110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-478
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INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2008
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December 6, 2007.--Ordered to be printed
_______
Mr. Reyes, from the committee of conference, submitted the following
CONFERENCE REPORT
[To accompany H.R. 2082]
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
2082), to authorize appropriations for fiscal year 2008 for
intelligence and intelligence-related activities of the United
States Government, the Community Management Account, and the
Central Intelligence Agency Retirement and Disability System,
and for other purposes, having met, after full and free
conference, have agreed to recommend and do recommend to their
respective Houses as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the
``Intelligence Authorization Act for Fiscal Year 2008''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS
Sec. 101. Authorization of appropriations.
Sec. 102. Classified Schedule of Authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Intelligence Community Management Account.
Sec. 105. Specific authorization of funds within the National
Intelligence Program for which fiscal year 2008 appropriations
exceed amounts authorized.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
Sec. 201. Authorization of appropriations.
Sec. 202. Technical modification to mandatory retirement provision of
the Central Intelligence Agency Retirement Act.
TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS
Subtitle A--Personnel Matters
Sec. 301. Increase in employee compensation and benefits authorized by
law.
Sec. 302. Enhanced flexibility in nonreimbursable details to elements of
the intelligence community.
Sec. 303. Multi-level security clearances.
Sec. 304. Pay authority for critical positions.
Sec. 305. Delegation of authority for travel on common carriers for
intelligence collection personnel.
Sec. 306. Annual personnel level assessments for the intelligence
community.
Sec. 307. Comprehensive report on intelligence community contractors.
Sec. 308. Report on proposed pay for performance intelligence community
personnel management system.
Sec. 309. Report on plans to increase diversity within the intelligence
community.
Subtitle B--Acquisition Matters
Sec. 311. Vulnerability assessments of major systems.
Sec. 312. Business enterprise architecture and business system
modernization for the intelligence community.
Sec. 313. Reports on the acquisition of major systems.
Sec. 314. Excessive cost growth of major systems.
Subtitle C--Other Matters
Sec. 321. Restriction on conduct of intelligence activities.
Sec. 322. Clarification of definition of intelligence community under
the National Security Act of 1947.
Sec. 323. Modification of availability of funds for different
intelligence activities.
Sec. 324. Protection of certain national security information.
Sec. 325. Extension of authority to delete information about receipt and
disposition of foreign gifts and decorations.
Sec. 326. Report on compliance with the Detainee Treatment Act of 2005
and related provisions of the Military Commissions Act of
2006.
Sec. 327. Limitation on interrogation techniques.
Sec. 328. Limitation on use of funds.
Sec. 329. Incorporation of reporting requirements.
Sec. 330. Repeal of certain reporting requirements.
TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY
Subtitle A--Office of the Director of National Intelligence
Sec. 401. Clarification of limitation on colocation of the Office of the
Director of National Intelligence.
Sec. 402. Membership of the Director of National Intelligence on the
Transportation Security Oversight Board.
Sec. 403. Additional duties of the Director of Science and Technology.
Sec. 404. Leadership and location of certain offices and officials.
Sec. 405. Plan to implement recommendations of the data center energy
efficiency reports.
Sec. 406. Comprehensive listing of special access programs.
Sec. 407. Reports on the nuclear programs of Iran and North Korea.
Sec. 408. Requirements for accountability reviews by the Director of
National Intelligence.
Sec. 409. Modification of limitation on delegation by the Director of
National Intelligence of the protection of intelligence
sources and methods.
Sec. 410. Authorities for intelligence information sharing.
Sec. 411. Authorities of the Director of National Intelligence for
interagency funding.
Sec. 412. Title of Chief Information Officer of the Intelligence
Community.
Sec. 413. Inspector General of the Intelligence Community.
Sec. 414. Annual report on foreign language proficiency in the
intelligence community.
Sec. 415. Director of National Intelligence report on retirement
benefits for former employees of Air America.
Sec. 416. Space intelligence.
Sec. 417. Operational files in the Office of the Director of National
Intelligence.
Sec. 418. Inapplicability of Federal Advisory Committee Act to advisory
committees of the Office of the Director of National
Intelligence.
Sec. 419. Applicability of the Privacy Act to the Director of National
Intelligence and the Office of the Director of National
Intelligence.
Sec. 420. Repeal of certain authorities relating to the Office of the
National Counterintelligence Executive.
Subtitle B--Central Intelligence Agency
Sec. 431. Review of covert action programs by Inspector General of the
Central Intelligence Agency.
Sec. 432. Inapplicability to Director of the Central Intelligence Agency
of requirement for annual report on progress in auditable
financial statements.
Sec. 433. Additional functions and authorities for protective personnel
of the Central Intelligence Agency.
Sec. 434. Technical amendments relating to titles of certain Central
Intelligence Agency positions.
Sec. 435. Clarifying amendments relating to section 105 of the
Intelligence Authorization Act for Fiscal Year 2004.
Subtitle C--Defense Intelligence Components
Sec. 441. Enhancement of National Security Agency training program.
Sec. 442. Codification of authorities of National Security Agency
protective personnel.
Sec. 443. Inspector general matters.
Sec. 444. Confirmation of appointment of heads of certain components of
the intelligence community.
Sec. 445. Clarification of national security missions of National
Geospatial-Intelligence Agency for analysis and dissemination
of certain intelligence information.
Sec. 446. Security clearances in the National Geospatial-Intelligence
Agency.
Subtitle D--Other Elements
Sec. 451. Clarification of inclusion of Coast Guard and Drug Enforcement
Administration as elements of the intelligence community.
TITLE V--OTHER MATTERS
Subtitle A--General Intelligence Matters
Sec. 501. Extension of National Commission for the Review of the
Research and Development Programs of the United States
Intelligence Community.
Sec. 502. Report on intelligence activities.
Sec. 503. Aerial reconnaissance platforms.
Subtitle B--Technical Amendments
Sec. 511. Technical amendments to title 10, United States Code, arising
from enactment of the Intelligence Reform and Terrorism
Prevention Act of 2004.
Sec. 512. Technical amendment to the Central Intelligence Agency Act of
1949.
Sec. 513. Technical amendments relating to the multiyear National
Intelligence Program.
Sec. 514. Technical clarification of certain references to Joint
Military Intelligence Program and Tactical Intelligence and
Related Activities.
Sec. 515. Technical amendments to the National Security Act of 1947.
Sec. 516. Technical amendments to the Intelligence Reform and Terrorism
Prevention Act of 2004.
Sec. 517. Technical amendments to the Executive Schedule.
SEC. 2. DEFINITIONS.
In this Act:
(1) Congressional intelligence committees.--The
term ``congressional intelligence committees'' means--
(A) the Select Committee on Intelligence of
the Senate; and
(B) the Permanent Select Committee on
Intelligence of the House of Representatives.
(2) Element of the intelligence community.--The
term ``element of the intelligence community'' means an
element of the intelligence community listed in or
designated under section 3(4) of the National Security
Act of 1947 (50 U.S.C. 401a(4)).
(3) Intelligence community.--The term
``intelligence community'' has the meaning given that
term in section 3(4) of the National Security Act of
1947 (50 U.S.C. 401a(4)).
TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for fiscal
year 2008 for the conduct of the intelligence and intelligence-
related activities of the following elements of the United
States Government:
(1) The Office of the Director of National
Intelligence.
(2) The Central Intelligence Agency.
(3) The Department of Defense.
(4) The Defense Intelligence Agency.
(5) The National Security Agency.
(6) The Department of the Army, the Department of
the Navy, and the Department of the Air Force.
(7) The Coast Guard.
(8) The Department of State.
(9) The Department of the Treasury.
(10) The Department of Energy.
(11) The Department of Justice.
(12) The Federal Bureau of Investigation.
(13) The Drug Enforcement Administration.
(14) The National Reconnaissance Office.
(15) The National Geospatial-Intelligence Agency.
(16) The Department of Homeland Security.
SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.
(a) Specifications of Amounts and Personnel Levels.--The
amounts authorized to be appropriated under section 101 and,
subject to section 103, the authorized personnel ceilings as of
September 30, 2008, for the conduct of the intelligence
activities of the elements listed in paragraphs (1) through
(16) of section 101, are those specified in the classified
Schedule of Authorizations prepared to accompany the conference
report on the bill H.R. 2082 of the One Hundred Tenth Congress.
(b) Availability of Classified Schedule of
Authorizations.--The classified Schedule of Authorizations
referred to in subsection (a) shall be made available to the
Committee on Appropriations of the Senate, the Committee on
Appropriations of the House of Representatives, and to the
President. The President shall provide for suitable
distribution of the Schedule, or of appropriate portions of the
Schedule, within the executive branch.
SEC. 103. PERSONNEL CEILING ADJUSTMENTS.
(a) Authority for Increases.--With the approval of the
Director of the Office of Management and Budget, the Director
of National Intelligence may authorize employment of civilian
personnel in excess of the number authorized for fiscal year
2008 by the classified Schedule of Authorizations referred to
in section 102(a) if the Director of National Intelligence
determines that such action is necessary to the performance of
important intelligence functions, except that the number of
personnel employed in excess of the number authorized under
such section may not, for any element of the intelligence
community, exceed 3 percent of the number of civilian personnel
authorized under such Schedule for such element.
(b) Transition to Full-Time Equivalency.--
(1) Treatment for fiscal year 2008.--For fiscal
year 2008, the Director of National Intelligence, in
consultation with the head of each element of the
intelligence community, may treat the personnel
ceilings authorized under the classified Schedule of
Authorizations referred to in section 102(a) as full-
time equivalents.
(2) Consideration.--In exercising the authority
described in paragraph (1), the Director of National
Intelligence may consider the circumstances under which
civilian employees are employed and accounted for at
each element of the intelligence community in--
(A) a student program, trainee program, or
similar program;
(B) reserve corps or equivalent status as a
reemployed annuitant or other employee;
(C) a joint duty rotational assignment; or
(D) other full-time or part-time status.
(3) Notification to congress.--Not later than 90
days after the date of the enactment of this Act, the
Director of National Intelligence shall notify the
congressional intelligence committees in writing of--
(A) the policies for implementing the
authorities described in paragraphs (1) and
(2); and
(B) the number of all civilian personnel
employed by, or anticipated to be employed by,
each element of the intelligence community
during fiscal year 2008 accounted for--
(i) by position;
(ii) by full-time equivalency; or
(iii) by any other method.
(4) Treatment for fiscal year 2009.--The Director
of National Intelligence shall express the personnel
levels for all civilian employees for each element of
the intelligence community in the congressional budget
justifications submitted for fiscal year 2009 as full-
time equivalent positions.
(c) Authority for Conversion of Activities Performed by
Contractors.--In addition to the authority in subsection (a),
upon a determination by the head of an element of the
intelligence community that activities currently being
performed by contractor employees should be performed by
government employees, the concurrence of the Director of
National Intelligence in such determination, and the approval
of the Director of the Office of Management and Budget, the
Director of National Intelligence may authorize for that
purpose employment of additional full-time equivalent personnel
in such element of the intelligence community equal to the
number that is--
(1) in the case of personnel of Office of the
Director of National Intelligence, not more than 5
percent of the number of such personnel authorized for
fiscal year 2008 by the classified Schedule of
Authorizations referred to in section 102(a); or
(2) except as provided in paragraph (1), not more
than 10 percent of the number authorized for fiscal
year 2008 by the classified Schedule of Authorizations
referred to in section 102(a).
(d) Notice to Congressional Intelligence Committees.--The
Director of National Intelligence shall notify the
congressional intelligence committees in writing at least 15
days prior to each exercise of an authority described in
subsection (a) or (c).
SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.
(a) Authorization of Appropriations.--There is authorized
to be appropriated for the Intelligence Community Management
Account of the Director of National Intelligence for fiscal
year 2008 the sum of $734,126,000. Within such amount, funds
identified in the classified Schedule of Authorizations
referred to in section 102(a) for advanced research and
development shall remain available until September 30, 2009.
(b) Authorized Personnel Levels.--The elements within the
Intelligence Community Management Account of the Director of
National Intelligence are authorized 952 full-time or full-time
equivalent personnel as of September 30, 2008. Personnel
serving in such elements may be permanent employees of the
Office of the Director of National Intelligence or personnel
detailed from other elements of the United States Government.
(c) Construction of Authorities.--The authorities available
to the Director of National Intelligence under section 103 are
also available to the Director for the adjustment of personnel
levels within the Intelligence Community Management Account.
(d) Classified Authorizations.--
(1) Authorization of appropriations.--In addition
to amounts authorized to be appropriated for the
Intelligence Community Management Account by subsection
(a), there are authorized to be appropriated for the
Community Management Account for fiscal year 2008 such
additional amounts as are specified in the classified
Schedule of Authorizations referred to in section
102(a). Such additional amounts for advanced research
and development shall remain available until September
30, 2009.
(2) Authorization of personnel.--In addition to the
personnel authorized by subsection (b) for elements of
the Intelligence Community Management Account as of
September 30, 2008, there are authorized such
additional personnel for the Community Management
Account as of that date as are specified in the
classified Schedule of Authorizations referred to in
section 102(a).
(e) National Drug Intelligence Center.--
(1) In general.--Of the amount authorized to be
appropriated in subsection (a), $39,000,000 shall be
available for the National Drug Intelligence Center.
Within such amount, funds provided for research,
development, testing, and evaluation purposes shall
remain available until September 30, 2009, and funds
provided for procurement purposes shall remain
available until September 30, 2010.
(2) Transfer of funds.--The Director of National
Intelligence shall transfer to the Attorney General
funds available for the National Drug Intelligence
Center under paragraph (1). The Attorney General shall
utilize funds so transferred for the activities of the
National Drug Intelligence Center.
(3) Limitation.--Amounts available for the National
Drug Intelligence Center may not be used for purposes
of exercising police, subpoena, or law enforcement
powers or internal security functions.
(4) Authority.--Notwithstanding any other provision
of law, the Attorney General shall retain full
authority over the operations of the National Drug
Intelligence Center.
SEC. 105. SPECIFIC AUTHORIZATION OF FUNDS WITHIN THE NATIONAL
INTELLIGENCE PROGRAM FOR WHICH FISCAL YEAR 2008
APPROPRIATIONS EXCEED AMOUNTS AUTHORIZED.
Funds appropriated for an intelligence or intelligence-
related activity within the National Intelligence Program for
fiscal year 2008 in excess of the amount specified for such
activity in the classified Schedule of Authorizations referred
to in section 102(a) shall be deemed to be specifically
authorized by Congress for purposes of section 504(a)(3) of the
National Security Act of 1947 (50 U.S.C. 414(a)(3)).
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated for the Central
Intelligence Agency Retirement and Disability Fund for fiscal
year 2008 the sum of $262,500,000.
SEC. 202. TECHNICAL MODIFICATION TO MANDATORY RETIREMENT PROVISION OF
THE CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT.
Subparagraph (A) of section 235(b)(1) of the Central
Intelligence Agency Retirement Act (50 U.S.C. 2055(b)(1)) is
amended by striking ``receiving compensation under the Senior
Intelligence Service pay schedule at the rate'' and inserting
``who is at the Senior Intelligence Service rank''.
TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS
Subtitle A--Personnel Matters
SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY
LAW.
Appropriations authorized by this Act for salary, pay,
retirement, and other benefits for Federal employees may be
increased by such additional or supplemental amounts as may be
necessary for increases in such compensation or benefits
authorized by law.
SEC. 302. ENHANCED FLEXIBILITY IN NONREIMBURSABLE DETAILS TO ELEMENTS
OF THE INTELLIGENCE COMMUNITY.
Except as provided in section 113 of the National Security
Act of 1947 (50 U.S.C. 404h) and section 904(g)(2) of the
Counterintelligence Enhancement Act of 2002 (title IX of Public
Law 107-306; 50 U.S.C. 402c(g)(2)) and notwithstanding any
other provision of law, in any fiscal year after fiscal year
2007 an officer or employee of the United States or member of
the Armed Forces may be detailed to the staff of an element of
the intelligence community funded through the Community
Management Account from another element of the United States
Government on a reimbursable or nonreimbursable basis, as
jointly agreed to by the Director of National Intelligence and
the head of the detailing element (or the designees of such
officials), for a period not to exceed 2 years.
SEC. 303. MULTI-LEVEL SECURITY CLEARANCES.
(a) In General.--Section 102A of the National Security Act
of 1947 (50 U.S.C. 403-1) is amended by adding at the end the
following new subsection:
``(s) Multi-Level Security Clearances.--The Director of
National Intelligence shall be responsible for ensuring that
the elements of the intelligence community adopt a multi-level
security clearance approach in order to enable the intelligence
community to make more effective and efficient use of persons
proficient in foreign languages or with cultural, linguistic,
or other subject matter expertise that is critical to national
security.''.
(b) Implementation.--The Director of National Intelligence
shall issue guidelines to the intelligence community on the
implementation of subsection (s) of section 102A of the
National Security Act of 1947, as added by subsection (a), not
later than 180 days after the date of the enactment of this
Act.
SEC. 304. PAY AUTHORITY FOR CRITICAL POSITIONS.
Section 102A of the National Security Act of 1947 (50
U.S.C. 403-1), as amended by section 303 of this Act, is
further amended by adding at the end the following new
subsection:
``(t) Pay Authority for Critical Positions.--(1)
Notwithstanding any pay limitation established under any other
provision of law applicable to employees in elements of the
intelligence community, the Director of National Intelligence
may, in consultation with the Director of the Office of
Personnel Management and the Director of the Office of
Management and Budget, grant authority to fix the rate of basic
pay for 1 or more positions within the intelligence community
at a rate in excess of any applicable limitation, subject to
the provisions of this subsection. The exercise of authority so
granted is at the discretion of the head of the department or
agency employing the individual in a position covered by such
authority, subject to the provisions of this subsection and any
conditions established by the Director of National Intelligence
when granting such authority.
``(2) Authority under this subsection may be granted or
exercised--
``(A) only with respect to a position which
requires an extremely high level of expertise and is
critical to successful accomplishment of an important
mission; and
``(B) only to the extent necessary to recruit or
retain an individual exceptionally well qualified for
the position.
``(3) A rate of basic pay may not be fixed under this
subsection at a rate greater than the rate payable for level II
of the Executive Schedule under section 5312 of title 5, United
States Code, except upon written approval of the Director of
National Intelligence or as otherwise authorized by law.
``(4) A rate of basic pay may not be fixed under this
subsection at a rate greater than the rate payable for level I
of the Executive Schedule under section 5311 of title 5, United
States Code, except upon written approval of the President in
response to a request by the Director of National Intelligence
or as otherwise authorized by law.
``(5) Any grant of authority under this subsection for a
position shall terminate at the discretion of the Director of
National Intelligence.''.
SEC. 305. DELEGATION OF AUTHORITY FOR TRAVEL ON COMMON CARRIERS FOR
INTELLIGENCE COLLECTION PERSONNEL.
(a) Delegation of Authority.--Section 116(b) of the
National Security Act of 1947 (50 U.S.C. 404k(b)) is amended--
(1) by inserting ``(1)'' before ``The Director'';
(2) in paragraph (1), as designated by paragraph
(1) of this subsection, by striking ``may only
delegate'' and all that follows and inserting ``may
delegate the authority in subsection (a) to the head of
any other element of the intelligence community.''; and
(3) by adding at the end the following new
paragraph:
``(2) The head of an element of the intelligence community
to whom the authority in subsection (a) is delegated pursuant
to paragraph (1) may further delegate such authority to such
senior officials of such element as are specified in guidelines
prescribed by the Director of National Intelligence for
purposes of this paragraph.''.
(b) Submission of Guidelines to Congress.--Not later than 6
months after the date of the enactment of this Act, the
Director of National Intelligence shall prescribe and submit to
the congressional intelligence committees the guidelines
referred to in paragraph (2) of section 116(b) of the National
Security Act of 1947, as added by subsection (a).
SEC. 306. ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR THE INTELLIGENCE
COMMUNITY.
(a) In General.--Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.) is amended by inserting after
section 506A the following new section:
``SEC. 506B. ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR THE INTELLIGENCE
COMMUNITY.
``(a) Requirement To Provide.--The Director of National
Intelligence shall, in consultation with the head of the
element of the intelligence community concerned, prepare an
annual personnel level assessment for such element of the
intelligence community that assesses the personnel levels for
each such element for the fiscal year following the fiscal year
in which the assessment is submitted.
``(b) Schedule.--Each assessment required by subsection (a)
shall be submitted to the congressional intelligence committees
each year along with the budget submitted by the President
under section 1105 of title 31, United States Code.
``(c) Contents.--Each assessment required by subsection (a)
submitted during a fiscal year shall contain, at a minimum, the
following information for the element of the intelligence
community concerned:
``(1) The budget submission for personnel costs for
the upcoming fiscal year.
``(2) The dollar and percentage increase or
decrease of such costs as compared to the personnel
costs of the current fiscal year.
``(3) The dollar and percentage increase or
decrease of such costs as compared to the personnel
costs during the prior 5 fiscal years.
``(4) The number of personnel positions requested
for the upcoming fiscal year.
``(5) The numerical and percentage increase or
decrease of such number as compared to the number of
personnel positions of the current fiscal year.
``(6) The numerical and percentage increase or
decrease of such number as compared to the number of
personnel positions during the prior 5 fiscal years.
``(7) The best estimate of the number and costs of
contractors to be funded by the element for the
upcoming fiscal year.
``(8) The numerical and percentage increase or
decrease of such costs of contractors as compared to
the best estimate of the costs of contractors of the
current fiscal year.
``(9) The numerical and percentage increase or
decrease of such costs of contractors as compared to
the cost of contractors, and the number of contractors,
during the prior 5 fiscal years.
``(10) A written justification for the requested
personnel and contractor levels.
``(11) The number of intelligence collectors and
analysts employed or contracted by each element of the
intelligence community.
``(12) A list of all contractors that have been the
subject of an investigation completed by the Inspector
General of any element of the intelligence community
during the preceding fiscal year, or are or have been
the subject of an investigation by such an Inspector
General during the current fiscal year.
``(13) A statement by the Director of National
Intelligence that, based on current and projected
funding, the element concerned will have sufficient--
``(A) internal infrastructure to support
the requested personnel and contractor levels;
``(B) training resources to support the
requested personnel levels; and
``(C) funding to support the administrative
and operational activities of the requested
personnel levels.''.
(b) Clerical Amendment.--The table of contents in the first
section of that Act is amended by inserting after the item
relating to section 506A the following new item:
``Sec. 506B. Annual personnel levels assessment for the intelligence
community.''.
SEC. 307. COMPREHENSIVE REPORT ON INTELLIGENCE COMMUNITY CONTRACTORS.
(a) Requirement for Report.--Not later than March 31, 2008,
the Director of National Intelligence shall submit to the
congressional intelligence committees a report describing the
personal services activities performed by contractors across
the intelligence community, the impact of such contractors on
the intelligence community workforce, plans for conversion of
contractor employment into government employment, and the
accountability mechanisms that govern the performance of such
contractors.
(b) Content.--
(1) In general.--The report submitted under
subsection (a) shall include--
(A) a description of any relevant
regulations or guidance issued by the Director
of National Intelligence or the head of an
element of the intelligence community relating
to minimum standards required regarding the
hiring, training, security clearance, and
assignment of contract personnel and how those
standards may differ from those for government
employees performing substantially similar
functions;
(B) an identification of contracts where
the contractor is providing a substantially
similar functions to a government employee;
(C) an assessment of costs incurred or
savings achieved by awarding contracts for the
performance of such functions referred to in
subparagraph (B) instead of using full-time
employees of the elements of the intelligence
community to perform such functions;
(D) an assessment of the appropriateness of
using contractors to perform the activities
described in paragraph (2);
(E) an estimate of the number of contracts,
and the number of personnel working under such
contracts, related to the performance of
activities described in paragraph (2);
(F) a comparison of the compensation of
contract employees and government employees
performing substantially similar functions;
(G) an analysis of the attrition of
government personnel for contractor positions
that provide substantially similar functions;
(H) a description of positions that will be
converted from contractor employment to
government employment under the authority
described in section 103(c) of this Act and the
justification for such conversion;
(I) an analysis of accountability
mechanisms within services contracts awarded
for intelligence activities by each element of
the intelligence community during fiscal years
2006 and 2007;
(J) an analysis of procedures in use in the
intelligence community for conducting oversight
of contractors to ensure identification and
prosecution of criminal violations, financial
waste, fraud, or other abuses committed by
contractors or contract personnel; and
(K) an identification of best practices of
accountability mechanisms within services
contracts.
(2) Activities.--Activities described in this
paragraph are the following:
(A) Intelligence collection.
(B) Intelligence analysis.
(C) Covert actions, including rendition,
detention, and interrogation activities.
SEC. 308. REPORT ON PROPOSED PAY FOR PERFORMANCE INTELLIGENCE COMMUNITY
PERSONNEL MANAGEMENT SYSTEM.
(a) Prohibition on Pay for Performance Until Report.--The
Director of National Intelligence and the head of an element of
the intelligence community may not implement a plan that
provides compensation to personnel of that element of the
intelligence community based on performance until the date that
is 45 days after the date on which the Director of National
Intelligence submits a report for that element under subsection
(b).
(b) Report.--The Director of National Intelligence shall
submit to Congress a report on performance-based compensation
for each element of the intelligence community, including, with
respect to each such element--
(1) an implementation time line which includes
target dates for completion of--
(A) the development of performance
appraisal plans;
(B) establishment of oversight and appeal
mechanisms;
(C) deployment of information technology
systems;
(D) management training;
(E) employee training;
(F) compensation transition; and
(G) full operational capacity;
(2) an estimated budget for the implementation of
the performance-based compensation system;
(3) an evaluation plan to monitor the
implementation of the performance-based compensation
system and to improve and modify such system;
(4) written standards for measuring the performance
of employees;
(5) a description of the performance-based
compensation system, including budget oversight
mechanisms to ensure sufficient funds to pay employees
for bonuses;
(6) a description of internal and external
accountability mechanisms to ensure the fair treatment
of employees;
(7) a plan for initial and ongoing training for
senior executives, managers, and employees;
(8) a description of the role of any advisory
committee or other mechanism designed to gather the
input of employees relating to the creation and
implementation of the system;
(9) an assessment of the impact of the performance-
based compensation system on women, minorities, persons
with disabilities, and veterans; and
(10) an assessment of the consistency of the plan
described in subsection (a) for such element with the
plans of the Director of National Intelligence for a
performance-based compensation system for the
intelligence community.
SEC. 309. REPORT ON PLANS TO INCREASE DIVERSITY WITHIN THE INTELLIGENCE
COMMUNITY.
(a) Requirement for Report.--Not later than March 31, 2008,
the Director of National Intelligence, in coordination with the
heads of the elements of the intelligence community, shall
submit to the congressional intelligence committees a report on
the plans of each element to increase diversity within the
intelligence community.
(b) Content.--The report required by subsection (a) shall
include specific implementation plans to increase diversity
within each element of the intelligence community, including--
(1) specific implementation plans for each such
element designed to achieve the goals articulated in
the strategic plan of the Director of National
Intelligence on equal employment opportunity and
diversity;
(2) specific plans and initiatives for each such
element to increase recruiting and hiring of diverse
candidates;
(3) specific plans and initiatives for each such
element to improve retention of diverse Federal
employees at the junior, midgrade, senior, and
management levels;
(4) a description of specific diversity awareness
training and education programs for senior officials
and managers of each such element; and
(5) a description of performance metrics to measure
the success of carrying out the plans, initiatives, and
programs described in paragraphs (1) through (4).
Subtitle B--Acquisition Matters
SEC. 311. VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS.
(a) In General.--Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by section 306 of this
Act, is further amended by inserting after section 506B, as
added by section 306(a), the following new section:
``VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS
``Sec. 506C. (a) Initial Vulnerability Assessments.--The
Director of National Intelligence shall conduct an initial
vulnerability assessment for any major system and its
significant items of supply that is proposed for inclusion in
the National Intelligence Program prior to completion of
Milestone B or an equivalent acquisition decision. The initial
vulnerability assessment of a major system and its significant
items of supply shall, at a minimum, use an analysis-based
approach to--
``(1) identify vulnerabilities;
``(2) define exploitation potential;
``(3) examine the system's potential effectiveness;
``(4) determine overall vulnerability; and
``(5) make recommendations for risk reduction.
``(b) Subsequent Vulnerability Assessments.--(1) The
Director of National Intelligence shall conduct subsequent
vulnerability assessments of each major system and its
significant items of supply within the National Intelligence
Program--
``(A) periodically throughout the life span of the
major system;
``(B) whenever the Director determines that a
change in circumstances warrants the issuance of a
subsequent vulnerability assessment; or
``(C) upon the request of a congressional
intelligence committee.
``(2) Any subsequent vulnerability assessment of a major
system and its significant items of supply shall, at a minimum,
use an analysis-based approach and, if applicable, a testing-
based approach, to monitor the exploitation potential of such
system and reexamine the factors described in paragraphs (1)
through (5) of subsection (a).
``(c) Major System Management.--The Director of National
Intelligence shall give due consideration to the vulnerability
assessments prepared for a given major system when developing
and determining the annual consolidated National Intelligence
Program budget.
``(d) Congressional Oversight.--(1) The Director of
National Intelligence shall provide to the congressional
intelligence committees a copy of each vulnerability assessment
conducted under subsection (a) or (b) not later than 10 days
after the date of the completion of such assessment.
``(2) The Director of National Intelligence shall provide
the congressional intelligence committees with a proposed
schedule for subsequent vulnerability assessments of a major
system under subsection (b) when providing such committees with
the initial vulnerability assessment under subsection (a) of
such system as required by subsection (d).
``(e) Definitions.--In this section:
``(1) The term `items of supply'--
``(A) means any individual part, component,
subassembly, assembly, or subsystem integral to
a major system, and other property which may be
replaced during the service life of the major
system, including spare parts and replenishment
parts; and
``(B) does not include packaging or
labeling associated with shipment or
identification of items.
``(2) The term `major system' has the meaning given
that term in section 506A(e).
``(3) The term `Milestone B' means a decision to
enter into system development and demonstration
pursuant to guidance prescribed by the Director of
National Intelligence.
``(4) The term `vulnerability assessment' means the
process of identifying and quantifying vulnerabilities
in a major system and its significant items of
supply.''.
(b) Clerical Amendment.--The table of contents in the first
section of the National Security Act of 1947, as amended by
section 306 of this Act, is further amended by inserting after
the item relating to section 506B, as added by section 306(b),
the following:
``Sec. 506C. Vulnerability assessments of major systems.''.
SEC. 312. BUSINESS ENTERPRISE ARCHITECTURE AND BUSINESS SYSTEM
MODERNIZATION FOR THE INTELLIGENCE COMMUNITY.
(a) Business Enterprise Architecture and Business System
Modernization.--
(1) In general.--Title V of the National Security
Act of 1947 (50 U.S.C. 413 et seq.), as amended by
sections 306 and 311 of this Act, is further amended by
inserting after section 506C, as added by section
311(a), the following new section:
``INTELLIGENCE COMMUNITY BUSINESS SYSTEMS, ARCHITECTURE,
ACCOUNTABILITY, AND MODERNIZATION
``Sec. 506D. (a) Limitation on Obligation of Funds for
Intelligence Community Business System Modernization.--(1)
After April 1, 2008, no funds appropriated to any element of
the intelligence community may be obligated for an intelligence
community business system modernization described in paragraph
(2) unless--
``(A) the approval authority designated by the
Director of National Intelligence under subsection
(c)(2) makes the certification described in paragraph
(3) with respect to the intelligence community business
system modernization; and
``(B) the certification is approved by the
Intelligence Community Business Systems Management
Committee established under subsection (f).
``(2) An intelligence community business system
modernization described in this paragraph is an intelligence
community business system modernization that--
``(A) will have a total cost in excess of
$1,000,000; and
``(B) will receive more than 50 percent of the
funds for such cost from amounts appropriated for the
National Intelligence Program.
``(3) The certification described in this paragraph for an
intelligence community business system modernization is a
certification, made by the approval authority designated by the
Director under subsection (c)(2) to the Intelligence Community
Business Systems Management Committee, that the intelligence
community business system modernization--
``(A) complies with the enterprise architecture
under subsection (b); or
``(B) is necessary--
``(i) to achieve a critical national
security capability or address a critical
requirement in an area such as safety or
security; or
``(ii) to prevent a significant adverse
effect on a project that is needed to achieve
an essential capability, taking into
consideration the alternative solutions for
preventing such adverse effect.
``(4) The obligation of funds for an intelligence community
business system modernization that does not comply with the
requirements of this subsection shall be treated as a violation
of section 1341(a)(1)(A) of title 31, United States Code.
``(b) Enterprise Architecture for Intelligence Community
Business Systems.--(1) The Director of National Intelligence
shall, acting through the Intelligence Community Business
Systems Management Committee established under subsection (f),
develop and implement an enterprise architecture to cover all
intelligence community business systems, and the functions and
activities supported by such business systems. The enterprise
architecture shall be sufficiently defined to effectively
guide, constrain, and permit implementation of interoperable
intelligence community business system solutions, consistent
with applicable policies and procedures established by the
Director of the Office of Management and Budget.
``(2) The enterprise architecture under paragraph (1) shall
include the following:
``(A) An information infrastructure that, at a
minimum, will enable the intelligence community to--
``(i) comply with all Federal accounting,
financial management, and reporting
requirements;
``(ii) routinely produce timely, accurate,
and reliable financial information for
management purposes;
``(iii) integrate budget, accounting, and
program information and systems; and
``(iv) provide for the systematic
measurement of performance, including the
ability to produce timely, relevant, and
reliable cost information.
``(B) Policies, procedures, data standards, and
system interface requirements that apply uniformly
throughout the intelligence community.
``(c) Responsibilities for Intelligence Community Business
System Modernization.--(1) The Director of National
Intelligence shall be responsible for review, approval, and
oversight of the planning, design, acquisition, deployment,
operation, and maintenance of an intelligence community
business system modernization if more than 50 percent of the
cost of the intelligence community business system
modernization is funded by amounts appropriated for the
National Intelligence Program.
``(2) The Director shall designate 1 or more appropriate
officials of the intelligence community to be responsible for
making certifications with respect to intelligence community
business system modernizations under subsection (a)(3).
``(d) Intelligence Community Business System Investment
Review.--(1) The approval authority designated under subsection
(c)(2) shall establish and implement, not later than March 31,
2008, an investment review process for the review of the
planning, design, acquisition, development, deployment,
operation, maintenance, modernization, project cost, benefits,
and risks of the intelligence community business systems for
which the approval authority is responsible.
``(2) The investment review process under paragraph (1)
shall--
``(A) meet the requirements of section 11312 of
title 40, United States Code; and
``(B) specifically set forth the responsibilities
of the approval authority under such review process.
``(3) The investment review process under paragraph (1)
shall include the following elements:
``(A) Review and approval by an investment review
board (consisting of appropriate representatives of the
intelligence community) of each intelligence community
business system as an investment before the obligation
of funds for such system.
``(B) Periodic review, but not less often than
annually, of every intelligence community business
system investment.
``(C) Thresholds for levels of review to ensure
appropriate review of intelligence community business
system investments depending on the scope, complexity,
and cost of the system involved.
``(D) Procedures for making certifications in
accordance with the requirements of subsection (a)(3).
``(E) Mechanisms to ensure the consistency of the
investment review process with applicable guidance
issued by the Director of National Intelligence and the
Intelligence Community Business Systems Management
Committee established under subsection (f).
``(F) Common decision criteria, including
standards, requirements, and priorities, for purposes
of ensuring the integration of intelligence community
business systems.
``(e) Budget Information.--For each fiscal year after
fiscal year 2009, the Director of National Intelligence shall
include in the materials the Director submits to Congress in
support of the budget for such fiscal year that is submitted to
Congress under section 1105 of title 31, United States Code,
the following information:
``(1) An identification of each intelligence
community business system for which funding is proposed
in such budget.
``(2) An identification of all funds, by
appropriation, proposed in such budget for each such
system, including--
``(A) funds for current services to operate
and maintain such system; and
``(B) funds for business systems
modernization identified for each specific
appropriation.
``(3) For each such system, identification of
approval authority designated for such system under
subsection (c)(2).
``(4) The certification, if any, made under
subsection (a)(3) with respect to each such system.
``(f) Intelligence Community Business Systems Management
Committee.--(1) The Director of National Intelligence shall
establish an Intelligence Community Business Systems Management
Committee (in this subsection referred to as the `Committee').
``(2) The Committee shall--
``(A) recommend to the Director policies and
procedures necessary to effectively integrate all
business activities and any transformation, reform,
reorganization, or process improvement initiatives
undertaken within the intelligence community;
``(B) review and approve any major update of--
``(i) the enterprise architecture developed
under subsection (b); and
``(ii) any plans for an intelligence
community business systems modernization;
``(C) manage cross-domain integration consistent
with such enterprise architecture;
``(D) be responsible for coordinating initiatives
for intelligence community business system
modernization to maximize benefits and minimize costs
for the intelligence community, and periodically report
to the Director on the status of efforts to carry out
an intelligence community business system
modernization;
``(E) ensure that funds are obligated for
intelligence community business system modernization in
a manner consistent with subsection (a); and
``(F) carry out such other duties as the Director
shall specify.
``(g) Relation to Annual Registration Requirements.--
Nothing in this section shall be construed to alter the
requirements of section 8083 of the Department of Defense
Appropriations Act, 2005 (Public Law 108-287; 118 Stat. 989),
with regard to information technology systems (as defined in
subsection (d) of such section).
``(h) Relation to Defense Business Systems Architecture,
Accountability, and Modernization Requirements.--An
intelligence community business system that receives more than
50 percent of its funds from amounts available for the National
Intelligence Program shall be exempt from the requirements of
section 2222 of title 10, United States Code.
``(i) Relation to Clinger-Cohen Act.--(1) The Director of
National Intelligence and the Chief Information Officer of the
Intelligence Community shall fulfill the executive agency
responsibilities in chapter 113 of title 40, United States
Code, for any intelligence community business system that
receives more than 50 percent of its funding from amounts
appropriated for the National Intelligence Program.
``(2) Any intelligence community business system covered by
paragraph (1) shall be exempt from the requirements of such
chapter 113 that would otherwise apply to the executive agency
that contains the element of the intelligence community
involved.
``(j) Reports.--Not later than March 15 of each of the
years 2009 through 2014, the Director of National Intelligence
shall submit to the congressional intelligence committees a
report on the compliance of the intelligence community with the
requirements of this section. Each such report shall--
``(1) describe actions taken and proposed for
meeting the requirements of subsection (a), including--
``(A) specific milestones and actual
performance against specified performance
measures, and any revision of such milestones
and performance measures; and
``(B) specific actions on the intelligence
community business system modernizations
submitted for certification under such
subsection;
``(2) identify the number of intelligence community
business system modernizations that received a
certification described in subsection (a)(3)(B); and
``(3) describe specific improvements in business
operations and cost savings resulting from successful
intelligence community business systems modernization
efforts.
``(k) Definitions.--In this section:
``(1) The term `enterprise architecture' has the
meaning given that term in section 3601(4) of title 44,
United States Code.
``(2) The terms `information system' and
`information technology' have the meanings given those
terms in section 11101 of title 40, United States Code.
``(3) The term `intelligence community business
system' means an information system, other than a
national security system, that is operated by, for, or
on behalf of the intelligence community, including
financial systems, mixed systems, financial data feeder
systems, and the business infrastructure capabilities
shared by the systems of the business enterprise
architecture that build upon the core infrastructure
used to support business activities, such as
acquisition, financial management, logistics, strategic
planning and budgeting, installations and environment,
and human resource management.
``(4) The term `intelligence community business
system modernization' means--
``(A) the acquisition or development of a
new intelligence community business system; or
``(B) any significant modification or
enhancement of an existing intelligence
community business system (other than necessary
to maintain current services).
``(5) The term `national security system' has the
meaning given that term in section 3542 of title 44,
United States Code.''.
(2) Clerical amendment.--The table of contents in
the first section of that Act, as amended by sections
306 and 311 of this Act, is further amended by
inserting after the item relating to section 506C, as
added by section 311(b), the following new item:
``Sec. 506D. Intelligence community business systems, architecture,
accountability, and modernization.''.
(b) Implementation.--
(1) Certain duties.--Not later than 60 days after
the date of the enactment of this Act, the Director of
National Intelligence shall--
(A) complete the delegation of
responsibility for the review, approval, and
oversight of the planning, design, acquisition,
deployment, operation, maintenance, and
modernization of intelligence community
business systems required by subsection (c) of
section 506D of the National Security Act of
1947 (as added by subsection (a)); and
(B) designate a vice chairman and personnel
to serve on the Intelligence Community Business
System Management Committee established under
subsection (f) of such section 506D (as so
added).
(2) Enterprise architecture.--
(A) Schedule for development.--The Director
shall develop the enterprise architecture
required by subsection (b) of such section 506D
(as so added) by not later than September 1,
2008.
(B) Requirement for implementation plan.--
In developing such enterprise architecture, the
Director shall develop an implementation plan
for such enterprise architecture that includes
the following:
(i) An acquisition strategy for new
systems that are expected to be needed
to complete such enterprise
architecture, including specific time-
phased milestones, performance metrics,
and a statement of the financial and
nonfinancial resource needs.
(ii) An identification of the
intelligence community business systems
in operation or planned as of December
31, 2006, that will not be a part of
such enterprise architecture, together
with the schedule for the phased
termination of the utilization of any
such systems.
(iii) An identification of the
intelligence community business systems
in operation or planned as of December
31, 2006, that will be a part of such
enterprise architecture, together with
a strategy for modifying such systems
to ensure that such systems comply with
such enterprise architecture.
(C) Submission of acquisition strategy.--
The Director shall submit the acquisition
strategy described in subparagraph (B)(i) to
the congressional intelligence committees not
later than March 1, 2008.
SEC. 313. REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS.
(a) In General.--Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by sections 306, 311,
and 312 of this Act, is further amended by inserting after
section 506D, as added by section 312(a)(1), the following new
section:
``REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS
``Sec. 506E. (a) Annual Reports Required.--(1) The Director
of National Intelligence shall submit to the congressional
intelligence committees each year, at the same time the budget
of the President for the fiscal year beginning in such year is
submitted to Congress pursuant to section 1105 of title 31,
United States Code, a separate report on each acquisition of a
major system by an element of the intelligence community.
``(2) Each report under this section shall be known as a
`Report on the Acquisition of Major Systems'.
``(b) Elements.--Each report under this section shall
include, for the acquisition of a major system, information on
the following:
``(1) The current total acquisition cost for such
system, and the history of such cost from the date the
system was first included in a report under this
section to the end of the calendar quarter immediately
proceeding the submittal of the report under this
section.
``(2) The current development schedule for the
system, including an estimate of annual development
costs until development is completed.
``(3) The planned procurement schedule for the
system, including the best estimate of the Director of
National Intelligence of the annual costs and units to
be procured until procurement is completed.
``(4) A full life-cycle cost analysis for such
system.
``(5) The result of any significant test and
evaluation of such major system as of the date of the
submittal of such report, or, if a significant test and
evaluation has not been conducted, a statement of the
reasons therefor and the results of any other test and
evaluation that has been conducted of such system.
``(6) The reasons for any change in acquisition
cost, or schedule, for such system from the previous
report under this section, if applicable.
``(7) The major contracts or subcontracts related
to the major system.
``(8) If there is any cost or schedule variance
under a contract referred to in paragraph (7) since the
previous report under this section, the reasons for
such cost or schedule variance.
``(c) Determination of Increase in Costs.--Any
determination of a percentage increase in the acquisition costs
of a major system for which a report is filed under this
section shall be stated in terms of constant dollars from the
first fiscal year in which funds are appropriated for such
contract.
``(d) Definitions.--In this section:
``(1) The term `acquisition cost', with respect to
a major system, means the amount equal to the total
cost for development and procurement of, and system-
specific construction for, such system.
``(2) The term `full life-cycle cost', with respect
to the acquisition of a major system, means all costs
of development, procurement, construction, deployment,
and operation and support for such program, without
regard to funding source or management control,
including costs of development and procurement required
to support or utilize such system.
``(3) The term `major contract,' with respect to a
major system acquisition, means each of the 6 largest
prime, associate, or government-furnished equipment
contracts under the program that is in excess of
$40,000,000 and that is not a firm, fixed price
contract.
``(4) The term `major system' has the meaning given
that term in section 506A(e).
``(5) The term `significant test and evaluation'
means the functional or environmental testing of a
major system or of the subsystems that combine to
create a major system.''.
(b) Clerical Amendment.--The table of contents in the first
section of that Act, as amended by sections 306, 311, and 312
of this Act, is further amended by inserting after the item
relating to section 506D, as added by section 312(a)(2), the
following new item:
``Sec. 506E. Reports on the acquisition of major systems.''.
SEC. 314. EXCESSIVE COST GROWTH OF MAJOR SYSTEMS.
(a) Notification.--Title V of the National Security Act of
1947, as amended by sections 306, 311, 312, and 313 of this
Act, is further amended by inserting after section 506E, as
added by section 313(a), the following new section:
``EXCESSIVE COST GROWTH OF MAJOR SYSTEMS
``Sec. 506F. (a) Cost Increases of at Least 25 Percent.--
(1)(A) On a continuing basis, and separate from the submission
of any report on a major system required by section 506E of
this Act, the program manager shall determine if the
acquisition cost of such major system has increased by at least
25 percent as compared to the baseline cost of such major
system.
``(B) Not later than 10 days after the date that a program
manager determines that an increase described in subparagraph
(A) has occurred, the program manager shall submit to the
Director of National Intelligence notification of such
increase.
``(2)(A) If, after receiving a notification described in
paragraph (1)(B), the Director of National Intelligence
determines that the acquisition cost of a major system has
increased by at least 25 percent, the Director shall submit to
the congressional intelligence committees a written
notification of such determination as described in subparagraph
(B), a description of the amount of the increase in the
acquisition cost of such major system, and a certification as
described in subparagraph (C).
``(B) The notification required by subparagraph (A) shall
include--
``(i) an updated cost estimate;
``(ii) the date on which the determination covered
by such notification was made;
``(iii) contract performance assessment information
with respect to each significant contract or sub-
contract related to such major system, including the
name of the contractor, the phase of the contract at
the time of the report, the percentage of work under
the contract that has been completed, any change in
contract cost, the percentage by which the contract is
currently ahead or behind schedule, and a summary
explanation of significant occurrences, such as cost
and schedule variances, and the effect of such
occurrences on future costs and schedules;
``(iv) the prior estimate of the full life-cycle
cost for such major system, expressed in constant
dollars and in current year dollars;
``(v) the current estimated full life-cycle cost of
such major system, expressed in constant dollars and
current year dollars;
``(vi) a statement of the reasons for any increases
in the full life-cycle cost of such major system;
``(vii) the current change and the total change, in
dollars and expressed as a percentage, in the full
life-cycle cost applicable to such major system, stated
both in constant dollars and current year dollars;
``(viii) the completion status of such major system
expressed as the percentage--
``(I) of the total number of years for
which funds have been appropriated for such
major system compared to the number of years
for which it is planned that such funds will be
appropriated; and
``(II) of the amount of funds that have
been appropriated for such major system
compared to the total amount of such funds
which it is planned will be appropriated;
``(ix) the action taken and proposed to be taken to
control future cost growth of such major system; and
``(x) any changes made in the performance or
schedule of such major system and the extent to which
such changes have contributed to the increase in full
life-cycle costs of such major system.
``(C) The certification described in this subparagraph is a
written certification made by the Director and submitted to the
congressional intelligence committees that--
``(i) the acquisition of such major system is
essential to the national security;
``(ii) there are no alternatives to such major
system that will provide equal or greater intelligence
capability at equal or lesser cost to completion;
``(iii) the new estimates of the full life-cycle
cost for such major system are reasonable; and
``(iv) the management structure for the acquisition
of such major system is adequate to manage and control
full life-cycle cost of such major system.
``(b) Cost Increases of at Least 50 Percent.--(1)(A) On a
continuing basis, and separate from the submission of any
report on a major system required by section 506E of this Act,
the program manager shall determine if the acquisition cost of
such major system has increased by at least 50 percent as
compared to the baseline cost of such major system.
``(B) Not later than 10 days after the date that a program
manager determines that an increase described in subparagraph
(A) has occurred, the program manager shall submit to the
Director of National Intelligence notification of such
increase.
``(2) If, after receiving a notification described in
paragraph (1)(B), the Director of National Intelligence
determines that the acquisition cost of a major system has
increased by at least 50 percent as compared to the baseline
cost of such major system, the Director shall submit to the
congressional intelligence committees a written certification
stating that--
``(A) the acquisition of such major system is
essential to the national security;
``(B) there are no alternatives to such major
system that will provide equal or greater intelligence
capability at equal or lesser cost to completion;
``(C) the new estimates of the full life-cycle cost
for such major system are reasonable; and
``(D) the management structure for the acquisition
of such major system is adequate to manage and control
the full life-cycle cost of such major system.
``(3) In addition to the certification required by
paragraph (2), the Director of National Intelligence shall
submit to the congressional intelligence committees an updated
notification, with current accompanying information, as
required by subsection (a)(2).
``(c) Prohibition on Obligation of Funds.--(1) If a written
certification required under subsection (a)(2)(A) is not
submitted to the congressional intelligence committees within
60 days of the determination made under subsection (a)(1),
funds appropriated for the acquisition of a major system may
not be obligated for a major contract under the program. Such
prohibition on the obligation of funds shall cease to apply at
the end of the 30-day period of a continuous session of
Congress that begins on the date on which Congress receives the
notification required under subsection (a)(2)(A).
``(2) If a written certification required under subsection
(b)(2) is not submitted to the congressional intelligence
committees within 60 days of the determination made under
subsection (b)(2), funds appropriated for the acquisition of a
major system may not be obligated for a major contract under
the program. Such prohibition on the obligation of funds for
the acquisition of a major system shall cease to apply at the
end of the 30-day period of a continuous session of Congress
that begins on the date on which Congress receives the
notification required under subsection (b)(3).
``(d) Definitions.--In this section:
``(1) The term `acquisition cost' has the meaning
given that term in section 506E(d).
``(2) The term `baseline cost', with respect to a
major system, means the projected acquisition cost of
such system that is approved by the Director of
National Intelligence at Milestone B or an equivalent
acquisition decision for the development, procurement,
and construction of such system. The baseline cost may
be in the form of an independent cost estimate.
``(3) The term `full life-cycle cost' has the
meaning given that term in section 506E(d).
``(4) The term `independent cost estimate' has the
meaning given that term in section 506A(e).
``(5) The term `major system' has the meaning given
that term in section 506A(e).
``(6) The term `Milestone B' means a decision to
enter into system development and demonstration
pursuant to guidance prescribed by the Director of
National Intelligence.
``(7) The term `program manager', with respect to a
major system, means--
``(A) the head of the element of the
intelligence community which is responsible for
the budget, cost, schedule, and performance of
the major system; or
``(B) in the case of a major system within
the Office of the Director of National
Intelligence, the deputy who is responsible for
the budget, cost, schedule, and performance of
the major system.''.
(b) Clerical Amendment.--The table of contents in the first
section of that Act, as amended by sections 304, 311, 312, and
313 of this Act, is further amended by inserting after the
items relating to section 506E, as added by section 313(b), the
following new item:
``Sec. 506F. Excessive cost growth of major systems.''.
Subtitle C--Other Matters
SEC. 321. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.
The authorization of appropriations by this Act shall not
be deemed to constitute authority for the conduct of any
intelligence activity which is not otherwise authorized by the
Constitution or the laws of the United States.
SEC. 322. CLARIFICATION OF DEFINITION OF INTELLIGENCE COMMUNITY UNDER
THE NATIONAL SECURITY ACT OF 1947.
Subparagraph (L) of section 3(4) of the National Security
Act of 1947 (50 U.S.C. 401a(4)) is amended by striking
``other'' the second place it appears.
SEC. 323. MODIFICATION OF AVAILABILITY OF FUNDS FOR DIFFERENT
INTELLIGENCE ACTIVITIES.
Subparagraph (B) of section 504(a)(3) of the National
Security Act of 1947 (50 U.S.C. 414(a)(3)) is amended to read
as follows:
``(B) the use of such funds for such activity
supports an emergent need, improves program
effectiveness, or increases efficiency; and''.
SEC. 324. PROTECTION OF CERTAIN NATIONAL SECURITY INFORMATION.
(a) Increase in Penalties for Disclosure of Undercover
Intelligence Officers and Agents.--
(1) Disclosure of agent after access to information
identifying agent.--Subsection (a) of section 601 of
the National Security Act of 1947 (50 U.S.C. 421) is
amended by striking ``ten years'' and inserting ``15
years''.
(2) Disclosure of agent after access to classified
information.--Subsection (b) of such section is amended
by striking ``five years'' and inserting ``10 years''.
(b) Modifications to Annual Report on Protection of
Intelligence Identities.--The first sentence of section 603(a)
of the National Security Act of 1947 (50 U.S.C. 423(a)) is
amended by inserting ``including an assessment of the need for
any modification of this title for the purpose of improving
legal protections for covert agents,'' after ``measures to
protect the identities of covert agents,''.
SEC. 325. EXTENSION OF AUTHORITY TO DELETE INFORMATION ABOUT RECEIPT
AND DISPOSITION OF FOREIGN GIFTS AND DECORATIONS.
Paragraph (4) of section 7342(f) of title 5, United States
Code, is amended to read as follows:
``(4)(A) In transmitting such listings for an element of
the intelligence community, the head of such element may delete
the information described in subparagraph (A) or (C) of
paragraph (2) or in subparagraph (A) or (C) of paragraph (3) if
the head of such element certifies in writing to the Secretary
of State that the publication of such information could
adversely affect United States intelligence sources or methods.
``(B) Any information not provided to the Secretary of
State pursuant to the authority in subparagraph (A) shall be
transmitted to the Director of National Intelligence who shall
keep a record of such information.
``(C) In this paragraph, the term `element of the
intelligence community' means an element of the intelligence
community listed in or designated under section 3(4) of the
National Security Act of 1947 (50 U.S.C. 401a(4)).''.
SEC. 326. REPORT ON COMPLIANCE WITH THE DETAINEE TREATMENT ACT OF 2005
AND RELATED PROVISIONS OF THE MILITARY COMMISSIONS
ACT OF 2006.
(a) Report Required.--Not later than 45 days after the date
of the enactment of this Act, the Director of National
Intelligence shall submit to the congressional intelligence
committees a comprehensive report on all measures taken by the
Office of the Director of National Intelligence and by each
element, if any, of the intelligence community with relevant
responsibilities to comply with the provisions of the Detainee
Treatment Act of 2005 (title X of division A of Public Law 109-
148; 119 Stat. 2739) and related provisions of the Military
Commissions Act of 2006 (Public Law 109-366; 120 Stat. 2600).
(b) Elements.--The report required by subsection (a) shall
include the following:
(1) A description of the detention or interrogation
methods, if any, that have been determined to comply
with section 1003 of the Detainee Treatment Act of 2005
(119 Stat. 2739; 42 U.S.C. 2000dd) and section 6 of the
Military Commissions Act of 2006 (120 Stat. 2632; 18
U.S.C. 2441 note) (including the amendments made by
such section 6), and, with respect to each such
method--
(A) an identification of the official
making such determination; and
(B) a statement of the basis for such
determination.
(2) A description of the detention or interrogation
methods, if any, whose use has been discontinued
pursuant to the Detainee Treatment Act of 2005 or the
Military Commission Act of 2006, and, with respect to
each such method--
(A) an identification of the official
making the determination to discontinue such
method; and
(B) a statement of the basis for such
determination.
(3) A description of any actions that have been
taken to implement section 1004 of the Detainee
Treatment Act of 2005 (119 Stat. 2740; 42 U.S.C.
2000dd-1), and, with respect to each such action--
(A) an identification of the official
taking such action; and
(B) a statement of the basis for such
action.
(4) Any other matters that the Director considers
necessary to fully and currently inform the
congressional intelligence committees about the
implementation of the Detainee Treatment Act of 2005
and related provisions of the Military Commissions Act
of 2006.
(5) An appendix containing--
(A) all guidelines for the application of
the Detainee Treatment Act of 2005 and related
provisions of the Military Commissions Act of
2006 to the detention or interrogation
activities, if any, of any element of the
intelligence community; and
(B) the legal justifications of any office
of the Department of Justice about the meaning
or application of the Detainee Treatment Act of
2005 or related provisions of the Military
Commissions Act of 2006 with respect to the
detention or interrogation activities, if any,
of any element of the intelligence community.
(c) Form.--The report required by subsection (a) shall be
submitted in classified form.
(d) Submission to the Congressional Armed Services
Committees.--To the extent that the report required by
subsection (a) addresses an element of the intelligence
community within the Department of Defense, that portion of the
report, and any associated material that is necessary to make
that portion understandable, shall also be submitted by the
Director of National Intelligence to the congressional armed
services committees.
(e) Congressional Armed Services Committee Defined.--In
this section, the term ``congressional armed services
committees'' means--
(1) the Committee on Armed Services of the Senate;
and
(2) the Committee on Armed Services of the House of
Representatives.
SEC. 327. LIMITATION ON INTERROGATION TECHNIQUES.
(a) Limitation.--No individual in the custody or under the
effective control of an element of the intelligence community
or instrumentality thereof, regardless of nationality or
physical location, shall be subject to any treatment or
technique of interrogation not authorized by the United States
Army Field Manual on Human Intelligence Collector Operations.
(b) Instrumentality Defined.--In this section, the term
``instrumentality'', with respect to an element of the
intelligence community, means a contractor or subcontractor at
any tier of the element of the intelligence community.
SEC. 328. LIMITATION ON USE OF FUNDS.
Not more than 30 percent of the funds authorized to be
appropriated for the Expenditure Center referred to on page 157
of Volume VI, Book 1 of the Fiscal Year 2008-Fiscal Year 2009
Congressional Budget Justification, National Intelligence
Program, may be obligated or expended until each member of the
congressional intelligence committees has been fully and
currently informed with respect to intelligence regarding a
facility in Syria subject to reported military action by the
State of Israel on September 6, 2007, including intelligence
relating to any agent or citizen of North Korea, Iran, or any
other foreign country present at the facility, and any
intelligence provided to the Federal Government by a foreign
country regarding the facility (as available).
SEC. 329. INCORPORATION OF REPORTING REQUIREMENTS.
Each requirement to submit a report to the congressional
intelligence committees that is included in the classified
annex to this Act is hereby incorporated into this Act and is
hereby made a requirement in law.
SEC. 330. REPEAL OF CERTAIN REPORTING REQUIREMENTS.
(a) Annual Report on Intelligence.--
(1) Repeal.--Section 109 of the National Security
Act of 1947 (50 U.S.C. 404d) is repealed.
(2) Clerical amendment.--The table of contents in
the first section of the National Security Act of 1947
is amended by striking the item relating to section
109.
(b) Annual and Special Reports on Intelligence Sharing With
the United Nations.--Section 112 of the National Security Act
of 1947 (50 U.S.C. 404g) is amended--
(1) by striking subsection (b); and
(2) by redesignating subsections (c), (d), and (e)
as subsections (b), (c), and (d), respectively.
(c) Annual Certification on Counterintelligence
Initiatives.--Section 1102(b) of the National Security Act of
1947 (50 U.S.C. 442a(b)) is amended--
(1) by striking ``(1)''; and
(2) by striking paragraph (2).
(d) Report and Certification Under Terrorist Identification
Classification System.--Section 343 of the Intelligence
Authorization Act for Fiscal Year 2003 (50 U.S.C. 404n-2) is
amended--
(1) by striking subsection (d); and
(2) by redesignating subsections (e), (f), (g), and
(h) as subsections (d), (e), (f), and (g),
respectively.
(e) Annual Report on Counterdrug Intelligence Matters.--
Section 826 of the Intelligence Authorization Act for Fiscal
Year 2003 (Public Law 107-306; 116 Stat. 2429; 21 U.S.C. 873
note) is repealed.
(f) Conforming Amendments.--Section 507(a) of the National
Security Act of 1947 (50 U.S.C. 415b(a)) is amended--
(1) in paragraph (1)--
(A) by striking subparagraphs (A) and (B);
and
(B) by redesignating subparagraphs (C)
through (N) as subparagraphs (A) through (L),
respectively; and
(2) in paragraph (2), by striking subparagraph (D).
TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY
Subtitle A--Office of the Director of National Intelligence
SEC. 401. CLARIFICATION OF LIMITATION ON COLOCATION OF THE OFFICE OF
THE DIRECTOR OF NATIONAL INTELLIGENCE.
Section 103(e) of the National Security Act of 1947 (50
U.S.C. 403-3(e)) is amended--
(1) by striking ``With'' and inserting ``of
Headquarters With Headquarters of'';
(2) by inserting ``the headquarters of'' before
``the Office''; and
(3) by striking ``any other element'' and inserting
``the headquarters of any other element''.
SEC. 402. MEMBERSHIP OF THE DIRECTOR OF NATIONAL INTELLIGENCE ON THE
TRANSPORTATION SECURITY OVERSIGHT BOARD.
Subparagraph (F) of section 115(b)(1) of title 49, United
States Code, is amended to read as follows:
``(F) The Director of National
Intelligence, or the Director's designee.''.
SEC. 403. ADDITIONAL DUTIES OF THE DIRECTOR OF SCIENCE AND TECHNOLOGY.
Section 103E of the National Security Act of 1947 (50
U.S.C. 403-3e) is amended--
(1) in subsection (c)--
(A) by redesignating paragraph (5) as
paragraph (7);
(B) in paragraph (4), by striking ``and''
at the end; and
(C) by inserting after paragraph (4) the
following:
``(5) assist the Director in establishing goals for
basic, applied, and advanced research to meet the
technology needs of the intelligence community and to
be executed by elements of the intelligence community
by--
``(A) systematically identifying,
assessing, and prioritizing the most
significant intelligence challenges that
require technical solutions; and
``(B) examining options to enhance the
responsiveness of research programs;
``(6) submit to Congress an annual report on the
science and technology strategy of the Director; and'';
and
(2) in paragraph (3) of subsection (d)--
(A) by redesignating subparagraphs (A) and
(B) as subparagraphs (B) and (C), respectively;
(B) in subparagraph (B), as so
redesignated, by inserting ``and prioritize''
after ``coordinate''; and
(C) by inserting before subparagraph (B),
as so redesignated, the following new
subparagraph:
``(A) identify basic, advanced, and applied
research programs to be executed by elements of
the intelligence community;''.
SEC. 404. LEADERSHIP AND LOCATION OF CERTAIN OFFICES AND OFFICIALS.
(a) National Counter Proliferation Center.--Section 119A(a)
of the National Security Act of 1947 (50 U.S.C. 404o-1(a)) is
amended--
(1) by striking ``(a) Establishment.--Not later
than 18 months after the date of the enactment of the
National Security Intelligence Reform Act of 2004,
the'' and inserting the following:
``(a) In General.--
``(1) Establishment.--The''; and
(2) by adding at the end the following new
paragraphs:
``(2) Director.--The head of the National Counter
Proliferation Center shall be the Director of the
National Counter Proliferation Center, who shall be
appointed by the Director of National Intelligence.
``(3) Location.--The National Counter Proliferation
Center shall be located within the Office of the
Director of National Intelligence.''.
(b) Officers.--Section 103(c) of that Act (50 U.S.C. 403-
3(c)) is amended--
(1) by redesignating paragraph (9) as paragraph
(13); and
(2) by inserting after paragraph (8) the following
new paragraphs:
``(9) The Chief Information Officer of the
Intelligence Community.
``(10) The Inspector General of the Intelligence
Community.
``(11) The Director of the National
Counterterrorism Center.
``(12) The Director of the National Counter
Proliferation Center.''.
SEC. 405. PLAN TO IMPLEMENT RECOMMENDATIONS OF THE DATA CENTER ENERGY
EFFICIENCY REPORTS.
(a) Plan.--The Director of National Intelligence shall
develop a plan to implement the recommendations of the report
submitted to Congress under section 1 of the Act entitled ``An
Act to study and promote the use of energy efficient computer
servers in the United States'' (Public Law 109-431; 120 Stat.
2920) across the intelligence community.
(b) Report.--
(1) In general.--Not later then February 1, 2008,
the Director of National Intelligence shall submit to
the congressional intelligence committees a report
containing the plan developed under subsection (a).
(2) Form.--The report under paragraph (1) shall be
submitted in unclassified form, but may contain a
classified annex.
SEC. 406. COMPREHENSIVE LISTING OF SPECIAL ACCESS PROGRAMS.
Not later than February 1, 2008, the Director of National
Intelligence shall submit to the congressional intelligence
committees a classified comprehensive listing of all special
access programs under the National Intelligence Program (as
defined in section 3(6) of the National Security Act of 1947
(50 U.S.C. 401a(6))). Such listing may be submitted in a form
or forms consistent with the protection of national security.
SEC. 407. REPORTS ON THE NUCLEAR PROGRAMS OF IRAN AND NORTH KOREA.
(a) Requirement for Reports.--Not less frequently than once
during fiscal year 2008 and twice during fiscal year 2009, the
Director of National Intelligence shall submit to the
congressional intelligence committees a report on the
intentions and capabilities of the Islamic Republic of Iran and
the Democratic People's Republic of Korea, with regard to the
nuclear programs of each such country.
(b) Content.--Each report submitted by subsection (a) shall
include, with respect of the Islamic Republic of Iran and the
Democratic People's Republic of Korea--
(1) an assessment of nuclear weapons programs of
each such country;
(2) an evaluation, consistent with existing
reporting standards and practices, of the sources upon
which the intelligence used to prepare the assessment
described in paragraph (1) is based, including the
number of such sources and an assessment of the
reliability of each such source;
(3) a summary of any intelligence related to any
such program gathered or developed since the previous
report was submitted under subsection (a), including
intelligence collected from both open and clandestine
sources for each such country; and
(4) a discussion of any dissents, caveats, gaps in
knowledge, or other information that would reduce
confidence in the assessment described in paragraph
(1).
(c) National Intelligence Estimate.--The Director of
National Intelligence may submit a National Intelligence
Estimate on the intentions and capabilities of the Islamic
Republic of Iran and the Democratic People's Republic of Korea
in lieu of a report required by subsection (a).
(d) Form.--Each report submitted under subsection (a) may
be submitted in classified form.
SEC. 408. REQUIREMENTS FOR ACCOUNTABILITY REVIEWS BY THE DIRECTOR OF
NATIONAL INTELLIGENCE.
(a) Responsibility of the Director of National
Intelligence.--Subsection (b) of section 102 of the National
Security Act of 1947 (50 U.S.C. 403) is amended--
(1) in paragraph (2), by striking ``and'' at the
end;
(2) in paragraph (3)--
(A) by striking ``2004,'' and inserting
``2004 (50 U.S.C. 403 note),''; and
(B) by striking the period at the end and
inserting a semicolon and ``and''; and
(3) by inserting after paragraph (3), the following
new paragraph:
``(4) conduct accountability reviews of elements of
the intelligence community and the personnel of such
elements, if appropriate.''.
(b) Tasking and Other Authorities.--Subsection (f) of
section 102A of such Act (50 U.S.C. 403-1) is amended--
(1) by redesignating paragraphs (7) and (8), as
paragraphs (8) and (9), respectively; and
(2) by inserting after paragraph (6), the following
new paragraph:
``(7)(A) The Director of National Intelligence shall, if
the Director determines it is necessary, or may, if requested
by a congressional intelligence committee, conduct
accountability reviews of elements of the intelligence
community or the personnel of such elements in relation to
significant failures or deficiencies within the intelligence
community.
``(B) The Director of National Intelligence, in
consultation with the Attorney General, shall establish
guidelines and procedures for conducting accountability reviews
under subparagraph (A).
``(C) The requirements of this paragraph shall not limit
any authority of the Director of National Intelligence under
subsection (m) or with respect to supervision of the Central
Intelligence Agency.''.
SEC. 409. MODIFICATION OF LIMITATION ON DELEGATION BY THE DIRECTOR OF
NATIONAL INTELLIGENCE OF THE PROTECTION OF
INTELLIGENCE SOURCES AND METHODS.
Section 102A(i)(3) of the National Security Act of 1947 (50
U.S.C. 403-1(i)(3)) is amended by inserting before the period
the following: ``or the Chief Information Officer of the
Intelligence Community''.
SEC. 410. AUTHORITIES FOR INTELLIGENCE INFORMATION SHARING.
(a) Authorities for Interagency Funding.--Section
102A(g)(1) of the National Security Act of 1947 (50 U.S.C. 403-
1(g)(1)) is amended--
(1) in subparagraph (E), by striking ``and'' at the
end;
(2) in subparagraph (F), by striking the period and
inserting a semicolon; and
(3) by adding at the end the following new
subparagraphs:
``(G) in carrying out this subsection, without
regard to any other provision of law (other than this
Act and the National Security Intelligence Reform Act
of 2004 (title I of Public Law 108-458; 118 Stat.
3643)), expend funds and make funds available to other
departments or agencies of the United States for, and
direct the development and fielding of, systems of
common concern related to the collection, processing,
analysis, exploitation, and dissemination of
intelligence information; and
``(H) for purposes of addressing critical gaps in
intelligence information sharing or access
capabilities, have the authority to transfer funds
appropriated for a program within the National
Intelligence Program to a program funded by
appropriations not within the National Intelligence
Program, consistent with paragraphs (3) through (7) of
subsection (d).''.
(b) Authorities of Heads of Other Departments and
Agencies.--Notwithstanding any other provision of law, the head
of any department or agency of the United States is authorized
to receive and utilize funds made available to the department
or agency by the Director of National Intelligence pursuant to
section 102A(g)(1) of the National Security Act of 1947 (50
U.S.C. 403-1(g)(1)), as amended by subsection (a), and receive
and utilize any system referred to in such section that is made
available to the department or agency.
(c) Reports.--
(1) Requirement for reports.--Not later than
February 1 of each of the fiscal years 2009 through
2012, the Director of National Intelligence shall
submit to the congressional intelligence committees a
report detailing the distribution of funds and systems
during the preceding fiscal year pursuant to
subparagraph (G) or (H) of section 102A(g)(1) of the
National Security Act of 1947 (50 U.S.C. 403-1(g)(1)),
as added by subsection (a).
(2) Content.--Each such report shall include--
(A) a listing of the agencies or
departments to which such funds or systems were
distributed;
(B) a description of the purpose for which
such funds or systems were distributed; and
(C) a description of the expenditure of
such funds, and the development, fielding, and
use of such systems by the receiving agency or
department.
SEC. 411. AUTHORITIES OF THE DIRECTOR OF NATIONAL INTELLIGENCE FOR
INTERAGENCY FUNDING.
(a) In General.--Section 102A of the National Security Act
of 1947 (50 U.S.C. 403-1), as amended by sections 303 and 304
of this Act, is further amended by adding at the end the
following new subsection:
``(u) Authorities for Interagency Funding.--(1)
Notwithstanding section 1346 of title 31, United States Code,
or any other provision of law prohibiting the interagency
financing of activities described in subparagraph (A) or (B),
upon the request of the Director of National Intelligence, any
element of the intelligence community may use appropriated
funds to support or participate in the interagency activities
of the following:
``(A) National intelligence centers established by
the Director under section 119B.
``(B) Boards, commissions, councils, committees,
and similar groups that are established--
``(i) for a term of not more than 2 years;
and
``(ii) by the Director.
``(2) No provision of law enacted after the date of the
enactment of the Intelligence Authorization Act for Fiscal Year
2008 shall be construed to limit or supersede the authority in
paragraph (1) unless such provision makes specific reference to
the authority in that paragraph.''.
(b) Reports.--Not later than February 1 of each of the
fiscal years 2009 through 2012, the Director of National
Intelligence shall submit to the congressional intelligence
committees a report detailing the exercise of any authority
pursuant to subsection (u) of section 102A of the National
Security Act of 1947 (50 U.S.C. 403-1), as amended by
subsection (a), during the preceding fiscal year.
SEC. 412. TITLE OF CHIEF INFORMATION OFFICER OF THE INTELLIGENCE
COMMUNITY.
Section 103G of the National Security Act of 1947 (50
U.S.C. 403-3g) is amended--
(1) in subsection (a), by inserting ``of the
Intelligence Community'' after ``Chief Information
Officer'';
(2) in subsection (b), by inserting ``of the
Intelligence Community'' after ``Chief Information
Officer'';
(3) in subsection (c), by inserting ``of the
Intelligence Community'' after ``Chief Information
Officer''; and
(4) in subsection (d), by inserting ``of the
Intelligence Community'' after ``Chief Information
Officer'' the first place it appears.
SEC. 413. INSPECTOR GENERAL OF THE INTELLIGENCE COMMUNITY.
(a) Establishment.--
(1) In general.--Title I of the National Security
Act of 1947 (50 U.S.C. 402 et seq.) is amended by
inserting after section 103G the following new section:
``INSPECTOR GENERAL OF THE INTELLIGENCE COMMUNITY
``Sec. 103H. (a) Office of Inspector General of
Intelligence Community.--There is within the Office of the
Director of National Intelligence an Office of the Inspector
General of the Intelligence Community.
``(b) Purpose.--The purpose of the Office of the Inspector
General of the Intelligence Community is to--
``(1) create an objective and effective office,
appropriately accountable to Congress, to initiate and
conduct independently investigations, inspections, and
audits on matters within the responsibility and
authority of the Director of National Intelligence;
``(2) recommend policies designed--
``(A) to promote economy, efficiency, and
effectiveness in the administration and
implementation of matters within the
responsibility and authority of the Director of
National Intelligence; and
``(B) to prevent and detect fraud and abuse
in such matters;
``(3) provide a means for keeping the Director of
National Intelligence fully and currently informed
about--
``(A) problems and deficiencies relating to
matters within the responsibility and authority
of the Director of National Intelligence; and
``(B) the necessity for, and the progress
of, corrective actions; and
``(4) in the manner prescribed by this section,
ensure that the congressional intelligence committees
are kept similarly informed of--
``(A) significant problems and deficiencies
relating to matters within the responsibility
and authority of the Director of National
Intelligence; and
``(B) the necessity for, and the progress
of, corrective actions.
``(c) Inspector General of Intelligence Community.--(1)
There is an Inspector General of the Intelligence Community,
who shall be the head of the Office of the Inspector General of
the Intelligence Community, who shall be appointed by the
President, by and with the advice and consent of the Senate.
``(2) The nomination of an individual for appointment as
Inspector General shall be made--
``(A) without regard to political affiliation;
``(B) solely on the basis of integrity, compliance
with the security standards of the intelligence
community, and prior experience in the field of
intelligence or national security; and
``(C) on the basis of demonstrated ability in
accounting, financial analysis, law, management
analysis, public administration, or auditing.
``(3) The Inspector General shall report directly to and be
under the general supervision of the Director of National
Intelligence.
``(4) The Inspector General may be removed from office only
by the President. The President shall immediately communicate
in writing to the congressional intelligence committees the
reasons for the removal of any individual from the position of
Inspector General.
``(d) Duties and Responsibilities.--Subject to subsections
(g) and (h), it shall be the duty and responsibility of the
Inspector General of the Intelligence Community--
``(1) to provide policy direction for, and to plan,
conduct, supervise, and coordinate independently, the
investigations, inspections, and audits relating to
matters within the responsibility and authority of the
Director of National Intelligence to ensure they are
conducted efficiently and in accordance with applicable
law and regulations;
``(2) to keep the Director of National Intelligence
fully and currently informed concerning violations of
law and regulations, violations of civil liberties and
privacy, fraud and other serious problems, abuses, and
deficiencies that may occur in matters within the
responsibility and authority of the Director, and to
report the progress made in implementing corrective
action;
``(3) to take due regard for the protection of
intelligence sources and methods in the preparation of
all reports issued by the Inspector General, and, to
the extent consistent with the purpose and objective of
such reports, take such measures as may be appropriate
to minimize the disclosure of intelligence sources and
methods described in such reports; and
``(4) in the execution of the duties and
responsibilities under this section, to comply with
generally accepted government auditing standards.
``(e) Limitations on Activities.--(1) The Director of
National Intelligence may prohibit the Inspector General of the
Intelligence Community from initiating, carrying out, or
completing any investigation, inspection, or audit if the
Director determines that such prohibition is necessary to
protect vital national security interests of the United States.
``(2) If the Director exercises the authority under
paragraph (1), the Director shall submit an appropriately
classified statement of the reasons for the exercise of such
authority within 7 days to the congressional intelligence
committees.
``(3) The Director shall advise the Inspector General at
the time a report under paragraph (2) is submitted, and, to the
extent consistent with the protection of intelligence sources
and methods, provide the Inspector General with a copy of such
report.
``(4) The Inspector General may submit to the congressional
intelligence committees any comments on a report of which the
Inspector General has notice under paragraph (3) that the
Inspector General considers appropriate.
``(f) Authorities.--(1) The Inspector General of the
Intelligence Community shall have direct and prompt access to
the Director of National Intelligence when necessary for any
purpose pertaining to the performance of the duties of the
Inspector General.
``(2)(A) The Inspector General shall have access to any
employee, or any employee of a contractor, of any element of
the intelligence community whose testimony is needed for the
performance of the duties of the Inspector General.
``(B) The Inspector General shall have direct access to all
records, reports, audits, reviews, documents, papers,
recommendations, or other material which relate to the programs
and operations with respect to which the Inspector General has
responsibilities under this section.
``(C) The level of classification or compartmentation of
information shall not, in and of itself, provide a sufficient
rationale for denying the Inspector General access to any
materials under subparagraph (B).
``(D) Failure on the part of any employee, or any employee
of a contractor, of any element of the intelligence community
to cooperate with the Inspector General shall be grounds for
appropriate administrative actions by the Director or, on the
recommendation of the Director, other appropriate officials of
the intelligence community, including loss of employment or the
termination of an existing contractual relationship.
``(3) The Inspector General is authorized to receive and
investigate complaints or information from any person
concerning the existence of an activity constituting a
violation of laws, rules, or regulations, or mismanagement,
gross waste of funds, abuse of authority, or a substantial and
specific danger to the public health and safety. Once such
complaint or information has been received from an employee of
the Federal Government--
``(A) the Inspector General shall not disclose the
identity of the employee without the consent of the
employee, unless the Inspector General determines that
such disclosure is unavoidable during the course of the
investigation or the disclosure is made to an official
of the Department of Justice responsible for
determining whether a prosecution should be undertaken;
and
``(B) no action constituting a reprisal, or threat
of reprisal, for making such complaint may be taken by
any employee in a position to take such actions, unless
the complaint was made or the information was disclosed
with the knowledge that it was false or with willful
disregard for its truth or falsity.
``(4) The Inspector General shall have authority to
administer to or take from any person an oath, affirmation, or
affidavit, whenever necessary in the performance of the duties
of the Inspector General, which oath, affirmation, or affidavit
when administered or taken by or before an employee of the
Office of the Inspector General of the Intelligence Community
designated by the Inspector General shall have the same force
and effect as if administered or taken by, or before, an
officer having a seal.
``(5)(A) Except as provided in subparagraph (B), the
Inspector General is authorized to require by subpoena the
production of all information, documents, reports, answers,
records, accounts, papers, and other data and documentary
evidence necessary in the performance of the duties and
responsibilities of the Inspector General.
``(B) In the case of departments, agencies, and other
elements of the United States Government, the Inspector General
shall obtain information, documents, reports, answers, records,
accounts, papers, and other data and evidence for the purpose
specified in subparagraph (A) using procedures other than by
subpoenas.
``(C) The Inspector General may not issue a subpoena for,
or on behalf of, any other element of the intelligence
community, including the Office of the Director of National
Intelligence.
``(D) In the case of contumacy or refusal to obey a
subpoena issued under this paragraph, the subpoena shall be
enforceable by order of any appropriate district court of the
United States.
``(g) Coordination Among Inspectors General of Intelligence
Community.--(1)(A) In the event of a matter within the
jurisdiction of the Inspector General of the Intelligence
Community that may be subject to an investigation, inspection,
or audit by both the Inspector General of the Intelligence
Community and an Inspector General, whether statutory or
administrative, with oversight responsibility for an element or
elements of the intelligence community, the Inspector General
of the Intelligence Community and such other Inspector or
Inspectors General shall expeditiously resolve the question of
which Inspector General shall conduct such investigation,
inspection, or audit.
``(B) In attempting to resolve a question under
subparagraph (A), the Inspectors General concerned may request
the assistance of the Intelligence Community Inspectors General
Forum established under subparagraph (C). In the event of a
dispute between an Inspector General within an agency or
department of the United States Government and the Inspector
General of the Intelligence Community that has not been
resolved with the assistance of the Forum, the Inspectors
General shall submit the question to the Director of National
Intelligence and the head of the agency or department for
resolution.
``(C) There is established the Intelligence Community
Inspectors General Forum which shall consist of all statutory
or administrative Inspectors General with oversight
responsibility for an element or elements of the intelligence
community. The Inspector General of the Intelligence Community
shall serve as the chair of the Forum. The Forum shall have no
administrative authority over any Inspector General, but shall
serve as a mechanism for informing its members of the work of
individual members of the Forum that may be of common interest
and discussing questions about jurisdiction or access to
employees, employees of a contractor, records, audits, reviews,
documents, recommendations, or other materials that may involve
or be of assistance to more than 1 of its members.
``(2) The Inspector General conducting an investigation,
inspection, or audit covered by paragraph (1) shall submit the
results of such investigation, inspection, or audit to any
other Inspector General, including the Inspector General of the
Intelligence Community, with jurisdiction to conduct such
investigation, inspection, or audit who did not conduct such
investigation, inspection, or audit.
``(h) Staff and Other Support.--(1) The Inspector General
of the Intelligence Community shall be provided with
appropriate and adequate office space at central and field
office locations, together with such equipment, office
supplies, maintenance services, and communications facilities
and services as may be necessary for the operation of such
offices.
``(2)(A) Subject to applicable law and the policies of the
Director of National Intelligence, the Inspector General shall
select, appoint, and employ such officers and employees as may
be necessary to carry out the functions of the Inspector
General. The Inspector General shall ensure that any officer or
employee so selected, appointed, or employed has security
clearances appropriate for the assigned duties of such officer
or employee.
``(B) In making selections under subparagraph (A), the
Inspector General shall ensure that such officers and employees
have the requisite training and experience to enable the
Inspector General to carry out the duties of the Inspector
General effectively.
``(C) In meeting the requirements of this paragraph, the
Inspector General shall create within the Office of the
Inspector General of the Intelligence Community a career cadre
of sufficient size to provide appropriate continuity and
objectivity needed for the effective performance of the duties
of the Inspector General.
``(3)(A) Subject to the concurrence of the Director, the
Inspector General may request such information or assistance as
may be necessary for carrying out the duties and
responsibilities of the Inspector General from any department,
agency, or other element of the United States Government.
``(B) Upon request of the Inspector General for information
or assistance under subparagraph (A), the head of the
department, agency, or element concerned shall, insofar as is
practicable and not in contravention of any existing statutory
restriction or regulation of the department, agency, or
element, furnish to the Inspector General, or to an authorized
designee, such information or assistance.
``(C) The Inspector General of the Intelligence Community
may, upon reasonable notice to the head of any element of the
intelligence community, conduct, as authorized by this section,
an investigation, inspection, or audit of such element and may
enter into any place occupied by such element for purposes of
the performance of the duties of the Inspector General.
``(i) Reports.--(1)(A) The Inspector General of the
Intelligence Community shall, not later than January 31 and
July 31 of each year, prepare and submit to the Director of
National Intelligence a classified, and, as appropriate,
unclassified semiannual report summarizing the activities of
the Office of the Inspector General of the Intelligence
Community during the immediately preceding 6-month period
ending December 31 (of the preceding year) and June 30,
respectively. The Inspector General of the Intelligence
Community shall provide any portion of the report involving a
component of a department of the United States Government to
the head of that department simultaneously with submission of
the report to the Director of National Intelligence.
``(B) Each report under this paragraph shall include, at a
minimum, the following:
``(i) A list of the title or subject of each
investigation, inspection, or audit conducted during
the period covered by such report, including a summary
of the progress of each particular investigation,
inspection, or audit since the preceding report of the
Inspector General under this paragraph.
``(ii) A description of significant problems,
abuses, and deficiencies relating to the administration
and implementation of programs and operations of the
intelligence community, and in the relationships
between elements of the intelligence community,
identified by the Inspector General during the period
covered by such report.
``(iii) A description of the recommendations for
corrective or disciplinary action made by the Inspector
General during the period covered by such report with
respect to significant problems, abuses, or
deficiencies identified in clause (ii).
``(iv) A statement whether or not corrective or
disciplinary action has been completed on each
significant recommendation described in previous
semiannual reports, and, in a case where corrective
action has been completed, a description of such
corrective action.
``(v) A certification whether or not the Inspector
General has had full and direct access to all
information relevant to the performance of the
functions of the Inspector General.
``(vi) A description of the exercise of the
subpoena authority under subsection (f)(5) by the
Inspector General during the period covered by such
report.
``(vii) Such recommendations as the Inspector
General considers appropriate for legislation to
promote economy, efficiency, and effectiveness in the
administration and implementation of matters within the
responsibility and authority of the Director of
National Intelligence, and to detect and eliminate
fraud and abuse in such matters.
``(C) Not later than the 30 days after the date of receipt
of a report under subparagraph (A), the Director shall transmit
the report to the congressional intelligence committees
together with any comments the Director considers appropriate.
The Director shall transmit to the committees of the Senate and
of the House of Representatives with jurisdiction over a
department of the United States Government any portion of the
report involving a component of such department simultaneously
with submission of the report to the congressional intelligence
committees.
``(2)(A) The Inspector General shall report immediately to
the Director whenever the Inspector General becomes aware of
particularly serious or flagrant problems, abuses, or
deficiencies relating to matters within the responsibility and
authority of the Director of National Intelligence.
``(B) The Director shall transmit to the congressional
intelligence committees each report under subparagraph (A)
within 7 calendar days of receipt of such report, together with
such comments as the Director considers appropriate. The
Director shall transmit to the committees of the Senate and of
the House of Representatives with jurisdiction over a
department of the United States Government any portion of each
report under subparagraph (A) that involves a problem, abuse,
or deficiency related to a component of such department
simultaneously with transmission of the report to the
congressional intelligence committees.
``(3) In the event that--
``(A) the Inspector General is unable to resolve
any differences with the Director affecting the
execution of the duties or responsibilities of the
Inspector General;
``(B) an investigation, inspection, or audit
carried out by the Inspector General focuses on any
current or former intelligence community official who--
``(i) holds or held a position in an
element of the intelligence community that is
subject to appointment by the President,
whether or not by and with the advice and
consent of the Senate, including such a
position held on an acting basis;
``(ii) holds or held a position in an
element of the intelligence community,
including a position held on an acting basis,
that is appointed by the Director of National
Intelligence; or
``(iii) holds or held a position as head of
an element of the intelligence community or a
position covered by subsection (b) or (c) of
section 106;
``(C) a matter requires a report by the Inspector
General to the Department of Justice on possible
criminal conduct by a current or former official
described in subparagraph (B);
``(D) the Inspector General receives notice from
the Department of Justice declining or approving
prosecution of possible criminal conduct of any current
or former official described in subparagraph (B); or
``(E) the Inspector General, after exhausting all
possible alternatives, is unable to obtain significant
documentary information in the course of an
investigation, inspection, or audit,
the Inspector General shall immediately notify and submit a
report on such matter to the congressional intelligence
committees.
``(4) Pursuant to title V, the Director shall submit to the
congressional intelligence committees any report or findings
and recommendations of an investigation, inspection, or audit
conducted by the office which has been requested by the
Chairman or Vice Chairman or Ranking Minority Member of either
committee.
``(5)(A) An employee of an element of the intelligence
community, an employee assigned or detailed to an element of
the intelligence community, or an employee of a contractor to
the intelligence community who intends to report to Congress a
complaint or information with respect to an urgent concern may
report such complaint or information to the Inspector General.
