REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT HEADQUARTERS AND HEADQUARTERS SUPPORT ACTIVITIES.

SEC. 911. REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT HEADQUARTERS AND HEADQUARTERS SUPPORT ACTIVITIES. (a) In General.—(1) Chapter 3 of title 10, United States Code, is amended by adding at the end the following new section: “§ 130a. Management headquarters and headquarters support activities personnel: limitation “(a) Limitation.—Effective October 1, 2002, the number of management headquarters and headquarters support activities personnel in the Department of Defense may not exceed 75 percent of the baseline number. “(b) Phased Reduction.—The number of management headquarters and headquarters support activities personnel in the Department of Defense— “(1) as of October 1, 1998, may not exceed 95 percent of the baseline number; “(2) as of October 1, 1999, may not exceed 90 percent of the baseline number; “(3) as of October 1, 2000, may not exceed 85 percent of the baseline number; and “(4) as of October 1, 2001, may not exceed 80 percent of the baseline number. “(c) Baseline Number.—In this section, the term ‘baseline number’ means the number of management headquarters and headquarters support activities personnel in the Department of Defense as of October 1, 1997. “(d) Limitation on Management Headquarters and Headquarters Support Personnel Assigned to the United States Transportation Command.—(1) Effective October 1, 1998, the number of management headquarters activities and management headquarters support activities personnel assigned to, or employed in, the United States Transportation Command may not exceed the number equal to 95 percent of the number of such personnel as of October 1, 1997. “(2) For purposes of paragraph (1), the United States Transportation Command shall be considered to include the following: “(A) The United States Transportation Command Headquarters.111 STAT. 1858 “(B) The Air Mobility Command of the Air Force. “(C) The Military Sealift Command of the Navy. “(D) The Military Traffic Management Command of the Army. “(E) The Defense Courier Service. “(F) Any other element of the Department of Defense assigned to the United States Transportation Command. “(3) The Secretary of Defense may waive or suspend operation of paragraph (1) in the event of a war or national emergency. “(e) Management Headquarters and Headquarters Support Activities Personnel Defined.—In this section: “(1) The term ‘management headquarters and headquarters support activities personnel’ means military and civilian personnel of the Department of Defense who are assigned to, or employed in, functions in management headquarters activities or in management headquarters support activities. “(2) The terms ‘management headquarters activities’ and ‘management headquarters support activities’ have the meanings given those terms in Department of Defense Directive 5100.73, entitled ‘Department of Defense Management Headquarters and Headquarters Support Activities’, as in effect on November 12, 1996. “(f) Limitation on Reassignment of Functions.—In carrying out reductions in the number of personnel assigned to, or employed in, management headquarters and headquarters support activities in order to comply with this section, the Secretary of Defense and the Secretaries of the military departments may not reassign functions in order to evade the requirements of this section. “(g) Flexibility.—If the Secretary of Defense determines, and certifies to Congress, that the limitation in subsection (b) with respect to any fiscal year would adversely affect United States national security, the Secretary may waive the limitation under that subsection with respect to that fiscal year. If the Secretary of Defense determines, and certifies to Congress, that the limitation in subsection (a) during fiscal year 2001 would adversely affect United States national security, the Secretary may waive the limitation under that subsection with respect to that fiscal year. The authority under this subsection may be used only once, with respect to a single fiscal year.”. (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “130a. Management headquarters and headquarters support activities personnel: limitation.”. (b) Implementation Report.—Not later than January 15, 1998, the Secretary of Defense shall submit to Congress a report— (1) containing a plan to achieve the personnel reductions required by section 130a of title 10, United States Code, as added by subsection (a); and (2) including the recommendations of the Secretary regarding— (A) the revision, replacement, or augmentation of Department of Defense Directive 5100.73, entitled “Department of Defense Management Headquarters and Headquarters Support Activities”, as in effect on November 12, 1996; and111 STAT. 1859 (B) the revision of the definitions of the terms “management headquarters activities” and “management headquarters support activities” under that Directive so that those terms apply uniformly throughout the Department of Defense. (c) Duties of Task Force on Defense Reform To Include Consideration Of Management Headquarters Activities.—(1) The Secretary of Defense shall require that the areas of study of the Task Force on Defense Reform (established by the Secretary of Defense on May 14, 1997, and headed by the Deputy Secretary of Defense) include an examination of the missions, functions, and responsibilities of the various management headquarters activities and management headquarters support activities of the Department of Defense. In carrying out that examination of those activities, the Task Force shall identify areas of duplication in those activities and recommend to the Secretary options to streamline, reduce, and eliminate redundancies. (2) The examination of the missions, functions, and responsibilities of the various management headquarters activities and management headquarters support activities of the Department of Defense under paragraph (1) shall include the following: (A) An assessment of benefits of consolidation or selected elimination of Department of Defense management headquarters activities and management headquarters support activities. (B) An assessment of the opportunities to streamline the management headquarters and management headquarters support infrastructure that were realized as a result of the enactment of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355) and the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104–106) or as result of other management reform initiatives implemented administratively during the period from 1993 through 1997. (C) An assessment of such other options for streamlining or restructuring the management headquarters and management headquarters support infrastructure as the Task Force considers appropriate and as can be carried out under existing provisions of law. (3) Not later than March 1, 1998, the Secretary of Defense shall submit to Congress a report on the results of the examination by the Task Force under this subsection. The Secretary shall include in the report any report to the Secretary from the Task Force with respect to the matters described in paragraphs (1) and (2). (d) Codification of Prior Permanent Limitation on OSD Personnel.—(1) Chapter 4 of title 10, United States Code, is amended by adding at the end a new section 143 consisting of— (A) a heading as follows: “§ 143. Office of the Secretary of Defense personnel: limitation”; and (B) a text consisting of the text of subsections (a) through (f) of section 903 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2617). (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “143. Office of the Secretary of Defense personnel: limitation.”.111 STAT. 1860 (3) Section 903 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2617) is repealed.