Summary of the FY17 National Defense Authorization Act

Thought this might give some perspective of upcoming changes.

Office of the Chief of Legislative Liaison Summary of the FY17 National Defense Authorization Act (NDAA)

The text of the FY 17 NDAA Conference report was filed Wednesday afternoon paving the way for a House floor vote as early as Friday. The report will be considered without amendment for one hour before a final vote in the House. The Senate is projected to take up the measure next week. The most controversial provisions including language on the sage grouse and non-discrimination were removed, so the President is likely to sign the bill shortly after Senate passage. The conference report includes a $618.7 B topline including an extra $3.2B above the President's budget and OCO supplemental request. The increased funding is mostly for end strength and O&M.

Significant provisions for the Army include increases in FY 17 authorized endstrength (16K AC, 8K ARNG, 4K USAR), at least $300M in additional readiness funding, ERI funding, and authorization of multi-year aviation procurement contracts. Notable DOD wide provisions include the centralization of control of the Military Health System under the supervision of the Defense Health Agency, restructuring the role of the Under Secretary of Defense for Acquisition Technology and Logistics, and a 2.1% pay raise across the force.

Selected highlights of the bill below:

Readiness: Military Advice of the Joint Chiefs Other than the Chairman – Amends 10USC to enhance the positions of the other members of the Joint Chiefs as military advisors by replacing the “advice on request” provision with a new paragraph authorizing members of the Joint Chiefs other than the Chairman to provide advice individually or collectively based on “the judgement of the military member.” Consultation by Chairman – Amends 10USC provision on consultation by the Chairman with other members of the Joint Chiefs from “as he considers appropriate” to “as necessary” to enhance the Joint Chiefs of Staff as a corporate body and better enable the Chairman to act as the principal military adviser to civilian leaders. Combatant Commander Council – Did NOT include the Senate provision which would have established a Combatant Commander Council whose membership included the CJCS and VCJCS, but not the other members of the Joint Chiefs of Staff. This relieves concerns about codifying a global strategic coordinating body that did not include all members of the JCS. Assigned Forces – Amends 10USC requirement for military departments to assign all operational forces to a COCOM. Permits service-retained operational forces for carrying out the title 10 responsibilities of the Secretaries of the military departments. Assessment of Joint Ground Forces – Requires the SecDef, in consultation with the CJCS, CSA and CMC, to provide for and oversee an assessment of joint ground forces. The conference provision added the requirement to conduct the assessment in consultation with the CSA and CMC, which was not required in the original Senate provision. Reconnaissance Strike Group – Requires the CJCS and the CSA, in consultation with the Commander EUCOM, to conduct separate analysis of alternative Army operational concepts and organizational designs known as the Reconnaissance Strike Group. The conference provision excludes the requirement in the original Senate provision that would have required the SecDef direct a COCOM to carry out testing, evaluation, development and validation of RSG concepts, platforms and structure. EOD as a Basic Branch – Does NOT include the House provision amending 10USC3063 to add Explosive Ordnance Disposal Corps to the list of Army branches. Expansion of 12304b Authority – Does NOT include the House provision amending 10USC12304b to allow selected reserve units to be ordered to active duty for emerging requirements in the year of execution. Conferees note that the authority to order Selected Reserve units to Active Duty under section 12304(b) is designed to incentivize deliberate planning by requiring missions to be planned in advance and included in annual budget submissions, and that other provisions of title 10 provide authority to order RC members and units to Active Duty to address emerging requirements. Civilian Marksmanship Program –Does NOT include the House provision that would require the SecArmy to transfer excess M1911 pistols to CMP. Repurposing and Reuse of Surplus Military Firearms – Does NOT include the Senate provision requiring the transfer of excess firearms from Anniston, Alabama to Rock Island Arsenal, Illinois to be repurposed. BRAC – Does not authorize a new BRAC round. The conferees noted that the SecDef has yet to provide the force structure plan, infrastructure inventory, and assessment of infrastructure necessary to support the force structure as required in the FY 2016 NDAA, which they believe is necessary to evaluate the Department’s need, and request for a new base realignment and closure round. MILCON – Authorizes all Army projects requested in the President’s Budget, including $33 million for the mass migration complex at Naval Station Guantanamo Bay. Seven additional MILCON projects were authorized – three for Army, three for ARNG, and one for USAR. Facilities Sustainment, Restoration and Modernization – Authorized an additional $107.9 million to address Facilities Sustainment shortfalls. Base Operations Support – Authorized $22.1 million above the President’s Budget Request to support an eleventh CAB. ERI – Approved the Army's request for MILCON projects in support of ERI ($19 million for planning/design). Arlington National Cemetery – Authorizes SecArmy to acquire land by whatever means the Secretary determines is sufficient for the expansion of Arlington National Cemetery in order to maximize the number of interment sites and the compatible use of adjacent properties. This provision supports Army’s Southern Expansion efforts.
Facility Conversion Projects – Provides DoD with additional flexibility to manage and optimize its existing infrastructure by allowing O&M funding to be used to convert existing facilities for another military purpose rather than building new facilities or using military construction funding. This was an Army legislative proposal. Laboratory Revitalization Projects – Increases the minor military construction cap for laboratory revitalization projects to $6 million and extends this special authority until 2025. This extends a program that was scheduled to expire in 2018 and provides DOD with additional flexibility to address infrastructure shortfalls in DOD laboratories. This was an Army legislative proposal. Immigration – Does not prohibit unused military facilities from being made available to house unaccompanied undocumented minors. Requires certification that facilities made available would not negatively affect military training, operations, readiness, or other military requirements. Readiness Funding Increases – Adds $54.6 million above the President’s budget to support an eleventh Army Combat Aviation Brigade; $120 million above the President’s budget for Active Army, Guard, and Reserve home station training; $25 million above the President’s budget for Army prepositioned stocks; $110.9 million above the President’s budget for Army flying hour program and flight training. This fulfilled an Army Unfunded Requirement. Temporary Direct Hire Authority – Provides military depots, shipyards, and arsenals with direct-hire authority to enhance the ability to bring temporary and term employees into the permanent workforce in order to alleviate skilled workforce shortages. Provides DOD with authority to hire students currently participating in DOD internship programs directly into the permanent DOD workforce in order to optimize the experience they have already gained. Medical Provisions Consolidation of the Medical Departments into the Defense Health Agency – The bill requires the Director of the Defense Health Agency, beginning October 1,2018, to take responsibility for the administration of each MTF, including all matters with respect to: 1) budget; 2) information technology; 3) health care administration and management; 4) administrative policy and procedure; 5) military medical construction and 6) any other matters the Secretary determines appropriate. The commanders remain responsible for readiness of the force and civilian employees at each facility and for the furnishing of healthcare. The amendment would require the establishment of a professional staff within the Defense Health Agency to provide policy, oversight, and direction of all matters related to the administration of MTFs. The SECDEF will establish DHA Asst Directors for administration, IT, Financial OPS, Health care OPS, and Medical Affair. The amendment would codify the roles and responsibilities of the Services’ Surgeons General. The Army SG serves as the principal advisor to SEC Army and the COS of the Army on all health and medical matters including strategic planning and policy development within the Army. The Army SG serves as the Chief Medical Advisor for the Army to the DHA while still retaining Title 10 responsibilities.
The SECDEF must develop an implementation plan and to submit: 1) an interim report providing a preliminary draft of the plan to the Committees on Armed Services of the Senate and the House of Representatives by March 1, 2017; and 2) a final report to the committees by March 1, 2018, containing a final version of the plan. The Comptroller General of the United States must submit a review of the Department’s preliminary draft of the plan by September 1, 2017, and a review of the final version of the plan by September 1, 2018. Although the medical departments were not disestablished and the TSG retained title 10 responsibilities, the provision aligns DHA as the lead for the healthcare system with the Service SG’s in advisory type role. In 2017-2018, there will be a significant amount of planning and establishment of policy, systems, and procedures within the Medical Health System for implementation. This is very likely to significantly cut into the service regions and OTSG Staff requirements and responsibilities. TRICARE Reform – Improves access to care for TRICARE beneficiaries by requiring DOD to extend clinic hours for urgent and primary care services. Eliminates prior authorization for outpatient services, including urgent care. Reforms TRICARE by formalizing the system into a Health Maintenance Organization and Preferred Provider Organization system, but establishes two fee structures for the next fifty years, one for current and another for future retirees. The provision drops the proposed enrollment fee for AD families enrolled in Prime at the MTF as opposed by the Army. Personnel Reform of Basic Housing Allowance – Requires DoD to report back with a revised pay table and a plan to transition to a salary system NLT 01Jan18. Initial assessment due to Committees NLT 01Mar17. Requirement for the report is extensive with the intent of the Congress to implement a single-salary pay system where BAH and BAS are incorporated into base salary. The report also requires legislative and administrative requirement to implement the new pay structure and a bridging strategy to transition from current pay system to a new pay structure.
Military Pay – Raises military pay by 2.1%, $330 million above the President’s request for an increase of 1.6%. This pay raise applies to all military personnel to include GO’s.

End Strength – Authorizes End Strength for all Components as follows: FY 2016 FY 2017 FY2017 Compo Authorized Request Authorized Active 475,000 460,000 476,000

ARNG 342,000 335,000 343,000 USAR 198,000 195,000 199,000

Reduction in GO/FO Positions – Decreases the overall General and Flag officer numbers by 110 NLT 31Dec22. For Army this would translate to:
ARMY ONLY Current Maximum Allowable per Sec. 501 Army Authorization 231 220 Joint Pool 102 82 (Min Allowable: 75) Delta – (31) Total Cap 333 302

Requires SecDef to conduct a study of GO/FO requirements with a goal of identifying and justifying positions in terms of overall force structure, scope of responsibility, command and control requirements and force readiness and to identify an additional 10% (above 110 mandated) reduction. Study is due to Committees NLT 01Apr17.
Repeals statutory specification of general or flag officer grade for various positions in the Armed Forces. Amends grade requirement of Section 3023(a), 3036(b) and 3037(a) Title X for various General Officer positions by striking language reference specific grades of aforementioned positions. The provision does not affect the grade of an officer currently serving in the positions and would not prohibit the positions from being filled by an officer with the same, or a higher, or lower grade than the law currently requires.
SES Reductions – Limits total number of Title 5 Senior Executive Service positions authorized to 1,260 to be achieved NLT 31Dec22. HQEs are limited to 200 positons. Requires submission of a plan to Committees NLT Dec17. The language does not mandate allocations per service. Based on Sep16 Data: Army Allocations vs. Onboard Strength was 302 (Allocations) / 263 (Onboard).
Parental Leave – Authorizes up to 12 weeks of leave for the primary caregiver in connection with the birth of a child; authorizes up to 6 weeks of leave for the primary caregiver in the case of adoption of a child; and authorizes up to 21 days leave for the secondary caregiver in the case of the birth of a child or adoption of a child. The Administration objected to the use of primary and secondary caregiver without legislative definition. Additionally, the Administration feels that the parental leave mandate would diminish the plenary authority of SecDef and undermine the services ability to manage the force.
CA National Guard Bonus Recoupment – Directs DOD to complete a review NLT 30Jul17 of all bonus pays, special pays, student loan repayments and similar special payments made to CA NG Servicemembers between 01Jan04 – 31Dec15. Establishes as statute of limitations for debt recovery (not to exceed 10 years) form the date the debt was incurred. Amends existing language and broadens authority to cancel or remiss debt to include SMs of the Army whether as a regular or a reserve in active status. Also requires SecDef to notify consumer credit reporting agencies on behalf of SMs as appropriate.
Records Review- Requires a review of the service records of Asian American and Native American Pacific Islander veterans from the Korean War and Vietnam War to determine whether racial bias unjustly prevented them from receiving Medals of Honor. Child Abuse- Enacts the reforms known as Talia’s Law, which would require the notification of State Child Protective Services when there is suspected child abuse and neglect on military installations. Veterans Preference- Does not include language limiting the use of veterans’ preference in hiring for federal civilian employment, but does require the secretaries of Defense, Labor, and Veterans Affairs to coordinate a report on how the current process works and the impacts of preferential hiring on veterans and non-veterans. SHARP SAPRO report- Extends the requirement for the DOD Sexual Assault Prevention and Response Office’s annual report (SAPRO report) on sexual assault on in the military.
Family Advocacy Report- Requires the DOD Family Advocacy Program, which addresses domestic abuse in the military, to submit a report to Congress and coordinate its submission with the SAPRO report.
Retaliation- Requires the use of metrics to evaluate DOD’s efforts to respond to retaliation in connection with reports of sexual assault in the Armed Forces. Hazing-Requires DOD to standardize a system to collect reports of hazing, and requires improved training to better assist members in recognizing, preventing, and responding to hazing. UCMJ Reform- Modernizes the Uniform Code of Military Justice (UCMJ) based on recommendations developed over two years of work by the Military Justice Working Group, including: a. Improves transparency by providing public access to court documents and pleadings b. Improves visibility of sentencing dates by replacing unitary sentencing with offense-based sentencing. c. Expands the statute of limitations for child abuse d. Creates several new offenses, including a prohibition on retaliation and a prohibition on inappropriate relationships between a military recruit or trainee and a person of special trust. Modernization & Procurement Distributed Common Ground System – Army (DCGS-A) – The bill decrements $24.7 million from the program authorizing $217.8 million. The bill’s language limits the Army’s ability to conduct the Battalion Fly-off insofar as we must award a contract for such a capability within 180 days after enactment of the act. The language includes a change from commercial off-the-shelf (COTS) to “government off-the-self (GOTS)” which gives flexibility to the Army to use existing software. This change was requested through the committee staff. The language also requires USD-AT&L in consultation with DOT&E to submit an assessment to Congress of Increment 2 by 1 March, 2018. We assess that the limitations imposed by the language could impact the way ahead for the Battalion Fly off if we are unable to identify a solution and award a contract by approximately May 2017. Limitation on Funds for Patriot Lower Tier Air and Missile Defense Capability of the Army – The bill decreases the amount of RDT&E (604114A – $35.132M) withhold to 25% from the original 50%. Not more than 75% of the funds may be obligated until the two original requirements are met by MDA and the CJCS. Additionally, a restriction is placed on the Army to not obligate more than 90% of funds until the CSA submits a determination on the technology maturation and risk reduction of the LTAMD radar acquisition. Lastly, the conference report notes that the GAO will be directed to assess the Army’s PATRIOT maintenance and recapitalization plans to ensure that operational needs are met.

Acquisition Provisions – The bill effectively splits the duties of the USD AT&L into two new Under Secretaries: an Under Secretary of Defense for Acquisition & Sustainment that remains the senior DOD acquisition official and an Under Secretary of Defense for Research and Engineering whose duties focus on technology innovation. The bill also establishes a Chief Management Officer within the Department of Defense and delays implementation of these changes by one year, until 1 February 2018. Cyber-Elevates Cyber Command from a sub-unified command under STRATCOM to an independent Combatant Command, enabling it to better synchronize and conduct cyber operations using the proper statutory authorities. All active and reserve cyber operations forces of the armed forces stationed in the United States shall be assigned to Cyber Command. Responsibilities and Reporting of the CIO to the Sec Def- The conferees direct the Secretary of Defense to develop a plan within 180 days after the enactment of this Act to implement a more optimized organizational structure and processes to support information management and cyber operations to include the policy, direction, oversight and acquisition functions performed by the Deputy Chief Management Officer, the Chief Information Officer, the Under Secretary of Defense for Acquisition, Technology and Logistics, the Under Secretary for Policy, and the Under Secretary for Intelligence and any other relevant entity in the Department of Defense. Limitation on full deployment of Joint Regional Security Stacks- Military departments may not declare FOC on JRSS until the operational testing and written certification is completed. Strategy to incorporate Army Reserve Component Cyber Protection Teams into DoD Cyber Mission Force- NLT 180 days after the enactment of this Act, the Secretary of the Army shall provide to the HASC and SASC a briefing on the strategy for incorporating reserve component cyber protection teams into the cyber mission force of the DoD. Stryker Upgrades – decremented of $11M for early to need, authorizes $433M. Cyberspace Operations Forces and Force Support, (PE 305251A) – Program was fully funded going into conference, program decremented by $10M for Inadequate justification, authorizes $30.510M. Integrated Personnel and Pay System-Army (IPPS-A) – decrement of $11M for unjustified growth, authorized $144.584M Automated Data Processing Equipment (ADPE), Maneuver Control System (MCS), Army Contract Writing System (ACWS), Global Combat Support System (GCSS) and WIN-T – Ground Forces Tactical Network – All programs were fully funded. Multi-year contracts-Authorizes multi-year procurement contracts for AH-64 Apache and UH-60 Blackhawk helicopters. Cyber-Elevates Cyber Command from a sub-unified command under STRATCOM to an independent Combatant Command, enabling it to better synchronize and conduct cyber operations using the proper statutory authorities. Stryker Upgrades-Includes $433 million for Army Stryker vehicle upgrades, a $11 million reduction from the President's budget request. JLENS-Includes $2 million for JLENS program, a cut of $40 million. ARI-The conference report does not include any additional funds to cover Army unfunded requirements related to the Aviation Restructure Initiative (ARI). Missile Defense-Supports the phased adaptive approach to missile defense in Europe, U.S. missile defense, and strong international cooperation with allies, including $600 million for missile defense for Israel (including Arrow, David’s Sling, and Iron Dome), an increase of $455 million over the budget request.


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