[Congressional Record Volume 140, Number 136 (Monday, September 26, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 26, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
 CONFERENCE REPORT ON H.R. 4650, DEPARTMENT OF DEFENSE APPROPRIATIONS 
                               ACT, 1995

  Mr. HEFNER submitted the following conference report and statement on 
the bill (H.R. 4650) making appropriations for the Department of 
Defense for the fiscal year ending September 30, 1995, and for other 
purposes:

                  Conference Report (H. Rept. 103-747)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendments of the Senate to the bill (H.R. 
     4650) making appropriations for the Department of Defense for 
     the fiscal year ending September 30, 1995, and for other 
     purposes, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the Senate recede from its amendments numbered 25, 47, 
     56, 69, 71, 75, 88, 95, 98, 102, 103, 106, 109, 117, 130, 
     132, 133, 139, 140, 142, 148, 149, 164, and 215.
       That the House recede from its disagreement to the 
     amendments of the Senate numbered 12, 15, 20, 22, 23, 27, 29, 
     31, 33, 35, 39, 40, 41, 45, 51, 53, 55, 59, 61, 63, 64, 65, 
     66, 67, 74, 78, 83, 85, 87, 90, 92, 99, 119, 120, 121, 122, 
     123, 124, 126, 128, 136, 137, 146, 150, 151, 153, 154, 156, 
     166, 170, 171, 173, 180, 181, 182, 184, 185, 186, 187, 191, 
     196, 197, 203, 205, 206, and 209, and agree to the same.
       Amendment numbered 1:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 1, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert: $20,609,770,000; and the Senate agree to 
     the same.
       Amendment numbered 2:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 2, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $17,569,137,000; and the Senate agree to the same.
       Amendment numbered 3:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 3, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $5,774,871,000; and the Senate agree to the same.
       Amendment numbered 4:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 4, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $17,181,479,000; and the Senate agree to the same.
       Amendment numbered 5
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 5, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $2,161,620,000; and the Senate agree to the same.
       Amendment numbered 6:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 6, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $1,401,809,000; and the Senate agree to the same.
       Amendment numbered 7:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 7, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $348,748,000; and the Senate agree to the same.
       Amendment numbered 8:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 8, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $768,834,000; and the Senate agree to the same.
       Amendment numbered 9:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 9, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $3,339,505,000; and the Senate agree to the same.
       Amendment numbered 10:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 10, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $1,233,429,000; and the Senate agree to the same.
       Amendment numbered 11:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 11, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $17,507,088,000; and the Senate agree to the same.
       Amendment numbered 13:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 13, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert: : Provided, That of the funds appropriated 
     in this paragraph, not less than $388,599,000 shall be made 
     available only for conventional ammunition care and 
     maintenance: Provided further, That of the funds appropriated 
     in this paragraph, $5,800,000 shall be made available only 
     for the removal of equipment and the repair and restoration 
     of structures at the National Center for Toxicological 
     Research, Jefferson, Arkansas: Provided further, That of the 
     funds appropriated under this heading, not less than 
     $5,000,000 shall be made available only for payment to the 
     DoD 50th Anniversary of World War II Commemoration 
     Appropriation: Provided further, That of the funds 
     appropriated under this heading, $9,500,000 shall be made 
     available only to purchase an easement for use by the Army's 
     Schofield Barracks Military Reservation for the purpose of 
     waste water disposal: Provided further, That notwithstanding 
     Army Regulation 200-1, the Secretary of the Army may obligate 
     not to exceed $2,000,000 through the Army Corps of Engineers 
     to contribute to a multi-party remediation effort at the 
     Alaska Roundhouse site at Cordova, Alaska: Provided further, 
     That such funds may only be obligated to match contributions 
     made by other private, State or Municipal authorities to the 
     remediation effort; and the Senate agree to the same.
       Amendment numbered 14:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 14, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $21,054,470,000; and the Senate agree to the same.
       Amendment numbered 16:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 16, and agree to the same 
     with an amendment, as follows:
       Delete the matter stricken and delete the matter inserted 
     by said amendment.
       And the Senate agree to the same.
       Amendment numbered 17:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 17, and agree to the same 
     with an amendment, as follows:
       After the word ``Provided'' named in said amendment delete 
     the word ``further'' and in lieu of the sum named in said 
     amendment insert: $45,874,000; and the Senate agree to the 
     same.
       Amendment numbered 18:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 18, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert: : 
     Provided further, That of the funds appropriated under this 
     heading, $46,300,000 shall be made available only for naval 
     shipyard modernization projects to remain available for 
     obligation until September 30, 1996; and the Senate agree to 
     the same.
       Amendment numbered 19:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 19, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $1,988,215,000; and the Senate agree to the same.
       Amendment numbered 21:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 21, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $18,763,427,000; and the Senate agree to the same.
       Amendment numbered 24:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 24, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert: : 
     Provided, That the Secretary of the Air Force may acquire all 
     right, title and interest of any party in and to two parcels 
     of real property, including improvements thereon, consisting 
     of approximately 27 acres, located near King Salmon Air Force 
     Station: Provided further, That this authority may be 
     exercised only for the purpose of conducting a response 
     action in accordance with the Comprehensive Environmental 
     Response, Compensation, and Liability Act (42 U.S.C. 9601-
     9675) and the Air Force Installation Restoration Program; and 
     the Senate agree to the same.
       Amendment numbered 26:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 26, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert: $10,500,104,000; and the Senate agree to 
     the same.
       Amendment numbered 28:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 28, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $1,243,209,000; and the Senate agree to the same.
       Amendment numbered 30:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 30, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $831,219,000; and the Senate agree to the same.
       Amendment numbered 32:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 32, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $81,862,000; and the Senate agree to the same.
       Amendment numbered 34:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 34, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $1,471,505,000; and the Senate agree to the same.
       Amendment numbered 36:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 36, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $2,440,288,000; and the Senate agree to the same.
       Amendment numbered 37:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 37, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken by said amendment, amended to 
     read as follows: : Provided, That of the funds appropriated 
     in this paragraph, $10,000,000 shall be made available only 
     for a National Guard Outreach Program in the Los Angeles 
     School District; and the Senate agree to the same.
       Amendment numbered 38:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 38, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $2,772,928,000; and the Senate agree to the same.
       Amendment numbered 42:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 42, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $1,780,200,000; and the Senate agree to the same.
       Amendment numbered 43:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 43, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert:


                            Summer Olympics

       For logistical support and personnel services (other than 
     pay and non-travel-related allowances of members of the Armed 
     Forces of the United States, except for members of the 
     reserve components thereof called or ordered to active duty 
     to provide support for the 1996 Games of the XXVI Olympiad 
     and the X Paralympiad to be held in Atlanta, Georgia) 
     provided by any component of the Department of Defense to the 
     1996 Games of the XXVI Olympiad and the X Paralympiad; 
     $14,400,000: Provided, That funds appropriated under this 
     heading shall remain available for obligation until September 
     30, 1997.


                   1995 Special Olympics World Games

       For logistical support and personnel services (other than 
     pay and non-travel-related allowances of members of the Armed 
     Forces of the United States, except for members of the 
     reserve components thereof called or ordered to active duty 
     to provide support for the 1995 Special Olympics World Games 
     to be held in New Haven, Connecticut) provided by any 
     component of the Department of Defense to the 1995 Special 
     Olympics World Games; $3,000,000.
       And the Senate agree to the same.
       Amendment numbered 44:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 44, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $65,000,000; and the Senate agree to the same.
       Amendment numbered 46:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 46, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:


                  FORMER SOVIET UNION THREAT REDUCTION

       For assistance to the republics of the former Soviet Union, 
     including assistance provided by contract or by grants, for 
     facilitating the elimination and the safe and secure 
     transportation and storage of nuclear, chemical and other 
     weapons; for providing incentives for demilitarization; for 
     establishing programs to prevent the proliferation of 
     weapons, weapons components, and weapons-related technology 
     and expertise; for programs relating to the training and 
     support of defense and military personnel for 
     demilitarization and protection of weapons, weapons 
     components and weapons technology and expertise; for 
     supporting the demilitarization of military technologies and 
     production infrastructure; $400,000,000 to remain available 
     until expended: Provided, That of the funds appropriated 
     under this heading, $10,000,000 shall be made available only 
     for the continuing study, assessment, and identification of 
     nuclear waste disposal by the former Soviet Union in the 
     Arctic and North Pacific regions.
       And the Senate agree to the same.
       Amendment numbered 48:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 48, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $1,063,164,000; and the Senate agree to the same.
       Amendment numbered 49:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 49, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert: : 
     Provided, That the Secretary of the Army will report to the 
     House and Senate Committees on Appropriations on the concept, 
     organization, requirements, and mission need documents for 
     the High Capacity Air Ambulance, utilizing low cost fixed 
     wing aircraft, no later than April 15, 1995; and the Senate 
     agree to the same.
       Amendment numbered 50:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 50, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $813,795,000; and the Senate agree to the same.
       Amendment numbered 52:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 52, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $1,151,914,000; and the Senate agree to the same.
       Amendment numbered 54:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 54, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $1,181,221,000; and the Senate agree to the same.
       Amendment numbered 57:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 57, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $2,673,148,000; and the Senate agree to the same.
       Amendment numbered 58:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 58, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $4,627,645,000; and the Senate agree to the same.
       Amendment numbered 60:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 60, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $2,159,080,000; and the Senate agree to the same.
       Amendment numbered 62:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 62, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert: $417,779,000; and the Senate agree to the 
     same.
       Amendment numbered 68:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 68, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken by said amendment, amended to 
     read as follows:
       Nuclear submarine main steam condenser industrial base, 
     $1,000,000; ; and the Senate agree to the same.
       Amendment numbered 70:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 70, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $377,521,000 ; and the Senate agree to the same.
       Amendment numbered 72:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 72, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $5,412,464,000; and the Senate agree to the same.
       Amendment numbered 73:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 73, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $3,329,171,000; and the Senate agree to the same.
       Amendment numbered 76:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 76, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum named in said amendment insert: 
     $23,900,000; and the Senate agree to the same.
       Amendment numbered 77:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 77, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $422,410,000; and the Senate agree to the same.
       Amendment numbered 79:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 79, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $6,379,962,000 ; and the Senate agree to the same.
       Amendment numbered 80:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 80, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken by said amendment, amended to 
     read as follows: Provided, That the Department of the Air 
     Force shall initiate procurement of non-developmental airlift 
     aircraft no later than September 30, 1995; and the Senate 
     agree to the same.
       Amendment numbered 81:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 81, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $3,650,262,000; and the Senate agree to the same.
       Amendment numbered 82:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 82, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $288,401,000; and the Senate agree to the same.
       Amendment numbered 84:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 84, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $6,965,201,000; and the Senate agree to the same.
       Amendment numbered 86:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 86, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $2,088,230,000; and the Senate agree to the same.
       Amendment numbered 89:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 89, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $800,000,000; and the Senate agree to the same.
       Amendment numbered 91:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 91, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $5,521,413,000; and the Senate agree to the same.
       Amendment numbered 93:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 93, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $8,796,168,000; and the Senate agree to the same.
       Amendment numbered 94:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 94, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken by said amendment, amended to 
     read as follows: : Provided, That for continued research and 
     development programs at the National Center for Physical 
     Acoustics, centering on the ocean acoustics as it applies to 
     advanced antisubmarine warfare acoustics issues with focus on 
     ocean bottom acoustics, seismic coupling, sea- surface and 
     bottom scattering, oceanic ambient noise, acoustically active 
     surfaces, machinery noise, propagation physics, solid state 
     acoustics, electrorheological fluids, transducer development, 
     ultrasonic sensors, and other such projects as may be agreed 
     upon, $1,000,000 shall be made available, as a grant, to the 
     Mississippi Resource Development Corporation, of which not to 
     exceed $250,000 of such sum may be used to provide special 
     equipment as may be required for particular projects: 
     Provided further, That none of the funds appropriated in this 
     paragraph may be obligated or expended to develop or purchase 
     equipment for an Aegis destroyer variant (commonly known as 
     ``Flight IIA'') whose initial operating capability is 
     budgeted to be achieved prior to the initial operating 
     capability of the Ship Self-Defense program, nor to develop 
     sensor, processor, or display capabilities which duplicate in 
     any way those being developed in the Ship Self-Defense 
     program: Provided further, That funds appropriated in this 
     paragraph for development of the LPD-17 ship may not be 
     obligated unless the baseline design of the ship includes 
     cooperative engagement capability and sufficient own-ship 
     self-defense capability against advanced sea-skimming 
     antiship cruise missiles in the baseline design to achieve an 
     estimated probability of survival from attack by such 
     missiles at a level no less than any other Navy ship; and the 
     Senate agree to the same.
       Amendment numbered 96:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 96, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $12,202,572,000; and the Senate agree to the same.
       Amendment numbered 97:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 97, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert: : Provided, That not less than $12,000,000 
     of the funds appropriated in this paragraph shall be made 
     available only for the Joint Seismic Program and Global 
     Seismic Network administered by the Incorporated Research 
     Institutions for Seismology: Provided further, That not less 
     than $20,000,000 of the funds appropriated in this paragraph 
     shall be made available only for the National Center for 
     Manufacturing Sciences: Provided further, That not less than 
     $13,000,000 of the funds appropriated in this paragraph shall 
     be made available only to continue the establishment and 
     operation of an image information processing center 
     supporting the Air Force Maui Space Surveillance Site; and 
     the Senate agree to the same.
       Amendment numbered 100:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 100, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $9,099,387,000; and the Senate agree to the same.
       Amendment numbered 101:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 101, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert: : Provided, That not less than $75,000,000 
     of the funds appropriated in this paragraph shall be made 
     available only for the Sea-Based Wide Area Defense (Navy 
     Upper-Tier) program: Provided further, That $50,000,000 shall 
     be made available only to cover the costs (as defined in 
     section 502(5) of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a(5))) of loan guarantees issued pursuant to 
     subsection (b) (3) of such section: Provided further, That of 
     the funds appropriated in this paragraph, $15,000,000 shall 
     be transferred to the Department of Energy to address 
     environmental restoration and management needs through the 
     Center for Bioenvironmental Research: Provided further, That 
     not less than $20,000,000 of the funds appropriated in this 
     paragraph shall be made available only for an Experimental 
     Program to Stimulate Competitive Research (EPSCOR) in the 
     Department of Defense which shall include all states eligible 
     as of the date of enactment of this Act for the National 
     Science Foundation Experimental Program to Stimulate 
     Competitive Research; and the Senate agree to the same.
       Amendment numbered 104:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 104, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $238,003,000; and the Senate agree to the same.
       Amendment numbered 105:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 105, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $945,238,000; and the Senate agree to the same.
       Amendment numbered 107:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 107, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $724,400,000; and the Senate agree to the same.
       Amendment numbered 108:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 108, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert: . Provided, That $25,000,000 shall be 
     transferred to the Secretary of Transportation for title XI 
     loan guarantees: Provided further, That none of the funds 
     provided in this paragraph shall be used to award a new 
     contract that provides for the acquisition of any of the 
     following major components unless such components are 
     manufactured in the United States: auxiliary equipment, 
     including pumps, for all ship-board services; propulsion 
     system components (that is; engines, reduction gears, and 
     propellers); shipboard cranes; and spreaders for shipboard 
     cranes: Provided further, That the exercise of an option in a 
     contract awarded through the obligation of previously 
     appropriated funds shall not be considered to be the award of 
     a new contract: Provided further, That the Secretary of the 
     military department responsible for such procurement may 
     waive this restriction on a case-by-case basis by certifying 
     in writing to the Committees on Appropriations of the House 
     of Representatives and the Senate, that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to aquire capability for national 
     security purposes: Provided further, That not to exceed 
     $43,000,000 may be used for the purchase or construction of 
     vessels for the Ready Reserve Force component of the National 
     Defense Reserve Fleet, as established by section 11 of the 
     Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744): 
     Provided further, That $110,000,000 may be used for the 
     acquisition and conversion of one maritime prepositioning 
     ship for use by the Marine Corps MPS Enhancement Program, and 
     notwithstanding any other provision of law, that such 
     conversion shall be performed in a United States shipyard; 
     and the Senate agree to the same.
       Amendment numbered 110:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 110, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $9,930,759,000; and the Senate agree to the same.
       Amendment numbered 111:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 111, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $9,601,170,000; and the Senate agree to the same.
       Amendment numbered 112:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 112, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $329,589,000; and the Senate agree to the same.
       Amendment numbered 113:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 113, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert: : Provided further, That of the funds 
     appropriated under this heading, $5,000,000 shall be made 
     available only for nursing research: Provided further, That 
     of the funds appropriated under this heading, $14,500,000 
     shall be made available for obtaining emergency 
     communications services for members of the Armed Forces and 
     their families from the American National Red Cross as 
     authorized by law: Provided further, That until the end of 
     September 30, 1995, the Secretary of the Air Force shall, 
     through contract or otherwise, continue to provide health 
     care in the base hospital at Plattsburgh Air Force Base, New 
     York, to persons entitled to health care in facilities of the 
     uniformed services: Provided further, That of the funds 
     appropriated under this heading, not more than $3,400,000 
     shall be made available to permit private sector or non-
     federal physicians, who have used and will use the 
     antibacterial treatment method based upon the excretion of 
     dead and decaying spherical bacteria, to work in conjunction 
     with the Walter Reed Army Medical Center on a treatment 
     protocol and related studies for Desert Storm Syndrome-
     affected veterans; and the Senate agree to the same.
       Amendment numbered 114:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 114, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $575,449,000; and the Senate agree to the same.
       Amendment numbered 115:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 115, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $355,784,000; and the Senate agree to the same.
       Amendment numbered 116:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 116, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $198,965,000; and the Senate agree to the same.
       Amendment numbered 118:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 118, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert: $721,266,000, of which $10,000,000 is 
     hereby transferred to the ``Military Construction, Navy'' 
     appropriation for construction of a Relocatable Over-the-
     Horizon Radar in Puerto Rico: Provided, That section 9136 of 
     Public Law 102-396 is amended by adding the words 
     ``purchasing or'' before the word ``leasing'' and by changing 
     the designation ``T-47'' to ``OT-47B''; and the Senate agree 
     to the same.
       Amendment numbered 125:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 125, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum proposed by said amendment insert: 
     $92,684,000; and the Senate agree to the same.
       Amendment numbered 127:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 127, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Funds appropriated in title III of this Act may be used for 
     multiyear procurement contracts as follows:
       MK19-3 grenade machine guns;
       M16A2 rifles;
       M249 Squad Automatic Weapons;
        M4 carbine rifles.
       And the Senate agree to the same.
       Amendment numbered 129:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 129, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8013A; and the Senate agree to the same.
       Amendment numbered 131:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 131, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       In lieu of the matter restored by said amendment insert:
       Sec. 8021. All new Department of Defense procurements shall 
     separately identify software costs in the work breakdown 
     structure defined by MIL-STD-881 in those instances where 
     software is considered to be a major category of cost.
       And further
       Amend the matter retained by said amendment as follows:
       In lieu of section number ``8021'' named in said retained 
     matter insert: 8021A; and the Senate agree to the same.
       Amendment numbered 134:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 134, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter restored by said amendment as follows:
       In lieu of the sum named in said restored matter insert: 
     $203,736,000; and further
       Amend the matter retained by said amendment as follows:
       In lieu of section number ``8025'' named in said retained 
     matter insert: 8025A; and the Senate agree to the same.
       Amendment numbered 135:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 135, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8026A.
       After the words ``not apply to handguns'' named in said 
     retained matter insert: and ammunition; and the Senate agree 
     to the same.
       Amendment numbered 138:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 138, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8041A; and the Senate agree to the same.
       Amendment numbered 141:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 141, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8050A; and the Senate agree to the same.
       Amendment numbered 143:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 143, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert:
       Sec. 8054. (a) Funds appropriated in this Act to finance 
     activities of Department of Defense (DoD) Federally Funded 
     Research and Development Centers (FFRDCs) may not be 
     obligated or expended for a FFRDC if a member of its Board of 
     Directors or Trustees simultaneously serves on the Board of 
     Directors or Trustees of a profit-making company under 
     contract to the Department of Defense unless the FFRDC has a 
     DoD approved conflict of interest policy for its members.
       (b) None of the funds appropriated in this Act are 
     available to establish a new FFRDC, either as a new entity, 
     or as a separate entity administered by an organization 
     managing another FFRDC, or as a nonprofit membership 
     corporation consisting of a consortium of other FFRDCs and 
     other nonprofit entities.
       (c) The Secretary of Defense may not obligate more than 
     one-half of the funds available for each defense FFRDC, and 
     more than one-half of the total amount available for defense 
     FFRDCs, until the congressional defense committees receive 
     the annual funding ceilings for fiscal year 1995 for each 
     defense FFRDC and each subcomponent of a defense FFRDC 
     identified as a separate sub-entity due to the significantly 
     unique nature of its functions.
       (d) Limitation on Compensation. No employee or executive 
     officer of a defense FFRDC may be compensated at a rate 
     exceeding Executive Schedule Level I by that FFRDC: Provided, 
     That the restriction contained in this subsection shall not 
     take effect until July 1, 1995.
       (e) Limitation on Compensation. No member of a Board of 
     Directors, Trustees, Overseers, Advisory Group, Special 
     Issues Panel, Visiting Committee, or any similar entity of a 
     defense FFRDC may be compensated for his or her services as a 
     member of such entity except under the same conditions, and 
     to the same extent, as members of the Defense Science Board: 
     Provided, That a member of any such entity shall be allowed 
     travel expenses and per diem as authorized under the Federal 
     Joint Travel Regulations, when engaged in the performance of 
     membership duties: Provided further, That the restriction 
     contained in this subsection shall not take effect until July 
     1, 1995.
       (f) Notwithstanding any other provision of law, none of the 
     funds available to the Department of Defense from any source 
     during fiscal year 1995 may be used by a defense FFRDC, 
     through a fee or other payment mechanism, for charitable 
     contributions, for construction of new buildings, for payment 
     of cost sharing for projects funded by government grants, or 
     for absorption of contract overruns.
       (g) Notwithstanding any other provision of law, of the 
     amounts available to the Department of Defense during fiscal 
     year 1995, not more than $1,252,650,000 may be obligated for 
     financing activities of FFRDCs: Provided, That the total 
     amount appropriated in title IV of this Act is hereby reduced 
     by $100,000,000 to reflect the funding ceiling contained in 
     this subsection.
       (h) The total amount appropriated to or for the use of the 
     Department of Defense in title IV of this Act is reduced by 
     an additional $251,534,000 to reflect savings from the 
     decreased use of non-FFRDC consulting services by the 
     Department of Defense.
       (i) The total amount appropriated to or for the use of the 
     Department of Defense in title IV of this Act is reduced by 
     an additional $19,055,000 to reflect savings from the 
     decreased use of major non-profit federally-funded research 
     institutions and university-affiliated research centers by 
     the Department of Defense.
       And the Senate agree to the same.
       Amendment numbered 144:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 144, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8055A; and the Senate agree to the same.
       Amendment numbered 145:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 145, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8058A, and further
       On page 77, line 12, of the House engrossed bill, H.R. 
     4650, strike out ``$2,000,000'' and insert in lieu thereof: 
     $1,000,000; and the Senate agree to the same.
       Amendment numbered 147:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 147, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8064A; and the Senate agree to the same.
       Amendment numbered 152:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 152, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8075A; and the Senate agree to the same.
       Amendment numbered 155:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 155, and agree to the same 
     with an amendment, as follows:
        Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       In lieu of the matter retained by said amendment insert:
       Sec. 8081A. In addition to amounts appropriated or 
     otherwise made available by this Act, $67,000,000 is hereby 
     appropriated and shall be made available only for liquidating 
     deficiencies in the amounts specified in the appropriations 
     ``National Guard Personnel, Army, 1993'', $55,000,000; and 
     ``Reserve Personnel, Army, 1993'', $12,000,000.
       And the Senate agree to the same.
       Amendment numbered 157:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 157, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert:
       Sec. 8090. Notwithstanding any other provision of law, 
     funds appropriated in this Act for the High Performance 
     Computing Modernization Program shall be made available only 
     for the upgrade, purchase, or modernization of supercomputing 
     capability and capacity at Department of Defense (DoD) 
     science and technology sites under the cognizance of the 
     Director of Defense Research and Engineering and DoD test and 
     evaluation facilities under the Director of Test and 
     Evaluation, OUSD (A&T): Provided, That the contracts, 
     contract modifications, contract options, or other agreements 
     are awarded as the result of full and open competition based 
     upon the requirements of the user.
       And the Senate agree to the same.
       Amendment numbered 158:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 158, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter restored by said amendment as follows:
       In lieu of the number ``75'' named in said restored matter 
     in two instances insert: 50 , and further
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8093A; and the Senate agree to the same.
       Amendment numbered 159:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 159, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8094A; and the Senate agree to the same.
       Amendment numbered 160:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 160, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum named in said amendment insert: 
     $75,000,000; and the Senate agree to the same.
       Amendment numbered 161:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 161, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8097A; and the Senate agree to the same.
       Amendment numbered 162:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 162, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert:


                          (Transfer of Funds)

       Sec. 8099. Upon enactment of this Act, the Secretary of 
     Defense shall make the following transfers of funds: 
     Provided, That the amounts transferred shall be available for 
     the same purposes as the appropriations to which transferred, 
     and for the same time period as the appropriation from which 
     transferred: Provided further, That the amounts shall be 
     transferred between the following appropriations in the 
     amounts specified:

     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1986/1990'':
       CG-47 cruiser program, $6,000.000;

       LSD-41 landing ship dock program, $1,700,000;
       T-AGOS ocean surveillance ship program, $5,000,000;
       For craft, outfitting, post delivery, and cost growth, 
     $2,438,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1986/1990'':
       SSN-688 attack submarine program, $11,719,000;
       MSH coastal mine hunter program, $3,419,000;
     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1987/1991'':
       Trident ballistic missile submarine program, $650,000;
       DDG-51 destroyer program, $633,000;
       CG-47 cruiser program, $283,000;
       T-AO fleet oiler program, $2,800,000;
       AO conversion program, $400,000;
       For craft, outfitting, and post delivery, $5,900,000;
       Weapons Procurement, Navy, 1993/1995, $18,069,000;
       National Guard and Reserve Equipment, 1994/1996, 
     $5,145,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1987/1991'':
       SSN-688 attack submarine program, $18,496,000;
       AOE fast combat support ship program, $15,384,000;

     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1988/1992'':
       CG-47 cruiser program, $15,351,000;
       LSD-41 cargo variant ship program, $4,773,000;
       LHD-1 amphibious assault ship program, $7,028,000;
       AO conversion program, $1,900,000;
       Aircraft Procurement, Navy, 1993/1995, $100,642,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1988/1992'':
       TRIDENT ballistic missile submarine program, $6,035,000;
       SSN-688 attack submarine program, $19,659,000;
       CVN nuclear aircraft carrier program, $104,000,000;

     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1989/1993'':
       LHD-41 amphibious assault ship program, $3,400,000;
       T-AO fleet oiler program, $3,488,000;
       T-AGOS surveillance ship program, $3,197,000;
       AO conversion program, $1,300,000;
       Weapons Procurement, Navy, 1993/1995, $178,000;
       Other Procurement, Navy, 1993/1995, $22,400,000;
       Research, Development, Test and Evaluation, Navy, 1994/
     1995, $41,700,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1989/1993'':
       SSN-688 attack submarine program, $18,939,000;
       SSN-21 attack submarine program, $37,123,000;
       MHC coastal mine hunter program, $1,700,000;
       AOE combat support ship program, $17,901,000;
     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1990/1994'':
       TRIDENT ballistic submarine program, $2,400,000;
       Aircraft carrier service life extension program, $346,000;
       MCM mine countermeasures program, $657,000;
       Oceanographic ship program, $3,964,000;
       LCAC landing craft air cushion program, $1,188,000;
       Aircraft Procurement, Navy, 1993/1995, $6,000,000;
       Weapons Procurement, Navy, 1993/1995, $6,753,000;
       Other Procurement, Navy, 1994/1996, $1,297,000;
     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1990/1994'':
       SSN-688 attack submarine program, $9,046,000;
       MHC coastal mine hunter program, $3,575,000;
       AOE combat support ship program, $9,984,000;
     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/1995'':
       TRIDENT ballistic missile submarine program, $39,500,000;
       DDG-51 destroyer program, $8,200,000;
       LSD-41 dock landing ship cargo variant ship program, 
     $22,427,000;
       Aircraft Procurement, Navy, 1994/1996, $17,000,000;
       Other Procurement, Navy, 1994/1996, $666,000;
       Procurement, Marine Corps, 1993/1995, $6,600,000;
     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/1995'':
       SSN-21 attack submarine program, $48,240,000;
       LHD-1 amphibious assault ship program, $43,600,000;
       MHC coastal mine hunter program, $2,553,000;
     From:
       Aircraft Procurement, Navy, 1993/1995, $42,000,000;
       Other Procurement, Navy, 1994/1996, $29,261,000;
       National Guard and Reserve Equipment, 1994/1996, 
     $5,183,000;
     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1992/1996'':
       DDG-51 destroyer program, $64,958,000;
       MHC coastal mine hunter program, $11,486,000;
     From:
       Weapons Procurement, Navy, 1993/1995, $30,000,000;
       Other Procurement, Navy, 1994/1996, $38,438,000;
     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1993/1997'':
       DDG-51 destroyer program, $26,894,000;
       LSD-41 cargo variant ship program, $5,663,000;
       MHC coastal mine hunter program, $7,615,000;
       AOE combat support ship program, $28,266,000;
     From:
       Weapons Procurement, Navy, 1994/1996, $14,000,000;
       Other Procurement, Navy, 1994/1996, $763,000;
       National Guard and Reserve Equipment, 1994/1996, 
     $4,672,000;
     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1994/1998'':
       LHD-1 amphibious assault ship program, $15,131,000;
       Oceanographic ship program, $4,304,000.
       And the Senate agree to the same.
       Amendment numbered 163:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 163, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert:
       Sec. 8101. Not later than May 1, 1995, the Secretary of 
     Defense shall submit to the Committees on Appropriations of 
     the House and Senate an independent cost effectiveness study 
     of Air Force bomber programs: Provided, That of the total 
     amounts available to the Department of Defense for financing 
     the activities of defense federally funded research and 
     development centers during fiscal year 1995, $4,500,000 shall 
     be made available within 30 days after the enactment of this 
     Act for the purposes of the aforementioned study.
       And the Senate agree to the same.
       Amendment numbered 165:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 165, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       In lieu of the matter restored by said amendment insert:


                     (including transfer of funds)

       Sec. 8104. Balances of the funds appropriated in Public 
     Laws 102-172, 102-396, and 103-139, under the headings 
     ``World University Games'', ``Summer Olympics'', and ``World 
     Cup USA 1994'' in title II of those Acts shall be merged with 
     the appropriation heading entitled ``Summer Olympics'' 
     appearing under title II of this Act and shall be available 
     only for purposes described under that heading.
       And further
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8104A; and the Senate agree to the same.
       Amendment numbered 167:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 167, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       In lieu of the matter restored by said amendment insert:
       Sec. 8106. (a) None of the funds made available by this Act 
     may be obligated for design, development, acquisition, or 
     operation of more than 47 Titan IV expendable launch 
     vehicles, or for satellite mission-model planning for a Titan 
     IV requirement beyond 47 vehicles.
       (b) Of the funds provided in the Department of Defense 
     Appropriations Act, 1994 (Public Law 103-139), the Secretary 
     of Defense shall transfer a total of $60,000,000 to the 
     National Aeronautics and Space Administration (NASA): 
     Provided, That of that amount, $25,000,000 shall be 
     transferred from Procurement, Defense-Wide, 1994/1996, and 
     shall only be used for LANDSAT 7: Provided further, That of 
     that amount, $35,000,000 shall be transferred from Research, 
     Development, Test and Evaluation, Defense-Wide, 1994/1995, 
     and shall only be used for Single-Stage-to-Orbit research and 
     development at Phillips Laboratory, Albuquerque, New Mexico 
     and, pursuant to the President's call for a supporting role 
     for DOD in this technology, the funds shall be used in 
     activities to support NASA-led construction of an Advanced 
     Technology Demonstrator X-vehicle and to finish the original 
     flight test program of the DC-X1 test vehicle.
       (c) $30,000,000 made available in this Act for Research, 
     Development, Test and Evaluation, Air Force and $10,000,000 
     made available in the Department of Defense Appropriations 
     Act, 1994 (Public Law 103-139) for Research, Development, 
     Test and Evaluation, Defense-Wide, 1994/1995, may only be 
     obligated for development of a new family of medium-lift and 
     heavy-lift expendable launch vehicles evolved from existing 
     technologies: Provided, That the $30,000,000 in fiscal year 
     1995 funds shall not be available for obligation until the 
     Secretary of Defense submits a detailed plan describing the 
     proposed development program for the new family of expendable 
     launch vehicles.
       And further
       Amend the matter retained by said amendment as follows:
       In lieu of section number ``8106'' named in said retained 
     matter insert: 8106A.
       After the words ``(10 U.S.C. Sec. 1175) payments if 
     rehired'' named in said retained matter insert: in a civilian 
     position; and the Senate agree to the same.
       Amendment numbered 168:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 168, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert:
       Sec. 8107. Notwithstanding any other provision of law, of 
     the funds appropriated to the Department of the Navy for 
     Operation and Maintenance, not less than $4,500,000 shall be 
     obligated and expended only for operation and maintenance, 
     automatic data processing equipment, transition assistance or 
     in-house central design development and activities for the 
     Naval Reserve Force Information Systems Office, the Naval 
     Reserve Personnel Center, the Enlisted Personnel Management 
     Center, and the collocated Naval Computer and 
     Telecommunications Station: Provided, That notwithstanding 
     any other provision of law, of the funds appropriated to the 
     Department of Defense for Procurement and Operation and 
     Maintenance, Defense-Wide not less than $18,000,000 shall be 
     obligated and expended only for automatic data processing 
     equipment or software, in-house central design development 
     and activities, and transition assistance for the Naval 
     Reserve Force Information Systems Office, the Naval Reserve 
     Personnel Center, the Enlisted Personnel Management Center 
     and the collocated Naval Computer and Telecommunications 
     Station, of which $8,000,000 shall be available in 
     procurement funds and $5,000,000 shall be available in 
     operation and maintenance funds only for the establishment of 
     a Continuity of Operations (COOP) center that shall be 
     collocated with the Naval Reserve Force Information Systems 
     Office, the Enlisted Personnel Management Center, and the 
     collocated Naval Computer and Telecommunications Station for 
     the contingency preservation of computer data for the 
     Department of Defense Data and Megacenter consolidation 
     initiative: Provided further, That the Secretary of the Navy 
     shall establish the Naval Reserve Force Information Systems 
     Office and the Enlisted Personnel Management Center, 
     supported by the collocated Naval Computer and 
     Telecommunications Station, as the central design activities 
     for development, integration, coding, documentation, and 
     system management for the software development and 
     maintenance of the Naval active and reserve single Source 
     Data Collection System: Provided further, That the Bureau of 
     Naval Personnel shall remain as the Program Manager for 
     definition of functional requirements and priorities: 
     Provided further, That the last provision of Section 8023 of 
     Public Law 103-139, is hereby repealed.


                          (Transfer of Funds)

       Sec. 8107A. In addition to amounts appropriated or 
     otherwise made available in this Act, $8,000,000 shall be 
     made available for pay and allowances for the Office of the 
     Assistant Secretary of Defense for Reserve Affairs to be 
     available only for support of Civil-Military Cooperation 
     program operations, for transfer to appropriations available 
     to the Department of Defense for military personnel of the 
     reserve components serving under the provisions of title 10 
     and title 32, United States Code: Provided, That the funds 
     made available by this paragraph shall be available for 
     obligation for the same time period and for the same purpose 
     as the appropriation to which transferred: Provided further, 
     That the transfer authority provided in this paragraph is in 
     addition to any transfer authority contained elsewhere in 
     this Act.
       And the Senate agree to the same.
       Amendment numbered 169:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 169, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       In lieu of the matter restored by said amendment insert:
       Sec. 8108. No funds available to the Department of Defense 
     in this Act may be used to establish additional field 
     operating agencies of any element of the Department during 
     fiscal year 1995, except for field operating agencies funded 
     within the National Foreign Intelligence Program.
       And further
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8108A; and the Senate agree to the same.
       Amendment numbered 172:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 172, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert:
       Sec. 8111. Funds made available to the Department of the 
     Navy for the EA-6B program in this Act and prior Department 
     of Defense Appropriations Acts may be used to procure any 
     lower cost alternative to the ADVCAP upgrade program 
     considered by the Department of the Navy to be appropriate 
     and cost effective.
       And the Senate agree to the same.
       Amendment numbered 174:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 174, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter restored by said amendment as follows:
       Delete the words ``January 1'' named in said restored 
     matter and insert in lieu thereof: April 1
       In lieu of the sum ``$30,000,000'' named in said restored 
     matter insert: $20,000,000
       And further
       In lieu of the matter retained by said amendment insert:
       Sec. 8114A. (a) Fiscal Year 1995 Cost-of-Living Adjustment 
     for Military Retirees.--(1) The fiscal year 1995 increase in 
     military retired pay shall (notwithstanding subparagraph (B) 
     of section 1401a(b)(2) of title 10, United States Code) first 
     be payable as part of such retired pay for the month of March 
     1995.
       (2) For the purposes of subsection (a):
       (A) The term ``fiscal year 1995 increase in military 
     retired pay'' means the increase in retired pay that, 
     pursuant to paragraph (1) of section 1401a(b) of title 10, 
     United States Code, becomes effective on December 1, 1994.
       (B) The term ``retired pay'' includes retainer pay.
       (b) Future Cost-of-Living Adjustments for Military 
     Retirees.--
       (1) Subject to paragraph (2), subparagraph (B) of section 
     1401a(b)(2) of title 10, United States Code, is amended--
       (A) in the heading, by striking out ``THROUGH 1998'' and 
     inserting in lieu thereof ``THROUGH 1996''; and
       (B) in clause (ii)--
       (i) by striking out ``THROUGH 1998'' and inserting in lieu 
     thereof ``AND 1996'';
       (ii) by striking out ``of 1994, 1995, 1996, or 1997'' and 
     inserting in lieu thereof ``of 1994 or 1995''; and
        (iii) by striking out ``September'' and inserting in lieu 
     thereof ``March''.
       (2) Paragraph (1) shall be effective only if--
       (A) the President, in the budget of the President for 
     fiscal year 1996, proposes legislation which if enacted would 
     be qualifying offsetting legislation; and
        (B) there is enacted during the first session of the 104th 
     Congress qualifying offsetting legislation.
       (3) If the conditions in paragraph (2) are met, then the 
     amendments by paragraph (1) shall take effect on January 1, 
     1996.
       (4) For purposes of this subsection:
       (A) The term ``qualifying offsetting legislation'' means 
     legislation (other than an appropriations Act) that includes 
     provisions that--
       (i) offset fully the increased outlays for each of fiscal 
     years 1996, 1997, and 1998 to be made from the Department of 
     Defense Military Retirement Fund by reason of the amendment 
     made by paragraph (1);
       (ii) expressly state that they are enacted for the purpose 
     of the offset described in clause (i); and
       (iii) are included in full on the PayGo scorecard.
        (B) The term ``PayGo scorecard'' means the estimates that 
     are made with respect to fiscal years through fiscal year 
     1998 by the Director of the Congressional Budget Office and 
     the Director of the Office of Management and Budget under 
     section 252(d) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985.
       And the Senate agree to the same.
       Amendment numbered 175:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 175, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken and retain the matter inserted 
     by said amendment, amended as follows:
       Amend the matter retained by said amendment as follows:
       In lieu of the section number named in said retained matter 
     insert: 8115A; and the Senate agree to the same.
       Amendment numbered 176:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 176, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert:
       Sec. 8116. Such additional sums as may be necessary for 
     fiscal year 1995 pay raises for programs funded by this Act 
     shall be absorbed within the levels appropriated in this Act.
       And the Senate agree to the same.
       Amendment numbered 177:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 177, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert:
       Sec. 8117. After April 15, 1995, none of the funds provided 
     in this Act may be obligated for payment on new contracts on 
     which allowable costs charged to the government include 
     payments for individual compensation at a rate in excess of 
     $250,000 per year.
       And the Senate agree to the same.
       Amendment numbered 178:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 178, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken by said amendment amended to 
     read as follows:
       Sec. 8118. None of the funds available in this Act may be 
     used to reduce the authorized positions for military 
     (civilian) technicians of the Army National Guard, the Air 
     National Guard, Army Reserve and Air Force Reserve for the 
     purpose of applying any administratively imposed civilian 
     personnel ceiling, freeze, or reduction on military 
     (civilian) technicians, unless such reductions are a direct 
     result of a reduction in military force structure: Provided, 
     That the Department of Defense shall prepare and submit to 
     the Congressional defense committees a report on reductions 
     of civilian technicians which may be required to align 
     civilian technician positions with force structure changes in 
     the Reserve component.
       And the Senate agree to the same.
       Amendment numbered 179:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 179, and agree to the same 
     with an amendment, as follows:
       Restore the matter stricken by said amendment amended to 
     read as follows:
       Sec. 8119. During the current fiscal year and hereafter, 
     the Department of State and the Department of Defense are 
     authorized to provide interagency courier service on a non-
     reimbursable basis.
       And the Senate agree to the same.
       Amendment numbered 183:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 183, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8123. During the current fiscal year, funds 
     appropriated in this Act are available to compensate members 
     of the National Guard for duty performed pursuant to a plan 
     submitted by a Governor of a State and approved by the 
     Secretary of Defense under section 112 of title 32, United 
     States Code: Provided, That during the performance of such 
     duty, the members of the National Guard shall be under state 
     command and control: Provided further, That such duty shall 
     be treated as full-time National Guard duty for purposes of 
     sections 3686 (2) and 8686 (2) of title 10, United States 
     Code.
       And the Senate agree to the same.
       Amendment numbered 188:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 188, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8128. The Secretary of Defense shall report to the 
     congressional defense committees the existing standards for 
     the provision of concurrent retirement and disability 
     benefits to members of the Armed Forces with not less than 
     twenty years of service: Provided, That this evaluation will 
     address the number of individuals retired from the Armed 
     Forces under conditions of total disability; the cost of 
     extending concurrent benefits to these individuals; the 
     comparability of the policy to Office of Personnel Management 
     guidelines for civilian federal employees; the comparability 
     of this policy to prevailing private sector standards; the 
     number of individuals potentially eligible for concurrent 
     benefits who now receive other forms of federal assistance 
     and the cost of that assistance: Provided further, That the 
     Secretary shall submit this report not later than March 15, 
     1995.
       And the Senate agree to the same.
       Amendment numbered 189:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 189, and agree to the same 
     with an amendment, as follows:
       Delete all the matter in said amendment appearing after 
     ``or rank in grade of the member.'' down to and including 
     ``preceding calendar quarter.'' and insert in lieu thereof:
       (c) Reports.--Not later than April 15 and October 15 of 
     each calendar year while the off-site agreement is in effect, 
     the Secretary of the Army shall submit to the congressional 
     defense committees a semi-annual report on the number of 
     members of the Armed Forces who were reassigned under 
     subsection (b)(1) during the preceding six months.
       And the Senate agree to the same.
       Amendment numbered 190:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 190, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8130. Funds appropriated in this Act for operation and 
     maintenance of the Military Departments, Unified and 
     Specified Commands and Defense Agencies shall be available 
     for reimbursement of pay, allowances and other expenses which 
     would otherwise be incurred against appropriations for the 
     National Guard and Reserve when members of the National Guard 
     and Reserve provide intelligence support to Unified Commands, 
     Defense Agencies and Joint Intelligence Activities, including 
     the activities and programs included within the General 
     Defense Intelligence Program and the Consolidated Cryptologic 
     Program: Provided, That nothing in this section authorizes 
     deviation from established Reserve and National Guard 
     personnel and training procedures.
       And the Senate agree to the same.
       Amendment numbered 192:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 192, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8132. The Secretary of Defense, from within funds 
     provided in this Act, may obligate not to exceed $75,000 to 
     fulfill Department of Defense obligations under the 
     Educational Loan Repayment Programs for state-sponsored 
     student loan programs not covered under Title IV, Part B or E 
     of the Higher Education Act of 1965 (Title 20 U.S.C. 1071-
     1087).
       And the Senate agree to the same.
       Amendment numbered 193:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 193, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8133. Notwithstanding any other provision of law, the 
     Secretary of the Navy shall obligate, within sixty days of 
     this Act becoming law, not less than $39,750,000 from the 
     funds appropriated in this Act or previous Acts under the 
     heading ``Aircraft Procurement, Navy'', solely to procure, 
     integrate, and install, on an urgent basis, AN/USH-42 mission 
     recorders modified for use in S-3B aircraft.
       And the Senate agree to the same.
       Amendment numbered 194:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 194, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8134. Subparagraph (B) of section 7306(d)(1) of title 
     10, United States Code, shall not apply with respect to the 
     transfer by the Secretary of the Navy under section 7306(a) 
     of such title of the aircraft carrier U.S.S. Saratoga (CV-60) 
     to the U.S.S. Saratoga Museum Foundation, Inc., a foundation 
     organized under the laws of the State of Florida.
       And the Senate agree to the same.
       Amendment numbered 195:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 195, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:


   restriction on funding united states military personnel in somalia

       Sec. 8135. None of the funds appropriated by this Act may 
     be used for the continuous presence in Somalia of United 
     States military personnel, except for the protection of 
     United States personnel, after September 30, 1994.
       And the Senate agree to the same.
       Amendment numbered 198:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 198, and agree to the same 
     with an amendment, as follows:
       Delete the word ``Congress'' named in said amendment in 
     four instances and insert in lieu thereof: Senate; and the 
     Senate agree to the same.
       Amendment numbered 199:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 199, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8139. Notwithstanding any other provision of law, the 
     Secretary of a military department may enter into a contract 
     for use of commercial or proprietary credit card services for 
     augmenting or replacing any in-house account receivable 
     system in use by a nonappropriated fund instrumentality under 
     the jurisdiction of that Secretary if the Secretary 
     determines that such contract is in the best interest of that 
     department: Provided, That any Department of Defense 
     initiative to contract for credit card services shall require 
     full and open competitive procedures and be based on the 
     program concepts determined by the military department(s) 
     morale, welfare and recreation (MWR) and service division(s) 
     affected by such initiative.
       And the Senate agree to the same.
       Amendment numbered 200:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 200, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8140. It is the sense of the Congress that the 
     Secretary of Defense should name the new research facility 
     under construction to house the Walter Reed Army Institute of 
     Research, in honor of Senator Daniel K. Inouye.
       And the Senate agree to the same.
       Amendment numbered 201:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 201, and agree to the same 
     with an amendment, as follows:
       Delete the word ``availability'' named in said amendment 
     and insert in lieu thereof: available; and the Senate agree 
     to the same.
       Amendment numbered 202:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 202, and agree to the same 
     with an amendment, as follows:
       Delete the word ``Senate'' named in said amendment and 
     insert in lieu thereof: Congress; and the Senate agree to the 
     same.
       Amendment numbered 204:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 204, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8144. All refunds or other amounts collected in the 
     administration of the Civilian Health and Medical Program of 
     the Uniformed Services (CHAMPUS) shall be credited to current 
     year appropriations.
       And the Senate agree to the same.
       Amendment numbered 207:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 207, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8147. Of the funds appropriated by title VIII of 
     Public Law 102-396 (106 Stat. 1899) for defense reinvestment 
     for economic growth, the unobligated balance of the funds 
     made available by such title for military service members 
     occupational conversion and training shall remain available 
     for obligation until September 30, 1995.
       And the Senate agree to the same.
       Amendment numbered 208:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 208, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8148. Under the heading ``Humanitarian Assistance'' in 
     title II of this Act, on line one, strike "For transportation 
     for" and insert in lieu thereof ``For'': Provided, That the 
     proviso contained under this heading in the Department of 
     Defense Appropriations Act for 1994 (Public Law 103-139) is 
     hereby repealed.
       And the Senate agree to the same.
       Amendment numbered 210:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 210, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8150. In addition to amounts appropriated elsewhere in 
     this Act to the Department of Defense, $14,200,000 is 
     authorized and appropriated only for the Utility 
     Reconfiguration Project at the Philadelphia Naval Complex.
       And the Senate agree to the same.
       Amendment numbered 211:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 211, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8151. Notwithstanding section 303(a) (5) and (6) of 
     the Defense Production Act, or any other provision of law, 
     the Department of Defense will negotiate and award an 
     appropriate contract to the sole domestic producer of nuclear 
     steam generator tubing for aircraft carriers, in an amount 
     not to exceed $17,500,000 from funds provided in Public Law 
     103-139 for Defense Production Act Purchases.
       And the Senate agree to the same.
       Amendment numbered 212:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 212, and agree to the same 
     with an amendment, as follows:
       In lieu of the sum ``$78,265,000'' named in said amendment 
     insert: $93,265,000; and the Senate agree to the same.
       Amendment numbered 213:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 213, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter inserted by said amendment insert:
       Sec. 8153. No funds appropriated by this Act may be 
     obligated or expended during fiscal year 1995 for retiring, 
     or preparing to retire, any B-52H, B-1B, or F-111 bomber 
     aircraft.
       Sec. 8154. (a) None of the funds available to the 
     Department of Defense for any fiscal year for drug 
     interdiction or counter-drug activities may be transferred to 
     any other department or agency of the United States except as 
     specifically provided in an appropriations law.
       (b) None of the funds available to the Central Intelligence 
     Agency for any fiscal year for drug interdiction and counter-
     drug activities may be transferred to any other department or 
     agency of the United States except as specifically provided 
     in an appropriations law.
       Sec. 8155. Amendments to Public Law 103-317 (including 
     rescission).
       (a) Of the funds appropriated under the heading, 
     ``Contributions to International Organizations'' in Public 
     Law 103-317, $4,561,000 are rescinded. In addition, under 
     this heading in said Public Law, delete ``, of which not to 
     exceed $4,000,000 is available to pay arrearages, the payment 
     of which'' and substitute ``: Provided, That any payment of 
     arrearages made from these funds''.
       (b) Under the heading, ``Payment to the Asia Foundation'' 
     in Public Law 103-317, delete ``$10,000,000'' and substitute 
     ``$15,000,000''.
       (c) Under the heading ``Securities and Exchange 
     Commission'', ``Salaries and Expenses'', in Public Law 103-
     317, insert the following:
       ``For an additional amount for `Salaries and Expenses', 
     $192,000,000: Provided, That such amount is available only 
     upon enactment of legislation that continues for fiscal year 
     1995 the rate of fees collected under section 6(b) of the 
     Securities Act of 1933 (15 U.S.C. 77f(b)), as provided by 
     Public Law 103-121 (107 Stat. 1168), at \1/29\th of one 
     percent and that deposits the difference in such fees 
     (between \1/50\th of one percent and \1/29\th of one percent) 
     as an offsetting collection to this appropriation: Provided 
     further, That the total amount appropriated for fiscal year 
     1995 under this heading shall be reduced as such fees are 
     deposited to this appropriation so as to result in a final 
     total fiscal year 1995 appropriation from the General Fund 
     estimated at not more than $74,856,000: Provided further, 
     That any such fees collected in excess of $192,000,000 in 
     fiscal year 1995 shall remain available until expended, but 
     shall not be available for obligation until October 1, 
     1995.''.
       Sec. 8156. Of the amounts provided in title III of this 
     Act, $304,900,000 are permanently canceled: Provided, That 
     the Secretary of Defense shall allocate the amount of 
     budgetary resources canceled by this section in an equal 
     percentage to each program, project and activity funded in 
     title III of this Act.


                              (rescission)

       Sec. 8157. Of the funds provided in Department of Defense 
     Appropriations Acts, the following funds are hereby rescinded 
     from the following account in the specified amount:
       ``Aircraft Procurement, Navy, 1993/1995'', $200,000,000.


                          (Transfer of Funds)

       Sec. 8158. Of the funds provided in Title II of this Act 
     under the heading ``Operation and Maintenance, Defense-
     Wide'', $500,000,000 shall be transferred to the following 
     accounts in the specified amounts:
       ``Operation and Maintenance, Army'', $140,000,000;
       ``Operation and Maintenance, Navy'', $140,000,000;
       ``Operation and Maintenance, Marine Corps'', $80,000,000;
       ``Operation and Maintenance, Air Force'', $140,000,000.
       And the Senate agree to the same.
       Amendment numbered 214:
       That the House recede from its disagreement to the 
     amendment of the Senate numbered 214, and agree to the same 
     with an amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment insert:
       Titles I through VIII of this Act may be cited as the 
     ``Department of Defense Appropriations Act, 1995''.

         TITLE IX--FISCAL YEAR 1994 SUPPLEMENTAL APPROPRIATION

       The following sum is appropriated, out of any money in the 
     Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 1994, namely:

                         Department of Defense


                            Management Funds

                        Emergency Response Fund

       For the ``Emergency Response Fund'', $299,300,000: 
     Provided, That these funds may be used to reimburse other 
     appropriations of the Department of Defense available during 
     fiscal year 1994 for costs incurred before the date of the 
     enactment of this Act for emergency relief for Rwanda and for 
     emergency migrant processing and safe haven costs in or 
     around Cuba and may be used to reimburse other appropriations 
     available to the Department of Defense for costs incurred for 
     the same purposes: Provided further, That the entire amount 
     under this heading is designated by Congress as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended: Provided further, That any change in the United 
     States mission in Rwanda from one of strict refugee relief to 
     security, peace-enforcing, or nation-building or any other 
     substantive role shall not be implemented without the further 
     approval of the Congress: Provided further, That no funds 
     provided in this Act are available for United States military 
     participation to continue Operation Support Hope in or around 
     Rwanda after October 7, 1994, except for any action that is 
     necessary to protect the lives of United States citizens.
       And the Senate agree to the same.
     John P. Murtha,
     Norman D. Dicks,
     Charles Wilson,
     W.G. (Bill) Hefner,
     Martin Olav Sabo,
     Julian C. Dixon,
     Peter J. Visclosky,
     George (Buddy) Darden,
     David R. Obey,
     Joseph M. McDade,
     C.W. Bill Young,
     Bob Livingston,
     Jerry Lewis,
     Joe Skeen,
                                Managers on the Part of the House.

     Daniel K. Inouye,
     Fritz Hollings,
     J. Bennett Johnston,
     Robert Byrd,
     Patrick J. Leahy,
     Jim Sasser,
     Dennis DeConcini,
     Dale Bumpers,
     Frank R. Lautenberg,
     Tom Harkin,
     Ted Stevens,
     Alfonse D'Amato,
     Thad Cochran,
     Arlen Specter,
     Pete V. Domenici,
     Don Nickles,
     Phil Gramm,
     Christopher S. Bond,
     Mark O. Hatfield,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendments of the Senate to the bill (H.R. 4650), making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 1995, and for other purposes, 
     submit the following joint statement to the House and the 
     Senate in explanation of the effect of the action agreed upon 
     by the managers and recommended in the accompanying 
     conference report.
       The conference agreement on the Department of Defense 
     Appropriations Act, 1995, incorporates some of the provisions 
     of both the House and Senate versions of the bill. The 
     language and allocations set forth in House Report 103-562 
     and Senate Report 103-321 should be complied with unless 
     specifically addressed in the accompanying bill and statement 
     of the managers to the contrary.

                      TITLE I--MILITARY PERSONNEL

       The conferees agree to the following amounts and end 
     strength totals for the Military Personnel accounts as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Active personnel:                                                                                               
    Army........................................      20,601,170      20,737,470                                
                                                                     D20,629,770      20,629,770      20,609,770
    Navy........................................      17,580,983      17,692,537      17,638,483      17,569,137
    Marine Corps................................       5,778,571       5,816,671       5,806,471       5,774,871
    Air Force...................................      17,218,579      17,311,379      17,031,179      17,181,479
Reserve personnel:                                                                                              
    Army........................................       2,174,520       2,183,620       2,178,620       2,161,620
    Navy........................................       1,392,409       1,398,609       1,418,723       1,401,809
    Marine Corps................................         353,948         354,048         351,098         348,748
    Air Force...................................         781,383         782,434         774,834         768,834
National Guard personnel:                                                                                       
    Army........................................       3,360,505       3,378,705       3,371,605       3,339,505
    Air Force...................................       1,233,239       1,238,029       1,244,729       1,233,429
                                                 ---------------------------------------------------------------
      Total, Military Personnel.................      70,475,397      70,893,502      70,445,512      70,389,202
----------------------------------------------------------------------------------------------------------------


                           ACTIVE END STRENGTH                          
                           [Fiscal year 1995]                           
------------------------------------------------------------------------
                                                              Conference
                                     Budget      Conference     verses  
                                                                budget  
------------------------------------------------------------------------
Army.............................      510,000      510,000          ---
Navy.............................      441,641      441,641          ---
Marine Corps.....................      174,000      174,000          ---
Air Force........................      400,051      400,051          ---
                                  --------------------------------------
      Total......................    1,525,692    1,525,692          ---
------------------------------------------------------------------------

                          pay raise absorption

       The fiscal year 1995 budget request provided a 1.6 percent 
     pay raise for military personnel. The conferees agreed to an 
     increase of 2.6 percent as authorized and have provided an 
     additional $185,900,000 in the military personnel accounts. 
     The conferees intend that the Department absorb the remaining 
     cost within the funds made available in this Act.


                   medal for american servicemembers

       On April 14, 1994, two U.S. F-15C fighter plane pilots 
     enforcing the United Nations-mandated ``no fly'' zone in 
     northern Iraq accidently shot down two U.S. UH-60 Black Hawk 
     helicopters which were carrying fourteen American members of 
     the Armed Forces, one American civilian, and eleven 
     foreigners. These individuals were engaged in a United 
     Nations peacekeeping mission in northern Iraq's ``no fly'' 
     zone, and all of them were killed. The conferees believe that 
     the fourteen members of the Armed Forces should be awarded 
     posthumously the Purple Heart or other medal of distinction 
     for their distinguished service to their country. The 
     conferees direct the Secretaries of the Army and the Air 
     Force to review this matter, and report back to the 
     Committees no later than March 31, 1995.

                        Military Personnel, Army

       Amendment No. 1: Appropriates $20,609,770,000 instead of 
     $20,737,470,000 as proposed by the House and $20,629,770,000 
     as proposed by the Senate. Deletes Senate language concerning 
     visas for officials of Taiwan and limitation on the use of 
     funds for the Sandinista popular Army and security forces of 
     Nicaragua.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Pay Increase.....................      136,300      136,300       54,500
Officer Work-years...............            0      -43,200            0
Officer Average Rank.............            0      -31,600      -31,600
Retired Pay Accrual/Social                                              
 Security Contributions..........            0      -32,200      -13,600
Disability Severance Pay.........            0       -3,500       -3,500
Nurse Anesthetist Pay............            0        2,800       2,800 
                                  --------------------------------------
      Total, Military Personnel,                                        
       Army......................     +136,300      +28,600       +8,600
------------------------------------------------------------------------

                     visas for officials of taiwan

       The Senate recedes from its language concerning the 
     provision of visas for officials of Taiwan. The conferees 
     agree that appropriate officials of Taiwan should be 
     permitted entry to the United States for the conduct of 
     official business. Amendment of the Taiwan Relations Act 
     falls outside the jurisdiction of the Appropriations 
     Committees. The conferees defer action on this matter to the 
     House Foreign Affairs and Senate Foreign Relations 
     Committees.

                        Military Personnel, Navy

       Amendment No. 2: Appropriates $17,569,137,000 instead of 
     $17,692,537,000 as proposed by the House and $17,638,483,000 
     as proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Pay Increase.....................      113,700      113,700       45,500
Aviation Continuation Pay........       -1,000            0            0
Responsibility Pay...............       -1,146            0       -1,146
Officer Average Rank.............            0      -38,200      -38,200
Retired Pay Accrual/Social                                              
 Security Contributions..........            0      -16,400      -16,400
Disability Severance Pay.........            0       -1,600       -1,600
                                  --------------------------------------
      Total, Military Personnel,                                        
       Navy......................     +111,554      +57,500      -11,846
------------------------------------------------------------------------

                    Military Personnel, Marine Corps

       Amendment No. 3: Appropriates $5,774,871,000 instead of 
     $5,816,671,000 as proposed by the House and $5,806,471,000 as 
     proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Pay Increase.....................       38,700       38,700       15,500
Aviation Continuation Pay........         -600            0            0
Officer Work-years...............            0       -3,900            0
Retired Pay Accrual/Social                                              
 Security Contributions..........            0       -1,700            0
Disability Severance Pay.........            0       -1,200       -1,200
Unemployment Compensation........            0       14,000            0
Special Separation Bonus.........            0      -18,000      -18,000
                                  --------------------------------------
      Total, Military Personnel,                                        
       Marine Corps..............      +38,100      +27,900       -3,700
------------------------------------------------------------------------

                       unemployment compensation

       Prior to fiscal year 1984, the Department of Labor budgeted 
     and paid the individual states for the Federal Government's 
     share of applicable unemployment compensation for ex-
     servicemembers. Beginning in fiscal year 1984, the Department 
     of Defense was required to budget for the costs of regular 
     and extended unemployment benefits. P.L. 102-164 changed 
     benefits, starting in FY 1992, from thirteen weeks after a 
     four week waiting period, to twenty-six weeks with a one week 
     waiting period.
       The conferees are concerned that the Marine Corps budgeted 
     for only thirteen weeks of unemployment compensation while 
     the other Services budgeted for twenty-six weeks, consistent 
     with existing legislation. If unemployment compensation costs 
     accrue as expected, the conferees are amenable to considering 
     a reprogramming request from the Department of Defense during 
     fiscal year 1995 to meet the unbudgeted portion of the Marine 
     Corps requirement. The Department is directed to ensure that 
     the full twenty-six week unemployment compensation 
     requirement is budgeted by each Service in future fiscal year 
     military personnel budget submissions.

                     Military Personnel, Air Force

       Amendment No. 4: Appropriates $17,181,479,000 instead of 
     $17,311,379,000 as proposed by the House and $17,031,179,000 
     as proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Pay Increase.....................      117,300      117,300       46,900
Aviation Continuation Pay........       -9,600            0            0
Aviation Career Incentive Pay....         -500            0         -500
B-52 Cost Savings................      -14,400            0      -14,400
Officer Work-years...............            0      -43,600            0
Retired Pay Accrual/Social                                              
 Security Contributions..........            0      -18,800            0
Disability Severance Pay.........            0         -100         -100
Enlisted Basic Allowance for                                            
 Quarters........................            0      -20,800      -20,800
Incentivized Losses..............            0     -223,200      -50,000
Nurse Anesthetist Pay............            0        2,300        2,300
Flight Duty Pay..................            0         -500         -500
                                  --------------------------------------
      Total, Military Personnel,                                        
       Air Force.................      +92,700     -187,400      -37,100
------------------------------------------------------------------------

                   National Guard and Reserve Forces

       The conferees agree to provide $9,253,945,000 in Reserve 
     personnel appropriations, $8,841,011,000 in Operation and 
     maintenance appropriations, and $800,000,000 in the National 
     Guard and Reserve Equipment appropriation. These funds 
     support a Selected Reserve strength of 979,254 as shown 
     below.

                            RESERVE STRENGTHS                           
                           [Fiscal year 1995]                           
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference     versus  
                                                                budget  
------------------------------------------------------------------------
Selected Reserve:                                                       
    Army Reserve.................      242,000      242,000            0
    Navy Reserve.................      100,710      100,902         +192
    Marine Corps Reserve.........       42,000       42,000            0
    Air Force Reserve............       78,706       78,771          +65
    Army National Guard..........      400,000      400,000            0
    Air National Guard...........      115,581      115,581            0
                                  --------------------------------------
      Total......................      978,997      979,254         +257
                                  ======================================
AGR/TARS:                                                               
    Army Reserve.................       11,940       11,940            0
    Navy Reserve.................       17,510       17,794         +284
    Marine Corps Reserve.........        2,285        2,285            0
    Air Force Reserve............          648          648            0
    Army National Guard..........       23,650       23,650            0
    Air National Guard...........        9,098        9,098            0
                                  --------------------------------------
      Total......................       65,131       65,415         +284
                                  ======================================
Technicians:                                                            
    Army Reserve.................        7,004        7,004            0
    Air Force Reserve............       10,295       10,423         +128
    Army National Guard..........       27,394       27,394            0
    Air National Guard...........       24,210       24,210            0
                                  --------------------------------------
      Total......................       68,903       69,031         +128
------------------------------------------------------------------------

                          military technicians

       The conferees have included a new provision (Section 8118) 
     which prohibits funds to be used to reduce military 
     (civilian) technicians of the Reserve components for the 
     purpose of applying any administratively imposed civilian 
     personnel ceiling, freeze or reduction on military (civilian) 
     technicians, unless such reductions are a direct result of a 
     reduction in military force structure.
       The conferees are concerned that the phased reductions 
     planned for civilian technicians will have a significant 
     impact on the full-time support program of the Reserve 
     components and on the readiness of Reserve units. The 
     conferees direct that the report requested in this Section be 
     submitted to the Congressional defense committees no later 
     than March 15, 1995.

                        Reserve Personnel, Army

       Amendment No. 5: Appropriates $2,161,620,000 instead of 
     $2,183,620,000 as proposed by the House and $2,178,620,000 as 
     proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House       Senate      Conference
------------------------------------------------------------------------
Pay Increase.....................       12,900       12,900        5,100
Personnel Understrength..........       -3,800       -8,800      -18,000
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Army......................       +9,100       +4,100      -12,900
------------------------------------------------------------------------

                        Reserve Personnel, Navy

       Amendment No. 6: Appropriates $1,401,809,000 instead of 
     $1,398,609,000 as proposed by the House and $1,418,723,000 as 
     proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House       Senate      Conference
------------------------------------------------------------------------
Pay Increase.....................        8,400        8,400        3,400
Personnel Understrength..........       -2,200       -1,500       -4,000
LST ships........................            0       19,414       10,000
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Navy......................       +6,200      +26,314       +9,400
------------------------------------------------------------------------

                            transfer of lsts

       The conferees agree that a robust lift capability must be 
     maintained and believe that one way of assuring this 
     capability is to transfer two excess LSTs to the Naval 
     Reserve for homeporting at Pearl Harbor. These LSTs will 
     provide a cost effective means of transporting Army and 
     Marine troops and equipment from the island of Oahu to the 
     island of Hawaii, as required, for training purposes. The 
     conferees emphasize that these ships and their crews are to 
     be considered a part of the Navy's lift capability and that 
     the crews of these ships are to be trained accordingly. 
     Funding and personnel needed to accomplish this mission have 
     been provided within the appropriate accounts. Reporting 
     requirements contained in Senate Report 103-321 are to be 
     adhered to.

                    Reserve Personnel, Marine Corps

       Amendment No. 7: Appropriates $348,748,000 instead of 
     $354,048,000 as proposed by the House, and $351,098,000 as 
     proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House       Senate     Conference 
------------------------------------------------------------------------
Pay Increase.....................        2,100        2,100          800
Personnel Understrength..........       -2,000       -4,950      -6,000 
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Marine Corps..............         +100       -2,850      -5,200 
------------------------------------------------------------------------

                      Reserve Personnel, Air Force

       Amendment No. 8: Appropriates $768,834,000 instead of 
     $782,434,000 as proposed by the House and $774,834,000 as 
     proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House       Senate     Conference 
------------------------------------------------------------------------
Pay Increase.....................        4,600        4,600        1,800
Personnel Understrength..........       -4,200      -11,800      -15,000
WC-130 Weather Reconn............          651          651         651 
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Air Force.................       +1,051       -6,549     -12,549 
------------------------------------------------------------------------

                     National Guard Personnel, Army

       Amendment No. 9: Appropriates $3,339,505,000 instead of 
     $3,378,705,000 as proposed by the House and $3,371,605,000 as 
     proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House       Senate     Conference 
------------------------------------------------------------------------
Pay Increase.....................       22,600       22,600        9,000
Personnel Understrength..........       -4,400      -11,500     -30,000 
                                  --------------------------------------
      Total, National Guard                                             
       Personnel, Army...........      +18,200      +11,100     -21,000 
------------------------------------------------------------------------

                            theater aviation

       The conferees agree with the Army in fielding the Theater 
     Aviation Company to satisfy the remaining tactical fixed wing 
     requirements. In completing this requirement, the Army is 
     directed to adhere to the specific language on procurement 
     adopted in the 1994 Act. Additionally, the Army is directed 
     to reconsider the allocation of the Theater Aviation Company 
     from COMPO 4 to the Army National Guard.

                  National Guard Personnel, Air Force

       Amendment No. 10: Appropriates $1,233,429,000 instead of 
     $1,238,029,000 as proposed by the House and $1,244,729,000 as 
     proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                          House      Senate   Conference
------------------------------------------------------------------------
Pay Increase..........................      8,400      8,400       3,400
Personnel Understrength...............     -3,700     -8,800     -10,000
C-130 Units...........................          0      5,600       3,600
Transfer of Defense Mission...........          0      6,200       3,100
                                       ---------------------------------
      Total, National Guard Personnel,                                  
       Air Force......................     +4,700    +11,400        +100
------------------------------------------------------------------------

                  TITLE II--OPERATION AND MAINTENANCE

       A summary of the conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                      Conference
                                                       Budget            House           Senate                 
----------------------------------------------------------------------------------------------------------------
RECAPITULATION     23700                                                                                        
O&M, ARMY.......................      17,766,814       17,836,504       17,475,806       17,507,088             
    TRANSFER--STOCKPILE.........         (50,000)         (50,000)         (50,000)         (50,000)            
O&M, NAVY.......................      21,176,570       21,316,555       21,275,770       21,054,470             
    TRANSFER--STOCKPILE.........         (50,000)         (50,000)         (50,000)         (50,000)            
O&M, MARINE CORPS...............       1,918,395        2,097,395        1,968,965        1,988,215             
O&M, AIR FORCE..................      19,026,623       18,913,050       18,786,243       18,763,427             
    TRANSFER--STOCKPILE.........         (50,000)         (50,000)         (50,000)         (50,000)            
O&M, DEFENSEWIDE................      10,208,413        8,945,266        9,986,654       10,500,104             
    TRANSFER--STOCKPILE.........  ...............  ...............        (100,000)  ...............            
O&M, ARMY RESERVE...............       1,253,709        1,240,109        1,253,709        1,243,209             
O&M, NAVY RESERVE...............         827,819          834,119          827,819          831,219             
O&M, MARINE CORPS RESERVE.......          81,462           83,542           80,562           81,862             
O&M, AIR FORCE RESERVE..........       1,478,990        1,486,805        1,455,872        1,471,505             
O&M, ARMY NATIONAL GUARD........       2,447,148        2,498,868        2,424,135        2,440,288             
O&M, AIR NATIONAL GUARD.........       2,780,178        2,797,978        2,780,178        2,772,928             
NATL BOARD FOR THE PROMOTION OF                                                                                 
 RIFLE PRACTICE, ARMY...........           2,544            2,544            2,544            2,544             
COURT OF MILITARY APPEALS,                                                                                      
 DEFENSE........................           6,126            6,126            6,126            6,126             
ENVIRONMENTAL RESTORATION,                                                                                      
 DEFENSE........................       2,180,200        1,880,200        2,034,075        1,780,200             
SUMMER OLYMPICS.................  ...............  ...............          10,000           14,400             
SPECIAL OLYMPICS................  ...............  ...............           3,000            3,000             
SUPPORT FOR INTERNATL SPORTING                                                                                  
 COMPETITION, DEFENSE...........  ...............           7,900   ...............  ...............            
HUMANITARIAN ASSISTANCE.........          71,900           60,000           71,900           65,000             
FORMER SOVIET UNION THREAT                                                                                      
 REDUCTION......................         400,000   ...............         400,000          400,000             
INTERNATIONAL PEACEKEEPING......         300,000   ...............  ...............  ...............            
REAL PROPERTY MAINTENANCE,                                                                                      
 DEFENSE........................  ...............  ...............         500,000   ...............            
                                 -------------------------------------------------------------------------------
      GRANT TOTAL, O&M..........      81,926,891       80,006,961       81,361,358      80,925,585              
                                 ===============================================================================
          TRANSFER..............        (150,000)        (150,000)        (250,000)        (150,000)            
                                 -------------------------------------------------------------------------------
      TOTAL FUNDS AVAILABLE, O&M      82,076,891       80,156,961       81,611,358      81,075,585              
----------------------------------------------------------------------------------------------------------------

          justification materials and reprogramming procedures

       The conferees agree that proposed transfers of funds 
     between 0-1 budget activity funding categories in excess of 
     $20,000,000 are subject to normal reprogramming procedures. 
     Moreover, due to continuing concerns about military force 
     readiness, the conferees also agree that the Department shall 
     notify the Congressional defense committees prior to 
     transfers in excess of $20,000,000 from the following 
     subactivity group categories:

                               O&M, Army

       Operating forces: Combat units; Tactical support; Force 
     related training/special activities; Depot maintenance.

                               O&M, Navy

       Operating forces: Mission and other flight operations; 
     Aircraft depot maintenance; mission and other ship 
     operations; ship depot maintenance.

                           O&M, Marine Corps

       Operating forces: Operational forces.

                             O&M, Air Force

       Operating forces: Primary combat forces; Primary combat 
     weapons; Air operations training. Mobilization: Airlift 
     operations.
       In order to improve Congressional oversight and 
     understanding of the Department's operation and maintenance 
     program execution, the Department of Defense and military 
     services are directed to adopt the following guidelines as 
     they prepare the FY 1996 operation and maintenance budget 
     justification materials:
       For each subactivity group category, the justification 
     materials must show dollar amounts for the most recent 
     actual, the current year estimates, and the budget request 
     estimate.
       The current year estimates should be arrayed in columns 
     which reflect the budget request, the appropriation amount, 
     and a current execution estimate.
       The current year appropriation amount for each subactivity 
     group must be the same figure as reflected in the 0-1 tables 
     included in this Conference Report and Statement of Managers.
       A description of the difference between the current year 
     appropriation and the current execution estimate must be 
     supplied as part of the traditional reconciliation of 
     increases and decreases.
       Finally, the conferees agree that the current execution 
     estimate reflected in the justification materials (at the 
     budget activity group level) shall serve as the base for 
     reprogramming except in those special cases noted above.
       The conferees direct the Department to submit a Mid-Year 
     Operation and Maintenance Execution Review, not later than 
     April 1, 1995, to the Committees on Appropriations and Armed 
     Services of the House and Senate.


                           depot maintenance

       Both the House and Senate reports raised serious concerns 
     regarding the DoD's policy on the public/private share of 
     depot maintenance and competition for depot maintenance 
     workloads. The reports directed by the House on these issues 
     are to be provided to the Committees on Appropriations by 
     February 15, 1995.
       The conferees agree that public/private competition for 
     depot maintenance workloads shall be reinstituted. Regarding 
     public/private competition, the conferees believe 
     interservicing common commodity workloads to ``Centers of 
     Excellence,'' as conceptually proposed by the Department, 
     will result in greater long-term savings and efficiencies 
     than periodic public/private competitions and should be given 
     precedence in the immediate future. The conferees are 
     concerned the military services are failing to submit 
     interservicing candidates to the Office of the Secretary of 
     Defense (OSD) for consideration, and fully expect the 
     Department to propose specific depot interservicing proposals 
     in conjunction with next year's budget submission and base 
     closure and realignment recommendations.
       Further, the conferees agree that a robust depot 
     maintenance program should be considered fundamental to 
     preserving military readiness. Thus, the conferees direct the 
     military services to allocate funding for depot maintenance 
     programs requested in its annual budget submissions at levels 
     equal to or greater than 80 percent of the annual 
     requirements for airframes and aircraft engines, combat 
     vehicles, ships, and ground communications and electronic 
     equipment.
       Finally, the conferees agree with the concerns cited in the 
     House report regarding the role of DoD depot maintenance 
     activities in providing non-defense services to entities 
     outside the Department of Defense. The conferees direct the 
     Department to specifically exclude from consideration during 
     the base closure and realignment decision process any 
     facility's actual or potential provision of non-defense 
     services (including revenues and workload resulting from non-
     defense activity), and to follow the reporting requirements 
     in the House report.


                 family advocacy and child development

       A summary of the conference agreement with respect to the 
     Department's child development and family advocacy programs 
     is provided in the table below:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Army            Navy        Marine Corps      Air Force     Defense wide        Total    
--------------------------------------------------------------------------------------------------------------------------------------------------------
Child development.......................................             5.0             5.0             2.5             5.0  ..............            17.5
Family support..........................................  ..............             8.6             4.7  ..............  ..............            13.3
At-risk youth programs..................................  ..............  ..............  ..............  ..............             8.0             8.0
New parent support......................................  ..............  ..............  ..............  ..............            20.0            20.0
Family advocacy/program.................................  ..............  ..............  ..............  ..............            26.0            26.0
                                                         -----------------------------------------------------------------------------------------------
      Total.............................................             5.0            13.6             7.2             5.0            54.0            84.8
--------------------------------------------------------------------------------------------------------------------------------------------------------

       The conferees direct the Secretary of Defense to provide a 
     report--not later than December 15, 1994--to the 
     congressional defense committees detailing the allocation and 
     proposed use of all funds provided by these recommendations. 
     Moreover, the conferees direct that at least $15,000,000 of 
     these additional funds be allocated to forces and 
     installations located in the Pacific region.


                 family advocacy program justification

       The conferees direct the Department of Defense and the 
     military services to revamp their 0-1 justification breakout 
     so that programs associated with child development and family 
     advocacy and support are grouped into a single subactivity 
     category.


                         outsourcing child care

       The Department of Defense (DoD) is urged to investigate 
     child care alternatives that provide appropriate services at 
     lower costs. The conferees have been made aware of innovative 
     private sector child care proposals that would obviate or 
     reduce the need for construction of on-base Child Development 
     Centers at some locations. The Pacific theater proposals that 
     have been brought to our attention would yield significant 
     savings in operating cost as well as cost avoidance in the 
     military construction appropriation, while providing child 
     care that meets or exceeds military standards. DoD is 
     encouraged to solicit proposals and conduct one or more 
     demonstration projects to test the viability of outsourcing 
     child care at locations where this approach is practical.


                       recruiting and advertising

       The conferees agree to provide an increase totalling 
     $88,700,000 for Department of Defense and military service 
     recruiting and advertising programs. In a related matter, 
     research has determined that national advertising is a cost-
     effective method to attract young people into the military. 
     However, there has been no research to investigate the 
     relative cost-effectiveness of local versus national 
     advertising. Accordingly, the conferees direct the Department 
     of Defense to conduct a study to determine the comparative 
     effectiveness of national versus local advertising. A report 
     documenting the study results should be forwarded to the 
     House and Senate Committees on Appropriations and Armed 
     Services by May 1, 1995.


                           civilian personnel

       The conference agreement reflects several adjustments 
     affecting the Department's civilian personnel programs. Funds 
     have been added to various operation and maintenance, 
     research and development, and other accounts to partially 
     cover the civilian personnel pay raise and locality pay 
     increases. Also, funding has been provided to cover the 
     anticipated civilian separation costs engendered by passage 
     of the Federal Workforce Restructuring Act. These increases 
     are more than offset by reductions made to reflect lower-
     than-planned civilian personnel levels at the start of fiscal 
     year 1995.


                              war colleges

       In the fiscal year 1994 Appropriations Conference report 
     (H. Report 103-339), the conferees requested that the 
     Department provide a study on consolidation of command and 
     staff colleges, war colleges, and their administration. A 
     report was provided as requested; however, it appears that 
     the selection of study panel members with duties and 
     responsibilities that would be directly affected by the 
     study's conclusions resulted in a report with little 
     objectivity and recommendations determined in advance of 
     analysis. In particular, the recommendation supporting the 
     retention of all war colleges is based on a specious argument 
     that the war colleges must train greater numbers of future 
     leaders in these times of relative peace to prepare for 
     future threats. This rationale is inconsistent with testimony 
     from Department witnesses who claim that there are theaters 
     in conflict all over the globe involving U.S. forces and that 
     today's threats are more diverse and challenging than in the 
     past. Additionally, the conferees are disturbed that the 
     services are not applying this rationale to the training of 
     the senior non-commissioned officer (NCO) corps. Professional 
     development training for senior NCOs has been reduced in 
     recent years.
       The conferees are not convinced that student loads at the 
     war colleges need to increase. Unfortunately, classes that 
     will be in attendance during fiscal year 1995 have already 
     begun and a student load reduction at this time would be 
     disruptive. The timing of a reduction in the student 
     population should precede permanent change of station moves 
     and the beginning of the academic year. Thus, the conferees 
     agree to make no reductions to the Department's war college 
     appropriation requests for fiscal year 1995. However, the 
     conferees direct the Department to reduce fiscal year 1996 
     war college student loads consistent with the force structure 
     reductions so that the number of graduates each year will be 
     the same percentage of the total force as before the 
     drawdown. The conferees will revisit this issue if the 
     Department fails to comply with this direction.
       Finally, the conferees are convinced that the joint 
     education program and broad-based curriculum of the National 
     Defense University should serve as a model for all Department 
     of Defense graduate military educational institutions. 
     Likewise, the Naval War College's efforts to vertically 
     integrate the Navy's graduate education infrastructure are 
     viewed by the conferees as having important lessons for the 
     other military services. The conferees intend to continue to 
     work with each of the services and the Office of the 
     Secretary of Defense to chart a course of DoD graduate 
     military education that meets both the changing military and 
     fiscal imperatives facing our forces.


                         revolving fund rebates

       The conferees agree to funding reductions approved by the 
     Senate based on changes in Military Sealift Command price 
     rates and expected supply operation productivity 
     enhancements. In doing so, the conferees expect the 
     Department to ``rebate'' savings from the appropriate 
     Department of Defense revolving fund to exactly offset the 
     related reductions made to the various operation and 
     maintenance accounts. These rebates should be made no later 
     than March 1, 1995.


             maintenance of military turbine (jet) engines

       The Department of Defense can earn substantial savings by 
     expanding competition for depot maintenance of equipment 
     common to the military and industry, specifically 
     commercially developed airline turbine (jet) engines. The 
     conferees note that two engines in particular offer 
     substantial opportunities for savings: 1) the military F108 
     which is the CFM56-2 airline engine, and 2) the military TF33 
     engine, which is the JT3D airline engine.
       Commercial jet engines operated by the military, as well as 
     other commercial ``variants'', provide significant 
     opportunities for private maintenance. Expanding such support 
     meets the letter and spirit of Vice President Gore's 
     ``National Performance Review'' for reinventing government to 
     increase efficiency and save money. Thus, the conferees 
     direct the Department to submit a report to the Committees on 
     Appropriations of the House and Senate detailing a proposal 
     for expanding competition for commercial jet engines no later 
     than January 15, 1995. The conferees intend to work with the 
     Department to clearly establish the scope and direction of 
     this proposal.


               support to non-governmental organizations

       The conferees share the concerns of the House on the issue 
     of the Department of Defense's participation in conventions, 
     conferences, seminars and symposia sponsored by non-
     governmental organizations, especially national military 
     associations and professional and technical organizations. 
     The conferees are concerned that at a time when training 
     funds are limited and basic proficiency training for junior 
     military personnel is being rationed, too much of the 
     Department's discretionary training and educational resources 
     may be used by senior military and civilian personnel to 
     attend conventions of questionable content in terms of 
     professional development.
       The conferees understand that commanders currently monitor 
     the expenditures related to support of and participation in 
     conventions, conferences, seminars and symposia. Therefore, 
     creating and maintaining a tracking system is unnecessary at 
     this time. Instead, the conferees believe the Secretary of 
     Defense should take a fresh look at the process by which the 
     Department determines the value of such activities to the 
     Department.
       The conferees direct the Secretary to establish an 
     independent panel to: (1) review current certification 
     procedures for events sponsored by non-governmental 
     organizations; (2) survey as comprehensively as possible the 
     professional development content of such conventions, 
     conferences, seminars and symposia during the past year; and 
     (3) outline a process for monitoring the professional 
     development content of such conventions, conferences, 
     seminars and symposia. The conferees believe the Department 
     should consider an evaluative scale to measure the 
     professional development content of such events. The 
     Secretary should provide the results of this survey not later 
     than June 1, 1995.
       The conferees wish to emphasize that non-governmental 
     associations perform a valuable function. For example, the 
     Department needs to have the means to discuss resource 
     priorities and program objectives with private citizens and 
     companies without giving one company an unfair advantage. 
     Nonetheless, the conferees believe closer attention is needed 
     on the true professional content of these events.


                            stu-III program

       The conferees provide $3,000,000 to DOD for the procurement 
     of STU-III's. The additional funds are appropriated to the 
     following operation and maintenance accounts: Army, 
     $1,000,000; Navy, $1,000,000; and Air Force, $1,000,000. DOD 
     is currently reallocating funds for STE, a follow-on program 
     to the STU-III program. Currently the STE program does not 
     have an executable budget. Therefore, the conferees direct 
     that the Secretary of Defense report no later than thirty 
     days after enactment of this bill, the total dollars in the 
     fiscal year 1995 request for STE development. Furthermore, 
     the conferees direct that no funds budgeted in fiscal year 
     1995 for STE development may be executed without prior 
     approval from the Appropriations Committees. The conferees 
     direct the Secretary of Defense to submit by February 15, 
     1995 a subsequent report which includes the following: 1) a 
     technical definition of the proposed STE system and 2) a five 
     year plan outlining research and development milestones and 
     3) a five year procurement schedule. Funds appropriated for 
     STE may not be spent for any other purpose but secure 
     communications; however, the conferees will consider a 
     request to reprogram fiscal year 1995 funds for STE 
     development. Furthermore, the conferees direct that DOD 
     breakout all STE funding in their fiscal year 1996 budget 
     request.

                    operation and maintenance, army

       Amendment No. 11: Appropriates $17,507,088,000 instead of 
     $17,836,504,000 as proposed by the House and $17,475,806,000 
     as proposed by the Senate.
       Amendment No. 12: Deletes House language making 
     $150,000,000 for real property maintenance available for 
     obligation until September 30, 1996.
       Amendment No. 13: Restores House language making 
     $388,599,000 available only for conventional ammunition care 
     and maintenance; amends House language making $5,800,000 
     available only for removal of equipment and the repair and 
     restoration of structures at the National Center for 
     Toxicological Research in Jefferson, Arkansas; deletes House 
     language prohibiting obligation of $473,763,000 until 
     authorized; inserts Senate language making available not less 
     than $5,000,000 only for payment to the DOD 50th Anniversary 
     of World War II Commemoration Appropriation; inserts language 
     making $9,500,000 available only to purchase an easement for 
     use by the Army at Schofield Barracks Military Reservation; 
     and inserts language allowing the Army to obligate not to 
     exceed $2,000,000, if matched by contributions from other 
     parties, for a remediation effort at Cordova, Alaska.
       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                        Budget           House            Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY                                                                                 
BUDGET ACTIVITY 1: OPERATING                                                                                    
 FORCES                                                                                                         
LAND FORCES            200                                                                                      
COMBAT UNITS....................       1,783,474        1,934,174        1,793,474        1,890,024             
TACTICAL SUPPORT................       1,178,297        1,178,297        1,178,297        1,178,297             
THEATER DEFENSE FORCES..........         208,141          208,141          208,141          208,141             
FORCE RELATED TRAINING/SPECIAL                                                                                  
 ACTIVITIES.....................       1,186,444        1,186,444        1,186,444        1,186,444             
FORCE COMMUNICATIONS............          61,496           61,496           61,496           61,496             
DEPOT MAINTENANCE...............       1,037,338        1,337,338        1,133,638        1,168,638             
JCS EXERCISES...................          66,412           66,412           66,412           66,412             
BASE SUPPORT....................       3,197,534        3,307,534        3,228,984        3,127,984             
LAND OPERATIONS SUPPORT675                                                                                      
COMBAT DEVELOPMENTS.............         222,405          222,405          222,405          222,405             
UNIFIED COMMANDS................          74,246           65,000           74,246           74,246             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1:                                                                                 
       OPERATING FORCES.........       9,015,787        9,567,241        9,153,537        9,184,087             
                                                  ==============================================================
BUDGET ACTIVITY 2: MOBILIZATION                                                                                 
MOBILITY OPERATIONS    900                                                                                      
POMCUS..........................         142,299          142,299          142,299          142,299             
STRATEGIC MOBILIZATION..........         284,647          284,647          284,647          284,647             
WAR RESERVE ACTIVITIES..........          54,718           54,718           54,718           54,718             
INDUSTRIAL PREPAREDNESS.........          89,728           89,728           89,728           89,728             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2:                                                                                 
       MOBILIZATION.............         571,392          571,392          571,392          571,392             
                                                  ==============================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
ACCESSION TRAINING    1250                                                                                      
OFFICER ACQUISITION.............          51,184           51,184           51,184           51,184             
RECRUIT TRAINING................          12,173           12,173           12,173           12,173             
ONE STATION UNIT TRAINING.......          16,733           16,733           16,733           16,733             
RESERVE OFFICER TRAINING CORPS                                                                                  
 (ROTC).........................         108,642          108,642          108,642          108,642             
BASE SUPPORT (ACADEMY ONLY).....         115,300          113,000          114,900          112,600             
BASIC SKILL/ADVANCE TRAINING                                                                                    
SPECIALIZED SKILL TRAINING......         244,356          249,356          244,356          249,356             
FRIENDLY FIRE/SAFETY TRAINING...  ...............  ...............  ...............  ...............            
FLIGHT TRAINING.................         258,167          258,167          258,167          258,167             
TOSS............................  ...............  ...............  ...............  ...............            
PROFESSIONAL DEVELOPMENT00                                                                                      
 EDUCATION......................          87,296           81,000           76,696           87,296             
TRAINING SUPPORT................         390,778          399,578          382,668          384,178             
BASE SUPPORT (OTHER TRAINING)...       1,062,203        1,113,203          998,203        1,029,203             
RECRUITING/OTHER TRAINING5                                                                                      
RECRUITING AND ADVERTISING......         159,959          159,959          206,059          192,959             
EXAMINING.......................          66,133           66,133           66,133           66,133             
OFF-DUTY AND VOLUNTARY EDUCATION         110,633          110,633          110,633          110,633             
CIVILIAN EDUCATION AND TRAINING.          92,000           89,000           88,200           88,200             
JUNIOR ROTC.....................          65,387           65,387           65,387           65,387             
BASE SUPPORT (RECRUITING LEASES)         155,075          155,075          154,675          154,675             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3:                                                                                 
       TRAINING AND RECRUITING..       2,996,019        3,049,223        2,954,809        2,987,519             
                                                  ==============================================================
BUDGET ACTIVITY 4: ADMIN &                                                                                      
 SERVICEWIDE ACTIVITIES                                                                                         
SECURITY PROGRAMS     2300                                                                                      
SECURITY PROGRAMS...............         400,696          386,696          400,696          400,696             
CLASSIFIED......................  ...............  ...............  ...............  ...............            
LOGISTICS OPERATIONS  2400                                                                                      
SERVICEWIDE TRANSPORTATION......         544,832          544,832          559,472          559,472             
CENTRAL SUPPLY ACTIVITIES.......         478,524          478,524          478,524          478,524             
LOGISTIC SUPPORT ACTIVITIES.....         342,751          353,251          342,751          352,451             
AMMUNITION MANAGEMENT...........         388,599          388,599          388,599          388,599             
SERVICEWIDE SUPPORT   2650                                                                                      
ADMINISTRATION..................         316,751          301,101          310,551          327,835             
SERVICEWIDE COMMUNICATIONS......         805,494          805,494          726,294          773,644             
MANPOWER MANAGEMENT.............          81,413           74,200           81,413           81,413             
OTHER PERSONNEL SUPPORT.........         174,934          174,934          174,934          174,934             
OTHER SERVICE SUPPORT...........         541,957          541,957          522,569          536,457             
ARMY CLAIMS ACTIVITIES..........         177,564          177,564          177,564          177,564             
REAL ESTATE MANAGEMENT..........          98,209           98,209           98,709           98,709             
BASE SUPPORT....................         600,280          600,280          530,380          529,980             
SUPPORT OF OTHER NATIONS90                                                                                      
INTERNATIONAL MILITARY3200                                                                                      
 HEADQUARTERS...................         265,525          235,640          250,925          250,925             
MISC SUPPORT OF OTHER NATIONS...          20,267           20,267           20,267           20,267             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4:                                                                                 
       ADMIN & SERVICEWIDE ACT..       5,237,796        5,181,548        5,063,648        5,151,470             
                                                  ==============================================================
CLASSIFIED PROGRAMS   3330                                                                                      
 UNDISTRIBUTED..................  ...............          -5,377           -7,100           -8,100             
RENTAL PAYMENTS.................          -4,180           -4,180           -4,180           -4,180             
TRANSFERS TO DEFENSE CONVERSION                                                                                 
 & REINVESTMENT ACCOUNT.........  ...............        -101,400   ...............  ...............            
CIVILIAN PERS PAY RAISE &0                                                                                      
 LOCALITY PAY...................  ...............         114,000   ...............          21,400             
CIVILIAN PERSONNEL UNDERSTRENGTH  ...............        -196,200         -290,400         -236,300             
CIVILIAN SEPARATION INCENTIVES..  ...............  ...............          84,100           17,800             
CONTRACTOR & CONSULTING SERVICES  ...............        -156,000   ...............         -78,000             
INFORMATION TECHNOLOGY..........  ...............        -133,743   ...............         -50,000             
GENERAL REDUCTION, NATIONAL                                                                                     
 DEFENSE STOCKPILE FUND.........         -50,000          -50,000          -50,000          -50,000             
                                                  ==============================================================
      TOTAL, OPERATION AND                                                                                      
       MAINTENANCE, ARMY........      17,766,814       17,836,504       17,475,806       17,507,088             
          (BY TRANSFER--NATIONAL                                                                                
           DEFENSE STOCKPILE                                                                                    
           FUND)................         (50,000)         (50,000)         (50,000)         (50,000)            
                                                  --------------------------------------------------------------
      TOTAL FUNDS AVAILABLE.....     (17,816,814)     (17,886,504)     (17,525,806)     (17,557,088)            
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1--Operating Forces:
  250 War reserve spares.........................................45,350
    Supplemental Fuel Tank........................................1,000
    Helicopter Training, Israel...................................9,000
    Attack Aviation Bn (EUSA).....................................9,200
    Patriot Bn (EUSA)............................................42,000
  500 C-E maint backlog..........................................35,000
    Aircraft Maintenance backlog.................................85,500
    Vehicle Maintenance Backlog..................................10,800
  600 National Training Center/George AFB airhead.................2,000
    Hamilton AFB Cleanup..........................................1,000
    Travel.....................................................(12,000)
    European Drawdown/USAREUR baseops............................47,000
    Supply operations..........................................(25,000)
    Joint Agency Task Force.........................................750
    Army conservation.............................................5,700
    Schofield Barracks easement...................................9,500
    Wild horses roundup, White Sands Missile Range................1,500
    RPM general reduction.....................................(100,000)
Budget Activity 3--Training and Recruiting:
  1500 Base Support.............................................(2,300)
    Travel........................................................(400)
  1600 Specialized Skills Training................................5,000
  1750 TNET......................................................10,000
    Schoolhouse training.......................................(16,600)
  1800 Ft Bliss Ordnance Cleanup..................................1,000
    Travel......................................................(4,000)
    Supply operations..........................................(25,000)
    Base operations (non-combat)................................(5,000)
  1900 Recruiting and advertising................................33,000
  2050 Civilian Education and Training..........................(3,800)
  2150 Travel.....................................................(400)
Budget Acitivity 4--Admin & Servicewide Activities
  2450 MSC rate change.........................................(16,300)
    RetroEur.....................................................40,000
    MTMC pricing................................................(9,060)
  2550 Aberdeen PG Asbestos removal...............................2,000
    Equipment at Nat'l Ctr for Toxicological Research.............5,800
    OSCAR Project, Letterkenny Army Depot.........................1,900
  2700 Pentagon, MACOM Hq & admin overhead......................(6,200)
    Memorial Day & July 4th Concerts................................950
    Eau Claire (Presto Ind) Cleanup...............................2,334
    Army Environmental Institute..................................4,000
    Presidio of SF infrastructure improvements...................10,000
  2750 Base communications infrastructure......................(16,350)
    Administrative workyears...................................(16,500)
    SBIS..........................................................1,000
  2900 Child development..........................................5,000
    Life Science Equipment Laboratory...............................500
    Administrative workyears...................................(11,000)
  3000 Real estate planning.........................................500
  3100 Travel...................................................(2,300)
    Arms control................................................(6,000)
    Administrative workyears...................................(12,300)
    Supply operations..........................................(14,700)
    Base operations (noncombat)................................(35,000)
  3200 International Mil Hq....................................(14,600)
  3300 Classified Prog..........................................(8,100)
Other Adjustments:
  3480 Civ Pers pay raise & Locality Pay.........................21,400
  3605 Civilian Personnel Understrength.......................(236,300)
  3607 Workforce Restruct Act....................................17,800
  3620 Contractor and consulting services......................(78,000)
  3625 Information Technology (General reduction)..............(50,000)
                                                             __________

      Total Adjustments.......................................(259,726)


                       cordova roundhouse cleanup

       Of the funds provided for Base Support (0-1 line 600), the 
     conferees provide $2,000,000 and statutory authority for the 
     Secretary of the Army to contribute up to $2,000,000 to 
     efforts to clean up the Army Round House oil pit at Cordova, 
     Alaska. This site was utilized by the Army during World War 
     II, and subsequently by other commercial ventures. Local 
     authorities are seeking to arrange a multi-party solution to 
     this contamination hazard, where private sector entities with 
     responsibility will contribute to the cleanup effort, without 
     engaging in litigation. The Secretary may only obligate these 
     funds to the extent the private sector parties contribute to 
     this effort.


                         conservation programs

       The conferees have provided an increase of $5,700,000 in 
     the ``Operation and Maintenance, Army'' account only to 
     proceed with the proposed ecosystem management program in the 
     State of Hawaii as defined by the Senate.


                         waste water treatment

       The conferees agree with the Senate's concerns regarding 
     waste water disposal at military installations in the State 
     of Hawaii. To this end, the conferees have provided an 
     increase of $9,500,000 in the ``Operation and Maintenance, 
     Army'' account to purchase a seven year easement from the 
     Waialua Sugar Company on the Island of Oahu for the discharge 
     of waste water produced by military activities. The conferees 
     have included bill language to implement this recommendation. 
     The conferees further agree to provide an increase of 
     $750,000, as recommended by the Senate, to continue the 
     analysis and planning efforts of the joint agency waste water 
     task force which has been established by the Army.


            army high performance computing research center

       The conferees direct that the Army High Performance 
     Computing Research Center shall not be moved from its current 
     location unless analyses, which consider the costs of 
     relocating the Center, indicate it is cost effective to do 
     so.


                  MILITARY ENTRANCE PROCESSING COMMAND

       The conferees are concerned that examining costs per 
     accession are increasing beyond expected rates. The Army is 
     directed to review examining costs and take appropriate 
     action--should it be warranted--to keep examining costs per 
     accession at the prior year level plus inflation only. The 
     conferees estimate that $3,400,000 could be made available to 
     meet other efforts, such as automation upgrades required at 
     the Military Entrance Processing Stations (MEPS) and 
     recommend that any savings identified be reapplied to this 
     effort. Application of these funds to automation will yield 
     future savings by improving the efficiency of the current 
     records management system.

                    Operation and Maintenance, Navy

       Amendment No. 14: Appropriates $21,054,470,000 instead of 
     $21,316,555,000 as proposed by the House and $21,275,770,000 
     as proposed by the Senate.
       Amendment No. 15: Deletes House language making 
     $200,000,000 for real property maintenance available for 
     obligation until September 30, 1996.
       Amendment No. 16: Deletes House language prohibiting 
     obligation of $1,206,359,000 until authorized and deletes 
     Senate language making not less than $2,436,700,000 available 
     for depot maintenance, repair and overhaul of Navy ships 
     prior to September 30, 1995.
       Amendment No. 17: Inserts Senate language making 
     $45,874,000 available only for the Pacific Missile Range 
     Facility, Hawaii.
       Amendment No. 18: Deletes Senate language making available 
     $1,000,000 for environmental activities at the Derecktor 
     Shipyard and inserts language making $46,300,000 for shipyard 
     modernization available for obligation until September 30, 
     1996.
       The conference agreement is as follows:

                                                                                                                
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                        Budget           House            Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, NAVY.                                                                                
BUDGET ACTIVITY 1: OPERATING                                                                                    
 FORCES.........................                                                                                
AIR OPERATIONS..................                                                                                
MISSION AND OTHER FLIGHT50                                                                                      
 OPERATIONS.....................       1,922,587        1,993,987        1,922,587        1,922,587             
FLEET AIR TRAINING..............         737,877          737,877          737,877          737,877             
INTERMEDIATE MAINTENANCE........          67,154           67,154           67,154           67,154             
AIR OPERATIONS AND SAFETY0                                                                                      
 SUPPORT........................          82,359           82,359           82,359           82,359             
AIRCRAFT DEPOT MAINTENANCE......         659,511          709,511          683,111          683,111             
AIRCRAFT DEPOT OPERATIONS0                                                                                      
 SUPPORT........................          34,001           34,001           34,001           34,001             
BASE SUPPORT....................       1,129,192        1,235,192        1,102,192        1,009,692             
SHIP OPERATIONS       4325                                                                                      
MISSION AND OTHER SHIP4350                                                                                      
 OPERATIONS.....................       1,891,202        1,891,202        1,891,202        1,891,202             
INVENTORIES.....................  ...............  ...............  ...............  ...............            
SHIP OPERATIONAL SUPPORT AND                                                                                    
 TRAININNG......................         501,771          550,771          501,771          524,771             
INTERMEDIATE MAINTENANCE........         425,116          425,116          425,116          425,116             
SHIP DEPOT MAINTENANCE..........       2,337,433        2,387,433        2,415,433        2,365,433             
SHIP DEPOT OPERATIONS SUPPORT...         867,204          867,204          867,204          867,204             
BASE SUPPORT....................       1,009,960        1,109,960        1,077,060        1,041,260             
COMBAT OPERATIONS/SUPPORT5                                                                                      
COMBAT COMMUNICATIONS...........         213,237          213,237          213,237          213,237             
ELECTRONIC WARFARE..............           8,625            8,625            8,625            8,625             
SPACE SYSTEMS AND SURVEILLANCE..         116,807          116,807          116,807          116,807             
WARFARE TACTICS.................         134,275          134,275          134,275          134,275             
OPERATIONAL METEOROLOGY AND                                                                                     
 OCEANOGRAPHY...................         188,699          188,699          188,699          188,699             
COMBAT SUPPORT FORCES...........         280,874          283,374          280,874          280,874             
EQUIPMENT MAINTENANCE...........         168,179          168,179          168,179          168,179             
DEPOT OPERATIONS SUPPORT........           1,262            1,262            1,262            1,262             
BASE SUPPORT....................         461,296          461,296          461,296          461,296             
WEAPONS SUPPORT       5175                                                                                      
CRUISE MISSILE..................         130,964          130,964          130,964          130,964             
FLEET BALLISTIC MISSILE.........         780,849          780,849          780,849          780,849             
IN-SERVICE WEAPONS SYSTEMS                                                                                      
 SUPPORT........................          30,546           30,546           30,546           30,546             
WEAPONS MAINTENANCE.............         475,942          475,942          475,942          475,942             
BASE SUPPORT....................          92,322           92,322           92,322           92,322             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1:                                                                                 
       OPERATING FORCES.........      14,749,244       15,178,144       14,890,944       14,735,644             
                                                  ==============================================================
BUDGET ACTIVITY 2: MOBILIZATION.                                                                                
READY RESERVE AND PREPOSITIONING                                                                                
 FORCES.........................                                                                                
SHIP PREPOSITIONING AND SURGE...         455,123          455,123          455,123          455,123             
ACTIVATIONS/INACTIVATIONS0                                                                                      
AIRCRAFT ACTIVATIONS/ 5700                                                                                      
 INACTIVATIONS..................          12,921           42,521           12,921           12,921             
SHIP ACTIVATIONS/INACTIVATIONS..         811,129          811,129          811,129          811,129             
MOBILIZATION PREPAREDNESS.......                                                                                
FLEET HOSPITAL PROGRAM..........          16,473           16,473           16,473           16,473             
INDUSTRIAL READINESS............          58,785           58,785           58,785           58,785             
COAST GUARD SUPPORT.............          18,308           18,308           18,308           18,308             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2:                                                                                 
       MOBILIZATION.............       1,372,739        1,402,339        1,372,739        1,372,739             
                                                  ==============================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
ACCESSION TRAINING    6100                                                                                      
OFFICER ACQUISITION.............          58,637           58,637           58,637           58,637             
RECRUIT TRAINING................           4,436            4,436            4,436            4,436             
RESERVE OFFICERS TRAINING CORPS                                                                                 
 (ROTC).........................          51,323           51,323           51,323           51,323             
BASE SUPPORT....................         129,170          129,170          129,170          129,170             
BASIC SKILLS AND ADVANCED0                                                                                      
 TRAINING                                                                                                       
SPECIALIZED SKILL TRAINING......         216,554          221,554          216,554          221,554             
FLIGHT TRAINING.................         325,683          325,683          320,683          320,683             
PROFESSIONAL DEVELOPMENT00                                                                                      
 EDUCATION......................          54,442           54,442           54,442           54,442             
TRAINING SUPPORT................         137,174          137,174          134,074          137,174             
BASE SUPPORT....................         454,375          454,375          446,775          446,775             
RECRUITING, AND OTHER TRAINING                                                                                  
 AND EDUCATION                                                                                                  
RECRUITING AND ADVERTISING......          89,849           89,849          129,049          120,849             
OFF-DUTY AND VOLUNTARY EDUCATION          61,798           61,798           61,798           61,798             
CIVILIAN EDUCATION AND TRAINING.          24,362           24,362           24,362           24,362             
JUNIOR ROTC.....................          21,171           21,171           21,171           21,171             
BASE SUPPORT....................           1,496            1,496            1,496            1,496             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3:                                                                                 
       TRAINING AND RECRUITING..       1,630,470        1,635,470        1,653,970        1,653,870             
                                                  ==============================================================
BUDGET ACTIVITY 4: ADMIN &                                                                                      
 SERVICEWIDE ACTIVITIES                                                                                         
SERVICEWIDE SUPPORT   7050                                                                                      
ADMINISTRATION..................         382,299          357,299          346,199          361,499             
EXTERNAL RELATIONS    7150                18,241           18,241           18,241           18,241             
CIVILIAN MANPOWER AND PERSON                                                                                    
 MANAGEMENT.....................          55,571           52,000           55,571           55,571             
MILITARY MANPOWER AND PERSON                                                                                    
 MANAGEMENT.....................         143,406          132,000          143,406          143,406             
OTHER PERSONNEL SUPPORT.........         386,950          386,950          415,550          400,550             
SERVICEWIDE COMMUNICATIONS......         216,189          216,189          191,589          203,889             
BASE SUPPORT....................         291,873          291,873          289,173          289,173             
LOGISTICS OPERATIONS AND75                                                                                      
 TECHNICAL SUPPORT                                                                                              
SERVICEWIDE TRANSPORTATION......         142,315          142,315          137,015          137,015             
PLANNING, ENGINEERING AND DESIGN         243,258          243,258          243,258          243,258             
ACQUISITION AND PROGRAM600                                                                                      
 MANAGEMENT.....................         393,047          393,047          363,047          393,047             
AIR SYSTEMS SUPPORT.............         375,095          338,000          375,095          344,095             
HULL, MECHANICAL AND ELECTRICAL                                                                                 
 SUPPORT........................          54,079           54,079           54,079           54,079             
COMBAT/WEAPONS SYSTEMS..........          37,879           37,879           37,879           37,879             
SPACE AND ELECTRONIC WARFARE                                                                                    
 SYSTEMS........................          73,660           73,660           73,660           73,660             
BASE SUPPORT....................         131,959          131,959          128,959          128,959             
SECURITY PROGRAMS...............         508,727          496,727          508,727          508,727             
SECURITY PROGRAMS     7975                                                                                      
BASE SUPPORT....................          12,805           12,805           12,805           12,805             
SUPPORT OF OTHER NATIONS50                                                                                      
INTERNATIONAL HEADQUARTERS AND                                                                                  
 AGENCIES.......................           7,433            7,433            7,433            7,433             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4:                                                                                 
       ADMIN & SERVICEWIDE ACT..       3,474,786        3,385,714        3,401,686        3,413,286             
                                                  ==============================================================
CLASSIFIED PROGRAMS   8180                                                                                      
 UNDISTRIBUTED..................  ...............          -5,000           -4,700           -3,200             
RENTAL PAYMENTS.................            -669             -669             -669             -669             
TRANSFERS TO DEFENSE CONVERSION                                                                                 
 & REINVESTMENT ACCOUNT.........  ...............        -154,300   ...............  ...............            
CIVILIAN PERS PAY RAISE &0                                                                                      
 LOCALITY PAY...................  ...............         142,600   ...............          10,800             
FOREIGN CURRENCY................  ...............  ...............  ...............  ...............            
CONTRACTOR & CONSULTING SERVICES  ...............         -84,000   ...............         -42,000             
CIVILIAN SEPARATION INCENTIVES..  ...............  ...............          11,800            9,500             
INFORMATION TECHNOLOGY..........  ...............        -133,743   ...............         -45,500             
GENERAL REDUCTION, NATIONAL                                                                                     
 DEFENSE STOCKPILE FUND.........         -50,000          -50,000          -50,000          -50,000             
                                                  ==============================================================
      TOTAL, OPERATION AND                                                                                      
       MAINTENANCE, NAVY........      21,176,570       21,316,555       21,275,770       21,054,470             
          (BY TRANSFER--NATIONAL                                                                                
           DEFENSE STOCKPILE                                                                                    
           FUND)................         (50,000)         (50,000)         (50,000)         (50,000)            
                                                  --------------------------------------------------------------
      TOTAL FUNDS AVAILABLE.....     (21,226,570)     (21,366,555)     (21,325,770)     (21,104,470)            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1--Operating Forces:
  4150 Aircraft depot maintenance backlog........................23,600
  4250 New Orleans NAS & NSA RPM backlog..........................6,000
    Travel......................................................(2,000)
    Supply operations..........................................(25,000)
    RPM general reduction.....................................(100,000)
    NPGS Joint Warfare Analysis...................................1,500
  4400 Ships supplies & equipage.................................23,000
  4500 Ship maintenance backlog..................................50,000
    SSNB maintenance delay.....................................(23,000)
    CONSTELLATION & INTREPID Survey....................1,000
  4600 Travel...................................................(2,000)
    Supply operations..........................................(20,000)
    Charleston Naval Complex......................................6,000
    Shipyard modernization.......................................46,300
    Environmental activities, Derecktor Shipyard..................1,000
Budget Activity 3--Training and Recruiting:
  6400 Friendly Fire/Safety Tng...................................5,000
  6450 Schoolhouse training.....................................(5,000)
  6600 Travel...................................................(2,000)
    Supply operations...........................................(5,600)
  6700 Recruiting and advertising................................31,000
Budget Activity 4--Admin & Servicewide Activities:
  7100 Pentagon, Maj Comds & admin overhead....................(12,500)
    Workyear pricing............................................(8,300)
  7300 Child development..........................................5,000
    Family support centers........................................8,600
  7350 Base communications infrastructure......................(12,300)
  7400 Travel.....................................................(600)
    Nimitz Center.................................................3,000
    Alcohol rehabilitation........................................1,000
    Environmental technologies..................................(6,100)
  7500 MSC rate change..........................................(5,300)
  7650 Logistics & technical spt...............................(31,000)
  7850 Arms control.............................................(3,000)
  8180 Classified Programs......................................(3,200)
Other Adjustments:
  8280 Civ Pers pay raise & Locality Pay.........................10,800
  8405 Contractor and consulting services......................(42,000)
  8417 Workforce Restruct Act.....................................9,500
  8420 Section 8107...............................................4,500
    Information Technology (general reduction).................(50,000)
                                                             __________

      Total adjustments.......................................(122,100)


                     pacific missile range facility

       The conferees agree with the Senate initiative to improve 
     the capabilities of the Navy's Pacific Missile Range Facility 
     and have provided an additional $21,500,000 in the ``Other 
     Procurement, Navy'' appropriations account and an additional 
     $6,200,000 in the ``Operation and Maintenance, Navy'' 
     appropriations account for these purposes. The additional 
     funds provided in the ``Operation and Maintenance, Navy'' 
     account--for a $5,400,000 communications project and for an 
     $800,000 range resources effort--must be used for the same 
     purposes for which the Senate originally recommended their 
     inclusion in the ``Other Procurement, Navy'' account.


                             naval academy

       The conferees agree to provide the full amount requested 
     for the Naval Academy's Bancroft Hall renovation and the 
     Shore Life Extension Program.


                             nimitz center

       As proposed by the Senate, the conferees direct the 
     Department of the Navy, in cooperation with the Office of the 
     Secretary of Defense, to establish a Chester W. Nimitz 
     Center. This center is to be modelled after the Marshall 
     Center program recently established in the European theater. 
     The conference agreement provides $3,000,000 for this 
     purpose.


                         joint warfare analysis

       The conferees agree to provide $1,500,000 to support the 
     establishment of a Joint Warfare Analysis program at the 
     Naval Post Graduate School. These funds are intended to be in 
     addition to the amount proposed for the Naval Post Graduate 
     School in the President's Fiscal Year 1995 budget request.


                           lcu transportation

       The conferees direct that the Department of the Navy use up 
     to $850,000, from within funds made available under this 
     heading, to transport an LCU ship to American Samoa, per the 
     conferees instruction in the Fiscal Year 1994 Defense 
     Appropriations Act.


                         floating drydock lease

       The conferees note that the Navy continues to ignore 
     Congressional directions included in prior Authorization and 
     Appropriations bills to re-lease the floating drydock (AFDM-
     3) to a ship and repair firm in the area of Mobile, Alabama. 
     The Navy approved the lease for a full term of its five-year 
     option, the original lease terms expired in July and have 
     been extended through a series of 3-month extensions since 
     that time. The conferees direct the Secretary of the Navy to 
     comply with previous Congressional direction and to report to 
     the Committees on Appropriations and Armed Services of the 
     House and Senate by December 1, 1994 on actions taken to re-
     lease the floating drydock.


                           derecktor shipyard

       The conferees have provided an increase of $1,000,000 in 
     the Operation and Maintenance, Navy account. The conferees 
     direct that these funds shall only be available for 
     environmental hazard response and remediation activities at 
     facilities owned by the Department of the Navy at the 
     Derecktor Shipyard, Newport, Rhode Island.

                Operation and Maintenance, Marine Corps

       Amendment No. 19: Appropriates $1,988,215,000 instead of 
     $2,097,395,000 as proposed by the House and $1,968,965,000 as 
     proposed by the Senate.
       Amendment No. 20: Deletes House language making $60,000,000 
     for real property maintenance available for obligation until 
     September 30, 1996 and deletes House language prohibiting 
     obligation of $100,300,000 until authorized.
       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget          House           Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, MARINE                                                                               
 CORPS                                                                                                          
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
EXPEDITIONARY FORCES    8700                                                                                    
OPERATIONAL FORCES..................         296,897         322,797         320,897         324,897            
FIELD LOGISTICS.....................         153,233         153,733         153,233         153,233            
DEPOT MAINTENANCE...................         114,749         171,749         128,049         168,749            
BASE SUPPORT........................         700,146         783,846         692,146         653,996            
USMC PREPOSITIONING     8975                                                                                    
MARITIME PREPOSITIONING.............          70,866          70,866          70,866          70,866            
NORWAY PREPOSITIONING...............           7,868           7,868           7,868           7,868            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1:                                                                                 
       OPERATING FORCES.............       1,343,759       1,510,859       1,373,059       1,379,609            
                                                     ===========================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
ACCESSION TRAINING      9200                                                                                    
RECRUIT TRAINING....................           6,265           6,265           6,265           6,265            
OFFICER ACQUISITION.................             258             258             258             258            
BASE SUPPORT........................          55,466          55,466          55,466          55,466            
BASIC SKILLS AND ADVANCED TRAINING                                                                              
SPECIALIZED SKILLS TRAINING.........          19,486          43,486          19,486          33,486            
FLIGHT TRAINING.....................             151             151             151             151            
PROFESSIONAL DEVELOPMENT EDUCATION..           7,654           7,654           7,654           7,654            
TRAINING SUPPORT....................          53,022          53,022          53,022          53,022            
BASE SUPPORT........................          56,647          56,647          56,647          56,647            
RECRUITING AND OTHER TRAINING                                                                                   
 EDUCATION                                                                                                      
RECRUITING AND ADVERTISING..........          54,608          54,608          65,308          61,208            
OFF-DUTY AND VOLUNTARY EDUCATION....          11,080          11,080          11,080          11,080            
JUNIOR ROTC.........................           7,491           7,491           7,491           7,491            
BASE SUPPORT........................           9,326           9,326           9,326           9,326            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3:                                                                                 
       TRAINING AND RECRUITING......         281,454         305,454         292,154         302,054            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &25                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
SERVICEWIDE SUPPORT    10050                                                                                    
LOGISTICS SUPPORT...................         101,705         101,705         101,705         101,705            
INVENTORIES.........................                                                                            
SPECIAL SUPPORT.....................         121,415         134,415         135,115         128,615            
SERVICEWIDE TRANSPORTATION..........          35,447          35,447          34,147          34,147            
ADMINISTRATION......................          25,491          25,491          19,261          24,661            
BASE SUPPORT........................           9,124           9,124           9,124           9,124            
FAMILY SUPPORT PROGRAM..............                                                                            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4:                                                                                 
       ADMIN & SERVICEWIDE ACT......         293,182         306,182         299,352         298,252            
                                                     ===========================================================
TRANSFERS TO DEFENSE CONVERSION &                                                                               
 REINVESTMENT ACCOUNT...............                         -32,000                                            
CIVILIAN PERS PAY RAISE & LOCALITY                                                                              
 PAY................................                           6,900                           3,900            
CLASSIFIED PROGRAM..................                                           4,400           4,400            
                                                     ===========================================================
      TOTAL, OPERATION AND50                                                                                    
       MAINTENANCE, MARINE CORPS....       1,918,395       2,097,395       1,968,965       1,988,215            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1--Operating Forces:
  8750 Unit Training.............................................12,000
    III MEF Training..............................................4,000
    Unit maintenance.............................................12,000
  8850 Depot maintenance backlog.................................57,000
    Ammunition rework...........................................(3,000)
  8900 Cp Pendleton Underground Storage Tanks.....................8,000
    Cp Pendleton Environ Compl....................................3,850
    Supply operations...........................................(7,000)
    Environmental technology....................................(1,000)
    RPM general reduction......................................(50,000)
Budget Activity 3--Training and Recruiting:
  9450 Skill Progression Training.................................9,000
    Friendly Fire/Safety Training.................................5,000
  9750 Recruiting and advertising.................................6,600
Budget Activity 4--Admin & Servicewide Activities:
  10150 Child development.........................................2,500
    Family support centers........................................4,700
  10200 MSC rate change.........................................(1,300)
  10250 Civilian workyear adjustment..............................(830)
Other Adjustments:
  10400 Civ Pers pay raise & Locality Pay...........................
    Workforce Restruct Act........................................2,000
  10405 Classified programs.......................................4,400
                                                             __________

      Total adjustments..........................................69,820

                  Operation and Maintenance, Air Force

       Amendment No. 21: Appropriates $18,763,427,000 instead of 
     $18,913,050,000 as proposed by the House and $18,786,243,000 
     as proposed by the Senate.
       Amendment No. 22: Deletes House language making $84,000,000 
     for real property maintenance available for obligation until 
     September 30, 1996.
       Amendment No. 23: Deletes House language prohibiting 
     obligation of $179,592,000 until authorized.
       Amendment No. 24: Deletes Senate language providing 
     $8,000,000 for the upgrading of CAMS/REMIS and inserts 
     language allowing the Secretary of the Air Force to acquire 
     real property near King Salmon Air Force Station.
       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                       Budget            House           Senate       Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, AIR                                                                                  
 FORCE                                                                                                          
BUDGET ACTIVITY 1: OPERATING                                                                                    
 FORCES                                                                                                         
AIR OPERATIONS       10800                                                                                      
PRIMARY COMBAT FORCES...........       2,697,173        2,926,873        2,816,433        2,868,073             
PRIMARY COMBAT WEAPONS..........         542,628          542,628          507,728          542,628             
COMBAT ENHANCEMENT FORCES.......         404,060          404,060          404,060          404,060             
AIR OPERATIONS TRAINING.........         567,551          567,551          564,321          583,551             
DEPOT MAINTENANCE...............  ...............  ...............  ...............  ...............            
COMBAT COMMUNICATIONS...........         844,372          844,372          844,372          844,372             
BASE SUPPORT....................       2,136,096        2,202,296        2,055,396        1,963,280             
COMBAT RELATED OPERATIONS.......  ...............  ...............  ...............  ...............            
GLOBAL C31 AND EARLY WARNING....         799,634          757,134          798,634          757,134             
NAVIGATION/WEATHER SUPPORT......         138,501          138,501          138,501          138,501             
OTHER COMBAT OPS SUPPORT00                                                                                      
 PROGRAMS.......................         222,618          222,618          222,618          222,618             
JCS EXERCISES...................          29,265           29,265           41,265           41,265             
MANAGEMENT/OPERATIONAL1400                                                                                      
 HEADQUARTERS...................         106,417          106,417          106,417          106,417             
TACTICAL INTEL AND OTHER SPECIAL                                                                                
 ACTIVITIES.....................         180,564          180,564          180,564          180,564             
SPACE OPERATIONS     11500                                                                                      
LAUNCH FACILITIES...............         275,346          275,346          275,346          275,346             
LAUNCH VEHICLES.................         111,203           79,203          111,203          111,203             
SPACE CONTROL SYSTEMS...........         397,026          252,307          397,026          397,026             
SATELLITE SYSTEMS...............          37,146           37,146           37,146           37,146             
OTHER SPACE OPERATIONS..........          85,740           85,740           85,740           85,740             
BASE SUPPORT....................         348,385          348,385          346,385          346,385             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1:                                                                                 
       OPERATING FORCES.........       9,922,725       10,000,406        9,933,155        9,905,309             
                                                  ==============================================================
BUDGET ACTIVITY 2: MOBILIZATION                                                                                 
MOBILITY OPERATIONS  11950                                                                                      
AIRLIFT OPERATIONS..............       1,182,631        1,242,631        1,182,631        1,182,631             
AIRLIFT OPERATIONS C31..........          15,783           15,783           15,783           15,783             
MOBILIZATION PREPAREDNESS.......         175,871          175,871          175,871          175,871             
PAYMENTS TO TRANSPORTATION                                                                                      
 BUSINESS AREA..................       1,364,200        1,364,200        1,364,200        1,364,200             
BASE SUPPORT....................         569,236          569,236          564,236          564,236             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2:                                                                                 
       MOBILIZATION.............       3,307,721        3,367,721        3,302,721        3,302,721             
                                                  ==============================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
ACCESSION TRAINING   12350                                                                                      
OFFICER ACQUISITION.............          46,561           46,561           46,561           46,561             
RECRUIT TRAINING................           4,398            4,398            4,398            4,398             
RESERVE OFFICER TRAINING CORPS                                                                                  
 (ROTC).........................          37,529           37,529           37,529           37,529             
BASE SUPPORT (ACADEMIES ONLY)...          90,478           82,000           90,478           90,478             
BASIC SKILLS AND ADVANCED0                                                                                      
 TRAINING                                                                                                       
SPECIALIZED SKILL TRAINING......         200,365          200,365          191,565          191,565             
FLIGHT TRAINING.................         333,228          333,228          333,228          333,228             
PROFESSIONAL DEVELOPMENT50                                                                                      
 EDUCATION......................          80,042           77,000           79,042           80,042             
TRAINING SUPPORT................          68,293           68,293           68,293           68,293             
BASE SUPPORT (OTHER TRAINING)...         529,177          549,177          489,247          489,247             
RECRUITING, AND OTHER TRAINING                                                                                  
 AND EDUCATION                                                                                                  
RECRUITING AND ADVERTISING......          41,885           41,885           45,885           42,985             
EXAMINING.......................           3,435            3,435            3,435            3,435             
OFF DUTY AND VOLUNTARY EDUCATION          78,086           78,086           63,086           63,086             
CIVILIAN EDUCATION AND TRAINING.          77,856           77,856           74,906           74,906             
JUNIOR ROTC.....................          20,908           20,908           20,908           20,908             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3:                                                                                 
       TRAINING AND RECRUITING..       1,612,241        1,620,721        1,548,561        1,546,661             
                                                  ==============================================================
BUDGET ACTIVITY 4: ADMIN &                                                                                      
 SERVICEWIDE ACTIVITIES                                                                                         
LOGISTICS OPERATIONS 13300                                                                                      
LOGISTICS OPERATIONS............         884,155          884,155          884,155          896,355             
INVENTORIES.....................  ...............  ...............  ...............  ...............            
TECHNICAL SUPPORT ACTIVITIES....         349,512          349,512          349,512          349,512             
SERVICEWIDE TRANSPORTATION......         246,084          216,000          238,484          238,484             
BASE SUPPORT....................         741,932          741,932          725,732          725,732             
MWR/STARS & STRIPES.............  ...............  ...............  ...............  ...............            
SERVICEWIDE ACTIVITIES3550                                                                                      
ADMINISTRATION..................         112,608           87,608          112,608          100,108             
SERVICEWIDE COMMUNICATIONS......         357,116          357,116          339,516          349,516             
PERSONNEL PROGRAMS..............          75,366           75,366           75,366           75,366             
RESCUE AND RECOVERY SERVICES....          32,446           32,446           32,446           32,446             
SUBSISTENCE-IN-KIND.............          53,717           53,717           53,717           53,717             
ARMS CONTROL....................          32,620           32,620           28,620           28,620             
OTHER SERVICEWIDE ACTIVITIES....         684,814          644,907          682,914          689,814             
OTHER PERSONNEL SUPPORT.........          38,160           38,160           38,160           38,160             
CIVIL AIR PATROL CORPORATION....           4,481            8,281            8,281            8,281             
BASE SUPPORT....................         159,432          159,432          159,432          159,432             
SECURITY PROGRAMS    14100                                                                                      
SECURITY PROGRAMS...............         454,840          441,300          454,840          454,840             
SUPPORT TO OTHER NATIONS00                                                                                      
INTERNATIONAL SUPPORT...........           7,071            7,071            7,071            7,071             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4:                                                                                 
       ADMIN & SERVICEWIDE ACT..       4,234,354        4,129,623        4,190,854        4,207,454             
                                                  ==============================================================
CLASSIFIED PROGRAMS  14330                                                                                      
 UNDISTRIBUTED..................  ...............         -17,803          -42,300           12,300             
RENTAL PAYMENTS.................            -418             -418             -418             -418             
TRANSFERS TO DEFENSE CONVERSION                                                                                 
 & REINVESTMENT ACCOUNT.........  ...............          -3,000   ...............  ...............            
CIVILIAN PERS PAY RAISE &0                                                                                      
 LOCALITY PAY...................  ...............          81,400   ...............          13,600             
CIVILIAN PERSONNEL UNDERSTRENGTH  ...............        -166,600         -170,530         -113,700             
CONTRACTOR & CONSULTING SERVICES  ...............         -39,000   ...............         -19,500             
CIVILIAN SEPARATION INCENTIVES..  ...............  ...............          74,200            9,000             
INFORMATION TECHNOLOGY..........  ...............         -10,000   ...............         -50,000             
GENERAL REDUCTION, NATIONAL                                                                                     
 DEFENSE STOCKPILE FUND.........         -50,000          -50,000          -50,000          -50,000             
                                                  ==============================================================
      TOTAL, OPERATION AND                                                                                      
       MAINTENANCE, AIR FORCE...      19,026,623       18,913,050       18,786,243       18,763,427             
          (BY TRANSFER--NATIONAL                                                                                
           DEFENSE STOCKPILE                                                                                    
           FUND)................         (50,000)         (50,000)         (50,000)         (50,000)            
                                                  --------------------------------------------------------------
      TOTAL FUNDS AVAILABLE.....     (19,076,623)     (18,963,050)     (18,836,243)     (18,813,427)            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1--Operating Forces:
  10850 Increase B-52 acft to 74.................................60,100
    Depot level reparables......................................129,000
    B-1 conventional upgrades..................................(18,200)
  11000 AWACS training...........................................16,000
  11100 Upgrade storage tanks, Scott AFB............................734
    European drawdown/USAFE BOS...................................5,000
    Travel......................................................(5,000)
    Supply operations..........................................(10,000)
    F-16 DT&E/ICS/PGSE transfer................................(70,700)
    MacDill airfield operations...................................5,500
    Elec Svcs Upgrade, McClellan AFB..............................1,650
    RPM general reduction.....................................(100,000)
  11200 Cheyenne Mtn transfer to R&D...........................(41,500)
  11350 Joint exercises...........................................9,000
    COPE THUNDER exercise.........................................3,000
  11800 Travel..................................................(1,000)
    Supply operations...........................................(1,000)
Budget Activity 2--Mobilization:
  12200 Travel..................................................(2,000)
    Supply operations...........................................(3,000)
Budget Activity 3--Training and Recruiting:
  12650 Schoolhouse training....................................(8,800)
  12850 Travel..................................................(3,000)
    Supply operations...........................................(1,000)
    Non-combat base operations.................................(35,930)
  12950 Recruiting and advertising................................1,100
  13050 Voluntary education....................................(15,000)
  13100 Civilian education......................................(2,950)
Budget Activity 4--Admin & Servicewide Activities:
  13350 2.5 ton truck transfer to Procurement..................(10,800)
    CAMS/REMIS....................................................8,000
    TICARRS......................................................15,000
  13450 Servicewide Transportation..............................(1,300)
    MSC rate change.............................................(6,300)
  13500 Travel..................................................(2,200)
    Supply operations...........................................(3,300)
    Air National Guard transfer.................................(6,200)
    Regional centers transfer...................................(4,500)
  13600 Pentagon, MAJCOM Hq, Admin overhead....................(12,500)
  13650 Base communications infrastructure......................(7,600)
  13850 Arms control............................................(4,000)
  13900 Child development.........................................5,000
  14000 Civil Air Patrol..........................................3,800
  14330 Classified Programs......................................12,300
Other Adjustments:
  14370 Civ Pers pay raise & Locality Pay........................13,600
  14465 Civilian Personnel Understrength......................(113,700)
  14470 Contractor and consulting services.....................(19,500)
  14477 Workforce Restructure Act.................................9,000
  14480 Information technology (general reduction).............(50,000)
                                                             __________

      Total adjustments.......................................(263,196)


                             b-26 aircraft

       The Secretary of the Air Force is directed to transfer all 
     rights, title, and interest of the Air Force to one of the 
     World War II, Korean, or Vietnam era B-26 type aircraft at 
     the United States Air Force Museum, Wright-Patterson Air 
     Force Base, to the Louisiana National Guard, unless the Air 
     Force Museum or Secretary of the Air Force can execute the 
     direct exchange of a B-26 from the Chilean National Aviation 
     Museum to the Louisiana National Guard by January 15, 1995. 
     The Air Force Museum is directed to ensure that the Chilean 
     B-26 provided to the Louisiana National Guard is in display 
     condition. The conferees direct the Air Force to provide a 
     status report on the progress of this exchange to the 
     Committees on Appropriations within 35 days of the enactment 
     of this Act.


                    macdill afb airfield operations

       Based on a recent decision by the Office of the Secretary 
     of Defense that the Air Force budget shall fund the 
     operations of the MacDill AFB airfield to support CENTOM and 
     USSOCOM, the conferees agree to provide an additional $5.5 
     million for airfield operations at MacDill AFB.


               contractor operated parts stores (copars)

       The conferees direct the General Accounting Office (GAO) to 
     conduct a cost comparison study of the COPARS program and 
     alternative programs the Air Force is considering to replace 
     COPARS. The GAO shall report its findings to the Committees 
     on Appropriations and Armed Services of the House and Senate 
     no later than May 1, 1995. The conferees intend to work with 
     the GAO to determine the scope of this study.


                          idaho training range

       The conferees direct that no funds appropriated in this Act 
     be obligated for acquiring equipment for or operating the Air 
     Force's proposed Idaho training range until the Secretary of 
     Defense provides the Congressional defense committees with a 
     long-term land-use plan for the proposed expansion and 
     explains why existing facilities are unable to be used in 
     lieu of the new acquisitions. Also, the conferees direct that 
     the Secretaries of Defense and Interior jointly provide an 
     explanation of how the Engle Act applies to this land 
     transfer and what has been done to resolve the issue of 
     aboriginal rights to the land in question.


                           air force plant #3

       The conferees support section 2307 of the National Defense 
     Authorization Act for Fiscal Year 1995. This section makes up 
     to $10,000,000 available to proceed with the modification of 
     Air Force Plant #3, Tulsa, Oklahoma. The conferees direct the 
     Department of the Air Force to proceed with this authorized 
     modification with the conditions set forth in the 
     authorization act.


              environmental remediation at king salmon afs

       The conferees include new bill language providing the 
     Secretary of the Air Force authority to acquire additional 
     property adjacent to King Salmon Air Force Station only for 
     the purpose of completing an on-going environmental response 
     action in accordance with C.E.R.C.L.A. and the Air Force 
     Installation Restoration Program.

                Operation and Maintenance, Defense-Wide

       Amendment No. 25: Deletes Senate language ``(including 
     transfer of funds)''.
       Amendment No. 26: Appropriates $10,500,104,000 instead of 
     $8,945,266,000 as proposed by the House and $9,986,654,000 as 
     proposed by the Senate and deletes Senate language 
     transferring $100,000,000 from the National Defense Stockpile 
     Transaction Fund.
       Amendment No. 27: Inserts Senate language making available 
     $20,000,000 for repair and maintenance of federally owned 
     education facilities located on military installations.
       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                      Conference
                                                        Budget           House            Senate                
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE,                                                                                      
 DEFENSEWIDE AGENCIES                                                                                           
BUDGET ACTIVITY 1: OPERATING                                                                                    
 FORCES                                                                                                         
JOINT CHIEFS OF STAFF...........         400,752          361,552          389,452          369,452             
SPECIAL OPERATIONS COMMAND......         996,943        1,006,743          985,143          996,943             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1:                                                                                 
       OPERATING FORCES.........       1,397,695        1,368,295        1,374,595        1,386,395             
BUDGET ACTIVITY2: MOBILIZATION                                                                                  
DEFENSE LOGISTICS AGENCY........          67,800           67,800           67,800           67,800             
WASHINGTON HEADQUARTERS SERVICES          46,311           46,311           46,311           46,311             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2:                                                                                 
       MOBILIZATION.............         114,111          114,111          114,111          114,111             
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
DEFENSE ACQUISITION UNIVERSITY..         111,624           94,024          111,624           94,024             
DEFENSE BUSINESS MANAGEMENT                                                                                     
 UNIVERSITY.....................           3,947            3,947            3,947            3,947             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3:                                                                                 
       TRAINING AND RECRUITING..         115,624           97,971          115,571           97,971             
BUDGET ACTIVITY 4: ADMIN &                                                                                      
 SERVICEWIDE ACTIVITIES                                                                                         
AMERICAN FORCES INFORMATION                                                                                     
 SERVICE........................          83,183           74,183           83,183           83,183             
CORPORATE INFORMATION MANAGEMENT         130,318          130,318           86,818          130,318             
CLASSIFIED AND INTELLIGENCE.....       3,176,380        3,087,043        3,028,980        3,015,281             
DEFENSE CIVILIAN PERSONNEL                                                                                      
 MANAGEMENT SERVICE.............          36,479           29,479           36,479           36,479             
DEFENSE CONTRACT AUDIT AGENCY...         337,910          237,910          337,910          337,910             
DEFENSE INVESTIGATIVE SERVICE...         196,169          190,169          196,169          190,169             
DEFENSE LOGISTICS AGENCY........       1,233,209          815,709        1,187,809        1,183,609             
DEFENSE LEGAL SERVICES AGENCY...           7,142            7,142            7,142            7,142             
DEFENSE MAPPING AGENCY..........         698,357          694,357          698,357          696,357             
DEFENSE NUCLEAR AGENCY..........          88,693           88,693           88,693           88,693             
DEFENSE POW/MIA OFFICE..........          13,581           14,581           13,681           14,581             
FEDERAL ENERGY MANAGEMENT0                                                                                      
 PROGRAM........................         171,223          171,223          171,223          171,223             
DEPARTMENT OF DEFENSE DEPENDENTS                                                                                
 EDUCATION......................       1,189,102        1,189,102        1,249,102        1,243,102             
DEFENSE SUPPORT ACTIVITIES......          63,109           17,009           63,109           17,009             
DOCUMENT STORAGE................  ...............  ...............  ...............  ...............            
DEFENSE TECHNOLOGY SECURITY                                                                                     
 ADMINISTRATION.................          10,386           10,386           10,386           10,386             
JOINT CHIEFS OF STAFF...........         105,058          105,058          105,058          105,058             
OFFICE OF ECONOMIC ADJUSTMENT...          39,127   ...............          39,127           39,127             
OFFICE OF THE SECRETARY OF                                                                                      
 DEFENSE........................         376,243          433,943          520,494        1,050,043             
ON SITE INSPECTION AGENCY.......          99,947           99,947           92,947           92,947             
WASHINGTON HEADQUARTERS SERVICES         540,122          503,263          509,812          487,612             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4:                                                                                 
       ADMIN & SERVICEWIDE ACT..       8,595,738        7,899,515        8,526,379        9,000,229             
TRANSFERS TO DEFENSE CONVERSION                                                                                 
 & REINVESTMENT ACCOUNT.........  ...............        -368,800   ...............  ...............            
CIVILIAN PERS PAY RAISE &5                                                                                      
 LOCALITY PAY...................  ...............          54,600   ...............          20,200             
RENTAL PAYMENTS.................         -14,702          -14,702          -14,702          -14,702             
CIVILIAN PERSONNEL UNDERSTRENGTH  ...............         -73,500          -36,700          -28,600             
CONTRACTOR & CONSULTING SERVICES  ...............         -71,000   ...............         -35,500             
INFORMATION TECHNOLOGY..........  ...............         -76,224   ...............         -40,000             
PROJECT PEACE...................  ...............          15,000   ...............  ...............            
CIVILIAN SEPARATION INCENTIVES..  ...............  ...............           7,400   ...............            
TRANSFER FROM NATIONAL DEFENSE                                                                                  
 STOCKPILE FUND.................  ...............  ...............        -100,000   ...............            
                                                  ==============================================================
      TOTAL, OPERATION &45                                                                                      
       MAINTENANCE, DEFENSE-WIDE      10,208,413        8,945,265        9,986,654       10,500,104             
          (BY TRANSFER--NATIONAL                                                                                
           DEFENSE STOCKPILE                                                                                    
           FUND0................  ...............  ...............        (100,000)  ...............            
                                                  --------------------------------------------------------------
      TOTAL FUNDS AVAILABLE.....     (10,208,413)      (8,945,266)     (10,086,654)     (10,500,104)            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1--Operating Forces:
  14850 Mil-to-Mil Program.....................................(46,300)
    Partnership for Peace........................................30,000
    NORTHERN EDGE Exercise........................................5,000
  14900 OPTEMPO...................................................4,200
    Schoolhouse training........................................(4,200)
Budget Activity 3--Training & Recruiting:
  15250 Students, Courses & Demo Proj..........................(17,600)
Budget Activity 4--Admin & Servicewide Activities:
  15600 Classified & Intel Prog...............................(161,099)
  15750 Defense Investigative Service...........................(6,000)
  15800 PTAP.....................................................12,000
    Acquisition Tng & Field Offices............................(15,000)
    Commercial Catalog System.....................................1,000
    Def Contract Management Comd...............................(36,500)
    Travel......................................................(2,200)
    MSC rate change.............................................(8,900)
  15900 Travel..................................................(2,000)
  16020 Def POW/MIA Office........................................1,000
  16100 Family advocacy programs.................................54,000
  16150 Def Mpwr Data Ctr Transfer to OSD.......................(39,500
    DITRA Transfer to OSD.......................................(4,000)
    Management Systems Support Office...........................(2,600)
  16350 DMDC Transfer............................................39,500
    DITRA transfer................................................4,000
    Force restructuring studies & analyses......................(6,500)
    JRAP/JMRP....................................................17,000
    Nat Gas Study & Infrastructure Plng...........................2,200
    Strategic mobility enhancements..............................50,000
    Defense Conversion ``Other Initiatives''...................(39,000)
    PACOM Environmental compliance...............................20,000
    Military school maintenance..................................20,000
    Travel......................................................(4,000)
    Security locks...............................................20,000
    Anchorage fuel center...........................................500
    Real property maintenance backlog...........................500,000
    Medical supplies transport....................................5,000
    LEGACY.......................................................40,000
    Land Management Training Center...............................2,500
    Washington Square, Phila, renovation..........................2,600
  16400 Arms control............................................(7,000)
  16450 Admin & Central Svcs....................................(6,700)
    Counterproliferation Initiatives...........................(30,310)
    Travel......................................................(2,000)
    JEDMICS....................................................(13,500)
Other Adjustments:
  16495 Civ Pers pay raise & locality pay.........................9,800
    Worforce Restruct Act........................................10,400
  16560 Civilian personnel understrength.......................(28,600)
  16670 Contractor & consulting services.......................(35,500)
  16580 Information Technology (general reduction).............(50,000)
    Section 8107.................................................10,000
                                                             __________

      Total Adjustments.........................................291,691

                       real property maintenance

       The conferees agree to provide $500,000,000 to reduce the 
     military services' real property maintenance backlog. These 
     funds are to be allocated in the following manner, as 
     prescribed in Title VIII, Section 8158:

Army.......................................................$140,000,000
Navy........................................................140,000,000
Marine Corps.................................................80,000,000
Air Force...................................................140,000,000

       The conferees intend for these funds to be used first to 
     offset repair backlogs engendered by general reductions to 
     the Services' operation and maintenance accounts. Once this 
     is done, the conferees direct the Department to make reducing 
     the backlog of maintenance and repair of enlisted 
     servicemembers' barracks its top priority. It is 
     the conferees' intent that these funds shall be used for 
     repair and maintenance projects of the same type and under 
     the same dollar limitations as found in all other accounts in 
     title II of this Act.
       Of the funds provided for the Army, $1.4 million shall be 
     used for the Ft. Bragg Water Quality Compliance project.
       Of the funds provided for the Air Force, $2.2 million shall 
     be used to repair dormitories and runways at Cannon AFB.


             auditors and contract administration personnel

       The conferees agree that reductions proposed by the House 
     to reduce the number of auditors and contract administration 
     personnel assigned to the Defense Contract Audit Agency and 
     Defense Contract Management Command would have adversely 
     affected the operations of these two agencies. Thus, the 
     conferees agree to reduce the Defense Contract Management 
     Command's budget request by $36,500,000, as recommended by 
     the Senate. However, the conferees are convinced that 
     additional savings can be achieved, in light of the decline 
     in government procurement and implementation of DOD 
     acquisition reforms, by consolidating field offices and 
     reducing and frequent of visits to defense plants.
       The conferees agree with the House proposal that the 
     Department conduct a comprehensive manpower survey of 
     auditing and contract administration functions. Additionally, 
     the conferees direct the Defense Logistics Agency to 
     establish a task force to review Federal Acquisition 
     Regulation requirements levied on DCAA and DCMC and that the 
     DCAA reduce its incurred cost audit backlog to one year by 
     1997.


                   federal energy management program

       The conferees direct that within funds provided for the 
     Federal Energy Management Program, $2,500,000 be reserved for 
     energy improvements involving two wheel super high efficiency 
     desiccant dehumidification and cooling systems.


                                 legacy

       The conferees have provided $50,000,000 to continue the 
     Legacy program, an increase of $40,000,000 to the budget 
     request. The conferees direct the Department of Defense to 
     submit a report providing an allocation of the fiscal year 
     1995 funds by project, a short description of each effort, 
     and the projected total cost of each effort.
       The conferees further agree with the Senate view that 
     research and development efforts should be funded within the 
     research, development, test and evaluation accounts. The 
     conferees direct that no Legacy funds may be obligated for 
     technology projects.
       The conferees further restate the direction, previously 
     approved by Congress, that a resident coordinator for the 
     Pacific Environmental Leadership Effort (PELE), funded within 
     the Legacy program, should be selected and based in the 
     Pacific region.


                            land management

       The conferees direct that $2,500,000 of the funds available 
     for environmental compliance activities within the 
     ``Operation and Maintenance, Defensewide'' account shall be 
     made available only to establish a land management training 
     center as recommended by the Senate.


                         defense mapping agency

       The conferees direct that of the funds available $1,000,000 
     is only for surveying, data base compilation and maintenance 
     to support the digitization and improvement of navigational 
     charts for the Lower Mississippi River (Gulf of Mexico to 
     mile 223) to ensure strategic access.


                    medical supplies transportation

       The conferees agree to provide $5,000,000 in the Operation 
     and Maintenance, Defense-wide account to sustain the 
     Department's efforts to return excess military medical 
     supplies and equipment from Europe to the United States for 
     use by native Americans, local governments, and other 
     deserving groups.


                             project peace

       The conferees direct the Department to provide an 
     assessment to the congressional defense committees by 
     February 1, 1995 on the cost-effectiveness of scrapping and 
     recycling Soviet naval vessels and other equipment at U.S. 
     shipyards and facilities.

                Operation and Maintenance, Army Reserve

       Amendment No. 28: Appropriates $1,243,209,000 instead of 
     $1,240,109,000 as proposed by the House and $1,253,709,000 as 
     proposed by the Senate.
       Amendment No. 29: Inserts Senate language directing the 
     Undersecretary of Defense for policy to transmit the Rand 
     Corporation Study on The United States Role in Possible 
     Middle East Peace Settlements to the congressional defense, 
     intelligence and foreign affairs committees.
       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY                                                                                 
 RESERVE                                                                                                        
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
MISSION OPERATIONS   16850                                                                                      
BASE SUPPORT........................         306,084         308.084         303,784         305,084            
DEPOT MAINTENANCE...................          91,026          91,026          91,026          91,026            
RECRUITING AND RETENTION............          33,200          33,200          33,200          33,200            
TRAINING OPERATIONS.................         706,475         706,475         708,775         707,675            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1:                                                                                 
       OPERATING FORCES.............       1,136,785       1,138,785       1,136,785       1,136,985            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &                                                                                      
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
INFORMATION MANAGEMENT..............          25,338          15,338          25,338          25,338            
PUBLIC AFFAIRS......................             416             416             416             416            
PERSONNEL ADMINISTRATION............          58,106          58,106          58,106          58,106            
STAFF MANAGEMENT....................          33,099          33,099          33,099          33,099            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4:                                                                                 
       ADMIN & SERVICEWIDE ACT......         116,959         106,959         116,959         116,959            
                                                     ===========================================================
RENTAL PAYMENTS.....................             -35             -35             -35             -35            
CIVILIAN PERS PAY RAISE & LOCALITY                                                                              
 PAY................................  ..............           4,700  ..............           2,100            
CIVILIAN PERSONNEL UNDERSTRENGTH....  ..............         -10,300  ..............         -12,800            
                                                     -----------------------------------------------------------
      TOTAL, OPERATION AND                                                                                      
       MAINTENANCE, ARMY RESERVE....       1,253,709       1,240,109       1,253,709       1,243,209            
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  16900 Reserve Ctrs Repairs......................................1,000
  RPM for Res Ctrs, Cambria & Indiana Cos, PA.......................300
  Reserve understrength.........................................(2,300)
  17050 Professtional military training...........................1,200
Other Adjustments:
  17550 Civ Pers pay raise & Locality Pay.........................1,000
  Workforce Restruct Act..........................................1,100
  17570 Civ Pers understrength.................................(12,800)
                                                             __________

      Total adjustments........................................(10,500)

                Operation and Maintenance, Navy Reserve

       Amendment No. 30: Appropriates $831,219,000 instead of 
     $834,119,000 as proposed by the House and $827,819,000 as 
     proposed by the Senate.
       Amendment No. 31: Deletes House language prohibiting 
     obligation of $6,300,000 until authorized.
       The conference agreement is as follows:


----------------------------------------------------------------------------------------------------------------
                                                          Budget          House           Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, NAVY                                                                                 
 RESERVE                                                                                                        
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
RESERVE AIR OPERATIONS7800                                                                                      
MISSION AND OTHER FLIGHT OPERATIONS.         275,287         275,287         275,287         275,287            
FLEET AIR TRAINING..................              --              --              --              --            
INTERMEDIATE MAINTENANCE............          20,298          20,298          20,298          20,298            
AIR OPERATION AND SAFETY SUPPORT....           1,681           1,681           1,681           1,681            
AIRCRAFT DEPOT MAINTENANCE..........          90,542          90,542          90,542          90,542            
AIRCRAFT DEPOT OPS SUPPORT..........             521             521             521             521            
BASE SUPPORT........................         134,281         135,281         134,281         133,281            
RESERVE SHIP OPERATIONS225                                                                                      
MISSION AND OTHER SHIP OPERATIONS...          45,948          45,948          50,948          52,948            
SHIP OPERATIONAL SUPPORT AND                                                                                    
 TRAINING...........................             658             658             658             658            
INTERMEDIATE MAINTENANCE............          18,675          18,675          18,675          18,675            
SHIP DEPOT MAINTENANCE..............          52,712          52,712          52,712          52,712            
SHIP DEPOT OPERATIONS SUPPORT.......           1,570           1,570           1,570           1,570            
RESERVE COMBAT OPERATIONS SUPPORT                                                                               
COMBAT COMMUNICATIONS...............             648             648             648             648            
COMBAT SUPPORT FORCES...............          27,274          27,274          27,274          27,274            
BASE SUPPORT........................          57,836          58,836          57,836          56,836            
RESERVE WEAPONS SUPPORT600                                                                                      
WEAPONS MAINTENANCE.................          10,572          10,572          10,572          10,572            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1:                                                                                 
       OPERATING FORCES.............         738,503         740,503         743,503         743,503            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &                                                                                      
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
ADMINISTRATION......................           8,014           8,014           7,014           7,014            
CIVILIAN MANPOWER AND PERSONNEL                                                                                 
 MANAGEMENT.........................           2,995           2,995           2,995           2,995            
MILITARY MANPOWER AND PERSONNEL                                                                                 
 MANAGEMENT.........................          30,493          33,493          28,493          30,493            
OTHER PERSONNEL SUPPORT.............           2,725           2,725           2,725           2,725            
SERVICEWIDE COMMUNICATIONS..........          18,379          18,379          18,379          18,379            
BASE SUPPORT........................          23,748          23,748          21,748          22,748            
COMBAT/WEAPONS SYSTEMS..............           2,962           2,962           2,962           2,962            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4:                                                                                 
       ADMIN & SERVICEWIDE ACT......          89,316          92,316          84,316          87,316            
                                                     ===========================================================
CIVILIAN PERS PAY RAISE & LOCALITY                                                                              
 PAY................................              --           1,300              --             400            
                                                     -----------------------------------------------------------
      TOTAL, OPERATION AND                                                                                      
       MAINTENANCE, NAVY RESERVE....         827,819         834,119         827,819         831,219            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  18150 Administrative expenses.................................(1,000)
  18250 Navy LSTS.................................................7,000
  18550 Administrative expenses.................................(1,000)
Budget Activity 4: Admin & Servicewide Activities
  18850 Administrative expenses.................................(1,000)
Other Adjustments:
  19100 Administrative expenses.................................(1,000)
  19250 Civ Pers pay raise & Locality Pay...........................300
  Workforce Restructure Act.........................................100
      Total adjustments...........................................3,400

            Operation and Maintenance, Marine Corps Reserve

       Amendment No. 32: Appropriates $81,862,000 instead of 
     $83,542,000 as proposed by the House and $80,562,000 as 
     proposed by the Senate.
       Amendment No. 33: Deletes House language prohibiting 
     obligation of $2,080,000 until authorized.
       The conference agreement is as follows:


----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, MARINE                                                                               
 CORPS RESERVE                                                                                                  
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
MISSION FORCES       19500                                                                                      
TRAINING............................          12,301          12,301          12,301          12,301            
OPERATING FORCES....................          21,401          21,401          21,401          21,401            
BASE SUPPORT........................          18,275          20,275          17,375          18,375            
DEPOT MAINTENANCE...................           2,812           2,812           2,812           2,812            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1:                                                                                 
       OPERATING FORCES.............          54,789          56,789          53,889          54,889            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN. &                                                                                     
 SERVICEWIDE ACTIVITIES                                                                                         
AMMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
RECRUITING AND ADVERTISING..........           7,388           7,388           7,388           7,388            
SPECIAL SUPPORT.....................           6,462           6,462           6,462           6,462            
SERVICEWIDE TRANSPORTATION..........           4,936           4,936           4,936           4,936            
ADMINISTRATION......................           5,493           5,493           5,493           5,493            
BASE SUPPORT........................           2,394           2,394           2,394           2,394            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4:                                                                                 
       ADMIN & SERVICEWIDE ACT......          26,673          26,673          26,673          26,673            
                                                     ===========================================================
CIVILIAN PERS PAY RAISE & LOCALITY                                                                              
 PAY................................  ..............              80  ..............             300            
                                                     -----------------------------------------------------------
      TOTAL, OPERATION AND MAINT,                                                                               
       MARINE CORPS RESERVE.........          81,462          83,542          80,562          81,862            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  19650 Reserve Ctrs Repairs......................................1,000
  Reserve understrength...........................................(900)
Other Adjustments:
  20200 Civ Pers pay raise & Locality Pay...........................100
  Workforce Restruct Act............................................200
                                                               ________

      Total adjustments.............................................400

                     marine corps reserve aviation

       The conferees agree with the Senate's concerns that Marine 
     expeditionary forces may not have enough dedicated airborne 
     power. In addition to the reporting requirement expressed in 
     the Senate report, the conferees direct that the deactivation 
     of the two Marine Reserve jet squadrons be delayed until the 
     formal review and the requested report is received by the 
     Committees on Appropriations and Armed Services of the House 
     and Senate.

              Operation and Maintenance, Air Force Reserve

       Amendment No. 34: Appropriates $1,471,505,000 instead of 
     $1,486,805,000 as proposed by the House and $1,455,872,000 as 
     proposed by the Senate.
       Amendment No. 35: Deletes House language prohibiting 
     obligation of $5,473,000 until authorized.
       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                        Budget           House            Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, AIR                                                                                  
 FORCE RESERVE                                                                                                  
BUDGET ACTIVITY 1: OPERATING                                                                                    
 FORCES                                                                                                         
AIR OPERATIONS       20450                                                                                      
AIRCRAFT OPERATIONS.............       1,081,423        1,093,438        1,081,423        1,093,438             
MISSION SUPPORT OPERATIONS......          40,666           40,666           43,008           40,666             
BASE SUPPORT....................         294,464          295,464          284,664          284,664             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1:                                                                                 
       OPERATING FORCES.........       1,416,553        1,429,568        1,409,095        1,418,768             
                                                  ==============================================================
BUDGET ACTIVITY 4: ADMIN &                                                                                      
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
ADMINISTRATION..................          26,085           26,085           26,085           26,085             
MILITARY MANPOWER AND PERSONNEL                                                                                 
 MANAGEMENT.....................          22,070           22,070           22,070           22,070             
RECRUITING AND ADVERTISING......           7,844            7,844            7,844            7,844             
OTHER PERSONNEL SUPPORT.........           5,762            5,762            5,762            5,762             
AUDIOVISUAL.....................             676              676              676              676             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4:                                                                                 
       ADMIN & SERVICEWIDE ACT..          62,437           62,437           62,437           62,437             
                                                  ==============================================================
CIVILIAN PERS PAY RAISE &0                                                                                      
 LOCALITY PAY...................  ...............           8,800   ...............           3,300             
CIVILIAN PERSONNEL UNDERSTRENGTH  ...............         -14,000          -15,660          -13,000             
                                                  ==============================================================
      TOTAL, OPERATION AND                                                                                      
       MAINTENANCE, AIR FORCE                                                                                   
       RESERVE..................       1,478,990        1,486,805        1,455,872        1,471,505             
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1--Operating Forces:
  20500 C-130s Operational support, Ohio.........................10,000
    WC-130 Weather Recon..........................................2,015
  20600 Reserve understrength...................................(9,400)
    Travel........................................................(400)
Other Adjustments:
  21150 Civ Pers pay raise & Locality Pay.........................1,900
    Workforce Restruct Act........................................1,400
  21160 Civ Pers Understrength.................................(13,000)
                                                             __________

      Total adjustments.........................................(7,485)

             Operation and Maintenance, Army National Guard

       Amendment No. 36: Appropriates $2,440,288,000 instead of 
     $2,498,868,000 as proposed by the House and $2,442,135,000 as 
     proposed by the Senate.
       Amendment No. 37: Restores House language earmarking 
     $10,000,000 for a National Guard Outreach Program in the Los 
     Angeles School District and deletes House language 
     prohibiting obligation of $50,253,000 until authorized.
       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                        Budget           House            Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY                                                                                 
 NATIONAL GUARD                                                                                                 
BUDGET ACTIVITY 1: OPERATING                                                                                    
 FORCES                                                                                                         
MISSION OPERATIONS   21400                                                                                      
TRAINING OPERATIONS.............       1,799,704        1,832,804        1,805,171        1,789,654             
RECRUITING AND RETENTION........          19,316           19,316           19,316           19,316             
MEDICAL SUPPORT.................          23,070           23,070           28,070           28,070             
DEPOT MAINTENANCE    21600               113,557          113,557          113,557          113,557             
BASE SUPPORT....................         298,661          302,681          290,161          292,931             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1:                                                                                 
       OPERATING FORCES.........       2,254,308        2,291,428        2,256,275        2,243,528             
                                                  ==============================================================
BUDGET ACTIVITY 4: ADMIN &                                                                                      
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
INFORMATION MANAGEMENT..........          62,182           66,682           58,382           66,682             
PUBLIC AFFAIRS..................           1,717            1,717            1,717            1,717             
PERSONNEL ADMINISTRATION........          84,197           84,197           84,197           84,197             
STAFF MANAGEMENT................          44,744           41,644           41,564           38,464             
                                                  --------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4:                                                                                 
       ADMIN & SERVICEWIDE ACT..         192,840          194,240          185,860          191,060             
                                                  ==============================================================
CIVILIAN PERS PAY RAISE &0                                                                                      
 LOCALITY PAY...................  ...............          13,200   ...............           5,700             
                                                  ==============================================================
      TOTAL, OPERATION AND                                                                                      
       MAINT, ARMY NATIONAL                                                                                     
       GUARD....................       2,447,148        2,498,868        2,442,135        2,440,288             
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1--Operating Forces:
  21450 LA School District Youth Prog............................10,000
    Organizational Clothing & Equip..............................12,550
    Civilian personnel underexecution..........................(32,600)
  21550 Guard care................................................5,000
  21650 Calumet, MI, Armory repairs.................................120
    Armories Repairs: Valparaiso, Gary & Hammond, IN................400
    28th Div Training Range.......................................1,500
    Administrative expenses.....................................(1,450)
    Aviation training and facilities..............................1,900
    California armories repairs...................................1,200
    National Guard understrength................................(1,900)
    Travel......................................................(7,500)
Budget Activity 4--Admin & Servicewide Activities:
  21850 Information Technology..................................(3,000)
    Distance learning.............................................7,500
  22000 National Guard Bureau...................................(3,100)
    Staff management............................................(3,180)
Other Adjustments:
  22100 Civ Pers pay raise & Locality Pay.........................2,900
    Workforce Restructure Act.....................................2,800
      Total adjustments.........................................(6,860)

             OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

       Amendment No. 38: Appropriates $2,772,928,000 instead of 
     $2,797,978,000 as proposed by the House and $2,780,178,000 as 
     proposed by the Senate.
       Amendment No. 39: Earmarks $9,200,000 as proposed by the 
     Senate instead of $1,500,000 as proposed by the House for C-
     130 operational aircraft of the 159th Air National Guard 
     Fighter Group.
       Amendment No. 40: Inserts Senate language to include the 
     146th Airlift Wing and the South Carolina Air National Guard 
     169th Fighter Group unit.
       Amendment No. 41: Deletes House language prohibiting 
     obligation of $17,800,000 until authorized.
       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
   OPERATION AND MAINTENANCE, AIR                                                                               
           NATIONAL GUARD                                                                                       
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
AIR OPERATIONS         22350                                                                                    
AIRCRAFT OPERATIONS.................       2,072,651       2,074,151       2,102,751       2,102,751            
MISSION SUPPORT OPERATIONS..........         352,283         352,283         352,283         352,283            
BASE SUPPORT........................         324,292         326,292         302,242         302,242            
DEPOT MAINTENANCE...................          22,781          22,781          22,781          22,781            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1:                                                                                 
       OPERATING FORCES.............       2,772,007       2,775,507       2,780,057       2,780,057            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &50                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
SERVICEWIDE ACTIVITIES 22700                                                                                    
ADMINISTRATION......................           3,338           3,338           3,338           3,338            
RECRUITING AND ADVERTISING..........           4,833           4,833           4,833           4,833            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4:                                                                                 
       ADMIN & SERVICEWIDE ACT......           8,171           8,171           8,171           8,171            
                                                     ===========================================================
CIVILIAN PERS PAY RAISE & LOCALITY                                                                              
 PAY................................  ..............          14,300  ..............           5,500            
CIVILIAN PERSONNEL UNDERSTRENGTH....  ..............  ..............          -8,050         -20,800            
                                                     ===========================================================
      TOTAL, OPERATION AND MAINT,                                                                               
       AIR NATIONAL GUARD...........       2,780,178       2,797,978       2,780,178       2,772,928            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1--Operating Forces:
  22400 C-130H Operational Spt, 159th FWG.........................1,500
    176th Airlift Squadron........................................5,000
    C-130s Operational support...................................23,600
  22500 Administrative expenses................................(16,950)
    Guard understrength.........................................(4,600)
    Travel........................................................(500)
Other Adjustments:
  22885 Civ Pers Pay Raise & Locality Pay.........................3,300
    Workforce Restructure Act.....................................2,200
    22887 Civilian personnel underexecution....................(20,800)
                                                             __________

      Total adjustments.........................................(7,250)


               contracted flight training service (cfts)

       The conferees are aware of the savings associated with 
     Contracted Flight Training Service (CFTS) for the Air Force 
     and the Air National Guard. Accordingly, the Air Force and 
     the Air National Guard are directed to include funding for 
     the CFTS in the fiscal year 1996 budget request. In addition, 
     the conferees discourage the Department from any attempts to 
     reprogram fiscal year 1995 funds from CFTS.


             c-130 operations/east coast tanker task force

       The conferees agree to provide $21,600,000 to continue 
     certain Air Guard C-130 aircraft operations. These funds will 
     be used to sustain current aircraft operations in Louisiana 
     and South Carolina ($1,500,000 for each unit); support an 
     increase in aircraft assigned to Air Guard units located at 
     Nashville, TN ($4,300,000), Martinsburg, WV ($5,000,000), and 
     Louisville, Kentucky ($4,300,000); and maintain C-130 
     operating levels of the 146th Airlift Wing in California 
     ($5,000,000).
       The conferees also provide $2,000,000 to begin ramp-up 
     activities connected with the transfer of the East Coast 
     Tanker Task Force mission from the Air Force to the Air 
     National Guard in fiscal year 1996. The conferees authorize 
     50 additional military technicians for fiscal year 1995 in 
     support of activities associated with the Air National Guard 
     assuming this mission.


                   environmental restoration, defense

       Amendment No. 42: Appropriates $1,780,200,000 instead of 
     $1,880,200,000 as proposed by the House and $2,034,075,000 as 
     proposed by the Senate.


        SUPPORT FOR INTERNATIONAL SPORTING COMPETITIONS, DEFENSE

       Amendment No. 43: Deletes House language making funds 
     available for Support for International Sporting 
     Competitions, Defense, and inserts and amends Senate language 
     appropriating $14,400,000 for the Summer Olympics and 
     $3,000,000 for the Special Olympics.
       In addition, the conferees agree to House report language 
     directing the Department to include in the fiscal year 1996 
     budget request an exhibit showing obligations and 
     expenditures for these games. The conferees also agree to 
     insert Section 8104 which extends the availability of prior 
     year funds.

                        Humanitarian Assistance

       Amendment No. 44: Appropriates $65,000,000 instead of 
     $60,000,000 as proposed by the House and $71,900,000 as 
     proposed by the Senate.
       Amendment No. 45: Earmarks $10,000,000 as proposed by the 
     Senate instead of $12,000,000 as proposed by the House for 
     clearing of landmines for humanitarian purposes.

                  Former Soviet Union Threat Reduction

       Amendment No. 46: Appropriates $400,000,000 for Former 
     Soviet Union Threat Reduction as proposed by the Senate and 
     amends Senate language concerning demilitarization and 
     protection of weapons, components, technology, and production 
     infrastructure.

                   Real Property Maintenance, Defense

       Amendment No. 47: Deletes Senate language making 
     $500,000,000 available for obligation until September 30, 
     1996.

                    INFORMATION TECHNOLOGY RESOURCES                    
                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                                              Conference
   Appropriations and programs      House bill  Senate bill   agreement 
------------------------------------------------------------------------
O&M, Army:                                                              
  SBIS...........................     -23,899            0       +1,000 
  Standard Theater C2 System.....     -14,399            0            0 
  MEPCOM Integrated Resource                                            
   System........................      -5,675            0            0 
  Personnel Enterprise System....      -4,966            0            0 
  General Reduction..............     -89,804      -30,000      -50,000 
  Keyboard Proficiency...........      +5,000            0            0 
                                  --------------------------------------
      Total, Army O&M............    -133,743      -30,000      -49,000 
                                  ======================================
O&M, Navy:                                                              
  EMPRS..........................     -11,229            0            0 
  Excessive Budget Growth........     -36,000            0            0 
  General Reduction..............     -91,514      -30,000      -50,000 
  Keyboard Proficiency...........      +5,000            0            0 
  Section 8107...................           0            0       +4,500 
                                  --------------------------------------
      Total, Navy O&M............    -133,743      -30,000      -45,500 
                                  ======================================
O&M, Air Force:                                                         
  LAN Management.................     -33,529            0            0 
  CAMS/REMIS.....................      +5,000       +5,000       +8,000 
  TICARRS........................     +15,000      +15,000      +15,000 
  ARMS...........................      -1,471            0            0 
  Keyboard Proficiency...........      +5,000            0            0 
  General Reduction..............           0      -30,000      -50,000 
                                  --------------------------------------
      Total, Air Force O&M.......     -10,000      -10,000      -27,000 
                                  ======================================
O&M, Defense-Wide:                                                      
  General Reduction..............     -50,000      -30,000      -50,000 
  DISA use of SBIS contract......     -1,9424            0            0 
  Transfer AJPO to RDT&E.........     -10,800            0      -10,800 
  JEDMICS........................     -13,500      -13,500      -13,500 
  Section 8107...................           0            0      +10,000 
                                  --------------------------------------
      Total, Defense-wide O&M....     -76,224      -43,500      -64,300 
                                  ======================================
O&M, Army Reserve:                                                      
  PERMS..........................      -3,000            0            0 
  General Reduction, not RCAS....      -7,000            0            0 
                                  --------------------------------------
      Total, O&M Army Reserve....     -10,000            0            0 
                                  ======================================
O&M, Army National Guard:                                               
  RCAS...........................      -3,000            0       -3,000 
  Distance Learning..............      +7,500       +6,214       +7,500 
                                  --------------------------------------
      Total, O&M Army National                                          
       Guard.....................      +4,500       +6,214       +4,500 
                                  ======================================
O&M, Navy Reserve:                                                      
  Naval Reserve Information                                             
   Technology Modernization......      +3,000            0            0 
                                  ======================================
      Total, DOD O&M.............    -356,210     -107,286     -181,300 
                                  ======================================
Other Procurement, Army:                                                
  Information Systems............     -11,000       +6,200         +500 
  Local Area Network.............           0            0       +5,700 
  STAMIS Tactical computers......     -21,850            0            0 
  ADPE...........................     -56,032      -12,000      -38,054 
    SBIS.........................    (-35,254)           0     (-35,254)
    General Reduction............    (-15,000)           0            0 
    Strategic Logistics System...     (-2,800)           0      (-2,800)
    ADPE, ARMS...................     (-2,978)           0            0 
  RCAS...........................     +66,900            0      +46,900 
                                  --------------------------------------
      Total, Army other                                                 
       procurement...............     -21,892       -5,800      +15,046 
                                  ======================================
Other Procurement, Navy:                                                
  EMPRS..........................     -31,800            0            0 
                                  ======================================
Other Procurement, Air Force:                                           
  ADPE...........................      -4,189       +4,500       +4,500 
  AFC2S..........................      -4,200       -4,189       -4,189 
  Base Level Data Automation.....           0       -3,000       -3,000 
                                  --------------------------------------
      Total, Air Force other                                            
       procurement...............      -8,389       -2,689       -2,689 
                                  ======================================
Procurement, Defense Agencies:                                          
  Major Equipment, OSD/WHS.......     +21,500      -13,500      +14,500 
    JEDMICS......................    (-13,500)    (-13,500)    (-13,500)
    Naval Reserve Information                                           
     Technology Modernization....    (+10,000)          (0)          (0)
    Automatic Document Conversion                                       
     System......................    (+30,000)          (0)    (+20,000)
    AIS Equipment................     (-5,000)          (0)          (0)
    Section 8107.................          (0)          (0)     (+8,000)
  High Performance Computer                                             
   Modernization.................    +130,000            0      +90,000 
                                  --------------------------------------
      Total, Defense Agencies                                           
       procurement...............    +151,500      -13,500     +104,500 
                                  ======================================
      Total, DOD IT procurement..     +89,329      -21,989     +116,847 
                                  ======================================
      Grand total, all                                                  
       appropriations............    -266,881     -129,275      -64,443 
------------------------------------------------------------------------

                 o&m information technology reductions

       The conferees agree to $50,000,000 in general reductions in 
     each of the services and Defense-Wide accounts. These 
     reductions shall be allocated at the discretion of each of 
     the services' and Defense-Wide designated resource manager 
     only within automatic data processing accounts, and shall not 
     be allocated to any congressional interest item.


                           distance learning

       The conferees provide $7,500,000 for the initiation of a 
     distance learning regional training network demonstration 
     project. The conferees direct that this funding is provided 
     only for a distance learning regional training demonstration 
     project for Pennsylvania, West Virginia, Virginia, Maryland, 
     and the District of Columbia. The Chief, National Guard 
     Bureau will be the executive agent for executing this 
     project, in coordination with the Chief of Army Reserve, and 
     the Defense Information Systems Agency (DISA). The Executive 
     Agent is required to report on the status of the project to 
     the Congress by April 1, 1995. No reprogramming of these 
     funds shall be done without prior approval of the Congress. 
     The conferees are also aware of the Advanced Technology 
     Regional Battle Training Center initiative for the Reserve 
     Components and encourage the Army to include this program in 
     its fiscal year 1996 budget submittal.


                   sustaining base information system

       The conferees do not agree to the O&M funding reduction 
     recommended by the House, but do agree to deny funds for SBIS 
     procurement in fiscal year 1995. The conferees do not agree 
     to bill language proposed by the House requiring completion 
     of a comprehensive functional description for the system. The 
     conferees instead direct that the Assistant Secretary of 
     Defense for Command, Control, Communications, and 
     Intelligence submit a report to the Congressional defense 
     committees by April 1, 1995 which certifies that the Army has 
     a detailed definition of the total program, the associated 
     life cycle cost, a system of metrics in place to ensure that 
     SBIS program cost objectives are attained, and a current 
     return-on-investment analysis for the life cycle of the 
     program.


                     automated document conversion

       The conferees agree to the House proposal on automated 
     document conversions and have provided $20,000,000. The 
     conferees agree that DoD should submit a master plan as 
     proposed by the House, to be submitted by April 1, 1995. The 
     conferees also understand that there are many sites which 
     have the need to convert logistics, acquisition, education 
     and training, and personnel documents. The conferees 
     encourage DoD to share the results of the ADCS-JEDMICS 
     integration project with other DoD communities which have a 
     need for automated document conversion. The conferees do not 
     intend that DoD withhold obligation of the $20,000,000 
     provided in this Act until the master plan is submitted. The 
     conferees direct that the Defense Department establish 
     standards for future automated document conversion systems 
     and processes.


                high performance computing modernization

       The conferees agree to provide $163,048,000 for high 
     performance computing modernization, of which $73,048,000 is 
     in the RDT&E, Defensewide appropriation and $90,000,000 is in 
     the Procurement, Defensewide appropriation. The conferees 
     support expansion of the Department's High Performance 
     Computing Modernization Plan. The conferees recommend a 
     general provision requiring only a modest program expansion 
     during fiscal year 1995. The conferees also applaud 
     completion of the Updated High Performance Computing 
     Modernization Plan, but wish to express concern over an 
     important issue. The plan measures system performance using 
     theoretical peak speed. The Department is directed to also 
     include actual, deliverable, and sustained performance in 
     evaluating competing systems.


      defense-wide and naval information technology modernization

       The conferees have provided $22,500,000 in additional funds 
     in the Navy Operation and Maintenance and Defense-Wide 
     procurement accounts for information technology modernization 
     and other improvements, and for Naval and DoD activities as 
     described in section 8107. The conferees adopted House 
     language regarding the development and maintenance of the 
     Naval active and reserve single Source Data Collection system 
     except that the Naval Bureau of Personnel shall remain the 
     Program Manager for definition of functional requirement and 
     priorities. To meet an important Department requirement and 
     request, the conferees have provided additional funding for 
     the establishment of a continuity of operations (COOP) center 
     to avert the disruption of operations and provide for the 
     preservation of computer data for the DoD data center 
     consolidation and megacenter initiative. The conferees direct 
     DoD to establish this center in fiscal year 1995. Of the 
     funds appropriated under section 8107 for these activities, 
     the conferees have provided $8,000,000 in Defense-Wide 
     procurement and $5,000,000 in Defense-Wide operation and 
     maintenance funds for the establishment of the COOP center. 
     The remaining $5,000,000 in Defense-Wide operation and 
     maintenance funding under section 8107 shall be used for DoD 
     requirements for central design activity software and 
     development for DoD finance and accounting activities as well 
     as occupational conversion, training, and transition 
     assistance for DoD and Naval activities at the Naval Support 
     Activity and F. Edward Herbert Complex, New Orleans. These 
     funds should also be used to initiate a prototype for using 
     National Finance Center cross servicing functions for some 
     financial management and personnel services at DoD as 
     recommended by Military Department Comptrollers early this 
     year. The $4,500,000 in Navy operation and maintenance funds 
     shall also be used at the Naval and DoD facilities and 
     activities just described above and as directed in section 
     8107 except that $2,000,000 is only for single Source Data 
     Collection system activities. The conferees concur with the 
     House report direction, pages 59-60, regarding CIRIMS and 
     certain reserve personnel, training and financial management 
     systems remaining under the operational control of Naval 
     Reserve activities. The conferees expect this direction to be 
     followed.
       The conferees have not included language restricting 
     certain DoD information technology, central design activity, 
     data processing, and personnel function consolidation or 
     realignment plans pending cost justification and mission 
     impact reports from DoD. The conferees believe some serious 
     efforts are being made to weigh future information 
     technology, personnel or DoD function consolidations in terms 
     of operational readiness, customer satisfaction, and which 
     plans are the most cost effective from a business standpoint. 
     The conferees will carefully monitor this situation in the 
     event that such issues need to be addressed next year.

                         TITLE III--PROCUREMENT

                       Aircraft Procurement, Army

       Amendment No. 48: Appropriates $1,063,164,000 for Aircraft 
     Procurement, Army, instead of $1,264,198,000 as proposed by 
     the House and $1,062,581,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, ARMY                                                                                      
ARL (TIARA).....................          39,200          39,200          39,200  ..............  ..............
GUARDRAIL COMMON SENSOR (TIARA).           4,991           4,991           4,991  ..............  ..............
C-XX AIRCRAFT...................  ..............           4,000          23,000               2          11,000
AH-64 ATTACK HELICOPTER (APACHE)           5,611           5,611          77,611               6          77,611
UH-60 BLACKHAWK (MYP) (AP-CY)...         140,200         140,200         140,200  ..............          70,000
GUARDRAIL MODS (TIARA)..........          26,938          26,938          26,938  ..............  ..............
LONGBOW.........................         117,588         117,588          45,588  ..............          80,000
KIOWA WARRIOR...................         111,767         110,467          98,767  ..............          98,767
AHIP............................  ..............         225,000  ..............              17         120,000
SPARES AND REPAIR PARTS.........          47,242          47,242          47,242  ..............          47,242
AIRCRAFT SURVIVABILITY EQUIPMENT          29,583          29,000          44,583  ..............          44,583
----------------------------------------------------------------------------------------------------------------

                             army aviation

       The Senate report expressed concern with the lack of 
     effective Army management of its aviation investment 
     programs, noting the apparent absence of Army leadership 
     support for these programs and an unwillingness to invest 
     sufficient resources to provide for efficient transition 
     between production of on-going and follow-on programs. Noting 
     that the Army was apparently unable to resolve this problem, 
     the Senate directed the Army to recompete the Comanche and 
     Apache Longbow programs to lower long term costs, and allow 
     Army funding to match its plans. The House did not address 
     the issue.
       The conferees share the concerns of the Senate regarding 
     the unwillingness of the Army to provide sufficient 
     investment funding to support what the Army stipulates are 
     its highest priorities. This concern is underscored by the 
     Army`s plans to cancel the UH-60 program and to underfund the 
     FY 1996 requirement for Comanche. However, the conferees have 
     reserved judgment on the Senate's approach. The Army believes 
     it can bridge the self-imposed production gaps within the 
     funding it has available. The conferees have agreed to let 
     the Army demonstrate this capability. Therefore, the Senate 
     recedes from its direction to mandate a recompetition.
       The conferees remain concerned with the long term viability 
     of the helicopter industrial base, given the reduced number 
     of production programs. the conferees urge the Army to work 
     with the private sector to determine how to preserve needed 
     industrial capability, while reducing the overhead cost of 
     duplicative organizations and infrastructure. The 
     consolidation of the tactical fixed-wing aircraft and space 
     launch industrial bases may serve as a useful model for the 
     changes that are inevitable in the rotary wing sector.


                        spares and repair parts

       The conference agreement includes $47,242,000 for spares 
     and repair parts as proposed by the House instead of 
     $47,742,000 as proposed by the Senate. The conferees agree 
     that within the funds provided, $500,000 shall be used for 
     procurement and fielding of one CH-47 maintenance tool and 
     equipment set for the Army National Guard.
       Amendment No. 49: Inserts and amends Senate proviso, 
     requiring the Secretary of the Army to report on the concept, 
     organization, requirements, and mission need documents for 
     the High Capacity Air Ambulance, utilizing low cost fixed 
     wing aircraft no later than April 15, 1995.


                       missile procurement, army

       Amendment No. 50: Appropriates $813,795,000 for Missile 
     Procurement, Army instead of $728,095,000 as proposed by the 
     House and $707,895,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
MISSILE PROCUREMENT, ARMY:                                                                                      
    STINGER SYSTEM SUMMARY......  ..............           5,000  ..............  ..............  ..............
    TOW 2 SYSTEM SUMMARY........          27,808          37,508          27,808           1,000          37,508
    MLRS ROCKET.................  ..............          24,400  ..............  ..............          26,100
    MLRS LAUNCHER...............          60,123          60,123          44,023  ..............         144,123
    SADARM......................  ..............  ..............          30,000  ..............  ..............
    STINGER MODS................  ..............  ..............           5,000           5,000                
----------------------------------------------------------------------------------------------------------------

                              MLRS Rockets

       The conference agreement includes $26,100,000 for the MLRS 
     rocket program. The conferees agree that this amount includes 
     $16,100,000 for production facilities for the self-destruct 
     fuze for the rocket bomblets. The remainder of the funds, 
     together with available prior year appropriations, supports 
     production at 500 rockets per month until the extended range 
     version of the rocket enters production. The conferees direct 
     the Army to provide prior notification to the Committees on 
     Appropriations and Armed Services if the production rate is 
     expected to exceed 500 per month during this bridge period.
       Amendment No. 51: Deletes House language making a portion 
     of the appropriation available for obligation only after 
     enactment of authorizing legislation.


        procurement of weapons and tracked combat vehicles, army

       Amendment No. 52: Appropriates $1,151,914,000 for 
     Procurement of Weapons and Tracked Combat Vehicles, Army 
     instead of $1,001,873,000 as proposed by the House and 
     $1,129,514,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget          House           Senate           Qty          Conference  
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF W&TCV, ARMY:                                                                                     
    BFVS SERIES (MOD)...........          72,512          65,012          80,112  ..............          82,812
    HOWITZER, MED SP FT 155MM                                                                                   
     M109A6 (M0.................         237,603         237,603         217,603  ..............         227,603
    IMPROVED RECOVERY VEHICLE                                                                                   
     (M88 MOD)..................          17,141          42,500          17,141              15          37,141
    TANK ENGINE INDUSTRIAL BASE.  ..............          15,000          35,000  ..............          35,000
    ABRAMS UPGRADE PROGRAM (MCR)  ..............  ..............         108,000              24         108,000
    SPARES AND REPAIR PARTS.....  ..............           5,100  ..............  ..............           5,100
    MACHINE GUN, 5.56MM (SAW)...           1,816          28,616          24,016  ..............          22,616
    GRENADE LAUNCHER, AUTO,                                                                                     
     40MM, MK19-3...............          12,302          13,302          38,902           1,500          33,902
    MORTAR, 120MM...............           6,248           7,248          15,948             274          13,948
    5.56 CARBINE M4.............           4,865           7,865          13,165          15,892          11,165
    M-16A2 RIFLE................  ..............          13,000          13,000  ..............          10,000
    PERSONAL DEFENSE WEAPON, 9MM  ..............           9,500           9,500  ..............          7,500 
----------------------------------------------------------------------------------------------------------------

                 bradley fighting vehicle modifications

       The conference agreement includes $82,812,000 for Bradley 
     Fighting Vehicle modifications. Included in this amount is 
     $7,500,000 for armor tiles, as proposed by the Senate, and 
     $13,100,000 for procurement of three battalion sets of 
     interchangeable spares kits for Bradley A0 vehicles to give 
     them the capability to fire and guide the TOW 2 family of 
     missiles, as proposed by the House. The remainder of the 
     funds represent a reduction of $10,300,000 below the budget 
     and are to be used for fully funded procurement of 
     modification kits.


                      tank engine industrial base

       The conference agreement includes $35,000,000 for the tank 
     engine industrial base program as proposed by the Senate 
     instead of $15,000,000 as proposed by the House. The 
     conferees agree that $6,000,000 of this amount shall be used 
     for plant downsizing. In addition, $9,000,000 shall be used 
     for system technical support and engine durability upgrade 
     efforts. Finally, $20,000,000, combined with $12,500,000 of 
     unobligated funds from the fiscal year 1994 program (a total 
     of $32,500,000) shall be used for engine overhaul/upgrade/
     service life extension/spare parts in a program to be jointly 
     developed by the Army and the contractor. Prior to obligation 
     of these overhaul/upgrade/service life extension/spare parts 
     funds, the Army shall report to the Committees on 
     Appropriations of the House and Senate on the specific 
     details of the program that has been developed and show 
     future costs by category for the entire tank engine 
     industrial base effort.
       The conferees agree that none of the funds appropriated for 
     this effort may be used for procurement of new engines.


                      abrams tank upgrade programs

       Both the House and the Senate supported the budget request 
     for the Abrams tank upgrade program. This included 
     $122,156,000 for 34 upgrades and $52,973,000 for advance 
     procurement for fiscal year 1996. The fiscal year 1996 
     procurement will begin Phase II of the upgrade program which 
     is intended to support the upgrade of 792 tanks at a rate of 
     120 per year. In addition, the conference agreement supports 
     an increase of $108,000,000 for the conversion of an 
     additional 24 tanks in fiscal year 1995, to be offset by a 
     transfer of the same number of M1A1 tanks to the Marine Corps 
     reserve at no cost to the Army. The conferees agree with 
     Senate direction that the army shall report prior to 
     obligation if these additional funds are insufficient to 
     support upgrade of 24 tanks.
       The House report encouraged the Army to consider multiyear 
     procurement for the Phase II tank upgrade program and the 
     authorization conference action authorizes such an approach. 
     The conferees note, however, that section 8010 of this Act 
     does not provide the necessary authorization to use funds in 
     this Act to initiate multiyear procurement for the M1 tank 
     upgrade program in fiscal year 1995. Neither House nor Senate 
     appropriations bill supported such authorization this year.
       The conferees agree that multiyear procurement for Phase II 
     continues to be worthy of consideration. However, the Army's 
     reported ``defunding'' of the upgrade program in fiscal year 
     1996 and the Congressional correction of this action by 
     providing an additional $108 million in fiscal year 1995 
     refute the contention that this is now a stable program. 
     Furthermore, no production upgrade tanks have yet been 
     delivered; the six prototypes have just recently begun tests. 
     Program maturity may therefore also be lacking. These are 
     considerations that should be addressed if the Department 
     elects to propose multiyear procurement in the 1996 budget. 
     In addition, the Department must demonstrate that a multiyear 
     proposal meets all the requirements of law, including 
     substantial cost savings and other requirements in the 
     recently enacted Federal Acquisition Streamlining Act. The 
     conferees expect a multiyear proposal to be supported with 
     the standard multiyear procurement budget justification 
     material. In addition, the conferees expect that such a 
     proposal/program be funded and structured like other 
     multiyear programs. In this regard, the multiyear procurement 
     of the M1A1 tank should not be taken as an example.
       The conferees note that, while a multiyear contract my not 
     be executed without additional legislation and funding, a 
     long lead contract for a single year procurement with an 
     option to convert later to a multiyear contract, is a 
     possibility that can be considered.
       Amendment No. 53: Deletes House language making a portion 
     of the appropriation available for obligation only after 
     enactment of authorizing legislation.


                    procurement of ammunition, army

       Amendment No. 54: Appropriates $1,181,221,000 for 
     Procurement of Ammunition, Army instead of $1,274,644,000 as 
     proposed by the House and $877,761,000 as proposed by the 
     Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, ARMY:                                                                                
    CTG, 5.56MM, ALL TYPES......          73,605          84,105          83,105  ..............          82,105
    CTG, 7.62MM, ALL TYPES......          12,108          27,108          12,108  ..............          25,108
    CTG, 25MM, ALL TYPES........          21,935          46,935          46,935  ..............          44,935
    CTG, 30MM, ALL TYPES........          16,577          20,277          16,577  ..............          20,277
    CTG, 40MM, ALL TYPES........          13,441          38,441          17,741  ..............          33,141
    CTG MORTAR 60MM 1/10 PRAC                                                                                   
     M840.......................             305           5,805           3,305              20           3,305
    CTG MORTAR 60MM ILLUM M721..           6,276          10,676           6,276              14          10,676
    CTG, MORTAR, 120MM, HE......  ..............          30,000  ..............              50          30,000
    CTG, MORTAR, 81MM, 1/10 TNG.  ..............           6,400  ..............  ..............           3,900
    CTG 120MM HEAT--MP-T M830A1.          34,596          44,596          52,774              13          44,596
    CTG ARTY 105MM HERA M913....  ..............          25,000          21,400               7          21,400
    PROJ. ARTY 155MM M795.......  ..............          69,000  ..............             120          54,000
    PROJ. 155MM SADARM..........  ..............          30,000  ..............  ..............          25,000
    BUNKER DEFEATING MUNITION                                                                                   
     (BDM)......................           7,761           7,761  ..............  ..............           7,761
    DEMOLITION MUNITIONS, ALL                                                                                   
     TYPES......................          23,356          93,356          23,356  ..............          40,000
    GRENADES, ALL TYPES.........           4,167          15,167           4,167  ..............           5,000
    GENERAL REDUCTION--PRIOR                                                                                    
     YEAR SAVINGS...............  ..............  ..............         -48,000  ..............  ..............
    PROVISION OF INDUSTRIAL                                                                                     
     FACILITIES.................          44,429          60,000          44,429  ..............          60,000
    LAYAWAY OF INDUSTRIAL                                                                                       
     FACILITIES.................          26,774          86,172          26,774  ..............          86,172
    CONVENTIONAL AMMO                                                                                           
     DEMILITARIZATION...........          95,469         110,000         102,969  ..............         110,000
    ARTY MPTS FLEX MANUF........  ..............  ..............  ..............  ..............          10,000
----------------------------------------------------------------------------------------------------------------

              conventional ammunition working capital fund

       Both the House and the Senate criticized the operation of 
     the Conventional Ammunition Working Capital Fund, the Fund 
     through which most conventional ammunition is procured for 
     the Department of Defense. The House report directed that the 
     Fund be closed and that ammunition be procured using 
     procedures which had been in place before the Fund was 
     created in 1982. The Senate report allowed the Fund to 
     operate for one more year while making certain reforms and 
     required the submission a plan/proposal by March 15, 1995.
       The conferees agree with the Senate approach to the future 
     of the Fund. However, the conferees direct that the following 
     changes be made in addition to those directed by the Senate:
       The restructured Fund must have an independent inventory 
     capability, compatible with but divorced from, the Commodity 
     Command Standard System (CCSS). This inventory file is needed 
     to maintain visibility of CAWCF inventory at all locations, 
     including at work-in-progress. A delivery tracking capability 
     is also desired.
       The system must be capable of handling both standard price 
     and non-standard price orders and be capable of generating an 
     accurate balance sheet and income and expense statement.
       The system must provide customers with timely and accurate 
     status of their orders.


                 artillery metal parts industrial base

       The conferees are concerned about the industrial base for 
     production of artillery metal parts and the ability of this 
     base to respond to requirements, both now and in the future. 
     They are therefore requesting the General Accounting Office 
     to conduct a thorough inventory of all artillery projectiles, 
     to include not only the quantity but also the condition and 
     suitability for training and combat. The GAO investigation 
     shall also include a report on future plans for the 
     procurement of advanced artillery projectiles, to include 
     type and quantities that may be required, and plans to 
     produce the metal parts required for these items.


                       M795 artillery projectile

       The conference agreement includes $54,000,000 for initial 
     procurement of the M795 projectile. The conferees agree with 
     House direction that the Army provide a cost breakout, 
     procurement/production strategy, and funding profile for this 
     item prior to obligating the funds. The conferees also agree 
     that the projectile metal parts be competitively procured 
     from the existing government-owned production base.


              artillery metal parts flexible manufacturing

       The conference agreement includes $10,000,000 for the 
     continued development of flexible manufacturing capabilities 
     at Army ammunition facilities. Of this amount, $5,000,000 is 
     to be used at the Louisiana Army Ammunition Plant and 
     $5,000,000 at the Scranton Army Ammunition Plant.
       In addition, the conferees direct that the $25,000,000 
     provided in the fiscal year 1994 Defense Appropriations Act 
     for a M483 to M864 projectile conversion program shall be 
     used for prove-out of the flexible manufacturing capabilities 
     at the Louisiana and Scranton Army Ammunition Plants.
       Amendment No. 55: Deletes House language making a portion 
     of the appropriation available for obligation only after 
     enactment of authorizing legislation.
       Amendment No. 56: Deletes Senate proviso earmarking certain 
     funds for the William Langer Plant.

                        Other Procurement, Army

       Amendment No. 57: Appropriates $2,673,148,000 for Other 
     Procurement, Army, instead of $2,348,806,000 as proposed by 
     the House and $2,646,048,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate      Quantity    Conference
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, ARMY:                                                                                        
    TACTICAL TRAILERS/DOLLY SETS...............       25,301       25,301       35,301  ...........       35,301
    FAMILY OF MEDIUM TACTICAL VEH (MYP)........      382,739      364,639      372,839        3,535      372,839
    DEFENSE SATELLITE COMMUNCIATIONS SYSTEM....      104,536  ...........      104,536  ...........      104,536
    MOD OF IN-SVC EQUIP (TAC SAT)..............        5,375        6,375        5,375  ...........        6,375
    SINCGARS FAMILY............................      367,382      301,782      367,382  ...........      367,382
    EAC COMMUNICATIONS.........................       12,067       12,067       49,867  ...........       49,867
    INFORMATION SYSTEMS........................       22,000       11,000       28,200  ...........       22,500
    LOCAL AREA NETWORK (LAN)...................       16,954       16,954       16,954  ...........       22,654
    ALL SOURCE ANALYSIS SYS (ASAS) (TIARA).....       28,247       18,247       23,547  ...........       23,547
    COMMANDERS TACTICAL TERM (CTT) (TIARA).....        8,228        8,228        8,228           24       11,728
    DIGITAL TOPOGRAPHIC SPT SYS (DTSS) (TIARA).       12,835  ...........       12,835  ...........        7,835
    NIGHT VISION DEVICES.......................       78,362       77,362       80,612  ...........       80,612
    INTEGRATED MET SYS SENSORS (IMETS).........        7,004        5,000        7,004  ...........        7,004
    ADV FIELD ARTILLERY TACT DATA SYS (AFATDS).       32,610        9,810        8,200  ...........        8,200
    FIRE SUPPORT ADA CONVERSION................       13,212       11,612       10,912          142       11,612
    STAMIS TACTICAL COMPUTERS (STACOMP)........       21,850  ...........       21,850  ...........       21,850
    STANDARD INTEGRATED CMD POST SYSTEM........       25,085        3,600       25,085  ...........        9,600
    AUTOMATED DATA PROCESSING EQUP.............      122,419       66,387      110,419  ...........       84,365
    RESERVE COMPONENT AUTOMATION SYS (RCAS)....      101,546      168,446      101,546  ...........      148,446
    INTEGRATED FAMILY OF TEST EQUP (IFTE)......       58,216       58,216       62,716  ...........       62,716
    PRODUCTION BASE SUPPORT (C-E)..............          849       12,849          849  ...........       12,849
    IMPROVED CHEMICAL AGENT MONITOR............        2,778        2,778        1,179  ...........        1,179
    AUTO CHEMICAL AGENT ALARM (ACADA), XM22....       13,046       13,046        5,494          250        5,494
    CHEM/BIO PROTECTIVE SHELTER................        9,539        7,539  ...........           51        7,039
    REFRIGERATION EQUIPMENT....................        4,788        1,900        1,888  ...........        1,888
    COMBAT SUPPORT MEDICAL.....................       16,574       16,574       19,348  ...........       19,348
    CAUSEWAY SYSTEMS...........................       14,309  ...........        1,000  ...........        1,000
    COMBAT TRAINING CENTERS SUPPORT............       20,138       20,138       21,238  ...........       21,238
    TRAINING DEVICES, NONSYSTEM................       99,339       71,739       85,939  ...........       85,939
    SIMNET/CLOSE COMBAT TACTICAL TRAINER.......       32,038  ...........       32,038  ...........       32,038
    OPA INITIAL SPARES.........................       75,650       71,500       68,450  ...........       68,450
    NATURAL GAS UTILIZATION....................  ...........        5,000  ...........  ...........        2,500
    BATTLEFIELD COMBAT IDENTIFICATION..........  ...........        5,500  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------

                          information systems

       The conferees agree to provide $22,500,000 for the 
     Information Systems program, an addition of $500,000 to the 
     budget request. The additional funding provided is available 
     only for switch expansion to the existing system at Schofield 
     Barracks. The conferees direct the Army to start the 
     Schofield Barracks upgrade project in fiscal year 1995.


                        local area network (lan)

       The conferees agree to provide $22,654,000 for the Local 
     Area Network program, an increase of $5,700,000 over the 
     budget request. The conferees direct that the additional 
     funding be used only to improve and upgrade the telephone 
     cable network and backbone LAN at Schofield Barracks starting 
     in fiscal year 1995.


         advanced field artillery tactical data system (afatds)

       The conferees agree to provide $8,200,000 for the Advanced 
     Field Artillery Tactical Data System, a reduction of 
     $24,410,000 from the budget request. The Army agreed to the 
     reduction and requested the conferees consider reallocating 
     the $24,410,000 to other specified programs to meet 
     shortfalls; however, due to budgetary constraints the Army's 
     request could not be met. The conferees recommend that the 
     Army submit a formal reprogramming request in fiscal year 
     1995.


                  automatic data processing equipment

       The conference agreement on the Automatic Data Processing 
     Equipment program appears in the Information Technology 
     Systems section of this report.


                  reserve component automation system

       The conference agreement on the Reserve Component 
     Automation System program appears in the Information Systems 
     Technology section of this report.


                  integrated family of test equipment

       The conferees agree to provide $62,716,000, an increase of 
     $4,500,000 to the request. The Conferees direct that the 
     $4,500,000 for procurement of DSESTS-TOW, as directed by the 
     Senate report, as well as the $5,000,000 provided in fiscal 
     year 1994 in the Bradley fighting vehicle appropriation for 
     DSESTS-TOW, are subject to the requirements stated in the 
     statement of managers accompanying the fiscal year 1994 
     Defense Appropriations Act. The conferees are disturbed the 
     Army has failed to initiate the DSESTS-TOW operational test 
     directed in last year's conference report, and expect this 
     test to be completed and the results published not later than 
     July 1, 1995. The conferees further expect any request for an 
     extension will be denied. The conferees agree the Army is to 
     maintain its existing policy regarding automatic test 
     equipment and the use of waiver authority, when necessary, in 
     making procurements. The Army is directed to finalize the 
     development of its future ``Fix Forward'' strategy and decide 
     whether DSESTS, IFTE, or some combination of the two is the 
     most cost-effective way to meet this policy's goals.


                     production base support (c-e)

       The conferees agree to provide $12,849,000 for Production 
     Base Support (C-E), an increase of $12,000,000 to the budget 
     request. The additional funds are only for the procurement of 
     industrial process and information systems equipment for the 
     Industrial Operations Facility at the Tobyhanna Army Depot.


                         combat support medical

       The conference agreement provides $19,348,000 for the 
     Combat Support Medical program, an increase of $2,744,000 
     over the budget request. Of the amount appropriated, 
     $6,750,000 is available only for the procurement of Field 
     Medical Oxygen Generating and Distribution System (FMOGDS), 
     provided that the Army certifies to the Congressional Defense 
     Committees that FMOGDS has successfully passed production 
     testing and has received milestone III approval. If the 
     FMOGDS fails to receive milestone III approval due to test 
     failure, the conferees recommend that the available funds be 
     used to competitively procure the Liquid Oxygen Production, 
     Storage and Distribution System (LOPSDS). The conferees also 
     agree with the House recommendation that the Army 
     competitively procure additional LOPSDS equipment within the 
     Combat Support Medical program's fiscal year 1995 allocation 
     for items less than $2 million. Also, $2,500,000 of the 
     amount allocated is available only for the procurement of man 
     portable medical ventilators. Congress considers the FMOGDS, 
     LOPSDS, and portable medical ventilator as items of special 
     interest, and the Army shall annotate the DD Form 1414 
     accordingly.


                      training devices, nonsystem

       The conferees recommend $85,939,000 for the Training 
     Devices, Nonsystem program, a reduction of $13,400,000 from 
     the budget request. The reduction is made without prejudice 
     and is not earmarked for any specific subprogram.


                  simnet/close combat tactical trainer

       The conferees agree to provide the budget request of 
     $32,038,000 for the Close Combat Tactical Trainer (CCTT). The 
     conferees are advised that fiscal year 1995 funds are 
     required to accelerate the CCTT Quickstart program in advance 
     of the CCTT system level initial operational test and 
     evaluation. The conferees direct that the fiscal year 1995 
     funds appropriated for this program are available only for 
     the procurement of CCTT Quickstart, and are not available for 
     reprogramming.


                      water purification equipment

       In order to meet the Army's water purification equipment 
     requirements, the conferees recommend that consideration be 
     given to procuring a new high tech Reverse Osmosis Water 
     Purification Unit (ROWPU) prototype which incorporates the 
     newest concepts and technologies available to the water 
     purification industry.


                    improved moving target simulator

       The fiscal year 1994 Defense Appropriations bill provided 
     $5,000,000 to procure an Improved Moving Target Simulator for 
     the North Dakota National Guard.
       The conferees reaffirm their clear intent that these funds 
     be spent as directed. Further, the Army is directed to report 
     to the Congressional defense committees within 90 days 
     regarding the status of the IMTS procurement.

                       Aircraft Procurement, Navy

       Amendment No. 58: Appropriates $4,627,645,000 for Aircraft 
     Procurement, Navy instead of $4,820,442,000 as proposed by 
     the House and $4,531,789,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate      Quantity    Conference
----------------------------------------------------------------------------------------------------------------
Aircraft Procurement, Navy:                                                                                     
    AV-8B (V/STOL) Harrier.....................      130,216      130,216      110,216            4      123,216
    F/A-18C/D (Fighter) Hornet (MYP)...........    1,032,368      933,968      875,776           24      933,968
    AH-1W (Helicopter) Sea Cobra...............      141,721      216,721      141,721           18      141,721
    SH-60B (ASW Helicopter) Seahawk............  ...........      214,000  ...........  ...........  ...........
    E-2C (Early warning) Hawkeye...............      285,759      256,159      228,759            4      242,759
    T-45TS (Trainer) Goshawk...................      214,220      214,220      206,000           12      206,000
    HH-60H (Helicopter)........................       39,895       34,895       39,895  ...........       34,895
    F-14 Series................................      158,326       27,503      158,326  ...........      133,326
    H-1 Series.................................       95,874      105,874       95,874  ...........      105,874
    S-3 Series.................................       40,891       40,891       40,891  ...........       50,891
    E-6 Series.................................       90,482       81,482       90,482  ...........       90,482
    Common ECM Equipment.......................       12,664       20,664  ...........  ...........       20,664
----------------------------------------------------------------------------------------------------------------

                         ch-53e super stallion

       The Senate approved the Department's request of $41,084,000 
     in the Aircraft Procurement, Navy account and provided the 
     Marine Corps the flexibility to procure two additional 
     helicopters in lieu of using the requested amount to close 
     the line as proposed. The House approved the requested 
     amount. The conferees agree with the direction contained in 
     Senate report 103-321.


                              e-2c hawkeye

       The conferees agree to provide $242,759,000 for acquisition 
     of four aircraft in fiscal year 1995. The amount provided 
     reflects agreement with cost containment measures proposed by 
     the Navy subsequent to submission of the budget.
       The conferees note that the Navy's financial plan for 
     acquisition assumed approval of advance procurement with the 
     1994 omnibus reprogramming. The defense committees of the 
     Congress, in the reprogramming, approved the requested 
     increase in E-2C advance procurement and an offsetting 
     decrease in the E-2C full funding line, but the Department of 
     Defense did not apply these resources to satisfy the 
     requested increase. The conferees understand the Navy has 
     identified additional sources to cover the advance 
     procurement shortfall and the conferees encourage the Navy to 
     submit a reprogramming in time to protect the acquisition 
     schedule.


                       f-14 series modifications

       The conferees agree to provide $133,326,000 for F-14 
     modifications, a reduction of $25,000,000 from the budget 
     request. The reduction reflects a change in the Navy's 
     schedule for accomplishment of the planned A/B upgrade. The 
     conferees agree with the direction contained in Senate report 
     103-321.


                        s-3 series modifications

       The conferees agree to provide $50,891,000 for S-3 series 
     modifications. The amount provided is $10,000,000 above the 
     budget request. The increased funding is to be used for 
     procurement and installation of AN/USH-42 mission recorders.
       Amendment No. 59: Deletes House language making a portion 
     of the appropriation available for obligation only after 
     enactment of authorizing legislation.


                       weapons procurement, navy

       Amendment No. 60: Appropriates $2,159,080,000 for Weapons 
     Procurement, Navy, instead of $1,969,336,000 as proposed by 
     the House and $1,858,200,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                   Budget        House       Senate      Quantity     Conference
----------------------------------------------------------------------------------------------------------------
WEAPONS PROCUREMENT, NAVY:                                                                                      
    TRIDENT II.................................      641,318      641,318      384,818           18      616,318
    STANDARD MISSILE...........................      258,072      249,072      258,072          202      249,072
    DRONES AND DECOYS..........................  ...........        2,000       10,000  ...........       10,000
    SPARROW MODS...............................       26,797       26,797       12,897  ...........       12,897
    WEAPONS INDUSTRIAL FACILITIES..............       22,855  ...........       51,355  ...........       51,355
    FLEET SATELLITE COMM (MYP).................      125,480  ...........      125,480  ...........      125,480
    VERTICAL LAUNCHED ASROC (VLA)..............  ...........       32,000  ...........           40       22,000
    MK-46 TORPEDO MODS.........................        2,571        2,571  ...........  ...........        2,571
    SPARES AND REPAIR PARTS....................       53,809  ...........  ...........  ...........       53,809
----------------------------------------------------------------------------------------------------------------

                         trident ii d-5 missile

       The conferees agree to provide $616,318,000 for the Trident 
     II missile program in fiscal year 1995, a reduction of 
     $25,000,000 from the budget request. The conferees direct the 
     Department of the Navy to submit to the Committees on 
     Appropriations and Armed Services a Cost and Operational 
     Effectiveness Analysis (COEA) for possible D-5 missile 
     backfit into four Trident I submarines. The COEA should 
     address at a minimum:
       (1) the cost to accomplish the backfit (missiles, missile 
     guidance, submarine navigation system, submarine fire control 
     system, DASO launches, etc.) versus the cost of maintaining 
     C-4 missiles in the inventory;
       (2) the expected service life of the Trident submarine 
     fleet and the service life of the C-4 and D-5 missiles and;
       (3) the operational effectiveness in terms of targeting and 
     survivability of a mixed C-4/D-5 fleet of submarines versus a 
     fleet carrying only D-5 missiles.
       The conferees further direct that the completed COEA shall 
     be transmitted to the appropriate congressional committees 
     not later than July 1, 1995.
       Amendment No. 61: Deletes a House provision making a 
     portion of the appropriation subject to authorization and 
     inserts Senate language permitting appropriations to be 
     available to liquidate deficiencies in prior appropriations 
     acts.

            Procurement of Ammunition, Navy and Marine Corps

       Amendment No. 62: Appropriates $417,779,000 for Procurement 
     of Ammunition, Navy and Marine Corps instead of $493,810,000 
     as proposed by the House and $432,815,000 as proposed by the 
     Senate. The conference agreement also deletes the earmarking 
     for Navy and the Marine Corps as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                   Budget        House       Senate      Quantity    Conference 
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, NAVY AND MARINE                                                                      
 CORPS:                                                                                                         
    PRACTICE BOMBS.............................        2,827       12,827        2,827  ...........       12,827
    AIR EXPENDABLE COUNTERMEASURES.............       12,088       14,088       12,088  ...........       14,088
    5 INCH/54 GUN AMMUNITION...................       52,965       68,965       52,965  ...........       68,965
    SPARES AND REPAIR PARTS....................  ...........       53,809       53,809  ...........  ...........
    81MM ILLUMINATION (M853)...................        3,227       24,227        3,227  ...........       14,000
    155MM CHG. PROP. RED BAG...................       11,995       11,995  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------

                        5 inch/54 gun ammunition

       The conferees agree to provide $68,695,000 for 5 inch/54 
     gun ammunition. The conferees note the Navy's fiscal year 
     1995 budget submission failed to correct a flawed 
     requirements process. For the past two years the Navy itself 
     has conceded this process has resulted in budget requests 
     which shortchange minimum fleet training requirements by 25 
     percent. This situation is intolerable. In order to sustain 
     fleet readiness, the conferees have decided to correct the 
     fiscal year 1995 shortfall with an increase of $16,000,000 
     over the request, offset by reductions to other Navy 
     programs. The conferees direct the Navy to correct this 
     problem with the fiscal year 1996 budget and further direct 
     the Secretary of the Navy to certify to the Committees on 
     Appropriations by February 15, 1995, that the requirements 
     and budgeting process for 5 inch/54 ammunition has been 
     corrected to realistically represent those procurements 
     needed to meet fleet commanders' training and war reserve 
     requirements. The conferees will not accept any methodology 
     which continues to force commanders to cut training solely 
     because of the Department of the Navy's failure to make 
     common sense adjustments to the requirements and budgeting 
     process.


                  marine corps .50 caliber ammunition

       The conferees agree that the $5,000,000 over the budget 
     provided by both the House and the Senate for procurement of 
     .50 caliber ammunition for the Marine Corps shall be used for 
     procurement of sabot-light armor penetrator (SLAP) 
     ammunition.
       Amendment No. 63: Deletes House language making a portion 
     of the appropriation available for obligation only after 
     enactment of authorizing legislation.

                   Shipbuilding and Conversion, Navy

       Amendment No. 64: Appropriates $2,284,925,000 for the 
     carrier replacement program as proposed by the Senate instead 
     of $2,446,958,000 as proposed by the House.
       Amendment No. 65: Appropriates $38,328,000 for CVN 
     refueling as proposed by the Senate.
       Amendment No. 66: Appropriates $2,660,690,000 for the DDG-
     51 destroyer program as proposed by the Senate instead of 
     $2,607,690,000 as proposed by the House.
       Amendment No. 67: Inserts Senate language relating to 
     obligation and availability of funds for the LHD-7 amphibious 
     assault ship and directing the Secretary of the Navy to 
     extend the existing contract option.
       Amendment No. 68: Appropriates $1,000,000 for nuclear 
     submarine main steam condenser industrial base as proposed by 
     the House and deletes House earmark of $8,200,000 for the 
     cost growth in prior years' programs.
       Amendment No. 69: Restores House language to include 
     conversions along with craft, outfitting, post delivery, and 
     first destination transportation.
       Amendment No. 70: Appropriates $377,521,000 for craft, 
     outfitting, post delivery, conversions, and first destination 
     transportation instead of $357,521,000 as proposed by the 
     Senate.
       Amendment No. 71: Appropriates no funding for escalation 
     instead of $146,000,000 as proposed by the Senate.
       Amendment No. 72: Appropriates a total of $5,412,464,000 
     instead of $5,471,369,000 as proposed by the House and 
     $5,528,974,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                   Budget        House       Senate         Qty      Conference 
----------------------------------------------------------------------------------------------------------------
SHIPBUILDING & CONVERSION NAVY:                                                                                 
    CARRIER REPLACEMENT PROGRAM................    2,446,958    2,446,958    2,284,925            1    2,284,925
    CVN REFUELING OVERHAULS....................       38,328  ...........       38,328  ...........       38,328
    DDG-51.....................................    2,697,690    2,607,690    2,660,690            3    2,660,690
    AE(C)......................................       30,553       30,553  ...........            1       30,553
    SERVICE CRAFT..............................  ...........        5,600  ...........  ...........        5,600
    OUTFITTING.................................      178,154      138,154      178,154  ...........      158,154
    POST DELIVERY..............................      166,937      156,437      166,937  ...........      156,437
    AFS (C)....................................       22,837       22,837  ...........            1       22,837
    NUCLEAR SUBMARINE MAIN STEAM CONDENSERS....  ...........        1,000  ...........  ...........        1,000
    PRIOR YEARS' PROGRAMS......................  ...........        8,200  ...........  ...........  ...........
    ESCALATION.................................  ...........  ...........      146,000  ...........  ...........
----------------------------------------------------------------------------------------------------------------

                          New Attack Submarine

       Both the House and Senate expressed concern with the Navy's 
     current plan for the New Attack Submarine (NAS). The House 
     reduced funding for the program by $200 million and mandated 
     that the follow-ship procurement costs not exceed $1.2 
     billion. The Senate noted that force structure requirements 
     do not necessitate proceeding with the NAS for nearly 10 
     years, and that the costs of the NAS make it more expensive 
     than continuing to produce a limited number of Seawolf 
     submarines during that period. The conferees agree to provide 
     full funding for NAS, but maintain strong reservations with 
     the current program.
       Over the next five years, the Navy wants to spend nearly 
     $7.1 billion for continued development and to initiate 
     production of the NAS. The conferees do not believe the 
     Navy's budget will sustain this level of investment. As 
     evidence, the conferees cite apparent decisions by the 
     Defense Department to slip the production of the second NAS 
     from the year 2000 to 2001 to reduce near term funding 
     requirements. The conferees believe this and other likely 
     funding reductions will increase costs above the Navy's 
     current prediction.
       The conferees note that the first NAS will cost $3.4 
     billion to procure, nearly $1 billion more than the price of 
     the Seawolf, a program the Navy canceled because it was too 
     expensive. While the Navy argues that it expects to reduce 
     subsequent NAS costs to $1.54 billion per ship based on 
     buying two submarines per year, the conferees are aware of no 
     cost saving techniques or innovative manufacturing processes 
     which can be expected to reduce follow-on submarine costs 
     from $3.4 billion to $1.54 billion. On the contrary, the 
     conferees point out that NAS will be called upon to sustain 
     the full cost of the submarine industrial base, which should 
     lead to still higher costs unless proactive steps are taken 
     by the Navy to reduce costs.
       The conferees continue to believe that the Navy should seek 
     ways to reduce costs below the $1.54 billion plan with a goal 
     of producing a $1.2 billion submarine. The conferees are not 
     convinced that the Congress will support the purchase of $1.5 
     billion attack submarines should that price be achieved. In 
     order to remain informed of all developments related to the 
     cost and schedule of the NAS, the House and Senate Committees 
     on Appropriations expect quarterly reports from the Navy on 
     the program addressing planned cost and schedule, and 
     detailed explanations of any deviation from the plan.
       The costs of the nuclear reactor represent 35% of the 
     production costs. The conferees believe the Navy should 
     seriously consider designing a more cost effective reactor 
     and making other non-mission changes to lower the overall 
     cost of the submarine. The NAS has been designed around the 
     nuclear reactor, the conferees believe mission requirements 
     ought to govern design, not the reactor plant.
       In its FY 1996 budget, the Navy will be seeking nearly $1.2 
     billion for the NAS program. The conferees do not anticipate 
     providing this amount unless the Navy has demonstrated a 
     commitment to reduce costs and can cite concrete evidence of 
     its ability to produce the NAS program in a streamlined, 
     efficient and cost effective manner. The Navy can expect the 
     Committees on Appropriations to propose alternatives in 
     conjunction with the FY 1996 budget if the Navy ignores this 
     guidance.


                       MK-45 Gun Industrial Base

       The conferees understand the Navy is debating the merits of 
     procuring new MK-45 guns for DDG-51 destroyers, versus 
     refurbishing guns from ships being retired. It is not yet 
     clear that refurbishment will be cost effective in the long 
     run, considering the likely requirement to restart the 
     production line in the future. The conferees direct the Navy 
     to ensure that the naval gun industrial base is maintained 
     cost effectively as it decides between new procurement and 
     refurbishment.


                             Service Craft

       The conferees agree to provide $5,600,000 for procurement 
     of at least two double-hulled fuel barges (YON's) in fiscal 
     year 1995.
       The conferees note the recent decision by the Assistant 
     Secretary of the Navy for Research, Development and 
     Acquisition to proceed to acquire living barges consistent 
     with commercial specifications and standards, thereby 
     significantly reducing costs compared to purchasing craft 
     under excessive military specifications. The conferees 
     commend this initiative, and restate the position maintained 
     previously that the Navy should first evaluate available 
     commercial living barges, and determine their suitability to 
     meet the Navy's requirement prior to the obligation of any 
     funds for the construction of new living barges.


                          ship cost adjustment

       The conferees have included a general provision (section 
     8099) which transfers $535,690,000 in prior year funds to 
     cover cost increases in various ship programs. The following 
     table lists the adjustments by appropriations.
                                                                 Amount
Appropriations to which transfer is made:
Shipbuilding and Conversion, Navy 1986/1990.................$15,138,000
Shipbuilding and Conversion, Navy 1987/1991..................33,880,000
Shipbuilding and Conversion, Navy 1988/1992.................129,694,000
Shipbuilding and Conversion, Navy 1989/1993..................75,663,000
Shipbuilding and Conversion, Navy 1990/1994..................22,605,000
Shipbuilding and Conversion, Navy 1991/1995..................94,393,000
Shipbuilding and Conversion, Navy 1992/1996..................76,444,000
Shipbuilding and Conversion, Navy 1993/1997..................68,438,000
Shipbuilding and Conversion, Navy 1994/1998..................19,435,000
                                                       ________________

    Total...................................................535,690,000
                                                       ================

Appropriations from which transfer is made:
  Shipbuilding and Conversion, Navy 1986/1990................15,138,000
  Shipbuilding and Conversion, Navy 1987/1991................10,666,000
  Shipbuilding and Conversion, Navy 1988/1992................29,052,000
  Shipbuilding and Conversion, Navy 1989/1993................11,385,000
  Shipbuilding and Conversion, Navy 1990/1994.................8,555,000
  Shipbuilding and Conversion, Navy 1991/1995................70,127,000
  Aircraft Procurement, Navy 1993/1995......................148,642,000
  Aircraft Procurement, Navy 1994/1996.......................17,000,000
  Weapons Procurement, Navy 1993/1995........................55,000,000
  Weapons Procurement, Navy 1994/1996........................14,000,000
  Other Procurement, Navy 1993/1995..........................22,400,000
  Other Procurement, Navy 1994/1996..........................70,425,000
  Research, Development, Test and Evaluation, Navy 1994/1995.41,700,000
  Procurement, Marine Corps 1993/1995.........................6,600,000
  National Guard and Reserve Equipment 1994/1996 Air National15,000,000
                                                       ________________

    Total...................................................535,690,000

                        Other Procurement, Navy

       Amendment No. 73: Appropriates $3,329,171,000 for Other 
     Procurement, Navy, instead of $3,271,088,000 as proposed by 
     the House and $3,309,698,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate      Quantity    Conference
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, NAVY:                                                                                        
    ALLISON 501K GAS TURBINE...................        8,188        7,000        8,188  ...........        7,000
    OTHER GENERATORS...........................        9,013        8,013        9,013  ...........        8,013
    SUBMARINE PUMP RETROFIT KITS...............  ...........        1,000  ...........  ...........        1,000
    SUBMARINE PROPELLERS.......................        2,422        2,422        1,902  ...........        1,902
    OTHER PROPELLERS AND SHAFTS................        2,480        4,480        2,480  ...........        2,480
    OTHER NAVIGATION EQUIPMENT.................       22,852       19,852       22,852  ...........       21,352
    UNDERWAY REPLENISHMENT EQUIPMENT...........       22,465       20,000       22,465  ...........       20,000
    POLLUTION CONTROL EQUIPMENT................       65,867       63,867       62,867  ...........       62,867
    REACTOR COMPONENTS.........................      194,673      180,000      194,673  ...........      180,000
    STANDARD BOATS.............................        5,623        9,623        5,623  ...........        9,623
    NUCLEAR ALTERATIONS........................      156,804      130,000      156,804  ...........      146,804
    AN/SPS-48..................................          630        9,630          630  ...........        9,630
    RADAR SUPPORT..............................        8,446       12,946        8,446  ...........       12,946
    SURFACE SONAR WINDOWS AND DOME.............        3,217       10,117        3,217  ...........       10,117
    SUBMARINE ACOUSTIC WARFARE SYSTEM..........       10,684       10,684       10,684  ...........       22,684
    SSTD.......................................       31,889       30,889       31,889  ...........       31,889
    C-3 COUNTERMEASURES........................       26,317       41,317       26,317  ...........       41,317
    LINK 16 HARDWARE...........................       41,911       41,911       37,911  ...........       41,911
    SATCOM SHIP TERMINALS......................      126,363      106,363      126,363  ...........      116,363
    WEAPONS RANGE SUPPORT EQUIPMENT............       41,606       41,606       69,306  ...........       63,106
    EXPEDITIONARY AIRFIELDS....................        5,561        4,561        5,561  ...........        4,561
    AVIATION LIFE SUPPORT......................        7,873        7,873        7,873  ...........       10,873
    DARP.......................................        4,001        4,001        4,001  ...........  ...........
    TARTAR SUPPORT EQUIPMENT...................       36,267       36,267       38,667  ...........       38,667
    SURFACE TOMAHAWK SUPPORT EQUIPMENT.........       63,970       60,670       63,970  ...........       60,670
    LASER ARTICULATING ROBOTIC SYSTEM,                                                                          
     PHILADELPHIA NAVAL SHIPYARD...............  ...........        9,500  ...........  ...........        6,900
    NATURAL GAS UTILIZATION EQUIPMENT..........  ...........        8,000  ...........  ...........        8,000
    INTELLIGENCE SUPPORT EQUIPMENT.............       33,284       33,284       34,484  ...........       34,484
    COMPUTER ACQUISITION PROGRAM...............       41,807       10,007       41,807  ...........       41,807
    SPARES AND REPAIR PARTS....................      314,571      314,571      291,071  ...........      291,071
    INSTALLATION OF MODIFICATIONS..............  ...........  ...........      -10,000  ...........      -20,000
    JOINT TRAINING ANALYSIS & SIMULATION CENTER  ...........  ...........  ...........  ...........       10,500
----------------------------------------------------------------------------------------------------------------

                       other navigation equipment

       The conferees agree to provide $21,352,000 for Other 
     Navigation Equipment, a reduction of $1,500,000. The 
     reduction is without prejudice and is not directed at any 
     subprogram within the Other Navigation Equipment program.


                           reactor components

       The conferees agree to provide $180,000,000 for the Reactor 
     Component program. The reduction of $14,673,000 is made 
     without prejudice.


                          nuclear alterations

       The conferees agree to provide $146,804,000, for the 
     Nuclear Alterations program, a decrease of $10,000,000 from 
     the budget request. This adjustment is made without 
     prejudice.


                               an/sps-48

       The conferees agree to provide $9,630,000 for the AN/SPS-48 
     radar program. The additional funding of $9,000,000 is 
     available only for non-recurring costs associated with the 
     AN/SPS-48E radar Pulse Doppler Upgrade (PDU) program. The 
     conferees have been concerned over the need to improve ship 
     self defense, and have been advised that the PDU program will 
     significantly enhance ship self defense in littoral waters. 
     The conferees are concerned by the Navy's delay of this 
     program, which has prolonged an operational deficiency. The 
     conferees direct that all Other Procurement, Navy funds 
     intended for PDU, including fiscal years 1993 and 1994 
     funding, be released immediately for accelerated 
     implementation of the PDU program. This program is a 
     Congressional interest item.


                       submarine acoustic warfare

       The conferees agree to provide $22,684,000 for the 
     Submarine Acoustic Warfare program. The increase of 
     $12,000,000 is only for procurement of the Acoustic Device 
     Countermeasure Mark 4.


                  surface ship torpedo defense (sstd)

       The conferees agree to provide $31,889,000 for the Surface 
     Ship Torpedo Defense (SSTD) system, the amount of the fiscal 
     year 1995 budget request. Of the funds provided, the 
     conferees direct that none of the $10,500,000 identified for 
     AN/SLR-24 procurement in fiscal year 1995 may be obligated 
     until the Assistant Secretary of Navy (RD&A) certifies to the 
     Congressional Defense Committees that the phase II SSTD 
     system has successfully passed operational test and 
     evaluation.


                          sonobuoy procurement

       The April, 1994 Sonobuoy Inventory Analysis Report 
     submitted to the Committees on Appropriations by the Navy 
     provided timely information on revised sonobuoy requirements 
     which guided the Committees during their consideration of 
     sonobuoy funding for fiscal years 1994 and 1995. In this 
     connection, the conferees agree with the House reallocation 
     of fiscal year 1994 sonobuoy funding, and urge the Secretary 
     of the Navy to reflect in the budget request for fiscal years 
     1996 and 1997 the sonobuoy funding requirements for those 
     years identified in the Report. Sonobuoy acquisition remains 
     a matter of special interest to the conferees.


                    weapons range support equipment

       The conferees agree to provide $63,106,000 for the Weapons 
     Range Support Equipment program as discussed in the 
     Operations and Maintenance, Navy section of this report.


                         aviation life support

       The conferees agree to provide $10,873,000 for the Aviation 
     Life Support program, an increase of $3,000,000 to the budget 
     request. The additional funds are available only for manual 
     reverse osmosis disalinators, including $2,500,000 for the 
     Navy and $500,000 for the Marine Corps.


     laser articulating robotic system, philadelphia naval shipyard

       The conferees provide $6,900,000 for the acquisition of the 
     Laser Articulating Robotic System for use in the Philadelphia 
     Naval Shipyard. The propeller shop, as well as the foundry 
     which supports the shop will continue to operate at the Navy 
     Yard after its scheduled closure. The two existing LARS 
     Systems are to be modified to the latest production 
     configuration within these funds.


                                  darp

       The conference agreement on the DARP program appears in the 
     Defense-Wide Procurement section of this report.


            joint training, analysis, and simulation center

       The conferees agree to provide $10,500,000 for the 
     procurement of command, control, communications, and computer 
     equipment for a Joint Training, Analysis and Simulation 
     Center for the United States Atlantic Command.
       Amendment No. 74: Deletes a House provision making a 
     portion of the appropriations subject to authorization.
       Amendment No. 75: Deletes language proposed by the Senate 
     to establish a Joint Training, Analysis and Simulation 
     Center.
       Amendment No. 76: Inserts and amends Senate language 
     providing funds for the Pacific Missile Range Facility, 
     Hawaii.

                       Procurement, Marine Corps

       Amendment No. 77: Appropriates $422,410,000 for 
     Procurement, Marine Corps instead of $452,178,000 as proposed 
     by the House and $403,410,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                   Budget        House        Senate      Quantity    Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT, MARINE CORPS:                                                                                      
    LAV THERMAL SIGHTS.........................  ...........        3,000  ...........  ...........        3,000
    SINGLE CHAN GRD 7 AIR RADIO................       49,030       57,030       49,030  ...........       57,030
    DARP.......................................       28,768       28,768  ...........  ...........  ...........
    NIGHT VISION EQUIPMENT.....................       29,647       37,647       39,647  ...........       39,647
    MARINE ENHANCEMENT PROGRAM.................  ...........        3,000  ...........  ...........  ...........
    INDOOR SIMULATED MARKSMANSHIP TRAINER......  ...........        8,000  ...........  ...........        8,000
----------------------------------------------------------------------------------------------------------------

       Amendment No. 78: Deletes House language making a portion 
     of the appropriation available for obligation only after 
     enactment of authorizing legislation.

                    Aircraft Procurement, Air Force

       Amendment No. 79: Appropriates $6,379,962,000 for Aircraft 
     Procurement Air Force instead of $6,182,199,000 as proposed 
     by the House and $6,571,524,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate      Quantity    Conference
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, AIR FORCE:                                                                                
    B-1B (MYP).................................      154,254      144,254      119,000           --      139,254
    B-2A (MYP).................................      384,384      384,384      384,384           --      339,384
    BOMBER INDUSTRIAL BASE.....................           --           --      150,000           --      125,000
    F-16 C/D (MYP).............................      100,549      100,549           --           --       75,549
    C-17 (MYP).................................    2,472,914    1,007,314    2,472,914            6    2,168,614
    C-130H.....................................       49,975       49,975       31,575           --       31,575
    NON DEVELOPMENT AIRLIFT AIRCRAFT...........      103,707      103,707           --           --           --
    JPATS......................................      123,265      108,265       78,265            3       93,265
    TANKER, TRANSPORT, TRAINER SYSTEM..........      155,163      145,163      155,163           32      155,163
    E-8B.......................................      445,339      445,339      440,539            2      440,539
    E-8B (AP-CY)...............................      118,900      118,900      218,800           --      218,800
    B-1B.......................................       45,583       30,583       45,583           --       40,583
    B-52.......................................       25,800       32,800       25,800           --       32,800
    F-15.......................................      201,100      186,100      201,100           --      186,100
    F-16.......................................      157,227      157,227       98,227           --      110,727
    C-141......................................       14,506       14,506       10,471           --       14,506
    C-130......................................       77,041       77,041       73,541           --       77,041
    C-135......................................      103,440       77,640       71,740           --       77,640
    E-4........................................       35,230       25,230       35,230           --       35,230
    DARP MODS..................................        3,665        3,665        3,665           --       68,665
    DEPLOYABLE HYDRAULIC TEST AND REPAIR                                                                        
     FACILITY..................................           --        2,000           --           --        2,000
    WAR CONSUMABLES............................       26,587       18,587      205,587           --       18,587
    OTHER PRODUCTION CHARGES...................      259,467      259,467      239,437           --      239,437
    DARP SUPPORT EQUIPMENT.....................      196,886      196,886       17,886           --      196,886
----------------------------------------------------------------------------------------------------------------

         enhanced bomber capability fund/bomber industrial base

       The conferees remain very concerned about the current long 
     range bomber force structure, and the means by which to 
     improve its overall size, composition, and capability. As 
     such, the conferees provide $125,000,000 to help sustain the 
     bomber industrial base.
       Given the demonstrated requirement for U.S. bombers in the 
     rapidly changing national security environment, the conferees 
     are worried that the last remaining U.S. bomber production 
     capability, the B-2 industrial base, is being dismantled 
     before adequate analysis has been completed to determine the 
     proper long range, heavy bomber force structure. Independent 
     studies have concluded that the 20 B-2 aircraft now on order 
     are simply not enough to provide a militarily significant and 
     cost effective long range conventional bomber force. The 
     conferees regard the initiative to protect the option to 
     produce additional B-2 bombers for one more year as 
     critically important to U.S. national security.
       Accordingly, the appropriation of these funds is intended 
     to demonstrate to the Department the importance the conferees 
     attach to the preservation of our only remaining bomber 
     production capability. Upon the enactment of this Act, the 
     Secretary of Defense shall utilize this $125,000,000 to 
     ensure the B-2 production base remains a viable option for at 
     least one more year.
       The Commission on Roles and Missions, as established by the 
     Congress last year, is one vehicle for providing the Congress 
     with a considered opinion on the proper B-2 stealth bomber 
     inventory that the Air Force should maintain. Therefore, the 
     conferees direct the Commission to specifically address this 
     issue in its report, not only in the context of the 
     preservation of the industrial base, but for the critical 
     capability the B-2 provides to our national security. The 
     Commission is directed to report its findings to the 
     Congressional defense committees. If warranted by the 
     findings of the Commission, the Secretary of Defense shall 
     also develop an acquisition plan for sustained low rate 
     production of additional B-2 bombers as a force modernization 
     option and submit it to the defense committees.
       The conferees note that the Congress has previously 
     established a cost cap of $44.4 billion on the original 20 B-
     2 bomber program. It is the judgment of the conferees that, 
     because the expenditure of the $125,000,000 is for studies, 
     analysis and other efforts to preserve the B-2 industrial 
     base and to improve the size and composition of our long 
     range, heavy bomber force required to meet two MRCs, these 
     funds are unrelated to the orderly conclusion of the ongoing 
     20 B-2 aircraft program. Therefore, the funds provided herein 
     for this purpose will not be counted against the statutory 
     cost cap.
       The 1995 National Defense Authorization Act provides funds 
     for these purposes in the Enhanced Bomber Capability Fund. 
     The conferees believe that the terms Enhanced Bomber 
     Capability Fund and Bomber Industrial Base are 
     interchangeable and should be viewed by the Defense 
     Department as the same program.


                                  C-17

       The conferees agree to provide $2,168,614,000 for the C-17 
     program, a reduction of $304,300,000 to the budget request 
     and the same amount as the authorization total. The conferees 
     agree to the deletion of House language requiring the Air 
     Force to qualify a second source producer for the C-17 
     engine. The conferees are cautiously optimistic that the 
     present producer of the engine will take the necessary 
     actions to reduce the engine's unit cost. If such unit cost 
     reduction does not occur the conferees reserve the right to 
     revisit the issue of developing a second source for the C-17 
     engine. The conferees direct that no funds provided herein 
     may be obligated to support the contract award of the C-17 
     engine in fiscal year 1995 until a report has been submitted 
     to the congressional defense committees detailing the 
     specific actions to be taken to reduce the unit cost of the 
     engine.


                           F-15 Modifications

       The conferees concur with the recommendation of the House 
     to reduce funding for F-15 modifications by $15,000,000 
     because of low obligations. The conferees note that the Air 
     Force had obligated less than one-third of the fiscal year 
     1994 funds provided for global positioning system (GPS) 
     modifications through July and was unable to provide a 
     monthly obligation plan for GPS delineating when the 
     remaining funds would be obligated.


                           F-16 Modifications

       The conferees recommend $110,727,000 for F-16 
     modifications. The agreement reduces funds for the ALE-47 and 
     digital engine control modifications, as recommended by the 
     Senate. The conferees agree to restore $12,500,000 of the 
     $30,000,000 reduced by the Senate for the Advanced Radar 
     Warning Receiver. Information provided to the conferees 
     indicates that a portion of the Advanced RWR funds are 
     required to continue the program from June of 1995 until the 
     beginning of fiscal year 1996.


                                 C-135

       The conferees agree to provide $77,640,000 for 
     modifications to C-135 aircraft, $25,800,000 below the budget 
     request and the same level as recommended by the House. The 
     reduction is made without prejudice to any specific C-135 
     modification. It is the conferees' belief that top priority 
     should be given to the upgrade of the KC-135 radar system and 
     the conferees urge the Air Force to proceed with this program 
     utilizing funds provided herein.
       Amendment No. 80: Restores and amends House language 
     requiring the Air Force to initiate procurement of non-
     developmental airlift alternative aircraft in fiscal year 
     1995; deletes House language requiring the Air Force to 
     qualify a second source producer of the C-17 engine and 
     deletes a House provision making a portion of the 
     appropriation subject to authorization.

                     Missile Procurement, Air Force

       Amendment No. 81: Appropriates $3,650,262,000 for Missile 
     Procurement, Air Force, instead of $2,758,285,000 as proposed 
     by the House and $3,620,055,000 as proposed by the Senate.

----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate      Quantity    Conference
----------------------------------------------------------------------------------------------------------------
MISSILE PROCUREMENT, AIR FORCE:                                                                                 
    HAVE NAP...................................  ...........        8,600       26,000           36       26,000
    GAMS.......................................  ...........  ...........       40,000  ...........       25,000
    AMRAAM.....................................      309,462      299,462      277,855          413      289,462
    AGM-130 POWERED GBU-15.....................       71,756       69,256       71,756          102       69,256
    TARGET DRONES..............................       29,043       17,043       29,043           48       23,043
    NONE.......................................        5,731        5,731        5,731  ...........        8,931
    CALCM......................................  ...........       29,400  ...........  ...........       29,400
    SPARES AND REPAIR PARTS....................       68,332       68,332       65,149  ...........       65,149
    SPACEBORNE EQUIP (COMSEC)..................        2,092  ...........        2,092  ...........        2,092
    GLOBAL POSITIONING (MYP)...................      134,831  ...........      134,831            5      134,831
    GLOBAL POSITIONING (MYP) (AP-CY)...........       55,352  ...........       55,352  ...........       55,352
    SPACE SHUTTLE OPERATIONS...................      103,518  ...........      103,518  ...........      103,518
    SPACE BOOSTERS.............................      381,817  ...........      381,817  ...........      381,817
    MEDIUM LAUNCH VEHICLE......................      120,480  ...........      107,480            3      107,480
    MEDIUM LAUNCH VEHICLE (AP-CY)..............       28,564  ...........       28,564  ...........       28,564
    DEF METEOROLOGICAL SAT PROG................       29,159  ...........       29,159  ...........       29,159
    DEFENSE SUPPORT PROGRAM (MYP)..............      363,959  ...........      363,959  ...........      363,959
    DEFENSE SATELLITE COMM SYSTEM..............       20,185  ...........       20,185  ...........       20,185
    IONDS (MYP)................................       35,649  ...........       35,649            5       35,649
    IONDS (MYP) (AP-CY)........................        9,954  ...........        9,954  ...........        9,954
    SPECIAL PROGRAMS...........................    1,619,032    1,960,532    1,532,032  ...........    1,541,532
----------------------------------------------------------------------------------------------------------------

                  Procurement of Ammunition, Air Force

       Amendment No. 82: Appropriates $288,401,000 for Procurement 
     of Ammunition, Air Force instead of $278,681,000 as proposed 
     by the House and $283,173,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate      Quantity    Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, AIR FORCE:                                                                           
    20MM TRAINING..............................       18,295       39,295       38,295        3,307       39,295
    30 MM TRAINING.............................       23,672       15,500       11,272        1,700       15,500
    FLARE, IR MJU-7B...........................       16,260        6,540       16,260      766,563       16,260
----------------------------------------------------------------------------------------------------------------

                            20mm ammunition

       The conference agreement includes $39,295,000 for 20mm 
     ammunition, as proposed by the House. The increase of 
     $21,000,000 above the budget is for the procurement of PGU-
     28B combat ammunition.
       Amendment No. 83: Deletes House language making a portion 
     of the appropriation available for obligation only after 
     enactment of authorizing legislation.

                      Other Procurement, Air Force

       Amendment No. 84: Appropriates $6,965,201,000 for Other 
     Procurement, Air Force, instead of $6,886,613,000 as proposed 
     by the House and $6,897,696,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                   Budget        House       Senate      Quantity    Conference 
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, AIR FORCE:                                                                                   
    2.5 TON SLEP...............................          ---       10,800          ---          200       10,800
    60K A/C LOADER.............................       29,329       29,329       15,500           27       29,329
    GENERAL REDUCTION, MMII....................          ---      -20,900          ---           --          ---
    AIR TRAFFIC CTRL/LAND SYS (ATCALS).........        2,423        1,000        2,423           --        1,000
    THEATER AIR CONTROL SYS IMPROVEMENT........       78,774       71,174       64,634           --       71,174
    ASOS.......................................          ---        5,000          ---           --        5,000
    DEFENSE SUPPORT PROGRAM....................       15,102          ---       24,094           --       24,094
    SPACETRACK.................................          918          918          ---           --          ---
    DEFENSE METEOROLOGICAL SAT PROG............       16,081          ---       16,081           --       15,000
    AUTOMATIC DATA PROCESSING EQUIP............       39,121       34,932       43,621           --       43,621
    WMMCCS/GLOBAL COMMAND & CONTROL SYSTEM.....       12,623        8,423        8,434           --        8,434
    MOBILITY COMMAND AND CONTROL...............       16,276       16,276       16,276           --        8,118
    COMBAT TRAINING RANGES.....................       16,989       16,989       11,689           --       11,689
    BASE LEVEL DATA AUTO PROGRAM...............       34,093       34,093       31,093           --       31,093
    AIR FORCE SATELLITE CONTROL NETWORK........       25,810          ---       25,810           --       25,810
    THEATER BATTLE MGT C2 SYS..................       45,547       32,400       45,547           --       32,400
    AUTOMATED TELECOMMUNICATIONS PRG...........       29,558       12,000       29,558           --       29,558
    ANTI JAM VOICE.............................          390          ---          390           --          ---
    COMM ELECT MODS............................       18,850       18,100       18,850           --       18,100
    NEWARK AFB CALIBRATION PACKAGE.............        1,601        1,601          ---           --        1,601
    ITEMS LESS THAN $2,000,000.................       11,667       10,667       11,667           --       11,667
    CHEMICAL/BIOLOGICAL DEF PROG...............        7,736        7,000        7,736           --        7,000
    ITEMS LESS THAN $2,000,000.................        4,304        3,304        4,304           --        4,304
    NATURAL GAS UTILIZATION EQUIPMENT..........          ---        5,000          ---           --        2,500
    PALLET AIR CARGO...........................        3,618        3,618          ---        4,000        3,618
    MOBILITY EQUIPMENT.........................       12,807        8,507       12,807           --       12,807
    WARTIME HOST NATION SUPPORT................        1,447        1,447          ---           --          ---
    SPARES AND REPAIR PARTS....................       61,026       61,026       34,824           --       36,026
    ITEMS LESS THAN $2,000,000.................       18,244       12,144       15,908           --       15,908
    INTELLIGENCE PRODUCTION ACTIVITY...........       58,050       56,265       53,550           --       54,550
    DARP.......................................       65,306       65,306       28,006           --       65,306
    SELECTED ACTIVITIES........................    5,620,346    5,550,446    5,545,146           --    5,554,946
----------------------------------------------------------------------------------------------------------------

                               __________



            theater air control systems improvement (tacsi)

       The conferees agree to provide $71,174,000 for the Theater 
     Air Control Systems Improvement program. The reduction of 
     $7,600,000 is without prejudice and is not earmarked against 
     any specific subprogram within the TACSI program.


                      mobility command and control

       The conferees agree to provide $8,118,000 for the Mobility 
     Command and Control program, a reduction of $8,158,000 from 
     the budget request. The conferees are advised that the 
     reduction can be made because requirements will be satisfied 
     through the defense business operating fund.
       Amendment No. 85: Deletes a House provision making a 
     portion of the appropriation subject to authorization.

                       Procurement, Defense-Wide

       Amendment No. 86: Appropriates $2,088,230,000 for 
     Procurement, Defense-Wide instead of $3,020,616,000 as 
     proposed by the House and $1,894,916,000 as proposed by the 
     Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate      Quantity    Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT, DEFENSE-WIDE:                                                                                      
    MAJOR EQUIPMENT, OSD/WHS...................       77,780      104,280       64,280  ...........       92,280
    DARP.......................................      250,660      250,660      236,960  ...........      335,058
    SUPERCOMPUTERS.............................  ...........      130,000  ...........  ...........       90,000
    ITEMS LESS THAN $2 MILLION.................       74,010       24,010       74,010  ...........       74,010
    AUTOMATED INFORMATION SYSTEM EQUIPMENT.....       15,402       10,402       15,402  ...........       15,402
    OTHER CAPITAL EQUIPMENT....................       28,531       23,531       28,531  ...........       28,531
    ITEMS LESS THAN $2 MILLION.................        4,000        2,000        4,000  ...........        4,000
    JOINT BIOLOGICAL DEFENSE PROGRAM...........  ...........  ...........        3,000  ...........       20,416
    NAVY TMD...................................       14,496  ...........       14,496  ...........       14,496
    C-130 MODIFICATIONS........................       65,661       58,361       65,661  ...........       58,361
    MH-47/MH-60 MODIFICATIONS..................       10,666        5,966       10,666  ...........       10,666
    PC, CYCLONE CLASS..........................       12,380       18,180       12,380  ...........       34,280
    CLASSIFIED PROGRAMS........................      379,561      374,596      488,761  ...........      443,961
    MENTOR-PROTEGE PROGRAM.....................  ...........  ...........       40,000  ...........       30,000
    DEFENSE SATELLITE COMMUNICATIONS SYSTEMS                                                                    
     (ARMY)....................................  ...........      104,536  ...........  ...........  ...........
    FLEET SATELLITE COMM (MYP).................  ...........      125,480  ...........  ...........  ...........
    SPACEBORN EQUIP (COMSEC)...................  ...........        2,092  ...........  ...........  ...........
    GLOBAL POSITIONING (MYP)...................  ...........      134,831  ...........  ...........  ...........
    GLOBAL POSITIONING (MYP) (AP-CY)...........  ...........       55,352  ...........  ...........  ...........
    SPACE SHUTTLE OPERATIONS...................  ...........      103,518  ...........  ...........  ...........
    SPACE BOOSTERS.............................  ...........       29,000  ...........  ...........  ...........
    MEDIUM LAUNCH VEHICLE......................  ...........      120,480  ...........  ...........  ...........
    MEDIUM LAUNCH VEHICLE (AP-CY)..............  ...........       28,564  ...........  ...........  ...........
    DEF METEOROLOGICAL SAT PROG................  ...........       29,159  ...........  ...........  ...........
    DEFENSE SUPPORT PROGRAM (MYP)..............  ...........      363,959  ...........  ...........  ...........
    DEFENSE SATELLITE COMM SYSTEM..............  ...........       20,185  ...........  ...........  ...........
    IONDS (MYP)................................  ...........       30,649  ...........  ...........  ...........
    IONDS (MYP) (AP-CY)........................  ...........        9,954  ...........  ...........  ...........
    DEFENSE SUPPORT PROGRAM....................  ...........       24,102  ...........  ...........  ...........
    DEFENSE METEOROLOGICAL SAT PROG............  ...........       15,000  ...........  ...........  ...........
    NATURAL GAS VEHICLES.......................  ...........       10,000  ...........  ...........       10,000
    ELECTRIC VEHICLES AND NATURAL GAS                                                                           
     CONVERSION................................  ...........  ...........       25,000  ...........  ...........
    ELECTRIC VEHICLES..........................  ...........  ...........  ...........  ...........       15,000
----------------------------------------------------------------------------------------------------------------

                       special operations command

       The adjustments to SOCOM's budget request are shown on the 
     table above. Additional funds provided under Patrol Craft, 
     Cyclone Class include $7,900,000 for the MK 96 weapon system 
     and $14,000,000 for settlement of claims.
       The conferees agree to the House restrictions regarding the 
     MC-130H Combat Talon II modification and the MH-47/MH-60 
     modification programs.


                defense airborne reconnaissance program

       The conferees agree to the following specific program 
     adjustments:

------------------------------------------------------------------------
                         Budget        HAC          SAC       Conference
------------------------------------------------------------------------
DARP................      250,660      250,660      236,950      335,058
    Air                                                                 
     Reconnaissance                                                     
     Low............            0            0            0       39,200
    Guardrail Common                                                    
     Sensor.........            0            0            0        4,991
    Guardrail/Mods..            0            0            0       26,938
    DARP Navy.......            0            0            0        4,001
    DARP-USMC.......            0            0            0       28,768
    Joint Tactical                                                      
     UAV............            0            0            0      -14,500
    Joint Tactical                                                      
     UAV--Spares....            0            0            0       -5,000
------------------------------------------------------------------------

       The conferees direct that of the funds provided, $8,400,000 
     is only for the Common Automatic Recovery System.


                          natural gas vehicles

       The conferees direct that not less than $500,000 of the 
     funds provided for natural gas vehicles in the Procurement, 
     Defense-wide appropriation is available only to test and 
     evaluate a natural gas dispensing system with quick coupling 
     components with multiple, back-to-back, no freeze short 
     duration characteristics, including special sealing and 
     safety design capabilities.
       Amendment No. 87: Deletes House language making a portion 
     of the appropriation available for obligation only after 
     enactment of authorizing legislation.
       Amendment No. 88: Deletes Senate bill language for the 
     Pioneer Unmanned Aerial Vehicle System.

                    Defense Production Act Purchases

       The conferees agree with House report language concerning a 
     Defense Production Act project, with some changes. 
     Specifically, the conferees agree that the capability to 
     manufacture radiation resistant electronics (RRE) is 
     essential to national security. The Department could 
     stabilize costs and reliable supply sources by encouraging 
     commercialization of the domestic RRE industry. Accordingly, 
     the conferees recommend that $7,000,000 from funds 
     appropriated in fiscal year 1994 be provided to competitively 
     establish domestic RRE capacity consistent with critical 
     defense needs, including a qualified manufacturing line with 
     a demonstrated capability to produce 256K SOI static RAMs 
     (with growth to 1M SOI RAMs), 300K gate arrays, and 
     nonvolatile memory.
       The conference agreement includes a general provision to 
     ensure the viability of the domestic production base for 
     nuclear steam generator tubing for aircraft carriers. The 
     conferees expect that in return for this funding the 
     Department of Defense will obtain a commitment from the 
     producer to remain a source of supply of Navy nuclear reactor 
     tubing at a reasonable price through the year 2005.

                  National Guard and Reserve Equipment

       Amendment No. 89: Appropriates $800,000,000 for National 
     Guard and Reserve Equipment instead of $796,200,000 as 
     proposed by the House and $952,000,000 as proposed by the 
     Senate.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                    Budget       House       Senate       Quantity    Conference
----------------------------------------------------------------------------------------------------------------
NATIONAL GUARD & RESERVE EQUIPMENT                                                                              
RESERVE EQUIPMENT                                                                                               
ARMY RESERVE                                                                                                    
MISCELLANEOUS EQUIPMENT........................  ...........      129,000       90,000  ...........       90,000
ENGR. EQPT.....................................  ...........      15,,000  ...........  ...........  ...........
AUTOMATIC BUILDING MACHINES....................  ...........        2,500  ...........  ...........  ...........
M915/M916/HEAVY DUMP TRUCKS....................  ...........        7,500  ...........  ...........  ...........
5 TON FLATBED TRAILERS.........................  ...........        4,300  ...........  ...........  ...........
NAVY RESERVE                                                                                                    
MISCELLANEOUS EQUIPMENT........................  ...........  ...........       80,000  ...........       45,000
C-130 AIRCRAFT.................................  ...........       67,800  ...........  ...........  ...........
P-3 UPGRADES...................................  ...........       42,000  ...........  ...........  ...........
MIUW VAN UPGRADE...............................  ...........       10,000  ...........  ...........  ...........
MARINE CORPS RESERVE                                                                                            
MISCELLANEOUS EQUIPMENT........................  ...........       40,000       52,000  ...........       25,000
AIR FORCE RESERVE                                                                                               
MISCELLANEOUS EQUIPMENT........................  ...........  ...........       75,000  ...........       25,000
SMALL ARMS SIMULATOR...........................  ...........        5,000  ...........  ...........  ...........
C-130H AIRCRAFT................................  ...........       67,800  ...........  ...........  ...........
KC-135 REENGINING..............................  ...........       24,000  ...........  ...........  ...........
NATIONAL GUARD EQUIPMENT                                                                                        
ARMY NATIONAL GUARD                                                                                             
MISCELLANEOUS EQUIPMENT........................  ...........  ...........      125,000  ...........       70,000
UH-60Q HELICOPTER UPGRADE KITS.................  ...........       25,000  ...........  ...........  ...........
NIGHT VISION DEVICES & DRIVERS NIGHT VIEWER....  ...........       17,000  ...........  ...........  ...........
M109A5.........................................  ...........       12,000  ...........  ...........  ...........
FAASV..........................................  ...........       42,000  ...........  ...........  ...........
ACE............................................  ...........       40,000  ...........  ...........  ...........
EXTERNAL AUX FUEL TANKS........................  ...........        2,000  ...........  ...........  ...........
HUEY SLEP......................................  ...........        3,000  ...........  ...........  ...........
M915/M916/HEAVY DUMP TRUCKS....................  ...........        7,500  ...........  ...........  ...........
AIR NATIONAL GUARD                                                                                              
MISCELLANEOUS EQUIPMENT........................  ...........  ...........       55,000  ...........       40,000
NATIONAL GUARD AIRCRAFT                                                                                         
C-130H AIRCRAFT................................  ...........      203,400  ...........  ...........  ...........
KC-135 REENGINING..............................  ...........       24,000  ...........  ...........  ...........
KC135 RADAR MODS...............................  ...........        5,000  ...........  ...........  ...........
NATIONAL GUARD AND RESERVE AIRCRAFT............  ...........  ...........      475,000  ...........      505,000
----------------------------------------------------------------------------------------------------------------

                        miscellaneous equipment

       The conferees agree that this program shall be executed by 
     the heads of the guard and reserve components with priority 
     consideration for miscellaneous equipment appropriations 
     given to the following items:
       Engineering equipment including hydraulic elevators, 
     automatic building machines, M915/916 heavy dump trucks, 5 
     ton flatbed trailers, Army Reserve logistics support vessel, 
     P-3 Update III modifications, MIUW van upgrades, SQQ-T1 
     trainer, C-9 Naval Reserve aircraft, Marine Corps Reserve AH-
     1W helicopters, small arms simulators, KC-135 reengining, UH-
     60Q helicopter upgrades, night vision devices and drivers' 
     night viewers, M109A5 howitzer upgrades, CH-47 FADEC, Army 
     National Guard external auxiliary fuel tanks, Huey SLEP, 
     Modular airborne fire fighting systems, high mobility 
     multipurpose wheeled vehicles, M9 armored combat earthmovers, 
     field artillery ammunition support vehicles, new generation 
     radar for the RC-135 fleet, and AN/AQS-14 airborne MCM 
     trainers.


                  national guard and reserve aircraft

       The conferees agree to provide $505,000,000 for the 
     acquisition of aircraft to support Reserve and National Guard 
     missions.
       Amendment No. 90: Deletes House language making a portion 
     of the appropriation available for obligation only after 
     enactment of authorizing legislation.

          TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

       Amendment No. 91: Appropriates $5,521,413,000 instead of 
     $5,456,498,000 as proposed by the House and $5,304,329,000 as 
     proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RESEARCH, DEVELOPMENT, TEST & EVAL.--ARMY                                                                       
DEFENSE RESEARCH SCIENCES.......................         195,346         205,996         181,501         206,171
ELECTROMECHANICS AND HYPERVELOCITY PHYSICS......           5,050           8,700           5,050           8,700
MATERIALS TECHNOLOGY............................          11,083          21,083          15,083          25,083
ELECTRONIC SURVIVABILITY AND FUZING TECHNOLOGY..          26,036          29,036          26,036          27,536
LASER WEAPONS TECHNOLOGY........................  ..............           4,000  ..............           4,000
MODELING AND SIMULATION.........................          51,517          32,517          54,517          54,517
COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY........          28,330          34,330          28,330          34,330
CHEMICAL, SMOKE AND EQUIPMENT DEFEATING                                                                         
 TECHNOLOGY.....................................          29,657          42,157          18,957          31,857
JOINT SERVICE SMALL ARMS PROGRAM................           5,325           5,326           5,826           5,826
WEAPONS AND MUNITIONS TECHNOLOGY................          28,163          38,163          28,163          36,163
ELECTRONICS AND ELECTRONIC DEVICES..............          21,222          23,222          21,222          24,222
ENVIRONMENTAL QUALITY TECHNOLOGY................          25,887          40,887          31,287          46,954
LOGISTICS TECHNOLOGY............................          31,825          35,325          31,825          34,325
MEDICAL TECHNOLOGY..............................          87,529          89,029          95,279          95,279
PROJECTS PLOWSHARES.............................  ..............  ..............           5,000           5,000
LOGISTICS ADVANCED TECHNOLOGY...................          14,386          15,386          14,386          15,386
MEDICAL ADVANCED TECHNOLOGY.....................          41,028         258,208         143,028         258,028
AVIATION ADVANCED TECHNOLOGY....................          51,350          54,350          49,913          52,913
WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY.......          25,562          32,562          25,562          32,562
COMBAT VEHICLE AND AUTOMOTIVE ADVANCED                                                                          
 TECHNOLOGY.....................................          59,414          62,414          59,414          62,414
TRACTOR ROSE....................................           3,240           6,440           3,240           6,440
ACQUIRED IMMUNE DEFICIENCY SYNDROME (AIDS)                                                                      
 RESEARCH.......................................           3,185          23,185          33,410          33,410
MISSILE AND ROCKET ADVANCED TECHNOLOGY..........          94,602          62,824          98,502          78,502
LANDMINE WARFARE AND BARRIER ADVANCED TECHNOLOGY          11,950          21,950          11,950          21,950
JOINT SERVICE SMALL ARMS PROGRAM................           5,746           5,746           7,246           7,246
ADVANCED TACTICAL COMPUTER SCIENCE AND                                                                          
 TECHNOLOGY.....................................          34,995          39,995          34,995          34,995
ARTILLERY PROPELLANT DEVELOPMENT................           8,137           9,137          25,937          25,937
ENGINEER MOBILITY EQUIPMENT ADVANCED DEVELOPMENT          11,339          11,339          15,929          15,929
ADVANCED TANK ARMAMENT SYSTEM (ATAS)............          10,075  ..............          10,075           5,000
DISTRIBUTIVE INTERACTIVE SIMULATION--ADV DEV....          11,787           6,000          11,787           8,500
TACTICAL ELECTRONIC SURVEILLANCE SYSTEM--ADV DEV          15,008          10,008          15,008          15,008
AVIATION--ADV DEV...............................           9,367          15,867          11,367          16,867
WEAPONS AND MUNITIONS--ADV DEV..................             663           1,263             663           1,263
LOGISTICS AND ENGINEER EQUIPMENT--ADV DEV.......           5,581           6,881          11,581          14,881
NBC DEFENSE SYSTEM-ADV DEV......................          13,778          22,078          13,778          15,278
COMANCHE........................................         525,182         525,182         525,182         495,182
EW DEVELOPMENT..................................          89,122          93,122          89,122          93,122
TRI-SERVICE STANDOFF ATTACK MISSILE.............          82,458  ..............          19,671          19,671
ALL SOURCE ANALYSIS SYSTEM......................          42,891          35,891          42,891          42,891
JAVELIN.........................................          31,337          31,337          34,737          34,737
ARMORED SYSTEMS MODERNIZATION (ASM)-ENG. DEV....          51,097          51,097          63,097          63,097
ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.........          16,856          12,271          16,865          12,271
AIR DEFENSE COMMAND, CONTROL AND INTELLIGENCE--                                                                 
 ENG DE.........................................          26,494          28,494          26,494          28,494
AUTOMATIC TEST EQUIPMENT DEVELOPMENT............           7,201          15,701           7,201          15,701
DISTRIBUTIVE INTERACTIVE SIMULATION--ENG........           8,041           4,000           8,041           6,500
TRACTOR BAT.....................................         109,011         109,011         119,111         119,111
WEAPONS AND MUNITIONS--ENG DEV..................           9,130          18,930           6,530          17,130
LOGISTICS AND ENGINEER EQUIPMENT--ENG DEV.......          21,171          22,271          21,171          22,271
NBC DEFENSE SYSTEM-ENG DEV......................          13,474          48,274          13,474          29,774
LONGBOW--ENG DIV................................         191,303         191,303         191,303         171,303
NON-COOPERATIVE TARGET RECOGNITION--ENG DEV.....          13,666          13,666          13,666          18,666
MAJOR T&E INVESTMENT............................          55,536          55,536          50,536          50,536
LOS ALAMOS MESON PHYSICS FACILITY...............  ..............  ..............          20,000          20,000
ARMY TECHNICAL TEST INSTRUMENTATION AND TARGETS.          41,895          41,895          33,895          31,895
DOD HIGH ENERGY LASER TEST FACILITY.............  ..............          24,808          20,000          24,808
PROGRAMWIDE ACTIVITIES..........................         103,262         102,044         103,262          93,262
MUNITIONS STANDARDIZATION, EFFECTIVENESS AND                                                                    
 SAFETY.........................................           7,038           7,038           7,038          14,538
ENVIRONMENTAL COMPLIANCE........................          49,907          51,907          49,907          51,574
MAINTENANCE AND REPAIR (RPM)--RDT&E.............          91,970          91,970          81,970          81,970
MANAGEMENT HEADQUARTERS (RESEARCH AND                                                                           
 DEVELOPMENT)...................................          11,679          11,679          23,679          23,679
MLRS PRODUCT IMPROVEMENT PROGRAM................          55,699          58,699          55,699          58,699
COMBAT VEHICLE IMPROVEMENT PROGRAMS.............         111,279         131,779         111,279         111,279
AIRCRAFT MODIFICATION/PRODUCT IMPROVEMENT                                                                       
 PROGRAMS.......................................           9,564           9,564           5,040           5,140
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...           3,035           3,035           3,035           7,535
DIGITIZATION....................................          75,857         115,857          75,857          83,857
MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT PROGRAM.          24,610          29,610          29,610          37,610
OTHER MISSILE PRODUCT IMPROVEMENT PROGRAMS......          74,380          78,380          64,280          68,280
JOINT BIOLOGICAL DEFENSE PROGRAM................          52,895          52,895  ..............  ..............
SATCOM GROUND ENVIRONMENT.......................          95,191  ..............          95,191          68,191
AIRBORNE RECONNAISSANCE LOW.....................          11,429          11,429          11,429  ..............
END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.....  ..............          45,000          29,420          35,820
FEDERAL WORKFORCE RESTRUCTURING ACT.............  ..............  ..............           2,500           2,500
CLASSIFIED PROGRAMS.............................          20,858          29,358          20,858          37,858
GENERAL REDUCTION, UNIVERSITY RESEARCH..........  ..............         -68,000  ..............         -13,752
CIVILIAN PERS PAY RAISE & LOCALITY PAY..........  ..............          17,400  ..............           9,600
CIVILIAN PERSONNEL UNDERSTRENGTH................  ..............         -35,000         -48,400         -39,700
----------------------------------------------------------------------------------------------------------------

                Explanation of Project Level Adjustments

                       [In thousands of dollars]             Conference
        Army                                                  Agreement
Defense Research Sciences.......................................206,171
  Medical-Nutrition................................................+250
  Environmental technology......................................+10,000
  Trauma care......................................................+150
  Medical-Serum cholesterol........................................+425
  University Reduction..............................................  0
Materials Technology.............................................25,083
  Ductile iron..................................................+10,000
  Hardened materials.............................................+4,000
Electronic Survivability and Fuzing Technology...................27,536
  Passive microwave camera.......................................+1,500
Chemical, Smoke and Equipment Defeating Tech.....................31,857
  General increase...............................................+2,200
Joint Service Small Arms Program..................................5,826
Weapons and Munitions Technology.................................36,163
  Longhorn AAP-advanced materials................................+4,000
  Longhorn AAP-black powder substitute............................4,000
  Environmental Technologies........................................  0
Electronics and Electronic Devices...............................24,222
  Battery technology.............................................+3,000
Environmental Quality Technology.................................46,954
  Naval Surface Warfare Center, Crane Division.....................+167
  Jefferson Proving Ground--Unexploded Ordnance..................+5,000
  Joint Agriculture/DOD Project..................................+4,500
  Facility Environmental Management and Monitoring System (FEMMS)+5,000
  Hawaii Small Business Development Center.......................+5,400
  Saltsburg Remediation Technology...............................+1,000
Logistics Technology.............................................34,325
  Cold Pasteurization/Sterilization Techniques...................+2,000
  Air Beam tents...................................................+500
Project Plowshares................................................5,000
Aviation Advanced Technology.....................................52,913
  Starstreak air to air missile..................................+3,000
  National Rotocraft Technology Center...........................-1,437
  Rotocraft Pilot's Associate..................................(20,996)
Weapons and Munitions Advanced Technology........................32,562
  MX-982 155mm ER Projectile.....................................+6,000
  ER Fluid Recoil................................................+1,000
  Cannon Caliber Electromagnetic Gun............................(4,500)
Missile and Rocket Advanced Technology...........................78,502
  NLOS Demonstration............................................-20,000
  EFOG-M............................................................  0
  MPIM..............................................................  0
  Accelerate SRAW/MPIM...........................................+3,900
Landmine Warfare and Barrier Advanced Technology.................21,950
  Demining OOTW.................................................+10,000
Joint Service Small Arms Program..................................7,246
Artillery Propellant Development.................................25,937
  52 Caliber XM297; bolt-in, bolt-out for Paladin and XM230 for the 
    39 caliber cannon...........................................+17,800
Aviation--Adv Dev................................................16,867
  Advanced Boresight Equipment...................................+2,000
  Aircrew integrated ensemble....................................+3,900
  Integrated common helmet.......................................+1,600
  Aviation life support equipment...............................(4,628)
Logistics and Engineer Equipment--Adv Dev........................14,881
  Laser vibration sensing system.................................+4,000
  Heavy tactical bridge..........................................+1,300
  Medium assault bridge..........................................+4,000
NBC Defense System--Adv Dev......................................15,278
  General increase...............................................+1,500
EW Development...................................................93,122
  AD/EXJAM.......................................................+4,000
All Source Analysis System.......................................45,891
  Single source processor.......................................(3,000)
Armored system modernization (ASM)-ENG DEV.......................63,097
  AGS vehicles and IOT&E Spares..................................12,000
Air Defense Command, Control and Intelligence....................28,494
  NDI, passive sensor............................................+2,000
Automatic Test Equipment Development.............................15,701
  Integrated family of test equipment............................+8,500
Weapons and Munitions--Eng Dev...................................17,130
  Mortar systems................................................(3,317)
  120mm mortar ammunition........................................+8,000
  Bunker defeat munition............................................  0
NBC Defense System--Eng Dev......................................19,774
  General increase...............................................+6,300
Non-Cooperative Target Recognition--Eng Dev......................18,666
  Battlefield combat identification system.......................+5,000
LAMPF/LANSCE.....................................................20,000
DOD High Energy Laser Test Facility..............................24,808
Munitions Standardization, Effectiveness and Safety..............14,538
  Plasma furnace technology......................................+7,500
Environmental Compliance.........................................51,574
  Low emission natural gas boiler................................+1,667
Aircraft Engine Component Improvement Program.....................7,535
  Full authority digital electronic control [Note: Utilizes and 
    upgrades the existing T53 series engine hydomechanical unit.]+4,500
Digitization.....................................................83,857
Missile/Air Defense Product Improvement Program..................37,610
  Complementary missile w/Avenger system.........................+8,000
  Accelerate Stinger Block II....................................+5,000
Other Missile Product Improvement Program........................68,280
  BAT reduction.................................................-10,100
  Hellfire training round........................................+4,000
End Item Industrial Preparedness Activities......................35,820
  Advanced Non-Metallic Rechargeable Battery.....................+3,000
  Center for Optics Manufacturing...............................(4,900)
  Instrumented Factory for Gears................................(8,500)
Classified.......................................................37,858
  X-ROD.........................................................+17,000


                    weapons and munitions technology

       The conferees agree to provide $36,163,000, of which 
     $8,000,000 is only for two programs at the Longhorn Army 
     Ammunition Plant. The conferees also encourage the Department 
     of the Army to utilize the capabilities of the Armament 
     Research, Development and Engineering Center (ARDEC), 
     Picatinny Arsenal in the development of life-cycle 
     environmental technologies for use in the production of Army 
     weapon systems.


                   electronics and electronic devices

       The conferees agree to provide $24,222,000, of which 
     $1,000,000 shall only be for the development of a low cost 
     reusable alkaline battery for the SINCGARS family of radios, 
     $500,000 only for the development of a high rate ``AA'' 
     lithium carbon monofluouride battery, $1,000,000 only for the 
     development of a ``AA'' zinc air battery, and $500,000 only 
     for a no lead added zinc carbon cell.


            landmine warfare and barrier advanced technology

       The conferees agree to provide $21,950,000, of which 
     $10,000,000 is provided to detect and neutralize landmines. 
     The purpose of these funds is to develop new and improved 
     technologies specifically for use in demining in operations 
     other than war (OOTW) and humanitarian situations. The 
     conferees note that the Office of the Assistant Secretary of 
     Defense (Special Operations and Low Intensity Conflict) is 
     overseeing the management of funds for demining in 
     humanitarian situations, and the conferees therefore intend 
     that SOLIC will also oversee the use of these additional 
     research and development funds.


                          classified programs

       The conferees agree to provide $37,858,000, of which 
     $17,000,000 is only for the continued development of the 
     120mm rocket-boosted kinetic energy tank round, also known as 
     the X-rod. The Conferees direct that the additional funds 
     provided within this program element shall be equally divided 
     between the two X-rod development contractors.


                    artillery propellant development

       The conferees continue to support the development of the 
     XM46 liquid propellant as the preferred alternative for the 
     Advanced Field Artillery System (AFAS). In addition, the 
     conferees agree to provide $25,937,000, of which $17,800,000 
     is to continue to strongly support the development of the XM-
     297 cannon, the XM-194 bolt-in/bolt-out gun mount for the 
     M109 series cannon, and for the type classification of the 
     XM-230 unicharge propellant for the 39-caliber cannon.


         logistics and engineer equipment--advanced development

       The conferees have provided $14,881,000, an increase of 
     $9,300,000 above the budget request. Of the additional funds 
     provided, $4,000,000 shall be obligated only for the 
     evaluation of candidate Medium Assault Bridges, $4,000,000 
     only for the continuation of the two phased program for 
     structural integrity research using advanced lasers, and 
     $1,300,000 only for the Army's program to improve its 
     tactical bridging capabilities.


                            comanche/longbow

       The conferees agree to recede from the direction in the 
     Senate report that $20,000,000 each in the Comanche and 
     Longbow program elements be made available to support a 
     consolidation of the helicopter production base.


                  automatic test equipment development

       The conferees agree to provide $15,701,000, an increase of 
     $8,500,000 to the budget request for Projects DL59 and D537 
     as proposed by the House. The conferees agree that these 
     additional funds are to be used only for the development of 
     base shop test facility (BSTF) test program sets for Army 
     aviation and missile systems. However, funds may be used for 
     armored system BSTF development only if the Army's analysis 
     of armored systems electronics repair requirements determines 
     this workload should be transitioned from DSESTS to IFTE in 
     the near term. The Army is directed to provide the Committees 
     on Appropriations its planned allocation of these funds not 
     later than March 15, 1995.


      sense and destroy armament missile--engineering development

       The conferees agree to provide $42,000,000 for this program 
     element. The conferees interpose no objection to the Army's 
     fiscal year 1995 reprogramming request for the SADARM 
     research and development program, FY 94-8 PA (Rev.).


   Los Alamos Meson Physics Facility (LAMPF) and Los Alamos Neutron 
                       Scattering Center (LANSCE)

       The conferees agree to provide $20,000,000 only to upgrade 
     the accelerator at the LAMPF/LANSCE facility. The conferees 
     direct that none of these funds may be obligated until the 
     Secretary of the Army certifies to the Congressional defense 
     committees that the Energy Department budget request for 
     fiscal year 1996 contains sufficient funding for LAMPF/LANSCE 
     operations. This certification must be submitted no later 
     than April 1, 1995.


            high energy laser system test facility (helstf)

       The conferees agree to provide $24,808,000 for this program 
     element. The conferees agree with the Senate report language 
     with respect to HELSTF with two exceptions. The conferees 
     agree that the restrictions imposed by the Senate shall not 
     apply to the Joint U.S.-Israel Lethality Test (Nautilus) 
     project. The conferees agree that this project within the 
     scope of the usual lethality testing activities conducted at 
     HELSTF. However, they also agree that any follow-on tactical 
     laser development program arising from the Nautilus project 
     would be subject to the Senate's requirements. The conferees 
     further agree that any certification regarding a tactical 
     high energy laser program should identify, to the extent 
     practicable, the direct financial contributions of any 
     foreign nation participating in such an activity.


          munitions standardization, effectiveness, and safety

       The conferees agree to provide $14,538,000, of which 
     $7,500,000 is only to continue development of the plasma 
     furnace technology for the U.S. Army Construction Engineer 
     Research Laboratory (CERL).


             aircraft engine component improvement program

       The Conferees agree to provide $7,535,000, of which 
     $4,500,000 is provided only for the development of a full 
     authority digital electronic control (FADEC) which utilizes 
     and upgrades the existing T53 series engine hydromechanical 
     unit.


            missile/air defense product improvement program

       The Conferees agree to provide $37,610,000, of which 
     $8,000,000 is provided only for the continued operational 
     testing and evaluation of the ground to air Starstreak 
     missile system and $5,000,000 only for the acceleration of 
     the development of the Stinger Block II retrofit program.


                       satcom ground environment

       The conferees agree to delete a total of $27,000,000 from 
     Satcom Ground Environment to reflect schedule delays and 
     technical problems in SMART-T and SCAMP Milstar terminals.


                low altitude flight sensor for the army

       Frequent instances of military helicopters striking power 
     lines and other flight hazards highlight the need to enhance 
     the Army's capabilities to address these hazards. The 
     conferees direct the Army to report to the Committee on 
     Appropriations, no later than May 1, 1995, on its plans and 
     activities to develop a viable program to provide helicopters 
     with obstacle avoidance capabilities.
       Amendment No. 92: Deletes language proposed by the House 
     which restricts the obligation or expenditure of funds until 
     authorized by law.

            Research, Development, Test and Evaluation, Navy

       Amendment No. 93: Appropriates $8,796,168,000 for Research, 
     Development, Test and Evaluation, Navy instead of 
     $8,598,958,000 as proposed by the House and $8,790,331,000 as 
     proposed by the Senate.
       The conference agreement on items in conference is as 
     follows:

------------------------------------------------------------------------
                         Budget       House        Senate    Conference 
------------------------------------------------------------------------
RESEARCH DEVELOPMENT                                                    
 TEST & EVAL NAVY:                                                      
    DEFENSE RESEARCH                                                    
     SCIENCES.......      407,971      420,971      400,422      420,971
    SURFACE/AEROSPAC                                                    
     E SURVEILLANCE                                                     
     AND WEAPONS                                                        
     TECHNOLOGY.....       75,088       80,088       75,088       78,122
    AIRCRAFT                                                            
     TECHNOLOGY.....       24,691       25,145       24,691       30,145
    READINESS,                                                          
     TRAINING, AND                                                      
     ENVIRONMENTAL                                                      
     QUALITY                                                            
     TECHNOLOGY.....       42,753       50,753       50,453       52,453
    MATERIALS,                                                          
     ELECTRONICS AND                                                    
     COMPUTER                                                           
     TECHNOLOGY.....       80,867       98,617       78,784       96,534
    UNDERSEA                                                            
     SURVEILLANCE                                                       
     WEAPON                                                             
     TECHNOLOGY.....       92,765       92,765       92,765       93,765
    SUBMARINE                                                           
     TECHNOLOGY.....       19,557       19,557       14,557       14,557
    OCEANOGRAPHIC                                                       
     AND ATMOSPHERIC                                                    
     TECHNOLOGY.....       44,965       56,065       44,965       56,065
    AIR SYSTEMS AND                                                     
     WEAPONS                                                            
     ADVANCED                                                           
     TECHNOLOGY.....       30,293       33,572        7,881       27,381
    PRECISION STRIKE                                                    
     AND AIR DEFENSE       32,961       40,061       32,961       40,061
    SEA CONTROL AND                                                     
     LITTORAL                                                           
     WARFARE                                                            
     TECHNOLOGY                                                         
     DEMONSTRAT.....       82,134       62,134       74,533       74,533
    MEDICAL                                                             
     DEVELOPMENT....       17,820       59,520       17,820       59,520
    ENVIRONMENTAL                                                       
     QUALITY AND                                                        
     LOGISTICS                                                          
     ADVANCED                                                           
     TECHNOLOGY.....       21,024       23,024       21,024       23,024
    UNDERSEA WARFARE                                                    
     ADVANCED                                                           
     TECHNOLOGY.....       47,330       49,830       47,330       49,830
    ADVANCED                                                            
     TECHNOLOGY                                                         
     TRANSITION.....       79,863       87,363       66,633       75,210
    C3 ADVANCED                                                         
     TECHNOLOGY.....       26,556       21,456       26,556       21,456
    AVIATION                                                            
     SURVIVABILITY..        9,992       16,192        9,992       16,192
    TACTICAL                                                            
     AIRBORNE                                                           
     RECONNAISSANCE.       59,372       59,372       39,772       47,272
    SURFACE AND                                                         
     SHALLOW WATER                                                      
     MINE                                                               
     COUNTERMEASURES       51,879       51,879       42,254       44,254
    ADVANCED                                                            
     SUBMARINE                                                          
     COMBAT SYSTEMS                                                     
     DEVELOPMENT....       20,564       24,564       20,564       23,864
    SURFACE SHIP                                                        
     TORPEDO DEFENSE       30,247       30,247       20,947       20,947
    CARRIER SYSTEMS                                                     
     DEVELOPMENT....       15,878       15,878       15,378       15,378
    ADVANCED                                                            
     SUBMARINE                                                          
     SYSTEM                                                             
     DEVELOPMENT....       86,005      186,005       86,005       86,005
    ADVANCED NUCLEAR                                                    
     POWER SYSTEMS..      141,586      141,586      141,586      126,586
    ADVANCED SURFACE                                                    
     MACHINERY                                                          
     SYSTEMS........       72,355       79,755       80,755       80,755
    MARINE CORPS                                                        
     ASSAULT                                                            
     VEHICLES.......       26,399       35,499       26,399       35,499
    MARINE CORPS                                                        
     GROUND COMBAT/                                                     
     SUPPORT SYSTEM.       11,416       23,916       26,416       23,916
    ENVIRONMENTAL                                                       
     PROTECTION.....       51,101       51,101       49,811       49,811
    NAVY ENERGY                                                         
     PROGRAM........        4,468        4,468        9,168        9,168
    RETRACT ELM.....       39,472       39,472       33,094       39,472
    SHIP SELF                                                           
     DEFENSE........      192,269      229,469      203,469      229,469
    GUN WEAPON                                                          
     SYSTEM                                                             
     TECHNOLOGY.....       24,849       30,849       13,349       19,349
    JOINT ADVANCED                                                      
     STRIKE                                                             
     TECHNOLOGY                                                         
     PROGRAM........      100,037      100,037      140,037      100,037
    ASW AND OTHER                                                       
     HELO                                                               
     DEVELOPMENT....       86,547       97,547       77,153       90,947
    AV-8B AIRCRAFT--                                                    
     ENG DEV........       10,203       11,203       10,203       11,203
    V-22A...........      496,930      496,930      496,930      466,930
    AIR CREW SYSTEMS                                                    
     DEVELOPMENT....       12,157       15,157       12,157       15,157
    EW DEVELOPMENT..       79,980       79,980      104,980      104,980
    TRI-SERVICE                                                         
     STANDOFF ATTACK                                                    
     MISSILE........       66,662  ...........      116,662       66,662
    STANDARD MISSILE                                                    
     IMPROVEMENTS...       11,811       11,811       17,811       17,811
    NEW DESIGN SSN..      266,155      203,477      266,155      236,155
    SHIP CONTRACT                                                       
     DESIGN/LIVE                                                        
     FIRE T&E.......      160,092       22,770      160,092      160,092
    NAVY TACTICAL                                                       
     COMPUTER                                                           
     RESOURCES......       15,774       18,774       15,774       18,774
    LIGHTWEIGHT                                                         
     TORPEDO                                                            
     DEVELOPMENT....       10,284       13,284       10,284       11,284
    JOINT DIRECT                                                        
     ATTACK MUNITION       25,173       26,673       25,173       26,673
    JOINT STANDOFF                                                      
     WEAPON SYSTEMS.      111,127      111,127      126,127      116,127
    SHIP SELF                                                           
     DEFENSE........      181,501      224,501      199,501      228,501
    INTELLIGENCE                                                        
     ENGINEERING....        4,033  ...........        4,033        4,033
    TARGET SYSTEMS                                                      
     DEVELOPMENT....       28,042       28,042       14,208       27,392
    STUDIES AND                                                         
     ANALYSIS                                                           
     SUPPORT--NAVY..        6,058        4,041        6,058        6,058
    TECHNICAL                                                           
     INFORMATION                                                        
     SERVICES.......        1,776        4,776        1,776        4,776
    STRATEGIC SUB &                                                     
     WEAPONS SYSTEM                                                     
     SUPPORT........       52,361       37,361       29,223       29,223
    F/A-18 SQUADRONS    1,411,875    1,423,875    1,411,875    1,343,875
    E-2 SQUADRONS...       58,760       58,760       53,760       53,760
    INTEGRATED                                                          
     SURVEILLANCE                                                       
     SYSTEM.........       28,805       43,605       28,805       42,905
    CONSOLIDATED                                                        
     TRAINING                                                           
     SYSTEMS                                                            
     DEVELOPMENT....       46,779       49,779       71,779       60,779
    F-14 UPGRADE....      171,689      171,689       31,027       41,700
    MARINE CORPS                                                        
     GROUND COMBAT/                                                     
     SUPPORTING ARMS                                                    
     SYSTEMS........       13,051       13,051       23,051       23,051
    MARINE CORPS                                                        
     COMBAT SERVICES                                                    
     SUPPORT........        6,173        2,628        6,173        2,628
    ADVANCED MEDIUM                                                     
     RANGE AIR-TO-                                                      
     AIR MISSILE                                                        
     (AMRAAM).......       27,913       27,913       27,913       16,213
    SATELLITE                                                           
     COMMUNICATIONS.       47,115  ...........       47,115       47,115
    DEFENSE                                                             
     METEOROLOGICAL                                                     
     SATELLITE                                                          
     PROGRAM (DMSP).       14,639  ...........       13,960       13,960
    INDUSTRIAL                                                          
     PREPAREDNESS...       20,164      112,164       45,584       87,818
    FEDERAL                                                             
     WORKFORCE                                                          
     RESTRUCTURING                                                      
     ACT............  ...........  ...........          200          200
    CLASSIFIED                                                          
     PROGRAMS.......      567,056      542,056      566,556      567,056
    STRATEGIC                                                           
     SEALIFT                                                            
     TECHNOLOGY DEV                                                     
     PROGRAMS.......  ...........  ...........       19,200       19,200
    GENERAL                                                             
     REDUCTION,                                                         
     UNIVERSITY                                                         
     RESEARCH.......  ...........     -310,000  ...........      -62,245
    CIVILIAN PERS                                                       
     PAY RAISE &                                                        
     LOCALITY PAY...  ...........        1,200  ...........          200
------------------------------------------------------------------------

                explanation of project level adjustments

       The conferees agree to the following specific program 
     adjustments:

                       [In thousands of dollars]

        Research, Development, Test, and EvaluationConference agreement
Defense Research Sciences.......................................420,971
  Molecular design...............................................10,000
  Magnetohydrodynamics............................................3,000
  University Research...............................................  0
Surface/Aerospace Surveillance and Weapons Technology............78,122
  Multi-Spectral Shipboard Surveillance...........................3,034
Surface Ship Technology..........................................22,684
  Air Circuit Breaker Standardization.............................2,800
Aircraft Technology..............................................30,145
  Canard Rotor/Wing.................................................454
  Vectored Thrust Combat Agility Demo.............................5,000
Readiness, Training, and Environmental Quality Technology........52,435
  Air Life Support Prototype......................................2,000
  Marine Environmental Res........................................5,000
  Crash Resistant Troop Seat......................................2,700
Materials, Electronics and Computer Technology...................96,534
  Distributed Manf. Demo..........................................2,000
  High Thermal Conductivity......................................15,000
  Optics Center.....................................................750
  Hybrid Signal Processing.......................................-2,083
Undersea Surveillance Weapon Technology..........................93,765
  Batteries.......................................................1,000
Mine Countermeasures, Mining, and Special Warfare................37,710
  RAMICS..........................................................3,000
  Power Blade Technology..........................................(600)
Submarine Technology.............................................14,557
  Preplanned Product Improvement.................................-5,000
Oceanographic and Atmospheric Technology.........................56,065
  National Oceanographic Tech....................................10,100
  National Center for Acoustics...................................1,000
Air Systems and Weapons Technology...............................27,381
  ASTOVL.........................................................-8,721
  Navy Avionics Research..........................................7,000
  Advanced Avionics...............................................3,000
  AARGM...........................................................4,500
  Strapdown Seeker...............................................-6,000
  Short-Range Missiles...........................................-2,691
  Moving Spherical Convergent Flap Nozzle...........................
Precision Strike and Air Defense.................................40,061
  Airship-UHF Radar Demonstration.................................7,100
Sea Control and Littoral Warfare Technology Demonstration........74,533
  General Reduction.................................................
  Lightweight Variable Depth Sonar...............................-7,601
Medical Development..............................................59,520
  Center for Breast Cancer........................................5,000
  Bone Marrow Registry...........................................34,000
  Mammogram Technology............................................2,000
  Naval Biodynamics Lab.............................................700
Environmental Quality and Logistics Advanced Tech................23,024
  Imaging Technologies............................................2,000
Undersea Warfare Advanced Technology.............................49,830
  Low-Low Frequency Active........................................2,500
Advanced Technology Trans........................................75,210
  Enhanced Communications.........................................1,667
  Freeze Dried Blood..............................................2,500
  Long Endurance UUV.............................................-4,500
  Shallow-water Torpedo.............................................  0
  Intell. damage adaptive flight control.........................-4,320
  Anti Submarine Warfare Receiver...............................(3,300)
C3 Advanced Technology...........................................21,456
  General Reduction..............................................-5,100
Aviation Survivability...........................................16,192
  Aviation Survivability..........................................5,500
  Naval Biodynamics Lab.............................................700
Tectical Airborne Reconn.........................................47,272
  EO-LOROPS.....................................................-12,100
Surface and Shallow Water Mine Countermeasures...................44,254
  SAM-II.........................................................-1,886
  Unmanned Underwater Vehicles...................................-4,950
  NMRS.............................................................-789
Advanced Submarine Combat Systems Development....................23,864
  Fiber Optic Sensors.............................................3,300
Surface Ship Torpedo Defense.....................................20,947
  Anti-Torpedo Torpedo...........................................-9,300
Carrier Systems Development......................................15,378
  EMALS...........................................................1,500
  New Start Project Denial.......................................-2,000
Non-Acoustic Anti-Submarine Warfare.................................  0
  Transfer to Def. Agencies......................................-4,756
Advanced Submarine System Development............................86,005
  NAS Program Restructure...........................................
Advanced Nuclear Power Systems..................................126,586
Advanced Surface Machinery System................................80,755
  Intercooled recuperator.........................................7,400
  Water Intake Grates.............................................1,000
Marine Corps Assault Vehicles....................................35,499
  General Increase................................................5,000
  Rotary Engine Technology........................................4,100
Marine Corps Ground Combat/Support System........................23,916
  Predator/SRAW...................................................6,000
  Lightweight 155mm Howitzer......................................6,500
Environmental Protection.........................................49,811
  Ordnance reclamation...........................................-1,290
  Plasma Electric Waste Converter...............................(1,800)
Navy Energy Program...............................................9,168
  Fuel Specifications.............................................4,700
Retract Elm......................................................39,472
  Classified........................................................
Ship Self Defense...............................................229,469
  Self-Defense Test Ship.........................................11,200
Gun Weapon System Technology.....................................19,349
  Electric Gun Technology.........................................6,000
  Program delay..................................................-8,500
  Missile Demonstration..........................................-3,000
Joint Advanced Strike Technology Program........................100,037
  General Increase..................................................
ASW and other Helo Devel.........................................90,947
  Airborne Low Frequency Sonar....................................8,400
  Bol Chaff.......................................................1,000
  CH/MH-53 Mid-Life Upgrade.........................................  0
  AH-1W Integrated Weapon Sys....................................-5,000
AV-8B Aircraft--Eng. Dev.........................................11,203
  Bol Chaff.......................................................1,000
V-22A...........................................................466,930
  General Reduction.............................................-30,000
Air Crew Systems Development.....................................15,157
  Navy Combat Edge................................................1,300
  Crew Helmet Vision Sys..........................................1,700
EW Development..................................................104,980
  ADVCAP Replacement.............................................25,000
Tri-Service Standoff Attack Missile..............................66,662
  Program Termination...............................................
  Program Restructure...............................................
Standard Missile Improvements....................................17,811
  Terrier Missile Target Mod. Dev.................................6,000
New Design SSN..................................................236,155
  NAS Program Restructure...........................................
  General Reduction.............................................-30,000
Ship Contract Design/Live Fire T&E..............................160,092
  NAS Program Restructure...........................................
Navy Tactical Computer Resources.................................18,774
  AN/UYS-16.......................................................3,000
Lightweight Torpedo Devel........................................11,284
  Alternative Fuel Boiler.........................................1,000
Joint Direct Attack Munition.....................................26,673
  FMU-143 Fuse Improvement........................................1,500
Joint Standoff Weapon Syst......................................116,127
  BLU-108 Integration...............................................
  Ejector Racks...................................................5,000
Ship Self Defense...............................................228,501
  Advanced Display System........................................25,000
  Land Based Test Site...........................................10,000
  Sea Sparrow Integration.........................................4,000
  NULKA...........................................................8,000
Intelligence Engineering..........................................4,033
  General Reduction.................................................
Target Systems Development.......................................27,392
  QF-4N/QF-4S Target Drones........................................-650
Studies and Analysis Support-Navy.................................6,058
  Naval Warfare Studies.............................................
Technical Information Serv........................................4,776
  Advanced Tech. Info. Support....................................3,000
Strategic Sub & Weapons System Support...........................29,223
  Reentry Vehicle Ind. Base.....................................-15,000
  Trident Ownership..............................................-6,038
  Propellant Program.............................................-2,100
F/A-18 Squadrons..............................................1,343,875
  Bol Chaff.......................................................2,000
  USH-42 Recorder...................................................
  General Reduction (F/A-18 E/F)................................-70,000
E-2 Squadrons....................................................53,760
  General Reduction..............................................-5,000
Integrated Surveillance Sys......................................42,905
  Fiber Optics....................................................6,100
  Passive Automation..............................................8,000
Consolidated Training Systems Development........................60,779
  OUTBOARD........................................................3,000
  PMRF Shallow Water Range.......................................11,000
F-14 Upgrade.....................................................41,700
  Block I Strike Upgrade.......................................-171,689
  PDU............................................................29,500
  DFCS............................................................1,700
  OPEVAL..........................................................4,500
  JDAM Preparations...............................................6,000
Marine Corps Ground Combat/Supporting Arms Systems...............23,051
  LAV Air Defense................................................10,000
Marine Corps Combat Services Support..............................2,628
  Medium Tact. Veh. Repl.........................................-1,545
  Breacher Vehicle...............................................-2,000
Advanced Medium Range Air-to Air Missile.........................16,213
  AMRAAM Propulsion.............................................-11,700
Satellite Communications.........................................47,115
  Program Restructure...............................................
Defense Meteorological Satellite Program (DMSP)..................13,960
  Program Restructure...............................................
  Navy Unique DMSP.................................................-679
Industrial Preparedness..........................................87,818
  Fiber Optic Acoustic Sensors..................................(1,600)
  Cast Ductile Iron.............................................(6,000)
  Center of Excellence--Ship Hull...............................(1,000)
  Center of Excellence--composites Manufacturing...............(25,500)
  Joining Center................................................(4,000)
  Gulf Coast Maritime Tech Center...............................(5,400)
  EMPF.........................................................(12,000)
  Manufacturing Producibility Center, Kentucky....................(334)
  Center of Excellence, Metalworking Technology................(20,164)
  Center for Best Manufacturing Practices.......................(4,000)
Federal Workforce Restructuring Act.................................200
Classified Programs.............................................567,056
Strategic Sealift Technology Development Programs................19,200
General Reduction, University Research..........................-62,245
Civilian Personnel Pay Raise and Locality Pay.......................200


                     pacific missile range facility

       The conferees agree with the Senate direction and guidance 
     with respect to the Navy's Pacific Missile Range Facility and 
     its inclusion in the Defense Department's Major Range and 
     Test Facility Base on its role in testing the Navy's 
     ballistic missile defense systems.


                   advanced marine biological system

       The conferees are aware that the Navy has employed marine 
     mammals in various operational and research programs for more 
     than twenty-five years and that some of these animals are no 
     longer required for the Navy's program.
       As directed by the Congress in fiscal year 1993, the Navy 
     provided a long range plan for its marine mammals and 
     budgeted for long term care and maintenance. The Joint 
     Explanatory Statement of the Committee of Conference on the 
     Department of Defense Appropriations Act, 1994, gave the Navy 
     flexibility to transfer animals no longer required for Navy 
     operations to alternative protective captive environments as 
     an alternative to returning dolphins into the wild. It was 
     the intent of the conferees that this language did not 
     preclude the Navy from retaining marine mammals which were 
     not suitable release candidates or could not be transferred 
     to alternative protective captive environments.
       The conferees are aware of the animal protection 
     community's interest in requiring that all dolphins 
     identified as ``suitable release candidates'' be 
     rehabilitated and released.
       The conferees are informed that there are no scientifically 
     established or accepted protocols for such releases. 
     Moreover, documented success of previous attempts to 
     reintroduce captive marine mammals to the wild is sparse.
       Accordingly, the conferees believe that any attempts at 
     releasing Navy marine mammals to the wild should be pursued 
     cautiously and on an experimental basis until scientifically 
     sound protocols have been developed an reintroductions have 
     proven successful. The conferees recognize that the 
     Department of Defense does not have the authority to allow 
     the return of once-captive Navy Marine mammals into the wild. 
     This authority rests with the Department of Commerce, through 
     the National Marine Fisheries Service. Accordingly, the 
     conferees direct the Navy to cooperate with the Secretary of 
     Commerce and the Marine Mammal Commission in developing 
     rigorous scientific protocols for experimental releases. 
     Given the potential for ``takes'' under the Marine Mammal 
     Protection Act or the Endangered Species Act, the conferees 
     direct that in no case shall any release be attempted unless 
     authorized by a scientific research permit issued by the 
     Secretary of Commerce under the appropriate statutory 
     authority.
       The conferees are aware that the Navy will transfer a 
     number of its dolphins to a private facility in Florida 
     subject to approval by the National Marine Fisheries Service 
     and Animal and Plant Health Inspection Service. The conferees 
     are aware that the facility intends to work toward the 
     reintroduction of these dolphins to the wild if the National 
     Marine Fisheries Service approves a scientific research 
     permit. The conferees are pleased to learn that the efforts 
     to work toward the reintroduction of these dolphins will be 
     financed through private funds and that no federal funds are 
     required for this activity. Therefore, the conferees do not 
     recommend any federal funding for this effort.
       The conferees direct the Navy to continue to notify the 
     Congressional defense committees in advance of any proposed 
     transfers of marine mammals no longer required by the Navy. 
     The conferees further direct the Navy to report to the 
     committees every six months on the progress of its efforts 
     relating to marine mammals no longer required by the Navy.


              multi-purpose ammunition licensing agreement

       Multi-purpose (MP) ammunition technology has demonstrated 
     increased range and lethality for small and medium caliber 
     ammunition. Through an international licensing agreement with 
     the Government of Norway, DAAK10-80-C-0814, the United States 
     Government has had access to this technology for the past 
     fourteen years. This licensing agreement is due to expire in 
     June, 1995. The enhanced capabilities of MP technology have 
     only recently been realized and subsequently qualified by the 
     Navy and the Air Force for use in our front line fighter 
     aircraft. Additionally, the Marine Corps may be interested in 
     qualifying MP ammunition for ground requirements.
       The conferees recognize that while the Army, as single item 
     manager of all ammunition, does not have a current 
     requirement for MP technology, it is in the best interests of 
     the United States Government to have continued access to MP 
     technology advancements. Therefore, the conferees direct the 
     Department of Defense (DOD) to negotiate an appropriate 
     agreement for the necessary support for DOD MP requirements 
     beyond the term of the present licensing agreement, and to 
     designate the Navy as executive agent for MP technology 
     programs.


                           surface target gun

       The Congress in fiscal year 1994 appropriated $2,500,000 
     within Ship Self Defense for the Navy to conduct a prompt 
     test and evaluation of an off-the-shelf 25mm or 30mm 
     stabilized gun mount with an associated fire control system. 
     To date, the Navy has not obligated any funds for this 
     effort. In addition, as a part of the Navy's early effort on 
     the Advanced Minor Caliber Gun System program, the Navy 
     bought a 30mm cannon chain gun with its associated GAU-8 
     ammunition. This chain gun and ammunition have not been 
     tested. The conferees direct the Navy to use the $2,500,000 
     that was previously appropriated to test these stabilized gun 
     assets on an available off-the-shelf stabilized gun mount of 
     U.S. origin having remote local day/night fire control which 
     is capable of accepting either the 25mm or 30mm gun. The 
     testing and evaluation must be completed by the end of fiscal 
     year 1995. The Navy is expected to include in its fiscal year 
     1996 budget submission adequate funds for a planned program 
     as requirements demand.


          radio communications systems for lpd-17 class ships

       The LPD-17 class ship has the mission to transport 
     expeditionary Marine brigades. To ensure an effective, 
     reliable, secure, quick and cost effective external 
     communications system for this class of ships, the Navy has 
     determined that the external Radio Communications Systems 
     (RCS) program will use a land-based test facility and a 
     turnkey approach.
       The Navy facility at St. Inigoes, Maryland has been 
     responsible for the procurement, integration, testing, and 
     installation of 41 AEGIS RCS's, all on time and within 
     budget. St. Inigoes also initiated the quality control 
     enhancing, cost saving RCS turnkey approach. With its 
     extensive RCS test-beds and engineering/integration team, St. 
     Inigoes clearly has the capability to meet the Navy RCS 
     requirements well into the 21st century. To ensure state-of-
     the-art RCS's at the lowest cost, the conferees direct the 
     Navy to use St. Inigoes for the RCS engineering, production, 
     integration, testing, and training for the LPD-17 class and 
     future combat ships.


                        environmental protection

       The conferees are aware of efforts being made by the 
     Battery Metrics Lab in Portland, Oregon to expand the life of 
     batteries and lessen the environmental impact of long term 
     use of batteries and the challenges posed by disposal. The 
     conferees encourage the Navy to work with this Lab in 
     exploring new innovations to address battery life and 
     disposal.


                           generic logistics

       The fiscal year 1994 conference report on Department of 
     Defense appropriations included $2,000,000 in P.E. 0603712N. 
     The conferees reiterate that this funding is intended to 
     enhance the Advanced Schematic Capture Automation Navy 
     program by implementing a modular architecture and developing 
     technologies which will increase functionality and 
     reliability of the system and its production.


                undersea surveillance weapon technology

       The conferees agree to provide $500,000 only for the 
     continued development of a safe rechargeable battery for the 
     SEAL Delivery Vehicle and $500,000 only for the development 
     of a low rate ``AA'' lithium carbon monofloride battery for 
     Navy applications.


       sea control and littoral warfare technology demonstration

       The conferees agree to deny funds to begin the lightweight 
     variable depth sonar technology demonstration project. The 
     conferees suggest that any future request for funding, if 
     submitted, be accompanied by a more convincing demonstration 
     about how this project relates to other ongoing programs to 
     improve surface ship anti-submarine warfare in shallow water 
     environments.


                         c3 advanced technology

       The conferees agree that the funding reduction approved for 
     this program element is made without prejudice.


             surface and shallow water mine countermeasures

       The conferees have provided $2,000,000 only to complete the 
     ongoing Phase One of the Swedish-American Minesweeper (SAM 
     II) project and to terminate the project, as requested by the 
     Navy. No other use of the funds is permissible.


                 commercial gas turbine generator study

       The conferees direct the Navy to conduct an analysis of 
     potential cost savings from application of commercial gas 
     turbine generator technology for Navy ship service power 
     generation. This analysis should focus on U.S.-developed 
     equipment that offers emissions reduction and significantly 
     higher efficiencies over a full operating range compared with 
     gas turbines designed to military specifications. The Navy 
     shall conduct appropriate technical evaluations, and the 
     Secretary of the Navy shall report the results of the study 
     to the Congressional defense committees by March 31, 1995.


                      Gun weapon system technology

       The conferees agree to provide $30,849,000 in Gun Weapon 
     System Technology for the Navy's ship fire support 
     improvement program, of which not less than $6,000,000 is 
     only for the MK45 high performance upgrade program. In 
     addition, the conferees agree that the Navy should include 
     the electrothermal-chemical gun technology program in the 
     integrated plan to be submitted to the congressional defense 
     committees by March 1, 1995. The conferees also agree with 
     the Senate directions and guidance for this program element.


                  asw and other helicopter development

       The conferees have provided $30,501,000 only to continue 
     development of the Airborne Low Frequency Sonar (ALFS). This 
     amount includes an increase of $8,400,000 to the budget 
     request to accelerate development of shallow water 
     performance enhancements for the ALFS system.


                                  v-22

       The conferees agree to provide $466,930,000 for the 
     continued development of the V-22 and reaffirm their strong 
     support for this unique aircraft. Now that the V-22 program 
     has successfully completed reviews by the Joint Requirements 
     Oversight Council and the Defense Acquisition Board, the 
     conferees expect the Department of Defense to provide 
     sufficient long lead procurement funds in the fiscal year 
     1996 budget request to commence low rate initial production 
     of the V-22 in fiscal year 1997. These long lead procurement 
     funds are required to satisfy the Marine Corps' urgent need 
     for a V-22 initial operational capability in fiscal year 
     2001.


                                 EA-6b

       The conferees agree with the Senate position to provide 
     $25,000,000 in research, development, test and evaluation 
     funds in the Electronic Warfare Development program element 
     for development of a follow-on program to the Advanced 
     Capability (ADVCAP) program terminated by the Defense 
     Department. The conferees direct that the development plan 
     required by the Senate for this follow-on program be 
     submitted not later than December 31, 1994, along with the 
     results of the ongoing Joint Tactical Air Electronic Warfare 
     requirements study.
       The conferees have approved bill language which permits the 
     use of prior year, appropriated funds to begin non-
     developmental engineering changes and to procure a lower-cost 
     follow-on system and associated aircraft upgrades.
       The conferees direct the Navy to give high priority 
     consideration to incorporating already developed systems, or 
     systems already under development, into any follow-up system 
     to the ADVCAP.
       The conferees remain concerned about delays in defining and 
     beginning a follow-on program to the ADVCAP for meeting 
     tactical jamming requirements. The Navy and the Office of the 
     Secretary of Defense are urged to complete these actions 
     without further delay. The conferees also urge that, if it is 
     necessary to reallocate funds between appropriations accounts 
     to execute a follow-on program, the Defense Department 
     expeditiously submit such a reprogramming request.


                   new attack submarine combat system

       The conferees agree with the Senate directions and report 
     language regarding development of the combat system for the 
     new attack submarine, with the further clarification that the 
     competition urged for a combat system integrator refers to a 
     competition for a prime contractor which will assume overall 
     responsibility for the system and its integration. The 
     funding restriction and reporting requirements mandated for 
     the Assistant Secretary of the Navy with respect to the 
     revised competition strategy also are based on a competition 
     for a prime contractor with full combat system integration 
     responsibilities.


                           ship self-defense

       The conferees agree with the House-recommend bill language 
     with respect to incorporating own ship self-defense 
     capability--including cooperative engagement capability--on 
     the new LPD-17 amphibious ship. In approving this 
     requirement, the conferees do not believe that the Navy will 
     find it necessary to install on the ship the SPY-1 radar 
     system and associated Standard missile launch capabilities to 
     provide the required self-defense.
       The conferees' goal is approving this statutory provision 
     is to address the requirement for the LPD-17 to defend 
     against sea skimming cruise missiles in the final phases of 
     flight, not to address the need for area defenses against 
     theater ballistic missiles and other air threats.
       The conferees direct the Navy to report to the Committees 
     on Appropriations no later than May 5, 1995, on its plans and 
     activities related to developing infrared search and track 
     systems for ship self-defense.
       The conferees also agree to provide additional funding of 
     $25,000,000 to be made available to the Naval Sea Systems 
     Command, for use by the AN/UYQ-70 Advanced Display System 
     (ADS) program office only for adaptation of the Ads for 
     shipboard deployment in support of cooperative engagement 
     capability, future AEGIS baselines, advanced combat director 
     system block I, and ship self-dense system Mk 2, as well for 
     the demonstration of emerging COTS/NDI technology for future 
     deployment.


                       Target systems development

       The conferees agree to provide $27,392,000 for this program 
     element. The conferees note that the Navy continued to 
     develop the QF-4S full-scale aerial target contrary to 
     Congressional direction. As a result, the conferees have 
     approved only 50% of the budget request for this activity in 
     fiscal year 1995. In addition, the conferees direct that the 
     Navy and the Air Force provide a report to the Committee on 
     Appropriations, by February 1, 1995, on the development plans 
     and project costs for both the joint DOD full-scale aerial 
     target and the next generation target control system. The 
     conferees further direct the Navy to provide the committees 
     with a signed memorandum of agreement with the Air Force that 
     defined the Navy's complete transition to the joint program.


               CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT

       The conferees agree with the Senate direction and 
     recommendation to add funds to establish a shallow water 
     range capability off the Navy's Pacific Missile Range 
     Facility (PMRF), Barking Sands, Kauai, or at another 
     appropriate location in the Hawaiian Island chain. The 
     conferees have added $11,000,000, based on a revised Navy 
     estimate of the amount which can be effectively and 
     efficiently executed during fiscal year 1995 for the first 
     year of this project. The conferees have been informed that 
     the preliminary total cost for the project is about 
     $28,500,000. The conferees also agree with the Senate's 
     direction with respect to compliance with all the appropriate 
     State and Federal environmental protection regulations and 
     statutes.


                              F-14 UPGRADE

       The conferees have included $6,000,000 for efforts related 
     to providing the F-14 interceptor with the capabilities to 
     carry and launch the Joint Direct Attack Munition. The 
     conferees direct that not more than $2,500,000 may be 
     obligated until the Navy reports to the Committees on 
     Appropriations on the programmatic objectives, schedule, 
     technical risks, and annual programmatic objectives, 
     schedule, technical risks, and annual and total costs of the 
     project. Until the report is submitted, the unrestricted 
     funds may be used, if needed, to develop the information 
     required by the conferees.


              MARINE CORPS COMBAT/SUPPORTING ARMS SYSTEMS

       The conferees have agreed to provide an additional 
     $10,000,000 above the budget request for the continued 
     development and testing of LAV-AD.
       Amendment No. 94: Restores House language stricken by the 
     Senate which provides $1,000,000 as a grant for the National 
     Center for Physical Acoustics, provides for limitations on 
     the Aegis destroyer variant and development of the LPD-17 
     ship class. Deletes House language which provided for 
     limitation on E-2C-aircraft language upgrades.
       Amendment No. 95: Deletes Senate language appropriating 
     $5,000,000, for the Vectored Thrust Combat Agility 
     Demonstrator.

         RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

       Amendment No. 96: Appropriates $12,202,572,000 instead of 
     $10,728,533,000 as proposed by the House and $12,011,000 as 
     proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL AF:                                                                            
    DEFENSE RESEARCH SCIENCES...................         235,805         247,805         201,000         247,805
    AEROSPACE FLIGHT DYNAMICS...................          64,046          60,000          60,946          60,946
    HUMAN SYSTEMS TECHNOLOGY....................          52,518          49,000          48,302          48,302
    AEROSPACE PROPULSION........................          77,506          80,506          73,406          74,406
    AEROSPACE AVIONICS..........................          74,673          67,000          66,977          67,957
    PERSONNEL, TRAINING AND SIMULATION..........          29,848          29,848          33,748          33,748
    CIVIL ENGINEERING AND ENVIRONMENTAL QUALITY.           7,045           6,500           7,045           6,500
    HYPERSONIC FLIGHT TECHNOLOGY................          45,000          45,000          10,000          45,000
    ADVANCED WEAPONS............................         125,202         140,202         148,202         159,502
    COMMAND CONTROL AND COMMUNICATIONS..........          95,444          85,444          95,444          95,444
    LOGISTICS SYSTEMS TECHNOLOGY................          18,200          15,000          18,200          15,000
    ADVANCED MATERIALS FOR WEAPON SYSTEMS.......          19,900          21,400          19,900          20,400
    AEROSPACE PROPULSION SUBSYSTEMS INTEGRATION.          29,941          21,941          29,941          29,941
    ADVANCED AVIONICS FOR AEROSPACE VEHICLES....          34,500          37,500          23,298          28,500
    AEROSPACE VEHICLE TECHNOLOGY................          14,339          13,500           6,718           6,718
    AEROSPACE STRUCTURES........................          12,300          12,300             300          12,300
    AEROSPACE PROPULSION AND POWER TECHNOLOGY...          40,662          30,662          32,421          37,345
    PERSONNEL, TRAINING AND SIMULATION                                                                          
     TECHNOLOGY.................................           9,241           9,000           9,241           9,000
    CREW SYSTEMS AND PERSONNEL PROTECTION                                                                       
     TECHNOLOGY.................................          16,600          17,700          16,600          17,700
    GLOBAL SURVEILLANCE.........................          14,500          14,500           2,000           2,000
    ADVANCED FIGHTER TECHNOLOGY INTEGRATION.....          18,100          18,100           4,000           9,100
    LINCOLN LABORATORY..........................          15,000          15,000  ..............          15,000
    ADVANCED AVIONICS INTEGRATION...............          24,500          25,500           8,684          17,205
    EW TECHNOLOGY...............................          27,700          24,000          18,299          18,299
    SPACE AND MISSILE ROCKET PROPULSION.........          11,800          14,300           8,630          16,800
    ADVANCED SPACECRAFT TECHNOLOGY..............          24,200  ..............          19,400          19,400
    SPACE SYSTEMS ENVIRONMENTAL INTERACTIONS                                                                    
     TECHNOLOGY.................................           4,200  ..............           4,200           4,200
    SPACE SUBSYSTEMS TECHNOLOGY.................  ..............           8,000  ..............           8,000
    CONVENTIONAL WEAPONS TECHNOLOGY.............          35,100          35,100          17,464          31,250
    ADVANCED RADIATION TECHNOLOGY (EXCIMER LASER                                                                
     IMAGING)...................................          59,500          79,500          86,500          96,500
    C3 ADVANCED DEVELOPMENT.....................           9,925          10,925           9,925          10,925
    STRATEGIC MISSILE MODERNIZATION.............          36,018          36,018  ..............  ..............
    AIRBORNE LASER TECHNOLOGY...................          20,000          20,000  ..............          20,000
    SPACE TEST PROGRAM..........................          62,084  ..............          67,998          67,998
    ADVANCED MILSATCOM..........................          22,095  ..............          22,095          22,095
    DEFENSE METEOROLOGICAL SATELLITE PROGRAM                                                                    
     BLOCK 6....................................           7,601  ..............           7,601           7,601
    SATELLITE SYSTEMS SURVIVABILITY.............           8,531  ..............           2,131           2,131
    JOINT ADVANCED STRIKE TECHNOLOGY PROGRAM....         101,354         101,354         101,354          86,354
    ICBM--DEM/VAL...............................  ..............  ..............          43,206          43,206
    NUCLEAR WEAPONS SUPPORT.....................           5,637           3,637           5,637           5,637
    C-17 PROGRAM................................         221,454         105,154         210,154         190,154
    SPECIALIZED UNDERGRADUATE PILOT TRAINING....          41,633          20,000          37,433          37,433
    F-22 EMD....................................       2,461,149       2,443,439       2,399,849       2,351,000
    B-2 ADVANCED TECHNOLOGY BOMBER..............         408,543         408,543         408,543         388,543
    NIGHT/PRECISION ATTACK......................          21,672           4,672          21,672          21,672
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT                                                                       
     PROGRAM....................................          97,399          95,399          97,399          95,399
    EW DEVELOPMENT..............................          88,774          88,774         118,275         119,275
    MILSTAR LDR/MDR SAT COMM....................         607,248  ..............         607,248         607,248
    ARMAMENT/ORDNANCE DEVELOPMENT...............          10,853          18,853          10,853          18,853
    SUBMUNITIONS................................          26,680          12,680          28,680          28,680
    AIR BASE OPERABILITY........................           9,580           5,606           9,580           5,606
    JOINT DIRECT ATTACK MUNITION................          84,995          84,995          84,995          67,583
    SYSTEMS SURVIVABILITY (NUCLEAR EFFECTS).....           2,786  ..............           2,786  ..............
    JOINT STANDOFF WEAPONS SYSTEMS..............          48,966          48,966          80,966          55,966
    RANGE IMPROVEMENT...........................          18,301          18,301           5,101          14,101
    COMPUTER RESOURCE TECHNOLOGY TRANSITION                                                                     
     (CRITT)....................................           6,621          21,121          15,121          21,121
    JOINT SURVEILLANCE/TARGET ATTACK RADAR                                                                      
     SYSTEM (JSTART)............................         190,408         190,408         191,908         175,408
    UHF SATELLITE COMMUNICATIONS................          20,879  ..............          20,879          20,879
    C-130J......................................  ..............           5,000  ..............           5,000
    ICBM--EMD...................................  ..............  ..............         148,048         138,048
    THREAT SIMULATOR DEVELOPMENT................          40,075          45,075          45,664          41,075
    MAJOR T&E INVESTMENT........................          53,544          53,544          52,530          52,530
    NAVIGATION/RADAR/SLED TEST SUPPORT..........          26,023          30,023          29,123          30,023
    TEST AND EVALUATION SUPPORT.................         373,376         373,376         370,300         370,300
    DEVELOPMENT PLANNING........................           9,959           7,500  ..............           7,500
    MINUTEMAN SQUADRONS.........................         151,675         151,675  ..............  ..............
    DISTANT EARLY WARNING (DEW) RADAR STATIONS..           2,068           2,068          -1,932           2,068
    F-111 SQUADRONS.............................          11,019          11,019           1,504           4,671
    F-16 SQUADRONS..............................          93,157          56,057         138,657         138,657
    F-15E SQUADRONS.............................         116,562         116,562         108,562         108,562
    MANNED DESTRUCTIVE SUPPRESSION..............          38,422          38,422          37,422          37,422
    TRI-SERVICE STANDOFF ATTACK MISSILE.........          81,063  ..............         218,600         135,600
    ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE                                                                    
     (AMRAAM)...................................          70,715          70,715          59,015          70,715
    AF TENCAP...................................          21,183          13,402          21,183          21,183
    THEATER BATTLE MANAGEMENT (TBM) C41.........          33,957          33,957          25,957          29,957
    ADVANCED PROGRAM EVALUATION.................         105,077         105,077         109,507         114,416
    USAF WARGAMING AND SIMULATION...............          19,110          14,110          19,110          14,110
    MISSION PLANNING SYSTEMS....................          14,483           9,483          14,483          14,483
    THEATER MISSILE DEFENSES....................          79,302          27,302          17,002          27,302
    DEFENSE SATELLITE COMMUNICATIONS SYSTEM.....          30,876  ..............          30,876          14,876
    MINIMUM ESSENTIAL EMERGENCY COMMUNICATIONS                                                                  
     NETWORK (ME)...............................          40,795          35,795          34,195          34,195
    INFORMATION SYSTEMS SECURITY PROGRAM........          10,293          11,793          10,293          11,793
    SATELLITE CONTROL NETWORK...................         101,146          15,000         101,146          83,000
    AIR TRAFFIC CONTROL, APPROACH, AND LANDING                                                                  
     SYSTEM (ATC)...............................           7,566           7,566  ..............           7,566
    MEDIUM LAUNCH VEHICLES......................          21,042  ..............          21,042          21,042
    NATIONAL AIRSPACE SYSTEM (NAS) PLAN.........          30,980          20,980          30,980          30,980
    UPPER STAGE SPACE VEHICLES..................           3,663  ..............           3,663           3,663
    TITAN SPACE LAUNCH VEHICLES.................         161,096  ..............         153,396         153,396
    ARMS CONTROL IMPLEMENTATION.................           6,456           6,456           3,456           3,456
    DEFENSE METEOROLOGICAL SATELLITE PROGRAM                                                                    
     (DMSP).....................................          21,135  ..............          21,135          21,135
    NAVSTAR GLOBAL POSITIONING SYSTEM (SPACE AND                                                                
     CONTROL S).................................          51,125  ..............          36,425          36,425
    NCMC--TW/AA SYSTEM..........................         100,520         133,200         100,520         133,020
    SPACETRACK..................................          34,396          37,396          53,196          54,896
    DEFENSE SUPPORT PROGRAM.....................          76,351  ..............          67,359          67,359
    NUDET DETECTION SYSTEM......................          10,140  ..............          10,140          10,140
    KC-135S.....................................           5,160           5,160          17,160          23,260
    INDUSTRIAL PREPAREDNESS.....................  ..............          96,000          48,260          84,317
    INTERNATIONAL ACTIVITIES....................           3,436           3,436           1,910           1,910
    FEDERAL WORKFORCE RESTRUCTURING ACT.........  ..............  ..............             900             900
    CLASSIFIED PROGRAMS.........................       2,822,472       2,930,972       2,809,512       2,646,512
    ALARM DEM/VAL PROTOTYPE.....................  ..............  ..............          22,500  ..............
    SPECIAL ACTIVITIES..........................  ..............  ..............        -115,900  ..............
    FOREST GREEN................................  ..............  ..............            -500  ..............
    GENERAL REDUCTION, UNIVERSITY RESEARCH......  ..............         -92,000  ..............         -18,456
    CIVILIAN PERS PAY RAISE & LOCALITY PAY......  ..............           7,700  ..............           4,300
    CIVILIAN PERSONNEL UNDERSTRENGTH............  ..............         -15,400          -5,972          -9,100
    EVOLVED ELV FAMILY..........................  ..............  ..............  ..............          30,000
    REUSABLE LAUNCH VEHICLE TECHNOLOGY..........  ..............  ..............  ..............          30,000
    SPACE-BASED INFRA-RED ARCHITECTURE..........  ..............  ..............  ..............         221,000
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                       [In thousands of dollars]             Conference
                                                              Agreement
Air Force:
  Aerospace Propulsion...........................................74,406
    Coal based jet fuel..........................................+1,000
    SCRAMJET propulsion..........................................-4,100
  Aerospace Avionics.............................................67,957
    Budget execution................................................  0
    Laser based jamming..........................................-1,287
    Laser power source.............................................-650
    Advanced processor...........................................-3,642
    Inertial sensor.................................................  0
    Low cost radar.................................................-592
    Laser radar....................................................-545
  Advanced Weapons..............................................159,202
    Thermionics.................................................+10,000
    Integrated HP rocket.........................................+5,000
    Maui supercomputer..........................................+13,000
    HAARP........................................................+5,000
    AEOS spectograph............................................(1,300)
  Advanced Materials for Weapons Systems.........................20,400
    NCIC...........................................................+500
  Advanced Avionics for Aerospace Vehicles.......................28,500
    AARGM........................................................+1,500
    Target attack/recognition....................................-7,500
  Aerospace Propulsion/Power.....................................37,345
    Transfer to JAST................................................  0
    Aerospace Power Technology (to JAST).........................-3,317
    VFDR propulsion.................................................  0
  Advanced Fighter Technology Integration.........................9,100
    Common mobility aircraft cockpit.............................-5,000
    WVR VISTA upgrade...............................................  0
    Innovative aero controls (to JAST)...........................-4,000
  Advanced Avionics Integration..................................17,205
    Passive non-coop ID (background acoustics).....................+334
    Avionics integration technology.................................  0
    Modular avionics subsystems..................................-7,629
  Space/Missile Rocket Propulsion................................16,800
    Edwards AFB tech demo........................................+2,500
    Cryogenic propulsion............................................  0
    Environmentally acceptable propellants.......................+2,500
  Conventional Weapons Technology................................31,250
    Advanced Munitions Control.....................................-500
    Counterproliferation Ordnance..................................-250
    LOCASS/LORISK...................................................  0
    Velocity Augmented Munition [Note: The conferees deny funds for 
      the velocity augmented munitions and counterproliferation 
      ordnance projects and suggest that these efforts be considered 
      for funding in the counterproliferation initiative recommended 
      in the Defense-wide RDT&E appropriations account.].........-3,100
  Advanced Radiation Technology..................................96,500
    Excimer laser...............................................+20,000
    Field laser radar demonstration.............................+17,000
  F-22........................................................2,351,000
    Award fees..................................................-17,800
    ECO allowance...............................................-61,300
    General Reduction...........................................-31,049
  Aircraft Engine CIP............................................95,399
    B-2..........................................................-1,000
    F-111........................................................-1,000
    C-130 propeller.................................................(0)
  EW Development................................................119,275
    EF-111 SIP...................................................+6,400
    MAWS.........................................................+3,440
    OBEWS.......................................................+20,661
  JSOW...........................................................55,966
    SFW integration.................................................  0
    SMART ejection racks.........................................+5,000
    1760 protocols...............................................+2,000
  Computer Resource Technology Transition........................21,121
    CARDS........................................................+6,000
    IMIS-CAMS/REMIS/TICARRS......................................+8,500
  JSTARS........................................................175,408
    NATO JSTARS.....................................................  0
    General reduction [Note: The conferees direct that no funds 
      available to the Defense Department from any source during 
      fiscal year 1995 may be obligated for NATO JSTARS development 
      activities without prior consultation with, and notification 
      to, the Committees on Appropriations.]....................-15,000
  Threat Simulator Development...................................41,075
    REDCAP Upgrade...............................................+5,000
    AFEWES.......................................................-4,000
    HAVE NOTE.....................................................(912)
    ROME AMF....................................................(2,000)
  Spaced-Base Infrared Architecture.............................221,000
    Heritage Sensor............................................+111,000
    Brilliant Eyes.............................................+120,000
    Cobra Brass..................................................+5,000
    General Reduction...........................................-15,000
  F-111 Squadrons.................................................4,671
    Stores Management............................................-9,765
    Safety Modifications..........................................3,417
    Digital Flight Control System...............................(2,500)
    Back Injury Reduction Program..................................(50)
  TBM C41........................................................29,957
    CTAPS........................................................-2,000
    C2IPS........................................................-2,000
  Theater Missile Defense........................................27,302
    BPI.........................................................-52,000
    Transfer from ARPA..............................................  0
    High Gear.......................................................  0
    TACCSF......................................................(5,500)
  Information Systems Security Prgm..............................11,793
    Relational Database Mgt. Sys.................................+1,500
  Spacetrack.....................................................54,896
    HAVE STARE...................................................+3,000
    AEOS development............................................+12,100
    AEOS instrumentation.........................................+5,200
    Transfer to NASA...............................................+200
  KC-135.........................................................23,260
    Multipoint development.......................................15,100
    Transfer from APAF/Receptacles...............................+3,000
  Industrial Preparedness........................................84,317
    NCMS.......................................................(20,000)
    Computer Assisted Technology Transfer--Oklahoma City ALC....(7,600)
    Repair Technology...........................................(1,000)
    Ductile Iron................................................(2,000)
    Blade Tip Repair............................................(2,500)
    Spare Parts/Procurement.....................................(1,500)
    PDES STEP for composites (PAS-C)............................(2,200)

                 air force strike airpower requirements

       The conferees agree with the Senate's direction that the 
     Institute for Defense Analysis conduct a comprehensive review 
     of Air Force strike airpower requirements, plans, and 
     alternatives. The conferees further direct that the focus of 
     the required study include: (1) The impact of the eventual 
     retirement of F-111 aircraft on the Air Force's ability to 
     conduct interdiction missions; (2) the outlook for the 
     interdiction force, assuming an eventual F-111 retirement and 
     the expected attrition of F-15E and F-117 aircraft, and the 
     ability of that force to meet planned requirements; (3) the 
     ability of existing aircraft (F-117, F-15E, F-16) to perform 
     the mission currently being performed by the F-111--that is, 
     the delivery of precision-guided munitions in the long-range, 
     interdiction role; (4) the costs and operational 
     effectiveness of continuing to operate the F-111 aircraft for 
     the long-range interdiction role through the end of their 
     expected service life; and (5) the possible need for 
     additional aircraft to fulfill the interdiction role.


                               high gear

       The conferees do not agree with the Senate's direction 
     regarding High Gear projects. However, the conferees direct 
     that the Air Force comply strictly with all Congressional 
     directions and guidance, including reprogramming procedures, 
     with respect to new starts and funding reallocations.


            software design for reliability and reuse (sdrr)

       The conferees are concerned with the delay in release of 
     funds appropriated in fiscal year 1994 for the Air Force's 
     ongoing Software Design for Reliability and Reuse program 
     initiated in fiscal year 1993 through funds provided in the 
     service's Computer Resources and Management Technology 
     program element. The conferees direct the Air Force to 
     release the fiscal year 1994 funds to continue this program 
     under contract F19628-93-C-0069 as originally intended. The 
     conferees expect this release to occur not later than 
     November 1, 1994.


                       aerospace flight dynamics

       The conferees agree to provide $60,946,000 for Aerospace 
     Flight Dynamics as recommended by the Senate. An increase of 
     $1,500,000 has been provided for a joint Air Force/Advanced 
     Research Projects Agency project to develop approaches for 
     improving the Air Force's ability to accurately drop sensors 
     and cargo from aircraft. The conferees direct that the 
     $1,500,000 increase shall be transferred to the appropriate 
     program office at Eglin Air Force Base within 30 days of 
     enactment of this Act.


                      Hypersonic Flight Technology

       The conferees agree to provide $45,000,000 for the new Air 
     Force hypersonic flight technology program. The conferees 
     direct that $35,000,000 of these funds may not be obligated 
     until the Secretary of the Air Force certifies that the 
     proposed Hypersonic Systems Technology (HySTP) program is 
     fully funded in the Future Years Defense Program (FYDP) for 
     fiscal years 1996-2001. Furthermore, the conferees agree with 
     the Senate direction to provide a plan outlining the Air 
     Force's objectives for FY 1995 and future years hypersonic 
     funds, certifying that future budgets will sustain the 
     defined program, and providing a detailed breakdown of the 
     annual and total cost of the FY 1995 activities.


               aerospace propulsion and power technology

       The conferees agree to provide $37,345,000 for Aerospace 
     Propulsion and Power Technology. Within that amount, the 
     conferees agree to allocate $4,914,000 for the variable flow 
     ducted rocket (VFDR) propulsion project. However, the 
     conferees direct that none of the funds may be obligated 
     until 30 days after the results of the ongoing cost-and-
     operational effectiveness analysis (COEA) for the advanced 
     medium-range air-to-air missile (AMRAAM) pre-planned product 
     improvement (P3I) program Phase 3 have been reported to the 
     Committees on Appropriations.
       The conferees further direct that the funds also may not be 
     obligated until the Secretary of the Air Force certifies that 
     continuation of the VFDR project is required for successful 
     achievement of the objectives of the AMRAAM P3I Phase 3. Any 
     certification, if submitted, should include the results of 
     the COEA. The conferees also direct that the COEA consider 
     updated information about threats validated by the 
     intelligence community.


                        C3 Advanced Development

       The conferees agree to provide $10,925,000 for C3 Advanced 
     Development, an increase of $1,000,000 only for a decision 
     support technology demonstration to be conducted by the Rome 
     Laboratory. The conferees have also allocated $6,000,000 
     within the ARPA High Performance Computing (HPC) project to 
     provide the total funds necessary for this activity.


                joint advanced strike technology (jast)

       The conferees agree to provide $186,391,000, of which 
     $86,354,000 is in the Air Force appropriation and 
     $100,037,000 is in the Navy appropriation. Within the total 
     program amount, $38,735,000 is only for the ASTOVL program, 
     and within that amount $10,000,000 is only for the direct 
     lift project.


             icbm modernization (demonstration/validation)

       The conferees agree that the expenditure of the funds 
     approved for the Reentry System Launch Program (RSLP) project 
     shall be limited to suborbital purposes. It is the conferees' 
     expectation that these funds shall be utilized in a manner 
     consistent with the National Space Transportation Policy 
     (PDO/NSTC-4) of August 5, 1994.


                                  c-17

       The conferees agree to provide $190,154,000 for C-17, a 
     reduction of $31,300,000 to the budget request. The conferees 
     direct that no research and development funds may be 
     obligated to expand the C-17 flight test program beyond the 
     number of presently programmed flight test months unless the 
     prior approval of the Appropriations Committees is obtained 
     by the Department of the Air Force.


                                f-22 emd

       The conferees agree to provide $2,351,000,000 for the F-22. 
     The conferees do not agree to the Senate recommendation to 
     restrict obligation of funds until a report on the Test and 
     Evaluation Master Plan is submitted to Congress. However, the 
     conferees direct that the report mandated by the Senate be 
     submitted by March 1, 1995.
       The conferees believe that the Air Force should undertake 
     an evaluation of new, cost effective techniques and systems 
     to improve RCS testing technologies, utilizing ultra wide 
     band holographic radar imaging unit systems. The conferees 
     direct that the Air Force submit a report on this evaluation 
     to the Committees on Appropriations by March 1, 1995.


                     electronic warfare development

       The conferees agree with the Senate recommendations with 
     respect to fiscal year 1994 and fiscal year 1995 funds for 
     the EF-111 System Improvement Program (SIP). In addition to 
     the Senate recommendations, the conferees have provided the 
     following additional funds to the fiscal year 1995 budget 
     request for the EF-111 SIP project: +$700,000 to begin 
     acquisition of a system integration test station (SITS) 
     trouble-shooting capability and +$300,000 for installation, 
     integration, and test of a radio frequency (RF) scenario 
     generator. The conferees further direct that $500,000 of 
     fiscal year 1994 funds be used to acquire the RF scenario 
     generator for the EF-111 SIP.
       The conferees also strongly support the Senate's 
     recommendations with respect to the on-board electronic 
     warfare simulator (OBEWS) project.


                     armament/ordnance development

       The conferees direct that none of the funds provided for 
     the conventional air-launched cruise missile (CALCM) anti-
     armor variant may be obligated until the Air Force reports to 
     the Committees on Appropriations on the programmatic 
     objectives, schedule, technical risks, annual and total costs 
     of the project, and whether a validated military requirement 
     exists for the weapon.


                                kc-135's

       The conferees strongly support the Senate's recommendations 
     with respect to the multi-point refueling project and the 
     refueling receptacles project. The conferees have added 
     $6,100,000 more to the multi-point activity to fully fund the 
     revised budget estimate. As with the multi-point project, the 
     conferees direct the Air Force that funds provided for the 
     receptacles project also are available for no other purpose, 
     and the service is directed not to reprogram any of these 
     funds away from the receptacles activity. The conferees 
     further direct that the Defense Department include full 
     funding for development, procurement, and deployment of the 
     receptacles capability in the fiscal years 1996-2001 Future 
     Years Defense Program. Due to the high priority which they 
     place on both the multi-point and receptacles projects, the 
     conferees also relieve the Secretary of the Air Force from 
     the obligation to comply with the certification requirement 
     included in the Joint Explanatory Statement of the Committee 
     of Conference on the Department of Defense Appropriations 
     Act, 1994. The conferees direct the Air Force to execute both 
     programs without any delay.
       The conferees also are aware of alternative proposals for 
     meeting the multi-point requirements. The conferees 
     understand that these alternatives, if operationally and 
     technically suitable and able to meet schedule and military 
     requirements, may be considered, should the Air Force hold a 
     full and open competition for the project.


                           range improvement

       The conferees agree to provide $14,101,000 for Range 
     Improvement, specifically only for the Nellis Air Combat 
     Training System (NACTS). Within this amount, the conferees 
     direct that the computer upgrades receive first priority. The 
     conferees direct that funds provided for activities other 
     than the computer upgrades may not be obligated until the Air 
     Force submits an implementation plan to the Congressional 
     defense committees. The plan should identify all procurement 
     and development activities, provide the associated costs of 
     each activity, clearly identify all NACTS components and 
     efforts that will not be compatible with the Joint Tactical 
     Combat Training System (JTCTS), and provide the rationale in 
     each case for developing incompatible systems which will 
     become obsolete when the joint program, JTCTS, is fielded.


                          Development Planning

       The conferees direct that none of the funds provided may be 
     used for the proposed Counterair, Future Electronic Warfare, 
     and Space Control studies. The conferees note that a study on 
     Cheyenne Mountain architecture is a more urgent requirement 
     than any of these. The conferees further agree that the Air 
     Force should not--without prior consultation with, and 
     notification to, the Committees on Appropriations--reprogram 
     any funds into this program element, reallocate funds between 
     studies, or begin any new study.


   F-15 Manned Destructive Suppression of Enemy Air Defenses (MDSEAD)

       The Conferees recommend, $37,422,000 only to continue the 
     development of systems for follow-on MDSEAD. The Air Force's 
     SEAD Cost and Operational Effectiveness Analysis and the F-15 
     SEAD Demonstration/Validation and HARM Integration programs 
     all provide substantial objective data for the Congress and 
     the Defense Department to consider in planning and budgeting 
     for future SEAD programs. The Conferees direct the Air Force 
     to execute the MDSEAD Demonstration/Validation program that 
     was planned in the fiscal year 1995 budget request.


              tri-service standoff attack missile (tssam)

       The conferees recognize the unique, potential war-fighting 
     capabilities of TSSAM as the Defense Department's most 
     sophisticated stealthy, conventional standoff weapon. 
     Accordingly, the conferees approve the budget request for the 
     Navy's continued participation in the program. Funds also are 
     provided for Army costs to terminate its efforts in the 
     program.
       The conferees also agree to provide $135,600,000 for the 
     Air Force's TSSAM activities. That amount does not include 
     $43,000,000 sought for a possible request for equitable 
     adjustment (REA) from the contractor which the Air Force does 
     not think is owed and does not know when or whether such a 
     request will be submitted. Another $40,000,000 proposed by 
     the Air Force for a cost reduction initiative is not provided 
     since the results of a new, special TSSAM affordability 
     review now underway are not available and need to first be 
     communicated to the Congressional defense committees. The 
     affordability review is intended to identify major costs 
     savings for the program.
       The conferees strongly support the objective of achieving 
     significant cost reductions in the TSSAM program, and 
     understand the requirement for the payment of any valid, 
     fully adjudicated request for equitable adjustment. 
     Therefore, the conferees direct that the $86,184,000 in 
     excess, fiscal year 1994 TSSAM procurement funds be retained 
     only as possible reprogramming sources for these TSSAM 
     program purposes. The Defense Department is encouraged to 
     submit any such reprogramming requests expeditiously after 
     the Air Force receives the results of the affordability 
     review and after agreement is reached on any validated, 
     adjudicated REA.
       The conferees direct that the results of the special 
     affordability review be submitted not later than February 1, 
     1995, along with any recommendations by the Under Secretary 
     of Defense (Acquisition and Technology) as to which specific 
     cost reduction actions will be implemented.


              airborne warning and control system (awacs)

       The conferees agree with the Senate's recommendations with 
     respect to upgrades for the U.S. and NATO AWACS aircraft. 
     However, the conferees agree that these restrictions do not 
     apply to non-major, low cost activities, such as reliability 
     and maintainability efforts and man-machine interface (MMI) 
     improvements. The restrictions do apply to the initiation of 
     any major development project, including the beginning of 
     contractor risk reduction studies for such purposes.
       The conferees also do not agree to the restriction on 
     obligations proposed by the House for cooperative engagement. 
     The conferees direct the Chief of the Joint Chiefs and Staff 
     to submit a report to the Congressional Defense Committees by 
     February 1, 1995 on the Defense Department's plan to 
     incorporate cooperative engagement capability on the AWACS 
     fleet.


                               spacetrack

       The conferees agree with the Senate direction requiring a 
     review led by the National Aeronautics and Space 
     Administration of the Advanced Electro-Optical System (AEOS) 
     telescope. The conferees have provided an increase of 
     $200,000 in this program element only to fund this review and 
     direct that these funds shall be transferred to NASA within 
     thirty days of enactment of this Act.


                             space programs

       The conferees agree: (a) to fully fund the STEP-3 satellite 
     attack warning and assessment flight experiment in the Space 
     Test Program; (b) to delete $16,000,000 from the Defense 
     Satellite Communications System due to termination by DOD of 
     the beam forming network modifications; (c) that the prior 
     approval of the Committees on Appropriations must be obtained 
     before obligating any funds for enhancements or modernization 
     of the Air Force Satellite Control Network, that $60,000,000 
     be withheld from obligation pending receipt of that approval, 
     and that none of the reduction to the AFSCN shall be assessed 
     against any activities or upgrades associated with SCN 
     installations in the state of Hawaii; (d) not to close one 
     Titan IV launch pad on the east coast in fiscal year 1995 as 
     proposed by the House; (e) that $100,000,000 provided for the 
     space-based infra-red Heritage Sensor satellite program not 
     be obligated until the Space Acquisition Executive presents a 
     detailed plan addressing requirements, cost, schedule, and 
     technical risks, and consults with and notifies the 
     Committees on Appropriations; (f) that the $30,000,000 
     provided for reusable space launch vehicle technology should 
     be included in program element 0603401F; and (g) that the 
     funds provided for the Have Gaze project may only be used for 
     continuing the basic technology efforts and may not be used 
     for initiating or conducting any flight test program.


                   space-based infrared architecture

       The conferees also direct the Department of Defense to 
     conduct an independent assessment of areas evaluated under 
     the Space-Based Infrared Review panel. The review should 
     provide a detailed assessment of the Heritage sensors ability 
     to meet the current and objective tactical warning and attack 
     assessment (TW/AA) operational requirements; the Heritage 
     sensor modifications required and the associated technical 
     risk; the cost of the associated heritage sensor modification 
     efforts; the estimated cost of an early warning satellite 
     based on the Heritage sensor; and the merits, alternate 
     approaches, and schedule impacts of conducting a 
     demonstration or prototyping effort for the modified Heritage 
     sensor. The conferees believe that this review should be 
     conducted by a party without excessive linkages to the Air 
     Force; the Intelligence community; the Alert, Locate and 
     Report Missiles (ALARM) program; or the Brilliant Eyes 
     program. The conferees direct all elements of the DOD to 
     cooperate fully and provide all information necessary to 
     conduct this review. The conferees further direct that this 
     review be completed by February 15, 1995.


                                have yak

       Have Yak addresses a serious deficiency in countering the 
     proliferating cruise missile threat. The conferees urge the 
     Air Force, under the USAF Theater Air Defense program, to 
     move forward to complete the design, build, acceptance 
     testing, and demonstration of the Have Yak systems.
       Amendment No. 97: Restores language proposed by the House 
     and stricken by the Senate which provides funds for seismic 
     research; restores language proposed by the House and 
     stricken by the Senate which provides funds for the National 
     Center for Manufacturing Sciences; and inserts language 
     proposed by the Senate on the Air Force Maui Space 
     Surveillance Site.
       Amendment No. 98: Deletes language proposed by the Senate 
     providing funds for the F-111 program.

        Research, Development, Test and Evaluation, Defense-Wide

       Amendment No. 99: Inserts a header ``(Including Transfer of 
     Funds)'' proposed by the Senate.
       Amendment No. 100: Appropriates $9,099,387,000 instead of 
     $9,419,955,000 as proposed by the House and $8,922,649,000 as 
     proposed by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                                Budget        House       Senate      Conference
----------------------------------------------------------------------------------------------------------------
Research Development Test & Eval Defwide:                                                                       
    In-House Laboratory Independent Research...............  ............  ...........        2,368        2,368
    Defense Research Sciences..............................       87,706        87,706       90,706       90,706
    University Research Initiatives........................      232,492       234,992      227,492      253,326
    Focused Research Initiatives...........................       20,000        12,000  ...........        6,000
    Computing Systems and Communications Technology........      419,608       425,608      383,558      400,912
    Tactical Technology....................................      111,343       126,343      101,243      128,343
    Integrated Command and Control Technology..............       67,950        92,950       67,950       82,950
    Materials and Electronics Technology...................      224,828       241,828      242,853      260,853
    Defense Nuclear Agency.................................      231,978       230,978      221,978      225,978
    National Missile Defense...............................  ............  ...........      400,000      400,000
    PAC-3 Risk Reduction...................................  ............  ...........  ...........       74,000
    Navy Upper Tier........................................  ............  ...........  ...........       75,000
    Corps Sam..............................................  ............  ...........  ...........       15,000
    Boost Phase Intercept..................................  ............  ...........  ...........       40,000
    Follow on Technology...................................  ............  ...........      297,737      225,037
    Follow on TMD Systems..................................  ............  ...........      436,814      381,931
    Ballistic Missile Defense Technology...................      769,993       444,283  ...........  ...........
    Theater Missile Defenses...............................      479,131       581,381  ...........  ...........
    Management and Support.................................  ............  ...........      197,996      197,996
    Ter Missile Defense (DEM/VAL)..........................   (1,071,283)      976,050  ...........  ...........
    Ground Based Radar.....................................      173,200   ...........      193,200      173,200
        Patriot............................................       69,240   ...........      378,440      286,440
    Thaad..................................................      495,690   ...........      465,690      470,000
    Navy Lower Tier........................................  ............  ...........      149,056      140,000
    Hawk System BM/C3......................................       26,800   ...........       26,800       26,800
    BM/C3I.................................................       33,500   ...........       13,122       21,231
    Ballistic Missile Defense Technology...................      106,460        73,460  ...........  ...........
    Theater Missile Defenses...............................      217,755       217,755  ...........  ...........
    Research and Support Activities........................      215,233       198,833  ...........  ...........
    Counterterror Technical Support........................        6,321         6,321        6,321        8,321
    Joint DOD-DOE Munitions Technology Development.........       14,415        24,415       19,496       24,415
    Experimental Evaluation of Major Innovative Technology.      609,331       649,817      493,164      683,971
    Advanced Submarine Technology..........................       25,261        38,761       25,261       37,428
    Small Business Defense Conversion Guaranteed Loans.....  ............  ...........       27,400  ...........
    Counter Proliferation..................................  ............  ...........       80,000       60,000
    Defense Reinvestment...................................      106,600   ...........  ...........       73,700
    Defense Reinvestment...................................      625,000   ...........      625,000      550,000
    Manufacturing Technology...............................       97,057   ...........       21,900  ...........
    Verification Technology Demonstration..................       41,063        41,063       41,063       36,063
    Strategic Environmental Research Program...............      111,907        96,907      111,907       61,907
    Biological Defense--Advanced Development...............  ............  ...........  ...........       52,895
    Computer Aided Logistics Support.......................       13,090        15,590       13,090       15,590
    Cooperative DOD/VA Medical Research....................  ............       30,000       20,000       50,000
    Manufacturing Technology...............................      346,129       411,229      333,154      382,629
    Advanced Simulation....................................       20,937        20,937       30,937       30,937
    Maritime Technology Office.............................  ............       12,000  ...........       12,000
    Electric Vehicles......................................  ............       10,000       15,000       15,000
    Advanced Concepts Technology Demonstration.............       50,000   ...........       19,000       32,100
    High Performance Computing Modernization Program.......      183,048        53,048      183,048       73,048
    Consolidated DOD Software Initiative...................  ............       27,500  ...........       27,500
    Joint Wargaming Simulation Management Office...........       68,117        28,117       55,003       55,003
    Physical Security Equipment............................       21,409        24,888       19,809       24,888
    NATO Research and Development..........................       60,240        20,240       35,290       35,290
    Innovative Environmental Security Technology Systems P.       15,000        15,000       35,000       44,500
    Joint Tactical Information Distribution System (JTIDS).       84,409        11,100       84,409       84,409
    Technical Studies, Support and Analysis................       40,501        30,501       24,647       24,647
    Foreign Material Acquisition and Exploitation..........       49,900        49,900      199,900      104,900
    Defense Support Activities.............................       15,234        17,734       12,234       14,734
    Commercial Communications..............................  ............       10,000  ...........       10,000
    Industrial Preparedness................................  ............       25,000  ...........       19,650
    WWMCCS/Global Command and Control System...............        6,766         6,766  ...........  ...........
    DMA Mapping, Charting, and Geodesy (MC&G) Production S.       67,008        57,008       58,565       57,008
    Defense Airborne Reconnaissance Program................      528,290       609,290      544,980      663,609
    C3I Intelligence Programs..............................       22,515        22,515        6,515       16,515
    Special Operations Technology Development..............        7,560         5,560        6,160        5,560
    Special Operations Advanced Technology Development.....       15,549        13,549       15,549       13,549
    Special Operations Tactical Systems Development........      167,356       164,766      153,286      153,484
    Cryptologic Activities.................................  ............  ...........       13,700  ...........
    General Defense Intell Program.........................  ............  ...........        2,000  ...........
    Classified Programs....................................    1,139,099     1,059,287    1,139,099    1,154,099
    Satcom Ground Environment..............................  ............       95,191  ...........  ...........
    Satellite Communications...............................  ............       47,115  ...........  ...........
    Defense Meteorological Satellite Program (DMSP)........  ............       14,639  ...........  ...........
    Advanced Spacecraft Technology.........................  ............       64,200  ...........  ...........
    Space Systems Environmental Interactions Technology....  ............        4,200  ...........  ...........
    Space Test Program.....................................  ............       62,084  ...........  ...........
    Advanced Milsatcom.....................................  ............       35,000  ...........  ...........
    Defense Meteorological Satellite Program Block 6.......  ............        7,601  ...........  ...........
    Satellite Systems Survivability........................  ............        8,531  ...........  ...........
    Brilliant Eyes.........................................  ............      120,000  ...........  ...........
    Advanced Space Based TW/AA (DEM/VAL)...................  ............      330,000  ...........  ...........
    Milstar LDR/MDR Satellite Communications...............  ............      607,248  ...........  ...........
    UHF Satellite Communications...........................  ............       20,879  ...........  ...........
    Defense Satellite Communications System................  ............       30,876  ...........  ...........
    Medium Launch Vehicles.................................  ............       21,042  ...........  ...........
    Upper Stage Space Vehicles.............................  ............        3,663  ...........  ...........
    Titan Space Launch Vehicles............................  ............        4,000  ...........  ...........
    Defense Meteorological Satellite Program (DMSP)........  ............       21,135  ...........  ...........
    Navstar Global Positioning System (Space and Control S)  ............       51,125  ...........  ...........
    Defense Support Program................................  ............       47,351  ...........  ...........
    Nudet Detection System.................................  ............       10,140  ...........  ...........
    Space Launch Initiative................................  ............      140,000  ...........  ...........
    Disaster Planning and Preparedness.....................  ............  ...........        5,000  ...........
    General Reduction, University Research.................  ............                            
                                                                               430,000  ...........  
                                                                                                          86,492
    Civilian Pers Pay Raise & Locality Pay.................  ............        1,100  ...........          500
    Civilian Personnel Understrength.......................  ............                            
                                                                                   700               
                                                                                              1,800  
                                                                                                           2,600
    Travel.................................................  ............  ...........  ...........  
                                                                                                          50,000
Director of Test & Eval Defense:                                                                                
    Central Test and Evaluation Investment Development                                                          
     (CT&EID)                                                    115,318       115,318       88,176      101,826
----------------------------------------------------------------------------------------------------------------

                explanation of project level adjustments

                       [In thousands of dollars]             Conference
                                                              agreement
Defense-wide:
University research initiatives.................................253,326
  Adaptive optics..................................................+834
  EPSCOR........................................................+20,000
  University reduction..............................................  0
Computing systems and communications technology.................400,912
  Intelligent metacomputing......................................+6,000
  Simulation based training......................................-3,900
  Maui HPCC......................................................+7,000
  Rome Lab......................................................(6,000)
  RTAP..............................................................  0
  Counter proliferation.........................................-25,400
           ASSET
+1,750
           MADE
-7,000
           Hybrid signal processing
(2,083)
           Test ban verification
-3,000
           Existing ARPA Nuclear Non-Proliferation Technology 
     Initiatives
+5,854
     Tactical technology
128,343
           Simulation based design
+10,000
           CEROS
+7,000
           Demining
-10,000
           Law Enforcement Technology
+10,000
     Integrated command and control technology
82,950
           General increase
+15,000
           High definition camera
(4,000)
           Dry etching equipment
(3,500)
           TFEL/AMEL
(15,000)
     Materials and electronics technology
260,853
           Aluminum beryllium alloys
+2,000
           Infrared materials producibility
+14,000
           Metal matrix
+17,000
           Process synthesis
-11,100
           Microballoon
+4,125
           CVD diamond materials
+5,000
           Hi-temp superconducting materials
+5,000
     Defense nuclear agency
225,978
           General reduction
-10,000
           Arms control
0
           ETC gun
-4,000
           LP, HP microwave
+2,000
           Bioenvironmental hazards
+3,000
           NTS tech transfer
+3,000
     Joint DoD-DOE munitions technology development
24,415
           Neutron generators
+10,000
           Lethality enhancement studies
0
     Experimental evaluation of major innovative technology
683,971
           ASTOVL to JAST
-20,014
           UVA reprogramming request
0
           Carbonate fuel cells
+5,000
           MSAG generic antennae
+6,000
           Tactical support satellite
+55,000
           IFSAR
+7,000
           Phosphoric acid fuel bus prototype
+12,000
           Mobile offshore basing and Quay causeway development
+15,000
           Ocean reconfigurable craft, advanced (ORCA)
+2,000
           Low emission boiler demonstration project Note: funded 
     in another line
0
           System for Effective Control of Urban Environmental 
     Security (SECURES)
+2,000
           Deep ocean relocation
+1,667
           Integrated process/product design
-600
           Mountain Top
+6,000
           GPS guidance
-3,750
           Common grid
-3,000
           Battle management
-4,000
           Instrumented real systems
-6,000
           Synthetic forces
0
           Synthetic environments
0
           C2 info
-8,500
           Low cost radar
-10,000
           IUGS
-4,800
           Warbreaker CMT
-8,000
           MUSTRS
0
           Classified
0
           Virtual brigade
+19,000
           Classified
-20,463
           LMT
+4,000
           Casting emissions
+12,000
           Military IDs/digital imaging
+1,000
           Law enforcement
+20,000
           Thermovoltaics (TPV)
+2,000
           Speakeasy multifunction radio [Note: The conferees 
     direct the Army and the Navy to fully fund their speakeasy 
     activities at the respective budget request amounts]
(7,000)
           General Reduction
-1,500
     Advanced submarine technology
37,428
           Automated welding
+667
           Active structural control
+7,500
           Drug reduction research
+3,000
           Submarine surface tomography
+1,000
     Manufacturing technology
382,629
           Lithography
+50,000
           Coronary angiography
(2,200)
           UAV reprogramming
0
           MEMS
5,000
           MAFET
0
           Institute for Advanced Flexible Manufacturing Systems
+4,000
           Reconfigurable factory
-12,300
           IF fiber optic gyro
-1,700
           MCM fabrication
+1,500
     Consolidated DoD software initiative
27,500
           ADA 9x
+5,000
           Software reuse
+7,500
           Transfer from O&M
+10,800
           General increase
+4,200
     Innovative Environmental Security Technology Systems
44,500
           Demonstration programs
-4,500
           Climate change fuel cell
+18,000
           Bioremediation
+4,000
           Terra-vit
+3,500
           Natural gas liquifier
+3,500
           Plasma energy waste disposal system
+5,000
     Defense support activities
14,734
           Budget execution
-3,000
           Expert system/logistics info
+2,500
     Industrial preparedness (DLA)
+19,650
           Generalized emulation of microcircuits
(5,000)
           Military sewn products
(10,000)
           Combat ration CRAMTD)
(1,400)
           Center for tooling/precision pilot
(1,250)
     Defense airborne reconnaissance program
663,609
           Air Reconnaissance Low Transfer
+11,429
           COBRA BALL
+13,600
           TIER II [Note: Procures 5 aircraft and one 
     groundstation.]
+20,000
           Remotely operated sensor system
+3,000
           Electro-optical framing sensor
+8,000
           Multispectral imagery
+10,000
           ATARS datalink transfer [Note: The DARO is directed to 
     develop a datalink capability for the USMC's manned tactical 
     airborne reconnaissance program.]
+9,700
           Joint Tactical UAV Transfer
+14,500
           Joint Tactical UAV Test and Engineering Support
-3,410
           Commonality and interoperability
-3,500
           TIER III [Note: Transfer from ARPA]
+37,000
           MTI
+15,000
     Special operations technology development
5,560
           Counter proliferation
-1,400
           General reduction
-600
     Special operations tactical systems development
153,484
           Quite knight
+7,000
           JASORS Adv. radio
-4,700
           Special warfare combo craft
-3,800
           Gunships Avionics Trainer
-2,500
           Studies
-828
           SWPS
-7,900
           Avionics Architectures
-1,144
       Ballistic missile defense:
2,526,635
     Patriot
286,440
           Patriot PAC-3
69,240
           ERINT
0
           Patriot
217,200
     ERINT/patriot risk reduction
74,000
     THAAD
470,000
     Navy lower tier
140,000
     Navy upper tier
75,000
     Boost phase intercept program
40,000
     GBR-T
173,200
     Corps SAM
15,000
     HAWK upgrades
26,800
     Battle Mgt and C41 for TMD
21,231
           Battle Mgt and C41 for TMD
20,676
           C4I & Concepts Ops Anal
555
     National missile defense
400,000
           Passive sensors
24,500
           Radar
0
           Signal processing
7,100
           Discrimination
29,382
           Sensor studies and experiments
45,130
           Interceptor component technology
8,210
           KKV technology
120,000
           Computer engineering tech
2,500
           Communications engineering tech
500
           Survivability
0
           Materials and structure
5,000
           Ground-Based Radar
8,000
           BM/C3 technology
24,438
           Engineering/integration support
18,977
           Operations interface
1,530
           Test & Evaluation support
93,697
           Operational support
11,036
           Brilliant eyes
0
           Undistributed reduction to NMD
0
     Follow-on TMD
381,931
           Discrimination
58,119
           Sensor studies and experiments
22,471
           Interceptor component technology
0
           Sea based wide area (Navy upper tier)
0
           Surviability
3,000
           Lethality & target hardening
15,761
           ARROW/ACES
47,400
           Corps SAM
0
           Engineering/integration support
22,628
           Architecture & studies
39,031
           Operations interface
666
           Test & evaluation support
163,855
           Kauai test facility
4,000
           Operational support
0
           Arrow deployability [Note: The conferees provide a 
     total of $15,000,000 only for the Arrow Deployability 
     Program.]
5,000
           Follow-on Technologies
225,037
           Adv sensor tech
10,000
           Boost phase intercept--KE
0
           Chemical laser technology
30,000
           Combined BPI program
0
           ATP/FC Demo
12,500
           Power & power conditioning
10,000
           Materials and structure
2,000
           Innovative science & technology (IS&T)
41,510
           SBIR
39,896
           Undist reduction--IS&T, SBIR
0
           Environment, siting & facilities
5,606
           Architecture & studies
8,000
           Intelligence threat development
8,050
           Countermeasures integration
18,303
           System threat
6,890
           Test & evaluation support
9,400
           Operational support
16,020
           Technology transfer
2,862
           Russian-American observational satellites (RAMOS)
1,000
           U.S.-Israel Boost Phase Intercept
3,000
     Management and support
197,996
           Operational support
163,146
           Test & evaluation support
34,850


 historically black colleges and universities and minority institutions

       The conferees agree to provide $25,000,000, an increase of 
     $10,000,000 to the budget request. The conferees direct that 
     these funds be made available to historically black colleges 
     and universities and minority institutions, including 
     minority women's institutions specializing in science, math, 
     and engineering, and tribal colleges.


                          university research

       The conferees agree to provide a total reduction of 
     $200,000,000, rather than $900,000,000 as proposed by the 
     House. This reduction is distributed as follows: $13,752,000 
     is in the Army appropriation, $62,245,000 is in the Navy 
     appropriation, $18,456,000 is in the Air Force appropriation, 
     $86,492,000 is in the Defense-Wide appropriation, and 
     $19,055,000 associated with university laboratories is in 
     section 8054 of the bill.
       The conferees are concerned about overhead charged by 
     universities to Defense research contracts, particularly the 
     amount that DOD must pay annually to universities for 
     overhead (about $500,000,000) and the variability of overhead 
     rates applied to each institution's research projects. The 
     conferees direct the Secretary of Defense to submit a report 
     to the Congressional defense committees by February 1, 1995 
     which outlines the actions the Defense Department plans to 
     take to address these concerns.


            computing systems and communications technology

       The conferees agree to provide $400,912,000 for Computing 
     Systems and Communications Technology. The conferees direct 
     that up to $3,000,000 within the High Performance Computing 
     program be allocated to the computing architecture, data 
     management, automation and visualization efforts previously 
     budgeted under the Comprehensive Test Ban Verification 
     Readiness program. The conferees also urge DOD to fund the 
     proposal by the National High Performance Distributed 
     Computing Consortium to an existing major shared resource 
     center of this program in order to develop a network of 
     smaller computers that can perform as a single large 
     supercomputer. Such a project will accelerate the 
     investigation and usage of clustered, distributed high 
     performance computing systems as collocated, cost-effective, 
     useful supplements to the large scale HPC systems being 
     funded under this program.


                    high definition display systems

       The conferees agree to the House language on dry etching 
     equipment using reactive ion etch technology in a cluster 
     tool manufacturing format.


                       ballistic missile defense

       The conferees agree to provide a total of $2,800,025,000 
     for the Ballistic Missile Defense Program which includes 
     $2,526,635,000 for research, development, test and evaluation 
     programs. This amount does not include funds for the 
     Brilliant Eyes program, which is funded in the ``RDT&E, Air 
     Force'' account. The conferees agree to provide funds for 
     ballistic missile defense programs in fiscal year 1995, as 
     reflected in the preceding table which made funding 
     allocations for RDT&E, Defense-Wide
       The conferees have agreed to provide $74,000,000 for PAC-3 
     risk reduction/mitigation efforts, of which $8,500,000 is 
     only for enhanced Army participation in the Navy Mountain Top 
     Demonstrations. The conferees further agree that the funding 
     for risk reduction/mitigation efforts will not be used for 
     further launches of the integrated multi-mode missile or the 
     seeker; however, this will not preclude multi-mode component 
     testing which is directly transferable to the PAC-3 missile 
     selected, ERINT, on board aircraft. Finally, the conferees 
     agree that the funds provided for the Mountain Top 
     Demonstrations are not to be used for testing of either the 
     multi-mode missile or seeker.
       The conferees agree to provide $75,000,000 for the Sea-
     Based Wide Area Defense program (Navy-Upper Tier), and direct 
     that none of the funds may be spent on activities that 
     prejudge the outcome of the ongoing cost and operational 
     effectiveness analysis of Navy ballistic missile defense 
     programs.
       The conferees have provided an increase of $3,000,000 only 
     to pursue activities under a joint United States-Israel Boost 
     Phase Intercept program. The conferees agree that these funds 
     may be used once the Secretary of Defense provides the 
     following certifications to the congressional defense 
     committees: (a) the United States and Israel have entered 
     into a contractual effort; and (b) the projects will have 
     specific, direct benefits for the United States.
       The conferees direct that prior to any agreement being 
     signed or initialed in the Standing Consultative Commission 
     regarding modifications to the 1972 Anti-Ballistic Missile 
     Treaty that impose restrictions on the development or testing 
     of Department of Defense theater missile defense systems, the 
     Secretary of Defense shall notify and provide a report on 
     such restrictions to the Committees on Armed Forces and the 
     Committees on Appropriations of the Senate and House of 
     Representatives.


        experimental evaluation of major innovative technologies

       The conferees agree to provide $683,971,000 and have 
     restored funds for the Dragnet, Clipping Service, and Monitor 
     projects. The conferees are encouraged by the Advanced 
     Research Projects Agency's (ARPA) plans to use existing radar 
     systems in these development efforts. The conferees direct 
     ARPA to continue to work in conjunction with the services on 
     these programs.
       The conferees have provided $3,750,000 for the Global 
     Positioning System (GPS) Guidance Package (GGP). The 
     conferees direct that no funds may be spent on GGP Phase II 
     efforts until the controlled field demonstration of the Phase 
     I GGP as an integrated Fire Support Team (FIST) Mission 
     Equipment (FME) subsystem is completed.
       The conferees agree to provide $12,000,000 only to continue 
     the casting emissions project, which is a joint project 
     including The Advanced Manufacturing Technology Center at 
     McClellan Air Force Base, the Far West Federal Technology 
     Centers, and the U.S. auto industry. Within this amount, 
     $10,000,000 is only for the development of emissions 
     measurement devices.
       The conferees agree to provide an additional $7,000,000 
     only to continue the development, application, and testing of 
     IFSAR technology by continuing the GEOSAR program, which is 
     an airborne, radar based foliage penetration/terrain mapping 
     system with an emphasis on both defense and civil 
     applications.
       The conferees agree to provide an additional $12,000,000 
     only for continuation of an ARPA/Defense Sciences Office 
     phosphoric acid fuel cell transit bus research and 
     development program.
       The conferees agree to provide, $2,000,000 only to continue 
     development and demonstration of competing thermophotovoltaic 
     electric power generator technologies. The conferees urge 
     NASA and ARPA to work cooperatively to minimize developmental 
     costs and to evaluate the full range of potential 
     applications.
       The conferees agree to provide $6,000,000 only for multi-
     function self-aligned gate technology and agree to the House 
     language except that the testing should be done on a medium 
     altitude/endurance UAV. The conferees direct that ARPA allot 
     both the fiscal year 1994 and 1995 funds for the MSAG project 
     to the Medium Altitude Endurance UAV office no later than 
     November 1, 1994.
       The conferees agree to provide $1,000,000 only to implement 
     a digital imaging identification system using a closed loop 
     color correction system with a computerized data base.


                          counterproliferation

       The conferees agree to provide $60,000,000 for a new 
     Department of Defense counterproliferation initiative. The 
     conferees agree with the Senate and direct that these funds 
     shall only be obligated for projects specifically approved by 
     the Joint Committee for the Review of Counterproliferation 
     Programs. The counterproliferation programs proposed by the 
     Advanced Research Projects Agency, the Air Force, and the 
     Special Operations Command should receive full consideration 
     for funding within this appropriation. Finally, the conferees 
     direct that the Department of Defense provide the 
     congressional defense committees with a plan outlining the 
     use of these monies prior to obligation of any funds.


                     advanced submarine technology

       The conferees agree to provide $37,428,000 for Advanced 
     Submarine Technology. The conferees direct ARPA to execute 
     the transfer process necessary to bring the United States the 
     technology for actively controlling machinery rafts which has 
     been demonstrated in the ARPA Project ``M''. The conferees 
     also agree to provide $9,600,000 only for continuation of the 
     active structural control projects applying active vibration 
     control technology to high speed precision machining and 
     milling operations and to reduction and isolation of 
     vibration in gas turbine engines.


                           electric vehicles

       The conferees are aware of the National Cooperative 
     Transportation Alliance initiative in Knox County, Tennessee, 
     which seeks to bring together the ongoing research and 
     technology development deployment efforts of Oak Ridge 
     National Laboratory, the Tennessee Department of 
     Transportation, the University of Tennessee, Oak Ridge 
     Centers for Manufacturing Technologies, industry and others 
     to further transportation research. The Alliance will 
     emphasize 6 areas of research which are of substantial 
     concern to the Department of Defense, Energy, and 
     Transportation: vehicle and fuel technologies, defense 
     logistics systems, intermodal and international issues, 
     transportation systems and planning, transportation 
     infrastructure, and HAZMAT transportation. The Alliance will 
     capture the benefit of past federal, state, and commercial 
     transportation investments, including existing expertise. The 
     conferees direct the Advanced Research Projects Agency to 
     cooperate with the Oak Ridge National Laboratory, the 
     University of Tennessee, and other members of the Alliance on 
     development of this initiative, and urge ARPA to consider the 
     program for funding under the vehicle technology development 
     program, and other dual use initiatives such as the 
     Technology Reinvestment Program.


                        manufacturing technology

       The conferees agree to provide $382,629,000. The conferees 
     are aware of a recently announced Cooperative Research and 
     Development Agreement between the Department of Energy's 
     Office of Technology Transfer, Lawrence Livermore National 
     Laboratory, Los Alamos National Laboratory, and ICON 
     Industrial Controls Corporation to develop and test a 
     software based open-architecture machine tool controller. 
     This technology, which enables new approaches to flexible, 
     agile manufacturing and promises increased quality and 
     decreased costs, may be even more crucial to U.S. defense 
     production than to commercial manufacturing. The conferees 
     believe that the Secretary of Defense should develop a plan 
     to leverage this initiative by maximizing its applicability 
     to the specific needs of defense contractors and ensuring 
     thorough evaluation of the technology.
       Concerning advanced lithography, the conferees also urge 
     ARPA to allocate the funds necessary to fully fund the 
     Microlithographic Mask Development program provided that the 
     program meets or exceeds technical milestones. In addition to 
     following the funding allocations cited in the House report, 
     the conferees urge ARPA to allocate a portion of these funds 
     to ion beam research.
       The conferees agree with the House language concerning the 
     CALS shared resource center (CSRC) program, except for the 
     following: (1) the CSRC operated by Concurrent Technologies 
     Corporation shall be the National CSRC and (2) the Orange, 
     Texas Regional CSRC shall be reestablished and operated only 
     by an educational or other nonprofit institution located in 
     Orange, Texas, with the National CSRC serving as the 
     integrator for this Regional CSRC. In order to realize the 
     full benefit of the CSRC program, the conferees direct ARPA 
     to implement this program in accordance with the terms and 
     conditions stipulated in the fiscal year 1994 Department of 
     Defense Appropriations Act and accompanying conference and 
     committee reports.


          advanced concept technology demonstrations (actd's)

       The conferees agree to provide $32,100,000 for ACTD's 
     during fiscal year 1995. These ACTD's include those initially 
     recommended by the Senate and the countermine ACTD. The 
     conferees agree not to impose a prohibition against the 
     initiation of any other ACTD's during fiscal year 1995, but 
     direct that no new ACTD may begin without prior consultation 
     with, and notification to, the Committees on Appropriations. 
     The conferees direct that any notification contain a full 
     description of the programmatic objectives, schedule, 
     technical risks, and annual and total costs of the proposed 
     ACTD.


          innovative environmental security technology systems

       The conferees agree to provide $18,000,000 only to the 
     Office of the Assistant Secretary for Economic Security in 
     consultation with the Office of Environmental Security for a 
     competitive, cost-shared, near-term Climate Change Fuel Cell 
     Program, and direct that procurement, program management, 
     contract administration responsibility and these funds be 
     delegated to the Department of Energy, Morgantown Energy 
     Technology Center, in coordination with the National Defense 
     Center for Environmental Excellence (NDCEE). The conferees 
     direct the DoD to field one of the 200 kW phosphoric acid 
     fuel cells funded for procurement in fiscal year 1994 at 
     NDCEE to facilitate its role in providing manufacturing 
     technology, environmental, and testing expertise in support 
     of this program.
       To achieve a workable cost-shared program that ensures 
     significant private sector participation, the conferees 
     direct that the Federal contribution be $1,000 per kW, that 
     the Federal share of the program not exceed one third of 
     total program costs, which includes unit cost, installation, 
     and precommercial operation; that eligible power plants must 
     be manufactured in the United States; and that priority 
     consideration be given to power plants planned for DoD 
     installations.
       The conferees understand that DoD users in the field are 
     ready to receive, install, and operate the energy efficient 
     and environmentally benign 200 kW phosphoric acid fuel cells 
     funded in fiscal years 1993 and 1994. Moreover, utilities 
     have expressed strong interest in providing private sector 
     support to initiate this program. The conferees are therefore 
     distressed that administrative delays have denied the 
     benefits of this equipment to users in the field, and have 
     not permitted the vast majority of program funds to even 
     reach the stage of obligation.
       The conferees intend that the 200 kW phosphoric acid fuel 
     cell procurement programs funded in fiscal years 1993 and 
     1994 be implemented expeditiously. The conferees, therefore, 
     direct the Secretary of Defense to submit to the Committees 
     on Appropriations by December 15, 1994 a milestone plan 
     providing for contract award for the fuel cells funded in 
     those years no later than April 1, 1995.


                        management headquarters

       The ARPA management headquarters program was not in 
     conference. However, the conferees are aware that ARPA may 
     require additional funds to administer its growing workload. 
     The conferees direct that ARPA may reprogram up to an 
     additional $1,600,000 into the management headquarters 
     program element from excess funds in the EEMIT program 
     without prior Congressional approval.


            special operations tactical systems development

       The budget request for this program element included 
     $9,598,000 for development of the stabilized weapons platform 
     system (SWPS). The conferees have transferred $7,900,000 of 
     these funds to the ``Procurement, Defensewide'' account, as 
     requested by the Special Operations Command (SOCOM). SOCOM 
     intends to spend the remaining $1,698,000 to pursue 
     development of a Special Operations Forces version of the 
     Enhanced Fiber Optic Guided Missile (EFOG-M). The conferees 
     direct that these funds may not be obligated until SOCOM 
     provides a plan to the Congressional defense committees 
     outlining the efforts to be completed, specifying the cost of 
     each effort and the total program cost, and certifying that 
     the fiscal years 1996-2001 Future Years Defense Plan (FYDP) 
     contains the funds necessary to proceed with this development 
     effort.


                        communications programs

       The conferees agree: (a) to provide $10,000,000 to the 
     Defense Information Systems Agency for the Commercial 
     Satellite Communications Initiative to continue to build the 
     network and management infrastructure necessary to shift 
     additional users onto the network, to provide cost efficient 
     surge capability, to support new user requirements for the 
     Air National Guard, and for the development of communications 
     reachback support for Korean surge capability; (b) that, 
     because there appears to be no comprehensive plan for 
     tactical military communications, the Assistant Secretary of 
     Defense (C3I) is directed to provide no later than March 31, 
     1995 to the Committees on Appropriations a detailed 
     architecture for tactical military communications that 
     includes commonality, interoperability, reduced production 
     costs, and streamlined logistics support; and (c) to request 
     the Assistant Secretary of Defense (C3I) to review the NASA 
     TDRSS communications system, determine its technical and 
     economic suitability for supporting DOD tactical and 
     strategic communications, and report the results of this 
     review to the Committees on Appropriations no later than 
     March 1, 1995.


                defense airborne reconnaissance program

       The conferees direct that the Defense Airborne 
     Reconnaissance Office (DARO) must obtain written approval 
     from the appropriate committees prior to transferring funds 
     equal to or greater than $2,000,000. This requirement also 
     applies to all program and project terminations. Furthermore, 
     the DARO must notify the Appropriations Committees prior to 
     transferring funds greater than $1,000,000.
       The conferees provide $31,000,000 to develop a shipboard 
     capability for the Joint Tactical Unmanned Aerial Vehicle 
     Program. The conferees direct the DARO to conduct a study 
     considering the TIER I and TIER II systems as possible 
     candidates to satisfy projected tactical and endurance 
     maritime reconnaissance requirements and report to the 
     appropriate committees by April 1995.
       The conferees recognize the necessity for U.S. Forces in 
     Korea to have daily Indications and Warning (I&W) coverage. 
     Currently, I&W is provide by OV-1 aircraft. If the OV-1 is 
     retired, U.S. Forces Korea must have an interim I&W 
     capability until the Joint Surveillance Target Attack Radar 
     System (JSTARS) can be deployed. The conferees understand 
     that the interim Moving Target Indicator (MTI) system will 
     have significantly less capability than JSTARS. The conferees 
     direct the Secretary of Defense and the Chairman of the Joint 
     Chiefs of Staff to evaluate a potential interim solution for 
     I&W in Korea and report to the appropriate committees no 
     later than November 30, 1994. The report must include (1) 
     platform and sensor capabilities; (2) sensor and ground 
     station integration costs; (3) integration schedule; and (4) 
     outyear costs. The conferees direct that deploying two JSTARS 
     aircraft must be studied as a potential option. The report 
     must also include the cost, schedule and impact a JSTARS 
     operation would have on the current JSTARS program. 
     Furthermore, the conferees direct funds provided for an 
     interim MTI solution may not be used to procure aircraft.
       The conferees agree that manned airborne reconnaissance 
     will continue to have an important role in future 
     contingencies. Therefore, the conferees direct the DARO to 
     submit no later than December 1994, a milestone and cost 
     schedule for RC-135 and U-2 reengining programs. The 
     conferees understand that funds budgeted by the Air Force for 
     RC-135 and U-2 reengining have been decreased by the DARO in 
     support of advanced development programs. The conferees will 
     consider a reprogramming request if the DARO determines it is 
     cost effective to begin the RC-135 or accelerate the U-2 
     reengining programs in fiscal year 1995.
       The conferees direct the DARO to reevaluate the SOUTHCOM 
     requirement for the Air Reconnaissance Low Aircraft (ARL). 
     The DARO is to report its finding to the appropriate 
     committees no later than February 1995. The report should 
     include (1) SOUTHCOM's requirements; (2) existing assets to 
     satisfy those requirements; (3) operational concept for ARL; 
     and (4) ARL acquisition and implementation plan.


                   rapidly deployable hospital module

       The conferees recognize the potential military benefits of 
     employing a rapidly deployable hospital module to meet the 
     combat casualty care and day-to-day medical needs of military 
     forces deployed in locations which are remote or lack 
     adequate medical facilities. The conferees are aware of a 
     proposed module which contains all the systems and support 
     necessary to provide hospital-type treatment capabilities 
     including: (1) an airlock to maintain a sterile environment; 
     (2) a liquid oxygen system; (3) compatibility with emerging 
     telemedicine concepts currently being developed under the 
     Tripler Army Medical Center's Akamai program; and (4) 
     compatibility with field medical technological advances, 
     including smart battlefield stretchers and wrist-watch 
     medical alert indicators. The conferees direct ARPR to fully 
     evaluate the utility of these modules and to define a plan 
     for developing a prototype system which will permit full 
     evaluation of this concept.


                         geophysical technology

       The conferees are aware that ARPA has taken an interest in 
     the Geophysical Technology Transfer Initiative, a program 
     currently involved in a proposed United States-Russia 
     commercial project called the Commercial Electromagnetic 
     Silencing Program. The program seeks to transfer military 
     technology to peaceful use in the protection of shipping 
     against sea-based explosive mines. The conferees encourage 
     ARPA to continue assessing the desirability of participating 
     in the CESP program, including potential reprogramming of 
     funds to support the project. The conferees direct ARPA to 
     provide a report on this initiative to the Appropriations 
     Committee by June 1, 1995.


                                 travel

       The conferees agree to provide a $50,000,000 general 
     reduction to travel financed in the RDT&E appropriations. 
     While the reduction has been included only in the Defense-
     wide appropriation, it is the conferees' intent that the 
     reduction be allocated on a fair-share basis through the 
     reprogramming process once the exact allocation is determined 
     by the Comptroller of the Defense Department.
       Amendment No. 101: Restores and amends language proposed by 
     the House providing funds for the Sea-Based Wide Area Defense 
     program; deletes House language concerning authorization of 
     funds; deletes House language regarding the Tier II Plus and 
     Tier III Minus Vehicles; inserts and amends language proposed 
     by the Senate regarding small business loan guarantees; 
     inserts language transferring funds to the Department of 
     Energy for the Center for Bioenvironmental Research; and 
     inserts language providing funds for the Experimental Program 
     to Stimulate Competitive Research.
       Amendment No. 102: Deletes language proposed by the Senate 
     on the integrated product and process development program.
       Amendment No. 103: Deletes language proposed by the Senate 
     providing funds for the international cooperative projects.

               Developmental Test and Evaluation, Defense

       Amendment No. 104: Appropriates $238,003,000 instead of 
     $251,495,000 proposed by the House and $224,353,000 proposed 
     by the Senate.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Director of Test & Eval Defense                                                                                 
Central Test and Evaluation Investment                                                                          
 Development (CT)...............................         115,318         115,318          88,176         101,826
----------------------------------------------------------------------------------------------------------------

             central test and evaluation investment program

       The conferees agree to provide $101,826,000 for the Central 
     Test and Evaluation Investment Program, of which $13,650,000 
     is only to proceed with the Joint Air Force/Navy Installed 
     System Test Facility Projects. These projects are required to 
     test the advanced avionics systems of the F-22, F-18, and 
     other weapon systems. The conferees direct that $5,300,000 be 
     allocated without delay to the Air Force and that $8,350,000 
     be allocated to the Navy. These funds may only be used for 
     the Joint Air Force/Navy ISTF projects. The conferees direct 
     that not more than 50 percent of the CTEIP fiscal year 1995 
     funding may be obligated until the Joint ISTF funds are 
     allocated to the Services as directed. The conferees also 
     agree that $13,650,000 be designated as a Congressional 
     interest item. The conferees further direct that the 
     Congressional defense committees be provided a report on the 
     content, schedule, and cost of these projects not later than 
     January 1, 1995.
       The conferees agree to provide $3,483,000 only to fund the 
     development of a real-time data link between the Air Combat 
     Environment Test and Evaluation Facility and the Real-time 
     Electromagnetic Digitally Controlled Analyzer and Processor. 
     By this action, the conferees do not intend to affect any 
     other Defense Department long term plans to develop a common 
     architecture to link all its ranges.


                       c3i intelligence programs

       The conferees have provided an increase of $5,000,000 only 
     for disaster planning and preparedness activities as approved 
     by the Senate. The conferees are aware of a proposal to 
     develop a prototype center in the State of Hawaii to permit 
     evaluation and refinement of the concept of regional disaster 
     centers. The conferees direct that a portion of the funds 
     shall only be available for this regional prototype center as 
     part of this effort to define a national strategy to improve 
     disaster planning. The conferees agree to provide an 
     additional $5,000,000 only for the National Drug Intelligence 
     Center as discussed in the classified report accompanying the 
     statement of the managers. The conferees agree to a 
     $16,000,000 reduction as proposed by the Senate.

                        TITLE V--REVOLVING FUNDS

                    Defense Business Operations Fund

       Amendment No. 105; Appropriates $945,238,000 instead of 
     $1,090,438,000 as proposed by the House and $789,400,000 as 
     proposed by the Senate.


                    defense business operations fund

       The conferees agree to provide a total of $945,238,000 for 
     the Defense Business Operations Fund (DBOF). This figure 
     results from the following adjustments to the DBOF fiscal 
     year 1995 budget request approved by the conferees:
       A reduction of $126,000,000 is approved, accounting for a 
     change in the number of civilian personnel expected to remain 
     on the DBOF payroll in fiscal year 1995 compared to the 
     budget request;
       A reduction of $200,000,000 to the budget request is 
     approved, reflecting direction in the National Defense 
     Authorization Act for Fiscal Year 1995 to reduce capital 
     purchases by the DBOF;
       An increase of $42,100,000 is approved to partially cover 
     the additional costs of a civilian pay raise/locality pay 
     adjustment higher than what was assumed in the president's 
     request;
       An increase of $30,000,000 is provided to cover the 
     anticipated costs of the civilian separation payment plan 
     approved with passage of the Federal Workforce Restructuring 
     Act;
       A $30,000,000 increase is approved to sustain Commissary 
     operations at current levels.

     The conferees direct that funds be transferred from DBOF cash 
     balances to the Defense Commissary Agency (DeCA) so that DeCA 
     operations are not adversely affected by the adjustments 
     described above.


                         dbof capital equipment

       The Army is directed to proceed with the acquisition and 
     installation of depot maintenance plan equipment for 
     Tobyhanna Army Depot as identified in the fiscal year 1995 
     budget submission.

                     National Defense Sealift Fund

       Amendment No. 106: Restores the House center heading.
       Amendment No. 107: Appropriates $724,400,000 for the 
     National Defense Sealift Fund instead of $858,600,000 as 
     proposed by the House and $828,600,000 as proposed by the 
     Senate.
       Amendment No. 108: Restores language proposed by the House 
     and stricken by the Senate which provides for the transfer of 
     Title XI loan guarantee funds and restricts use of sealift 
     funds for acquisition for certain equipment for sealift 
     ships. Deletes a House provision making a portion of the 
     appropriation subject to authorizing legislation. Retains 
     Senate language making a portion of the appropriation 
     available for acquisition of Ready Reserve Force ships. Adds 
     a provision which provides $110,000,000 and restricts to 
     United States shipyards the conversion of one Marine Corps 
     prepositioning ship acquired through this appropriation.
       Amendment No. 109: Deletes language proposed by the Senate 
     requesting loan guarantee recommendations from the Secretary 
     of Defense.


                     national defense sealift fund

       The conferees agree to provide $724,400,000 for the 
     National Defense Sealift Fund. This amount includes 
     $546,400,000 for the construction of two sealift ships, 
     $25,000,000 for shipbuilding loan guarantees, $43,000,000 for 
     ready reserve fleet acquisitions and $110,000,000 to acquire 
     and convert one ship for the Marine Corps maritime 
     prepositioning ship enhancement program. The 
     conferees have agreed to language which stipulates that the 
     MPS ship must be converted in a U.S. shipyard. Funding 
     responsibility for research and development sealift programs 
     has been transferred to Title IV of this Act as proposed by 
     the Senate.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       Amendment No. 110: Appropriates $9,930,759,000 instead of 
     $9,895,159,000 as proposed by the House and $9,808,239,000 as 
     proposed by the Senate.
       Amendment No. 111: Earmarks $9,601,170,000 for operation 
     and maintenance instead of $9,577,770,000 as proposed by the 
     House and $9,499,350,000 as proposed by the Senate.
       Amendment No. 112: Earmarks $329,589,000 for procurement 
     instead of $317,389,000 as proposed by the House and 
     $308,889,000 as proposed by the Senate.
       The conference agreement on items in conference is as 
     follow:

                       [In thousands of dollars]

Operation and Maintenance:                                   Conference
    All Other Programs........................................9,607,170
    Neck and Head Injury..........................................7,000
    Gulf War Syndrome.............................................2,200
    Civilian Pay Increase...........................................300
    Civilian Understrength......................................-67,600
    CAMIS.........................................................6,000
    Uncompensated care............................................2,000
    Zinc Cadmium Sulfide..........................................1,000
    Nurse Practitioner Prog.......................................2,000
    Renal Institute of the Pacific................................2,000
    Pacific Island Referral Proj..................................2,500
    Disaster Mgmt Training Prog...................................1,000
    American Red Cross...........................................14,500
    Pediatric Emergency Med.......................................(350)
    Military Nursing Research.....................................5,000
    Brown Tree Snakes.............................................1,000
    Hospital Maintenance..........................................5,000
    Plattsburgh AFB Hospital......................................3,000
    Overseas Dental Program.......................................7,000
    USUHS...........................................................610
    HPSP Scholarships..............................................-510
                                                       ________________

      Subtotal................................................9,601,170
                                                       ================

Procurement:
    All Other Programs..........................................308,889
    CAMIS.........................................................4,000
    William Beaumont ADP..........................................3,200
    Dewitt Army Comm. Hospital....................................2,500
    PACMEDNET....................................................11,000
                                                       ________________

      Subtotal..................................................329,589
                                                       ================

      Total--Defense Health Program...........................9,930,759


                     renal institute of the pacific

       The conferees agree to provide $2,000,000 to fund the 
     design for a state-of-the-art dialysis facility which will 
     improve the ability of the Renal Institute of the Pacific to 
     provide renal dialysis services to military health system 
     beneficiaries. The conferees are aware of the services that 
     the Renal Institute of the Pacific has provided to military 
     beneficiaries and their families, and believes that this 
     facility is necessary to preserve the quality of and access 
     to state-of-the-art renal dialysis services in an environment 
     that is designed to reduce costs to the military health 
     system.


                        plattsburgh afb hospital

       The conferees have provided $3,000,000 to ensure the 
     continuation of medical care at Plattsburgh AFB until 
     September 30, 1995. The conferees agree that this action is 
     in no way intended to contravene the direction of the Base 
     Realignment and Closure Commission recommendations with 
     regard to the Plattsburgh AFB Hospital.


                      point-of-care blood testing

       The conferees agree to require the Department of Defense to 
     conduct a study of the feasibility and cost effectiveness of 
     using point-of-care blood testing in military medical 
     facilities and direct that this report shall be submitted to 
     the Congressional Defense Committees no later than February 
     15, 1995.


                      positron emission tomography

       The conferees direct that the Assistant Secretary of 
     Defense (Health Affairs) conduct a test of Positron Emission 
     Tomography (PETSCAN) technology at three Department of 
     Defense medical centers. The conferees note that PETSCAN 
     diagnosis has already been approved for CHAMPUS reimbursement 
     for Department of Defense medical beneficiaries.
       The conferees expect the Assistant Secretary to provide his 
     test plan to the House and Senate Committees on 
     Appropriations not later than December 15, 1994. A full 
     report of the results of employing PETSCAN technology as a 
     diagnostic tool at these medical centers shall be provided to 
     the Congress, the Secretary of Health and Human Services, the 
     Health Care Finance Agency and the Food and Drug 
     Administration, to permit full review of the potential 
     benefits of this system by relevant federal authorities.


                          zinc cadmium sulfide

       The conferees agree with the House position adding 
     $1,000,000 for a study by the National Academy of Sciences of 
     the potential adverse health effects of Army spraying of zinc 
     cadmium sulfide in Minneapolis, St. Louis, and other cities 
     in 1953. The National Academy of Sciences is urged to 
     cooperate with relevant agencies in the states where spraying 
     took place and to allow a representative of the affected 
     individuals to participate in preparation of the study to the 
     fullest extent possible.


                             mental health

       The conferees are pleased with the success of the 
     Tidewater, Virginia Demonstration CHAMPUS contract for mental 
     health services to Department of Defense beneficiaries. The 
     conferees, therefore, continue with its directive of fiscal 
     year 1994 for the Department to apply this model to two other 
     high-cost, high-utilization, high-population areas.
       The conferees, however, note the importance of ensuring 
     that all mental health programs under CHAMPUS, including the 
     residential treatment center (RTC) initiative, allow each of 
     the core mental health disciplines to continue to function to 
     the fullest extent of their state licensing authority.


                       champus reform initiative

       The Department has recently demonstrated a willingness to 
     give the California-Hawaii and Washington-Oregon CHAMPUS 
     reform initiative procurements to high priority and to adhere 
     to the applicable procurement schedules to the extent 
     practicable. The conferees urge the Department to continue to 
     act in this manner so that CHAMPUS contracts can be awarded 
     expeditiously but without any sacrifice in procedures 
     designed to provide full protection for competition in 
     contracting.


                 champus reform initiative--new orleans

       The conferees concur in the language in House Report 103-
     562, pages 268-269, except that this direction does not 
     pertain to beneficiaries in the Carswell and Bergstrom Air 
     Force Base areas which are part of the CHAMPUS Region VI 
     solicitation.


                  pediatric emergency medical services

       From within available funds, the conferees agree to provide 
     $350,000 to the Civilian External Peer Review Program (CEPRP) 
     budget to expand the study on Pediatric Emergency Medical 
     Services from the pilot test phase to systemwide evaluation. 
     The results should be integrated with the TRICARE regional 
     plans and the Department's continuous clinical quality 
     improvement efforts.


     reserve officer training corps scholarship programs for nurses

       The conferees applaud the military services for their very 
     effective use of the Reserve Officer Training Corps (ROTC) 
     Scholarship Programs to acquire Nurse Corps Officers. These 
     cost-effective programs are assuming greater importance as 
     the American Nurses Association (ANA)--predicted nursing 
     shortage (1999) looms ever nearer. The services' sound 
     commitment to augmenting the national inventory of health 
     care personnel is both noteworthy and appreciated.


                         desert storm syndrome

       The conferees have recommended an additional $3,400,000 and 
     bill language directing the Walter Reed Army Medical Center 
     to work with private sector physicians on a treatment 
     protocol and related studies for Desert Storm affected 
     veterans, that only use the anti-bacterial treatment method 
     based upon the excretion of dead and decaying spherical 
     bacteria, that has already been found to be a successful 
     treatment for some Desert Storm veterans. The conferees 
     intend and direct that the obligation of funds for this 
     treatment protocol and related studies be made through the 
     Walter Reed Medical Center only as directed in House Report 
     103-339, page 112, except that funds are provided through the 
     Defense Health program. This treatment method has been 
     successful in treating at least 10 veterans or dependents 
     with the Desert Storm syndrome. The conferees direct this 
     action so that the treatment described in this report can be 
     statistically validated in the hope that it may provide 
     relief for Desert Storm veterans.


  medical information infrastructure and composite health care system

       The conferees remain committed to completion of the planned 
     deployment and operation of the Department's Composite Health 
     Care System. In addition, the conferees believe the 
     Department should begin regional networking of facilities and 
     development of a computer-based patient records system. 
     Therefore, the conferees direct the Department to undertake 
     demonstration projects to test the value of these 
     initiatives.
       Accordingly, the conference agreement provides not less 
     than $187,129,000 for the Composite Health Care system and 
     the two demonstration projects. Further, the demonstration 
     projects shall be subject to full and open competition.


                               pacmednet

       The conferees agree to provide $11,000,000 to initiate a 
     two-year automation and telecommunication project in the 
     Pacific Region to be known as PACMEDNET. Of the amount 
     provided, $8,000,000 shall be used to develop a computer-
     based patient record enhancement to the Composite Health Care 
     System. The remaining funds ($3,000,000) shall be used for 
     telecommunications enhancements and upgrades to support a 
     regionalization testbed.
       The conferees direct that, prior to the obligation of these 
     funds, the Assistant Secretary of Defense for Health Affairs 
     must certify in writing to the congressional defense 
     committees that implementing this program will in no way 
     duplicate other Defense Health Program automation efforts, 
     such as the AKAMAI or Seahawk projects. In any case, the 
     conferees direct that the Assistant Secretary of Defense for 
     Health Affairs report to the congressional defense committees 
     on plans to implement the PACMEDNET program no later than 
     January 15, 1995.


       military health care advisory council, committee, or forum

       Because health care issues are so vitally important to the 
     Department of Defense and the nation as a whole, the 
     conferees believe that there must be more coordination and 
     cooperation between the military health care system and its 
     private sector counterpart. Increasing costs and 
     technological changes in the health care environment make it 
     imperative for these medical care systems to increase 
     efficiency and effectiveness. And, as the Department's 
     managed care support program evolves, new and creative means 
     must be established to identify and implement advancements in 
     health care delivery systems.
       Recognizing this, the conferees agree with the Senate 
     proposal to establish a military health care advisory council 
     or forum. This body should serve as a unique mechanism for 
     transmitting ideas, identifying problems, and/or developing 
     regularized and productive communications between the 
     military health services system, the private sector, and 
     other interested third parties.
       At a minimum, this body should incorporate the following 
     principles:
       A representation scheme which guarantees both equal 
     opportunity for all interested parties and a diverse mix of 
     participants.
       An advisory function only--one that has no part to play in 
     the technical procurement structure--so as to minimize both 
     the perception and the reality of influencing the contractor 
     selection process.
       The conferees are willing to provide the Department of 
     Defense with considerable discretion as it goes about meeting 
     the intent of the Congress with respect to this matter. But, 
     in no case, will the conferees accept unreasonable delay or 
     stonewalling by the Department in the implementation of this 
     program. Thus, the conferees look forward to working with the 
     Department of Defense and, in particular, the Assistant 
     Secretary of Defense for Health Affairs to determine the 
     exact details of this advisory body over the coming months.


                      cleft lip and palate surgery

       The conferees endorse the U.S. government program which 
     provides cleft lip and palate surgery for children in 
     Honduras. The conferees agree that necessary travel expenses 
     incurred by military doctors should be paid from within the 
     program funds as in the past.


                            Medical Research

       The conferees recommend a number of adjustments to medical 
     research and development. The table below highlights those 
     medical program elements to which there has been an 
     adjustment.

               Research, development, test and evaluation

                       [In thousands of dollars]

        P.E. title, and program                                   Conf.
Army:
  0601102A--Def. Res. Sciences:
    Trauma Care.....................................................150
    Nutrition.......................................................250
    Serum Cholesterol...............................................425
  0602787A--Medical Technology:
    Nutrition.......................................................750
    Tissue Rep....................................................5,000
    Dengue Fever..................................................1,000
    Epidermolysis Bullosa.........................................1,000
  0603002A--Medical Adv. Tech.:
    Breast Cancer...............................................150,000
    Prostate Cancer...............................................4,250
    Women's Health...............................................40,000
    Ovarian Cancer................................................7,500
    Cell Regulation...............................................2,000
    Mammography...................................................2,000
    Spinal/Brain Res................................................  0
    Lyme Disease....................................................500
    Coastal Cancer Control Program................................5,000
    Osteoporosis..................................................5,000
    Nutrition.......................................................750
  0603105A--AIDS: AIDS Research..................................33,410
    0605898A--Management Headquarters (Research and Development): 
      Akamai.....................................................12,000
Navy:
  0603216N--Aviation Surv: Naval Biodynamics Lab....................700
  0603706N--Medical Dev:
    Naval Biodynamics Lab...........................................700
    Bone Marrow..................................................34,000
    Mammography Dev...............................................2,000
    Breast Cancer Center..........................................5,000
Defense-wide:
  50603706D--Cooperative DOD/VA Cooperative Research:
    General Research.............................................20,000
    Spinal/Brain Res.............................................15,000
    Prostate Cancer..............................................10,000
    Gulf War Syndrome.............................................5,000
                                                             __________

      Total.....................................................363,385


                      medical advanced technology

       The conferees have provided $150,000,000 to continue the 
     Army's breast cancer research program. The conferees have 
     allocated $20,000,000 for mammography efforts as approved by 
     the House. The conferees are aware of a new application of 
     military technology, relying on optical correlators, which 
     can enable automated mammography screening. The conferees 
     urge the Army to consider such applications of military 
     technology within this program.
       A portion of the increase, $15,000,000, is provided for 
     institutions with dedicated breast cancer centers as 
     described in House Report 103-254 which accompanied the 
     Department of Defense Appropriations Act, 1994. The remaining 
     funds shall be used to continue ongoing and initiate new 
     breast cancer research under a solicitation developed by the 
     Department of the Army in conjunction with a Breast Cancer 
     Research Program Integration Panel similar to the fiscal year 
     (FY) 1993 panel process. The conferees urge the Army and the 
     panels to solicit research proposals in the Institute of 
     Medicine (IOM) strategy that were not well represented in the 
     FY 1993 DOD program.


                     coastal cancer control program

       The conferees provide $5,000,000 to the Charleston Naval 
     Hospital only to support the development and implementation 
     of a Coastal Cancer Control Program in conjunction with a 
     State-owned comprehensive cancer center serving coastal South 
     Carolina. The conferees recognize that upon the closure of 
     the Myrtle Beach Air Force Base and the Charleston Naval 
     facilities, access to critical preventive health care 
     services for military dependents along coastal South Carolina 
     has become more difficult. The Coastal Cancer Control program 
     will address this reduced access to care and resulting 
     increased cancer mortality by providing mobile screening, 
     education, preventive intervention, and follow-up care to 
     military dependents and other medically underserved citizens 
     of coastal South Carolina.


                         osteoporosis research

       The conferees agree to provide $5,000,000 for research into 
     osteoporosis and related bone diseases. This work should be 
     done in close coordination with the National Institute for 
     Arthritis and Musculoskeletal and Skin Diseases, the lead 
     institute for bone disease research.


                team coordination in emergency medicine

       The conferees support The Army research transferring 
     lessons learned from aviation crew coordination training to 
     emergency medicine. This research will reduce patient risk 
     and increase efficiency through improved hospital emergency 
     care. The conferees direct that funds be made available 
     within the Medical Advanced Technology program [PE 603002A] 
     for the demonstration of this program at Madigan Army Medical 
     Center by the Army Research Lab in coordination with Rhode 
     Island Hospital. The conferees encourage the Department of 
     Defense to consider deploying this program at all of its 
     military treatment facilities.


                        brain and spine research

       The conferees agree to provide $15,000,000 in Cooperative 
     DOD/VA Medical Research funding only for the continuation of 
     the DOD Military Medical Personnel Collaborative Spinal Cord 
     Injury, Paralysis, Neuroscience Research, Education and 
     Training program initiated in 1992.


                       transurethral hyperthermia

       The conferees are aware of the promising preliminary 
     results of work being done to develop prostate treatments 
     which do not require surgery. However, it is necessary to 
     conduct randomized trials to more clearly understand the 
     benefits of non-surgical procedures such as transurethral 
     hyperthermia. Therefore, the conferees direct the Department 
     to use a portion of this funding to finance a well defined 
     scientific study comparing the surgical treatment for benign 
     prostatic hyperplasia with hyperthermia. The multi-year trial 
     shall be conducted at a university medical center with a 
     National Medical Technology Test Bed affiliated with a 
     veterans hospital in California.


                           gulf war syndrome

       The conferees have provided $5,000,000 within the 
     Cooperative DoD/VA Medical Research program element for 
     competitively-awarded independent research on Gulf War 
     Syndrome.
       Amendment No. 113: Deletes a House provision making a 
     portion of the appropriation subject to authorizing 
     legislation. Adds Senate language providing for nursing 
     research and communications services for members of the Armed 
     Forces from the American Red Cross. Amends Senate language 
     regarding the Plattsburgh AFB Hospital.


           chemical agents and munitions destruction, defense

       Amendment No. 114: Appropriates a total of $575,449,000 for 
     Chemical Agents and Munitions Destruction, Defense instead of 
     $562,949,000 as proposed by the House and $590,149,000 as 
     proposed by the Senate.


                       operation and maintenance

       Amendment No. 115: Earmarks $355,784,000 for operation and 
     maintenance instead of $345,784,000 as proposed by the House 
     and $363,584,000 as proposed by the Senate. The conference 
     agreement includes the following specific increases above the 
     budget:

Outreach.....................................................$2,000,000
Risk Analysis.................................................3,000,000
Surveillance..................................................4,500,000
JACADS Storm Recovery........................................10,000,000

       The conference agreement also incorporates the three 
     specific reductions, totalling $19,300,000, included in the 
     House bill.


                              procurement

       Amendment No. 116: Earmarks $198,965,000 for procurement 
     instead of $196,465,000 as proposed by the House and 
     $215,265,000 as proposed by the Senate. The conference 
     agreement includes the following increases and decreases from 
     the budget:

Activated Carbon Filters:
  Equipment Modification Design.............................+$9,200,000
  Tooele facility...........................................+18,200,000
  Anniston facility.........................................+15,000,000
  Umatilla facility.........................................+20,800,000
Equipment, Pueblo facility..................................-24,700,000
Equipment, Pine Bluff facility..............................-32,300,000
Equipment, Umatilla facility................................-15,700,000


               research, development, test and evaluation

       Amendment No. 117: Earmarks $20,700,000 for research, 
     development, test and evaluation as proposed by the House 
     instead of $11,300,000 as proposed by the Senate.
       Both the House and the Senate provided funds for the Army 
     to evaluate alternatives to incineration. The conferees want 
     to emphasize that the Army is not constrained to use those 
     funds to pursue only those technologies contained in its 
     recommendations submitted to Congress. It is the intent of 
     the conferees that these funds be used to pursue the most 
     promising approaches and, as new information becomes 
     available, the Army should take full advantage of it to 
     redirect its efforts as appropriate.

             Drug Interdiction and Counter-Drug Activities

       Amendment No. 118: Appropriates $721,266,000 instead of 
     $713,053,000 as proposed by the House and $700,100,000 as 
     proposed by the Senate and inserts and amends Senate language 
     which transfers $10,000,000 to the Military Construction, 
     Navy appropriation account and amends Public Law 102-396, 
     Section 9136 to clarify the authority of the Defense 
     Department to acquire counterdrug radar tracker aircraft.
       The conference agreement on items in conference is as 
     follows:

----------------------------------------------------------------------------------------------------------------
                                                 Fiscal year                                                    
                                               1995 President        HAC              SAC           Conference  
                                                   budget                                                       
----------------------------------------------------------------------------------------------------------------
Military Personnel:                                                                                             
    Army Reserve.............................           5,850           5,850            5,850            5,850 
    Army National Guard......................         103,100         103,100          103,100          103,100 
    Navy Reserve.............................           2,716           2,716            2,716            2,716 
    Marine Corps Reserve.....................           2,088           2,088            2,088            2,088 
    Air Force................................           5,700           5,700            5,700            5,700 
    Air Force Reserve........................           6,160           6,160            6,160            6,160 
    Air National Guard.......................          25,805          25,805           25,805           25,805 
    SOC......................................             135             135              135              135 
                                              ------------------------------------------------------------------
      Subtotal, Military Personnel...........         151,554         151,554          151,554          151,554 
                                              ==================================================================
Operation and Maintenance                                                                                       
    Army.....................................          88,268          88,268           89,268           88,268 
    Navy.....................................          94,174          94,174           94,374           94,174 
    Marine Corps.............................           5,655           5,655            6,155            5,655 
    Air Force................................         123,607         123,607          123,807          123,607 
    Defense Agencies.........................         106,327         106,327           94,327          106,327 
    Army Reserve.............................           4,298           4,298            4,298            4,298 
    Navy Reserve.............................           1,095           1,095            1,095            1,095 
    Marine Corps Reserve.....................           1,576           1,576            1,576            1,576 
    Air Force Reserve........................           1,160           1,160            1,160            1,160 
    Army National Guard......................          22,273          22,273           32,673           22,273 
    Air National Guard.......................           7,302           7,302           11,302            7,302 
    SOC......................................          10,395          10,395           10,395           10,395 
    Classified Adjustment....................  ..............         (15,493)               0          (21,000)
    Community Outreach Program...............  ..............           3,000                0            3,000 
    Section 1004 Contingency Support.........  ..............          27,000                0           10,000 
    Defense Mapping Agency...................  ..............           2,000                0            2,000 
    CMS......................................  ..............          (1,500)               0           (1,500)
    ROTH--R..................................  ..............          (5,000)               0           (5,000)
    Air Force Tracker Aircraft...............  ..............          (2,000)               0           (2,000)
    Criminal Justice Substance Abuse Training                                                                   
     Center..................................  ..............           1,000                0            1,000 
    Gulf States Initiative...................  ..............           3,000            3,000            3,000 
    Multi-jurisdictional Task Force Training                                                                    
     Program.................................  ..............           1,246                0              600 
    Military Drug Rehabilitation Facility....  ..............           3,500                0            3,500 
    State Plans, Army National Guard.........               0               0            7,000            4,500 
    State Plans, Air National Guard..........               0               0            4,000            2,500 
    Police Research Institute................               0               0                0            1,000 
    Southwestern Oregon Narcotics Task Force.               0               0                0            1,000 
    Other SAC Adjustments....................               0               0          (14,000)               0 
                                              ------------------------------------------------------------------
      Subtotal, O&M..........................         466,130         482,883          449,430          468,730 
                                              ==================================================================
Procurement:                                                                                                    
    Procurement, Army........................           3,992           3,992            3,992            3,992 
    Procurement, Navy........................          10,393          10,393           10,393           10,393 
    Procurement, MC..........................             800             800              800              800 
    Procurement, AF..........................              60              60               60               60 
    Procurement, Def Ags.....................          13,932          13,932           11,932           13,932 
    National Guard/Reserve...................           8,720           8,720            9,320            8,720 
    Procurement, SOC.........................           1,351           1,351            1,351            1,351 
    Air Force Reserve........................             850             850              850              850 
    Classified Adjustment....................  ..............          (5,000)               0                0 
    Gulf States Initiative...................  ..............             600              600              600 
    Multi-jurisdictional Task Force Training                                                                    
     Program.................................               0               0                0              646 
    Lake County Task Force Drug Interdiction                                                                    
     Equipment...............................               0               0                0              220 
    Other SAC Adjustments....................               0               0             (600)               0 
                                              ------------------------------------------------------------------
      Subtotal, Procurement..................          40,098          35,698           38,698           41,564 
                                              ==================================================================
Research, Development, Test and Evaluation:                                                                     
    Defense Agencies.........................          46,418          46,418           46,418           46,418 
    Classified Adjustment....................  ..............           3,000                0                0 
    Counter-drug R&D.........................  ..............          (3,000)           4,000            2,000 
    P-3/UAV Demonstration....................               0               0                0            1,000 
                                              ------------------------------------------------------------------
      Subtotal, RDT&E........................          46,418          46,418           50,418           49,418 
Military Construction, Navy..................          10,000               0           10,000           10,000 
                                              ==================================================================
      Total, Drug Interdiction...............         714,200         713,053          700,100          721,266 
----------------------------------------------------------------------------------------------------------------

                  transit zone interdiction activities

       The conferees recognize the importance of transit zone 
     interdiction activities and the role such activities play in 
     denying drug traffickers an open avenue directly into our 
     country. While the conferees recognizes the many requirements 
     within the counter-drug effort, it is the conferees' 
     expectation that the Department of Defense will use the 
     monies provided for transit zone interdiction activities 
     expressly for this purpose.


         national guard participation in counterdrug activities

       The conferees have been advised that there is some concern 
     within the Department of Defense regarding the participation 
     of the National Guard in counterdrug activities while in 
     title 32 U.S.C. status rather than in state active duty 
     status and the possibility of a violation of the 
     Antideficiency Act (31 U.S.C. 1341(a)) has been suggested. 
     The intent of Congress in providing funds for the counterdrug 
     effort under section 112 of title 32 U.S.C. has been that the 
     National Guard may utilize those funds while conducting such 
     operations in either a title 32 U.S.C. status or state active 
     duty status (both of which are considered non-federal 
     military service), but not in a title 10 federal active duty 
     status and not as a substitute for annual training under 
     section 502 of title 32 U.S.C. The conferees are convinced 
     that the current provisions of section 112 of title 32 U.S.C. 
     provide sufficient guidance to continue such operations as 
     have been approved within the Department of Defense for the 
     past six years and that no violation of the Antideficiency 
     Act has occurred.
       The conferees have included a provision, Section 8123 to 
     ensure that there is no confusion in continuing the program 
     in fiscal year 1995. If the Department believes that current 
     provisions in law are inadequate, a legislative proposal to 
     further clarify section 112 of title 32 U.S.C. should be 
     submitted with the fiscal year 1996 defense budget 
     submission.


                multi-jurisdictional task force training

       The conferees agree to provide an additional $1,246,000 for 
     this program as described in House Report 103-562 and agree 
     that $646,000 of the funds provided shall be available for 
     acquisition of equipment to include distance learning 
     modules.


                   air force reserve hc-130 aircraft

       The conferees urge the Air Force Reserve to continue their 
     procurement of commercially available, off-the-shelf 
     navigation thermal imaging systems and related support 
     equipment for use on the Reserve's HC-130N and HC-130P 
     aircraft. It is the intention of the conferees that within 
     the funds made available that procurement of these systems 
     occur. Furthermore, the conferees expect that the Department 
     will request additional funds for this program in the fiscal 
     year 1996 budget submission.


                southwestern oregon narcotics task force

       In order to combat increasing drug production on federal 
     lands, the conferees direct that $1,000,000 in available 
     funding for counterdrug activities be designated for the 
     Southwestern Oregon Narcotics Task Force.


                       p-3 aew drug interdiction

       The conferees concur that the P-3 is an effective tool for 
     use in the drug interdiction effort and support the goal of 
     providing suitable assets for use in the war on drugs by all 
     parts of the law enforcement community. The conferees direct 
     the Navy to transfer to the Customs Service two currently 
     retired and previously identified heavyweight P-3 B ``Bravo'' 
     aircraft and 2 APS 138 radars, including rotodomes and 
     pedestals as they become available upon the retirement of 
     Navy E-2C aircraft. It shall be the responsibility of the 
     Customs Service to take control of and modify the aircraft by 
     September 30, 1997. If the Customs Service has not taken 
     control of the aircraft, or has chosen not to modify one or 
     both of the aircraft by that date, the aircraft will be 
     returned to the Navy for proper disposal.
       The conferees further direct that $1,000,000 be made 
     available only for a demonstration program which evaluates 
     the potential benefits of unmanned air vehicles (UAVs) 
     operating in support of P-3 AEW aircraft. It is the 
     conferees' intent that the test should utilize an endurance 
     class off-the-shelf UAV system capable of extended duration 
     deployments. Test and evaluation results should be reported 
     to the appropriations committees by May 1, 1996.


                national drug intelligence center (ndic)

       The conferees agree to restore the $12,000,000 reduction by 
     the Senate, but also agree that by September 30, 1995, the 
     NDIC Washington Office shall not exceed 10 end strength 
     positions. Additional guidance is provided in the 
     accompanying classified statement of the managers.

                    office of the inspector general

       Amendment No. 119: Appropriates $140,872,000 as proposed by 
     the Senate instead of $142,098,000 as proposed by the House.
       Amendment No. 120: Earmarks $139,872,000 as proposed by the 
     Senate instead of $141,098,000 as proposed by the House for 
     operation and maintenance.


                defense criminal investigative functions

       The conferees agree that none of the additional funds made 
     available to the Office of the Inspector General shall be 
     used for the Office of Investigations.

                  Defense Conversion and Reinvestment

       Amendment No. 121: Deletes House Language establishing a 
     ``Defense Conversion and Reinvestment'' transfer account.
       The conferees strongly support the objectives of the 
     Defense Conversion, Reinvestment, and Transition Act of 1992. 
     To help accomplish the goals of that legislation the 
     conferees have included at least $3,297,000,000 in the fiscal 
     year 1995 Defense Appropriations Act as follows:

                  Defense conversion and reinvestment

                        [In millions of dollars]

Title I:
  Temporary Early Retirement......................................391.2
  Guard and Reserve Transition Initiatives........................139.5
                                                             __________

      Subtotal, Title I...........................................530.7
                                                               ==========
_______________________________________________________________________

Title II:
  Separation Pay and Civilian Health Benefits.....................301.7
  Transition Assistance/Relocation Assistance......................72.4
  National Guard Youth Opportunity Pilot Program...................71.4
  Office of Economic Adjustment....................................39.1
  Troops to Teachers...............................................65.0
  Troops to Cops...................................................15.0
  Junior ROTC Expansion............................................59.8
  Other Conversion Initiatives.....................................55.8
                                                             __________

      Subtotal, Title II..........................................680.2
                                                               ==========
_______________________________________________________________________

Title IV:
  Technology Reinvestment Program (TRP)...........................550.0
  Other Defense Reinvestment.......................................73.7
  Electronics and Materials Initiatives...........................260.9
  Manufacturing Technology Initiatives............................382.6
  Computing Systems and Communication Technology..................400.9
  SEMATECH.........................................................90.0
  Basic Research...................................................87.7
  Advanced Simulation..............................................79.3
  SBIR Refocused to Dual Use......................................161.0
                                                             __________

      Subtotal, Title IV........................................2,086.1
                                                               ==========
_______________________________________________________________________

      Grand Total, Defense Conversion...........................3,297.0

                defense technology reinvestment programs

       The conferees have provided for the following projects as 
     specified:

Defense Reinvestment (PE 6357OE)..................................550.0
Defense Reinvestment Program (PE 6357OD)
  Loan Guarantees..................................................50.0
  Law Enforcement Technology........................................7.5
  Other Reinvestment Initiatives...................................16.2
Tactical Technology (PE 0602702E)
  Law Enforcement Technology.......................................10.0
EEMIT (PE0603226E)
  Law Enforcement Technology.......................................20.0
                                                             __________

      Total, Technology Reinvestment Programs.....................653.7

                 technology reinvestment program (trp)

       The conferees have provided $550,000,000 for the Advanced 
     Research Projects Agency to continue this program, more 
     commonly known as the Technology Reinvestment Program (TRF). 
     The recommended amount reflects a reduction of $75,000,000 
     based on fiscal constraints. The conferees agree to consider 
     a reprogramming during the course of fiscal year 1995. The 
     conferees direct that the Department of Defense shall 
     allocate all of these funds among the projects established by 
     the relevant statutes.
       The conferees have included a general provision which 
     provides a greater role for the services in the TRP program. 
     Under this provision, the appropriated funds may not be 
     obligated until the Secretary of Defense ensures that the 
     assistant secretaries for research, development, and 
     acquisition of each of the military services are full members 
     of the Defense Technology Conversion Council (DTCC). 
     Furthermore, ARPA is required to hold a competition and to 
     choose TRP projects in focus areas selected by the 
     acquisition executives of the Army, Navy and Air Force. The 
     conferees are convinced that these steps will ensure that TRP 
     funds address defense needs while moving the military 
     services toward greater reliance on dual use technologies.


                         job creation/retention

       The conferees strongly encourage the Department to make job 
     creation and retention a selection criterion as a condition 
     of the TRP award process; to make unions explicitly and 
     directly eligible to apply for funds; and also to include 
     union representatives among the list of eligible applicants 
     for TRP grants in the next round of proposals.


                      other conversion initiatives

       The conferees suggest that the Defense Department consider 
     funding the following conversion projects during the course 
     of fiscal year 1995:

1. American Legion/International Labor Union Veteran's Traini$1,400,000
2. Georgia Tech Center for International Defense Conversion.....400,000
3. Berkshire County Regional Employment Board...................100,000
4. Non-Proliferation Institute at the Monterey Institute of 
  International Studies.......................................4,000,000
5. San Diego State University Conversion Center..............10,000,000
6. Vietnam Veteran's Leadership Program.........................280,000
7. San Gabriel Valley Community Development Corporation (ADVAN1,250,000
8. Center for Commercial Deployment of Transportation Technolo1,667,000
9. Hunters Point Civilian Job Training in Environmental Remediat500,000
10. Southeast Regional College Network Florida................3,000,000
11. Teacher Training for Children with Learning Disabilities....334,000
12. Southwest Virginia Advanced Mfg. Technology System..........364,000
13. Domestic Fuel Cell Manufacturing............................200,000
14. Georgia Tech Plasma Arc Remediation.......................4,000,000
15. Great Lakes Environmental Manufacturing Technology Center.8,000,000
16. California Goldstrike Program (Regional Technology Allianc3,500,000
17. Free Electron Laser User Facility.........................9,000,000
18. Ft. Ord/California State University System...............14,000,000
19. Torque Converter Project, Michigan State University.........500,000
20. Naval Air Development Center Defense Technology Transfer P1,500,000
21. Southeastern, PA Regional Employment and Training Center..2,000,000
22. University of California Defense Cleanup Technology Project at Ft. 
  Ord.........................................................1,000,000
23. Magnetic Levitation Transportation Technology.............2,000,000
24. California Information Infrastructure..............................
25. California Environmental Sensor Deployment Project.................
26. Methanol Plantship Technology.............................3,000,000
                                                       ________________

      Total..................................................71,955,000

                    domestic fuel cell manufacturing

       The conferees are encouraged by efforts to develop 
     Collapsible Intermodal Containers (CICs) that will be used 
     for the transport of waste by-products from the Coal Fired 
     Utilities (Flyash) and the bio-solids from Water Treatment 
     Plants to serve as nutrients to replenish strip mined lands.


                 philadelphia naval shipyard conversion

       The conferees urge the Department to obligate prior year 
     appropriations for conversion of the Philadelphia Naval 
     Shipyard. The Defense Department should provide a plan for 
     program execution to the appropriations committees no later 
     than March 15, 1995.


                   korean enhanced readiness account

       Amendment No. 122: Deletes the House language which 
     appropriated $250,000,000 for the enhanced readiness of 
     United States Forces for Korea.
       The conferees agree not to establish a separate Korean 
     Readiness Enhancement account. However, the conferees have 
     increased funding to improve the readiness of troops deployed 
     to Korea. These increases include $51,200,000 in the 
     Operation and Maintenance Army account, to support the 
     Patriot Battalion recently deployed to South Korea and the 
     Attack Aviation Battalion which also was recently deployed. 
     Additionally the conferees have included $15,000,000 to 
     provide a Moving Target Indicator (MTI) capability for U.S. 
     and South Korean forces. More details on these initiatives 
     appear in other sections of this report.

                      TITLE VII--RELATED AGENCIES

       Amendment No. 123: Deletes House language ``NATIONAL 
     FOREIGN INTELLIGENCE PROGRAM'' and inserts Senate language 
     ``RELATED AGENCIES.''
       Amendment No. 124: Appropriates $8,500,000 from the 
     National Security Trust Fund as proposed by the Senate.
       Amendment No. 125: Appropriates $92,684,000 for the 
     Community Management Account, instead of $83,084,000 as 
     proposed by the House and $105,084,000 as proposed by the 
     Senate.


     kaho'olawe island conveyance, remediation, and environmental 
                         restoration trust fund

       Amendment No. 126: Inserts Senate language which earmarks 
     $50,000,000 for payment to the Kaho'olawe Island Conveyance, 
     Remediation, and Environmental Restoration Trust Fund.

                     TITLE VIII--GENERAL PROVISIONS

       Amendment No. 127: Inserts and amends Senate language which 
     allows funds to be used for specific multiyear procurement 
     contracts.
       Amendment No. 128: Deletes House language concerning Native 
     American governments and disposition of property in base 
     closures, and inserts Senate language on Native American 
     corporations contracting.
       Amendment No. 129: Restores House language on civilian 
     personnel ceilings, and inserts Senate language which limits 
     the number of civilian work-years that DoD may funds 
     overseas.
       Amendment No. 130: Deletes House language which would have 
     made permanent the provision allowing the proceeds from the 
     Fisher House Investment Trust Fund to be used to support the 
     operation and maintenance of the Army's Fisher Houses.
       Amendment No. 131: Restores and amends House language which 
     provides that all new DoD procurements shall separately 
     identify software costs in those instances where software is 
     considered to be a major category of cost, and inserts Senate 
     language on the Pilot Mentor-Protege program.
       Amendment No. 131: Deletes Senate language prohibiting 
     disestablishing the Navy's Craft of Opportunity Program.
       Amendment No. 133: Restores House language to fund 
     facilities at the U.S. Army Engineer's Waterways and 
     Experiment Station.
       Amendment No. 134: Restores and amends House language that 
     provides funds for the Reserve Component Automation System, 
     and inserts Senate language on Indian Financing Act incentive 
     payments.
       Amendment No. 135: Restores House language which prohibits 
     the purchase of certain shipboard anchor and mooring chains 
     outside the United States, and inserts and amends Senate 
     language on 9mm handguns and ammunition.
       Amendment No. 136: Deletes House language which required 
     that operational control of the Naval Reserve Personnel 
     Center be under the command and control of the Commander, 
     Naval Reserve Command, and inserts Senate language directing 
     the Department to replace old locks on safes or security 
     containers.


                             security locks

       The conferees agree to include the general provision 
     proposed by the Senate requiring that security locks 
     purchased by the Department meet current GSA and Department 
     of Defense standards. Purchase of such security locks should 
     be accomplished only through full and open competitive 
     procedures.
       Amendment No. 137: Deletes House language prohibiting 
     consolidation or relocation of several ADP installations, and 
     inserts Senate language to provide for transportation of 
     medical supplies to American Samoa and for Native Americans.
       Amendment No. 138: Restores House language which limits 
     funds for relocation of an organization, activity, or 
     function within the National Capital Region, and inserts 
     Senate language regarding local hire in noncontiguous States.
       Amendment No. 139: Provides $24,565,000 as proposed by the 
     House for Civil Air Patrol instead of $19,917,000 as proposed 
     by the Senate.
       Amendment No. 140: Provides $13,105,000 as proposed by the 
     House for operation and maintenance funding for the Civil Air 
     Patrol instead of $10,410,000 as proposed by the Senate.
       Amendment No. 141: Restores House language which directs 
     that certain T-AGS ships must utilize remanufactured SASS 
     multibeam sonars, and inserts Senate language which restricts 
     obligation of funds for the AN/ALR-67(V)3 Advanced Special 
     Receiver until certain conditions are met.
       Amendment No. 142: Restores House language which makes the 
     provision permanent regarding eligibility requirements for 
     CHAMPUS disabled care.
       Amendment No. 143: Deletes House language and inserts and 
     amends Senate language on Federally Funded Research and 
     Development Centers (FFRDCs), RDT&E consultants, and non-
     profit research institutions. Inserts Senate language 
     intended to eliminate possible conflicts of interest for 
     members of FFRDC Boards of Directors or Trustees and to 
     prevent the establishment of new FFRDCs; inserts and amends 
     Senate language which restricts the use of FFRDC funds until 
     the Congressional defense committees receive the FFRDC 
     funding ceilings for fiscal year 1995; inserts Senate 
     language which limits compensation for FFRDC employees, 
     executive officers, board members and other advisory or 
     governing panels; inserts and amends Senate language which 
     would prohibit the use of fees or other federal funds paid to 
     defense FFRDCs from being used for certain purposes; inserts 
     and amends Senate language establishing a funding ceiling of 
     $1,252,650,000 for defense FFRDCs for fiscal year 1995; 
     inserts and amends Senate language reducing by $251,534,000 
     the amount of RDT&E funds to be made available for the non-
     FFRDC consultants; and inserts Senate language adopting the 
     Senate-recommended funding reduction for major non-profit and 
     university-affiliated research centers.
       The conferees also direct the Secretary of Defense to 
     conduct a special, comprehensive review of the fee-granting 
     process for FFRDCs and of the use of fees by FFRDCs, with the 
     objective of further limiting this use. The Secretary's 
     review also should address the apparent contradiction between 
     the claimed need for fees for some FFRDCs, and the lack of a 
     fee requirement for other FFRDCs. The Secretary is directed 
     to submit the results of his review not later than April 1, 
     1995, to the Congressional defense committees, along with any 
     recommendations for changing the FFRDC fee structure.
       Amendment No. 144: Restores House language prohibiting 
     funds to procure carbon, alloy or armor steel plate which 
     were not melted and rolled in the United States or Canada, 
     and inserts Senate language which prevents use of unobligated 
     balances in the Stockpile Transaction Fund to finance 
     research and development efforts.
       Amendment No. 145: Restores House language requiring the 
     Secretary of Defense to rescind the service Secretary's 
     authority to waive the Buy American Act when a foreign 
     country has discriminated against certain types of products 
     in the United States, and inserts Senate language which 
     requires DoD activities to procure alcoholic beverages 
     locally in noncontiguous states, and amends Section 8059 to 
     provide $1,000,000 for the clean-up of a sale parcel at 
     Hamilton Air Force Base.
       Amendment No. 146: Deletes House language which would have 
     made permanent the provision granting the authority which 
     allows DoD to make voluntary separation incentives payable 
     from the Voluntary Separation Incentive Fund.
       Amendment No. 147: Restores House language directing the 
     Department to provide that disposal of chrome and manganese 
     ore from the Stockpile be limited to domestic sources, and 
     inserts Senate language concerning actions addressed in the 
     analysis of the impacts of Defense reductions to the Defense 
     technology and industrial base. manganese
       Amendment No. 148: Provides $329,000,000 as proposed by the 
     House for Uniformed Services Treatment Facilities instead of 
     $296,000,000 as proposed by the Senate.
       Amendment No. 149: Provides that $300,000,000 as proposed 
     by the House may be provided for Uniformed Services Treatment 
     Facilities from funds appropriated in this Act instead of 
     $270,000,000 as proposed by the Senate.
       Amendment No. 150: Deletes House language which would have 
     made permanent the provision granting the authority that 
     provides that retired pay of Reserve personnel retiring under 
     the temporary early retirement authority be paid from the 
     military personnel accounts.
       Amendment No. 151: Deletes House language prohibiting the 
     relocation of the 116th Fighter Wing of the Air National 
     Guard and inserts Senate language which sets a ceiling of 
     $119,200,000 on U.S. funding for NATO Headquarters 
     operations.
       Amendment No. 152: Restores House language which prohibits 
     funds to procure aircraft fuel cells unless they are produced 
     or manufactured in the United States and inserts Senate 
     language which denies funds to establish or support organic 
     depot maintenance activities in DoD for the B-2 bomber until 
     a report is provided to Congress.
       Amendment No. 153: Deletes House language which would have 
     made permanent the provision granting the authority that 
     provides that retired pay of active duty personnel retiring 
     under the temporary early retirement authority be paid from 
     the military personnel accounts.
       Amendment No. 154: Amends House language regarding 
     restrictions on modifications and changes the word 
     ``country'' to ``United States''.
       Amendment No. 155: Restores House language on intelligence 
     personnel compensation and reductions, and insets and amends 
     Senate language which appropriates $67,000,000 to prior year 
     appropriations to liquidate outstanding bills of the Army 
     Guard and Army Reserve.
       Amendment No. 156: Deletes House language prohibiting funds 
     for the movement of the Defense Mapping Agency Aerospace 
     Center annex from St. Louis, Missouri, and inserts Senate 
     language which establishes payment criteria for CHAMPUS Peer 
     Review Organization.
       Amendment No. 157: Deletes House language on high 
     performance computing, and amends Senate language requiring 
     competition for supercomputers.
       Amendment No. 158: Restores and amends House language which 
     places restrictions on funds for the purchase of a totally 
     enclosed lifeboat survival system, and inserts Senate 
     language which requires military medical commanders to have 
     administrative experience.
       Amendment No. 159: Restores House language concerning 
     compliance with Buy American Act laws, and inserts Senate 
     language which provides funds for the mitigation of 
     environmental impacts resulting from military operations on 
     or near Indian lands.
       Amendment No. 160: Inserts and amends Senate language which 
     restricts obligation of funds for the Defense reinvestment 
     program until the assistant secretaries for research, 
     development and acquisition of each of the military services 
     are full members of the Defense Technology Conversion 
     Council, and earmarks $75,000,000 for technology reinvestment 
     program projects in focus areas selected by the acquisition 
     executives of the military services.
       Amendment No. 161: Restores House language which denies 
     funds for the development of bi-static active capability 
     unless the acoustic signal processor is hosted on the AN/UYS-
     2, and inserts Senate language which requires the submission 
     of a master plan for major nonprofit non-FFRDC laboratories 
     engaged in defense research and development.
       Amendment No. 162: Deletes House language which required 
     the Secretary of the Navy to purchase USH-42 mission 
     recorders for S-3 aircraft, and inserts Senate language which 
     reallocates prior year shipbuilding funds to cover 
     unanticipated cost increases.
       Amendment No. 163: Deletes House language which allowed 
     Operation and Maintenance funds for increasing energy and 
     water efficiency in Federal buildings to be transferred to 
     other appropriations, and inserts and amends Senate language 
     requiring a cost and operational effectiveness analysis for 
     Air Force bomber programs.


                    Bomber Cost Effectiveness Study

       The conferees recommend a general provision earmarking 
     $4,500,000 for the independent study of Air Force Bomber 
     programs. The conferees direct that this study shall be 
     conducted by an independent entity, such as the Institute for 
     Defense Analysis, to ensure a completely unbiased review. 
     Furthermore, the conferees direct that the results of the 
     study shall be provided to the Committees on Appropriations 
     in unclassified and classified form without any delay upon 
     the completion of the internal review process of the 
     independent organization accomplishing the study. The study 
     should cover the specific guidance as proposed by the Senate 
     to include a consideration of the cost, affordability and 
     time required to implement any changes in the bomber force.
       Amendment No. 164: Restores House language concerning 
     consultation with the Congress prior to the deployment of 
     United States Armed Forces for international peace-keeping or 
     peace-enforcement operations, and deletes Senate language 
     concerning reimbursement for inspection costs of certain 
     States which are parties to the Treaty on the Elimination of 
     Intermediate-Range and Shorter-Range Missiles and the Treaty 
     on the Reduction and Limitation of Strategic Offensive Arms.


                  arms control treaty inspection costs

       The conferees agree not to include in the final Act the 
     language proposed by the Senate regarding the use of fiscal 
     year 1995 funds to reimburse certain states for costs 
     allocated to those nations under the Treaty on the 
     Elimination of Intermediate-Range and Shorter-Range Missiles 
     (INF) and the Treaty on the Reduction and Limitation of 
     Strategic Offensive Arms (START). In so doing, the conferees 
     recognize the need, at this time, to preserve the inspection 
     regimes contained in these treaties which the Executive 
     Branch and the Congress resolve whether additional statutory 
     authority is required on this matter.
       The conferees direct that these payments may be made only 
     for fiscal year 1995, and that no payment may be made without 
     prior consultation with, and notification to, the appropriate 
     Congressional committees, including the defense committees.
       The conferees strongly disapprove of the Executive Branch's 
     efforts, thus far, to obtain further statutory authority for 
     these reimbursements, and of the lack of consultation with 
     the appropriate Congressional committees before a policy on 
     these reimbursements was adopted. The conferees will be 
     compelled to consider future funding limitations should such 
     conditions reoccur.
       The conferees also are aware of commitments made by the 
     Secretary of Defense that the current Administration in the 
     Executive Branch would not consider the reimbursement policy 
     to be a precedent for any other area of INF or START treaty 
     implementation. The conferees will assess the requirement for 
     future funding limitations based on the Executive Branch's 
     ability to keep these commitments.
       Amendment No. 165: Restores and amends House language which 
     extends the availability of prior year funds for sporting 
     competitions, and inserts Senate language which requires the 
     Secretary of Defense to ensure that travel to Hawaii or 
     Alaska require no higher levels of approval or stricter 
     controls than other domestic travel.
       Amendment No. 166: Deletes House language which allowed 
     acquisition of Ready Reserve Force ships using the National 
     Defense Sealift fund, and inserts Senate language concerning 
     relocation of the P-3 squadrons stations at Barbers Point, 
     Hawaii.
       Amendment No. 167: Restores and amends House language 
     prohibiting the acquisition of more than 47 Titan IV heavy-
     lift expendable launch vehicles; transferring a total of 
     $60,000,000 to NASA, including $25,000,000 to be used only 
     for LANDSAT 7 and $35,000,000 to be used only at Phillips 
     Laboratory, Albuquerque, New Mexico for an Advanced 
     Technology Demonstrator X-vehicle and to finish the original 
     flight test program of the DC-X1 test vehicle; providing a 
     total of $40,000,000 to begin development of a new family of 
     medium-lift and heavy-left launch vehicles; and inserts and 
     amends Senate language that places restrictions on military 
     and civilian personnel who separate under an incentive 
     program.


                             space programs

       The conferees agree: (a) not to centralize space 
     acquisition funding into two appropriations or to transfer to 
     the National Reconnaissance Office funding for the fixed 
     costs of the Titan IV program as proposed by the House; (b) 
     that no later than March 31, 1995, the Secretary of Defense 
     and Director of Central Intelligence shall combine all DOD 
     and intelligence space acquisition responsibilities into one 
     joint office under a single Space Acquisition Executive; (c) 
     that only $10,000,000 in fiscal year 1994 Research, 
     Development, Text and Evaluation, Defense-wide is available 
     to be obligated for the new family of expendable launch 
     vehicles until the new Space Acquisition Executive presents a 
     detailed acquisition plan for the new family of launch 
     vehicles, including annual and total costs, schedule, and 
     technical risks; and (d) not to require the launch of Defense 
     Support Program satellites on the space shuttle as proposed 
     by the House.
       Amendment No. 168: Restores and amends House language 
     concerning Naval Reserve programs, and inserts and amends 
     Senate language which provides funds to support the Civil-
     Military Cooperation program.
       Amendment No. 169: Restores and amends House language which 
     prohibits the establishment of new field operating agencies 
     and inserts Senate language that requires war colleges 
     resident classes to include not less than 20 percent of U.S. 
     military students from other than the hosting military 
     department.
       The conferees agree to prohibit the establishment of new 
     field operating agencies of the Department of Defense, except 
     for field operating agencies funded within the National 
     Foreign Intelligence Program. Additionally, the conferees 
     expect the Department of Defense to make sizable reductions 
     in its Headquarters and numerous Defense Support and Field 
     Activities. The expected reductions are exclusive of 
     Department plans for the Department of Defense Dependents 
     Schools (DODDS). The conferees understand the Secretary of 
     Defense intends to make reductions in these areas and direct 
     a report on such initiative. The report should provide a 
     roadmap that details future plans and goals of the reductions 
     and certify that the roadmap is consistent with future 
     Department budget plans. The study shall be submitted to the 
     Congressional defense committees no later than June 30, 1995.
       Amendment No. 170: Deletes House language which restricted 
     DDG-51 and LHD-1 obligations pending obligation of sealift 
     ship options, and inserts Senate language requiring the 
     Secretary of the Air Force to compete maintenance workload on 
     M61 Gatling Guns.
       Amendment No. 171: Deletes House language which restricted 
     procurement of ceramic products to those produced or 
     manufactured in the United States and inserts Senate language 
     that prohibits the sale of zinc from the national defense 
     stockpile under certain conditions.
       Amendment No. 172: Restores and amends House language which 
     directs the Secretary of Navy to procure low cost 
     alternatives to the EA-6B ADVCAP program and deletes Senate 
     language concerning claims submitted by the Muckleshoot 
     Indian tribe.
       Amendment No. 173: Deletes House language prohibiting use 
     of funds for the sustaining base information system, and 
     inserts Senate language on closure and community reuse 
     activities at Cameron Station military base in Virginia.
       Amendment No. 174: Restores and amends House language 
     prohibiting the use of funds for automated document 
     conversion systems which are not part of a DoD master plan 
     and provides $20,000,000 for the Automated Document 
     Conversion system.


            cost-of-living adjustment for military retirees

       The conference agreement also retains Senate language 
     accelerating the 1995 cost-of-living adjustment for military 
     retirees from October to April and adds a new provision to 
     accelerate 1996-1998 military retiree COLA payments to 
     conform to the civilian COLA schedule contingent on enactment 
     of financing legislation. The House bill contains no similar 
     provisions.
       The conferees strongly endorse the concept of eliminating 
     the current disparity between military and civilian retiree 
     COLA payment dates. This disparity is the result of 
     modifications made to payment schedules in the Omnibus Budget 
     Reconciliation Act of 1993.
       Under the rules of the Congressional Budget Act, correction 
     of this disparity should be authorized in a manner that 
     causes the increased cost to be borne through offsetting 
     savings in other mandatory or entitlement programs. Instead, 
     the 1995 Defense Authorization Act required the 1995 payment 
     for military retirees to be accelerated only if paid for in 
     the 1995 Defense Appropriations Act via reductions in other 
     Department of Defense discretionary programs. This financing 
     mechanism is unfortunate and unwise. It subverts the pay-as-
     you-go principle for mandatory and entitlement programs while 
     hurting important defense readiness and modernization 
     efforts.
       The conferees have reluctantly agreed to fund the 
     acceleration of the 1995 military COLA payment because the 
     disparity between military and civilian retirees is 
     fundamentally unfair, and other committees have refused to 
     pay for it under the proper procedure.
       However, the conferees fully expect that the continuing 
     disparity that exists in 1996-1998 be paid for in the normal 
     PAYGO process for mandatory and entitlement programs. The 
     conference agreement, therefore, includes a provision which 
     conforms the 1996-1998 military and civilian COLA payment 
     dates contingent upon:
       (1) the President, in his 1996 budget, proposing 
     legislation to expressly pay for this provision under normal 
     PAYGO rules; and
       (2) enactment of authorizing legislation which expressly 
     offsets this cost on the PAYGO scorecard.


                            actuarial gains

       The conferees also wish to bring to the Secretary's 
     attention the need to modernize the treatment of actuarial 
     gains (or losses) realized in the Military Retirement Fund. 
     The current treatment requires significant sums of 
     discretionary funds appropriated for accrual retirement 
     payments for the active force to be shifted to reduce 
     required mandatory payments for other liabilities. These 
     shifts could exceed $1 billion a year in the years ahead.
       The conferees note the independent Department of Defense 
     Retirement Board of Actuaries has recommended legislation to 
     allocate future actuarial gains to DOD discretionary accounts 
     when they are attributable to service performed since 1984. 
     The conferees expect the Secretary to give this proposal 
     priority consideration for inclusion in the FY 1996 request.
       Amendment No. 175: Restores House language which restricts 
     procurement of propellers and ship shafts to those produced 
     in the United States, and inserts Senate language 
     appropriating funds for the Coast Guard pay raise.
       Amendment No. 176: Deletes House language concerning the 
     SPS-48E radar program, deletes Senate language appropriating 
     funds for the Impact Aid program, and inserts a new provision 
     which allows the Department to absorb costs for the military 
     personnel pay raise.
       Amendment No. 177: Deletes House language which specifies 
     contract award dates for CHAMPUS Reform Initiative, and 
     inserts and amends Senate language limiting executive 
     compensation.


                         executive compensation

       The conferees agree to modify Senate language added on 
     executive compensation. The agreement limits the rate of 
     individual compensation that industry can charge the Defense 
     Department on new contracts entered into after April 15, 
     1995. The Senate had proposed limiting the rate to the salary 
     of Cabinet officials; the conferees agree to an annual rate 
     of $250,000. The conferees note that this provision does not 
     limit the amount that the private sector can pay employees, 
     but only limits allowable cost reimbursements from the 
     Defense Department for such payments to an annual rate of up 
     to $250,000 per individual.
       Amendment No. 178: Deletes House language which denies 
     funds for enrollment of new students at the Uniformed 
     Services University of the Health Sciences, and inserts a new 
     provision which prohibits funds to be used to reduce military 
     technician levels in the Reserve component.
       Amendment No. 179: Deletes House language prohibiting use 
     of funds to procure active matrix liquid crystal displays, 
     and inserts a new provision which authorizes interagency 
     courier services on a non-reimbursable basis.
       Amendment No. 180: Deletes House language which reduced 
     funds for research, development, test and evaluation for 
     management support.
       Amendment No. 181: Inserts Senate language which requires a 
     study of the number of military personnel receiving food 
     stamp benefits.
       Amendment No. 182: Inserts Senate language which directs 
     the Department to report all costs incurred by DoD, in 
     implementing or supporting resolutions of the United Nations 
     Security Council.
       Amendment No. 183: Deletes Senate language which makes 
     certain countries eligible for allied defense cooperation 
     with NATO countries, and inserts a new provision which 
     compensates members of the National Guard for participation 
     in counterdrug activities.
       Amendment No. 184: Inserts Senate language concerning the 
     progress of reform in Bulgaria.
       Amendment No. 185: Inserts Senate language that directs the 
     Department to report on a master stationing plan for C-130 
     aircraft.
       Amendment No. 186: Inserts Senate language that prohibits 
     the deactivation of any Army ROTC unit until an evaluation 
     has been completed by the Secretary of the Army.
       Amendment No. 187: Inserts Senate language that requires a 
     preference for the use of local and small businesses for 
     environmental restoration of Kaho'olawe Island, Hawaii.
       Amendment No. 188: Inserts and amends Senate language which 
     requires the Department to report on concurrent receipt of 
     disability compensation and retired pay by former military 
     personnel.
       Amendment No. 189: Inserts and amends Senate language which 
     directs the Department to report on its efforts to retain and 
     reassign Army National Guard and Army Reserve personnel.
       Amendment No. 190: Deletes Senate language prohibiting the 
     establishment of the Antler Military Operations Area, and 
     inserts a new provision which reimburses Reserve components 
     when providing support to Intelligence activities.
       Amendment No. 191: Inserts Senate language which requires 
     identification in the budget request for construction 
     projects for intelligence facilities.
       Amendment No. 192: Deletes Senate language that prohibits 
     funds for construction of the headquarters buildings of the 
     National Reconnaissance Office until a review of that project 
     was completed, and inserts a new provision for repayment of 
     guaranteed student loans promised to new recruits.
       The conferees understand that some individuals recruited to 
     the Armed Forces were informed that repayment of outstanding 
     guaranteed student loans would be part of their incentive 
     package. In a limited number of cases, certain State 
     guaranteed loans were assumed to be eligible under this 
     program, and were subsequently determined to fall outside the 
     scope of the existing statute. Section 8132 permits the 
     Secretary to expend up to $75,000 total to settle these 
     loans.
       Amendment No. 193: Inserts and amends Senate language that 
     earmarks funds to procure mission recorders for use in S-3B 
     aircraft.
       Amendment No. 194: Deletes Senate language that directed 
     the President to report on criteria required to gain 
     admission to NATO, and inserts a new provision which 
     transfers the U.S.S. Saratoga to the U.S.S. Saratoga 
     Foundation, State of Florida.


                   report on nato admission standards

       The conferees direct the Secretary of Defense to submit a 
     report to the congressional defense committees defining the 
     specific military, economic and political criteria for 
     admission to the North Atlantic Treaty Organization (NATO). 
     This report shall address measures that would be necessary to 
     ensure full military cooperation and interoperability of 
     potential new entrants with NATO. The Secretary shall submit 
     this report not later than December 15, 1994.
       Amendment No. 195: Inserts and amends Senate language that 
     prohibits funds to be used for the continuous military 
     presence in Somalia after September 30, 1994.
       Amendment No. 196: Inserts Senate language that requires 
     Senate advice and consent on changes in the obligations under 
     the CFE Treaty.
       Amendment No. 197: Inserts Senate language that requires 
     the Department to develop a plan for establishing and 
     implementing a requirement to match disbursements to 
     obligations before making the disbursements.
       Amendment No. 198: Inserts and amends Senate language to 
     express the Sense of the Senate on negotiation of limitations 
     on nuclear weapons testing.
       Amendment No. 199: Inserts and amends Senate language that 
     authorizes the Department to contract for commercial or 
     proprietary credit card services for use by nonappropriated 
     fund instrumentalities.
       Amendment No. 200: Deletes Senate language that prohibited 
     funds for North Korea until the President certified to 
     Congress that certain conditions about North Korea's nuclear 
     weapons program were met, and inserts a new provision to 
     express the sense of the Congress in naming the Walter Reed 
     Army Institute of Research facility.
       Amendment No. 201: Inserts and amends Senate language to 
     provide for the payment of the Aviation Continuation Pay 
     bonus to survivors of persons under certain conditions.
       Amendment No. 202: Inserts and amends Senate language to 
     express the sense of the Congress that the Department shall 
     provide all documents relating to biological warfare tests 
     involving the use of zinc cadmium sulfide.
       Amendment No. 203: Inserts Senate language that prohibits 
     funds for the relocation or reduction of the functions at 
     Fort Chaffee, Arkansas as specified in the 1991 and 1993 Base 
     Closure and Realignment Reports.
       Amendment No. 204: Deletes Senate language which prohibited 
     funds for the development of an advanced threat radar jammer 
     for combat helicopters, and inserts a new provision allowing 
     the Department to apply refunds to current year CHAMPUS 
     requirements.


                      advanced threat radar jammer

       The conferees direct that none of the funds available to 
     the Department of Defense during fiscal year 1995 may be used 
     for negotiating or entering into any agreement with, nor for 
     accepting funds from, a foreign government or an entity 
     controlled by a foreign government for a joint program for 
     the development of an advanced threat radar jammer for combat 
     helicopters until 30 days after the Secretary of Defense, in 
     consultation with the Secretary of State, the Secretary of 
     the Army, and the Director of the Defense Security Assistance 
     Agency, conducts a comprehensive review of the program and 
     submits a report, not later than January 1, 1995, on the 
     results of that review to the congressional defense 
     committees.
       This direction does not apply with respect to a major ally 
     of the United States. The term ``entity controlled by a 
     foreign government'' includes: (a) any domestic or foreign 
     organization or corporation that is effectively owned or 
     controlled by a foreign government; and (b) any individual 
     acting on behalf of a foreign government, as determined by 
     the Secretary of Defense. Such term does not include an 
     organization or corporation that is owned, but is not 
     controlled, either directly or indirectly, by a foreign 
     government if the ownership of that organization or 
     corporation by that foreign government was effective before 
     October 23, 1992. The term ``major ally of the United 
     States'' has the meaning given such term in section 
     2350a(i)(2) of title 10, United States Code.
       The conferees further direct that the required report 
     include the following:
       (a) The legal basis for seeking for the program funds that 
     are neither authorized to be appropriated nor appropriated;
       (b) The consistency of the program with the Department of 
     Defense policy that no foreign military sale of a defense 
     system, and no commitment to foreign military sale of a 
     defense system, be made before operational test and 
     evaluation of the system is successfully completed and the 
     Under Secretary of Defense for Acquisition and Technology has 
     specifically approved the system for sale to a foreign 
     government;
       (c) The mission requirement for an advanced threat radar 
     jammer for combat helicopters;
       (d) An assessment of each threat for which an advanced 
     threat radar jammer would be developed, particularly with 
     regard to each threat to a foreign country with which the 
     United States would jointly develop an advanced threat radar 
     jammer;
       (e) The potential for sensitive electronic warfare 
     technology to be made available to potential adversaries of 
     the United States as a result of United States participation 
     in the program;
       (f) The availability of other nondevelopmental items and 
     less sophisticated technologies for countering the emerging 
     radar detection threats to United States allies; and
       (g) A capability assessment of similar technologies 
     available from other foreign countries and the consequences 
     of proliferation of such technology.
       Amendment No. 205: Inserts Senate language to express the 
     sense of the Senate on the redevelopment plan for Lowry Air 
     Force Base.
       Amendment No. 206: Inserts Senate language establishing 
     criteria for the second low rate production of the Hunter 
     Unmanned Aerial Vehicle.
       Amendment No. 207: Inserts and amends Senate language which 
     extends the availability of funds through fiscal year 1995 
     for the Service Members Occupational Conversion and Training 
     Act program.
       Amendment No. 208: Deletes Senate language concerning Japan 
     fulfilling its commitments under the Host Nation Support 
     Agreement, and inserts a new provision which corrects 
     restrictions placed on funds appropriated under the 
     Humanitarian Assistance appropriation, and repeals the fiscal 
     year 1994 provision regarding winterization activities for 
     the Kurdish relief program.
       Amendment No. 209: Inserts Senate language that prohibits 
     funds to be transferred from the Pentagon Reservation 
     Maintenance Revolving Fund until certification by the 
     Department.
       Amendment No. 210: Deletes Senate language concerning 
     efforts to end the conflict in Bosnia and Hercegovina, and 
     inserts a new provision which provides $14,200,000 for the 
     Philadelphia Naval Complex Utility Reconfiguration Project.


              philadelphia naval complex utilities upgrade

       The conferees note that, in fiscal year 1994, $16.3 million 
     was made available for the Utilities Reconfiguration Project 
     at the Philadelphia Naval Complex. However, execution of the 
     Utilities Reconfiguration Project as currently defined does 
     not provide a functioning utility system for all portions of 
     the naval base. The conferees direct the Navy to design and 
     implement the project so as to provide a functioning utility 
     system for the entire base. The conferees agree to provide an 
     additional $14.2 million so that the Philadelphia Naval 
     Complex Utility Reconfiguration Project can be completed 
     without cessation of utilities for any site in the Complex.
       Amendment No. 211: Deletes Senate language which terminated 
     the U.S. arms embargo of Bosnia and Hercegovina no later than 
     November 15, 1994, and inserts a new provision that requires 
     the Secretary of Defense to award the contract under the 
     Defense Production Act Purchases program for nuclear steam 
     generator tubing for aircraft carriers.
       Amendment No. 212: Inserts and amends Senate language that 
     provides funds for the Joint Primary Aircraft Training System 
     program.
       Amendment No. 213: Inserts Senate language that prohibits 
     the use of funds to retire any B-52H, B-1B or F-111 bomber 
     aircraft, inserts a new provision prohibiting the transfer of 
     funds available to the Department of Defense and the Central 
     Intelligence Agency for drug interdiction or counter-drug 
     activities to any other department or agency of the United 
     States except as specifically provided in an appropriations 
     law, inserts a new provision to provide additional funds to 
     the Asia Foundation, rescinds funds for the Department of 
     State's Contributions to International Organization account 
     and appropriates $192,000,000 for salaries and expenses for 
     the Securities and Exchange Commission contingent upon the 
     enactment of legislation regarding fee collections, inserts a 
     new provision on procurement reform reductions, inserts a new 
     provision rescinding funds from ``Aircraft Procurement, Navy, 
     1993/1995'' account, and inserts a new provision providing 
     for the transfer of $500,000,000 from ``Operation and 
     Maintenance, Defense-wide'' to other operation and 
     maintenance accounts.


                           public law 103-317

       The conference agreement rescinds $4,561,000 of the 
     $877,222,000 provided in Public Law 103-317 for the 
     Department of State's Contributions to International 
     Organizations account. The conference agreement rescinds 
     funds provided primarily for the payment of arrearages in the 
     Contributions to International Organizations account. The 
     conference agreement also includes some technical language 
     changes concerning the availability of the remaining funds 
     for the payment of arrearages.
       The conference agreement also amends Public Law 103-317 to 
     provide an appropriation of $15,000,000 instead of 
     $10,000,000 for the Asia Foundation. This increase is offset 
     by the rescission for the Contributions to International 
     Organizations account included in this conference agreement.
       The conference agreement also amends Public Law 103-317 to 
     provide an additional appropriation of $192,000,000 for the 
     Securities and Exchange Commission, to be offset by the 
     collection of a like amount of section 6(b) registration fees 
     to be deposited to this appropriation. The conference 
     agreement provides that both this appropriation and the 
     offsetting fee collections are available only upon enactment 
     of legislation that continues in fiscal year 1995 the fiscal 
     year 1994 rate of fees collected under 6(b) of the Securities 
     Act of 1933 (15 U.S.C. 77f(b)). The Committee on Ways and 
     Means has reported legislation (H.R. 5060) which continues 
     the section 6(b) fee at a rate of \1/29\th of one percent for 
     fiscal year 1995 and deposits as an offsetting collection to 
     this appropriation any fee collections attributable to a rate 
     in excess of \1/50\th of one percent. The $192,000,000 
     included in the conference agreement, when added to the 
     enacted appropriation of $74,856,000, investment adviser fees 
     of $8,595,000 and anticipated prior year carryover amounts of 
     $30,549,000, provide the SEC with total budget (obligational) 
     authority of $306,000,000 for fiscal year 1995--its full 
     budget request.


                           procurement reform

       The conferees agree to a general provision which reduces 
     procurement funds by $304,900,000. The Administration 
     proposed a budget amendment to reduce Defense Department 
     funds by this amount in anticipation of savings resulting 
     from procurement reform. Noting the enactment of procurement 
     reform legislation, the conferees have agreed to reduce funds 
     in Title III accordingly. The conferees direct that the 
     reduction shall be made proportionately to each individual 
     procurement program.
       Amendment No. 214: Inserts and amends Senate language which 
     appropriates $299,300,000 for Rwanda relief operations and 
     for emergency migrant processing and safe haven costs in and 
     around Cuba.
       Amendment No. 215: Deletes Senate language which added a 
     new Title X for the Megan Kanka Sexually Violent Predators 
     Act.


                   conference total--with comparisons

       The total new budget (obligational) authority for the 
     fiscal year 1995 recommended by the committee of conference, 
     with comparisons to the fiscal year 1994 amount, the 1995 
     budget estimates, and the House and Senate bills for 1995 
     follow:

New budget (obligational) authority, fiscal year 1994..$240,079,645,000
Budget estimates of new (obligational) authority fiscal 244,449,979,000
House bill, fiscal year 1995............................243,573,092,000
Senate bill, fiscal year 1995...........................243,628,029,000
Conference agreement, fiscal year 1995..................243,628,127,000
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 1994+3,548,482,000
    Budget estimates of new (obligational) authority fiscal-821,852,000
    House bill, fiscal year 1995............................+55,035,000
    Senate bill, fiscal year 1995...............................+98,000

     John P. Murtha,
     Norman D. Dicks,
     Charles Wilson,
     W.G. (Bill) Hefner,
     Martin Olav Sabo,
     Julian C. Dixon,
     Peter J. Visclosky,
     George (Buddy) Darden,
     David R. Obey,
     Joseph M. McDade,
     C.W. Bill Young,
     Bob Livingston,
     Jerry Lewis,
     Joe Skeen,
                                Managers on the part of the House.

     Daniel K. Inouye,
     Fritz Hollings,
     J. Bennett Johnston,
     Robert Byrd,
     Patrick J. Leahy,
     Jim Sasser,
     Dennis DeConcini,
     Dale Bumpers
     Frank R. Lautenberg,
     Tom Harkin,
     Ted Stevens,
     Alfonse D'Amato,
     Thad Cochran,
     Arlen Specter,
     Pete V. Domenici,
     Don Nickles,
     Phil Gramm,
     Christopher S. Bond,
     Mark O. Hatfield,
     Mangers on the part of the Senate.

                          ____________________