defense Authorization Act for Fiscal Year 2006 (P.L. 109-163), commonly referred to as "1206" authority, to include small-scale military construction as part of the authorized types of capacity building. This section would limit the total amount authorized for small-scale military construction projects to no more than $25 million of the $350 million authorized for the "1206" authority in fiscal year 2013. This section would also authorize the Secretary of Defense to obligate and expend up to 20 percent of the amount authorized for fiscal year 2013 for programs authorized in fiscal year 2014, provided the Secretary submits written certification and notification to the specified congressional committees by September 30, 2013.

Section 1203 would extend, through September 30, 2015, the authority provided in section 1207 of the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84) that allows the Secretary of Defense to enter into nonreciprocal international defense personnel exchange agreements.

SUBTITLE B—MATTERS RELATING TO IRAQ, AFGHANISTAN, AND PAKISTAN

Section 1211 would amend section 1233 of the National Defense Authorization Act for Fiscal Year 2008 (P.L. 110-181) by extending the authority for reimbursement of coalition nations for support provided to the United States for military operations through fiscal year 2013, and making certain technical amendments. Additionally, this section would prohibit reimbursement or support authorized to be provided to the Government of the Islamic Republic of Pakistan until the Secretary of Defense provides a report to the congressional defense committees that outlines: the model for reimbursement, including how claims are proposed and adjudicated; new conditions or caveats that the Government of Pakistan places on the use of its supply routes; and the new cost associated with transit through supply routes in Pakistan. Further, this section would require the Secretary of Defense to certify that the Government of Pakistan is committed to: supporting counterterrorism operations against Al Qaeda, its associated movements, the Haqqani Network, and other domestic and foreign terrorist organizations; dismantling improvised explosive device (IED) networks and interdicting precursor chemicals used in the manufacture of IEDs; preventing the proliferation of nuclear-related material and expertise; and issuing visas in a timely manner for United States visitors engaged in counterterrorism efforts and assistance programs in Pakistan.

Section 1212 would amend section 1215(b) of the National Defense Authorization Act for Fiscal Year 2012 (P.L. 112-81) by specifying that the Secretary of Defense, with the concurrence of the Secretary of State, may use funds provided to the Office of Security Cooperation in Iraq to provide training and assistance to Iraqi Ministry of Defense personnel. Additionally, this section would limit the total funding authorized for operations and activities for the Office of Security Cooperation in Iraq to $508 million in fiscal year 2013.

Section 1213 would amend section 1216 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (P.L. 111-383) by extending the authority to use funds for reintegration activities in the Islamic Republic of Afghanistan and authorizing $35 million for fiscal year 2013 for this authority.

Section 1214 would prohibit the obligation or expenditure of funds appropriated to the Department of Defense for the purpose of contracting for security-guard functions at a military installation or facility in the Islamic Republic of Afghanistan at which members of the Armed Forces deployed to Afghanistan are garrisoned or housed; otherwise employing private security contractors to provide security for members of the Armed Forces deployed to Afghanistan; or employing the Afghan Public Protection Force (APPF) to provide security for such members or to perform such security-guard functions at such a military installation or facility. This section would further require the Armed Forces to provide such functions organically and for the President to provide sufficient members of the Armed Forces to ensure that such duties do not detract from other missions in Afghanistan. This section would allow the President to waive the requirements of this section if the President certifies that private security contractors or the APPF can provide at least an equal level of security and force protection as members of the Armed Forces and that such contractors or APPF are independently screened and vetted by the Armed Forces. Finally, this section would require the Secretary of Defense submit a quarterly report to Congress on attempted and successful attacks on U.S. Armed Forces conducted by members of the Afghan National Security Forces, APPF, or private security contractors and efforts to prevent such attacks.

Section 1215 would repeal section 1226 of the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84) and establish a report on updates and modifications to the campaign plan for the Islamic Republic of Afghanistan. This section would require that the Comptroller General of the United States to submit a report to the congressional defense committees no later than 180 days after the date on which any substantial updates for modifications are made to the campaign plan for Afghanistan. This reporting requirement would terminate on September 30, 2014.

Section 1216 would express the sense of Congress about the United States mission in the Islamic Republic of Afghanistan. This section would also require the President to notify Congress of any decision to reduce the number of United States Armed Forces deployed in Afghanistan below the number of such Armed Forces deployed to Afghanistan on (1) December 31, 2012, (2) December 31, 2013, and (3) December 31, 2014, prior to any public announcement of such a decision. This section would require such a notification to include an assessment of conditions on the ground that enable such a force reduction, including the relevant security risk metrics associated with the reduction in force levels and an assessment of the operational capability of the Afghan National Security Forces.

Section 1217 would amend section 1224(h) of the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84) by extending the Pakistan Counterinsurgency Fund (PCF) through fiscal year 2013. Additionally, this section would modify section 1220(b)(2) of P.L. 112-81, to require, in any year in which amounts are made available to PCF, the Secretary of Defense, with concurrence of the Secretary of State, to submit an update to the report on the strategy to utilize the fund, and the metrics used to determine progress with respect to the fund. This section would also limit the authority of the Secretary of Defense to obligate or expend funds made available to the Pakistan Counterinsurgency Fund during fiscal year 2013 to not more than 10 percent of the amount available until such time as the update is submitted to the appropriate congressional committees.

SUBTITLE C—MATTERS RELATING TO IRAN

Section 1221 would express certain findings related to the threat represented by the Islamic Republic of Iran to the United States, the State of Israel, and Iran's neighbors. This section would further declare that it is the policy of the United States to take all necessary measures, including military action if necessary, to prevent Iran from threatening the United States, its allies, or Iran's neighbors with a nuclear weapon.

Section 1222 includes findings that recognize the importance to the national security of the United States and its allies of conducting military exercises in the Persian Gulf and the Gulf of Oman. These exercises benefit the readiness of the U.S. military and allied forces, as well as serve as a signal to the Islamic Republic of Iran regarding the willingness of the United States to defend its national security interests. This section would further require the Secretary of Defense to submit to Congress not later than 120 days after the date of the enactment of this Act, a plan to strengthen the presence of the U.S. 5th Fleet in the Middle East to include conducting military deployments, exercises, and other military readiness activities.

Section 1231 would amend section 1202 of the National Defense Authorization Act for Fiscal Year 2000 (P.L. 106-65) by requiring assessments of space and cyber strategies, goals, and capabilities of the People’s Republic of China.

Section 1232 would require the Secretary of Defense to submit a second report on military and security developments involving the Democratic People's Republic of Korea, which would be due on November 1, 2013.

Section 1233 would require the Secretary of Defense, in consultation with the Secretary of State, to submit a report to the appropriate congressional committees not later than March 1 of each year from 2013 through 2015, on the direct, indirect and burden-sharing contributions made by host nations in support of U.S. Armed Forces deployed in country. The committee believes the current fiscal environment requires an understanding of host nation contributions in order to evaluate the costs of the forward deployment of U.S. Armed Forces.

TITLE XIII—COOPERATIVE THREAT REDUCTION

Section 1301 would define the programs and funds that are Cooperative Threat Reduction (CTR) programs and funds as those authorized to be appropriated in section 301 of this Act and specify that CTR funds shall remain available for obligation for 3 fiscal years.

Section 1302 would allocate specific amounts for each program element under the Department of Defense Cooperative Threat Reduction (CTR) Program from within the overall $519.1 million that the committee would authorize for the CTR program. The allocation under this section reflects the amount of the budget request for fiscal year 2013. This section would also require notification to Congress 15 days before the Secretary of Defense obligates and expends fiscal year 2013 funds for purposes other than those specifically authorized. In addition, this section would provide limited authority to obligate amounts for a program element under the CTR program in excess of the amount specifically authorized for that purpose.

TITLE XIV—OTHER AUTHORIZATIONS

Section 1411 would authorize $44.9 million from the National Defense Stockpile Transaction fund for the operation and maintenance of the National Defense Stockpile for fiscal year 2013. This section would also permit the use of additional funds for extraordinary or emergency conditions 45 days after Congress receives notification.

Section 1423 would authorize $67.6 million to be appropriated for the operation of the Armed Forces Retirement Home during fiscal year 2013.

TITLE XV—AUTHORIZATION OF ADDITIONAL APPROPRIATIONS

Section 1532 would amend section 1535 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (P.L. 111-383) relating to the Task Force for Business and Stability Operations (TFBSO) in the Islamic Republic of Afghanistan, by extending the authority for TFBSO, narrowing the scope of authorized projects to those associated with Afghanistan's mining and natural resource industries, and reducing the amount of funds authorized for TFBSO to $50 million for fiscal year 2013. This section would also restrict the authority of the Secretary of Defense to obligate or expend authorized funds for fiscal year 2013 until such time as the Secretary submits to the appropriate congressional committees the final recommendation for transitioning activities of the Task Force for Business and Stability Operations.

Section 1533 would amend the National Defense Authorization Act for Fiscal Year 2008 (P.L. 110-181) by extending the existing limitations on the availability of funds for the Afghanistan Security Forces Fund through fiscal year 2013. Additionally, this section applies a limitation for funds authorized to be appropriated in fiscal year 2013, or otherwise available, for the Afghanistan Security Forces Fund in fiscal year 2013 for the Afghan Public Protection Force (APPF) until the Secretary of Defense makes several certifications regarding the content of each subcontract to a contract of the Department of Defense for APPF services, or any agreement between the United States and the Islamic Republic of Afghanistan for services of the APPF for the Department. This section would also require the Secretary of Defense to certify that the Minister of Interior of Afghanistan is committed to ensuring sufficient numbers of APPF personnel are trained to match demand and attrition; sufficient clarity exists with respect to command and control of APPF personnel and the role of risk management consultants; the program to provide for the registration and end-use monitoring of defense articles and defense services transferred to Afghanistan, is sufficient to account for any United States Government-owned defense articles transferred to the APPF; mechanisms are in place to ensure the United States does not pay redundant charges in the performance of an APPF effort; the Minister of Interior of Afghanistan has established elements for the APPF relating to contractors performing private security functions in areas of combat operations; and the Secretary is confident the security provided to supply convoys to Department of Defense construction projects, and to Armed Forces deployed in support of operations in Afghanistan will not be degraded. In addition, this section would prohibit the obligation or expenditure of funds authorized to be appropriated in fiscal year 2013 for the Afghanistan Security Forces Fund for infrastructure improvements at an APPF training center. Finally, this section would require a quarterly report on the APPF be submitted to Congress through the quarter ending December 31, 2014.

TITLE XVI—INDUSTRIAL BASE MATTERS

Section 1601 would repeal section 871 of the National Defense Authorization Act for Fiscal Year 2008 (P.L. 110-181) that established the Defense Materiel Readiness Board (DRMB) within the Department of Defense. This section would also repeal section 872 of P.L. 110-181 that provided for designation of critical materiel readiness shortfalls by the Secretary of Defense and created the Department of Defense Strategic Readiness Fund.

Section 1602 would require the periodic defense capability assessment to include an assessment of the impact of foreign boycotts on the national technology and industrial base. This section would also require identification of actions necessary to minimize the impact of foreign boycotts on the national technology and industrial base. The committee notes the Comptroller General of the United States review of this matter, required in the conference report (H. Rept. 112-329) accompanying the National Defense Authorization Act for Fiscal Year 2012, is currently underway. In addressing the matters required to be reported as a result of this assessment, the committee requests the Comptroller General cite examples of foreign government or foreign business boycotts that pose a material risk to the defense industrial base.

Section 1603 would allow the Assistant Secretary of Defense for Research and Engineering to establish an Advancing Innovation Pilot Program to accelerate the commercialization of research innovations.

Section 1604 would amend section 2501 of title 10, United States Code, to require the Secretary of Defense to develop a national security strategy for the technology and industrial base. This section would require that the strategy ensure the national technology and industrial base is capable of supplying, equipping, and supporting the force structure necessary to achieve the objectives set forth in the national security strategy. This section would also codify the requirements of section 852(c) of the National Defense Authorization Act for Fiscal Year 2012 (P.L. 112-81), relating to a strategy for securing the defense supply chain and industrial base, within section 2504 of title 10, United States Code.  Finally, this section would amend section 2440 of title 10, United States Code, to clarify that the national technology and industrial base strategy developed pursuant to section 2501 of such title be considered in the development and implementation of acquisition plans for each major defense acquisition program.

Section 1611 would require the establishment of a pilot program within the Department of Defense to assist in the growth and development of advanced small business concerns. Under the pilot program, competition for contract awards may be restricted to advanced small business concerns under certain conditions.

Section 1612 would require the Secretary of Defense to develop and promulgate guidance to ensure that the director of each office of the Small Business Programs in the Department of Defense are participants in the Department’s requirements development and acquisition decision processes.

Section 1613 would require the Secretary of Defense to designate an official in each defense audit agency to: advise the director of the respective agency on all issues related to small business concerns; serve as the agency's primary point of contact and source of information for small business concerns; collect relevant data and monitor the agency's conduct of audits of small businesses; and develop and implement processes and procedures to improve the performance of the agency related to the timeliness of audits of small businesses.

Section 1614 would require the Secretary of Defense to enter into a contract with a Federally Funded Research and Development Center to conduct an independent assessment of the Department of Defense’s Federal procurement performance related to small business concerns. This section would require the Secretary to submit a report to the congressional defense committees not later than January 1, 2014, on the independent assessment.

Section 1615 would require the Secretary of Defense to conduct an independent review and assessment of the transition of small business-developed technologies, such as those developed under the Small Business Innovation Research Program, into a representative sample of major weapon systems and major automated information systems for the Department of Defense.

Section 1616 would require the Inspector General of the Department of Defense to conduct peer reviews of the Department of Defense audit agencies in accordance with and in such a frequency as provided by Government auditing standards as established by the Comptroller General of the United States. This section would also require the Inspector General to include, as part of the semiannual reports to Congress required by the Inspector General Act of 1978 (P.L. 95-452), information concerning any Department of Defense audit agency that has either failed peer review or has not had a peer review conducted in the required period.

Section 1621 would amend subsection (l) of section 15 of the Small Business Act (15 U.S.C. 644) to strengthen and clarify the role and responsibilities of Procurement Center Representatives (PCRs). This section would also allow PCRs to review and make recommendations related to acquisition plans and procurement methods and would require that PCRs hold a Level III Federal Acquisition Certification in Contracting, or the equivalent Department of Defense certification.

Section 1622 would require the Defense Acquisition University and the Federal Acquisition University to establish a course on contracting requirements under the Small Business Act (15 U.S.C. 644) and would require the course to be completed by certain individuals. This section would also require that business opportunity specialists have a Level I Federal Acquisition Certification in Contracting. Furthermore, this section would require the Comptroller General of the United States to provide a report to the Senate Committee on Small Business and Entrepreneurship and the House Committee on Small Business not later than 365 days after the date of the enactment of this Act, on the relationship between the size and quality of the acquisition workforce and the Federal Government's ability to maximize small business participation in Federal procurement.

Section 1623 would amend subsection (e) of section 15 of the Small Business Act (15 U.S.C. 644) to require that each Federal department or agency enumerate opportunities for the participation of small business concerns during all acquisition planning processes, and invite the participation of the appropriate Procurement Center Representatives and appropriate Directors of Small and Disadvantaged Business Utilization in all acquisition processes.

Section 1631 would amend subsection (g) of section 15 of the Small Business Act (15 U.S.C. 644) by establishing a Government-wide goal for participation by small business concerns at not less than 25 percent of the total value of all prime contracts for each fiscal year, and 40 percent of the total value of all subcontract awards for each fiscal year. This section would also require that agency goals related to small businesses concerns cannot be less than Government-wide goals.

Section 1632 would amend subsection (h) of the Small Business Act (15 U.S.C. 644) to clarify and expand the reporting requirements related to procurement contracts awarded to small businesses. The section would require the head of each Federal agency to submit an annual report to the Administrator of the Small Business Administration that describes the extent of participation by small businesses and requires the head of the agency to also provide the justification for the failure to achieve the goals established in accordance with the Act. This section would also require the Administrator to report to the President and to Congress, not later than 60 days after receiving such a report, the data provided by each head of agency in a manner that would improve visibility of agency performance related to small business goals and that would enhance oversight of such activity.

Section 1633 would require programs established for the development of senior executives to include training in Federal procurement requirements, including contracting requirements under the Small Business Act (15 U.S.C. 644). This section would also ensure that evaluation members of the Senior Executive Service (SES) responsible for acquisition, and other senior officials responsible for acquisition and SES members, as appropriate, include consideration of the agency's success in achieving small business contracting goals.

Section 1641 would amend the Small Business Act (15 U.S.C. 644) by authorizing the Administrator of the Small Business Administration to establish a mentor-protege program for small business concerns. This section would also require the Administrator to issue, subject to notice and comment, regulations with respect to mentor-protege programs at agencies other than the Department of Defense. The section would not apply to the Department of Defense mentor-protégé program or any mentoring assistance provided under a Small Business Innovation Research program or a Small Business Technology Transfer program.

Section 1642 would require the Comptroller General of the United States to conduct a study examining the potential affiliation between mentors and protégés and to update the study required by section 1345 of the Small Business Jobs Act of 2010 (P.L. 111-240).

Section 1651 would amend the Small Business Act (15 U.S.C. 631) by changing the limitations on subcontracting by small business concerns from cost to price and by allowing, in case of a contract that combines services, construction or supplies, the limitation on subcontracting to be determined by the category that is the greatest percentage of the contract amount. This section would also require that amounts expended by a covered small business concern on a subcontractor that is a similarly situated entity shall not be used in the determination of the subcontracting limitations.

Section 1652 would amend section 16 of the Small Business Act (15 U.S.C. 645) by establishing penalties for anyone who violates the subcontracting limitations established in section 45 of that Act.

Section 1654 would require the Administrator of the Small Business Administration to issue guidance with respect to compliance with the changes made to the Small Business Act by the amendments in this part no later than 180 days after the date of the enactment of this Act.

Section 1655 would amend subsection (d) of section 8 of the Small Business Act (15 U.S.C. 637) to require an offer or bidder responding to a Federal solicitation to submit a subcontracting report every 6 months during contract performance, an annual report during performance and a summary report within 30 days of the end of the contract. This section would also provide authority for a Procurement Center Representative (PCR) to determine if the subcontracting plan fails to provide the maximum practicable opportunity for small business concerns to participate and, allows the PCR to delay acceptance of the subcontracting plan for up to 30 days in that case. However, this section would provide an exception if the appropriate personnel of the contracting agency certify that the agency’s need for the property or services is of such an unusual and compelling urgency that the United States would be seriously injured unless the agency is permitted to accept the subcontracting plan. Furthermore, this section would not provide a Procurement Center Representative the authority to delay the award or performance of a Department of Defense contract.

Section 1656 would amend subsection (k) of section 8 of the Small Business Act (15 U.S.C. 637) by requiring notices of small business contracting opportunities to be posted on an appropriate Federal website as determined by the Administrator of the Small Business Administration.

Section 1657 would require the Administrator of the Small Business Administration to issue guidance with respect to changes made to the Small Business Act by amendments made in this Act, not later than 180 days after the date of the enactment of this Act.

Section 1658 would amend the Small Business Act (15 U.S.C. 631) by requiring a Federal agency, other than the Department of Defense, to convert a function of a small business concern to a performance by a Federal employee only after the agency has made publicly available the procedures and methodologies for determining which contracts will be studied for potential conversion, procedures and methodologies to evaluate contracts for inherently governmental or critical functions, and procedures and methodologies for estimating and comparing costs.

Section 1661 would amend section 3 of the Small Business Act (15 U.S.C. 632) to allow common size standards among related industries only if the Administrator of the Small Business Administration finds that the common size standard is appropriate for each industry independently. This section would also prohibit the Administrator from limiting the number of size standards, and would require the Administrator to assign the appropriate size standard to each North American Industrial Classification System Code. Furthermore, this section would require the Administrator to issue a notice of proposed rulemaking and include a detailed description of the industry, analysis of the competitive environment for that industry, the methodology used to develop the proposed size standard, and the anticipated effect of the proposed size standard in such notice.

Section 1671 would amend section 44 of the Small Business Act (15 U.S.C. 657q) by expanding and clarifying the definition of a bundled contract and eliminating procedures related to contract consolidation. This section would exclude contracts under $2 million dollars generally, or contracts under $5 million for construction, from the definition of a bundled contract. This section would also exclude contracts for major defense acquisition programs.

Section 1681 would amend subsection (d) of section 16 of the Small Business Act (15 U.S.C. 645) by clarifying that a firm or individual will not be held liable if acting in reliance on a written advisory opinion from outside counsel. This section is intended to allow the firm or individual to establish that they acted in good faith in attempting to comply with current laws related to small business concerns.

Section 1682 would amend section 5 of the Small Business Act (15 U.S.C. 634) to codify the existence of the Office of Hearing and Appeals within the Small Business Administration, which adjudicates matters related to firms accused of misrepresenting themselves as small businesses. This section would also require the designation of a Chief Hearing Officer and describe the qualifications and duties of such office.

Section 1683 would amend subsection (d) of section 15 of the Small Business Act (15 U.S.C. 644) by clarifying that misrepresentation as a small business concern is an independent basis for suspension or debarment of a contractor. This section would also require a revision to the Federal Acquisition Regulation and would require the Administrator of the Small Business Administration to develop and promulgate guidance implementing this section, and to publish standard operating procedures for suspension and debarment on its website.

Section 1684 would require the Administrator of the Small Business Administration to submit an annual report to the Senate Committee on Small Business and Entrepreneurship and the House Committee on Small Business on the suspension and debarment actions taken by the Administrator during the year preceding the year of submission of this report.

Section 1691 would amend subsection (k) of section 15 of the Small Business Act (15 U.S.C. 644) to ensure that an individual serving as the Director of an Office of Small and Disadvantaged Business Utilization (OSDBU) be a member of the Senior Executive Service, or in the case of an agency where the Chief Acquisition Officer and senior procurement executives are not members of the Senior Executive Service, the Director may be appointed to a position compensated at not less than the minimum rate of pay for grade GS-15 of the General Schedule. This section would also require that the head or deputy head of the agency conduct the performance appraisal for the Director of an OSDBU. Furthermore, this section amends subsection (k) by including additional requirements for the Director of an OSDBU and specifies minimum experience for an individual to be selected as a Director.

Section 1692 would amend section 7104(b) of the Federal Acquisition Streamlining Act of 1994 (15 U.S.C. 644 ) by requiring the Small Business Procurement Advisory Council to conduct reviews of each Office of Small and Disadvantage Business Utilization and to identify best practices for maximizing small business utilization in Federal contracting.

Section 1695 would amend section 694b of title 15, United States Code, by raising the maximum surety bond amount from $2 million to $6.5 million. This section would also allow the Administrator of the Small Business Administration to guarantee a surety bond of up to $10 million if a contracting officer of a Federal agency certifies that such a guarantee is necessary. The committee is aware that many contracts awarded by the Department of Defense are suitable for small business performance, but may exceed the proposed $6.5 million threshold for bonding. The committee believes that providing authority for the Administrator to guarantee a surety bond of up to $10 million in certain cases may increase small business contracting opportunities with the Department of Defense.

DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS

TITLE XXVIII—MILITARY CONSTRUCTION GENERAL

Section 2833 would strike a requirement of section 2207 of the Military Construction Authorization Act for Fiscal Year 2012 (division B of P.L. 112-81) to obtain a coordinated Federal agency plan that supports the civilian infrastructure on Guam, as well as a requirement in such Act to obtain tangible progress regarding the relocation of Marine Corps Air Station Futenma as a condition for moving forward with the Marine Corps realignment of forces to Guam.

Section 2845 would authorize the Secretary of the Army and the Secretary of the Interior to enter into a land exchange for 1.170 acres of real property at the Fort Lee Military Reservation, Virginia, and the Petersburg National Battlefield, Virginia.

Section 2864 would authorize the Secretary of the Army to establish a Gold Star Mothers National Monument in Arlington National Cemetery, Virginia, or on Federal lands that are under the jurisdiction of the Department of the Army and are located in the vicinity of Arlington National Cemetery.

Section 2865 would name the training and support complex at Fort Bragg, North Carolina, the "Colonel Robert Howard Training and Support Complex".

DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL SECURITY

Section 3120 would require that not more than $8 million may be obligated or expended for the Global Security through Science Partnerships Program (GSSP), formally known as the Global Initiatives for Proliferation Prevention (GIPP) program, until such time as the Secretary of Energy submits a report to the appropriate congressional committees to complete the GSSP program by the end of calendar year 2015 or justifies the need for this program to continue based on the threat and the program's effectiveness in responding to the continuing threat.

Section 3121 would limit funds that may be obligated or expended by the Secretary of Energy for fiscal year 2013 to not more than $7 million for a Center of Excellence on Nuclear Security in the People's Republic of China until the date on which the Secretary of Energy reviews, in coordination with the Secretary of Defense, and submits a report to Congress certifying that current and planned nonproliferation activities with China are not directly or indirectly contributing to the proliferation of nuclear weapons development and technology to other nations.

Section 3122 would provide a 2-year extension to the schedule for the disposition of weapons-usable plutonium at the Savannah River Site, located in Aiken, South Carolina.

Section 3144 would require the Administrator of the National Nuclear Security Administration (NNSA) to submit a report to the appropriate congressional committees no later than March 1 of each year from 2013 through 2015, detailing the Defense Nuclear Nonproliferation (DNN) program's budget, objectives, and metrics. This section would also require an identification and explanation of the foreign countries that are sharing the cost burden of implementing DNN programs, a description of the objectives and measurements for each DNN program, a description of the threat of the proliferation of nuclear weapons and how each DNN program counters these threats, and a description of how the programs are prioritized to meet the most urgent nonproliferation requirements.

Section 3155 would authorize $150 million for the development and demonstration of domestic national security-related enrichment technologies. Thirty days before making such funds available for these purposes, the Secretary of Energy would be required to certify to the congressional defense committees that such funds are needed for national security purposes and describe what those purposes are. If the Secretary chooses to make such funds available, this section would require the Secretary to utilize merit selection procedures and execute an agreement with the recipient of such funds. The agreement would include a requirement for the recipient to achieve specific technical criteria by dates not later than June 30, 2014, and require that immediately upon execution of such agreement that the recipient grant to the federal government a royalty-free, nonexclusive license in all enrichment-related intellectual property and associated technical data owned, licensed, or otherwise controller by the recipient. This section would also require that any existing agreement between the Secretary of Energy and the recipient be amended to permit the Secretary to use or allow third parties to use such intellectual property and associated technical data for national defense purposes. Furthermore, this section would require the recipient to surrender custody, possession, and control of all property or equipment owned or leased by the recipient that is associated with the enrichment technology should the Secretary determine that the technical criteria established by the Secretary in the agreement are not achieved by the agreed dates. Finally, this section would authorize the Secretary to establish, acquire, own, control, or otherwise participate in the management and operations of the recipient, and would apply the limitations of this section to funds authorized to be appropriated for development and demonstration of domestic national security related enrichment technology by this Act and any future Acts, and it would stipulate that the requirements of this section do not apply to the issuance of loan guarantees under section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513).

The annual defense bill is a key mechanism by which Congress fulfills one of its Article I, Section 8 constitutional responsibilities to provide for the common defense.     

In April 2011, the President announced his intention to seek over $400 billion in savings within the Department of Defense over the next decade. Subsequently, the Congress passed the Budget Control Act of 2011 (BCA) in August 2011. The BCA significantly reduced discretionary spending and for the military in particular. The President’s budget request for national defense for fiscal year 2013 is $51 billion less than the President’s estimated fiscal year 2013 requirement for national defense contained in last year’s budget request. The committee acknowledges that hard choices will have to be made to prioritize capabilities that allow our military to remain flexible, responsive, and decisive in any engagement. However, the committee recommends changes to the President’s proposed force structure, in order to preserve depth and capacity within the force.

Members of the Armed Services Committee scrutinized every aspect of the defense enterprise to find ways to accomplish this mission more effectively in today’s fiscal environment.  According to the Committee on Armed Services, this bill demonstrates the commitment of Chairman McKeon (R-CA) and members of the committee to:

• Restore fiscal sanity to a defense budget that is inconsistent with the threats America faces;
• Keep faith with America’s men and women in uniform;
• Align our military posture in a dangerous world; and
• Rebuild a force after a decade at war.

The FY13 National Defense Authorization Act (NDAA) begins to restore fiscal sanity to the defense budget, reflecting concern about America’s mounting debt, but also ensuring that our armed forces have the resources they need to meet an increasingly dangerous world. It also recognizes that the military has absorbed 50% of deficit reduction efforts to date, though it comprises only 20% of the federal budget.

The FY13 NDAA provides our war fighters and their families with the care and support they need, deserve, and have earned; while ensuring that proposed drawdown plans do not cut to the heart of the Army and Marine Corps.

The NDAA ensures that America’s military is robust, flexible, and capable. The bill will provide our warfighters with the time, resources, and authorities they need to win the war in Afghanistan and continue to prosecute the wider War on Terror.

The bill restores and retains vital systems, platforms, and authorities needed to maintain America’s combat power after a decade of war while declining to take up Administration requests, such as two rounds of base closure, which could damage vital military infrastructure.

The Congressional Budget Office (CBO) estimates that H.R. 4310 would authorize appropriations totaling $637 billion for fiscal year 2013; the authorization would result in outlays of $626 billion over the 2013-2017 period.

The bill also contains provisions that would increase or decrease costs of discretionary defense programs in 2014 and future years. Those implicit authorizations would affect force structure, DoD compensation and benefits, DoD’s use of multiyear procurement authority, and other programs and activities. CBO has analyzed the costs of a select number of those authorizations and estimates they would raise net costs by about $57 billion over the 2014-2017 period, assuming appropriation of the necessary amounts for those years. Those amounts are not included in the totals in the previous paragraph because funding for those activities would be covered by specific authorizations in future years.

H.R. 4310 contains provisions that would increase or decrease components of direct spending. CBO estimates that, on net, those changes would decrease direct spending by $554 million over the 2013-2017 period and by $44 million over the 2013-2022 period. Enacting the bill would not affect revenues. Because enacting the legislation would affect direct spending, pay-as-you-go procedures apply.

The full CBO score can be found here.