A bill to provide the Department of Defense certain new permanent authorities, and for other purposes.

Requires the Secretary of Defense to administer and not delegate responsibility for schools on military installations.

Amends the Department of Defense Authorization Act, 1978, to repeal the requirement for a reduction in the number of senior-grade military employees of the Department of Defense.

Amends the Department of Defense Appropriation Authorization Act, 1976, to increase the dollar amount activating the requirement that the Secretary report to Congress on the sale or transfer of defense articles valued at a specified amount.

Amends the Department of Defense Authorization Act, 1981 to limit to functions performed by 50 or more personnel the application of the requirement that the Secretary report to Congress on the conversion of performance of commercial and industrial type functions from Department personnel to private contractors.

Expands the authorization limitation on the Special Defense Acquisition Fund for FY 1984. Makes permanent the authority of the Secretary of Defense, in carrying out the Multilateral Memorandum of Understanding Between the North Atlantic Treaty Organization (NATO) Ministers of Defense concerning the NATO Airborne Warning and Control System (AWACS) Program, to waive reimbursement for the cost of specified functions performed by other than AWACS personnel and to assume contingent liability for program losses and specified charges.

Permits the Secretary of Defense to increase the number of civilian personnel beyond the authorized end strength to maintain a stable personnel force.

Increases the number of enlisted personnel who may be on active duty in support of the Reserve components.