1. Legislative Update DICC Meeting 9 October 2008

2. DoD Funding for 2009 Funding for the Department of Defense for the entire Fiscal Year 2009 signed by the President on 30 September.

3. Legislative Outlook for Next Administration As seen in previous changes in administrations: –Appointment and Confirmation of Senior Level Officials Will Take 2 to 6 Months –On Time (February 09) Budget Proposals for Fiscal Year 2010 is Doubtful –New Administration’s Views on Defense Priorities is Uncertain

4. Legislative Outlook for Next Congress Changes in Control of House and Senate Not Expected – Majority May Increase All House and Senate Committees will be Re-established – Changes in Major Committee Chairman Not Expected Changes in Government Oversight Committees Not Expected – Continuation of Waste, Fraud, and Ethics Legislation Expected

5. Legislative Outlook for Next Congress - Continued Issues Expected to be Addressed in New Congress –No-Bid/No-Competition/Sole- Source contracts –Contract bundling –Overseas support contracts –Contracting for private security guards –Blacklisting –Mandatory Fraud Reporting –U.S. Cost Accounting Standards to Apply to Federal Contracts Performed Outside the U.S.

6. Status of US – ROK Defense Cooperation Improvement Act  S.1846 Introduced by Senator Bond July 23, 2007 Referred to Senate Committee on Foreign Affairs – Waiting for Committee Action NDIA Sent Letters of Strong Support  H.R. 5443 Introduced by Representative Royce February 14, 2007, 52 Co-Sponsors. Passed in the House by a Unanimous Voice Vote on September 23, 2008, Sent to the Senate for Action on September 24, 2008 – Waiting Senate Action NDIA Sent Letters of Strong Support

7. Status of US – ROK Defense Cooperation Improvement Act H.R. 7177 “Naval Vessel Transfer Act of 2008” Introduced in the House by Representative Berman September 27, 2008, Includes ROK Language (section 203 Passed in the House by a Unanimous Voice Vote on September 27, 2008, Sent to the Senate for Action on September 29, 2008 Passed in the Senate by a Unanimous Voice Vote on October 1, 2008, Sent to the President for Signing