[Congressional Record Volume 141, Number 150 (Monday, September 25, 1995)]
[House]
[Pages H9453-H9498]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 CONFERENCE REPORT ON H.R. 2126, DEPARTMENT OF DEFENSE APPROPRIATIONS 
                               ACT, 1996

  Mr. YOUNG of Florida submitted the following conference report and 
statement on the bill (H.R. 2126) making appropriations for the 
Department of Defense for the fiscal year ending September 30, 1996, 
and for other purposes:

                  Conference Report (H. Rept. 104-261)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2126) ``making appropriations for the Department of Defense 
     for the fiscal year ending September 30, 1996, 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 House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert: That the following sums are appropriated, 
     out of any money in the Treasury not otherwise appropriated, 
     for the fiscal year ending September 30, 1996, for military 
     functions administered by the Department of Defense and for 
     other purposes, namely:

                      TITLE I--MILITARY PERSONNEL

                        Military Personnel, Army

       For pay, allowances, individual clothing, interest on 
     deposits, gratuities, permanent change of station travel 
     (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Army on active 
     duty (except members of reserve components provided for 
     elsewhere), cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42 
     U.S.C. 402 note), to section 229(b) of the Social Security 
     Act (42 U.S.C. 429(b)), and to the Department of Defense 
     Military Retirement Fund; $19,809,187,000.

                        Military Personnel, Navy

       For pay, allowances, individual clothing, interest on 
     deposits, gratuities, permanent change of station travel 
     (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Navy on active 
     duty (except members of the Reserve provided for elsewhere), 
     midshipmen, and aviation cadets; and for payments pursuant to 
     section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
     note), to section 229(b) of the Social Security Act (42 
     U.S.C. 429(b)) and to the Department of Defense Military 
     Retirement Fund; $17,008,563,000.

                    Military Personnel, Marine Corps

       For pay, allowances, individual clothing, interest on 
     deposits, gratuities, permanent change of station travel 
     (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Marine Corps on 
     active duty (except members of the Reserve provided for 
     elsewhere); and for payments pursuant to section 156 of 
     Public Law 97-377, as amended (42 U.S.C. 402 note), to 
     section 229(b) of the Social Security Act (42 U.S.C. 429(b)), 
     and to the Department of Defense Military Retirement Fund; 
     $5,885,740,000.

                     Military Personnel, Air Force

       For pay, allowances, individual clothing, interest on 
     deposits, gratuities, permanent change of station travel 
     (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Air Force on 
     active duty (except members of reserve components provided 
     for elsewhere, cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42 
     U.S.C. 402 note), to section 229(b) of the Social Security 
     Act (42 U.S.C. 429(b)), and to the Department of Defense 
     Military Retirement Fund; $17,207,743,000.

                        Reserve Personnel, Army

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     Reserve on active duty under sections 10211, 10302, and 3038 
     of title 10, United States Code, or while serving on active 

[[Page H 9454]]
     duty under section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty or 
     other duty, and for members of the Reserve Officers' Training 
     Corps, and expenses authorized by section 16131 of title 10, 
     United States Code; and for payments to the Department of 
     Defense Military Retirement Fund; $2,122,466,000.

                        Reserve Personnel, Navy

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Navy 
     Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Reserve Officers' Training Corps, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund; $1,355,523,000.

                    Reserve Personnel, Marine Corps

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Marine 
     Corps Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Marine Corps platoon leaders class, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund; $378,151,000.

                      Reserve Personnel, Air Force

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air Force 
     Reserve on active duty under sections 10211, 10305, and 8038 
     of title 10, United States Code, or while serving on active 
     duty under section 12301(d) of title 10, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     reserve training, or while performing drills or equivalent 
     duty or other duty, and for members of the Air Reserve 
     Officers' Training Corps, and expenses authorized by section 
     16131 of title 10, United States Code; and for payments to 
     the Department of Defense Military Retirement Fund; 
     $784,586,000.

                     National Guard Personnel, Army

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     National Guard while on duty under section 10211, 10302, or 
     12402 of title 10 or section 708 of title 32, United States 
     Code, or while serving on duty under section 12301(d) of 
     title 10 or section 502(f) of title 32, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund; $3,242,422,000.

                  National Guard Personnel, Air Force

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air 
     National Guard on duty under section 10211, 10305, or 12402 
     of title 10 or section 708 of title 32, United States Code, 
     or while serving on duty under section 12301(d) of title 10 
     or section 502(f) of title 32, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund; $1,259,627,000.

                  TITLE II--OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army


                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Army, as authorized by law; 
     and not to exceed $14,437,000 can be used for emergencies and 
     extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Army, and payments may be 
     made on his certificate of necessity for confidential 
     military purposes; $18,321,965,000 and, in addition, 
     $50,000,000 shall be derived by transfer from the National 
     Defense Stockpile Transaction Fund.

                    Operation and Maintenance, Navy


                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Navy and the Marine Corps, 
     as authorized by law; and not to exceed $4,151,000 can be 
     used for emergencies and extraordinary expenses, to be 
     expended on the approval or authority of the Secretary of the 
     Navy, and payments may be made on his certificate of 
     necessity for confidential military purposes; $21,279,425,000 
     and, in addition, $50,000,000 shall be derived by transfer 
     from the National Defense Stockpile Transaction Fund: 
     Provided, That of the funds appropriated under this heading, 
     $595,100,000 shall be available only for the liquidation of 
     prior year accumulated operating losses of the Department of 
     the Navy activities included in the Defense Business 
     Operations Fund.

                Operation and Maintenance, Marine Corps

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Marine Corps, as authorized 
     by law; $2,392,522,000.

                  Operation and Maintenance, Air Force


                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Air Force, as authorized by 
     law; and not to exceed $8,362,000 can be used for emergencies 
     and extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Air Force, and payments may 
     be made on his certificate of necessity for confidential 
     military purposes; $18,561,267,000 and, in addition, 
     $50,000,000 shall be derived by transfer from the National 
     Defense Stockpile Transaction Fund: Provided, That the 
     Secretary of the Air Force may acquire all right, title, and 
     interest of any party in and to parcels of real property, 
     including improvements thereon, consisting of not more than 
     92 acres, located near King Salmon Air Force Station 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.

                Operation and Maintenance, Defense-Wide


                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of activities and agencies of the 
     Department of Defense (other than the military departments), 
     as authorized by law; $10,388,595,000, of which not to exceed 
     $25,000,000 may be available for the CINC initiative fund 
     account; and of which not to exceed $28,588,000 can be used 
     for emergencies and extraordinary expenses, to be expended on 
     the approval or authority of the Secretary of Defense, and 
     payments may be made on his certificate of necessity for 
     confidential military purposes: Provided, That of the funds 
     appropriated under this heading, $20,000,000 shall be made 
     available only for use in federally owned education 
     facilities located on military installations for the purpose 
     of transferring title of such facilities to the local 
     education agency: Provided further, That of the funds 
     available under this heading, $300,000,000 shall be available 
     only for transfer to the Coast Guard in support of the 
     national security functions of the Coast Guard, while 
     operating in conjunction with and in support of the Navy: 
     Provided further, That funds transferred pursuant to this 
     section are in addition to transfer authority provided 
     elsewhere in this Act.

                Operation and Maintenance, Army Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Army Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications; 
     $1,119,191,000.

                Operation and Maintenance, Navy Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Navy Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications; 
     $859,542,000.

            Operation and Maintenance, Marine Corps Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Marine Corps Reserve; repair of 
     facilities and equipment; hire of passenger motor vehicles; 
     travel and transportation; care of the dead; recruiting; 
     procurement of services, supplies, and equipment; and 
     communications; $100,283,000.

              Operation and Maintenance, Air Force Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Air Force Reserve; repair of 
     facilities and equipment; hire of passenger motor vehicles; 
     travel and transportation; care of the dead; recruiting; 
     procurement of services, supplies, and equipment; and 
     communications; $1,519,287,000.

             Operation and Maintenance, Army National Guard

       For expenses of training, organizing, and administering the 
     Army National Guard, including medical and hospital treatment 
     and related expenses in non-Federal hospitals; maintenance, 
     operation, and repairs to structures and facilities; hire of 
     passenger motor vehicles; personnel services in the National 
     Guard Bureau; travel expenses (other than mileage), as 
     authorized by law for Army personnel on active duty, for Army 
     National Guard division, regimental, and battalion commanders 
     while inspecting units in compliance with National Guard 
     Bureau regulations when specifically authorized by the Chief, 
     National Guard Bureau; supplying and equipping the Army 
     National Guard as authorized by law; and expenses of repair, 
     modification, maintenance, and issue of supplies and 
     equipment (including aircraft); $2,440,808,000.

             Operation and Maintenance, Air National Guard

       For operation and maintenance of the Air National Guard, 
     including medical and hospital treatment and related expenses 
     in non-Federal hospitals; maintenance, operation, repair, and 
     other necessary expenses of facilities for the training and 
     administration of the Air National Guard, including repair of 
     facilities, maintenance, operation, and modification of 
     aircraft; transportation of things; hire of passenger motor 
     vehicles; supplies, materials, and equipment, as authorized 
     by law for the Air National 

[[Page H 9455]]
     Guard; and expenses incident to the maintenance and use of supplies, 
     materials, and equipment, including such as may be furnished 
     from stocks under the control of agencies of the Department 
     of Defense; travel expenses (other than mileage) on the same 
     basis as authorized by law for Air National Guard personnel 
     on active Federal duty, for Air National Guard commanders 
     while inspecting units in compliance with National Guard 
     Bureau regulations when specifically authorized by the Chief, 
     National Guard Bureau; $2,776,121,000.

          United States Court of Appeals for the Armed Forces

       For salaries and expenses necessary for the United States 
     Court of Appeals for the Armed Forces; $6,521,000, of which 
     not to exceed $2,500 can be used for official representation 
     purposes.

                   Environmental Restoration, Defense


                     (including transfer of funds)

       For the Department of Defense; $1,422,200,000, to remain 
     available until transferred: Provided, That the Secretary of 
     Defense shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of Defense, or for similar purposes (including 
     programs and operations at sites formerly used by the 
     Department of Defense), transfer the funds made available by 
     this appropriation to other appropriations made available to 
     the Department of Defense, to be merged with and to be 
     available for the same purposes and for the same time period 
     as the appropriations of funds to which transferred, as 
     follows:
       Operation and Maintenance, Army, $631,900,000;
       Operation and Maintenance, Navy, $365,300,000;
       Operation and Maintenance, Air Force, $368,000,000; and
       Operation and Maintenance, Defense-wide, $57,000,000: 
     Provided further,  That upon a determination that all or part 
     of the funds transferred from this appropriation are not 
     necessary for the purposes provided herein, such amounts may 
     be transferred back to this appropriation.

                            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 to 
     be held in Atlanta, Georgia) provided by any component of the 
     Department of Defense to the 1996 Games of the XXVI Olympiad; 
     $15,000,000: Provided, That funds appropriated under this 
     heading shall remain available for obligation until September 
     30, 1997.

             Overseas Humanitarian, Disaster, and Civic Aid

       For expenses relating to the Overseas Humanitarian, 
     Disaster, and Civic Aid programs of the Department of Defense 
     (consisting of the programs provided under sections 401, 402, 
     404, 2547, and 2551 of title 10, United States Code); 
     $50,000,000: Provided, That of the funds available under this 
     heading, $20,000,000 shall be available for training and 
     activities related to the clearing of landmines for 
     humanitarian purposes.

                  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 establishing programs to prevent the 
     proliferation of weapons, weapons components, and weapon-
     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; $300,000,000 
     to remain available until expended.

                         TITLE III--PROCUREMENT

                       Aircraft Procurement, Army

       For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $1,558,805,000, to remain available for obligation until 
     September 30, 1998: Provided, That not less than nine UH-60L 
     helicopters shall be made available to the Army National 
     Guard for the medical evacuation mission.

                       Missile Procurement, Army

       For construction, procurement, production, modification, 
     and modernization of missiles, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $865,555,000, to remain available for obligation until 
     September 30, 1998.

        Procurement of Weapons and Tracked Combat Vehicles, Army

       For construction, procurement, production, and modification 
     of weapons and tracked combat vehicles, equipment, including 
     ordnance, spare parts, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including the land necessary therefor, for 
     the foregoing purposes, and such lands and interests therein, 
     may be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; and other expenses necessary for the 
     foregoing purposes; $1,652,745,000, to remain available for 
     obligation until September 30, 1998.

                    Procurement of Ammunition, Army

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854, title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant and 
     Government and contractor-owned equipment layaway; and other 
     expenses necessary for the foregoing purposes; 
     $1,110,685,000, to remain available for obligation until 
     September 30, 1998.3

                        Other Procurement, Army

       For construction, procurement, production, and modification 
     of vehicles, including tactical, support, and nontracked 
     combat vehicles; the purchase of not to exceed 41 passenger 
     motor vehicles for replacement only; communications and 
     electronic equipment; other support equipment; spare parts, 
     ordnance, and accessories therefor; specialized equipment and 
     training devices; expansion of public and private plants, 
     including the land necessary therefor, for foregoing 
     purposes, and such lands and interests therein, may be 
     acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; and other expenses necessary for the 
     foregoing purposes; $2,769,443,000, to remain available for 
     obligation until September 30, 1998.

                       Aircraft Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     spare parts, and accessories therefor; specialized equipment; 
     expansion of public and private plants, including the land 
     necessary therefor, and such lands and interests therein, may 
     be acquired, and construction prosecuted thereon prior to 
     approval of title: and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; $4,589,394,000, to remain available 
     for obligation until September 30, 1998.

                       Weapons Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of missiles, torpedoes, other weapons, and 
     related support equipment including spare parts, and 
     accessories therefor; expansion of public and private plants, 
     including the land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant and 
     Government and contractor-owned equipment layaway; 
     $1,669,827,000, to remain available for obligation until 
     September 30, 1998.

            Procurement of Ammunition, Navy and Marine Corps

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854, title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $430,053,000, to remain available for obligation until 
     September 30, 1998.

                   Shipbuilding and Conversion, Navy

       For expenses necessary for the construction, acquisition, 
     or conversion of vessels as authorized by law, including 
     armor and armament thereof, plant equipment, appliances, and 
     machine tools and installation thereof in public and private 
     plants; reserve plant and Government and contractor-owned 
     equipment layaway; procurement of critical, long leadtime 
     components and designs for vessels to be constructed or 
     converted in the future; and expansion of public and private 
     plants, including land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title, as follows:
       For continuation of the SSN-21 attack submarine program, 
     $700,000,000;
       NSSN-1 (AP), $704,498,000;
       NSSN-2 (AP), $100,000,000;
       CVN Refuelings, $221,988,000; 

[[Page H 9456]]

       DGS-51 destroyer program, $2,169,257,000, for the purchase 
     of two destroyers and advance procurement: Provided, That the 
     Secretary of the Navy shall award a contract, if successfully 
     negotiated, for two additional DDG-51 destroyers on October 
     1, 1996;
       LHD-1 amphibious assault ship program, $1,300,000,000;
       LPD-17 amphibious transport dock ship, $974,000,000;
       Fast patrol craft, $9,500,000;
       T-AGS-64 multi-purpose oceanographic survey ship, 
     $16,000,000;
       LSD-52, $20,000,000;
       For craft, outfitting, post delivery conversions, and first 
     destination transportation, $428,715,000; In all: 
     $6,643,958,000, to remain available for obligation until 
     September 30, 2000: Provided, That additional obligations may 
     be incurred after September 30, 2000, for engineering 
     services, tests, evaluations, and other such budgeted work 
     that must be performed in the final state of ship 
     construction: Provided further, That none of the funds herein 
     provided for the construction or conversion of any naval 
     vessel to be constructed in shipyards in the United States 
     shall be expended in foreign facilities for the construction 
     of major components of such vessel: Provided further, That 
     none of the funds herein provided shall be used for the 
     construction of any naval vessel in foreign shipyards.

                        Other Procurement, Navy

       For procurement, production, and modernization of support 
     equipment and materials not otherwise provided for, Navy 
     ordnance (except ordnance for new aircraft, new ships, and 
     ships authorized for conversion); the purchase of not to 
     exceed 252 passenger motor vehicles for replacement only; 
     expansion of public and private plants, including the land 
     necessary therefor, and such lands and interests therein, may 
     be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; $2,503,581,000, to remain available 
     for obligation until September 30, 1998.

                       Procurement, Marine Corps

       For expenses necessary for the procurement, manufacture, 
     and modification of missiles, armament, military equipment, 
     spare parts, and accessories therefor; plant equipment, 
     appliances, and machine tools, and installation thereof in 
     public and private plants; reserve plant and Government and 
     contractor-owned equipment layaway; vehicles for the Marine 
     Corps, including the purchase of not to exceed 194 passenger 
     motor vehicles for replacement only; and expansion of public 
     and private plants, including land necessary therefor, and 
     such lands and interests therein, may be acquired and 
     construction prosecuted thereon prior to approval of title; 
     $458,947,000, to remain available for obligation until 
     September 30, 1998.

                    Aircraft Procurement, Air Force

       For construction, procurement, and modification of aircraft 
     and equipment, including armor and armament, specialized 
     ground handling equipment, and training devices, spare parts, 
     and accessories therefor; specialized equipment; expansion of 
     public and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things; 
     $7,367,983,000, to remain available for obligation until 
     September 30, 1998.

                     Missile Procurement, Air Force

       For construction, procurement, and modification of 
     missiles. spacecraft, rockets, and related equipment, 
     including spare parts, and accessories therefor, ground 
     handling equipment, and training devices; expansion of public 
     and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things; 
     $2,943,931,000, to remain available for obligation until 
     September 30, 1998.

                  Procurement of Ammunition, Air Force

       For construction, procurement, production, and modification 
     of ammunition and accessories therefor; specialized equipment 
     and training devices; expansion of public and private plants, 
     including ammunition facilities authorized by section 2854, 
     title 10, United States Code, and the land necessary 
     therefor, for the foregoing purposes, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant and 
     Government and contractor-owned equipment layaway; and other 
     expenses necessary for the foregoing purposes; $338,800,000, 
     to remain available for obligation until September 30, 1998.

                      Other Procurement, Air Force

       For procurement and modification of equipment (including 
     ground guidance and electronic control equipment, and ground 
     electronic and communication equipment), and supplies, 
     materials, and spare parts therefor, not otherwise provided 
     for; the purchase of not to exceed 385 passenger motor 
     vehicles for replacement only; the purchase of 1 vehicle 
     required for physical security of personnel, notwithstanding 
     price limitations applicable to passenger vehicles but not to 
     exceed $260,000 per vehicle; and expansion of public and 
     private plants, Government-owned equipment and installation 
     thereof in such plants, erection of structures, and 
     acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon, prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; $6,284,230,000, to remain available for obligation 
     until September 30, 1998.

                       Procurement, Defense-Wide

       For expenses of activities and agencies of the Department 
     of Defense (other than the military departments) necessary 
     for procurement, production, and modification of equipment, 
     supplies, materials and spare parts therefor, not otherwise 
     provided for; the purchase of not to exceed 451 passenger 
     motor vehicles, of which 447 shall be for replacement only; 
     expansion of public and private plants, equipment, and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; $2,124,379,000, to remain available for obligation 
     until September 30, 1998.

                  National Guard and Reserve Equipment

       For procurement of aircraft, missiles, tracked combat 
     vehicles, ammunition, other weapons, and other procurement 
     for the reserve components of the Armed Forces; $777,000,000, 
     to remain available for obligation until September 30, 1998: 
     Provided, That the Chiefs of the Reserve and National Guard 
     components shall, not later than November 1, 1995, 
     individually submit to the congressional defense committees 
     the modernization priority assessment for their respective 
     Reserve or National Guard component.

          TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, as authorized by law; 
     $4,870,684,000, to remain available for obligation until 
     September 30, 1997.

            Research, Development, Test and Evaluation, Navy

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, as authorized by law; 
     $8,748,132,000, to remain available for obligation until 
     September 30, 1997: Provided, That of the funds provided in 
     Public Law 103-335, in title IV, under the heading 
     ``Research, Development, Test and Evaluation, Navy'', 
     $5,000,000 shall be made available as a grant only to the 
     Marine and Environmental Research and Training Station 
     (MERTS) for laboratory and other efforts associated with 
     research, development, and other programs of major importance 
     to the Department of Defense: Provided further, That funds 
     appropriated in this paragraph which are available for the V-
     22 may be used to meet unique requirements of the Special 
     Operations Forces.

         Research, Development, Test and Evaluation, Air Force

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment, as authorized by law; 
     $13,126,567,000, to remain available for obligation until 
     September 30, 1997: Provided, That of the funds made 
     available in this paragraph, $25,000,000 shall be only for 
     development of reusable launch vehicle technologies: Provided 
     further, That not less than $9,500,000 of the funds 
     appropriated in this paragraph shall be made available only 
     for the Joint Seismic Program and the Global Seismographic 
     Network.

        Research, Development, Test and Evaluation, Defense-Wide

       For expenses of activities and agencies of the Department 
     of Defense (other than the military departments), necessary 
     for basic and applied scientific research, development, test 
     and evaluation; advanced research projects as may be 
     designated and determined by the Secretary of Defense, 
     pursuant to law; maintenance, rehabilitation, lease, and 
     operation of facilities and equipment, as authorized by law; 
     $9,411,057,000, to remain available for obligation until 
     September 30, 1997: Provided, That not less than $200,442,000 
     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 the funds made 
     available under the second proviso under this heading in 
     Public Law 103-335 (108 Stat. 2613) shall also be available 
     to cover the reasonable costs of the administration of loan 
     guarantees referred to in that proviso and shall be available 
     to cover such costs of administration and the costs of such 
     loan guarantees until September 30, 1998.

               Developmental Test and Evaluation, Defense

       For expenses, not otherwise provided for, of independent 
     activities of the Director, Test and Evaluation in the 
     direction and supervision of developmental test and 
     evaluation, including performance and joint developmental 
     testing and evaluation; and administrative expenses in 
     connection therewith; $251,082,000, to remain available for 
     obligation until September 30, 1997.

                Operational Test and Evaluation, Defense

       For expenses, not otherwise provided for, necessary for the 
     independent activities of the Director, Operational Test and 
     Evaluation in the 

[[Page H 9457]]
     direction and supervision of operational test and evaluation, including 
     initial operational test and evaluation which is conducted 
     prior to, and in support of, production decisions; joint 
     operational testing and evaluation; and administrative 
     expenses in connection therewith; $22,587,000 to remain 
     available for obligation until September 30, 1997.

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

                    Defense Business Operations Fund

       For the Defense Business Operations Fund; $878,700,000.

                     National Defense Sealift Fund

       For National Defense Sealift Fund programs, projects, and 
     activities, and for expenses 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); $1,024,220,000, to 
     remain available until expended: Provided, That none of the 
     funds provided in this paragraph shall be used to award a new 
     contract hat 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 acquire capability for national 
     security purposes: Provided further, That the Secretary of 
     the Navy may obligate not to exceed $110,000,000 from 
     available appropriations to the Navy for the procurement of 
     one additional MPS ship.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       For expenses, not otherwise provided for, for medical and 
     health care programs of the Department of Defense, as 
     authorized by law; $10,226,358,000, of which $9,938,325,000 
     shall be for Operation and maintenance, of which 
     $288,033,000, to remain available for obligation until 
     September 30, 1998, shall be for Procurement: Provided, 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 the date for 
     implementation of the nation-wide managed care military 
     health services system shall be extended to September 30, 
     1997: Provided further, That of the funds provided under this 
     heading, $3,400,000 is available only to permit private 
     sector or non-federal physicians, who have used and will use 
     the antibacterial treatment method based upon the excretion 
     of dead 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.

           Chemical Agents and Munitions Destruction, Defense

       For expenses, not otherwise provided for, necessary for the 
     destruction of the United States stockpile of lethal chemical 
     agents and munitions in accordance with the provisions of 
     section 1412 of the Department of Defense Authorization Act, 
     1986 (50 U.S.C. 1521), and for the destruction of other 
     chemical warfare materials that are not in the chemical 
     weapon stockpile, $672,250,000, of which $353,850,000 shall 
     be for Operation and maintenance, $265,000,000 shall be for 
     Procurement to remain available until September 30, 1998, and 
     $53,400,000 shall be for Research, development, test and 
     evaluation to remain available until September 30, 1997.

         Drug Interdiction and Counter-Drug Activities, Defense


                     (including transfer of funds)

       For drug interdiction and counter-drug activities of the 
     Department of Defense, 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; for Operation and 
     maintenance; for Procurement; and for Research, development, 
     test and evaluation; $688,432,000: Provided, That the funds 
     appropriated 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.

                    Office of the Inspector General

       For expenses and activities of the Office of the Inspector 
     General in carrying out the provisions of the Inspector 
     General Act of 1978, as amended; $178,226,000, of which 
     $177,226,000 shall be for Operation and maintenance, of which 
     not to exceed $400,000 is available for emergencies and 
     extraordinary expenses to be expended on the approval or 
     authority of the Inspector General, and payments may be made 
     on his certificate of necessity for confidential military 
     purposes; and of which $1,000,000 to remain available until 
     September 30, 1998, shall be for Procurement.

                      TITLE VII--RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

       For payment to the Central Intelligence Agency Retirement 
     and Disability System Fund, to maintain proper funding level 
     for continuing the operation of the Central Intelligence 
     Agency Retirement and Disability System; $213,900,000.

                 National Security Education Trust Fund

       For the purposes of title VIII of Public Law 102-183, 
     $7,500,000, to be derived from the National Security 
     Education Trust Fund, to remain available until expended: 
     Provided, That any individual accepting a scholarship or 
     fellowship from this program agrees to be employed by the 
     Department of Defense or in the Intelligence Community in 
     accordance with federal employment standards.

               Intelligence Community Management Account

       For necessary expenses of the Intelligence Community 
     Management Account; $90,683,000.

     Kaho'olawe Island Conveyance, Remediation, and Environmental 
                         Restoration Trust Fund

       For payment to the Kaho'olawe Island Conveyance, 
     Remediation, and Environmental Restoration Trust Fund, as 
     authorized by law, $25,000,000, to remain available until 
     expended.

                     TITLE VIII--GENERAL PROVISIONS

       Sec. 8001. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes not 
     authorized by the Congress.
                                 ______

       Sec. 8002. During the current fiscal year, provisions of 
     law prohibiting the payment of compensation to, or employment 
     of, any person not a citizen of the United States shall not 
     apply to personnel of the Department of Defense; Provided, 
     That salary increases granted to direct and indirect hire 
     foreign national employees of the Department of Defense 
     funded by this Act shall not be at a rate in excess of the 
     percentage increased authorized by law for civilian employees 
     of the Department of Defense whose pay is computed under the 
     provisions of section 5332 of title 5, United States Code, or 
     at a rate in excess of the percentage increase provided by 
     the appropriate host nation to its own employees, whichever 
     is higher: Provided further, That this section shall not 
     apply to Department of Defense foreign service national 
     employees serving at United States diplomatic missions whose 
     pay is set by the Department of State under the Foreign 
     Service Act of 1980: Provided further, That the limitations 
     of this provision shall not apply to foreign national 
     employees of the Department of Defense in the Republic of 
     Turkey.
       Sec. 8003. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year, unless expressly so provided herein.
       Sec. 8004. No more than 20 per centum of the appropriations 
     in this Act which are limited for obligation during the 
     current fiscal year shall be obligated during the last two 
     months of the fiscal year: Provided, That this section shall 
     not apply to obligations for support of active duty training 
     of reserve components or summer camp training of the Reserve 
     Officers' Training Corps.


                          (transfer of funds)

       Sec. 8005. Upon determination by the Secretary of Defense 
     that such action is necessary in the national interest, he 
     may, with the approval of the Office of Management and 
     Budget, transfer not to exceed $2,400,000,000 of working 
     capital funds of the Department of Defense or funds made 
     available in this Act to the Department of Defense for 
     military functions (except military construction) between 
     such appropriations or funds or any subdivision thereof, to 
     be merged with and to be available for the same purposes, and 
     for the same time period, as the appropriation or fund to 
     which transferred: Provided, That such authority to transfer 
     may not be used unless for higher priority items, based on 
     unforseen military requirements, than those for which 
     originally appropriated and in no case where the item for 
     which funds are requested has been denied by Congress: 
     Provided further, That the Secretary of Defense shall notify 
     the Congress promptly of all transfers made pursuant to this 
     authority or any other authority in this Act: Provided 
     further, That no part of the funds in this Act shall be 
     available to prepare or present a request to the Committees 
     on Appropriations for reprogramming of funds, unless for 
     higher priority items, based on unforeseen military 
     requirements, than those for which originally appropriated 
     and in no case where the item for which reprogramming is 
     requested has been denied by the Congress.


                          (transfer of funds)

       Sec. 8006. During the current fiscal year, cash balances in 
     working capital funds of the Department of Defense 
     established pursuant to section 2208 of title 10, United 
     States Code, may be maintained in only such amounts as are 
     necessary at any time for cash disbursements to be made from 
     such funds: Provided, That transfers may be made between such 
     funds and the ``Foreign Currency Fluctuations, Defense'' and 
     ``Operation and Maintenance'' appropriation accounts in such 
     amounts as may be determined by the Secretary of Defense, 
     with the approval of the Office of Management and Budget, 
     except that such transfers may not be made unless the 
     Secretary of Defense has notified the Congress of the 
     proposed transfer. Except in amounts equal to the amounts 
     appropriated to working capital funds in this Act, no 
     obligations may be made against a working capital fund to 
     procure or increase the value of war reserve material 
     inventory, unless the Secretary of Defense has notified the 
     Congress prior to any such obligation.
       Sec. 8007. Using funds available by this Act or any other 
     Act, the Secretary of the Air Force, pursuant to a 
     determination under section 2690 of title 10, United States 
     Code, may implement cost-effective agreements for required 
     heating 

[[Page H 9458]]
     facility modernization in the Kaiserslautern Military Community in the 
     Federal Republic of Germany: Provided, That in the City of 
     Kaiserslautern such agreements will include the use of United 
     States anthracite as the base load energy for municipal 
     district heat to the United States Defense installations: 
     Provided further, That at Landstuhl Army Regional Medical 
     Center and Ramstein Air Base, furnished heat may be obtained 
     from private, regional or municipal services, if provisions 
     are included for the consideration of United States coal as 
     an energy source: Provided further, That none of the funds 
     available to the Department of Defense in this Act shall be 
     used by the Secretary of a military department to purchase 
     coal or coke from foreign nations for use at United States 
     defense facilities in Europe when coal from the United States 
     is available.
       Sec. 8008. Funds appropriated by this Act may not be used 
     to initiate a special access program without prior 
     notification 30 calendar days in session in advance to the 
     congressional defense committees.
       Sec. 8009. None of the funds contained in this Act 
     available for the Civilian Health and Medical Program of the 
     Uniformed Services shall be available for payments to 
     physicians and other non-institutional health care providers 
     in excess of the amounts allowed in fiscal year 1995 for 
     similar services, except that: (a) for services for which the 
     Secretary of Defense determines an increase is justified by 
     economic circumstances, the allowable amounts may be 
     increased in accordance with appropriate economic index data 
     similar to that used pursuant to title XVIII of the Social 
     Security Act; and (b) for services the Secretary determines 
     are overpriced based on allowable payments under title XVIII 
     of the Social Security Act, the allowable amounts shall be 
     reduced by not more than 15 percent (except that the 
     reduction may be waived if the Secretary determines that it 
     would impair adequate access to health care services for 
     beneficiaries). The Secretary shall solicit public comment 
     prior to promulgating regulations to implement this section. 
     Such regulations shall include a limitation, similar to that 
     used under title XVIII of the Social Security Act, on the 
     extent to which a provider may bill a beneficiary an actual 
     charge in excess of the allowable amount.
       Sec. 8010. None of the funds provided in this Act shall be 
     available to initiate (1) a multiyear contract that employs 
     economic order quantity procurement in excess of $20,000,000 
     in any one year of the contract or that includes an unfunded 
     contingent liability in excess of $20,000,000, or (2) a 
     contract for advance procurement leading to a multiyear 
     contract that employs economic order quantity procurement in 
     excess of $20,000,000 in any one year, unless the 
     congressional defense committees have been notified at least 
     thirty days in advance of the proposed contract award: 
     Provided, That no part of any appropriation contained in this 
     Act shall be available to initiate a multiyear contract for 
     which the economic order quantity advance procurement is not 
     funded at least to the limits of the Government's liability: 
     Provided further, That no part of any appropriation contained 
     in this Act shall be available to initiate multiyear 
     procurement contracts for any systems or component thereof if 
     the value of the multiyear contract would exceed $500,000,000 
     unless specifically provided in this Act: Provided further, 
     That no multiyear procurement contract can be terminated 
     without 10-day prior notification to the congressional 
     defense committees: Provided further, That the execution of 
     multiyear authority shall require the use of a present value 
     analysis to determine lowest cost compared to an annual 
     procurement.
       Funds appropriated in title III of this Act may be used for 
     multiyear procurement contracts as follows:
       UH-60 Blackhawk helicopter;
       Apache Longbow helicopter; and
       M1A2 tank upgrade.
       Sec. 8011. Within the funds appropriated for the operation 
     and maintenance of the Armed Forces, funds are hereby 
     appropriated pursuant to section 401 of title 10, United 
     States Code, for humanitarian and civic assistance costs 
     under chapter 20 of title 10, United States Code. Such funds 
     may also be obligated for humanitarian and civic assistance 
     costs incidental to authorized operations and pursuant to 
     authority granted in section 401 of chapter 20 of title 10, 
     United States Code, and these obligations shall be reported 
     to Congress on September 30 of each year: Provided, That 
     funds available for operation and maintenance shall be 
     available for providing humanitarian and similar assistance 
     by using Civic Action Teams in the Trust Territories of the 
     Pacific Islands and freely associated states of Micronesia, 
     pursuant to the Compact of Free Association as authorized by 
     Public Law 99-239: Provided further, That upon a 
     determination by the Secretary of the Army that such action 
     is beneficial for graduate medical education programs 
     conducted at Army medical facilities located in Hawaii, the 
     Secretary of the Army may authorize the provision of medical 
     services at such facilities and transportation to such 
     facilities, on a nonreimbursable basis, for civilian patients 
     from American Samoa, the Commonwealth of the Northern Mariana 
     Islands, the Marshall Islands, the Federated States of 
     Micronesia, Palau, and Guam.
       Sec. 8012. (a) During fiscal year 1996, the civilian 
     personnel of the Department of Defense may not be managed on 
     the basis of any end-strength, and the management of such 
     personnel during that fiscal year shall not be subject to any 
     constraint or limitation (known as an end-strength) on the 
     number of such personnel who may be employed on the last day 
     of such fiscal year.
       (b) The fiscal year 1997 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 1997 Department of 
     Defense budget request shall be prepared and submitted to the 
     Congress as if subsections (a) and (b) of this provision were 
     effective with regard to fiscal year 1997.
       (c) Nothing in this section shall be construed to apply to 
     military (civilian) technicians.
       Sec. 8013. None of the funds provided in this Act shall be 
     available either to return any IOWA Class Battleships to the 
     Naval Register, or to retain the logistical support necessary 
     for support of any IOWA Class Battleships in active service.
       Sec. 8014. Notwithstanding any other provision of law, none 
     of the funds made available by this Act shall be used by the 
     Department of Defense to exceed, outside the fifty United 
     States, its territories, and the District of Columbia, 
     125,000 civilian workyears: Provided, That workyears shall be 
     applied as defined in the Federal Personnel Manual: Provided 
     further, That workyears expended in dependent student hiring 
     programs for disadvantaged youths shall not be included in 
     this workyear limitation.
       Sec. 8015. None of the funds made available by this Act 
     shall be used in any way, directly or indirectly, to 
     influence congressional action on any legislation or 
     appropriation matters pending before the Congress.
       Sec. 8016. None of the funds appropriated for the 
     Department of Defense during the current fiscal year and 
     hereafter shall be obligated for the pay of any individual 
     who is initially employed after the date of enactment of this 
     Act as a technician in the administration and training of the 
     Army Reserve and the maintenance and repair of supplies 
     issued to the Army Reserve unless such individual is also a 
     military member of the Army Reserve troop program unit that 
     he or she is employed to support. Those technicians employed 
     by the Army Reserve in areas other than Army Reserve troop 
     program units need only be members of the Selected Reserve.
       Sec. 8017. Notwithstanding any other provision of law, 
     during the current fiscal year and hereafter, the Secretaries 
     of the Army and Air Force may authorize the retention in an 
     active status until age sixty of any person who would 
     otherwise be removed from an active status and who is 
     employed as a National Guard or Reserve technician in a 
     position in which active status in a reserve component of the 
     Army or Air Force is required as a condition of that 
     employment.
       Sec. 8018. (a) None of the funds appropriated by this Act 
     shall be used to make contributions to the Department of 
     Defense Education Benefits Fund pursuant to section 2006(g) 
     of title 10, United States Code, representing the normal cost 
     for future benefits under section 1415(c) of title 38, United 
     States Code, for any member of the armed services who, on or 
     after the date of enactment of this Act--
       (1) enlists in the armed services for a period of active 
     duty of less than three years; or
       (2) receives an enlistment bonus under section 308a or 308f 
     of title 37, United States Code,

     nor shall any amounts representing the normal cost of such 
     future benefits be transferred from the Fund by the Secretary 
     of the Treasury to the Secretary of Veterans Affairs pursuant 
     to section 2006(d) of title 10, United States Code; nor shall 
     the Secretary of Veterans Affairs pay such benefits to any 
     such member: Provided, That, in the case of a member covered 
     by clause (1), these limitations shall not apply to members 
     in combat arms skills or to members who enlist in the armed 
     services on or after July 1, 1989, under a program continued 
     or established by the Secretary of Defense in fiscal year 
     1991 to test the cost-effective use of special recruiting 
     incentives involving not more than nineteen noncombat arms 
     skills approved in advance by the Secretary of Defense: 
     Provided further, That this subsection applies only to active 
     components of the Army.
       (b) None of the funds appropriated by this Act shall be 
     available for the basic pay and allowances of any member of 
     the Army participating as a full-time student and receiving 
     benefits paid by the Secretary of Veterans Affairs from the 
     Department of Defense Education Benefits Fund when time spent 
     as a full-time student is credited toward completion of a 
     service commitment: Provided, That this subsection shall not 
     apply to those members who have reenlisted with this option 
     prior to October 1, 1987: Provided further, That this 
     subsection applies only to active components of the Army.
       Sec. 8019. Funds appropriated for the Department of Defense 
     during the current fiscal year and hereafter shall be 
     available for the payment of not more than 75 percent of the 
     changes of a postsecondary educational institution for the 
     tuition or expenses of an officer in the Ready Reserve of the 
     Army National Guard or Army Reserve for education or training 
     during his off-duty periods, except that no part of the 
     charges may be paid unless the officer agrees to remain a 
     member of the Ready Reserve for at least four years after 
     completion of such training or education.
       Sec. 8020. None of the funds appropriated by this Act shall 
     be available to convert to contractor performance an activity 
     or function of the Department of Defense that, on or after 
     the date of enactment of this Act, is performed by more than 
     ten Department of Defense civilian employees until a most 
     efficient and cost-effective organization analysis is 
     completed on such activity or function and certification of 
     the analysis is made to the Committees on Appropriations of 
     the House of Representatives and the Senate: Provided, That 
     this section shall not apply to a commercial or industrial 
     type function of the Department of Defense that: (1) is 
     included on the procurement list established pursuant to 
     section 2 of the Act of June 25, 1938 (41 U.S.C. 47), 
     popularly referred to as the Javits-Wagner-O'Day Act; (2) is 
     planned to be converted to performance by a qualified 
     nonprofit agency for the blind or by a qualified nonprofit 
     agency for other severely handicapped individuals in 
     accordance with that Act; or (3) is planned to be 

[[Page H 9459]]
     converted to performance by a qualified firm under 51 percent Native 
     American ownership.


                          (transfer of funds)

       Sec. 8021. Funds appropriated in title III of this Act for 
     the Department of Defense Pilot Mentor-Protege Program may be 
     transferred to any other appropriation contained in this Act 
     solely for the purpose of implementing a Mentor-Protege 
     Program developmental assistance agreement pursuant to 
     section 831 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301 note), 
     as amended, under the authority of this provision or any 
     other transfer authority contained in this Act.
       Sec. 8022. None of the funds in this Act may be available 
     for the purchase by the Department of Defense (and its 
     departments and agencies) of welded shipboard anchor and 
     mooring chain 4 inches in diameter and under unless the 
     anchor and mooring chain are manufactured in the United 
     States from components which are substantially manufactured 
     in the United States: Provided, That for the purpose of this 
     section manufactured will include cutting, heat treating, 
     quality control, testing of chain and welding (including the 
     forging and shot blasting process): Provided further, That 
     for the purpose of this section substantially all of the 
     components of anchor and mooring chain shall be considered to 
     be produced or manufactured in the United States if the 
     aggregate cost of the components produced or manufactured in 
     the United States exceeds the aggregate cost of the 
     components produced or manufactured outside the United 
     States: Provided further, That when adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis, the Secretary of the service 
     responsible for the procurement may waive this restriction on 
     a case-by-case basis by certifying in writing to the 
     Committees on Appropriations that such an acquisition must be 
     made in order to acquire capability for national security 
     purposes.

                          (transfer of funds)

       Sec. 8023. None of the funds appropriated by this Act 
     available for the Civilian Health and Medical Program of the 
     Uniformed Services (CHAMPUS) shall be available for the 
     reimbursement of any health care provider for inpatient 
     mental health service for care received when a patient is 
     referred to a provider of inpatient mental health care or 
     residential treatment care by a medical or health care 
     professional having an economic interest in the facility to 
     which the patient is referred: Provided, That this limitation 
     does not apply in the case of inpatient mental health 
     services provided under the program for the handicapped under 
     subsection (d) of section 1079 of title 10, United States 
     Code, provided as partial hospital care, or provided pursuant 
     to a waiver authorized by the Secretary of Defense because of 
     medical or psychological circumstances of the patient that 
     are confirmed by a health professional who is not a Federal 
     employee after a review, pursuant to rules prescribed by the 
     Secretary, which takes into account the appropriate level of 
     care for the patient, the intensity of services required by 
     the patient, and the availability of that care.
       Sec. 8024. Of the funds made available by this Act in title 
     III, Procurement, $8,000,000, drawn pro rata from each 
     appropriations account in title III, shall be available for 
     incentive payments authorized by section 504 of the Indian 
     Financing Act of 1974, 25 U.S.C. 1544. These payments shall 
     be available only to contractors which have submitted 
     subcontracting plans pursuant to 15 U.S.C. 637(d), and 
     according to regulations which shall be promulgated by the 
     Secretary of Defense within 90 days of the passage of this 
     Act.
       Sec. 8025. Funds available in this Act may be used to 
     provide transportation for the next-of-kin of individuals who 
     have been prisoners of war or missing in action from the 
     Vietnam era to an annual meeting in the United States, under 
     such regulations as the Secretary of Defense may prescribe.
       Sec. 8026. During the current fiscal year, none of the 
     funds available to the Department of Defense may be used to 
     procure or acquire (1) defensive handguns unless such 
     handguns are the M9 or M11 9mm Department of Defense standard 
     handguns, or (2) offensive handguns except for the Special 
     Operations Forces: Provided, That the foregoing shall not 
     apply to handguns and ammunition for marksmanship 
     competitions.
       Sec. 8027. Notwithstanding any other provision of law, 
     during the current fiscal year, the Secretary of Defense may, 
     by Executive Agreement, establish with host nation 
     governments in NATO member states a separate account into 
     which such residual value amounts negotiated in the return of 
     United States military installations in NATO member states 
     may be deposited, in the currency of the host nation, in lieu 
     of direct monetary transfers to the United States Treasury: 
     Provided, That such credits may be utilized only for the 
     construction of facilities to support United States military 
     forces in that host nation, or such real property maintenance 
     and base operating costs that are currently executed through 
     monetary transfers to such host nations: Provided further, 
     That the Department of Defense's budget submission for fiscal 
     year 1997 shall identify such sums anticipated in residual 
     value settlements, and identify such construction, real 
     property maintenance or base operating costs that shall be 
     funded by the host nation through such credits: Provided 
     further, That all military construction projects to be 
     executed from such accounts must be previously approved in a 
     prior Act of Congress: Provided further, That each such 
     Executive Agreement with a NATO member host nation shall be 
     reported to the congressional defense committees, and the 
     Committee on International Relations of the House of 
     Representatives and the Committee on Foreign Relations of the 
     Senate thirty days prior to the conclusion and endorsement of 
     any such agreement established under this provision.
       Sec. 8028. None of the funds available to the Department of 
     Defense may be used to demilitarize or dispose of M-1 
     Carbines, M-1 Garand rifles, M-14 rifles, .22 caliber rifles, 
     or M-1911 pistols.
       Sec. 8029. None of the funds available to the Department of 
     the Navy may be used to enter into any contract for the 
     overhaul, repair, or maintenance of any naval vessel 
     homeported on the West Coast of the United States which 
     includes charges for interport differential as an evaluation 
     factor for award.
       Sec. 8030. Notwithstanding any other provision of law, none 
     of the funds appropriated by this Act shall be available to 
     pay more than 50 percent of an amount paid to any person 
     under section 308 of title 37, United States Code, in a lump 
     sum.
       Sec. 8031. None of the funds appropriated during the 
     current fiscal year and hereafter, may be used by the 
     Department of Defense to assign a supervisor's title or grade 
     when the number of people he or she supervises is considered 
     as a basis for this determination: Provided, That savings 
     that result from this provision are represented as such in 
     future budget proposals.
       Sec. 8032. None of the funds appropriated by this Act shall 
     be available for payments under the Department of Defense 
     contract with the Louisiana State University Medical Center 
     involving the use of cats for Brain Missile Wound Research, 
     and the Department of Defense shall not make payments under 
     such contract from funds obligated prior to the date of the 
     enactment of this Act, except as necessary for costs incurred 
     by the contractor prior to the enactment of this Act: 
     Provided, That funds necessary for the care of animals 
     covered by this contract are allowed.
       Sec. 8033. Notwithstanding any other provision of law, 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to American Samoa: 
     Provided, That notwithstanding any other provision of law, 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to the Indian Health 
     Service when it is in conjunction with a civil-military 
     project.
       Sec. 8034. None of the funds provided in this Act or any 
     other Act shall be available to conduct bone trauma research 
     at any Army Research Laboratory until the Secretary of the 
     Army certifies that the synthetic compound to be used in the 
     experiments is of such a type that its use will result in a 
     significant medical finding, the research has military 
     application, the research will be conducted in accordance 
     with the standards set by an animal care and use committee, 
     and the research does not duplicate research already 
     conducted by a manufacturer or any other research 
     organization.
       Sec. 8035. No more than $50,000 of the funds appropriated 
     or made available in this Act shall be used for any single 
     relocation of an organization, unit, activity or function of 
     the Department of Defense into or within the National Capital 
     Region: Provided, That the Secretary of Defense 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 Senate that such a relocation is required 
     in the best interest of the Government.
       Sec. 8036. During the current fiscal year, funds 
     appropriated or otherwise available for any Federal agency, 
     the Congress, the judicial branch, or the District of 
     Columbia may be used for the pay, allowances, and benefits of 
     an employee as defined by section 2105 of title 5 or an 
     individual employed by the government of the District of 
     Columbia, permanent or temporary indefinite, who--
       (1) is a member of a Reserve component of the Armed Forces, 
     as described in section 261 of title 10, or the National 
     Guard, as described in section 101 of title 32;
       (2) performs for the purpose of providing military aid to 
     enforce the law or providing assistance to civil authorities 
     in the protection or saving of life or property or prevention 
     of injury--
       (A) Federal service under section 331, 332, 333, 3500, or 
     8500 of title 10, or other provision of law, as applicable, 
     or
       (B) full-time military service for his State, the District 
     of Columbia, the Commonwealth of Puerto Rico, or a territory 
     of the United States; and
       (3) requests and is granted--
       (A) leave under the authority of this section; or
       (B) annual leave, which may be granted without regard to 
     the provisions of sections 5519 and 6323(b) of title 5, if 
     such employee is otherwise entitled to such annual leave:

     Provided, That any employee who requests leave under 
     subsection (3)(A) for service described in subsection (2) of 
     this section is entitled to such leave, subject to the 
     provisions of this section and of the last sentence of 
     section 6323(b) of title 5, and such leave shall be 
     considered leave under section 6323(b) of title 5.
       Sec. 8037. None of the funds appropriated by this Act shall 
     be available to perform any cost study pursuant to the 
     provisions of OMB Circular A-76 if the study being performed 
     exceeds a period of twenty-four months after initiation of 
     such study with respect to a single function activity or 
     forty-eight months after initiation of such study for a 
     multi-function activity.
       Sec. 8038. Funds appropriated by this Act for the American 
     Forces Information Service shall not be used for any national 
     or international political or psychological activities.
       Sec. 8039. Notwithstanding any other provision of law, each 
     contract awarded by the Department of Defense in fiscal year 
     1996 for construction or service performed in whole or in 

[[Page H 9460]]
     part in a State which is not contiguous with another State and has an 
     unemployment rate in excess of the national average rate of 
     unemployment as determined by the Secretary of Labor shall 
     include a provision requiring the contractor to employ, for 
     the purpose of performing that portion of the contract in 
     such State that is not contiguous with another State, 
     individuals who are residents of such State and who, in the 
     case of any craft or trade, possess or would be able to 
     acquire promptly the necessary skills: Provided, That the 
     Secretary of Defense may waive the requirements of this 
     section in the interest of national security.
       Sec. 8040. Notwithstanding any other provision of law or 
     regulation, the Secretary of Defense may adjust wage rates 
     for civilian employees hired for certain health care 
     occupations as authorized for the Secretary of Veterans 
     Affairs by section 7455 of title 38, United States Code.
       Sec. 8041. None of the funds appropriated or made available 
     in this Act shall be used to reduce or disestablish the 
     operation of the 53rd Weather Reconnaissance Squadron of the 
     Air Force Reserve, if such action would reduce the WC-130 
     Weather Reconnaissance mission below the levels funded in 
     this Act.
       Sec. 8042. (a) Of the funds for the procurement of supplies 
     or services appropriated by this Act, qualified nonprofit 
     agencies for the blind or other severely handicapped shall be 
     afforded the maximum practicable opportunity to participate 
     as subcontractors and suppliers in the performance of 
     contracts let by the Department of Defense.
       (b) During the current fiscal year, a business concern 
     which has negotiated with a military service or defense 
     agency a subcontracting plan for the participation by small 
     business concerns pursuant to section 8(d) of the Small 
     Business Act (15 U.S.C. 637(d)) shall be given credit toward 
     meeting that subcontracting goal for any purchases made from 
     qualified nonprofit agencies for the blind or other severely 
     handicapped.
       (c) For the purpose of this section, the phrase `'qualified 
     nonprofit agency for the blind or other severely 
     handicapped'' means a nonprofit agency for the blind or other 
     severely handicapped that has been approved by the Committee 
     for the Purchase from the Blind and Other Severely 
     Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-
     48).
       Sec. 8043. During the current fiscal year, net receipts 
     pursuant to collections from third party payers pursuant to 
     section 1095 of title 10, United States Code, shall be made 
     available to the local facility of the uniformed services 
     responsible for the collections and shall be over and above 
     the facility's direct budget amount.
       Sec. 8044. During the current fiscal year, the Department 
     of Defense is authorized to incur obligations of not to 
     exceed $350,000,000 for purposes specified in section 
     2350j(c) of title 10, United States Code, in anticipation of 
     receipt of contributions, only from the Government of Kuwait, 
     under that section: Provided, That, upon receipt, such 
     contributions from the Government of Kuwait shall be credited 
     to the appropriation or fund which incurred such obligations.
       Sec. 8045. Of the funds made available in this Act, not 
     less than $25,144,000 shall be available for the Civil Air 
     Patrol, of which $16,704,000 shall be available for 
     Operations and Maintenance.
       Sec. 8046. (a) 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.
       (b) 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, and no paid consultant to any defense FFRDC, 
     may be compensated for his or her services as a member of 
     such entity, or as a paid consultant, 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 
     referred to previously in this subsection shall be allowed 
     travel expenses and per diem as authorized under the Federal 
     Joint Travel Regulations, when engaged in the performance of 
     membership duties.
       (c) Notwithstanding any other provision of law, none of the 
     funds available to the Department of Defense from any source 
     during fiscal year 1996 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.
       (d) Notwithstanding any other provision of law, of the 
     amounts available to the Department of Defense during fiscal 
     year 1996, not more than $1,162,650,000 may be obligated for 
     financing activities of defense FFRDCs: Provided, That the 
     total amounts appropriated in titles II, III, and IV of this 
     Act are hereby reduced by $90,000,000 to reflect the funding 
     ceiling contained in this subsection.
       Sec. 8047. None of the funds appropriated or made available 
     on this Act shall be used to procure carbon, alloy or armor 
     steel plate for use in any Government-owned facility or 
     property under the control of the Department of Defense which 
     were not melted and rolled in the United States or Canada: 
     Provided, That these procurement restrictions shall apply to 
     any and all Federal Supply Class 9515, American Society of 
     Testing and Materials (ASTM) or American Iron and Steel 
     Institute (AISI) specifications of carbon, alloy or armor 
     steel plate: Provided further, That the Secretary of the 
     military department responsible for the 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 acquire capability for national 
     security purposes: Provided further, That these restrictions 
     shall not apply to contracts which are in being as of the 
     date of enactment of this Act.
       Sec. 8048. None of the unobligated balances available in 
     the National Defense Stockpile Transition Fund during the 
     current fiscal year may be obligated or expended to finance 
     any grant or contract to conduct research, development, test 
     and evaluation activities for the development or production 
     of advanced materials, unless amounts for such purposes are 
     specifically appropriated in a subsequent appropriations Act.
       Sec. 8049. For the purposes of this Act, the term 
     ``congressional defense committees'' means the National 
     Security Committee of the House of Representatives, the Armed 
     Services Committee of the Senate, the subcommittee on Defense 
     of the Committee on Appropriations of the Senate, and the 
     Subcommittee on National Security of the Committee on 
     Appropriations of the House of Representatives.
       Sec. 8050. Notwithstanding any other provision of law, 
     during the current fiscal year, the Department of Defense may 
     acquire the modification, depot maintenance and repair of 
     aircraft, vehicles and vessels as well as the production of 
     components and other Defense-related articles, through 
     competition between Department of Defense depot maintenance 
     activities and private firms: Provided, That the Senior 
     Acquisition Executive of the military department or defense 
     agency concerned, with power of delegation, shall certify 
     that successful bids include comparable estimates of all 
     direct and indirect costs for both public and private bids: 
     Provided further, That Office of Management and Budget 
     Circular A-76 shall not apply to competitions conducted under 
     this section.
       Sec. 8051. (a)(1) If the Secretary of Defense, after 
     consultation with the United States Trade Representative, 
     determines that a foreign country which is party to an 
     agreement described in paragraph (2) has violated the terms 
     of the agreement by discriminating against certain types of 
     products produced in the United States that are covered by 
     the agreement, the Secretary of Defense shall rescind the 
     Secretary's blanket waiver of the Buy American Act with 
     respect to such types of products produced in that foreign 
     country.
       (2) An agreement referred to in paragraph (1) is any 
     reciprocal defense procurement memorandum of understanding, 
     between the United States and a foreign country pursuant to 
     which the Secretary of Defense has prospectively waived the 
     Buy American Act for certain products in that country.
       (b) The Secretary of Defense shall submit to Congress a 
     report on the amount of Department of Defense purchases from 
     foreign entities in fiscal year 1996. Such report shall 
     separately indicate the dollar value of items for which the 
     Buy American Act was waived pursuant to any agreement 
     described in subsection (a)(2), the Trade Agreement Act of 
     1970 (19 U.S.C. 2501 et seq.), or any international agreement 
     to which the United States is a party.
       (C) For purposes of this section, the term ``Buy American 
     Act'' means title III of the Act entitled ``An Act making 
     appropriations for the Treasury and Post Office Departments 
     for the fiscal year ending June 30, 1934, and for other 
     purposes'', approved March 3, 1933 (41 U.S.C. 10a et seq.).
       Sec. 8052. Notwithstanding any other provision of law, the 
     Secretary of Defense may, when he considers it in the best 
     interest of the United States, cancel any part of an 
     indebtedness, up to $2,500, that is or was owed to the United 
     States by a member or former member of a uniformed service if 
     such indebtedness, as determined by the Secretary, was 
     incurred in connection with Operation Desert Shield/Storm: 
     Provided, That the amount of an indebtedness previously paid 
     by a member or former member and canceled under this section 
     shall be refunded to the member.
       Sec. 8053. Appropriations contained in this Act that remain 
     available at the end of the current fiscal year as a result 
     of energy cost savings realized by the Department of Defense 
     shall remain available for obligation for the next fiscal 
     year to the extent, and for the purposes, provided in section 
     2865 of title 10, United States Code.
       Sec. 8054. During the current fiscal year, voluntary 
     separation incentives payable under 10 U.S.C. 1175 may be 
     paid in such amounts as are necessary from the assets of the 
     Voluntary Separation Incentive Fund established by section 
     1175(h)(1).
       Sec. 8055. None of the funds appropriated by this Act shall 
     be used for the support of any nonappropriated funds activity 
     of the Department of Defense that procures malt beverages and 
     wine with nonappropriated funds for resale (including such 
     alcoholic beverages sold by the drink) on a military 
     installation located in the United States unless such malt 
     beverages and wine are procured within that State, or in the 
     case of the District of Columbia, within the District of 
     Columbia, in which the military installation is located: 
     Provided, That in a case in which the military installation 
     is located in more than one State, purchases may be made in 
     any State in which the installation is located: Provided 
     further, That such local procurement requirements for malt 
     beverages and wine shall apply to all alcoholic beverages 
     only for military installations in States which are not 
     contiguous with another State: Provided further, That 
     alcoholic beverages other than wine and malt beverages, in 
     contiguous States and the District of Columbia shall be 
     procured from the most competitive source, price and other 
     factors considered.
     
[[Page H 9461]]



                     (including transfer of funds)

       Sec. 8056. Amounts deposited during the current fiscal year 
     to the special account established under 40 U.S.C. 485(h)(2) 
     and to the special account established under 10 U.S.C. 
     2667(d)(1) are appropriated and shall be available until 
     transferred by the Secretary of Defense to current applicable 
     appropriations or funds of the Department of Defense under 
     the terms and conditions specified by 40 U.S.C. 485(h)(2) (A) 
     and (B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to 
     be available for the same time period and the same purposes 
     as the appropriation to which transferred.
       Sec. 8057. During the current fiscal year, appropriations 
     available to the Department of Defense may be used to 
     reimburse a member of a reserve component of the Armed Forces 
     who is not otherwise entitled to travel and transportation 
     allowances and who occupies transient government housing 
     while performing active duty for training or inactive duty 
     training: Provided, That such members may be provided lodging 
     in kind if transient government quarters are unavailable as 
     if the member was entitled to such allowances under 
     subsection (a) of section 404 of title 37, United States 
     Code: Provided further, That if lodging in kind is provided, 
     any authorized service charge or cost of such lodging may be 
     paid directly from funds appropriated for operation and 
     maintenance of the reserve component of the member concerned.
       Sec. 8058. The President shall include with each budget for 
     a fiscal year submitted to the Congress under section 1105 of 
     title 31, United States Code, materials that shall identify 
     clearly and separately the amounts requested in the budget 
     for appropriation for that fiscal year for salaries and 
     expenses related to administrative activities of the 
     Department of Defense, the military departments, and the 
     Defense Agencies.
       Sec. 8059. None of the funds in this or any other Act shall 
     be available for the preparation of studies on--
       (a) the feasibility of removal and transportation of 
     unitary chemical weapons from the eight chemical storage 
     sites within the continental United States to Johnston Atoll: 
     Provided, That this prohibition shall not apply to General 
     Accounting Office studies requested by a Member of Congress 
     or a Congressional Committee; and
       (b) the potential future uses of the nine chemical disposal 
     facilities other than for the destruction of stockpile 
     chemical munitions and as limited by section 1412(c)(2), 
     Public Law 99-145: Provided, That this prohibition does not 
     apply to future use studies for the CAMDS facility at Tooele, 
     Utah.
       Sec. 8060. During the current fiscal year, amounts 
     contained in the Department of Defense Overseas Military 
     Facility Investment Recovery Account established by section 
     2921(c)(1) of the National Defense Authorization Act of 1991 
     (Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
     until expended for the payments specified by section 
     2921(c)(2) of that Act.
       Sec. 8061. During the current fiscal year, annual payments 
     granted under the provisions of section 4416 of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-428; 106 Stat. 2714) shall be made from appropriations in 
     this Act which are available for the pay of reserve component 
     personnel.
       Sec. 8062. For fiscal year 1996, the total amount 
     appropriated in this Act to fund the Uniformed Services 
     Treatment Facilities program, operated pursuant to section 
     911 of Public Law 97-99 (42 U.S.C. 248c), shall not exceed 
     $315,000,000.
       Sec. 8063. Of the funds appropriated or otherwise made 
     available by this Act, not more than $119,200,000 shall be 
     available for payment of the operating costs of NATO 
     Headquarters: Provided, That the Secretary of Defense may 
     waive this section for Department of Defense support provided 
     to NATO forces in and around the former Yugoslavia.
       Sec. 8064. Notwithstanding any other provision of law, the 
     Naval shipyards of the United States shall be eligible to 
     participate in any manufacturing extension program financed 
     by funds appropriated in this or any other Act.
       Sec. 8065. During the current fiscal year, appropriations 
     which are available to the Department of Defense for 
     operation and maintenance may be used to purchase items 
     having an investment item until cost of not more than 
     $100,000.
       Sec. 8066. During the current fiscal year, appropriations 
     available for the pay and allowances of active duty members 
     of the Armed Forces shall be available to pay the retired pay 
     which is payable pursuant to section 4403 of Public Law 102-
     484 (10 U.S.C. 1293 note) under the terms and conditions 
     provided in section 4403.
       Sec. 8067. (a) During the current fiscal year, none of the 
     appropriations or funds available to the Defense Business 
     Operations Fund shall be used for the purchase of an 
     investment item for the purpose of acquiring a new inventory 
     item for sale or anticipated sale during the current fiscal 
     year or a subsequent fiscal year to customers of the Defense 
     Business Operations Fund if such an item would not have been 
     chargeable to the Defense Business Operations Fund during 
     fiscal year 1994 and if the purchase of such an investment 
     item would be chargeable during the current fiscal year to 
     appropriations made to the Department of Defense for 
     procurement.
       (b) The fiscal year 1997 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 1997 Department of 
     Defense budget shall be prepared and submitted to the 
     Congress on the basis that any equipment which was classified 
     as an end item and funded in a procurement appropriation 
     contained in this Act shall be budgeted for in a proposed 
     fiscal year 1997 procurement appropriation and not in the 
     supply management business area or any other area or category 
     of the Defense Business Operations Fund.
       Sec. 8068. None of the funds provided in this Act shall be 
     available for use by a Military Department to modify an 
     aircraft, weapon, ship or other item of equipment, that the 
     Military Department concerned plans to retire or otherwise 
     dispose of within five years after completion of the 
     modification: Provided, That this prohibition shall not apply 
     to safety modifications: Provided further, That this 
     prohibition may be waived by the Secretary of a Military 
     Department if the Secretary determines it is in the best 
     national security interest of the United States to provide 
     such waiver and so notifies the congressional defense 
     committees in writing.
       Sec. 8069. (a) None of the funds appropriated or otherwise 
     made available in this Act may be used to transport or 
     provide for the transportation of chemical munitions to the 
     Johnston Atoll for the purpose of storing or demilitarizing 
     such munitions.
       (b) The prohibition in subsection (a) shall not apply to 
     any obsolete World War II chemical munition of the United 
     States found in the World War II Pacific Theater of 
     Operations.
       (c) The President may suspend the application of subsection 
     (a) during a period of war in which the United States is a 
     party.
       Sec. 8070. None of the funds appropriated by this Act for 
     programs of the Central Intelligence Agency shall remain 
     available for obligation beyond the current fiscal year, 
     except for funds appropriated for the Reserve for 
     Contingencies, which shall remain available until September 
     30, 1997.
       Sec. 8071. Notwithstanding any other provision of law, 
     funds made available in this Act for the Defense Intelligence 
     Agency may be used for the design, development, and 
     deployment of General Defense Intelligence Program 
     intelligence communications and intelligence information 
     systems for the Services, the Unified and Specified Commands, 
     and the component commands.
       Sec. 8072. Of the funds appropriated to the Department of 
     Defense under the heading ``Operation and Maintenance, 
     Defense-Wide'', not less than $8,000,000 shall be made 
     available only for the mitigation of environmental impacts, 
     including training and technical assistance to tribes, 
     related administrative support, the gathering of information, 
     documenting of environmental damage, and developing a system 
     for prioritization of mitigation, on Indian lands resulting 
     from Department of Defense activities.
       Sec. 8073. 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 acquisition and sustainment of operations, including 
     maintenance of the supercomputing and related networking 
     capability at (1) the DOD Science and Technology sites under 
     the cognizance of the DDR&E, (2) the DOD Test and Evaluation 
     centers under the Director, Test and Evaluation, OUSD (A&T), 
     and (3) the Ballistic Missile Defense Organization: Provided, 
     That the contracts, contract modifications, or contract 
     options are awarded upon the requirements of the users.
       Sec. 8074. Amounts collected for the use of the facilities 
     of the National Science Center for Communications and 
     Electronics during the current fiscal year pursuant to 
     section 1459(g) of the Department of Defense Authorization 
     Act, 1986 and deposited to the special account established 
     under subsection 1459(g)(2) of that Act are appropriated and 
     shall be available until expended for the operation and 
     maintenance of the Center as provided for in subsection 
     1459(g)(2).
       Sec. 8075. To the extent authorized in law, the Secretary 
     of Defense shall issue loan guarantees in support of U.S. 
     defense exports not otherwise provided for: Provided, That 
     the total contingent liability of the United States for 
     guarantees issued under the authority of this section may not 
     exceed $15,000,000,000: Provided further, That the exposure 
     fees charged and collected by the Secretary for each 
     guarantee, shall be paid by the country involved and shall 
     not be financed as part of a loan guarantee by the United 
     States: Provided further, That the Secretary shall provide 
     quarterly reports to the Committees on Appropriations, Armed 
     Services and Foreign Relations of the Senate and the 
     Committees of Appropriations, National Security and 
     International Relations in the House of Representatives on 
     the implementation of this program.
       Sec. 8076. None of the funds appropriated in this Act may 
     be used to fill the commander's position at any military 
     medical facility with a health care professional unless the 
     prospective candidate can demonstrate professional 
     administrative skills.
       Sec. 8077. (a) None of the funds appropriated in this Act 
     may be expended by an entity of the Department of Defense 
     unless the entity, in expending the funds, complies with the 
     Buy American Act. For purposes of this subsection, the term 
     ``Buy American Act'' means title III of the Act entitled ``An 
     Act making appropriations for the Treasury and Post Office 
     Departments for the fiscal year ending June 30, 1934, and for 
     other purposes'', approved March 3, 1933 (41 U.S.C. 10a et 
     seq.).
       (b) If the Secretary of Defense determines that a person 
     has been convicted of intentionally affixing a label bearing 
     a ``Made in America'' inscription to any product sold in or 
     shipped to the United States that is not made in America, the 
     Secretary shall determine, in accordance with section 2410f 
     of title 10, United States Code, whether the person should be 
     debarred from contracting with the Department of Defense.
       Sec. 8078. None of the funds provided in this Act may be 
     obligated or expended for the sale of zinc in the National 
     Defense Stockpile if zinc commodity prices decline more than 
     five percent below the London Metals Exchange market price 
     reported on the date of enactment of this Act.

[[Page H 9462]]

       Sec. 8079. None of the funds appropriated by this Act shall 
     be available for a contract for studies, analyses, or 
     consulting services entered into without competition on the 
     basis of an unsolicited proposal unless the head of the 
     activity responsible for the procurement determines--
       (1) as a result of thorough technical evaluation, only one 
     source is found fully qualified to perform the proposed work, 
     or
       (2) the purpose of the contract is to explore an 
     unsolicited proposal which offers significant scientific or 
     technological promise, represents the product of original 
     thinking, and was submitted in confidence by one source, or
       (3) the purpose of the contract is to take advantage of 
     unique and significant industrial accomplishment by a 
     specific concern, or to insure that a new product or idea of 
     a specific concern is given financial support:

     Provided, That this limitation shall not apply to contracts 
     in an amount of less than $25,000, contracts related to 
     improvements of equipment that is in development or 
     production, or contracts as to which a civilian official of 
     the Department of Defense, who has been confirmed in the 
     Senate, determines that the award of such contract is in the 
     interest of the national defense.
       Sec. 8080. Funds appropriated by this Act for intelligence 
     activities are deemed to be specifically authorized by the 
     Congress for purposes of section 504 of the National Security 
     Act of 1947 (50 U.S.C. 414) during fiscal year 1996 until the 
     enactment of the Intelligence Authorization Act for fiscal 
     year 1996.
       Sec. 8081. (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) $115,226,000 made available in this Act for Research, 
     Development, Test and Evaluation, Air Force, may only be 
     obligated for development of a new family of medium-lift and 
     heavy-lift expendable launch vehicles evolved from existing 
     technologies.
       Sec. 8082. None of the 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 1996, except for field operating agencies funded 
     within the National Foreign Intelligence Program: Provided, 
     That the Secretary of Defense may waive this section by 
     certifying to the House and Senate Committees on 
     Appropriations that the creation of such field operating 
     agencies will reduce either the personnel and/or financial 
     requirements of the Department of Defense.


                             (rescissions)

       Sec. 8083. Of the funds provided in Department of Defense 
     Appropriations Acts, the following funds are hereby rescinded 
     from the following accounts in the specified amounts:
       ``Aircraft Procurement, Air Force, 1994/1996'', 
     $53,654,000;
       ``Missile Procurement, Air Force, 1994/1996'', $16,783,000;
       ``Weapons Procurement, Navy, 1995/1997'', $14,600,000;
       ``Shipbuilding and Conversion, Navy, 1995/1999'', 
     $87,700,000;
       ``Other Procurement, Navy, 1995/1997'', $8,600,000;
       ``Aircraft Procurement, Air Force, 1995/1997'', 
     $24,000,000;
       ``Missile Procurement, Air Force, 1995/1997'', 
     $140,978,000;
       ``Other Procurement, Air Force, 1995/1997'', $180,000,000;
       ``Research, Development, Test and Evaluation, Army, 1995/
     1996'', $9,000,000;
       ``Research, Development, Test and Evaluation, Navy, 1995/
     1996'', $6,000,000;
       ``Research, Development, Test and Evaluation, Air Force, 
     1995/1996'', $7,902,000;
       ``Research, Development, Test and Evaluation, Defense-Wide, 
     1995/1996'', $12,000,000.
       Sec. 8084. Notwithstanding any other provision of law, for 
     resident classes entering the war colleges after September 
     30, 1996, the Department of Defense shall require that not 
     less than 20 percent of the total of United States military 
     students at each war college shall be from military 
     departments other than the hosting military department: 
     Provided, That each military department will recognize the 
     attendance at a sister military department war college as the 
     equivalent of attendance at it own war college for promotion 
     and advancement of personnel.
       Sec. 8085. None of the funds in this or any other Act may 
     be used to implement the plan to reorganize the regional 
     headquarters and basic camps structure of the Reserve Officer 
     Training Corps program of the Army until the Comptroller 
     General of the United States has certified to the 
     congressional defense committees that the methodology and 
     evaluation of the potential sites were consistent with the 
     established criteria for the consolidation, that all data 
     used by the Army in the evaluation was accurate and complete, 
     and that the conclusions reached are based upon the total 
     costs of the Army's final plan to establish the Eastern 
     Reserve Officer Training Corps Headquarters at Fort Benning, 
     Georgia: Provided, That all cost, including Military 
     Construction, shall be considered as well as an analysis of 
     the impact of the consolidation on the surrounding 
     communities for all affected installations.
       Sec. 8086. 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 $200,000 per 
     year after July 1, 1996, unless the Office of Federal 
     Procurement Policy establishes in the Federal Acquisition 
     Regulations guidance governing the allowability of individual 
     compensation.
       Sec. 8087. 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.
       Sec. 8088. None of the funds appropriated or otherwise made 
     available in this Act may be obligated or expended for 
     assistance to the Democratic People's Republic of North Korea 
     unless specifically appropriated for that purpose.
       Sec. 8089. 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 
     section 12602 (a)(2) and (b)(2) of title 10, United States 
     Code.
       Sec. 8090. 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.
       Sec. 8091. During the current fiscal year, none of the 
     funds appropriated in this Act may be used to reduce the 
     civilian medical and medical support personnel assigned to 
     military treatment facilities below the September 30, 1995 
     level.


                          (Transfer of Funds)

       Sec. 8092. 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 
     amount specified:

     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1986/1990'':
       SSN-688 attack submarine program, $5,051,000;
       CG-47 cruiser program, $2,500,000;
       BB battleship reactivation, $4,400,000;
       T-AGOS SURTASS ship program, $2,135,000;
       LCAC landing craft air cushion program, $700,000;
       For craft, outfitting, post delivery, and cost growth, 
     $12,360,000;
       Weapons Procurement, Navy, 1994/1996, $30,900,000;
       Other Procurement, Navy, 1994/1996, $4,200,000;
       Other Procurement, Navy, 1995/1997, $5,000,000;
       Aircraft Procurement, Navy, 1994/1996, $2,056,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1986/1990'':
       MSH coastal mine hunter program, $69,302,000;

     From:
       Weapons Procurement, Navy, 1994/1996, $5,500,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1987/1991'':
       AOE combat support ship program, $5,500,000;

     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1988/1992'':
       SSN-688 attack submarine program, $1,500,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1988/1992'':
       T-ACS auxiliary crane ship program, $1,500,000;

     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1989/1993'':
       SSN-688 attack submarine program, $23,535,000;
       DDG-51 destroyer program, $33,700,000;
       T-AO fleet oiler program, $38,969,000;
       Other Procurement, Navy, 1995/1997, $3,500,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1989/1993'':
       SSN-21 attack submarine program, $65,886,000;
       MHC coastal mine hunter program, $30,318,000;
       AOE combat support ship program, $3,500,000;

     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1990/1994'':
       SSN-688 attack submarine program, $1,907,000;
       DDG-51 destroyer program, $22,669,000;
       For craft, outfitting and post delivery, $3,900,000;
       Aircraft Procurement, Navy, 1994/1996, $17,944,000;
       Procurement of Ammunition, Navy and Marine Corps, 1995/
     1997, $5,116,000;
       Weapons Procurement, Navy, 1995/1997, $2,000,000;

       To:
     Under the heading, ``Shipbuilding and Conversion, Navy, 1990/
     1994'':

[[Page H 9463]]

       MHC coastal mine hunter, $9,536,000;
       T-AGOS surveillance ship program, $42,000,000;
       AOE combat support ship program, $2,000,000;

     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/1995'':
       SSN-21 attack submarine program, $18,330,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/1995'':
       LHD-1 amphibious assault ship program, $6,178,000;
       MHC coastal mine hunter program, $12,152,000;

     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1992/1996'':
       DDG-51 destroyer program, $5,315,000;
       For craft, outfitting, post delivery, and DBOF transfer, 
     $9,675,000;
       For escalation, $3,347,000;
       Weapons Procurement, Navy, 1995/1997, $7,500,000;
       Procurement, Marine Corps, 1995/1997, $378,000;
       Other Procurement, Navy, 1995/1997, $355,000;
       Aircraft Procurement, Navy, 1995/1997, $3,600,000;
       Research, Development, Test and Evaluation, Navy, 1995/
     1996, $5,600,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1992/1996'':
       MHC coastal mine hunter program, $35,770,000;

     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1993/1997'':
       LSD-41 cargo variant ship program, $1,600,000;
       For craft, outfitting, post delivery, and first destination 
     transportation, and inflation adjustments, $5,627,000;
       Procurement of Ammunition, Navy and Marine Corps, 1995/
     1997, $1,784,000;
       Other Procurement, Navy, 1995/1997, $645,000;
       Weapons Procurement, Navy, 1994/1996, $1,963,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1993/1997'':
       DDG-51 destroyer program, $7,356,000;
       AOE combat support ship program, $2,300,000;
       MHC coastal mine hunter program, $1,963,000;

     From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1994/1998'':
       MCS(C) program, $4,819,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1995/1999'':
       Nuclear submarine main steam condensor industrial base, 
     $900,000;

     To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1994/1998'':
       LHD program, $5,719,000.
       Sec. 8093. The Department shall include, in the operation 
     of TRICARE Regions 7/8, a region-wide wraparound care package 
     that requires providers of residential treatment services to 
     share financial risk through case rate reimbursement, to 
     include planning and individualized wraparound services to 
     prevent recidivism.
       Sec. 8094. All refunds or other amounts collected in the 
     administration of the Civilian Health and Medical Program of 
     the Uniformed Service (CHAMPUS) shall be credited to current 
     year appropriations.


                     (including transfer of funds)

       Sec. 8095. None of the funds appropriated in the Act may be 
     transferred to or obligated from the Pentagon Reservation 
     Maintenance Revolving Fund, unless the Secretary of Defense 
     certifies that the total cost for the planning design, 
     construction and installation of equipment for the renovation 
     of the Pentagon Reservation will not exceed $1,218,000,000.
       Sec. 8096. (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.


                          (transfer of funds)

       Sec. 8097. Appropriations available in this Act under the 
     heading ``Operation and Maintenance, Defense-Wide'' for 
     increasing energy and water efficiency in Federal buildings 
     may, during their period of availability, be transferred to 
     other appropriations or funds of the Department of Defense 
     for projects related to increasing energy and water 
     efficiency, to be merged with and to be available for the 
     same general purposes, and for the same time period, as the 
     appropriation or fund to which transferred.
       Sec. 8098. Funds in the amount of $61,300,000 received 
     during fiscal year 1996 by the Department of the Air Force 
     pursuant to the ``Memorandum of Agreement between the 
     National Aeronautics and Space Administration and the United 
     States Air Force on Titan IV/Centaur Launch Support for the 
     Cassini Mission,'' signed September 8, 1994, and September 
     23, 1994, and Attachments, A, B and C to the Memorandum, 
     shall be merged with appropriations available for research, 
     development, test and evaluation and procurement for fiscal 
     year 1996, and shall be available for the same time period as 
     the appropriation with which merged, and shall be available 
     for obligation only for those Titan IV vehicles and Titan IV-
     related activities under contract as of the date of enactment 
     of this Act, as well as on the follow-on launch services and 
     program sustaining support contract to be awarded in fiscal 
     year 1996.
       Sec. 8099. None of the funds appropriated by this Act may 
     be used for the procurement of ball and roller bearings other 
     than those produced by a domestic source and of domestic 
     origin: Provided, 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 Committee 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 acquire capability for national 
     security purposes.
       Sec. 8100. Not less than 30 percent of the total inventory, 
     or 60,000 pounds, of the pentaborane currently stored in non-
     defective containers at Edwards Air Force Base, California, 
     will be retained until the Secretary of Energy certified to 
     the House and Senate Committees on Appropriations that the 
     Secretary does not intend to use the pentaborane at the Idaho 
     National Engineering Laboratory for: (a) a source of raw 
     material for environmental remediation of high level, liquid 
     radioactive waste, or (b) as a source of raw material for 
     boron drug for the Boron Neutron Capture Therapy or other 
     medical or industrial applications: Provided, That the 
     Secretary of the Air Force is authorized to dispose of any 
     materials that pose a significant health or safety hazard.
       Sec. 8101. The total amount appropriated in title II, III, 
     and IV of this Act is hereby reduced by $30,000,000 for 
     savings through improved management of contractor automatic 
     data processing costs charged through indirect rates on 
     Department of Defense acquisition contracts.
       Sec. 8102. (a) Not later than October 1, 1995, the 
     Secretary of Defense shall require that each disbursement of 
     the Department of Defense in an amount in excess of 
     $5,000,000 be matched to a particular obligation before the 
     disbursement is made.
       (b) The Secretary shall ensure that a disbursement in 
     excess of the threshold amount applicable under subsection 
     (a) is not divided into multiple disbursements of less than 
     that amount for the purpose of avoiding the applicability of 
     such subsection to that disbursement.
       (c) The Secretary of Defense may waive a requirement for 
     advance matching of a disbursement of the Department of 
     Defense with a particular obligation in the case of (1) a 
     disbursement involving deployed forces, (2) a disbursement 
     for an operation in a war declared by Congress or a national 
     emergency declared by the President or Congress, or (3) a 
     disbursement under any other circumstances for which the 
     waiver is necessary in the national security interests of the 
     United States, as determined by the Secretary and certified 
     by the Secretary to the congressional defense committees.
       (d) This section shall not be construed to limit the 
     authority of the Secretary of Defense to require that a 
     disbursement not in excess of the amount applicable under 
     subsection (a) be matched to a particular obligation before 
     the disbursement is made.
       Sec. 8103. None of the funds in this Act may be used to 
     purchase any supercomputer which is not manufactured in the 
     United States, unless the Secretary of Defense certifies to 
     the congressional defense committees that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes that is not available from United States 
     manufacturers.
       Sec. 8104. None of the funds appropriated in this Act to 
     the Department of the Army may be obligated for procurement 
     of 120mm mortars or 120mm mortar ammunition manufactured 
     outside of the United States: Provided, 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 acquire capability for national 
     security purposes.
       Sec. 8105. The Department of Defense shall release all 
     funds appropriated and available for the HAVE GAZE program to 
     the Department of the Air Force for obligation under existing 
     contractual arrangements.
       Sec. 8106. None of the funds available to the Department of 
     Defense during fiscal year 1996 may be obligated or expended 
     to support or finance the activities of the Defense Policy 
     Advisory Committee on Trade.
       Sec. 8107. Notwithstanding any other provision of law, (a) 
     funds available to the Navy in the Operation and Maintenance 
     appropriation for refueling overhauls and defueling 
     inactivations of nuclear-powered warships are available to 
     transport the shipments of naval spent nuclear fuel to the 
     Idaho National Engineering Laboratory needed for examination 
     and storage to avoid threats to the national security; and 
     (b) the Secretary of the Navy is hereby authorized to 
     immediately commence and accomplish such transportation: 
     Provided, That the Secretary of Defense shall make the 
     determination as to what shipments are required for that 
     purpose and shall ensure that the shipments are made in 
     accordance with the practices and requirements applied to 
     previous container shipments of naval spent fuel to the Idaho 
     National Engineering Laboratory: Provided further, That the 
     authority in this section shall expire on September 30, 1996 
     or upon the vacation or stay of the current or any subsequent 
     injunction issued by the United States District Court for the 
     District of Idaho which enjoins such shipments, whichever 
     occurs first: Provided further, That the authority in this 
     section may not be used unless 

[[Page H 9464]]

     the Secretary of Defense certifies in writing to the 
     congressional defense committees that a good-faith agreement 
     between the State of Idaho and the United States Government 
     was attempted but could not be reached concerning interim 
     shipments of spent nuclear fuel enjoined by any such 
     injunction based on national security reasons.
       Sec. 8108. None of the funds appropriated by this Act shall 
     be available to lease or charter a vessel in excess of 
     seventeen months (inclusive of any option periods) to 
     transport fuel or oil for the Department of Defense if the 
     vessel was constructed after October 1, 1995 unless the 
     Secretary of Defense requires that the vessel be constructed 
     in the United States with a double hull under the long-term 
     lease or charter authority provided in section 2401 note of 
     title 10 United States Code: Provided, That this limitation 
     shall not apply to contracts in force on the date of 
     enactment of this Act: Provided further, That by 1997 at 
     least 20 percent of new annual leases and charters must be 
     for ships of double hull design constructed after October 1, 
     1995 if available in numbers sufficient to satisfy this 
     requirement: Provided further, That the Military Sealift 
     Command shall plan to achieve the goal of eliminating single 
     hull ship leases by the year 2015.
       Sec. 8109. None of the funds appropriated or made available 
     in this Act to the Department of the Navy shall be used to 
     develop or procure main propulsion engines for the LPD-17 
     class of ships unless such equipment is powered by a diesel 
     engine manufactured in the United States by a domestically 
     operated entity: Provided, That the Secretary of Defense 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 acquire capability for national 
     security purposes or there exists a significant cost or 
     quality difference.
       Sec. 8110. None of the funds appropriated or made available 
     in this Act to the Department of the Navy shall be used to 
     develop or procure an emergency generator set for the New 
     Attack Submarine unless such equipment is powered by a diesel 
     engine manufactured in the United States by a domestically 
     operated entity: Provided, That the Secretary of Defense 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 acquire capability for national 
     security purposes or there exists a significant cost or 
     quality difference.
       Sec. 8111. None of the funds in this Act may be used to 
     transport military personnel into Edwards Air Force Base for 
     training rotations at the National Training Center after 
     April 15, 1996: Provided, That the Department of Defense 
     shall comply with the recommendations of the fiscal year 1996 
     Military Construction bill as it pertains to the interim and 
     permanent National Training Center Airhead.
       Sec. 8112. The Secretary of Defense and the Secretary of 
     the Army shall reconsider the decision not to include the 
     infantry military occupational specialty among the military 
     skills and specialties for which special pays are provided 
     under the Selected Reserve Incentive Program.
       Sec. 8113. (a) The Secretary of Defense shall submit, on a 
     quarterly basis, a report to the congressional defense 
     committees, the Committee on International Relations of the 
     House of Representatives and the Committee on Foreign 
     Relations of the Senate setting forth all costs (including 
     incremental costs) incurred by the Department of Defense 
     during the preceding quarter in implementing or supporting 
     resolutions of the United Nations Security Council, including 
     any such resolution calling for international sanctions, 
     international peacekeeping operations, and humanitarian 
     missions undertaken by the Department of Defense. The 
     quarterly report shall include an aggregate of all such 
     Department of Defense costs by operation or mission.
       (b) The Secretary of Defense shall detail in the quarterly 
     reports all efforts made to seek credit against past United 
     Nations expenditures and all efforts made to seek 
     compensation from the United Nations for costs incurred by 
     the Department of Defense in implementing and supporting 
     United Nations activities.
       Sec. 8114. (a) Limitation.--Of the funds available under 
     title II under the heading ``Former Soviet Union Threat 
     Reduction'' for dismantlement and destruction of chemical 
     weapons, not more than $52,000,000 may be obligated or 
     expended for that purpose until the President certifies to 
     Congress the following:
       (1) That the United States and Russia have completed a 
     joint laboratory study evaluating the proposal of Russia to 
     neutralize its chemical weapons and the United States agrees 
     with the proposal.
       (2) That Russia is in the process of preparing, with the 
     assistance of the United States as necessary, a comprehensive 
     plan to manage the dismantlement and destruction of the 
     Russia chemical weapons stockpile.
       (3) That the United States and Russia are committed to 
     resolving outstanding issues under the 1989 Wyoming 
     Memorandum of Understanding and the 1990 Bilateral 
     Destruction Agreement.
       (b) Definitions.--In this section:
       (1) The term ``1989 Wyoming Memorandum of Understanding'' 
     means the Memorandum of Understanding between the Government 
     of the United States of America and the Government of the 
     Union of Soviet Socialist Republics Regarding a Bilateral 
     Verification Experiment and Data Exchange Related to 
     Prohibition on Chemical Weapons, signed at Jackson Hole, 
     Wyoming, on September 23, 1989.
       (2) The term ``1990 Bilateral Destruction Agreement'' means 
     the Agreement between the United States of America and the 
     Union of Soviet Socialist Republics on destruction and non-
     production of chemical weapons and on measures to facilitate 
     the multilateral convention on banning chemical weapons 
     signed on June 1, 1990.
       Sec. 8115. (a) International Peacekeeping, Peace 
     Enforcement, and Humanitarian Assistance Operations.--It is 
     the sense of Congress that in the event of a deployment or 
     participation of United States Armed Forces units in any 
     international peacekeeping, peace enforcement, and 
     humanitarian assistance operation, the President must engage 
     in consultations with the bipartisan leadership of Congress 
     and the congressional committees named in subsection (e) 
     regarding such operation in accordance with subsection 
     (c)(1).
       (b) Covered Operations.--(1) This section applies to the 
     following:
       (A) Any international peacekeeping or peace-enforcement 
     operation that is not underway as of the date of the 
     enactment of this Act and that is authorized by the Security 
     Council of the United Nations under chapter VI or VII of the 
     Charter of the United Nations.
       (B) Any other international peacekeeping or peace-
     enforcement operation that is not underway as of the date of 
     the enactment of this Act.
       (C) Any deployment after the date of the enactment of this 
     Act of United States ground forces in the territory of the 
     former Yugoslavia above the level of such forces so deployed 
     as of such date of enactment, other than a deployment 
     involving fewer than 100 personnel.
       (D) Except as provided in paragraph (2) any international 
     humanitarian assistance operation.
       (2) This section does not apply with respect to--
       (A) an international humanitarian assistance operation 
     carried out in response to a disaster; or
       (B) any other international humanitarian assistance 
     operation if the President reports to Congress that the 
     estimated cost of such operation is less than $50,000,000.
       (c) Consultation With Congress.--(1) Consultations under 
     subsection (a) in the case of any operation shall be 
     initiated before the initial deployment of United States 
     Armed Forces units to participate in the operation and, 
     whenever possible, at least 15 days before such deployment. 
     However, if the President determines that the national 
     security so requires, the President may delay the initiation 
     of such consultations until after such initial deployment, 
     but in no case may such consultations be initiated later than 
     48 hours after such deployment.
       (2) Such consultations shall include discussion of all of 
     the following:
       (A) The goals of the operation and the mission of any 
     United States Armed Forces units involved in the operation.
       (B) The United States interests that will be served by the 
     operation.
       (C) The estimated cost of the operation.
       (D) The strategy by which the President proposes to fund 
     the operation, including possible supplemental appropriations 
     or payments from international organizations, foreign 
     countries, or other donors.
       (E) The extent of involvement of armed forces and other 
     contributions of personnel from other nations.
       (F) The anticipated duration and scope of the operation.
       (3) Such consultations shall continue on a periodic basis 
     throughout the period of the deployment.
         (d) Requests for Emergency Supplemental Appropriations.--
     Whenever there is a deployment of United States Armed Forces 
     to perform an international humanitarian, peacekeeping, or 
     peace-enforcement operation, the President should seek 
     emergency supplemental appropriations to meet the incremental 
     costs to the Department of Defense of that deployment not 
     later than 90 days after the date on which such deployment 
     commences.
       (e) Committees To Be Included in Consultations.--The 
     committees referred to in subsection (a) are the following:
       (1) The congressional defense committees.
       (2) The Committee on Foreign Relations of the Senate and 
     the Committee on International Relations of the House of 
     Representatives.
       (3) The Select Committee on Intelligence of the Senate and 
     the Permanent Select Committee on Intelligence of the House 
     of Representatives.
       Sec. 8116. (a) Findings.--The Senate makes the following 
     findings:
       (1) The President of France stated on June 13, 1995, that 
     the Republic of France plans to conduct eight nuclear test 
     explosions over the next several months.
       (2) The People's Republic of China continues to conduct 
     underground nuclear weapons tests.
       (3) The United States, France, Russia, and Great Britain 
     have observed a moratorium on nuclear testing since 1992.
       (4) A resumption of testing by the Republic of France could 
     result in the disintegration of the current testing 
     moratorium and a renewal of underground testing by other 
     nuclear weapon states.
       (5) A resumption of nuclear testing by the Republic of 
     France raises serious environmental and health concerns.
       (6) The United Nations Conference on Disarmament presently 
     is meeting in Geneva, Switzerland, for the purpose of 
     negotiating a Comprehensive Nuclear Test Ban Treaty (CTBT), 
     which would halt permanently the practice of conducting 
     nuclear test explosions.
       (7) Continued underground weapons testing by the Republic 
     of France and the People's Republic of China undermines the 
     efforts of the 

[[Page H 9465]]

     international community to conclude a CTBT by 1996, a goal 
     endorsed by 175 nations, at the recently completed NPT 
     Extension and Review Conference (the conference for the 
     extension and review of the Nuclear Non-Proliferation 
     Treaty).
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Republic of France and the People's Republic of 
     China should abide by the current international moratorium on 
     nuclear test explosions and refrain from conducting 
     underground nuclear tests in advance of a Comprehensive Test 
     Ban Treaty.
       Sec. 8117. (a) Limitation on Transfer of Defense Articles 
     and Services.--Notwithstanding any other provision of law, 
     none of the funds available to the Department of Defense for 
     the current fiscal year may be obligated or expended to 
     transfer to another nation or an international organization 
     any defense articles or services (other than intelligence 
     services) for use in the activities described in subsection 
     (b) unless the congressional defense committees, and the 
     Committee on International Relations of the House of 
     Representatives and the Committee on Foreign Relations of the 
     Senate are notified 15 days in advance of such transfer.
       (b) Covered Activities.--(1) This section applies to--
       (A) any international peacekeeping or peace-enforcement 
     operation under the authority of chapter VI or chapter VII of 
     the United Nations Charter under the authority of a United 
     Nations Security Council resolution; and
       (B) any other international peacekeeping peace-enforcement, 
     humantarian, or disaster relief operation.
       (c) Required Notice.--A notice under subsection (a) shall 
     include the following:
       (1) A description of the equipment, supplies, or services 
     to be transferred.
       (2) A statement of the value of the equipment, supplies, or 
     services to be transferred.
       (3) In the case of a proposed transfer of equipment or 
     supplies--
       (A) a statement of whether the inventory requirements of 
     all elements of the Armed Forces (including the reserve 
     components) for the type of equipment or supplies to be 
     transferred have been met; and
       (B) a statement of whether the items proposed to be 
     transferred will have to be replaced and, if so, how the 
     President proposes to provide funds for such replacement.
       Sec. 8118. None of the funds available to the Department of 
     Defense shall be obligated or expended to make a financial 
     contribution to the United Nations for the cost of any United 
     Nations peacekeeping activity (whether pursuant to assessment 
     or a voluntary contribution) or for payment of any United 
     States arrearage to the United Nations.
       Sec. 8119. None of the funds made available in this Act may 
     be used to administer any policy that permits the performance 
     of abortions at medical treatment or other facilities of the 
     Department of Defense, except when it is made known to the 
     Federal official having authority to obligate or expend such 
     funds that the life of the mother would be endangered if the 
     fetus were carried to term: Provided, That the provisions of 
     this section shall enter into force if specifically 
     authorized in the National Defense Authorization Act for 
     Fiscal Year 1996.
       Sec. 8120. None of the funds made available in this Act 
     under the heading ``Procurement of Ammunition, Army'' may be 
     obligated or expended for the procurement of munitions unless 
     such acquisition fully complies with the Competition in 
     Contracting Act.
       Sec. 8121. None of the funds in this Act may be used to 
     implement any change to the computation of military retired 
     pay as required by law in fiscal year 1995 for military 
     personnel who entered the Service before September 8, 1980.
       Sec. 8122. None of the funds available to the Department of 
     Defense under this Act shall be obligated or expended to pay 
     a contractor under a contract with the Department of Defense 
     for costs of any amount paid by the contractor to an employee 
     when it is made known to the Federal official having 
     authority to obligate or expend such funds that--
       (1) such costs are for a bonus or otherwise in excess of 
     the normal salary paid by the contractor to the employee; and
       (2) such bonus is part of restructuring costs associated 
     with a business combination.
       Sec. 8123. None of the funds provided in title II of this 
     Act for ``Former Soviet Union Threat Reduction'' may be 
     obligated or expended to finance housing for any individual 
     when it is made known to the Federal official having 
     authority to obligation or expend such funds that such 
     individual was a member of the military forces of the Soviet 
     Union or that such individual is or was a member of the 
     military forces of the Russian Federation.
       Sec. 8124. It is the sense of Congress that none of the 
     funds available to the Department of Defense shall be 
     obligated or expended for the deployment or participation of 
     United States Armed Forces in any peacekeeping operation in 
     Bosnia-Herzegovina, unless such deployment or participation 
     is specifically authorized by a law enacted after the date of 
     enactment of this Act: Provided, That this section shall not 
     apply to operations of the nature and extent conducted by 
     United States Armed Forces in Bosnia-Herzegovina during 
     fiscal year 1995, emergency air rescue operations, the 
     airborne delivery of humanitarian supplies, or the planning 
     and execution of OPLAN 40104 or similar operations to extract 
     UNPROFOR personnel.
       Sec. 8125. Notwithstanding any other provision in this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $832,000,000 to reflect savings from revised economic 
     assumptions, to be distributed as follows:
       Operation and Maintenance, Army, $54,000,000;
       Operation and Maintenance, Navy, $80,000,000;
       Operation and Maintenance, Marine Corps, $9,000,000;
       Operation and Maintenance, Air Force, $51,000,000;
       Operation and Maintenance, Defense-Wide, $36,000,000;
       Operation and Maintenance, Army Reserve, $4,000,000;
       Operation and Maintenance, Navy Reserve, $4,000,000;
       Operation and Maintenance, Marine Corps Reserve, 
     $1,000,000;
       Operation and Maintenance, Air Force Reserve, $3,000,000;
       Operation and Maintenance, Army National Guard, $7,000,000;
       Operation and Maintenance, Air National Guard, $7,000,000;
       Drug Interdiction and Counter-Drug Activities, Defense, 
     $5,000,000;
       Environmental Restoration, Defense, $11,000,000;
       Overseas Humanitarian, Disaster, and Civic Aid, $1,000,000;
       Former Soviet Union Threat Reduction, $2,000,000;
       Defense Health Program, $51,000,000;
       Aircraft Procurement, Army, $9,000,000;
       Missile Procurement, Army, $5,000,000;
       Procurement of Weapons and Tracked Combat Vehicles, Army, 
     $10,000,000;
       Procurement of Ammunition, Army, $6,000,000;
       Other Procurement, Army, $17,000,000;
       Aircraft Procurement, Navy, $29,000,000;
       Weapons Procurement, Navy, $13,000,000;
       Shipbuilding and Conversion, Navy, $42,000,000;
       Other Procurement, Navy, $18,000,000;
       Procurement, Marine Corps, $4,000,000;
       Aircraft Procurement, Air Force, $50,000,000;
       Missile Procurement, Air Force, $29,000,000;
       Other Procurement, Air Force, $45,000,000;
       Procurement, Defense-Wide, $16,000,000;
       Chemical Agents and Munitions Destruction, Defense, 
     $5,000,000;
       Research, Development, Test and Evaluation, Army, 
     $20,000,000;
       Research, Development, Test and Evaluation, Navy, 
     $50,000,000;
       Research, Development, Test and Evaluation, Air Force, 
     $79,000,000;
       Research, Development, Test and Evaluation, Defense-Wide, 
     $57,000,000; and
       Developmental Test and Evaluation, Defense, $2,000,000: 
     Provided, That these reductions shall be applied 
     proportionally to each budget activity, activity group and 
     subactivity group and each program, project, and activity 
     within each appropriation account.
       Sec. 8126. Notwithstanding any other provision of law, of 
     the revenue collected by the Defense Business Operations 
     Fund, $117,000,000 shall be made available for obligation and 
     expenditure for termination liability, lease and operational 
     costs for aircraft to accomplish the VC-137 aircraft mission; 
     Provided, That the funds made available pursuant to this 
     section shall remain available until expended.
       Sec. 8127. Funds appropriated by this and future Acts under 
     the heading ``Missile Procurement, Air Force'' may be 
     obligated for payment of satellite on-orbit incentives in the 
     fiscal year in which an incentive payment is earned: 
     Provided, That any obligation made pursuant to this section 
     may not be entered into until 30 calendar days in session 
     after the congressional defense committees have been notified 
     that an on-orbit incentive payment has been earned.
       Sec. 8128. (a) Not more than a total of $11,000,000 of the 
     funds appropriated under the heading ``Research, Development, 
     Test and Evaluation, Army'', in title IV of Public Law 103-
     335, and in title IV of this Act, may be made available for 
     support of a NATO Alliance Ground Surveillance (AGS) program 
     based on the Joint Surveillance/Target Attack Radar System 
     (JSTARS).
       (b) Not more than a total of $6,450,000 of the funds 
     appropriated under the heading ``Research, Development, Test 
     and Evaluation, Air Force'', in title IV of Public Law 103-
     335, and in title IV of this Act, may be made available for 
     support of a NATO Alliance Ground Surveillance (AGS) program 
     based on JSTARS.
       Sec. 8129. (a) In addition to any other reductions required 
     by this Act, the following funds are hereby reduced from the 
     following accounts in title IV of this Act in the specified 
     amounts:
       ``Research, Development, Test and Evaluation, Army'', 
     $47,852,000;
       ``Research, Development, Test and Evaluation, Navy'', 
     $85,947,000;
       ``Research, Development, Test and Evaluation, Air Force'', 
     $128,958,000; and
       ``Research, Development, Test and Evaluation, Defense-
     Wide'', $62,243,000.
       (b) The reductions taken pursuant to subsection (a) shall 
     be applied on a pro-rata basis by subproject within each R-1 
     program element as modified by this Act, except that no 
     reduction may be taken against the funds made available to 
     the Department of Defense for Ballistic Missile Defense.
       This Act may be cited as the ``Department of Defense 
     Appropriations Act, 1996''.
       And the Senate agree to the same.
     Bill Young,
     Joseph M. McDade,
     Bob Livingston,
     Jerry Lewis,
     Joe Skeen,
     David L. Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Mark W. Neumann (except to the agreement regarding U.S. 
     deployment in Bosnia),
     John P. Murtha,

[[Page H 9466]]

     Norman D. Dicks,
     Charles Wilson,
     W.G. (Bill) Hefner,
     Martin Olav Sabo,
                                Managers on the Part of the House.

     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete V. Domenici,
     Phil Gramm,
     Kit Bond,
     Mitch McConnell,
     Connie Mack,
     Richard C. Shelby,
     Mark O. Hatfield,
     Daniel K. Inouye,
     Fritz Hollings,
     J. Bennett Johnston,
     Robert C. Byrd,
     Patrick J. Leahy,
                               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 
     amendment of the Senate to the bill (H.R. 2126), making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 1996, 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, 1996, incorporates some of the provisions 
     of both the House and Senate versions of the bill. The 
     language and allocations set forth in House Report 104-208 
     and Senate Report 104-124 should be complied with unless 
     specifically addressed in the accompanying bill and statement 
     of the managers to the contrary.
       Senate Amendment: The Senate deleted the entire House bill 
     after the enacting clause and inserted the Senate bill. The 
     conference agreement includes a revised bill.


              DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

       The conferees agree that for the purposes of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (Public Law 
     99-177) as amended by the Balanced Budget and Emergency 
     Deficit Control Reaffirmation Act of 1987 (Public Law 100-
     119) and by the Budget Enforcement Act of 1990 (Public Law 
     101-508), the term program, project, and activity for 
     appropriations contained in this Act shall be defined as the 
     most specific level of budget items identified in the 
     Department of Defense Appropriations Act, 1996, the 
     accompanying House and Senate Committee reports, the 
     conference report and accompanying joint explanatory 
     statement of the managers of the Committee of Conference, the 
     related classified annexes and reports, and the P-1 and R-1 
     budget justification documents as subsequently modified by 
     Congressional action. The following exception to the above 
     definition shall apply:
       For the Military Personnel and the Operation and 
     Maintenance accounts, the term ``program, project, and 
     activity'' is defined as the appropriations accounts 
     contained in the Department of Defense Appropriations Act. At 
     the time the President submits his budget for fiscal year 
     1997, the conferees direct the Department of Defense to 
     transmit to the congressional defense committees a budget 
     justification document to be known as the ``0-1'' which shall 
     identify, at the budget activity, activity group, and 
     subactivity group level, the amounts requested by the 
     President to be appropriated to the Department of Defense for 
     operation and maintenance in any budget request, or amended 
     budget request, for fiscal year 1997.

                      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........................................      19,721,408      19,884,608      19,776,587      19,809,187
    Navy........................................      16,930,609      17,006,363      16,979,209      17,008,563
    Marine Corps................................       5,877,740       5,928,340       5,886,540       5,885,740
    Air Force...................................      17,108,120      17,294,620      17,156,443      17,207,743
Reserve personnel:                                                                                              
    Army........................................       2,101,366       2,122,566       2,102,466       2,122,466
    Navy........................................       1,348,223       1,350,023       1,349,323       1,355,523
    Marine Corps................................         361,751         366,101         364,551         378,151
    Air Force...................................         782,761         783,586         783,861         784,586
National Guard personnel:                                                                                       
    Army........................................       3,218,258       3,240,858       3,222,422       3,242,422
    Air Force...................................       1,246,427       1,254,827       1,259,627       1,259,627
                                                 ---------------------------------------------------------------
      Total, Military Personnel.................      68,696,663      69,231,892      68,881,029      69,054,008
----------------------------------------------------------------------------------------------------------------

           operations provide comfort/enhanced southern watch

       The conference agreement includes $647,100,000, as proposed 
     by the House, for unbudgeted costs associated with Operations 
     Provide Comfort and Enhanced Southern Watch. Of this amount, 
     $77,500,000 is appropriated in Title I, Military Personnel, 
     and $569,600,000 is appropriated in Title II, Operation and 
     Maintenance. The conferees designate these funds as an item 
     of Congressional interest, meaning they can only be used for 
     additional incremental costs of Operations Provide Comfort 
     and Enhances Southern Watch unless prior approval is granted 
     by the House and Senate Committees on Appropriations through 
     normal reprogramming procedures. In addition, the conferees 
     direct that none of these funds may be obligated or expended 
     unless the costs of these operations are fully submitted in 
     the President's fiscal year 1997 budget request. The 
     conferees direct that funds shall be available for obligation 
     only after submission of the fiscal year 1997 budget request, 
     and only if the request fully funds and details the estimated 
     costs of these operations. The conferees direct the Secretary 
     of Defense to provide a report to the House and Senate 
     Committees on Appropriations by January 30, 1996, on planned 
     obligations and expenditures of these funds.


                        force structure changes

       The conferees recommend an increase of $38,500,000 to 
     maintain fiscal year 1995 Primary Authorized Aircraft (PAA) 
     levels in Air National Guard general purpose fighter forces 
     during fiscal year 1996.
       The conferees recommend an increase of $34,200,000 to 
     sustain the maritime patrol aircraft force structure at 13 
     active and 9 reserve squadrons in fiscal year 1996.
       The conferees also recommend an increase of $9,600,000 for 
     additional Marine Corps Reserve full-time support, in order 
     to facilitate the Marine Corps Reserve's contingency role and 
     operations.


        military technician and medical personnel reprogramming

       The conferees direct that the Department of Defense, in the 
     event of sequestration during fiscal year 1996, protect 
     military (civilian) technicians and medical personnel 
     necessary to maintain the current level of medical and 
     Reserve Component operations, from any associated reduction 
     of personnel pay medical programs (to include CHAMPUS).


                      basic allowance for quarters

       The conferees agree to provide $72,366,000, as proposed by 
     the Senate, for an increase in the Basic Allowance for 
     Quarters, to be effective January 1, 1996.

                           ACTIVE END STRENGTH                          
                           [Fiscal year 1996]                           
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. Budget
------------------------------------------------------------------------
Army.............................      495,000      495,000  ...........
Navy.............................      428,000      428,340         +340
Marine Corps.....................      174,000      174,000  ...........
Air Force........................      388,200      388,200  ...........
                                  --------------------------------------
      Total......................    1,485,200    1,485,540         +340
------------------------------------------------------------------------

                        Military Personnel, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Provide Comfort/Enhanced Southern                                       
 Watch...........................        3,600  ...........        3,600
Overseas Station Allowance.......      139,000       32,000       61,000
Selective Reenlistment Bonus.....       -1,200  ...........  ...........
Basic Allowance for Quarters.....       12,000       23,179       23,179
Variable Housing Allowance.......        9,800  ...........  ...........
                                  --------------------------------------
      Total, Military Personnel,                                        
       Army......................     +163,200      +55,179      +87,779
------------------------------------------------------------------------

                        Military Personnel, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Aviation Continuation Pay........       -1,000  ...........       -1,000
Responsibility Pay...............       -1,146  ...........       -1,146
Provide Comfort/Enhanced Southern                                       
 Watch...........................       25,500  ...........       25,500
Overseas Station Allowance.......       45,000       32,000       24,000
Selective Reenlistment Bonus.....      -25,000  ...........  ...........
Basic Allowance for Quarters.....       11,600       16,600       16,600
Variable Housing Allowance.......       20,800  ...........  ...........
P-3 Squadron.....................  ...........  ...........       14,000
                                  --------------------------------------
      Total, Military Personnel,                                        
       Navy......................      +75,754      +48,600      +77,954
------------------------------------------------------------------------

                    Military Personnel, Marine Corps

       The conference agreement on items addressed by either the 
     House or Senate is as follows:

                                                                        

[[Page H 9467]]
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Aviation Continuation Pay........         -200  ...........         -200
Provide Comfort/Enhanced Southern                                       
 Watch...........................        3,400  ...........        3,400
Overseas Station Allowance.......       43,000        4,000  ...........
Selective Reenlistment Bonus.....       -4,000  ...........  ...........
Basic Allowance for Quarters.....        3,200        4,800        4,800
Variable Housing Allowance.......        5,200  ...........  ...........
                                  --------------------------------------
      Total, Military Personnel,                                        
       Marine Corps..............      +50,600       +8,800       +8,880
------------------------------------------------------------------------



                     Military Personnel, Air Force

       The conference agreement on items addressed by either the 
     House or Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Aviation Continuation Pay........       -4,400  ...........       -4,400
Aviation Career Incentive Pay....         -800  ...........         -800
Flight Duty Pay..................         -500  ...........         -500
Provide Comfort/Enhanced Southern                                       
 Watch...........................       45,000  ...........       45,000
Overseas Station Allowance.......       73,000       32,000       44,000
Selective Reenlistment Bonus.....      -12,000  ...........  ...........
Basic Allowance for Quarters.....       11,000       16,323       16,323
Variable Housing Allowance.......       10,200  ...........  ...........
B-52 Force Structure.............       65,000  ...........  ...........
                                  --------------------------------------
      Total, Military Personnel,                                        
       Air Force.................    --186,500      +48,323      +99,323
------------------------------------------------------------------------

                   National Guard and Reserve Forces

       The conferees agree to provide $9,142,775,000 in Reserve 
     personnel appropriations, $8,815,232,000 in Operation and 
     maintenance appropriations, and $777,000,000 in the National 
     Guard and Reserve Equipment appropriation. These funds 
     support a Selected Reserve strength of 930,342 as shown 
     below.

                            RESERVE STRENGTHS                           
                           [Fiscal year 1995]                           
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. Budget
------------------------------------------------------------------------
Selected Reserve:                                                       
    Army Reserve.................      230,000      230,000  ...........
    Navy Reserve.................       98,608       98,877         +269
    Marine Corps Reserve.........       42,000       42,000  ...........
    Air Force Reserve............       73,969       74,007          +38
    Army National Guard..........      373,000      373,000  ...........
    Air National Guard...........      109,458      112,458       +3,000
                                  --------------------------------------
      Total......................      927,035      930,342       +3,307
AGR/TARS:                                                               
    Army Reserve.................       11,575       11,575  ...........
    Navy Reserve.................       17,490       17,605         +115
    Marine Corps Reserve.........        2,285        2,559         +274
    Air Force Reserve............          628          628  ...........
    Army National Guard..........       23,390       23,390  ...........
    Air National Guard...........        9,817       10,066         +249
                                  --------------------------------------
      Total......................       65,185       65,823         +638
Technicians:                                                            
    Army Reserve.................        6,409        6,630         +221
    Air Force Reserve............        9,467        9,802         +335
    Army National Guard..........       25,094       25,500         +406
    Air National Guard...........       22,558       23,399         +841
                                  --------------------------------------
      Total......................       63,528       65,331       +1,803
------------------------------------------------------------------------

                    military (civilian) technicians

       The conferees recommend an increase of $40,500,000 in the 
     Operation and Maintenance accounts of the Army Reserve, Air 
     Force Reserve, Army National Guard, and Air National Guard 
     for additional military (civilian) technicians. The conferees 
     remain concerned about the significant reduction to military 
     technicians contained in the President's budget request and 
     expect these funds to not be used for any other purpose 
     without a prior approval reprogramming being submitted 
     through normal channels. Additionally, the conferees direct 
     the Department to provide the required number of workyears 
     needed to sustain the levels of military (civilian) 
     technicians as provided in this Act. The conferees also 
     include a general provision (Section 8087) which prohibits 
     reducing the full-time support levels for technicians unless 
     such technicians are a result of a reduction in military 
     force structure. The conferees expect the Department to 
     follow the intent of this provision.

                        Reserve Personnel, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Unit Readiness/Training..........       20,000  ...........       20,000
Basic Allowance for Quarters.....          500        1,100        1,100
Variable Housing Allowance.......          700  ...........  ...........
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Army......................      +21,200       +1,100      +21,100
------------------------------------------------------------------------

                        Reserve Personnel, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Basic Allowance for Quarters.....          700        1,100        1,100
Variable Housing Allowance.......        1,100  ...........  ...........
P-3 Squadron.....................  ...........  ...........        6,200
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Navy......................       +1,800       +1,100       +7,300
------------------------------------------------------------------------

                    Reserve Personnel, Marine Corps

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Annual Training/School Tours.....        4,000  ...........        4,000
Basic Allowance for Quarters.....          150        2,800        2,800
Variable Housing Allowance.......          200  ...........  ...........
Increase of Active Reservists....  ...........  ...........        9,600
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Marine Corps..............       +4,350       +2,800      +16,400
------------------------------------------------------------------------

                      Reserve Personnel, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
WC-130 Weather Reconn............          725  ...........          725
Basic Allowance for Quarters.....          100        1,100        1,100
                                  --------------------------------------
      Total, Reserve Personnel,                                         
       Air Force.................         +825       +1,100       +1,825
------------------------------------------------------------------------

                     National Guard Personnel, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
School/Special Training..........       20,000  ...........       20,000
Basic Allowance for Quarters.....        1,300        4,164        4,164
Variable Housing Allowance.......        1,300  ...........  ...........
                                  --------------------------------------
      Total, National Guard                                             
       Personnel, Army...........       22,600        4,164       24,164
------------------------------------------------------------------------

                  National Guard Personnel, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Tanker Task Force/1st Air Force..        7,200  ...........  ...........
Basic Allowance for Quarters.....          500        1,200        1,200
Variable Housing Allowance.......          700  ...........  ...........
Fighter Force Structure..........  ...........       12,000       12,000
                                  --------------------------------------
      Total, National Guard                                             
       Personnel, Air Force......        8,400       13,200       13,200
------------------------------------------------------------------------

                 support of the u.s. antarctic program

       The conferees agree to continue the Department of Defense 
     support to the U.S. Antarctic Program. However, in light of 
     the Congressional requirement for the National Science and 
     Technology Council to undertake a Government-wide policy 
     review of DoD's role in the Antarctic program no later than 
     March 31, 1996, future Defense involvement in this mission 
     will be reassessed after receipt of that report. The 
     conferees believe that Air National Guard participation in 
     this project is predicated only on full reimbursement by the 
     National Science Foundation and shall not conflict with any 
     other Air National Guard mission.

                  TITLE II--OPERATION AND MAINTENANCE

       A summary of the conference agreement on items addressed by 
     either the House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
RECAPITULATION         50000                                                                                    
O & M, ARMY.........................      18,134,736      18,996,131      17,947,229      18,321,965            
    TRANSFER--STOCKPILE / DBOF......        (50,000)        (50,000)        (50,000)        (50,000)            
 O & M, NAVY........................      21,175,710      20,846,710      21,195,301      21,279,425            
    TRANSFER--STOCKPILE / DBOF......        (50,000)        (50,000)        (50,000)        (50,000)            
O & M, MARINE CORPS.................       2,269,722       2,508,822       2,341,737       2,392,522            
O & M, AIR FORCE....................      18,206,597      18,873,793      18,202,437      18,561,267            
    TRANSFER--STOCKPILE / DBOF......        (50,000)        (50,000)        (50,000)        (50,000)            
O & M, DEFENSEWIDE..................      10,366,782       9,908,810       9,904,068      10,388,595            
O & M, ARMY RESERVE.................       1,068,591       1,119,191       1,068,312       1,119,191            
O & M, NAVY RESERVE.................         826,042         841,565         826,042         859,542            
O & M, MARINE CORPS RESERVE.........          90,283         102,079          90,283         100,283            
O & M, AIR FORCE RESERVE............       1,485,947       1,519,287       1,485,947       1,519,287            
O & M, ARMY NATIONAL GUARD..........       2,304,108       2,334,487       2,361,708       2,440,808            
O & M, AIR NATIONAL GUARD...........       2,712,221       2,737,221       2,724,021       2,776,121            
NATL BOARD FOR THE PROMOTON OF RIFLE                                                                            
 PRACTICE, ARMY.....................  ..............  ..............  ..............  ..............            
COURT OF MILITARY APPEALS, DEFENSE..           6,521           6,521           6,521           6,521            
ENVIRONMENTAL RESTORATION, DEFENSE..       1,622,200       1,422,200       1,487,000       1,422,200            
SUMMER OLYMPICS.....................          15,000          15,000          15,000          15,000            
SPECIAL OLYMPICS....................  ..............  ..............  ..............  ..............            
HUMANITARIAN ASSISTANCE.............          79,790  ..............          60,000  ..............            
FORMER SOVIET UNION THREAT REDUCTION         371,000         200,000         325,000         300,000            
CONTRIBUTIONS FOR INTERNATONAL                                                                                  
 PEACEKEEPING AND PEACE                                                                                         
  ENFORCEMENT ACTIVITIES FUND.......          65,000  ..............  ..............  ..............            
OVERSEAS HUMANITARIAN, DISASTER, AND                                                                            
 CIVIC AID..........................  ..............          50,000  ..............          50,000            
                                                     -----------------------------------------------------------

[[Page H 9468]]
                                                                                                                
      GRAND TOTAL, O & M............      80,800,250      81,483,817      79,940,606      81,552,727            
        TRANSFER....................       (150,000)       (150,000)       (150,000)       (150,000)            
                                                     -----------------------------------------------------------
          TOTAL FUNDS AVAILABLE, O &                                                                            
           M........................      80,950,250      81,633,817      80,090,606      81,702,727            
----------------------------------------------------------------------------------------------------------------




              budget justification and execution materials

       The conferees are encouraged by the steps the Department 
     has taken too improve the Operation and maintenance program 
     justification materials submitted to the Congress. In order 
     to further these efforts, the conferees direct the Department 
     to:
       provide the Committees on Appropriations quarterly budget 
     execution reports for all Operation and maintenance accounts 
     for fiscal year 1996. These reports should reflect the O-1 
     categories used in the budget justification materials. 
     Reports should be submitted within 60 days of the end of the 
     quarter to which they apply, concurrently to the Office of 
     Management and Budget;
       provide the Committees on Appropriations quarterly reports 
     describing the execution of real property maintenance 
     programs. These reports should describe those activities 
     specifically and/or generally described by the Congress and 
     should separately identify activity related to barracks 
     renovation. Real Property Maintenance is designated an item 
     of congressional interest; transfers from real property 
     maintenance programs to other activities are subject to 
     prior-notification reprogramming procedures.
       The conferees agree that proposed transfers of funds 
     between O-1 budget activity funding categories in excess of 
     $20,000,000 are subject to normal reprogramming procedures. 
     In addition, due to continuing concerns about force readiness 
     and the possible diversion of Operation and maintenance 
     funds, the conferees agree that the Department should provide 
     written notification to 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.


                          financial management

       The conferees are concerned about the state of financial 
     management in the Department of Defense and the measures that 
     may be taken to improve upon past performance. Both the House 
     and Senate reports on the fiscal year 1996 Department of 
     Defense Appropriations Bill recommended several items for the 
     Department's consideration. These items should be merged into 
     a single report due to the Committees on Appropriations not 
     later than May 31, 1996. The DoD report should address the 
     following issues:
       the state of Defense Finance and Accounting Service (DFAS) 
     consolidation and future reorganization plans. Of specific 
     interest are DoD plans concerning establishment of 20 DFAS 
     operating locations;
       opportunities for utilizing private sector financial 
     services to meet non-unique departmental requirements such as 
     travel processing, payroll and contract disbursements;
       procedureal changes designed to improve DoD performance in 
     the areas of unmatched disbursements and negative 
     unliquidated obligations;
       the estimated resource requirements to achieve long term 
     improvements of DoD financial management procedures and 
     systems.


                       Real Property Maintenance

       The conferees agree with the Senate in providing an 
     additional $322,000,000 for barracks renovation. The 
     conferees have a provided a total increase of $700,000,000 to 
     the Real Property Maintenance account.

------------------------------------------------------------------------
                                                                Total   
                                     Barracks    Other RPM    additional
                                    renovation                   RPM    
------------------------------------------------------------------------
Army.............................      100,000       67,000      167,000
Navy.............................      100,000       55,000      155,000
Air Force........................      100,000       51,000      151,000
Marine Corps.....................       22,000       38,000       60,000
Army National Guard..............  ...........      100,000      100,000
Army Reserve.....................  ...........       17,000       17,000
Navy Reserve.....................  ...........       20,000       20,000
Marine Corps Reserve.............  ...........        1,500        1,500
Air National Guard...............  ...........       15,000       15,000
Air Force Reserve................  ...........       13,500       13,500
                                  --------------------------------------
      Total......................      322,000      378,000      700,000
------------------------------------------------------------------------

                       real Property Maintenance

       The conferees agree to reduce the military department's 
     security program accounts and the On-Site Inspection Agency. 
     In order to meet emergent requirements stemming from valid 
     treaty obligations, the conferees expect the Department of 
     Defense to submit a reprogramming request subject to normal, 
     prior approval reprogramming procedures.


                      transportation improvements

       The conferees agree that the Department of Defense should 
     be able to improve the efficiency of the transportation 
     organizations and infrastructure under the control of the 
     U.S. Transportation Command (USTRANSCOM). The conferees 
     direct that the Department of Defense report to the 
     congressional defense committees not later than March 31, 
     1996, on measure that will be taken to achieve improvements 
     in this area.


             international military training and education

       The conferees express their continued support for the 
     International Military Education and Training Program. The 
     conferees note however that this program is funded within 
     international affairs programs and is properly within the 
     jurisdiction of the Subcommittees on Foreign Operations. 
     Therefore, the conferees direct that no funds appropriated in 
     this act be used for foreign operations costs associated with 
     the International Military Education and Training program.


                    defense commissary access policy

       The conferees direct a report be made by the General 
     Accounting Office to the Committee on Appropriations of the 
     Senate and the House of Representatives on any changes in DoD 
     commissary access policy, including providing reservists new 
     or additional privileges, and addressing any resulting 
     financial impact on the commissaries.


       military traffic management command reengineering program

       The conferees direct the Department of Defense to provide a 
     report on its pilot program to implement commercial business 
     practices and standards of service for its movement of 
     military household goods, to the congressional defense 
     committees by March 1, 1997. This report should fully assess 
     how the pilot program impacts the government's transportation 
     costs as compared to the current program. The conferees 
     expect the Department to fairly evaluate the present program 
     as modified by the removal of government unique terms, 
     conditions and regulations and using simplified procedures. 
     This analysis shall determine whether the proposed 
     reengineering of the current program is economically 
     justified, can achieve a higher level of service and lower 
     claims frequency.
       In addition, the conferees direct the Department to report 
     by January 1, 1996, prior to the implementation of any 
     element of the pilot program, on its impact on small 
     businesses resulting from, but not limited to, the 
     application of the Federal Acquisition Regulations, and the 
     requirement of any program elements that are not standard 
     commercial business practices.

                  TITLE II--OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY                                                                                 
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
LAND FORCES              200                                                                                    
COMBAT UNITS........................       1,882,069       1,882,069       1,882,069       1,882,069            
TACTICAL SUPPORT....................       1,165,970       1,165,970       1,165,970       1,165,970            
THEATER DEFENSE FORCES..............         178,670         178,670         178,670         178,670            
FORCE RELATED TRAINING/SPECIAL                                                                                  
 ACTIVITIES.........................       1,271,154       1,271,154       1,285,154       1,271,154            
FORCE COMMUNICATIONS................          73,584          73,584          73,584          73,584            
DEPOT MAINTENANCE...................         861,426       1,065,426         890,426         950,696            
JCS EXERCISES.......................          54,467          54,467          54,467          54,467            
BASE SUPPORT........................       3,582,306       3,612,306       3,618,129       3,612,306            
LAND OPERATIONS SUPPORT  700                                                                                    
COMBAT DEVELOPMENTS.................         214,364         214,364         214,364         214,364            
UNIFIED COMMANDS....................          36,937          36,937          36,937          36,937            
                                                     -----------------------------------------------------------

[[Page H 9469]]
                                                                                                                
      TOTAL, BUDGET ACTIVITY 1......       9,320,947       9,554,947       9,399,770       9,440,217            
                                                     ===========================================================
BUDGET ACTIVITY 2: MOBILIZATION                                                                                 
MOBILITY OPERATIONS     1000                                                                                    
POMCUS..............................          86,830          86,830          86,830          86,830            
STRATEGIC MOBILIZATION..............         393,923         482,923         388,923         423,923            
WAR RESERVE ACTIVITIES..............          72,166          72,166          72,166          72,166            
INDUSTRIAL PREPAREDNESS.............         143,841         143,841         143,841         143,841            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2......         696,760         785,760         691,760         726,760            
                                                     ===========================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
ACCESSION TRAINING      1400                                                                                    
OFFICER ACQUISITION.................          58,328          58,328          58,328          58,328            
RECRUIT TRAINING....................          11,228          11,228          11,228          11,228            
ONE STATION UNIT TRAINING...........          17,008          17,008          17,008          17,008            
RESERVE OFFICER TRAINING CORPS                                                                                  
 (ROTC).............................         109,789         109,789         109,789         109,789            
BASE SUPPORT (ACADEMY ONLY).........         118,445         118,445         118,445         118,445            
BASIC SKILL/ADVANCE TRAINING                                                                                    
SPECIALIZED SKILL TRAINING..........         236,760         302,760         260,760         281,760            
FLIGHT TRAINING.....................         218,514         218,514         218,514         218,514            
PROFESSIONAL DEVELOPMENT EDUCATION..          68,981          68,981          68,981          68,981            
TRAINING SUPPORT....................         375,528         375,528         375,528         375,528            
BASE SUPPORT (OTHER TRAINING).......       1,160,360       1,160,360       1,171,960       1,160,360            
RECRUITING/OTHER TRAINING100                                                                                    
RECRUITING AND ADVERTISING..........         211,375         217,875         216,375         216,375            
EXAMINING...........................          64,333          64,333          64,333          64,333            
OFF-DUTY AND VOLUNTARY EDUCATION....         103,812         103,812         103,812         103,812            
CIVILIAN EDUCATION AND TRAINING.....          81,108          81,108          81,108          81,108            
JUNIOR ROTC.........................          74,506          74,506          74,506          74,506            
BASE SUPPORT (RECRUITING LEASES)....         156,020         156,020         156,020         156,020            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3......       3,066,095       3,138,595       3,106,695       3,116,095            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &50                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
SECURITY PROGRAMS       2600                                                                                    
SECURITY PROGRAMS...................         362,333         362,333         356,333         356,333            
LOGISTICS OPERATIONS    2700                                                                                    
SERVICEWIDE TRANSPORTATION..........         542,910         542,910         542,910         542,910            
CENTRAL SUPPLY ACTIVITIES...........         487,281         475,281         487,281         491,031            
LOGISTIC SUPPORT ACTIVITIES.........         299,230         299,230         299,230         299,230            
AMMUNITION MANAGEMENT...............         300,853         300,853         300,853         300,853            
SERVICEWIDE SUPPORT     3000                                                                                    
ADMINISTRATION......................         275,238         265,238         275,588         275,588            
SERVICEWIDE COMMUNICATIONS..........         686,446         686,446         686,446         686,446            
MANPOWER MANAGEMENT.................         124,676         124,676         124,676         124,676            
OTHER PERSONNEL SUPPORT.............         175,832         169,832         175,832         172,832            
OTHER SERVICE SUPPORT...............         568,225         568,225         571,225         571,225            
ARMY CLAIMS ACTIVITIES..............         173,290         173,290         173,290         173,290            
REAL ESTATE MANAGEMENT..............          86,930          86,930          86,930          86,930            
BASE SUPPORT........................         735,466         759,566         752,816         735,466            
PENTAGON RENOVATION TRANSFER........  ..............  ..............         -44,130         -44,130            
SUPPORT OF OTHER NATIONS3550                                                                                    
INTERNATIONAL MILITARY HEADQUARTERS.         252,778         252,778         252,778         252,778            
MISC SUPPORT OF OTHER NATIONS.......          29,446          29,446          29,446          29,446            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......       5,100,934       5,097,034       5,071,504       5,054,904            
                                                     ===========================================================
CLASSIFIED PROGRAMS UNDISTRIBUTED...  ..............           3,589          -1,800           4,089            
CIVILIAN PERSONNEL UNDERSTRENGTH....  ..............         -65,000         -67,000         -67,000            
FAMILY HOUSING SURVEY & DEFICIT                                                                                 
 REDUCTION PROGRAM..................  ..............  ..............           3,500           3,500            
GENERAL REDUCTION, NATIONAL DEFENSE                                                                             
 STOCKPILE FUND.....................         -50,000         -50,000         -50,000         -50,000            
REAL PROPERTY MAINTENANCE...........  ..............         350,000  ..............         167,000            
FOREIGN CURRENCY FLUCTUATION........  ..............         173,300  ..............          59,300            
EDCARS/DSREDS.......................  ..............           2,000  ..............           2,000            
PRINTING EFFICIENCIES...............  ..............          -3,000          -3,000          -3,000            
INSPECTOR GENERAL CONSOLIDATION.....  ..............         -12,500  ..............         -12,500            
REDUCED AUDITS......................  ..............         -10,000         -10,000         -10,000            
TRANSPORTATION IMPROVEMENTS.........  ..............         -26,200         -26,200         -26,200            
ADMINISTRATIVE TRAVEL SAVINGS.......  ..............  ..............         -17,500         -28,500            
BARRACKS RENOVATION INITIATIVES.....  ..............  ..............         100,000  ..............            
AAFES 2ND DESTINATION TRANSPORTATION  ..............         -17,500         -17,500         -17,500            
PROVIDE COMFORT/ENHANCED SOUTHERN                                                                               
 WATCH..............................  ..............          87,300  ..............          87,300            
SUPPLY MANAGEMENT REFORMS...........  ..............          -8,500  ..............          -8,500            
CIVILIAN PAY........................  ..............  ..............        -233,000        -116,000            
OPERATIONAL SUPPORT AIRLIFT.........  ..............          -1,694  ..............  ..............            
                                                     ===========================================================
      TOTAL, OPERATION AND80                                                                                    
       MAINTENANCE, ARMY............      18,134,736      18,998,131      17,947,229      18,321,965            
TRANSFER............................        (50,000)        (50,000)        (50,000)        (50,000)            
                                                     -----------------------------------------------------------
      TOTAL FUNDING AVAILABLE.......    (18,184,736)    (19,048,131)    (17,997,229)    (18,371,965)            
----------------------------------------------------------------------------------------------------------------




                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

       Budget Activity 1: Operating Forces:
  500 Communications/Electronics Maintenance....................39,000 
  500 Other Depot Maintenance...................................66,000 
  500 Depot Maintenance Logistics Tail.........................(15,730)
  600 NTC Interim Airhead........................................2,000 
  600 Base Operations Support...................................28,000 
       Budget Activity 2: Mobilization:
  1100 Prepositioning Ships.....................................(5,000)
  1100 Prepositioned Materiel, S.W. Asia........................16,000 
  1100 Prepositioned Materiel, Korea............................19,000 
       Budget Activity 3: Training and Recruiting:
  1800 TNET......................................................4,000 
  1800 Chemical/Biological Defense Training.....................20,000 
  1800 Simulation Enhancements..................................21,000 
  2150 Recruiting and Advertising................................5,000 
       Budget Activity 4: Administration and Servicewide 
     Activities:
  2650 Security Programs (Arms Control).........................(6,000)
  2800 Acquisition Reform......................................(12,000)
  2800 Depot Maintenance Logistics Tail.........................15,750 
  3050 Waste Water Treatment Planning..............................350 
  3200 Personnel Management Efficiencies........................(3,000)
  3250 Conservation and Ecosystem Management.....................3,000 
  3500 Pentagon Renovation Transfer............................(44,130)
       Other Adjustments:
  3810 Civilian Underexecution.................................(67,000)
  3830 Family Housing Survey/Deficit Reduction Program...........3,500 
  3880 Foreign Currency.........................................59,300 
  3970 Inspector General Consolidation.........................(12,500)
  3982 Administrative Travel Savings/Executive Transport.......(28,500)
  4000 Provide Comfort/Enhanced Southern Watch..................87,300 
  4010 Supply Management Reform.................................(8,500)
  4040 Civilian Personnel Pay.................................(116,000)


                  conventional ammunition maintenance

       The conferees direct that of the funds provided for 
     conventional ammunition care and maintenance, the Army shall 
     expend not less than $300,853,000 for this purpose.
     
[[Page H 9470]]



                            national presto

       The conferees direct that not less than $15,000,000 be made 
     available in the ``Operation and Maintenance, Army'' account 
     only for the remediation of environmental contamination at 
     the National Presto Industries, Inc. site in Eau Claire, 
     Wisconsin. These funds are to be made available only for the 
     implementation and execution of the 1988 agreement between 
     the Department of the Army and National Presto Industries, 
     Inc., within sixty days of the enactment of this Act and 
     without being made subject to any studies, reports or other 
     pre-conditions that would in any way delay or obstruct the 
     obligation and disbursal of the funds. The conferees are 
     satisfied that sufficient studies of this matter already have 
     been done.


                   life sciences equipment laboratory

       The conferees direct that the Army shall make available 
     $500,000 to the Life Sciences Equipment Laboratory at Kelly 
     AFB, Texas, for work in support of the Joint Task Force--Full 
     Accounting.


                   fort wainwright emergency repairs

       The conferees agree to provide $8,000,000 of available 
     funds, for emergency repairs for the Fort Wainwright Central 
     Heat and Power Plant.


               contractor-operated parts stores (copars)

       The conferees are concerned by the issues raised in a 
     recent GAO study of the COPARS program questioning the 
     methodology used by certain military commanders to justify 
     the use of alternative approaches. The conferees direct the 
     services to suspend all efforts directed toward the 
     elimination of COPARS unless and until economic analyses are 
     approved that clearly show other alternatives to be more 
     cost-effective. Such economic analyses must compare like 
     items of cost (including labor and overhead costs of any 
     COPARS alternative) and must fully address the concerns about 
     earlier analyses cited in the GAO report. To ensure the 
     fairness and objectivity of any such analysis, the conferees 
     direct the Secretary to designate a single point of contact 
     within the Office of the Secretary of Defense for approval of 
     study methodology and any final recommendations.

                    Operation and Maintenance, Navy

       The conference agreement on items addressed by either the 
     House of the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
Operation and maintenance, Navy.....                                                                            
Budget Activity 1: Operating forces.                                                                            
Air operations......................                                                                            
Mission and other flight operations.       1,788,301       1,788,301       1,788,301       1,796,301            
Fleet air training..................         627,871         627,871         642,166         642,166            
Intermediate maintenance............          68,070          68,070          68,070          68,070            
Air operations and safety support...          59,060          59,060          59,060          59,060            
Air depot maintenance...............         489,443         539,443         489,443         514,443            
Aircraft depot operations support...          28,232          28,232          28,232          28,232            
Base support........................       1,205,651       1,233,151       1,217,651       1,205,651            
Ship operations.....................                                                                            
Mission and other ship operations...       1,885,234       1,885,234       1,885,234       1,885,234            
Ship operational support and                                                                                    
 training...........................         462,396         462,396         462,396         462,396            
Intermediate maintenance............         401,812         401,812         401,812         401,812            
Ship depot maintenance..............       2,261,190       2,331,190       2,411,190       2,411,190            
Ship depot operations support.......         758,320         758,320         758,320         758,320            
Base support........................       1,110,058       1,137,558       1,121,058       1,110,058            
Combat operations/support...........                                                                            
Combat communications...............         198,415         198,415         198,415         198,415            
Electronic warfare..................           7,396           7,396           7,396           7,396            
Space systems and surveillance......         153,881         153,881         153,881         153,881            
Warfare tactics.....................         138,256         138,256         138,256         138,256            
Operational meteorology and0                                                                                    
 oceanography.......................         198,719         198,719         198,719         198,719            
Combat support forces...............         339,888         339,888         339,888         339,888            
Equipment maintenance...............         145,820         145,820         145,820         145,820            
Depot operations support............           1,127           1,127           1,127           1,127            
Base support........................         398,298         398,298         398,298         398,298            
Weapons support.....................                                                                            
Cruise missile......................          96,656          96,656          96,656          96,656            
Fleet ballistic missile.............         788,463         788,463         788,463         788,463            
In-service weapons systems support..          25,945          25,945          25,945          25,945            
Weapons maintenance.................         401,879         401,879         401,879         401,879            
Base support........................         111,176         111,176         111,286         111,176            
DBOF support........................         695,100  ..............         695,100         595,100            
                                                     -----------------------------------------------------------
      Total, budget activity 1......      14,846,657      14,336,557      15,039,042      14,948,952            
                                                     ===========================================================
Budget activity 2: Mobilization.....                                                                            
Ready reserve and prepositioning                                                                                
 forces.............................                                                                            
Ship prepositioning and surge.......         511,034         511,034         511,034         511,034            
Activations/inactivations...........                                                                            
Aircraft activations/inactivations..           7,215           7,215           7,215           7,215            
Ship activations/inactivations......         472,386         472,386         472,386         472,386            
Mobilization preparedness...........                                                                            
Fleet hospital program..............          16,162          16,162          16,162          16,162            
Industrial readiness................           1,917           1,917           1,917           1,917            
Coast Guard support.................          21,514          21,514          21,514          21,514            
                                                     -----------------------------------------------------------
      Total, budget activity 2......       1,030,228       1,030,228       1,030,228       1,030,228            
                                                     ===========================================================
Budget activity 3: Training and                                                                                 
 recruiting.........................                                                                            
Accession training..................                                                                            
Officer acquisition.................          66,755          66,755          66,755          66,755            
Recruit training....................           4,667           4,667           4,667           4,667            
Reserve Officers Training Corps                                                                                 
 (ROTC).............................          64,836          64,836          64,836          64,836            
Base support........................         112,811         112,811         112,811         112,811            
Basic skills and advanced training..                                                                            
Specialized skill training..........         212,121         222,121         222,121         222,121            
Flight training.....................         273,004         273,004         273,004         273,004            
Professional development education..          61,214          61,214          61,214          61,214            
Training support....................         125,237         125,237         125,237         125,237            
Base support........................         415,830         415,830         419,980         415,830            
Recruiting, and other training and                                                                              
 education..........................                                                                            
Recruiting and advertising..........         122,820         128,820         127,820         127,820            
Off-duty and voluntary education....          54,970          54,970          54,970          54,970            
Civilian education and training.....          22,223          22,223          22,223          22,223            
Junior ROTC.........................          24,382          24,382          24,382          24,382            
Base support........................             822             822             822             822            
                                                     -----------------------------------------------------------
      Total, budget activity 3......       1,561,692       1,577,692       1,581,342       1,576,692            
                                                     ===========================================================
Budget activity 4: Admin &50                                                                                    
 servicewide activities.............                                                                            
Servicewide support.................                                                                            
Administration......................         605,287         605,287         605,287         605,287            
External relations..................          21,684          21,684          21,684          21,684            
Civilian manpower and person                                                                                    
 management.........................          63,166          59,166          59,166          61,166            
Military manpower and person                                                                                    
 management.........................         139,864         139,864         139,864         139,864            
Other personnel support.............         395,629         395,629         405,629         395,629            
Servicewide communications..........         261,463         261,463         288,463         288,463            
Base support........................         271,900         271,900         274,600         271,900            
Logistics operations and technical                                                                              
 support............................                                                                            
Servicewide transportation..........         147,132         147,132         147,132         147,132            
Planning, engineering and design....         249,620         249,620         249,620         249,620            
Acquisition and program management..         426,404         409,404         426,404         412,904            
Air systems support.................         302,011         302,011         302,011         302,011            

[[Page H 9471]]
                                                                                                                
Hull, mechanical and electrical                                                                                 
 support............................          60,022          60,022          60,022          60,022            
Combat/weapons systems..............          41,632          51,632          41,632          51,632            
Space and electronic warfare systems          68,111          68,111          68,111          68,111            
Base support........................         158,334         158,334         158,334         158,334            
Pentagon renovation transfer........  ..............  ..............         -33,330         -33,330            
Security programs...................                                                                            
Security Programs...................         556,805         556,805         549,805         549,805            
Base support........................          10,674          10,674          10,674          10,674            
Support of other nations............                                                                            
International headquarters and                                                                                  
 agencies...........................           7,395           7,395           7,395           7,395            
                                                     -----------------------------------------------------------
      Total, budget activity 4......       3,787,133       3,784,733       3,784,189       3,768,303            
                                                     ===========================================================
Classified programs undistributed...  ..............           1,000           5,000           1,150            
Civilian pay........................  ..............  ..............         -12,800  ..............            
NSIPS...............................  ..............           9,000  ..............           9,000            
General reduction, national defense                                                                             
 stockpile fund.....................         -50,000         -50,000         -50,000         -50,000            
Real property maintenance...........  ..............         150,000  ..............         155,000            
Foreign currency fluctuation........  ..............          31,900  ..............           5,000            
Barracks renovation initiative......  ..............  ..............         100,000  ..............            
Administrative travel savings.......  ..............  ..............         -17,500         -28,500            
Printing efficiencies...............  ..............          -4,000          -4,000          -4,000            
Inspector General consolidation.....  ..............         -20,000  ..............         -20,000            
Reduced audits......................  ..............         -10,000         -10,000         -10,000            
Transportation improvements.........  ..............          -7,200          -7,200          -7,200            
Bulk fuel requirements reduction....  ..............  ..............        -200,000        -100,000            
Nexcom 2nd destination  9460                                                                                    
 transportation.....................  ..............          -7,500  ..............          -7,500            
Civilian understrength..............  ..............          -5,000         -33,000         -17,000            
Provide comfort/enhanced southern                                                                               
 watch..............................  ..............          75,300  ..............          75,300            
Tomahawk missile recertification....  ..............          -9,000  ..............          -9,000            
Supply management reforms...........  ..............         -37,000  ..............         -37,000            
                                                     ===========================================================
      Total, operation and80                                                                                    
       maintenance, Navy............      21,175,710      20,846,710      21,195,301      21,279,425            
          Transfer..................        (50,000)        (50,000)        (50,000)        (50,000)            
      Total funding available.......    (21,225,710)    (20,896,710)    (21,245,301)    (21,329,425)            
----------------------------------------------------------------------------------------------------------------




                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  4300 P-3 Force Structure........................................8,000
  4350 Pacific Missile Range Facility............................14,295
  4500 Aircraft Depot Maintenance................................25,000
  4900 Ship Maintenance Availabilities..........................150,000
  5850 Other Weapon Systems Maintenance...........................5,000
  6000 DBOF Support...........................................(100,000)
Budget Activity 3: Training and Recruiting:
  7600 Recruiting and Advertising.................................5,000
Budget Activity 4: Administration and Servicewide Activities:
  8150 Personnel Management Efficiencies........................(2,000)
  8300 Challenge Athena..........................................27,000
  8650 Acquisition Reform......................................(17,000)
  8650 Reverse Osmosis Desalinators...............................3,500
  8800 AN-UYQ-70.................................................10,000
  8950 Pentagon Renovation Transfer............................(33,330)
  9050 Security Programs (Arms Control).........................(7,000)
Other Adjustments:
  9350 Foreign Currency...........................................5,000
  9372 Administrative Travel Savings/Executive Transport.......(28,500)
  9410 Inspector General Consolidation.........................(20,000)
  9435 Bulk Fuel Reduction....................................(100,000)
  9460 NexCom Second Destination Transportation.................(7,500)
  9470 Civilian Underexecution.................................(17,000)
  9480 Provide Comfort/Enhanced Southern Watch...................75,300
  9485 Tomahawk Missile Recertification.........................(9,000)
  9490 Supply Management Reforms...............................(37,000)


                      reverse osmosis desalinators

       The conferees agree to provide $3,500,000 under this 
     heading for the purchase and repair and maintenance of 
     reverse osmosis desalinators. Of this amount, $500,000 is 
     directed to the repair and maintenance of existing Navy 
     desalinators. $1,000,000 is directed for the procurement of 
     new desalinators for the Navy, and the remaining $2,000,000 
     is directed to Navy procurement of desalinators in support of 
     the Air Force.


                asia-pacific center for security studies

       In their respective bills, the House and Senate have each 
     approved the budget request for the Asia-Pacific Center for 
     Security Studies. The conferees note that the Center was 
     dedicated by the Secretary of Defense in August of this year 
     and it continues to receive strong support from the civilian 
     and military leadership of the Defense Department and other 
     nations. The conferees want to express their support for 
     fully funding the requirements of the Center in 1996 and the 
     future.


                               css hunley

       The House recedes from its report language regarding the 
     CSS Hunley.

                Operation and Maintenance, Marine Corps

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, MARINE                                                                               
 CORPS                                                                                                          
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
EXPEDITIONARY FORCES    9750                                                                                    
OPERATIONAL FORCES..................         334,133         344,133         334,133         344,133            
FIELD LOGISTICS.....................         158,299         158,299         158,299         158,299            
DEPOT MAINTENANCE...................         148,574         173,574         148,574         158,574            
BASE SUPPORT........................         903,013         953,013         922,043         945,013            
USMC PREPOSITIONING    10050                                                                                    
MARITIME PREPOSITIONING.............          77,416          77,416          96,416          77,416            
NORWAY PREPOSITIONING...............           8,019           8,019           4,019           5,919            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......       1,629,454       1,714,454       1,663,484       1,689,354            
                                                     ===========================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
ACCESSION TRAINING     10350                                                                                    
RECRUIT TRAINING....................           7,343           7,343           7,343           7,343            
OFFICER ACQUISITION.................             268             268             268             268            
BASE SUPPORT........................          66,554          66,554          67,219          66,554            
BASIC SKILLS AND ADVANCED TRAINING                                                                              
SPECIALIZED SKILLS TRAINING.........          25,057          35,057          35,057          35,057            
FLIGHT TRAINING.....................             165             165             165             165            
PROFESSIONAL DEVELOPMENT EDUCATION..           5,792           5,792           5,792           5,792            
TRAINING SUPPORT....................          74,964          74,964          74,964          74,964            
BASE SUPPORT........................          69,791          69,791          75,481          69,791            
RECRUITING AND OTHER TRAINING                                                                                   
 EDUCATION                                                                                                      
RECRUITING AND ADVERTISING..........          61,037          66,037          65,037          65,037            
OFF-DUTY AND VOLUNTARY EDUCATION....          11,055          11,055          11,055          11,O55            
JUNIOR ROTC.........................           7,588           7,588           7,588           7,588            
BASE SUPPORT........................          13,496          13,496          13,626          13,496            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3......         343,110         358,110         363,595         357,110            
                                                     ===========================================================
 
[[Page H 9472]]
                                                                                                                
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
SERVICEWIDE SUPPORT    11350                                                                                    
LOGISTICS SUPPORT...................          95,596          95,596          95,596          95,596            
SPECIAL SUPPORT.....................         131,023         139,823         131,023         131,023            
SERVICEWIDE TRANSPORTATION..........          31,931          31,931          31,931          31,931            
ADMINISTRATION......................          28,523          28,523          29,523          28,523            
BASE SUPPORT........................          10,085          10,085          10,185          10,085            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......         297,158         305,958         298,258         297,158            
                                                     ===========================================================
CLASSIFIED PROGRAMS.................  ..............  ..............           1,000             500            
REAL PROPERTY MAINTENANCE...........  ..............         100,000  ..............          60,000            
FOREIGN CURRENCY FLUCTUATION........  ..............           9,400  ..............           1,000            
INCLEMENT WEATHER GEAR..............  ..............          24,000  ..............  ..............            
TRANSPORTATION IMPROVEMENTS.........  ..............          -3,100          -3,100          -3,100            
BARRACKS RENOVATION INITIATIVES.....  ..............  ..............          22,000  ..............            
ADMINISTRATIVE TRAVEL SAVINGS.......  ..............  ..............          -3,500          -9,500            
                                                     ===========================================================
      TOTAL, O&M, MARINE CORPS......       2,269,722       2,508,822       2,341,737       2,392,522            
----------------------------------------------------------------------------------------------------------------




                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  9800    Operating Tempo........................................10,000
  9900    Depot maintenance......................................10,000
  9950    Initial Issue Equipment................................16,000
  9950    Personnel Support Equipment............................25,000
  9950    Training Range Environmental Assessment.................1,000
  10150    Norway Prepositioning................................(2,100)
Budget Activity 3: Training and Recruiting:
  11000    Recruiting and Advertising.............................4,000
Other Adjustments:
  11750    Foreign Currency.......................................1,000
  11817    Administrative Travel Savings/Executive Transport....(9,500)

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, AIR FORCE                                                                            
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
AIR OPERATIONS         12200                                                                                    
PRIMARY COMBAT FORCES...............       2,684,913       2,829,413       2,664,913       2,713,913            
PRIMARY COMBAT WEAPONS..............         409,701         389,701         389,701         389,701            
COMBAT ENHANCEMENT FORCES...........         257,139         257,139         257,139         257,139            
AIR OPERATIONS TRAINING.............         647,570         652,470         650,570         655,470            
COMBAT COMMUNICATIONS...............         854,442         854,442         846,542         846,542            
BASE SUPPORT........................       2,407,212       2,456,212       2,431,282       2,407,212            
COMBAT RELATED OPERATIONS600                                                                                    
GLOBAL C31 AND EARLY WARNING........         826,526         834,726         826,526         830,526            
NAVIGATION/WEATHER SUPPORT..........         128,374         128,374         128,374         128,374            
OTHER COMBAT OPS SUPPORT PROGRAMS...         210,481         210,481         210,481         210,481            
JCS EXERCISES.......................          41,793          41,793          41,793          41,793            
MANAGEMENT/OPERATIONAL HEADQUARTERS.         111,914         111,914         111,914         111,914            
TACTICAL INTEL AND OTHER SPECIAL                                                                                
 ACTIVITIES.........................         190,613         190,613         190,613         190,613            
SPACE OPERATIONS       12950                                                                                    
LAUNCH FACILITIES...................         254,590         254,590         254,590         254,590            
LAUNCH VEHICLES.....................         117,482         117,482         117,482         117,482            
SPACE CONTROL SYSTEMS...............         341,862         341,862         341,862         341,862            
SATELLITE SYSTEMS...................          49,132          49,132          43,832          49,132            
OTHER SPACE OPERATIONS..............          79,989          79,989          79,989          79,989            
BASE SUPPORT........................         402,589         402,589         406,589         402,589            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......      10,016,322      10,202,922       9,994,192      10,029,322            
                                                     ===========================================================
BUDGET ACTIVITY 2: MOBILIZATION                                                                                 
MOBILITY OPERATIONS    13400                                                                                    
AIRLIFT OPERATIONS..................       1,544,785       1,526,785       1,524,785       1,533,785            
AIRLIFT OPERATIONS C31..............          10,961          10,961          10,961          10,961            
MOBILIZATION PREPAREDNESS...........         160,110         160,110         160,110         160,110            
PAYMENTS TO TRANSPORTATION BUSINESS                                                                             
 AREA...............................         293,027         273,027         273,027         273,027            
BASE SUPPORT........................         514,490         514,490         519,590         514,490            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2......       2,523,373       2,485,373       2,488,473       2,492,373            
                                                     ===========================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
ACCESSION TRAINING     13800                                                                                    
OFFICER ACQUISITION.................          49,197          49,197          49,197          49,197            
RECRUIT TRAINING....................           3,881           3,881           3,881           3,881            
RESERVE OFFICER TRAINING CORPS                                                                                  
 (ROTC).............................          39,226          39,226          39,226          39,226            
BASE SUPPORT (ACADEMIES ONLY).......          91,666          91,666          91,666          91,666            
BASIC SKILLS AND ADVANCED TRAINING                                                                              
SPECIALIZED SKILL TRAINING..........         204,465         214,465         214,465         214,465            
FLIGHT TRAINING.....................         336,956         276,956         309,556         326,956            
PROFESSIONAL DEVELOPMENT EDUCATION..          78,688          78,688          78,688          78,688            
TRAINING SUPPORT....................          65,048          65,048          65,048          65,048            
BASE SUPPORT (OTHER TRAINING).......         545,451         545,451         550,851         545,451            
RECRUITING, AND OTHER TRAINING AND                                                                              
 EDUCATION                                                                                                      
RECRUITING AND ADVERTISING..........          44,827          50,827          49,827          49,827            
EXAMINING...........................           3,122           3,122           3,122           3,122            
OFF DUTY AND VOLUNTARY EDUCATION....          75,537          86,237          75,537          79,537            
CIVILIAN EDUCATION AND TRAINING.....          77,304          77,304          77,304          77,304            
JUNIOR ROTC.........................          25,392          25,392          25,392          25,392            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3......       1,640,760       1,607,460       1,633,760       1,649,760            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &50                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
LOGISTICS OPERATIONS   14900                                                                                    
LOGISTICS OPERATIONS................         790,324         754,324         794,224         754,324            
TECHNICAL SUPPORT ACTIVITIES........         365,535         365,535         365,535         365,535            
SERVICEWIDE TRANSPORTATION..........         234,836         234,836         234,836         234,836            
BASE SUPPORT........................         889,348         889,348         913,648         889,448            
SERVICEWIDE ACTIVITIES 15200                                                                                    
ADMINISTRATION......................         118,319         102,819         118,319         112,819            
SERVICEWIDE COMMUNICATIONS..........         318,240         318,240         318,240         318,240            
PERSONNEL PROGRAMS..................          84,766          79,066          84,766          81,766            
RESCUE AND RECOVERY SERVICES........          40,426          44,826          40,426          44,826            
SUBSISTENCE-IN-KIND.................          48,429          48,429          48,429          48,429            
ARMS CONTROL........................          34,645          34,645          34,645          34,645            
OTHER SERVICEWIDE ACTIVITIES........         396,155         396,155         396,155         396,155            
OTHER PERSONNEL SUPPORT.............          32,080          32,080          32,080          32,080            
CIVIL AIR PATROL CORPORATION........          14,704          15,804          16,704          16,704            
BASE SUPPORT........................         248,095         270,295         254,595         248,095            

[[Page H 9473]]
                                                                                                                
PENTAGON RENOVATION TRANSFER........  ..............  ..............         -32,730         -32,730            
SECURITY PROGRAMS      15800                                                                                    
SECURITY PROGRAMS...................         447,218         447,218         439,218         439,218            
SUPPORT TO OTHER NATIONS5900                                                                                    
INTERNATIONAL SUPPORT...............          13,022          13,022          13,022          13,022            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......       4,076,142       4,046,642       4,072,112       3,997,412            
                                                     ===========================================================
CLASSIFIED PROGRAMS UNDISTRIBUTED...  ..............           2,000          12,700          15,400            
SR-71...............................  ..............  ..............          30,000          30,000            
CIVILIAN PERSONNEL UNDERSTRENGTH....  ..............         -80,000         -30,000         -72,000            
INFORMATION TECHNOLOGY..............  ..............             100  ..............  ..............            
GENERAL REDUCTION, NATIONAL DEFENSE                                                                             
 STOCKPILE FUND.....................         -50,000         -50,000         -50,000         -50,000            
REAL PROPERTY MAINTENANCE...........  ..............         320,000  ..............         151,000            
FOREIGN CURRENCY FLUCTUATION........  ..............          20,600  ..............           7,200            
EDCARS/DSREDS.......................  ..............           2,000  ..............           2,000            
INSPECTOR GENERAL CONSOLIDATION.....  ..............         -11,000  ..............         -11,000            
REDUCED AUDITS......................  ..............         -13,000         -13,000         -13,000            
PRINTING EFFICIENCIES...............  ..............          -3,000          -3,000          -3,000            
ADMINISTRATIVE TRAVEL SAVINGS.......  ..............  ..............         -17,500         -28,500            
BARRACKS RENOVATION INITIATIVES.....  ..............  ..............         100,000  ..............            
TRANSPORTATION IMPROVEMENTS.........  ..............         -15,300         -15,300         -15,300            
PROVIDE COMFORT/ENHANCED SOUTHERN                                                                               
 WATCH..............................  ..............         393,200  ..............         393,200            
SUPPLY MANAGEMENT REFORMS...........  ..............         -13,600  ..............         -13,600            
OPERATIONAL SUPPORT AIRLIFT.........  ..............         -20,604  ..............  ..............            
                                                     -----------------------------------------------------------
      TOTAL, O&M, AIR FORCE.........      18,206,597      18,873,793      18,202,437      18,561,267            
                                                     ===========================================================
TRANSFER............................        (50,000)        (50,000)        (50,000)        (50,000)            
                                                     -----------------                                          
      TOTAL FUNDING AVAILABLE.......    (18,256,597)    (18,923,793)    (18,252,437)    (18,611,267)            
----------------------------------------------------------------------------------------------------------------




                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  12250 Air Guard Transfer......................................(6,200)
  12250 Excess Funded Carryover................................(27,000)
  12250 Mission Readiness Training..............................25,200 
  12250 Precision Weapons........................................1,000 
  12250 Spares Funding..........................................36,000 
  12400 Caribbean Basin Radars...................................3,000 
  12400 Simulation Enhancements..................................4,900 
  12450 Combat Communications Transfer to R&D...................(7,900)
  12650 Rivet Joint..............................................4,000 
Budget Activity 2: Mobilization:
  13450 KC-135s..................................................2,000 
  13450 Excess Funded Carryover................................(13,000)
Budget Activity 3: Training and Recruiting:
  14200 Undergraduate Pilot Training...........................(10,000)
  14500 Recruiting and Advertising...............................5,000 
  14600 Tuition Assistance.......................................4,000 
Budget Activity 4: Administration and Servicewide Activities:
  14950 Acquisition Reform.....................................(40,000)
  14950 B-1 Maintenance..........................................4,000 
  15100 CAMS/REMIS.................................................100 
  15250 STRATCOM.................................................2,500 
  15250 Administrative Efficiencies.............................(8,000)
  15350 Personnel Management Efficiencies.......................(3,000)
  15400 Rescue and Recovery Programs.............................4,400 
  15650 Civil Air Patrol.........................................2,000 
  15750 Pentagon Renovation Transfer...........................(32,730)
  15850 Security Programs (Arms Control)........................(8,000)
Other Adjustments:
  16015 SR-71...................................................30,000 
  16040 Civilian Underexecution................................(72,000)
  16110 Foreign Currency.........................................7,200 
  16170 Inspector General Consolidation........................(11,000)
  16192 Administrative Travel Savings/Executive Transport......(28,500)
  16230 Provide Comfort/Enhanced Southern Watch................393,200 
  16235 Supply Management Reforms..............................(13,600)


                         Counterdrug Operations

       The conferees direct that no more than $8,000,000 of 
     available funds are to be used to relocate USSOUTHCOM radars. 
     These funds are intended to augment counterdrug O&M funding 
     and are not to be counted against the fiscal year 1996 
     appropriated level for counterdrug O&M activities.


                    alternative power demonstration

       The conferees agree that the report on the demonstration of 
     alternative power sources for Burnt Mountain should be 
     provided to the Committees on Appropriations by September 30, 
     1997.

                Operation and Maintenance, Defense Wide

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, DEFENSE-                                                                             
 WIDE                                                                                                           
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
JOINT CHIEFS OF STAFF...............         475,977         537,977         480,977         480,977            
SPECIAL OPERATIONS COMMAND..........       1,018,476       1,016,476       1,018,476       1,019,476            
PROVIDE COMFORT/ENHANCED SOUTHERN                                                                               
 WATCH..............................  ..............  ..............  ..............          10,100            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......       1,494,453       1,566,553       1,499,453       1,510,553            
                                                     ===========================================================
BUDGET ACTIVITY 2: MOBILIZATION                                                                                 
DEFENSE LOGISTICS AGENCY............          26,000          26,000          26,000          26,000            
WASHINGTON HEADQUARTERS SERVICES....          45,438  ..............  ..............  ..............            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2......          71,438          26,000          26,000          26,000            
                                                     ===========================================================
BUDGET ACTIVITY 3: TRAINING AND                                                                                 
 RECRUITING                                                                                                     
DEFENSE ACQUISITION UNIVERSITY......         112,991          93,991         112,991         101,491            
DEFENSE BUSINESS MANAGEMENT0                                                                                    
 UNIVERSITY.........................          19,669           3,969          19,669          19,669            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3......         132,660          97,960         132,660         121,160            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
AMERICAN FORCES INFORMATION SERVICE.          90,892          90,892          90,892          90,892            
CORPORATE INFORMATION MANAGEMENT....         127,967         127,967         127,967         127,967            
CLASSIFIED AND INTELLIGENCE.........       3,350,037       3,340,369       3,334,237       3,334,469            
DEFENSE CIVILIAN PERSONNEL00                                                                                    
 MANAGEMENT SERVICE.................          45,631          40,831          45,631          43,231            
DEFENSE CONTRACT AUDIT AGENCY.......         342,926         332,126         342,926         332,126            
DEFENSE INVESTIGATIVE SERVICE.......         201,582         197,682         201,582         199,582            
DEFENSE LOGISTICS AGENCY............       1,055,996       1,036,696       1,072,996       1,069,696            
PROCUREMENT TECHNICAL ASSISTANCE                                                                                
 PROGRAM............................  ..............  ..............          12,000  ..............            
DEFENSE LEGAL SERVICES AGENCY.......           6,540           6,540           6,540           6,540            
DEFENSE MAPPING AGENCY..............         734,438         695,338         734,438         714,538            
DEFENSE NUCLEAR AGENCY..............          96,105          96,105          96,105          96,105            
DEFENSE POW/MIA OFFICE 17650                  13,486          13,486          13,486          13,486            
FEDERAL ENERGY MANAGEMENT PROGRAM...         234,682         120,000          50,000          50,000            
DEPARTMENT OF DEFENSE DEPENDENTS                                                                                
 EDUCATION                                 1,292,684       1,168,825       1,293,184       1,306,729            
DEFENSE SUPPORT ACTIVITIES..........          82,562          82,562          82,562          82,562            
DEFENSE TECHNOLOGY SECURITY0                                                                                    
 ADMINISTRATION.....................          10,858          10,858          10,858          10,858            
JOINT CHIEFS OF STAFF...............          97,873          97,873          97,873         97,873             

[[Page H 9474]]
                                                                                                                
OFFICE OF ECONOMIC ADJUSTMENT.......          59,078          60,578          59,078          60,578            
OFFICE OF THE SECRETARY OF DEFENSE..         349,291         267,761         324,622         323,922            
ON SITE INSPECTION AGENCY100                  97,987          97,987          85,987          85,987            
WASHINGTON HEADQUARTERS SERVICES....         308,421         298,821         308,421         298,821            
PENTAGON RENOVATION TRANSFER........  ..............  ..............         -50,830         108,020            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......       8,599,036       8,183,297       8,340,555       8,453,982            
                                                     ===========================================================
BUDGET ACTIVITY 5: INTEREST0                                                                                    
BUDGET ACTIVITY 6: CAPITAL LEASE                                                                                
DEFENSE BUSINESS MANAGEMENT0                                                                                    
 UNIVERSITY.........................          69,195  ..............  ..............  ..............            
CIVILIAN PAY........................  ..............  ..............         -74,400  ..............            
CIVILIAN PERSONNEL UNDERSTRENGTH      ..............         -60,000         -57,700         -45,000            
INFORMATION TECHNOLOGY..............  ..............         112,000  ..............          12,000            
JOINT MARKET RESEARCH PROGRAM.......  ..............           2,000  ..............           2,000            
FOREIGN CURRENCY FLUCTUATION........  ..............          24,200  ..............           6,400            
IMPACT AID..........................  ..............          35,000  ..............          35,000            
TRANSPORTATION IMPROVEMENTS.........  ..............         -18,200  ..............  ..............            
TRAVEL RE-ENGINEERING...............  ..............         -10,000         -22,500         -33,500            
GENERAL REDUCTION...................  ..............  ..............         -40,000  ..............            
TRAVEL REDUCTION....................  ..............         -50,000  ..............  ..............            
COAST GUARD TRANSFER................  ..............  ..............  ..............         300,000            
                                                     -----------------------------------------------------------
      TOTAL, O&M, DEFENSE-WIDE......      10,366,782       9,908,810       9,804,068      10,388,595            
----------------------------------------------------------------------------------------------------------------




                    ADJUSTMENTS TO BUDGET ACTIVITIES

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  16500  Northern Edge............................................5,000
  16550  Seal Delivery Vehicle Team One...........................1,000
  16560  Provide Comfort/Enhanced Southern Watch.................10,100
Budget Activity 3: Training and Recruiting:
  16950  DAU/Defense Systems Management College................(11,500)
Budget Activity 4: Administration and Servicewide Activities:
  17300  Defense Civilian Personnel Management Service..........(2,400)
  17350  Defense Contract Audit Agency.........................(10,800)
  17400  Defense Investigative Service..........................(2,000)
  17450  DLA Acquisition Reform................................(10,700)
  17450  DLA Security Locks......................................15,000
  17450  DLA Homeless Initiative................................(2,600)
  17450  DLA Procurement Technical Assistance....................12,000
  17550  DMA, Minor Equipment..................................(13,800)
  17550  DMA, Internet Access.....................................(600)
  17550  DMA, Productivity Improvements.........................(4,500)
  17550  DMA, Personnel Regionalization.........................(1,000)
  17700  Federal Energy Management Program....................(184,682)
  17750  DoDDS Administrative Overhead.........................(10,000)
  17750  New Parent Support Program..............................25,600
  17750  Relocation Assistance Program..........................(2,055)
  17750  DoDDS Mathematics Teachers Leadership Project..............500
  17950  Office of Economic Adjustment............................1,500
  18000  OSD Mobility Enhancements...............................41,000
  18000  OSD, DFAS Efficiencies................................(20,000)
  18000  OSD Management Efficiencies...........................(24,669)
  18000  OSD, Acquisition Reform..................................(400)
  18000  OSD, Staffing Reductions...............................(6,400)
  18000  OSD, Acquisition Program Growth........................(4,200)
  18000  OSD, Consulting Services Growth.......................(20,700)
  18000  OSD, Joint Recruiting and Advertising Program...........10,000
  18100  OSIA (Arms Control)...................................(12,000)
  18150  WHS, Inventory Growth..................................(9,600)
  18155  Pentagon Renovation Transfer...........................108,020
Other Adjustments:
  18530  Civilian Underexecution...............................(45,000)
  18550  Information Technology..................................12,000
  18570  Joint Market Research Program............................2,000
  18590  Foreign Currency.........................................6,400
  18610  Impact Aid..............................................35,000
  18650  Travel Efficiencies/Executive Transport...............(33,500)
  18710  Coast Guard Defense Missions...........................300,000


                joint analysis model improvement program

       The conferees agree that, of the funds provided, 
     $11,200,000 shall be made available for the Joint Analysis 
     Model Improvement Program.


                          pentagon renovation

       The conferees direct that the Pentagon renovation funding 
     be consolidated in the Operation and Maintenance, Defense-
     wide account. The conferees have provided a total of 
     $108,020,000 for the Pentagon renovation.


                      troops to cops and teachers

       The Senate included language providing $52,000,000 to 
     continue the Troops to Cops and Troops to Teachers programs. 
     The conferees have deleted this language. The conferees 
     expect the Defense Department to consider using existing 
     resources within this appropriation, if available, to 
     continue these programs.


    transition assistance program and relocation assistance program

       The conferees agree to provide $49,300,000 for the 
     Transition Assistance Program and $18,504,000 for the 
     Relocation Assistance Program for fiscal year 1996. However, 
     the conferees are concerned that these programs have become 
     permanent entities, even though they were initiated to 
     provide service members and their families with separation 
     and relocation assistance resulting from the drawdown. At the 
     end of fiscal year 1996, the Department of Defense will have 
     largely completed its downsizing effort. Accordingly, the 
     conferees direct the Department to report to the Defense 
     Committees no later than March 1, 1996, on phasing out these 
     programs, and what, if any residual level of continued 
     resourcing is required.


                OPERATION AND MAINTENANCE, ARMY RESERVE

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY                                                                                 
 RESERVE                                                                                                        
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
MISSION OPERATIONS     19000                                                                                    
BASE SUPPORT........................         284,036         284,036         284,036         284,036            
DEPOT MAINTENANCE...................          57,377          57,377          57,377          57,377            
RECRUITING AND RETENTION............          43,963          43,963          43,963          43,963            
TRAINING OPERATIONS.................         573,414         606,414         573,414         606,414            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......         958,790         991,790         958,790         991,790            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
INFORMATION MANAGEMENT..............          17,492          17,492          17,492          17,492            
PUBLIC AFFAIRS......................             423             423             423             423            
PERSONNEL ADMINISTRATION............          61,941          61,941          61,941          61,941            
STAFF MANAGEMENT....................          29,945          29,945          29,945          29,945            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......         109,801         109,801         109,801         109,801            
                                                     ===========================================================
REAL PROPERTY MAINTENANCE...........  ..............          17,000  ..............          17,000            
MILITARY/CIVILIAN TECHNICIAN                                                                                    
 RESTORATION........................  ..............           5,000  ..............           5,000            
RESERVE COMPONENT AUTOMATION SYSTEM.  ..............          -4,400  ..............          -4,400            

[[Page H 9475]]
                                                                                                                
TRANSITION BENEFITS.................  ..............  ..............            -279  ..............            
                                                     -----------------------------------------------------------
      TOTAL, O&M, ARMY RESERVE......       1,068,591       1,119,191       1,068,312       1,119,191            
----------------------------------------------------------------------------------------------------------------




                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  19200 Training operations......................................33,000
Other adjustments:
  19650 Real property maintenance................................17,000
  19660 Military/civilian technician restoration..................5,000
  19680 Reserve component automation system......................-4,400
                                                             __________

    Total adjustments...........................................+50,600

                Operation and Maintenance, Navy Reserve

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
Operation and maintenance, Navy                                                                                 
 Reserve                                                                                                        
Budget activity 1: Operating forces                                                                             
Reserve air operations 20100                                                                                    
Mission and other flight operations.         291,673         291,673         291,673         291,673            
P-3 squadron operations.............  ..............  ..............  ..............           6,000            
Intermediate maintenance............          17,813          17,813          17,813          17,813            
Air operation and safety support....           1,915           1,915           1,915           1,915            
Aircraft depot maintenance..........          49,338          59,338          49,338          54,338            
Aircraft depot OPS support..........             356             356             356             356            
Base support........................         130,854         130,854         130,854         130,854            
Reserve Ship operations20450                                                                                    
Mission and other ship operations...          60,895          60,895          60,895          60,895            
Ship operational support and                                                                                    
 training...........................             658             658             658             658            
Intermediate maintenance............          23,990          23,990          23,990          23,990            
Ship depot maintenance..............          70,930          70,930          70,930          70,930            
Ship depot operations support.......           1,467           1,467           1,467           1,467            
Reserve combat operations support                                                                               
Combat communications...............             817             817             817             817            
Combat support forces...............          25,207          25,207          25,207          25,207            
Base support........................          52,410          52,410          52,410          52,410            
Reserve weapons support20950                                                                                    
Weapons maintenance.................           5,641           5,641           5,641           5,641            
                                                     -----------------------------------------------------------
      Total, Budget Activity 1......         733,964         743,964         733,964         744,964            
                                                     ===========================================================
Budget Activity 4: Admin &00                                                                                    
 servicewide activities                                                                                         
Administration and servicewide                                                                                  
 activities                                                                                                     
Administration......................           8,029           8,029           8,029           8,029            
Civilian manpower and personnel                                                                                 
 management.........................           3,222           3,222           3,222           3,222            
Military manpower and personnel                                                                                 
 management.........................          31,209          31,209          31,209          31,209            
Servicewide communications..........          21,247          21,247          21,247          21,247            
Base support........................          25,723          25,723          25,723          25,723            
Combat/Weapons systems..............           2,648           2,648           2,648           2,648            
                                                     -----------------------------------------------------------
      Total, Budget Activity 4......          92,078          92,078          92,078          92,078            
                                                     ===========================================================
Real property maintenance...........  ..............          12,000  ..............          20,000            
NSIPS...............................  ..............           9,000  ..............           2,500            
Operational support airlift.........  ..............         -15,477  ..............  ..............            
                                                     ===========================================================
      Total, O&M, Navy Reserve......         826,042         841,565         826,042         859,542            
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  20175 - P-3 Squadrons...........................................6,000
  20300 Aircraft Depot Maintenance................................5,000
Other Adjustments:
  21580 Real Property Maintenance................................20,000
  21590 NSIPS.....................................................2,500
                                                             __________

    Total Adjustments...........................................+33,500

             Operation and Maintenance Marine Corps Reserve

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, MARINE                                                                               
 CORPS RESERVE                                                                                                  
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
MISSION FORCES         22050                                                                                    
TRAINING............................          13,617          14,517          13,617          14,517            
OPERATING FORCES....................          21,237          27,637          21,237          25,637            
BASE SUPPORT........................          18,059          18,059          18,059          18,059            
DEPOT MAINTENANCE...................           2,322           3,722           2,322           3,322            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......          55,235          63,935          55,235          61,535            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
RECRUITING AND ADVERTISING..........           7,609           7,609           7,609           7,609            
SPECIAL SUPPORT.....................           9,064           9,064           9,064           9,064            
SERVICEWIDE TRANSPORTATION..........           5,381           5,381           5,381           5,381            
ADMINISTRATION......................           6,274           6,274           6,274           6,274            
BASE SUPPORT........................           6,720          11,020           6,720           8,920            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......          35,048          39,348          35,048          37,248            
                                                     ===========================================================
REAL PROPERTY MAINTENANCE...........  ..............           1,500  ..............           1,500            
OPERATIONAL SUPPORT AIRLIFT.........  ..............          -2,704  ..............  ..............            
                                                     ===========================================================
      TOTAL, O&M, MARINE CORPS                                                                                  
       RESERVE......................          90,283         102,079          90,283         100,283            
----------------------------------------------------------------------------------------------------------------


[[Page H 9476]]



                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  22100 Training....................................................900
  22150 Operating Forces..........................................4,400
  22250 Depot Maintenance.........................................1,000
Budget Activity 4: Admin & Servicewide Activities:
  22700 Base Support..............................................2,200
Other Adjustments:
  22770 Real Property Maintenance.................................1,500
                                                             __________

    Total Adjustments...........................................+10,000

              Operation and Maintenance, Air Force Reserve

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, AIR FORCE                                                                            
 RESERVE                                                                                                        
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
AIR OPERATIONS         23250                                                                                    
AIRCRAFT OPERATIONS    23300               1,103,593       1,115,433       1,103,593       1,115,433            
MISSION SUPPORT OPERATIONS..........          35,073          35,073          35,073          35,073            
BASE SUPPORT........................         282,248         282,248         282,248         282,248            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......       1,420,914       1,432,754       1,420,914       1,432,754            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
ADMINISTRATION......................          33,107          33,107          33,107          33,107            
MILITARY MANPOWER AND PERSONNEL                                                                                 
 MANAGEMENT.........................          17,746          17,746          17,746          17,746            
RECRUITING AND ADVERTISING..........           7,743           7,743           7,743           7,743            
OTHER PERSONNEL SUPPORT.............           5,063           6,063           6,063           6,063            
AUDIOVISUAL.........................             374             374             374             374            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......          65,033          65,033          65,033          65,033            
                                                     ===========================================================
REAL PROPERTY MAINTENANCE...........            ----          13,500            ----          13,500            
MILITARY/CIVILIAN TECHNICIAN                                                                                    
 RESTORATION........................            ----           8,000            ----           8,000            
                                                     -----------------------------------------------------------
      TOTAL, O&M, AIR FORCE RESERVE.       1,485,947       1,519,287       1,485,947       1,519,287            
----------------------------------------------------------------------------------------------------------------

                    adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  23300 Aircraft Operations......................................11,840
Other Adjustments:
  24030 Real Property Maintenance................................13,500
  24040 Military/Civilian Technician Restoration..................8,000
                                                             __________

    Total Adjustments...........................................+33,340

             Operation and Maintenance, Army National Guard

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY                                                                                 
 NATIONAL GUARD                                                                                                 
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
MISSION OPERATIONS     24500                                                                                    
TRAINING OPERATIONS.................       1,720,134       1,760,134       1,720,134       1,760,134            
RECRUITING AND RETENTION............          20,110          20,110          20,110          20,110            
MEDICAL SUPPORT.....................          19,109          19,109          19,109          19,109            
DEPOT MAINTENANCE...................         100,687         100,687         100,687         100,687            
BASE SUPPORT........................         250,378         250,378         252,978         252,978            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......       2,110,418       2,150,418       2,113,018       2,153,018            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &50                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
ADMINISTRATION AND SERVICEWIDE                                                                                  
 ACTIVITIES                                                                                                     
INFORMATION MANAGEMENT..............          59,496          29,396          59,496          44,596            
PUBLIC AFFAIRS......................           1,461           1,461           1,461           1,461            
PERSONNEL ADMINISTRATION............          89,665          89,665          89,665          89,665            
STAFF MANAGEMENT....................          43,068          43,068          43,068          43,068            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......         193,690         163,590         193,690         178,790            
                                                     ===========================================================
REAL PROPERTY MAINTENANCE...........  ..............          21,000         100,000         100,000            
MILITARY/CIVILIAN TECHNICIAN                                                                                    
 RESTORATION........................  ..............           9,000  ..............           9,000            
TRANSITION BENEFITS.................  ..............  ..............         -45,000  ..............            
OPERATIONAL SUPPORT AIRLIFT.........  ..............          -9,521  ..............  ..............            
                                                     -----------------------------------------------------------
      TOTAL, O&M, ARMY NATIONAL                                                                                 
       GUARD........................       2,304,108       2,334,487       2,361,708       2,440,808            
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  24550 Training Operations......................................40,000
  24750 Base Support..............................................2,600
Budget Activity 4: Admin & Servicewide Activities:
  24950 Information Management..................................-14,900
Other Adjustments:
  25180 Real Property Maintenance...............................100,000
  25190 Military/Civilian Technician Restoration..................9,000
                                                       ________________

    Total Adjustments..........................................+136,700

             Operation and Maintenance, Air National Guard

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

----------------------------------------------------------------------------------------------------------------
                                                          Budget           House          Senate      Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, AIR                                                                                  
 NATIONAL GUARD                                                                                                 
BUDGET ACTIVITY 1: OPERATING FORCES                                                                             
AIR OPERATIONS         25650                                                                                    
AIR CRAFT OPERATIONS................       1,977,786       1,979,286       2,005,186       2,006,686            
MISSION SUPPORT OPERATIONS..........         346,687         346,687         246,687         346,687            
BASE SUPPORT........................         361,224         361,224         361,224         361,224            
DEPOT MAINTENANCE...................          18,410          19,910          18,410          19,910            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1......       2,704,107       2,707,107       2,731,507       2,734,507            
                                                     ===========================================================
BUDGET ACTIVITY 4: ADMIN &00                                                                                    
 SERVICEWIDE ACTIVITIES                                                                                         
SERVICEWIDE ACTIVITIES 26050                                                                                    

[[Page H 9477]]
                                                                                                                
ADMINISTRATION......................           3,127           3,127           3,127           3,127            
RECRUITING AND ADVERTISING..........           4,987           4,987           4,987           4,987            
                                                     -----------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4......           8,114           8,114           8,114           8,114            
                                                     ===========================================================
REAL PROPERTY MAINTENANCE...........  ..............          15,000  ..............          15,000            
MILITARY/CIVILIAN TECHNICIAN                                                                                    
 RESTORATION........................  ..............           7,000  ..............          18,500            
TRANSITION BENEFITS.................  ..............  ..............         -15,600  ..............            
                                                     ===========================================================
      TOTAL, O&M, AIR NATIONAL GUARD       2,712,221       2,737,221       2,724,021       2,776,121            
----------------------------------------------------------------------------------------------------------------




                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  25700 Aircraft Operations......................................28,900
  25850 Depot Maintenance.........................................1,500
Other Adjustments:
  26230 Real Property Maintenance................................15,000
  26240 Military/Civilian Technician Restoration.................18,500
                                                             __________

    Total Adjustments...........................................+63,900

                   Environmental Restoration, Defense

       The conferees agree to provide $1,422,200,000 for 
     Environmental Restoration, Defense.


                       environmental remediation

       The conferees support the ``relative risk'' approach to 
     environmental remediation and expect the Department to make 
     sure the most hazardous sites receive primary attention. 
     While the conferees believe that all bases--those closing and 
     those remaining open--must meet environmental standards the 
     Department must not let ongoing environmental clean-up 
     efforts preclude reuse opportunities at closing military 
     installations. In these cases, the Department should work 
     aggressively and innovatively with State and local officials 
     to lower clean-up costs and to be sure environmental issues 
     do not make it harder for affected communities to recover 
     from losing a military installation.


                            summer olympics

       The conference agreement recommends an appropriation of 
     $15,000,000 as proposed by the House and Senate for support 
     of the 1996 Games of the XXVI Olympiad.


             overseas humanitarian, disaster, and civic aid

       The conferees agree to provide $50,000,000 for these 
     functions of which $20,000,000 is specifically earmarked for 
     training and activities related to the clearing of landmines 
     for humanitarian purposes.
       The conferees also agree to the House recommendation to 
     consolidate all funds for humanitarian, disaster, and civil 
     aid into a single account.


                  former soviet union threat reduction

       The conferees agree to provide $300,000,000 for the Former 
     Soviet Union Threat Reduction program, a reduction of 
     $71,000,000 from the budget request. Funding provided at the 
     subprogram level appears in the following table:

------------------------------------------------------------------------
             Program                Budget   House    Senate  Conference
------------------------------------------------------------------------
Nuclear Arms Reduction...........   $167.5   $167.5   $167.5     $167.5 
Defense Enterprise Fund..........       40        0        0          0 
Chemical Weapons Destruction.....      104        0      104         79 
Fissile Material.................       29        6       29         29 
      Other......................     30.5     26.5     24.5       24.5 
                                  --------------------------------------
      Total......................      371      200      325        300 
------------------------------------------------------------------------


       Although no new funds are provided for the Defense 
     Enterprise Fund, the conferees agree that up to $200,000,000 
     of previously appropriated funds may be expended to 
     administer the continued operation of the Defense Enterprise 
     Fund program currently underway. The conferees have included 
     two general provisions regarding the Former Soviet Union 
     Threat Reduction program involving the limitation on 
     expenditures of funds for the Chemical Weapons Destruction 
     program and a prohibition on providing funds for housing for 
     current or former Soviet military officers.

                               TITLE III

                              Procurement

       The conference agreement is as follows:

------------------------------------------------------------------------
                         Budget       House        Senate     Conference
------------------------------------------------------------------------
       SUMMARY                                                          
                                                                        
ARMY:                                                                   
    AIRCRAFT........    1,223,067    1,468,067    1,498,623    1,558,805
    MISSILES........      676,430      842,830      846,555      865,555
    WEAPONS, TRACKED                                                    
     COMBAT VEHICLES    1,298,986    1,616,964    1,396,264    1,652,745
    AMMUNITION......      795,015    1,019,315    1,090,891    1,110,685
    OTHER...........    2,256,601    2,570,125    2,760,002    2,769,443
                     ---------------------------------------------------
      TOTAL, ARMY...    6,250,099    7,517,301    7,592,335    7,957,233
                     ===================================================
NAVY:                                                                   
    AIRCRAFT........    3,886,488    4,310,703    4,897,393    4,589,394
    WEAPONS.........    1,787,121    1,736,211    1,771,421    1,669,827
    AMMUNITION......  ...........      483,779  ...........      430,053
    SHIPS...........    5,051,935    5,577,958    7,062,001    6,643,958
    OTHER...........    2,396,080    2,480,670    2,394,260    2,503,581
    MARINE CORPS....      474,116      480,852      597,139      458,947
                     ---------------------------------------------------
      TOTAL, NAVY...   13,595,740   15,070,173   16,722,214   16,295,760
                     ===================================================
AIR FORCE:                                                              
    AIRCRAFT........    6,183,886    7,140,703    7,163,258    7,367,983
    MISSILES........    3,647,711    3,223,265    3,550,192    2,943,931
    AMMUNITION......  ...........      321,328  ...........      338,800
    OTHER...........    6,804,696    6,508,425    6,540,951    6,284,230
                     ---------------------------------------------------
      TOTAL, AIR                                                        
       FORCE........   16,636,293   17,193,721   17,254,401   16,934,944
                     ===================================================
DEFENSE-WIDE........    2,179,917    2,187,085    2,114,824    2,124,379
NATIONAL GUARD AND                                                      
 RESERVE EQUIPMENT..  ...........      908,125      777,000      777,000
                     ---------------------------------------------------
      TOTAL                                                             
       PROCUREMENT..   38,662,049   42,876,405   44,460,774   44,089,316
------------------------------------------------------------------------

            Joint Forces Command, Control and Communications

       The conferees understand the importance of interoperability 
     for joint forces in war and peacetime and have provided an 
     additional $103,300,000 to correct critical deficiencies. 
     However, through testimony from the Vice Chairman, Joint 
     Chiefs of Staff, Service Chiefs and Commanders in Chief of 
     the various Unified and Specified Commands, the conferees 
     believe that deficiencies in command, control and 
     communications still exist. The conferees encourage the 
     Secretary of Defense to provide adequate resources for joint 
     interoperability initiatives and will entertain reprogramming 
     action that provides additional funds for this purpose.


                   ammunition and missile quantities

       The conferees agree the quantities of missiles and 
     ammunition noted in the following tables are to be considered 
     a floor and direct the Department to buy as many units as 
     appropriated funds will allow. In no case shall the 
     Department buy less than the quantities noted in the table 
     unless the congressional defense committees are informed as 
     to why these levels are unachievable.


                       aircraft procurement, army

       The conference agreement is as follows:
       
[[Page H 9478]]


----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate         Quantity       Conference  
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, ARMY                                                                                      
    C-XX (MEDIUM RANGE) AIRCRAFT  ..............  ..............          23,000               4          23,000
    UH-60 BLACKHAWK (MYP).......         334,880         334,880         302,962              60         334,880
    UH-60 BLACKHAWK (MYP) (AP-                                                                                  
     CY)........................  ..............          75,000          70,000  ..............          70,000
    GUARDRAIL MODS (TIARA)......          48,969          57,969          48,969  ..............          57,969
    AH-64 MODS..................          53,596          53,596          50,596  ..............          53,596
    LONGBOW.....................         341,968         341,968         418,168  ..............         418,168
    KIOWA WARRIOR...............          71,334         211,334         196,334              20         211,334
    SPARES AND REPAIR PARTS.....          49,177          49,177          33,351  ..............          34,615
    AIRCRAFT SURVIVABILITY                                                                                      
     EQUIPMENT..................          22,304          43,304          54,404  ..............          54,404
----------------------------------------------------------------------------------------------------------------

                          AH-64 Modifications

       The conferees agree to provide the budget request of 
     $53,596,000 for AH-64 modifications. Of this amount, 
     $3,000,000 shall be used to procure additional embedded 
     global positioning/inertial navigation systems for Apache 
     helicopters.


                                 uh-60

       The conferees agree with the Senate language regarding 
     enhanced protection systems. However, in view of the 
     conference agreement to fund a multi-year procurement program 
     for the UH-60, the conferees believe that the House-
     recommended report on helicopter production strategies is not 
     required.


                      High capacity air ambulance

       The conferees are deeply concerned by the failure of the 
     Army to address the need for a High Capacity Air Ambulance 
     (HCAA). The Army Surgeon General has stated that this is one 
     of his highest priorities. The conferees direct the Army to 
     seek an appropriate solution and report the results of the 
     planned joint exercise with the Air Force and National Guard 
     by February 15, 1996. The report should include the 
     feasibility of utilizing C-130s for the HCAA fixed wing 
     requirement, the role of the Army and Air National Guard in 
     this mission, and requirements for the UH-60L and or UH-60Q 
     helicopters for the National Guard in order to accomplish the 
     rotary wing portion of this mission. The conferees direct 
     that, of the funds appropriated for UH-60Ls, the first 9 
     aircraft to be procured within the Aircraft Procurement, Army 
     appropriation will be assigned to the National Guard.

                       Missile Procurement, Army

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
MISSILE PROCUREMENT, ARMY                                                                                       
    HELLFIRE SYS SUMMARY........         209,460         249,460         246,685             750         246,685
    JAVELIN (AAWS-M) SYSTEM                                                                                     
     SUMMARY....................         171,428         210,428         206,928           1,010         206,928
    TOW 2 SYSTEM SUMMARY........           7,378           7,378          27,378           1,000          12,378
    MLRS LAUNCHER SYSTEMS.......          48,158          64,558          64,558              29          98,558
    STINGER MODS................          10,095          20,095          10,095              --          10,095
----------------------------------------------------------------------------------------------------------------

                             tow 2 missiles

       The conferees agree to provide $12,378,000 for TOW 2 
     missiles, an increase of $5,000,000 to modify the capstan 
     block of existing TOW 2 missiles.


                multiple launch rocket system launchers

       The conferees agree to provide $98,588,000 for multiple 
     launch rocket system launchers, an increase of $50,400,000 
     only for the refurbishment of existing launchers which are to 
     be transferred to the national guard.

        Procurement of Weapons and Tracked Combat Vehicles, Army

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
Procurement of W&TCV, Army                                                                                      
    Armored Gun System (AGS)....         141,551         141,551         141,551              26         147,551
    M1 Abrams Tank Series (MYP).  ..............  ..............          15,000  ..............           3,000
    Carrier, MOD................          48,067          49,667          48,067  ..............          49,667
    BFVS Series (MOD)...........          74,336          74,336          88,336  ..............          88,336
    Howitzer, MED SP FT 155MM                                                                                   
     M109A6 (MOD)...............         220,239         320,039         220,239  ..............         302,039
    M1 Abrams Tank (MOD)........          77,076          46,754          51,754  ..............           51754
    Abrams Upgrade Program......         340,911         340,911         340,911  ..............         450,911
    Abrams Upgrade Program (MCR)  ..............         110,000  ..............  ..............  ..............
    Production Base Support (TCV-                                                                               
     WTCV)......................          11,619          11,619           4,019  ..............           5,500
    FAASV.......................  ..............          44,000  ..............  ..............          44,000
    Machine Gun, 5.56MM (SAW)...  ..............          28,500          12,500  ..............          28,500
    Grenade Launcher, Auto 40MM,                                                                                
     MK19-3.....................  ..............          20,000          33,900  ..............          33,900
    M16 Rifle...................  ..............          13,500           6,500  ..............          13,500
    Medium Machine Gun..........  ..............           6,500           5,900  ..............           6,500
----------------------------------------------------------------------------------------------------------------

                             Test Equipment

       The conferees agree to provide $15,000,000 for Direct 
     Support Electronic System Test Sets (DSESTS). The funding is 
     appropriated as follows:

                                                             Conference
Armored Gun System...........................................$6,000,000
Abrams Tank Series............................................3,000,000
Combat Vehicle Improvement Program (RDT&E,A)..................6,000,000

                    Procurement of Ammunition, Army

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, ARMY                                                                                 
    CTG, 7.62MM, ALL TYPES......           2,573           2,573          12,573  ..............           7,573
    CTG, 25MM, ALL TYPES........          35,139          45,139          70,139  ..............          70,139
    SPECIAL PURPOSE AMMUNITION..  ..............  ..............  ..............  ..............           6,000
    CTG MORTAR 60MM 1/10 PRAC                                                                                   
     M766.......................  ..............           3,600  ..............  ..............           3,600
    CTG MORTAR 81MM PRAC 1/10                                                                                   
     RANGE M880.................  ..............           6,600  ..............  ..............           6,600
    CTG MORTAR 120MM SMOKE XM929                                                                                
     W/MO FUZE..................          47,704          69,704          67,704              44          67,704
    CTG ARTY 75MM BLANK M337A1..           3,749           3,749  ..............             102           1,500
    PROJ ARTY 155MM SMOKE WP                                                                                    
     M825.......................          10,607          10,607           5,132  ..............           5,132
    PROJ ARTY 155MM SADARM XM898          24,284          24,284          42,284              77          42,284
    MINE AT/AP M87 (VOLCANO)....  ..............  ..............          30,000  ..............          30,000
    DEMOLITION MUNITIONS, ALL                                                                                   
     TYPES......................          26,269          26,269          32,269  ..............          32,269
    PROVISION OF INDUSTRIAL                                                                                     
     FACILITIES.................          41,906          66,906          41,906  ..............          44,000
    LAYAWAY OF INDUSTRIAL                                                                                       
     FACILITIES.................          13,663          23,663          13,663  ..............          18,663
    ARMAMENT RETOOLING &                                                                                        
     MANUFACTURING SUPPORT                                                                                      
     (ARMS).....................  ..............  ..............          45,000  ..............          45,000
    CONVENTIONAL AMMO                                                                                           
     DEMILITARIZATION...........          96,280         106,280         100,280  ..............         100,280
----------------------------------------------------------------------------------------------------------------

                       special purpose ammunition

       The conferees agree to provide $6,000,000 for special 
     purpose ammunition. The increase is to be allocated as 
     follows:

                                                             Conference
7.62MM (XM993)...............................................$2,000,000
5.56MM (XM995)................................................2,000,000
.50 caliber (MK211)...........................................2,000,000


                         ctg 120 mm heat m830a1

       The conferees direct the Army to procure 120MM HEAT M830A1 
     tank rounds with the $15,000,000 appropriated in fiscal year 
     1994 for AT-4 modifications.
     
[[Page H 9479]]


                        Other Procurement, Army

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, ARMY                                                                                         
    HI MOB MULTI-PURP WHLD VEH                                                                                  
     (HMMMV) (MYP)..............          57,690         109,690         129,690             546         129,690
    FAMILY OF HEAVY TACTICAL                                                                                    
     VEHICLES (MYP).............             596         100,596         125,596  ..............         125,596
    MEDIUM TRUCK EXTENDED SVC                                                                                   
     PGM (ESP) (PREVS)..........  ..............  ..............          30,000  ..............          20,000
    NAVSTAR GLOBAL POSITIONING                                                                                  
     SYSTEM.....................          32,502          50,002          32,502          15,025          50,002
    STD THEATER CMD & CONTROL                                                                                   
     SYS (STACCS)...............          14,526          14,526          17,826  ..............          14,526
    SINCGARS FAMILY.............         310,620         310,620         364,720  ..............         364,720
    EAC COMMUNICATIONS..........           5,896           5,896          45,896  ..............          45,896
    INFORMATION SYSTEMS.........          64,142          40,142          64,142  ..............          52,142
    DEFENSE MESSAGE SYSTEM (DMS)           7,963           7,963          10,763  ..............           7,963
    LOCAL AREA NETWORK (LAN)....          61,547          41,547          61,547  ..............          51,547
    GENERAL DEFENSE INTELL PROG                                                                                 
     (GDIP).....................          29,409          24,188          29,409  ..............          24,188
    ALL SOURCE ANALYSIS SYS                                                                                     
     (ASAS) (TIARA).............           9,886           9,886          16,266  ..............           9,886
    IEW--GND BASE COMMON SENSORS                                                                                
     (TIARA)....................          46,937          46,937  ..............  ..............          46,937
    JOINT STARS (ARMY) (TIARA)..          82,984          99,484          82,984  ..............          82,984
    NIGHT VISION DEVICES........          77,132          77,132          85,132  ..............          85,132
    ADV FIELD ARTILLERY TACT SYS                                                                                
     (AFATDS)...................          30,897          29,397          30,897             221          29,397
    FAAD C2.....................          32,942          40,342          32,942               5          40,342
    MANEUVER CONTROL SYSTEM                                                                                     
     (MCS)......................          13,808          13,808          18,808             152          18,808
    AUTOMATED DATA PROCESSING                                                                                   
     EQUIP......................         132,751         130,351         132,751  ..............         138,751
    RESERVE COMPONENT AUTOMATION                                                                                
     SYS (RCAS).................          83,174         113,174          83,174  ..............          83,174
    INTEGRATED FAMILY OF TEST                                                                                   
     EQUIP (IFTE)...............          26,449          46,449          26,449  ..............          44,949
    LAB PETROLEUM MODULAR BASE..           2,786           2,786  ..............               1           2,786
    ITEMS LESS THAN $2.0M (POL).           5,537           5,537           3,237  ..............           4,700
    COMBAT SUPPORT MEDICAL......          14,310           8,810          14,310  ..............          14,310
    PUSHER TUG, SMALL...........           3,576           3,576  ..............               1           3,576
    ITEMS LESS THAN $2.0M (FLOAT/                                                                               
     RAIL)......................           3,602           2,602           3,602  ..............           2,602
    GENERATORS AND ASSOCIATED                                                                                   
     EQUIP......................          13,761           8,761          48,761  ..............          13,761
    TRAINING DEVICES, NONSYSTEM.          71,561          71,561          76,061  ..............          76,061
    SIMNET/CLOSE COMBAT TACTICAL                                                                                
     TRAINER....................          30,655  ..............          30,655  ..............          30,655
    MODIFICATION OF IN-SVC                                                                                      
     EQUIPMENT (OPA-3)..........          21,911          14,411          21,911  ..............          14,411
----------------------------------------------------------------------------------------------------------------

                   navstar global positioning system

       The conferees agree to provide $32,502,000 for the Navstar 
     Global Positioning System, an increase of $17,500,000 to 
     complete the installation of global positioning systems on 
     all Army active and reserve aircraft. The conferees direct 
     that priority installation be given to the 1/207th Aviation 
     Regiment because of their unique search and rescue mission in 
     remote areas.


                         jstars ground stations

       The conferees do not agree on the transfer language for 
     JSTARS ground stations from the Army to the Marine Corps. The 
     conferees have provided funds in the Procurement, Marine 
     Corps appropriation for JSTARS ground stations.

                       Aircraft Procurement Navy

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, NAVY                                                                                      
    EA-6B/REMFG (ELECTRONIC                                                                                     
     WARFARE) PROWLER...........  ..............  ..............         140,000  ..............  ..............
    AV-8B (V/STOL) HARRIER......         148,163         308,163         229,414               8         229,414
    F/A-18C/D (FIGHTER) HORNET..         609,904         583,204       1,096,869              18         822,669
    F/A-18C/D (FIGHTER) HORNET                                                                                  
     (AP-CY)....................  ..............  ..............          86,459  ..............  ..............
    AH-1W (HELICOPTER) SEA COBRA          10,385          75,000          10,385               6          75,000
    T-39N.......................  ..............  ..............          45,000              17          45,000
    EA-6 SERIES.................  ..............  ..............          65,000  ..............         165,000
    F-14 SERIES.................          59,047          59,047          76,147  ..............         107,522
    H-1 SERIES..................          54,530          66,530          71,530  ..............          71,530
    P-3 SERIES..................         178,557         217,857         182,557  ..............         217.357
    TRAINER A/C SERIES..........             727          45,727             727  ..............             727
    COMMON ECM EQUIPMENT........           4,234           4,234          34,234  ..............          24,234
    SPARES AND REPAIR PARTS.....         784,782         784,782         822,912  ..............         784,782
    COMMON GROUND EQUIPMENT.....         367,017         397,017         367,017  ..............         367,017
    AVIATION MULTIYEAR FUND.....  ..............         100,000  ..............  ..............  ..............
----------------------------------------------------------------------------------------------------------------

                            f/a-18c/d hornet

       The conferees agree to provide $822,669,000 for the 
     acquisition of eighteen F/A-18C/D aircraft. The conferees do 
     not agree with the House reduction of funds for procurement 
     of ALR-67(V)3 radar warning receivers.


                                 t-39n

       The conferees agree to provide $45,000,000 to purchase 17 
     T-39N aircraft. The conferees also agree with the House's 
     direction for the Navy to transition to a competitive 
     purchase of services contract for logistical support for the 
     T-39N fleet after aircraft acquisition. However, the 
     conferees direct that this transition should occur at the 
     conclusion of the current T-39N contract, which is due to 
     expire at the end of fiscal year 1998.


                                 ea-6b

       The conferees agree to provide $165,000,000 for 
     modifications and improvements to the EA-6B electronic 
     warfare aircraft. The funds are approved for the following 
     purposes: $100,000,000 to modify 20 more aircraft to enable 
     the Navy to support Air Force requirements; $40,000,000 to 
     buy 60 shipsets of Band 9/10 jammer transmitters; and 
     $25,000,000 to buy 30 USQ-113 radio countermeasures sets. The 
     conferees further agree to modify the Senate's direction to 
     use prior year funds for the acquisition of Band 9/10 
     jammers, which is now not necessary because they have 
     provided sufficient fiscal year 1996 funds to procure these 
     systems. The conferees urge the Navy to buy these systems 
     expeditiously.


                           p-3 modifications

       The conferees agree with the Senate's direction regarding 
     acquisition of the AN/AAQ-22 thermal imaging system and 
     incorporation of that system into the P-3 Antisurface Warfare 
     Improvement Program (AIP).


                          common ecm equipment

       The conferees support the use of the LAU-138/A launch rail 
     chaff dispenser system on Navy tactical aircraft as a cost 
     effective means for improving aircrew/aircraft survivability. 
     The conferees direct that these systems be managed as fleet 
     armament equipment pool assets to afford maximum flexibility 
     and cost savings, and that all remaining prior year funds 
     appropriated for these systems be expeditiously applied 
     toward this purpose.


                        aviation multiyear fund

       The conferees do not agree to provide funds for an Aviation 
     Multiyear Fund as proposed by the House. The Navy is 
     therefore not required to solicit multiyear bids from E-2C, 
     AV-8B, and T-45 manufacturers, although it may do so if 
     circumstances warrant.

                       Weapons Procurement, Navy

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
WEAPONS PROCUREMENT, NAVY                                                                                       
    TOMAHAWK....................         161,727         201,727         120,027             164         120,027
    AMRAAM......................          81,691          77,491          77,691             115          77,491
    HARPOON.....................          46,368          86,368          46,368              75          86,368
    DRONES AND DECOYS...........  ..............  ..............           7,000  ..............  ..............
    TOMAHAWK MODS...............             684          60,684             684             220          50,000

[[Page H 9480]]
                                                                                                                
    WEAPONS INDUSTRIAL                                                                                          
     FACILITIES.................          13,094          13,094          43,094  ..............          43,094
    VERTICAL LAUNCHED ASROC                                                                                     
     (VLA)......................  ..............          14,000  ..............  ..............          10,000
    GENERAL PURPOSE BOMBS.......          46,142  ..............          39,142  ..............  ..............
    2.75 INCH ROCKETS...........          14,806  ..............          14,806  ..............  ..............
    MACHINE GUN AMMUNITION......          11,469  ..............          11,469  ..............  ..............
    PRACTICE BOMBS..............          11,195  ..............          11,195  ..............  ..............
    CARTRIDGES & CART ACTUATED                                                                                  
     DEVICES....................          17,974  ..............          17,974  ..............  ..............
    AIRCRAFT ESCAPE ROCKETS.....          10,586  ..............          10,586  ..............  ..............
    AIR EXPENDABLE                                                                                              
     COUNTERMEASURES............          22,828  ..............          22,828  ..............  ..............
    MARINE LOCATION MARKERS.....             871  ..............             871  ..............  ..............
    JATOS.......................           4,940  ..............           4,940  ..............  ..............
    5 INCH/54 GUN AMMUNITION....          21,501  ..............          21,501  ..............  ..............
    CIWS AMMUNITION.............              93  ..............              93  ..............  ..............
    76MM GUN AMMUNITION.........           6,432  ..............           6,432  ..............  ..............
    OTHER SHIP GUN AMMUNITION...           5,148  ..............           5,148  ..............  ..............
    SMALL ARMS & LANDING PARTY                                                                                  
     AMMO.......................           5,814  ..............           5,814  ..............  ..............
    PYROTECHNIC AND DEMOLITION..          11,253  ..............          11,253  ..............  ..............
    MINE NEUTRALIZATION DEVICES.             787  ..............             787  ..............  ..............
    SHIP EXPENDABLE                                                                                             
     COUNTERMEASURES............           8,871  ..............           8,871  ..............  ..............
----------------------------------------------------------------------------------------------------------------



            Procurement of Ammunition, Navy and Marine Corps

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, NAVY                                                                                 
 & MARINE CORPS                                                                                                 
    GENERAL PURPOSE BOMBS.......  ..............          46,142  ..............  ..............          43,000
    2.75 INCH ROCKETS...........  ..............          14,806  ..............  ..............          14,806
    MACHINE GUN AMMUNITION......  ..............          11,469  ..............  ..............          11,469
    PRACTICE BOMBS..............  ..............          26,195  ..............  ..............          19,000
    CARTRIDGES & CART ACTUATED                                                                                  
     DEVICES....................  ..............          17,974  ..............  ..............          17,974
    AIRCRAFT ESCAPE ROCKETS.....  ..............          10,586  ..............  ..............          10,586
    AIR EXPENDABLE                                                                                              
     COUNTERMEASURES............  ..............          24,828  ..............  ..............          24,828
    MARINE LOCATION MARKERS.....  ..............             871  ..............  ..............             871
    JATOS.......................  ..............           4,940  ..............  ..............           4,940
    5 INCH/54 GUN AMMUNITION....  ..............          51,701  ..............  ..............          36,000
    CIWS AMMUNITION.............  ..............              93  ..............  ..............              93
    76 MM GUN AMMUNITION........  ..............           6,432  ..............  ..............           6,432
    OTHER SHIP GUN AMMUNITION...  ..............          10,148  ..............  ..............          10,148
    SMALL ARMS & LANDING PARTY                                                                                  
     AMMO.......................  ..............           5,814  ..............  ..............           5,814
    PYROTECHNIC AND DEMOLITION..  ..............          11,253  ..............  ..............          11,253
    MINE NEUTRALIZATION DEVICES.  ..............             787  ..............  ..............             787
    SHIP EXPENDABLE                                                                                             
     COUNTERMEASURES............  ..............           8,871  ..............  ..............           8,871
    5.56 MM, ALL TYPES..........  ..............          28,487  ..............  ..............          28,487
    7.62 MM, ALL TYPES..........  ..............          12,082  ..............  ..............          12,082
    .50 CALIBER.................  ..............          66,688  ..............  ..............          45,000
    40 MM, ALL TYPES............  ..............           3,939  ..............  ..............           3,939
    60 MM HE M888...............  ..............           9,855  ..............  ..............           9,855
    81 MM HE....................  ..............           4,724  ..............  ..............           4,724
    81 MM, HE, M889A1...........  ..............  ..............  ..............  ..............          10,000
    81 MM SMOKE SCREEN..........  ..............           5,445  ..............  ..............           5,445
    81 MM ILLUMINATION (XM816)..  ..............           6,700  ..............  ..............           6,700
    120 MM TPCSDS-T M865........  ..............           8,902  ..............  ..............           8,902
    120 MM TP-T M831............  ..............           3,314  ..............  ..............           3,314
    155 MM CHG. PROP. RED BAG...  ..............           32,00  ..............  ..............          16,000
    FUZE, ET, XM762.............  ..............          10,000  ..............  ..............          10,000
    CTG 25MM, ALL TYPES.........  ..............           6,724  ..............  ..............           6,724
    9 MM ALL TYPES..............  ..............           2,979  ..............  ..............           2,979
    ROCKETS, ALL TYPES..........  ..............           7,034  ..............  ..............           7,034
    AMMO MODERNIZATION..........  ..............           9,611  ..............  ..............           9,611
    GRENADES, ALL TYPES.........  ..............           1,174  ..............  ..............           1,174
    ITEMS LESS THAN $2 MIL......  ..............          11,211  ..............  ..............          11,211
----------------------------------------------------------------------------------------------------------------

                        5 inch/54 gun ammunition

       The conferees agree to provide $36,000,000, an increase of 
     $14,499,000 only for 5 inch/54 gun ammunition. Despite 
     Congressional direction to correct the requirements process 
     and provide adequate funding for fleet training ammunition, 
     the Navy has chosen once again to provide insufficient 
     funding. The conferees direct the Secretary of Navy to ensure 
     that adequate funding is provided in subsequent budget 
     requests for fleet training ammunition.


                   shipbuilding and conversion, navy

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                             Budget           House          Senate        Qty      Conference  
----------------------------------------------------------------------------------------------------------------
SHIPBUILDING & CONVERSION, NAVY........                                                                         
SSN-21.................................       1,507,477  ..............         700,000        1         700,000
NEW SSN (AP-CY) (NO. 2)................  ..............  ..............         100,000  .......         100,000
ENHANCED SSN CAPABILITY................  ..............       1,000,000  ..............  .......  ..............
DDG-51.................................       2,162,457       2,162,457       3,580,000        2       2,162,457
LHD-7 AMPHIBIOUS ASSAULT SHIP (MYP (AP-                                                                         
 CY)...................................  ..............  ..............       1,300,000  .......       1,300,000
LPD-17.................................  ..............         974,000  ..............        1         974,000
FAST PATROL CRAFT......................  ..............           9,500  ..............  .......           9,500
T-AGS 64...............................  ..............          70,000  ..............  .......          16,000
LSD-52 SELF DEFENSE....................  ..............  ..............  ..............  .......          20,000
OUTFITTING.............................         144,791         134,791         144,791  .......         134,791
POST DELIVERY..........................         174,991         164,991         174,991  .......         164,991
----------------------------------------------------------------------------------------------------------------

                                 ddg-51

       The conferees agree with the House recommendation of 
     $2,162,457,000 for the DDG-51 program, which will procure two 
     destroyers. The conferees further provide legislative 
     authority for the Secretary of the Navy to negotiate 
     contracts for two additional DDG-51 class destroyers, and to 
     award the contracts for those vessels on October 1, 1996. The 
     conferees believe this acquisition strategy will generate 
     increased economies of scale and stability for the Navy and 
     the shipbuilding industrial base.


                     LPD-17 RCS Engineering Support

       The conferees note that as a result of the Base Realignment 
     and Closure decisions, the Navy has reorganized and 
     consolidated its Radio Communications Systems (RCS) 
     engineering, production, testing, integration and training 
     support activities. In assigning RCS engineering support 
     workload for the LPD-17 class of ships, the conferees expect 
     that the Navy will assign such workload to the most 
     appropriate facility.


                                T-AGS-64

       The conferees agree to provide $16,000,000 for advance 
     procurement for a T-AGS-64 multi-purpose oceanographic survey 
     ship.


                                 LSD-52

       The conferees agree to provide $20,000,000 as recommended 
     by the House for one additional SSDS MK-1 unit which the 
     conferees

[[Page H 9481]]
      direct be installed on LSD-52 during its construction prior to 
     delivery of this vessel to the fleet.


                          SHIP COST ADJUSTMENT

       The conferees do not agree to the House proposal to modify 
     the ship cost adjustment process by eliminating specific 
     designations in the bill, providing new transfer authority, 
     and providing reprogramming limitations. The conferees also 
     do not agree to the House requirement to include ship cost 
     adjustments in the annual omnibus reprogramming process.
       Within the ship cost adjustment implemented in section 8091 
     of the Act, the conferees have allocated funds for potential 
     settlement of claims on the AOE class of ships. This action 
     is taken solely to facilitate the Navy's ability to implement 
     a settlement, should one be reached.

                        Other Procurement, Navy:

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, NAVY                                                                                         
    ELEC SUSPENDED GYRO                                                                                         
     NAVIGATOR..................           4,108  ..............           4,108  ..............  ..............
    OTHER NAVIGATION EQUIPMENT..          17,688          27,688          14,119  ..............          27,688
    MINESWEEPING EQUIPMENT......          12,985           6,985          12,985  ..............           6,985
    HM&E ITEMS UNDER $2 MILLION.          43,389          33,389          39,629  ..............          33,389
    FLEET MODERNIZATION PROGRAM.  ..............           3,000  ..............  ..............           3,000
    RADAR SUPPORT...............             466          14,466             466  ..............          14,466
    SURFACE ELECTRO-OPTICAL                                                                                     
     SYSTEM.....................           3,542           9,542           3,542  ..............           9,542
    SURFACE SONAR SUPPORT                                                                                       
     EQUIPMENT..................           9,349           9,349          19,609  ..............          19,609
    AN/SQQ-89 SURF ASW COMBAT                                                                                   
     SYSTEM.....................          30,297          30,297          25,297  ..............          25,297
    SSN ACOUSTICS...............          42,269          33,269          42,269  ..............          42,269
    SSTD........................          13,751          11,051          13,751  ..............          13,751
    C-3 COUNTERMEASURES.........           9,540          24,540           9,540  ..............          24,540
    NAVY TACTICAL DATA SYSTEM...             301          12,301             301  ..............          12,301
    ID SYSTEMS..................          10,202           9,702          10,202  ..............           9,702
    SHIPBOARD TACTICAL                                                                                          
     COMMUNICATIONS.............           6,635          12,935           6,635  ..............          12,935
    SATCOM SHIP TERMINALS.......          98,099          98,099         112,499  ..............         112,499
    SECURE DATA SYSTEM..........           8,636           8,636           6,037  ..............           6,037
    AN/SSQ-36 (BT)..............  ..............             200  ..............  ..............             200
    AN/SSQ-62 (DICASS)..........  ..............           4,090  ..............  ..............           4,090
    AN/SSQ-110 (EER)............  ..............          21,910  ..............  ..............          21,910
    WEAPONS RANGE SUPPORT                                                                                       
     EQUIPMENT..................          40,280          38,080          50,030  ..............          48,830
    LAMPS MK III SHIPBOARD                                                                                      
     EQUIPMENT..................          17,914          16,714          17,914  ..............          16,714
    DARP........................  ..............  ..............           4,500  ..............  ..............
    RAM GMLS....................          50,037          39,337          72,937  ..............          50,037
    SHIP SELF DEFENSE SYSTEM....          15,643          35,643          15,643  ..............          35,643
    SURFACE TOMAHAWK SUPPORT                                                                                    
     EQUIPMENT..................          71,293          71,293          51,293  ..............          61,293
    ANTI-SHIP MISSILE DECOY                                                                                     
     SYSTEM.....................          15,199           2,599          15,199  ..............           2,599
    FLEET MINE SUPPORT EQUIPMENT           4,452           4,452           6,152  ..............           6,152
    FORKLIFT TRUCKS.............           3,750           3,750           1,750  ..............           1,750
    COMPUTER ACQUISITION PROGRAM                                                                                
     (NSIPS)....................  ..............  ..............  ..............  ..............          13,000
    SAFETY AND SURVIVABILITY                                                                                    
     ITEMS......................  ..............          20,000  ..............  ..............          10,000
    SPARES AND REPAIR PARTS.....         210,213         210,213         170,713  ..............         190,213
----------------------------------------------------------------------------------------------------------------

                      HM&E Items Under $2,000,000

       The conferees agree to provide $33,389,000 for ``HM&E Items 
     Under $2,000,000'', a reduction of $10,000,000. This 
     decrease, which is applied against the Surface Ship Support 
     Equipment portion, includes a reduction of $3,760,000 against 
     the Gaseous Nitrogen Generator subproject.


                          fleet modernization

       The conferees agree to provide $3,000,000 for procurement 
     of propeller shaft composite fairwaters to be backfit on CG 
     47 class cruisers during overhaul.


                             radar support

       The conferees agree to provide $14,466,000 for the Radar 
     Support program, an increase of $14,000,000. The increase 
     includes $9,000,000 for the AN/BPS-16 submarine radar and 
     $5,500,000 for the AN/SPA-25G Radar Display program.


                    surface sonar windows and domes

       The conferees agree to provide $6,000,000 for procurement 
     of replacement sonar rubber domes and windows, provision of 
     safety-related field service repair and change-out of this 
     equipment, and product improvements to increase durability 
     and service life.


                    weapons range support equipment

       The conferees agree to provide $48,830,000, an increase of 
     $8,550,000, for Weapons Range Support Equipment program. The 
     net increase includes a decrease of $1,200,000 for the 
     Electronic Warfare Response Monitor subprogram and an 
     increase of $9,750,000 as proposed by the Senate.


                   surface tomahawk support equipment

       The conferees agree to provide $61,293,000 for the Surface 
     Tomahawk Support Equipment program, a reduction of 
     $10,000,000. The reduction is against the Afloat Planning 
     System (APS) subprogram. The conferees are concerned that the 
     Navy does not currently have an operational doctrine for the 
     tactical use of Tomahawk cruise missiles by ship commanders. 
     Furthermore, the conferees question the need to deploy APS on 
     all carriers in light of the Challenge Athena satellite 
     communications project.


                            an/sps-48e radar

       The conferees direct that the funds previously appropriated 
     for Pulse Doppler Mod Kits for AN/SPS-48E radars be released 
     to the Navy. The modification of the radar will significantly 
     improve its operational effectiveness when operating in 
     littoral waters and therefore will improve the entire surface 
     fleet's tactical situation awareness when it is incorporated 
     into the Cooperative Engagement Capability. Given the vital 
     link between these two programs, the conferees further direct 
     that management and execution of the upgrade to the AN/SPS-
     48E radar program be conducted by the Program Executive 
     Officer for Theater Air Defense.


                       procurement, marine corps

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                        Budget       House        Senate      Qty     Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT, MARINE CORPS:                                                                                      
    5.56 MM, ALL TYPES.............................       28,487  ...........       28,487  .......  ...........
    7.62 MM, ALL TYPES.............................        2,082  ...........       12,082  .......  ...........
    .50 CALIBER....................................        8,588  ...........       19,060  .......  ...........
    40 MM, ALL TYPES...............................        3,939  ...........        3,939  .......  ...........
    60 MM HE M888..................................        9,855  ...........        9,855  .......  ...........
    81 MM HE.......................................        4,724  ...........       11,724  .......  ...........
    81 MM, HE, M-889A1.............................  ...........  ...........       17,000  .......  ...........
    81 MM SMOKE SCREEN.............................        5,445  ...........        5,445  .......  ...........
    120 MM TPCSDS-T M865...........................        8,902  ...........        8,902  .......  ...........
    120 MM TP-T M831...............................        3,314  ...........        3,314  .......  ...........
    CTG 25 MM, ALL TYPES...........................        6,724  ...........        6,724  .......  ...........
    9 MM ALL TYPES.................................        2,979  ...........        2,979  .......  ...........
    GRENADES, ALL TYPES............................          474  ...........          474  .......  ...........
    ROCKETS, ALL TYPES.............................        7,034  ...........        7,034  .......  ...........
    AMMO MODERNIZATION.............................        9,611  ...........        9,611  .......  ...........
    ITEMS LESS THAN $2 MIL.........................        8,711  ...........       17,262  .......  ...........
    MODIFICATION KITS (TRKD VEH)...................        3,273       15,573       17,773  .......       15,573
    HAWK MOD.......................................        3,040        4,688        3,040  .......        3,040
    MANPACK RADIOS AND EQUIP.......................        9,735       12,735        9,735  .......       12,735
    MULTI-SERV ADF FIELD ART TACTICAL DATA SYS.....       12,140       23,140       23,140      188       12,140
    INTELLIGENCE SUPPORT EQUIPMENT.................        6,283       18,783        6,283  .......       35,283
    NIGHT VISION EQUIPMENT.........................        2,283        2,283        4,283  .......        4,283
    LIGHT RECON VEHICLE............................  ...........        2,000  ...........  .......  ...........
    TRAILERS.......................................        4,932       10,439       10,432  .......       10,432
    MODIFICATION KITS..............................        6,496        7,496        6,496  .......        7,496
    ITEMS LESS THAN $2 MIL.........................           75        1,975           75  .......           75
    PRECISION GUNNERY TRAINING SYSTEM..............  ...........        5,900  ...........  .......        5,900

[[Page H 9482]]
                                                                                                                
    M240 MACHINE GUN MODS..........................  ...........        2,200  ...........  .......  ...........
    ASSET TRACKING LOGISTICS SYSTEM................  ...........       17,850  ...........  .......  ...........
    LIGHTWEIGHT COMPUTER UNITS.....................  ...........        3,800  ...........  .......  ...........
    F-15 POST PRODUCTION SUPPORT...................       13,955  ...........       13,955  .......        6,978
    F-16 POST PRODUCTION SUPPORT...................      194,672       94,672      158,572  .......      126,622
    OTHER PRODUCTION CHARGES.......................      167,676      167,676      188,576  .......      187,676
    DARP SUPPORT EQUIPMENT.........................      194,374      194,374      214,374  .......      194,374
----------------------------------------------------------------------------------------------------------------




                     intelligence support equipment

       The conferees agree to provide $35,283,000 for intelligence 
     support equipment, an increase of $29,000,000. Of the 
     increase, $16,500,000 is only for two JSTARS ground stations 
     and $12,500,000 is only for Commander's Tactical Terminals.


                       right hand drive vehicles

       The conferees have reviewed the implementation of Public 
     Law 100-370, which amended title 10 USC (2253) to limit the 
     amount available for purchase of right hand drive vehicles to 
     $12,000. The conferees agree that this limitation should only 
     apply to the purchase of passenger sedans manufactured 
     outside of the United States. Further, this limitation does 
     not affect the use of any right hand drive vehicle provided 
     as part of the local contribution towards the basing of U.S. 
     forces in the Host Nation.

                    Aircraft Procurement, Air Force

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                             Budget           House          Senate        Qty      Conference  
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, AIR FORCE:                                                                                
    B-18 (MYP).........................          56,356          56,336         143,336  .......          56,336
    B-2A (MYP).........................         279,921         772,921         279,921  .......         772,921
    F-15E..............................  ..............         250,000         311,210        6         311,210
    F-15e ADV PROC.....................  ..............  ..............          50,190  .......          50,190
    F-16 C/D (MYP).....................  ..............          50,000         159,400        6         159,400
    F-16 C/D ADV PROC..................  ..............  ..............          15,400  .......  ..............
    C-17 (MYP).........................       2,402,491       2,402,491       2,412,491        8       2,412,491
    C-17 (MYP) (AP-CY).................  ..............  ..............         180,000  .......  ..............
    WC-130.............................  ..............  ..............         221,167        3         132,700
    STRATEGIC AIRLIFT..................         183,757         183,757          75,000  .......         183,757
    JPATS..............................          54,968          44,968          54,968        3          54,968
    E-8B...............................         394,634         394,634         371,334        2         377,434
    B--1B..............................          75,383          82,593          76,283  .......          58,483
    B-52...............................           4,908          24,908           4,908  .......           4,908
    F-117..............................          47,660          47,660          44,060  .......          47,660
    A-10...............................          79,424          79,424          33,324  .......          41,024
    F-15...............................          79,488          78,288          63,688  .......          78,288
    F-16...............................         118,606         118,606         118,606  .......         120,606
    C-5................................          45,431          51,631          45,431  .......          51,631
    C-130..............................          84,399          94,399          88,399  .......          94,399
    C-135..............................         142,764         334,764         251,264  .......         238,764
    DARP MODS..........................  ..............          79,000          48,000  .......          53,000
    SPARES AND REPAIR PARTS............         603,519         581,719         572,781  .......         586,281
    COMMON AGE.........................         216,048         212,510         223,248  .......         212,510
----------------------------------------------------------------------------------------------------------------

                           strategic airlift

       The conferees agree to provide $183,757,000 for strategic 
     airlift, the amount of the budget request. It is the 
     conferees' belief that the Defense Acquisition Board's 
     upcoming decision on the optimal composition of the airlift 
     fleet will require the continued production of C-17 aircraft. 
     The conferees therefore direct that from the amount of 
     funding provided for strategic airlift the Department of 
     Defense must give first priority to fully funding advance 
     procurement for continued production of C-17 aircraft in 
     fiscal year 1997.


                           b-1b modifications

       The conferees agree to provide $68,483,000 for B-1B 
     modifications, a decrease of $6,900,000 to the budget 
     request. The amount provided by the conferees includes a 
     decrease of $14,100,000 from cost savings for miscellaneous 
     modifications and an increase of $7,200,000 for reliability 
     and maintainability improvements identified during the B-1B 
     operational readiness assessment. The conferees also agree 
     with the Senate's reporting requirement about expanding the 
     B-1B conventional mission upgrade program.


                                  a-10

       The conferees agree to provide $41,024,000, a decrease of 
     $38,400,000 to the budget request for A-10 modifications. The 
     deleted funds are excess to program requirements for fiscal 
     year 1996.


                           f-15 modifications

       The conferees agree to provide $78,288,000, a decrease of 
     $1,200,000 to the budget request for F-15 modifications. The 
     conferees agree with the House reduction of funds for 
     installation of landing gear wiring switch kits. The 
     conferees do not agree with the Senate reduction of funds for 
     a fighter data link modification. In restoring the 
     $15,800,000 deleted by the Senate, the conferees direct that 
     $9,000,000 may only be used to acquire Joint Tactical 
     Information Distribution System (JTIDS) class II terminals 
     for one squadron of F-15 aircraft. The remaining $6,800,000 
     is available only for the Multifunctional Information 
     Distribution System (MIDS) variant project.
       The Under Secretary of Defense (Acquisition and Technology) 
     has informed the conferees of the Defense Department's recent 
     decision to meet the F-15 fighter data link (FDL) 
     requirements through the MIDS program. The conferees 
     understand that the Department intends full and open 
     competition for FDL production. The conferees direct the 
     Under Secretary to assure the congressional defense 
     committees in writing that the use of MIDS architecture and 
     software will not place U.S. companies at a competitive 
     disadvantage. This assurance is required before release of 
     the formal Request for Proposal for the F-15 fighter data 
     link.


                           F-16 Modifications

       The conferees agree to provide $120,606,000 for F-16 
     modifications, an increase of $2,000,000 to the budget 
     request. The additional funding provided is only for initial 
     acquisition of 600 gallon fuel tanks for destructive testing, 
     evaluation and limited operational use.


                          C-130 Modifications

       The conferees agree to provide $94,399,000 for C-130 
     modifications, an increase of $10,000,000 to the budget 
     request. Of the additional funding provided by the conferees, 
     $6,000,000 is only for threat defensive systems, and 
     $4,000,000 is only for acquisition of AN/AAQ-22 thermal 
     imaging systems for 10 Air Force Reserve HC-130 aircraft, as 
     recommended by the Senate.


                          C-135 Modifications

       The conferees agree to provide $238,764,000, for C-135 
     modifications, an increase of $96,000,000 to the budget 
     request. The additional funding provided by the conferees is 
     only for continued reengining of the Air Guard and Reserve 
     KC-135 tanker fleet. The conferees have provided sufficient 
     funding for four reengining kits.


                           DARP Modifications

       The conferees agree to provide $53,000,000 for Defense 
     Airborne Reconnaissance Program (DARP) modifications, an 
     increase of $53,000,000 to the budget request. Of the 
     additional funding provided by the conferees, $48,000,000 is 
     only for the acquisition of two RC-135 reengining kits and 
     $5,000,000 is only for costs associated with the 
     refurbishment of the SR-71 aircraft.


                    Aircraft Spare and Repair Parts

       The conferees agree to provide $586,281,000 for aircraft 
     spare and repair parts, a decrease of $17,338,000 to the 
     budget request. The amount of funding provided by the 
     conferees includes a decrease of $21,900,000 for C-17 spares, 
     a decrease of $8,938,000 for T-1 spares and an increase of 
     $13,500,000 for F100-229 engine spares.


                   electronic warfare force structure

       The conferees strongly agree with Senate report language 
     with respect to retaining at least 12 EF-111A Raven jammer 
     aircraft in the primary aircraft inventory through fiscal 
     year 1999, and with the Senate directed reporting 
     requirements.

                     Missile Procurement, Air Force

       The conference agreement is as follows:

                                                                                                                

[[Page H 9483]]
----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate         Quantity       Conference  
----------------------------------------------------------------------------------------------------------------
MISSILE PROCUREMENT, AIR FORCE:                                                                                 
    HAVE NAP....................  ..............          39,000          38,000  ..............          38,000
    AMRAAM......................         190,672         178,366         182,672             291         182,672
    TARGET DRONES...............          39,150          36,150          39,150              88          36,150
    CONVENTIONAL ALCM...........  ..............          27,200  ..............             100          15,000
    GLOBAL POSITIONING (MYP)....         136,060         136,060         118,660               4         126,060
    GLOBAL POSITIONING (MYP) (AP-                                                                               
     CY)........................          38,412  ..............          33,412  ..............          33,412
    SPACE BOOSTERS..............         464,953         459,953         405,903  ..............         433,853
    MEDIUM LAUNCH VEHICLE.......         150,929         150,929         147,765               4         150,929
    DEF METEOROLOGICAL SAT PROG.          29,265          29,265          26,876  ..............          29,265
    DEFENSE SUPPORT PROGRAM                                                                                     
     (MYP)......................         102,911          67,011          61,375  ..............          67,011
    SPECIAL PROGRAMS............       1,605,765       1,483,565       1,573,765  ..............       1,210,765
    2.75 INCH ROCKET MOTOR......          10,402  ..............          10,402  ..............  ..............
    2.75'' ROCKET HEAD SIGNATURE           1,993  ..............           1,993  ..............  ..............
    ITEMS LESS THAN $2,000,000..             950  ..............             950  ..............  ..............
    5.56 MM.....................           5,534  ..............           5,534  ..............  ..............
    CARTRIDGE CHAFF RR-180......          10,030  ..............          10,030  ..............  ..............
    CARTRIDGE CHAFF RR-188......           1,192  ..............           1,192  ..............  ..............
    ITEMS LESS THAN $2,000,000..           5,162  ..............           5,162  ..............  ..............
    MK-82 INERT/BDU-50..........           8,253  ..............           8,253  ..............  ..............
    TIMER ACTUATOR FIN FUZE.....           6,242  ..............           6,242  ..............  ..............
    BOMB PRACTICE 25 POUND......           5,928  ..............           5,928  ..............  ..............
    MK-84 BOMB-EMPTY............           9,261  ..............           9,261  ..............  ..............
    SENSOR FUZED WEAPON.........         165,447  ..............         165,447  ..............  ..............
    CBU-89 GATOR INERT..........           6,531  ..............           6,531  ..............  ..............
    ITEMS LESS THAN $2,000,000..           1,500  ..............           1,500  ..............  ..............
    FLARE, IR MJU-7B............          21,859  ..............          21,859  ..............  ..............
    MJU-23 FLARE................           6,483  ..............           6,483  ..............  ..............
    MJU-10B.....................           7,204  ..............           7,204  ..............  ..............
    M-206 CARTRIDGE FLARE.......          11,250  ..............          11,250  ..............  ..............
    INITIAL SPARES..............             621  ..............             621  ..............  ..............
    REPLENISHMENT SPARES........           2,329  ..............           2,329  ..............  ..............
    MODIFICATIONS...............           2,340  ..............           2,340  ..............  ..............
    ITEMS LESS THAN $2,000,000..          11,289  ..............          11,289  ..............  ..............
    M-16 A2 RIFLE...............           5,048  ..............           5,048  ..............           5,048
----------------------------------------------------------------------------------------------------------------




                             space boosters

       The conferees agree to provide $433,853,000 for the 
     procurement of the Titan IV heavy lift space booster, a 
     decrease of $31,100,000 to the budget request. The 
     recommendation makes the following reduction: $20,000,000 for 
     no longer needed relocation costs; $6,100,000 for 
     unadjudicated claims; $5,000,000 from contractor 
     consolidation savings.


                  procurement of ammunition, air force

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate          Quanity       Conference  
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, AIR                                                                                  
 FORCE:                                                                                                         
    2.75 INCH ROCKET MOTOR......  ..............          10,402  ..............          30,000          10,402
    2.75'' ROCKET HEAD SIGNATURE  ..............           1,993  ..............          24,320           1,993
    ITEMS LESS THAN $2,000,000..  ..............             950  ..............  ..............             950
    5.56 MM.....................  ..............           5,534  ..............          13,835           5,534
    30 MM TRAINING..............  ..............          14,480  ..............           1,360           7,000
    CARTRIDGE CHAFF RR-180......  ..............          10,030  ..............             720          10,030
    CARTRIDGE CHAFF RR-188......  ..............           1,192  ..............             903           1,192
    ITEMS LESS THAN $2,000,000..  ..............           5,162  ..............  ..............           5,162
    MK-82 INERT/BDU-50..........  ..............           8,253  ..............          12,586           8,253
    TIMER ACTUATOR FIN FUZE.....  ..............           6,242  ..............          10,000           6,242
    BOMB PRACTICE 25 POUND......  ..............           5,928  ..............         400,000           5,926
    MK-84 BOMB EMPTY............  ..............           9,261  ..............           3,718           9,261
    SENSOR FUZED WEAPON.........  ..............         165,447  ..............             500         165,447
    CBU-89 GATOR INERT..........  ..............           6,531  ..............             236           6,531
    CBU (COMBINED EFFECTS                                                                                       
     MUNITIONS).................  ..............  ..............  ..............  ..............          30,000
    ITEMS LESS THAN $2,000,000..  ..............           1,500  ..............  ..............           1,500
    FLARE, IR MJU-7B............  ..............          21,859  ..............         945,049          21,859
    MJU-23 FLARE................  ..............           6,483  ..............           7,426           6,483
    MJU-10B.....................  ..............           7,204  ..............         110,436           7,204
    M-206 CARTRIDGE FLARE.......  ..............          11,250  ..............         331,564          11,250
    INITIAL SPARES..............  ..............             621  ..............  ..............             621
    REPLENISHMENT SPARES........  ..............           2,329  ..............  ..............           2,329
    MODIFICATIONS...............  ..............           2,340  ..............  ..............           2,340
    ITEMS LESS THAN $2,000,000..  ..............          11,289  ..............  ..............          11,289
    M-16 A2 RIFLE...............  ..............           5,048  ..............  ..............  ..............
----------------------------------------------------------------------------------------------------------------

                      Other Procurement, Air Force

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate         Quantity       Conference  
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, AIR FORCE:                                                                                   
    CBU-87 (COMBINED EFFECTS                                                                                    
     MUNITION)..................  ..............  ..............          30,000  ..............  ..............
    ARMORED SEDAN...............             202             202             260               1             260
    MODIFICATIONS...............             200             200           3,500  ..............           1,000
    ITEMS LESS THAN $2,000,000..           2,352          14,176           2,352  ..............          14,176
    THEATER AIR CONTROL SYS                                                                                     
     IMPROVEMENT................          32,345          32,345          27,745  ..............          27,745
    WATER OBSERV/FORCAST........           7,103           7,103          13,803  ..............          13,803
    DEFENSE SUPPORT PROGRAM.....          36,909          36,909          11,909  ..............          36,909
    STRATEGIC COMMAND AND                                                                                       
     CONTROL....................          67,596          67,596          58,095  ..............          58,095
    AUTOMATIC DATA PROCESSING                                                                                   
     EQUIP......................          23,958          32,458          23,958  ..............          23,958
    BASE LEVEL DATA AUTO PROGRAM          26,851          26,851          38,451  ..............          35,151
    BASE INFORMATION                                                                                            
     INFRASTRUCTURE.............          73,138          56,538          56,385  ..............          56,385
    MILSATCOM...................          43,362          43,362          13,207  ..............          43,362
    COMM ELECT MODS.............          20,424           9,724          20,424  ..............           9,724
    MOBILITY EQUIPMENT..........          17,670          31,770          29,570  ..............          29,570
    WARTIME HOST NATION SUPPORT.           1,699           1,699  ..............  ..............  ..............
    INTELLIGENCE PRODUCTION                                                                                     
     ACTIVITY...................          67,928          69,128          61,228  ..............          69,128
    SELECTED ACTIVITIES.........       5,409,357       5,117,657       5,189,357  ..............       4,904,257
----------------------------------------------------------------------------------------------------------------

                       Items Less Than $2,000,000

       The conferees agree to provide $14,176,000 for ``Items Less 
     Than $2,000,000'', an increase of $11,874,000. The increase 
     is provided only for those items identified by the Air Force 
     as shortfalls.


                       Procurement, Defense-Wide

       The conference agreement is as follows:

                                                                                                                

[[Page H 9484]]
----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate            Qty         Conference  
----------------------------------------------------------------------------------------------------------------
PROCUREMENT, DDEFENSE-WIDE                                                                                      
    DARP........................         179,307         161,975         179,307  ..............         161,575
    DEFENSE INFORMATION                                                                                         
     INFRASTRUCTURE.............          54,234          58,734          54,234  ..............          58,734
    CLASSIFIED PROGRAMS.........         844,903         858,903         766,403  ..............         763,190
SHIPBUILDING                                                                                                    
    PC, CYCLONE CLASS...........  ..............  ..............  ..............               1          20,000
    MK V SPECIAL OPERATIONS                                                                                     
     CRAFT (MK V SOC)...........          19,501          19,501          37,201               4          37,201
OTHER PROCUREMENT PROGRAMS                                                                                      
    SPECIAL WARFARE EQUIPMENT...          11,776          11,776           7,483  ..............           7,483
    LIGHT STRIKE VEHICLE........  ..............           6,000  ..............  ..............           6,000
----------------------------------------------------------------------------------------------------------------




                defense airborne reconnaissance program

       The conferees agree to provide $161,575,000 for procurement 
     for the Defense Airborne Reconnaissance Program (DARP), a 
     decrease of $17,732,000 to the budget request. The conferees 
     support the Army's identified need for a short range unmanned 
     air vehicle (UAV), but remain concerned with the continuing 
     problems associated with the Hunter program. As a result, the 
     conferees have denied funding for marinization of the Hunter 
     UAV and direct that the remaining fiscal year 1996 funds 
     provided for Hunter not be obligated until the Appropriations 
     Committees receive the results of the Defense Acquisition 
     Board's review of the program. This review should include all 
     options for fulfilling the Army's UAV requirement. The 
     conferees further direct that use of these funds for any 
     other purpose is to be handled through normal reprogramming 
     procedures.


                      patrol craft--cyclone class

       The conferees agree to provide $20,000,000 for the 
     procurement of one additional PC-Cyclone class operations 
     patrol craft/vessel to continue to meet force requirements.


                          natural gas vehicles

       The conferees recommend the Department develop an 
     implementation plan and a demonstration effort based on the 
     1993 Navy study which specified natural gas vehicles as the 
     vehicle of choice for achieving significant emission 
     reductions on military bases.

                  National Guard and Reserve Equipment

       The conferees agree to provide $777,000,000 for National 
     Guard and Reserve Equipment as proposed by the Senate instead 
     of $980,125,000 as proposed by the House.
       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate         Quantity       Conference  
----------------------------------------------------------------------------------------------------------------
    NATIONAL GUARD & RESERVE                                                                                    
            EQUIPMENT                                                                                           
                                                                                                                
RESERVE EQUIPMENT:                                                                                              
    ARMY RESERVE................                                                                                
        MISCELLANEOUS EQUIPMENT.  ..............  ..............          90,000  ..............          90,000
        TACTICAL VEHICLES.......  ..............          52,000  ..............  ..............  ..............
        NIGHT VISION EQUIPMENT..  ..............           2,500  ..............  ..............  ..............
        ENGINEER EQUIPMENT......  ..............          20,000  ..............  ..............  ..............
        VARI-REACH LIFT TRUCKS..  ..............           4,500  ..............  ..............  ..............
        MK-19 GRENADE LAUNCHERS.  ..............           2,000  ..............  ..............  ..............
        MEDICAL EQUIPMENT.......  ..............           2,000  ..............  ..............  ..............
        3000 GPH ROWPU..........  ..............           3,000  ..............  ..............  ..............
        130T FLOATING CRANE.....  ..............           6,000  ..............  ..............  ..............
        PUSHER BOAT.............  ..............           5,000  ..............  ..............  ..............
        5 KW LIGHT TOWER........  ..............           5,000  ..............  ..............  ..............
        LASER LEVELING SYSTEMS..  ..............           4,000  ..............  ..............  ..............
        AUTOMATIC BUILDING                                                                                      
         MACHINES...............  ..............           3,000  ..............  ..............  ..............
    NAVY RESERVE................                                                                                
        MISCELLANEOUS EQUIPMENT.  ..............          33,300          40,000  ..............          40,000
        F/A-18 UPGRADES.........  ..............          48,000  ..............  ..............  ..............
        MIUW TSQ-108............  ..............          40,000  ..............  ..............  ..............
    MARINE CORPS RESERVE........                                                                                
        MISCELLANEOUS EQUIPMENT.  ..............          30,525          50,000  ..............          50,000
        CBT. VEHICLE TRAINER....  ..............           3,800  ..............  ..............  ..............
        CH-53 HELICOPTERS.......  ..............          50,000  ..............  ..............  ..............
        DIGITAL COMMAND &                                                                                       
         CONTROL NETWORK........  ..............           4,300  ..............  ..............  ..............
        COMM COMPANY EQUIPMENT..  ..............           5,000  ..............  ..............  ..............
        UH-1N NAV/FLIR UPGRADES.  ..............           5,000  ..............  ..............  ..............
    AIR FORCE RESERVE...........                                                                                
        MISCELLANEOUS EQUIPMENT.  ..............          30,300          40,000  ..............          40,000
        C-130H..................  ..............         135,600  ..............  ..............  ..............
                                                                                                                
    NATIONAL GUARD EQUIPMENT                                                                                    
                                                                                                                
    ARMY NATIONAL GUARD.........                                                                                
        MISCELLANEOUS EQUIPMENT.  ..............          15,000         100,000  ..............         100,000
        TACTICAL TRUCK NEW                                                                                      
         PROCUREMENT............  ..............          10,000  ..............  ..............  ..............
        TACTICAL TRUCK SLEP (5                                                                                  
         TON)...................  ..............          10,000  ..............  ..............  ..............
        TACTICAL TRUCK SLEP (2\1/                                                                               
         2\ TON)................  ..............          10,000  ..............  ..............  ..............
        M109 ACE................  ..............          10,000  ..............  ..............  ..............
        IFTE....................  ..............          10,000  ..............  ..............  ..............
        NIGHT VISION EQUIPMENT..  ..............          10,000  ..............  ..............  ..............
        CHEM/BIO EQUIPMENT......  ..............           5,000  ..............  ..............  ..............
        AH-1 (C-NITE)...........  ..............          10,000  ..............  ..............  ..............
        FADEC...................  ..............          10,000  ..............  ..............  ..............
        AH-64 COMBAT MISSION                                                                                    
         SIMULATOR..............  ..............          15,000  ..............  ..............  ..............
        UH-1 SLEP...............  ..............          10,000  ..............  ..............  ..............
        AH-1 BORE SIGHT                                                                                         
         EQUIPMENT..............  ..............           5,000  ..............  ..............  ..............
    AIR NATIONAL GUARD..........                                                                                
        MISCELLANEOUS EQUIPMENT.  ..............          57,000  ..............  ..............          57,000
        F-16 220E ENGINES.......  ..............          10,000  ..............  ..............  ..............
        C-130H..................  ..............         203,400  ..............  ..............  ..............
        AIRLIFT DEFENSIVE                                                                                       
         SYSTEMS................  ..............          10,000  ..............  ..............  ..............
        AIRLIFT REPLACEMENT                                                                                     
         RADAR..................  ..............           6,800  ..............  ..............  ..............
        C-130 MODS..............  ..............          15,000  ..............  ..............  ..............
        AUTOMATIC BUILDING                                                                                      
         MACHINES...............  ..............           2,000  ..............  ..............  ..............
        F-16 RADAR WARNING                                                                                      
         RECEIVERS..............  ..............          36,200  ..............  ..............  ..............
    DOD.........................                                                                                
        MISC EQUIPMENT (GUARD &                                                                                 
         RESERVE AIRCRAFT)......  ..............  ..............         400,000  ..............         400,000
----------------------------------------------------------------------------------------------------------------

       The conferees agree to the Senate provision which requires 
     the Chiefs of the Reserve and National Guard components to 
     prepare and submit a modernization priority assessment for 
     their respective Reserve and National Guard components and 
     have established November 1, 1995 as the deadline for this 
     submission.


                        miscellaneous equipment

       The conferees concur with the Senate position that the 
     Reserves and National Guard should exercise control of funds 
     provided for their modernization in this account with 
     priority consideration for miscellaneous equipment 
     appropriations given to the following items:
       Avenger, heavy truck modernization, radar warning 
     receivers, laser leveling systems, AH-64 combat mission 
     simulators, automatic building machines, HMMWVs, UH-60 
     Upgrades, F-18 upgrades, 2\1/2\ ton truck ESP, UH-1 Huey 
     SLEP, AH-1 (C-NITE), M-9 ACE, night vision equipment, IFTE, 
     external fuel tanks, AN/AQS-14 airborne mine countermeasures, 
     MIUW vans, modular airborne fire fighting systems, AH-1 
     borsighting devices, FADEC for UH-1 and CH-47, C-9 upgrades, 
     small arms simulators, HC-130N conversions, M-915/916 heavy 
     dump trucks, 5-ton flatbed trailers, SQQ-T1 trainer, KC-135 
     re-engining, UH-60Q helicopter upgrades, driver's night 
     viewers, unmanned aerial vehicles, heavy equipment transport 
     system, C-12 and C-20 

[[Page H 9485]]
     aircraft, CT-39 Navy/Marine Corps replacement aircraft, SINCGARS 
     radios, and Medium Truck SLEP.
       The conferees also agree that while they have established a 
     separate aircraft account, other aircraft may be purchased 
     from the miscellaneous equipment account at the discretion of 
     the Reserve and National Guard component chiefs.


                  national guard and reserve aircraft

       The conferees agree to provide $400,000,000 for the 
     acquisition of aircraft to support Reserve and National Guard 
     missions and agree that the following aircraft shall be 
     purchased:

C-130 H for the Air Force Reserve and Air National Guard (1$339,000,000
CH-53E for the Marine Corps Reserve (2)......................50,000,000
C-26 for the Air National Guard (2)..........................11,000,000


                    information technology resources

       The conference agreement is as follows:

------------------------------------------------------------------------
  Appropriations and                                                    
       Programs             House            Senate         Conference  
------------------------------------------------------------------------
Operation and                                                           
 Maintenance, Army:                                                     
    EDCARS/DSREDS....           2,000                0            2,000 
Operation and                                                           
 Maintenance, Navy:                                                     
    NSIPS............           9,000                0            2,500 
Operation and                                                           
 Maintenance, Air                                                       
 Force:                                                                 
    Base Support.....         889,348          913,648          889,448 
      (CAMS).........              (0)           (+500)           (+500)
      (TICARRS)......              (0)        (+10,000)        (+10,000)
      (BLSM).........              (0)              (0)        (-10,400)
                                                                        
  Note: Conferees agree to House recommendations on CAMS, TICARRS, and  
BLSM but have made the funding adjustments in the Base Support line     
rather than in the line proposed by the House.                          
                                                                        
    Information                                                         
     Technology......               0              100                0 
    EDCARS/DSREDS....           2,000                0            2,000 
Operation and                                                           
 Maintenance,                                                           
 Defensewide:                                                           
    Information                                                         
     Technology......         112,000                0           12,000 
      (JLSC).........       (+100,000)              (0)              (0)
      (DISA COOP)....        (+12,000)              (0)        (+12,000)
Operation and                                                           
 Maintenance, Army                                                      
 Reserve:                                                               
    RCAS.............          -4,000                0           -4,000 
Operation and                                                           
 Maintenance, Navy                                                      
 Reserve:                                                               
    NSIPS............           9,000                0            2,500 
Operation and                                                           
 Maintenance, Army                                                      
 National Guard:                                                        
    Information                                                         
     Management......          29,396           59,456           44,596 
      (RCAS).........        (-33,500)              (0)        (-18,300)
      (Distance                                                         
       Learning).....         (+3,400)              (0)         (+3,400)
Other Procurement,                                                      
 Army:                                                                  
    Automated Data                                                      
     Processing                                                         
     Equipment.......         130,151          132,751          138,751 
      (Distance                                                         
       Learning).....         (+9,600)              (0)         (+6,000)
      (general                                                          
       reduction)....        (-12,000)              (0)              (0)
    RCAS.............         113,134           83,174          108,174 
Other Procurement,                                                      
 Navy:                                                                  
    NSIPS............               0                0           13,000 
Other Procurement,                                                      
 Air Force:                                                             
    Automatic Data                                                      
     Processing                                                         
     Equipment.......          32,458           23,958           23,958 
      (CAMS).........         (+4,000)              (0)              (0)
      (Equipment                                                        
       Management                                                       
       System).......         (+4,500)              (0)              (0)
    Base Level Data                                                     
     Automation......          26,851           38,451           35,151 
      (CMOS).........              (0)         (+3,250)              (0)
      (REMIS)........              (0)         (+8,300)         (+8,300)
Operation and                                                           
 Maintenance, Defense                                                   
 Wide:                                                                  
    Defense                                                             
     Information                                                        
     Infrastructure..          58,734           54,234           58,734 
      (DISA COOP)....         (+4,500)              (0)         (+4,500)
Research,                                                               
 Development, Test,                                                     
 and Evaluation, Air                                                    
 Force:                                                                 
    Advanced                                                            
     Computing                                                          
     Technology......          36,305           11,005           36,305 
      (BLSM transfer                                                    
       from O&M).....        (+10,400)              (0)        (+10,400)
      (IMDS).........        (+15,200)              (0)        (+15,200)
------------------------------------------------------------------------

                     joint logistics systems center

       The conferees do not agree to the House proposal to provide 
     an additional $100,000,000 in the Operation and Maintenance, 
     Defense-wide appropriation for the Joint Logistics Systems 
     Center (JLSC). The conferees recognize that there is the 
     potential for significant cost savings from effective 
     logistics systems modernization, and believe that JLSC and 
     its programs should remain a top priority. A September, 1995 
     report to the House Appropriations Committee by the 
     Committee's Surveys and Investigations staff, however, 
     indicates that the JLSC is not properly organized to 
     accomplish the redesign of the Department of Defense's 
     logistics systems. The conferees direct that not more than 
     half of the funds requested in the budget and appropriated 
     for JLSC may be obligated until the Secretary of Defense has 
     taken appropriate action to correct JLSC's organizational 
     deficiencies and has designated the Air Force as the 
     executive agency for the JLSC, which will remain the 
     responsibility of the Deputy Undersecretary of Defense 
     (Logistics) and will remain located at Wright-Patterson Air 
     Force Base. The conferees further direct that the Secretary 
     of Defense provide a report to the congressional defense 
     committees by February 1, 1996 which explains his plan for 
     improving the management of the Joint Logistics Systems 
     Center, including improved levels of management, technical, 
     contracting, and acquisition support.


               navy standard integrated personnel system

       The conferees have provided $18,000,000 as recommended by 
     the House for the Navy Standard Integrated Personnel System 
     (NSIPS). The additional funding is only for NSIPS as directed 
     in House Report 104-208, page 134, except that $13,000,000 is 
     appropriated in Other Procurement, Navy; $2,500,000 in 
     Operation and Maintenance, Navy Reserve; and $2,500,000 in 
     Operation and maintenance, Navy. The conferees concur with 
     the Department's plan to use a joint working group to define 
     the functional and technical requirements for a standard 
     military personnel management system. The conferees believe 
     that parallel development of NSIPS is critical and direct the 
     Navy, the Under Secretary of Defense for Personnel and 
     Readiness, and the Assistant Secretary of Defense for C31 to 
     continue NSIPS development and implementation as a joint 
     Naval Reserve and active team project which will include the 
     core capabilities required to support joint requirements for 
     the objective DOD field level data collection personnel 
     system. The conferees concur with the Department's decision 
     to designate the Navy as executive agent for prototyping and 
     testing these field level applications or core capabilities 
     and the Air Force as the executive agent for the database.
       The conferees are aware of Navy needs to also continue to 
     consolidate and integrate its headquarters personnel systems. 
     The House previously directed that the Navy Military 
     Personnel Distribution System (NMPD) central design authority 
     (CDA) be assigned to the Enlisted Personnel Management Center 
     (EPMAC) to assure the most efficient and cost effective 
     development and maintenance of this system. The conferees 
     understand that the Military Assignment, Selection, and 
     Transfer System (MAST) has been conceived to modernize Naval 
     personnel management by combining legacy systems and allowing 
     these systems to operate in a more cost effective and client 
     friendly environment. EPMAC has been identified as the 
     technical expert possessing the expertise required to meet 
     the development demands of MAST and NMPD systems. The 
     conferees direct the Navy to assign CDA responsibilities, 
     implementation, and funding functions to EMPAC for the MAST 
     and NMPD systems by January, 1996, and that the transfer of 
     the NMPD system to EPMAC be completed by September, 1996. The 
     conferees direct the Navy to allocate the required funding to 
     EPMAs in support of the MAST and NMPD system development to 
     include hardware, software, and personnel requirements.
       The conferees concur with the House direction that the 
     Department of the Navy place the collocated Naval 
     Telecommunications and Communications Station (NTCS) 
     functions and operations under the operational control and 
     command of the Naval Reserve Information Systems Office, 
     except that this direction shall only apply to the Central 
     Design Agency functions and its related support functions and 
     civilian personnel. The conferees direct that these functions 
     continue to be supported through the Defense Business 
     Operations Fund.
     
[[Page H 9486]]



                         other defense agencies

       The conferees concur with the House direction provided in 
     House Report 104-208, pages 136-137 regarding DISA megacenter 
     outsourcing. The conferees are adamant that the reporting 
     requirements and directions provided in the House report be 
     followed by the Department of Defense. While the conferees 
     may be able to support outsourcing some non-essential 
     military functions and services prior to the completion of 
     recommended base closing and realignment consolidations, the 
     conferees expect the reporting requirements contained in the 
     House report to occur first along with proper Congressional 
     committee oversight.
       The conferees concur with the House National Security 
     Committee efforts urging the Department of Defense to 
     privatize or outsource non-essential military services such 
     functions as civilian payroll and payroll-and-accounting for 
     nonappropriated instrumentality functions. However, the 
     conferees recommend the Department also look to franchising 
     for these and other similar services from other Federal 
     agencies that already provide similar, cost effective 
     services. In this regard, the conferees urge the Department 
     to proceed with the recommendation made in the statement of 
     the managers accompanying the fiscal year 1995 Defense 
     Appropriations Act to initiate a prototype for using the 
     National Finance Center cross servicing functions, in 
     conjunction with existing DFAS and private operations in the 
     area, for some financial management and personnel services at 
     DOD as recommended by Military Department Comptrollers in 
     January, 1994.


                  reserve component automation system

       The Army has spent eighteen years and close to a billion 
     dollars without successfully providing modern computer 
     technology to its Reserve Component. For the first time in 
     the RCAS program's history, there now appears to be general 
     consensus between the active Army, the National Guard, the 
     Army Reserve, the Office of the Secretary of Defense, and the 
     Congress on its future direction based on the restructure 
     proposed by the Chief of the National Guard Bureau. Given 
     this apparent consensus, there is no longer the need for 
     legislation to accomplish the goals set out by the Congress 
     for this program. The conferees therefore do not agree to 
     retain bill language as proposed by the House. This action 
     should not be construed as a diminution of Congressional 
     support for RCAS, a Congressional authorization to change the 
     program responsibilities of the Chief of the National Guard 
     Bureau, or an invitation to the Army to change the program 
     architecture to parallel or merge with active Army computer 
     modernization programs. The funding provided in this Act is 
     available solely to implement the restructured RCAS program 
     as proposed by the Chief of the National Guard Bureau, 
     endorsed by the Office of the Secretary of Defense in a 
     formal Major Automated Information Systems Review Council, 
     and recently presented to the Congress. All RCAS funds are 
     hereby designated to be of special Congressional interest, 
     any other use of which would require approval by the Congress 
     through the formal reprogram- ming process; this would 
     include the use of RCAS funds to modernize active Army 
     systems or to finance co-development of new systems. The 
     conferees agree to the certification requirements by the 
     Assistant Secretary of Defense for Reserve Affairs in the 
     House report.
       For many years, the Congress has denied the use of 
     government furnished equipment and software in the RCAS 
     system primarily because the Army would not identify it in 
     advance to the Congress. The Chief of the National Guard 
     Bureau has proposed the limited use of government furnished 
     software in the restructured program. The Army has touted for 
     many years the large amount of government furnished software 
     that potentially could be used in RCAS. However, of the 16 
     existing Army information systems that will be examined for 
     reuse in RCAS during fiscal year 1996, the Guard Bureau 
     indicates that not even one is likely to have more than 14 
     percent of the software available for reuse. Many of these 
     are also very old systems. The conferees wish to assure that 
     software reuse is not done simply for its own sake or solely 
     to satisfy the technical community. The conferees impose no 
     restrictions on the use of government furnished software in 
     the restructured program, but direct that the Program 
     Executive Office for RCAS certify each time it tasks the RCAS 
     contractor to use a significant amount of government 
     furnished software that such action is the most cost-
     effective approach.
       Finally, for many years the Congress had a very tight 
     restriction in law prohibiting the purchase of interim 
     equipment outside of the RCAS program. The Reserve Components 
     have recently disclosed that there are 12,000 modern 
     computers which are available for the restructured program. 
     The conferees direct the Inspector General of the Defense 
     Department to conduct an investigation on how the Reserve 
     Component was able to obtain such a large number of 
     computers, whether any of these acquisitions violated law, 
     and/or if anti-deficiency violations occurred.

          Title IV--Research, Development, Test and Evaluation

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
                 RECAPITULATION                                                                                 
RDTE, ARMY......................................       4,444,175       4,742,150       4,639,131       4,870,684
RDTE, NAVY......................................       8,204,530       8,715,481       8,282,051       8,748,132
RDTE, AIR FORCE.................................      12,598,439      13,110,335      13,087,389      13,126,567
RDTE, DEFENSE-WIDE..............................       8,802,881       9,029,666       9,196,784       9,411,057
DEVELOPMENTAL TEST AND EVALUATION...............         259,341         259,341         246,082         251,082
OPERATIONAL TEST AND EVALUATION.................          22,587          22,587          22,587          22,587
                                                 ---------------------------------------------------------------
      GRAND TOTAL, RDTE.........................      34,331,953      35,879,560      35,474,024      36,430,109
                                                 ===============================================================
                 CATEGORY RECAP                                                                                 
BASIC RESEARCH..................................         974,025         953,625         916,592         935,964
EXPLORATORY DEVELOPMENT.........................       2,722,753       2,855,416       2,836,736       2,907,381
ADVANCED DEVELOPMENT............................       3,693,547       3,318,907       3,370,626       3,624,055
DEMONSTRATION AND VALIDATION....................       2,664,245       3,018,253       2,780,156       2,983,101
ENGINEERING & MANUFACTURING DEVELOPMENT.........       8,239,924       8,602,411       8,599,378       8,579,080
RDT&E MANAGEMENT SUPPORT........................       3,119,546       3,103,818       3,112,963       3,130,779
OPERATIONAL SYSTEMS DEVELOPMENT.................      10,235,821      10,732,599      10,589,899      10,955,133
OTHER...........................................       2,682,092       3,294,531       3,267,674       3,314,616
                                                 ---------------------------------------------------------------
      TOTAL.....................................      34,331,953      35,879,560      35,474,024      36,430,109
----------------------------------------------------------------------------------------------------------------

                         special interest items

       The conferees agree with the direction in the House report 
     with respect to the identification and treatment of 
     Congressional interest items and further direct that these 
     requirements be imposed with respect to items so identified 
     in the Senate report and in this Statement of the Managers.

            Research, Development, Test and Evaluation, Army

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL, ARMY:                                                                         
    DEFENSE RESEARCH SCIENCES...................         127,565         127,565         128,240         128,240
    UNIVERSITY AND INDUSTRY RESEARCH CENTERS....          62,715          62,715          39,016          49,779
    SENSORS AND ELECTRONIC SURVIVABILITY........          21,918          27,918          21,918          27,918
    AVIATION TECHNOLOGY.........................          20,381          20,381          18,470          18,470
    MISSILE TECHNOLOGY..........................          17,985          17,985          12,740          17,965
    MODELING AND SIMULATION.....................          23,770          23,770          20,526          20,526
    BALLISTICS TECHNOLOGY.......................          28,126          39,126          25,976          33,976
    ELECTRONICS AND ELECTRONIC DEVICES..........          17,525          19,025          20,525          22,025
    HUMAN FACTORS ENGINEERING TECHNOLOGY........          12,534          20,034          12,534          16,034
    ENVIRONMENTAL QUALITY TECHNOLOGY............          21,304          21,304          26,704          26,704
    COMMAND, CONTROL, COMMUNICATIONS TECHNOLOGY.          15,726          15,726          13,578          13,578
    MEDICAL TECHNOLOGY..........................          56,658          58,658          63,311          65,311
    LOGISTICS ADVANCED TECHNOLOGY...............          10,569          13,669           5,607           8,707
    MEDICAL ADVANCED TECHNOLOGY.................          11,760          88,760          18,535          95,535
    AVIATION ADVANCED TECHNOLOGY................          48,593          59,093          48,593          56,593
    WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY...          18,518          21,518          21,649          27,518
    COMBAT VEHICLE AND AUTOMOTIVE ADVANCED                                                                      
     TECHNOLOGY.................................          30,616          31,616          23,842          28,171
    COMMAND, CONTROL, COMMUNICATIONS ADVANCED                                                                   
     TECHNOLOGY.................................          16,922          16,922          28,922          28,922
    TRACTOR HIKE................................          14,588          31,588          14,588          24,588

[[Page H 9487]]
                                                                                                                
    GLOBAL SURVEILLANCE/AIR DEFENSE/PRECISION                                                                   
     STRIKE TECHN...............................          39,824          39,824          38,324          38,324
    MISSILE AND ROCKET ADVANCED TECHNOLOGY......         123,913         126,413         108,913         118,913
    LANDMINE WARFARE AND BARRIER ADVANCED                                                                       
     TECHNOLOGY.................................          18,820          18,820          24,820          24,820
    NIGHT VISION ADVANCED TECHNOLOGY............          37,969          37,969          33,803          33,803
    ADVANCED TACTICAL COMPUTER SCIENCE AND                                                                      
     TECHNOLOGY.................................          33,989          33,989          28,952          28,952
    TRACTOR DUMP................................          15,025          15,025  ..............  ..............
    ARMY MISSILE DEFENSE SYSTEMS INTEGRATION                                                                    
     (DEM/VAL)..................................           2,985          30,785           2,985          23,985
    ARTILLERY PROPELLANT DEVELOPMENT............          10,946          30,546          21,646          21,946
    ARMORED SYSTEM MODERNIZATION--ADV DEV.......         201,513         201,513         176,513         191,513
    TACTICAL ELECTRONIC SUPPORT SYSTEMS--ADV DEV           2,937           5,937           2,937           5,937
    SOLDIER SUPPORT AND SURVIVABILITY...........          33,848          33,848           7,913           7,913
    AVIATION--ADV DEV...........................           8,430          14,430           8,430          14,430
    WEAPONS AND MUNITIONS--ADV DEV..............  ..............  ..............           1,000           1,000
    COMANCHE....................................         199,103         199,103         373,103         299,103
    ADVANCED MISSILE SYSTEM-HEAVY...............             995             995  ..............             995
    MEDIUM TACTICAL VEHICLES....................  ..............  ..............           1,500           1,500
    JAVELIN.....................................  ..............           2,000  ..............           1,000
    LANDMINE WARFARE............................          31,028          31,028          15,628          31,028
    HEAVY TACTICAL VEHICLES.....................  ..............           2,745  ..............           2,745
    ADVANCED COMMAND AND CONTROL VEHICLE (AC2V).          18,238          18,238          13,776          18,238
    LIGHT TACTICAL WHEELED VEHICLES.............           2,187           4,187           7,187           4,187
    ARMORED SYSTEMS MODERNIZATION (ASM)-ENG, DEV          38,465          43,825          40,065          40,065
    ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.....          21,831          35,984          24,431          24,431
    NON-SYSTEM TRAINING DEVICES--ENG DEV........          55,303          55,303          50,703          52,303
    TACTICAL SURVEILLANCE SYSTEM--ENG DEV.......  ..............           3,100           3,000           3,000
    AIR DEFENSE COMMAND, CONTROL AND                                                                            
     INTELLIGENCE--ENG DE.......................          22,030          22,030          20,830          20,830
    AUTOMATIC TEST EQUIPMENT DEVELOPMENT........           5,437          15,437           5,437          15,437
    TRACTOR BAT.................................         193,303         200,303         193,303         200,303
    JOINT SURVEILLANCE/TARGET ATTACK RADAR                                                                      
     SYSTEM.....................................          18,771          18,771          28,271          28,271
    WEAPONS AND MUNITIONS--ENG DEV..............          15,928          17,528          16,428          18,028
    NON-COOPERATIVE TARGET RECOGNITION--ENG DEV.          30,466          30,466          14,139          22,466
    RAND ARROYO CENTER..........................          21,872          21,872          16,872          18,872
    DOD HIGH ENERGY LASER TEST FACILITY.........           3,000          24,808          35,000          35,000
    PROGRAMWIDE ACTIVITIES......................          63,649          63,649          59,400          63,649
    TECHNICAL INFORMATION ACTIVITIES............          16,401          16,401          13,837          13,837
    MUNITIONS STANDARDIZATION, EFFECTIVENESS AND                                                                
     SAFETY.....................................           6,903           6,903          18,103          18,103
    ENVIRONMENTAL COMPLIANCE....................          66,101          66,101          68,101          68,101
    BASE OPERATIONS--RDT&E......................         329,978         329,978         319,478         319,478
    MANAGEMENT HEADQUARTERS (RESEARCH AND                                                                       
     DEVELOPMENT)...............................           8,766           8,766          15,766          15,766
    MLRS PRODUCT IMPROVEMENT PROGRAM............          68,786          68,786          72,586          72,586
    ADV FIELD ARTILLERY TACTICAL DATA SYSTEM....          39,422          39,422  ..............          36,422
    COMBAT VEHICLE IMPROVEMENT PROGRAMS.........         197,669         198,978         202,694         215,003
    MANEUVER CONTROL SYSTEM.....................          38,327          51,327  ..............          51,327
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT                                                                       
     PROGRAM....................................           3,012           4,112           3,012           4,112
    DIGITIZATION................................          88,567          88,567  ..............         100,867
    MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT                                                                     
     PROGRAM....................................          17,069          26,869          68,869          64,869
    OTHER MISSILE PRODUCT IMPROVEMENT PROGRAMS..          57,949          57,949          65,499          65,499
    END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.  ..............          17,776          23,776          28,776
    TASK FORCE XXI..............................  ..............  ..............         184,456  ..............
    TASK FORCE XXI SOLDIER......................  ..............  ..............  ..............          30,000
----------------------------------------------------------------------------------------------------------------



                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
University and Industry Research Centers........          62,715          62,715          39,016          49,779
    Electromechanics and hypervelocity physics..  ..............  ..............          -1,390  ..............
    Automotive Technology.......................  ..............  ..............  ..............          +2,000
    Federated Labs..............................  ..............  ..............         -22,309         -14,936
Ballistics Technology...........................          28,126          39,316          25,976          33,976
    Electric gun technology.....................  ..............          +9,000  ..............          +7,000
    Electrothermal-chemical tech (ETC)..........  ..............          +2,000  ..............          +1,000
    Self Protection System......................  ..............  ..............          -2,150          -2,150
Electronics and Electronic Devices..............          17,525          19,025          20,525          22,025
    Battery maintainer system...................  ..............          +1,500  ..............          +1,500
    Adv nonmetallic rechargeable battery........  ..............  ..............          +1,000          +1,000
    Low cost reusable alkaline batteries for                                                                    
     Sincgars...................................  ..............  ..............          +1,000          +1,000
    ``AA'' zinc air battery for military                                                                        
     application................................  ..............  ..............          +1,000          +1,000
Human Factors Engineering Technology............          12,534          20,034          12,534          16,034
    Medteams....................................  ..............          +4,000  ..............  ..............
    Rural Health................................  ..............          +3,500  ..............          +3,500
Medical Technology..............................          56,658          58,658          63,311          65,311
    Dengue fever................................  ..............  ..............          +1,000          +1,000
    Nutrition Research..........................  ..............  ..............          +1,775          +1,775
    Medteams....................................  ..............  ..............          +3,878          +3,878
    Wound Healing...............................  ..............          +2,000  ..............          +2,000
Logistics Advanced Technology...................          10,569          13,669           5,607           8,707
    Soldier Survivability.......................  ..............  ..............          -4,962          -4,962
    Ammunition logistics........................  ..............          +3,100  ..............          +3,100
Medical Advanced Technology.....................          11,760          88,760          18,535          95,535
    Nutrition research..........................  ..............  ..............          +1,775          +1,775
    Tissue replacement..........................  ..............  ..............          +5,000          +5,000
    Breat cancer................................  ..............         +75,000  ..............         +75,000
    Blood analyzer..............................  ..............          +2,000  ..............          +2,000
Aviation Advanced Technology....................          48,593          59,093          48,593          56,593
    Chinook helicopter SLEP.....................  ..............          +4,000  ..............          +4,000
    Starstreak evaluation [Note: The conferees                                                                  
     agree to Senate language regarding the                                                                     
     Starstreak funding strategy.]..............  ..............          +6,500  ..............          +4,000
Weapons and Munitions Advanced Tech.............          18,518          21,518          21,649          27,518
    Precision guided mortar munition............  ..............  ..............          +6,000          +6,000
    Large footprint sensor evaluation...........  ..............  ..............          -2,869  ..............
    XM-982 [Note: The conferees direct the Army                                                                 
     to assess the potential for accelerating                                                                   
     the XM-982 program and report findings to                                                                  
     the congressional defense committees no                                                                    
     later than January 15, 1995.]..............  ..............          +2,000  ..............          +2,000
    Electro-Rheological Fluid Recoil System.....  ..............          +1,000  ..............          +1,000
Combat Vehicle and Automotive Advanced Tech.....          30,616          31,616          23,842          28,171
    Armored vehicle self protection program                                                                     
     [Note: The conferees direct that the                                                                       
     additional funds are only for the                                                                          
     development of a tank system capable of                                                                    
     close in detection and destruction of high                                                                 
     velocity, low front-end radar cross-section                                                                
     threats such as KE rounds.]................  ..............          +1,000  ..............          +1,000
    Active protection concept...................  ..............  ..............          -3,329  ..............
    Combat vehicle-composites-future vehicle....  ..............  ..............          -3,445          -3,445
Missile and Rocket Advanced Technology..........         123,913         126,413         108,913         118,913
    EFOG-M......................................  ..............  ..............         -15,000          -7,500
    Low cost autonomous attack submunition......  ..............          +2,500  ..............          +2,500
Army Missile Defense Systems Integration........           2,985          30,785           2,985          23,985
    THEL........................................  ..............          +5,000  ..............  ..............
    Nautilus laser..............................  ..............          +5,000  ..............  ..............
    Battle integration center...................  ..............         +17,800  ..............         +21,000
Artillery Propellent Development................          10,946          30,546          21,646          21,946
    Unicharge...................................  ..............         +19,600         +10,700         +11,000
Armored System Modernization--Adv Dev...........         201,513         201,513         176,513         191,513
    FARV Adv development........................  ..............  ..............         -25,000         -10,000

[[Page H 9488]]
                                                                                                                
Comanche [Note: The conferees do not agree to                                                                   
 House language regarding testing at Patuxent                                                                   
 River.]........................................         199,103         199,103         373,103         299,103
Non-System Training Devices--Eng Dev............          55,303          55,303          50,703          52,303
    FSCATT phase 1..............................  ..............  ..............          -3,000          -3,000
    STRICOM and Naval air warfare ctr training..  ..............  ..............          -1,600  ..............
Weapons and Munitions--Eng Dev..................          15,928          17,528          16,428          18,028
    XM 931 (120MM Practice).....................  ..............          +1,600  ..............          +1,600
    Universal brackets or MK19 grenade launchers  ..............  ..............            +500            +500
Non-Cooperative Target Recognition--Eng Dev.....          30,466          30,466          14,139          22,466
    Low cost BCIS study.........................  ..............  ..............          -1,091  ..............
    BCIS hardware build.........................  ..............  ..............         -15,236          -8,000
Base operations--RDT&E [Note: The conferees                                                                     
 direct that no part of the reduction may be                                                                    
 assessed against personnel.]...................         329,978         329,978         319,478         319,478
Combat Vehicle Improvement Program..............         197,669         198,978         202,694         215,003
    Abrams Improvement system enhancement pack..  ..............  ..............          -5,000  ..............
    Abrams Improvement GEN II FLIR/testing......  ..............  ..............          -5,000          -5,000
    Tractor Dump................................  ..............  ..............         +15,025         +15,025
    Abrams transfer.............................  ..............          +1,309  ..............          +1,309
    Test equipment..............................  ..............  ..............  ..............          +6,000
Digitization....................................          88,567          88,567  ..............         100,867
    EXFOR modernization.........................  ..............  ..............          +4,000          +4,000
    AWE--Warrior Focus..........................  ..............  ..............            +500            +500
    AWE--JWID...................................  ..............  ..............          +1,500          +1,500
    ASAS connectivity for TF XXI................  ..............  ..............          +3,300          +3,300
    TF XXI radios and displays..................  ..............  ..............          +5,000          +5,000
    Prior year carryover........................  ..............  ..............          -2,000          -2,000
Missile/Air Defense Product Improvement.........          17,069          26,869          68,869          64,869
    Stinger Block II............................  ..............          +9,800          +9,800          +9,800
    Avenger PIP.................................  ..............  ..............          +3,000          +3,000
    Starstreak evaluation.......................  ..............  ..............          +4,000  ..............
    Patriot anti-cruise missile upgrade.........  ..............  ..............         +35,000         +35,000
Other Missile Product Improvement Programs......          57,949          57,949          65,499          65,499
Hydra-70 PIP [Note: The conferees direct                                                                        
 increase is only for a competitive product                                                                     
 improvement program for the Hydra-70 rocket.]..  ..............  ..............         +10,000         +10,000
    Support and Management costs................  ..............  ..............          -2,450          -2,450
Industrial Preparedness Activities..............  ..............          17,776          23,776          28,776
    Transfer....................................  ..............         +17,776         +17,776         +17,776
    PAN fibers..................................  ..............  ..............          +4,000          +4,000
    Non-metallic rechargeable battery...........  ..............  ..............          +2,000          +2,000
    Instrumented Factory for Gears (INFAC)......  ..............  ..............  ..............          +5,000
----------------------------------------------------------------------------------------------------------------




                university and industry research centers

       The conferees have provided $49,779,000. Included in this 
     amount is $22,847,000 for the Army's new federated labs 
     program. The conferees direct that these funds may only be 
     used to initiate the three federated lab programs which the 
     Army determines are most important to its needs.
       The conferees are concerned that the Army's plan to enter 
     into long term agreements could limit its ability to respond 
     to new ideas and changes in the defense industry. Therefore, 
     the conferees direct that the Army shall not enter into any 
     federated lab agreement or contract which provides for the 
     non-competitive continuation of a federated lab for more than 
     five years. The conferees further direct that the Assistant 
     Secretary of the Army for Research, Development and 
     Acquisition provide a report identifying the three fiscal 
     year 1996 federated labs, the participants, the allocation of 
     funds, the management structure, and the planned research 
     program by March 1, 1996 to the congressional defense 
     committees.


                             ew development

       The conferees understand that funds are included in the 
     budget request for the development of an electronic 
     protection system and encourage the Army to obligate up to 
     $10,300,000 in fiscal year 1996 for the SHORTSTOP project.


                      medical advanced technology

       The conferees agree to provide $75,000,000 for the Army's 
     peer reviewed breast cancer research program. The conferees 
     expect the Army to provide special emphasis to research that 
     addresses the specific needs of military beneficiaries.


             air defense command, control and intelligence

       The conferees provided $2,000,000 in fiscal year 1995 for 
     the evaluation of the Air Defense Alerting Device (ADAD). The 
     conferees direct the Department of Defense to release the 
     fiscal year 1995 funds appropriated for ADAD and proceed with 
     testing.


                         task force xxi soldier

       The conferees agree to provide $30,000,000 for a new 
     project, Task Force XXI Soldier, to accelerate the 
     development of integrated, modular equipment designed for the 
     individual soldier. The Army's strategy to develop and field 
     the interim Land Warrior system and then immediately begin 
     production of the objective GEN II Soldier system appears to 
     be an inefficient allocation of resources. The conferees 
     believe that accelerating the GEN II soldier program will 
     eliminate the need for an interim system allowing the Army to 
     field a more capable system at an earlier date. Therefore, 
     the conferees have consolidated funds from the existing 
     programs to accelerate the GEN II Soldier program and 
     provided additional funds to continue only the Land Warrior 
     efforts necessary to support the objective program. The 
     conferees direct the Assistant Secretary of the Army for 
     Research, Development and Acquisition to provide a report 
     defining a revised acquisition strategy to the congressional 
     defense committees by March 1, 1996.


                      airborne reconnaissance low

       The conferees understand that upgrading the Airborne 
     Reconnaissance Low (ARL) aircraft with the RAH-66 Comanche 
     engine will significantly enhance operational capabilities 
     and reduce support costs. Although no funds were requested in 
     the fiscal year 1996 budget, the conferees encourage the Army 
     to pursue upgrading the ARL engine in fiscal year 1997.


             Research, Development, Test and Evaluation, Navy

       The conference agreement is as follows:

------------------------------------------------------------------------
                         Budget       Senate       Senate     Conference
------------------------------------------------------------------------
RESEARCH DEVELOPMENT                                                    
 TEST & EVAL NAVY:                                                      
    DEFENSE RESEARCH                                                    
     SCIENCES.......      385,917      385,917      373,917      373,917
    SURFACE/                                                            
     AEROSPACE                                                          
     SURVEILLANCE                                                       
     AND WEAPONS                                                        
     TECHNOLOGY.....       32,658       36,658       30,658       34,658
    SURFACE SHIP                                                        
     TECHNOLOGY.....       36,786       46,786       37,860       62,860
    AIRCRAFT                                                            
     TECHNOLOGY.....       22,238       24,738       28,238       30,738
    READINESS,                                                          
     TRAINING, AND                                                      
     ENVIRONMENTAL                                                      
     QUALITY                                                            
     TECHNNOL.......       40,511       45,311       42,511       49,211
    MATERIALS,                                                          
     ELECTRONICS AND                                                    
     COMPUTER                                                           
     TECHNOLOGY.....       74,849       77,849       71,849       78,349
    UNDERSEA                                                            
     SURVEILLANCE                                                       
     WEAPON                                                             
     TECHNOLOGY.....       51,182       51,182       56,982       56,982
    MINE                                                                
     COUNTERMEASURES                                                    
     , MINING AND                                                       
     SPECIAL WARFARE       43,384       51,384       43,384       48,384
    OCEANOGRAPHIC                                                       
     AND ATMOSPHERIC                                                    
     TECHNOLOGY.....       45,526       60,526       49,476       58,376
    AIR SYSTEMS AND                                                     
     WEAPONS                                                            
     ADVANCED                                                           
     TECHNOLOGY.....       17,082       71,082       26,082       71,082
    MEDICAL                                                             
     DEVELOPMENT....       27,754       62,754       27,754       65,754
    ENVIRONMENTAL                                                       
     QUALITY AND                                                        
     LOGISTICS                                                          
     ADVANCED                                                           
     TECHNOLOGY.....       21,504       33,504       25,004       25,004
    UNDERSEA WARFARE                                                    
     ADVANCED                                                           
     TECHNOLOGY.....       51,816       51,816       46,170       48,483
    SHALLOW WATER                                                       
     MCM DEMOS......       80,958       25,000       46,565       40,958
    ADVANCED                                                            
     TECHNOLOGY                                                         
     TRANSITION.....       96,825       78,000       89,325       81,000
    AIR/OCEAN                                                           
     TACTICAL                                                           
     APPLICATIONS...       16,621       19,821       16,621       19,821
    AVIATION                                                            
     SURVIVABILITY..        7,477       16,377        7,477       16,377
    SURFACE AND                                                         
     SHALLOW WATER                                                      
     MINE                                                               
     COUNTERMEASURES       54,527       56,177       54,527       56,177
    ADVANCED                                                            
     SUBMARINE                                                          
     COMBAT SYSTEMS                                                     
     DEVELOPMENT....       21,281       28,181       21,281       28,181
    CARRIER SYSTEMS                                                     
     DEVELOPMENT....       16,164       16,164        9,226       12,764
    NON-ACCOUSTIC                                                       
     ANTI SUBMISSION                                                    
     WARFARE........  ...........  ...........       10,000       10,000
    ADVANCE                                                             
     SUBMARINE                                                          
     SYSTEM                                                             
     DEVELOPMENT....       35,748       55,748       35,748       55,748
    SUBMARINE                                                           
     TACTICAL                                                           
     WARFARE SYSTEM.        5,070        8,570        5,070        8,570

[[Page H 9489]]
                                                                        
    SHIP CONCEPT                                                        
     ADVANCED DESIGN       16,736       53,736       16,736       53,736
    ADVANCED SURFACE                                                    
     MACHINERY                                                          
     SYSTEMS........       39,156       39,156       67,094       82,864
    MARINE CORPS                                                        
     GROUND COMBAT/                                                     
     SUPPORT SYSTEM.       46,733       46,733       46,733       50,933
    RETRACT MAPLE...       82,932       90,932       82,932       87,932
    LINK PLUMERIA...       17,879       21,579       17,879       21,579
    RETRACT ELM.....       32,561       32,561       31,561       31,561
    SHIP SELF                                                           
     DEFENSE........      245,620      365,120      245,620      332,620
    GUN WEAPON                                                          
     SYSTEM                                                             
     TECHNOLOGY.....       12,028       37,028       31,028       34,028
    JOINT ADVANCED                                                      
     STRIKE                                                             
     TECHNOLOGY--DEM/                                                   
     VAL............      149,295      143,795      123,272       83,795
    ASW AND OTHER                                                       
     HELO                                                               
     DEVELOPMENT....       91,803       80,175       99,636       89,636
    AV-8B AIRCRAFT--                                                    
     ENG DEV........       11,309       26,909       11,309       26,909
    S-3 WEAPON                                                          
     SYSTEM                                                             
     IMPROVEMENT....       12,872       27,872       12,872       12,872
    P-3                                                                 
     MODERNIZATION                                                      
     PROGRAM........        1,945       16,945        1,945       16,945
    TACTICAL COMMAND                                                    
     SYSTEM.........       27,389       27,389       24,750       24,750
    V-22A...........      762,548      762,548      757,548      757,548
    AIR CREW SYSTEMS                                                    
     DEVELOPMENT....        9,788       17,688        9,788       17,688
    EW DEVELOPMENT..       87,440       87,440       97,440       97,440
    AEGIS COMBAT                                                        
     SYSTEM                                                             
     ENGINEERING....      105,683       89,883       94,683       94,683
    STANDARD MISSILE                                                    
     IMPROVEMENTS...        8,572        2,572       18,572       18,572
    AIRBORNE MCM....       42,226       42,226       30,468       34,468
    ENHANCED MODULAR                                                    
     SIGNAL                                                             
     PROCESSOR......        8,342       14,842        8,342       14,842
    SUBMARINE COMBAT                                                    
     SYSTEM.........       43,302       37,151       43,302       43,302
    SUBMARINE                                                           
     TACTICAL                                                           
     WARFARE SYSTEM.       38,479       20,487       38,479       38,479
    NAVY TACTICAL                                                       
     COMPUTER                                                           
     RESOURCES......        5,499       15,499        5,499       15,499
    UNGUIDED                                                            
     CONVENTIONAL                                                       
     AIR--LAUNCHED                                                      
     WEAPONS........       40,517       43,517       94,517       53,517
    SHIP SELF                                                           
     DEFENSE........      165,997      201,997      179,297      207,297
    NAVIGATION/ID                                                       
     SYSTEM.........       56,472       56,472       51,104       54,104
    DISTRIBUTED                                                         
     SURVEILLANCE                                                       
     SYSTEM.........       93,507       93,507       93,507      103,507
    STUDIES AND                                                         
     ANALYSIS                                                           
     SUPPORT--NAVY..        9,281        7,000        7,781        7,000
    MANAGEMENT,                                                         
     TECHNICAL &                                                        
     INTERNATIONAL                                                      
     SUPPORT........       20,371       12,000       18,422       18,422
    STRATEGIC                                                           
     TECHNICAL                                                          
     SUPPORT........        3,584        3,000        3,584        3,000
    TEST AND                                                            
     EVALUATION                                                         
     SUPPORT........      245,911      247,911      237,911      239,911
    STRATEGIC SUB &                                                     
     WEAPONS SYSTEM                                                     
     SUPPORT........       39,511       39,511       36,609       36,609
    F/A-18 SQUADRONS      919,484      923,984      919,484      923,984
    E-2 SQUADRONS...       52,965       52,965       52,965       62,965
    TOMAHAWK AND                                                        
     TOMAHAWK                                                           
     MISSION                                                            
     PLANNING CENTER                                                    
     (TMPC).........      141,440      176,440      141,440      170,440
    INTEGRATED                                                          
     SURVEILLANCE                                                       
     SYSTEM.........       16,440       32,640       16,440       32,640
    CONSOLIDATED                                                        
     TRAINING                                                           
     SYSTEMS                                                            
     DEVELOPMENT....       48,058       51,058       65,058       65,058
    F14 UPGRADE.....       44,490       44,490       44,490       19,115
    MARINE CORPS                                                        
     COMBAT SERVICES                                                    
     SUPPORT........        3,915        6,915        3,915        7,415
    SATELLITE                                                           
     COMMUNICATIONS.       38,472       38,472       43,472       38,472
    INDUSTRIAL                                                          
     PREPAREDNESS...  ...........       88,000       41,251       88,000
    CLASSIFIED                                                          
     PROGRAMS.......      539,680      579,680      545,480      585,480
    GENERAL                                                             
     REDUCTION,                                                         
     UNIVERSITY LABS  ...........      -10,000  ...........      -10,000
    FREE ELECTRON                                                       
     LASER PROGRAM..  ...........        9,000  ...........        9,000
------------------------------------------------------------------------



                Explanation of Project Level Adjustments

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Surface/Aerospace Surveillance and Weapons                                                                      
 Technology.....................................          32,658          36,658          30,658          34,658
    Long Range Projectile.......................  ..............          +2,000  ..............          +2,000
    IPHTET/Rocket Propulsion....................  ..............          +2,000  ..............          +2,000
    Theater Defense.............................  ..............  ..............          -2,000          -2,000
Surface Ship Technology.........................          36,786          46,786          37,860          62,860
    Submarine Technology........................  ..............         +10,000  ..............         +10,000
    Submarine Signature Control/ Structural                                                                     
     Systems/ Power and Automation/ and                                                                         
     Maneuvering and Seakeeping.................  ..............  ..............          -4,926          -4,926
    Power Electronic Building Blocks............  ..............  ..............          +6,000          +6,000
    Curved Plate Technology.....................  ..............  ..............  ..............         +15,000
    ITEM for Embedded Test Procedures...........  ..............  ..............         (1,000)         (1,000)
    ITEM for Prototype Advanced Maintenance.....  ..............  ..............         (1,000)         (1,000)
Aircraft Technology.............................          22,238          24,738          28,238          30,738
    Helmet mounted displays.....................  ..............          +2,500  ..............          +2,500
    Vectored thrust ducted propeller technology.  ..............  ..............          +6,000          +6,000
Readiness, Training, and Environmental Quality                                                                  
 Technology.....................................          40,511          45,311          42,511          49,211
    Aircrew chemical-biological protection......  ..............          +4,800  ..............          +4,800
    MERTS.......................................  ..............  ..............          +2,000          +3,900
Materials, Electronic, and Computer Technology..          74,849          77,849          71,849          78,349
    Embedded sensors............................  ..............          +3,000  ..............          +3,000
    C-band telemetry/data link systems..........  ..............  ..............          -3,000          -3,000
    Distributed Manufacturing Demonstration                                                                     
     Project....................................  ..............  ..............  ..............          +3,500
Mine Countermeasures, Mining and Special Warfare          43,384          51,384          43,384          48,384
    RAMICS......................................  ..............          +8,000  ..............          +5,000
Oceanographic and Atmospheric Technology........          45,526          60,526          49,476          58,376
    Oceanographic research......................  ..............         +10,000  ..............         +10,100
    Mapping, charting, geodesy..................  ..............  ..............          +3,700              +0
    PM-10.......................................  ..............  ..............            +250            +250
    POAM-11.....................................  ..............          +5,000  ..............          +2,500
Medical Development.............................          27,754          62,754          27,754          65,754
    Bone marrow.................................  ..............         +24,000  ..............         +24,000
    Prostate cancer.............................  ..............          +7,500  ..............          +7,500
    DOD head injury.............................  ..............          +1,000  ..............          +1,000
    Blood storage...............................  ..............          +1,000  ..............          +1,000
    Naval Biodynamics Laboratory [Note: The                                                                     
     conferees agree to provide 3,000,000 only                                                                  
     for the Naval Biodynamics Laboratory                                                                       
     (NBDL). These funds are to maintain the                                                                    
     level of effort at NBDL so that the lab,                                                                   
     facilities, equipment, and records                                                                         
     (including data bases) can be transferred,                                                                 
     effective October, 1996, to a participating                                                                
     facility which is an integral part of the                                                                  
     Gulf Coast Region Maritime Technology                                                                      
     Center.]...................................  ..............          +1,500  ..............          +3,000
Undersea Warfare Advanced Technology............          51,816          51,816          45,170          48,493
    Shallow water surveillance advanced                                                                         
     technology--littoral warfare advanced                                                                      
     development................................  ..............  ..............          -6,646          -3,323
Shallow Water MCM Demonstrations................          50,958          25,000          46,565          40,958
    Budget growth...............................  ..............         -25,958  ..............         -10,000
    Advanced airborne target designator.........  ..............  ..............          -1,400  ..............
    C4I technology..............................  ..............  ..............          -1,468  ..............
    Surface surveillance, target acquisition and                                                                
     fire control...............................  ..............  ..............          -1,525  ..............
Advanced Technology Transition..................          96,825          78,000          89,325          81,000
    Budget growth...............................  ..............         -18,825  ..............         -18,825
    Tactical aircraft directed IR                                                                               
     countermeasures............................  ..............  ..............          -5,500  ..............
    Dual mission advanced missile airframe......  ..............  ..............          -5,000  ..............
    SLICE.......................................  ..............  ..............          +3,000          +3,000
Carrier Systems Development.....................          16,164          16,164           9,226          12,764
    Zonal electric distribution system..........  ..............  ..............          -2,000  ..............
    Aviation weapons information systems........  ..............  ..............          -1,538  ..............
    Multi-threat magazine protection system.....  ..............  ..............          -1,700          -1,700
    Integrated catapult/ski-jump................  ..............  ..............          -1,700          -1,700
Advanced Surface Machinery Systems..............          39,156          39,156          67,094          82,864
    ICR.........................................  ..............  ..............         +27,938         +41,008
    ICR statutory allocation....................  ..............  ..............        (45,458)             (0)
    Standard monitoring control system [Note:                                                                   
     Conferees agree to provide an additional                                                                   
     $2.7 million, a total of $6.2 million, for                                                                 
     the standard monitoring control system.]...  ..............  ..............  ..............          +2,700
Marine Corps Ground Combat Support System.......          46,733          46,733          46,733          50,933
    Light weight 155mm howitzer.................  ..............  ..............  ..............          +4,200

[[Page H 9490]]
                                                                                                                
Ship Self Defense...............................         245,620         365,120         245,620         332,620
    NRL P-3.....................................  ..............         +26,500  ..............         +26,500
    Fleet P-3...................................  ..............         +11,500  ..............         +11,500
    E-2 CEC.....................................  ..............          +8,000  ..............          +5,500
    Patriot/THAAD/CORPSAM CEC...................  ..............         +20,000  ..............          +5,000
    Hawk CEC....................................  ..............         +15,000  ..............          +3,000
    AWACS CEC...................................  ..............         +10,000  ..............         +11,000
    National sensors CEC........................  ..............          +4,000  ..............          +4,000
    FACT high definition systems................  ..............          +4,500  ..............          +4,500
    Multisensor fusion (St. Inigoes)............  ..............          +4,000  ..............  ..............
    AN/UYQ-70...................................  ..............         +16,000  ..............         +16,000
Gun Weapon System Technology....................          12,028          37,028          31,028          34,028
    Naval surface fire support..................  ..............         +25,000         +19,000         +22,000
Joint Advanced Strike Technology................         149,295         143,795         123,272          83,795
    General reduction...........................  ..............         -25,500         -51,023         -65,500
    Engine competition..........................  ..............         +20,000  ..............  ..............
    A/F-117X [Note: Conferees direct that no                                                                    
     reduction be made to the $7 million                                                                        
     budgeted and appropriated for alternate                                                                    
     engine activities.]........................  ..............  ..............         +25,000  ..............
ASW and Other Helicopter Development............          91,803          80,175          99,636          89,636
    AH-1W.......................................  ..............         -11,628         -11,628  ..............
    ALFS........................................  ..............  ..............          -2,167          -2,167
    4BW/4BH.....................................  ..............  ..............         +21,628         +11,628
AV-8B...........................................          11,309          26,909          11,309          26,909
    Engineering and manufacturing development...  ..............         +15,600  ..............         +15,600
S-3 Weapon System Improvement Program...........          12,872          12,872          12,872          12,872
    Gray Wolf...................................  ..............         +15,000  ..............  ..............
P-3 Modernization Program.......................           1,945          16,945           1,945          16,945
    AIP.........................................  ..............         +12,000  ..............         +12,000
    Stores management...........................  ..............          +3,000  ..............          +3,000
Airborne Mine Countermeasures...................          42,226          42,226          30,468          34,468
    Airborne laser mine detection system [Note:                                                                 
     $18,262,000 is available only for Magic                                                                    
     Lantern.]..................................  ..............  ..............         -11,758          -7,758
Unguided Conventional Air Launched Weapons......          40,517          43,517          94,517          53,517
    SLAM-ER.....................................  ..............          +3,000  ..............          +3,000
    SLAM on Air Force platforms.................  ..............  ..............         +54,000         +10,000
Ship Self-Defense...............................         165,997         201,997         179,297         207,297
    Test ship...................................  ..............          +7,900  ..............          +7,900
    QRCC........................................  ..............          +2,500  ..............          +2,500
    ESM.........................................  ..............          +4,500  ..............          +4,500
    IRST........................................  ..............          +9,500          +9,500          +9,500
    SPQ-9.......................................  ..............          +4,800  ..............          +4,800
    ESSM........................................  ..............          +6,800          -8,200  ..............
    Multi-sensor integration....................  ..............  ..............          +4,000          +4,100
    NULKA.......................................  ..............  ..............          +8,000          +8,000
Distributed Surveillance System.................          93,507          93,507          93,507         103,507
    FDS--Deployable [Note: Conferees agree to                                                                   
     provide $10 million for refurbishment of an                                                                
     existing FDS-D and for procurement of                                                                      
     additional spare clusters.]................  ..............  ..............  ..............         +10,000
Studies and Analysis Support....................           9,281           7,000           7,781           7,000
    Growth......................................  ..............          -2,281  ..............            -781
    CVLA........................................  ..............  ..............          -1,500          -1,500
Test and Evaluation Support.....................         245,911         247,911         237,911         239,911
    NDI safety/survivability....................  ..............          +2,000  ..............          +2,000
    Program reduction [Note: Conferees direct                                                                   
     that no part of the general reduction shall                                                                
     be assessed against personnel.]............  ..............  ..............          -8,000          -8,000
F/A-18 Squadrons................................         919,484         923,984         919,484         923,984
    BOL chaff [Note: $4.5 million is only to                                                                    
     integrate BOL chaff on F/A-18C/D series                                                                    
     aircraft...................................  ..............          +4,500  ..............          +4,500
E-2 Squadrons...................................          52,965          52,965          52,965          62,965
    E-2 Radar Modernization Program.............  ..............  ..............  ..............         +10,000
Tomahawk and Tomahawk Mission Planning Center...         141,440         176,440         141,440         170,440
    Tomahawk Block IV...........................  ..............         +25,000  ..............         +25,000
    Joint targeting testbed [Note: $4 million                                                                   
     for testbed is only for studies.]..........  ..............         +10,000  ..............          +4,000
Consolidated Training Systems Development.......         +48,058         +51,058         +65,058         +68,058
    Outboard trainer............................  ..............          +3,000  ..............          +3,000
    PMRF shallow water range....................  ..............  ..............         +17,000         +17,000
F-14 Upgrade....................................          44,490          44,490          44,490          19,115
    JDAM integration............................  ..............  ..............  ..............         -25,375
Marine Corps Combat Services Support............           3,915           6,915           3,915           7,415
    All terrain vehicle.........................  ..............          +3,000  ..............  ..............
    Medium tactical vehicle replacement [Note:                                                                  
     Conferees direct that funds for the medium                                                                 
     tactical vehicle replacement may only be                                                                   
     used for the cargo variant.]...............  ..............  ..............  ..............          +3,500
Satellite Communications........................          38,472          38,472          43,472          38,472
    Commercial direct broadcast [Note: Conferees                                                                
     do not agree to the Senate language on the                                                                 
     global broadcast service.].................  ..............  ..............          +5,000  ..............
Industrial Preparedness.........................  ..............          88,000          41,251          88,000
    Transfer....................................  ..............         +41,251         +41,251         +41,251
    Generic increase............................  ..............         +36,749  ..............         +36,749
    Electro-optics [Note: The conference                                                                        
     agreement includes $10 million to continue                                                                 
     a multi-year effort in partnership with                                                                    
     U.S. manufacturers to develop advanced                                                                     
     electro-optic manufacturing technologies                                                                   
     aimed at developing lower cost and                                                                         
     technologically superior U.S. weaponry.                                                                    
     This program was authorized in the 1996                                                                    
     House National Defense Authorization bill.]  ..............         +10,000  ..............         +10,000
----------------------------------------------------------------------------------------------------------------




                           ship self-defense

       The conferees do not agree to the House bill language on 
     ship self-defense programs, as there is now agreement between 
     the Congress and the Defense Department on the direction of 
     the affected programs. This action should not be construed as 
     a diminution of Congressional support for achieving robust 
     self-defense capabilities on Navy ships, particularly on the 
     LPD-17 class, as soon as possible.


                        surface ship technology

       The conferees believe recent efforts to develop state-of-
     the-art curved plate technology for constructing large double 
     hull tankers hold promise to significantly reduce 
     construction costs and provide an improved level of safety 
     and performance for navy tanker vessels. The conference 
     agreement includes $15,000,000 only to complete the 
     development, design, construction and testing of full scale 
     prototype equipment essential to evaluating and deploying 
     this technology. Funds are to be used for detailed design and 
     construction of full scale prototype equipment for curved 
     plate panel forming, coating, subassembly and final welding.


                oceanographic and atmospheric technology

       The conferees agree to provide $10,000,000 for 
     oceanographic research as recommended by the House. These 
     funds are available only for collaborative research for the 
     continued development, integration and application of cost-
     effective underwater multisensing systems (physical, 
     chemical, optical, and acoustic) and unmanned underwater 
     vehicles for continental shelf oceanographic measurements for 
     mine countermeasures and other oceanographic applications, 
     both fundamental and applied. These funds are to continue the 
     project explained in House report 103-254, whose focus is on 
     in-situ oceanographic sensors, fusion of multiple sensors, 
     reconfigurability, interoperability to achieve low cost, 
     reduced size and flexible payload/platform systems, adaptive 
     capabilities for extended deployments, and navigation by 
     self-convergent approaches using onboard sensors and 
     intelligent control.


                    joint advanced strike technology

       Due to a recent restructure of the JAST program, there is 
     now $131,000,000 in the fiscal year 1996 budget that is for 
     work to be accomplished in fiscal year 1997. Such work should 
     be budgeted in that year. The conferees agree to this 
     reduction in the Navy and Air Force accounts, and direct that 
     the Office of the Secretary of Defense ensure that the fiscal 
     year 1997 budget to Congress includes a restoration of these 
     funds.


                            f/a-18 squadrons

       The conferees agree to provide an additional $4,500,000 
     only for BOL chaff as recommended by the House. These funds 
     are only to complete certification of the BOL chaff system on 
     the F/A-18C/D series aircraft.


                             e-2 squadrons

       The conferees have provided an increase of $10,000,000 only 
     to support evaluation of technologies for an E-2 radar 
     modernization program (RMP). The conferees support an 
     expansion of current development and test efforts at a site 
     which permits elevated testing of an ADS-18S antenna and is 
     involved with evaluation of space time adaptive processing 
     (STAP) algorithms. Based on analysis and testing completed to 
     date, the Navy has concluded that upgrades to the E-2 can 
     provide substantial warfighting improvements in a 

[[Page H 9491]]
     littoral environment. The conferees direct that the additional funds 
     shall only be available for radar development work, antenna 
     testing and site enhancements in conjunction with ongoing 
     efforts.


                  lcac service life extension program

       The conferees agree to provide $37,000,000 as recommended 
     by the House for advanced planning and engineering of a 
     Landing Craft Air Cushion (LCAC) service life extension 
     program. The program will include component improvements and 
     structural modifications to reduce maintenance costs, meet 
     increased lift requirements, and restore growth margins. 
     Modifications will be incorporated into the last craft during 
     production and into existing fleet craft beginning in fiscal 
     year 1996 as an expansion of the current corrosion control 
     effort.


              intercooled recuperative gas turbine engine

       The conferees agree to provide $41,008,000 for the 
     continued development of the Intercooled Recuperative (ICR) 
     gas turbine engine. This includes the amount requested in the 
     budget and additional funds for the recuperator recovery plan 
     and the U.S. test site.


                        navy range support ship

       In the process of restructuring its fleet of oceanographic 
     research vessels, the Navy recently decided that the 
     Kaimalino would not be part of the future Navy oceanographic 
     fleet. The conferees are aware of a plan for the Pacific 
     Missile Range Facility (PMRF) to acquire the Kaimalino to 
     support operational training needs as well as research and 
     development programs, such as Navy Upper and Lower Tier 
     Patriot, and THAAD. The conferees believe this would be an 
     effective use of the Kaimalino. The conferees direct the Navy 
     to review PMRF's request and to report to the Committees on 
     Appropriations prior to taking any other action on the ship. 
     The conferees further direct that the reuse of the Kaimalino 
     shall have no effect on other ships in the Navy's 
     oceanographic fleet.


          RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL AF                                                                             
    DEFENSE RESEARCH SCIENCES...................         239,893         254,393         230,478         239,978
    MATERIALS...................................          74,534          71,000          74,534          74,534
    AEROSPACE FLIGHT DYNAMICS...................          66,268          62,768          60,799          63,100
    HUMAN SYSTEMS TECHNOLOGY....................          90,311          86,911          75,311          86,911
    AEROSPACE PROPULSION........................          78,592          81,592          72,070          75,070
    AEROSPACE AVIONICS..........................          74,256          74,256          66,601          68,500
    HYPERSONIC TECHNOLOGY PROGRAM...............          19,900          19,900          16,900          19,900
    ADVANCED WEAPONS............................         124,446         130,446         130,746         136,746
    COMMAND CONTROL AND COMMUNICATIONS..........          98,477          96,477          98,477          96,477
    ADVANCED MATERIALS FOR WEAPON SYSTEMS.......          23,283          25,283          28,283          30,283
    CREW SYSTEMS AND PERSONNEL PROTECTION                                                                       
     TECHNOLOGY.................................          18,953          21,953          18,953          21,953
    ADVANCED AVIONICS INTEGRATION...............          20,421          17,621          20,421          17,621
    EW TECHNOLOGY...............................          25,079          20,079          25,079          22,579
    SPACE AND MISSILE ROCKET PROPULSION.........          15,302          20,203          15,203          20,203
    BALLISTIC MISSILE TECHNOLOGY................           3,085           8,785           8,085           8,785
     ADVANCED SPACECRAFT TECHNOLOGY.............          32,627          83,627          52,627          78,627
    CONVENTIONAL WEAPONS TECHNOLOGY.............          31,637          34,137          31,637          34,137
    ADVANCED RADIATION TECHNOLOGY...............          47,919          47,919          74,919          74,919
    CIVIL AND ENVIRONMENTAL ENGINEERING                                                                         
     TECHNOLOGY.................................           9,835           7,835           9,835           8,835
    ADVANCED COMPUTING TECHNOLOGY...............          11,005          36,605          11,005          36,605
    POLAR SATCOM................................  ..............  ..............          68,331          58,000
    NATIONAL POLAR-ORBITING OPERATIONAL                                                                         
     ENVIRONMENTAL SATE.........................          23,861          18,861          13,861          18,861
    SPACE BASED INFRARED ARCHITECTURE (SBIR)--                                                                  
     DEM/VAL....................................         130,744         230,744         265,744         265,744
    JOINT ADVANCED STRIKE TECHNOLOGY--DEM/VAL...         151,186         125,686          85,258          85,686
    INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.          20,265          20,265          31,765          31,765
    B-1B........................................         173,838         197,438         187,438         202,438
    C-17 PROGRAM................................          85,753          85,753          42,353          73,803
    F-22/EMD....................................       2,138,718       2,338,718       2,338,718       2,238,718
    NIGHT/PRECISION ATTACK......................           8,708           8,707          20,708          20,708
    SPACE BASED INFRARED ARCHITECTURE (SBIR)--                                                                  
     EMD........................................         152,219         152,219         162,119         172,219
    MILSTAR LDR/MDR SATELLITE COMMUNICATIONS....         649,666         649,666         591,666         577,666
    JOINT STANDOFF WEAPONS SYSTEMS..............          44,025          44,025          40,802          44,025
    COMPUTER RESOURCE TECHNOLOGY TRANSITION                                                                     
     (CRTT).....................................           2,166           2,166          20,366           9,166
    JOINT SURVEILLANCE/TARGET ATTACK RADAR                                                                      
     SYSTEM (JSTARS)............................         169,702         189,702         162,202         182,202
    SPACE TEST PROGRAM..........................          57,710          57,710          39,572          47,000
    THREAT SIMULATOR DEVELOPMENT................          53,377          53,377          65,877          58,877
    NAVIGATION/RADAR/SLED TRACK TEST SUPPORT....  ..............           3,000  ..............           3,000
    TEST AND EVALUATION SUPPORT.................         454,067         444,167         430,167         434,167
    ENVIRONMENTAL CONSERVATION..................          14,169           4,169          14,169           4,169
    ROCKET SYSTEMS LAUNCH PROGRAM (RSLP)........           5,949           5,949          22,749          22,749
    BASE OPERATIONS--RDT&E......................         117,083         120,683         126,983         123,983
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT                                                                       
     PROGRAM....................................         103,700         101,730         135,200         133,230
    B-52 SQUADRONS..............................          16,505          16,505          25,505          21,005
    F-16 SQUADRONS..............................         175,600         175,600         177,600         175,600
    F-15E SQUADRONS.............................         171,337         171,337         169,237         171,337
    MANNED DESTRUCTIVE SUPPRESSION..............           2,908           2,908          10,908          10,908
    JASSM.......................................  ..............  ..............          50,000          25,000
    ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE                                                                    
     (AMRAAM)...................................          42,311          50,311          37,211          47,311
    THEATER BATTLE MANAGEMENT (TBM) C4I.........          24,813          29,813          24,813          29,813
    ADVANCED SYSTEMS IMPROVEMENTS...............         105,548         105,548         105,548          63,748
    THEATER MISSILE DEFENSES....................          25,102          25,102          53,102          25,102
    SATELLITE CONTROL NETWORK...................          89,717          82,717          84,617          84,617
    TITAN SPACE LAUNCH VEHICLES.................         140,514         140,514         135,514         135,514
    NAVSTAR GLOBAL POSITIONING SYSTEM (SPACE AND                                                                
     CONTROL S).................................          26,921          26,921          25,921          25,921
    NCMC--TW/AA SYSTEM..........................          60,897          60,897          68,797          68,797
    SPACETRACK..................................          35,583          35,583          57,883          58,383
    DEFENSE SUPPORT PROGRAM.....................          43,672          43,672          37,441          37,441
    NUDET DETECTION SYSTEM......................          16,227          13,277          16,277          13,277
    INDUSTRIAL PREPAREDNESS.....................  ..............          53,332          60,932          60,932
    CLASSIFIED PROGRAMS.........................       3,203,479       3,310,979       3,249,279       3,339,129
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences.......................         239,893         254,393         230,478         239,978
    Center for Astronomical Adaptive Optics.....  ..............          +5,000          +5,000          +5,000
    Joint Seismic Research......................  ..............          +9,500  ..............          +9,500
    Program Reduction...........................  ..............  ..............         -14,415         -14,415
Aerospace Flight Dynamics.......................          66,268          62,768          60,799          63,100
    Aeromechanics...............................  ..............  ..............          -5,469          -3,168
Aerospace Propulsion............................          78,592          81,592          72,070          75,070
    Thermally Stable Jet Fuels..................  ..............          +3,000  ..............          +3,000
    Program Reduction...........................  ..............  ..............          -6,522          -6,522
Advanced Weapons................................         124,446         130,446         130,746         136,746
    Rocket Propulsion Technology................  ..............          +6,000  ..............          +6,000
    High Frequency Active Auroral Research......  ..............  ..............          +5,000          +5,000
    AEOS Spectrograph...........................  ..............  ..............          +1,300          +1,300
Advanced Materials for Weapon Systems...........          22,283          25,283          28,283          30,283
    Infrared Signature Control..................  ..............          +2,000  ..............          +2,000
    Metal Fatigue Monitoring Technology.........  ..............  ..............          +5,000          +5,000
Advanced Spacecraft Technology..................          32,627          83,627          52,627          78,627
    Reusable Launch Vehicle Technology..........  ..............         +50,000  ..............         +25,000
    Miniature Threat Reporting System...........  ..............          +1,000  ..............          +1,000

[[Page H 9492]]
                                                                                                                
    Microsat....................................  ..............  ..............         +20,000         +20,000
B-1B............................................         173,838         197,438         187,438         202,438
    JDAM Integration............................  ..............          +7,000          +7,000          +7,000
    ECM Risk Reduction..........................  ..............          +6,600          +6,600          +6,600
    PGM.........................................  ..............         +10,000  ..............         +15,000
SBIR-EMD........................................         152,219         152,219         162,119         172,219
    Other Procurement Transfer..................  ..............  ..............          +9,900         +20,000
Computer Resource Tech Transition...............           2,166           2,166          20,366           9,166
    Software Design for Reliability and Reuse...  ..............  ..............          +3,000          +5,000
    CARDS.......................................  ..............  ..............  ..............          +2,000
    IMDS........................................  ..............  ..............         +15,200  ..............
Joint Surveillance/Target Attack Radar..........         169,702         189,702         162,202         182,202
    REA.........................................  ..............  ..............         -12,000         -12,000
    NATO JSTARS Project Office..................  ..............  ..............          +4,500          +4,500
    Data Link/Dissemination Technologies........  ..............         +20,000  ..............         +20,000
Aircraft Engine Component Improvement Program...         103,700         101,730         135,200         133,200
    B-2.........................................  ..............          -1,970  ..............          -1,970
    RC-135 Re-engining NRE......................  ..............  ..............         +31,500         +31,500
Threat Simulator Development....................          53,377          53,377          65,877          58,877
    ECIT Infrastructure.........................  ..............  ..............          -3,100          -3,100
    REDCAP......................................  ..............  ..............         +15,600          +8,600
Test and Evaluation Support.....................         454,067         444,167         430,167         434,167
    AF T&E Transfer.............................  ..............          -9,900          -9,900          -9,900
    Program Reduction [Note: The conferees                                                                      
     direct that no part of the reduction may be                                                                
     assessed against personnel.]...............  ..............  ..............         -14,000         -10,000
Base Operations--RDT&E..........................         117,083         120,683         126,983         123,983
    Test and Evaluation Transfer................  ..............          +9,900          +9,900          +9,900
    Growth Reduction............................  ..............          -6,300  ..............          -3,000
Satellite Control Network [Note: The conferees                                                                  
 direct the Air Force to use unobligated fiscal                                                                 
 year 1995 funds allocated for special projects                                                                 
 to fund fiscal year 1996 general program                                                                       
 requirements.].................................          89,717          82,717          84,617          84,617
Space Track.....................................          35,583          35,583          57,883          58,383
    Air Force Maui Optical Station..............  ..............  ..............          +5,300          +5,300
    Advanced Electro-Optical System (AEOS)......  ..............  ..............         +17,000         +17,000
    AEOS Site Characterization..................  ..............  ..............  ..............            +500
Defense Support Program [Note: The conferees                                                                    
 direct that the reduction shall only be                                                                        
 assessed against engineering change orders and                                                                 
 management support.]...........................          43,672          43,672          37,441          37,441
----------------------------------------------------------------------------------------------------------------




               space based infrared architecture--DEM/VAL

       The conferees agree to provide $265,744,000 for the 
     demonstration/validation stage of the space based infrared 
     architecture program, an increase of $135,000,000 to the 
     budget request. The conferees have agreed to provide the 
     additional $135,000,000 to accelerate development of the 
     space missile tracking system (SMTS), formerly known as 
     Brilliant Eyes. The additional funds provided for the program 
     shall be used only for efforts identified jointly by both the 
     Ballistic Missile Defense Organization and the Air Force to 
     accelerate the deployment of SMTS.


                                  b-1b

       The conferees agree to provide $202,438,000 for the B-1B 
     upgrade program, an increase of $28,600,000 to the budget 
     request. The additional funding includes an increase of 
     $7,000,000 for B-1B JDAM integration, an increase of 
     $6,600,000 for ECM risk reduction activities, and $15,000,000 
     for efforts to equip the bomber with precision guided 
     munitions, including the B-1B virtual umbilical demonstration 
     (BVUD). The conferees agree that none of the funding used for 
     BVUD may be obligated until the Commander of the Air Combat 
     Command and the Air Force Director of Operational 
     Requirements certify to the appropriations committees that 
     (a) a documented requirement for BVUD exists; and (b) that 
     BVUD will be incorporated as part of the B-1B conventional 
     upgrade program.
       The conferees also direct that the Commander of the Air 
     Force Operational Test and Evaluation Center provide a report 
     no later than March 15, 1996 on the test and evaluation plan 
     for BVUD and other precision guided munitions demonstrations. 
     Finally the conferees direct the Department of the Air Force 
     to consider other available alternatives to providing 
     precision guided capability for the Mk-82 munition with the 
     additional funding provided.


                                  c-17

       The conferees agree to provide $73,803,000 for continued 
     development of the C-17 advanced transport aircraft, a 
     decrease of $11,950,000 to the budget request. The conferees 
     direct that these funds be allocated as follows: flight test 
     support, $17,850,000; T-1 refurbishment, $11,700,000; 
     aircraft structural integrity, $11,000,000; mission support, 
     $10,900,000; aircraft armor, $5,000,000; flight test hours, 
     $4,000,000; automatic communications processor; $4,000,000; 
     station-keeping equipment, $1,300,000; passenger oxygen mask 
     improvements, $1,000,000; enhanced aeromedical litters, 
     $1,000,000; cargo compartment heating, $600,000; troop seats, 
     $553,000; GPS integrity monitoring, $500,000; airlift 
     defensive system survivability study, $400,000; signature 
     reduction study, $400,000.
       The conferees agree with Senate's direction regarding crew 
     armor.


                sensor fuzed weapon product improvement

       The House and Senate both included $10,000,000 in their 
     respective bills to begin a product improvement program for 
     the Sensor Fuzed Weapon (SFW). The conferees direct the Air 
     Force to program those funds required in the outyears to 
     complete development of these improvements. Currently 
     programmed SFW production funds shall not be used as a source 
     for the required development funds. The conferees strongly 
     urge the Air Force to begin this development as soon as 
     possible and to examine ways to streamline and shorten the 
     effort.
       The conferees also agree with the Senate requirement for a 
     reevaluation, to be submitted no later than May 1, 1996, of 
     total inventory needs for smart munitions.


             joint surveillance/target attack radar system

       The conferees agree with the Senate position regarding 
     funds for both the Air Force and the Army to continue 
     development and procurement of the Joint Surveillance/Target 
     Attack Radar system, with the exception of restoring 
     $6,100,000 of the Senate recommended reduction to the Air 
     Forces procurement request. The conferees direct that the 
     restored funds are available only to pay over and above 
     expenses for repair actions during aircraft refurbishment. 
     The reduction recommended by the conferees shall only be 
     assessed against the funds originally identified in budget 
     justification materials as allocated for engineering change 
     orders.
       In addition, the conferees direct that $12,000,000 in 
     fiscal year 1995 research, development, test and evaluation 
     funds allocated to an unadjudicated Request for Equitable 
     Adjustment is only available to support fiscal year 1996 
     development requirements.
       The conferees further agree with the Senate requirements 
     regarding the NATO Alliance Ground Surveillance (AGS) 
     program.


                             b-52 squadrons

       The conferees agree to provide $21,005,000 for B-52 
     development, an increase of $4,500,000 to the budget request. 
     The additional funding is only for integration of the AGM-130 
     munition onto B-52 bombers. The conferees direct that not 
     more than $1,000,000 may be obligated until the Secretary of 
     the Air Force certifies that there is a validated operational 
     requirement for the weapon and reports to the Committees on 
     Appropriations about the annual and total costs, schedule, 
     technical risks, and operational considerations of such 
     integration.


                 joint-air-to-surface standoff missile

       The conferees agree to provide $25,000,000 to initiate the 
     Joint-Air-to-Surface Standoff Missile (JASSM) program. The 
     conferees agree to the Senate requirements regarding a report 
     and a cost and operational effectiveness analysis. However, 
     the Senate proposed obligation restrictions are not required. 
     The required report is due no later than June 1, 1996.


                      threat simulator development

       The conferees direct that none of the funds available for 
     the Real-Time Electromagnetic Digitally Controlled Analyzer 
     and Processor (REDCAP) may be used to fund any activities 
     which would produce permanent improvements which could not be 
     relocated in accordance with the Base Realignment and Closure 
     (BRAC) decision to move this facility.

        Research, Development, Test and Evaluation, Defense-Wide

       The conference agreement is as follows:

                                                                                                                

[[Page H 9493]]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL DEFWIDE                                                                        
    DEFENSE RESEARCH SCIENCES...................          89,732          84,732          86,332          81,332
    UNIVERSITY RESEARCH INITIATIVES.............         236,165         221,165         231,165         231,165
    FOCUSED RESEARCH INITIATIVES................          14,009           9,009  ..............           9,009
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....          23,947          28,547          23,947          28,547
    COUNTERPROLIFERATION SUPPORT................           9,952          14,452           9,952          14,452
    MEDICAL FREE ELECTION LASER.................          13,258          13,528          26,258          26,258
    LINCOLN LABORATORY RESEARCH PROGRAM.........          19,903          10,000          19,903          12,903
    COMPUTING SYSTEMS AND COMMUNICATIONS                                                                        
     TECHNOLOGY.................................         403,875         402,876         372,525         396,325
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....          60,665          84,165          58,515          68,515
    TACTICAL TECHNOLOGY.........................         113,168         132,168         117,718         130,718
    INTEGRATED COMMAND AND CONTROL TECHNOLOGY...          48,000          50,000          48,000          50,000
    MATERIALS AND ELECTRONICS TECHNOLOGY........         226,045         236,045         235,145         248,145
    DEFENSE NUCLEAR AGENCY......................         219,003         231,703         237,003         237,703
    DEFENSE HEALTH RESEARCH AND DEVELOPMENT.....  ..............  ..............         120,000          20,000
    NATIONAL MISSILE DEFENSE--DEM/VAL...........         370,621         820,621         670,621         745,621
    CORPS SURFACE-TO-AIR MISSILE--TMD--DEM/VAL..          30,442          20,442  ..............          20,442
    SUPPORT TECHNOLOGIES/FOLLOW-ON TECHNOLOGIES--                                                               
     ADVANCE....................................          79,387          79,387         149,387         129,387
    OTHER THEATER MISSILE DEFENSE/FOLLOW-ON TMD                                                                 
     ACTIVITIES.................................         460,470         423,470         475,470         438,470
    BALLISTIC MISSILE DEFENSE RDT&E PROGRAM                                                                     
     MANAGEMENT AND.............................         185,542         165,542         155,542         155,542
    PATRIOT PAC-3 THEATER MISSILE DEFENSE                                                                       
     ACQUISITION--EM............................         247,921         247,921         352,421         352,421
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--                                                                 
     TMD--EMD...................................  ..............          50,000  ..............  ..............
    COUNTERTERROR TECHNICAL SUPPORT.............          12,044          24,044          12,044          18,244
    COUNTERPROLIFERATION SUPPORT--ADV DEV.......          55,331          55,331          65,331          65,331
    ASAT PROGRAM................................  ..............  ..............          30,000          30,000
    JOINT DOD-DOE MUNITIONS TECHNOLOGY                                                                          
     DEVELOPMENT................................          16,799          16,799          21,799          21,799
    EXPERIMENTAL EVALUATION OF MAJOR INNOVATIVE                                                                 
     TECHNOLOGIES...............................         618,005         671,006         576,405         613,705
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--                                                                   
     ADVANCED DEV...............................          25,684          38,284          21,686          35,684
    ADVANCED SUBMARINE TECHNOLOGY...............           7,473          30,473          13,973          30,473
    DEFENSE REINVESTMENT........................         500,000  ..............         238,000         195,000
    STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM....          58,435          58,155          58,435          58,156
    JOINT TECHNOLOGY INSERTION PROGRAM..........           4,976           4,976  ..............           3,476
    CALS INITIATIVE.............................           6,545           6,545          25,745          25,745
    COOPERATIVE DOD/VA MEDICAL RESEARCH.........  ..............  ..............          25,000          25,000
    ADVANCED ELECTRONICS TECHNOLOGIES...........         419,863         434,863         388,718         409,018
    SEMICONDUCTOR MANUFACTURING TECHNOLOGY......          89,554  ..............          89,554          39,000
    MARITIME TECHNOLOGY.........................          49,657          63,957          49,657          49,657
    ELECTRIC VEHICLES...........................  ..............  ..............          15,000          15,000
    ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS..          63,251          32,251          59,851          48,251
    HIGH PERFORMANCE COMPUTING MODERNIZATION                                                                    
     PROGRAM....................................          89,682          89,682         119,682         119,682
    INDUSTRIAL PREPAREDNESS MANUFACTURING                                                                       
     TECHNOLOGY.................................           7,007           7,007  ..............  ..............
    JOINT ADVANCED STRIKE TECHNOLOGY--DEM/VAL...          30,675          30,675          18,775          30,678
    JOINT ROBOTICS PROGRAM......................          17,382          22,382          23,115          22,382
    ADVANCED SENSOR APPLICATIONS PROGRAM........          25,923          35,923          25,923          25,923
    NATO RESEARCH AND DEVELOPMENT...............          45,642  ..............          28,500          23,500
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--DEM/                                                               
     VAL........................................          32,461          36,861          29,661          34,061
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--EMD          95,324         107,324          91,617          91,617
    GENERIC LOGISTICS R&D TECHNOLOGY                                                                            
     DEMONSTRATIONS.............................          16,800          16,800          12,300          12,300
    TECHNICAL STUDIES, SUPPORT AND ANALYSIS.....          39,302          24,302          24,372          34,302
    TECHNICAL ASSISTANCE........................           4,927           4,927  ..............  ..............
    SMALL BUSINESS INNOVATIVE RESEARCH                                                                          
     ADMINISTRATION.............................           1,574           1,574  ..............           1,574
    DEFENSE SUPPORT ACTIVITIES..................          14,752          14,752          17,752          17,752
    COUNTERDRUG INTELLIGENCE SUPPORT............  ..............  ..............           7,000           7,000
    INDUSTRIAL PREPAREDNESS.....................  ..............  ..............           7,007           7,007
    INFORMATION SYSTEMS SECURITY PROGRAM........          23,884          23,884          17,414          17,414
    DMA MAPPING, CHARTING, AND GEODESY (MC&G)                                                                   
     PRODUCTIONS................................          80,131          80,131          92,745          74,745
    DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.....         515,148         612,048         391,148         604,448
    C3I INTELLIGENCE PROGRAMS...................           7,907           7,907           9,907           9,907
    SPECIAL OPERATIONS ADVANCED TECHNOLOGY                                                                      
     DEVELOPMENT................................          13,288          14,788          19,288          15,788
    SPECIAL OPERATIONS TACTICAL SYSTEMS                                                                         
     DEVELOPMENT................................         101,602         105,602         109,895         112,395
    CLASSIFIED PROGRAMS.........................       1,194,090       1,188,421       1,227,090       1,225,601
----------------------------------------------------------------------------------------------------------------



----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences.......................          89,732          84,732          86,332          81,332
    Authorization adjustments...................  ..............          -5,000  ..............          -5,000
    Material Sciences--Bioremediation...........  ..............  ..............          -3,400          -3,400
University Research Initiatives.................         236,165         221,165         231,165         231,165
    Authorization adjustment....................  ..............  ..............         -15,000  ..............
    Combat readiness research...................  ..............  ..............         +10,000         +10,000
    DEPSCOR.....................................  ..............         +20,000        (20,000)         +20,000
    Reduction...................................  ..............         -35,000  ..............         -35,000
Focused Research Initiatives [Note: The                                                                         
 conferees agree to provide $9,009,000 for                                                                      
 Focused Research Initiatives. The conferees                                                                    
 agree that priority should be given to new                                                                     
 materials research and continuing programs                                                                     
 already initiated in conjunction with the                                                                      
 National Medical Technology Testbed.]..........          14,009           9,009  ..............           9,009
    Program reduction or deferral...............  ..............  ..............         -14,009  ..............
Computing Systems and Communications Technology.         403,875         402,875         372,525         396,325
    Planning and decision aids..................  ..............  ..............          -3,200  ..............
    Human computer interaction..................  ..............  ..............          -6,100  ..............
    Evoluntary design of complex software.......  ..............  ..............          -4,000  ..............
    High Performance Computing Defense Info                                                                     
     enterprise.................................  ..............  ..............         -24,800  ..............
    Defensive Information Warfare...............  ..............  ..............          -5,000          -5,000
    Interoperative Intelligent Metacomputing                                                                    
     Testbed....................................  ..............  ..............          +8,000          +8,000
    Asset Source for Software Engineering                                                                       
     Technology.................................  ..............  ..............          +3,750          +3,750
    Nuclear Monitoring Technology...............  ..............         +11,000  ..............         +11,000
    Software Managers Network...................  ..............         +10,000  ..............         +10,000
    Natural Language Text.......................  ..............           5,000  ..............          +5,000
    Global Broadcast Service....................  ..............          +8,000  ..............          +8,000
    Seismic Monitoring Research.................  ..............         +10,000  ..............  ..............
    High Performance Computing..................         -25,000  ..............  ..............         -35,000
    Program Reduction...........................  ..............  ..............  ..............         -13,300
Chemical and Biological Defense System..........          60,665          84,165          58,515          68,515
    House Authorization Increase................  ..............         +23,500  ..............         +10,000
    Non medical chem/bio defense and gen/                                                                       
     investment.................................  ..............  ..............          -2,150          -2,150
Tactical Technology.............................         113,168         132,168         117,718         130,718
    Tactical Landing System.....................  ..............          +7,000          +6,450          +6,450
    Multiple Object Tracking Sensor System......  ..............          +7,000  ..............          +7,000
    Simulation Based Design.....................  ..............          +5,000  ..............          +5,000
    Naval Warfare Technology....................  ..............  ..............          -4,000          -3,000
    Aglie Warrior...............................  ..............  ..............          -4,900          -4,900
    Center of Excellence for Research in Ocean                                                                  
     Sciences...................................  ..............  ..............          +7,000          +7,000
Integrated Command and Control Technology.......          48,000          50,000          48,000          50,000
    Digital Camera..............................  ..............          +2,000  ..............          +2,000
    Field Emission Display [Note: The conferees                                                                 
     agree that $5,000,000 is to be made                                                                        
     available only for plasma enhanced chemical                                                                
     vapor deposition equipment and for                                                                         
     development of manufacturing systems in a                                                                  
     cluster tool format specifically tailored                                                                  
     for field emission display (FED)                                                                           
     production.]...............................  ..............  ..............  ..............         (2,000)
Materials and electronics technology............         226,045         236,045         235,145         248,145
    HIgh Temperature Superconducting Materials..  ..............         +10,000  ..............         +10,000
    LSTAT.......................................  ..............         (4,000)         (3,000)         (3,000)
    Joint LSTAT requirement.....................  ..............           (500)           (500)           (500)
    Materials and Processing Technology.........  ..............  ..............          -8.900          -4,900
    Military Medical/Trauma Care Technology.....  ..............  ..............  ..............  ..............

[[Page H 9494]]
                                                                                                                
        2-D Ultrasound..........................  ..............  ..............          -3,500          -1,000
    Healthcare and Information infrastructure...  ..............  ..............          -3,000          -3,000
    Thermal Diamond Management..................  ..............  ..............         +14,500         +11,000
    Cryogenic Electronics.......................  ..............  ..............         +10,000         +10,000
Defense Nuclear Agency..........................         219,003         231,703         237,003         237,703
    High Power Microwave Technology.............  ..............          +4,700          +4,000          +4,700
    Counterterrorist Explosive Research.........  ..............          +4,000  ..............          +4,000
    Radiation Hardened Electronics..............  ..............        (15,000)  ..............        (15,000)
    Environmental Pollutants....................  ..............  ..............         (5,000)         (5,000)
    Thermionics.................................  ..............  ..............         +10,000         +10,000
Defense Health Research and Development.........  ..............  ..............         120,000          20,000
    Breast Cancer Research......................  ..............  ..............        +100,000  ..............
    AIDS Research...............................  ..............  ..............         +20,000         +20,000
Other Theater Missile Defense...................         460,470         423,470         475,470         438,470
    Reduction...................................  ..............        -37,0000  ..............         -37,000
    UAV/Boost Phase Interceptor.................  ..............  ..............         +15,000         +15,000
    Kauai Test Facility.........................  ..............  ..............         (3,000)         (3,000)
Counterterror Technical Support.................          12,044          24,044          12,044          18,244
    Pulsed Fast Neutron Analysis................  ..............         +12,000  ..............          +6,200
Experimental Evaluation of Major Innovative Tech         618,005         671,005         576,405         613,705
    MOBA........................................  ..............  ..............          -9,500          -9,500
    Command and Control Info Systems............  ..............  ..............         -11,100         -11,100
    Guidance Tech--Sharpshooter.................  ..............  ..............         -13,700         -13,700
    Advanced Simulation: Synthetic Theater of                                                                   
     War........................................  ..............  ..............          -3,000          -1,000
    Advanced Simulator Technologies.............  ..............  ..............          -9,700          -5,000
    Critical Mobile Targets.....................  ..............  ..............         -10,000         -10,000
    Pacific Disaster Center.....................  ..............  ..............          +6,000          +6,000
    Two Megawatt direct fuel cell powerplant....  ..............  ..............          +9,400          +7,000
    Shallow Water ASW...........................  ..............          +5,000  ..............          +5,000
    Classified Programs.........................  ..............         +35,000  ..............         +10,000
    Small Satellites............................  ..............          +1,000  ..............          +1,000
    Safety and Survivability....................  ..............          +2,000  ..............          +2,000
    GEOSAR......................................  ..............         +10,000  ..............         +10,000
    Crown Royal.................................  ..............  ..............  ..............          +5,000
    Strategic Packaging for Single Multi-Chip                                                                   
     Modules [Note: The conferees agree to                                                                      
     provide $2,000,000 only for Strategic                                                                      
     Packaging for Single and Multi-chip                                                                        
     Modules.]..................................  ..............  ..............  ..............         (2,000)
    Deep ocean relocation of coastal and harbor                                                                 
     sediments [Note: The conferees agree to                                                                    
     provide $2,500,000 only for the continuted                                                                 
     study of deep ocean relocation of coastal                                                                  
     and harbor sediments leading to a                                                                          
     demonstration and validiation of viable                                                                    
     relocation and environmental monitoring                                                                    
     technology.]...............................  ..............  ..............  ..............         (2,500)
    Large Millimeter Wave (Telescope............  ..............  ..............         (3,000)         (3,000)
Chemical and Biological Defense Program.........          25,684          38,284          21,688          35,684
    House Increase..............................  ..............         +12,600  ..............         +10,000
    Chem/bio defense advanced tech demo.........  ..............  ..............          -3,998  ..............
Advanceed Submarine Technology [Note: $7,000,000                                                                
 of submarine technology is for project M.].....           7,473          30,473          13,973          30,473
    Submarine Technology........................  ..............         +23,000  ..............         +20,000
    Active Structural Control...................  ..............  ..............          +3,000          +3,000
    Integrated, passive, topographic navigation.  ..............  ..............          +3,500              +0
Cooperative DoD/VA Medical Research.............  ..............  ..............          25,000          25,000
    Core Program................................  ..............  ..............         +20,000         +20,000
    Spinal/Brain research [Note: The conferees                                                                  
     agree to provide $5,000,000 to complete the                                                                
     efforts initiated in 1992 for the                                                                          
     Department of Defense Military Medical                                                                     
     Personnel Collaborative Spinal Cord Injury,                                                                
     Paralysis, Neuroscience Research, Education                                                                
     and Training Center.]......................  ..............  ..............          +5,000          +5,000
Advanced Electronics Technologies...............         419,863         434,863         388,718         409,018
    Focus Hope/U.S. Japan Management Training...  ..............  ..............         -23,642         -13,642
    CALS/Electronic Resource Centers............  ..............  ..............          -6,000  ..............
    Manufacturing Technology Applications--                                                                     
     Advanced Multimissile Manufacturing........  ..............  ..............         -10,000         -10,000
    Electronic Module Technology: Rapid                                                                         
     acquisition of application specific signal                                                                 
     processors technology base efforts.........  ..............  ..............          -3,100          -3,100
    High Density Microwave Packaging............  ..............  ..............          -9,100          -2,100
    Microwave and Analog Front End Technology...  ..............  ..............         -14,300          -7,000
    Seamless High Off-Chip Conductivity.........  ..............  ..............         +10,000         +10,000
    Institute for Advanced Flexible                                                                             
     Manufacturing..............................  ..............  ..............          +4,000          +4,000
    Advanced Lithography........................  ..............  ..............         +20,997         +20,997
    U.S. Japan--Management Training.............  ..............         -10,000  ..............         -10,000
    Advanced Lithography........................  ..............         +25,000  ..............  ..............
DMA mapping, charting, geodesy production.......          80,131          80,131          92,745          74,745
    Support and management......................  ..............  ..............          -5,386          -5,386
    Classified..................................  ..............  ..............         +18,000  ..............
Defense Airborne Reconnaissance Program.........         515,148         612,048         391,148         604,448
    Tier II UAV.................................          19,950          45,250          19,950          45,250
    Tier III-UAV................................          48,000          83,000          48,000          66,000
    Maneuver UAV................................          36,800          16,800          36,800          28,800
    U-2 Sensor Upgrades.........................  ..............          20,000  ..............          15,000
    U-2 Defensive Systems.......................  ..............          13,000  ..............          10,000
    U-2 General Upgrades........................  ..............          15,000  ..............  ..............
    MSAG........................................  ..............          12,000  ..............           8,000
    E/O Framing Sensor..........................  ..............           8,000  ..............           7,000
    High Data Rate Laser Com....................  ..............           5,000  ..............           5,000
    Cannon Imagery Ground System................          33,833          49,833          38,833          44,833
Special Ops Advanced Technology Development.....          13,288          14,788          19,288          15,788
    Integrated Bridge...........................  ..............          +1,500  ..............          +1,500
    Millimeter Wave.............................  ..............  ..............          +1,000          +1,000
    Crown Royal.................................  ..............  ..............          +5,000  ..............
Special Operations Tactical Systems Development.         101,602         105,602         109,895         112,395
    Advanced Seal Delivery System...............  ..............  ..............          +4,000          +4,000
    SOF surface craft--Navy Boat program........  ..............  ..............          +4,293          +4,293
    Lightweight Strike Vehicle..................  ..............          +1,500  ..............  ..............
    Full Authority Digital Electronic Control...  ..............          +2,500  ..............          +2,500
----------------------------------------------------------------------------------------------------------------




      historically black colleges and other minority institutions

       The Department is encouraged to continue its support of 
     minority institutions, including Hispanic serving 
     institutions, through academic collaborations for research 
     and education related to science and technology, relevant to 
     the Department's mission.


            computing systems and communications technology

       The conferees agree to provide $8,000,000 for a Global 
     Broadcast Service (GBS) as recommended by the House. The 
     conferees also agree to the House language directing that the 
     GBS initiative is to be managed by the Under Secretary of 
     Defense for Acquisition and Technology (USD (A&T)). The 
     conferees do not agree to the House language directing that 
     the $8,000,000 is to be released to the Navy for a near-term 
     GBS pilot program. Instead, the conferees believe that the 
     GBS program must address the needs of all of the services and 
     direct the USD (A&T) to compete the acquisition of both the 
     near-term and objective GBS. After the competition is 
     completed, the Under Secretary of Defense (Comptroller) is to 
     certify to the defense committees that $8,000,000 has been 
     released to the service chosen as executive agent to conduct 
     the near-term GBS pilot program. The conferees do agree to 
     the House language directing the USD (A&T) to provide to the 
     defense committees a long-term master architecture. 
     Additionally, the conferees direct that the USD (A&T) provide 
     a comparison of cost, schedule, technical risk and 
     operational considerations for several potential GBS host 
     spacecraft including UFO follow-on, Milstar, DSCS, 
     classified, and commercial satellites with the master 
     architecture.


                     advanced electronic technology

       The conferees agree with the House report concerning the 
     ECRC program and also direct the Department to enter into a 
     five-year contract with each of the two system integrators, 
     the National ECRC and CAMP, who will continue to manage their 
     respective sites.
       The conferees commend ARPA for recent advancements in low-
     cost dense plasma focus x-ray source technology and 0.18 
     micron synchrotron-based x-ray technology. The conferees urge 
     ARPA to continue efforts 

[[Page H 9495]]
     in the point source area and direct the Agency to allocate $11,000,000 
     to fund an integrated point source x-ray lithography system 
     based on these latest x-ray source and stepper developments. 
     This research should target defense related applications such 
     as the production of Microwave Monolithic Integrated Circuit 
     (MMIC) chips for military uses, including missile seekers, 
     digital battlefield systems and F-22 radar modules.


                     electronic combat master plan

       The conferees direct the Secretary of Defense to develop 
     and provide to the congressional defense committees, no later 
     than March 31, 1996, an Electronic Combat Master Plan to 
     establish an optimum infrastructure for electronic combat 
     assets.


                    strategic target system (stars)

       The conferees agree to provide $10,000,000, the budget 
     amount, only to continue planning, preparation and actual 
     conduct of STARS flight tests. The conferees direct that BMDO 
     take no actions to terminate or place the STARS program in a 
     caretaker status.


                naval theater ballistic missile defense

       The conferees believe that the Navy's area wide (Lower 
     Tier) and theater wide (Upper Tier) programs should be 
     deployed as rapidly as possible. The Navy's current plan to 
     build on existing ship platforms, the Aegis system, proven 
     launch systems, and the operational Standard missile family 
     has resulted in a cost effective, technically capable and 
     manageable program that is planned to produce a user 
     operational capability (UOES) Upper Tier system not later 
     than FY 1999 with an initial operational capability (IOC) by 
     2001. The conferees are committed to a rapid and actual 
     deployment of an effective sea-based missile defense system. 
     The conferees direct the Department to place highest priority 
     on proceeding with a development program that achieves 
     deployment of the Navy Upper Tier system by the planned 2001 
     IOC. The conferees endorse the Navy Theater Wide system as a 
     core TMD program and endorse fully funding the core program 
     in the five year defense plan. The conferees direct that not 
     less than $200,442,000 shall be spent on Navy Upper Tier and 
     not less than $282,473,000 Navy Lower Tier for research and 
     development activities. Funding allocations through BMDO to 
     the Navy for these programs should proceed expeditiously.


                      tier ii unmanned air vehicle

       The conferees agree to provide $45,250,000 for the Tier II 
     (Predator) unmanned air vehicle program, an increase of 
     $25,300,000 to the budget request. The conferees also agree 
     that the additional funding provided shall only be used for 
     attrition replacement air vehicles and shall not be used to 
     marinize the Predator air vehicle.


                        rivet joint re-engining

       The conferees have provided $79,000,000 solely for the 
     purpose of initiation of re-engining the Rivet Joint fleet. 
     The conferees direct that future funding for this project be 
     included in budget submissions for fiscal year 1997 and 
     beyond, thus ensuring completion of this project in an 
     expeditious and cost effective manner.


                        USH-42 Mission Recorder

       The conferees agree that from funding provided in fiscal 
     year 1996 for the Defense AirBorne Reconnaissance Program, 
     $10,000,000 may be used for the planned product improvement 
     that will result in a low cost, lightweight, high capacity, 
     digital version of the Navy's USH-42 recorder/reproducer 
     suitable for a wide range of applications in reconnaissance 
     and surveillance platforms.

               Developmental Test and Evaluation, Defense

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
DIRECTOR OF TEST & EVAL DEFENSE:                                                                                
    CENTRAL TEST AND EVALUATION INVESTMENT                                                                      
     DEVELOPMENT (CT............................         119,714         119,714         109,714         114,714
    FOREIGN COMPARATIVE TESTING.................          34,062          34,062          32,453          32,453
    DEVELOPMENT TEST AND EVALUATION.............         105,565         105,565         103,915         103,915
----------------------------------------------------------------------------------------------------------------

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

       The conferees agree to the following amounts for Revolving 
     and Management Funds program:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Business Operations Fund................         878,700       1,573,800       1,178,700         878,700
National Defense Sealift Fund...................         974,220         974,220       1,024,220       1,024,220
                                                 ---------------------------------------------------------------
      Total, Revolving and Management Funds.....       1,852,920       2,548,020       2,202,920       1,902,920
----------------------------------------------------------------------------------------------------------------

                    Defense Business Operations Fund

       The conferees agree to provide $878,700,000 for the Defense 
     Business Operations Fund.

                     National Defense Sealift Fund

       The conferees agree to provide $1,024,220,000 for the 
     National Defense Sealift Fund.


                     maritime prepositioning ships

       The legislative authority in this Act to procure an 
     additional Maritime Prepositioning Ship for up to 
     $110,000,000 may not be used until a notification has been 
     provided at least 30 days in advance of release of a RFP 
     under this authority to the congressional defense committee 
     on the Department of the Navy's intent to use the authority 
     and on identification and justification of proposed financing 
     sources.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

       The conferees agree to the following amounts for Other 
     Department of Defense programs:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Health..................................      10,153,558      10,205,158      10,196,558      10,226,358
Chemical Agents and Munitions Destruction.......         746,698         746,698         631,698         672,250
Drug Interdiction Defense.......................         680,432         688,432         680,432         688,432
Office of the Inspector General.................         139,226         178,226         139,226         178,226
                                                 ---------------------------------------------------------------
      Total, Other Department of Defense                                                                        
       Programs.................................      11,719,914      11,818,514      11,647,914      11,765,266
----------------------------------------------------------------------------------------------------------------

                Explanation of Project Level Adjustments


                         defense health program

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Medical Programs, O&M...........................       9,865,525       9,917,125       9,908,525       9,938,325
    PACMEDNET...................................  ..............         +16,000         +11,000         +11,000
    Beaumont Army Medical Center Computer                                                                       
     Support....................................  ..............          +1,500  ..............          +1,500
    Currency Fluctuation........................  ..............          +8,100  ..............          +6,900
    Breast Cancer...............................  ..............         +25,000  ..............         +25,000
    American Red Cross..........................  ..............          +1,000         +14,500         +14,500
    Desert Storm Syndrome.......................  ..............  ..............  ..............          +3,400
    USTF........................................  ..............  ..............         -15,900  ..............
    Telemedicine................................  ..............  ..............         +22,900  ..............
    Ongoing Initiatives:                                                                                        
        Brown Tree Snake........................  ..............  ..............          +1,000          +1,000

[[Page H 9496]]
                                                                                                                
        Military Nursing........................  ..............  ..............          +5,000          +5,000
        Pacific Island Referral Project.........  ..............  ..............          +2,500          +2,500
        USUHS Graduate School of Nursing........  ..............  ..............          +2,000          +2,000
----------------------------------------------------------------------------------------------------------------




                             breast cancer

       The conferees have provided an increase of $100,000,000 
     only for breast cancer. The conferees have provided 
     $75,000,000 to continue the Army's peer-reviewed research 
     program. In addition, the conferees have provided $25,000,000 
     to the Department for: increased recruitment, training and 
     education for military cancer specialists; diagnostic 
     equipment and improved detection technologies, such as 
     digital mammography; and prevention and education efforts for 
     the military community.


                         tricare implementation

       The conferees commend the significant progress of the 
     Department of Defense in moving toward a nation-wide managed 
     health care system for the military, known as TRICARE. 
     Existing law mandates that the TRICARE system be implemented 
     by September 30, 1996, and the Department has attempted to 
     meet this deadline. Unfortunately, complications with the 
     issuance and implementation of these large, complex, 
     competitively bid contracts, have caused significant problems 
     and associated delays. The conferees are concerned that the 
     Department has accelerated the process in order to meet this 
     statutory deadline. The conferees understand the Department 
     is fully committed to the full implementation of TRICARE, as 
     well as a standard health benefit for all military 
     beneficiaries, but believe that the Department, the offerors, 
     and the beneficiaries would greatly benefit from additional 
     time in meeting the complex requirements of TRICARE. 
     Therefore, the conferees agree to extend the deadline for 
     implementation of the TRICARE managed care system by one 
     year.


          uniformed services university of the health sciences

       The conferees remain committed to the continuation of the 
     Uniformed Services University of the Health Sciences (USUHS) 
     at its current level and direct that, within funds made 
     available to the Defense Health program, the amount provided 
     for USUHS shall fully fund the programs and functions of the 
     University at existing levels.

                     Chemical Agents and Munitions

       The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate         Quantity       Conference  
----------------------------------------------------------------------------------------------------------------
CHEM AGENTS & MUNITIONS                                                                                         
 DESTRUCTION, DEF:                                                                                              
    CHEM DEMILITARIZATION--PROC.         299,448         299,448         224,448  ..............         265,000
    CHEM DEMILITARIZATION--O&MD.         393,850         393,850         353,850  ..............         353,850
----------------------------------------------------------------------------------------------------------------

             Drug Interdiction and Counter-Drug Activities

       The conferees agree to provide $688,432,000 as proposed by 
     the House instead of $680,432,000 as proposed by the Senate. 
     The conference agreement is as follows:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Military Personnel..............................         152,787         152,787         152,787         152,787
O&M.............................................         422,633         441,633         442,633         440,088
    South Com Radars............................          20,282          21,782          20,282          20,282
    Community Outreach..........................           8,236               0           8,236               0
    CARIBROC Comms..............................             206           1,356             206             206
    Gulf States CI..............................           2,059           3,900           2,059           6,059
    Southwest Border Info System................           4,000           5,545           4,000           4,000
    Civil Air Patrol............................           2,224           3,424           2,224           3,424
Procurement.....................................          48,659          57,659          48,659          59,204
    Southwest Border Info System................           5,265           6,265           5,265           7,810
    Classified Program..........................  ..............           8,000  ..............           8,000
RDT&E...........................................          36,353          36,353          36,353          36,353
                                                 ---------------------------------------------------------------
      Total, Drug Interdiction..................         680,432         680,432         680,432         680,432
----------------------------------------------------------------------------------------------------------------

       The conferees agree to provide $4,000,000 above the budget 
     to the Gulf States Counterdrug Initiative, and direct that 
     $2,000,000 be provided for the Command, Control, 
     Communications and Computer Network and $2,000,000 for the 
     Regional Counterdrug Training Academy.
       The conferees have deleted bill language which provided 
     $5,000,000 for the conversion of surplus Department of 
     Defense helicopters by State and local governments for use in 
     counterdrug activities and agree that funding may be 
     requested in annual plans submitted by individual states.
       The conferees agree that, if authorized, up to $3,000,000 
     in available funds may be used to continue the Community 
     Outreach pilot program.
       The conferees agree that, in accordance with normal 
     reprogramming procedures, up to $25,000,000 in available 
     funds may be used to procure low-energy/backscatter x-ray 
     equipment.

                    Office of the Inspector General

       The conferees agree to provide $178,226,000 for the Office 
     of the Inspector General. Of this amount, $177,226,000 shall 
     be for operation and maintenance activities and $1,000,000 
     for procurement.

                      TITLE VII--RELATED AGENCIES

------------------------------------------------------------------------
                              Request     House      Senate   Conference
------------------------------------------------------------------------
Central Intelligence Agency                                             
 Retirement and Disability                                              
 System Fund...............    213,900    213,900    213,900     213,900
Intelligence Community                                                  
 Management Account........     93,283     75,683     93,283      90,683
National Security Education                                             
 Trust Fund................     15,000     15,000      7,500       7,500
Kaho'olawe Island                                                       
 Conveyance and                                                         
 Environmental Restoration                                              
 Trust Fund................  .........  .........     25,000      25,000
------------------------------------------------------------------------

               Intelligence Community Management Account


                        environmental task force

       The conferees have provided $15,000,000 to support the 
     activities of the task force. Of this amount, $5,000,000 is 
     to be used to continue joint United States/Russian efforts in 
     this area.

                 National Security Education Trust Fund

       The conferees direct the Director of Central Intelligence, 
     in coordination with the NSETF Board, to establish criteria 
     and procedures to ensure that all individuals accepting 
     fellowships or scholarships from this fund meet 
     qualifications for employment by the Department of Defense or 
     Intelligence Community. The conferees further direct that any 
     recipient must be engaged in a course of study that is an 
     identified critical shortage within the Department of Defense 
     or the Intelligence Community. Upon meeting these 
     requirements, the recipient must agree to serve at least two 
     years with the Department of Defense or the Intelligence 
     Community or reimburse the U.S. Treasury for the total costs 
     of the scholarship or fellowship.

                     TITLE VIII--GENERAL PROVISIONS

       The conference agreement incorporates general provisions of 
     the House and Senate versions of the bill which were not 
     amended. Those general provisions that were amended in 
     conference follow:
       The conferees included a general provision (Section 8005) 
     which amends House language on transfer authority to $2.4 
     billion.
       The conferees included a general provision (Section 8010) 
     which amends Senate language that defines the congressional 
     defense committees.
       The conferees included a general provision (Section 8028) 
     which amends House language to prohibit the demilitarization 
     of certain types of surplus firearms.
       The conferees included a general provision (Section 8045) 
     which amends Senate language which earmarks funds for the 
     Civil Air Patrol.
       The conferees retained a Senate provision (Section 8046) 
     concerning Federally Funded Research and Development Centers 

[[Page H 9497]]
     (FFRDCs). The conferees direct that the restrictions on consultants 
     only shall apply to the use of consulting services for 
     specific projects undertaken by an FFRDC as part of its core 
     mission responsibilities to meet sponsor requirements. The 
     restrictions do not apply to administration and management 
     functions necessary to operate an FFRDC as an organizational 
     entity.
       The conferees included a general provision (Section 8062) 
     which amends Senate language that limits payment to Uniformed 
     Services Treatment Facilities to $315,000,000.
       The conferees included a general provision (Section 8063) 
     which amends House language concerning limitations on U.S. 
     support for NATO headquarters operations.
       The conferees included a general provision (Section 8065) 
     which amends House language that maintains an expense/
     investment threshold of $100,000.
       The conferees included a general provision (Section 8073) 
     which amends House language concerning the supercomputing 
     capability at various Department of Defense sites.
       The conferees included a general provision (Section 8082) 
     which amends House language concerning the establishment of 
     field operating agencies.
       The conferees included a general provision (Section 8083) 
     which amends Senate language concerning rescission of funds 
     from various Procurement and Research and Development 
     programs.


                           rescission of funds

       The conferees agree to rescind excess prior year funds, as 
     presented in the following table:

------------------------------------------------------------------------
                            House         Senate           Conference   
------------------------------------------------------------------------
     FISCAL YEAR 1993                                                   
                                                                        
PROCUREMENT OF                                                          
 AMMUNITION, ARMY                                                       
    Armament and                                                        
     retooling                                                          
     manufacturing                                                      
     support initiative..        0        -15,000,000                  0
                          ----------------------------------------------
        Subtotal.........        0        -15,000,000                  0
                          ==============================================
Total fiscal year 1993...        0        -15,000,000                  0
                          ==============================================
     FISCAL YEAR 1994                                                   
                                                                        
AIRCRAFT PROCUREMENT, AIR                                               
 FORCE:                                                                 
    F-16 production                                                     
     termination.........        0        -49,854,000        -49,854,000
        F-111 claims.....        0         -3,800,000         -3,800,000
                          ----------------------------------------------
        Subtotal.........        0        -53,654,000        -53,654,000
                          ==============================================
MISSILE PROCUREMENT, AIR                                                
 FORCE:                                                                 
    GPS on-orbit                                                        
     incentive...........        0                  0        -16,783,000
                          ----------------------------------------------
        Subtotal.........        0                  0        -16,783,000
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, ARMY:                                               
    Triservice standoff                                                 
     attack missile......        0           -242,000                  0
                          ----------------------------------------------
        Subtotal.........        0           -242,000                  0
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, NAVY:                                               
    Triservice standoff                                                 
     attack missile......        0         -4,416,000                  0
                          ----------------------------------------------
        Subtotal.........        0         -4,416,000                  0
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, AIR                                                 
 FORCE                                                                  
    Triservice standoff                                                 
     attack missile......        0        -46,589,000                  0
                          ----------------------------------------------
        Subtotal.........        0        -46,589,000                  0
                          ==============================================
Total fiscal year 1994...        0       -104,901,000        -70,437,000
                          ==============================================
     FISCAL YEAR 1995                                                   
                                                                        
WEAPONS PROCUREMENT,                                                    
 NAVY:                                                                  
    Tomahawk contract                                                   
     savings.............        0                  0        -10,000,000
    Harpoon contract                                                    
     savings.............        0                  0         -2,400,000
    Ordance support                                                     
     equipment...........        0                  0         -2,200,000
                          ----------------------------------------------
        Subtotal.........        0                  0        -14,600,000
                          ==============================================
SHIPBUILDING AND                                                        
 CONVERSION, NAVY:                                                      
    Outfitting...........        0                  0        -55,000,000
    Post delivery (craft                                                
     outfitting, post                                                   
     delivery)...........        0                  0        -32,700,000
                          ----------------------------------------------
        Subtotal.........        0                  0        -87,700,000
                          ==============================================
OTHER PROCUREMENT, NAVY:                                                
    Forklift trucks......        0         -2,000,000         -2,000,000
    Other supply support                                                
     equipment...........        0         -1,500,000         -1,500,000
    Secure data..........        0         -2,600,000         -2,600,000
    Nucalts..............        0         -2,500,000         -2,500,000
                          ----------------------------------------------
        Subtotal.........        0         -8,600,000         -8,600,000
                          ==============================================
AIRCRAFT PROCUREMENT, AIR                                               
 FORCE:                                                                 
    A-10 modifications...        0        -46,400,000        -17,500,000
    F-111 claims.........        0         -6,700,000         -6,500,000
                          ----------------------------------------------
        Subtotal.........        0        -53,100,000        -24,000,000
                          ==============================================
MISSILE PROCUREMENT, AIR                                                
 FORCE:                                                                 
    Classified programs..        0                  0       -120,000,000
    GPS on-orbit                                                        
     incentive...........        0                  0        -20,978,000
                          ----------------------------------------------
        Subtotal.........        0                  0       -140,978,000
                          ==============================================
OTHER PROCUREMENT, AIR                                                  
 FORCE:                                                                 
    Classified programs..        0                  0       -180,000,000
                          ----------------------------------------------
        Subtotal.........        0                  0       -180,000,000
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, ARMY:                                               
    Triservice standoff                                                 
     attack missile......        0        -11,156,000         -9,000,000
                          ----------------------------------------------
        Subtotal.........        0        -11,156,000         -9,000,000
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, NAVY:                                               
    Triservice standoff                                                 
     attack missile......        0        -10,150,000                  0
    F-14/JDAM............        0                  0         -6,000,000
                          ----------------------------------------------
        Subtotal.........        0        -10,150,000         -6,000,000
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION, AIR                                                 
 FORCE:                                                                 
    Outboard electronic                                                 
     warfare simulator...        0         -6,000,000         -6,000,000
    Triservice standoff                                                 
     attack missile......        0         -9,767,000         -1,902,000
                          ----------------------------------------------
        Subtotal.........        0        -15,767,000         -7,902,000
                          ==============================================
RESEARCH, DEVELOPMENT,                                                  
 TEST & EVALUATION,                                                     
 DEFENSE-WIDE                                                           
    Maritime Technology                                                 
     Office..............  .......  .................                   
    (Ship Self Defense)..        0                  0        -12,000,000
                          ----------------------------------------------
        Subtotal.........        0                  0        -12,000,000
                          ==============================================
Total fiscal year 1995...        0        -98,773,000       -490,780,000
                          ==============================================
                Grand                                                   
                 total...        0        218,674,000       -561,217,000
------------------------------------------------------------------------

       The conferees included a general provision (Section 8086) 
     which amends House language that limits executive 
     compensation to $200,000 per year.
       The conferees included a general provision (Section 8088) 
     which amends Senate language prohibiting the obligation or 
     expenditure of any funds provided in this Act for aid to the 
     Government of North Korea.
       The conferees included a general provision (Section 8092) 
     which amends Senate language that reallocates funds to cover 
     unanticipated shipbuilding cost increases.
       The conferees included a general provision (Section 8099) 
     which amends Senate language concerning ball and roller 
     bearings manufactured in the United States.
       The conferees included a general provision (Section 8100) 
     which amends Senate language to allow for storage and 
     disposal of pentaborane.
       The conferees included a general provision (Section 8102) 
     which amends Senate language that directs the Department of 
     Defense to match disbursement to obligations before the 
     disbursement is made.
       The conferees included a general provision (Section 8104) 
     which amends House language that prohibits procurement of 
     120mm mortars or mortar ammunition manufactured outside the 
     United States.
       The conferees included a general provision (Section 8108) 
     which amends House language concerning the lease or charter 
     of double hull ships by the Military Sealift Command.
       The conferees included a general provision (Section 8111) 
     which amends House language pertaining to the National 
     Training Center, and the interim and permanent rotational 
     airhead.
       The conferees included a general provision (Section 8115) 
     which amends House language concerning international 
     peacekeeping, peace enforcement, and humanitarian assistance 
     operations.
       The conferees included a general provision (Section 8119) 
     which amends House language concerning performing abortions 
     in Department of Defense medical facilities.
       The conferees included a new general provision (Section 
     8124) concerning the participation of U.S. forces in any 
     operation in Bosnia-Herzegovina.
       The conferees included a general provision (Section 8125) 
     which reduces the appropriation accounts in the Act by 
     $832,000,000 to reflect savings from revised economic 
     assumptions.
       The Executive Branch Mid Session Review of the budget 
     revised the inflation estimate on which the fiscal year 1996 
     budget was based downward from its original assumptions. This 
     downward revision results in overall savings to the 
     Department of Defense and the reduction in this provision 
     reflects those savings.
       The conferees included a new general provision (Section 
     8126) which makes funds available from the Defense Business 
     Operation Fund for termination liability for the VC-137 
     replacement aircraft.
       The conferees included a new general provision (Section 
     8127) which allows funds to be obligated for payment of 
     satellite on-orbit incentives.
       The conferees included a new general provision (Section 
     8128) which makes funds available for support of a NATO 
     Alliance Ground Surveillance program based on the Joint 
     Surveillance/Target Attack Radar System.
       The conferees included a new general provision (Section 
     8129) which reduces the funding provided in Title IV, 
     Research, Development, Test and Evaluation, by $325,000,000, 
     in order to achieve savings in overhead and improve 
     management efficiencies. This reduction is to be applied on a 
     pro-rata basis by subproject within each R-1 program element 
     as modified by this Act, except no reduction may be taken 
     against funds made available to the Department of Defense for 
     Ballistic Missile Defense.
     
[[Page H 9498]]



                   conference total--with comparisons

       The total new budget (obligational) authority for the 
     fiscal year 1996 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 1995 amount, the 1996 
     budget estimates, and the House and Senate bills for 1996 
     follow:

New budget (obligational) authority, fiscal year 1995..$241,553,071,000
Budget estimates of new (obligational) authority, fiscal236,344,017,000
House bill, fiscal year 1996............................243,997,500,000
Senate bill, fiscal year 1996...........................242,683,841,000
Conference agreement, fiscal year 1996..................243,251,297,000
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 1995+1,698,226,000
    Budget estimates of new (obligational) authority, fis+6,907,280,000
    House bill, fiscal year 1996...........................-746,203,000
    Senate bill, fiscal year 1996..........................+567,456,000

     Bill Young,
     Joseph M. McDade,
     Bob Livingston,
     Jerry Lewis,
     Joe Skeen,
     David L. Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Mark W. Neumann (except to the agreement regarding U.S. 
     deployment in Bosnia),
     John P. Murtha,
     Norman D. Dicks,
     Charles Wilson,
     W.G. (Bill) Hefner,
     Martin Olav Sabo,
                                Managers on the Part of the House.

     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete V. Domenici,
     Phil Gramm,
     Kit Bond,
     Mitch McConnell,
     Connie Mack,
     Richard C. Shelby,
     Mark O. Hatfield,
     Daniel K. Inouye,
     Fritz Hollings,
     J. Bennett Johnston,
     Robert C. Byrd,
     Patrick J. Leahy,
                               Managers on the Part of the Senate.

     

                          ____________________