text: SECTION 1. DEFINITION.
  
      In this Act, the term ``agency'' means--
              (1) an Executive agency (as defined in section 105 of title 
          5, United States Code);
              (2) an office, agency, or other establishment in the 
          legislative branch which is not a part of another office, 
          agency, or other establishment in the legislative branch; and
              (3) an office, agency, or other establishment in the 
          judicial branch which is not a part of another office, agency, 
          or other establishment in the judicial branch.
  
  SEC. 2. 2013 SEQUESTER CANCELLATION.
  
      Notwithstanding any other provision of law, the sequestration of 
  budgetary resources for fiscal year 2013 ordered on March 1, 2013, 
  pursuant to section 251A of the Balanced Budget and Emergency Deficit 
  Control Act of 1985 is cancelled.
  
  SEC. 3. FLEXIBLE SEQUESTER IMPLEMENTED BY AGENCY HEADS.
  
      (a) In General.--Notwithstanding any other provision of law, the 
  budget sequester for an account in the security and non-security 
  categories required by section 251A of the Balanced Budget and 
  Emergency Deficit Control Act of 1985 for fiscal year 2013 shall be 
  implemented within each account as determined by the head of the agency 
  with spending authority over such account.
      (b) Appropriations Oversight.--
              (1) In general.--The head of an agency may not exercise the 
          authority provided in subsection (a) unless the head has 
          submitted a notice of implementation describing the proposed 
          exercise of authority to the Committees on Appropriations of 
          both Houses not later than 15 days before exercising such 
          authority and each such committee approves the implementation 
          as provided in paragraph (2).
              (2) Appropriations approval.--After the committees receive 
          an executive branch proposal for administering the sequester 
          under paragraph (1) and not later than 5 days after such 
          receipt, each committee, using standard procedures for 
          reprogramming, shall accept or reject the proposal. If a 
          proposal is accepted by both committees, the proposal may be 
          implemented. If either committee rejects a proposal and 
          notwithstanding section 2, sequestration within the relevant 
          agency will be administered through across the board cuts 
          consistent with section 251A of the Balanced Budget and 
          Emergency Deficit Control Act of 1985.
  
  SEC. 4. DEPARTMENT OF DEFENSE FLEXIBILITY IN MANAGEMENT OF MULTIYEAR 
                CONTRACTS.
  
      (a) In General.--In implementing under section 251(a)(1) of the 
  Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
  901(a)(1)) the discretionary spending reductions required by section 
  251A(7) of the Balanced Budget and Emergency Deficit Control Act of 
  1985, the Secretary of Defense may, in consultation with the Director 
  of the Office of Management and Budget, take appropriate actions in the 
  management of current multiyear contracts of the Department of Defense 
  to minimize the effects of such reductions in the carrying out of such 
  contracts.
      (b) Authority for Commencement of Certain Programs, Projects, and 
  Activities of the Department of Defense.--Notwithstanding section 102 
  of the Continuing Appropriations Resolution, 2013 (Public Law 112-175), 
  appropriations or funds made available or authority granted pursuant to 
  section 101 of that Resolution for the Department of Defense may be 
  used for the programs, projects, and activities specified in H.R. 5856, 
  Department of Defense Appropriations Act, 2013, as reported with an 
  amendment in the Senate on August 2, 2012 in the 112th Congress or the 
  funding tables in division D of the National Defense Authorization Act 
  for Fiscal Year 2013 (Public Law 112-239), including the following:
              (1) The new production of items not funded for production 
          in fiscal year 2012 or prior fiscal years.
              (2) The increase in production rates above those sustained 
          with fiscal year 2012 funds.
              (3) The initiation, resumption, or continuation of any 
          project, activity, operation, or organization for which 
          appropriations, funds, or other authority were not available 
          during fiscal year 2012.
      (c) Clarification of Availability of Multiyear Procurement 
  Authority for the Department of Defense.--Notwithstanding section 102 
  of the Continuing Appropriations Resolution, 2013 (Public Law 112-175), 
  subsection (l)(3) of section 2306b of title 10, United States Code, or 
  any other provision of law, the Secretary of Defense and the 
  Secretaries of the military departments may enter into contracts for 
  multiyear procurements that are authorized by the National Defense 
  Authorization Act for Fiscal Year 2013 (Public Law 112-239).
      (d) Availability of Certain Shipbuilding and Conversion Funds.--Of 
  the amounts provided by section 101 of the Continuing Appropriations 
  Resolution, 2013 (Public Law 112-175) for ``Shipbuilding and 
  Conversion, Navy'', $372,573,000 shall be available to fund prior year 
  shipbuilding cost increases. The funds so available shall be 
  transferred to, and merged with, the following appropriations accounts 
  in the amounts specified:
              (1) ``Shipbuilding and Conversion, Navy, 2009/2013'' for 
          the CVN Refueling Overhauls Program, $135,000,000.
              (2) ``Shipbuilding and Conversion, Navy, 2007/2013'' for 
          the LHA Replacement Program, $156,685,000.
              (3) ``Shipbuilding and Conversion, Navy, 2008/2013'' for 
          the LPD-17 Amphibious Transport Dock Program, $80,888,000.
target: Cancels the sequestration of budgetary resources for FY2013 ordered on March 1, 2013, pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 (Balanced Budget Act).  Requires the budget sequester for an account in the security and non-security categories under the Balanced Budget Act for FY2013 to be implemented within each account as determined by the head of the agency with spending authority over such account. Requires: (1) the agency head to notify the Appropriations Committees of a proposed exercise of authority for implementing a sequester, and (2) the Appropriations Committees to approve any agency proposal. Authorizes the Secretary of Defense (DOD) to: (1) take appropriate actions in the management of current DOD multiyear contracts to minimize the effects of a sequester in carrying out such contracts; and (2) begin new programs, projects, and activities and enter into new contracts for multiyear procurements that are authorized by the National Defense Authorization Act for FY2013. Allocates funding for prior year shipbuilding cost increases for the Navy. 
feat_title: A bill to permit flexibility in the application of the budget sequester by Federal agencies.