[Congressional Record Volume 142, Number 7 (Monday, January 22, 1996)]
[House]
[Pages H351-H736]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      CONFERENCE REPORT ON S. 1124

  Mr. SPENCE submitted the following conference report and statement on 
the bill (S. 1124), to authorize appropriations for fiscal year 1996 
for military activities of the Department of Defense, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, and for 
other purposes:

                  Conference Report (H. Rept. 104-450)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendments of the House to the bill (S. 
     1124), to authorize appropriations for fiscal year 1996 for 
     military activities of the Department of Defense, to 
     prescribe personnel strengths for such fiscal year for the 
     Armed Forces, and for other purposes, having met, after full 
     and free conference, have agreed to recommend and do 
     recommend to their respective Houses as follows:
       That the Senate recede from its disagreement to the 
     amendment of the House to the text of the bill and agree to 
     the same with an amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendment, insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Defense 
     Authorization Act for Fiscal Year 1996''.

     SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF 
                   CONTENTS.

       (a) Divisions.--This Act is organized into five divisions 
     as follows:
       (1) Division A--Department of Defense Authorizations.
       (2) Division B--Military Construction Authorizations.
       (3) Division C--Department of Energy National Security 
     Authorizations and Other Authorizations.
       (4) Division D--Federal Acquisition Reform.
       (5) Division E--Information Technology Management Reform.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
Sec. 4. Extension of time for submission of reports.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical demilitarization program.
Sec. 108. Defense health programs.

                       Subtitle B--Army Programs

Sec. 111. Procurement of OH-58D Armed Kiowa Warrior helicopters.
Sec. 112. Repeal of requirements for armored vehicle upgrades.
Sec. 113. Multiyear procurement of helicopters.
Sec. 114. Report on AH-64D engine upgrades.
Sec. 115. Requirement for use of previously authorized multiyear 
              procurement authority for Army small arms procurement.

                       Subtitle C--Navy Programs

Sec. 131. Nuclear attack submarines.
Sec. 132. Research for advanced submarine technology.
Sec. 133. Cost limitation for Seawolf submarine program.
Sec. 134. Repeal of prohibition on backfit of Trident submarines.
Sec. 135. Arleigh Burke class destroyer program.
Sec. 136. Acquisition program for crash attenuating seats.
Sec. 137. T-39N trainer aircraft.
Sec. 138. Pioneer unmanned aerial vehicle program.

                     Subtitle D--Air Force Programs

Sec. 141. B-2 aircraft program.
Sec. 142. Procurement of B-2 bombers.
Sec. 143. MC-130H aircraft program.

             Subtitle E--Chemical Demilitarization Program

Sec. 151. Repeal of requirement to proceed expeditiously with 
              development of chemical demilitarization cryofracture 
              facility at Tooele Army Depot, Utah.
Sec. 152. Destruction of existing stockpile of lethal chemical agents 
              and munitions.
Sec. 153. Administration of chemical demilitarization program.

         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic research and exploratory development.
Sec. 203. Modifications to Strategic Environmental Research and 
              Development Program.
Sec. 204. Defense dual use technology initiative.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Tactical manned reconnaissance.
Sec. 213. Joint Advanced Strike Technology (JAST) program.
Sec. 214. Development of laser program.
Sec. 215. Navy mine countermeasures program.
Sec. 216. Space-based infrared system.
Sec. 217. Defense Nuclear Agency programs.
Sec. 218. Counterproliferation support program.
Sec. 219. Nonlethal weapons study.
Sec. 220. Federally funded research and development centers and 
              university-affiliated research centers.
Sec. 221. Joint seismic program and global seismic network.
Sec. 222. Hydra-70 rocket product improvement program.
Sec. 223. Limitation on obligation of funds until receipt of electronic 
              combat consolidation master plan.
Sec. 224. Report on reductions in research, development, test, and 
              evaluation.
Sec. 225. Advanced Field Artillery System (Crusader).
Sec. 226. Demilitarization of conventional munitions, rockets, and 
              explosives.
Sec. 227. Defense Airborne Reconnaissance program.

           Subtitle C--Ballistic Missile Defense Act of 1995

Sec. 231. Short title.
Sec. 232. Findings.
Sec. 233. Ballistic Missile Defense policy.
Sec. 234. Theater Missile Defense architecture.
Sec. 235. Prohibition on use of funds to implement an international 
              agreement concerning Theater Missile Defense systems.
Sec. 236. Ballistic Missile Defense cooperation with allies.
Sec. 237. ABM Treaty defined.
Sec. 238. Repeal of Missile Defense Act of 1991.

         Subtitle D--Other Ballistic Missile Defense Provisions

Sec. 251. Ballistic Missile Defense program elements.
Sec. 252. Testing of Theater Missile Defense interceptors.
Sec. 253. Repeal of missile defense provisions.

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

Sec. 261. Precision-guided munitions.
Sec. 262. Review of C4I by National Research Council.
Sec. 263. Analysis of consolidation of basic research accounts of 
              military departments.
Sec. 264. Change in reporting period from calendar year to fiscal year 
              for annual report on certain contracts to colleges and 
              universities.
Sec. 265. Aeronautical research and test capabilities assessment.

                       Subtitle F--Other Matters

Sec. 271. Advanced lithography program.
Sec. 272. Enhanced fiber optic guided missile (EFOG-M) system.
Sec. 273. States eligible for assistance under Defense Experimental 
              Program To Stimulate Competitive Research.
Sec. 274. Cruise missile defense initiative.
Sec. 275. Modification to university research initiative support 
              program.
Sec. 276. Manufacturing technology program.
Sec. 277. Five-year plan for consolidation of defense laboratories and 
              test and evaluation centers.
Sec. 278. Limitation on T-38 avionics upgrade program.
Sec. 279. Global Positioning System.
Sec. 280. Revision of authority for providing Army support for the 
              National Science Center for Communications and 
              Electronics.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Civil Air Patrol.

                   Subtitle B--Depot-Level Activities

Sec. 311. Policy regarding performance of depot-level maintenance and 
              repair for the Department of Defense.
Sec. 312. Management of depot employees.
Sec. 313. Extension of authority for aviation depots and naval 
              shipyards to engage in defense-related production and 
              services.
Sec. 314. Modification of notification requirement regarding use of 
              core logistics functions waiver. 
              
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                  Subtitle C--Environmental Provisions

Sec. 321. Revision of requirements for agreements for services under 
              environmental restoration program.
Sec. 322. Addition of amounts creditable to Defense Environmental 
              Restoration Account.
Sec. 323. Use of Defense Environmental Restoration Account.
Sec. 324. Revision of authorities relating to restoration advisory 
              boards.
Sec. 325. Discharges from vessels of the Armed Forces.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Operation of commissary system.
Sec. 332. Limited release of commissary stores sales information to 
              manufacturers, distributors, and other vendors doing 
              business with Defense Commissary Agency.
Sec. 333. Economical distribution of distilled spirits by 
              nonappropriated fund instrumentalities.
Sec. 334. Transportation by commissaries and exchanges to overseas 
              locations.
Sec. 335. Demonstration project for uniform funding of morale, welfare, 
              and recreation activities at certain military 
              installations.
Sec. 336. Operation of combined exchange and commissary stores.
Sec. 337. Deferred payment programs of military exchanges.
Sec. 338. Availability of funds to offset expenses incurred by Army and 
              Air Force Exchange Service on account of troop reductions 
              in Europe.
Sec. 339. Study regarding improving efficiencies in operation of 
              military exchanges and other morale, welfare, and 
              recreation activities and commissary stores.
Sec. 340. Repeal of requirement to convert ships' stores to 
              nonappropriated fund instrumentalities.
Sec. 341. Disposition of excess morale, welfare, and recreation funds.
Sec. 342. Clarification of entitlement to use of morale, welfare, and 
              recreation facilities by members of reserve components 
              and dependents.

     Subtitle E--Performance of Functions by Private-Sector Sources

Sec. 351. Competitive procurement of printing and duplication services.
Sec. 352. Direct vendor delivery system for consumable inventory items 
              of Department of Defense.
Sec. 353. Payroll, finance, and accounting functions of the Department 
              of Defense.
Sec. 354. Demonstration program to identify overpayments made to 
              vendors.
Sec. 355. Pilot program on private operation of defense dependents' 
              schools.
Sec. 356. Program for improved travel process for the Department of 
              Defense.
Sec. 357. Increased reliance on private-sector sources for commercial 
              products and services.

        Subtitle F--Miscellaneous Reviews, Studies, and Reports

Sec. 361. Quarterly readiness reports.
Sec. 362. Restatement of requirement for semiannual reports to Congress 
              on transfers from high-priority readiness appropriations.
Sec. 363. Report regarding reduction of costs associated with contract 
              management oversight.
Sec. 364. Reviews of management of inventory control points and 
              Material Management Standard System.
Sec. 365. Report on private performance of certain functions performed 
              by military aircraft.
Sec. 366. Strategy and report on automated information systems of 
              Department of Defense.

                       Subtitle G--Other Matters

Sec. 371. Codification of Defense Business Operations Fund.
Sec. 372. Clarification of services and property that may be exchanged 
              to benefit the historical collection of the Armed Forces.
Sec. 373. Financial management training.
Sec. 374. Permanent authority for use of proceeds from the sale of 
              certain lost, abandoned, or unclaimed property.
Sec. 375. Sale of military clothing and subsistence and other supplies 
              of the Navy and Marine Corps.
Sec. 376. Personnel services and logistical support for certain 
              activities held on military installations.
Sec. 377. Retention of monetary awards.
Sec. 378. Provision of equipment and facilities to assist in emergency 
              response actions.
Sec. 379. Report on Department of Defense military and civil defense 
              preparedness to respond to emergencies resulting from a 
              chemical, biological, radiological, or nuclear attack.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Temporary variation in DOPMA authorized end strength 
              limitations for active duty Air Force and Navy officers 
              in certain grades.
Sec. 403. Certain general and flag officers awaiting retirement not to 
              be counted.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              Reserves.
Sec. 413. Counting of certain active component personnel assigned in 
              support of reserve component training.
Sec. 414. Increase in number of members in certain grades authorized to 
              serve on active duty in support of the Reserves.
Sec. 415. Reserves on active duty in support of cooperative threat 
              reduction programs not to be counted.
Sec. 416. Reserves on active duty for military-to-military contacts and 
              comparable activities not to be counted.

              Subtitle C--Military Training Student Loads

Sec. 421. Authorization of training student loads.

              Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.
Sec. 432. Authorization for increase in active-duty end strengths.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Joint officer management.
Sec. 502. Retired grade for officers in grades above major general and 
              rear admiral.
Sec. 503. Wearing of insignia for higher grade before promotion.
Sec. 504. Authority to extend transition period for officers selected 
              for early retirement.
Sec. 505. Army officer manning levels.
Sec. 506. Authority for medical department officers other than 
              physicians to be appointed as Surgeon General.
Sec. 507. Deputy Judge Advocate General of the Air Force.
Sec. 508. Authority for temporary promotions for certain Navy 
              lieutenants with critical skills.
Sec. 509. Retirement for years of service of Directors of Admissions of 
              Military and Air Force academies.

           Subtitle B--Matters Relating to Reserve Components

Sec. 511. Extension of certain Reserve officer management authorities.
Sec. 512. Mobilization income insurance program for members of Ready 
              Reserve.
Sec. 513. Military technician full-time support program for Army and 
              Air Force reserve components.
Sec. 514. Revisions to Army Guard Combat Reform Initiative to include 
              Army Reserve under certain provisions and make certain 
              revisions.
Sec. 515. Active duty associate unit responsibility.
Sec. 516. Leave for members of reserve components performing public 
              safety duty.
Sec. 517. Department of Defense funding for National Guard 
              participation in joint disaster and emergency assistance 
              exercises.

                   Subtitle C--Decorations and Awards

Sec. 521. Award of Purple Heart to persons wounded while held as 
              prisoners of war before April 25, 1962.
Sec. 522. Authority to award decorations recognizing acts of valor 
              performed in combat during the Vietnam conflict.
Sec. 523. Military intelligence personnel prevented by secrecy from 
              being considered for decorations and awards.
Sec. 524. Review regarding upgrading of Distinguished-Service Crosses 
              and Navy Crosses awarded to Asian-Americans and Native 
              American Pacific Islanders for World War II service.
Sec. 525. Eligibility for Armed Forces Expeditionary Medal based upon 
              service in El Salvador.
Sec. 526. Procedure for consideration of military decorations not 
              previously submitted in timely fashion.

                 Subtitle D--Officer Education Programs

                       Part I--Service Academies

Sec. 531. Revision of service obligation for graduates of the service 
              academies.
Sec. 532. Nominations to service academies from Commonwealth of the 
              Northern Marianas Islands.
Sec. 533. Repeal of requirement for athletic director and 
              nonappropriated fund account for the athletics programs 
              at the service academies.
Sec. 534. Repeal of requirement for program to test privatization of 
              service academy preparatory schools.

                Part II--Reserve Officer Training Corps

Sec. 541. ROTC access to campuses.

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Sec. 542. ROTC scholarships for the National Guard.
Sec. 543. Delay in reorganization of Army ROTC regional headquarters 
              structure.
Sec. 544. Duration of field training or practice cruise required under 
              the Senior ROTC program.
Sec. 545. Active duty officers detailed to ROTC duty at senior military 
              colleges to serve as Commandant and Assistant Commandant 
              of Cadets and as tactical officers.

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

Sec. 551. Report concerning appropriate forum for judicial review of 
              Department of Defense personnel actions.
Sec. 552. Comptroller General review of proposed Army end strength 
              allocations.
Sec. 553. Report on manning status of highly deployable support units.
Sec. 554. Review of system for correction of military records.
Sec. 555. Report on the consistency of reporting of fingerprint cards 
              and final disposition forms to the Federal Bureau of 
              Investigation.

                       Subtitle F--Other Matters

Sec. 561. Equalization of accrual of service credit for officers and 
              enlisted members.
Sec. 562. Army Ranger training.
Sec. 563. Separation in cases involving extended confinement.
Sec. 564. Limitations on reductions in medical personnel.
Sec. 565. Sense of Congress concerning personnel tempo rates.
Sec. 566. Separation benefits during force reduction for officers of 
              commissioned corps of National Oceanic and Atmospheric 
              Administration.
Sec. 567. Discharge of members of the Armed Forces who have the HIV-1 
              virus.
Sec. 568. Revision and codification of Military Family Act and Military 
              Child Care Act.
Sec. 569. Determination of whereabouts and status of missing persons.
Sec. 570. Associate Director of Central Intelligence for Military 
              Support.

      Subtitle G--Support for Non-Department of Defense Activities

Sec. 571. Repeal of certain civil-military programs.
Sec. 572. Training activities involving support and services for 
              eligible organizations and activities outside the 
              Department of Defense.
Sec. 573. National Guard civilian youth opportunities pilot program.
Sec. 574. Termination of funding for Office of Civil-Military Programs 
              in Office of the Secretary of Defense.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1996.
Sec. 602. Limitation on basic allowance for subsistence for members 
              residing without dependents in Government quarters.
Sec. 603. Election of basic allowance for quarters instead of 
              assignment to inadequate quarters.
Sec. 604. Payment of basic allowance for quarters to members in pay 
              grade E-6 who are assigned to sea duty.
Sec. 605. Limitation on reduction of variable housing allowance for 
              certain members.
Sec. 606. Clarification of limitation on eligibility for family 
              separation allowance.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonuses for reserve forces.
Sec. 612. Extension of certain bonuses and special pay for nurse 
              officer candidates, registered nurses, and nurse 
              anesthetists.
Sec. 613. Extension of authority relating to payment of other bonuses 
              and special pays.
Sec. 614. Codification and extension of special pay for critically 
              short wartime health specialists in the Selected 
              Reserves.
Sec. 615. Hazardous duty incentive pay for warrant officers and 
              enlisted members serving as air weapons controllers.
Sec. 616. Aviation career incentive pay.
Sec. 617. Clarification of authority to provide special pay for nurses.
Sec. 618. Continuous entitlement to career sea pay for crew members of 
              ships designated as tenders.
Sec. 619. Increase in maximum rate of special duty assignment pay for 
              enlisted members serving as recruiters.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Repeal of requirement regarding calculation of allowances on 
              basis of mileage tables.
Sec. 622. Departure allowances.
Sec. 623. Transportation of nondependent child from member's station 
              overseas after loss of dependent status while overseas.
Sec. 624. Authorization of dislocation allowance for moves in 
              connection with base realignments and closures.

    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 631. Effective date for military retiree cost-of-living 
              adjustments for fiscal years 1996, 1997, and 1998.
Sec. 632. Denial of non-regular service retired pay for Reserves 
              receiving certain court-martial sentences.
Sec. 633. Report on payment of annuities for certain military surviving 
              spouses.
Sec. 634. Payment of back quarters and subsistence allowances to World 
              War II veterans who served as guerilla fighters in the 
              Philippines.
Sec. 635. Authority for relief from previous overpayments under minimum 
              income widows program.
Sec. 636. Transitional compensation for dependents of members of the 
              Armed Forces separated for dependent abuse.

                       Subtitle E--Other Matters

Sec. 641. Payment to survivors of deceased members for all leave 
              accrued.
Sec. 642. Repeal of reporting requirements regarding compensation 
              matters.
Sec. 643. Recoupment of administrative expenses in garnishment actions.
Sec. 644. Report on extending to junior noncommissioned officers 
              privileges provided for senior noncommissioned officers.
Sec. 645. Study regarding joint process for determining location of 
              recruiting stations.
Sec. 646. Automatic maximum coverage under Servicemen's Group Life 
              Insurance.
Sec. 647. Termination of Servicemen's Group Life Insurance for members 
              of the Ready Reserve who fail to pay premiums.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Modification of requirements regarding routine physical 
              examinations and immunizations under CHAMPUS.
Sec. 702. Correction of inequities in medical and dental care and death 
              and disability benefits for certain Reserves.
Sec. 703. Medical care for surviving dependents of retired Reserves who 
              die before age 60.
Sec. 704. Medical and dental care for members of the Selected Reserve 
              assigned to early deploying units of the Army Selected 
              Reserve.
Sec. 705. Dental insurance for members of the Selected Reserve.
Sec. 706. Permanent authority to carry out specialized treatment 
              facility program.

                      Subtitle B--TRICARE Program

Sec. 711. Definition of TRICARE program.
Sec. 712. Priority use of military treatment facilities for persons 
              enrolled in managed care initiatives.
Sec. 713. Staggered payment of enrollment fees for TRICARE program.
Sec. 714. Requirement of budget neutrality for TRICARE program to be 
              based on entire program.
Sec. 715. Training in health care management and administration for 
              TRICARE lead agents.
Sec. 716. Pilot program of individualized residential mental health 
              services.
Sec. 717. Evaluation and report on TRICARE program effectiveness.
Sec. 718. Sense of Congress regarding access to health care under 
              TRICARE program for covered beneficiaries who are 
              medicare eligible.

          Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Delay of termination of status of certain facilities as 
              Uniformed Services Treatment Facilities.
Sec. 722. Limitation on expenditures to support Uniformed Services 
              Treatment Facilities.
Sec. 723. Application of CHAMPUS payment rules in certain cases.
Sec. 724. Application of Federal Acquisition Regulation to 
              participation agreements with Uniformed Services 
              Treatment Facilities.
Sec. 725. Development of plan for integrating Uniformed Services 
              Treatment Facilities in managed care programs of 
              Department of Defense.
Sec. 726. Equitable implementation of uniform cost sharing requirements 
              for Uniformed Services Treatment Facilities.
Sec. 727. Elimination of unnecessary annual reporting requirement 
              regarding Uniformed Services Treatment Facilities.

   Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

Sec. 731. Maximum allowable payments to individual health-care 
              providers under CHAMPUS.
Sec. 732. Notification of certain CHAMPUS covered beneficiaries of loss 
              of CHAMPUS eligibility.
              
[[Page H354]]

Sec. 733. Personal services contracts for medical treatment facilities 
              of the Coast Guard.
Sec. 734. Identification of third-party payer situations.
Sec. 735. Redesignation of Military Health Care Account as Defense 
              Health Program Account and two-year availability of 
              certain account funds.
Sec. 736. Expansion of financial assistance program for health-care 
              professionals in reserve components to include dental 
              specialties.
Sec. 737. Applicability of limitation on prices of pharmaceuticals 
              procured for the Coast Guard.
Sec. 738. Restriction on use of Department of Defense facilities for 
              abortions.

                       Subtitle E--Other Matters

Sec. 741. Triservice nursing research.
Sec. 742. Termination of program to train military psychologists to 
              prescribe psychotropic medications.
Sec. 743. Waiver of collection of payments due from certain persons 
              unaware of loss of CHAMPUS eligibility.
Sec. 744. Demonstration program to train military medical personnel in 
              civilian shock trauma units.
Sec. 745. Study regarding Department of Defense efforts to determine 
              appropriate force levels of wartime medical personnel.
Sec. 746. Report on improved access to military health care for covered 
              beneficiaries entitled to medicare.
Sec. 747. Report on effect of closure of Fitzsimons Army Medical 
              Center, Colorado, on provision of care to military 
              personnel, retired military personnel, and their 
              dependents.
Sec. 748. Sense of Congress on continuity of health care services for 
              covered beneficiaries adversely affected by closures of 
              military medical treatment facilities.
Sec. 749. State recognition of military advance medical directives.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

                     Subtitle A--Acquisition Reform

Sec. 801. Inapplicability of limitation on expenditure of 
              appropriations to contracts at or below simplified 
              acquisition threshold.
Sec. 802. Authority to delegate contracting authority.
Sec. 803. Quality control in procurements of critical aircraft and ship 
              spare parts.
Sec. 804. Fees for certain testing services.
Sec. 805. Coordination and communication of defense research 
              activities.
Sec. 806. Addition of certain items to domestic source limitation.
Sec. 807. Encouragement of use of leasing authority.
Sec. 808. Cost reimbursement rules for indirect costs attributable to 
              private sector work of defense contractors.
Sec. 809. Subcontracts for ocean transportation services.
Sec. 810. Prompt resolution of audit recommendations.
Sec. 811. Test program for negotiation of comprehensive subcontracting 
              plans.
Sec. 812. Procurement of items for experimental or test purposes.
Sec. 813. Use of funds for acquisition of designs, processes, technical 
              data, and computer software.
Sec. 814. Independent cost estimates for major defense acquisition 
              programs.
Sec. 815. Construction, repair, alteration, furnishing, and equipping 
              of naval vessels.

                       Subtitle B--Other Matters

Sec. 821. Procurement technical assistance programs.
Sec. 822. Defense facility-wide pilot program.
Sec. 823. Treatment of Department of Defense cable television franchise 
              agreements.
Sec. 824. Extension of pilot mentor-protege program.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                      Subtitle A--General Matters

Sec. 901. Organization of the Office of the Secretary of Defense.
Sec. 902. Reduction in number of Assistant Secretary of Defense 
              positions.
Sec. 903. Deferred repeal of various statutory positions and offices in 
              Office of the Secretary of Defense.
Sec. 904. Redesignation of the position of Assistant to the Secretary 
              of Defense for Atomic Energy.
Sec. 905. Joint Requirements Oversight Council.
Sec. 906. Restructuring of Department of Defense acquisition 
              organization and workforce.
Sec. 907. Report on Nuclear Posture Review and on plans for nuclear 
              weapons management in event of abolition of Department of 
              Energy.
Sec. 908. Redesignation of Advanced Research Projects Agency.

                    Subtitle B--Financial Management

Sec. 911. Transfer authority regarding funds available for foreign 
              currency fluctuations.
Sec. 912. Defense Modernization Account.
Sec. 913. Designation and liability of disbursing and certifying 
              officials.
Sec. 914. Fisher House trust funds.
Sec. 915. Limitation on use of authority to pay for emergency and 
              extraordinary expenses.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Improved funding mechanisms for unbudgeted operations.
Sec. 1004. Operation Provide Comfort.
Sec. 1005. Operation Enhanced Southern Watch.
Sec. 1006. Authority for obligation of certain unauthorized fiscal year 
              1995 defense appropriations.
Sec. 1007. Authorization of prior emergency supplemental appropriations 
              for fiscal year 1995.
Sec. 1008. Authorization reductions to reflect savings from revised 
              economic assumptions.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Iowa class battleships.
Sec. 1012. Transfer of naval vessels to certain foreign countries.
Sec. 1013. Contract options for LMSR vessels.
Sec. 1014. National Defense Reserve Fleet.
Sec. 1015. Naval salvage facilities.
Sec. 1016. Vessels subject to repair under phased maintenance 
              contracts.
Sec. 1017. Clarification of requirements relating to repairs of 
              vessels.
Sec. 1018. Sense of Congress concerning naming of amphibious ships.
Sec. 1019. Sense of Congress concerning naming of naval vessel.
Sec. 1020. Transfer of riverine patrol craft.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Revision and clarification of authority for Federal support 
              of drug interdiction and counter-drug activities of the 
              National Guard.

                     Subtitle D--Civilian Personnel

Sec. 1031. Management of Department of Defense civilian personnel.
Sec. 1032. Conversion of military positions to civilian positions.
Sec. 1033. Elimination of 120-day limitation on details of certain 
              employees.
Sec. 1034. Authority for civilian employees of Department of Defense to 
              participate voluntarily in reductions in force.
Sec. 1035. Authority to pay severance payments in lump sums.
Sec. 1036. Continued health insurance coverage.
Sec. 1037. Revision of authority for appointments of involuntarily 
              separated military reserve technicians.
Sec. 1038. Wearing of uniform by National Guard technicians.
Sec. 1039. Military leave for military reserve technicians for certain 
              duty overseas.
Sec. 1040. Personnel actions involving employees of nonappropriated 
              fund instrumentalities.
Sec. 1041. Coverage of nonappropriated fund employees under authority 
              for flexible and compressed work schedules.
Sec. 1042. Limitation on provision of overseas living quarters 
              allowances for nonappropriated fund instrumentality 
              employees.
Sec. 1043. Elections relating to retirement coverage.
Sec. 1044. Extension of temporary authority to pay civilian employees 
              with respect to the evacuation from Guantanamo, Cuba.

            Subtitle E--Miscellaneous Reporting Requirements

Sec. 1051. Report on fiscal year 1997 budget submission regarding Guard 
              and reserve components.
Sec. 1052. Report on desirability and feasibility of providing 
              authority for use of funds derived from recovered losses 
              resulting from contractor fraud.
Sec. 1053. Report on national policy on protecting the national 
              information infrastructure against strategic attacks.
Sec. 1054. Report on Department of Defense boards and commissions.
Sec. 1055. Date for submission of annual report on special access 
              programs.

  Subtitle F--Repeal of Certain Reporting and Other Requirements and 
                              Authorities

Sec. 1061. Miscellaneous provisions of law.
Sec. 1062. Reports required by title 10, United States Code.
Sec. 1063. Reports required by defense authorization and appropriations 
              Acts.
Sec. 1064. Reports required by other provisions of law.

          Subtitle G--Department of Defense Education Programs

Sec. 1071. Continuation of Uniformed Services University of the Health 
              Sciences.
              
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Sec. 1072. Additional graduate schools and programs at Uniformed 
              Services University of the Health Sciences.
Sec. 1073. Funding for adult education programs for military personnel 
              and dependents outside the United States.
Sec. 1074. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 1075. Sharing of personnel of Department of Defense domestic 
              dependent schools and defense dependents' education 
              system.
Sec. 1076. Increase in reserve component Montgomery GI Bill educational 
              assistance allowance with respect to skills or 
              specialties for which there is a critical shortage of 
              personnel.
Sec. 1077. Date for annual report on reserve component Montgomery GI 
              Bill educational assistance program.
Sec. 1078. Scope of education programs of Community College of the Air 
              Force.
Sec. 1079. Amendments to education loan repayment programs.

                       Subtitle H--Other Matters

Sec. 1081. National defense technology and industrial base, defense 
              reinvestment, and defense conversion programs.
Sec. 1082. Ammunition industrial base.
Sec. 1083. Policy concerning excess defense industrial capacity.
Sec. 1084. Sense of Congress concerning access to secondary school 
              student information for recruiting purposes.
Sec. 1085. Disclosure of information concerning unaccounted for United 
              States personnel from the Korean Conflict, the Vietnam 
              era, and the Cold War.
Sec. 1086. Operational support airlift aircraft fleet.
Sec. 1087. Civil Reserve Air Fleet.
Sec. 1088. Damage or loss to personal property due to emergency 
              evacuation or extraordinary circumstances.
Sec. 1089. Authority to suspend or terminate collection actions against 
              deceased members.
Sec. 1090. Check cashing and exchange transactions for dependents of 
              United States Government personnel.
Sec. 1091. Designation of National Maritime Center.
Sec. 1092. Sense of Congress regarding historic preservation of Midway 
              Islands.
Sec. 1093. Sense of Senate regarding Federal spending.
Sec. 1094. Extension of authority for vessel war risk insurance.

               TITLE XI--UNIFORM CODE OF MILITARY JUSTICE

Sec. 1101. Short title.
Sec. 1102. References to Uniform Code of Military Justice.

                          Subtitle A--Offenses

Sec. 1111. Refusal to testify before court-martial.
Sec. 1112. Flight from apprehension.
Sec. 1113. Carnal knowledge.

                         Subtitle B--Sentences

Sec. 1121. Effective date for forfeitures of pay and allowances and 
              reductions in grade by sentence of court-martial.
Sec. 1122. Required forfeiture of pay and allowances during 
              confinement.
Sec. 1123. Deferment of confinement.

              Subtitle C--Pretrial and Post-Trial Actions

Sec. 1131. Article 32 investigations.
Sec. 1132. Submission of matters to the convening authority for 
              consideration.
Sec. 1133. Commitment of accused to treatment facility by reason of 
              lack of mental capacity or mental responsibility.

                     Subtitle D--Appellate Matters

Sec. 1141. Appeals by the United States.
Sec. 1142. Repeal of termination of authority for Chief Justice of 
              United States to designate Article III judges for 
              temporary service on Court of Appeals for the Armed 
              Forces.

                       Subtitle E--Other Matters

Sec. 1151. Advisory committee on criminal law jurisdiction over 
              civilians accompanying the Armed Forces in time of armed 
              conflict.
Sec. 1152. Time after accession for initial instruction in the Uniform 
              Code of Military Justice.
Sec. 1153. Technical amendment.

 TITLE XII--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET 
                                 UNION

Sec. 1201. Specification of Cooperative Threat Reduction programs.
Sec. 1202. Fiscal year 1996 funding allocations.
Sec. 1203. Prohibition on use of funds for peacekeeping exercises and 
              related activities with Russia.
Sec. 1204. Revision to authority for assistance for weapons 
              destruction.
Sec. 1205. Prior notice to Congress of obligation of funds.
Sec. 1206. Report on accounting for United States assistance.
Sec. 1207. Limitation on assistance to nuclear weapons scientists of 
              former Soviet Union.
Sec. 1208. Limitations relating to offensive biological warfare program 
              of Russia.
Sec. 1209. Limitation on use of funds for chemical weapons destruction 
              facility.

             TITLE XIII--MATTERS RELATING TO OTHER NATIONS

                  Subtitle A--Peacekeeping Provisions

Sec. 1301. Limitation on use of Department of Defense funds for United 
              States share of costs of United Nations peacekeeping 
              activities.

              Subtitle B--Humanitarian Assistance Programs

Sec. 1311. Overseas humanitarian, disaster, and civic aid programs.
Sec. 1312. Humanitarian assistance.
Sec. 1313. Landmine clearance program.

            Subtitle C--Arms Exports and Military Assistance

Sec. 1321. Defense export loan guarantees.
Sec. 1322. National security implications of United States export 
              control policy.
Sec. 1323. Department of Defense review of export licenses for certain 
              biological pathogens.
Sec. 1324. Annual reports on improving export control mechanisms and on 
              military assistance.
Sec. 1325. Report on personnel requirements for control of transfer of 
              certain weapons.

 Subtitle D--Burdensharing and Other Cooperative Activities Involving 
                            Allies and NATO

Sec. 1331. Accounting for burdensharing contributions.
Sec. 1332. Authority to accept contributions for expenses of relocation 
              within host nation of United States Armed Forces 
              overseas.
Sec. 1333. Revised goal for allied share of costs for United States 
              installations in Europe.
Sec. 1334. Exclusion of certain forces from European end strength 
              limitation.
Sec. 1335. Cooperative research and development agreements with NATO 
              organizations.
Sec. 1336. Support services for the Navy at the port of Haifa, Israel.

                       Subtitle E--Other Matters

Sec. 1341. Prohibition on financial assistance to terrorist countries.
Sec. 1342. Judicial assistance to the International Tribunal for 
              Yugoslavia and to the International Tribunal for Rwanda.
Sec. 1343. Semiannual reports concerning United States-People's 
              Republic of China Joint Defense Conversion Commission.

                    TITLE XIV--ARMS CONTROL MATTERS

Sec. 1401. Revision of definition of landmine for purposes of landmine 
              export moratorium.
Sec. 1402. Reports on moratorium on use by Armed Forces of 
              antipersonnel landmines.
Sec. 1403. Extension and amendment of counterproliferation authorities.
Sec. 1404. Limitation on retirement or dismantlement of strategic 
              nuclear delivery systems.
Sec. 1405. Sense of Congress on ABM treaty violations.
Sec. 1406. Sense of Congress on ratification of Chemical Weapons 
              Convention and START II Treaty.
Sec. 1407. Implementation of arms control agreements.
Sec. 1408. Iran and Iraq arms nonproliferation.

              TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

Sec. 1501. Amendments related to Reserve Officer Personnel Management 
              Act.
Sec. 1502. Amendments to reflect name change of Committee on Armed 
              Services of the House of Representatives.
Sec. 1503. Miscellaneous amendments to title 10, United States Code.
Sec. 1504. Miscellaneous amendments to annual defense authorization 
              Acts.
Sec. 1505. Miscellaneous amendments to other laws.
Sec. 1506. Coordination with other amendments.

TITLE XVI--CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE AND FIREARMS 
                                 SAFETY

Sec. 1601. Short title.

         Subtitle A--Establishment and Operation of Corporation

Sec. 1611. Establishment of the Corporation.
Sec. 1612. Conduct of Civilian Marksmanship Program.
Sec. 1613. Eligibility for participation in Civilian Marksmanship 
              Program.
Sec. 1614. Issuance, loan, and sale of firearms and ammunition by the 
              Corporation.
              
[[Page H356]]

Sec. 1615. Transfer of firearms and ammunition from the Army to the 
              Corporation.
Sec. 1616. Reservation by the Army of firearms and ammunition for the 
              Corporation.
Sec. 1617. Army logistical support for the program.
Sec. 1618. General authorities of the Corporation.
Sec. 1619. Distribution of Corporate assets in event of dissolution.

                  Subtitle B--Transitional Provisions

Sec. 1621. Transfer of funds and property to the Corporation.
Sec. 1622. Continuation of eligibility for certain civil service 
              benefits for former Federal employees of Civilian 
              Marksmanship Program.
Sec. 1623. Certification of completion of transition.
Sec. 1624. Repeal of authority for conduct of Civilian Marksmanship 
              Program by the Army.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Revision of fiscal year 1995 authorization of appropriations 
              to clarify availability of funds for large anechoic 
              chamber facility, Patuxent River Naval Warfare Center, 
              Maryland.
Sec. 2206. Authority to carry out land acquisition project, Hampton 
              Roads, Virginia.
Sec. 2207. Acquisition of land, Henderson Hall, Arlington, Virginia.
Sec. 2208. Acquisition or construction of military family housing in 
              vicinity of San Diego, California.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Retention of accrued interest on funds deposited for 
              construction of family housing, Scott Air Force Base, 
              Illinois.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Military family housing private investment.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Limitations on use of Department of Defense Base Closure 
              Account 1990.
Sec. 2407. Modification of authority to carry out fiscal year 1995 
              projects.
Sec. 2408. Reduction in amounts authorized to be appropriated for 
              fiscal year 1994 contingency construction projects.

      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
              acquisition projects.
Sec. 2602. Reduction in amount authorized to be appropriated for fiscal 
              year 1994 Air National Guard Projects.
Sec. 2603. Correction in authorized uses of funds for Army National 
              Guard projects in Mississippi.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
              specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1993 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1992 
              projects.

                    TITLE XXVIII--GENERAL PROVISIONS

         Subtitle A--Military Housing Privatization Initiative

Sec. 2801. Alternative authority for construction and improvement of 
              military housing.
Sec. 2802. Expansion of authority for limited partnerships for 
              development of military family housing.

  Subtitle B--Other Military Construction Program and Military Family 
                            Housing Changes

Sec. 2811. Special threshold for unspecified minor construction 
              projects to correct life, health, or safety deficiencies.
Sec. 2812. Clarification of scope of unspecified minor construction 
              authority.
Sec. 2813. Temporary authority to waive net floor area limitation for 
              family housing acquired in lieu of construction.
Sec. 2814. Reestablishment of authority to waive net floor area 
              limitation on acquisition by purchase of certain military 
              family housing.
Sec. 2815. Temporary authority to waive limitations on space by pay 
              grade for military family housing units.
Sec. 2816. Rental of family housing in foreign countries.
Sec. 2817. Clarification of scope of report requirement on cost 
              increases under contracts for military family housing 
              construction.
Sec. 2818. Authority to convey damaged or deteriorated military family 
              housing.
Sec. 2819. Energy and water conservation savings for the Department of 
              Defense.
Sec. 2820. Extension of authority to enter into leases of land for 
              special operations activities.
Sec. 2821. Disposition of amounts recovered as a result of damage to 
              real property.
Sec. 2822. Pilot program to provide interest rate buy down authority on 
              loans for housing within housing shortage areas at 
              military installations.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2831. Deposit of proceeds from leases of property located at 
              installations being closed or realigned.
Sec. 2832. In-kind consideration for leases at installations to be 
              closed or realigned.
Sec. 2833. Interim leases of property approved for closure or 
              realignment.
Sec. 2834. Authority to lease property requiring environmental 
              remediation at installations approved for closure or 
              realignment.
Sec. 2835. Final funding for Defense Base Closure and Realignment 
              Commission.
Sec. 2836. Exercise of authority delegated by the Administrator of 
              General Services.
Sec. 2837. Lease back of property disposed from installations approved 
              for closure or realignment.
Sec. 2838. Improvement of base closure and realignment process 
              regarding disposal of property.
Sec. 2839. Agreements for certain services at installations being 
              closed.
Sec. 2840. Authority to transfer property at military installations to 
              be closed to persons who construct or provide military 
              family housing.
Sec. 2841. Use of single base closure authorities for disposal of 
              property and facilities at Fort Holabird, Maryland.

                 Subtitle D--Land Conveyances Generally

                        Part I--Army Conveyances

Sec. 2851. Transfer of jurisdiction, Fort Sam Houston, Texas.
Sec. 2852. Transfer of jurisdiction, Fort Bliss, Texas.
Sec. 2853. Transfer of jurisdiction and land conveyance, Fort Devens 
              Military Reservation, Massachusetts.
Sec. 2854. Modification of land conveyance, Fort Belvoir, Virginia.
Sec. 2855. Land exchange, Fort Lewis, Washington.
Sec. 2856. Land exchange, Army Reserve Center, Gainesville, Georgia.
Sec. 2857. Land conveyance, Holston Army Ammunition Plant, Mount 
              Carmel, Tennessee.
Sec. 2858. Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
              Indiana.
Sec. 2859. Land conveyance, Fort Ord, California.
Sec. 2860. Land conveyance, Parks Reserve Forces Training Area, Dublin, 
              California.
Sec. 2861. Land conveyance, Army Reserve Center, Youngstown, Ohio.
Sec. 2862. Land conveyance, Army Reserve Property, Fort Sheridan, 
              Illinois.
Sec. 2863. Land conveyance, property underlying Cummins Apartment 
              Complex, Fort Holabird, Maryland.
Sec. 2864. Modification of existing land conveyance, Army property, 
              Hamilton Air Force Base, California.

                       Part II--Navy Conveyances

Sec. 2865. Transfer of jurisdiction, Naval Weapons Industrial Reserve 
              Plant, Calverton, New York.
Sec. 2866. Modification of land conveyance, Naval Weapons Industrial 
              Reserve Plant, Calverton, New York.
              
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Sec. 2867. Land conveyance alternative to existing lease authority, 
              Naval Supply Center, Oakland, California.
Sec. 2868. Land conveyance, Naval Weapons Industrial Reserve Plant, 
              McGregor, Texas.
Sec. 2869. Land conveyance, Naval Surface Warfare Center, Memphis, 
              Tennessee.
Sec. 2870. Land conveyance, Navy property, Fort Sheridan, Illinois.
Sec. 2871. Land conveyance, Naval Communications Station, Stockton, 
              California.
Sec. 2872. Lease of property, Naval Air Station and Marine Corps Air 
              Station, Miramar, California.

                    Part III--Air Force Conveyances

Sec. 2874. Land acquisition or exchange, Shaw Air Force Base, South 
              Carolina.
Sec. 2875. Land conveyance, Elmendorf Air Force Base, Alaska.
Sec. 2876. Land conveyance, Radar Bomb Scoring Site, Forsyth, Montana.
Sec. 2877. Land conveyance, Radar Bomb Scoring Site, Powell, Wyoming.
Sec. 2878. Land conveyance, Avon Park Air Force Range, Florida.

            Subtitle E--Land Conveyances Involving Utilities

Sec. 2881. Conveyance of resource recovery facility, Fort Dix, New 
              Jersey.
Sec. 2882. Conveyance of water and wastewater treatment plants, Fort 
              Gordon, Georgia.
Sec. 2883. Conveyance of electricity distribution system, Fort Irwin, 
              California.
Sec. 2884. Conveyance of water treatment plant, Fort Pickett, Virginia.

                       Subtitle F--Other Matters

Sec. 2891. Authority to use funds for certain educational purposes.
Sec. 2892. Department of Defense Laboratory Revitalization 
              Demonstration Program.
Sec. 2893. Authority for Port Authority of State of Mississippi to use 
              Navy property at Naval Construction Battalion Center, 
              Gulfport, Mississippi.
Sec. 2894. Prohibition on joint use of Naval Air Station and Marine 
              Corps Air Station, Miramar, California.
Sec. 2895. Report regarding Army water craft support facilities and 
              activities.
Sec. 2896. Residual value reports.
Sec. 2897. Sense of Congress and report regarding Fitzsimons Army 
              Medical Center, Colorado.

 TITLE XXIX--LAND CONVEYANCES INVOLVING JOLIET ARMY AMMUNITION PLANT, 
                                ILLINOIS

Sec. 2901. Short title.
Sec. 2902. Definitions.

   Subtitle A--Conversion of Joliet Army Ammunition Plant to Midewin 
                       National Tallgrass Prairie

Sec. 2911. Principles of transfer.
Sec. 2912. Transfer of management responsibilities and jurisdiction 
              over Arsenal.
Sec. 2913. Responsibility and liability.
Sec. 2914. Establishment and administration of Midewin National 
              Tallgrass Prairie.
Sec. 2915. Special management requirements for Midewin National 
              Tallgrass Prairie.
Sec. 2916. Special transfer rules for certain Arsenal parcels intended 
              for MNP.

  Subtitle B--Other Land Conveyances Involving Joliet Army Ammunition 
                                 Plant

Sec. 2921. Conveyance of certain real property at Arsenal for a 
              national cemetery.
Sec. 2922. Conveyance of certain real property at Arsenal for a county 
              landfill.
Sec. 2923. Conveyance of certain real property at Arsenal for 
              industrial parks.

                  Subtitle C--Miscellaneous Provisions

Sec. 2931. Degree of environmental cleanup.
Sec. 2932. Retention of property used for environmental cleanup.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
              activities.
Sec. 3127. Funds available for all national security programs of the 
              Department of Energy.
Sec. 3128. Availability of funds.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Authority to conduct program relating to fissile materials.
Sec. 3132. National Ignition Facility.
Sec. 3133. Tritium production program.
Sec. 3134. Payment of penalties.
Sec. 3135. Fissile materials disposition.
Sec. 3136. Tritium recycling.
Sec. 3137. Manufacturing infrastructure for refabrication and 
              certification of nuclear weapons stockpile.
Sec. 3138. Hydronuclear experiments.
Sec. 3139. Limitation on authority to conduct hydronuclear tests.
Sec. 3140. Fellowship program for development of skills critical to the 
              Department of Energy nuclear weapons complex.
Sec. 3141. Limitation on use of funds for certain research and 
              development purposes.
Sec. 3142. Processing and treatment of high-level nuclear waste and 
              spent nuclear fuel rods.
Sec. 3143. Protection of workers at nuclear weapons facilities.
Sec. 3144. Department of Energy Declassification Productivity 
              Initiative.

                       Subtitle D--Other Matters

Sec. 3151. Report on foreign tritium purchases.
Sec. 3152. Study on nuclear test readiness postures.
Sec. 3153. Master plan for the certification, stewardship, and 
              management of warheads in the nuclear weapons stockpile.
Sec. 3154. Prohibition on international inspections of Department of 
              Energy facilities unless protection of restricted data is 
              certified.
Sec. 3155. Review of certain documents before declassification and 
              release.
Sec. 3156. Accelerated schedule for environmental restoration and waste 
              management activities.
Sec. 3157. Sense of Congress regarding certain environmental 
              restoration requirements.
Sec. 3158. Responsibility for Defense Programs Emergency Response 
              Program.
Sec. 3159. Requirements for Department of Energy weapons activities 
              budgets for fiscal years after fiscal year 1996.
Sec. 3160. Report on hydronuclear testing.
Sec. 3161. Applicability of Atomic Energy Community Act of 1955 to Los 
              Alamos, New Mexico.
Sec. 3162. Sense of Congress regarding shipments of spent nuclear fuel.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

        Subtitle A--Authorization of Disposals and Use of Funds

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of chromite and manganese ores and chromium ferro 
              and manganese metal electrolytic.
Sec. 3304. Restrictions on disposal of manganese ferro.
Sec. 3305. Titanium initiative to support battle tank upgrade program.

                    Subtitle B--Programmatic Change

Sec. 3311. Transfer of excess defense-related materials to stockpile 
              for disposal.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

         Subtitle A--Administration of Naval Petroleum Reserves

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
              year 1996.
Sec. 3403. Extension of operating contract for Naval Petroleum Reserve 
              Numbered 1.

              Subtitle B--Sale of Naval Petroleum Reserve

Sec. 3411. Definitions.
Sec. 3412. Sale of Naval Petroleum Reserve Numbered 1.
Sec. 3413. Effect of sale of reserve.
Sec. 3414. Conditions on sale process.
Sec. 3415. Treatment of State of California claim regarding reserve.
Sec. 3416. Study of future of other naval petroleum reserves.

                  TITLE XXXV--PANAMA CANAL COMMISSION

              Subtitle A--Authorization of Appropriations

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Expenditures in accordance with other laws.

   Subtitle B--Reconstitution of Commission as Government Corporation

Sec. 3521. Short title.
Sec. 3522. Reconstitution of Commission as Government corporation.
Sec. 3523. Supervisory Board.
Sec. 3524. General and specific powers of Commission.
Sec. 3525. Congressional review of budget.
Sec. 3526. Audits.
Sec. 3527. Prescription of measurement rules and rates of tolls.

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Sec. 3528. Procedures for changes in rules of measurement and rates of 
              tolls.
Sec. 3529. Miscellaneous technical amendments.
Sec. 3530. Conforming amendment to title 31, United States Code.

                 DIVISION D--FEDERAL ACQUISITION REFORM

Sec. 4001. Short title.

                         TITLE XLI--COMPETITION

Sec. 4101. Efficient competition.
Sec. 4102. Efficient approval procedures.
Sec. 4103. Efficient competitive range determinations.
Sec. 4104. Preaward debriefings.
Sec. 4105. Design-build selection procedures.

                      TITLE XLII--COMMERCIAL ITEMS

Sec. 4201. Commercial item exception to requirement for cost or pricing 
              data.
Sec. 4202. Application of simplified procedures to certain commercial 
              items.
Sec. 4203. Inapplicability of certain procurement laws to commercially 
              available off-the-shelf items.
Sec. 4204. Amendment of commercial items definition.
Sec. 4205. Inapplicability of cost accounting standards to contracts 
              and subcontracts for commercial items.

               TITLE XLIII--ADDITIONAL REFORM PROVISIONS

          Subtitle A--Additional Acquisition Reform Provisions

Sec. 4301. Elimination of certain certification requirements.
Sec. 4302. Authorities conditioned on FACNET capability.
Sec. 4303. International competitiveness.
Sec. 4304. Procurement integrity.
Sec. 4305. Further acquisition streamlining provisions.
Sec. 4306. Value engineering for Federal agencies.
Sec. 4307. Acquisition workforce.
Sec. 4308. Demonstration project relating to certain personnel 
              management policies and procedures.
Sec. 4309. Cooperative purchasing.
Sec. 4310. Procurement notice technical amendments.
Sec. 4311. Micro-purchases without competitive quotations.

                    Subtitle B--Technical Amendments

Sec. 4321. Amendments related to Federal Acquisition Streamlining Act 
              of 1994.
Sec. 4322. Miscellaneous amendments to Federal acquisition laws.

             TITLE XLIV--EFFECTIVE DATES AND IMPLEMENTATION

Sec. 4401. Effective date and applicability.
Sec. 4402. Implementing regulations.

          DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

Sec. 5001. Short title.
Sec. 5002. Definitions.

  TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                     Subtitle A--General Authority

Sec. 5101. Repeal of central authority of the Administrator of General 
              Services.

      Subtitle B--Director of the Office of Management and Budget

Sec. 5111. Responsibility of Director.
Sec. 5112. Capital planning and investment control.
Sec. 5113. Performance-based and results-based management.

                     Subtitle C--Executive Agencies

Sec. 5121. Responsibilities.
Sec. 5122. Capital planning and investment control.
Sec. 5123. Performance and results-based management.
Sec. 5124. Acquisitions of information technology.
Sec. 5125. Agency Chief Information Officer.
Sec. 5126. Accountability.
Sec. 5127. Significant deviations.
Sec. 5128. Interagency support.

                   Subtitle D--Other Responsibilities

Sec. 5131. Responsibilities regarding efficiency, security, and privacy 
              of Federal computer systems.
Sec. 5132. Sense of Congress.

                 Subtitle E--National Security Systems

Sec. 5141. Applicability to national security systems.
Sec. 5142. National security system defined.

     TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

Sec. 5201. Procurement procedures.
Sec. 5202. Incremental acquisition of information technology.

     TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

                 Subtitle A--Conduct of Pilot Programs

Sec. 5301. Authority to conduct pilot programs.
Sec. 5302. Evaluation criteria and plans.
Sec. 5303. Report.
Sec. 5304. Recommended legislation.
Sec. 5305. Rule of construction.

                  Subtitle B--Specific Pilot Programs

Sec. 5311. Share-in-savings pilot program.
Sec. 5312. Solutions-based contracting pilot program.

     TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

Sec. 5401. On-line multiple award schedule contracting.
Sec. 5402. Identification of excess and surplus computer equipment.
Sec. 5403. Access of certain information in information systems to the 
              directory established under section 4101 of title 44, 
              United States Code.

   TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

Sec. 5501. Period for processing protests.
Sec. 5502. Availability of funds following GAO resolution of challenge 
              to contracting action.

             TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

Sec. 5601. Amendments to title 10, United States Code.
Sec. 5602. Amendments to title 28, United States Code.
Sec. 5603. Amendment to title 31, United States Code.
Sec. 5604. Amendments to title 38, United States Code.
Sec. 5605. Provisions of title 44, United States Code, relating to 
              paperwork reduction.
Sec. 5606. Amendment to title 49, United States Code.
Sec. 5607. Other laws.
Sec. 5608. Clerical amendments.

     TITLE LVII--EFFECTIVE DATE, SAVINGS PROVISIONS, AND RULES OF 
                              CONSTRUCTION

Sec. 5701. Effective date.
Sec. 5702. Savings provisions.
Sec. 5703. Rules of construction.

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

       For purposes of this Act, the term ``congressional defense 
     committees'' means--
       (1) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on National Security and the Committee on 
     Appropriations of the House of Representatives.

     SEC. 4. EXTENSION OF TIME FOR SUBMISSION OF REPORTS.

       In the case of any provision of this Act, or any amendment 
     made by a provision of this Act, requiring the submission of 
     a report to Congress (or any committee of Congress), that 
     report shall be submitted not later than the later of--
       (1) the date established for submittal of the report in 
     such provision or amendment; or
       (2) the date that is 45 days after the date of the 
     enactment of this Act.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
                          TITLE I--PROCUREMENT
              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1996 for procurement for the Army as follows:
       (1) For aircraft, $1,558,805,000.
       (2) For missiles, $865,555,000.
       (3) For weapons and tracked combat vehicles, 
     $1,652,745,000.
       (4) For ammunition, $1,093,991,000.
       (5) For other procurement, $2,763,443,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 1996 for procurement for the Navy as follows:
       (1) For aircraft, $4,572,394,000.
       (2) For weapons, including missiles and torpedoes, 
     $1,659,827,000.
       (3) For shipbuilding and conversion, $6,643,958,000.
       (4) For other procurement, $2,414,771,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 1996 for procurement for the 
     Marine Corps in the amount of $458,947,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for procurement of ammunition 
     for the Navy and the Marine Corps in the amount of 
     $430,053,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1996 for procurement for the Air Force as follows:
       (1) For aircraft, $7,349,783,000.
       (2) For missiles, $2,938,883,000.
       (3) For ammunition, $343,848,000.
       (4) For other procurement, $6,268,430,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1996 for Defense-wide procurement in the amount of 
     $2,124,379,000.

     SEC. 105. RESERVE COMPONENTS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1996 for procurement of aircraft, vehicles, 
     communications equipment, and other equipment for the reserve 
     components of the Armed Forces as follows:
       (1) For the Army National Guard, $160,000,000.
       (2) For the Air National Guard, $255,000,000.
       (3) For the Army Reserve, $85,700,000.
       (4) For the Naval Reserve, $67,000,000.
       (5) For the Air Force Reserve, $135,600,000.
       (6) For the Marine Corps Reserve, $73,700,000.

     SEC. 106. DEFENSE INSPECTOR GENERAL.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1996 for procurement for the Inspector General of the 
     Department of Defense in the amount of $1,000,000.

     SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

       There is hereby authorized to be appropriated for fiscal 
     year 1996 the amount of $672,250,000 for--
       (1) the destruction of lethal chemical agents and munitions 
     in accordance with 

[[Page H359]]
     section 1412 of the Department of Defense Authorization Act, 1986 (50 
     U.S.C. 1521); and
       (2) the destruction of chemical warfare materiel of the 
     United States that is not covered by section 1412 of such 
     Act.

     SEC. 108. DEFENSE HEALTH PROGRAMS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1996 for the Department of Defense for procurement for 
     carrying out health care programs, projects, and activities 
     of the Department of Defense in the total amount of 
     $288,033,000.
                       Subtitle B--Army Programs

     SEC. 111. PROCUREMENT OF OH-58D ARMED KIOWA WARRIOR 
                   HELICOPTERS.

       The prohibition in section 133(a)(2) of the National 
     Defense Authorization Act for Fiscal Years 1990 and 1991 
     (Public Law 101-189; 103 Stat. 1383) does not apply to the 
     obligation of funds in amounts not to exceed $140,000,000 for 
     the procurement of not more than 20 OH-58D Armed Kiowa 
     Warrior aircraft from funds appropriated for fiscal year 1996 
     pursuant to section 101.

     SEC. 112. REPEAL OF REQUIREMENTS FOR ARMORED VEHICLE 
                   UPGRADES.

       Subsection (j) of section 21 of the Arms Export Control Act 
     (22 U.S.C. 2761) is repealed.

     SEC. 113. MULTIYEAR PROCUREMENT OF HELICOPTERS.

       The Secretary of the Army may, in accordance with section 
     2306b of title 10, United States Code, enter into multiyear 
     procurement contracts for procurement of the following:
       (1) AH-64D Longbow Apache attack helicopters.
       (2) UH-60 Black Hawk utility helicopters.

     SEC. 114. REPORT ON AH-64D ENGINE UPGRADES.

       No later than February 1, 1996, the Secretary of the Army 
     shall submit to Congress a report on plans to procure T700-
     701C engine upgrade kits for Army AH-64D helicopters. The 
     report shall include--
       (1) a plan to provide for the upgrade of all Army AH-64D 
     helicopters with T700-701C engine kits commencing in fiscal 
     year 1996; and
       (2) a detailed timeline and statement of funding 
     requirements for the engine upgrade program described in 
     paragraph (1).

     SEC. 115. REQUIREMENT FOR USE OF PREVIOUSLY AUTHORIZED 
                   MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY SMALL 
                   ARMS PROCUREMENT.

       (a) Requirement.--The Secretary of the Army (subject to the 
     provision of authority in an appropriations Act) shall enter 
     into a multiyear procurement contract during fiscal year 
     1997 in accordance with section 115(b)(2) of the National 
     Defense Authorization for Fiscal Year 1995 (Public Law 
     103-337; 108 Stat. 2681).
       (b) Technical Amendment.--Section 115(b)(1) of the National 
     Defense Authorization for Fiscal Year 1995 (Public Law 103-
     337; 108 Stat. 2681) is amended by striking out ``2306(h)'' 
     and inserting in lieu thereof ``2306b''.
                       Subtitle C--Navy Programs

     SEC. 131. NUCLEAR ATTACK SUBMARINES.

       (a) Amounts Authorized.--(1) Of the amount authorized by 
     section 102 to be appropriated for Shipbuilding and 
     Conversion, Navy, for fiscal year 1996--
       (A) $700,000,000 is available for construction of the third 
     vessel (designated SSN-23) in the Seawolf attack submarine 
     class, which shall be the final vessel in that class; and
       (B) $804,498,000 is available for long-lead and advance 
     construction and procurement of components for construction 
     of the fiscal year 1998 and fiscal year 1999 submarines 
     (previously designated by the Navy as the New Attack 
     Submarine), of which--
       (i) $704,498,000 shall be available for long-lead and 
     advance construction and procurement for the fiscal year 1998 
     submarine, which shall be built by Electric Boat Division; 
     and
       (ii) $100,000,000 shall be available for long-lead and 
     advance construction and procurement for the fiscal year 1999 
     submarine, which shall be built by Newport News Shipbuilding.
       (2) Of the amount authorized by section 201(2), $10,000,000 
     shall be available only for participation of Newport News 
     Shipbuilding in the design of the submarine previously 
     designated by the Navy as the New Attack Submarine.
       (b) Competition, Report, and Budget Revision Limitations.--
     (1) Of the amounts specified in subsection (a)(1), not more 
     than $200,000,000 may be obligated or expended until the 
     Secretary of the Navy certifies in writing to the Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives that procurement of 
     nuclear attack submarines to be constructed beginning--
       (A) after fiscal year 1999, or
       (B) if four submarines are procured as provided for in the 
     plan described in subsection (c), after fiscal year 2001,
     will be under one or more contracts that are entered into 
     after competition between potential competitors (as defined 
     in subsection (k)) in which the Secretary solicits 
     competitive proposals and awards the contract or contracts on 
     the basis of price.
       (2) Of the amounts specified in subsection (a)(1), not more 
     than $1,000,000,000 may be obligated or expended until the 
     Secretary of Defense, not later than March 15, 1996, 
     accomplishes each of the following:
       (A) Submits to the Committee on Armed Services of the 
     Senate and the Committee on National Security of the House of 
     Representatives in accordance with subsection (c) the plan 
     required by that subsection for a program to produce a more 
     capable, less expensive nuclear attack submarine than the 
     submarine design previously designated by the Navy as the New 
     Attack Submarine.
       (B) Notwithstanding any other provision of law, or the 
     funding level in the President's budget for each year after 
     fiscal year 1996, the Under Secretary of Defense 
     (Comptroller) shall incorporate the costs of the plan 
     required by subsection (c) in the Future Years Defense 
     Program (FYDP) even if the total cost of that Program exceeds 
     the President's budget.
       (C) Directs that the Under Secretary of Defense for 
     Acquisition and Technology conduct oversight over the 
     development and improvement of the nuclear attack submarine 
     program of the Navy. Officials of the Department of the Navy 
     exercising management oversight of the program shall report 
     to the Under Secretary of Defense for Acquisition and 
     Technology with respect to that program.
       (c) Plan for Fiscal Year 1998, 1999, 2000, and 2001 
     Submarines.--(1) The Secretary of Defense shall, not later 
     than March 15, 1996, develop (and submit to the committees 
     specified in subsection (b)(2)(A)) a detailed plan for 
     development of a program that will lead to production of a 
     more capable, less expensive submarine than the submarine 
     previously designated as the New Attack Submarine.
       (2) As part of such plan, the Secretary shall provide for a 
     program for the design, development, and procurement of four 
     nuclear attack submarines to be procured during fiscal years 
     1998 through 2001, the purpose of which shall be to develop 
     and demonstrate new technologies that will result in each 
     successive submarine of those four being a more capable and 
     more affordable submarine than the submarine that preceded 
     it. The program shall be structured so that--
       (A) one of the four submarines is to be constructed with 
     funds appropriated for each fiscal year from fiscal year 1998 
     through fiscal year 2001;
       (B) in order to ensure flexibility for innovation, the 
     fiscal year 1998 and the fiscal year 2000 submarines are to 
     be constructed by the Electric Boat Division and the fiscal 
     year 1999 and the fiscal year 2001 submarines are to be 
     constructed by Newport News Shipbuilding;
       (C) the design designated by the Navy for the submarine 
     previously designated as the New Attack Submarine will be 
     used as the base design by both contractors;
       (D) each contractor shall be called upon to propose 
     improvements, including design improvements, for each 
     successive submarine as new and better technology is 
     demonstrated and matures so that--
       (i) each successive submarine is more capable and more 
     affordable; and
       (ii) the design for a future class of nuclear attack 
     submarines will incorporate the latest, best, and most 
     affordable technology; and
       (E) the fifth and subsequent nuclear attack submarines to 
     be built after the SSN-23 submarine shall be procured as 
     required by subsection (b)(1).
       (3) The plan under paragraph (1) shall--
       (A) set forth a program to accomplish the design, 
     development, and construction of the four submarines taking 
     maximum advantage of a streamlined acquisition process, as 
     provided under subsection (d);
       (B) culminate in selection of a design for a next submarine 
     for serial production not earlier than fiscal year 2003, with 
     such submarine to be procured as required by subsection 
     (b)(1);
       (C) identify advanced technologies that are in various 
     phases of research and development, as well as those that are 
     commercially available off-the-shelf, that are candidates to 
     be incorporated into the plan to design, develop, and procure 
     the submarines;
       (D) designate the fifth submarine to be procured as the 
     lead ship in the next generation submarine class, unless the 
     Secretary of the Navy, in consultation with the special 
     submarine review panel described in subsection (f), 
     determines that more submarines should be built before the 
     design of the new class of submarines is fixed, in which case 
     each such additional submarine shall be procured in the same 
     manner as is required by subsection (b)(1); and
       (E) identify the impact of the submarine program described 
     in paragraph (1) on the remainder of the appropriation 
     account known as ``Shipbuilding and Conversion, Navy'', as 
     such impact relates to--
       (i) force structure levels required by the October 1993 
     Department of Defense report entitled ``Report on the Bottom-
     Up Review'';
       (ii) force structure levels required by the 1995 report on 
     the Surface Ship Combatant Study that was carried out for the 
     Department of Defense; and
       (iii) the funding requirements for submarine construction, 
     as a percentage of the total ship construction account, for 
     each fiscal year throughout the FYDP.
       (4) As part of such plan, the Secretary shall provide--
       (A) cost estimates and schedules for developing new 
     technologies that may be used to make submarines more capable 
     and more affordable; and
       (B) an analysis of significant risks associated with 
     fielding the new technologies on the schedule proposed by the 
     Secretary and significant increased risks that are likely to 
     be incurred by accelerating that schedule.
       (d) Streamlined Acquisition Process.--The Secretary of 
     Defense shall prescribe and 

[[Page H360]]
     use streamlined acquisition policies and procedures to reduce the cost 
     and increase the efficiency of the submarine program under 
     this section.
       (e) Annual Revisions to Plan.--The Secretary shall submit 
     to the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives an annual update to the plan required to be 
     submitted under subsection (b). Each such update shall be 
     submitted concurrent with the President's budget submission 
     to Congress for each of fiscal years 1998 through 2002.
       (f) Special Submarine Review Panel.--(1) The plan under 
     subsection (c) and each annual update under subsection (e) 
     shall be reviewed by a special bipartisan congressional panel 
     working with the Navy. The panel shall consist of three 
     members of the Committee on Armed Services of the Senate, who 
     shall be designated by the chairman of that committee, and 
     three members of the Committee on National Security of the 
     House of Representatives, who shall be designated by the 
     chairman of that committee. The members of the panel shall be 
     briefed by the Secretary of the Navy on the status of the 
     submarine modernization program and the status of submarine-
     related research and development under this section.
       (2) Not later than May 1 of each year, the panel shall 
     report to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives on the panel's findings and recommendations 
     regarding the progress of the Secretary in procuring a more 
     capable, less expensive submarine. The panel may recommend 
     any funding adjustments it believes appropriate to achieve 
     this objective.
       (g) Linkage of Fiscal Year 1998 and 1999 Submarines.--Funds 
     referred to in subsection (a)(1)(B) that are available for 
     the fiscal year 1998 and fiscal year 1999 submarines under 
     this section may not be expended during fiscal year 1996 for 
     the fiscal year 1998 submarine (other than for design) unless 
     funds are obligated or expended during such fiscal year for a 
     contract in support of procurement of the fiscal year 1999 
     submarine.
       (h) Contracts Authorized.--The Secretary of the Navy is 
     authorized, using funds available pursuant to paragraph 
     (1)(B) of subsection (a), to enter into contracts with 
     Electric Boat Division and Newport News Shipbuilding, and 
     suppliers of components, during fiscal year 1996 for--
       (1) the procurement of long-lead components for the fiscal 
     year 1998 submarine and the fiscal year 1999 submarine under 
     this section; and
       (2) advance construction of such components and other 
     components for such submarines.
       (i) Advanced Research Projects Agency Development of 
     Advanced Technologies.--(1) Of the amount provided in section 
     201(4) for the Advanced Research Projects Agency, 
     $100,000,000 is available only for development and 
     demonstration of advanced technologies for incorporation into 
     the submarines constructed as part of the plan developed 
     under subsection (c). Such advanced technologies shall 
     include the following:
       (A) Electric drive.
       (B) Hydrodynamic quieting.
       (C) Ship control automation.
       (D) Solid-state power electronics.
       (E) Wake reduction technologies.
       (F) Superconductor technologies.
       (G) Torpedo defense technologies.
       (H) Advanced control concept.
       (I) Fuel cell technologies.
       (J) Propulsors.
       (2) The Director of the Advanced Research Projects Agency 
     shall implement a rapid prototype acquisition strategy for 
     both land-based and at-sea subsystem and system 
     demonstrations of advanced technologies under paragraph (1). 
     Such acquisition strategy shall be developed and implemented 
     in concert with Electric Boat Division and Newport News 
     Shipbuilding and the Navy.
       (j) References to Contractors.--For purposes of this 
     section--
       (1) the contractor referred to as ``Electric Boat 
     Division'' is the Electric Boat Division of the General 
     Dynamics Corporation; and
       (2) the contractor referred to as ``Newport News 
     Shipbuilding'' is the Newport News Shipbuilding and Drydock 
     Company.
       (k) Potential Competitor Defined.--For purposes of this 
     section, the term ``potential competitor'' means any source 
     to which the Secretary of the Navy has awarded, within 10 
     years before the date of the enactment of this Act, a 
     contract or contracts to construct one or more nuclear attack 
     submarines.

     SEC. 132. RESEARCH FOR ADVANCED SUBMARINE TECHNOLOGY.

       Of the amount appropriated for fiscal year 1996 for the 
     National Defense Sealift Fund, $50,000,000 shall be available 
     only for the Director of the Advanced Research Projects 
     Agency for advanced submarine technology activities.

     SEC. 133. COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

       (a) Limitation of Costs.--Except as provided in subsection 
     (b), the total amount obligated or expended for procurement 
     of the SSN-21, SSN-22, and SSN-23 Seawolf class submarines 
     may not exceed $7,223,659,000.
       (b) Automatic Increase of Limitation Amount.--The amount of 
     the limitation set forth in subsection (a) is increased by 
     the following amounts:
       (1) The amounts of outfitting costs and post-delivery costs 
     incurred for the submarines referred to in such subsection.
       (2) The amounts of increases in costs attributable to 
     economic inflation after September 30, 1995.
       (3) The amounts of increases in costs attributable to 
     compliance with changes in Federal, State, or local laws 
     enacted after September 30, 1995.
       (c) Repeal of Superseded Provision.--Section 122 of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 2682) is repealed.

     SEC. 134. REPEAL OF PROHIBITION ON BACKFIT OF TRIDENT 
                   SUBMARINES.

       Section 124 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2683) is 
     repealed.

     SEC. 135. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

       (a) Authorization for Procurement of Six Vessels.--The 
     Secretary of the Navy is authorized to construct six Arleigh 
     Burke class destroyers in accordance with this section. 
     Within the amount authorized to be appropriated pursuant to 
     section 102(a)(3), $2,169,257,000 is authorized to be 
     appropriated for construction (including advance procurement) 
     for the Arleigh Burke class destroyers.
       (b) Contracts.--(1) The Secretary is authorized to enter 
     into contracts in fiscal year 1996 for the construction of 
     three Arleigh Burke class destroyers.
       (2) The Secretary is authorized, in fiscal year 1997, to 
     enter into contracts for the construction of the other three 
     Arleigh Burke class destroyers covered by subsection (a), 
     subject to the availability of appropriations for such 
     destroyers.
       (3) In awarding contracts for the six vessels covered by 
     subsection (a), the Secretary shall continue the contract 
     award pattern and sequence used by the Secretary for the 
     procurement of Arleigh Burke class destroyers during fiscal 
     years 1994 and 1995.
       (4) A contract for construction of a vessel or vessels that 
     is entered into in accordance with paragraph (1) shall 
     include a clause that limits the liability of the Government 
     to the contractor for any termination of the contract. The 
     maximum liability of the Government under the clause shall be 
     the amount appropriated for the vessel or vessels.
       (c) Use of Available Funds.--(1) Subject to paragraph (2), 
     the Secretary may take appropriate actions to use for full 
     funding of a contract entered into in accordance with 
     subsection (b)--
       (A) any funds that, having been appropriated for 
     shipbuilding and conversion programs of the Navy other than 
     Arleigh Burke class destroyer programs pursuant to the 
     authorization in section 102(a)(3), become excess to the 
     needs of the Navy for such programs by reason of cost savings 
     achieved for such programs;
       (B) any unobligated funds that are available to the 
     Secretary for shipbuilding and conversion for any fiscal year 
     before fiscal year 1996; and
       (C) any funds that are appropriated after the date of the 
     enactment of the Department of Defense Appropriations Act, 
     1996, to complete the full funding of the contract.
       (2) The Secretary may not, in the exercise of authority 
     provided in subparagraph (A) or (B) of paragraph (1), 
     obligate funds for a contract entered into in accordance with 
     subsection (b) until 30 days after the date on which the 
     Secretary submits to the congressional defense committees in 
     writing a notification of the intent to obligate the funds. 
     The notification shall set forth the source or sources of the 
     funds and the amount of the funds from each such source that 
     is to be so obligated.

     SEC. 136. ACQUISITION PROGRAM FOR CRASH ATTENUATING SEATS.

       (a) Program Authorized.--The Secretary of the Navy shall 
     establish a program to procure for, and install in, H-53E 
     military transport helicopters commercially developed, energy 
     absorbing, crash attenuating seats that the Secretary 
     determines are consistent with military specifications for 
     seats for such helicopters.
       (b) Funding.--To the extent provided in appropriations 
     Acts, of the unobligated balance of amounts appropriated for 
     the Legacy Resource Management Program pursuant to the 
     authorization of appropriations in section 301(5) of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 2706), not more than 
     $10,000,000 shall be available to the Secretary of the Navy, 
     by transfer to the appropriate accounts, for carrying out the 
     program authorized in subsection (a).

     SEC. 137. T-39N TRAINER AIRCRAFT.

       (a) Limitation.--The Secretary of the Navy may not enter 
     into a contract, using funds appropriated for fiscal year 
     1996 for procurement of aircraft for the Navy, for the 
     acquisition of the aircraft described in subsection (b) until 
     60 days after the date on which the Under Secretary of 
     Defense for Acquisition and Technology submits to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives--
       (1) an analysis of the proposed acquisition of such 
     aircraft; and
       (2) a certification that the proposed acquisition during 
     fiscal year 1996 (A) is in the best interest of the 
     Government, and (B) is the most cost effective means of 
     meeting the requirements of the Navy for aircraft for use in 
     the training of naval flight officers.
       (b) Covered Aircraft.--Subsection (a) applies to certain T-
     39 trainer aircraft that as of November 1, 1995 (1) are used 
     by the Navy under a lease arrangement for the training of 

[[Page H361]]
     naval flight officers, and (2) are offered for sale to the Government.

     SEC. 138. PIONEER UNMANNED AERIAL VEHICLE PROGRAM.

       Not more than one-sixth of the amount appropriated pursuant 
     to this Act for the activities and operations of the Unmanned 
     Aerial Vehicle Joint Program Office (UAV-JPO), and none of 
     the unobligated balances of funds appropriated for fiscal 
     years before fiscal year 1996 for the activities and 
     operations of such office, may be obligated until the 
     Secretary of the Navy certifies to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives that funds have been 
     obligated to equip nine Pioneer Unmanned Aerial Vehicle 
     systems with the Common Automatic Landing and Recovery 
     System (CARS).
                     Subtitle D--Air Force Programs

     SEC. 141. B-2 AIRCRAFT PROGRAM.

       (a) Repeal of Limitations.--The following provisions of law 
     are repealed:
       (1) Section 151(c) of the National Defense Authorization 
     Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 
     2339).
       (2) Sections 131(c) and 131(d) of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     107 Stat. 1569).
       (3) Section 133(e) of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
     2688).
       (b) Conversion of Limitation to Annual Report 
     Requirement.--Section 112 of the National Defense 
     Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
     101-189; 103 Stat. 1373) is amended--
       (1) by striking out subsection (a);
       (2) by striking out the matter in subsection (b) preceding 
     paragraph (1) and inserting in lieu thereof the following:
       ``(a) Annual Reporting Requirement.--Not later than March 1 
     of each year, the Secretary of Defense shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives a report 
     that sets forth the finding of the Secretary (as of January 1 
     of such year) on each of the following matters:'';
       (3) by striking out ``That'' in paragraphs (1), (2), (3), 
     (4), and (5) and inserting in lieu thereof ``Whether'';
       (4) in paragraph (1), by striking out ``latest'' and all 
     that follows through ``100-180'' and inserting in lieu 
     thereof ``Requirements Correlation Matrix found in the user-
     defined Operational Requirements Document (as contained in 
     Attachment B to a letter from the Secretary of Defense to 
     Congress dated October 14, 1993)'';
       (5) in paragraph (3), by striking out ``congressional 
     defense'';
       (6) in paragraph (4), by striking out ``such certification 
     to be submitted'';
       (7) by adding at the end the following:
       ``(b) First Report.--The Secretary shall submit the first 
     annual report under subsection (a) not later than March 1, 
     1996.''; and
       (8) by amending the section heading to read as follows:

     ``SEC. 112. ANNUAL REPORT ON B-2 BOMBER AIRCRAFT PROGRAM.''.

       (c) Repeal of Condition on Obligation of Funds in Enhanced 
     Bomber Capability Fund.--Section 133(d)(3) of the National 
     Defense Authorization Act for Fiscal Year 1995 (Public Law 
     103-337; 108 Stat. 2688) is amended by striking out ``If,'' 
     and all that follows through ``bombers, the Secretary'' and 
     inserting in lieu thereof ``The Secretary''.

     SEC. 142. PROCUREMENT OF B-2 BOMBERS.

       Of the amount authorized to be appropriated by section 103 
     for the B-2 bomber procurement program, not more than 
     $279,921,000 may be obligated or expended before March 31, 
     1996.

     SEC. 143. MC-130H AIRCRAFT PROGRAM.

       The limitation on the obligation of funds for payment of an 
     award fee and the procurement of contractor-furnished 
     equipment for the MC-130H Combat Talon aircraft set forth in 
     section 161(a) of the National Defense Authorization Act for 
     Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 
     1388) shall cease to apply upon determination by the Director 
     of Operational Test and Evaluation (and submission of a 
     certification of that determination to the congressional 
     defense committees) that, based on the operational test and 
     evaluation and the analysis conducted on that aircraft to the 
     date of that determination, such aircraft is operationally 
     effective and meets the needs of its intended users.
             Subtitle E--Chemical Demilitarization Program

     SEC. 151. REPEAL OF REQUIREMENT TO PROCEED EXPEDITIOUSLY WITH 
                   DEVELOPMENT OF CHEMICAL DEMILITARIZATION 
                   CRYOFRACTURE FACILITY AT TOOELE ARMY DEPOT, 
                   UTAH.

       Subsection (a) of section 173 of the National Defense 
     Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
     101-189; 103 Stat. 1393) is repealed.

     SEC. 152. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL 
                   CHEMICAL AGENTS AND MUNITIONS.

       (a) In General.--The Secretary of Defense shall proceed 
     with the program for destruction of the chemical munitions 
     stockpile of the Department of Defense while maintaining the 
     maximum protection of the environment, the general public, 
     and the personnel involved in the actual destruction of the 
     munitions. In carrying out such program, the Secretary shall 
     use technologies and procedures that will minimize the risk 
     to the public at each site.
       (b) Initiation of Demilitarization Operations.--The 
     Secretary of Defense may not initiate destruction of the 
     chemical munitions stockpile stored at a site until the 
     following support measures are in place:
       (1) Support measures that are required by Department of 
     Defense and Army chemical surety and security program 
     regulations.
       (2) Support measures that are required by the general and 
     site chemical munitions demilitarization plans specific to 
     that installation.
       (3) Support measures that are required by the permits 
     required by the Solid Waste Disposal Act (42 U.S.C. 6901 et 
     seq.) and the Clean Air Act (42 U.S.C. 7401 et seq.) for 
     chemical munitions demilitarization operations at 
     that installation, as approved by the appropriate State 
     regulatory agencies.
       (c) Assessment of Alternatives.--(1) The Secretary of 
     Defense shall conduct an assessment of the current chemical 
     demilitarization program and of measures that could be taken 
     to reduce significantly the total cost of the program, while 
     ensuring maximum protection of the general public, the 
     personnel involved in the demilitarization program, and the 
     environment. The measures considered shall be limited to 
     those that would minimize the risk to the public. The 
     assessment shall be conducted without regard to any 
     limitation that would otherwise apply to the conduct of such 
     an assessment under any provision of law.
       (2) The assessment shall be conducted in coordination with 
     the National Research Council.
       (3) Based on the results of the assessment, the Secretary 
     shall develop appropriate recommendations for revision of the 
     chemical demilitarization program.
       (4) Not later than March 1, 1996, the Secretary of Defense 
     shall submit to the congressional defense committees an 
     interim report assessing the current status of the chemical 
     stockpile demilitarization program, including the results of 
     the Army's analysis of the physical and chemical integrity of 
     the stockpile and implications for the chemical 
     demilitarization program, and providing recommendations for 
     revisions to that program that have been included in the 
     budget request of the Department of Defense for fiscal year 
     1997. The Secretary shall submit to the congressional defense 
     committees with the submission of the budget request of the 
     Department of Defense for fiscal year 1998 a final report on 
     the assessment conducted in accordance with paragraph (1) and 
     recommendations for revision to the program, including an 
     assessment of alternative demilitarization technologies and 
     processes to the baseline incineration process and potential 
     reconfiguration of the stockpile that should be incorporated 
     in the program.
       (d) Assistance for Chemical Weapons Stockpile Communities 
     Affected by Base Closure.--(1) The Secretary of Defense shall 
     review and evaluate issues associated with closure and 
     reutilization of Department of Defense facilities co-located 
     with continuing chemical stockpile and chemical 
     demilitarization operations.
       (2) The review shall include the following:
       (A) An analysis of the economic impacts on these 
     communities and the unique reuse problems facing local 
     communities associated with ongoing chemical weapons 
     programs.
       (B) Recommendations of the Secretary on methods for 
     expeditious and cost-effective transfer or lease of these 
     facilities to local communities for reuse by those 
     communities.
       (3) The Secretary shall submit to the congressional defense 
     committees a report on the review and evaluation under this 
     subsection. The report shall be submitted not later than 90 
     days after the date of the enactment of this Act.

     SEC. 153. ADMINISTRATION OF CHEMICAL DEMILITARIZATION 
                   PROGRAM.

       (a) Travel Funding for Members of Chemical Demilitarization 
     Citizens' Advisory Commissions.--Section 172(g) of Public Law 
     102-484 (50 U.S.C. 1521 note) is amended to read as follows:
       ``(g) Pay and Expenses.--Members of each commission shall 
     receive no pay for their involvement in the activities of 
     their commissions. Funds appropriated for the Chemical 
     Stockpile Demilitarization Program may be used for travel and 
     associated travel costs for Citizens' Advisory Commissioners, 
     when such travel is conducted at the invitation of the 
     Assistant Secretary of the Army (Research, Development, and 
     Acquisition).''.
       (b) Quarterly Report Concerning Travel Funding for 
     Citizens' Advisory Commissioners.--Section 1412(g) of the 
     Department of Defense Authorization Act, 1986 (50 U.S.C. 
     1521(g)), is amended--
       (1) by striking out ``(g) Annual Report.--'' and inserting 
     in lieu thereof ``(g) Periodic Reports.--'';
       (2) in paragraph (2)--
       (A) by striking out ``Each such report shall con- tain--'' 
     and inserting in lieu thereof ``Each annual report shall 
     contain--''
       (B) in subparagraph (B)--
       (i) by striking out ``and'' at the end of clause (iv);
       (ii) by striking out the period at the end of clause (v) 
     and inserting in lieu thereof ``; and''; and
       (iii) by adding at the end the following:
       ``(vi) travel and associated travel costs for Citizens' 
     Advisory Commissioners under section 172(g) of Public Law 
     102-484 (50 U.S.C. 1521 note).'';
       (3) by redesignating paragraph (3) as paragraph (4);
     
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       (4) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) The Secretary shall transmit to the Committee on 
     Armed Services and the Committee on Appropriations of the 
     Senate and the Committee on National Security and the 
     Committee on Appropriations of the House of Representatives a 
     quarterly report containing an accounting of all funds 
     expended (during the quarter covered by the report) for 
     travel and associated travel costs for Citizens' Advisory 
     Commissioners under section 172(g) of Public Law 102-484 (50 
     U.S.C. 1521 note). The quarterly report for the final quarter 
     of the period covered by a report under paragraph (1) may be 
     included in that report.''; and
       (5) in paragraph (4), as redesignated by paragraph (3)--
       (A) by striking out ``this subsection'' and inserting in 
     lieu thereof ``paragraph (1)''; and
       (B) by adding at the end the following: ``No quarterly 
     report is required under paragraph (3) after the transmittal 
     of the final report under paragraph (1).''.
       (c) Director of Program.--Section 1412(e)(3) of the 
     Department of Defense Authorization Act, 1986 (50 U.S.C. 
     1521(e)(3)), is amended by inserting ``or civilian 
     equivalent'' after ``general officer''.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION
              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1996 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $4,737,581,000.
       (2) For the Navy, $8,474,783,000.
       (3) For the Air Force, $12,914,868,000.
       (4) For Defense-wide activities, $9,693,180,000, of which--
       (A) $251,082,000 is authorized for the activities of the 
     Director, Test and Evaluation; and
       (B) $22,587,000 is authorized for the Director of 
     Operational Test and Evaluation.

     SEC. 202. AMOUNT FOR BASIC RESEARCH AND EXPLORATORY 
                   DEVELOPMENT.

       (a) Fiscal Year 1996.--Of the amounts authorized to be 
     appropriated by section 201, $4,088,879,000 shall be 
     available for basic research and exploratory development 
     projects.
       (b) Basic Research and Exploratory Development Defined.--
     For purposes of this section, the term ``basic research and 
     exploratory development'' means work funded in program 
     elements for defense research and development under 
     Department of Defense category 6.1 or 6.2.

     SEC. 203. MODIFICATIONS TO STRATEGIC ENVIRONMENTAL RESEARCH 
                   AND DEVELOPMENT PROGRAM.

       (a) Council Membership.--Section 2902(b) of title 10, 
     United States Code, is amended--
       (1) by striking out ``thirteen'' and inserting in lieu 
     thereof ``12'';
       (2) by striking out paragraph (3);
       (3) by redesignating paragraphs (4), (5), (6), (7), (8), 
     (9), and (10) as paragraphs (3), (4), (5), (6), (7), (8), and 
     (9), respectively; and
       (4) in paragraph (8), as redesignated, by striking out ``, 
     who shall be nonvoting members''.
       (b) Annual Report.--(1) Section 2902 of such title is 
     amended in subsection (d)--
       (A) by striking out paragraph (3) and inserting in lieu 
     thereof the following:
       ``(3) To prepare an annual report that contains the 
     following:
       ``(A) A description of activities of the strategic 
     environmental research and development program carried out 
     during the fiscal year before the fiscal year in which the 
     report is prepared.
       ``(B) A general outline of the activities planned for the 
     program during the fiscal year in which the report is 
     prepared.
       ``(C) A summary of projects continued from the fiscal year 
     before the fiscal year in which the report is prepared and 
     projects expected to be started during the fiscal year in 
     which the report is prepared and during the following fiscal 
     year.''; and
       (B) in paragraph (4), by striking out ``Federal 
     Coordinating Council on Science, Engineering, and 
     Technology'' and inserting in lieu thereof ``National Science 
     and Technology Council''.
       (2) Section 2902 of such title is further amended--
       (A) by striking out subsections (f) and (h);
       (B) by redesignating subsection (g) as subsection (f); and
       (C) by adding at the end the following new subsection:
       ``(g)(1) Not later than February 1 of each year, the 
     Council shall submit to the Secretary of Defense the annual 
     report prepared pursuant to subsection (d)(3).
       ``(2) Not later than March 15 of each year, the Secretary 
     of Defense shall submit such annual report to Congress, along 
     with such comments as the Secretary considers appropriate.''.
       (3) The amendments made by this subsection shall apply with 
     respect to the annual report prepared during fiscal year 1997 
     and each fiscal year thereafter.
       (c) Policies and Procedures.--Section 2902(e) of such title 
     is amended in paragraph (3) by striking out ``programs, 
     particularly'' and all that follows through the end of the 
     paragraph and inserting in lieu thereof ``programs;''.
       (d) Competitive Procedures.--Section 2903(c) of such title 
     is amended--
       (1) by striking out ``or'' after ``contracts'' and 
     inserting in lieu thereof ``using competitive procedures. The 
     Executive Director may enter into''; and
       (2) by striking out ``law, except that'' and inserting in 
     lieu thereof ``law. In either case,''.
       (e) Continuation of Expiring Authority.--(1) Section 
     2903(d) of such title is amended in paragraph (2) by striking 
     out the last sentence.
       (2) The amendment made by paragraph (1) shall take effect 
     as of September 29, 1995.

     SEC. 204. DEFENSE DUAL USE TECHNOLOGY INITIATIVE.

       (a) Fiscal Year 1996 Amount.--Of the amount authorized to 
     be appropriated in section 201(4), $195,000,000 shall be 
     available for the defense dual use technology initiative 
     conducted under chapter 148 of title 10, United States Code.
       (b) Availability of Funds for Existing Technology 
     Reinvestment Projects.--The Secretary of Defense shall use 
     amounts made available for the defense dual use technology 
     initiative under subsection (a) only for the purpose of 
     continuing or completing technology reinvestment projects 
     that were initiated before October 1, 1995.
       (c) Notice Concerning Projects To Be Carried Out.--Of the 
     amounts made available for the defense dual use technology 
     initiative under subsection (a)--
       (1) $145,000,000 shall be available for obligation only 
     after the date on which the Secretary of Defense notifies the 
     congressional defense committees regarding the defense 
     reinvestment projects to be funded using such funds; and
       (2) the remaining $50,000,000 shall be available for 
     obligation only after the date on which the Secretary of 
     Defense certifies to the congressional defense committees 
     that the defense reinvestment projects to be funded using 
     such funds have been determined by the Joint Requirements 
     Oversight Council to be of significant military priority.
    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. SPACE LAUNCH MODERNIZATION.

       (a) Allocation of Funds.--Of the amount authorized to be 
     appropriated pursuant to the authorization in section 201(3), 
     $50,000,000 shall be available for a competitive reusable 
     rocket technology program.
       (b) Limitation.--Funds made available pursuant to 
     subsection (a)(1) may be obligated only to the extent that 
     the fiscal year 1996 current operating plan of the National 
     Aeronautics and Space Administration allocates at least an 
     equal amount for its Reusable Space Launch program.

     SEC. 212. TACTICAL MANNED RECONNAISSANCE.

       (a) Limitation.--None of the amounts appropriated or 
     otherwise made available pursuant to an authorization in this 
     Act may be used by the Secretary of the Air Force to conduct 
     research, development, test, or evaluation for a replacement 
     aircraft, pod, or sensor payload for the tactical manned 
     reconnaissance mission until the report required by 
     subsection (b) is submitted to the congressional defense 
     committees.
       (b) Report.--The Secretary of the Air Force shall submit to 
     the congressional defense committees a report setting forth 
     in detail information about the manner in which the funds 
     authorized by section 201 of this Act and section 201 of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 2690) are planned to be used 
     during fiscal year 1996 for research, development, test, and 
     evaluation for the Air Force tactical manned reconnaissance 
     mission. At a minimum, the report shall include the sources, 
     by program element, of the funds and the purposes for which 
     the funds are planned to be used.

     SEC. 213. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

       (a) Allocation of Funds.--Of the amounts authorized to be 
     appropriated pursuant to the authorizations in section 201, 
     $200,156,000 shall be available for the Joint Advanced Strike 
     Technology (JAST) program. Of that amount--
       (1) $83,795,000 shall be available for program element 
     63800N in the budget of the Department of Defense for fiscal 
     year 1996;
       (2) $85,686,000 shall be available for program element 
     63800F in such budget; and
       (3) $30,675,000 shall be available for program element 
     63800E in such budget.
       (b) Additional Allocation.--Of the amounts made available 
     under paragraphs (1), (2), and (3) of subsection (a)--
       (1) $25,000,000 shall be available from the amount 
     authorized to be appropriated pursuant to the authorization 
     in section 201(2) for the conduct, during fiscal year 1996, 
     of a 6-month program definition phase for the A/F117X, an F-
     117 fighter aircraft modified for use by the Navy as a long-
     range, medium attack aircraft; and
       (2) $7,000,000 shall be available to provide for 
     competitive engine concepts.
       (c) Limitation.--Not more than 75 percent of the amount 
     appropriated for the Joint Advanced Strike Technology program 
     pursuant to the authorizations in section 201 may be 
     obligated until a period of 30 days has expired after the 
     report required by subsection (d) is submitted to the 
     congressional defense committees.
       (d) Report.--The Secretary of Defense shall submit to the 
     congressional defense committees a report, in unclassified 
     and classified forms, not later than March 1, 1996, that sets 
     forth in detail the following information for the period 1997 
     through 2005:
       (1) The total joint requirement, assuming the capability to 
     successfully conduct two nearly simultaneous major regional 
     contingencies, for the following: 
     
[[Page H363]]

       (A) Numbers of bombers, tactical combat aircraft, and 
     attack helicopters and the characteristics required of those 
     aircraft in terms of capabilities, range, and low-
     observability.
       (B) Surface- and air-launched standoff precision guided 
     munitions.
       (C) Cruise missiles.
       (D) Ground-based systems, such as the Extended Range-
     Multiple Launch Rocket System and the Army Tactical Missile 
     System (ATACMS), for joint warfighting capability.
       (2) The warning time assumptions for two nearly 
     simultaneous major regional contingencies, and the effects on 
     future tactical attack/fighter aircraft requirements using 
     other warning time assumptions.
       (3) The requirements that exist for the Joint Advanced 
     Strike Technology program that cannot be met by existing 
     aircraft or by those in development.

     SEC. 214. DEVELOPMENT OF LASER PROGRAM.

       Of the amount authorized to be appropriated by section 
     201(2), $9,000,000 shall be used for the development by the 
     Naval High Energy Laser Office of a continuous wave, 
     superconducting radio frequency free electron laser program.

     SEC. 215. NAVY MINE COUNTERMEASURES PROGRAM.

       Section 216(a) of the National Defense Authorization Act 
     for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 
     1317) is amended--
       (1) by striking out ``Director, Defense Research and 
     Engineering'' and inserting in lieu thereof ``Under Secretary 
     of Defense for Acquisition and Technology''; and
       (2) by striking out ``fiscal years 1995 through 1999'' and 
     inserting in lieu thereof ``fiscal years 1996 through 1999''.

     SEC. 216. SPACE-BASED INFRARED SYSTEM.

       (a) Program Baseline.--The Secretary of Defense shall 
     establish a program baseline for the Space-Based Infrared 
     System. Such baseline shall--
       (1) include--
       (A) program cost and an estimate of the funds required for 
     development and acquisition activities for each fiscal year 
     in which such activities are planned to be carried out;
       (B) a comprehensive schedule with program milestones and 
     exit criteria; and
       (C) optimized performance parameters for each segment of an 
     integrated space-based infrared system;
       (2) be structured to achieve initial operational capability 
     of the low earth orbit space segment (the Space and Missile 
     Tracking System) in fiscal year 2003, with a first launch of 
     Block I satellites in fiscal year 2002;
       (3) ensure integration of the Space and Missile Tracking 
     System into the architecture of the Space-Based Infrared 
     System; and
       (4) ensure that the performance parameters of all space 
     segment components are selected so as to optimize the 
     performance of the Space-Based Infrared System while 
     minimizing unnecessary redundancy and cost.
       (b) Report on Program Baseline.--Not later than 60 days 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report, in classified and unclassified forms as necessary, 
     on the program baseline established under subsection (a).
       (c) Establishment of Program Elements.--In the budget 
     justification materials submitted to Congress in support of 
     the Department of Defense budget for any fiscal year after 
     fiscal year 1996 (as submitted in the budget of the President 
     under section 1105(a) of title 31, United States Code), the 
     amount requested for the Space-Based Infrared System shall be 
     set forth in accordance with the following program elements:
       (1) Space Segment High.
       (2) Space Segment Low (Space and Missile Tracking System).
       (3) Ground Segment.
       (d) Funding for Fiscal Year 1996.--Of the amounts 
     authorized to be appropriated pursuant to section 201(3) for 
     fiscal year 1996, or otherwise made available to the 
     Department of Defense for fiscal year 1996, the following 
     amounts shall be available for the Space-Based Infrared 
     System:
       (1) $265,744,000 for demonstration and validation, of which 
     $249,824,000 shall be available for the Space and Missile 
     Tracking System.
       (2) $162,219,000 for engineering and manufacturing 
     development, of which $9,400,000 shall be available for the 
     Miniature Sensor Technology Integration program.

     SEC. 217. DEFENSE NUCLEAR AGENCY PROGRAMS.

       (a) Agency Funding.--Of the amounts authorized to be 
     appropriated to the Department of Defense in section 201, 
     $241,703,000 shall be available for the Defense Nuclear 
     Agency.
       (b) Tunnel Characterization and Neutralization Program.--Of 
     the amount made available under subsection (a), $3,000,000 
     shall be available for a tunnel characterization and 
     neutralization program to be managed by the Defense Nuclear 
     Agency as part of the counterproliferation activities of the 
     Department of Defense.
       (c) Long-Term Radiation Tolerant Microelectronics 
     Program.--(1) Of the amount made available under subsection 
     (a), $6,000,000 shall be available for the establishment of a 
     long-term radiation tolerant microelectronics program to be 
     managed by the Defense Nuclear Agency for the purposes of--
       (A) providing for the development of affordable and 
     effective hardening technologies and for incorporation of 
     such technologies into systems;
       (B) sustaining the supporting industrial base; and
       (C) ensuring that a use of a nuclear weapon in regional 
     threat scenarios does not interrupt or defeat the continued 
     operability of systems of the Armed Forces exposed to the 
     combined effects of radiation emitted by the weapon.
       (2) Not later than 120 days after the date of the enactment 
     of this Act, the Secretary of Defense shall submit to 
     Congress a report on how the long-term radiation tolerant 
     microelectronics program is to be conducted and funded in the 
     fiscal years after fiscal year 1996 that are covered by the 
     future-years defense program submitted to Congress in 1995.
       (d) Thermionics Program.--Of the amount made available 
     under subsection (a), $10,000,000 shall be available for the 
     thermionics program, to be managed by the Defense Nuclear 
     Agency.
       (e) Electrothermal Gun Technology Program.--Of the amount 
     made available under subsection (a), $4,000,000 shall be 
     available for the electrothermal gun technology program of 
     the Defense Nuclear Agency.
       (f) Counterterror Explosives Research Program.--Of the 
     amount made available under subsection (a), $4,000,000 shall 
     be available for the counterterror explosives research 
     program of the Defense Nuclear Agency.
       (g) Transfer of Unobligated Balance.--The Secretary of 
     Defense shall transfer to the Defense Nuclear Agency, to be 
     available for the thermionics program, an amount not to 
     exceed $12,000,000 from the unobligated balance of funds 
     authorized and appropriated for research, development, test, 
     and evaluation for fiscal year 1995 for the Air Force for the 
     Advanced Weapons Program.

     SEC. 218. COUNTERPROLIFERATION SUPPORT PROGRAM.

       (a) Funding.--Of the funds authorized to be appropriated to 
     the Department of Defense under section 201(4), $138,237,000 
     shall be available for the Counterproliferation Support 
     Program, of which $30,000,000 shall be available for a 
     tactical antisatellite technologies program.
       (b) Additional Authority To Transfer Authorizations.--(1) 
     In addition to the transfer authority provided in section 
     1001, upon determination by the Secretary of Defense that 
     such action is necessary in the national interest, the 
     Secretary may transfer amounts of authorizations made 
     available to the Department of Defense in this division for 
     fiscal year 1996 to counterproliferation programs, projects, 
     and activities identified as areas for progress by the 
     Counterproliferation Program Review Committee established by 
     section 1605 of the National Defense Authorization Act for 
     Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1845). 
     Amounts of authorizations so transferred shall be merged with 
     and be available for the same purposes as the authorization 
     to which transferred.
       (2) The total amount of authorizations transferred under 
     the authority of this subsection may not exceed $50,000,000.
       (3) The authority provided by this subsection to transfer 
     authorizations--
       (A) may only be used to provide authority for items that 
     have a higher priority than the items from which authority is 
     transferred; and
       (B) may not be used to provide authority for an item that 
     has been denied authorization by Congress.
       (4) A transfer made from one account to another under the 
     authority of this subsection shall be deemed to increase the 
     amount authorized for the account to which the amount is 
     transferred by an amount equal to the amount transferred.
       (5) The Secretary of Defense shall promptly notify Congress 
     of transfers made under the authority of this subsection.

     SEC. 219. NONLETHAL WEAPONS STUDY.

       (a) Findings.--Congress finds the following:
       (1) The role of the United States military in operations 
     other than war has increased.
       (2) Weapons and instruments that are nonlethal in 
     application yet immobilizing could have widespread 
     operational utility and application.
       (3) The use of nonlethal weapons in operations other than 
     war poses a number of important doctrine, legal, policy, and 
     operations questions which should be addressed in a 
     comprehensive and coordinated manner.
       (4) The development of nonlethal technologies continues to 
     spread across military and agency budgets.
       (5) The Department of Defense should provide improved 
     budgetary focus and management direction to the nonlethal 
     weapons program.
       (b) Responsibility for Development of Nonlethal Weapons 
     Technology.--Not later than February 15, 1996, the Secretary 
     of Defense shall assign centralized responsibility for 
     development (and any other functional responsibility the 
     Secretary considers appropriate) of nonlethal weapons 
     technology to an existing office within the Office of the 
     Secretary of Defense or to a military service as the 
     executive agent.
       (c) Report.--Not later than February 15, 1996, the 
     Secretary of Defense shall submit to Congress a report 
     setting forth the following:
       (1) The name of the office or military service assigned 
     responsibility for the nonlethal weapons program by the 
     Secretary of Defense pursuant to subsection (b) and a 
     discussion of the rationale for such assignment.
     
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       (2) The degree to which nonlethal weapons are required by 
     more than one of the armed forces.
       (3) The time frame for the development and deployment of 
     such weapons.
       (4) The appropriate role of the military departments and 
     defense agencies in the development of such weapons.
       (5) The military doctrine, legal, policy, and operational 
     issues that must be addressed by the Department of Defense 
     before such weapons achieve operational capability.
       (d) Authorization.--Of the amount authorized to be 
     appropriated under section 201(4), $37,200,000 shall be 
     available for nonlethal weapons programs and nonlethal 
     technologies programs.
       (e) Definition.--For purposes of this section, the term 
     ``nonlethal weapon'' means a weapon or instrument the effect 
     of which on human targets is less than fatal.

     SEC. 220. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS 
                   AND UNIVERSITY-AFFILIATED RESEARCH CENTERS.

       (a) Centers Covered.--Funds appropriated or otherwise made 
     available for the Department of Defense for fiscal year 1996 
     pursuant to an authorization of appropriations in section 201 
     may be obligated to procure work from a federally funded 
     research and development center (in this section referred to 
     as an ``FFRDC'') or a university-affiliated research center 
     (in this section referred to as a ``UARC'') only in the case 
     of a center named in the report required by subsection (b) 
     and, in the case of such a center, only in an amount not in 
     excess of the amount of the proposed funding level set forth 
     for that center in such report.
       (b) Report on Allocations for Centers.--(1) Not later than 
     30 days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report containing--
       (A) the name of each FFRDC and UARC from which work is 
     proposed to be procured for the Department of Defense for 
     fiscal year 1996; and
       (B) for each such center, the proposed funding level and 
     the estimated personnel level for fiscal year 1996.
       (2) The total of the proposed funding levels set forth in 
     the report for all FFRDCs and UARCs may not exceed the amount 
     set forth in subsection (d).
       (c) Limitation Pending Submission of Report.--Not more than 
     15 percent of the funds appropriated or otherwise made 
     available for the Department of Defense for fiscal year 1996 
     pursuant to an authorization of appropriations in section 201 
     for FFRDCs and UARCs may be obligated to procure work from an 
     FFRDC or UARC until the Secretary of Defense submits the 
     report required by subsection (b).
       (d) Funding.--Of the amounts authorized to be appropriated 
     by section 201, not more than a total of $1,668,850,000 may 
     be obligated to procure services from the FFRDCs and UARCs 
     named in the report required by subsection (b).
       (e) Authority To Waive Funding Limitation.--The Secretary 
     of Defense may waive the limitation regarding the maximum 
     funding amount that applies under subsection (a) to an FFRDC 
     or UARC. Whenever the Secretary proposes to make such a 
     waiver, the Secretary shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives notice of the proposed waiver 
     and the reasons for the waiver. The waiver may then be made 
     only after the end of the 60-day period that begins on the 
     date on which the notice is submitted to those committees, 
     unless the Secretary determines that it is essential to the 
     national security that funds be obligated for work at that 
     center in excess of that limitation before the end of such 
     period and notifies those committees of that determination 
     and the reasons for the determination.
       (f) Five-Year Plan.--(1) The Secretary of Defense, in 
     consultation with the Secretaries of the military 
     departments, shall develop a five-year plan to reduce and 
     consolidate the activities performed by FFRDCs and UARCs and 
     establish a framework for the future workload of such 
     centers.
       (2) The plan shall--
       (A) set forth the manner in which the Secretary of Defense 
     could achieve by October 1, 2000, implementation by FFRDCs 
     and UARCs of only those core activities, as defined by the 
     Secretary, that require the unique capabilities and 
     arrangements afforded by such centers; and
       (B) include an assessment of the number of personnel needed 
     in each FFRDC and UARC during each year over the five years 
     covered by the plan.
       (3) Not later than February 1, 1996, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report on the plan required by this subsection.

     SEC. 221. JOINT SEISMIC PROGRAM AND GLOBAL SEISMIC NETWORK.

       Of the amount authorized to be appropriated under section 
     201(3), $9,500,000 shall be available for fiscal year 1996 
     (in program element 61101F in the budget of the Department of 
     Defense for fiscal year 1996) for continuation of the Joint 
     Seismic Program and Global Seismic Network.

     SEC. 222. HYDRA-70 ROCKET PRODUCT IMPROVEMENT PROGRAM.

       (a) Funding Authorization.--Of the amount authorized to be 
     appropriated under section 201(1) for Other Missile Product 
     Improvement Programs, $10,000,000 is authorized to be 
     appropriated for a Hydra-70 rocket product improvement 
     program and to be made available under such program for full 
     qualification and operational platform certification of a 
     Hydra-70 rocket described in subsection (b) for use on the 
     Apache attack helicopter.
       (b) Hydra-70 Rocket Covered.--The Hydra-70 rocket referred 
     to in subsection (a) is any Hydra-70 rocket that has as its 
     propulsion component a 2.75-inch rocket motor that is a 
     nondevelopmental item and uses a composite propellant.
       (c) Competition Required.--The Secretary of the Army shall 
     conduct the product improvement program referred to in 
     subsection (a) with full and open competition.
       (d) Submission of Technical Data Package Required.--Upon 
     the full qualification and operational platform certification 
     of a Hydra-70 rocket as described in subsection (a), the 
     contractor providing the rocket so qualified and certified 
     shall submit the technical data package for the rocket to the 
     Secretary of the Army. The Secretary shall use the technical 
     data package in competitions for contracts for the 
     procurement of Hydra-70 rockets described in subsection (b) 
     for the Army.
       (e) Definitions.--For purposes of this section, the terms 
     ``full and open competition'' and ``nondevelopmental item'' 
     have the meanings given such terms in section 4 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 403).

     SEC. 223. LIMITATION ON OBLIGATION OF FUNDS UNTIL RECEIPT OF 
                   ELECTRONIC COMBAT CONSOLIDATION MASTER PLAN.

       (a) Limitation.--Not more than 75 percent of the amounts 
     appropriated or otherwise made available pursuant to the 
     authorization of appropriations in section 201 for test and 
     evaluation program elements 65896A, 65864N, 65807F, and 
     65804D in the budget of the Department of Defense for fiscal 
     year 1996 may be obligated until 14 days after the date on 
     which the congressional defense committees receive the plan 
     specified in subsection (b).
       (b) Plan.--The plan referred to in subsection (a) is the 
     master plan for electronic combat consolidation described 
     under Defense-Wide Programs under Research, Development, 
     Test, and Evaluation in the Report of the Committee on Armed 
     Services of the House of Representatives on H.R. 4301 (House 
     Report 103-499), dated May 10, 1994.

     SEC. 224. REPORT ON REDUCTIONS IN RESEARCH, DEVELOPMENT, 
                   TEST, AND EVALUATION.

       (a) Report Requirement.--Not later than March 15, 1996, the 
     Under Secretary of Defense (Comptroller) shall submit to the 
     congressional defense committees a report that sets forth in 
     detail the allocation of reductions for research, 
     development, test, and evaluation described in subsection 
     (b).
       (b) Description of Reductions.--The reductions for 
     research, development, test, and evaluation covered by 
     subsection (a) are the following Army, Navy, Air Force, and 
     Defense-wide reductions, as required by the Department of 
     Defense Appropriations Act, 1996:
       (1) General reductions.
       (2) Reductions to reflect savings from revised economic 
     assumptions.
       (3) Reductions to reflect the funding ceiling for defense 
     federally funded research and development centers.
       (4) Reductions for savings through improved management of 
     contractor automatic data processing costs charged through 
     indirect rates on Department of Defense acquisition 
     contracts.

     SEC. 225. ADVANCED FIELD ARTILLERY SYSTEM (CRUSADER).

       (a) Authority To Use Funds for Alternative Propellant 
     Technologies.--During fiscal year 1996, the Secretary of the 
     Army may use funds appropriated for the liquid propellant 
     portion of the Advanced Field Artillery System (Crusader) 
     program for fiscal year 1996 for alternative propellant 
     technologies and integration of those technologies into the 
     design of the Crusader if--
       (1) the Secretary determines that the technical risk 
     associated with liquid propellant will increase costs and 
     delay the initial operational capability of the Crusader; and
       (2) the Secretary notifies the congressional defense 
     committees of the proposed use of the funds and the reasons 
     for the proposed use of the funds.
       (b) Limitation.--The Secretary of the Army may not spend 
     funds for the liquid propellant portion of the Crusader 
     program after August 15, 1996, unless--
       (1) the report required by subsection (c) has been 
     submitted by that date; and
       (2) such report includes documentation of significant 
     progress, as determined by the Secretary, toward meeting the 
     objectives for the liquid propellant portion of the program, 
     as set forth in the baseline description for the Crusader 
     program and approved by the Office of the Secretary of 
     Defense on January 4, 1995.
       (c) Report Required.--Not later than August 1, 1996, the 
     Secretary of the Army shall submit to the congressional 
     defense committees a report containing documentation of the 
     progress being made in meeting the objectives set forth in 
     the baseline description for the Crusader program and 
     approved by the Office of the Secretary of Defense on January 
     4, 1995. The report shall specifically address the progress 
     being made toward meeting the following objectives:
     
[[Page H365]]

       (1) Establishment of breech and ignition design criteria 
     for rate of fire for the cannon of the Crusader.
       (2) Selection of a satisfactory ignition concept for the 
     next prototype of the cannon.
       (3) Selection, on the basis of modeling and simulation, of 
     design concepts to prevent chamber piston reversals, and 
     validation of the selected concepts by gun and mock chamber 
     firings.
       (4) Achievement of an understanding of the chemistry and 
     physics of propellant burn resulting from the firing of 
     liquid propellant into any target zone, and achievement, on 
     the basis of modeling and simulation, of an ignition process 
     that is predictable.
       (5) Completion of an analysis of the management of heat 
     dissipation for the full range of performance requirements 
     for the cannon, completion of concept designs supported by 
     that analysis, and proposal of such concept designs for 
     engineering.
       (6) Development, for integration into the next prototype of 
     the cannon, of engineering designs to control pressure 
     oscillations in the chamber of the cannon during firing.
       (7) Completion of an assessment of the sensitivity of 
     liquid propellant to contamination by various materials to 
     which it may be exposed throughout the handling and operation 
     of the cannon, and documentation of predictable reactions of 
     contaminated or sensitized liquid propellant.
       (d) Additional Matters To Be Covered by Report.--The report 
     required by subsection (c) also shall contain the following:
       (1) An assertion that all the known hazards associated with 
     liquid propellant have been identified and are controllable 
     to acceptable levels.
       (2) An assessment of the technology for each component of 
     the Crusader (the cannon, vehicle, and crew module), 
     including, for each performance goal of the Crusader program 
     (including the goal for total system weight), information 
     about the maturity of the technology to achieve that goal, 
     the maturity of the design of the technology, and the manner 
     in which the design has been proven (for example, through 
     simulation, bench testing, or weapon firing).
       (3) An assessment of the cost of continued development of 
     the Crusader after August 1, 1996, and the cost of each unit 
     of the Crusader in the year the Crusader will be completed.

     SEC. 226. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, 
                   ROCKETS, AND EXPLOSIVES.

       Of the amount appropriated pursuant to the authorization in 
     section 201 for explosives demilitarization technology, 
     $15,000,000 shall be available to establish an integrated 
     program for the development and demonstration of conventional 
     munitions and explosives demilitarization technologies that 
     comply with applicable environmental laws for the 
     demilitarization and disposal of unserviceable, obsolete, or 
     nontreaty compliant munitions, rocket motors, and explosives.

     SEC. 227. DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.

       (a) Limitation.--Not more than three percent of the total 
     amount appropriated for research and development under the 
     Defense Airborne Reconnaissance program pursuant to the 
     authorizations of appropriations in section 201 may be 
     obligated for systems engineering and technical assistance 
     (SETA) contracts until--
       (1) funds are obligated (out of such appropriated funds) 
     for--
       (A) the upgrade of U-2 aircraft senior year electro-optical 
     reconnaissance sensors to the newest configuration; and
       (B) the upgrade of the U-2 SIGINT system; and
       (2) the Under Secretary of Defense for Acquisition and 
     Technology submits the report required under subsection (b).
       (b) Report on U-2-Related Upgrades.--(1) Not later than 
     April 1, 1996, the Under Secretary of Defense for Acquisition 
     and Technology shall transmit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report on obligations of 
     funds for upgrades relating to airborne reconnaissance by U-2 
     aircraft.
       (2) The report shall set forth the specific purposes under 
     the general purposes described in subparagraphs (A) and (B) 
     of subsection (a)(1) for which funds have been obligated (as 
     of the date of the report) and the amounts that have been 
     obligated (as of such date) for those specific purposes.
           Subtitle C--Ballistic Missile Defense Act of 1995

     SEC. 231. SHORT TITLE.

       This subtitle may be cited as the ``Ballistic Missile 
     Defense Act of 1995''.

     SEC. 232. FINDINGS.

       Congress makes the following findings:
       (1) The emerging threat that is posed to the national 
     security interests of the United States by the proliferation 
     of ballistic missiles is significant and growing, both in 
     terms of numbers of missiles and in terms of the technical 
     capabilities of those missiles.
       (2) The deployment of ballistic missile defenses is a 
     necessary, but not sufficient, element of a broader strategy 
     to discourage both the proliferation of weapons of mass 
     destruction and the proliferation of the means of their 
     delivery and to defend against the consequences of such 
     proliferation.
       (3) The deployment of effective Theater Missile Defense 
     systems can deter potential adversaries of the United States 
     from escalating a conflict by threatening or attacking United 
     States forces or the forces or territory of coalition 
     partners or allies of the United States with ballistic 
     missiles armed with weapons of mass destruction to offset the 
     operational and technical advantages of the United States and 
     its coalition partners and allies.
       (4) United States intelligence officials have provided 
     intelligence estimates to congressional committees that (A) 
     the trend in missile proliferation is toward longer range and 
     more sophisticated ballistic missiles, (B) North Korea may 
     deploy an intercontinental ballistic missile capable of 
     reaching Alaska or beyond within five years, and (C) although 
     a new, indigenously developed ballastic missile threat to the 
     continental United States is not foreseen within the next ten 
     years, determined countries can acquire intercontinental 
     ballistic missiles in the near future and with little warning 
     by means other than indigenous development.
       (5) The development and deployment by the United States and 
     its allies of effective defenses against ballistic missiles 
     of all ranges will reduce the incentives for countries to 
     acquire such missiles or to augment existing missile 
     capabilities.
       (6) The concept of mutual assured destruction (based upon 
     an offense-only form of deterrence), which is the major 
     philosophical rationale underlying the ABM Treaty, is now 
     questionable as a basis for stability in a multipolar world 
     in which the United States and the states of the former 
     Soviet Union are seeking to normalize relations and eliminate 
     Cold War attitudes and arrangements.
       (7) The development and deployment of a National Missile 
     Defense system against the threat of limited ballistic 
     missile attacks--
       (A) would strengthen deterrence at the levels of forces 
     agreed to by the United States and Russia under the Strategic 
     Arms Reduction Talks Treaty (START-I); and
       (B) would further strengthen deterrence if reductions below 
     the levels permitted under START-I should be agreed to and 
     implemented in the future.
       (8) The distinction made during the Cold War, based upon 
     the technology of the time, between strategic ballistic 
     missiles and nonstrategic ballistic missiles, which resulted 
     in the distinction made in the ABM Treaty between strategic 
     defense and nonstrategic defense, has become obsolete because 
     of technological advancement (including the development by 
     North Korea of long-range Taepo-Dong I and Taepo-Dong II 
     missiles) and, therefore, that distinction in the ABM Treaty 
     should be reviewed.

     SEC. 233. BALLISTIC MISSILE DEFENSE POLICY.

       It is the policy of the United States--
       (1) to deploy affordable and operationally effective 
     theater missile defenses to protect forward-deployed and 
     expeditionary elements of the Armed Forces of the United 
     States and to complement the missile defense capabilities of 
     forces of coalition partners and of allies of the United 
     States; and
       (2) to seek a cooperative, negotiated transition to a 
     regime that does not feature an offense-only form of 
     deterrence as the basis for strategic stability.

     SEC. 234. THEATER MISSILE DEFENSE ARCHITECTURE.

       (a) Establishment of Core Program.--To implement the policy 
     established in paragraph (1) of section 233, the Secretary of 
     Defense shall restructure the core theater missile defense 
     program to consist of the following systems, to be carried 
     out so as to achieve the specified capabilities:
       (1) The Patriot PAC-3 system, with a first unit equipped 
     (FUE) during fiscal year 1998.
       (2) The Navy Lower Tier (Area) system, with a user 
     operational evaluation system (UOES) capability during fiscal 
     year 1997 and an initial operational capability (IOC) during 
     fiscal year 1999.
       (3) The Theater High-Altitude Area Defense (THAAD) system, 
     with a user operational evaluation system (UOES) capability 
     not later than fiscal year 1998 and a first unit equipped 
     (FUE) not later than fiscal year 2000.
       (4) The Navy Upper Tier (Theater Wide) system, with a user 
     operational evaluation system (UOES) capability during fiscal 
     year 1999 and an initial operational capability (IOC) during 
     fiscal year 2001.
       (b) Use of Streamlined Acquisition Procedures.--The 
     Secretary of Defense shall prescribe and use streamlined 
     acquisition policies and procedures to reduce the cost and 
     increase the efficiency of developing and deploying the 
     theater missile defense systems specified in subsection (a).
       (c) Interoperability and Support of Core Systems.--To 
     maximize effectiveness and flexibility of the systems 
     comprising the core theater missile defense program, the 
     Secretary of Defense shall ensure that those systems are 
     integrated and complementary and are fully capable of 
     exploiting external sensor and battle management support from 
     systems such as--
       (A) the Cooperative Engagement Capability (CEC) system of 
     the Navy;
       (B) airborne sensors; and
       (C) space-based sensors (including, in particular, the 
     Space and Missile Tracking System).
       (d) Follow-on Systems.--(1) The Secretary of Defense shall 
     prepare an affordable development plan for theater missile 
     defense systems to be developed as follow-on systems to the 
     core systems specified in subsection (a). The Secretary shall 
     make the selection of a system for inclusion in the plan 
     based on the capability of the system to satisfy military 
     requirements not met by the systems in the 

[[Page H366]]
     core program and on the capability of the system to use prior 
     investments in technologies, infrastructure, and battle-
     management capabilities that are incorporated in, or 
     associated with, the systems in the core program.
       (2) The Secretary may not proceed with the development of a 
     follow-on theater missile defense system beyond the 
     Demonstration/Validation stage of development unless the 
     Secretary designates that system as a part of the core 
     program under this section and submits to the congressional 
     defense committees notice of that designation. The Secretary 
     shall include with any such notification a report 
     describing--
       (A) the requirements for the system and the specific 
     threats that such system is designed to counter;
       (B) how the system will relate to, support, and build upon 
     existing core systems;
       (C) the planned acquisition strategy for the system; and
       (D) a preliminary estimate of total program cost for that 
     system and the effect of development and acquisition of such 
     system on Department of Defense budget projections.
       (e) Program Accountability Report.--(1) As part of the 
     annual report of the Ballistic Missile Defense Organization 
     required by section 224 of Public Law 101-189 (10 U.S.C. 2431 
     note), the Secretary of Defense shall describe the technical 
     milestones, the schedule, and the cost of each phase of 
     development and acquisition (together with total estimated 
     program costs) for each core and follow-on theater missile 
     defense program.
       (2) As part of such report, the Secretary shall describe, 
     with respect to each program covered in the report, any 
     variance in the technical milestones, program schedule 
     milestones, and costs for the program compared with the 
     information relating to that program in the report submitted 
     in the previous year and in the report submitted in the first 
     year in which that program was covered.
       (f) Reports on TMD System Limitations Under ABM Treaty.--
     (1) Whenever, after January 1, 1993, the Secretary of Defense 
     issues a certification with respect to the compliance of a 
     particular Theater Missile Defense system with the ABM 
     Treaty, the Secretary shall transmit to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a copy of such 
     certification. Such transmittal shall be made not later than 
     30 days after the date on which such certification is issued, 
     except that in the case of a certification issued before the 
     date of the enactment of this Act, such transmittal shall be 
     made not later than 60 days after the date of the enactment 
     of this Act.
       (2) If a certification under paragraph (1) is based on 
     application of a policy concerning United States compliance 
     with the ABM Treaty that differs from the policy described in 
     section 235(b)(1), the Secretary shall include with the 
     transmittal under that paragraph a report providing a 
     detailed assessment of--
       (A) how the policy applied differs from the policy 
     described in section 235(b)(1); and
       (B) how the application of that policy (rather than the 
     policy described in section 235(b)(1)) will affect the cost, 
     schedule, and performance of that system.

     SEC. 235. PROHIBITION ON USE OF FUNDS TO IMPLEMENT AN 
                   INTERNATIONAL AGREEMENT CONCERNING THEATER 
                   MISSILE DEFENSE SYSTEMS.

       (a) Findings.--(1) Congress hereby reaffirms--
       (A) the finding in section 234(a)(7) of the National 
     Defense Authorization Act for Fiscal Year 1994 (Public Law 
     103-160; 107 Stat. 1595; 10 U.S.C. 2431 note) that the ABM 
     Treaty was not intended to, and does not, apply to or limit 
     research, development, testing, or deployment of missile 
     defense systems, system upgrades, or system components that 
     are designed to counter modern theater ballistic missiles, 
     regardless of the capabilities of such missiles, unless those 
     systems, system upgrades, or system components are tested 
     against or have demonstrated capabilities to counter modern 
     strategic ballistic missiles; and
       (B) the statement in section 232 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
     108 Stat. 2700) that the United States shall not be bound by 
     any international agreement entered into by the President 
     that would substantively modify the ABM Treaty unless the 
     agreement is entered into pursuant to the treaty making power 
     of the President under the Constitution.
       (2) Congress also finds that the demarcation standard 
     described in subsection (b)(1) for compliance of a missile 
     defense system, system upgrade, or system component with the 
     ABM Treaty is based upon current technology.
       (b) Sense of Congress Concerning Compliance Policy.--It is 
     the sense of Congress that--
       (1) unless a missile defense system, system upgrade, or 
     system component (including one that exploits data from 
     space-based or other external sensors) is flight tested in an 
     ABM-qualifying flight test (as defined in subsection (e)), 
     that system, system upgrade, or system component has not, for 
     purposes of the ABM Treaty, been tested in an ABM mode nor 
     been given capabilities to counter strategic ballistic 
     missiles and, therefore, is not subject to any application, 
     limitation, or obligation under the ABM Treaty; and
       (2) any international agreement that would limit the 
     research, development, testing, or deployment of missile 
     defense systems, system upgrades, or system components that 
     are designed to counter modern theater ballistic missiles in 
     a manner that would be more restrictive than the compliance 
     criteria specified in paragraph (1) should be entered into 
     only pursuant to the treaty making powers of the President 
     under the Constitution.
       (c) Prohibition on Funding.--Funds appropriated or 
     otherwise made available to the Department of Defense for 
     fiscal year 1996 may not be obligated or expended to 
     implement an agreement, or any understanding with respect to 
     interpretation of the ABM Treaty, between the United States 
     and any of the independent states of the former Soviet Union 
     entered into after January 1, 1995, that--
       (1) would establish a demarcation between theater missile 
     defense systems and anti-ballistic missile systems for 
     purposes of the ABM Treaty; or
       (2) would restrict the performance, operation, or 
     deployment of United States theater missile defense systems.
       (d) Exceptions.--Subsection (c) does not apply--
       (1) to the extent provided by law in an Act enacted after 
     this Act;
       (2) to expenditures to implement that portion of any such 
     agreement or understanding that implements the policy set 
     forth in subsection (b)(1); or
       (3) to expenditures to implement any such agreement or 
     understanding that is approved as a treaty or by law.
       (e) ABM-Qualifying Flight Test Defined.--For purposes of 
     this section, an ABM-qualifying flight test is a flight test 
     against a ballistic missile which, in that flight test, 
     exceeds (1) a range of 3,500 kilometers, or (2) a velocity of 
     5 kilometers per second.

     SEC. 236. BALLISTIC MISSILE DEFENSE COOPERATION WITH ALLIES.

       It is in the interest of the United States to develop its 
     own missile defense capabilities in a manner that will permit 
     the United States to complement the missile defense 
     capabilities developed and deployed by its allies and 
     possible coalition partners. Therefore, the Congress urges 
     the President--
       (1) to pursue high-level discussions with allies of the 
     United States and selected other states on the means and 
     methods by which the parties on a bilateral basis can 
     cooperate in the development, deployment, and operation of 
     ballistic missile defenses;
       (2) to take the initiative within the North Atlantic Treaty 
     Organization to develop consensus in the Alliance for a 
     timely deployment of effective ballistic missile defenses by 
     the Alliance; and
       (3) in the interim, to seek agreement with allies of the 
     United States and selected other states on steps the parties 
     should take, consistent with their national interests, to 
     reduce the risks posed by the threat of limited ballistic 
     missile attacks, such steps to include--
       (A) the sharing of early warning information derived from 
     sensors deployed by the United States and other states;
       (B) the exchange on a reciprocal basis of technical data 
     and technology to support both joint development programs and 
     the sale and purchase of missile defense systems and 
     components; and
       (C) operational level planning to exploit current missile 
     defense capabilities and to help define future requirements.

     SEC. 237. ABM TREATY DEFINED.

       For purposes of this subtitle, the term ``ABM Treaty'' 
     means the Treaty Between the United States of America and the 
     Union of Soviet Socialist Republics on the Limitation of 
     Anti-Ballistic Missile Systems, and signed at Moscow on May 
     26, 1972, and includes the Protocols to that Treaty, signed 
     at Moscow on July 3, 1974.

     SEC. 238. REPEAL OF MISSILE DEFENSE ACT OF 1991.

       The Missile Defense Act of 1991 (10 U.S.C. 2431 note) is 
     repealed.
         Subtitle D--Other Ballistic Missile Defense Provisions

     SEC. 251. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

       (a) Elements Specified.--In the budget justification 
     materials submitted to Congress in support of the Department 
     of Defense budget for any fiscal year after fiscal year 1996 
     (as submitted with the budget of the President under section 
     1105(a) of title 31, United States Code), the amount 
     requested for activities of the Ballistic Missile Defense 
     Organization shall be set forth in accordance with the 
     following program elements:
       (1) The Patriot system.
       (2) The Navy Lower Tier (Area) system.
       (3) The Theater High-Altitude Area Defense (THAAD) system.
       (4) The Navy Upper Tier (Theater Wide) system.
       (5) The Corps Surface-to-Air Missile (SAM) system.
       (6) Other Theater Missile Defense Activities.
       (7) National Missile Defense.
       (8) Follow-On and Support Technologies.
       (b) Treatment of Core Theater Missile Defense Programs.--
     Amounts requested for core theater missile defense programs 
     specified in section 234 shall be specified in individual, 
     dedicated program elements, and amounts appropriated for such 
     programs shall be available only for activities covered by 
     those program elements.
     
[[Page H367]]

       (c) BM/C3I Programs.--Amounts requested for programs, 
     projects, and activities involving battle management, 
     command, control, communications, and intelligence (BM/
     C3I) shall be included in the ``Other Theater Missile 
     Defense Activities'' program element or the ``National 
     Missile Defense'' program element, as determined on the basis 
     of the primary objectives involved.
       (d) Management and Support.--Each program element shall 
     include requests for the amounts necessary for the management 
     and support of the programs, projects, and activities 
     contained in that program element.

     SEC. 252. TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS.

       Subsection (a) of section 237 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     107 Stat. 1600) is amended to read as follows:
       ``(a) Testing of Theater Missile Defense Interceptors.--(1) 
     The Secretary of Defense may not approve a theater missile 
     defense interceptor program proceeding beyond the low-rate 
     initial production acquisition stage until the Secretary 
     certifies to the congressional defense committees that 
     such program has successfully completed initial 
     operational test and evaluation.
       ``(2) In order to be certified under paragraph (1) as 
     having been successfully completed, the initial operational 
     test and evaluation conducted with respect to an interceptors 
     program must have included flight tests--
       ``(A) that were conducted with multiple interceptors and 
     multiple targets in the presence of realistic 
     countermeasures; and
       ``(B) the results of which demonstrate the achievement by 
     the interceptors of the baseline performance thresholds.
       ``(3) For purposes of this subsection, the baseline 
     performance thresholds with respect to a program are the 
     weapons systems performance thresholds specified in the 
     baseline description for the system established (pursuant to 
     section 2435(a)(1) of title 10, United States Code) before 
     the program entered the engineering and manufacturing 
     development stage.
       ``(4) The number of flight tests described in paragraph (2) 
     that are required in order to make the certification under 
     paragraph (1) shall be a number determined by the Secretary 
     of Defense to be sufficient for the purposes of this section.
       ``(5) The Secretary may augment live-fire testing to 
     demonstrate weapons system performance goals for purposes of 
     the certification under paragraph (1) through the use of 
     modeling and simulation that is validated by ground and 
     flight testing.''.

     SEC. 253. REPEAL OF MISSILE DEFENSE PROVISIONS.

       The following provisions of law are repealed:
       (1) Section 222 of the Department of Defense Authorization 
     Act, 1986 (Public Law 99-145; 99 Stat. 613; 10 U.S.C. 2431 
     note).
       (2) Section 225 of the Department of Defense Authorization 
     Act, 1986 (Public Law 99-145; 99 Stat. 614).
       (3) Section 226 of the National Defense Authorization Act 
     for Fiscal Years 1988 and 1989 (Public Law 100-180; 101 Stat. 
     1057; 10 U.S.C. 2431 note).
       (4) Section 8123 of the Department of Defense 
     Appropriations Act, 1989 (Public Law 100-463; 102 Stat. 2270-
     40).
       (5) Section 8133 of the Department of Defense 
     Appropriations Act, 1992 (Public Law 102-172; 105 Stat. 
     1211).
       (6) Section 234 of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1595; 10 
     U.S.C. 2431 note).
       (7) Section 242 of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1603; 10 
     U.S.C. 2431 note).
       (8) Section 235 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2701; 10 
     U.S.C. 221 note).
       (9) Section 2609 of title 10, United States Code.
        Subtitle E--Miscellaneous Reviews, Studies, and Reports

     SEC. 261. PRECISION-GUIDED MUNITIONS.

       (a) Analysis Required.--The Secretary of Defense shall 
     perform an analysis of the full range of precision-guided 
     munitions in production and in research, development, test, 
     and evaluation in order to determine the following:
       (1) The numbers and types of precision-guided munitions 
     that are needed to provide complementary capabilities against 
     each target class.
       (2) The feasibility of carrying out joint development and 
     procurement of additional types of munitions by more than one 
     of the Armed Forces.
       (3) The feasibility of integrating a particular precision-
     guided munition on multiple service platforms.
       (4) The economy and effectiveness of continuing the 
     acquisition of--
       (A) interim precision-guided munitions; or
       (B) precision-guided munitions that, as a result of being 
     procured in decreasing numbers to meet decreasing quantity 
     requirements, have increased in cost per unit by more than 50 
     percent over the cost per unit for such munitions as of 
     December 1, 1991.
       (b) Report.--(1) Not later than April 15, 1996, the 
     Secretary shall submit to Congress a report on the findings 
     and other results of the analysis.
       (2) The report shall include a detailed discussion of the 
     process by which the Department of Defense--
       (A) approves the development of new precision-guided 
     munitions;
       (B) avoids duplication and redundancy in the precision-
     guided munitions programs of the Army, Navy, Air Force, and 
     Marine Corps;
       (C) ensures rationality in the relationship between the 
     funding plans for precision-guided munitions modernization 
     for fiscal years following fiscal year 1996 and the costs of 
     such modernization for those fiscal years; and
       (D) identifies by name and function each person responsible 
     for approving each new precision-guided munition for initial 
     low-rate production.
       (c) Funding Limitation.--Funds authorized to be 
     appropriated by this Act may not be expended for research, 
     development, test, and evaluation or procurement of interim 
     precision-guided munitions after April 15, 1996, unless the 
     Secretary of Defense has submitted the report under 
     subsection (b).
       (d) Interim Precision-Guided Munition Defined.--For 
     purposes of subsection (c), a precision-guided munition is an 
     interim precision-guided munition if the munition is being 
     procured in fiscal year 1996, but funding is not proposed for 
     additional procurement of the munition in the fiscal years 
     after fiscal year 1996 that are covered by the future years 
     defense program submitted to Congress in 1995 under section 
     221(a) of title 10, United States Code.

     SEC. 262. REVIEW OF C4I BY NATIONAL RESEARCH COUNCIL.

       (a) Review by National Research Council.--Not later than 90 
     days after the date of the enactment of this Act, the 
     Secretary of Defense shall request the National Research 
     Council of the National Academy of Sciences to conduct a 
     comprehensive review of current and planned service and 
     defense-wide programs for command, control, communications, 
     computers, and intelligence (C4I) with a special focus 
     on cross-service and inter-service issues.
       (b) Matters To Be Assessed in Review.--The review shall 
     address the following:
       (1) The match between the capabilities provided by current 
     service and defense-wide C4I programs and the actual 
     needs of users of these programs.
       (2) The interoperability of service and defense-wide 
     C4I systems that are planned to be operational in the 
     future.
       (3) The need for an overall defense-wide architecture for 
     C4I.
       (4) Proposed strategies for ensuring that future C4I 
     acquisitions are compatible and interoperable with an overall 
     architecture.
       (5) Technological and administrative aspects of the 
     C4I modernization effort to determine the soundness of 
     the underlying plan and the extent to which it is consistent 
     with concepts for joint military operations in the future.
       (c) Two-Year Period for Conducting Review.--The review 
     shall be conducted over the two-year period beginning on the 
     date on which the National Research Council and the Secretary 
     of Defense enter into a contract or other agreement for the 
     conduct of the review.
       (d) Reports.--(1) In the contract or other agreement for 
     the conduct of the review, the Secretary of Defense shall 
     provide that the National Research Council shall submit to 
     the Department of Defense and Congress interim reports and 
     progress updates on a regular basis as the review proceeds. A 
     final report on the review shall set forth the findings, 
     conclusions, and recommendations of the Council for defense-
     wide and service C4I programs and shall be submitted to 
     the Committee on Armed Services of the Senate, the Committee 
     on National Security of the House of Representatives, and the 
     Secretary of Defense.
       (2) To the maximum degree possible, the final report shall 
     be submitted in unclassified form with classified annexes as 
     necessary.
       (e) Interagency Cooperation With Study.--All military 
     departments, defense agencies, and other components of the 
     Department of Defense shall cooperate fully with the National 
     Research Council in its activities in carrying out the review 
     under this section.
       (f) Expedited Processing of Security Clearances for 
     Study.--For the purpose of facilitating the commencement of 
     the study under this section, the Secretary of Defense shall 
     expedite to the fullest degree possible the processing of 
     security clearances that are necessary for the National 
     Research Council to conduct the study.
       (g) Funding.--Of the amount authorized to be appropriated 
     in section 201 for defense-wide activities, $900,000 shall be 
     available for the study under this section.

     SEC. 263. ANALYSIS OF CONSOLIDATION OF BASIC RESEARCH 
                   ACCOUNTS OF MILITARY DEPARTMENTS.

       (a) Analysis Required.--The Secretary of Defense shall 
     conduct an analysis of the cost and effectiveness of 
     consolidating the basic research accounts of the military 
     departments. The analysis shall determine potential 
     infrastructure savings and other benefits of co-locating and 
     consolidating the management of basic research.
       (b) Deadline.--On or before March 1, 1996, the Secretary 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives a report on the analysis conducted under 
     subsection (a).
     
[[Page H368]]


     SEC. 264. CHANGE IN REPORTING PERIOD FROM CALENDAR YEAR TO 
                   FISCAL YEAR FOR ANNUAL REPORT ON CERTAIN 
                   CONTRACTS TO COLLEGES AND UNIVERSITIES.

       Section 2361(c)(2) of title 10, United States Code, is 
     amended--
       (1) by striking out ``calendar year'' and inserting in lieu 
     thereof ``fiscal year''; and
       (2) by striking out ``the year after the year'' and 
     inserting in lieu thereof ``the fiscal year after the fiscal 
     year''.

     SEC. 265. AERONAUTICAL RESEARCH AND TEST CAPABILITIES 
                   ASSESSMENT.

       (a) Findings.--Congress finds the following:
       (1) It is in the Nation's long-term national security 
     interests for the United States to maintain preeminence in 
     the area of aeronautical research and test capabilities.
       (2) Continued advances in aeronautical science and 
     engineering are critical to sustaining the strategic and 
     tactical air superiority of the United States and coalition 
     forces, as well as United States economic security and 
     international aerospace leadership.
       (3) It is in the national security and economic interests 
     of the United States and the budgetary interests of the 
     Department of Defense for the department to encourage the 
     establishment of active partnerships between the department 
     and other Government agencies, academic institutions, and 
     private industry to develop, maintain, and enhance 
     aeronautical research and test capabilities.
       (b) Review.--The Secretary of Defense shall conduct a 
     comprehensive review of the aeronautical research and test 
     facilities and capabilities of the United States in order to 
     assess the current condition of such facilities and 
     capabilities.
       (c) Report.--(1) Not later than March 1, 1996, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report setting forth in detail the 
     findings of the review required by subsection (b).
       (2) The report shall include the following:
       (A) The options for providing affordable, operable, 
     reliable, and responsive long-term aeronautical research and 
     test capabilities for military and civilian purposes and for 
     the organization and conduct of such capabilities within the 
     Department or through shared operations with other Government 
     agencies, academic institutions, and private industry.
       (B) The projected costs of such options, including costs of 
     acquisition and technical and financial arrangements 
     (including the use of Government facilities for reimbursable 
     private use).
       (C) Recommendations on the most efficient and economic 
     means of developing, maintaining, and continually modernizing 
     aeronautical research and test capabilities to meet current, 
     planned, and prospective military and civilian needs.
                       Subtitle F--Other Matters

     SEC. 271. ADVANCED LITHOGRAPHY PROGRAM.

       Section 216 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2693) is 
     amended--
       (1) in subsection (a), by striking out ``to help achieve'' 
     and all that follows through the end of the subsection and 
     inserting in lieu thereof ``to ensure that lithographic 
     processes being developed by United States-owned companies or 
     United States-incorporated companies operating in the United 
     States will lead to superior performance electronics systems 
     for the Department of Defense.'';
       (2) in subsection (b), by adding at the end the following 
     new paragraph:
       ``(3) The Director of the Defense Advanced Research 
     Projects Agency may set priorities and funding levels for 
     various technologies being developed for the ALP and shall 
     consider funding recommendations made by the Semiconductor 
     Industry Association as being advisory in nature.'';
       (3) in subsection (c)--
       (A) by inserting ``Defense'' before ``Advanced''; and
       (B) by striking out ``ARPA'' both places it appears and 
     inserting in lieu thereof ``DARPA''; and
       (4) by adding at the end the following:
       ``(d) Definitions.--In this section:
       ``(1) The term `United States-owned company' means a 
     company the majority ownership or control of which is held by 
     citizens of the United States.
       ``(2) The term `United States-incorporated company' means a 
     company that the Secretary of Defense finds is incorporated 
     in the United States and has a parent company that is 
     incorporated in a country--
       ``(A) that affords to United States-owned companies 
     opportunities, comparable to those afforded to any other 
     company, to participate in any joint venture similar to those 
     authorized under section 28 of the National Institute of 
     Standards and Technology Act (15 U.S.C. 278n);
       ``(B) that affords to United States-owned companies local 
     investment opportunities comparable to those afforded to any 
     other company; and
       ``(C) that affords adequate and effective protection for 
     the intellectual property rights of United States-owned 
     companies.''.

     SEC. 272. ENHANCED FIBER OPTIC GUIDED MISSILE (EFOG-M) 
                   SYSTEM.

       (a) Limitations.--(1) The Secretary of the Army may not 
     obligate more than $280,000,000 (based on fiscal year 1995 
     constant dollars) to develop and deliver for test and 
     evaluation by the Army the following items:
       (A) 44 enhanced fiber optic guided test missiles.
       (B) 256 fully operational enhanced fiber optic guided 
     missiles.
       (C) 12 fully operational fire units.
       (2) The Secretary of the Army may not spend funds for the 
     enhanced fiber optic guided missile (EFOG-M) system after 
     September 30, 1998, if the items described in paragraph (1) 
     have not been delivered to the Army by that date and at a 
     cost not greater than the amount set forth in paragraph (1).
       (3) The Secretary of the Army may not enter into an 
     advanced development phase for the EFOG-M system unless--
       (A) an advanced concept technology demonstration of the 
     system has been successfully completed; and
       (B) the Secretary certifies to the congressional defense 
     committees that there is a requirement for the EFOG-M system 
     that is supported by a cost and operational effectiveness 
     analysis.
       (b) Government-Furnished Equipment.--The Secretary of the 
     Army shall ensure that all Government-furnished equipment 
     that the Army agrees to provide under the contract for the 
     EFOG-M system is provided to the prime contractor in 
     accordance with the terms of the contract.

     SEC. 273. STATES ELIGIBLE FOR ASSISTANCE UNDER DEFENSE 
                   EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE 
                   RESEARCH.

       Subparagraph (A) of section 257(d)(2) of the National 
     Defense Authorization Act for Fiscal Year 1995 (Public Law 
     103-337; 108 Stat. 2705; 10 U.S.C. 2358 note) is amended to 
     read as follows:
       ``(A) the average annual amount of all Department of 
     Defense obligations for science and engineering research and 
     development that were in effect with institutions of higher 
     education in the State for the three fiscal years preceding 
     the fiscal year for which the designation is effective or for 
     the last three fiscal years for which statistics are 
     available is less than the amount determined by multiplying 
     60 percent times the amount equal to \1/50\ of the total 
     average annual amount of all Department of Defense 
     obligations for science and engineering research and 
     development that were in effect with institutions of higher 
     education in the United States for such three preceding or 
     last fiscal years, as the case may be (to be determined in 
     consultation with the Secretary of Defense);''.

     SEC. 274. CRUISE MISSILE DEFENSE INITIATIVE.

       (a) In General.--The Secretary of Defense shall undertake 
     an initiative to coordinate and strengthen the cruise missile 
     defense programs of the Department of Defense to ensure that 
     the United States develops and deploys affordable and 
     operationally effective defenses against existing and future 
     cruise missile threats to United States military forces and 
     operations.
       (b) Coordination With Ballistic Missile Defense Efforts.--
     In carrying out subsection (a), the Secretary shall ensure 
     that, to the extent practicable, the cruise missile defense 
     programs of the Department of Defense and the ballistic 
     missile defense programs of the Department of Defense are 
     coordinated with each other and that those programs are 
     mutually supporting.
       (c) Defenses Against Existing and Near-Term Cruise Missile 
     Threats.--As part of the initiative under subsection (a), the 
     Secretary shall ensure that appropriate existing and planned 
     air defense systems are upgraded to provide an affordable and 
     operationally effective defense against existing and near-
     term cruise missile threats to United States military forces 
     and operations.
       (d) Defenses Against Advanced Cruise Missiles.--As part of 
     the initiative under subsection (a), the Secretary shall 
     undertake a well-coordinated development program to support 
     the future deployment of cruise missile defense systems that 
     are affordable and operationally effective against advanced 
     cruise missiles, including cruise missiles with low 
     observable features.
       (e) Implementation Plan.--Not later than the date on which 
     the President submits the budget for fiscal year 1997 under 
     section 1105 of title 31, United States Code, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a detailed plan, in unclassified and classified 
     forms, as necessary, for carrying out this section. The plan 
     shall include an assessment of the following:
       (1) The systems of the Department of Defense that currently 
     have or could have cruise missile defense capabilities and 
     existing programs of the Department of Defense to improve 
     these capabilities.
       (2) The technologies that could be deployed in the near- to 
     mid-term to provide significant advances over existing cruise 
     missile defense capabilities and the investments that would 
     be required to ready those technologies for deployment.
       (3) The cost and operational tradeoffs, if any, between (A) 
     upgrading existing air and missile defense systems, and (B) 
     accelerating follow-on systems with significantly improved 
     capabilities against advanced cruise missiles.
       (4) The organizational and management changes that would 
     strengthen and further coordinate the cruise missile defense 
     programs of the Department of Defense, including the 
     disadvantages, if any, of implementing such changes.
       (f) Definition.--For the purposes of this section, the term 
     ``cruise missile defense programs'' means the programs, 
     projects, and activities of the military departments, the 
     Advanced Research Projects Agency, and the Ballistic Missile 
     Defense Organization 

[[Page H369]]
     relating to development and deployment of defenses against cruise 
     missiles.

     SEC. 275. MODIFICATION TO UNIVERSITY RESEARCH INITIATIVE 
                   SUPPORT PROGRAM.

       Section 802 of the National Defense Authorization Act for 
     Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1701) is 
     amended--
       (1) in subsections (a) and (b), by striking out ``shall'' 
     both places it appears and inserting in lieu thereof ``may''; 
     and
       (2) in subsection (e), by striking out the sentence 
     beginning with ``Such selection process''.

     SEC. 276. MANUFACTURING TECHNOLOGY PROGRAM.

       (a) In General.--Section 2525 of title 10, United States 
     Code, is amended as follows:
       (1) The heading is amended by striking out the second and 
     third words.
       (2) Subsection (a) is amended--
       (A) by striking out ``Science and''; and
       (B) by inserting after the first sentence the following: 
     ``The Secretary shall use the joint planning process of the 
     directors of the Department of Defense laboratories in 
     establishing the program.''.
       (3) Subsection (c) is amended--
       (A) by inserting ``(1)'' after ``(c) Execution.--''; and
       (B) by adding at the end the following:
       ``(2) The Secretary shall seek, to the extent practicable, 
     the participation of manufacturers of manufacturing equipment 
     in the projects under the program.''.
       (4) Subsection (d) is amended--
       (A) in paragraph (2)--
       (i) by striking out ``or'' at the end of subparagraph (A);
       (ii) by striking out the period at the end of subparagraph 
     (B) and inserting in lieu thereof ``; or''; and
       (iii) by adding at the end the following new subparagraph:
       ``(C) will be carried out by an institution of higher 
     education.''; and
       (B) by adding at the end the following new paragraphs:
       ``(3) At least 25 percent of the funds available for the 
     program each fiscal year shall be used for awarding grants 
     and entering into contracts, cooperative agreements, and 
     other transactions on a cost-share basis under which the 
     ratio of recipient cost to Government cost is two to one.
       ``(4) If the requirement of paragraph (3) cannot be met by 
     July 15 of a fiscal year, the Under Secretary of Defense for 
     Acquisition and Technology may waive the requirement and 
     obligate the balance of the funds available for the program 
     for that fiscal year on a cost-share basis under which the 
     ratio of recipient cost to Government cost is less than two 
     to one. Before implementing any such waiver, the Under 
     Secretary shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives the reasons for the waiver.''.
       (b) Clerical Amendment.--The item relating to section 2525 
     in the table of sections at the beginning of subchapter IV of 
     chapter 148 of title 10, United States Code, is amended to 
     read as follows:

``2525. Manufacturing Technology Program.''.

     SEC. 277. FIVE-YEAR PLAN FOR CONSOLIDATION OF DEFENSE 
                   LABORATORIES AND TEST AND EVALUATION CENTERS.

       (a) Five-Year Plan.--The Secretary of Defense, acting 
     through the Vice Chief of Staff of the Army, the Vice Chief 
     of Naval Operations, and the Vice Chief of Staff of the Air 
     Force (in their roles as test and evaluation executive agent 
     board of directors) shall develop a five-year plan to 
     consolidate and restructure the laboratories and test and 
     evaluation centers of the Department of Defense.
       (b) Objective.--The plan shall set forth the specific 
     actions needed to consolidate the laboratories and test and 
     evaluation centers into as few laboratories and centers as is 
     practical and possible, in the judgment of the Secretary, by 
     October 1, 2005.
       (c) Previously Developed Data Required To Be Used.--In 
     developing the plan, the Secretary shall use the following:
       (1) Data and results obtained by the Test and Evaluation 
     Joint Cross-Service Group and the Laboratory Joint Cross-
     Service Group in developing recommendations for the 1995 
     report of the Defense Base Closure and Realignment 
     Commission.
       (2) The report dated March 1994 on the consolidation and 
     streamlining of the test and evaluation infrastructure, 
     commissioned by the test and evaluation board of directors, 
     along with all supporting data and reports.
       (d) Matters To Be Considered.--In developing the plan, the 
     Secretary shall consider, at a minimum, the following:
       (1) Consolidation of common support functions, including 
     the following:
       (A) Aircraft (fixed wing and rotary) support.
       (B) Weapons support.
       (C) Space systems support.
       (D) Support of command, control, communications, computers, 
     and intelligence.
       (2) The extent to which any military construction, 
     acquisition of equipment, or modernization of equipment is 
     planned at the laboratories and centers.
       (3) The encroachment on the laboratories and centers by 
     residential and industrial expansion.
       (4) The total cost to the Federal Government of continuing 
     to operate the laboratories and centers.
       (5) The cost savings and program effectiveness of locating 
     laboratories and centers at the same sites.
       (6) Any loss of expertise resulting from the 
     consolidations.
       (7) Whether any legislation is neccessary to provide the 
     Secretary with any additional authority necessary to 
     accomplish the downsizing and consolidation of the 
     laboratories and centers.
       (e) Report.--Not later than May 1, 1996, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report on the plan. The report shall include an 
     identification of any additional legislation that the 
     Secretary considers necessary in order for the Secretary to 
     accomplish the downsizing and consolidation of the 
     laboratories and centers.
       (f) Limitation.--Of the amounts appropriated or otherwise 
     made available pursuant to an authorization of appropriations 
     in section 201 for the central test and evaluation investment 
     development program, not more than 75 percent may be 
     obligated before the report required by subsection (e) is 
     submitted to Congress.

     SEC. 278. LIMITATION ON T-38 AVIONICS UPGRADE PROGRAM.

       (a) Requirement.--The Secretary of Defense shall ensure 
     that, in evaluating proposals submitted in response to a 
     solicitation issued for a contract for the T-38 Avionics 
     Upgrade Program, the proposal of an entity may not be 
     considered unless--
       (1) in the case of an entity that conducts substantially 
     all of its business in a foreign country, the foreign country 
     provides equal access to similar contract solicitations in 
     that country to United States entities; and
       (2) in the case of an entity that conducts business in the 
     United States but that is owned or controlled by a foreign 
     government or by an entity incorporated in a foreign country, 
     the foreign government or foreign country of incorporation 
     provides equal access to similar contract solicitations in 
     that country to United States entities.
       (b) Definition.--In this section, the term ``United States 
     entity'' means an entity that is owned or controlled by 
     persons a majority of whom are United States citizens.

     SEC. 279. GLOBAL POSITIONING SYSTEM.

       (a) Conditional Prohibition on Use of Selective 
     Availability Feature.--Except as provided in subsection (b), 
     after May 1, 1996, the Secretary of Defense may not (through 
     use of the feature known as ``selective availability'') deny 
     access of non-Department of Defense users to the full 
     capabilities of the Global Positioning System.
       (b) Plan.--Subsection (a) shall cease to apply upon 
     submission by the Secretary of Defense to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives of a plan for 
     enhancement of the Global Positioning System that provides 
     for--
       (1) development and acquisition of effective capabilities 
     to deny hostile military forces the ability to use the Global 
     Positioning System without hindering the ability of United 
     States military forces and civil users to have access to and 
     use of the system, together with a specific date by which 
     those capabilities could be operational; and
       (2) development and acquisition of receivers for the Global 
     Positioning System and other techniques for weapons and 
     weapon systems that provide substantially improved resistance 
     to jamming and other forms of electronic interference or 
     disruption, together with a specific date by which those 
     receivers and other techniques could be operational with 
     United States military forces.

     SEC. 280. REVISION OF AUTHORITY FOR PROVIDING ARMY SUPPORT 
                   FOR THE NATIONAL SCIENCE CENTER FOR 
                   COMMUNICATIONS AND ELECTRONICS.

       (a) Purpose.--Subsection (b)(2) of section 1459 of the 
     Department of Defense Authorization Act, 1986 (Public Law 99-
     145; 99 Stat. 763) is amended by striking out ``to make 
     available'' and all that follows and inserting in lieu 
     thereof ``to provide for the management, operation, and 
     maintenance of those areas in the national science center 
     that are designated for use by the Army and to provide 
     incidental support for the operation of those areas in the 
     center that are designated for general use.''.
       (b) Authority for Support.--Subsection (c) of such section 
     is amended to read as follows:
       ``(c) National Science Center.--(1) The Secretary may 
     manage, operate, and maintain facilities at the center under 
     terms and conditions prescribed by the Secretary for the 
     purpose of conducting educational outreach programs in 
     accordance with chapter 111 of title 10, United States Code.
       ``(2) The Foundation, or NSC Discovery Center, 
     Incorporated, a nonprofit corporation of the State of 
     Georgia, shall submit to the Secretary for review and 
     approval all matters pertaining to the acquisition, design, 
     renovation, equipping, and furnishing of the center, 
     including all plans, specifications, contracts, sites, and 
     materials for the center.''.
       (c) Authority for Acceptance of Gifts and Fundraising.--
     Subsection (d) of such section is amended to read as follows:
       ``(d) Gifts and Fundraising.--(1) Subject to paragraph (3), 
     the Secretary may accept a conditional or unconditional 
     donation of money or property that is made for the benefit 
     of, or in connection with, the center.
       ``(2) Notwithstanding any other provision of law, the 
     Secretary may endorse, promote, and assist the efforts of the 
     Foundation and NSC Discovery Center, Incorporated, to 
     obtain--
       ``(A) funds for the management, operation, and maintenance 
     of the center; and
       ``(B) donations of exhibits, equipment, and other property 
     for use in the center.
     
[[Page H370]]

       ``(3) The Secretary may not accept a donation under this 
     subsection that is made subject to--
       ``(A) any condition that is inconsistent with an applicable 
     law or regulation; or
       ``(B) except to the extent provided in appropriations Acts, 
     any condition that would necessitate an expenditure of 
     appropriated funds.
       ``(4) The Secretary shall prescribe in regulations the 
     criteria to be used in determining whether to accept a 
     donation. The Secretary shall include criteria to ensure that 
     acceptance of a donation does not establish an unfavorable 
     appearance regarding the fairness and objectivity with which 
     the Secretary or any other officer or employee of the 
     Department of Defense performs official responsibilities and 
     does not compromise or appear to compromise the integrity of 
     a Government program or any official involved in that 
     program.''.
       (d) Authorized Uses.--Such section is amended--
       (1) by striking out subsection (f);
       (2) by redesignating subsection (g) as subsection (f); and
       (3) in paragraph (1) of subsection (f), as redesignated by 
     paragraph (2), by inserting ``areas designated for use by the 
     Army in'' after ``The Secretary may make''.
       (e) Alternative of Additional Development and Management.--
     Such section, as amended by subsection (d), is further 
     amended by adding at the end the following:
       ``(g) Alternative or Additional Development and Management 
     of the Center.--(1) The Secretary may enter into an agreement 
     with NSC Discovery Center, Incorporated, to develop, manage, 
     and maintain a national science center under this section. In 
     entering into an agreement with NSC Discovery Center, 
     Incorporated, the Secretary may agree to any term or 
     condition to which the Secretary is authorized under this 
     section to agree for purposes of entering into an agreement 
     with the Foundation.
       ``(2) The Secretary may exercise the authority under 
     paragraph (1) in addition to, or instead of, exercising the 
     authority provided under this section to enter into an 
     agreement with the Foundation.''.
                  TITLE III--OPERATION AND MAINTENANCE
              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1996 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     expenses, not otherwise provided for, for operation and 
     maintenance, in amounts as follows:
       (1) For the Army, $18,746,695,000.
       (2) For the Navy, $21,493,155,000.
       (3) For the Marine Corps, $2,521,822,000.
       (4) For the Air Force, $18,719,277,000.
       (5) For Defense-wide activities, $9,910,476,000.
       (6) For the Army Reserve, $1,129,191,000.
       (7) For the Naval Reserve, $868,342,000.
       (8) For the Marine Corps Reserve, $100,283,000.
       (9) For the Air Force Reserve, $1,516,287,000.
       (10) For the Army National Guard, $2,361,808,000.
       (11) For the Air National Guard, $2,760,121,000.
       (12) For the Defense Inspector General, $138,226,000.
       (13) For the United States Court of Appeals for the Armed 
     Forces, $6,521,000.
       (14) For Environmental Restoration, Defense, 
     $1,422,200,000.
       (15) For Drug Interdiction and Counter-drug Activities, 
     Defense-wide, $680,432,000.
       (16) For Medical Programs, Defense, $9,876,525,000.
       (17) For support for the 1996 Summer Olympics, $15,000,000.
       (18) For Cooperative Threat Reduction programs, 
     $300,000,000.
       (19) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $50,000,000.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1996 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     providing capital for working capital and revolving funds in 
     amounts as follows:
       (1) For the Defense Business Operations Fund, $878,700,000.
       (2) For the National Defense Sealift Fund, $1,024,220,000.

     SEC. 303. ARMED FORCES RETIREMENT HOME.

       There is hereby authorized to be appropriated for fiscal 
     year 1996 from the Armed Forces Retirement Home Trust Fund 
     the sum of $59,120,000 for the operation of the Armed Forces 
     Retirement Home, including the United States Soldiers' and 
     Airmen's Home and the Naval Home.

     SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE 
                   TRANSACTION FUND.

       (a) Transfer Authority.--To the extent provided in 
     appropriations Acts, not more than $150,000,000 is authorized 
     to be transferred from the National Defense Stockpile 
     Transaction Fund to operation and maintenance accounts for 
     fiscal year 1996 in amounts as follows:
       (1) For the Army, $50,000,000.
       (2) For the Navy, $50,000,000.
       (3) For the Air Force, $50,000,000.
       (b) Treatment of Transfers.--Amounts transferred under this 
     section--
       (1) shall be merged with, and be available for the same 
     purposes and the same period as, the amounts in the accounts 
     to which transferred; and
       (2) may not be expended for an item that has been denied 
     authorization of appropriations by Congress.
       (c) Relationship to Other Transfer Authority.--The transfer 
     authority provided in this section is in addition to the 
     transfer authority provided in section 1001.

     SEC. 305. CIVIL AIR PATROL.

       Of the amounts authorized to be appropriated pursuant to 
     this Act, there shall be made available to the Civil Air 
     Patrol $24,500,000, of which $14,704,000 shall be made 
     available for the Civil Air Patrol Corporation.
                   Subtitle B--Depot-Level Activities

     SEC. 311. POLICY REGARDING PERFORMANCE OF DEPOT-LEVEL 
                   MAINTENANCE AND REPAIR FOR THE DEPARTMENT OF 
                   DEFENSE.

       (a) Findings.--Congress makes the following findings:
       (1) The Department of Defense does not have a comprehensive 
     policy regarding the performance of depot-level maintenance 
     and repair of military equipment.
       (2) The absence of such a policy has caused the Congress to 
     establish guidelines for the performance of such functions.
       (3) It is essential to the national security of the United 
     States that the Department of Defense maintain an organic 
     capability within the department, including skilled 
     personnel, technical competencies, equipment, and facilities, 
     to perform depot-level maintenance and repair of military 
     equipment in order to ensure that the Armed Forces of the 
     United States are able to meet training, operational, 
     mobilization, and emergency requirements without impediment.
       (4) The organic capability of the Department of Defense to 
     perform depot-level maintenance and repair of military 
     equipment must satisfy known and anticipated core maintenance 
     and repair requirements across the full range of peacetime 
     and wartime scenarios.
       (5) Although it is possible that savings can be achieved by 
     contracting with private-sector sources for the performance 
     of some work currently performed by Department of Defense 
     depots, the Department of Defense has not determined the type 
     or amount of work that should be performed under contract 
     with private-sector sources nor the relative costs and 
     benefits of contracting for the performance of such work by 
     those sources.
       (b) Sense of Congress.--It is the sense of Congress that 
     there is a compelling need for the Department of Defense to 
     articulate known and anticipated core maintenance and repair 
     requirements, to organize the resources of the Department of 
     Defense to meet those requirements economically and 
     efficiently, and to determine what work should be performed 
     by the private sector and how such work should be managed.
       (c) Requirement for Policy.--Not later than March 31, 1996, 
     the Secretary of Defense shall develop and report to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives a 
     comprehensive policy on the performance of depot-level 
     maintenance and repair for the Department of Defense that 
     maintains the capability described in section 2464 of title 
     10, United States Code.
       (d) Content of Policy.--In developing the policy, the 
     Secretary of Defense shall do each of the following:
       (1) Identify for each military department, with the 
     concurrence of the Secretary of that military department, 
     those depot-level maintenance and repair activities that are 
     necessary to ensure the depot-level maintenance and repair 
     capability as required by section 2464 of title 10, United 
     States Code.
       (2) Provide for performance of core depot-level maintenance 
     and repair capabilities in facilities owned and operated by 
     the United States.
       (3) Provide for the core capabilities to include sufficient 
     skilled personnel, equipment, and facilities that--
       (A) is of the proper size (i) to ensure a ready and 
     controlled source of technical competence and repair and 
     maintenance capability necessary to meet the requirements of 
     the National Military Strategy and other requirements for 
     responding to mobilizations and military contingencies, and 
     (ii) to provide for rapid augmentation in time of emergency; 
     and
       (B) is assigned sufficient workload to ensure cost 
     efficiency and technical proficiency in time of peace.
       (4) Address environmental liability.
       (5) In the case of depot-level maintenance and repair 
     workloads in excess of the workload required to be performed 
     by Department of Defense depots, provide for competition for 
     those workloads between public and private entities when 
     there is sufficient potential for realizing cost savings 
     based on adequate private-sector competition and technical 
     capabilities.
       (6) Address issues concerning exchange of technical data 
     between the Federal Government and the private sector.
       (7) Provide for, in the Secretary's discretion and after 
     consultation with the Secretaries of the military 
     departments, the transfer from one military department to 
     another, in accordance with merit-based selection processes, 
     workload that supports the core depot-level maintenance and 
     repair capabilities in facilities owned and operated by the 
     United States.
     
[[Page H371]]

       (8) Require that, in any competition for a workload 
     (whether among private-sector sources or between depot-level 
     activities of the Department of Defense and private-sector 
     sources), bids are evaluated under a methodology that ensures 
     that appropriate costs to the Government and the private 
     sector are identified.
       (9) Provide for the performance of maintenance and repair 
     for any new weapons systems defined as core, under section 
     2464 of title 10, United States Code, in facilities owned and 
     operated by the United States.
       (e) Considerations.--In developing the policy, the 
     Secretary shall take into consideration the following 
     matters:
       (1) The national security interests of the United States.
       (2) The capabilities of the public depots and the 
     capabilities of businesses in the private sector to perform 
     the maintenance and repair work required by the Department of 
     Defense.
       (3) Any applicable recommendations of the Defense Base 
     Closure and Realignment Commission that are required to be 
     implemented under the Defense Base Closure and Realignment 
     Act of 1990.
       (4) The extent to which the readiness of the Armed Forces 
     would be affected by a necessity to construct new facilities 
     to accommodate any redistribution of depot-level maintenance 
     and repair workloads that is made in accordance with the 
     recommendation of the Defense Base Closure and Realignment 
     Commission, under the Defense Base Closure and Realignment 
     Act of 1990, that such workloads be consolidated at 
     Department of Defense depots or private-sector facilities.
       (5) Analyses of costs and benefits of alternatives, 
     including a comparative analysis of--
       (A) the costs and benefits, including any readiness 
     implications, of any proposed policy to convert to contractor 
     performance of depot-level maintenance and repair workloads 
     where the workload is being performed by Department of 
     Defense personnel; and
       (B) the costs and benefits, including any readiness 
     implications, of a policy to transfer depot-level maintenance 
     and repair workloads among depots.
       (f) Repeal of 60/40 Requirement and Requirement Relating to 
     Competition.--(1) Sections 2466 and 2469 of title 10, United 
     States Code, are repealed.
       (2) The table of sections at the beginning of chapter 146 
     of such title is amended by striking out the items relating 
     to sections 2466 and 2469.
       (3) The amendments made by paragraphs (1) and (2) shall 
     take effect on the date (after the date of the enactment of 
     this Act) on which legislation is enacted that contains a 
     provision that specifically states one of the following:
       (A) ``The policy on the performance of depot-level 
     maintenance and repair for the Department of Defense that was 
     submitted by the Secretary of Defense to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives pursuant to section 
     311 of the National Defense Authorization Act for Fiscal Year 
     1996 is approved.''; or
       (B) ``The policy on the performance of depot-level 
     maintenance and repair for the Department of Defense that was 
     submitted by the Secretary of Defense to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives pursuant to section 
     311 of the National Defense Authorization Act for Fiscal Year 
     1996 is approved with the following modifications:'' (with 
     the modifications being stated in matter appearing after the 
     colon).
       (g) Annual Report.--If legislation referred to in 
     subsection (f)(3) is enacted, the Secretary of Defense shall, 
     not later than March 1 of each year (beginning with the year 
     after the year in which such legislation is enacted), submit 
     to Congress a report that--
       (1) specifies depot maintenance core capability 
     requirements determined in accordance with the procedures 
     established to comply with the policy prescribed pursuant to 
     subsections (d)(2) and (d)(3);
       (2) specifies the planned amount of workload to be 
     accomplished by the depot-level activities of each military 
     department in support of those requirements for the following 
     fiscal year; and
       (3) identifies the planned amount of workload, which--
       (A) shall be measured by direct labor hours and by amounts 
     to be expended; and
       (B) shall be shown separately for each commodity group.
       (h) Review by General Accounting Office.--(1) The Secretary 
     shall make available to the Comptroller General of the United 
     States all information used by the Department of Defense in 
     developing the policy under subsections (c) through (e) of 
     this section.
       (2) Not later than 45 days after the date on which the 
     Secretary submits to Congress the report required by 
     subsection (c), the Comptroller General shall transmit to 
     Congress a report containing a detailed analysis of the 
     Secretary's proposed policy as reported under such 
     subsection.
       (i) Report on Depot-Level Maintenance and Repair 
     Workload.--Not later than March 31, 1996, the Secretary of 
     Defense shall submit to Congress a report on the depot-level 
     maintenance and repair workload of the Department of Defense. 
     The report shall, to the maximum extent practicable, include 
     the following:
       (1) An analysis of the need for and effect of the 
     requirement under section 2466 of title 10, United States 
     Code, that no more than 40 percent of the depot-level 
     maintenance and repair work of the Department of Defense be 
     contracted for performance by non-Government personnel, 
     including a description of the effect on military readiness 
     and the national security resulting from that requirement and 
     a description of any specific difficulties experienced by the 
     Department of Defense as a result of that requirement.
       (2) An analysis of the distribution during the five fiscal 
     years ending with fiscal year 1995 of the depot-level 
     maintenance and repair workload of the Department of Defense 
     between depot-level activities of the Department of Defense 
     and non-Government personnel, measured by direct labor hours 
     and by amounts expended, and displayed, for that five-year 
     period and for each year of that period, so as to show (for 
     each military department (and separately for the Navy and 
     Marine Corps)) such distribution.
       (3) A projection of the distribution during the five fiscal 
     years beginning with fiscal year 1997 of the depot-level 
     maintenance and repair workload of the Department of Defense 
     between depot-level activities of the Department of Defense 
     and non-Government personnel, measured by direct labor hours 
     and by amounts expended, and displayed, for that five-year 
     period and for each year of that period, so as to show (for 
     each military department (and separately for the Navy and 
     Marine Corps)) such distribution that would be accomplished 
     under a new policy as required under subsection (c).
       (j) Other Review by General Accounting Office.--(1) The 
     Comptroller General of the United States shall conduct an 
     independent audit of the findings of the Secretary of Defense 
     in the report under subsection (i). The Secretary of Defense 
     shall provide to the Comptroller General for such purpose all 
     information used by the Secretary in preparing such report.
       (2) Not later than 45 days after the date on which the 
     Secretary of Defense submits to Congress the report required 
     under subsection (i), the Comptroller General shall transmit 
     to Congress a report containing a detailed analysis of the 
     report submitted under that subsection.

     SEC. 312. MANAGEMENT OF DEPOT EMPLOYEES.

       (a) Depot Employees.--Chapter 146 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 2472. Management of depot employees

       ``(b) Annual Report.--Not later than December 1 of each 
     fiscal year, the Secretary of Defense shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives a report 
     on the number of employees employed and expected to be 
     employed by the Department of Defense during that fiscal year 
     to perform depot-level maintenance and repair of materiel. 
     The report shall indicate whether that number is sufficient 
     to perform the depot-level maintenance and repair functions 
     for which funds are expected to be provided for that fiscal 
     year for performance by Department of Defense employees.''.
       (b) Transfer of Subsection.--Subsection (b) of section 2466 
     of title 10, United States Code, is transferred to section 
     2472 of such title, as added by subsection (a), redesignated 
     as subsection (a), and inserted after the section heading.
       (c) Submission of Initial Report.--The report under 
     subsection (b) of section 2472 of title 10, United States 
     Code, as added by subsection (a), for fiscal year 1996 shall 
     be submitted not later than March 15, 1996 (notwithstanding 
     the date specified in such subsection).
       (d) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2472. Management of depot employees.''.

     SEC. 313. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND 
                   NAVAL SHIPYARDS TO ENGAGE IN DEFENSE-RELATED 
                   PRODUCTION AND SERVICES.

       Section 1425(e) of the National Defense Authorization Act 
     for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is 
     amended by striking out ``September 30, 1995'' and inserting 
     in lieu thereof ``September 30, 1996''.

     SEC. 314. MODIFICATION OF NOTIFICATION REQUIREMENT REGARDING 
                   USE OF CORE LOGISTICS FUNCTIONS WAIVER.

       Section 2464(b) of title 10, United States Code, is amended 
     by striking out paragraphs (3) and (4) and inserting in lieu 
     thereof the following new paragraph:
       ``(3) A waiver under paragraph (2) may not take effect 
     until the end of the 30-day period beginning on the date on 
     which the Secretary submits a report on the waiver to the 
     Committee on Armed Services and the Committee on 
     Appropriations of the Senate and the Committee on National 
     Security and the Committee on Appropriations of the House of 
     Representatives.''.
                  Subtitle C--Environmental Provisions

     SEC. 321. REVISION OF REQUIREMENTS FOR AGREEMENTS FOR 
                   SERVICES UNDER ENVIRONMENTAL RESTORATION 
                   PROGRAM.

       (a) Requirements.--(1) Section 2701(d) of title 10, United 
     States Code, is amended to read as follows:
       ``(d) Services of Other Agencies.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     may enter into agreements on a reimbursable or other basis 
     with any other 

[[Page H372]]
     Federal agency, or with any State or local government agency, to obtain 
     the services of the agency to assist the Secretary in 
     carrying out any of the Secretary's responsibilities under 
     this section. Services which may be obtained under this 
     subsection include the identification, investigation, and 
     cleanup of any off-site contamination resulting from the 
     release of a hazardous substance or waste at a facility under 
     the Secretary's jurisdiction.
       ``(2) Limitation on reimbursable agreements.--An agreement 
     with an agency under paragraph (1) may not provide for 
     reimbursement of the agency for regulatory enforcement 
     activities.''.
       (2)(A) Except as provided in subparagraph (B), the total 
     amount of funds available for reimbursements under agreements 
     entered into under section 2710(d) of title 10, United States 
     Code, as amended by paragraph (1), in fiscal year 1996 may 
     not exceed $10,000,000.
       (B) The Secretary of Defense may pay in fiscal year 1996 an 
     amount for reimbursements under agreements referred to in 
     subparagraph (A) in excess of the amount specified in that 
     subparagraph for that fiscal year if--
       (i) the Secretary certifies to Congress that the payment of 
     the amount under this subparagraph is essential for the 
     management of the Defense Environmental Restoration Program 
     under chapter 160 of title 10, United States Code; and
       (ii) a period of 60 days has expired after the date on 
     which the certification is received by Congress.
       (b) Report on Services Obtained.--The Secretary of Defense 
     shall include in the report submitted to Congress with 
     respect to fiscal year 1998 under section 2706(a) of title 
     10, United States Code, information on the services, if any, 
     obtained by the Secretary during fiscal year 1996 pursuant to 
     each agreement on a reimbursable basis entered into with a 
     State or local government agency under section 2701(d) of 
     title 10, United States Code, as amended by subsection (a). 
     The information shall include a description of the services 
     obtained under each agreement and the amount of the 
     reimbursement provided for the services.

     SEC. 322. ADDITION OF AMOUNTS CREDITABLE TO DEFENSE 
                   ENVIRONMENTAL RESTORATION ACCOUNT.

       Section 2703(e) of title 10, United States Code, is amended 
     to read as follows:
       ``(e) Amounts Recovered.--The following amounts shall be 
     credited to the transfer account:
       ``(1) Amounts recovered under CERCLA for response actions 
     of the Secretary.
       ``(2) Any other amounts recovered by the Secretary or the 
     Secretary of the military department concerned from a 
     contractor, insurer, surety, or other person to reimburse the 
     Department of Defense for any expenditure for environmental 
     response activities.''.

     SEC. 323. USE OF DEFENSE ENVIRONMENTAL RESTORATION ACCOUNT.

       (a) Goal for Certain DERA Expenditures.--It shall be the 
     goal of the Secretary of Defense to limit, by the end of 
     fiscal year 1997, spending for administration, support, 
     studies, and investigations associated with the Defense 
     Environmental Restoration Account to 20 percent of the total 
     funding for that account.
       (b) Report.--Not later than April 1, 1996, the Secretary 
     shall submit to Congress a report that contains specific, 
     detailed information on--
       (1) the extent to which the Secretary has attained the goal 
     described in subsection (a) as of the date of the submission 
     of the report; and
       (2) if the Secretary has not attained such goal by such 
     date, the actions the Secretary plans to take to attain the 
     goal.

     SEC. 324. REVISION OF AUTHORITIES RELATING TO RESTORATION 
                   ADVISORY BOARDS.

       (a) Regulations.--Paragraph (2) of subsection (d) of 
     section 2705 of title 10, United States Code, is amended to 
     read as follows:
       ``(2)(A) The Secretary shall prescribe regulations 
     regarding the establishment, characteristics, composition, 
     and funding of restoration advisory boards pursuant to this 
     subsection.
       ``(B) The issuance of regulations under subparagraph (A) 
     shall not be a precondition to the establishment of 
     restoration advisory boards under this subsection.''.
       (b) Funding for Administrative Expenses.--Paragraph (3) of 
     such subsection is amended to read as follows:
       ``(3) The Secretary may authorize the commander of an 
     installation (or, if there is no such commander, an 
     appropriate official of the Department of Defense designated 
     by the Secretary) to pay routine administrative expenses of a 
     restoration advisory board established for that installation. 
     Such payments shall be made from funds available under 
     subsection (g).''.
       (c) Technical Assistance.--Such section is further amended 
     by striking out subsection (e) and inserting in lieu thereof 
     the following new subsection (e):
       ``(e) Technical Assistance.--(1) The Secretary may, upon 
     the request of the technical review committee or restoration 
     advisory board for an installation, authorize the commander 
     of the installation (or, if there is no such commander, an 
     appropriate official of the Department of Defense designated 
     by the Secretary) to obtain for the committee or advisory 
     board, as the case may be, from private sector sources 
     technical assistance for interpreting scientific and 
     engineering issues with regard to the nature of environmental 
     hazards at the installation and the restoration activities 
     conducted, or proposed to be conducted, at the installation. 
     The commander of an installation (or, if there is no such 
     commander, an appropriate official of the Department of 
     Defense designated by the Secretary) shall use funds made 
     available under subsection (g) for obtaining assistance under 
     this paragraph.
       ``(2) The commander of an installation (or, if there is no 
     such commander, an appropriate official of the Department of 
     Defense designated by the Secretary) may obtain technical 
     assistance under paragraph (1) for a technical review 
     committee or restoration advisory board only if--
       ``(A) the technical review committee or restoration 
     advisory board demonstrates that the Federal, State, and 
     local agencies responsible for overseeing environmental 
     restoration at the installation, and available Department of 
     Defense personnel, do not have the technical expertise 
     necessary for achieving the objective for which the technical 
     assistance is to be obtained; or
       ``(B) the technical assistance--
       ``(i) is likely to contribute to the efficiency, 
     effectiveness, or timeliness of environmental restoration 
     activities at the installation; and
       ``(ii) is likely to contribute to community acceptance of 
     environmental restoration activities at the installation.''.
       (d) Funding.--(1) Such section is further amended by adding 
     at the end the following new subsection:
       ``(g) Funding.--The Secretary shall, to the extent provided 
     in appropriations Acts, make funds available for 
     administrative expenses and technical assistance under this 
     section using funds in the following accounts:
       ``(1) In the case of a military installation not approved 
     for closure pursuant to a base closure law, the Defense 
     Environmental Restoration Account established under section 
     2703(a) of this title.
       ``(2) In the case of an installation approved for closure 
     pursuant to such a law, the Department of Defense Base 
     Closure Account 1990 established under section 2906(a) of the 
     Defense Base Closure and Realignment Act of 1990 (part A of 
     title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).''.
       (2)(A) Subject to subparagraph (B), the total amount of 
     funds made available under section 2705(g) of title 10, 
     United States Code, as added by paragraph (1), for fiscal 
     year 1996 may not exceed $6,000,000.
       (B) Amounts may not be made available under subsection (g) 
     of such section 2705 after September 15, 1996, unless the 
     Secretary of Defense publishes proposed final or interim 
     final regulations required under subsection (d) of such 
     section, as amended by subsection (a).
       (e) Definition.--Such section is further amended by adding 
     after subsection (g) (as added by subsection (d)) the 
     following new subsection:
       ``(h) Definition.--In this section, the term `base closure 
     law' means the following:
       ``(1) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).
       ``(2) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).
       ``(3) Section 2687 of this title.''.
       (f) Reports on Activities of Technical Review Committees 
     and Restoration Advisory Boards.--Section 2706(a)(2) of title 
     10, United States Code, is amended by adding at the end the 
     following:
       ``(J) A statement of the activities, if any, including 
     expenditures for administrative expenses and technical 
     assistance under section 2705 of this title, of the technical 
     review committee or restoration advisory board established 
     for the installation under such section during the preceding 
     fiscal year.''.

     SEC. 325. DISCHARGES FROM VESSELS OF THE ARMED FORCES.

       (a) Purposes.--The purposes of this section are to--
       (1) enhance the operational flexibility of vessels of the 
     Armed Forces domestically and internationally;
       (2) stimulate the development of innovative vessel 
     pollution control technology; and
       (3) advance the development by the United States Navy of 
     environmentally sound ships.
       (b) Uniform National Discharge Standards Development.--
     Section 312 of the Federal Water Pollution Control Act (33 
     U.S.C. 1322) is amended by adding at the end the following:
       ``(n) Uniform National Discharge Standards for Vessels of 
     the Armed Forces.--
       ``(1) Applicability.--This subsection shall apply to 
     vessels of the Armed Forces and discharges, other than 
     sewage, incidental to the normal operation of a vessel of the 
     Armed Forces, unless the Secretary of Defense finds that 
     compliance with this subsection would not be in the national 
     security interests of the United States.
       ``(2) Determination of discharges required to be controlled 
     by marine pollution control devices.--
       ``(A) In general.--The Administrator and the Secretary of 
     Defense, after consultation with the Secretary of the 
     department in which the Coast Guard is operating, the 
     Secretary of Commerce, and interested States, shall jointly 
     determine the discharges incidental to the normal operation 
     of a vessel of the Armed Forces for which it is reasonable 
     and practicable to require use of a marine pollution control 
     device to mitigate adverse impacts on the marine environment. 
     Notwithstanding subsection (a)(1) of section 553 

[[Page H373]]
     of title 5, United States Code, the Administrator and the Secretary of 
     Defense shall promulgate the determinations in accordance 
     with such section. The Secretary of Defense shall require the 
     use of a marine pollution control device on board a vessel of 
     the Armed Forces in any case in which it is determined that 
     the use of such a device is reasonable and practicable.
       ``(B) Considerations.--In making a determination under 
     subparagraph (A), the Administrator and the Secretary of 
     Defense shall take into consideration--
       ``(i) the nature of the discharge;
       ``(ii) the environmental effects of the discharge;
       ``(iii) the practicability of using the marine pollution 
     control device;
       ``(iv) the effect that installation or use of the marine 
     pollution control device would have on the operation or 
     operational capability of the vessel;
       ``(v) applicable United States law;
       ``(vi) applicable international standards; and
       ``(vii) the economic costs of the installation and use of 
     the marine pollution control device.
       ``(3) Performance standards for marine pollution control 
     devices.--
       ``(A) In general.--For each discharge for which a marine 
     pollution control device is determined to be required under 
     paragraph (2), the Administrator and the Secretary of 
     Defense, in consultation with the Secretary of the department 
     in which the Coast Guard is operating, the Secretary of 
     State, the Secretary of Commerce, other interested Federal 
     agencies, and interested States, shall jointly promulgate 
     Federal standards of performance for each marine pollution 
     control device required with respect to the discharge. 
     Notwithstanding subsection (a)(1) of section 553 of title 5, 
     United States Code, the Administrator and the Secretary of 
     Defense shall promulgate the standards in accordance with 
     such section.
       ``(B) Considerations.--In promulgating standards under this 
     paragraph, the Administrator and the Secretary of Defense 
     shall take into consideration the matters set forth in 
     paragraph (2)(B).
       ``(C) Classes, types, and sizes of vessels.--The standards 
     promulgated under this paragraph may--
       ``(i) distinguish among classes, types, and sizes of 
     vessels;
       ``(ii) distinguish between new and existing vessels; and
       ``(iii) provide for a waiver of the applicability of the 
     standards as necessary or appropriate to a particular class, 
     type, age, or size of vessel.
       ``(4) Regulations for use of marine pollution control 
     devices.--The Secretary of Defense, after consultation with 
     the Administrator and the Secretary of the department in 
     which the Coast Guard is operating, shall promulgate such 
     regulations governing the design, construction, installation, 
     and use of marine pollution control devices on board vessels 
     of the Armed Forces as are necessary to achieve the standards 
     promulgated under paragraph (3).
       ``(5) Deadlines; effective date.--
       ``(A) Determinations.--The Administrator and the Secretary 
     of Defense shall--
       ``(i) make the initial determinations under paragraph (2) 
     not later than 2 years after the date of the enactment of 
     this subsection; and
       ``(ii) every 5 years--

       ``(I) review the determinations; and
       ``(II) if necessary, revise the determinations based on 
     significant new information.

       ``(B) Standards.--The Administrator and the Secretary of 
     Defense shall--
       ``(i) promulgate standards of performance for a marine 
     pollution control device under paragraph (3) not later than 2 
     years after the date of a determination under paragraph (2) 
     that the marine pollution control device is required; and
       ``(ii) every 5 years--

       ``(I) review the standards; and
       ``(II) if necessary, revise the standards, consistent with 
     paragraph (3)(B) and based on significant new information.

       ``(C) Regulations.--The Secretary of Defense shall 
     promulgate regulations with respect to a marine pollution 
     control device under paragraph (4) as soon as practicable 
     after the Administrator and the Secretary of Defense 
     promulgate standards with respect to the device under 
     paragraph (3), but not later than 1 year after the 
     Administrator and the Secretary of Defense promulgate the 
     standards. The regulations promulgated by the Secretary of 
     Defense under paragraph (4) shall become effective upon 
     promulgation unless another effective date is specified in 
     the regulations.
       ``(D) Petition for review.--The Governor of any State may 
     submit a petition requesting that the Secretary of Defense 
     and the Administrator review a determination under paragraph 
     (2) or a standard under paragraph (3), if there is 
     significant new information, not considered previously, that 
     could reasonably result in a change to the particular 
     determination or standard after consideration of the matters 
     set forth in paragraph (2)(B). The petition shall be 
     accompanied by the scientific and technical information on 
     which the petition is based. The Administrator and the 
     Secretary of Defense shall grant or deny the petition not 
     later than 2 years after the date of receipt of the petition.
       ``(6) Effect on other laws.--
       ``(A) Prohibition on regulation by states or political 
     subdivisions of states.--Beginning on the effective date of--
       ``(i) a determination under paragraph (2) that it is not 
     reasonable and practicable to require use of a marine 
     pollution control device regarding a particular discharge 
     incidental to the normal operation of a vessel of the Armed 
     Forces; or
       ``(ii) regulations promulgated by the Secretary of Defense 
     under paragraph (4);
     except as provided in paragraph (7), neither a State nor a 
     political subdivision of a State may adopt or enforce any 
     statute or regulation of the State or political subdivision 
     with respect to the discharge or the design, construction, 
     installation, or use of any marine pollution control device 
     required to control discharges from a vessel of the Armed 
     Forces.
       ``(B) Federal laws.--This subsection shall not affect the 
     application of section 311 to discharges incidental to the 
     normal operation of a vessel.
       ``(7) Establishment of state no-discharge zones.--
       ``(A) State prohibition.--
       ``(i) In general.--After the effective date of--

       ``(I) a determination under paragraph (2) that it is not 
     reasonable and practicable to require use of a marine 
     pollution control device regarding a particular discharge 
     incidental to the normal operation of a vessel of the Armed 
     Forces; or
       ``(II) regulations promulgated by the Secretary of Defense 
     under paragraph (4);

     if a State determines that the protection and enhancement of 
     the quality of some or all of the waters within the State 
     require greater environmental protection, the State may 
     prohibit 1 or more discharges incidental to the normal 
     operation of a vessel, whether treated or not treated, into 
     the waters. No prohibition shall apply until the 
     Administrator makes the determinations described in 
     subclauses (II) and (III) of subparagraph (B)(i).
       ``(ii) Documentation.--To the extent that a prohibition 
     under this paragraph would apply to vessels of the Armed 
     Forces and not to other types of vessels, the State shall 
     document the technical or environmental basis for the 
     distinction.
       ``(B) Prohibition by the administrator.--
       ``(i) In general.--Upon application of a State, the 
     Administrator shall by regulation prohibit the discharge from 
     a vessel of 1 or more discharges incidental to the normal 
     operation of a vessel, whether treated or not treated, into 
     the waters covered by the application if the Administrator 
     determines that--

       ``(I) the protection and enhancement of the quality of the 
     specified waters within the State require a prohibition of 
     the discharge into the waters;
       ``(II) adequate facilities for the safe and sanitary 
     removal of the discharge incidental to the normal operation 
     of a vessel are reasonably available for the waters to which 
     the prohibition would apply; and
       ``(III) the prohibition will not have the effect of 
     discriminating against a vessel of the Armed Forces by reason 
     of the ownership or operation by the Federal Government, or 
     the military function, of the vessel.

       ``(ii) Approval or disapproval.--The Administrator shall 
     approve or disapprove an application submitted under clause 
     (i) not later than 90 days after the date on which the 
     application is submitted to the Administrator. 
     Notwithstanding clause (i)(II), the Administrator shall not 
     disapprove an application for the sole reason that there are 
     not adequate facilities to remove any discharge incidental to 
     the normal operation of a vessel from vessels of the Armed 
     Forces.
       ``(C) Applicability to foreign flagged vessels.--A 
     prohibition under this paragraph--
       ``(i) shall not impose any design, construction, manning, 
     or equipment standard on a foreign flagged vessel engaged in 
     innocent passage unless the prohibition implements a 
     generally accepted international rule or standard; and
       ``(ii) that relates to the prevention, reduction, and 
     control of pollution shall not apply to a foreign flagged 
     vessel engaged in transit passage unless the prohibition 
     implements an applicable international regulation regarding 
     the discharge of oil, oily waste, or any other noxious 
     substance into the waters.
       ``(8) Prohibition relating to vessels of the armed 
     forces.--After the effective date of the regulations 
     promulgated by the Secretary of Defense under paragraph (4), 
     it shall be unlawful for any vessel of the Armed Forces 
     subject to the regulations to--
       ``(A) operate in the navigable waters of the United States 
     or the waters of the contiguous zone, if the vessel is not 
     equipped with any required marine pollution control device 
     meeting standards established under this subsection; or
       ``(B) discharge overboard any discharge incidental to the 
     normal operation of a vessel in waters with respect to which 
     a prohibition on the discharge has been established under 
     paragraph (7).
       ``(9) Enforcement.--This subsection shall be enforceable, 
     as provided in subsections (j) and (k), against any agency of 
     the United States responsible for vessels of the Armed Forces 
     notwithstanding any immunity asserted by the agency.''.
       (c) Conforming Amendments.--
       (1) Definitions.--Section 312(a) of the Federal Water 
     Pollution Control Act (33 U.S.C. 1322(a)) is amended--
       (A) in paragraph (8)--
       (i) by striking ``or''; and 
     
[[Page H374]]

       (ii) by inserting ``or agency of the United States,'' after 
     ``association,'';
       (B) in paragraph (11), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(12) `discharge incidental to the normal operation of a 
     vessel'--
       ``(A) means a discharge, including--
       ``(i) graywater, bilge water, cooling water, weather deck 
     runoff, ballast water, oil water separator effluent, and any 
     other pollutant discharge from the operation of a marine 
     propulsion system, shipboard maneuvering system, crew 
     habitability system, or installed major equipment, such as an 
     aircraft carrier elevator or a catapult, or from a 
     protective, preservative, or absorptive application to the 
     hull of the vessel; and
       ``(ii) a discharge in connection with the testing, 
     maintenance, and repair of a system described in clause (i) 
     whenever the vessel is waterborne; and
       ``(B) does not include--
       ``(i) a discharge of rubbish, trash, garbage, or other such 
     material discharged overboard;
       ``(ii) an air emission resulting from the operation of a 
     vessel propulsion system, motor driven equipment, or 
     incinerator; or
       ``(iii) a discharge that is not covered by part 122.3 of 
     title 40, Code of Federal Regulations (as in effect on the 
     date of the enactment of subsection (n));
       ``(13) `marine pollution control device' means any 
     equipment or management practice, for installation or use on 
     board a vessel of the Armed Forces, that is--
       ``(A) designed to receive, retain, treat, control, or 
     discharge a discharge incidental to the normal operation of a 
     vessel; and
       ``(B) determined by the Administrator and the Secretary of 
     Defense to be the most effective equipment or management 
     practice to reduce the environmental impacts of the discharge 
     consistent with the considerations set forth in subsection 
     (n)(2)(B); and
       ``(14) `vessel of the Armed Forces' means--
       ``(A) any vessel owned or operated by the Department of 
     Defense, other than a time or voyage chartered vessel; and
       ``(B) any vessel owned or operated by the Department of 
     Transportation that is designated by the Secretary of the 
     department in which the Coast Guard is operating as a vessel 
     equivalent to a vessel described in subparagraph (A).''.
       (2) Enforcement.--The first sentence of section 312(j) of 
     the Federal Water Pollution Control Act (33 U.S.C. 1322(j)) 
     is amended--
       (A) by striking ``of this section or'' and inserting a 
     comma; and
       (B) by striking ``of this section shall'' and inserting ``, 
     or subsection (n)(8) shall''.
       (3) Other definitions.--Subparagraph (A) of the second 
     sentence of section 502(6) of the Federal Water Pollution 
     Control Act (33 U.S.C. 1362(6)) is amended by striking `` 
     `sewage from vessels' '' and inserting `` `sewage from 
     vessels or a discharge incidental to the normal operation of 
     a vessel of the Armed Forces' ''.
       (d) Cooperation in Standards Development.--The 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Defense may, by mutual agreement, with or 
     without reimbursement, provide for the use of information, 
     reports, personnel, or other resources of the Environmental 
     Protection Agency or the Department of Defense to carry out 
     section 312(n) of the Federal Water Pollution Control Act (as 
     added by subsection (b)), including the use of the 
     resources--
       (1) to determine--
       (A) the nature and environmental effect of discharges 
     incidental to the normal operation of a vessel of the Armed 
     Forces;
       (B) the practicability of using marine pollution control 
     devices on vessels of the Armed Forces; and
       (C) the effect that installation or use of marine pollution 
     control devices on vessels of the Armed Forces would have on 
     the operation or operational capability of the vessels; and
       (2) to establish performance standards for marine pollution 
     control devices on vessels of the Armed Forces.
  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

     SEC. 331. OPERATION OF COMMISSARY SYSTEM.

       (a) Cooperation With Other Entities.--Section 2482 of title 
     10, United States Code, is amended--
       (1) in the section heading, by striking out ``private'';
       (2) by inserting ``(a) Private Operation.--'' before 
     ``Private persons''; and
       (3) by adding at the end the following new subsection:
       ``(b) Contracts With Other Agencies and 
     Instrumentalities.--(1) The Defense Commissary Agency, and 
     any other agency of the Department of Defense that supports 
     the operation of the commissary system, may enter into a 
     contract or other agreement with another department, agency, 
     or instrumentality of the Department of Defense or another 
     Federal agency to provide services beneficial to the 
     efficient management and operation of the commissary system.
       ``(2) A commissary store operated by a nonappropriated fund 
     instrumentality of the Department of Defense shall be 
     operated in accordance with section 2484 of this title. 
     Subject to such section, the Secretary of Defense may 
     authorize a transfer of goods, supplies, and facilities of, 
     and funds appropriated for, the Defense Commissary Agency or 
     any other agency of the Department of Defense that supports 
     the operation of the commissary system to a nonappropriated 
     fund instrumentality for the operation of a commissary 
     store.''.
       (b) Clerical Amendment.--The item relating to such section 
     in the table of sections at the beginning of chapter 147 of 
     such title is amended to read as follows:

``2482. Commissary stores: operation.''.

     SEC. 332. LIMITED RELEASE OF COMMISSARY STORES SALES 
                   INFORMATION TO MANUFACTURERS, DISTRIBUTORS, AND 
                   OTHER VENDORS DOING BUSINESS WITH DEFENSE 
                   COMMISSARY AGENCY.

       Section 2487(b) of title 10, United States Code, is amended 
     in the second sentence by inserting before the period the 
     following: ``unless the agreement is between the Defense 
     Commissary Agency and a manufacturer, distributor, or other 
     vendor doing business with the Agency and is restricted to 
     information directly related to  merchandise  provided  by  
     that  manufacturer,  distributor,  or vendor''.

     SEC. 333. ECONOMICAL DISTRIBUTION OF DISTILLED SPIRITS BY 
                   NONAPPROPRIATED FUND INSTRUMENTALITIES.

       (a) Economical Distribution.--Subsection (a)(1) of section 
     2488 of title 10, United States Code, is amended by inserting 
     after ``most competitive source'' the following: ``and 
     distributed in the most economical manner''.
       (b) Determination of Most Economical Distribution Method.--
     Such section is further amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c)(1) In the case of covered alcoholic beverage 
     purchases of distilled spirits, to determine whether a 
     nonappropriated fund instrumentality of the Department of 
     Defense provides the most economical method of distribution 
     to package stores, the Secretary of Defense shall consider 
     all components of the distribution costs incurred by the 
     nonappropriated fund instrumentality, such as overhead costs 
     (including costs associated with management, logistics, 
     administration, depreciation, and utilities), the costs of 
     carrying inventory, and handling and distribution costs.
       ``(2) If the use of a private distributor would subject 
     covered alcoholic beverage purchases of distilled spirits to 
     direct or indirect State taxation, a nonappropriated fund 
     instrumentality shall be considered to be the most economical 
     method of distribution regardless of the results of the 
     determination under paragraph (1).
       ``(3) The Secretary shall use the agencies performing audit 
     functions on behalf of the armed forces and the Inspector 
     General of the Department of Defense to make determinations 
     under this subsection.''.

     SEC. 334. TRANSPORTATION BY COMMISSARIES AND EXCHANGES TO 
                   OVERSEAS LOCATIONS.

       (a) In General.--Chapter 157 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2643. Commissary and exchange services: transportation 
       overseas

       ``The Secretary of Defense shall authorize the officials 
     responsible for operation of commissaries and military 
     exchanges to negotiate directly with private carriers for the 
     most cost-effective transportation of commissary and exchange 
     supplies by sea without relying on the Military Sealift 
     Command or the Military Traffic Management Command. Section 
     2631 of this title, regarding the preference for vessels of 
     the United States or belonging to the United States in the 
     transportation of supplies by sea, shall apply to the 
     negotiation of transportation contracts under the authority 
     of this section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2643. Commissary and exchange services: transportation overseas.''.

     SEC. 335. DEMONSTRATION PROJECT FOR UNIFORM FUNDING OF 
                   MORALE, WELFARE, AND RECREATION ACTIVITIES AT 
                   CERTAIN MILITARY INSTALLATIONS.

       (a) Demonstration Project Required.--(1) The Secretary of 
     Defense shall conduct a demonstration project to evaluate the 
     feasibility of using only nonappropriated funds to support 
     morale, welfare, and recreation programs at military 
     installations in order to facilitate the procurement of 
     property and services for those programs and the management 
     of employees used to carry out those programs.
       (2) Under the demonstration project--
       (A) procurements of property and services for programs 
     referred to in paragraph (1) may be carried out in accordance 
     with laws and regulations applicable to procurements paid for 
     with nonappropriated funds; and
       (B) appropriated funds available for such programs may be 
     expended in accordance with laws applicable to expenditures 
     of nonappropriated funds as if the appropriated funds were 
     nonappropriated funds.
       (3) The Secretary shall prescribe regulations to carry out 
     paragraph (2). The regulations shall provide for financial 
     management and accounting of appropriated funds expended in 
     accordance with subparagraph (B) of such paragraph.
       (b) Covered Military Installations.--The Secretary shall 
     select not less than 

[[Page H375]]
     three and not more than six military installations to participate in 
     the demonstration project.
       (c) Period of Demonstration Project.--The demonstration 
     project shall terminate not later than September 30, 1998.
       (d) Effect on Employees.--For the purpose of testing fiscal 
     accounting procedures, the Secretary may convert, for the 
     duration of the demonstration project, the status of an 
     employee who carries out a program referred to in subsection 
     (a)(1) from the status of an employee paid by appropriated 
     funds to the status of a nonappropriated fund instrumentality 
     employee, except that such conversion may occur only--
       (1) if the employee whose status is to be converted--
       (A) is fully informed of the effects of such conversion on 
     the terms and conditions of the employment of that employee 
     for purposes of title 5, United States Code, and on the 
     benefits provided to that employee under such title; and
       (B) consents to such conversion; or
       (2) in a manner which does not affect such terms and 
     conditions of employment or such benefits.
       (e) Reports.--(1) Not later than six months after the date 
     of the enactment of this Act, the Secretary shall submit to 
     Congress an interim report on the implementation of this 
     section.
       (2) Not later than December 31, 1998, the Secretary shall 
     submit to Congress a final report on the results of the 
     demonstration project. The report shall include a comparison 
     of--
       (A) the cost incurred under the demonstration project in 
     using employees paid by appropriated funds together with 
     nonappropriated fund instrumentality employees to carry out 
     the programs referred to in subsection (a)(1); and
       (B) an estimate of the cost that would have been incurred 
     if only nonappropriated fund instrumentality employees had 
     been used to carry out such programs.

     SEC. 336. OPERATION OF COMBINED EXCHANGE AND COMMISSARY 
                   STORES.

       (a) In General.--(1) Chapter 147 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2490a. Combined exchange and commissary stores

       ``(a) Authority.--The Secretary of Defense may authorize a 
     nonappropriated fund instrumentality to operate a military 
     exchange and a commissary store as a combined exchange and 
     commissary store on a military installation.
       ``(b) Limitations.--(1) Not more than ten combined exchange 
     and commissary stores may be operated pursuant to this 
     section.
       ``(2) The Secretary may select a military installation for 
     the operation of a combined exchange and commissary store 
     under this section only if--
       ``(A) the installation is to be closed, or has been or is 
     to be realigned, under a base closure law; or
       ``(B) a military exchange and a commissary store are 
     operated at the installation by separate entities at the time 
     of, or immediately before, such selection and it is not 
     economically feasible to continue that separate operation.
       ``(c) Operation at Carswell Field.--Combined exchange and 
     commissary stores operated under this section shall include 
     the combined exchange and commissary store that is operated 
     at the Naval Air Station Fort Worth, Joint Reserve Center, 
     Carswell Field, Texas, under the authority provided in 
     section 375 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2736).
       ``(d) Adjustments and Surcharges.--Adjustments to, and 
     surcharges on, the sales price of a grocery food item sold in 
     a combined exchange and commissary store under this section 
     shall be provided for in accordance with the same laws that 
     govern such adjustments and surcharges for items sold in a 
     commissary store of the Defense Commissary Agency.
       ``(e) Use of Appropriated Funds.--(1) If a nonappropriated 
     fund instrumentality incurs a loss in operating a combined 
     exchange and commissary store at a military installation 
     under this section as a result of the requirement set forth 
     in subsection (d), the Secretary may authorize a transfer of 
     funds available for the Defense Commissary Agency to the 
     nonappropriated fund instrumentality to offset the loss.
       ``(2) The total amount of appropriated funds transferred 
     during a fiscal year to support the operation of a combined 
     exchange and commissary store at a military installation 
     under this section may not exceed an amount that is equal to 
     25 percent of the amount of appropriated funds that was 
     provided for the operation of the commissary store of the 
     Defense Commissary Agency on that installation during the 
     last full fiscal year of operation of that commissary store.
       ``(f) Definitions.--In this section:
       ``(1) The term `nonappropriated fund instrumentality' means 
     the Army and Air Force Exchange Service, Navy Exchange 
     Service Command, Marine Corps exchanges, or any other 
     instrumentality of the United States under the jurisdiction 
     of the Armed Forces which is conducted for the comfort, 
     pleasure, contentment, or physical or mental improvement of 
     members of the Armed Forces.
       ``(2) The term `base closure law' has the meaning given 
     such term by section 2667(g) of this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2490a. Combined exchange and commissary stores.''.

       (b) Conforming Amendment.--Section 375 of the National 
     Defense Authorization Act for Fiscal Year 1995 (Public Law 
     103-337; 108 Stat. 2736) is amended by striking out ``, until 
     December 31, 1995,''.

     SEC. 337. DEFERRED PAYMENT PROGRAMS OF MILITARY EXCHANGES.

       (a) Use of Commercial Banking Institution.--(1) As soon as 
     practicable after the date of the enactment of this Act, the 
     Secretary of Defense shall seek to enter into an agreement 
     with a commercial banking institution under which the 
     institution agrees to finance and operate the deferred 
     payment program of the Army and Air Force Exchange Service 
     and the deferred payment program of the Navy Exchange Service 
     Command. The Secretary shall use competitive procedures to 
     enter into an agreement under this paragraph.
       (2) In order to facilitate the transition of the operation 
     of the programs referred to in paragraph (1) to commercial 
     operation under an agreement described in that paragraph, the 
     Secretary may initially limit the scope of any such agreement 
     so as to apply to only one of the programs.
       (b) Report.--Not later than December 31, 1995, the 
     Secretary shall submit to Congress a report on the 
     implementation of this section. The report shall also include 
     an analysis of the impact of the deferred payment programs 
     referred to in subsection (a)(1), including the impact of the 
     default and collection procedures under such programs, on 
     members of the Armed Forces and their families.

     SEC. 338. AVAILABILITY OF FUNDS TO OFFSET EXPENSES INCURRED 
                   BY ARMY AND AIR FORCE EXCHANGE SERVICE ON 
                   ACCOUNT OF TROOP REDUCTIONS IN EUROPE.

       Of funds authorized to be appropriated under section 
     301(5), not less than $70,000,000 shall be available to the 
     Secretary of Defense for transfer to the Army and Air Force 
     Exchange Service to offset expenses incurred by the Army and 
     Air Force Exchange Service on account of reductions in the 
     number of members of the United States Armed Forces assigned 
     to permanent duty ashore in Europe.

     SEC. 339. STUDY REGARDING IMPROVING EFFICIENCIES IN OPERATION 
                   OF MILITARY EXCHANGES AND OTHER MORALE, 
                   WELFARE, AND RECREATION ACTIVITIES AND 
                   COMMISSARY STORES.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study regarding the manner in which greater efficiencies 
     can be achieved in the operation of--
       (1) military exchanges;
       (2) other instrumentalities of the United States under the 
     jurisdiction of the Armed Forces which are conducted for the 
     comfort, pleasure, contentment, or physical or mental 
     improvement of members of the Armed Forces; and
       (3) commissary stores.
       (b) Report of Study.--Not later than March 1, 1996, the 
     Secretary of Defense shall submit to Congress a report 
     describing the results of the study and containing such 
     recommendations as the Secretary considers appropriate to 
     implement options identified in the study to achieve the 
     greater efficiencies referred to in subsection (a).

     SEC. 340. REPEAL OF REQUIREMENT TO CONVERT SHIPS' STORES TO 
                   NONAPPROPRIATED FUND INSTRUMENTALITIES.

       (a) Repeal.--Section 371 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     10 U.S.C. 7604 note) is amended--
       (1) by striking out subsections (a) and (b); and
       (2) by redesignating subsections (c) and (d) as subsections 
     (a) and (b), respectively.
       (b) Inspector General Review.--Not later than April 1, 
     1996, the Inspector General of the Department of Defense 
     shall submit to Congress a report that reviews the report on 
     the costs and benefits of converting to operation of Navy 
     ships' stores by nonappropriated fund instrumentalities that 
     the Navy Audit Agency prepared in connection with the 
     postponement of the deadline for the conversion provided for 
     in section 374(a) of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2736).

     SEC. 341. DISPOSITION OF EXCESS MORALE, WELFARE, AND 
                   RECREATION FUNDS.

       Section 2219 of title 10, United States Code, is amended--
       (1) in the first sentence, by striking out ``a military 
     department'' and inserting in lieu thereof ``an armed 
     force'';
       (2) in the second sentence--
       (A) by striking out ``, department-wide''; and
       (B) by striking out ``of the military department'' and 
     inserting in lieu thereof ``for that armed force''; and
       (3) by adding at the end the following: ``This section does 
     not apply to the Coast Guard.''.

     SEC. 342. CLARIFICATION OF ENTITLEMENT TO USE OF MORALE, 
                   WELFARE, AND RECREATION FACILITIES BY MEMBERS 
                   OF RESERVE COMPONENTS AND DEPENDENTS.

       (a) In General.--Section 1065 of title 10, United States 
     Code, is amended to read as follows:
     
[[Page H376]]


     ``Sec. 1065. Morale, welfare, and recreation retail 
       facilities: use by members of reserve components and 
       dependents

       ``(a) Members of the Selected Reserve.--A member of the 
     Selected Reserve in good standing (as determined by the 
     Secretary concerned) shall be permitted to use MWR retail 
     facilities on the same basis as members on active duty.
       ``(b) Members of Ready Reserve Not in Selected Reserve.--
     Subject to such regulations as the Secretary of Defense may 
     prescribe, a member of the Ready Reserve (other than members 
     of the Selected Reserve) may be permitted to use MWR retail 
     facilities on the same basis as members serving on active 
     duty.
       ``(c) Reserve Retirees Under Age 60.--A member or former 
     member of a reserve component under 60 years of age who, but 
     for age, would be eligible for retired pay under chapter 1223 
     of this title shall be permitted to use MWR retail facilities 
     on the same basis as members of the armed forces entitled to 
     retired pay under any other provision of law.
       ``(d) Dependents.--(1) Dependents of a member who is 
     permitted under subsection (a) or (b) to use MWR retail 
     facilities shall be permitted to use such facilities on the 
     same basis as dependents of members on active duty.
       ``(2) Dependents of a member who is permitted under 
     subsection (c) to use MWR retail facilities shall be 
     permitted to use such facilities on the same basis as 
     dependents of members of the armed forces entitled to retired 
     pay under any other provision of law.
       ``(e) MWR Retail Facility Defined.--In this section, the 
     term `MWR retail facilities' means exchange stores and other 
     revenue-generating facilities operated by nonappropriated 
     fund activities of the Department of Defense for the morale, 
     welfare, and recreation of members of the armed forces.''.
       (b) Clerical Amendment.--The item relating to such section 
     in the table of sections at the beginning of chapter 54 of 
     such title is amended to read as follows:

``1065. Morale, welfare, and recreation retail facilities: use by 
              members of reserve components and dependents.''.
     Subtitle E--Performance of Functions by Private-Sector Sources

     SEC. 351. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION 
                   SERVICES.

       (a) Requirement for Competitive Procurement.--Except as 
     provided in subsection (b), the Secretary of Defense shall, 
     during fiscal year 1996 and consistent with the requirements 
     of title 44, United States Code, competitively procure 
     printing and duplication services from private-sector sources 
     for the performance of at least 70 percent of the total 
     printing and duplication requirements of the Defense Printing 
     Service.
       (b) Exception for Classified Information.--The requirement 
     of subsection (a) shall not apply to the procurement of 
     services for printing and duplicating classified documents 
     and information.

     SEC. 352. DIRECT VENDOR DELIVERY SYSTEM FOR CONSUMABLE 
                   INVENTORY ITEMS OF DEPARTMENT OF DEFENSE.

       (a) Implementation of Direct Vendor Delivery System.--Not 
     later than September 30, 1997, the Secretary of Defense 
     shall, to the maximum extent practicable, implement a system 
     under which consumable inventory items referred to in 
     subsection (b) are delivered to military installations 
     throughout the United States directly by the vendors of those 
     items. The purpose for implementing the system is to reduce 
     the expense and necessity of maintaining extensive warehouses 
     for those items within the Department of Defense.
       (b) Covered Items.--The items referred to in subsection (a) 
     are the following:
       (1) Food and clothing.
       (2) Medical and pharmaceutical supplies.
       (3) Automotive, electrical, fuel, and construction 
     supplies.
       (4) Other consumable inventory items the Secretary 
     considers appropriate.

     SEC. 353. PAYROLL, FINANCE, AND ACCOUNTING FUNCTIONS OF THE 
                   DEPARTMENT OF DEFENSE.

       (a) Plan for Private Operation of Certain Functions.--(1) 
     Not later than October 1, 1996, the Secretary of Defense 
     shall submit to Congress a plan for the performance by 
     private-sector sources of payroll functions for civilian 
     employees of the Department of Defense other than employees 
     paid from nonappropriated funds.
       (2)(A) The Secretary shall implement the plan referred to 
     in paragraph (1) if the Secretary determines that the cost of 
     performance by private-sector sources of the functions 
     referred to in that paragraph does not exceed the cost of 
     performance of those functions by employees of the Federal 
     Government.
       (B) In computing the total cost of performance of such 
     functions by employees of the Federal Government, the 
     Secretary shall include the following:
       (i) Managerial and administrative costs.
       (ii) Personnel costs, including the cost of providing 
     retirement benefits for such personnel.
       (iii) Costs associated with the provision of facilities and 
     other support by Federal agencies.
       (C) The Defense Contract Audit Agency shall verify the 
     costs computed for the Secretary under this paragraph by 
     others.
       (3) At the same time the Secretary submits the plan 
     required by paragraph (1), the Secretary shall submit to 
     Congress a report on other accounting and finance functions 
     of the Department that are appropriate for performance by 
     private-sector sources.
       (b) Pilot Program for Private Operation of NAFI 
     Functions.--(1) The Secretary shall carry out a pilot program 
     to test the performance by private-sector sources of payroll 
     and other accounting and finance functions of nonappropriated 
     fund instrumentalities and to evaluate the extent to which 
     cost savings and efficiencies would result from the 
     performance of such functions by those sources.
       (2) The payroll and other accounting and finance functions 
     designated by the Secretary for performance by private-sector 
     sources under the pilot program shall include at least one 
     major payroll, accounting, or finance function.
       (3) To carry out the pilot program, the Secretary shall 
     enter into discussions with private-sector sources for the 
     purpose of developing a request for proposals to be issued 
     for performance by those sources of functions designated by 
     the Secretary under paragraph (2). The discussions shall be 
     conducted on a schedule that accommodates issuance of a 
     request for proposals within 60 days after the date of the 
     enactment of this Act.
       (4) A goal of the pilot program is to reduce by at least 25 
     percent the total costs incurred by the Department annually 
     for the performance of a function referred to in paragraph 
     (2) through the performance of that function by a private-
     sector source.
       (5) Before conducting the pilot program, the Secretary 
     shall develop a plan for the program that addresses the 
     following:
       (A) The purposes of the program.
       (B) The methodology, duration, and anticipated costs of the 
     program, including the cost of an arrangement pursuant to 
     which a private-sector source would receive an agreed-upon 
     payment plus an additional negotiated amount not to exceed 50 
     percent of the dollar savings achieved in excess of the goal 
     specified in paragraph (4).
       (C) A specific citation to any provisions of law, rule, or 
     regulation that, if not waived, would prohibit the conduct of 
     the program or any part of the program.
       (D) A mechanism to evaluate the program.
       (E) A provision for all payroll, accounting, and finance 
     functions of nonappropriated fund instrumentalities of the 
     Department of Defense to be performed by private-
     sector sources, if determined advisable on the basis of a 
     final assessment of the results of the program.
       (6) The Secretary shall act through the Under Secretary of 
     Defense (Comptroller) in the performance of the Secretary's 
     responsibilities under this subsection.
       (c) Limitation on Opening of New Operating Locations for 
     Defense Finance and Accounting Service.--(1) Except as 
     provided in paragraph (2), the Secretary may not establish a 
     new operating location for the Defense Finance and Accounting 
     Service during fiscal year 1996.
       (2) The Secretary may establish a new operating location 
     for the Defense Finance and Accounting Service if--
       (A) for a new operating location that the Secretary planned 
     before the date of the enactment of this Act to establish on 
     or after that date, the Secretary reconsiders the need for 
     establishing that new operating location; and
       (B) for each new operating location, including a new 
     operating location referred to in subparagraph (A)--
       (i) the Secretary submits to Congress, as part of the 
     report required by subsection (a)(4), an analysis of the need 
     for establishing the new operating location; and
       (ii) a period of 30 days elapses after the Congress 
     receives the report.
       (3) In this subsection, the term ``new operating location'' 
     means an operating location that is not in operation on the 
     date of the enactment of this Act, except that such term does 
     not include an operating location for which, as of such 
     date--
       (A) the Secretary has established a date for the 
     commencement of operations; and
       (B) funds have been expended for the purpose of its 
     establishment.

     SEC. 354. DEMONSTRATION PROGRAM TO IDENTIFY OVERPAYMENTS MADE 
                   TO VENDORS.

       (a) In General.--The Secretary of Defense shall conduct a 
     demonstration program to evaluate the feasibility of using 
     private contractors to audit accounting and procurement 
     records of the Department of Defense in order to identify 
     overpayments made to vendors by the Department. The 
     demonstration program shall be conducted for the Defense 
     Logistics Agency and include the Defense Personnel Support 
     Center.
       (b) Program Requirements.--(1) Under the demonstration 
     program, the Secretary shall, by contract, provide for one or 
     more persons to audit the accounting and procurement records 
     of the Defense Logistics Agency that relate to (at least) 
     fiscal years 1993, 1994, and 1995. The Secretary may enter 
     into more than one contract under the program.
       (2) A contract under the demonstration program shall 
     require the contractor to use data processing techniques that 
     are generally used in audits of private-sector records 
     similar to the records audited under the contract.
       (c) Audit Requirements.--In conducting an audit under the 
     demonstration program, a contractor shall compare Department 
     of Defense purchase agreements (and related documents) with 
     invoices submitted by vendors 

[[Page H377]]
     under the purchase agreements. A purpose of the comparison is to 
     identify, in the case of each audited purchase agreement, the 
     following:
       (1) Any payments to the vendor for costs that are not 
     allowable under the terms of the purchase agreement or by 
     law.
       (2) Any amounts not deducted from the total amount paid to 
     the vendor under the purchase agreement that should have been 
     deducted from that amount on account of goods and services 
     provided to the vendor by the Department.
       (3) Duplicate payments.
       (4) Unauthorized charges.
       (5) Other discrepancies between the amount paid to the 
     vendor and the amount actually due the vendor under the 
     purchase agreement.
       (d) Bonus Payment.--To the extent provided for in a 
     contract under the demonstration program, the Secretary may 
     pay the contractor a bonus in addition to any other amount 
     paid for performance of the contract. The amount of such 
     bonus may not exceed the amount that is equal to 25 percent 
     of all amounts recovered by the United States on the basis of 
     information obtained as a result of the audit performed under 
     the contract. Any such bonus shall be paid out of amounts 
     made available pursuant to subsection (e).
       (e) Availability of Funds.--Of the amount authorized to be 
     appropriated pursuant to section 301(5), not more than 
     $5,000,000 shall be available for the demonstration program.

     SEC. 355. PILOT PROGRAM ON PRIVATE OPERATION OF DEFENSE 
                   DEPENDENTS' SCHOOLS.

       (a) Pilot Program.--The Secretary of Defense may conduct a 
     pilot program to evaluate the feasibility of using private 
     contractors to operate schools of the defense dependents' 
     education system established under section 1402(a) of the 
     Defense Dependents' Education Act of 1978 (20 U.S.C. 921(a)).
       (b) Selection of School for Program.--If the Secretary 
     conducts the pilot program, the Secretary shall select one 
     school of the defense dependents' education system for 
     participation in the program and provide for the operation of 
     the school by a private contractor for not less than one 
     complete school year.
       (c) Report.--Not later than 30 days after the end of the 
     first school year in which the pilot program is conducted, 
     the Secretary shall submit to Congress a report on the 
     results of the program. The report shall include the 
     recommendation of the Secretary with respect to the extent to 
     which other schools of the defense dependents' education 
     system should be operated by private contractors.

     SEC. 356. PROGRAM FOR IMPROVED TRAVEL PROCESS FOR THE 
                   DEPARTMENT OF DEFENSE.

       (a) In General.--(1) The Secretary of Defense shall conduct 
     a program to evaluate options to improve the Department of 
     Defense travel process. To carry out the program, the 
     Secretary shall compare the results of the tests conducted 
     under subsection (b) to determine which travel process tested 
     under such subsection is the better option to effectively 
     manage travel of Department personnel.
       (2) The program shall be conducted at not less than three 
     and not more than six military installations, except that an 
     installation may be the subject of only one test conducted 
     under the program.
       (3) The Secretary shall act through the Under Secretary of 
     Defense (Comptroller) in the performance of the Secretary's 
     responsibilities under this section.
       (b) Conduct of Tests.--(1) The Secretary shall conduct a 
     test at an installation referred to in subsection (a)(2) 
     under which the Secretary--
       (A) implements the changes proposed to be made with respect 
     to the Department of Defense travel process by the task force 
     on travel management that was established by the Secretary in 
     July 1994;
       (B) manages and uniformly applies that travel process 
     (including the implemented changes) throughout the 
     Department; and
       (C) provides opportunities for private-sector sources to 
     provide travel reservation services and credit card services 
     to facilitate that travel process.
       (2) The Secretary shall conduct a test at an installation 
     referred to in subsection (a)(2) under which the Secretary--
       (A) enters into one or more contracts with a private-sector 
     source pursuant to which the private-sector source manages 
     the Department of Defense travel process (except for 
     functions referred to in subparagraph (B)), provides for 
     responsive, reasonably priced services as part of the travel 
     process, and uniformly applies the travel process throughout 
     the Department; and
       (B) provides for the performance by employees of the 
     Department of only those travel functions, such as travel 
     authorization, that the Secretary considers to be necessary 
     to be performed by such employees.
       (3) Each test required by this subsection shall begin not 
     later than 60 days after the date of the enactment of this 
     Act and end two years after the date on which it began. Each 
     such test shall also be conducted in accordance with the 
     guidelines for travel management issued for the Department by 
     the Under Secretary of Defense (Comptroller).
       (c) Evaluation Criteria.--The Secretary shall establish 
     criteria to evaluate the travel processes tested under 
     subsection (b). The criteria shall, at a minimum, include the 
     extent to which a travel process provides for the following:
       (1) The coordination, at the time of a travel reservation, 
     of travel policy and cost estimates with the mission which 
     necessitates the travel.
       (2) The use of fully integrated travel solutions envisioned 
     by the travel reengineering report of the Department of 
     Defense dated January 1995.
       (3) The coordination of credit card data and travel 
     reservation data with cost estimate data.
       (4) The elimination of the need for multiple travel 
     approvals through the coordination of such data with proposed 
     travel plans.
       (5) A responsive and flexible management information system 
     that enables the Under Secretary of Defense (Comptroller) to 
     monitor travel expenses throughout the year, accurately plan 
     travel budgets for future years, and assess, in the case of 
     travel of an employee on temporary duty, the relationship 
     between the cost of the travel and the value of the travel to 
     the accomplishment of the mission which necessitates the 
     travel.
       (d) Plan for Program.--Before conducting the program, the 
     Secretary shall develop a plan for the program that addresses 
     the following:
       (1) The purposes of the program, including the achievement 
     of an objective of reducing by at least 50 percent the total 
     cost incurred by the Department annually to manage the 
     Department of Defense travel process.
       (2) The methodology and anticipated cost of the program, 
     including the cost of an arrangement pursuant to which a 
     private-sector source would receive an agreed-upon payment 
     plus an additional negotiated amount that does not exceed 50 
     percent of the total amount saved in excess of the objective 
     specified in paragraph (1).
       (3) A specific citation to any provision or law, rule, or 
     regulation that, if not waived, would prohibit the conduct of 
     the program or any part of the program.
       (4) The evaluation criteria established pursuant to 
     subsection (c).
       (5) A provision for implementing throughout the Department 
     the travel process determined to be the better option to 
     effectively manage travel of Department personnel on the 
     basis of a final assessment of the results of the program.
       (e) Report.--After the first full year of the conduct of 
     the tests required by subsection (b), the Secretary shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives a report on the implementation of the 
     program. The report shall include an analysis of the 
     evaluation criteria established pursuant to subsection (c).

     SEC. 357. INCREASED RELIANCE ON PRIVATE-SECTOR SOURCES FOR 
                   COMMERCIAL PRODUCTS AND SERVICES.

       (a) In General.--The Secretary of Defense shall endeavor to 
     carry out through a private-sector source any activity to 
     provide a commercial product or service for the Department of 
     Defense if--
       (1) the product or service can be provided adequately 
     through such a source; and
       (2) an adequate competitive environment exists to provide 
     for economical performance of the activity by such a source.
       (b) Applicability.--(1) Subsection (a) shall not apply to 
     any commercial product or service with respect to which the 
     Secretary determines that production, manufacture, or 
     provision of that product or service by the Government is 
     necessary for reasons of national security.
       (2) A determination under paragraph (1) shall be made in 
     accordance with regulations prescribed under subsection (c).
       (c) Regulations.--The Secretary shall prescribe regulations 
     to carry out this section. Such regulations shall be 
     prescribed in consultation with the Director of the Office of 
     Management and Budget.
       (d) Report.--(1) The Secretary shall identify activities of 
     the Department (other than activities specified by the 
     Secretary pursuant to subsection (b)) that are carried out by 
     employees of the Department to provide commercial-type 
     products or services for the Department.
       (2) Not later than April 15, 1996, the Secretary shall 
     transmit to the congressional defense committees a report on 
     opportunities for increased use of private-sector sources to 
     provide commercial products and services for the Department.
       (3) The report required by paragraph (2) shall include the 
     following:
       (A) A list of activities identified under paragraph (1) 
     indicating, for each activity, whether the Secretary proposes 
     to convert the performance of that activity to performance by 
     private-sector sources and, if not, the reasons why.
       (B) An assessment of the advantages and disadvantages of 
     using private-sector sources, rather than employees of the 
     Department, to provide commercial products and services for 
     the Department that are not essential to the warfighting 
     mission of the Armed Forces.
       (C) A specification of all legislative and regulatory 
     impediments to converting the performance of activities 
     identified under paragraph (1) to performance by private-
     sector sources.
       (D) The views of the Secretary on the desirability of 
     terminating the applicability of OMB Circular A-76 to the 
     Department.
       (4) The Secretary shall carry out paragraph (1) in 
     consultation with the Director of the Office of Management 
     and Budget and the Comptroller General of the United States. 
     In carrying out that paragraph, the Secretary shall consult 
     with, and seek the 

[[Page H378]]
     views of, representatives of the private sector, including 
     organizations representing small businesses.
        Subtitle F--Miscellaneous Reviews, Studies, and Reports

     SEC. 361. QUARTERLY READINESS REPORTS.

       (a) In General.--(1) Chapter 22 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 452. Quarterly readiness reports

       ``(a) Requirement.--Not later than 30 days after the end of 
     each calendar-year quarter, the Secretary of Defense shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives a report on military readiness. The report 
     for any quarter shall be based on assessments that are 
     provided during that quarter--
       ``(1) to any council, committee, or other body of the 
     Department of Defense (A) that has responsibility for 
     readiness oversight, and (B) the membership of which includes 
     at least one civilian officer in the Office of the Secretary 
     of Defense at the level of Assistant Secretary of Defense or 
     higher;
       ``(2) by senior civilian and military officers of the 
     military departments and the commanders of the unified and 
     specified commands; and
       ``(3) as part of any regularly established process of 
     periodic readiness reviews for the Department of Defense as a 
     whole.
       ``(b) Matters To Be Included.--Each such report shall--
       ``(1) specifically describe identified readiness problems 
     or deficiencies and planned remedial actions; and
       ``(2) include the key indicators and other relevant data 
     related to the identified problem or deficiency.
       ``(c) Classification of Reports.--Reports under this 
     section shall be submitted in unclassified form and may, as 
     the Secretary determines necessary, also be submitted in 
     classified form.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``452. Quarterly readiness reports.''.

       (b) Effective Date.--Section 452 of title 10, United States 
     Code, as added by subsection (a), shall take effect with the 
     calendar-year quarter during which this Act is enacted.

     SEC. 362. RESTATEMENT OF REQUIREMENT FOR SEMIANNUAL REPORTS 
                   TO CONGRESS ON TRANSFERS FROM HIGH-PRIORITY 
                   READINESS APPROPRIATIONS.

       Section 361 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2732) is 
     amended to read as follows:

     ``SEC. 361. SEMIANNUAL REPORTS TO CONGRESS ON TRANSFERS FROM 
                   HIGH-PRIORITY READINESS APPROPRIATIONS.

       ``(a) Annual Reports.--During 1996 and 1997, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report on transfers during the preceding fiscal 
     year from funds available for each budget activity specified 
     in subsection (d) (hereinafter in this section referred to as 
     `covered budget activities'). The report each year shall be 
     submitted not later than the date in that year on which the 
     President submits the budget for the next fiscal year to 
     Congress pursuant to section 1105 of title 31, United States 
     Code.
       ``(b) Midyear Reports.--On May 1 of each year specified in 
     subsection (a), the Secretary of Defense shall submit to the 
     congressional defense committees a report providing the same 
     information, with respect to the first six months of the 
     fiscal year in which the report is submitted, that is 
     provided in reports under subsection (a) with respect to the 
     preceding fiscal year.
       ``(c) Matters To Be Included.--In each report under this 
     section, the Secretary shall include for each covered budget 
     activity the following:
       ``(1) A statement, for the period covered by the report, 
     of--
       ``(A) the total amount of transfers into funds available 
     for that activity;
       ``(B) the total amount of transfers from funds available 
     for that activity; and
       ``(C) the net amount of transfers into, or out of, funds 
     available for that activity.
       ``(2) A detailed explanation of the transfers into, and out 
     of, funds available for that activity during the period 
     covered by the report.
       ``(d) Covered Budget Activities.--The budget activities to 
     which this section applies are the following:
       ``(1) The budget activity groups (known as `subactivities') 
     within the Operating Forces budget activity of the annual 
     Operation and Maintenance, Army, appropriation that are 
     designated as follows:
       ``(A) Combat Units.
       ``(B) Tactical Support.
       ``(C) Force-Related Training/Special Activities.
       ``(D) Depot Maintenance.
       ``(E) JCS Exercises.
       ``(2) The budget activity groups (known as `subactivities') 
     within the Operating Forces budget activity of the annual 
     Operation and Maintenance, Navy, appropriation that are 
     designated as follows:
       ``(A) Mission and Other Flight Operations.
       ``(B) Mission and Other Ship Operations.
       ``(C) Fleet Air Training.
       ``(D) Ship Operational Support and Training.
       ``(E) Aircraft Depot Maintenance.
       ``(F) Ship Depot Maintenance.
       ``(3) The budget activity groups (known as 
     `subactivities'), or other activity, within the Operating 
     Forces budget activity of the annual Operation and 
     Maintenance, Air Force, appropriation that are designated or 
     otherwise identified as follows:
       ``(A) Primary Combat Forces.
       ``(B) Primary Combat Weapons.
       ``(C) Global and Early Warning.
       ``(D) Air Operations Training.
       ``(E) Depot Maintenance.
       ``(F) JCS Exercises.''.

     SEC. 363. REPORT REGARDING REDUCTION OF COSTS ASSOCIATED WITH 
                   CONTRACT MANAGEMENT OVERSIGHT.

       (a) Report Required.--Not later than April 1, 1996, the 
     Comptroller General of the United States shall submit to 
     Congress a report identifying methods to reduce the cost to 
     the Department of Defense of management oversight of 
     contracts in connection with major defense acquisition 
     programs.
       (b) Major Defense Acquisition Programs Defined.--For 
     purposes of this section, the term ``major defense 
     acquisition program'' has the meaning given that term in 
     section 2430(a) of title 10, United States Code.

     SEC. 364. REVIEWS OF MANAGEMENT OF INVENTORY CONTROL POINTS 
                   AND MATERIEL MANAGEMENT STANDARD SYSTEM.

       (a) Review of Consolidation of Inventory Control Points.--
     (1) The Secretary of Defense shall conduct a review of the 
     management by the Defense Logistics Agency of all inventory 
     control points of the Department of Defense. In conducting 
     the review, the Secretary shall examine the management and 
     acquisition practices of the Defense Logistics Agency for 
     inventory of repairable spare parts.
       (2) Not later than March 31, 1996, the Secretary shall 
     submit to the Comptroller General of the United States and 
     the congressional defense committees a report on the results 
     the review conducted under paragraph (1).
       (b) Review of Materiel Management Standard System.--(1) The 
     Comptroller General of the United States shall conduct a 
     review of the automated data processing system of the 
     Department of Defense known as the Materiel Management 
     Standard System.
       (2) Not later than May 1, 1996, the Comptroller General 
     shall submit to the congressional defense committees a report 
     on the results of the review conducted under paragraph (1).

     3SEC. 365. REPORT ON PRIVATE PERFORMANCE OF CERTAIN FUNCTIONS 
                   PERFORMED BY MILITARY AIRCRAFT.

       (a) Report Required.--Not later than May 1, 1996, the 
     Secretary of Defense shall submit to Congress a report on the 
     feasibility of providing for the performance by private-
     sector sources of functions necessary to be performed to 
     fulfill the requirements of the Department of Defense for air 
     transportation of personnel and cargo.
       (b) Content of Report.--The report shall include the 
     following:
       (1) A cost-benefit analysis with respect to the performance 
     by private-sector sources of functions described in 
     subsection (a), including an explanation of the assumptions 
     used in the cost-benefit analysis.
       (2) An assessment of the issues raised by providing for 
     such performance by means of a contract entered into with a 
     private-sector source.
       (3) An assessment of the issues raised by providing for 
     such performance by means of converting functions described 
     in subsection (a) to private ownership and operation, in 
     whole or in part.
       (4) A discussion of the requirements for the performance of 
     such functions in order to fulfill the requirements referred 
     to in subsection (a) during wartime.
       (5) The effect on military personnel and facilities of 
     using private-sector sources to fulfill the requirements 
     referred to in such subsection.
       (6) The performance by private-sector sources of any other 
     military aircraft functions (such as non-combat inflight 
     fueling of aircraft) the Secretary considers appropriate.

     SEC. 366. STRATEGY AND REPORT ON AUTOMATED INFORMATION 
                   SYSTEMS OF DEPARTMENT OF DEFENSE.

       (a) Development of Strategy.--The Secretary of Defense 
     shall develop a strategy for the development or modernization 
     of automated information systems for the Department of 
     Defense.
       (b) Matters to Consider.--In developing the strategy 
     required under subsection (a), the Secretary shall consider 
     the following:
       (1) The use of performance measures and management 
     controls.
       (2) Findings of the Functional Management Review conducted 
     by the Secretary.
       (3) Program management actions planned by the Secretary.
       (4) Actions and milestones necessary for completion of 
     functional and economic analyses for--
       (A) the Automated System for Transportation data;
       (B) continuous acquisition and life cycle support;
       (C) electronic data interchange;
       (D) flexible computer integrated manufacturing;
       (E) the Navy Tactical Command Support System; and
       (F) the Defense Information System Network.
       (5) Progress made by the Secretary in resolving problems 
     with respect to the Defense 

[[Page H379]]
     Information System Network and the Joint Computer-Aided Acquisition and 
     Logistics Support System.
       (6) Tasks identified in the review conducted by the 
     Secretary of the Standard Installation/Division Personnel 
     System-3.
       (7) Such other matters as the Secretary considers 
     appropriate.
       (c) Report on Strategy.--(1) Not later than April 15, 1996, 
     the Secretary shall submit to Congress a report on the 
     development of the strategy required under subsection (a).
       (2) In the case of the Air Force Wargaming Center, the Air 
     Force Command Exercise System, the Cheyenne Mountain Upgrade, 
     the Transportation Coordinator Automated Command and Control 
     Information Systems, and the Wing Command and Control 
     Systems, the report required by paragraph (1) shall provide 
     functional economic analyses and address waivers exercised 
     for compelling military importance under section 381(d) of 
     the National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 2739).
       (3) The report required by paragraph (1) shall also include 
     the following:
       (A) A certification by the Secretary of the termination of 
     the Personnel Electronic Record Management System or a 
     justification for the continued need for such system.
       (B) Findings of the Functional Management Review conducted 
     by the Secretary and program management actions planned by 
     the Secretary for--
       (i) the Base Level System Modernization and the Sustaining 
     Base Information System; and
       (ii) the Standard Installation/Division Personnel System-3.
       (C) An assessment of the implementation of migration 
     systems and applications, including--
       (i) identification of the systems and applications by 
     functional or business area, specifying target dates for 
     operation of the systems and applications;
       (ii) identification of the legacy systems and applications 
     that will be terminated;
       (iii) the cost of and schedules for implementing the 
     migration systems and applications; and
       (iv) termination schedules.
       (D) A certification by the Secretary that each information 
     system that is subject to review by the Major Automated 
     Information System Review Committee of the Department is 
     cost-effective and supports the corporate information 
     management goals of the Department, including the results of 
     the review conducted for each such system by the Committee.
                       Subtitle G--Other Matters

     SEC. 371. CODIFICATION OF DEFENSE BUSINESS OPERATIONS FUND.

       (a) Management of Working-Capital Funds.--(1) Chapter 131 
     of title 10, United States Code, is amended by inserting 
     after section 2215 the following new section:

     ``Sec. 2216. Defense Business Operations Fund

       ``(a) Management of Working-Capital Funds and Certain 
     Activities.--The Secretary of Defense may manage the 
     performance of the working-capital funds and industrial, 
     commercial, and support type activities described in 
     subsection (b) through the fund known as the Defense Business 
     Operations Fund, which is established on the books of the 
     Treasury. Except for the funds and activities specified in 
     subsection (b), no other functions, activities, funds, or 
     accounts of the Department of Defense may be managed or 
     converted to management through the Fund.
       ``(b) Funds and Activities Included.--The funds and 
     activities referred to in subsection (a) are the following:
       ``(1) Working-capital funds established under section 2208 
     of this title and in existence on December 5, 1991.
       ``(2) Those activities that, on December 5, 1991, were 
     funded through the use of a working-capital fund established 
     under that section.
       ``(3) The Defense Finance and Accounting Service.
       ``(4) The Defense Commissary Agency.
       ``(5) The Defense Reutilization and Marketing Service.
       ``(6) The Joint Logistics Systems Center.
       ``(c) Separate Accounting, Reporting, and Auditing of Funds 
     and Activities.--(1) The Secretary of Defense shall provide 
     in accordance with this subsection for separate accounting, 
     reporting, and auditing of funds and activities managed 
     through the Fund.
       ``(2) The Secretary shall maintain the separate identity of 
     each fund and activity managed through the Fund that (before 
     the establishment of the Fund) was managed as a separate Fund 
     or activity.
       ``(3) The Secretary shall maintain separate records for 
     each function for which payment is made through the Fund and 
     which (before the establishment of the Fund) was paid 
     directly through appropriations, including the separate 
     identity of the appropriation account used to pay for the 
     performance of the function.
       ``(d) Charges for Goods and Services Provided Through the 
     Fund.--(1) Charges for goods and services provided through 
     the Fund shall include the following:
       ``(A) Amounts necessary to recover the full costs of the 
     goods and services, whenever practicable, and the costs of 
     the development, implementation, operation, and maintenance 
     of systems supporting the wholesale supply and maintenance 
     activities of the Department of Defense.
       ``(B) Amounts for depreciation of capital assets, set in 
     accordance with generally accepted accounting principles.
       ``(C) Amounts necessary to recover the full cost of the 
     operation of the Defense Finance Accounting Service.
       ``(2) Charges for goods and services provided through the 
     Fund may not include the following:
       ``(A) Amounts necessary to recover the costs of a military 
     construction project (as defined in section 2801(b) of this 
     title), other than a minor construction project financed by 
     the Fund pursuant to section 2805(c)(1) of this title.
       ``(B) Amounts necessary to cover costs incurred in 
     connection with the closure or realignment of a military 
     installation.
       ``(C) Amounts necessary to recover the costs of functions 
     designated by the Secretary of Defense as mission critical, 
     such as ammunition handling safety, and amounts for ancillary 
     tasks not directly related to the mission of the function or 
     activity managed through the Fund.
       ``(3)(A) The Secretary of Defense may submit to a customer 
     a bill for the provision of goods and services through the 
     Fund in advance of the provision of those goods and services.
       ``(B) The Secretary shall submit to Congress a report on 
     advance billings made pursuant to subparagraph (A)--
       ``(i) when the aggregate amount of all such billings after 
     the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 1996 reaches $100,000,000; 
     and
       ``(ii) whenever the aggregate amount of all such billings 
     after the date of a preceding report under this subparagraph 
     reaches $100,000,000.
       ``(C) Each report under subparagraph (B) shall include, for 
     each such advance billing, the following:
       ``(i) An explanation of the reason for the advance billing.
       ``(ii) An analysis of the impact of the advance billing on 
     readiness.
       ``(iii) An analysis of the impact of the advance billing on 
     the customer so billed.
       ``(e) Capital Asset Subaccount.--(1) Amounts charged for 
     depreciation of capital assets pursuant to subsection 
     (d)(1)(B) shall be credited to a separate capital asset 
     subaccount established within the Fund.
       ``(2) The Secretary of Defense may award contracts for 
     capital assets of the Fund in advance of the availability of 
     funds in the subaccount.
       ``(f) Procedures For Accumulation of Funds.--The Secretary 
     of Defense shall establish billing procedures to ensure that 
     the balance in the Fund does not exceed the amount necessary 
     to provide for the working capital requirements of the Fund, 
     as determined by the Secretary.
       ``(g) Purchase From Other Sources.--The Secretary of 
     Defense or the Secretary of a military department may 
     purchase goods and services that are available for purchase 
     from the Fund from a source other than the Fund if the 
     Secretary determines that such source offers a more 
     competitive rate for the goods and services than the Fund 
     offers.
       ``(h) Annual Reports and Budget.--The Secretary of Defense 
     shall annually submit to Congress, at the same time that the 
     President submits the budget under section 1105 of title 31, 
     the following:
       ``(1) A detailed report that contains a statement of all 
     receipts and disbursements of the Fund (including such a 
     statement for each subaccount of the Fund) for the fiscal 
     year ending in the year preceding the year in which the 
     budget is submitted.
       ``(2) A detailed proposed budget for the operation of the 
     Fund for the fiscal year for which the budget is submitted.
       ``(3) A comparison of the amounts actually expended for the 
     operation of the Fund for the fiscal year referred to in 
     paragraph (1) with the amount proposed for the operation of 
     the Fund for that fiscal year in the President's budget.
       ``(4) A report on the capital asset subaccount of the Fund 
     that contains the following information:
       ``(A) The opening balance of the subaccount as of the 
     beginning of the fiscal year in which the report is 
     submitted.
       ``(B) The estimated amounts to be credited to the 
     subaccount in the fiscal year in which the report is 
     submitted.
       ``(C) The estimated amounts of outlays to be paid out of 
     the subaccount in the fiscal year in which the report is 
     submitted.
       ``(D) The estimated balance of the subaccount at the end of 
     the fiscal year in which the report is submitted.
       ``(E) A statement of how much of the estimated balance at 
     the end of the fiscal year in which the report is submitted 
     will be needed to pay outlays in the immediately following 
     fiscal year that are in excess of the amount to be credited 
     to the subaccount in the immediately following fiscal year.
       ``(i) Definitions.--In this section:
       ``(1) The term `capital assets' means the following capital 
     assets that have a development or acquisition cost of not 
     less than $50,000:
       ``(A) Minor construction projects financed by the Fund 
     pursuant to section 2805(c)(1) of this title.
       ``(B) Automatic data processing equipment, software.
       ``(C) Equipment other than equipment described in 
     subparagraph (B).
       ``(D) Other capital improvements.
       ``(2) The term `Fund' means the Defense Business Operations 
     Fund.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after 

[[Page H380]]
     the item relating to section 2215 the following new item:
``2216. Defense Business Operations Fund.''.

       (b) Conforming Repeals.--The following provisions of law 
     are hereby repealed:
       (1) Subsections (b), (c), (d), and (e) of section 311 of 
     the National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 10 U.S.C. 2208 note).
       (2) Subsections (a) and (b) of section 333 of the National 
     Defense Authorization Act for Fiscal Year 1994 (Public Law 
     103-160; 10 U.S.C. 2208 note).
       (3) Section 342 of the National Defense Authorization Act 
     for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 2208 
     note).
       (4) Section 316 of the National Defense Authorization Act 
     for Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 
     2208 note).
       (5) Section 8121 of the Department of Defense 
     Appropriations Act, 1992 (Public Law 102-172; 10 U.S.C. 2208 
     note).

     SEC. 372. CLARIFICATION OF SERVICES AND PROPERTY THAT MAY BE 
                   EXCHANGED TO BENEFIT THE HISTORICAL COLLECTION 
                   OF THE ARMED FORCES.

       Section 2572(b)(1) of title 10, United States Code, is 
     amended by striking out ``not needed by the armed forces'' 
     and all that follows through the end of the paragraph and 
     inserting in lieu thereof the following: ``not needed by the 
     armed forces for any of the following items or services if 
     such items or services directly benefit the historical 
     collection of the armed forces:
       ``(A) Similar items held by any individual, organization, 
     institution, agency, or nation.
       ``(B) Conservation supplies, equipment, facilities, or 
     systems.
       ``(C) Search, salvage, or transportation services.
       ``(D) Restoration, conservation, or preservation services.
       ``(E) Educational programs.''.

     SEC. 373. FINANCIAL MANAGEMENT TRAINING.

       (a) Limitation.--The Secretary of Defense may enter into a 
     capital lease for the establishment of a Department of 
     Defense financial management training center no earlier than 
     the date that is 30 days after the date on which the 
     Secretary of Defense submits to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives, in accordance with 
     subsection (b), a certification of the need for such a center 
     and a report on financial management training for Department 
     of Defense personnel.
       (b) Certification and Report.--(1) The certification and 
     report referred to in subsection (a) are the following:
       (A) Certification by the Secretary of the need for such a 
     center.
       (B) A report, submitted with the certification, on 
     financial management training for Department of Defense 
     personnel.
       (2) Any report under paragraph (1) shall contain the 
     following:
       (A) The Secretary's analysis of the requirements for 
     providing financial management training for employees of the 
     Department of Defense.
       (B) The alternatives considered by the Secretary for 
     meeting those requirements.
       (C) A detailed plan for meeting those requirements.
       (D) A financial analysis of the estimated short-term and 
     long-term costs of carrying out the plan.
       (3) If, upon completing the analysis referred to in 
     paragraph (2)(A) and after considering alternatives as 
     described in paragraph (2)(B), the Secretary determines to 
     meet the requirements for providing financial management 
     training for employees of the Department of Defense through 
     establishment of a financial management training center, the 
     Secretary--
       (A) shall make the determination of the location of the 
     center using a merit-based selection process; and
       (B) shall include in the report under paragraph (1) a 
     description of that merit-based selection process.

     SEC. 374. PERMANENT AUTHORITY FOR USE OF PROCEEDS FROM THE 
                   SALE OF CERTAIN LOST, ABANDONED, OR UNCLAIMED 
                   PROPERTY.

       (a) Permanent Authority.--Section 2575 of title 10 is 
     amended--
       (1) by striking out subsection (b) and inserting in lieu 
     thereof the following:
       ``(b)(1) In the case of lost, abandoned, or unclaimed 
     personal property found on a military installation, the 
     proceeds from the sale of the property under this section 
     shall be credited to the operation and maintenance account of 
     that installation and used--
       ``(A) to reimburse the installation for any costs incurred 
     by the installation to collect, transport, store, protect, or 
     sell the property; and
       ``(B) to the extent that the amount of the proceeds exceeds 
     the amount necessary for reimbursing all such costs, to 
     support morale, welfare, and recreation activities under the 
     jurisdiction of the armed forces that are conducted for the 
     comfort, pleasure, contentment, or physical or mental 
     improvement of members of the armed forces at such 
     installation.
       ``(2) The net proceeds from the sale of other property 
     under this section shall be covered into the Treasury as 
     miscellaneous receipts.''; and
       (2) by adding at the end the following:
       ``(d)(1) The owner (or heirs, next of kin, or legal 
     representative of the owner) of personal property the 
     proceeds of which are credited to a military installation 
     under subsection (b)(1) may file a claim with the Secretary 
     of Defense for the amount equal to the proceeds (less costs 
     referred to in subparagraph (A) of such subsection). Amounts 
     to pay the claim shall be drawn from the morale, welfare, and 
     recreation account for the installation that received the 
     proceeds.
       ``(2) The owner (or heirs, next of kin, or legal 
     representative of the owner) may file a claim with the 
     Comptroller General of the United States for proceeds covered 
     into the Treasury under subsection (b)(2).
       ``(3) Unless a claim is filed under this subsection within 
     5 years after the date of the disposal of the property to 
     which the claim relates, the claim may not be considered by a 
     court, the Secretary of Defense (in the case of a claim filed 
     under paragraph (1)), or the Comptroller General of the 
     United States (in the case of a claim filed under paragraph 
     (2)).''.
       (b) Repeal of Authority for Demonstration Program.--Section 
     343 of the National Defense Authorization Act for Fiscal 
     Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1343) is 
     repealed.

     SEC. 375. SALE OF MILITARY CLOTHING AND SUBSISTENCE AND OTHER 
                   SUPPLIES OF THE NAVY AND MARINE CORPS.

       (a) In General.--(1) Chapter 651 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 7606. Subsistence and other supplies: members of armed 
       forces; veterans; executive or military departments and 
       employees; prices

       ``(a)(1) The Secretary of the Navy shall procure and sell, 
     for cash or credit--
       ``(A) articles designated by the Secretary to members of 
     the Navy and Marine Corps; and
       ``(B) items of individual clothing and equipment to members 
     of the Navy and Marine Corps, under such restrictions as the 
     Secretary may prescribe.
       ``(2) An account of sales on credit shall be kept and the 
     amount due reported to the Secretary. Except for articles and 
     items acquired through the use of working capital funds under 
     section 2208 of this title, sales of articles shall be at 
     cost, and sales of individual clothing and equipment shall be 
     at average current prices, including overhead, as determined 
     by the Secretary.
       ``(b) The Secretary shall sell subsistence supplies to 
     members of other armed forces at the prices at which like 
     property is sold to members of the Navy and Marine Corps.
       ``(c) The Secretary may sell serviceable supplies, other 
     than subsistence supplies, to members of other armed forces 
     for the buyers' use in the service. The prices at which the 
     supplies are sold shall be the same prices at which like 
     property is sold to members of the Navy and Marine Corps.
       ``(d) A person who has been discharged honorably or under 
     honorable conditions from the Army, Navy, Air Force or Marine 
     Corps and who is receiving care and medical treatment from 
     the Public Health Service or the Department of Veterans 
     Affairs may buy subsistence supplies and other supplies, 
     except articles of uniform, at the prices at which like 
     property is sold to members of the Navy and Marine Corps.
       ``(e) Under such conditions as the Secretary may prescribe, 
     exterior articles of uniform may be sold to a person who has 
     been discharged honorably or under honorable conditions from 
     the Navy or Marine Corps, at the prices at which like 
     articles are sold to members of the Navy or Marine Corps. 
     This subsection does not modify sections 772 or 773 of this 
     title.
       ``(f) Under regulations prescribed by the Secretary, 
     payment for subsistence supplies shall be made in cash or by 
     commercial credit.
       ``(g)(1) The Secretary may provide for the procurement and 
     sale of stores designated by the Secretary to such civilian 
     officers and employees of the United States, and such other 
     persons, as the Secretary considers proper--
       ``(A) at military installations outside the United States; 
     and
       ``(B) subject to paragraph (2), at military installations 
     inside the United States where the Secretary determines that 
     it is impracticable for those civilian officers, employees, 
     and persons to obtain such stores from commercial enterprises 
     without impairing the efficient operation of military 
     activities.
       ``(2) Sales to civilian officers and employees inside the 
     United States may be made under paragraph (1) only to 
     civilian officers and employees residing within military 
     installations.
       ``(h) Appropriations for subsistence of the Navy or Marine 
     Corps may be applied to the purchase of subsistence supplies 
     for sale to members of the Navy and Marine Corps on active 
     duty for the use of such members and their families.''.
       (2) The table of sections at the beginning of chapter 651 
     of such title is amended by adding at the end the following:

``7606. Subsistence and other supplies: members of armed forces; 
              veterans; executive or military departments and 
              employees; prices.''.

       (b) Conforming Amendments for Other Armed Forces.--(1) 
     Section 4621 of such title is amended--
       (A) by striking out ``The branch, office, or officer 
     designated by the Secretary of the Army'' in subsection (a) 
     and inserting in lieu thereof ``The Secretary of the Army'';
       (B) by striking out ``The branch, office, or officer 
     designated by the Secretary'' both places it appears in 
     subsections (b) and (c) and inserting in lieu thereof ``The 
     Secretary''; and 
     
[[Page H381]]

       (C) by inserting before the period at the end of subsection 
     (f) the following: ``or by commercial credit''.
       (2) Section 9621 of such title is amended--
       (A) by striking out ``The Air Force shall'' in subsection 
     (b) and inserting in lieu thereof ``The Secretary shall''; 
     and
       (B) by inserting before the period at the end of subsection 
     (f) the following: ``or by commercial credit''.

     SEC. 376. PERSONNEL SERVICES AND LOGISTICAL SUPPORT FOR 
                   CERTAIN ACTIVITIES HELD ON MILITARY 
                   INSTALLATIONS.

       Section 2544 of title 10, United States Code, is amended--
       (1) by redesignating subsection (g) as subsection (h); and
       (2) by inserting after subsection (f) the following new 
     subsection:
       ``(g) In the case of a Boy Scout Jamboree held on a 
     military installation, the Secretary of Defense may provide 
     personnel services and logistical support at the military 
     installation in addition to the support authorized under 
     subsections (a) and (d).''.

     SEC. 377. RETENTION OF MONETARY AWARDS.

       (a) Monetary Awards.--Chapter 155 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 2610. Competitions for excellence: acceptance of 
       monetary awards

       ``(a) Acceptance Authorized.--The Secretary of Defense may 
     accept a monetary award given to the Department of Defense by 
     a nongovernmental entity as a result of the participation of 
     the Department in a competition carried out to recognize 
     excellence or innovation in providing services or 
     administering programs.
       ``(b) Disposition of Awards.--A monetary award accepted 
     under subsection (a) shall be credited to one or more 
     nonappropriated fund accounts supporting morale, welfare, and 
     recreation activities for the command, installation, or other 
     activity that is recognized for the award. Amounts so 
     credited may be expended only for such activities.
       ``(c) Incidental Expenses.--Subject to such limitations as 
     may be provided in appropriation Acts, appropriations 
     available to the Department of Defense may be used to pay 
     incidental expenses incurred by the Department to participate 
     in a competition described in subsection (a) or to accept a 
     monetary award under this section.
       ``(d) Regulations and Reporting.--(1) The Secretary shall 
     prescribe regulations to determine the disposition of 
     monetary awards accepted under this section and the payment 
     of incidental expenses under subsection (c).
       ``(2) At the end of each year, the Secretary shall submit 
     to Congress a report for that year describing the disposition 
     of monetary awards accepted under this section and the 
     payment of incidental expenses under subsection (c).
       ``(e) Termination.--The authority of the Secretary under 
     this section shall expire two years after the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 1996.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2610. Competitions for excellence: acceptance of monetary awards.''.

     SEC. 378. PROVISION OF EQUIPMENT AND FACILITIES TO ASSIST IN 
                   EMERGENCY RESPONSE ACTIONS.

       Section 372 of title 10, United States Code, is amended--
       (1) by inserting ``(a) In General.--'' before ``The 
     Secretary of Defense''; and
       (2) by adding at the end the following new subsection:
       ``(b) Emergencies Involving Chemical and Biological 
     Agents.--(1) In addition to equipment and facilities 
     described in subsection (a), the Secretary may provide an 
     item referred to in paragraph (2) to a Federal, State, or 
     local law enforcement or emergency response agency to prepare 
     for or respond to an emergency involving chemical or 
     biological agents if the Secretary determines that the item 
     is not reasonably available from another source.
       ``(2) An item referred to in paragraph (1) is any material 
     or expertise of the Department of Defense appropriate for use 
     in preparing for or responding to an emergency involving 
     chemical or biological agents, including the following:
       ``(A) Training facilities.
       ``(B) Sensors.
       ``(C) Protective clothing.
       ``(D) Antidotes.''.

     SEC. 379. REPORT ON DEPARTMENT OF DEFENSE MILITARY AND CIVIL 
                   DEFENSE PREPAREDNESS TO RESPOND TO EMERGENCIES 
                   RESULTING FROM A CHEMICAL, BIOLOGICAL, 
                   RADIOLOGICAL, OR NUCLEAR ATTACK.

       (a) Report.--(1) Not later than March 1, 1996, the 
     Secretary of Defense and the Secretary of Energy shall submit 
     to Congress a joint report on the military and civil defense 
     plans and programs of the Department of Defense to prepare 
     for and respond to the effects of an emergency in the United 
     States resulting from a chemical, biological, radiological, 
     or nuclear attack on the United States (hereinafter in this 
     section referred to as an ``attack-related civil defense 
     emergency'').
       (2) The report shall be prepared in consultation with the 
     Director of the Federal Emergency Management Agency.
       (b) Content of Report.--The report shall include the 
     following:
       (1) A discussion of the military and civil defense plans 
     and programs of the Department of Defense for preparing for 
     and responding to an attack-related civil defense emergency 
     arising from an attack of a type for which the Department of 
     Defense has a primary responsibility to respond.
       (2) A discussion of the military and civil defense plans 
     and programs of the Department of Defense for preparing for 
     and providing a response to an attack-related civil defense 
     emergency arising from an attack of a type for which the 
     Department of Defense has responsibility to provide a 
     supporting response.
       (3) A description of any actions, and any recommended 
     legislation, that the Secretaries consider necessary for 
     improving the preparedness of the Department of Defense to 
     respond effectively to an attack-related civil defense 
     emergency.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS
                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       (a) Fiscal Year 1996.--The Armed Forces are authorized 
     strengths for active duty personnel as of September 30, 1996, 
     as follows:
       (1) The Army, 495,000, of which not more than 81,300 may be 
     commissioned officers.
       (2) The Navy, 428,340, of which not more than 58,870 may be 
     commissioned officers.
       (3) The Marine Corps, 174,000, of which not more than 
     17,978 may be commissioned officers.
       (4) The Air Force, 388,200, of which not more than 75,928 
     may be commissioned officers.
       (b) Floor on End Strengths.--(1) Chapter 39 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 691. Permanent end strength levels to support two 
       major regional contingencies

       ``(a) The end strengths specified in subsection (b) are the 
     minimum strengths necessary to enable the armed forces to 
     fulfill a national defense strategy calling for the United 
     States to be able to successfully conduct two nearly 
     simultaneous major regional contingencies.
       ``(b) Unless otherwise provided by law, the number of 
     members of the armed forces (other than the Coast Guard) on 
     active duty at the end of any fiscal year shall be not less 
     than the following:
       ``(1) For the Army, 495,000.
       ``(2) For the Navy, 395,000.
       ``(3) For the Marine Corps, 174,000.
       ``(4) For the Air Force, 381,000.
       ``(c) No funds appropriated to the Department of Defense 
     may be used to implement a reduction of the active duty end 
     strength for any of the armed forces for any fiscal year 
     below the level specified in subsection (b) unless the 
     Secretary of Defense submits to Congress notice of the 
     proposed lower end strength levels and a justification for 
     those levels. No action may then be taken to implement such a 
     reduction for that fiscal year until the end of the six-month 
     period beginning on the date of the receipt of such notice by 
     Congress.
       ``(d) For a fiscal year for which the active duty end 
     strength authorized by law pursuant to section 115(a)(1)(A) 
     of this title for any of the armed forces is identical to the 
     number applicable to that armed force under subsection (b), 
     the Secretary of Defense may reduce that number by not more 
     than 0.5 percent.
       ``(e) The number of members of the armed forces on active 
     duty shall be counted for purposes of this section in the 
     same manner as applies under section 115(a)(1) of this 
     title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``691. Permanent end strength levels to support two major regional 
              contingencies.''.

       (c) Active Component End Strength Flexibility.--Section 
     115(c)(1) of title 10, United States Code, is amended by 
     striking out ``0.5 percent'' and inserting in lieu thereof 
     ``1 percent''.

     SEC. 402. TEMPORARY VARIATION IN DOPMA AUTHORIZED END 
                   STRENGTH LIMITATIONS FOR ACTIVE DUTY AIR FORCE 
                   AND NAVY OFFICERS IN CERTAIN GRADES.

       (a) Air Force Officers.--In the administration of the 
     limitation under section 523(a)(1) of title 10, United States 
     Code, for fiscal years 1996 and 1997, the numbers applicable 
     to officers of the Air Force serving on active duty in the 
     grades of major, lieutenant colonel, and colonel shall be the 
     numbers set forth for that fiscal year in the following table 
     (rather than the numbers determined in accordance with the 
     table in that section):

------------------------------------------------------------------------
                                          Number of officers who may be 
                                          serving on active duty in the 
                                                    grade of:           
             Fiscal year:              ---------------------------------
                                                   Lieutenant           
                                          Major      colonel    Colonel 
------------------------------------------------------------------------
1996..................................     15,566       9,876      3,609
1997..................................     15,645       9,913      3,627
------------------------------------------------------------------------

       (b) Navy Officers.--In the administration of the limitation 
     under section 523(a)(2) of title 10, United States Code, for 
     fiscal years 1996 and 1997, the numbers applicable to 
     officers of the Navy serving on active duty in the grades of 
     lieutenant commander, commander, and captain shall be the 
     numbers set forth for that fiscal year in the following 

[[Page H382]]
     table (rather than the numbers determined in accordance with the table 
     in that section):

------------------------------------------------------------------------
                                          Number of officers who may be 
                                          serving on active duty in the 
                                                    grade of:           
             Fiscal year:              ---------------------------------
                                        Lieutenant                      
                                         commander  Commander   Captain 
------------------------------------------------------------------------
1996..................................      11,924      7,390      3,234
1997..................................      11,732      7,297      3,188
------------------------------------------------------------------------

     SEC. 403. CERTAIN GENERAL AND FLAG OFFICERS AWAITING 
                   RETIREMENT NOT TO BE COUNTED.

       (a) Distribution of Officers on Active Duty in General and 
     Flag Officer Grades.--Section 525 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(d) An officer continuing to hold the grade of general or 
     admiral under section 601(b)(4) of this title after relief 
     from the position of Chairman of the Joint Chiefs of Staff, 
     Chief of Staff of the Army, Chief of Naval Operations, Chief 
     of Staff of the Air Force, or Commandant of the Marine Corps 
     shall not be counted for purposes of this section.''.
       (b) Number of Officers on Active Duty in Grade of General 
     or Admiral.--Section 528(b) of such title is amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following:
       ``(2) An officer continuing to hold the grade of general or 
     admiral under section 601(b)(4) of this title after relief 
     from the position of Chairman of the Joint Chiefs of Staff, 
     Chief of Staff of the Army, Chief of Naval Operations, 
     Chief of Staff of the Air Force, or Commandant of the 
     Marine Corps shall not be counted for purposes of this 
     section.''.
       (c) Clarification.--Section 601(b) of such title is 
     amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``of importance and responsibility designated'' and inserting 
     in lieu thereof ``designated under subsection (a) or by 
     law'';
       (2) in paragraph (1), by striking out ``of importance and 
     responsibility'';
       (3) in paragraph (2), by striking out ``designating'' and 
     inserting in lieu thereof ``designated under subsection (a) 
     or by law''; and
       (4) in paragraph (4), by inserting ``under subsection (a) 
     or by law'' after ``designated''.
                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

       (a) Fiscal Year 1996.--The Armed Forces are authorized 
     strengths for Selected Reserve personnel of the reserve 
     components as of September 30, 1996, as follows:
       (1) The Army National Guard of the United States, 373,000.
       (2) The Army Reserve, 230,000.
       (3) The Naval Reserve, 98,894.
       (4) The Marine Corps Reserve, 42,274.
       (5) The Air National Guard of the United States, 112,707.
       (6) The Air Force Reserve, 73,969.
       (7) The Coast Guard Reserve, 8,000.
       (b) Waiver Authority.--The Secretary of Defense may vary 
     the end strength authorized by subsection (a) by not more 
     than 2 percent.
       (c) Adjustments.--The end strengths prescribed by 
     subsection (a) for the Selected Reserve of any reserve 
     component for a fiscal year shall be proportionately reduced 
     by--
       (1) the total authorized strength of units organized to 
     serve as units of the Selected Reserve of such component 
     which are on active duty (other than for training) at the end 
     of the fiscal year, and
       (2) the total number of individual members not in units 
     organized to serve as units of the Selected Reserve of such 
     component who are on active duty (other than for training or 
     for unsatisfactory participation in training) without their 
     consent at the end of the fiscal year.

     Whenever such units or such individual members are released 
     from active duty during any fiscal year, the end strength 
     prescribed for such fiscal year for the Selected Reserve of 
     such reserve component shall be proportionately increased by 
     the total authorized strengths of such units and by the total 
     number of such individual members.

     SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN 
                   SUPPORT OF THE RESERVES.

       Within the end strengths prescribed in section 411(a), the 
     reserve components of the Armed Forces are authorized, as of 
     September 30, 1996, the following number of Reserves to be 
     serving on full-time active duty or full-time duty, in the 
     case of members of the National Guard, for the purpose of 
     organizing, administering, recruiting, instructing, or 
     training the reserve components:
       (1) The Army National Guard of the United States, 23,390.
       (2) The Army Reserve, 11,575.
       (3) The Naval Reserve, 17,587.
       (4) The Marine Corps Reserve, 2,559.
       (5) The Air National Guard of the United States, 10,066.
       (6) The Air Force Reserve, 628.

     SEC. 413. COUNTING OF CERTAIN ACTIVE COMPONENT PERSONNEL 
                   ASSIGNED IN SUPPORT OF RESERVE COMPONENT 
                   TRAINING.

       Section 414(c) of the National Defense Authorization Act 
     for Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 
     12001 note) is amended--
       (1) by inserting ``(1)'' before ``The Secretary''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary of Defense may count toward the number 
     of active component personnel required under paragraph (1) to 
     be assigned to serve as advisers under the program under this 
     section any active component personnel who are assigned to an 
     active component unit (A) that was established principally 
     for the purpose of providing dedicated training support to 
     reserve component units, and (B) the primary mission of which 
     is to provide such dedicated training support.''.

     SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN GRADES 
                   AUTHORIZED TO SERVE ON ACTIVE DUTY IN SUPPORT 
                   OF THE RESERVES.

       (a) Officers.--The table in section 12011(a) of title 10, 
     United States Code, is amended to read as follows:
       

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps 
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,219   1,071     643      140  
Lieutenant Colonel or Commander.....    1,524     520     672       90  
Colonel or Navy Captain.............      412     188     274     30''. 
------------------------------------------------------------------------

       (b) Senior Enlisted Members.--The table in section 12012(a) 
     of such title is amended to read as follows:
       

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps 
------------------------------------------------------------------------
E-9.................................     603     202      366       20  
E-8.................................   2,585     429      890     94''. 
------------------------------------------------------------------------

     SEC. 415. RESERVES ON ACTIVE DUTY IN SUPPORT OF COOPERATIVE 
                   THREAT REDUCTION PROGRAMS NOT TO BE COUNTED.

       Section 115(d) of title 10, United States Code, is amended 
     by adding at the end the following:
       ``(8) Members of the Selected Reserve of the Ready Reserve 
     on active duty for more that 180 days to support programs 
     described in section 1203(b) of the Cooperative Threat 
     Reduction Act of 1993 (title XII of Public Law 103-160; 22 
     U.S.C. 5952(b)).''.

     SEC. 416. RESERVES ON ACTIVE DUTY FOR MILITARY-TO-MILITARY 
                   CONTACTS AND COMPARABLE ACTIVITIES NOT TO BE 
                   COUNTED.

       Section 168 of title 10, United States Code, is amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Active Duty End Strengths.--(1) A member of a reserve 
     component referred to in paragraph (2) shall not be counted 
     for purposes of the following personnel strength limitations:
       ``(A) The end strength for active-duty personnel authorized 
     pursuant to section 115(a)(1) of this title for the fiscal 
     year in which the member carries out the activities referred 
     to in paragraph (2).
       ``(B) The authorized daily average for members in pay 
     grades E-8 and E-9 under section 517 of this title for the 
     calendar year in which the member carries out such 
     activities.
       ``(C) The authorized strengths for commissioned officers 
     under section 523 of this title for the fiscal year in which 
     the member carries out such activities.
       ``(2) A member of a reserve component referred to in 
     paragraph (1) is any member on active duty under an order to 
     active duty for 180 days or more who is engaged in activities 
     authorized under this section.''.
              Subtitle C--Military Training Student Loads

     SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

       (a) In General.--For fiscal year 1996, the components of 
     the Armed Forces are authorized average military training 
     loads as follows:
       (1) The Army, 75,013.
       (2) The Navy, 44,238.
       (3) The Marine Corps, 26,095.
       (4) The Air Force, 33,232.
       (b) Scope.--The average military training student loads 
     authorized for an armed force under subsection (a) apply to 
     the active and reserve components of that armed force.
       (c) Adjustments.--The average military training student 
     loads authorized in subsection (a) shall be adjusted 
     consistent with the end strengths authorized in subtitles A 
     and B. The Secretary of Defense shall prescribe the manner in 
     which such adjustments shall be apportioned.
              Subtitle D--Authorization of Appropriations

     SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY 
                   PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     1996 a total of $69,191,008,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 1996.

     SEC. 432. AUTHORIZATION FOR INCREASE IN ACTIVE-DUTY END 
                   STRENGTHS.

       (a) Authorization.--There is hereby authorized to be 
     appropriated to the Department of Defense for fiscal year 
     1996 for military personnel the sum of $112,000,000. Any 
     amount appropriated pursuant to this section shall be 
     allocated, in such manner as the Secretary of Defense 
     prescribes, among appropriations for active-component 
     military personnel for that fiscal year and shall be 
     available only to increase the number of members of the Armed 
     Forces on active duty during that fiscal year (compared to 
     the number of members that would be on active duty but for 
     such appropriation).
     
[[Page H383]]

       (b) Effect on End Strengths.--The end-strength 
     authorizations in section 401 shall each be deemed to be 
     increased by such number as necessary to take account of 
     additional members of the Armed Forces authorized by the 
     Secretary of Defense pursuant to subsection (a).
                   TITLE V--MILITARY PERSONNEL POLICY
                  Subtitle A--Officer Personnel Policy

     SEC. 501. JOINT OFFICER MANAGEMENT.

       (a) Critical Joint Duty Assignment Positions.--Section 
     661(d)(2)(A) of title 10, United States Code, is amended by 
     striking out ``1,000'' and inserting in lieu thereof ``800''.
       (b) Additional Qualifying Joint Service.--Section 664 of 
     such title is amended by adding at the end the following:
       ``(i) Joint Duty Credit for Certain Joint Task Force 
     Assignments.--(1) In the case of an officer who completes 
     service in a qualifying temporary joint task force 
     assignment, the Secretary of Defense, with the advice of the 
     Chairman of the Joint Chiefs of Staff, may (subject to the 
     criteria prescribed under paragraph (4)) grant the officer--
       ``(A) credit for having completed a full tour of duty in a 
     joint duty assignment; or
       ``(B) credit countable for determining cumulative service 
     in joint duty assignments.
       ``(2)(A) For purposes of paragraph (1), a qualifying 
     temporary joint task force assignment of an officer is a 
     temporary assignment, any part of which is performed by the 
     officer on or after the date of the enactment of this 
     subsection--
       ``(i) to the headquarters staff of a United States joint 
     task force that is part of a unified command or the United 
     States element of the headquarters staff of a multinational 
     force; and
       ``(ii) with respect to which the Secretary of Defense 
     determines that service of the officer in that assignment is 
     equivalent to that which would be gained by the officer in a 
     joint duty assignment.
       ``(B) An officer may not be granted credit under this 
     subsection unless the officer is recommended for such credit 
     by the Chairman of the Joint Chiefs of Staff.
       ``(3) Credit under paragraph (1) (including a determination 
     under paragraph (2)(A)(ii) and a recommendation under 
     paragraph (2)(B) with respect to such credit) may be granted 
     only on a case-by-case basis in the case of an individual 
     officer.
       ``(4) The Secretary of Defense shall prescribe by 
     regulation criteria for determining whether an officer may be 
     granted credit under paragraph (1) with respect to service in 
     a qualifying temporary joint task force assignment. The 
     criteria shall apply uniformly among the armed forces and 
     shall include the following requirements:
       ``(A) For an officer to be credited as having completed a 
     full tour of duty in a joint duty assignment, the length of 
     the officer's service in the qualifying temporary joint task 
     force assignment must meet the requirements of subsection (a) 
     or (c).
       ``(B) For an officer to be credited with service for 
     purposes of determining cumulative service in joint duty 
     assignments, the officer must serve at least 90 consecutive 
     days in the qualifying temporary joint task force assignment.
       ``(C) The service must be performed in support of a mission 
     that is directed by the President or that is assigned by the 
     President to United States forces in the joint task force 
     involved.
       ``(D) The joint task force must be constituted or 
     designated by the Secretary of Defense or by the commander of 
     a combatant command or of another force.
       ``(E) The joint task force must conduct combat or combat-
     related operations in a unified action under joint or 
     multinational command and control.
       ``(5) Officers for whom joint duty credit is granted 
     pursuant to this subsection may not be taken into account for 
     the purposes of any of the following provisions of this 
     title: section 661(d)(1), section 662(a)(3), section 662(b), 
     subsection (a) of this section, and paragraphs (7), (8), (9), 
     (11), and (12) of section 667.
       ``(6) In the case of an officer credited with having 
     completed a full tour of duty in a joint duty assignment 
     pursuant to this subsection, the Secretary of Defense may 
     waive the requirement in paragraph (1)(B) of section 661(c) 
     of this title that the tour of duty in a joint duty 
     assignment be performed after the officer completes a program 
     of education referred to in paragraph (1)(A) of that section. 
     The provisions of subparagraphs (C) and (D) of section 
     661(c)(3) of this title shall apply to such a waiver in the 
     same manner as to a waiver under subparagraph (A) of that 
     section.''.
       (c) Information in Annual Report.--Section 667 of such 
     title is amended by striking out paragraph (16) and inserting 
     after paragraph (15) the following new paragraph (16):
       ``(16) The number of officers granted credit for service in 
     joint duty assignments under section 664(i) of this title 
     and--
       ``(A) of those officers--
       ``(i) the number of officers credited with having completed 
     a tour of duty in a joint duty assignment; and
       ``(ii) the number of officers granted credit for purposes 
     of determining cumulative service in joint duty assignments; 
     and
       ``(B) the identity of each operation for which an officer 
     has been granted credit pursuant to section 664(i) of this 
     title and a brief description of the mission of the 
     operation.''.
       (d) Applicability of Limitation on Waiver Authority.--
     Section 661(c)(3) of such title is amended--
       (1) in the third sentence of subparagraph (D), by striking 
     out ``The total number'' and inserting in lieu thereof ``In 
     the case of officers in grades below brigadier general and 
     rear admiral (lower half), the total number''; and
       (2) by adding at the end the following new subparagraph:
       ``(E) There may not be more than 32 general and flag 
     officers on active duty at the same time who were selected 
     for the joint specialty while holding a general or flag 
     officer grade and for whom a waiver was granted under this 
     subparagraph.''.
       (e) Length of Second Joint Tour.--Section 664 of such title 
     is amended--
       (1) in subsection (e)(2), by inserting after subparagraph 
     (B) the following:
       ``(C) Service described in subsection (f)(6), except that 
     no more than 10 percent of all joint duty assignments shown 
     on the list published pursuant to section 668(b)(2)(A) of 
     this title may be so excluded in any year.''; and
       (2) in subsection (f)--
       (A) in the matter preceding paragraph (1), by striking out 
     ``completion of--'' and inserting in lieu thereof 
     ``completion of any of the following:'';
       (B) by striking out ``a'' at the beginning of paragraphs 
     (1), (2), (4), and (5) and inserting in lieu thereof ``A'';
       (C) by striking out ``cumulative'' in paragraph (3) and 
     inserting in lieu thereof ``Cumulative'';
       (D) by striking out the semicolon at the end of paragraphs 
     (1), (2), and (3) and ``; or'' at the end of paragraph (4) 
     and inserting in lieu thereof a period; and
       (E) by adding at the end the following:
       ``(6) A second joint duty assignment that is less than the 
     period required under subsection (a), but not less than two 
     years, without regard to whether a waiver was granted for 
     such assignment under subsection (b).''.
       (f) Technical Amendment.--Section 664(e)(1) of such title 
     is amended by striking out ``(after fiscal year 1990)''.

     SEC. 502. RETIRED GRADE FOR OFFICERS IN GRADES ABOVE MAJOR 
                   GENERAL AND REAR ADMIRAL.

       (a) Applicability of Time-in-Grade Requirements.--Section 
     1370 of title 10, United States Code, is amended--
       (1) in subsection (a)(2)(A), by striking out ``and below 
     lieutenant general or vice admiral''; and
       (2) in the first sentence of subsection (d)(2)(B), as added 
     effective October 1, 1996, by section 1641 of the Reserve 
     Officer Personnel Management Act (title XVI of Public Law 
     103-337; 108 Stat. 2968), by striking out ``and below 
     lieutenant general or vice admiral''.
       (b) Retirement in Highest Grade Upon Certification of 
     Satisfactory Service.--Subsection (c) of such section is 
     amended to read as follows:
       ``(c) Officers in O-9 and O-10 Grades.--(1) An officer who 
     is serving in or has served in the grade of general or 
     admiral or lieutenant general or vice admiral may be retired 
     in that grade under subsection (a) only after the Secretary 
     of Defense certifies in writing to the President and Congress 
     that the officer served on active duty satisfactorily in that 
     grade.
       ``(2) In the case of an officer covered by paragraph (1), 
     the three-year service-in-grade requirement in paragraph 
     (2)(A) of subsection (a) may not be reduced or waived under 
     that subsection--
       ``(A) while the officer is under investigation for alleged 
     misconduct; or
       ``(B) while there is pending the disposition of an adverse 
     personnel action against the officer for alleged 
     misconduct.''.
       (c) Repeal of Superseded Provisions.--Sections 3962(a), 
     5034, 5043(c), and 8962(a) of such title are repealed.
       (d) Technical and Clerical Amendments.--(1) Sections 
     3962(b) and 8962(b) of such title are amended by striking out 
     ``(b) Upon'' and inserting in lieu thereof ``Upon''.
       (2) The table of sections at the beginning of chapter 505 
     of such title is amended by striking out the item relating to 
     section 5034.
       (e) Effective Date for Amendment to Provision Taking Effect 
     in 1996.--The amendment made by subsection (a)(2) shall take 
     effect on October 1, 1996, immediately after subsection (d) 
     of section 1370 of title 10, United States Code, takes effect 
     under section 1691(b)(1) of the Reserve Officer Personnel 
     Management Act (108 Stat. 3026).
       (f) Preservation of Applicability of Limitation.--Section 
     1370(a)(2)(C) of title 10, United States Code, is amended by 
     striking out ``The number of officers in an armed force in a 
     grade'' and inserting in lieu thereof ``In the case of a 
     grade below the grade of lieutenant general or vice admiral, 
     the number of members of one of the armed forces in that 
     grade''.
       (g) Stylistic Amendments.--Section 1370 of title 10, United 
     States Code, is further amended--
       (1) in subsection (a), by striking out ``(a)(1)'' and 
     inserting in lieu thereof ``(a) Rule for Retirement in 
     Highest Grade Held Satisfactorily.--(1)'';
       (2) in subsection (b), by inserting ``Retirement in Next 
     Lower Grade.--'' after ``(b)''; and
       (3) in subsection (d), as added effective October 1, 1996, 
     by section 1641 of the Reserve Officer Personnel Management 
     Act (title XVI of Public Law 103-337; 108 Stat. 2968), by 
     striking out ``(d)(1)'' and inserting in lieu thereof ``(d) 
     Reserve Officers.--(1)''.

     SEC. 503. WEARING OF INSIGNIA FOR HIGHER GRADE BEFORE 
                   PROMOTION.

       (a) Authority and Limitations.--(1) Chapter 45 of title 10, 
     United States Code, is 

[[Page H384]]
     amended by adding at the end the following new section:

     ``Sec. 777. Wearing of insignia of higher grade before 
       promotion (frocking): authority; restrictions

       ``(a) Authority.--An officer who has been selected for 
     promotion to the next higher grade may be authorized, under 
     regulations and policies of the Department of Defense and 
     subject to subsection (b), to wear the insignia for that next 
     higher grade. An officer who is so authorized to wear the 
     insignia of the next higher grade is said to be `frocked' to 
     that grade.
       ``(b) Restrictions.--An officer may not be authorized to 
     wear the insignia for a grade as described in subsection (a) 
     unless--
       ``(1) the Senate has given its advice and consent to the 
     appointment of the officer to that grade; and
       ``(2) the officer is serving in, or has received orders to 
     serve in, a position for which that grade is authorized.
       ``(c) Benefits Not To Be Construed as Accruing.--(1) 
     Authority provided to an officer as described in subsection 
     (a) to wear the insignia of the next higher grade may not be 
     construed as conferring authority for that officer to--
       ``(A) be paid the rate of pay provided for an officer in 
     that grade having the same number of years of service as that 
     officer; or
       ``(B) assume any legal authority associated with that 
     grade.
       ``(2) The period for which an officer wears the insignia of 
     the next higher grade under such authority may not be taken 
     into account for any of the following purposes:
       ``(A) Seniority in that grade.
       ``(B) Time of service in that grade.
       ``(d) Limitation on Number of Officers Frocked to Specified 
     Grades.--(1) The total number of colonels and Navy captains 
     on the active-duty list who are authorized as described in 
     subsection (a) to wear the insignia for the grade of 
     brigadier general or rear admiral (lower half), as the case 
     may be, may not exceed the following:
       ``(A) During fiscal years 1996 and 1997, 75.
       ``(B) During fiscal year 1998, 55.
       ``(C) After fiscal year 1998, 35.
       ``(2) The number of officers of an armed force on the 
     active-duty list who are authorized as described in 
     subsection (a) to wear the insignia for a grade to which a 
     limitation on total number applies under section 523(a) of 
     this title for a fiscal year may not exceed 1 percent of the 
     total number provided for the officers in that grade in that 
     armed force in the administration of the limitation under 
     that section for that fiscal year.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``777. Wearing of insignia of higher grade before promotion (frocking): 
              authority; restrictions.''.

       (b) Temporary Variation of Limitations on Numbers of 
     Frocked Officers.--In the administration of section 777(d)(2) 
     of title 10, United States Code (as added by subsection (a)), 
     the percent limitation applied under that section for fiscal 
     year 1996 shall be 2 percent (instead of 1 percent).
       (c) Report.--Not later than September 1, 1996, the 
     Secretary of Defense shall submit to Congress a report 
     providing the assessment of the Secretary on the practice, 
     known as ``frocking'', of authorizing an officer who has been 
     selected for promotion to the next higher grade to wear the 
     insignia for that next higher grade. The report shall include 
     the Secretary's assessment of the appropriate number, if any, 
     of colonels and Navy captains to be eligible under section 
     777(d)(1) of title 10, United States Code (as added by 
     subsection (a)), to wear the insignia for the grade of 
     brigadier general or rear admiral (lower half).

     SEC. 504. AUTHORITY TO EXTEND TRANSITION PERIOD FOR OFFICERS 
                   SELECTED FOR EARLY RETIREMENT.

       (a) Selective Retirement of Warrant Officers.--Section 581 
     of title 10, United States Code, is amended by adding at the 
     end the following new subsection:
       ``(e) The Secretary concerned may defer for not more than 
     90 days the retirement of an officer otherwise approved for 
     early retirement under this section in order to prevent a 
     personal hardship to the officer or for other humanitarian 
     reasons. Any such deferral shall be made on a case-by-case 
     basis considering the circumstances of the case of the 
     particular officer concerned. The authority of the Secretary 
     to grant such a deferral may not be delegated.''.
       (b) Selective Early Retirement of Active-Duty Officers.--
     Section 638(b) of title 10, United States Code, is amended by 
     adding at the end the following new paragraph:
       ``(3) The Secretary concerned may defer for not more than 
     90 days the retirement of an officer otherwise approved for 
     early retirement under this section or section 638a of this 
     title in order to prevent a personal hardship to the officer 
     or for other humanitarian reasons. Any such deferral shall be 
     made on a case-by-case basis considering the circumstances of 
     the case of the particular officer concerned. The authority 
     of the Secretary to grant such a deferral may not be 
     delegated.''.

     SEC. 505. ARMY OFFICER MANNING LEVELS.

       (a) In General.--(1) Chapter 331 of title 10, United States 
     Code, is amended by inserting after the table of sections the 
     following new section:

     ``Sec. 3201. Officers on active duty: minimum strength based 
       on requirements

       ``(a) The Secretary of the Army shall ensure that 
     (beginning with fiscal year 1999) the strength at the end of 
     each fiscal year of officers on active duty is sufficient to 
     enable the Army to meet at least that percentage of the 
     programmed manpower structure for officers for the active 
     component of the Army that is provided for in the most recent 
     Defense Planning Guidance issued by the Secretary of Defense.
       ``(b) The number of officers on active duty shall be 
     counted for purposes of this section in the same manner as 
     applies under section 115(a)(1) of this title.
       ``(c) In this section:
       ``(1) The term `programmed manpower structure' means the 
     aggregation of billets describing the full manpower 
     requirements for units and organizations in the programmed 
     force structure.
       ``(2) The term `programmed force structure' means the set 
     of units and organizations that exist in the current year and 
     that is planned to exist in each future year under the then-
     current Future-Years Defense Program.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after ``Sec.'' the following new 
     item:

``3201. Officers on active duty: minimum strength based on 
              requirements.''.

       (b) Assistance in Accomplishing Requirement.--The Secretary 
     of Defense shall provide to the Army sufficient personnel and 
     financial resources to enable the Army to meet the 
     requirement specified in section 3201 of title 10, United 
     States Code, as added by subsection (a).

     SEC. 506. AUTHORITY FOR MEDICAL DEPARTMENT OFFICERS OTHER 
                   THAN PHYSICIANS TO BE APPOINTED AS SURGEON 
                   GENERAL.

       (a) Surgeon General of the Army.--The third sentence of 
     section 3036(b) of title 10, United States Code, is amended 
     by inserting after ``The Surgeon General'' the following: 
     ``may be appointed from officers in any corps of the Army 
     Medical Department and''.
       (b) Surgeon General of the Navy.--Section 5137 of such 
     title is amended--
       (1) in the first sentence of subsection (a), by striking 
     out ``in the Medical Corps'' and inserting in lieu thereof 
     ``in any corps of the Navy Medical Department''; and
       (2) in subsection (b), by striking out ``in the Medical 
     Corps'' and inserting in lieu thereof ``who is qualified to 
     be the Chief of the Bureau of Medicine and Surgery''.
       (c) Surgeon General of the Air Force.--The first sentence 
     of section 8036 of such title is amended by striking out 
     ``designated as medical officers under section 8067(a) of 
     this title'' and inserting in lieu thereof ``in the Air Force 
     medical department''.

     SEC. 507. DEPUTY JUDGE ADVOCATE GENERAL OF THE AIR FORCE.

       (a) Tenure and Grade of Deputy Judge Advocate General.--
     Section 8037(d)(1) of such title is amended--
       (1) in the second sentence, by striking out ``two years'' 
     and inserting in lieu thereof ``four years''; and
       (2) by striking out the last sentence and inserting in lieu 
     thereof the following: ``An officer appointed as Deputy Judge 
     Advocate General who holds a lower regular grade shall be 
     appointed in the regular grade of major general.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     apply to any appointment to the position of Deputy Judge 
     Advocate General of the Air Force that is made after the date 
     of the enactment of this Act.

     SEC. 508. AUTHORITY FOR TEMPORARY PROMOTIONS FOR CERTAIN NAVY 
                   LIEUTENANTS WITH CRITICAL SKILLS.

       (a) Extension of Authority.--Subsection (f) of section 5721 
     of title 10, United States Code, is amended by striking out 
     ``September 30, 1995'' and inserting in lieu thereof 
     ``September 30, 1996''.
       (b) Limitation.--Such section is further amended--
       (1) by redesignating subsection (f), as amended by 
     subsection (a), as subsection (g); and
       (2) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Limitation on Number of Eligible Positions.--(1) An 
     appointment under this section may only be made for service 
     in a position designated by the Secretary of the Navy for 
     purposes of this section. The number of positions so 
     designated may not exceed 325.
       ``(2) Whenever the Secretary makes a change to the 
     positions designated under paragraph (1), the Secretary shall 
     submit notice of the change in writing to Congress.''.
       (c) Report.--Not later than April 1, 1996, the Secretary of 
     Defense shall submit to Congress a report providing the 
     Secretary's assessment of that continuing need for the 
     promotion authority under section 5721 of title 10, United 
     States Code. The Secretary shall include in the report the 
     following:
       (1) The nature and grade structure of the positions for 
     which such authority has been used.
       (2) The cause or causes of the reported chronic shortages 
     of qualified personnel in the required grade to fill the 
     positions specified under paragraph (1).
       (3) The reasons for the perceived inadequacy of the officer 
     promotion system (including ``below-the-zone'' selections) to 
     provide sufficient officers in the required grade to fill 
     those positions.
       (4) The extent to which a bonus program or some other 
     program would be a more appropriate means of resolving the 
     reported chronic shortages in engineering positions.
     
[[Page H385]]

       (d) Clerical Amendments.--Section 5721 of title 10, United 
     States Code, is amended as follows:
       (1) Subsection (a) is amended by inserting ``Promotion 
     Authority for Certain Officer With Critical Skills.--'' after 
     ``(a)''.
       (2) Subsection (b) is amended by inserting ``Status of 
     Officers Appointed.--'' after ``(b)''.
       (3) Subsection (c) is amended by inserting ``Board 
     Recommendation Required.--'' after ``(c)''.
       (4) Subsection (d) is amended by inserting ``Acceptance and 
     Effective Date of Appointment.--'' after ``(d)''.
       (5) Subsection (e) is amended by inserting ``Termination of 
     Appointment.--'' after ``(e)''.
       (6) Subsection (g), as redesignated by subsection (b)(1), 
     is amended by inserting ``Termination of Appointment 
     Authority.--'' after ``(g)''.
       (e) Effective Date.--Subsection (f) of section 5721 of 
     title 10, United States Code, as added by subsection (b)(2), 
     shall take effect at the end of the 30-day period beginning 
     on the date of the enactment of this Act and shall apply to 
     any appointment under that section after the end of such 
     period.

     SEC. 509. RETIREMENT FOR YEARS OF SERVICE OF DIRECTORS OF 
                   ADMISSIONS OF MILITARY AND AIR FORCE ACADEMIES.

       (a) Military Academy.--(1) Section 3920 of title 10, United 
     States Code, is amended to read as follows:

     ``Sec. 3920. More than thirty years: permanent professors and 
       the Director of Admissions of the United States Military 
       Academy

       ``(a) The Secretary of the Army may retire an officer 
     specified in subsection (b) who has more than 30 years of 
     service as a commissioned officer.
       ``(b) Subsection (a) applies in the case of the following 
     officers:
       ``(1) Any permanent professor of the United States Military 
     Academy.
       ``(2) The Director of Admissions of the United States 
     Military Academy.''.
       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 367 of such title is 
     amended to read as follows:

``3920. More than thirty years: permanent professors and the Director 
              of Admissions of the United States Military Academy.''.

       (b) Air Force Academy.--(1) Section 8920 of title 10, 
     United States Code, is amended to read as follows:

     ``Sec. 8920. More than thirty years: permanent professors and 
       the Director of Admissions of the United States Air Force 
       Academy

       ``(a) The Secretary of the Air Force may retire an officer 
     specified in subsection (b) who has more than 30 years of 
     service as a commissioned officer.
       ``(b) Subsection (a) applies in the case of the following 
     officers:
       ``(1) Any permanent professor of the United States Air 
     Force Academy.
       ``(2) The Director of Admissions of the United States Air 
     Force Academy.''.
       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 867 of such title is 
     amended to read as follows:

``8920. More than thirty years: permanent professors and the Director 
              of Admissions of the United States Air Force Academy.''.

           Subtitle B--Matters Relating to Reserve Components

     SEC. 511. EXTENSION OF CERTAIN RESERVE OFFICER MANAGEMENT 
                   AUTHORITIES.

       (a) Grade Determination Authority for Certain Reserve 
     Medical Officers.--Sections 3359(b) and 8359(b) of title 10, 
     United States Code, are each amended by striking out 
     ``September 30, 1995'' and inserting in lieu thereof 
     ``September 30, 1996''.
       (b) Promotion Authority for Certain Reserve Officers 
     Serving on Active Duty.--Sections 3380(d) and 8380(d) of 
     title 10, United States Code, are each amended by striking 
     out ``September 30, 1995'' and inserting in lieu thereof 
     ``September 30, 1996''.
       (c) Years of Service for Mandatory Transfer to the Retired 
     Reserve.--Section 1016(d) of the Department of Defense 
     Authorization Act, 1984 (10 U.S.C. 3360) is amended by 
     striking out ``September 30, 1995'' and inserting in lieu 
     thereof ``September 30, 1996''.

     SEC. 512. MOBILIZATION INCOME INSURANCE PROGRAM FOR MEMBERS 
                   OF READY RESERVE.

       (a) Establishment of Program.--(1) Subtitle E of title 10, 
     United States Code, is amended by inserting after chapter 
     1213 the following new chapter:

      ``CHAPTER 1214--READY RESERVE MOBILIZATION INCOME INSURANCE

``Sec.
``12521. Definitions.
``12522. Establishment of insurance program.
``12523. Risk insured.
``12524. Enrollment and election of benefits.
``12525. Benefit amounts.
``12526. Premiums.
``12527. Payment of premiums.
``12528. Reserve Mobilization Income Insurance Fund.
``12529. Board of Actuaries.
``12530. Payment of benefits.
``12531. Purchase of insurance.
``12532. Termination for nonpayment of premiums; forfeiture.

     ``Sec. 12521. Definitions

       ``In this chapter:
       ``(1) The term `insurance program' means the Ready Reserve 
     Mobilization Income Insurance Program established under 
     section 12522 of this title.
       ``(2) The term `covered service' means active duty 
     performed by a member of a reserve component under an order 
     to active duty for a period of more than 30 days which 
     specifies that the member's service--
       ``(A) is in support of an operational mission for which 
     members of the reserve components have been ordered to active 
     duty without their consent; or
       ``(B) is in support of forces activated during a period of 
     war declared by Congress or a period of national emergency 
     declared by the President or Congress.
       ``(3) The term `insured member' means a member of the Ready 
     Reserve who is enrolled for coverage under the insurance 
     program in accordance with section 12524 of this title.
       ``(4) The term `Secretary' means the Secretary of Defense.
       ``(5) The term `Department' means the Department of 
     Defense.
       ``(6) The term `Board of Actuaries' means the Department of 
     Defense Education Benefits Board of Actuaries referred to in 
     section 2006(e)(1) of this title.
       ``(7) The term `Fund' means the Reserve Mobilization Income 
     Insurance Fund established by section 12528(a) of this title.

     ``Sec. 12522. Establishment of insurance program

       ``(a) Establishment.--The Secretary shall establish for 
     members of the Ready Reserve (including the Coast Guard 
     Reserve) an insurance program to be known as the `Ready 
     Reserve Mobilization Income Insurance Program'.
       ``(b) Administration.--The insurance program shall be 
     administered by the Secretary. The Secretary may prescribe in 
     regulations such rules, procedures, and policies as the 
     Secretary considers necessary or appropriate to carry out the 
     insurance program.
       ``(c) Agreement With Secretary of Transportation.--The 
     Secretary and the Secretary of Transportation shall enter 
     into an agreement with respect to the administration of the 
     insurance program for the Coast Guard Reserve.

     ``Sec. 12523. Risk insured

       ``(a) In General.--The insurance program shall insure 
     members of the Ready Reserve against the risk of being 
     ordered into covered service.
       ``(b) Entitlement to Benefits.--(1) An insured member 
     ordered into covered service shall be entitled to payment of 
     a benefit for each month (and fraction thereof) of covered 
     service that exceeds 30 days of covered service, except that 
     no member may be paid under the insurance program for more 
     than 12 months of covered service served during any period of 
     18 consecutive months.
       ``(2) Payment shall be based solely on the insured status 
     of a member and on the period of covered service served by 
     the member. Proof of loss of income or of expenses incurred 
     as a result of covered service may not be required.

     ``Sec. 12524. Enrollment and election of benefits

       ``(a) Enrollment.--(1) Except as provided in subsection 
     (f), upon first becoming a member of the Ready Reserve, a 
     member shall be automatically enrolled for coverage under the 
     insurance program. An automatic enrollment of a member shall 
     be void if within 60 days after first becoming a member of 
     the Ready Reserve the member declines insurance under the 
     program in accordance with the regulations prescribed by the 
     Secretary.
       ``(2) Promptly after the insurance program is established, 
     the Secretary shall offer to members of the reserve 
     components who are then members of the Ready Reserve (other 
     than members ineligible under subsection (f)) an 
     opportunity to enroll for coverage under the insurance 
     program. A member who fails to enroll within 60 days after 
     being offered the opportunity shall be considered as 
     having declined to be insured under the program.
       ``(3) A member of the Ready Reserve ineligible to enroll 
     under subsection (f) shall be afforded an opportunity to 
     enroll upon being released from active duty in accordance 
     with regulations prescribed by the Secretary if the member 
     has not previously had the opportunity to be enrolled under 
     paragraph (1) or (2). A member who fails to enroll within 60 
     days after being afforded that opportunity shall be 
     considered as having declined to be insured under the 
     program.
       ``(b) Election of Benefit Amount.--The amount of a member's 
     monthly benefit under an enrollment shall be the basic 
     benefit under subsection (a) of section 12525 of this title 
     unless the member elects a different benefit under subsection 
     (b) of such section within 60 days after first becoming a 
     member of the Ready Reserve or within 60 days after being 
     offered the opportunity to enroll, as the case may be.
       ``(c) Elections Irrevocable.--(1) An election to decline 
     insurance pursuant to paragraph (1) or (2) of subsection (a) 
     is irrevocable.
       ``(2) The amount of coverage may not be increased after 
     enrollment.
       ``(d) Election To Terminate.--A member may terminate an 
     enrollment at any time.
       ``(e) Information To Be Furnished.--The Secretary shall 
     ensure that members referred to in subsection (a) are given a 
     written explanation of the insurance program and are advised 
     that they have the right to decline to be insured and, if not 
     declined, to elect coverage for a reduced benefit or an 
     enhanced benefit under subsection (b).
     
[[Page H386]]

       ``(f) Members Ineligible To Enroll.--Members of the Ready 
     Reserve serving on active duty (or full-time National Guard 
     duty) are not eligible to enroll for coverage under the 
     insurance program. The Secretary may define any additional 
     category of members of the Ready Reserve to be excluded from 
     eligibility to purchase insurance under this chapter.

     ``Sec. 12525. Benefit amounts

       ``(a) Basic Benefit.--The basic benefit for an insured 
     member under the insurance program is $1,000 per month (as 
     adjusted under subsection (d)).
       ``(b) Reduced and Enhanced Benefits.--Under the regulations 
     prescribed by the Secretary, a person enrolled for coverage 
     under the insurance program may elect--
       ``(1) a reduced coverage benefit equal to one-half the 
     amount of the basic benefit; or
       ``(2) an enhanced benefit in the amount of $1,500, $2,000, 
     $2,500, $3,000, $3,500, $4,000, $4,500, or $5,000 per month 
     (as adjusted under subsection (d)).
       ``(c) Amount for Partial Month.--The amount of insurance 
     payable to an insured member for any period of covered 
     service that is less than one month shall be determined by 
     multiplying \1/30\ of the monthly benefit rate for the member 
     by the number of days of the covered service served by the 
     member during such period.
       ``(d) Adjustment of Amounts.--(1) The Secretary shall 
     determine annually the effect of inflation on benefits and 
     shall adjust the amounts set forth in subsections (a) and 
     (b)(2) to maintain the constant dollar value of the benefit.
       ``(2) If the amount of a benefit as adjusted under 
     paragraph (1) is not evenly divisible by $10, the amount 
     shall be rounded to the nearest multiple of $10, except that 
     an amount evenly divisible by $5 but not by $10 shall be 
     rounded to the next lower amount that is evenly divisible by 
     $10.

     ``Sec. 12526. Premiums

       ``(a) Establishment of Rates.--(1) The Secretary, in 
     consultation with the Board of Actuaries, shall prescribe the 
     premium rates for insurance under the insurance program.
       ``(2) The Secretary shall prescribe a fixed premium rate 
     for each $1,000 of monthly insurance benefit. The premium 
     amount shall be equal to the share of the cost attributable 
     to insuring the member and shall be the same for all members 
     of the Ready Reserve who are insured under the insurance 
     program for the same benefit amount. The Secretary shall 
     prescribe the rate on the basis of the best available 
     estimate of risk and financial exposure, levels of 
     subscription by members, and other relevant factors.
       ``(b) Level Premiums.--The premium rate prescribed for the 
     first year of insurance coverage of an insured member shall 
     be continued without change for subsequent years of insurance 
     coverage, except that the Secretary, after consultation with 
     the Board of Actuaries, may adjust the premium rate in order 
     to fund inflation-adjusted benefit increases on an 
     actuarially sound basis.

     ``Sec. 12527. Payment of premiums

       ``(a) Methods of Payment.--(1) The monthly premium for 
     coverage of a member under the insurance program shall be 
     deducted and withheld from the insured member's pay for each 
     month.
       ``(2) An insured member who does not receive pay on a 
     monthly basis shall pay the Secretary directly the premium 
     amount applicable for the level of benefits for which the 
     member is insured.
       ``(b) Advance Pay for Premium.--The Secretary concerned may 
     advance to an insured member the amount equal to the first 
     insurance premium payment due under this chapter. The advance 
     may be paid out of appropriations for military pay. An 
     advance to a member shall be collected from the member either 
     by deducting and withholding the amount from basic pay 
     payable for the member or by collecting it from the member 
     directly. No disbursing or certifying officer shall be 
     responsible for any loss resulting from an advance under this 
     subsection.
       ``(c) Premiums To Be Deposited in Fund.--Premium amounts 
     deducted and withheld from the pay of insured members and 
     premium amounts paid directly to the Secretary shall be 
     credited monthly to the Fund.

     ``Sec. 12528. Reserve Mobilization Income Insurance Fund

       ``(a) Establishment.--There is established on the books of 
     the Treasury a fund to be known as the `Reserve Mobilization 
     Income Insurance Fund', which shall be administered by the 
     Secretary of the Treasury. The Fund shall be used for the 
     accumulation of funds in order to finance the liabilities of 
     the insurance program on an actuarially sound basis.
       ``(b) Assets of Fund.--There shall be deposited into the 
     Fund the following:
       ``(1) Premiums paid under section 12527 of this title.
       ``(2) Any amount appropriated to the Fund.
       ``(3) Any return on investment of the assets of the Fund.
       ``(c) Availability.--Amounts in the Fund shall be available 
     for paying insurance benefits under the insurance program.
       ``(d) Investment of Assets of Fund.--The Secretary of the 
     Treasury shall invest such portion of the Fund as is not in 
     the judgment of the Secretary of Defense required to meet 
     current liabilities. Such investments shall be in public debt 
     securities with maturities suitable to the needs of the Fund, 
     as determined by the Secretary of Defense, and bearing 
     interest at rates determined by the Secretary of the 
     Treasury, taking into consideration current market yields on 
     outstanding marketable obligations of the United States of 
     comparable maturities. The income on such investments shall 
     be credited to the Fund.
       ``(e) Annual Accounting.--At the beginning of each fiscal 
     year, the Secretary, in consultation with the Board of 
     Actuaries and the Secretary of the Treasury, shall determine 
     the following:
       ``(1) The projected amount of the premiums to be collected, 
     investment earnings to be received, and any transfers or 
     appropriations to be made for the Fund for that fiscal year.
       ``(2) The amount for that fiscal year of any cumulative 
     unfunded liability (including any negative amount or any gain 
     to the Fund) resulting from payments of benefits.
       ``(3) The amount for that fiscal year (including any 
     negative amount) of any cumulative actuarial gain or loss to 
     the Fund.

     ``Sec. 12529. Board of Actuaries

       ``(a) Actuarial Responsibility.--The Board of Actuaries 
     shall have the actuarial responsibility for the insurance 
     program.
       ``(b) Valuations and Premium Recommendations.--The Board of 
     Actuaries shall carry out periodic actuarial valuations of 
     the benefits under the insurance program and determine a 
     premium rate methodology for the Secretary to use in setting 
     premium rates for the insurance program. The Board shall 
     conduct the first valuation and determine a premium rate 
     methodology not later than six months after the insurance 
     program is established.
       ``(c) Effects of Changed Benefits.--If at the time of any 
     actuarial valuation under subsection (b) there has been a 
     change in benefits under the insurance program that has been 
     made since the last such valuation and such change in 
     benefits increases or decreases the present value of amounts 
     payable from the Fund, the Board of Actuaries shall determine 
     a premium rate methodology, and recommend to the Secretary a 
     premium schedule, for the liquidation of any liability (or 
     actuarial gain to the Fund) resulting from such change and 
     any previous such changes so that the present value of the 
     sum of the scheduled premium payments (or reduction in 
     payments that would otherwise be made) equals the cumulative 
     increase (or decrease) in the present value of such benefits.
       ``(d) Actuarial Gains or Losses.--If at the time of any 
     such valuation the Board of Actuaries determines that there 
     has been an actuarial gain or loss to the Fund as a result of 
     changes in actuarial assumptions since the last valuation or 
     as a result of any differences, between actual and expected 
     experience since the last valuation, the Board shall 
     recommend to the Secretary a premium rate schedule for the 
     amortization of the cumulative gain or loss to the Fund 
     resulting from such changes in assumptions and any previous 
     such changes in assumptions or from the differences in actual 
     and expected experience, respectively, through an increase or 
     decrease in the payments that would otherwise be made to the 
     Fund.
       ``(e) Insufficient Assets.--If at any time liabilities of 
     the Fund exceed assets of the Fund as a result of members of 
     the Ready Reserve being ordered to active duty as described 
     in section 12521(2) of this title, and funds are unavailable 
     to pay benefits completely, the Secretary shall request the 
     President to submit to Congress a request for a special 
     appropriation to cover the unfunded liability. If 
     appropriations are not made to cover an unfunded liability in 
     any fiscal year, the Secretary shall reduce the amount of the 
     benefits paid under the insurance program to a total amount 
     that does not exceed the assets of the Fund expected to 
     accrue by the end of such fiscal year. Benefits that cannot 
     be paid because of such a reduction shall be deferred and may 
     be paid only after and to the extent that additional funds 
     become available.
       ``(f) Definition of Present Value.--The Board of Actuaries 
     shall define the term `present value' for purposes of this 
     subsection.

     ``Sec. 12530. Payment of benefits

       ``(a) Commencement of Payment.--An insured member who 
     serves in excess of 30 days of covered service shall be paid 
     the amount to which such member is entitled on a monthly 
     basis beginning not later than one month after the 30th day 
     of covered service.
       ``(b) Method of Payment.--The Secretary shall prescribe in 
     the regulations the manner in which payments shall be made to 
     the member or to a person designated in accordance with 
     subsection (c).
       ``(c) Designated Recipients.--(1) A member may designate in 
     writing another person (including a spouse, parent, or other 
     person with an insurable interest, as determined in 
     accordance with the regulations prescribed by the Secretary) 
     to receive payments of insurance benefits under the insurance 
     program.
       ``(2) A member may direct that payments of insurance 
     benefits for a person designated under paragraph (1) be 
     deposited with a bank or other financial institution to the 
     credit of the designated person.
       ``(d) Recipients in Event of Death of Insured Member.--Any 
     insurance payable under the insurance program on account of a 
     deceased member's period of covered service shall be paid, 
     upon the establishment of a valid claim, to the beneficiary 
     or beneficiaries which the deceased member designated in 
     writing. If no such designation 

[[Page H387]]
     has been made, the amount shall be payable in accordance with the laws 
     of the State of the member's domicile.

     ``Sec. 12531. Purchase of insurance

       ``(a) Purchase Authorized.--The Secretary may, instead of 
     or in addition to underwriting the insurance program through 
     the Fund, purchase from one or more insurance companies a 
     policy or policies of group insurance in order to provide the 
     benefits required under this chapter. The Secretary may waive 
     any requirement for full and open competition in order to 
     purchase an insurance policy under this subsection.
       ``(b) Eligible Insurers.--In order to be eligible to sell 
     insurance to the Secretary for purposes of subsection (a), an 
     insurance company shall--
       ``(1) be licensed to issue insurance in each of the 50 
     States and in the District of Columbia; and
       ``(2) as of the most recent December 31 for which 
     information is available to the Secretary, have in effect at 
     least one percent of the total amount of insurance that all 
     such insurance companies have in effect in the United States.
       ``(c) Administrative Provisions.--(1) An insurance company 
     that issues a policy for purposes of subsection (a) shall 
     establish an administrative office at a place and under a 
     name designated by the Secretary.
       ``(2) For the purposes of carrying out this chapter, the 
     Secretary may use the facilities and services of any 
     insurance company issuing any policy for purposes of 
     subsection (a), may designate one such company as the 
     representative of the other companies for such purposes, and 
     may contract to pay a reasonable fee to the designated 
     company for its services.
       ``(d) Reinsurance.--The Secretary shall arrange with each 
     insurance company issuing any policy for purposes of 
     subsection (a) to reinsure, under conditions approved by the 
     Secretary, portions of the total amount of the insurance 
     under such policy or policies with such other insurance 
     companies (which meet qualifying criteria prescribed by the 
     Secretary) as may elect to participate in such reinsurance.
       ``(e) Termination.--The Secretary may at any time terminate 
     any policy purchased under this section.

     ``Sec. 12532. Termination for nonpayment of premiums; 
       forfeiture

       ``(a) Termination for Nonpayment.--The coverage of a member 
     under the insurance program shall terminate without prior 
     notice upon a failure of the member to make required monthly 
     payments of premiums for two consecutive months. The 
     Secretary may provide in the regulations for reinstatement of 
     insurance coverage terminated under this subsection.
       ``(b) Forfeiture.--Any person convicted of mutiny, treason, 
     spying, or desertion, or who refuses to perform service in 
     the armed forces or refuses to wear the uniform of any of the 
     armed forces shall forfeit all rights to insurance under this 
     chapter.''.
       (2) The tables of chapters at the beginning of subtitle E, 
     and at the beginning of part II of subtitle E, of title 10, 
     United States Code, are amended by inserting after the item 
     relating to chapter 1213 the following new item:

``1214. Ready Reserve Mobilization Income Insurance........12521''.....

       (b) Effective Date.--The insurance program provided for in 
     chapter 1214 of title 10, United States Code, as added by 
     subsection (a), and the requirement for deductions and 
     contributions for that program shall take effect on September 
     30, 1996, or on any earlier date declared by the Secretary 
     and published in the Federal Register.

     SEC. 513. MILITARY TECHNICIAN FULL-TIME SUPPORT PROGRAM FOR 
                   ARMY AND AIR FORCE RESERVE COMPONENTS.

       (a) Requirement of Annual Authorization of End Strength.--
     (1) Section 115 of title 10, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(g) Congress shall authorize for each fiscal year the end 
     strength for military technicians for each reserve component 
     of the Army and Air Force. Funds available to the Department 
     of Defense for any fiscal year may not be used for the pay of 
     a military technician during that fiscal year unless the 
     technician fills a position that is within the number of such 
     positions authorized by law for that fiscal year for the 
     reserve component of that technician. This subsection applies 
     without regard to section 129 of this title.''.
       (2) The amendment made by paragraph (1) does not apply with 
     respect to fiscal year 1995.
       (b) Authorization for Fiscal Years 1996 and 1997.--For each 
     of fiscal years 1996 and 1997, the minimum number of military 
     technicians, as of the last day of that fiscal year, for the 
     Army and the Air Force (notwithstanding section 129 of title 
     10, United States Code) shall be the following:
       (1) Army National Guard, 25,500.
       (2) Army Reserve, 6,630.
       (3) Air National Guard, 22,906.
       (4) Air Force Reserve, 9,802.
       (c) Administration of Military Technician Program.--(1) 
     Chapter 1007 of title 10, United States Code, is amended by 
     adding at the end the following new section:

     ``Sec. 10216. Military technicians

       ``(a) Priority for Management of Military Technicians.--(1) 
     As a basis for making the annual request to Congress pursuant 
     to section 115 of this title for authorization of end 
     strengths for military technicians of the Army and Air Force 
     reserve components, the Secretary of Defense shall give 
     priority to supporting authorizations for dual status 
     military technicians in the following high-priority units and 
     organizations:
       ``(A) Units of the Selected Reserve that are scheduled to 
     deploy no later than 90 days after mobilization.
       ``(B) Units of the Selected Reserve that are or will deploy 
     to relieve active duty peacetime operations tempo.
       ``(C) Those organizations with the primary mission of 
     providing direct support surface and aviation maintenance for 
     the reserve components of the Army and Air Force, to the 
     extent that the military technicians in such units would 
     mobilize and deploy in a skill that is compatible with their 
     civilian position skill.
       ``(2) For each fiscal year, the Secretary of Defense shall, 
     for the high-priority units and organizations referred to in 
     paragraph (1), seek to achieve a programmed manning level for 
     military technicians that is not less than 90 percent of the 
     programmed manpower structure for those units and 
     organizations for military technicians for that fiscal year.
       ``(3) Military technician authorizations and personnel in 
     high-priority units and organizations specified in paragraph 
     (1) shall be exempt from any requirement (imposed by law or 
     otherwise) for reductions in Department of Defense civilian 
     personnel and shall only be reduced as part of military force 
     structure reductions.
       ``(b) Dual-Status Requirement.--The Secretary of Defense 
     shall require the Secretary of the Army and the Secretary of 
     the Air Force to establish as a condition of employment for 
     each individual who is hired after the date of the enactment 
     of this section as a military technician that the individual 
     maintain membership in the Selected Reserve (so as to be a 
     so-called `dual-status' technician) and shall require that 
     the civilian and military position skill requirements of 
     dual-status military technicians be compatible. No Department 
     of Defense funds may be spent for compensation for any 
     military technician hired after the date of the enactment of 
     this section who is not a member of the Selected Reserve, 
     except that compensation may be paid for up to six months 
     following loss of membership in the Selected Reserve if 
     such loss of membership was not due to the failure to meet 
     military standards.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``10216. Military technicians.''.

       (d) Review of Reserve Component Management Headquarters.--
     (1) The Secretary of Defense shall, within six months after 
     the date of the enactment of this Act, undertake steps to 
     reduce, consolidate, and streamline management headquarters 
     operations of the reserve components. As part of those steps, 
     the Secretary shall identify those military technicians 
     positions in such headquarters operations that are excess to 
     the requirements of those headquarters.
       (2) Of the military technicians positions that are 
     identified under paragraph (1), the Secretary shall 
     reallocate up to 95 percent of the annual funding required to 
     support those positions for the purpose of creating new 
     positions or filling existing positions in the high-priority 
     units and activities specified in section 10216(a) of title 
     10, United States Code, as added by subsection (c).
       (e) Annual Defense Manpower Requirements Report.--Section 
     115a of title 10, United States Code, is amended by adding at 
     the end the following new subsection:
       ``(h) In each such report, the Secretary shall include a 
     separate report on the Army and Air Force military technician 
     programs. The report shall include a presentation, shown by 
     reserve component and shown both as of the end of the 
     preceding fiscal year and for the next fiscal year, of the 
     following:
       ``(1) The number of military technicians required to be 
     employed (as specified in accordance with Department of 
     Defense procedures), the number authorized to be employed 
     under Department of Defense personnel procedures, and the 
     number actually employed.
       ``(2) Within each of the numbers under paragraph (1)--
       ``(A) the number applicable to a reserve component 
     management headquarter organization; and
       ``(B) the number applicable to high-priority units and 
     organizations (as specified in section 10216(a) of this 
     title).
       ``(3) Within each of the numbers under paragraph (1), the 
     numbers of military technicians who are not themselves 
     members of a reserve component (so-called `single-status' 
     technicians), with a further display of such numbers as 
     specified in paragraph (2).''.

     SEC. 514. REVISIONS TO ARMY GUARD COMBAT REFORM INITIATIVE TO 
                   INCLUDE ARMY RESERVE UNDER CERTAIN PROVISIONS 
                   AND MAKE CERTAIN REVISIONS.

       (a) Prior Active Duty Personnel.--Section 1111 of the Army 
     National Guard Combat Readiness Reform Act of 1992 (title XI 
     of Public Law 102-484) is amended--
       (1) in the section heading, by striking out the first three 
     words;
       (2) by striking out subsections (a) and (b) and inserting 
     in lieu thereof the following:
       ``(a) Additional Prior Active Duty Officers.--The Secretary 
     of the Army shall increase the number of qualified prior 
     active-

[[Page H388]]
     duty officers in the Army National Guard by providing a program that 
     permits the separation of officers on active duty with at 
     least two, but less than three, years of active service upon 
     condition that the officer is accepted for appointment in the 
     Army National Guard. The Secretary shall have a goal of 
     having not fewer than 150 officers become members of the Army 
     National Guard each year under this section.
       ``(b) Additional Prior Active Duty Enlisted Members.--The 
     Secretary of the Army shall increase the number of qualified 
     prior active-duty enlisted members in the Army National Guard 
     through the use of enlistments as described in section 8020 
     of the Department of Defense Appropriations Act, 1994 (Public 
     Law 103-139). The Secretary shall enlist not fewer than 1,000 
     new enlisted members each year under enlistments described in 
     that section.''; and
       (3) by striking out subsections (d) and (e).
       (b) Service in the Selected Reserve in Lieu of Active Duty 
     Service for ROTC Graduates.--Section 1112(b) of such Act (106 
     Stat. 2537) is amended by striking out ``National Guard'' 
     before the period at the end and inserting in lieu thereof 
     ``Selected Reserve''.
       (c) Review of Officer Promotions.--Section 1113 of such Act 
     (106 Stat. 2537) is amended--
       (1) in subsection (a), by striking out ``National Guard'' 
     both places it appears and inserting in lieu thereof 
     ``Selected Reserve''; and
       (2) by striking out subsection (b) and inserting in lieu 
     thereof the following:
       ``(b) Coverage of Selected Reserve Combat and Early 
     Deploying Units.--(1) Subsection (a) applies to officers in 
     all units of the Selected Reserve that are designated as 
     combat units or that are designated for deployment within 75 
     days of mobilization.
       ``(2) Subsection (a) shall take effect with respect to 
     officers of the Army Reserve, and with respect to officers of 
     the Army National Guard in units not subject to subsection 
     (a) as of the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 1996, at the end of the 90-
     day period beginning on such date of enactment.''.
       (d) Initial Entry Training and Nondeployable Personnel.--
     Section 1115 of such Act (106 Stat. 2538) is amended--
       (1) in subsections (a) and (b), by striking out ``National 
     Guard'' each place it appears and inserting in lieu thereof 
     ``Selected Reserve''; and
       (2) in subsection (c)--
       (A) by striking out ``a member of the Army National Guard 
     enters the National Guard'' and inserting in lieu thereof ``a 
     member of the Army Selected Reserve enters the Army 
     Selected Reserve''; and
       (B) by striking out ``from the Army National Guard''.
       (e) Accounting of Members Who Fail Physical Deployability 
     Standards.--Section 1116 of such Act (106 Stat. 2539) is 
     amended by striking out ``National Guard'' each place it 
     appears and inserting in lieu thereof ``Selected Reserve''.
       (f) Use of Combat Simulators.--Section 1120 of such Act 
     (106 Stat. 2539) is amended by inserting ``and the Army 
     Reserve'' before the period at the end.

     SEC. 515. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY.

       (a) Associate Units.--Subsection (a) of section 1131 of the 
     National Defense Authorization Act for Fiscal Year 1993 
     (Public Law 102-484; 106 Stat. 2540) is amended to read as 
     follows:
       ``(a) Associate Units.--The Secretary of the Army shall 
     require--
       ``(1) that each ground combat maneuver brigade of the Army 
     National Guard that (as determined by the Secretary) is 
     essential for the execution of the National Military Strategy 
     be associated with an active-duty combat unit; and
       ``(2) that combat support and combat service support units 
     of the Army Selected Reserve that (as determined by the 
     Secretary) are essential for the execution of the National 
     Military Strategy be associated with active-duty units.''.
       (b)  Responsibilities.--Subsection  (b)  of  such  section  
     is amended--
       (1) by striking out ``National Guard combat unit'' in the 
     matter preceding paragraph (1) and inserting in lieu thereof 
     ``National Guard unit or Army Selected Reserve unit that (as 
     determined by the Secretary under subsection (a)) is 
     essential for the execution of the National Military 
     Strategy''; and
       (2) by striking out ``of the National Guard unit'' in 
     paragraphs (1), (2), (3), and (4) and inserting in lieu 
     thereof ``of that unit''.

     SEC. 516. LEAVE FOR MEMBERS OF RESERVE COMPONENTS PERFORMING 
                   PUBLIC SAFETY DUTY.

       (a) Election of Leave To Be Charged.--Subsection (b) of 
     section 6323 of title 5, United States Code, is amended by 
     adding at the end the following: ``Upon the request of an 
     employee, the period for which an employee is absent to 
     perform service described in paragraph (2) may be charged to 
     the employee's accrued annual leave or to compensatory time 
     available to the employee instead of being charged as leave 
     to which the employee is entitled under this subsection. The 
     period of absence may not be charged to sick leave.''.
       (b) Pay for Period of Absence.--Section 5519 of such title 
     is amended by striking out ``entitled to leave'' and 
     inserting in lieu thereof ``granted military leave''.

     SEC. 517. DEPARTMENT OF DEFENSE FUNDING FOR NATIONAL GUARD 
                   PARTICIPATION IN JOINT DISASTER AND EMERGENCY 
                   ASSISTANCE EXERCISES.

       Section 503(a) of title 32, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(a)''; and
       (2) by adding at the end the following:
       ``(2) Paragraph (1) includes authority to provide for 
     participation of the National Guard in conjunction with the 
     Army or the Air Force, or both, in joint exercises for 
     instruction to prepare the National Guard for response to 
     civil emergencies and disasters.''.
                   Subtitle C--Decorations and Awards

     SEC. 521. AWARD OF PURPLE HEART TO PERSONS WOUNDED WHILE HELD 
                   AS PRISONERS OF WAR BEFORE APRIL 25, 1962.

       (a) Award of Purple Heart.--For purposes of the award of 
     the Purple Heart, the Secretary concerned (as defined in 
     section 101 of title 10, United States Code) shall treat a 
     former prisoner of war who was wounded before April 25, 1962, 
     while held as a prisoner of war (or while being taken 
     captive) in the same manner as a former prisoner of war who 
     is wounded on or after that date while held as a prisoner of 
     war (or while being taken captive).
       (b) Standards for Award.--An award of the Purple Heart 
     under subsection (a) shall be made in accordance with the 
     standards in effect on the date of the enactment of this Act 
     for the award of the Purple Heart to persons wounded on or 
     after April 25, 1962.
       (c) Eligible Former Prisoners of War.--A person shall be 
     considered to be a former prisoner of war for purposes of 
     this section if the person is eligible for the prisoner-of-
     war medal under section 1128 of title 10, United States Code.

     SEC. 522. AUTHORITY TO AWARD DECORATIONS RECOGNIZING ACTS OF 
                   VALOR PERFORMED IN COMBAT DURING THE VIETNAM 
                   CONFLICT.

       (a) Findings.--Congress makes the following findings:
       (1) The Ia Drang Valley (Pleiku) campaign, carried out by 
     the Armed Forces in the Ia Drang Valley of Vietnam from 
     October 23, 1965, to November 26, 1965, is illustrative of 
     the many battles during the Vietnam conflict which pitted 
     forces of the United States against North Vietnamese Army 
     regulars and Viet Cong in vicious fighting.
       (2) Accounts of those battles that have been published 
     since the end of that conflict authoritatively document 
     numerous and repeated acts of extraordinary heroism, 
     sacrifice, and bravery on the part of members of the Armed 
     Forces, many of which have never been officially recognized.
       (3) In some of those battles, United States military units 
     suffered substantial losses, with some units sustaining 
     casualties in excess of 50 percent.
       (4) The incidence of heavy casualties throughout the 
     Vietnam conflict inhibited the timely collection of 
     comprehensive and detailed information to support 
     recommendations for awards recognizing acts of heroism, 
     sacrifice, and bravery.
       (5) Subsequent requests to the Secretaries of the military 
     departments for review of award recommendations for such acts 
     have been denied because of restrictions in law and 
     regulations that require timely filing of such 
     recommendations and documented justification.
       (6) Acts of heroism, sacrifice, and bravery performed in 
     combat by members of the Armed Forces deserve appropriate and 
     timely recognition by the people of the United States.
       (7) It is appropriate to recognize acts of heroism, 
     sacrifice, or bravery that are belatedly, but properly, 
     documented by persons who witnessed those acts.
       (b) Waiver of Time Limitations for Recommendations for 
     Awards.--(1) Any decoration covered by paragraph (2) may be 
     awarded, without regard to any time limit imposed by law or 
     regulation for a recommendation for such award to any person 
     for actions by that person in the Southeast Asia theater of 
     operations while serving on active duty during the Vietnam 
     era. The waiver of time limitations under this paragraph 
     applies only in the case of awards for acts of valor for 
     which a request for consideration is submitted under 
     subsection (c).
       (2) Paragraph (1) applies to any decoration (including any 
     device in lieu of a decoration) that, during or after the 
     Vietnam era and before the date of the enactment of this Act, 
     was authorized by law or under regulations of the Department 
     of Defense or the military department concerned to be awarded 
     to members of the Armed Forces for acts of valor.
       (c) Review of Requests for Consideration of Awards.--(1) 
     The Secretary of each military department shall review each 
     request for consideration of award of a decoration described 
     in subsection (b) that are received by the Secretary during 
     the one-year period beginning on the date of enactment of 
     this Act.
       (2) The Secretaries shall begin the review within 30 days 
     after the date of the enactment of this Act and shall 
     complete the review of each request for consideration not 
     later than one year after the date on which the request is 
     received.
       (3) The Secretary may use the same process for carrying out 
     the review as the Secretary uses for reviewing other 
     recommendations for award of decorations to members of the 
     Armed Forces under the Secretary's jurisdiction for valorous 
     acts.
     
[[Page H389]]

       (d) Report.--(1) Upon completing the review of each such 
     request under subsection (c), the Secretary shall submit a 
     report on the review to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives.
       (2) The report shall include, with respect to each request 
     for consideration received, the following information:
       (A) A summary of the request for consideration.
       (B) The findings resulting from the review.
       (C) The final action taken on the request for 
     consideration.
       (e) Definition.--For purposes of this section:
       (1) The term ``Vietnam era'' has the meaning given that 
     term in section 101 of title 38, United States Code.
       (2) The term ``active duty'' has the meaning given that 
     term in section 101 of title 10, United States Code.

     SEC. 523. MILITARY INTELLIGENCE PERSONNEL PREVENTED BY 
                   SECRECY FROM BEING CONSIDERED FOR DECORATIONS 
                   AND AWARDS.

       (a) Waiver on Restrictions of Awards.--(1) Any decoration 
     covered by paragraph (2) may be awarded, without regard to 
     any time limit imposed by law or regulation for a 
     recommendation for such award, to any person for an act, 
     achievement, or service that the person performed in carrying 
     out military intelligence duties during the period beginning 
     on January 1, 1940, and ending on December 31, 1990.
       (2) Paragraph (1) applies to any decoration (including any 
     device in lieu of a decoration) that, during or after the 
     period described in paragraph (1) and before the date of the 
     enactment of this Act, was authorized by law or under the 
     regulations of the Department of Defense or the military 
     department concerned to be awarded to a person for an act, 
     achievement, or service performed by that person while 
     serving on active duty.
       (b) Review of Requests for Consideration of Awards.--(1) 
     The Secretary of each military department shall review each 
     request for consideration of award of a decoration described 
     in subsection (a) that is received by the Secretary during 
     the one-year period beginning on the date of the enactment of 
     this Act.
       (2) The Secretaries shall begin the review within 30 days 
     after the date of the enactment of this Act and shall 
     complete the review of each request for consideration not 
     later than one year after the date on which the request is 
     received.
       (3) The Secretary may use the same process for carrying out 
     the review as the Secretary uses for reviewing other 
     recommendations for awarding decorations to members of the 
     Armed Forces under the Secretary's jurisdiction for acts, 
     achievements, or service.
       (c) Report.--(1) Upon completing the review of each such 
     request under subsection (b), the Secretary shall submit a 
     report on the review to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives.
       (2) The report shall include, with respect to each request 
     for consideration reviewed, the following information:
       (A) A summary of the request for consideration.
       (B) The findings resulting from the review.
       (C) The final action taken on the request for 
     consideration.
       (D) Administrative or legislative recommendations to 
     improve award procedures with respect to military 
     intelligence personnel.
       (d) Definition.--For purposes of this section, the term 
     ``active duty'' has the meaning given such term in section 
     101 of title 10, United States Code.

     SEC. 524. REVIEW REGARDING UPGRADING OF DISTINGUISHED-SERVICE 
                   CROSSES AND NAVY CROSSES AWARDED TO ASIAN-
                   AMERICANS AND NATIVE AMERICAN PACIFIC ISLANDERS 
                   FOR WORLD WAR II SERVICE.

       (a) Review Required.--(1) The Secretary of the Army shall 
     review the records relating to each award of the 
     Distinguished-Service Cross, and the Secretary of the Navy 
     shall review the records relating to each award of the Navy 
     Cross, that was awarded to an Asian-American or a Native 
     American Pacific Islander with respect to service as a member 
     of the Armed Forces during World War II. The purpose of the 
     review shall be to determine whether any such award should be 
     upgraded to the Medal of Honor.
       (2) If the Secretary concerned determines, based upon the 
     review under paragraph (1), that such an upgrade is 
     appropriate in the case of any person, the Secretary shall 
     submit to the President a recommendation that the President 
     award the Medal of Honor to that person.
       (b) Waiver of Time Limitations.--A Medal of Honor may be 
     awarded to a person referred to in subsection (a) in 
     accordance with a recommendation of the Secretary concerned 
     under that subsection without regard to--
       (1) section 3744, 6248, or 8744 of title 10, United States 
     Code, as applicable; and
       (2) any regulation or other administrative restriction on--
       (A) the time for awarding the Medal of Honor; or
       (B) the awarding of the Medal of Honor for service for 
     which a Distinguished-Service Cross or Navy Cross has been 
     awarded.
       (c) Definition.--For purposes of this section, the term 
     ``Native American Pacific Islander'' means a Native Hawaiian 
     and any other Native American Pacific Islander within 
     the meaning of the Native American Programs Act of 1974 
     (42 U.S.C. 2991 et seq.).

     SEC. 525. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL 
                   BASED UPON SERVICE IN EL SALVADOR.

       (a) In General.--For the purpose of determining eligibility 
     of members and former members of the Armed Forces for the 
     Armed Forces Expeditionary Medal, the country of El Salvador 
     during the period beginning on January 1, 1981 and ending on 
     February 1, 1992, shall be treated as having been designated 
     as an area and a period of time in which members of the Armed 
     Forces participated in operations in significant numbers and 
     otherwise met the general requirements for the award of that 
     medal.
       (b) Individual Determination.--The Secretary of the 
     military department concerned shall determine whether 
     individual members or former members of the Armed Forces who 
     served in El Salvador during the period beginning on January 
     1, 1981 and ending on February 1, 1992 meet the individual 
     service requirements for award of the Armed Forces 
     Expeditionary Medal as established in applicable regulations. 
     Such determinations shall be made as expeditiously as 
     possible after the date of the enactment of this Act.

     SEC. 526. PROCEDURE FOR CONSIDERATION OF MILITARY DECORATIONS 
                   NOT PREVIOUSLY SUBMITTED IN TIMELY FASHION.

       (a) In General.--Chapter 57 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1130. Consideration of proposals for decorations not 
       previously submitted in timely fashion: procedures for 
       review and recommendation

       ``(a) Upon request of a Member of Congress, the Secretary 
     concerned shall review a proposal for the award or 
     presentation of a decoration (or the upgrading of a 
     decoration), either for an individual or a unit, that is not 
     otherwise authorized to be presented or awarded due to 
     limitations established by law or policy for timely 
     submission of a recommendation for such award or 
     presentation. Based upon such review, the Secretary shall 
     make a determination as to the merits of approving the award 
     or presentation of the decoration and the other 
     determinations necessary to comply with subsection (b).
       ``(b) Upon making a determination under subsection (a) as 
     to the merits of approving the award or presentation of the 
     decoration, the Secretary concerned shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives and to 
     the requesting member of Congress notice in writing of one of 
     the following:
       ``(1) The award or presentation of the decoration does not 
     warrant approval on the merits.
       ``(2) The award or presentation of the decoration warrants 
     approval and a waiver by law of time restrictions prescribed 
     by law is recommended.
       ``(3) The award or presentation of the decoration warrants 
     approval on the merits and has been approved as an exception 
     to policy.
       ``(4) The award or presentation of the decoration warrants 
     approval on the merits, but a waiver of the time restrictions 
     prescribed by law or policy is not recommended.
     A notice under paragraph (1) or (4) shall be accompanied by a 
     statement of the reasons for the decision of the Secretary.
       ``(c) Determinations under this section regarding the award 
     or presentation of a decoration shall be made in accordance 
     with the same procedures that apply to the approval or 
     disapproval of the award or presentation of a decoration when 
     a recommendation for such award or presentation is submitted 
     in a timely manner as prescribed by law or regulation.
       ``(d) In this section:
       ``(1) The term `Member of Congress' means--
       ``(A) a Senator; or
       ``(B) a Representative in, or a Delegate or Resident 
     Commissioner to, Congress.
       ``(2) The term `decoration' means any decoration or award 
     that may be presented or awarded to a member or unit of the 
     armed forces.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1130. Consideration of proposals for decorations not previously 
              submitted in timely fashion: procedures for review and 
              recommendation.''.
                 Subtitle D--Officer Education Programs

                       PART I--SERVICE ACADEMIES

     SEC. 531. REVISION OF SERVICE OBLIGATION FOR GRADUATES OF THE 
                   SERVICE ACADEMIES.

       (a) Military Academy.--Section 4348(a)(2)(B) of title 10, 
     United States Code, is amended by striking out ``six years'' 
     and inserting in lieu thereof ``five years''.
       (b) Naval Academy.--Section 6959(a)(2)(B) of such title is 
     amended by striking out ``six years'' and inserting in lieu 
     thereof ``five years''.
       (c) Air Force Academy.--Section 9348(a)(2)(B) of such title 
     is amended by striking out ``six years'' and inserting in 
     lieu thereof ``five years''.
       (d) Requirement for Review and Report.--(1) The Secretary 
     of Defense shall review the effects that each of various 
     periods 

[[Page H390]]
     of obligated active duty service for graduates of the United States 
     Military Academy, the United States Naval Academy, and the 
     United States Air Force Academy would have on the number and 
     quality of the eligible and qualified applicants seeking 
     appointment to such academies.
       (2) Not later than April 1, 1996, the Secretary shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives a report on the Secretary's findings under 
     the review, together with any recommended legislation 
     regarding the minimum periods of obligated active duty 
     service for graduates of the United States Military Academy, 
     the United States Naval Academy, and the United States Air 
     Force Academy.
       (e) Applicability.--The amendments made by this section 
     apply to persons first admitted to the United States Military 
     Academy, United States Naval Academy, and United States Air 
     Force Academy after December 31, 1991.

     SEC. 532. NOMINATIONS TO SERVICE ACADEMIES FROM COMMONWEALTH 
                   OF THE NORTHERN MARIANAS ISLANDS.

       (a) Military Academy.--Section 4342(a) of title 10, United 
     States Code, is amended by inserting after paragraph (9) the 
     following new paragraph:
       ``(10) One cadet from the Commonwealth of the Northern 
     Marianas Islands, nominated by the resident representative 
     from the commonwealth.''.
       (b) Naval Academy.--Section 6954(a) of title 10, United 
     States Code, is amended by inserting after paragraph (9) the 
     following new paragraph:
       ``(10) One from the Commonwealth of the Northern Marianas 
     Islands, nominated by the resident representative from the 
     commonwealth.''.
       (c) Air Force Academy.--Section 9342(a) of title 10, United 
     States Code, is amended by inserting after paragraph (9) the 
     following new paragraph:
       ``(10) One cadet from the Commonwealth of the Northern 
     Marianas Islands, nominated by the resident representative 
     from the commonwealth.''.

     SEC. 533. REPEAL OF REQUIREMENT FOR ATHLETIC DIRECTOR AND 
                   NONAPPROPRIATED FUND ACCOUNT FOR THE ATHLETICS 
                   PROGRAMS AT THE SERVICE ACADEMIES.

       (a) United States Military Academy.--(1) Section 4357 of 
     title 10, United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 403 
     of such title is amended by striking out the item relating to 
     section 4357.
       (b) United States Naval Academy.--Section 556 of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 2774) is amended by striking 
     out subsections (b) and (e).
       (c) United States Air Force Academy.--(1) Section 9356 of 
     title 10, United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 903 
     of such title is amended by striking out the item relating to 
     section 9356.

     SEC. 534. REPEAL OF REQUIREMENT FOR PROGRAM TO TEST 
                   PRIVATIZATION OF SERVICE ACADEMY PREPARATORY 
                   SCHOOLS.

       Section 536 of the National Defense Authorization Act for 
     Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 4331 note) is 
     repealed.

                PART II--RESERVE OFFICER TRAINING CORPS

     SEC. 541. ROTC ACCESS TO CAMPUSES.

       (a) In General.--Chapter 49 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 983. Institutions of higher education that prohibit 
       Senior ROTC units: denial of Department of Defense grants 
       and contracts

       ``(a) Denial of Department of Defense Grants and 
     Contracts.--(1) No funds appropriated or otherwise available 
     to the Department of Defense may be made obligated by 
     contract or by grant (including a grant of funds to be 
     available for student aid) to any institution of higher 
     education that, as determined by the Secretary of Defense, 
     has an anti-ROTC policy and at which, as determined by the 
     Secretary, the Secretary would otherwise maintain or seek to 
     establish a unit of the Senior Reserve Officer Training Corps 
     or at which the Secretary would otherwise enroll or seek to 
     enroll students for participation in a unit of the Senior 
     Reserve Officer Training Corps at another nearby institution 
     of higher education.
       ``(2) In the case of an institution of higher education 
     that is ineligible for Department of Defense grants and 
     contracts by reason of paragraph (1), the prohibition under 
     that paragraph shall cease to apply to that institution upon 
     a determination by the Secretary that the institution no 
     longer has an anti-ROTC policy.
       ``(b) Notice of Determination.--Whenever the Secretary 
     makes a determination under subsection (a) that an 
     institution has an anti-ROTC policy, or that an institution 
     previously determined to have an anti-ROTC policy no longer 
     has such a policy, the Secretary--
       ``(1) shall transmit notice of that determination to the 
     Secretary of Education and to the Committee on Armed Services 
     of the Senate and the Committee on National Security of the 
     House of Representatives; and
       ``(2) shall publish in the Federal Register notice of that 
     determination and of the effect of that determination under 
     subsection (a)(1) on the eligibility of that institution for 
     Department of Defense grants and contracts.
       ``(c) Semiannual Notice in Federal Register.--The Secretary 
     shall publish in the Federal Register once every six months a 
     list of each institution of higher education that is 
     currently ineligible for Department of Defense grants and 
     contracts by reason of a determination of the Secretary under 
     subsection (a).
       ``(d) Anti-ROTC Policy.--In this section, the term `anti-
     ROTC policy' means a policy or practice of an institution of 
     higher education that--
       ``(1) prohibits, or in effect prevents, the Secretary of 
     Defense from maintaining or establishing a unit of the Senior 
     Reserve Officer Training Corps at that institution, or
       ``(2) prohibits, or in effect prevents, a student at that 
     institution from enrolling in a unit of the Senior Reserve 
     Officer Training Corps at another institution of higher 
     education.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``983. Institutions of higher education that prohibit Senior ROTC 
              units: denial of Department of Defense grants and 
              contracts.''.

     SEC. 542. ROTC SCHOLARSHIPS FOR THE NATIONAL GUARD.

       (a) Clarification of Restriction on Active Duty.--Paragraph 
     (2) of section 2107(h) of title 10, United States Code, is 
     amended by inserting ``full-time'' before ``active duty'' in 
     the second sentence.
       (b) Redesignation of ROTC Scholarships.--Such paragraph is 
     further amended by inserting after the first sentence the 
     following new sentence: ``A cadet designated under this 
     paragraph who, having initially contracted for service as 
     provided in subsection (b)(5)(A) and having received 
     financial assistance for two years under an award providing 
     for four years of financial assistance under this section, 
     modifies such contract with the consent of the Secretary of 
     the Army to provide for service as described in subsection 
     (b)(5)(B), may be counted, for the year in which the contract 
     is modified, toward the number of appointments required under 
     the preceding sentence for financial assistance awarded for a 
     period of four years.''.

     SEC. 543. DELAY IN REORGANIZATION OF ARMY ROTC REGIONAL 
                   HEADQUARTERS STRUCTURE.

       (a) Delay.--The Secretary of the Army may not take any 
     action to reorganize the regional headquarters and basic camp 
     structure of the Reserve Officers Training Corps program of 
     the Army until six months after the date on which the report 
     required by subsection (d) is submitted.
       (b) Cost-Benefit Analysis.--The Secretary of the Army shall 
     conduct a comparative cost-benefit analysis of various 
     options for the reorganization of the regional headquarters 
     and basic camp structure of the Army ROTC program. As part of 
     such analysis, the Secretary shall measure each 
     reorganization option considered against a common set of 
     criteria.
       (c) Selection of Reorganization Option for 
     Implementation.--Based on the findings resulting from the 
     cost-benefit analysis under subsection (b) and such other 
     factors as the Secretary considers appropriate, the Secretary 
     shall select one reorganization option for implementation. 
     The Secretary may select an option for implementation only if 
     the Secretary finds that the cost-benefit analysis and other 
     factors considered clearly demonstrate that such option, 
     better than any other option considered--
       (1) provides the structure to meet projected mission 
     requirements;
       (2) achieves the most significant personnel and cost 
     savings;
       (3) uses existing basic and advanced camp facilities to the 
     maximum extent possible;
       (4) minimizes additional military construction costs; and
       (5) makes maximum use of the reserve components to support 
     basic and advanced camp operations, thereby minimizing the 
     effect of those operations on active duty units.
       (d) Report.--Not later than 60 days after the date of the 
     enactment of this Act, the Secretary of the Army shall submit 
     to the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives a report describing the reorganization option 
     selected under subsection (c). The report shall include the 
     results of the cost-benefit analysis under subsection (b) and 
     a detailed rationale for the reorganization option selected.

     SEC. 544. DURATION OF FIELD TRAINING OR PRACTICE CRUISE 
                   REQUIRED UNDER THE SENIOR RESERVE OFFICERS' 
                   TRAINING CORPS PROGRAM.

       Section 2104(b)(6)(A)(ii) of title 10, United States Code, 
     is amended by striking out ``not less than six weeks' 
     duration'' and inserting in lieu thereof ``a duration''.

     SEC. 545. ACTIVE DUTY OFFICERS DETAILED TO ROTC DUTY AT 
                   SENIOR MILITARY COLLEGES TO SERVE AS COMMANDANT 
                   AND ASSISTANT COMMANDANT OF CADETS AND AS 
                   TACTICAL OFFICERS.

       (a) In General.--Chapter 103 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2111a. Detail of officers to senior military colleges

       ``(a) Detail of Officers To Serve as Commandant or 
     Assistant Commandant of Cadets.--(1) Upon the request of a 
     senior military college, the Secretary of Defense may 

[[Page H391]]
     detail an officer on the active-duty list to serve as Commandant of 
     Cadets at that college or (in the case of a college with an 
     Assistant Commandant of Cadets) detail an officer on the 
     active-duty list to serve as Assistant Commandant of Cadets 
     at that college (but not both).
       ``(2) In the case of an officer detailed as Commandant of 
     Cadets, the officer may, upon the request of the college, be 
     assigned from among the Professor of Military Science, the 
     Professor of Naval Science (if any), and the Professor of 
     Aerospace Science (if any) at that college or may be in 
     addition to any other officer detailed to that college in 
     support of the program.
       ``(3) In the case of an officer detailed as Assistant 
     Commandant of Cadets, the officer may, upon the request of 
     the college, be assigned from among officers otherwise 
     detailed to duty at that college in support of the program or 
     may be in addition to any other officer detailed to that 
     college in support of the program.
       ``(b) Designation of Officers as Tactical Officers.--Upon 
     the request of a senior military college, the Secretary of 
     Defense may authorize officers (other than officers covered 
     by subsection (a)) who are detailed to duty as instructors at 
     that college to act simultaneously as tactical officers (with 
     or without compensation) for the Corps of Cadets at that 
     college.
       ``(c) Detail of Officers.--The Secretary of a military 
     department shall designate officers for detail to the program 
     at a senior military college in accordance with criteria 
     provided by the college. An officer may not be detailed to a 
     senior military college without the approval of that college.
       ``(d) Senior Military Colleges.--The senior military 
     colleges are the following:
       ``(1) Texas A&M University.
       ``(2) Norwich College.
       ``(3) The Virginia Military Institute.
       ``(4) The Citadel.
       ``(5) Virginia Polytechnic Institute and State University.
       ``(6) North Georgia College.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2111a. Detail of officers to senior military colleges.''.
        Subtitle E--Miscellaneous Reviews, Studies, and Reports

     SEC. 551. REPORT CONCERNING APPROPRIATE FORUM FOR JUDICIAL 
                   REVIEW OF DEPARTMENT OF DEFENSE PERSONNEL 
                   ACTIONS.

       (a) Establishment.--The Secretary of Defense shall 
     establish an advisory committee to consider issues relating 
     to the appropriate forum for judicial review of Department of 
     Defense administrative personnel actions.
       (b) Membership.--(1) The committee shall be composed of 
     five members, who shall be appointed by the Secretary of 
     Defense after consultation with the Attorney General and the 
     Chief Justice of the United States.
       (2) All members of the committee shall be appointed not 
     later than 30 days after the date of the enactment of this 
     Act.
       (c) Duties.--The committee shall review, and provide 
     findings and recommendations regarding, the following matters 
     with respect to judicial review of administrative personnel 
     actions of the Department of Defense:
       (1) Whether the existing forum for such review through the 
     United States district courts provides appropriate and 
     adequate review of such actions.
       (2) Whether jurisdiction to conduct judicial review of such 
     actions should be established in a single court in order to 
     provide a centralized review of such actions and, if so, in 
     which court that jurisdiction should be vested.
       (d) Report.--(1) Not later than December 15, 1996, the 
     committee shall submit to the Secretary of Defense a report 
     setting forth its findings and recommendations, including its 
     recommendations pursuant to subsection (c).
       (2) Not later than January 1, 1997, the Secretary of 
     Defense, after consultation with the Attorney General, shall 
     transmit the committee's report to Congress. The Secretary 
     may include in the transmittal any comments on the report 
     that the Secretary or the Attorney General consider 
     appropriate.
       (e) Termination of Committee.--The committee shall 
     terminate 30 days after the date of the submission of its 
     report to Congress under subsection (d)(2).

     SEC. 552. COMPTROLLER GENERAL REVIEW OF PROPOSED ARMY END 
                   STRENGTH ALLOCATIONS.

       (a) In General.--During fiscal years 1996 through 2001, the 
     Comptroller General of the United States shall analyze the 
     plans of the Secretary of the Army for the allocation of 
     assigned active component end strengths for the Army through 
     the requirements process known as Total Army Analysis 2003 
     and through any subsequent similar requirements process of 
     the Army that is conducted before 2002. The Comptroller 
     General's analysis shall consider whether the proposed active 
     component end strengths and planned allocation of forces for 
     that period will be sufficient to implement the national 
     military strategy. In monitoring those plans, the Comptroller 
     General shall determine the extent to which the Army will be 
     able during that period--
       (1) to man fully the combat force based on the projected 
     active component Army end strength for each of fiscal years 
     1996 through 2001;
       (2) to meet the support requirements for the force and 
     strategy specified in the report of the Bottom-Up Review, 
     including requirements for operations other than war; and
       (3) to streamline further Army infrastructure in order to 
     eliminate duplication and inefficiencies and replace active 
     duty personnel in overhead positions, whenever practicable, 
     with civilian or reserve personnel.
       (b) Access to Documents, Etc.--The Secretary of the Army 
     shall ensure that the Comptroller General is provided access, 
     on a timely basis and in accordance with the needs of the 
     Comptroller General, to all analyses, models, memoranda, 
     reports, and other documents prepared or used in connection 
     with the requirements process of the Army known as Total Army 
     Analysis 2003 and any subsequent similar requirements process 
     of the Army that is conducted before 2002.
       (c) Annual Report.--Not later than March 1 of each year 
     through 2002, the Comptroller General shall submit to 
     Congress a report on the findings and conclusions of the 
     Comptroller General under this section.

     SEC. 553. REPORT ON MANNING STATUS OF HIGHLY DEPLOYABLE 
                   SUPPORT UNITS.

       (a) Report.--Not later than September 30, 1996, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report on the units of the 
     Armed Forces under the Secretary's jurisdiction--
       (1) that (as determined by the Secretary of the military 
     department concerned) are high-priority support units that 
     would deploy early in a contingency operation or other 
     crisis; and
       (2) that are, as a matter of policy, managed at less than 
     100 percent of their authorized strengths.
       (b) Matters To Be Included.--The Secretary shall include in 
     the report--
       (1) the number of such high-priority support units (shown 
     by type of unit) that are so managed;
       (2) the level of manning within such high-priority support 
     units; and
       (3) with respect to each such unit, either the 
     justification for manning of less than 100 percent or the 
     status of corrective action.

     SEC. 554. REVIEW OF SYSTEM FOR CORRECTION OF MILITARY 
                   RECORDS.

       (a) Review of Procedures.--The Secretary of Defense shall 
     review the system and procedures for the correction of 
     military records used by the Secretaries of the military 
     departments in the exercise of authority under section 1552 
     of title 10, United States Code, in order to identify 
     potential improvements that could be made in the process for 
     correcting military records to ensure fairness, equity, and 
     (consistent with appropriate service to applicants) maximum 
     efficiency. The Secretary may not delegate responsibility for 
     the review to an officer or official of a military 
     department.
       (b) Issues Reviewed.--In conducting the review, the 
     Secretary shall consider (with respect to each Board for the 
     Correction of Military Records) the following:
       (1) The composition of the board and of the support staff 
     for the board.
       (2) Timeliness of final action.
       (3) Independence of deliberations by the civilian board.
       (4) The authority of the Secretary of the military 
     department concerned to modify the recommendations of the 
     board.
       (5) Burden of proof and other evidentiary standards.
       (6) Alternative methods for correcting military records.
       (7) Whether the board should be consolidated with the 
     Discharge Review Board of the military department.
       (c) Report.--Not later than April 1, 1996, the Secretary of 
     Defense shall submit a report on the results of the 
     Secretary's review under this section to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives. The report shall 
     contain the recommendations of the Secretary for improving 
     the process for correcting military records in order to 
     achieve the objectives referred to in subsection (a).

     SEC. 555. REPORT ON THE CONSISTENCY OF REPORTING OF 
                   FINGERPRINT CARDS AND FINAL DISPOSITION FORMS 
                   TO THE FEDERAL BUREAU OF INVESTIGATION.

       (a) Report.--The Secretary of Defense shall submit to 
     Congress a report on the consistency with which fingerprint 
     cards and final disposition forms, as described in Criminal 
     Investigations Policy Memorandum 10 issued by the Defense 
     Inspector General on March 25, 1987, are reported by the 
     Defense Criminal Investigative Organizations to the Federal 
     Bureau of Investigation for inclusion in the Bureau's 
     criminal history identification files. The report shall be 
     prepared in consultation with the Director of the Federal 
     Bureau of Investigation.
       (b) Matters To Be Included.--In the report, the Secretary 
     shall--
       (1) survey fingerprint cards and final disposition forms 
     filled out in the past 24 months by each investigative 
     organization;
       (2) compare the fingerprint cards and final disposition 
     forms filled out to all judicial and nonjudicial procedures 
     initiated as a result of actions taken by each investigative 
     service in the past 24 months;
     
[[Page H392]]

       (3) account for any discrepancies between the forms filled 
     out and the judicial and nonjudicial procedures initiated;
       (4) compare the fingerprint cards and final disposition 
     forms filled out with the information held by the Federal 
     Bureau of Investigation criminal history identification 
     files;
       (5) identify any weaknesses in the collection of 
     fingerprint cards and final disposition forms and in the 
     reporting of that information to the Federal Bureau of 
     Investigation; and
       (6) determine whether or not other law enforcement 
     activities of the military services collect and report such 
     information or, if not, should collect and report such 
     information.
       (c) Submission of Report.--The report shall be submitted 
     not later than one year after the date of the enactment of 
     this Act.
       (d) Definition.--For the purposes of this section, the term 
     ``criminal history identification files'', with respect to 
     the Federal Bureau of Investigation, means the criminal 
     history record system maintained by the Federal Bureau of 
     Investigation based on fingerprint identification and any 
     other method of positive identification.
                       Subtitle F--Other Matters

     SEC. 561. EQUALIZATION OF ACCRUAL OF SERVICE CREDIT FOR 
                   OFFICERS AND ENLISTED MEMBERS.

       (a) Enlisted Service Credit.--Section 972 of title 10, 
     United States Code, is amended--
       (1) by inserting ``(a) Enlisted Members Required To Make Up 
     Time Lost.--'' before ``An enlisted member'';
       (2) by striking out paragraphs (3) and (4) and inserting in 
     lieu thereof the following:
       ``(3) is confined by military or civilian authorities for 
     more than one day in connection with a trial, whether before, 
     during, or after the trial; or''; and
       (3) by redesignating paragraph (5) as paragraph (4).
       (b) Officer Service Credit.--Such section is further 
     amended by adding at the end the following:
       ``(b) Officers Not Allowed Service Credit for Time Lost.--
     In the case of an officer of an armed force who after the 
     date of the enactment of the National Defense Authorization 
     Act for Fiscal Year 1996--
       ``(1) deserts;
       ``(2) is absent from his organization, station, or duty for 
     more than one day without proper authority, as determined by 
     competent authority;
       ``(3) is confined by military or civilian authorities for 
     more than one day in connection with a trial, whether before, 
     during, or after the trial; or
       ``(4) is unable for more than one day, as determined by 
     competent authority, to perform his duties because of 
     intemperate use of drugs or alcoholic liquor, or because of 
     disease or injury resulting from his misconduct;
     the period of such desertion, absence, confinement, or 
     inability to perform duties may not be counted in computing, 
     for any purpose other than basic pay under section 205 of 
     title 37, the officer's length of service.''.
       (c) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 972. Members: effect of time lost

       (2) The item relating to section 972 in the table of 
     sections at the beginning of chapter 49 of such title is 
     amended to read as follows:

``972. Members: effect of time lost.''.

       (d) Conforming Amendments.--(1) Section 1405(c) is 
     amended--
       (A) by striking out ``Made Up.--Time'' and inserting in 
     lieu thereof ``Made Up or Excluded.--(1) Time'';
       (B) by striking out ``section 972'' and inserting in lieu 
     thereof ``section 972(a)'';
       (C) by inserting after ``of this title'' the following: ``, 
     or required to be made up by an enlisted member of the Navy, 
     Marine Corps, or Coast Guard under that section with respect 
     to a period of time after the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 1995,''; 
     and
       (D) by adding at the end the following:
       ``(2) Section 972(b) of this title excludes from 
     computation of an officer's years of service for purposes of 
     this section any time identified with respect to that officer 
     under that section.''.
       (2) Chapter 367 of such title is amended--
       (A) in section 3925(b), by striking out ``section 972'' and 
     inserting in lieu thereof ``section 972(a)''; and
       (B) by adding at the end of section 3926 the following new 
     subsection:
       ``(e) Section 972(b) of this title excludes from 
     computation of an officer's years of service for purposes of 
     this section any time identified with respect to that officer 
     under that section.''.
       (3)(A) Chapter 571 of such title is amended by inserting 
     after section 6327 the following new section:

     ``Sec. 6328. Computation of years of service: voluntary 
       retirement

       ``(a) Enlisted Members.--Time required to be made up under 
     section 972(a) of this title after the date of the enactment 
     of this section may not be counted in computing years of 
     service under this chapter.
       ``(b) Officers.--Section 972(b) of this title excludes from 
     computation of an officer's years of service for purposes of 
     this chapter any time identified with respect to that officer 
     under that section.''.
       (B) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     6327 the following new item:

``6328. Computation of years of service: voluntary retirement.''.

       (4) Chapter 867 of such title is amended--
       (A) in section 8925(b), by striking out ``section 972'' and 
     inserting in lieu thereof ``section 972(a)''; and
       (B) by adding at the end of section 8926 the following new 
     subsection:
       ``(d) Section 972(b) of this title excludes from 
     computation of an officer's years of service for purposes of 
     this section any time identified with respect to that officer 
     under that section.''.
       (e) Effective Date and Applicability.--The amendments made 
     by this section shall take effect on the date of the 
     enactment of this Act and shall apply to any period of time 
     covered by section 972 of title 10, United States Code, that 
     occurs after that date.

     SEC. 562. ARMY RANGER TRAINING.

       (a) In General.--(1) Chapter 401 of title 10, United States 
     Code, is amended by inserting after section 4302 the 
     following new section:

     ``Sec. 4303. Army Ranger training: instructor staffing; 
       safety

       ``(a) Levels of Personnel Assigned.--(1) The Secretary of 
     the Army shall ensure that at all times the number of 
     officers, and the number of enlisted members, permanently 
     assigned to the Ranger Training Brigade (or other 
     organizational element of the Army primarily responsible for 
     ranger student training) are not less than 90 percent of the 
     required manning spaces for officers, and for enlisted 
     members, respectively, for that brigade.
       ``(2) In this subsection, the term `required manning 
     spaces' means the number of personnel spaces for officers, 
     and the number of personnel spaces for enlisted members, that 
     are designated in Army authorization documents as the number 
     required to accomplish the missions of a particular unit or 
     organization.
       ``(b) Training Safety Cells.--(1) The Secretary of the Army 
     shall establish and maintain an organizational entity known 
     as a `safety cell' as part of the organizational elements of 
     the Army responsible for conducting each of the three major 
     phases of the Ranger Course. The safety cell in each 
     different geographic area of Ranger Course training shall be 
     comprised of personnel who have sufficient continuity and 
     experience in that geographic area of such training to be 
     knowledgeable of the local conditions year-round, including 
     conditions of terrain, weather, water, and climate and other 
     conditions and the potential effect on those conditions on 
     Ranger student training and safety.
       ``(2) Members of each safety cell shall be assigned in 
     sufficient numbers to serve as advisers to the officers in 
     charge of the major phase of Ranger training and shall assist 
     those officers in making informed daily `go' and `no-go' 
     decisions regarding training in light of all relevant 
     conditions, including conditions of terrain, weather, water, 
     and climate and other conditions.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     4302 the following new item:

``4303. Army Ranger training: instructor staffing; safety.''.

       (b) Accomplishment of Required Manning Levels.--(1) If, as 
     of the date of the enactment of this Act, the number of 
     officers, and the number of enlisted members, permanently 
     assigned to the Army Ranger Training Brigade are not each at 
     (or above) the requirement specified in subsection (a) of 
     section 4303 of title 10, United States Code, as added by 
     subsection (a), the Secretary of the Army shall--
       (A) take such steps as necessary to accomplish that 
     requirement within 12 months after such date of enactment; 
     and
       (B) submit to Congress, not later than 90 days after such 
     date of enactment, a plan to achieve and maintain that 
     requirement.
       (2) The requirement specified in subsection (a) of section 
     4303 of title 10, United States Code, as added by subsection 
     (a), shall expire two years after the date (on or after the 
     date of the enactment of this Act) on which the required 
     manning levels referred to in paragraph (1) are first 
     attained.
       (c) GAO Assessment.--(1) Not later than one year the date 
     of the enactment of this Act, the Comptroller General shall 
     submit to Congress a report providing a preliminary 
     assessment of the implementation and effectiveness of all 
     corrective actions taken by the Army as a result of the 
     February 1995 accident at the Florida Ranger Training Camp, 
     including an evaluation of the implementation of the required 
     manning levels established by subsection (a) of section 4303 
     of title 10, United States Code, as added by subsection (a).
       (2) At the end of the two-year period specified in 
     subsection (b)(2), the Comptroller General shall submit to 
     Congress a report providing a final assessment of the matters 
     covered in the preliminary report under paragraph (1). The 
     report shall include the Comptroller General's recommendation 
     as to the need to continue required statutory manning levels 
     as specified in subsection (a) of section 4303 of title 10, 
     United States Code, as added by subsection (a).
       (d) Sense of Congress.--In light of requirement that 
     particularly dangerous training activities (such as Ranger 
     training, Search, Evasion, Rescue, and Escape (SERE) 
     training, SEAL training, and Airborne training) must be 
     adequately manned and resourced to ensure safety and 
     effective oversight, it is the sense of Congress--
       (1) that the Secretary of Defense, in conjunction with the 
     Secretaries of the military 

[[Page H393]]
     departments, should review and, if necessary, enhance oversight of all 
     such training activities; and
       (2) that organizations similar to the safety cells required 
     to be established for Army Ranger training in section 4303 of 
     title 10, United States Code, as added by subsection (a), 
     should (when appropriate) be used for all such training 
     activities.

     SEC. 563. SEPARATION IN CASES INVOLVING EXTENDED CONFINEMENT.

       (a) Separation.--(1)(A) Chapter 59 of title 10, United 
     States Code, is amended by inserting after section 1166 the 
     following new section:

     ``Sec. 1167. Members under confinement by sentence of court-
       martial: separation after six months confinement

       ``Except as otherwise provided in regulations prescribed by 
     the Secretary of Defense, a member sentenced by a court-
     martial to a period of confinement for more than six months 
     may be separated from the member's armed force at any time 
     after the sentence to confinement has become final under 
     chapter 47 of this title and the person has served in 
     confinement for a period of six months.''.
       (B) The table of sections at the beginning of chapter 59 of 
     such title is amended by inserting after the item relating to 
     section 1166 the following new item:

``1167. Members under confinement by sentence of court-martial: 
              separation after six months confinement.''.

       (2)(A) Chapter 1221 of title 10, United States Code, is 
     amended by adding at the end the following:

     ``Sec. 12687. Reserves under confinement by sentence of 
       court-martial: separation after six months confinement

       ``Except as otherwise provided in regulations prescribed by 
     the Secretary of Defense, a Reserve sentenced by a court-
     martial to a period of confinement for more than six months 
     may be separated from that Reserve's armed force at any time 
     after the sentence to confinement has become final under 
     chapter 47 of this title and the Reserve has served in 
     confinement for a period of six months.''.
       (B) The table of sections at the beginning of chapter 1221 
     of such title is amended by inserting at the end thereof the 
     following new item:

``12687. Reserves under confinement by sentence of court-martial: 
              separation after six months confinement.''.

       (b) Drop From Rolls.--(1) Section 1161(b) of title 10, 
     United States Code, is amended by striking out ``or (2)'' and 
     inserting in lieu thereof ``(2) who may be separated under 
     section 1178 of this title by reason of a sentence to 
     confinement adjudged by a court-martial, or (3)''.
       (2) Section 12684 of such title is amended--
       (A) by striking out ``or'' at the end of paragraph (1);
       (B) by redesignating paragraph (2) as paragraph (3); and
       (C) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) who may be separated under section 12687 of this 
     title by reason of a sentence to confinement adjudged by a 
     court-martial; or''.

     SEC. 564. LIMITATIONS ON REDUCTIONS IN MEDICAL PERSONNEL.

       (a) In General.--(1) Chapter 3 of title 10, United States 
     Code, is amended by inserting after section 129b the 
     following new section:

     ``Sec. 129c. Medical personnel: limitations on reductions

       ``(a) Limitation on Reduction.--For any fiscal year, the 
     Secretary of Defense may not make a reduction in the number 
     of medical personnel of the Department of Defense described 
     in subsection (b) unless the Secretary makes a certification 
     for that fiscal year described in subsection (c).
       ``(b) Covered Reductions.--Subsection (a) applies to a 
     reduction in the number of medical personnel of the 
     Department of Defense as of the end of a fiscal year to a 
     number that is less than--
       ``(1) 95 percent of the number of such personnel at the end 
     of the immediately preceding fiscal year; or
       ``(2) 90 percent of the number of such personnel at the end 
     of the third fiscal year preceding the fiscal year.
       ``(c) Certification.--A certification referred to in 
     subsection (a) with respect to reductions in medical 
     personnel of the Department of Defense for any fiscal year is 
     a certification by the Secretary of Defense to Congress 
     that--
       ``(1) the number of medical personnel being reduced is 
     excess to the current and projected needs of the Department 
     of Defense; and
       ``(2) such reduction will not result in an increase in the 
     cost of health care services provided under the Civilian 
     Health and Medical Program of the Uniformed Services under 
     chapter 55 of this title.
       ``(d) Policy for Implementing Reductions.--Whenever the 
     Secretary of Defense directs that there be a reduction in the 
     total number of military medical personnel of the Department 
     of Defense, the Secretary shall require that the reduction be 
     carried out so as to ensure that the reduction is not 
     exclusively or disproportionatly borne by any one of the 
     armed forces and is not exclusively or disproportionatly 
     borne by either the active or the reserve components.
       ``(e) Definition.--In this section, the term `medical 
     personnel' means--
       ``(1) the members of the armed forces covered by the term 
     `medical personnel' as defined in section 115a(g)(2) of this 
     title; and
       ``(2) the civilian personnel of the Department of Defense 
     assigned to military medical facilities.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     129b the following new item:

``129c. Medical personnel: limitations on reductions.''.

       (b) Special Transition Rule for Fiscal Year 1996.--For 
     purposes of applying subsection (b)(1) of section 129c of 
     title 10, United States Code, as added by subsection (a), 
     during fiscal year 1996, the number against which the 
     percentage limitation of 95 percent is computed shall be the 
     number of medical personnel of the Department of Defense as 
     of the end of fiscal year 1994 (rather than the number as of 
     the end of fiscal year 1995).
       (c) Report on Planned Reductions.--(1) Not later than March 
     1, 1996, the Secretary of Defense shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives a plan 
     for the reduction of the number of medical personnel of the 
     Department of Defense over the five-year period beginning on 
     October 1, 1996.
       (2) The Secretary shall prepare the plan through the 
     Assistant Secretary of Defense having responsibility for 
     health affairs, who shall consult in the preparation of the 
     plan with the Surgeon General of the Army, the Surgeon 
     General of the Navy, and the Surgeon General of the Air 
     Force.
       (3) For purposes of this subsection, the term ``medical 
     personnel of the Department of Defense'' shall have the 
     meaning given the term ``medical personnel'' in section 
     129c(e) of title 10, United States Code, as added by 
     subsection (a).
       (d) Repeal of Superseded Provisions of Law.--The following 
     provisions of law are repealed:
       (1) Section 711 of the National Defense Authorization Act 
     for Fiscal Year 1991 (10 U.S.C. 115 note).
       (2) Subsection (b) of section 718 of the National Defense 
     Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
     102-190; 10 U.S.C. 115 note).
       (3) Section 518 of the National Defense Authorization Act 
     for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 12001 
     note).

     SEC. 565. SENSE OF CONGRESS CONCERNING PERSONNEL TEMPO RATES.

       (a) Findings.--Congress makes the following findings:
       (1) Excessively high personnel tempo rates for members of 
     the Armed Forces resulting from high-tempo unit operations 
     degrades unit readiness and morale and eventually can be 
     expected to adversely affect unit retention.
       (2) The Armed Forces have begun to develop methods to 
     measure and manage personnel tempo rates.
       (3) The Armed Forces have attempted to reduce operations 
     and personnel tempo for heavily tasked units by employing 
     alternative capabilities and reducing tasking requirements.
       (b) Sense of Congress.--The Secretary of Defense should 
     continue to enhance the knowledge within the Armed Forces of 
     personnel tempo and to improve the techniques by which 
     personnel tempo is defined and managed with a view toward 
     establishing and achieving reasonable personnel tempo 
     standards for all personnel, regardless of service, unit, or 
     assignment.

     SEC. 566. SEPARATION BENEFITS DURING FORCE REDUCTION FOR 
                   OFFICERS OF COMMISSIONED CORPS OF NATIONAL 
                   OCEANIC AND ATMOSPHERIC ADMINISTRATION.

       (a) Separation Benefits.--Subsection (a) of section 3 of 
     the Act of August 10, 1956 (33 U.S.C. 857a), is amended by 
     adding at the end the following new paragraph:
       ``(15) Section 1174a, special separation benefits (except 
     that benefits under subsection (b)(2)(B) of such section are 
     subject to the availability of appropriations for such 
     purpose and are provided at the discretion of the Secretary 
     of Commerce).''.
       (b) Technical Corrections.--Such section is further 
     amended--
       (1) by striking out ``Coast and Geodetic Survey'' in 
     subsections (a) and (b) and inserting in lieu thereof 
     ``commissioned officer corps of the National Oceanic and 
     Atmospheric Administration''; and
       (2) in subsection (a), by striking out ``including changes 
     in those rules made after the effective date of this Act'' in 
     the matter preceding paragraph (1) and inserting in lieu 
     thereof ``as those provisions are in effect from time to 
     time''.
       (c) Temporary Early Retirement Authority.--Section 4403 
     (other than subsection (f)) of the National Defense 
     Authorization Act for Fiscal Year 1993 (Public Law 102-484; 
     106 Stat. 2702; 10 U.S.C. 1293 note) shall apply to the 
     commissioned officer corps of the National Oceanic and 
     Atmospheric Administration in the same manner and to the same 
     extent as that section applies to the Department of Defense. 
     The Secretary of Commerce shall implement the provisions of 
     that section with respect to such commissioned officer corps 
     and shall apply the provisions of that section to the 
     provisions of 

[[Page H394]]
     the Coast and Geodetic Survey Commissioned Officers' Act of 1948 
     relating to the retirement of members of such commissioned 
     officer corps.
       (d) Effective Date.--This section shall apply only to 
     members of the commissioned officer corps of the National 
     Oceanic and Atmospheric Administration who are separated 
     after September 30, 1995.

     SEC. 567. DISCHARGE OF MEMBERS OF THE ARMED FORCES WHO HAVE 
                   THE HIV-1 VIRUS.

       (a) In General.--(1) Section 1177 of title 10, United 
     States Code, is amended to read as follows:

     ``Sec. 1177. Members infected with HIV-1 virus: mandatory 
       discharge or retirement

       ``(a) Mandatory Separation.--A member of the armed forces 
     who is HIV-positive shall be separated. Such separation shall 
     be made on a date determined by the Secretary concerned, 
     which shall be as soon as practicable after the date on which 
     the determination is made that the member is HIV-positive and 
     not later than the last day of the sixth month beginning 
     after such date.
       ``(b) Form of Separation.--If a member to be separated 
     under this section is eligible to retire under any provision 
     of law or to be transferred to the Fleet Reserve or Fleet 
     Marine Corps Reserve, the member shall be so retired or so 
     transferred. Otherwise, the member shall be discharged. The 
     characterization of the service of the member shall be 
     determined without regard to the determination that the 
     member is HIV-positive.
       ``(c) Deferral of Separation for Members in 18-Year 
     Retirement Sanctuary.--In the case of a member to be 
     discharged under this section who on the date on which the 
     member is to be discharged is within two years of qualifying 
     for retirement under any provision of law, or of qualifying 
     for transfer to the Fleet Reserve or Fleet Marine Corps 
     Reserve under section 6330 of this title, the member may, as 
     determined by the Secretary concerned, be retained on active 
     duty until the member is qualified for retirement or transfer 
     to the Fleet Reserve or Fleet Marine Corps Reserve, as the 
     case may be, and then be so retired or transferred, unless 
     the member is sooner retired or discharged under any other 
     provision of law.
       ``(d) Separation To Be Considered Involuntary.--A 
     separation under this section shall be considered to be an 
     involuntary separation for purposes of any other provision of 
     law.
       ``(e) Entitlement to Health Care.--A member separated under 
     this section shall be entitled to medical and dental care 
     under chapter 55 of this title to the same extent and under 
     the same conditions as a person who is entitled to such care 
     under section 1074(b) of this title.
       ``(f) Counseling About Available Medical Care.--A member to 
     be separated under this section shall be provided 
     information, in writing, before such separation of the 
     available medical care (through the Department of Veterans 
     Affairs and otherwise) to treat the member's condition. Such 
     information shall include identification of specific medical 
     locations near the member's home of record or point of 
     discharge at which the member may seek necessary medical 
     care.
       ``(g) HIV-Positive Members.--A member shall be considered 
     to be HIV-positive for purposes of this section if there is 
     serologic evidence that the member is infected with the virus 
     known as Human Immunodeficiency Virus-1 (HIV-1), the virus 
     most commonly associated with the acquired immune deficiency 
     syndrome (AIDS) in the United States. Such serologic evidence 
     shall be considered to exist if there is a reactive result 
     given by an enzyme-linked immunosorbent assay (ELISA) 
     serologic test that is confirmed by a reactive and diagnostic 
     immunoelectrophoresis test (Western blot) on two separate 
     samples. Any such serologic test must be one that is approved 
     by the Food and Drug Administration.''.
       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 59 of such title is 
     amended to read as follows:

``1177. Members infected with HIV-1 virus: mandatory discharge or 
              retirement.''.

       (b) Effective Date.--Section 1177 of title 10, United 
     States Code, as amended by subsection (a), applies with 
     respect to members of the Armed Forces determined to be HIV-
     positive before, on, or after the date of the enactment of 
     this Act. In the case of a member of the Armed Forces 
     determined to be HIV-positive before such date, the deadline 
     for separation of the member under subsection (a) of such 
     section, as so amended, shall be determined from the date of 
     the enactment of this Act (rather than from the date of such 
     determination).

     SEC. 568. REVISION AND CODIFICATION OF MILITARY FAMILY ACT 
                   AND MILITARY CHILD CARE ACT.

       (a) In General.--(1) Subtitle A of title 10, United States 
     Code, is amended by inserting after chapter 87 the following 
     new chapter:

     ``CHAPTER 88--MILITARY FAMILY PROGRAMS AND MILITARY CHILD CARE

``Subchapter                                                       Sec.
 Military Family Programs..........................................1781
 Military Child Care...............................................1791

                ``SUBCHAPTER I--MILITARY FAMILY PROGRAMS

``Sec.
``1781. Office of Family Policy.
``1782. Surveys of military families.
``1783. Family members serving on advisory committees.
``1784. Employment opportunities for military spouses.
``1785. Youth sponsorship program.
``1786. Dependent student travel within the United States.
``1787. Reporting of child abuse.

     ``Sec. 1781. Office of Family Policy

       ``(a) Establishment.--There is in the Office of the 
     Secretary of Defense an Office of Family Policy (hereinafter 
     in this section referred to as the `Office'). The Office 
     shall be under the Assistant Secretary of Defense for Force 
     Management and Personnel.
       ``(b) Duties.--The Office--
       ``(1) shall coordinate programs and activities of the 
     military departments to the extent that they relate to 
     military families; and
       ``(2) shall make recommendations to the Secretaries of the 
     military departments with respect to programs and policies 
     regarding military families.
       ``(c) Staff.--The Office shall have not less than five 
     professional staff members.

     ``Sec. 1782. Surveys of military families

       ``(a) Authority.--The Secretary of Defense may conduct 
     surveys of members of the armed forces on active duty or in 
     an active status, members of the families of such members, 
     and retired members of the armed forces to determine the 
     effectiveness of Federal programs relating to military 
     families and the need for new programs.
       ``(b) Responses To Be Voluntary.--Responses to surveys 
     conducted under this section shall be voluntary.
       ``(c) Federal Recordkeeping Requirements.--With respect to 
     such surveys, family members of members of the armed forces 
     and reserve and retired members of the armed forces shall be 
     considered to be employees of the United States for purposes 
     of section 3502(3)(A)(i) of title 44.

     ``Sec. 1783. Family members serving on advisory committees

       ``A committee within the Department of Defense which 
     advises or assists the Department in the performance of any 
     function which affects members of military families and which 
     includes members of military families in its membership shall 
     not be considered an advisory committee under section 3(2) of 
     the Federal Advisory Committee Act (5 U.S.C. App.) solely 
     because of such membership.

     ``Sec. 1784. Employment opportunities for military spouses

       ``(a) Authority.--The President shall order such measures 
     as the President considers necessary to increase employment 
     opportunities for spouses of members of the armed forces. 
     Such measures may include--
       ``(1) excepting, pursuant to section 3302 of title 5, from 
     the competitive service positions in the Department of 
     Defense located outside of the United States to provide 
     employment opportunities for qualified spouses of members of 
     the armed forces in the same geographical area as the 
     permanent duty station of the members; and
       ``(2) providing preference in hiring for positions in 
     nonappropriated fund activities to qualified spouses of 
     members of the armed forces stationed in the same 
     geographical area as the nonappropriated fund activity for 
     positions in wage grade UA-8 and below and equivalent 
     positions and for positions paid at hourly rates.
       ``(b) Regulations.--The Secretary of Defense shall 
     prescribe regulations--
       ``(1) to implement such measures as the President orders 
     under subsection (a);
       ``(2) to provide preference to qualified spouses of members 
     of the armed forces in hiring for any civilian position in 
     the Department of Defense if the spouse is among persons 
     determined to be best qualified for the position and if the 
     position is located in the same geographical area as the 
     permanent duty station of the member;
       ``(3) to ensure that notice of any vacant position in the 
     Department of Defense is provided in a manner reasonably 
     designed to reach spouses of members of the armed forces 
     whose permanent duty stations are in the same geographic area 
     as the area in which the position is located; and
       ``(4) to ensure that the spouse of a member of the armed 
     forces who applies for a vacant position in the Department of 
     Defense shall, to the extent practicable, be considered for 
     any such position located in the same geographic area as the 
     permanent duty station of the member.
       ``(c) Status of Preference Eligibles.--Nothing in this 
     section shall be construed to provide a spouse of a member of 
     the armed forces with preference in hiring over an individual 
     who is a preference eligible.

     ``Sec. 1785. Youth sponsorship program

       ``(a) Requirement.--The Secretary of Defense shall require 
     that there be at each military installation a youth 
     sponsorship program to facilitate the integration of 
     dependent children of members of the armed forces into new 
     surroundings when moving to that military installation as a 
     result of a parent's permanent change of station.
       ``(b) Description of Programs.--The program at each 
     installation shall provide for involvement of dependent 
     children of members presently stationed at the military 
     installation and shall be directed primarily toward children 
     in their preteen and teenage years.

     ``Sec. 1786. Dependent student travel within the United 
       States

       ``Funds available to the Department of Defense for the 
     travel and transportation of dependent students of members of 
     the armed 

[[Page H395]]
     forces stationed overseas may be obligated for transportation 
     allowances for travel within or between the contiguous 
     States.

     ``Sec. 1787. Reporting of child abuse

       ``(a) In General.--The Secretary of Defense shall request 
     each State to provide for the reporting to the Secretary of 
     any report the State receives of known or suspected instances 
     of child abuse and neglect in which the person having care of 
     the child is a member of the armed forces (or the spouse of 
     the member).
       ``(b) Definition.--In this section, the term `child abuse 
     and neglect' has the meaning provided in section 3(1) of the 
     Child Abuse Prevention and Treatment Act (42 U.S.C. 5102).

                  ``SUBCHAPTER II--MILITARY CHILD CARE

``Sec.
``1791. Funding for military child care.
``1792. Child care employees.
``1793. Parent fees.
``1794. Child abuse prevention and safety at facilities.
``1795. Parent partnerships with child development centers.
``1796. Subsidies for family home day care.
``1797. Early childhood education program.
``1798. Definitions.

     ``Sec. 1791. Funding for military child care

       ``It is the policy of Congress that the amount of 
     appropriated funds available during a fiscal year for 
     operating expenses for military child development centers and 
     programs shall be not less than the amount of child care fee 
     receipts that are estimated to be received by the Department 
     of Defense during that fiscal year.

     ``Sec. 1792. Child care employees

       ``(a) Required Training.--(1) The Secretary of Defense 
     shall prescribe regulations implementing, a training program 
     for child care employees. Those regulations shall apply 
     uniformly among the military departments. Subject to 
     paragraph (2), satisfactory completion of the training 
     program shall be a condition of employment of any person as a 
     child care employee.
       ``(2) Under those regulations, the Secretary shall require 
     that each child care employee complete the training program 
     not later than six months after the date on which the 
     employee is employed as a child care employee.
       ``(3) The training program established under this 
     subsection shall cover, at a minimum, training in the 
     following:
       ``(A) Early childhood development.
       ``(B) Activities and disciplinary techniques appropriate to 
     children of different ages.
       ``(C) Child abuse prevention and detection.
       ``(D) Cardiopulmonary resuscitation and other emergency 
     medical procedures.
       ``(b) Training and Curriculum Specialists.--(1) The 
     Secretary of Defense shall require that at least one employee 
     at each military child development center be a specialist in 
     training and curriculum development. The Secretary shall 
     ensure that such employees have appropriate credentials and 
     experience.
       ``(2) The duties of such employees shall include the 
     following:
       ``(A) Special teaching activities at the center.
       ``(B) Daily oversight and instruction of other child care 
     employees at the center.
       ``(C) Daily assistance in the preparation of lesson plans.
       ``(D) Assistance in the center's child abuse prevention and 
     detection program.
       ``(E) Advising the director of the center on the 
     performance of other child care employees.
       ``(3) Each employee referred to in paragraph (1) shall be 
     an employee in a competitive service position.
       ``(c) Competitive Rates of Pay.--For the purpose of 
     providing military child development centers with a qualified 
     and stable civilian workforce, employees at a military 
     installation who are directly involved in providing child 
     care and are paid from nonappropriated funds--
       ``(1) in the case of entry-level employees, shall be paid 
     at rates of pay competitive with the rates of pay paid to 
     other entry-level employees at that installation who are 
     drawn from the same labor pool; and
       ``(2) in the case of other employees, shall be paid at 
     rates of pay substantially equivalent to the rates of pay 
     paid to other employees at that installation with similar 
     training, seniority, and experience.
       ``(d) Employment Preference Program for Military Spouses.--
     (1) The Secretary of Defense shall conduct a program under 
     which qualified spouses of members of the armed forces shall 
     be given a preference in hiring for the position of child 
     care employee in a position paid from nonappropriated funds 
     if the spouse is among persons determined to be best 
     qualified for the position.
       ``(2) A spouse who is provided a preference under this 
     subsection at a military child development center may not be 
     precluded from obtaining another preference, in accordance 
     with section 1794 of this title, in the same geographic area 
     as the military child development center.
       ``(e) Competitive Service Position Defined.--In this 
     section, the term `competitive service position' means a 
     position in the competitive service, as defined in section 
     2102(a)(1) of title 5.

     ``Sec. 1793. Parent fees

       ``(a) In General.--The Secretary of Defense shall prescribe 
     regulations establishing fees to be charged parents for the 
     attendance of children at military child development centers. 
     Those regulations shall be uniform for the military 
     departments and shall require that, in the case of children 
     who attend the centers on a regular basis, the fees shall be 
     based on family income.
       ``(b) Local Waiver Authority.--The Secretary of Defense may 
     provide authority to installation commanders, on a case-by-
     case basis, to establish fees for attendance of children at 
     child development centers at rates lower than those 
     prescribed under subsection (a) if the rates prescribed under 
     subsection (a) are not competitive with rates at local non-
     military child development centers.

     ``Sec. 1794. Child abuse prevention and safety at facilities

       ``(a) Child Abuse Task Force.--The Secretary of Defense 
     shall maintain a special task force to respond to allegations 
     of widespread child abuse at a military installation. The 
     task force shall be composed of personnel from appropriate 
     disciplines, including, where appropriate, medicine, 
     psychology, and childhood development. In the case of such 
     allegations, the task force shall provide assistance to the 
     commander of the installation, and to parents at the 
     installation, in helping them to deal with such allegations.
       ``(b) National Hotline.--(1) The Secretary of Defense shall 
     maintain a national telephone number for persons to use to 
     report suspected child abuse or safety violations at a 
     military child development center or family home day care 
     site. The Secretary shall ensure that such reports may be 
     made anonymously if so desired by the person making the 
     report. The Secretary shall establish procedures for 
     following up on complaints and information received over that 
     number.
       ``(2) The Secretary shall publicize the existence of the 
     number.
       ``(c) Assistance From Local Authorities.--The Secretary of 
     Defense shall prescribe regulations requiring that, in a case 
     of allegations of child abuse at a military child development 
     center or family home day care site, the commander of the 
     military installation or the head of the task force 
     established under subsection (a) shall seek the assistance of 
     local child protective authorities if such assistance is 
     available.
       ``(d) Safety Regulations.--The Secretary of Defense shall 
     prescribe regulations on safety and operating procedures at 
     military child development centers. Those regulations shall 
     apply uniformly among the military departments.
       ``(e) Inspections.--The Secretary of Defense shall require 
     that each military child development center be inspected not 
     less often than four times a year. Each such inspection shall 
     be unannounced. At least one inspection a year shall be 
     carried out by a representative of the installation served by 
     the center, and one inspection a year shall be carried out by 
     a representative of the major command under which that 
     installation operates.
       ``(f) Remedies for Violations.--(1) Except as provided in 
     paragraph (2), any violation of a safety, health, or child 
     welfare law or regulation (discovered at an inspection or 
     otherwise) at a military child development center shall be 
     remedied immediately.
       ``(2) In the case of a violation that is not life 
     threatening, the commander of the major command under which 
     the installation concerned operates may waive the requirement 
     that the violation be remedied immediately for a period of up 
     to 90 days beginning on the date of the discovery of the 
     violation. If the violation is not remedied as of the end of 
     that 90-day period, the military child development center 
     shall be closed until the violation is remedied. The 
     Secretary of the military department concerned may waive the 
     preceding sentence and authorize the center to remain open in 
     a case in which the violation cannot reasonably be remedied 
     within that 90-day period or in which major facility 
     reconstruction is required.

     ``Sec. 1795. Parent partnerships with child development 
       centers

       ``(a) Parent Boards.--The Secretary of Defense shall 
     require that there be established at each military child 
     development center a board of parents, to be composed of 
     parents of children attending the center. The board shall 
     meet periodically with staff of the center and the commander 
     of the installation served by the center for the purpose of 
     discussing problems and concerns. The board, together with 
     the staff of the center, shall be responsible for 
     coordinating the parent participation program described in 
     subsection (b).
       ``(b) Parent Participation Programs.--The Secretary of 
     Defense shall require the establishment of a parent 
     participation program at each military child development 
     center. As part of such program, the Secretary of Defense may 
     establish fees for attendance of children at such a center, 
     in the case of parents who participate in the parent 
     participation program at that center, at rates lower than the 
     rates that otherwise apply.

     ``Sec. 1796. Subsidies for family home day care

       ``The Secretary of Defense may use appropriated funds 
     available for military child care purposes to provide 
     assistance to family home day care providers so that family 
     home day care services can be provided to members of the 
     armed forces at a cost comparable to the cost of services 
     provided by military child development centers. The Secretary 
     shall prescribe regulations for the provision of such 
     assistance.

     ``Sec. 1797. Early childhood education program

       ``The Secretary of Defense shall require that all military 
     child development centers 

[[Page H396]]
     meet standards of operation necessary for accreditation by an 
     appropriate national early childhood programs accrediting 
     body.

     ``Sec. 1798. Definitions

       ``In this subchapter:
       ``(1) The term `military child development center' means a 
     facility on a military installation (or on property under the 
     jurisdiction of the commander of a military installation) at 
     which child care services are provided for members of the 
     armed forces or any other facility at which such child care 
     services are provided that is operated by the Secretary of a 
     military department.
       ``(2) The term `family home day care' means home-based 
     child care services that are provided for members of the 
     armed forces by an individual who (A) is certified by the 
     Secretary of the military department concerned as qualified 
     to provide those services, and (B) provides those services on 
     a regular basis for compensation.
       ``(3) The term `child care employee' means a civilian 
     employee of the Department of Defense who is employed to work 
     in a military child development center (regardless of whether 
     the employee is paid from appropriated funds or 
     nonappropriated funds).
       ``(4) The term `child care fee receipts' means those 
     nonappropriated funds that are derived from fees paid by 
     members of the armed forces for child care services provided 
     at military child development centers.''.
       (2) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part II of subtitle A, of title 10, 
     United States Code, are amended by inserting after the item 
     relating to chapter 87 the following new item:

``88. Military Family Programs and Military Child Care......1781''.....

       (b) Report on Five-Year Demand for Child Care.--(1) Not 
     later than the date of the submission of the budget for 
     fiscal year 1997 pursuant to section 1105 of title 31, United 
     States Code, the Secretary of Defense shall submit to 
     Congress a report on the expected demand for child care by 
     military and civilian personnel of the Department of Defense 
     during fiscal years 1997 through 2001.
       (2) The report shall include--
       (A) a plan for meeting the expected child care demand 
     identified in the report; and
       (B) an estimate of the cost of implementing that plan.
       (3) The report shall also include a description of methods 
     for monitoring family home day care programs of the military 
     departments.
       (c) Plan for Implementation of Accreditation Requirement.--
     The Secretary of Defense shall submit to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a plan for carrying 
     out the requirements of section 1787 of title 10, United 
     States Code, as added by subsection (a). The plan shall be 
     submitted not later than April 1, 1997.
       (d) Continuation of Delegation of Authority With Respect to 
     Hiring Preference for Qualified Military Spouses.--The 
     provisions of Executive Order No. 12568, issued October 2, 
     1986 (10 U.S.C. 113 note), shall apply as if the reference in 
     that Executive order to section 806(a)(2) of the Department 
     of Defense Authorization Act of 1986 refers to section 1784 
     of title 10, United States Code, as added by subsection (a).
       (e) Repealer.--The following provisions of law are 
     repealed:
       (1) The Military Family Act of 1985 (title VIII of Public 
     Law 99-145; 10 U.S.C. 113 note).
       (2) The Military Child Care Act of 1989 (title XV of Public 
     Law 101-189; 10 U.S.C. 113 note).

     SEC. 569. DETERMINATION OF WHEREABOUTS AND STATUS OF MISSING 
                   PERSONS.

       (a) Purpose.--The purpose of this section is to ensure that 
     any member of the Armed Forces (and any Department of Defense 
     civilian employee or contractor employee who serves with or 
     accompanies the Armed Forces in the field under orders) who 
     becomes missing or unaccounted for is ultimately accounted 
     for by the United States and, as a general rule, is not 
     declared dead solely because of the passage of time.
       (b) In General.--(1) Part II of subtitle A of title 10, 
     United States Code, is amended by inserting after chapter 75 
     the following new chapter:

                     ``CHAPTER 76--MISSING PERSONS

``Sec.
``1501. System for accounting for missing persons.
``1502. Missing persons: initial report.
``1503. Actions of Secretary concerned; initial board inquiry.
``1504. Subsequent board of inquiry.
``1505. Further review.
``1506. Personnel files.
``1507. Recommendation of status of death.
``1508. Judicial review.
``1509. Preenactment, special interest cases.
``1510. Applicability to Coast Guard.
``1511. Return alive of person declared missing or dead.
``1512. Effect on State law.
``1513. Definitions.

     ``Sec. 1501. System for accounting for missing persons

       ``(a) Office for Missing Personnel.--(1) The Secretary of 
     Defense shall establish within the Office of the Secretary of 
     Defense an office to have responsibility for Department of 
     Defense policy relating to missing persons. Subject to the 
     authority, direction, and control of the Secretary of 
     Defense, the responsibilities of the office shall include--
       ``(A) policy, control, and oversight within the Department 
     of Defense of the entire process for investigation and 
     recovery related to missing persons (including matters 
     related to search, rescue, escape, and evasion); and
       ``(B) coordination for the Department of Defense with other 
     departments and agencies of the United States on all matters 
     concerning missing persons.
       ``(2) In carrying out the responsibilities of the office 
     established under this subsection, the head of the office 
     shall be responsible for the coordination for such purposes 
     within the Department of Defense among the military 
     departments, the Joint Staff, and the commanders of the 
     combatant commands.
       ``(3) The office shall establish policies, which shall 
     apply uniformly throughout the Department of Defense, for 
     personnel recovery (including search, rescue, escape, and 
     evasion).
       ``(4) The office shall establish procedures to be followed 
     by Department of Defense boards of inquiry, and by officials 
     reviewing the reports of such boards, under this chapter.
       ``(b) Uniform DOD Procedures.--(1) The Secretary of Defense 
     shall prescribe procedures, to apply uniformly throughout the 
     Department of Defense, for--
       ``(A) the determination of the status of persons described 
     in subsection (c); and
       ``(B) for the systematic, comprehensive, and timely 
     collection, analysis, review, dissemination, and periodic 
     update of information related to such persons.
       ``(2) Such procedures may provide for the delegation by the 
     Secretary of Defense of any responsibility of the Secretary 
     under this chapter to the Secretary of a military department.
       ``(3) Such procedures shall be prescribed in a single 
     directive applicable to all elements of the Department of 
     Defense.
       ``(4) As part of such procedures, the Secretary may provide 
     for the extension, on a case-by-case basis, of any time limit 
     specified in section 1502, 1503, or 1504 of this title. Any 
     such extension may not be for a period in excess of the 
     period with respect to which the extension is provided. 
     Subsequent extensions may be provided on the same basis.
       ``(c) Covered Persons.--Section 1502 of this title applies 
     in the case of the following persons:
       ``(1) Any member of the armed forces on active duty who 
     becomes involuntarily absent as a result of a hostile action, 
     or under circumstances suggesting that the involuntary 
     absence is a result of a hostile action, and whose status is 
     undetermined or who is unaccounted for.
       ``(2) Any civilian employee of the Department of Defense, 
     and any employee of a contractor of the Department of 
     Defense, who serves with or accompanies the armed forces in 
     the field under orders who becomes involuntarily absent as a 
     result of a hostile action, or under circumstances suggesting 
     that the involuntary absence is a result of a hostile action, 
     and whose status is undetermined or who is unaccounted for.
       ``(d) Primary Next of Kin.--The individual who is primary 
     next of kin of any person prescribed in subsection (c) may 
     for purposes of this chapter designate another individual to 
     act on behalf of that individual as primary next of kin. The 
     Secretary concerned shall treat an individual so designated 
     as if the individual designated were the primary next of kin 
     for purposes of this chapter. A designation under this 
     subsection may be revoked at any time by the person who made 
     the designation.
       ``(e) Termination of Applicability of Procedures When 
     Missing Person Is Accounted for.--The provisions of this 
     chapter relating to boards of inquiry and to the actions 
     by the Secretary concerned on the reports of those boards 
     shall cease to apply in the case of a missing person upon 
     the person becoming accounted for or otherwise being 
     determined to be in a status other than missing.
       ``(f) Secretary Concerned.--In this chapter, the term 
     `Secretary concerned' includes, in the case of a civilian 
     employee of the Department of Defense or contractor of the 
     Department of Defense, the Secretary of the military 
     department or head of the element of the Department of 
     Defense employing the employee or contracting with the 
     contractor, as the case may be.

     ``Sec. 1502. Missing persons: initial report

       ``(a) Preliminary Assessment and Recommendation by 
     Commander.--After receiving information that the whereabouts 
     and status of a person described in section 1501(c) of this 
     title is uncertain and that the absence of the person may be 
     involuntary, the commander of the unit, facility, or area to 
     or in which the person is assigned shall make a preliminary 
     assessment of the circumstances. If, as a result of that 
     assessment, the commander concludes that the person is 
     missing, the commander shall--
       ``(1) recommend that the person be placed in a missing 
     status; and
       ``(2) not later than 48 hours after receiving such 
     information, transmit a report containing that recommendation 
     to the theater component commander with jurisdiction over the 
     missing person in accordance with procedures prescribed under 
     section 1501(b) of this title.
       ``(b) Transmission Through Theater Component Commander.--
     Upon reviewing a report under subsection (a) recommending 
     that a person be placed in a missing status, the theater 
     component commander shall ensure that all necessary actions 
     are being taken, 

[[Page H397]]
     and all appropriate assets are being used, to resolve the status of the 
     missing person. Not later than 14 days after receiving the 
     report, the theater component commander shall forward the 
     report to the Secretary of Defense or the Secretary concerned 
     in accordance with procedures prescribed under section 
     1501(b) of this title. The theater component commander shall 
     include with such report a certification that all necessary 
     actions are being taken, and all appropriate assets are being 
     used, to resolve the status of the missing person.
       ``(c) Safeguarding and Forwarding of Records.--A commander 
     making a preliminary assessment under subsection (a) with 
     respect to a missing person shall (in accordance with 
     procedures prescribed under section 1501 of this title) 
     safeguard and forward for official use any information 
     relating to the whereabouts and status of the missing person 
     that results from the preliminary assessment or from actions 
     taken to locate the person. The theater component commander 
     through whom the report with respect to the missing person is 
     transmitted under subsection (b) shall ensure that all 
     pertinent information relating to the whereabouts and status 
     of the missing person that results from the preliminary 
     assessment or from actions taken to locate the person is 
     properly safeguarded to avoid loss, damage, or modification.

     ``Sec. 1503. Actions of Secretary concerned; initial board 
       inquiry

       ``(a) Determination by Secretary.--Upon receiving a 
     recommendation under section 1502(b) of this title that a 
     person be placed in a missing status, the Secretary receiving 
     the recommendation shall review the recommendation and, not 
     later than 10 days after receiving such recommendation, shall 
     appoint a board under this section to conduct an inquiry into 
     the whereabouts and status of the person.
       ``(b) Inquiries Involving More Than One Missing Person.--If 
     it appears to the Secretary who appoints a board under this 
     section that the absence or missing status of two or more 
     persons is factually related, the Secretary may appoint a 
     single board under this section to conduct the inquiry into 
     the whereabouts and status of all such persons.
       ``(c) Composition.--(1) A board appointed under this 
     section to inquire into the whereabouts and status of a 
     person shall consist of at least one individual described in 
     paragraph (2) who has experience with and understanding of 
     military operations or activities similar to the operation or 
     activity in which the person disappeared.
       ``(2) An individual referred to in paragraph (1) is the 
     following:
       ``(A) A military officer, in the case of an inquiry with 
     respect to a member of the armed forces.
       ``(B) A civilian, in the case of an inquiry with respect to 
     a civilian employee of the Department of Defense or of a 
     contractor of the Department of Defense.
       ``(3) An individual may be appointed as a member of a board 
     under this section only if the individual has a security 
     clearance that affords the individual access to all 
     information relating to the whereabouts and status of the 
     missing persons covered by the inquiry.
       ``(4) A Secretary appointing a board under this subsection 
     shall, for purposes of providing legal counsel to the board, 
     assign to the board a judge advocate, or appoint to the board 
     an attorney, who has expertise in the law relating to missing 
     persons, the determination of death of such persons, and the 
     rights of family members and dependents of such persons.
       ``(d) Duties of Board.--A board appointed to conduct an 
     inquiry into the whereabouts and status of a missing person 
     under this section shall--
       ``(1) collect, develop, and investigate all facts and 
     evidence relating to the disappearance or whereabouts and 
     status of the person;
       ``(2) collect appropriate documentation of the facts and 
     evidence covered by the board's investigation;
       ``(3) analyze the facts and evidence, make findings based 
     on that analysis, and draw conclusions as to the current 
     whereabouts and status of the person; and
       ``(4) with respect to each person covered by the inquiry, 
     recommend to the Secretary who appointed the board that--
       ``(A) the person be placed in a missing status; or
       ``(B) the person be declared to have deserted, to be absent 
     without leave, or (subject to the requirements of section 
     1507 of this title) to be dead.
       ``(e) Board Proceedings.--During the proceedings of an 
     inquiry under this section, a board shall--
       ``(1) collect, record, and safeguard all facts, documents, 
     statements, photographs, tapes, messages, maps, sketches, 
     reports, and other information (whether classified or 
     unclassified) relating to the whereabouts and status of each 
     person covered by the inquiry;
       ``(2) gather information relating to actions taken to find 
     the person, including any evidence of the whereabouts and 
     status of the person arising from such actions; and
       ``(3) maintain a record of its proceedings.
       ``(f) Counsel for Missing Person.--(1) The Secretary 
     appointing a board to conduct an inquiry under this section 
     shall appoint counsel to represent each person covered by the 
     inquiry or, in a case covered by subsection (b), one counsel 
     to represent all persons covered by the inquiry. Counsel 
     appointed under this paragraph may be referred to as `missing 
     person's counsel' and represents the interests of the person 
     covered by the inquiry (and not any member of the person's 
     family or other interested parties).
       ``(2) To be appointed as a missing person's counsel, a 
     person must--
       ``(A) have the qualifications specified in section 827(b) 
     of this title (article 27(b) of the Uniform Code of Military 
     Justice) for trial counsel or defense counsel detailed for a 
     general court-martial;
       ``(B) have a security clearance that affords the counsel 
     access to all information relating to the whereabouts and 
     status of the person or persons covered by the inquiry; and
       ``(C) have expertise in the law relating to missing 
     persons, the determination of the death of such persons, and 
     the rights of family members and dependents of such persons.
       ``(3) A missing person's counsel--
       ``(A) shall have access to all facts and evidence 
     considered by the board during the proceedings under the 
     inquiry for which the counsel is appointed;
       ``(B) shall observe all official activities of the board 
     during such proceedings;
       ``(C) may question witnesses before the board; and
       ``(D) shall monitor the deliberations of the board.
       ``(4) A missing person's counsel shall assist the board in 
     ensuring that all appropriate information concerning the case 
     is collected, logged, filed, and safeguarded.
       ``(5) A missing person's counsel shall review the report of 
     the board under subsection (h) and submit to the Secretary 
     concerned who appointed the board an independent review of 
     that report. That review shall be made an official part of 
     the record of the board.
       ``(g) Access to Proceedings.--The proceedings of a board 
     during an inquiry under this section shall be closed to the 
     public (including, with respect to the person covered by the 
     inquiry, the primary next of kin, other members of the 
     immediate family, and any other previously designated person 
     of the person).
       ``(h) Report.--(1) A board appointed under this section 
     shall submit to the Secretary who appointed the board a 
     report on the inquiry carried out by the board. The report 
     shall include--
       ``(A) a discussion of the facts and evidence considered by 
     the board in the inquiry;
       ``(B) the recommendation of the board under subsection (d) 
     with respect to each person covered by the report; and
       ``(C) disclosure of whether classified documents and 
     information were reviewed by the board or were otherwise used 
     by the board in forming recommendations under subparagraph 
     (B).
       ``(2) A board shall submit a report under this subsection 
     with respect to the inquiry carried out by the board not 
     later than 30 days after the date of the appointment of the 
     board to carry out the inquiry. The report may include a 
     classified annex.
       ``(3) The Secretary of Defense shall prescribe procedures 
     for the release of a report submitted under this subsection 
     with respect to a missing person. Such procedures shall 
     provide that the report may not be made public (except as 
     provided for in subsection (j)) until one year after the date 
     on which the report is submitted.
       ``(i) Determination by Secretary.--(1) Not later than 30 
     days after receiving a report from a board under subsection 
     (h), the Secretary receiving the report shall review the 
     report.
       ``(2) In reviewing a report under paragraph (1), the 
     Secretary shall determine whether or not the report is 
     complete and free of administrative error. If the Secretary 
     determines that the report is incomplete, or that the report 
     is not free of administrative error, the Secretary may return 
     the report to the board for further action on the report by 
     the board.
       ``(3) Upon a determination by the Secretary that a report 
     reviewed under this subsection is complete and free of 
     administrative error, the Secretary shall make a 
     determination concerning the status of each person covered by 
     the report, including whether the person shall--
       ``(A) be declared to be missing;
       ``(B) be declared to have deserted;
       ``(C) be declared to be absent without leave; or
       ``(D) be declared to be dead.
       ``(j) Report to Family Members and Other Interested 
     Persons.--Not later than 30 days after the date on which the 
     Secretary concerned makes a determination of the status of a 
     person under subsection (i), the Secretary shall take 
     reasonable actions to--
       ``(1) provide to the primary next of kin, the other members 
     of the immediate family, and any other previously designated 
     person of the person--
       ``(A) an unclassified summary of the unit commander's 
     report with respect to the person under section 1502(a) of 
     this title; and
       ``(B) the report of the board (including the names of the 
     members of the board) under subsection (h); and
       ``(2) inform each individual referred to in paragraph (1) 
     that the United States will conduct a subsequent inquiry into 
     the whereabouts and status of the person on or about one year 
     after the date of the first official notice of the 
     disappearance of the person, unless information becomes 
     available sooner that may result in a change in status of the 
     person.
       ``(k) Treatment of Determination.--Any determination of the 
     status of a missing person under subsection (i) shall be 
     treated as 

[[Page H398]]
     the determination of the status of the person by all departments and 
     agencies of the United States.

     ``Sec. 1504. Subsequent board of inquiry

       ``(a) Additional Board.--If information that may result in 
     a change of status of a person covered by a determination 
     under section 1503(i) of this title becomes available within 
     one year after the date of the transmission of a report with 
     respect to the person under section 1502(a)(2) of this title, 
     the Secretary concerned shall appoint a board under this 
     section to conduct an inquiry into the information.
       ``(b) Date of Appointment.--The Secretary concerned shall 
     appoint a board under this section to conduct an inquiry into 
     the whereabouts and status of a missing person on or about 
     one year after the date of the transmission of a report 
     concerning the person under section 1502(a)(2) of this title.
       ``(c) Combined Inquiries.--If it appears to the Secretary 
     concerned that the absence or status of two or more persons 
     is factually related, the Secretary may appoint one board 
     under this section to conduct the inquiry into the 
     whereabouts and status of such persons.
       ``(d) Composition.--(1) A board appointed under this 
     section shall be composed of at least three members as 
     follows:
       ``(A) In the case of a board that will inquire into the 
     whereabouts and status of one or more members of the armed 
     forces (and no civilians described in subparagraph (B)), the 
     board shall be composed of officers having the grade of major 
     or lieutenant commander or above.
       ``(B) In the case of a board that will inquire into the 
     whereabouts and status of one or more civilian employees of 
     the Department of Defense or contractors of the Department of 
     Defense (and no members of the armed forces), the board shall 
     be composed of--
       ``(i) not less than three employees of the Department of 
     Defense whose rate of annual pay is equal to or greater than 
     the rate of annual pay payable for grade GS-13 of the General 
     Schedule under section 5332 of title 5; and
       ``(ii) such members of the armed forces as the Secretary 
     considers advisable.
       ``(C) In the case of a board that will inquire into the 
     whereabouts and status of both one or more members of the 
     armed forces and one or more civilians described in 
     subparagraph (B)--
       ``(i) the board shall include at least one officer 
     described in subparagraph (A) and at least one employee of 
     the Department of Defense described in subparagraph (B)(i); 
     and
       ``(ii) the ratio of such officers to such employees on the 
     board shall be roughly proportional to the ratio of the 
     number of members of the armed forces who are subjects of the 
     board's inquiry to the number of civilians who are subjects 
     of the board's inquiry.
       ``(2) The Secretary concerned shall designate one member of 
     a board appointed under this section as president of the 
     board. The president of the board shall have a security 
     clearance that affords the president access to all 
     information relating to the whereabouts and status of each 
     person covered by the inquiry.
       ``(3) One member of each board appointed under this 
     subsection shall be an individual who--
       ``(A) has an occupational specialty similar to that of one 
     or more of the persons covered by the inquiry; and
       ``(B) has an understanding of and expertise in the type of 
     official activities that one or more such persons were 
     engaged in at the time such person or persons disappeared.
       ``(4) The Secretary who appoints a board under this 
     subsection shall, for purposes of providing legal counsel to 
     the board, assign to the board a judge advocate, or appoint 
     to the board an attorney, with the same qualifications as 
     specified in section 1503(c)(4) of this title.
       ``(e) Duties of Board.--A board appointed under this 
     section to conduct an inquiry into the whereabouts and status 
     of a person shall--
       ``(1) review the reports with respect to the person 
     transmitted under section 1502(a)(2) of this title and 
     submitted under section 1503(h) of this title;
       ``(2) collect and evaluate any document, fact, or other 
     evidence with respect to the whereabouts and status of the 
     person that has become available since the determination of 
     the status of the person under section 1503 of this title;
       ``(3) draw conclusions as to the whereabouts and status of 
     the person;
       ``(4) determine on the basis of the activities under 
     paragraphs (1) and (2) whether the status of the person 
     should be continued or changed; and
       ``(5) submit to the Secretary concerned a report describing 
     the findings and conclusions of the board, together with a 
     recommendation for a determination by the Secretary 
     concerning the whereabouts and status of the person.
       ``(f) Counsel for Missing Persons.--(1) When the Secretary 
     concerned appoints a board to conduct an inquiry under this 
     section, the Secretary shall appoint counsel to represent 
     each person covered by the inquiry.
       ``(2) A person appointed as counsel under this subsection 
     shall meet the qualifications and have the duties set forth 
     in section 1503(f) of this title for a missing person's 
     counsel appointed under that section.
       ``(3) The review of the report of a board on an inquiry 
     that is submitted by such counsel shall be made an official 
     part of the record of the board with respect to the inquiry.
       ``(g) Attendance of Family Members and Certain Other 
     Interested Persons at Proceedings.--(1) With respect to any 
     person covered by an inquiry under this section, the primary 
     next of kin, other members of the immediate family, and any 
     other previously designated person of the person may attend 
     the proceedings of the board during the inquiry.
       ``(2) The Secretary concerned shall take reasonable actions 
     to notify each individual referred to in paragraph (1) of the 
     opportunity to attend the proceedings of a board. Such notice 
     shall be provided not less than 60 days before the first 
     meeting of the board.
       ``(3) An individual who receives notice under paragraph (2) 
     shall notify the Secretary of the intent, if any, of that 
     individual to attend the proceedings of the board not later 
     than 21 days after the date on which the individual receives 
     the notice.
       ``(4) Each individual who notifies the Secretary under 
     paragraph (3) of the individual's intent to attend the 
     proceedings of the board--
       ``(A) in the case of an individual who is the primary next 
     of kin or the previously designated person, may attend the 
     proceedings of the board with private counsel;
       ``(B) shall have access to the personnel file of the 
     missing person, to unclassified reports, if any, of the board 
     appointed under section 1503 of this title to conduct the 
     inquiry into the whereabouts and status of the person, and to 
     any other unclassified information or documents relating to 
     the whereabouts and status of the person;
       ``(C) shall be afforded the opportunity to present 
     information at the proceedings of the board that such 
     individual considers to be relevant to those proceedings; and
       ``(D) subject to paragraph (5), shall be given the 
     opportunity to submit in writing an objection to any 
     recommendation of the board under subsection (i) as to the 
     status of the missing person.
       ``(5)(A) Individuals who wish to file objections under 
     paragraph (4)(D) to any recommendation of the board shall--
       ``(i) submit a letter of intent to the president of the 
     board not later than 15 days after the date on which the 
     recommendations are made; and
       ``(ii) submit to the president of the board the objections 
     in writing not later than 30 days after the date on which the 
     recommendations are made.
       ``(B) The president of a board shall include any objections 
     to a recommendation of the board that are submitted to the 
     president of the board under subparagraph (A) in the report 
     of the board containing the recommendation under subsection 
     (i).
       ``(6) An individual referred to in paragraph (1) who 
     attends the proceedings of a board under this subsection 
     shall not be entitled to reimbursement by the United States 
     for any costs (including travel, lodging, meals, local 
     transportation, legal fees, transcription costs, witness 
     expenses, and other expenses) incurred by that individual in 
     attending such proceedings.
       ``(h) Availability of Information to Boards.--(1) In 
     conducting proceedings in an inquiry under this section, a 
     board may secure directly from any department or agency of 
     the United States any information that the board considers 
     necessary in order to conduct the proceedings.
       ``(2) Upon written request from the president of a board, 
     the head of a department or agency of the United States shall 
     release information covered by the request to the board. In 
     releasing such information, the head of the department or 
     agency shall--
       ``(A) declassify to an appropriate degree classified 
     information; or
       ``(B) release the information in a manner not requiring the 
     removal of markings indicating the classified nature of the 
     information.
       ``(3)(A) If a request for information under paragraph (2) 
     covers classified information that cannot be declassified, or 
     if the classification markings cannot be removed before 
     release from the information covered by the request, or if 
     the material cannot be summarized in a manner that prevents 
     the release of classified information, the classified 
     information shall be made available only to the president of 
     the board making the request and the counsel for the missing 
     person appointed under subsection (f).
       ``(B) The president of a board shall close to persons who 
     do not have appropriate security clearances the proceeding of 
     the board at which classified information is discussed. 
     Participants at a proceeding of a board at which classified 
     information is discussed shall comply with all applicable 
     laws and regulations relating to the disclosure of classified 
     information. The Secretary concerned shall assist the 
     president of a board in ensuring that classified information 
     is not compromised through board proceedings.
       ``(i) Recommendation on Status.--(1) Upon completion of an 
     inquiry under this subsection, a board shall make a 
     recommendation as to the current whereabouts and status of 
     each missing person covered by the inquiry.
       ``(2) A board may not recommend under paragraph (1) that a 
     person be declared dead unless in making the recommendation 
     the board complies with section 1507 of this title.
       ``(j) Report.--A board appointed under this section shall 
     submit to the Secretary concerned a report on the inquiry 
     carried out by the board, together with the evidence 
     considered by the board during the inquiry. The report may 
     include a classified annex.
     
[[Page H399]]

       ``(k) Actions by Secretary Concerned.--(1) Not later than 
     30 days after the receipt of a report from a board under 
     subsection (j), the Secretary shall review--
       ``(A) the report;
       ``(B) the review of the report submitted to the Secretary 
     under subsection (f)(3) by the counsel for each person 
     covered by the report; and
       ``(C) the objections, if any, to the report submitted to 
     the president of the board under subsection (g)(5).
       ``(2) In reviewing a report under paragraph (1) (including 
     the objections described in subparagraph (C) of that 
     paragraph), the Secretary concerned shall determine whether 
     or not the report is complete and free of administrative 
     error. If the Secretary determines that the report is 
     incomplete, or that the report is not free of administrative 
     error, the Secretary may return the report to the board for 
     further action on the report by the board.
       ``(3) Upon a determination by the Secretary that a report 
     reviewed under this subsection is complete and free of 
     administrative error, the Secretary shall make a 
     determination concerning the status of each person covered by 
     the report.
       ``(l) Report to Family Members and Other Interested 
     Persons.--Not later than 60 days after the date on which the 
     Secretary concerned makes a determination with respect to a 
     missing person under subsection (k), the Secretary shall--
       ``(1) provide the report reviewed by the Secretary in 
     making the determination to the primary next of kin, the 
     other members of the immediate family, and any other 
     previously designated person of the person; and
       ``(2) in the case of a person who continues to be in a 
     missing status, inform each individual referred to in 
     paragraph (1) that the United States will conduct a further 
     investigation into the whereabouts and status of the person 
     as specified in section 1505 of this title.
       ``(m) Treatment of Determination.--Any determination of the 
     status of a missing person under subsection (k) shall 
     supersede the determination of the status of the person under 
     section 1503 of this title and shall be treated as the 
     determination of the status of the person by all departments 
     and agencies of the United States.

     ``Sec. 1505. Further review

       ``(a) Subsequent Review.--The Secretary concerned shall 
     conduct subsequent inquiries into the whereabouts and status 
     of any person determined by the Secretary under section 1504 
     of this title to be in a missing status.
       ``(b) Frequency of Subsequent Reviews.--(1) In the case of 
     a missing person who was last known to be alive or who was 
     last suspected of being alive, the Secretary shall appoint a 
     board to conduct an inquiry with respect to a person under 
     this 
     subsection--
       ``(A) on or about three years after the date of the initial 
     report of the disappearance of the person under section 
     1502(a) of this title; and
       ``(B) not later than every three years thereafter.
       ``(2) In addition to appointment of boards under paragraph 
     (1), the Secretary shall appoint a board to conduct an 
     inquiry with respect to a missing person under this 
     subsection upon receipt of information that could result in a 
     change of status of the missing person. When the Secretary 
     appoints a board under this paragraph, the time for 
     subsequent appointments of a board under paragraph (1)(B) 
     shall be determined from the date of the receipt of such 
     information.
       ``(3) The Secretary is not required to appoint a board 
     under paragraph (1) with respect to the disappearance of any 
     person--
       ``(A) more than 30 years after the initial report of the 
     disappearance of the missing person required by section 1502 
     of this title; or
       ``(B) if, before the end of such 30-year period, the 
     missing person is accounted for.
       ``(c) Action Upon Discovery or Receipt of Information.--(1) 
     Whenever any United States intelligence agency or other 
     element of the Government finds or receives information that 
     may be related to a missing person, the information shall 
     promptly be forwarded to the office established under section 
     1501 of this title.
       ``(2) Upon receipt of information under paragraph (1), the 
     head of the office established under section 1501 of this 
     title shall as expeditiously as possible ensure that the 
     information is added to the appropriate case file for that 
     missing person and notify (A) the designated missing person's 
     counsel for that person, and (B) the primary next of kin and 
     any previously designated person for the missing person of 
     the existence of that information.
       ``(3) The head of the office established under section 1501 
     of this title, with the advice of the missing person's 
     counsel notified under paragraph (2), shall determine whether 
     the information is significant enough to require a board 
     review under this section.
       ``(d) Conduct of Proceedings.--If it is determined that 
     such a board should be appointed, the appointment of, and 
     activities before, a board appointed under this section shall 
     be governed by the provisions of section 1504 of this title 
     with respect to a board appointed under that section.

     ``Sec. 1506. Personnel files

       ``(a) Information in Files.--Except as provided in 
     subsections (b), (c), and (d), the Secretary concerned shall, 
     to the maximum extent practicable, ensure that the personnel 
     file of a missing person contains all information in the 
     possession of the United States relating to the disappearance 
     and whereabouts and status of the person.
       ``(b) Classified Information.--The Secretary concerned may 
     withhold classified information from a personnel file under 
     this section. If the Secretary concerned withholds classified 
     information from a personnel file, the Secretary shall ensure 
     that the file contains the following:
       ``(1) A notice that the withheld information exists.
       ``(2) A notice of the date of the most recent review of the 
     classification of the withheld information.
       ``(c) Protection of Privacy.--The Secretary concerned shall 
     maintain personnel files under this section, and shall permit 
     disclosure of or access to such files, in accordance with the 
     provisions of section 552a of title 5 and with other 
     applicable laws and regulations pertaining to the privacy of 
     the persons covered by the files.
       ``(d) Privileged Information.--(1) The Secretary concerned 
     shall withhold from personnel files under this section, as 
     privileged information, debriefing reports provided by 
     missing persons returned to United States control which are 
     obtained under a promise of confidentiality made for the 
     purpose of ensuring the fullest possible disclosure of 
     information.
       ``(2) If a debriefing report contains non-derogatory 
     information about the status and whereabouts of a missing 
     person other than the source of the debriefing report, the 
     Secretary concerned shall prepare an extract of the non-
     derogatory information. That extract, following a review by 
     the source of the debriefing report, shall be placed in the 
     personnel file of the missing person in such a manner as to 
     protect the identity of the source providing the information.
       ``(3) Whenever the Secretary concerned withholds a 
     debriefing report from a personnel file under this 
     subsection, the Secretary shall ensure that the file contains 
     a notice that withheld information exists.
       ``(e) Wrongful Withholding.--Except as provided in 
     subsections (a) through (d), any person who knowingly and 
     willfully withholds from the personnel file of a missing 
     person any information relating to the disappearance or 
     whereabouts and status of a missing person shall be fined as 
     provided in title 18 or imprisoned not more than one year, or 
     both.
       ``(f) Availability of Information.--The Secretary concerned 
     shall, upon request, make available the contents of the 
     personnel file of a missing person to the primary next of 
     kin, the other members of the immediate family, or any other 
     previously designated person of the person.

     ``Sec. 1507. Recommendation of status of death

       ``(a) Requirements Relating to Recommendation.--A board 
     appointed under section 1503, 1504, or 1505 of this title may 
     not recommend that a person be declared dead unless--
       ``(1) credible evidence exists to suggest that the person 
     is dead;
       ``(2) the United States possesses no credible evidence that 
     suggests that the person is alive; and
       ``(3) representatives of the United States--
       ``(A) have made a complete search of the area where the 
     person was last seen (unless, after making a good faith 
     effort to obtain access to such area, such representatives 
     are not granted such access); and
       ``(B) have examined the records of the government or entity 
     having control over the area where the person was last seen 
     (unless, after making a good faith effort to obtain access to 
     such records, such representatives are not granted such 
     access).
       ``(b) Submittal of Information on Death.--If a board 
     appointed under section 1503, 1504, or 1505 of this title 
     makes a recommendation that a missing person be declared 
     dead, the board shall include in the report of the board with 
     respect to the person under that section the following:
       ``(1) A detailed description of the location where the 
     death occurred.
       ``(2) A statement of the date on which the death occurred.
       ``(3) A description of the location of the body, if 
     recovered.
       ``(4) If the body has been recovered and is not 
     identifiable through visual means, a certification by a 
     practitioner of an appropriate forensic science that the body 
     recovered is that of the missing person.

     ``Sec. 1508. Judicial review

       ``(a) Right of Review.--A person who is the primary next of 
     kin (or the previously designated person) of a person who is 
     the subject of a finding described in subsection (b) may 
     obtain judicial review in a United States district court of 
     that finding, but only on the basis of a claim that there is 
     information that could affect the status of the missing 
     person's case that was not adequately considered during the 
     administrative review process under this chapter. Any such 
     review shall be as provided in section 706 of title 5.
       ``(b) Findings for Which Judicial Review May be Sought.--
     Subsection (a) applies to the following findings:
       ``(1) A finding by a board appointed under section 1504 or 
     1505 of this title that a missing person is dead.
       ``(2) A finding by a board appointed under section 1509 of 
     this title that confirms that a missing person formerly 
     declared dead is in fact dead.
       ``(c) Subsequent Review.--Appeals from a decision of the 
     district court shall be taken 

[[Page H400]]
     to the appropriate United States court of appeals and to the Supreme 
     Court as provided by law.

     ``Sec. 1509. Preenactment, special interest cases

       ``(a) Review of Status.--In the case of an unaccounted for 
     person covered by section 1501(c) of this title who is 
     described in subsection (b), if new information that could 
     change the status of that person is found or received by a 
     United States intelligence agency, by a Department of Defense 
     agency, or by a person specified in section 1504(g) of this 
     title, that information shall be provided to the Secretary of 
     Defense with a request that the Secretary evaluate the 
     information in accordance with sections 1505(c) and 1505(d) 
     of this title.
       ``(b) Cases Eligible for Review.--The cases eligible for 
     review under this section are the following:
       ``(1) With respect to the Korean conflict, any unaccounted 
     for person who was classified as a prisoner of war or as 
     missing in action during that conflict and who (A) was known 
     to be or suspected to be alive at the end of that conflict, 
     or (B) was classified as missing in action and whose capture 
     was possible.
       ``(2) With respect to the Cold War, any unaccounted for 
     person who was engaged in intelligence operations (such as 
     aerial `ferret' reconnaissance missions over and around the 
     Soviet Union and China) during the Cold War.
       ``(3) With respect to the Indochina war era, any 
     unaccounted for person who was classified as a prisoner of 
     war or as missing in action during the Indochina conflict.
       ``(c) Special Rule for Persons Classified as `KIA/BNR'.--In 
     the case of a person described in subsection (b) who was 
     classified as `killed in action/body not recovered', the case 
     of that person may be reviewed under this section only if the 
     new information referred to in subsection (a) is compelling.
       ``(d) Definitions.--In this section:
       ``(1) The term `Korean conflict' means the period beginning 
     on June 27, 1950, and ending on January 31, 1955.
       ``(2) The term `Cold War' means the period beginning on 
     September 2, 1945, and ending on August 21, 1991.
       ``(3) The term `Indochina war era' means the period 
     beginning on July 8, 1959, and ending on May 15, 1975.

     ``Sec. 1510. Applicability to Coast Guard

       ``(a) Designated Officer To Have Responsibility.--The 
     Secretary of Transportation shall designate an officer of the 
     Department of Transportation to have responsibility within 
     the Department of Transportation for matters relating to 
     missing persons who are members of the Coast Guard.
       ``(b) Procedures.--The Secretary of Transportation shall 
     prescribe procedures for the determination of the status of 
     persons described in section 1501(c) of this title who are 
     members of the Coast Guard and for the collection, analysis, 
     review, and update of information on such persons. To the 
     maximum extent practicable, the procedures prescribed under 
     this section shall be similar to the procedures prescribed by 
     the Secretary of Defense under section 1501(b) of this title.

     ``Sec. 1511. Return alive of person declared missing or dead

       ``(a) Pay and Allowances.--Any person (except for a person 
     subsequently determined to have been absent without leave or 
     a deserter) in a missing status or declared dead under 
     subchapter VII of chapter 55 of title 5 or chapter 10 of 
     title 37 or by a board appointed under this chapter who is 
     found alive and returned to the control of the United States 
     shall be paid for the full time of the absence of the person 
     while given that status or declared dead under the law and 
     regulations relating to the pay and allowances of persons 
     returning from a missing status.
       ``(b) Effect on Gratuities Paid as a Result of Status.--
     Subsection (a) shall not be interpreted to invalidate or 
     otherwise affect the receipt by any person of a death 
     gratuity or other payment from the United States on behalf of 
     a person referred to in subsection (a) before the date of the 
     enactment of this chapter.

     ``Sec. 1512. Effect on State law

       ``(a) Nonpreemption of State Authority.--Nothing in this 
     chapter shall be construed to invalidate or limit the power 
     of any State court or administrative entity, or the power of 
     any court or administrative entity of any political 
     subdivision thereof, to find or declare a person dead for 
     purposes of such State or political subdivision.
       ``(b) State Defined.--In this section, the term `State' 
     includes the District of Columbia, the Commonwealth of Puerto 
     Rico, and any territory or possession of the United States.

     ``Sec. 1513. Definitions

       ``In this chapter:
       ``(1) The term `missing person' means--
       ``(A) a member of the Armed Forces on active duty who is in 
     a missing status; or
       ``(B) a civilian employee of the Department of Defense or 
     an employee of a contractor of the Department of Defense who 
     serves with or accompanies the Armed Forces in the field 
     under orders and who is in a missing status.
       ``(2) The term `missing status' means the status of a 
     missing person who is determined to be absent in a category 
     of any of the following:
       ``(A) Missing.
       ``(B) Missing in action.
       ``(C) Interned in a foreign country.
       ``(D) Captured.
       ``(E) Beleaguered.
       ``(F) Besieged.
       ``(G) Detained in a foreign country against that person's 
     will.
       ``(3) The term `accounted for', with respect to a person in 
     a missing status, means that--
       ``(A) the person is returned to United States control 
     alive;
       ``(B) the remains of the person are recovered and, if not 
     identifiable through visual means as those of the missing 
     person, are identified as those of the missing person by a 
     practitioner of an appropriate forensic science; or
       ``(C) credible evidence exists to support another 
     determination of the person's status.
       ``(4) The term `primary next of kin', in the case of a 
     missing person, means the individual authorized to direct 
     disposition of the remains of the person under section 
     1482(c) of this title.
       ``(5) The term `member of the immediate family', in the 
     case of a missing person, means the following:
       ``(A) The spouse of the person.
       ``(B) A natural child, adopted child, stepchild, or 
     illegitimate child (if acknowledged by the person or 
     parenthood has been established by a court of competent 
     jurisdiction) of the person, except that if such child has 
     not attained the age of 18 years, the term means a surviving 
     parent or legal guardian of such child.
       ``(C) A biological parent of the person, unless legal 
     custody of the person by the parent has been previously 
     terminated by reason of a court decree or otherwise under law 
     and not restored.
       ``(D) A brother or sister of the person, if such brother or 
     sister has attained the age of 18 years.
       ``(E) Any other blood relative or adoptive relative of the 
     person, if such relative was given sole legal custody of the 
     person by a court decree or otherwise under law before the 
     person attained the age of 18 years and such custody was not 
     subsequently terminated before that time.
       ``(6) The term `previously designated person', in the case 
     of a missing person, means an individual designated by the 
     person under section 655 of this title for purposes of this 
     chapter.
       ``(7) The term `classified information' means any 
     information the unauthorized disclosure of which (as 
     determined under applicable law and regulations) could 
     reasonably be expected to damage the national security.
       ``(8) The term `theater component commander' means, with 
     respect to any of the combatant commands, an officer of any 
     of the armed forces who (A) is commander of all forces of 
     that armed force assigned to that combatant command, and (B) 
     is directly subordinate to the commander of the combatant 
     command.''.
       (2) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part II of subtitle A, of title 10, 
     United States Code, are amended by inserting after the item 
     relating to chapter 75 the following new item:

``76. Missing Persons.......................................1501''.....

       (c) Conforming Amendments.--Chapter 10 of title 37, United 
     States Code, is amended as follows:
       (1) Section 555 is amended--
       (A) in subsection (a), by striking out ``When a member'' 
     and inserting in lieu thereof ``Except as provided in 
     subsection (d), when a member''; and
       (B) by adding at the end the following new subsection:
       ``(d) This section does not apply in a case to which 
     section 1502 of title 10 applies.''.
       (2) Section 552 is amended--
       (A) in subsection (a), by striking out ``for all 
     purposes,'' in the second sentence of the matter following 
     paragraph (2) and all that follows through the end of the 
     sentence and inserting in lieu thereof ``for all purposes.'';
       (B) in subsection (b), by inserting ``or under chapter 76 
     of title 10'' before the period at the end; and
       (C) in subsection (e), by inserting ``or under chapter 76 
     of title 10'' after ``section 555 of this title''.
       (3) Section 553 is amended--
       (A) in subsection (f), by striking out ``the date the 
     Secretary concerned receives evidence that'' and inserting in 
     lieu thereof ``the date on which, in a case covered by 
     section 555 of this title, the Secretary concerned receives 
     evidence, or, in a case covered by chapter 76 of title 10, 
     the Secretary concerned determines pursuant to that chapter, 
     that''; and
       (B) in subsection (g), by inserting ``or under chapter 76 
     of title 10'' after ``section 555 of this title''.
       (4) Section 556 is amended--
       (A) in subsection (a), by inserting after paragraph (7) the 
     following:
     ``Paragraphs (1), (5), (6), and (7) only apply with respect 
     to a case to which section 555 of this title applies.'';
       (B) in subsection (b), by inserting ``, in a case to which 
     section 555 of this title applies,'' after ``When the 
     Secretary concerned''; and
       (C) in subsection (h)--
       (i) in the first sentence, by striking out ``status'' and 
     inserting in lieu thereof ``pay''; and
       (ii) in the second sentence, by inserting ``in a case to 
     which section 555 of this title applies'' after ``under this 
     section''.
       (d) Designation of Persons Having Interest in Status of 
     Service Members.--(1) Chapter 37 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:
     
[[Page H401]]


     ``Sec. 655. Designation of persons having interest in status 
       of a missing member

       ``(a) The Secretary concerned shall, upon the enlistment or 
     appointment of a person in the armed forces, require that the 
     person specify in writing the person or persons, if any, 
     other than that person's primary next of kin or immediate 
     family, to whom information on the whereabouts and status of 
     the member shall be provided if such whereabouts and status 
     are investigated under chapter 76 of this title. The 
     Secretary shall periodically, and whenever the member is 
     deployed as part of a contingency operation or in other 
     circumstances specified by the Secretary, require that such 
     designation be reconfirmed, or modified, by the member.
       ``(b) The Secretary concerned shall, upon the request of a 
     member, permit the member to revise the person or persons 
     specified by the member under subsection (a) at any time. Any 
     such revision shall be in writing.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``655. Designation of persons having interest in status of a missing 
              member.''.

       (e) Accounting for Civilian Employee and Contractors of the 
     United States.--(1) The Secretary of State shall carry out a 
     comprehensive study of the provisions of subchapter VII of 
     chapter 55 of title 5, United States Code (commonly referred 
     to as the ``Missing Persons Act of 1942'') (5 U.S.C. 5561 et 
     seq.) and any other law or regulation establishing procedures 
     for the accounting for of civilian employees of the United 
     States or contractors of the United States who serve with or 
     accompany the Armed Forces in the field. The purpose of the 
     study shall be to determine the means, if any, by which those 
     procedures may be improved.
       (2) The Secretary of State shall carry out the study 
     required under paragraph (1) in consultation with the 
     Secretary of Defense, the Secretary of Transportation, the 
     Director of Central Intelligence, and the heads of such other 
     departments and agencies of the United States as the 
     President designates for that purpose.
       (3) In carrying out the study, the Secretary of State shall 
     examine the procedures undertaken when a civilian employee 
     referred to in paragraph (1) becomes involuntarily absent as 
     a result of a hostile action, or under circumstances 
     suggesting that the involuntary absence is a result of a 
     hostile action, and whose status is undetermined or who is 
     unaccounted for, including procedures for--
       (A) search and rescue for the employee;
       (B) determining the status of the employee;
       (C) reviewing and changing the status of the employee;
       (D) determining the rights and benefits accorded to the 
     family of the employee; and
       (E) maintaining and providing appropriate access to the 
     records of the employee and the investigation into the status 
     of the employee.
       (4) Not later than one year after the date of the enactment 
     of this Act, the Secretary of State shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives a report 
     on the study carried out by the Secretary under this 
     subsection. The report shall include the recommendations, if 
     any, of the Secretary for legislation to improve the 
     procedures covered by the study.

     SEC. 570. ASSOCIATE DIRECTOR OF CENTRAL INTELLIGENCE FOR 
                   MILITARY SUPPORT.

       Section 102 of the National Security Act of 1947 (50 U.S.C. 
     403) is amended by adding at the end the following:
       ``(e) In the event that neither the Director nor Deputy 
     Director of Central Intelligence is a commissioned officer of 
     the Armed Forces, a commissioned officer of the Armed Forces 
     appointed to the position of Associate Director of Central 
     Intelligence for Military Support, while serving in such 
     position, shall not be counted against the numbers and 
     percentages of commissioned officers of the rank and grade of 
     such officer authorized for the armed force of which such 
     officer is a member.''.
      Subtitle G--Support for Non-Department of Defense Activities

     SEC. 571. REPEAL OF CERTAIN CIVIL-MILITARY PROGRAMS.

       (a) Repeal of Civil-Military Cooperative Action Program.--
     The following provisions of law are repealed:
       (1) Section 410 of title 10, United States Code.
       (2) Section 1081(a) of the National Defense Authorization 
     Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 410 
     note).
       (b) Repeal of Related Provision.--Section 1045 of the 
     National Defense Authorization Act for Fiscal Year 1993 
     (Public Law 102-484; 10 U.S.C. 410 note), relating to a pilot 
     outreach program to reduce demand for illegal drugs, is 
     repealed.
       (c) Technical and Conforming Amendments.--Chapter 20 of 
     title 10, United States Code, is amended--
       (1) by striking out the table of subchapters after the 
     chapter heading;
       (2) by striking out the subchapter heading for subchapter 
     I; and
       (3) by striking out the subchapter heading for subchapter 
     II and the table of sections following that subchapter 
     heading.

     SEC. 572. TRAINING ACTIVITIES RESULTING IN INCIDENTAL SUPPORT 
                   AND SERVICES FOR ELIGIBLE ORGANIZATIONS AND 
                   ACTIVITIES OUTSIDE THE DEPARTMENT OF DEFENSE.

       (a) In General.--(1) Chapter 101 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2012. Support and services for eligible organizations 
       and activities outside Department of Defense

       ``(a) Authority To Provide Services and Support.--Under 
     regulations prescribed by the Secretary of Defense, the 
     Secretary of a military department may in accordance with 
     this section authorize units or individual members of the 
     armed forces under that Secretary's jurisdiction to provide 
     support and services to non-Department of Defense 
     organizations and activities specified in subsection (e), but 
     only if--
       ``(1) such assistance is authorized by a provision of law 
     (other than this section); or
       ``(2) the provision of such assistance is incidental to 
     military training.
       ``(b) Scope of Covered Activities Subject to Section.--This 
     section does not--
       ``(1) apply to the provision by the Secretary concerned, 
     under regulations prescribed by the Secretary of Defense, of 
     customary community relations and public affairs activities 
     conducted in accordance with Department of Defense policy; or
       ``(2) prohibit the Secretary concerned from encouraging 
     members of the armed forces under the Secretary's 
     jurisdiction to provide volunteer support for community 
     relations activities under regulations prescribed by the 
     Secretary of Defense.
       ``(c) Requirement for Specific Request.--Assistance under 
     subsection (a) may only be provided if--
       ``(1) the assistance is requested by a responsible official 
     of the organization to which the assistance is to be 
     provided; and
       ``(2) the assistance is not reasonably available from a 
     commercial entity or (if so available) the official 
     submitting the request for assistance certifies that the 
     commercial entity that would otherwise provide such services 
     has agreed to the provision of such services by the armed 
     forces.
       ``(d) Relationship to Military Training.--(1) Assistance 
     under subsection (a) may only be provided if the following 
     requirements are met:
       ``(A) The provision of such assistance--
       ``(i) in the case of assistance by a unit, will accomplish 
     valid unit training requirements; and
       ``(ii) in the case of assistance by an individual member, 
     will involve tasks directly related to the specific military 
     occupational specialty of the member.
       ``(B) The provision of such assistance will not adversely 
     affect the quality of training or otherwise interfere with 
     the ability of a member or unit of the armed forces to 
     perform the military functions of the member or unit.
       ``(C) The provision of such assistance will not result in a 
     significant increase in the cost of the training.
       ``(2) Subparagraph (A)(i) of paragraph (1) does not apply 
     in a case in which the assistance to be provided consists 
     primarily of military manpower and the total amount of such 
     assistance in the case of a particular project does not 
     exceed 100 man-hours.
       ``(e) Eligible Entities.--The following organizations and 
     activities are eligible for assistance under this section:
       ``(1) Any Federal, regional, State, or local governmental 
     entity.
       ``(2) Youth and charitable organizations specified in 
     section 508 of title 32.
       ``(3) Any other entity as may be approved by the Secretary 
     of Defense on a case-by-case basis.
       ``(f) Regulations.--The Secretary of Defense shall 
     prescribe regulations governing the provision of assistance 
     under this section. The regulations shall include the 
     following:
       ``(1) Rules governing the types of assistance that may be 
     provided.
       ``(2) Procedures governing the delivery of assistance that 
     ensure, to the maximum extent practicable, that such 
     assistance is provided in conjunction with, rather than 
     separate from, civilian efforts.
       ``(3) Procedures for appropriate coordination with civilian 
     officials to ensure that the assistance--
       ``(A) meets a valid need; and
       ``(B) does not duplicate other available public services.
       ``(4) Procedures to ensure that Department of Defense 
     resources are not applied exclusively to the program 
     receiving the assistance.
       ``(g) Advisory Councils.--(1) The Secretary of Defense 
     shall encourage the establishment of advisory councils at 
     regional, State, and local levels, as appropriate, in order 
     to obtain recommendations and guidance concerning assistance 
     under this section from persons who are knowledgeable about 
     regional, State, and local conditions and needs.
       ``(2) The advisory councils should include officials from 
     relevant military organizations, representatives of 
     appropriate local, State, and Federal agencies, 
     representatives of civic and social service organizations, 
     business representatives, and labor representatives.
       ``(3) The Federal Advisory Committee Act (5 U.S.C. App.) 
     shall not apply to such councils.
       ``(h) Construction of Provision.--Nothing in this section 
     shall be construed as authorizing--
       ``(1) the use of the armed forces for civilian law 
     enforcement purposes or for response to natural or manmade 
     disasters; or
     
[[Page H402]]

       ``(2) the use of Department of Defense personnel or 
     resources for any program, project, or activity that is 
     prohibited by law.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2012. Support and services for eligible organizations and activities 
              outside Department of Defense.''.

     SEC. 573. NATIONAL GUARD CIVILIAN YOUTH OPPORTUNITIES PILOT 
                   PROGRAM.

       (a) Termination.--The authority under subsection (a) of 
     section 1091 of the National Defense Authorization Act for 
     Fiscal Year 1993 (Public Law 102-484; 32 U.S.C. 501 note) to 
     carry out a pilot program under that section is hereby 
     continued through the end of the 18-month period beginning on 
     the date of the enactment of this Act and such authority 
     shall terminate as of the end of that period.
       (b) Limitation on Number of Programs.--During the period 
     beginning on the date of the enactment of this Act and ending 
     on the termination of the pilot program under subsection (a), 
     the number of programs carried out under subsection (d) of 
     that section as part of the pilot program may not exceed the 
     number of such programs as of September 30, 1995.

     SEC. 574. TERMINATION OF FUNDING FOR OFFICE OF CIVIL-MILITARY 
                   PROGRAMS IN OFFICE OF THE SECRETARY OF DEFENSE.

       No funds may be obligated or expended after the date of the 
     enactment of this Act (1) for the office that as of the date 
     of the enactment of this Act is designated, within the Office 
     of the Assistant Secretary of Defense for Reserve Affairs, as 
     the Office of Civil-Military Programs, or (2) for any other 
     entity within the Office of the Secretary of Defense that has 
     an exclusive or principal mission of providing centralized 
     direction for activities under section 2012 of title 10, 
     United States Code, as added by section 572.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS
                     Subtitle A--Pay and Allowances

     SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1996.

       (a) Rescission of Prior Section 1009 Adjustment.--The 
     adjustment made as of January 1, 1996, pursuant to section 4 
     of Executive order No. 12984 (issued December 28, 1995), in 
     elements of compensation of members of the uniformed services 
     pursuant to section 1009 of title 37, United States Code, is 
     hereby rescinded.
       (b) Increase in Basic Pay and BAS.--The rates of basic pay 
     and basic allowance for subsistence of members of the 
     uniformed services, as in effect on December 31, 1995, are 
     hereby increased by 2.4 percent.
       (c) Increase in BAQ.--The rates of basic allowance for 
     quarters of members of the uniformed services, as in effect 
     on December 31, 1995, are hereby increased by 5.2 percent.
       (d) Effective Date.--This section shall take effect as of 
     January 1, 1996.

     SEC. 602. LIMITATION ON BASIC ALLOWANCE FOR SUBSISTENCE FOR 
                   MEMBERS RESIDING WITHOUT DEPENDENTS IN 
                   GOVERNMENT QUARTERS.

       (a) Percentage Limitation.--Subsection (b) of section 402 
     of title 37, United States Code, is amended by adding after 
     the last sentence the following new paragraph:
       ``(4) In the case of enlisted members of the Army, Navy, 
     Air Force, or Marine Corps who, when present at their 
     permanent duty station, reside without dependents in 
     Government quarters, the Secretary concerned may not provide 
     a basic allowance for subsistence to more than 12 percent of 
     such members under the jurisdiction of the Secretary 
     concerned. The Secretary concerned may exceed such percentage 
     if the Secretary determines that compliance would increase 
     costs to the Government, would impose financial hardships on 
     members otherwise entitled to a basic allowance for 
     subsistence, or would reduce the quality of life for such 
     members. This paragraph shall not apply to members described 
     in the first sentence when the members are not residing at 
     their permanent duty station. The Secretary concerned shall 
     achieve the percentage limitation specified in this paragraph 
     as soon as possible after the date of the enactment of this 
     paragraph, but in no case later than September 30, 1996.''.
       (b) Stylistic Amendments.--Such subsection is further 
     amended--
       (1) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C);
       (2) by inserting ``(1)'' after ``(b)'';
       (3) by designating the text composed of the second, third, 
     and fourth sentences as paragraph (2); and
       (4) by designating the text composed of the fifth and sixth 
     sentences as paragraph (3).
       (c) Conforming Amendments.--(1) Subsection (e) of such 
     section is amended--
       (A) in paragraph (1), by striking out ``the third sentence 
     of subsection (b)'' and inserting in lieu thereof 
     ``subsection (b)(2)''; and
       (B) in paragraph (2), by striking out ``subsection (b)'' 
     and inserting in lieu thereof ``subsection (b)(2)''.
       (2) Section 1012 of title 37, United States Code, is 
     amended by striking out ``the last sentence of section 
     402(b)'' and inserting in lieu thereof ``section 402(b)(3)''.
       (d) Report Required.--Not later than March 31, 1996, the 
     Secretary of Defense shall submit to Congress a report 
     identifying, for the Army, Navy, Air Force, and Marine 
     Corps--
       (1) the number of members who reside without dependents in 
     Government quarters at their permanent duty stations and 
     receive a basic allowance for subsistence under section 402 
     of title 37, United States Code;
       (2) such number as a percentage of the total number of 
     members who reside without dependents in Government quarters;
       (3) a recommended maximum percentage of the members 
     residing without dependents in Government quarters at their 
     permanent duty station who should receive a basic allowance 
     for subsistence; and
       (4) the reasons such maximum percentage is recommended.

     SEC. 603. ELECTION OF BASIC ALLOWANCE FOR QUARTERS INSTEAD OF 
                   ASSIGNMENT TO INADEQUATE QUARTERS.

       (a) Election Authorized.--Section 403(b) of title 37, 
     United States Code, is amended--
       (1) by inserting ``(1)'' after ``(b)'';
       (2) by designating the second sentence as paragraph (2) 
     and, as so designated, by striking out ``However, subject'' 
     and inserting in lieu thereof ``Subject''; and
       (3) by adding at the end the following new paragraph:
       ``(3) A member without dependents who is in pay grade E-6 
     and who is assigned to quarters of the United States that do 
     not meet the minimum adequacy standards established by the 
     Department of Defense for members in such pay grade, or to a 
     housing facility under the jurisdiction of a uniformed 
     service that does not meet such standards, may elect not to 
     occupy such quarters or facility and instead to receive the 
     basic allowance for quarters prescribed for the member's pay 
     grade by this section.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 1996.

     SEC. 604. PAYMENT OF BASIC ALLOWANCE FOR QUARTERS TO MEMBERS 
                   IN PAY GRADE E-6 WHO ARE ASSIGNED TO SEA DUTY.

       (a) Payment Authorized.--Section 403(c)(2) of title 37, 
     United States Code, is amended--
       (1) in the first sentence, by striking out ``E-7'' and 
     inserting in lieu thereof ``E-6''; and
       (2) in the second sentence, by striking out ``E-6'' and 
     inserting in lieu thereof ``E-5''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 1996.

     SEC. 605. LIMITATION ON REDUCTION OF VARIABLE HOUSING 
                   ALLOWANCE FOR CERTAIN MEMBERS.

       (a) Limitation on Reduction in VHA.--(1) Subsection (c)(3) 
     of section 403a of title 37, United States Code, is amended 
     by adding at the end the following new sentence: ``However, 
     so long as a member of a uniformed service retains 
     uninterrupted eligibility to receive a variable housing 
     allowance within an area and the member's certified housing 
     costs are not reduced (as indicated by certifications 
     provided by the member under subsection (b)(4)), the monthly 
     amount of a variable housing allowance under this section for 
     the member within that area may not be reduced as a result of 
     systematic adjustments required by changes in housing costs 
     within that area.''.
       (2) The amendment made by paragraph (1) shall apply for 
     fiscal years after fiscal year 1995.
       (b) Effect on Total Amount Available for VHA.--Subsection 
     (d)(3) of such section is amended by inserting after the 
     first sentence the following new sentence: ``In addition, the 
     total amount determined under paragraph (1) shall be adjusted 
     to ensure that sufficient amounts are available to allow 
     payment of any additional amounts of variable housing 
     allowance necessary as a result of the requirements of the 
     second sentence of subsection (c)(3).''.
       (c) Report on Implementation.--Not later than June 1, 1996, 
     the Secretary of Defense shall submit to Congress a report 
     describing the procedures to be used to implement the 
     amendments made by this section and the costs of such 
     amendments.
       (d) Resolving VHA Inadequacies in High Housing Cost 
     Areas.--If the Secretary of Defense determines that, despite 
     the amendments made by this section, inadequacies exist in 
     the provision of variable housing allowances under section 
     403a of title 37, United States Code, the Secretary shall 
     submit to Congress a report containing a legislative proposal 
     to address the inadequacies. The Secretary shall make the 
     determination required by this subsection and submit the 
     report, if necessary, not later than May 31, 1996.

     SEC. 606. CLARIFICATION OF LIMITATION ON ELIGIBILITY FOR 
                   FAMILY SEPARATION ALLOWANCE.

       Section 427(b)(4) of title 37, United States Code, is 
     amended in the first sentence by inserting ``paragraph (1)(A) 
     of'' after ``not entitled to an allowance under''.
           Subtitle B--Bonuses and Special and Incentive Pays

     SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE FORCES.

       (a) Selected Reserve Reenlistment Bonus.--Section 308b(f) 
     of title 37, United States Code, is amended by striking out 
     ``September 30, 1996'' and inserting in lieu thereof 
     ``September 30, 1997''.
       (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1996'' and inserting in lieu thereof 
     ``September 30, 1997''.
     
[[Page H403]]

       (c) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1996'' and inserting in lieu thereof 
     ``September 30, 1997''.
       (d) Ready Reserve Enlistment and Reenlistment Bonus.--
     Section 308h(g) of title 37, United States Code, is amended 
     by striking out ``September 30, 1996'' and inserting in lieu 
     thereof ``September 30, 1997''.
       (e) Prior Service Enlistment Bonus.--Section 308i(i) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1996'' and inserting in lieu thereof 
     ``September 30, 1997''.

     SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY FOR 
                   NURSE OFFICER CANDIDATES, REGISTERED NURSES, 
                   AND NURSE ANESTHETISTS.

       (a) Nurse Officer Candidate Accession Program.--Section 
     2130a(a)(1) of title 10, United States Code, is amended by 
     striking out ``September 30, 1996'' and inserting in lieu 
     thereof ``September 30, 1997''.
       (b) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of title 37, United States Code, is amended by 
     striking out ``September 30, 1996'' and inserting in lieu 
     thereof ``September 30, 1997''.
       (c) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of title 37, United States Code, is amended by 
     striking out ``September 30, 1996'' and inserting in lieu 
     thereof ``September 30, 1997''.

     SEC. 613. EXTENSION OF AUTHORITY RELATING TO PAYMENT OF OTHER 
                   BONUSES AND SPECIAL PAYS.

       (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1995,'' and inserting in lieu thereof 
     ``September 30, 1997''.
       (b) Reenlistment Bonus for Active Members.--Section 308(g) 
     of title 37, United States Code, is amended by striking out 
     ``September 30, 1996'' and inserting in lieu thereof 
     ``September 30, 1997''.
       (c) Enlistment Bonuses for Critical Skills.--Sections 
     308a(c) and 308f(c) of title 37, United States Code, are 
     each 
     amended by striking out ``September 30, 1996'' and inserting 
     in lieu thereof ``September 30, 1997''.
       (d) Special Pay for Enlisted Members of the Selected 
     Reserve Assigned to Certain High Priority Units.--Section 
     308d(c) of title 37, United States Code, is amended by 
     striking out ``September 30, 1996'' and inserting in lieu 
     thereof ``September 30, 1997''.
       (e) Special Pay for Nuclear Qualified Officers Extending 
     Period of Active Service.--Section 312(e) of title 37, United 
     States Code, is amended by striking out ``September 30, 
     1996'' and inserting in lieu thereof ``September 30, 1997''.
       (f) Nuclear Career Accession Bonus.--Section 312b(c) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1996'' and inserting in lieu thereof 
     ``September 30, 1997''.
       (g) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
     of title 37, United States Code, is amended by striking out 
     ``October 1, 1996'' and inserting in lieu thereof ``October 
     1, 1997''.
       (h) Repayment of Education Loans for Certain Health 
     Professionals Who Serve in the Selected Reserve.--Section 
     16302(d) of title 10, United States Code, is amended by 
     striking out ``October 1, 1996'' and inserting in lieu 
     thereof ``October 1, 1997''.
       (i) Coverage of Period of Lapsed Agreement Authority.--(1) 
     In the case of an officer described in section 301b(b) of 
     title 37, United States Code, who executes an agreement 
     described in paragraph (2) during the 90-day period beginning 
     on the date of the enactment of this Act, the Secretary 
     concerned may treat the agreement for purposes of the 
     retention bonus authorized under the agreement as having been 
     executed and accepted on the first date on which the officer 
     would have qualified for such an agreement had the amendment 
     made by subsection (a) taken effect on October 1, 1995.
       (2) An agreement referred to in this subsection is a 
     service agreement with the Secretary concerned that is a 
     condition for the payment of a retention bonus under section 
     301b of title 37, United States Code.
       (3) For purposes of this subsection, the term ``Secretary 
     concerned'' has the meaning given that term in section 101(5) 
     of title 37, United States Code.

     SEC. 614. CODIFICATION AND EXTENSION OF SPECIAL PAY FOR 
                   CRITICALLY SHORT WARTIME HEALTH SPECIALISTS IN 
                   THE SELECTED RESERVES.

       (a) Special Pay Authorized.--(1) Chapter 5 of title 37, 
     United States Code, is amended by inserting after section 
     302f the following new section:

     ``Sec. 302g. Special pay: Selected Reserve health care 
       professionals in critically short wartime specialties

       ``(a) Special Pay Authorized.--An officer of a reserve 
     component of the armed forces described in subsection (b) who 
     executes a written agreement under which the officer agrees 
     to serve in the Selected Reserve of an armed force for a 
     period of not less than one year nor more than three years, 
     beginning on the date the officer accepts the award of 
     special pay under this section, may be paid special pay at an 
     annual rate not to exceed $10,000.
       ``(b) Eligible Officers.--An officer referred to in 
     subsection (a) is an officer in a health care profession who 
     is qualified in a specialty designated by regulations as a 
     critically short wartime specialty.
       ``(c) Time for Payment.--Special pay under this section 
     shall be paid annually at the beginning of each twelve-month 
     period for which the officer has agreed to serve.
       ``(d) Refund Requirement.--An officer who voluntarily 
     terminates service in the Selected Reserve of an armed force 
     before the end of the period for which a payment was made to 
     such officer under this section shall refund to the United 
     States the full amount of the payment made for the period on 
     which the payment was based.
       ``(e) Inapplicability of Discharge in Bankruptcy.--A 
     discharge in bankruptcy under title 11 that is entered less 
     than five years after the termination of an agreement under 
     this section does not discharge the person receiving special 
     pay under the agreement from the debt arising under the 
     agreement.
       ``(f) Termination of Agreement Authority.--No agreement 
     under this section may be entered into after September 30, 
     1997.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     302f the following new item:

``302g. Special pay: Selected Reserve health care professionals in 
              critically short wartime specialties.''.

       (b) Conforming Amendment.--Section 303a of title 37, United 
     States Code, is amended by striking out ``302, 302a, 302b, 
     302c, 302d, 302e,'' each place it appears and inserting in 
     lieu thereof ``302 through 302g,''.
       (c) Conforming Repeal.--(1) Section 613 of the National 
     Defense Authorization Act, Fiscal Year 1989 (Public Law 100-
     456; 37 U.S.C. 302 note) is repealed.
       (2) The provisions of section 613 of the National Defense 
     Authorization Act, Fiscal Year 1989, as in effect on the day 
     before the date of the enactment of this Act, shall continue 
     to apply to agreements entered into under such section before 
     such date.

     SEC. 615. HAZARDOUS DUTY INCENTIVE PAY FOR WARRANT OFFICERS 
                   AND ENLISTED MEMBERS SERVING AS AIR WEAPONS 
                   CONTROLLERS.

       (a) Inclusion of Additional Members.--Subsection (a)(11) of 
     section 301 of title 37, United States Code, is amended by 
     striking out ``an officer (other than a warrant officer)'' 
     and inserting in lieu thereof ``a member''.
       (b) Calculation of Hazardous Duty Incentive Pay.--The table 
     in subparagraph (A) of subsection (c)(2) of such section is 
     amended to read as follows:

----------------------------------------------------------------------------------------------------------------
                                                   Years of service as an air weapons controller                
                                 -------------------------------------------------------------------------------
           ``Pay grade              2 or                                                                        
                                    less     Over 2    Over 3    Over 4    Over 6    Over 8    Over 10          
----------------------------------------------------------------------------------------------------------------
``O-7 and above.................      $200      $200      $200      $200      $200      $200      $200          
``O-6...........................       225       250       300       325       350       350       350          
``O-5...........................       200       250       300       325       350       350       350          
``O-4...........................       175       225       275       300       350       350       350          
``O-3...........................       125       156       188       206       350       350       350          
``O-2...........................       125       156       188       206       250       300       300          
``O-1...........................       125       156       188       206       250       250       250          
``W-4...........................       200       225       275       300       325       325       325          
``W-3...........................       175       225       275       300       325       325       325          
``W-2...........................       150       200       250       275       325       325       325          
``W-1...........................       100       125       150       175       325       325       325          
``E-9...........................       200       225       250       275       300       300       300          
``E-8...........................       200       225       250       275       300       300       300          
``E-7...........................       175       200       225       250       275       275       275          
``E-6...........................       156       175       200       225       250       250       250          
``E-5...........................       125       156       175       188       200       200       200          
``E-4 and below.................       125       156       175       188       200       200       200          
                                 -------------------------------------------------------------------------------
                                   Over 12   Over 14   Over 16   Over 18   Over 20   Over 22   Over 24   Over 25
                                 -------------------------------------------------------------------------------
``O-7 and above.................      $200      $200      $200      $200      $200      $200      $200      $110

[[Page H404]]
                                                                                                                
``O-6...........................       350       350       350       350       300       250       250       225
``O-5...........................       350       350       350       350       300       250       250       225
``O-4...........................       350       350       350       350       300       250       250       225
``O-3...........................       350       350       350       300       275       250       225       200
``O-2...........................       300       300       300       275       245       210       200       180
``O-1...........................       250       250       250       245       210       200       180       150
``W-4...........................       325       325       325       325       276       250       225       200
``W-3...........................       325       325       325       325       325       250       225       200
``W-2...........................       325       325       325       325       275       250       225       200
``W-1...........................       325       325       325       325       275       250       225       200
``E-9...........................       300       300       300       300       275       230       200       200
``E-8...........................       300       300       300       300       265       230       200       200
``E-7...........................       300       300       300       300       265       230       200       200
``E-6...........................       300       300       300       300       265       230       200       200
``E-5...........................       250       250       250       250       225       200       175       150
``E-4 and below.................       200       200       200       200       175       150       125    125''.
----------------------------------------------------------------------------------------------------------------



       (c) Conforming Amendments.--Subsection (c)(2) of such 
     section is further amended--
       (1) by striking out ``an officer'' each place it appears 
     and inserting in lieu thereof ``a member''; and
       (2) by striking out ``the officer'' each place it appears 
     and inserting in lieu thereof ``the member''.

     SEC. 616. AVIATION CAREER INCENTIVE PAY.

       (a) Years of Operational Flying Duties Required.--Paragraph 
     (4) of section 301a(a) of title 37, United States Code, is 
     amended in the first sentence by striking out ``9'' and 
     inserting in lieu thereof ``8''.
       (b) Exercise of Waiver Authority.--Paragraph (5) of such 
     section is amended by inserting after the second sentence the 
     following new sentence: ``The Secretary concerned may not 
     delegate the authority in the preceding sentence to permit 
     the payment of incentive pay under this subsection.''.

     SEC. 617. CLARIFICATION OF AUTHORITY TO PROVIDE SPECIAL PAY 
                   FOR NURSES.

       Section 302c(d)(1) of title 37, United States Code, is 
     amended--
       (1) by striking out ``or'' after ``Air Force,''; and
       (2) by inserting before the semicolon the following: ``, an 
     officer of the Nurse Corps of the Army or Navy, or an officer 
     of the Air Force designated as a nurse''.

     SEC. 618. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY FOR CREW 
                   MEMBERS OF SHIPS DESIGNATED AS TENDERS.

       Subparagraph (A) of section 305a(d)(1) of title 37, United 
     States Code, is amended to read as follows:
       ``(A) while permanently or temporarily assigned to a ship, 
     ship-based staff, or ship-based aviation unit and--
       ``(i) while serving on a ship the primary mission of which 
     is accomplished while under way;
       ``(ii) while serving as a member of the off-crew of a two-
     crewed submarine; or
       ``(iii) while serving as a member of a tender-class ship 
     (with the hull classification of submarine or destroyer); 
     or''.

     SEC. 619. INCREASE IN MAXIMUM RATE OF SPECIAL DUTY ASSIGNMENT 
                   PAY FOR ENLISTED MEMBERS SERVING AS RECRUITERS.

       (a) Special Maximum Rate for Recruiters.--Section 307(a) of 
     title 37, United States Code, is amended by adding at the end 
     the following new sentence: ``In the case of a member who is 
     serving as a military recruiter and is eligible for special 
     duty assignment pay under this subsection on account of such 
     duty, the Secretary concerned may increase the monthly rate 
     of special duty assignment pay for the member to not more 
     than $375.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 1996.
            Subtitle C--Travel and Transportation Allowances

     SEC. 621. REPEAL OF REQUIREMENT REGARDING CALCULATION OF 
                   ALLOWANCES ON BASIS OF MILEAGE TABLES.

       Section 404(d)(1)(A) of title 37, United States Code, is 
     amended by striking out ``, based on distances established 
     over the shortest usually traveled route, under mileage 
     tables prepared under the direction of the Secretary of 
     Defense''.

     SEC. 622. DEPARTURE ALLOWANCES.

       (a) Eligibility When Evacuation Authorized But Not 
     Ordered.--Section 405a(a) of title 37, United States Code, is 
     amended by striking out ``ordered'' each place it appears and 
     inserting in lieu thereof ``authorized or ordered''.
       (b) Application of Amendment.--The amendment made by 
     subsection (a) shall apply with respect to persons authorized 
     or ordered to depart as described in section 405a(a) of title 
     37, United States Code, on or after October 1, 1995.

     SEC. 623. TRANSPORTATION OF NONDEPENDENT CHILD FROM MEMBER'S 
                   STATION OVERSEAS AFTER LOSS OF DEPENDENT STATUS 
                   WHILE OVERSEAS.

       Section 406(h)(1) of title 37, United States Code, is 
     amended in the last sentence--
       (1) by striking out ``who became 21 years of age'' and 
     inserting in lieu thereof ``who, by reason of age or 
     graduation from (or cessation of enrollment in) an 
     institution of higher education, would otherwise cease to be 
     a dependent of the member''; and
       (2) by inserting ``still'' after ``shall''.

     SEC. 624. AUTHORIZATION OF DISLOCATION ALLOWANCE FOR MOVES IN 
                   CONNECTION WITH BASE REALIGNMENTS AND CLOSURES.

       (a) Dislocation Allowance Authorized.--Subsection (a) of 
     section 407 of title 37, United States Code, is amended--
       (1) by striking out ``or'' at the end of paragraph (3);
       (2) by striking out the period at the end of paragraph 
     (4)(B) and inserting in lieu thereof ``; or''; and
       (3) by inserting after paragraph (4)(B) the following new 
     paragraph:
       ``(5) the member is ordered to move in connection with the 
     closure or realignment of a military installation and, as a 
     result, the member's dependents actually move or, in the case 
     of a member without dependents, the member actually moves.''.
       (b) Conforming Amendments.--(1) The last sentence of such 
     subsection is amended--
       (A) by striking out ``clause (3) or (4)(B)'' and inserting 
     in lieu thereof ``paragraph (3) or (4)(B)''; and
       (B) by striking out ``clause (1)'' and inserting in lieu 
     thereof ``paragraph (1) or (5)''.
       (2) Subsection (b) of such section is amended--
       (A) by striking out ``subsection (a)(3) or (a)(4)(B)'' in 
     the first sentence and inserting in lieu thereof ``paragraph 
     (3) or (4)(B) of subsection (a)''; and
       (B) by striking out ``subsection (a)(1)'' in the second 
     sentence and inserting in lieu thereof ``paragraph (1) or (5) 
     of subsection (a)''.
    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

     SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING 
                   ADJUSTMENTS FOR FISCAL YEARS 1996, 1997, AND 
                   1998.

       (a) Adjustment of Effective Dates.--Subparagraph (B) of 
     section 1401a(b)(2) of title 10, United States Code, is 
     amended to read as follows:
       ``(B) Special rules for fiscal years 1996 and 1998.--
       ``(i) Fiscal year 1996.--In the case of the increase in 
     retired pay that, pursuant to paragraph (1), becomes 
     effective on December 1, 1995, the initial month for which 
     such increase is payable as part of such retired pay shall 
     (notwithstanding such December 1 effective date) be March 
     1996.
       ``(ii) Fiscal year 1998.--In the case of the increase in 
     retired pay that, pursuant to paragraph (1), becomes 
     effective on December 1, 1997, the initial month for which 
     such increase is payable as part of such retired pay shall 
     (notwithstanding such December 1 effective date) be September 
     1998.''.
       (b) Contingent Alternative Date for Fiscal Year 1998.--(1) 
     If a civil service retiree cola that becomes effective during 
     fiscal year 1998 becomes effective on a date other than the 
     date on which a military retiree cola during that fiscal year 
     is specified to become effective under subparagraph (B) of 
     section 1401a(b)(2) of title 10, United States Code, as 
     amended by subsection (a), then the increase in military 
     retired and retainer pay shall become payable as part of such 
     retired and retainer pay effective on the same date on which 
     such civil service retiree cola becomes effective 
     (notwithstanding the date otherwise specified in such 
     subparagraph (B)).
       (2) Paragraph (1) does not apply with respect to the 
     retired pay of a person retired under chapter 61 of title 10, 
     United States Code.
       (3) For purposes of this subsection:
       (A) The term ``civil service retiree cola'' means an 
     increase in annuities under the Civil Service Retirement 
     System either under section 8340(b) of title 5, United States 
     Code, or pursuant to a law providing a general increase in 
     such annuities.
       (B) The term ``military retiree cola'' means an adjustment 
     in retired and retainer pay pursuant to section 1401a(b) of 
     title 10, United States Code.
       (c) Repeal of Prior Conditional Enactment.--Section 
     8114A(b) of Public Law 103-335 (108 Stat. 2648) is repealed.
     
[[Page H405]]


     SEC. 632. DENIAL OF NON-REGULAR SERVICE RETIRED PAY FOR 
                   RESERVES RECEIVING CERTAIN COURT-MARTIAL 
                   SENTENCES.

       (a) In General.--(1) Chapter 1223 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 12740. Eligibility: denial upon certain punitive 
       discharges or dismissals

       ``A person who--
       ``(1) is convicted of an offense under the Uniform Code of 
     Military Justice (chapter 47 of this title) and whose 
     sentence includes death; or
       ``(2) is separated pursuant to sentence of a court-martial 
     with a dishonorable discharge, a bad conduct discharge, or 
     (in the case of an officer) a dismissal,
     is not eligible for retired pay under this chapter.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``12740. Eligibility: denial upon certain punitive discharges or 
              dismissals.''.

       (b) Effective Date.--Section 12740 of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to court-martial sentences adjudged after the date of 
     the enactment of this Act.

     SEC. 633. REPORT ON PAYMENT OF ANNUITIES FOR CERTAIN MILITARY 
                   SURVIVING SPOUSES.

       (a) Study Required.--(1) The Secretary of Defense shall 
     conduct a study to determine the number of potential 
     beneficiaries there would be if Congress were to enact 
     authority for the Secretary of the military department 
     concerned to pay an annuity to the qualified surviving spouse 
     of each member of the Armed Forces who--
       (A) died before March 21, 1974, and was entitled to retired 
     or retainer pay on the date of death; or
       (B) was a member of a reserve component who died during the 
     period beginning on September 21, 1972, and ending on October 
     1, 1978, and at the time of death would have been entitled to 
     retired pay under chapter 67 of title 10, United States Code, 
     but for the fact that he was under 60 years of age.
       (2) A qualified surviving spouse for purposes of paragraph 
     (1) is a surviving spouse who has not remarried and who is 
     not eligible for an annuity under section 4 of Public Law 92-
     425 (10 U.S.C. 1448 note).
       (b) Required Determinations.--As part of the study under 
     subsection (a), the Secretary shall determine the following:
       (1) The number of unremarried surviving spouses of deceased 
     members and deceased former members of the Armed Forces 
     referred to in subparagraph (A) of subsection (a)(1) who 
     would be eligible for an annuity under authority described in 
     such subsection.
       (2) The number of unremarried surviving spouses of deceased 
     members and deceased former members of reserve components 
     referred to in subparagraph (B) of subsection (a)(1) who 
     would be eligible for an annuity under authority described in 
     such subsection.
       (3) The number of persons in each group of unremarried 
     former spouses described in paragraphs (1) and (2) who are 
     receiving a widow's insurance benefit or a widower's 
     insurance benefit under title II of the Social Security Act 
     on the basis of employment of a deceased member or deceased 
     former member referred to in subsection (a)(1).
       (c) Report.--Not later than March 1, 1996, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report on the results of the study 
     under this section. The Secretary shall include in the report 
     a recommendation on the amount of the annuity that should be 
     authorized to be paid under any authority described in 
     subsection (a)(1), together with a recommendation on whether 
     the annuity should be adjusted annually to offset increases 
     in the cost of living.

     SEC. 634. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES 
                   TO WORLD WAR II VETERANS WHO SERVED AS 
                   GUERRILLA FIGHTERS IN THE PHILIPPINES.

       (a) In General.--The Secretary of the military department 
     concerned shall pay, upon request, to an individual described 
     in subsection (b) the amount determined with respect to that 
     individual under subsection (c).
       (b) Covered Individuals.--A payment under subsection (a) 
     shall be made to any individual who as a member of the Armed 
     Forces during World War II--
       (1) was captured on the Island of Bataan in the territory 
     of the Philippines by Japanese forces;
       (2) participated in the Bataan Death March;
       (3) escaped from captivity; and
       (4) served as a guerrilla fighter in the Philippines during 
     the period from January 1942 through February 1945.
       (c) Amount To Be Paid.--The amount of a payment under 
     subsection (a) shall be the amount of quarters and 
     subsistence allowance which accrued to an individual 
     described in subsection (b) during the period specified in 
     paragraph (4) of subsection (b) and which was not paid to 
     that individual. The Secretary shall apply interest 
     compounded at the three-month Treasury bill rate.
       (d) Payment to Survivors.--In the case of any individual 
     described in subsection (b) who is deceased, payment under 
     this section with respect to that individual shall be made to 
     that individual's nearest surviving relative, as determined 
     by the Secretary concerned.

     SEC. 635. AUTHORITY FOR RELIEF FROM PREVIOUS OVERPAYMENTS 
                   UNDER MINIMUM INCOME WIDOWS PROGRAM.

       (a) Authority.--The Secretary of Defense may waive recovery 
     by the United States of any overpayment by the United States 
     described in subsection (b). In the case of any such waiver, 
     any debt to the United States arising from such overpayment 
     is forgiven.
       (b) Covered Overpayments.--Subsection (a) applies in the 
     case of an overpayment by the United States that--
       (1) was made before the date of the enactment of this Act 
     under section 4 of Public Law 92-425 (10 U.S.C. 1448 note); 
     and
       (2) is attributable to failure by the Department of Defense 
     to apply the eligibility provisions of subsection (a) of such 
     section in the case of the person to whom the overpayment was 
     made.

     SEC. 636. TRANSITIONAL COMPENSATION FOR DEPENDENTS OF MEMBERS 
                   OF THE ARMED FORCES SEPARATED FOR DEPENDENT 
                   ABUSE.

       (a) Coverage of Program.--Subsection (a) of section 1059 of 
     title 10, United States Code, is amended by adding at the end 
     the following: ``Upon establishment of such a program, the 
     program shall apply in the case of each such member described 
     in subsection (b) who is under the jurisdiction of the 
     Secretary establishing the program.''.
       (b) Clarification of Payment to Dependents of Members Not 
     Discharged.--Subsection (d) of such section is amended--
       (1) in the matter preceding paragraph (1)--
       (A) by striking out ``any case of a separation from active 
     duty as described in subsection (b)'' and inserting in lieu 
     thereof ``the case of any individual described in subsection 
     (b)''; and
       (B) by striking ``former member'' and inserting in lieu 
     thereof ``individual'';
       (2) in paragraph (1)--
       (A) by striking out ``former member'' and inserting in lieu 
     thereof ``individual''; and
       (B) by striking out ``member'' and inserting in lieu 
     thereof ``individual'';
       (3) in paragraph (2), by striking out ``former member'' 
     both places it appears and inserting in lieu thereof 
     ``individual described in subsection (b)'';
       (4) in paragraph (3), by striking out ``former member'' and 
     inserting in lieu thereof ``individual described in 
     subsection (b)''; and
       (5) in paragraph (4), by striking out ``member'' both 
     places it appears and inserting in lieu thereof ``individual 
     described in subsection (b)''.
       (c) Effective Date.--Section 554(b) of the National Defense 
     Authorization Act for Fiscal Year 1994 (10 U.S.C. 1059 note) 
     is amended--
       (1) in paragraph (1), by striking out ``on or after the 
     date of the enactment of this Act'' and inserting in lieu 
     thereof ``after November 29, 1993''; and
       (2) by striking out paragraph (2) and inserting in lieu 
     thereof the following:
       ``(2) Payments of transitional compensation under that 
     section in the case of any person eligible to receive 
     payments under that section shall be made for each month 
     after November 1993 for which that person may be paid 
     transitional compensation in accordance with that section.''.
                       Subtitle E--Other Matters

     SEC. 641. PAYMENT TO SURVIVORS OF DECEASED MEMBERS FOR ALL 
                   LEAVE ACCRUED.

       (a) Inapplicability of 60-Day Limitation.--Section 501(d) 
     of title 37, United States Code, is amended--
       (1) in paragraph (1), by striking out the third sentence; 
     and
       (2) by striking out paragraph (2) and inserting in lieu 
     thereof the following new paragraph:
       ``(2) The limitations in the second sentence of subsection 
     (b)(3), subsection (f), and the second sentence of subsection 
     (g) shall not apply with respect to a payment made under this 
     subsection.''.
       (b) Conforming Amendment.--Section 501(f) of such title is 
     amended by striking out ``, (d),'' in the first sentence.

     SEC. 642. REPEAL OF REPORTING REQUIREMENTS REGARDING 
                   COMPENSATION MATTERS.

       (a) Report on Travel and Transportation Allowances for 
     Dependents.--(1) Section 406 of title 37, United States Code, 
     is amended--
       (A) by striking out subsection (i); and
       (B) by redesignating subsections (j), (k), (l), (m), and 
     (n) as subsections (i), (j), (k), (l), and (m), respectively.
       (2) Section 2634(d) of title 10, United States Code, is 
     amended by striking out ``section 406(l) of title 37'' and 
     inserting in lieu thereof ``section 406(k) of title 37''.
       (b) Annual Review of Pay and Allowances.--Section 1008(a) 
     of title 37, United States Code, is amended by striking out 
     the second sentence.
       (c) Report on Quadrennial Review of Adjustments in 
     Compensation.--Section 1009(f) of such title is amended by 
     striking out ``of this title,'' and all that follows through 
     the period at the end and inserting in lieu thereof ``of this 
     title.''.

     SEC. 643. RECOUPMENT OF ADMINISTRATIVE EXPENSES IN 
                   GARNISHMENT ACTIONS.

       (a) In General.--Subsection (j) of section 5520a of title 
     5, United States Code, is amended by striking out paragraph 
     (2) and inserting in lieu thereof the following new 
     paragraph:
     
[[Page H406]]

       ``(2) Such regulations shall provide that an agency's 
     administrative costs incurred in executing legal process to 
     which the agency is subject under this section shall be 
     deducted from the amount withheld from the pay of the 
     employee concerned pursuant to the legal process.''.
       (b) Involuntary Allotments of Pay of Members of the 
     Uniformed Services.--Subsection (k) of such section is 
     amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       (2) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Regulations under this subsection may also provide 
     that the administrative costs incurred in establishing and 
     maintaining an involuntary allotment be deducted from the 
     amount withheld from the pay of the member of the uniformed 
     services concerned pursuant to such regulations.''.
       (c) Disposition of Amounts Withheld for Administrative 
     Expenses.--Such section is further amended by adding at the 
     end the following:
       ``(l) The amount of an agency's administrative costs 
     deducted under regulations prescribed pursuant to subsection 
     (j)(2) or (k)(3) shall be credited to the appropriation, 
     fund, or account from which such administrative costs were 
     paid.''.

     SEC. 644. REPORT ON EXTENDING TO JUNIOR NONCOMMISSIONED 
                   OFFICERS PRIVILEGES PROVIDED FOR SENIOR 
                   NONCOMMISSIONED OFFICERS.

       (a) Report Required.--Not later than February 1, 1996, the 
     Secretary of Defense shall submit to Congress a report 
     containing the determinations of the Secretary regarding 
     whether, in order to improve the working conditions of 
     noncommissioned officers in pay grades E-5 and E-6, any of 
     the privileges afforded noncommissioned officers in any of 
     the pay grades above E-6 should be extended to 
     noncommissioned officers in pay grades E-5 and E-6.
       (b) Specific Recommendation Regarding Election of BAS.--The 
     Secretary shall include in the report a determination on 
     whether noncommissioned officers in pay grades E-5 and E-6 
     should be afforded the same privilege as noncommissioned 
     officers in pay grades above E-6 to elect to mess separately 
     and receive the basic allowance for subsistence.
       (c) Additional Matters.--The report shall also contain a 
     discussion of the following matters:
       (1) The potential costs of extending additional privileges 
     to noncommissioned officers in pay grades E-5 and E-6.
       (2) The effects on readiness that would result from 
     extending the additional privileges.
       (3) The options for extending the privileges on an 
     incremental basis over an extended period.
       (d) Recommended Legislation.--The Secretary shall include 
     in the report any recommended legislation that the Secretary 
     considers necessary in order to authorize extension of a 
     privilege as determined appropriate under subsection (a).

     SEC. 645. STUDY REGARDING JOINT PROCESS FOR DETERMINING 
                   LOCATION OF RECRUITING STATIONS.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study regarding the feasibility of--
       (1) using a joint process among the Armed Forces for 
     determining the location of recruiting stations and the 
     number of military personnel required to operate such 
     stations; and
       (2) basing such determinations on market research and 
     analysis conducted jointly by the Armed Forces.
       (b) Report.--Not later than March 31, 1996, the Secretary 
     of Defense shall submit to Congress a report describing the 
     results of the study. The report shall include a recommended 
     method for measuring the efficiency of individual recruiting 
     stations, such as cost per accession or other efficiency 
     standard, as determined by the Secretary.

     SEC. 646. AUTOMATIC MAXIMUM COVERAGE UNDER SERVICEMEN'S GROUP 
                   LIFE INSURANCE.

       Effective April 1, 1996, section 1967 of title 38, United 
     States Code, is amended--
       (1) in subsections (a) and (c), by striking out 
     ``$100,000'' each place it appears and inserting in lieu 
     thereof in each instance ``$200,000'';
       (2) by striking out subsection (e); and
       (3) by redesignating subsection (f) as subsection (e).

     SEC. 647. TERMINATION OF SERVICEMEN'S GROUP LIFE INSURANCE 
                   FOR MEMBERS OF THE READY RESERVE WHO FAIL TO 
                   PAY PREMIUMS.

       (a) Authority.--Section 1969(a)(2) of title 38, United 
     States Code, is amended--
       (1) by inserting ``(A)'' after ``(2)''; and
       (2) by adding at the end the following:
       ``(B) If an individual who is required pursuant to 
     subparagraph (A) to make a direct remittance of costs to the 
     Secretary concerned fails to make the required remittance 
     within 60 days of the date on which such remittance is due, 
     such individual's insurance with respect to which such 
     remittance is required shall be terminated by the Secretary 
     concerned. Such termination shall be made by written notice 
     to the individual's official address and shall be effective 
     60 days after the date of such notice. Such termination of 
     insurance may be vacated if, before the effective date of 
     termination, the individual remits all amounts past due for 
     such insurance and demonstrates to the satisfaction of the 
     Secretary concerned that the failure to make timely 
     remittances was justifiable.''.
       (b) Conforming Amendment.--Section 1968(a) is amended by 
     inserting ``(or discontinued pursuant to section 
     1969(a)(2)(B) of this title)'' in the matter preceding 
     paragraph (1) after ``upon the written request of the 
     insured''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on April 1, 1996.
                   TITLE VII--HEALTH CARE PROVISIONS
                    Subtitle A--Health Care Services

     SEC. 701. MODIFICATION OF REQUIREMENTS REGARDING ROUTINE 
                   PHYSICAL EXAMINATIONS AND IMMUNIZATIONS UNDER 
                   CHAMPUS.

       Section 1079(a) of title 10, United States Code, is amended 
     by striking out paragraph (2) and inserting in lieu thereof 
     the following new paragraph:
       ``(2) consistent with such regulations as the Secretary of 
     Defense may prescribe regarding the content of health 
     promotion and disease prevention visits, the schedule of pap 
     smears and mammograms, and the types and schedule of 
     immunizations--
       ``(A) for dependents under six years of age, both health 
     promotion and disease prevention visits and immunizations may 
     be provided; and
       ``(B) for dependents six years of age or older, health 
     promotion and disease prevention visits may be provided in 
     connection with immunizations or with diagnostic or 
     preventive pap smears and mammograms;''.

     SEC. 702. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE 
                   AND DEATH AND DISABILITY BENEFITS FOR CERTAIN 
                   RESERVES.

       (a) Medical and Dental Care.--Section 1074a(a) of title 10, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(3) Each member of the armed forces who incurs or 
     aggravates an injury, illness, or disease in the line of duty 
     while remaining overnight, between successive periods of 
     inactive-duty training, at or in the vicinity of the site of 
     the inactive-duty training, if the site is outside reasonable 
     commuting distance from the member's residence.''.
       (b) Recovery, Care, and Disposition of Remains.--Section 
     1481(a)(2) of title 10, United States Code, is amended--
       (1) in subparagraph (C), by striking out ``or'' at the end 
     of the subparagraph;
       (2) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) remaining overnight, between successive periods of 
     inactive-duty training, at or in the vicinity of the site of 
     the inactive-duty training, if the site is outside reasonable 
     commuting distance from the member's residence; or''.
       (c) Entitlement to Basic Pay.--(1) Subsection (g)(1) of 
     section 204 of title 37, United States Code, is amended--
       (A) in subparagraph (B), by striking out ``or'' at the end 
     of the subparagraph;
       (B) in subparagraph (C), by striking out the period at the 
     end of the subparagraph and inserting in lieu thereof ``; 
     or''; and
       (C) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) in line of duty while remaining overnight, between 
     successive periods of inactive-duty training, at or in the 
     vicinity of the site of the inactive-duty training, if the 
     site is outside reasonable commuting distance from the 
     member's residence.''.
       (2) Subsection (h)(1) of such section is amended--
       (A) in subparagraph (B), by striking out ``or'' at the end 
     of the subparagraph;
       (B) in subparagraph (C), by striking out the period at the 
     end of the subparagraph and inserting in lieu thereof ``; 
     or''; and
       (C) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) in line of duty while remaining overnight, between 
     successive periods of inactive-duty training, at or in the 
     vicinity of the site of the inactive-duty training, if the 
     site is outside reasonable commuting distance from the 
     member's residence.''.
       (d) Compensation for Inactive-Duty Training.--Section 
     206(a)(3) of title 37, United States Code, is amended--
       (1) in subparagraph (A), by striking out ``or'' at the end 
     of clause (ii);
       (2) in subparagraph (B), by striking out the period at the 
     end of the subparagraph and inserting in lieu thereof ``; 
     or''; and
       (3) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) in line of duty while remaining overnight, between 
     successive periods of inactive-duty training, at or in the 
     vicinity of the site of the inactive-duty training, if the 
     site is outside reasonable commuting distance from the 
     member's residence.''.

     SEC. 703. MEDICAL CARE FOR SURVIVING DEPENDENTS OF RETIRED 
                   RESERVES WHO DIE BEFORE AGE 60.

       (a) Change in Eligibility Requirements.--Paragraph (2) of 
     section 1076(b) of title 10, United States Code, is amended--
       (1) by striking out ``death (A) would'' and inserting in 
     lieu thereof ``death would''; and
       (2) by striking out ``, and (B) had elected to participate 
     in the Survivor Benefit Plan established under subchapter II 
     of chapter 73 of this title''.
       (b) Conforming Amendments.--Such paragraph is further 
     amended--
       (1) in the matter following paragraph (2), by striking out 
     ``clause (2)'' the first place it appears and inserting in 
     lieu thereof ``paragraph (2)''; and
       (2) by striking out the second sentence.
     
[[Page H407]]


     SEC. 704. MEDICAL AND DENTAL CARE FOR MEMBERS OF THE SELECTED 
                   RESERVE ASSIGNED TO EARLY DEPLOYING UNITS OF 
                   THE ARMY SELECTED RESERVE.

       (a) Annual Medical and Dental Screenings and Care.--Section 
     1074a of title 10, United States Code, is amended--
       (1) in subsection (c), by striking out ``this section'' and 
     inserting in lieu thereof ``subsection (b)''; and
       (2) by adding at the end the following new subsection:
       ``(d)(1) The Secretary of the Army shall provide to members 
     of the Selected Reserve of the Army who are assigned to units 
     scheduled for deployment within 75 days after mobilization 
     the following medical and dental services:
       ``(A) An annual medical screening.
       ``(B) For members who are over 40 years of age, a full 
     physical examination not less often than once every two 
     years.
       ``(C) An annual dental screening.
       ``(D) The dental care identified in an annual dental 
     screening as required to ensure that a member meets the 
     dental standards required for deployment in the event of 
     mobilization.
       ``(2) The services provided under this subsection shall be 
     provided at no cost to the member.''.
       (b) Conforming Repeals.--Sections 1117 and 1118 of the Army 
     National Guard Combat Readiness Reform Act of 1992 (title XI 
     of Public Law 102-484; 10 U.S.C. 3077 note) are repealed.

     SEC. 705. DENTAL INSURANCE FOR MEMBERS OF THE SELECTED 
                   RESERVE.

       (a) Program Authorization.--(1) Chapter 55 of title 10, 
     United States Code, is amended by inserting after section 
     1076a the following new section:

     ``Sec. 1076b. Selected Reserve dental insurance

       ``(a) Authority To Establish Plan.--The Secretary of 
     Defense shall establish a dental insurance plan for members 
     of the Selected Reserve of the Ready Reserve. The plan shall 
     provide for voluntary enrollment and for premium sharing 
     between the Department of Defense and the members enrolled in 
     the plan. The plan shall be administered under regulations 
     prescribed by the Secretary of Defense.
       ``(b) Premium Sharing.--(1) A member enrolling in the 
     dental insurance plan shall pay a share of the premium 
     charged for the insurance coverage. The member's share may 
     not exceed $25 per month.
       ``(2) The Secretary of Defense may reduce the monthly 
     premium required to be paid by enlisted members under 
     paragraph (1) if the Secretary determines that the reduction 
     is appropriate in order to assist enlisted members to 
     participate in the dental insurance plan.
       ``(3) A member's share of the premium for coverage by the 
     dental insurance plan shall be deducted and withheld from the 
     basic pay payable to the member for inactive duty training 
     and from the basic pay payable to the member for active duty.
       ``(4) The Secretary of Defense shall pay the portion of the 
     premium charged for coverage of a member under the dental 
     insurance plan that exceeds the amount paid by the member.
       ``(c) Benefits Available Under the Plan.--The dental 
     insurance plan shall provide benefits for basic dental care 
     and treatment, including diagnostic services, preventative 
     services, basic restorative services, and emergency oral 
     examinations.
       ``(d) Termination of Coverage.--The coverage of a member by 
     the dental insurance plan shall terminate on the last day of 
     the month in which the member is discharged, transfers to the 
     Individual Ready Reserve, Standby Reserve, or Retired 
     Reserve, or is ordered to active duty for a period of more 
     than 30 days.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1076a the following:

``1076b. Selected Reserve dental insurance.''.

       (b) Implementation.--Beginning not later than October 1, 
     1996, the Secretary of Defense shall offer members of the 
     Selected Reserve the opportunity to enroll in the dental 
     insurance plan required under section 1076b of title 10, 
     United States Code (as added by subsection (a)). During 
     fiscal year 1996, the Secretary shall collect such 
     information and complete such planning and other preparations 
     as are necessary to offer and administer the dental insurance 
     plan by that date. The activities undertaken by the Secretary 
     under this subsection during fiscal year 1996 may include--
       (1) surveys; and
       (2) tests, in not more than three States, of a dental 
     insurance plan or alternative dental insurance plans meeting 
     the requirements of section 1076b of title 10, United States 
     Code.

     SEC. 706. PERMANENT AUTHORITY TO CARRY OUT SPECIALIZED 
                   TREATMENT FACILITY PROGRAM.

       Section 1105 of title 10, United States Code, is amended by 
     striking out subsection (h).
                      Subtitle B--TRICARE Program

     SEC. 711. DEFINITION OF TRICARE PROGRAM.

       For purposes of this subtitle, the term ``TRICARE program'' 
     means the managed health care program that is established by 
     the Secretary of Defense under the authority of chapter 55 of 
     title 10, United States Code, principally section 1097 of 
     such title, and includes the competitive selection of 
     contractors to financially underwrite the delivery of health 
     care services under the Civilian Health and Medical Program 
     of the Uniformed Services.

     SEC. 712. PRIORITY USE OF MILITARY TREATMENT FACILITIES FOR 
                   PERSONS ENROLLED IN MANAGED CARE INITIATIVES.

       Section 1097(c) of title 10, United States Code, is amended 
     in the third sentence by striking out ``However, the 
     Secretary may'' and inserting in lieu thereof 
     ``Notwithstanding the preferences established by sections 
     1074(b) and 1076 of this title, the Secretary shall''.

     SEC. 713. STAGGERED PAYMENT OF ENROLLMENT FEES FOR TRICARE 
                   PROGRAM.

       Section 1097(e) of title 10, United States Code, is amended 
     by adding at the end the following new sentence: ``Without 
     imposing additional costs on covered beneficiaries who 
     participate in contracts for health care services under this 
     section or health care plans offered under section 1099 of 
     this title, the Secretary shall permit such covered 
     beneficiaries to pay, on a quarterly basis, any enrollment 
     fee required for such participation.''.

     SEC. 714. REQUIREMENT OF BUDGET NEUTRALITY FOR TRICARE 
                   PROGRAM TO BE BASED ON ENTIRE PROGRAM.

       (a) Change in Budget Neutrality Requirements.--Subsection 
     (c) of section 731 of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 1073 
     note) is amended--
       (1) by striking out ``each managed health care initiative 
     that includes the option'' and inserting in lieu thereof 
     ``the TRICARE program''; and
       (2) by striking out ``covered beneficiaries who enroll in 
     the option'' and inserting in lieu thereof ``members of the 
     uniformed services and covered beneficiaries who participate 
     in the TRICARE program''.
       (b) Addition of Definition of TRICARE Program.--Subsection 
     (d) of such section is amended to read as follows:
       ``(d) Definitions.--For purposes of this section:
       ``(1) The term `covered beneficiary' means a beneficiary 
     under chapter 55 of title 10, United States Code, other than 
     a beneficiary under section 1074(a) of such title.
       ``(2) The term `TRICARE program' means the managed health 
     care program that is established by the Secretary of Defense 
     under the authority of chapter 55 of title 10, United States 
     Code, principally section 1097 of such title, and includes 
     the competitive selection of contractors to financially 
     underwrite the delivery of health care services under the 
     Civilian Health and Medical Program of the Uniformed 
     Services.''.

     SEC. 715. TRAINING IN HEALTH CARE MANAGEMENT AND 
                   ADMINISTRATION FOR TRICARE LEAD AGENTS.

       (a) Provision of Training.--Not later than six months after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall implement a professional educational program to 
     provide appropriate training in health care management and 
     administration--
       (1) to each commander of a military medical treatment 
     facility of the Department of Defense who is selected to 
     serve as a lead agent to coordinate the delivery of health 
     care by military and civilian providers under the TRICARE 
     program; and
       (2) to appropriate members of the support staff of the 
     treatment facility who will be responsible for daily 
     operation of the TRICARE program.
       (b) Report on Implementation.--Not later than six months 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a report describing the 
     professional educational program implemented pursuant to this 
     section.

     SEC. 716. PILOT PROGRAM OF INDIVIDUALIZED RESIDENTIAL MENTAL 
                   HEALTH SERVICES.

       (a) Program Required.--(1) During fiscal year 1996, the 
     Secretary of Defense, in consultation with the other 
     administering Secretaries under chapter 55 of title 10, 
     United States Code, shall implement a pilot program to 
     provide residential and wraparound services to children 
     described in paragraph (2) who are in need of mental health 
     services. The Secretary shall implement the pilot program for 
     an initial period of at least two years in a military health 
     care region in which the TRICARE program has been 
     implemented.
       (2) A child shall be eligible for selection to participate 
     in the pilot program if the child is a dependent (as 
     described in subparagraph (D) or (I) of section 1072(2) of 
     title 10, United States Code) who--
       (A) is eligible for health care under section 1079 or 1086 
     of such title; and
       (B) has a serious emotional disturbance that is generally 
     regarded as amenable to treatment.
       (b) Wraparound Services Defined.--For purposes of this 
     section, the term ``wraparound services'' means 
     individualized mental health services that are provided 
     principally to allow a child to remain in the family home or 
     other least-restrictive and least-costly setting, but also 
     are provided as an aftercare planning service for children 
     who have received acute or residential care. Such term 
     includes nontraditional mental health services that will 
     assist the child to be maintained in the least-restrictive 
     and least-costly setting.
       (c) Pilot Program Agreement.--Under the pilot program the 
     Secretary of Defense shall enter into one or more agreements 
     that require a mental health services provider under the 
     agreement--
     
[[Page H408]]

       (1) to provide wraparound services to a child described in 
     subsection (a)(2);
       (2) to continue to provide such services as needed during 
     the period of the agreement even if the child moves to 
     another location within the same TRICARE program region 
     during that period; and
       (3) to share financial risk by accepting as a maximum 
     annual payment for such services a case-rate reimbursement 
     not in excess of the amount of the annual standard CHAMPUS 
     residential treatment benefit payable (as determined in 
     accordance with section 8.1 of chapter 3 of volume II of the 
     CHAMPUS policy manual).
       (d) Report.--Not later than March 1, 1998, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report on the program carried out 
     under this section. The report shall contain--
       (1) an assessment of the effectiveness of the program; and
       (2) the Secretary's views regarding whether the program 
     should be implemented throughout the military health care 
     system.

     SEC. 717. EVALUATION AND REPORT ON TRICARE PROGRAM 
                   EFFECTIVENESS.

       (a) Evaluation Required.--The Secretary of Defense shall 
     arrange for an on-going evaluation of the effectiveness of 
     the TRICARE program in meeting the goals of increasing the 
     access of covered beneficiaries under chapter 55 of title 10, 
     United States Code, to health care and improving the quality 
     of health care provided to covered beneficiaries, without 
     increasing the costs incurred by the Government or covered 
     beneficiaries. The evaluation shall specifically address--
       (1) the impact of the TRICARE program on military retirees 
     with regard to access, costs, and quality of health care 
     services; and
       (2) identify noncatchment areas in which the health 
     maintenance organization option of the TRICARE program is 
     available or is proposed to become available.
       (b) Entity To Conduct Evaluation.--The Secretary may use a 
     federally funded research and development center to conduct 
     the evaluation required by subsection (a).
       (c) Annual Report.--Not later than March 1, 1997, and each 
     March 1 thereafter, the Secretary shall submit to Congress a 
     report describing the results of the evaluation under 
     subsection (a) during the preceding year.

     SEC. 718. SENSE OF CONGRESS REGARDING ACCESS TO HEALTH CARE 
                   UNDER TRICARE PROGRAM FOR COVERED BENEFICIARIES 
                   WHO ARE MEDICARE ELIGIBLE.

       (a) Findings.--Congress finds the following:
       (1) Medical care provided in facilities of the uniformed 
     services is generally less expensive to the Federal 
     Government than the same care provided at Government expense 
     in the private sector.
       (2) Covered beneficiaries under the military health care 
     provisions of chapter 55, United States Code, who are 
     eligible for medicare under title XVIII of the Social 
     Security Act (42 U.S.C. 1395 et seq.) deserve health care 
     options that empower them to choose the health plan that best 
     fits their needs.
       (b) Sense of Congress.--In light of the findings specified 
     in subsection (a), it is the sense of Congress that--
       (1) the Secretary of Defense should develop a program to 
     ensure that such covered beneficiaries who reside in a region 
     in which the TRICARE program has been implemented continue to 
     have adequate access to health care services after the 
     implementation of the TRICARE program; and
       (2) as a means of ensuring such access, the budget for 
     fiscal year 1997 submitted by the President under section 
     1105 of title 31, United States Code, should provide for 
     reimbursement by the Health Care Financing Administration to 
     the Department of Defense for health care services provided 
     to such covered beneficiaries in medical treatment facilities 
     of the Department of Defense.
          Subtitle C--Uniformed Services Treatment Facilities

     SEC. 721. DELAY OF TERMINATION OF STATUS OF CERTAIN 
                   FACILITIES AS UNIFORMED SERVICES TREATMENT 
                   FACILITIES.

       Section 1252(e) of the Department of Defense Authorization 
     Act, 1984 (42 U.S.C. 248d(e)) is amended by striking out 
     ``December 31, 1996'' in the first sentence and inserting in 
     lieu thereof ``September 30, 1997''.

     SEC. 722. LIMITATION ON EXPENDITURES TO SUPPORT UNIFORMED 
                   SERVICES TREATMENT FACILITIES.

       Subsection (f) of section 1252 of the Department of Defense 
     Authorization Act, 1984 (42 U.S.C. 248d), is amended to read 
     as follows:
       ``(f) Limitation on Expenditures.--The total amount of 
     expenditures by the Secretary of Defense to carry out this 
     section and section 911 of the Military Construction 
     Authorization Act, 1982 (42 U.S.C. 248c), for fiscal year 
     1996 may not exceed $300,000,000, adjusted by the Secretary 
     to reflect the inflation factor used by the Department of 
     Defense for such fiscal year.''.

     SEC. 723. APPLICATION OF CHAMPUS PAYMENT RULES IN CERTAIN 
                   CASES.

       Section 1074 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d)(1) The Secretary of Defense may require, by 
     regulation, a private CHAMPUS provider to apply the CHAMPUS 
     payment rules (subject to any modifications considered 
     appropriate by the Secretary) in imposing charges for health 
     care that the private CHAMPUS provider provides to a member 
     of the uniformed services who is enrolled in a health care 
     plan of a facility deemed to be a facility of the uniformed 
     services under section 911(a) of the Military Construction 
     Authorization Act, 1982 (42 U.S.C. 248c(a)) when the health 
     care is provided outside the catchment area of the facility.
       ``(2) In this subsection:
       ``(A) The term `private CHAMPUS provider' means a private 
     facility or health care provider that is a health care 
     provider under the Civilian Health and Medical Program of the 
     Uniformed Services.
       ``(B) The term `CHAMPUS payment rules' means the payment 
     rules referred to in subsection (c).
       ``(3) The Secretary of Defense shall prescribe regulations 
     under this subsection after consultation with the other 
     administering Secretaries.''.

     SEC. 724. APPLICATION OF FEDERAL ACQUISITION REGULATION TO 
                   PARTICIPATION AGREEMENTS WITH UNIFORMED 
                   SERVICES TREATMENT FACILITIES.

       (a) Section 718(c) of the National Defense Authorization 
     Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587) 
     is amended--
       (1) in the second sentence of paragraph (1), by striking 
     out ``A participation agreement'' and inserting in lieu 
     thereof ``Except as provided in paragraph (4), a 
     participation agreement'';
       (2) by redesignating paragraph (4) as paragraph (6); and
       (3) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Application of federal acquisition regulation.--On 
     and after the date of the enactment of this paragraph, 
     Uniformed Services Treatment Facilities and any participation 
     agreement between Uniformed Services Treatment Facilities and 
     the Secretary of Defense shall be subject to the Federal 
     Acquisition Regulation issued pursuant to section 25(c) of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 
     421(c)) notwithstanding any provision to the contrary in such 
     a participation agreement. The requirements regarding 
     competition in the Federal Acquisition Regulation shall apply 
     with regard to the negotiation of any new participation 
     agreement between the Uniformed Services Treatment Facilities 
     and the Secretary of Defense under this subsection or any 
     other provision of law.''.
       (b) Sense of Congress.--(1) Congress finds that the 
     Uniformed Services Treatment Facilities provide quality 
     health care to the 120,000 Department of Defense 
     beneficiaries enrolled in the Uniformed Services Family 
     Health Plan provided by these facilities.
       (2) In light of such finding, it is the sense of Congress 
     that the Uniformed Services Family Health Plan provided by 
     the Uniformed Services Treatment Facilities should not be 
     terminated for convenience under provisions of the Federal 
     Acquisition Regulation by the Secretary of Defense before the 
     expiration of the current participation agreements.
       (3) For purposes of this subsection, the term ``Uniformed 
     Services Treatment Facility'' means a facility deemed to be a 
     facility of the uniformed services by virtue of section 
     911(a) of the Military Construction Authorization Act, 1982 
     (42 U.S.C. 248c(a)).

     SEC. 725. DEVELOPMENT OF PLAN FOR INTEGRATING UNIFORMED 
                   SERVICES TREATMENT FACILITIES IN MANAGED CARE 
                   PROGRAMS OF DEPARTMENT OF DEFENSE.

       Section 718(c) of the National Defense Authorization Act 
     for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587) is 
     amended by inserting after paragraph (4), as added by section 
     722, the following new paragraph:
       ``(5) Plan for integrating facilities.--(A) The Secretary 
     of Defense shall develop a plan under which Uniformed 
     Services Treatment Facilities could be included, before the 
     expiration date of the participation agreements entered into 
     under this section, in the exclusive health care provider 
     networks established by the Secretary for the geographic 
     regions in which the facilities are located. The Secretary 
     shall address in the plan the feasibility of implementing the 
     managed care plan of the Uniformed Services Treatment 
     Facilities, known as Option II, on a mandatory basis for all 
     USTF Medicare-eligible beneficiaries and the potential cost 
     savings to the Military Health Care Program that could be 
     achieved under such option.
       ``(B) The Secretary shall submit the plan developed under 
     this paragraph to Congress not later than March 1, 1996.
       ``(C) The plan developed under this paragraph shall be 
     consistent with the requirements specified in paragraph (4). 
     If the plan is not submitted to Congress by the expiration 
     date of the participation agreements entered into under this 
     section, the participation agreements shall remain in effect, 
     at the option of the Uniformed Services Treatment Facilities, 
     until the end of the 180-day period beginning on the date the 
     plan is finally submitted.
       ``(D) For purposes of this paragraph, the term `USTF 
     Medicare-eligible beneficiaries' means covered beneficiaries 
     under chapter 55 of title 10, United States Code, who are 
     enrolled in a managed health plan offered by the Uniformed 
     Services Treatment Facilities and entitled to hospital 
     insurance benefits under part A of title XVIII of the Social 
     Security Act (42 U.S.C. 1395c et seq.).''.
     
[[Page H409]]


     SEC. 726. EQUITABLE IMPLEMENTATION OF UNIFORM COST SHARING 
                   REQUIREMENTS FOR UNIFORMED SERVICES TREATMENT 
                   FACILITIES.

       (a) Time for Fee Implementation.--The uniform managed care 
     benefit fee and copayment schedule developed by the Secretary 
     of Defense for use in all managed care initiatives of the 
     military health service system, including the managed care 
     program of the Uniformed Services Treatment Facilities, shall 
     be extended to the managed care program of a Uniformed 
     Services Treatment Facility only after the later of--
       (1) the implementation of the TRICARE regional program 
     covering the service area of the Uniformed Services Treatment 
     Facility; or
       (2) October 1, 1996.
       (b) Submission of Actuarial Estimates.--Paragraph (2) of 
     subsection (a) shall operate as a condition on the extension 
     of the uniform managed care benefit fee and copayment 
     schedule to the Uniformed Services Treatment Facilities only 
     if the Uniformed Services Treatment Facilities submit to the 
     Comptroller General of the United States, within 30 days 
     after the date of the enactment of this Act, actuarial 
     estimates in support of their contention that the extension 
     of such fees and copayments will have an adverse effect on 
     the operation of the Uniformed Services Treatment Facilities 
     and the enrollment of participants.
       (c) Evaluation.--(1) Except as provided in paragraph (2), 
     not later than 90 days after the date of the enactment of 
     this Act, the Comptroller General shall submit to Congress 
     the results of an evaluation of the effect on the Uniformed 
     Services Treatment Facilities of the extension of the uniform 
     benefit fee and copayment schedule to the Uniformed Services 
     Treatment Facilities. The evaluation shall include an 
     examination of whether the benefit fee and copayment schedule 
     may--
       (A) cause adverse selection of enrollees;
       (B) be inappropriate for a fully at-risk program similar to 
     civilian health maintenance organizations; or
       (C) result in an enrolled population dissimilar to the 
     general beneficiary population.
       (2) The Comptroller General shall not be required to 
     prepare or submit the evaluation under paragraph (1) if the 
     Uniformed Services Treatment Facilities fail to 
     satisfactorily comply with subsection (b), as determined by 
     the Comptroller General.

     SEC. 727. ELIMINATION OF UNNECESSARY ANNUAL REPORTING 
                   REQUIREMENT REGARDING UNIFORMED SERVICES 
                   TREATMENT FACILITIES.

       Section 1252 of the Department of Defense Authorization 
     Act, 1984 (42 U.S.C. 248d), is amended by striking out 
     subsection (d).
   Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

     SEC. 731. MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL HEALTH-
                   CARE PROVIDERS UNDER CHAMPUS.

       (a) Maximum Payment.--Subsection (h) of section 1079 of 
     title 10, United States Code, is amended by striking out 
     paragraph (1) and inserting in lieu thereof the following new 
     paragraph:
       ``(1) Payment for a charge for services by an individual 
     health care professional (or other noninstitutional health 
     care provider) for which a claim is submitted under a plan 
     contracted for under subsection (a) may not exceed the lesser 
     of--
       ``(A) the amount equivalent to the 80th percentile of 
     billed charges made for similar services in the same locality 
     during the base period; or
       ``(B) an amount determined to be appropriate, to the extent 
     practicable, in accordance with the same reimbursement rules 
     as apply to payments for similar services under title XVIII 
     of the Social Security Act (42 U.S.C. 1395 et seq.).''.
       (b) Comparison to Medicare Payments.--Such subsection is 
     further amended by adding at the end the following new 
     paragraph:
       ``(3) For the purposes of paragraph (1)(B), the appropriate 
     payment amount shall be determined by the Secretary of 
     Defense, in consultation with the other administering 
     Secretaries.''.
       (c) Exceptions and Limitations.--Such subsection is further 
     amended by inserting after paragraph (3), as added by 
     subsection (b), the following new paragraphs:
       ``(4) The Secretary of Defense, in consultation with the 
     other administering Secretaries, shall prescribe regulations 
     to provide for such exceptions to the payment limitations 
     under paragraph (1) as the Secretary determines to be 
     necessary to assure that covered beneficiaries retain 
     adequate access to health care services. Such exceptions may 
     include the payment of amounts higher than the amount allowed 
     under paragraph (1) when enrollees in managed care programs 
     obtain covered emergency services from nonparticipating 
     providers. To provide a suitable transition from the payment 
     methodologies in effect before the date of the enactment of 
     this paragraph to the methodology required by paragraph (1), 
     the amount allowable for any service may not be reduced by 
     more than 15 percent below the amount allowed for the same 
     service during the immediately preceding 12-month period (or 
     other period as established by the Secretary of Defense).
       ``(5) The Secretary of Defense, in consultation with the 
     other administering Secretaries, shall prescribe regulations 
     to establish limitations (similar to the limitations 
     established under title XVIII of the Social Security Act (42 
     U.S.C. 1395 et seq.)) on beneficiary liability for charges of 
     an individual health care professional (or other 
     noninstitutional health care provider).''.
       (d) Conforming Amendment.--Paragraph (2) of such subsection 
     is amended by striking out ``paragraph (1)'' and inserting in 
     lieu thereof ``paragraph (1)(A)''.
       (e) Report on Effect of Amendments.--Not later than March 
     1, 1996, the Secretary of Defense shall submit to Congress a 
     report analyzing the effect of the amendments made by this 
     section on the ability or willingness of individual health 
     care professionals and other noninstitutional health care 
     providers to participate in the Civilian Health and Medical 
     Program of the Uniformed Services.

     SEC. 732. NOTIFICATION OF CERTAIN CHAMPUS COVERED 
                   BENEFICIARIES OF LOSS OF CHAMPUS ELIGIBILITY.

       Section 1086(d) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(4) The administering Secretaries shall develop a 
     mechanism by which persons described in paragraph (1) who 
     satisfy only the criteria specified in subparagraphs (A) and 
     (B) of paragraph (2), but not subparagraph (C) of such 
     paragraph, are promptly notified of their ineligibility for 
     health benefits under this section. In developing the 
     notification mechanism, the administering Secretaries shall 
     consult with the administrator of the Health Care Financing 
     Administration.''.

     SEC. 733. PERSONAL SERVICES CONTRACTS FOR MEDICAL TREATMENT 
                   FACILITIES OF THE COAST GUARD.

       (a) Contracting Authority.--Section 1091(a) of title 10, 
     United States Code, is amended--
       (1) by inserting after ``Secretary of Defense'' the 
     following: ``, with respect to medical treatment facilities 
     of the Department of Defense, and the Secretary of 
     Transportation, with respect to medical treatment facilities 
     of the Coast Guard when the Coast Guard is not operating as a 
     service in the Navy,''; and
       (2) by striking out ``medical treatment facilities of the 
     Department of Defense'' and inserting in lieu thereof ``such 
     facilities''.
       (b) Ratification of Existing Contracts.--Any exercise of 
     authority under section 1091 of title 10, United States Code, 
     to enter into a personal services contract on behalf of the 
     Coast Guard before the effective date of the amendments made 
     by subsection (a) is hereby ratified.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall take effect as of October 1, 1995.

     SEC. 734. IDENTIFICATION OF THIRD-PARTY PAYER SITUATIONS.

       Section 1095 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(k)(1) To improve the administration of this section and 
     sections 1079(j)(1) and 1086(d) of this title, the Secretary 
     of Defense, in consultation with the other administering 
     Secretaries, may prescribe regulations providing for the 
     collection of information regarding insurance, medical 
     service, or health plans of third-party payers held by 
     covered beneficiaries.
       ``(2) The collection of information under regulations 
     prescribed under paragraph (1) shall be conducted in the same 
     manner as is provided in section 1862(b)(5) of the Social 
     Security Act (42 U.S.C. 1395y(b)(5)). The Secretary may 
     provide for obtaining from the Commissioner of Social 
     Security employment information comparable to the information 
     provided to the Administrator of the Health Care Financing 
     Administration pursuant to such section. Such regulations may 
     require the mandatory disclosure of Social Security account 
     numbers for all covered beneficiaries.
       ``(3) The Secretary may disclose relevant employment 
     information collected under this subsection to fiscal 
     intermediaries or other designated contractors.
       ``(4) The Secretary may provide for contacting employers of 
     covered beneficiaries to obtain group health plan information 
     comparable to the information authorized to be obtained under 
     section 1862(b)(5)(C) of the Social Security Act (42 U.S.C. 
     1395y(b)(5)(C)). Notwithstanding clause (iii) of such 
     section, clause (ii) of such section regarding the imposition 
     of civil money penalties shall apply to the collection of 
     information under this paragraph.
       ``(5) Information obtained under this subsection may not be 
     disclosed for any purpose other than to carry out the purpose 
     of this section and sections 1079(j)(1) and 1086(d) of this 
     title.''.

     SEC. 735. REDESIGNATION OF MILITARY HEALTH CARE ACCOUNT AS 
                   DEFENSE HEALTH PROGRAM ACCOUNT AND TWO-YEAR 
                   AVAILABILITY OF CERTAIN ACCOUNT FUNDS.

       (a) Redesignation.--Section 1100 of title 10, United States 
     Code, is amended--
       (1) in subsection (a)(1)--
       (A) by striking out ``Military Health Care Account'' and 
     inserting in lieu thereof ``Defense Health Program Account''; 
     and
       (B) by striking out ``the Civilian Health and Medical 
     Program of the Uniformed Services'' and inserting in lieu 
     thereof ``medical and health care programs of the Department 
     of Defense''; and
       (2) in subsection (b)--
       (A) by striking out ``entering into a contract'' and 
     inserting in lieu thereof ``conducting programs and 
     activities under this chapter, including contracts entered 
     into''; and  
     
[[Page H410]]

       (B) by inserting a comma after ``title''.
       (b) Two Year Availability of Certain Appropriations.--
     Subsection (a)(2) of such section is amended to read as 
     follows:
       ``(2) Of the total amount appropriated for a fiscal year 
     for programs and activities carried out under this chapter, 
     the amount equal to three percent of such total amount shall 
     remain available for obligation until the end of the 
     following fiscal year.''.
       (c) Conforming Amendments.--Such section is further 
     amended--
       (1) by striking out subsections (c), (d), and (f); and
       (2) by redesignating subsection (e) as subsection (c).
       (d) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 1100. Defense Health Program Account''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 55 of such title is 
     amended to read as follows:

``1100. Defense Health Program Account.''.

     SEC. 736. EXPANSION OF FINANCIAL ASSISTANCE PROGRAM FOR 
                   HEALTH-CARE PROFESSIONALS IN RESERVE COMPONENTS 
                   TO INCLUDE DENTAL SPECIALTIES.

       Section 16201(b) of title 10, United States Code, is 
     amended--
       (1) in the subsection heading, by inserting ``and 
     Dentists'' after ``Physicians'';
       (2) in paragraph (1)(A), by inserting ``or dental school'' 
     after ``medical school'';
       (3) in paragraphs (1)(B) and (2)(B), by inserting ``or 
     dental officer'' after ``medical officer''; and
       (4) in paragraph (1)(C), by striking out ``physicians in a 
     medical specialty'' and inserting in lieu thereof 
     ``physicians or dentists in a medical or dental specialty''.

     SEC. 737. APPLICABILITY OF LIMITATION ON PRICES OF 
                   PHARMACEUTICALS PROCURED FOR COAST GUARD.

       (a) Inclusion of Coast Guard.--Section 8126(b) of title 38, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(4) The Coast Guard.''.
       (b) Effective Date; Application of Amendment.--The 
     amendment made by subsection (a) shall take effect as if 
     included in the enactment of section 603 of the Veterans 
     Health Care Act of 1992 (Public Law 102-585; 106 Stat. 4971).

     SEC. 738. RESTRICTION ON USE OF DEPARTMENT OF DEFENSE 
                   FACILITIES FOR ABORTIONS.

       (a) In General.--Section 1093 of title 10, United States 
     Code, is amended--
       (1) by inserting ``(a) Restriction on Use of Funds.--'' 
     before ``Funds available''; and
       (2) by adding at the end the following:
       ``(b) Restriction on Use of Facilities.--No medical 
     treatment facility or other facility of the Department of 
     Defense may be used to perform an abortion except where the 
     life of the mother would be endangered if the fetus were 
     carried to term or in a case in which the pregnancy is the 
     result of an act of rape or incest.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 1093. Performance of abortions: restrictions''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 55 of such title is 
     amended to read as follows:
``1093. Performance of abortions: restrictions.''.
                       Subtitle E--Other Matters

     SEC. 741. TRISERVICE NURSING RESEARCH.

       (a) Program Authorized.--Chapter 104 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 2116. Military nursing research

       ``(a) Definitions.--In this section:
       ``(1) The term `military nursing research' means research 
     on the furnishing of care and services by nurses in the armed 
     forces.
       ``(2) The term `TriService Nursing Research Program' means 
     the program of military nursing research authorized under 
     this section.
       ``(b) Program Authorized.--The Secretary of Defense may 
     establish at the University a program of military nursing 
     research.
       ``(c) TriService Research Group.--The TriService Nursing 
     Research Program shall be administered by a TriService 
     Nursing Research Group composed of Army, Navy, and Air Force 
     nurses who are involved in military nursing research and are 
     designated by the Secretary concerned to serve as members of 
     the group.
       ``(d) Duties of Group.--The TriService Nursing Research 
     Group shall--
       ``(1) develop for the Department of Defense recommended 
     guidelines for requesting, reviewing, and funding proposed 
     military nursing research projects; and
       ``(2) make available to Army, Navy, and Air Force nurses 
     and Department of Defense officials concerned with military 
     nursing research--
       ``(A) information about nursing research projects that are 
     being developed or carried out in the Army, Navy, and Air 
     Force; and
       ``(B) expertise and information beneficial to the 
     encouragement of meaningful nursing research.
       ``(e) Research Topics.--For purposes of this section, 
     military nursing research includes research on the following 
     issues:
       ``(1) Issues regarding how to improve the results of 
     nursing care and services provided in the armed forces in 
     time of peace.
       ``(2) Issues regarding how to improve the results of 
     nursing care and services provided in the armed forces in 
     time of war.
       ``(3) Issues regarding how to prevent complications 
     associated with battle injuries.
       ``(4) Issues regarding how to prevent complications 
     associated with the transporting of patients in the military 
     medical evacuation system.
       ``(5) Issues regarding how to improve methods of training 
     nursing personnel.
       ``(6) Clinical nursing issues, including such issues as 
     prevention and treatment of child abuse and spouse abuse.
       ``(7) Women's health issues.
       ``(8) Wellness issues.
       ``(9) Preventive medicine issues.
       ``(10) Home care management issues.
       ``(11) Case management issues.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 104 of such title is amended by adding 
     at the end the following:

``2116. Military nursing research.''.

     SEC. 742. TERMINATION OF PROGRAM TO TRAIN MILITARY 
                   PSYCHOLOGISTS TO PRESCRIBE PSYCHOTROPIC 
                   MEDICATIONS.

       (a) Termination.--Not later than June 30, 1997, the 
     Secretary of Defense shall terminate the demonstration pilot 
     program for training military psychologists in the 
     prescription of psychotropic medications, which is referred 
     to in section 8097 of the Department of Defense 
     Appropriations Act, 1991 (Public Law 101-511; 104 Stat. 
     1897).
       (b) Prohibition on Additional Enrollees Pending 
     Termination.--After the date of the enactment of this Act, 
     the Secretary of Defense may not enroll any new participants 
     for the demonstration pilot program described in subsection 
     (a).
       (c) Effect on Current Participants.--The requirement to 
     terminate the demonstration pilot program described in 
     subsection (a) shall not be construed to affect the training 
     or utilization of military psychologists in the prescription 
     of psychotropic medications who are participating in the 
     demonstration pilot program on the date of the enactment of 
     this Act or who have completed such training before that 
     date.
       (d) Evaluation.--As soon as possible after the date of the 
     enactment of this Act, but not later than April 1, 1997, the 
     Comptroller General of the United States shall submit to 
     Congress a report evaluating the success of the demonstration 
     pilot program described in subsection (a). The report shall 
     include--
       (1) a cost-benefit analysis of the program;
       (2) a discussion of the utilization requirements under the 
     program; and
       (3) recommendations regarding--
       (A) whether the program should be extended so as to 
     continue to provide training to military psychologists in the 
     prescription of psychotropic medications; and
       (B) any modifications that should be made in the manner in 
     which military psychologists are trained and used to 
     prescribe psychotropic medications so as to improve the 
     training provided under the program, if the program is 
     extended.

     SEC. 743. WAIVER OF COLLECTION OF PAYMENTS DUE FROM CERTAIN 
                   PERSONS UNAWARE OF LOSS OF CHAMPUS ELIGIBILITY.

       (a) Authority To Waive Collection.--The administering 
     Secretaries may waive the collection of payments otherwise 
     due from a person described in subsection (b) as a result of 
     the receipt by the person of health benefits under section 
     1086 of title 10, United States Code, after the termination 
     of the person's eligibility for such benefits.
       (b) Persons Eligible for Waiver.--A person shall be 
     eligible for relief under subsection (a) if the person--
       (1) is a person described in paragraph (1) of subsection 
     (d) of section 1086 of title 10, United States Code;
       (2) in the absence of such paragraph, would have been 
     eligible for health benefits under such section; and
       (3) at the time of the receipt of such benefits, satisfied 
     the criteria specified in subparagraphs (A) and (B) of 
     paragraph (2) of such subsection.
       (c) Extent of Waiver Authority.--The authority to waive the 
     collection of payments pursuant to this section shall apply 
     with regard to health benefits provided under section 1086 of 
     title 10, United States Code, to persons described in 
     subsection (b) during the period beginning on January 1, 
     1967, and ending on the later of--
       (1) the termination date of any special enrollment period 
     provided under title XVIII of the Social Security Act (42 
     U.S.C. 1395 et seq.) specifically for such persons; and
       (2) July 1, 1996.
       (d) Definitions.--For purposes of this section, the term 
     ``administering Secretaries'' has the meaning given such term 
     in section 1072(3) of title 10, United States Code.

     SEC. 744. DEMONSTRATION PROGRAM TO TRAIN MILITARY MEDICAL 
                   PERSONNEL IN CIVILIAN SHOCK TRAUMA UNITS.

       (a) Demonstration Program.--(1) Not later than April 1, 
     1996, the Secretary of Defense shall implement a 
     demonstration program to evaluate the feasibility of 
     providing shock trauma training for military medical 
     personnel through one or more public or nonprofit hospitals. 
     The Secretary shall carry out the program pursuant to an 
     agreement with such hospitals.
       (2) Under the agreement with a hospital, the Secretary 
     shall assign military medical personnel participating in the 
     demonstration program to temporary duty in shock trauma units 
     operated by the hospitals that are parties to the agreement.
     
[[Page H411]]

       (3) The agreement shall require, as consideration for the 
     services provided by military medical personnel under the 
     agreement, that the hospital provide appropriate care to 
     members of the Armed Forces and to other persons whose care 
     in the hospital would otherwise require reimbursement by the 
     Secretary. The value of the services provided by the 
     hospitals shall be at least equal to the value of the 
     services provided by military medical personnel under the 
     agreement.
       (b) Termination of Program.--The authority of the Secretary 
     of Defense to conduct the demonstration program under this 
     section, and any agreement entered into under the 
     demonstration program, shall expire on March 31, 1998.
       (c) Report and Evaluation of Program.--(1) Not later than 
     March 1 of each year in which the demonstration program is 
     conducted under this section, the Secretary of Defense shall 
     submit to Congress a report describing the scope and 
     activities of the demonstration program during the preceding 
     year.
       (2) Not later than May 1, 1998, the Comptroller General of 
     the United States shall submit to Congress a report 
     evaluating the effectiveness of the demonstration program in 
     providing shock trauma training for military medical 
     personnel.

     SEC. 745. STUDY REGARDING DEPARTMENT OF DEFENSE EFFORTS TO 
                   DETERMINE APPROPRIATE FORCE LEVELS OF WARTIME 
                   MEDICAL PERSONNEL.

       (a) Study Required.--The Comptroller General of the United 
     States shall conduct a study to evaluate the reasonableness 
     of the models used by each military department for 
     determining the appropriate wartime force level for medical 
     personnel in the department. The study shall include the 
     following:
       (1) An assessment of the modeling techniques used by each 
     department.
       (2) An analysis of the data used in the models to identify 
     medical personnel requirements.
       (3) An identification of the ability of the models to 
     integrate personnel of reserve components to meet department 
     requirements.
       (4) An evaluation of the ability of the Secretary of 
     Defense to integrate the various modeling efforts into a 
     comprehensive, coordinated plan for obtaining the optimum 
     force level for wartime medical personnel.
       (b) Report of Study.--Not later than June 30, 1996, the 
     Comptroller General shall report to Congress on the results 
     of the study conducted under subsection (a).

     SEC. 746. REPORT ON IMPROVED ACCESS TO MILITARY HEALTH CARE 
                   FOR COVERED BENEFICIARIES ENTITLED TO MEDICARE.

       Not later than March 1, 1996, the Secretary of Defense 
     shall submit to Congress a report evaluating the feasibility, 
     costs, and consequences for the military health care system 
     of improving access to the system for covered beneficiaries 
     under chapter 55 of title 10, United States Code, who have 
     limited access to military medical treatment facilities and 
     are ineligible for the Civilian Health and Medical Program 
     of the Uniformed Services under section 1086(d)(1) of such 
     title. The alternatives that the Secretary shall consider 
     to improve access for such covered beneficiaries shall 
     include--
       (1) whether CHAMPUS should serve as a second payer for 
     covered beneficiaries who are entitled to hospital insurance 
     benefits under part A of title XVIII of the Social Security 
     Act (42 U.S.C. 1395c et seq.); and
       (2) whether such covered beneficiaries should be offered 
     enrollment in the Federal Employees Health Benefits program 
     under chapter 89 of title 5, United States Code.

     SEC. 747. REPORT ON EFFECT OF CLOSURE OF FITZSIMONS ARMY 
                   MEDICAL CENTER, COLORADO, ON PROVISION OF CARE 
                   TO MILITARY PERSONNEL, RETIRED MILITARY 
                   PERSONNEL, AND THEIR DEPENDENTS.

       (a) Effect of Closure on Members Experiencing Health 
     Difficulties Associated With Persian Gulf Syndrome.--Not 
     later than 90 days after the date of the enactment of this 
     Act, the Secretary of Defense shall submit to Congress a 
     report that--
       (1) assesses the effects of the closure of Fitzsimons Army 
     Medical Center, Colorado, on the capability of the Department 
     of Defense to provide appropriate and adequate health care to 
     members and former members of the Armed Forces who suffer 
     from undiagnosed illnesses (or combination of illnesses) as a 
     result of service in the Armed Forces in the Southwest Asia 
     theater of operations during the Persian Gulf conflict; and
       (2) describes the plans of the Secretary of Defense and the 
     Secretary of the Army to ensure that adequate and appropriate 
     health care is provided to such members for such illnesses 
     (or combination of illnesses).
       (b) Effect of Closure on Other Covered Beneficiaries.--The 
     report required by subsection (a) shall also include--
       (1) an assessment of the effects of the closure of 
     Fitzsimons Army Medical Center on the capability of the 
     Department of Defense to provide appropriate and adequate 
     health care to the dependents of members and former members 
     of the Armed Forces and retired members and their dependents 
     who currently obtain care at the medical center; and
       (2) a description of the plans of the Secretary of Defense 
     and the Secretary of the Army to ensure that adequate and 
     appropriate health care is provided to such persons, as 
     called for in the recommendations of the Secretary of Defense 
     for the closure of Fitzsimons Army Medical Center.

     SEC. 748. SENSE OF CONGRESS ON CONTINUITY OF HEALTH CARE 
                   SERVICES FOR COVERED BENEFICIARIES ADVERSELY 
                   AFFECTED BY CLOSURES OF MILITARY MEDICAL 
                   TREATMENT FACILITIES.

       (a) Findings.--Congress finds the following:
       (1) Military installations selected for closure in the 1991 
     and 1993 rounds of the base closure process will soon close.
       (2) Additional military installations have been selected 
     for closure in the 1995 round of the base closure process.
       (3) Some of the military installations selected for closure 
     include military medical treatment facilities.
       (4) As a result of these base closures, tens of thousands 
     of covered beneficiaries under chapter 55 of title 10, United 
     States Code, who reside in the vicinity of such installations 
     will be left without immediate access to military medical 
     treatment facilities.
       (b) Sense of Congress.--In light of the findings specified 
     in subsection (a), it is the sense of Congress that the 
     Secretary of Defense should take all appropriate steps 
     necessary to ensure the continuation of medical and 
     pharmaceutical benefits for covered beneficiaries adversely 
     affected by the closure of military installations.

     SEC. 749. STATE RECOGNITION OF MILITARY ADVANCE MEDICAL 
                   DIRECTIVES.

       (a) Requirement for Recognition by States.--(1) Chapter 53 
     of title 10, United States Code, is amended by inserting 
     after section 1044b the following new section:

     ``Sec. 1044c. Advance medical directives of members and 
       dependents: requirement for recognition by States

       ``(a) Instruments To Be Given Legal Effect Without Regard 
     to State Law.--An advance medical directive executed by a 
     person eligible for legal assistance--
       ``(1) is exempt from any requirement of form, substance, 
     formality, or recording that is provided for advance medical 
     directives under the laws of a State; and
       ``(2) shall be given the same legal effect as an advance 
     medical directive prepared and executed in accordance with 
     the laws of the State concerned.
       ``(b) Advance Medical Directives.--For purposes of this 
     section, an advance medical directive is any written 
     declaration that--
       ``(1) sets forth directions regarding the provision, 
     withdrawal, or withholding of life-prolonging procedures, 
     including hydration and sustenance, for the declarant 
     whenever the declarant has a terminal physical condition or 
     is in a persistent vegetative state; or
       ``(2) authorizes another person to make health care 
     decisions for the declarant, under circumstances stated in 
     the declaration, whenever the declarant is incapable of 
     making informed health care decisions.
       ``(c) Statement To Be Included.--(1) Under regulations 
     prescribed by the Secretary concerned, an advance medical 
     directive prepared by an attorney authorized to provide legal 
     assistance shall contain a statement that sets forth the 
     provisions of subsection (a).
       ``(2) Paragraph (1) shall not be construed to make 
     inapplicable the provisions of subsection (a) to an advance 
     medical directive that does not include a statement described 
     in that paragraph.
       ``(d) States Not Recognizing Advance Medical Directives.--
     Subsection (a) does not make an advance medical directive 
     enforceable in a State that does not otherwise recognize and 
     enforce advance medical directives under the laws of the 
     State.
       ``(e) Definitions.--In this section:
       ``(1) The term `State' includes the District of Columbia, 
     the Commonwealth of Puerto Rico, and a possession of the 
     United States.
       ``(2) The term `person eligible for legal assistance' means 
     a person who is eligible for legal assistance under section 
     1044 of this title.
       ``(3) The term `legal assistance' means legal services 
     authorized under section 1044 of this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1044b the following:
``1044c. Advance medical directives of members and dependents: 
              requirement for recognition by States.''.

       (b) Effective Date.--Section 1044c of title 10, United 
     States Code, shall take effect on the date of the enactment 
     of this Act and shall apply to advance medical directives 
     referred to in that section that are executed before, on, or 
     after that date.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS
                     Subtitle A--Acquisition Reform

     SEC. 801. INAPPLICABILITY OF LIMITATION ON EXPENDITURE OF 
                   APPROPRIATIONS TO CONTRACTS AT OR BELOW 
                   SIMPLIFIED ACQUISITION THRESHOLD.

       Section 2207 of title 10, United States Code, is amended--
       (1) by inserting ``(a)'' before ``Money appropriated''; and
       (2) by adding at the end the following new subsection:
       ``(b) This section does not apply to a contract that is for 
     an amount not greater than the simplified acquisition 
     threshold (as defined in section 4(11) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(11))).''.
     
[[Page H412]]


     SEC. 802. AUTHORITY TO DELEGATE CONTRACTING AUTHORITY.

       (a) Repeal of Duplicative Authority and Restriction.--
     Section 2356 of title 10, United States Code, is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 139 of title 10, United States Code, is 
     amended by striking out the item relating to section 2356.

     SEC. 803. CONTROL IN PROCUREMENTS OF CRITICAL AIRCRAFT AND 
                   SHIP SPARE PARTS.

       (a) Repeal.--Section 2383 of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 141 of such title is amended by striking 
     out the item relating to section 2383.

     SEC. 804. FEES FOR CERTAIN TESTING SERVICES.

       Section 2539b(c) of title 10, United States Code, is 
     amended by inserting ``and indirect'' after ``recoup the 
     direct'' in the second sentence.

     SEC. 805. COORDINATION AND COMMUNICATION OF DEFENSE RESEARCH 
                   ACTIVITIES.

       Section 2364 of title 10, United States Code, is amended--
       (1) in subsection (b)(5), by striking out ``milestone O, 
     milestone I, and milestone II'' and inserting in lieu thereof 
     ``acquisition program''; and
       (2) in subsection (c), by striking out paragraphs (2), (3), 
     and (4) and inserting in lieu thereof the following:
       ``(2) The term `acquisition program decision' has the 
     meaning prescribed by the Secretary of Defense in 
     regulations.''.

     SEC. 806. ADDITION OF CERTAIN ITEMS TO DOMESTIC SOURCE 
                   LIMITATION.

       (a) Limitation.--(1) Paragraph (3) of section 2534(a) of 
     title 10, United States Code, is amended to read as follows:
       ``(3) Components for naval vessels.--(A) The following 
     components:
       ``(i) Air circuit breakers.
       ``(ii) Welded shipboard anchor and mooring chain with a 
     diameter of four inches or less.
       ``(iii) Vessel propellers with a diameter of six feet or 
     more.
       ``(B) The following components of vessels, to the extent 
     they are unique to marine applications: gyrocompasses, 
     electronic navigation chart systems, steering controls, 
     pumps, propulsion and machinery control systems, and totally 
     enclosed lifeboats.''.
       (2) Subsection (b) of section 2534 of such title is amended 
     by adding at the end the following:
       ``(3) Manufacturer of vessel propellers.--In the case of a 
     procurement of vessel propellers referred to in subsection 
     (a)(3)(A)(ii), the manufacturer of the propellers meets the 
     requirements of this subsection only if--
       ``(A) the manufacturer meets the requirements set forth in 
     paragraph (1); and
       ``(B) all castings incorporated into such propellers are 
     poured and finished in the United States.''.
       (3) Paragraph (1) of section 2534(c) of such title is 
     amended to read as follows:
       ``(1) Components for naval vessels.--Subsection (a) does 
     not apply to a procurement of spare or repair parts needed to 
     support components for naval vessels produced or manufactured 
     outside the United States.''.
       (4) Section 2534 of such title is amended by adding at the 
     end the following new subsection:
       ``(h) Implementation of Naval Vessel Component 
     Limitation.--In implementing subsection (a)(3)(B), the 
     Secretary of Defense--
       ``(1) may not use contract clauses or certifications; and
       ``(2) shall use management and oversight techniques that 
     achieve the objective of the subsection without imposing a 
     significant management burden on the Government or the 
     contractor involved.''.
       (5) Subsection (a)(3)(B) of section 2534 of title 10, 
     United States Code, as amended by paragraph (1), shall apply 
     only to contracts entered into after March 31, 1996.
       (b) Extension of Limitation Relating to Ball Bearings and 
     Roller Bearings.--Section 2534(c)(3) of such title is amended 
     by striking out ``October 1, 1995'' and inserting in lieu 
     thereof ``October 1, 2000''.
       (c) Termination of Vessel Propeller Limitation.--Section 
     2534(c) of such title is amended by adding at the end the 
     following new paragraph:
       ``(4) Vessel propellers.--Subsection (a)(3)(A)(iii) and 
     this paragraph shall cease to be effective on the date 
     occurring two years after the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 1996.''.
       (d) Inapplicability of Simplified Acquisition Limitation to 
     Contracts for Ball Bearings and Roller Bearings.--Section 
     2534(g) of title 10, United States Code, is amended--
       (1) by inserting ``(1)'' before ``This section''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Paragraph (1) does not apply to contracts for items 
     described in subsection (a)(5) (relating to ball bearings and 
     roller bearings), notwithstanding section 33 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 429).''.

     SEC. 807. ENCOURAGEMENT OF USE OF LEASING AUTHORITY.

       (a) In General.--(1) Section 2401a of title 10, United 
     States Code, is amended--
       (A) by inserting before ``The Secretary of Defense'' the 
     following subsection heading: ``(b) Limitation on Contracts 
     With Terms of 18 Months or More.--'';
       (B) by inserting after the section heading the following:
       ``(a) Leasing of Commercial Vehicles and Equipment.--The 
     Secretary of Defense may use leasing in the acquisition of 
     commercial vehicles and equipment whenever the Secretary 
     determines that leasing of such vehicles is practicable and 
     efficient.''; and
       (C) by amending the section heading to read as follows:

     ``Sec. 2401a. Lease of vehicles, equipment, vessels, and 
       aircraft''.

       (2) The item relating to section 2401a in the table of 
     sections at the beginning of chapter 141 of such title is 
     amended to read as follows:

``2401a. Lease of vehicles, equipment, vessels, and aircraft.''.

       (b) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives a report setting forth changes in legislation 
     that would be required to facilitate the use of leasing in 
     the acquisition of equipment by the Department of Defense.
       (c) Pilot Program.--(1) The Secretary of the Army may 
     conduct a pilot program for leasing commercial utility cargo 
     vehicles in accordance with this subsection.
       (2) Under the pilot program--
       (A) the Secretary may trade existing commercial utility 
     cargo vehicles of the Army for credit against the costs of 
     leasing new replacement commercial utility cargo vehicles for 
     the Army;
       (B) the quantities and trade-in value of commercial utility 
     cargo vehicles to be traded in shall be subject to 
     negotiation between the Secretary and the lessors of the new 
     replacement commercial utility cargo vehicles;
       (C) the lease agreement for a new commercial utility cargo 
     vehicle may be executed with or without an option to purchase 
     at the end of the lease period;
       (D) the lease period for a new commercial utility cargo 
     vehicle may not exceed the warranty period for the vehicle; 
     and
       (E) up to 40 percent of the validated requirement for 
     commercial utility cargo vehicles may be satisfied by leasing 
     such vehicles, except that one or more options for satisfying 
     the remainder of the validated requirement may be provided 
     for and exercised (subject to the requirements of paragraph 
     (6)).
       (3) In awarding contracts under the pilot program, the 
     Secretary shall comply with section 2304 of title 10, United 
     States Code.
       (4) The pilot program may not be commenced until--
       (A) the Secretary submits to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report that contains the 
     plans of the Secretary for implementing the program and that 
     sets forth in detail the savings in operating and support 
     costs expected to be derived from retiring older commercial 
     utility cargo vehicles, as compared to the expected costs of 
     leasing newer commercial utility cargo vehicles; and
       (B) a period of 30 calendar days has elapsed after 
     submission of such report.
       (5) Not later than one year after the date on which the 
     first lease under the pilot program is entered into, the 
     Secretary of the Army shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report on the status of the 
     pilot program. Such report shall be based on at least six 
     months of experience in operating the pilot program.
       (6) The Secretary may exercise an option provided for under 
     paragraph (2) only after a period of 60 days has elapsed 
     after the submission of the report.
       (7) No lease of commercial utility cargo vehicles may be 
     entered into under the pilot program after September 30, 
     2000.

     SEC. 808. COST REIMBURSEMENT RULES FOR INDIRECT COSTS 
                   ATTRIBUTABLE TO PRIVATE SECTOR WORK OF DEFENSE 
                   CONTRACTORS.

       (a) Defense Capability Preservation Agreement.--The 
     Secretary of Defense may enter into an agreement, to be known 
     as a ``defense capability preservation agreement'', with a 
     defense contractor under which the cost reimbursement rules 
     described in subsection (b) shall be applied. Such an 
     agreement may be entered into in any case in which the 
     Secretary determines that the application of such cost 
     reimbursement rules would facilitate the achievement of the 
     policy objectives set forth in section 2501(b) of title 10, 
     United States Code.
       (b) Cost Reimbursement Rules.--(1) The cost reimbursement 
     rules applicable under an agreement entered into under 
     subsection (a) are as follows:
       (A) The Department of Defense shall, in determining the 
     reimbursement due a contractor for its indirect costs of 
     performing a defense contract, allow the contractor to 
     allocate indirect costs to its private sector work only to 
     the extent of the contractor's allocable indirect private 
     sector costs, subject to subparagraph (C).
       (B) For purposes of subparagraph (A), the allocable 
     indirect private sector costs of a contractor are those costs 
     of the contractor that are equal to the sum of--
       (i) the incremental indirect costs attributable to such 
     work; and
     
[[Page H413]]

       (ii) the amount by which the revenue attributable to such 
     private sector work exceeds the sum of--
       (I) the direct costs attributable to such private sector 
     work; and
       (II) the incremental indirect costs attributable to such 
     private sector work.
       (C) The total amount of allocable indirect private sector 
     costs for a contract in any year of the agreement may not 
     exceed the amount of indirect costs that a contractor would 
     have allocated to its private sector work during that year in 
     accordance with the contractor's established accounting 
     practices.
       (2) The cost reimbursement rules set forth in paragraph (1) 
     may be modified by the Secretary of Defense if the Secretary 
     of Defense determines that modifications are appropriate to 
     the particular situation to facilitate achievement of the 
     policy set forth in section 2501(b) of title 10, United 
     States Code.
       (c) Implementation.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     establish application procedures and procedures for 
     expeditious consideration of defense capability preservation 
     agreements as authorized by this section.
       (d) Contracts Covered.--An agreement entered into with a 
     contractor under subsection (a) shall apply to each 
     Department of Defense contract with the contractor in effect 
     on the date on which the agreement is entered into and each 
     Department of Defense contract that is awarded to the 
     contractor during the term of the agreement.
       (e) Reports.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the congressional defense committees a report setting 
     forth--
       (1) the number of applications received and the number of 
     applications approved for defense capability preservation 
     agreements; and
       (2) any changes to the authority in this section that the 
     Secretary recommends to further facilitate the policy set 
     forth in section 2501(b) of title 10, United States Code.

     SEC. 809. SUBCONTRACTS FOR OCEAN TRANSPORTATION SERVICES.

       Notwithstanding any other provision of law, neither section 
     901(b) of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b)) 
     nor section 2631 of title 10, United States Code, shall be 
     included before May 1, 1996, on any list promulgated under 
     section 34(b) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 430(b)).

     SEC. 810. PROMPT RESOLUTION OF AUDIT RECOMMENDATIONS.

       Section 6009 of the Federal Acquisition Streamlining Act of 
     1994 (Public Law 103-355; 108 Stat. 3367) is amended to read 
     as follows:

     ``SEC. 6009. PROMPT MANAGEMENT DECISIONS AND IMPLEMENTATION 
                   OF AUDIT RECOMMENDATIONS.

       ``(a) Management Decisions.--(1) The head of a Federal 
     agency shall make management decisions on all findings and 
     recommendations set forth in an audit report of the inspector 
     general of the agency within a maximum of six months after 
     the issuance of the report.
       ``(2) The head of a Federal agency shall make management 
     decisions on all findings and recommendations set forth in an 
     audit report of any auditor from outside the Federal 
     Government within a maximum of six months after the date on 
     which the head of the agency receives the report.
       ``(b) Completion of Final Action.--The head of a Federal 
     agency shall complete final action on each management 
     decision required with regard to a recommendation in an 
     inspector general's report under subsection (a)(1) within 12 
     months after the date of the inspector general's report. If 
     the head of the agency fails to complete final action with 
     regard to a management decision within the 12-month period, 
     the inspector general concerned shall identify the matter in 
     each of the inspector general's semiannual reports pursuant 
     to section 5(a)(3) of the Inspector General Act of 1978 (5 
     U.S.C. App.) until final action on the management decision is 
     completed.''.

     SEC. 811. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE 
                   SUBCONTRACTING PLANS.

       (a) Revision of Authority.--Subsection (a) of section 834 
     of National Defense Authorization Act for Fiscal Years 1990 
     and 1991 (15 U.S.C. 637 note) is amended by striking out 
     paragraph (1) and inserting in lieu thereof the following:
       ``(1) The Secretary of Defense shall establish a test 
     program under which contracting activities in the military 
     departments and the Defense Agencies are authorized to 
     undertake one or more demonstration projects to determine 
     whether the negotiation and administration of comprehensive 
     subcontracting plans will reduce administrative burdens on 
     contractors while enhancing opportunities provided under 
     Department of Defense contracts for small business concerns 
     and small business concerns owned and controlled by socially 
     and economically disadvantaged individuals. In selecting the 
     contracting activities to undertake demonstration projects, 
     the Secretary shall take such action as is necessary to 
     ensure that a broad range of the supplies and services 
     acquired by the Department of Defense are included in the 
     test program.''.
       (b) Covered Contractors.--Subsection (b) of such section is 
     amended by striking out paragraph (3) and inserting in lieu 
     thereof the following:
       ``(3) A Department of Defense contractor referred to in 
     paragraph (1) is, with respect to a comprehensive 
     subcontracting plan negotiated in any fiscal year, a business 
     concern that, during the immediately preceding fiscal year, 
     furnished the Department of Defense with supplies or 
     services (including professional services, research and 
     development services, and construction services) pursuant 
     to at least three Department of Defense contracts having 
     an aggregate value of at least $5,000,000.''.
       (c) Technical Amendments.--Such section is amended--
       (1) by striking out subsection (g); and
       (2) by redesignating subsection (h) as subsection (g).

     SEC. 812. PROCUREMENT OF ITEMS FOR EXPERIMENTAL OR TEST 
                   PURPOSES.

       Section 2373(b) of title 10, United States Code, is amended 
     by inserting ``only'' after ``applies'' in the second 
     sentence.

     SEC. 813. USE OF FUNDS FOR ACQUISITION OF DESIGNS, PROCESSES, 
                   TECHNICAL DATA, AND COMPUTER SOFTWARE.

       Section 2386(3) of title 10, United States Code, is amended 
     to read as follows:
       ``(3) Design and process data, technical data, and computer 
     software.''.

     SEC. 814. INDEPENDENT COST ESTIMATES FOR MAJOR DEFENSE 
                   ACQUISITION PROGRAMS.

       Section 2434(b)(1)(A) of title 10, United States Code, is 
     amended to read as follows:
       ``(A) be prepared--
       ``(i) by an office or other entity that is not under the 
     supervision, direction, or control of the military 
     department, Defense Agency, or other component of the 
     Department of Defense that is directly responsible for 
     carrying out the development or acquisition of the program; 
     or
       ``(ii) if the decision authority for the program has been 
     delegated to an official of a military department, Defense 
     Agency, or other component of the Department of Defense, by 
     an office or other entity that is not directly responsible 
     for carrying out the development or acquisition of the 
     program; and''.

     SEC. 815. CONSTRUCTION, REPAIR, ALTERATION, FURNISHING, AND 
                   EQUIPPING OF NAVAL VESSELS.

       (a) Applicability of Certain Law.--Chapter 633 of title 10, 
     United States Code, is amended by inserting after section 
     7297 the following:

     ``Sec. 7299. Contracts: applicability of Walsh-Healey Act

       ``Each contract for the construction, alteration, 
     furnishing, or equipping of a naval vessel is subject to the 
     Walsh-Healey Act (41 U.S.C. 35 et seq.) unless the President 
     determines that this requirement is not in the interest of 
     national defense.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 7297 the following:

``7299. Contracts: applicability of Walsh-Healey Act.''.
                       Subtitle B--Other Matters

     SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

       (a) Funding.--Of the amount authorized to be appropriated 
     under section 301(5), $12,000,000 shall be available for 
     carrying out the provisions of chapter 142 of title 10, 
     United States Code.
       (b) Specific Programs.--Of the amounts made available 
     pursuant to subsection (a), $600,000 shall be available for 
     fiscal year 1996 for the purpose of carrying out programs 
     sponsored by eligible entities referred to in subparagraph 
     (D) of section 2411(1) of title 10, United States Code, that 
     provide procurement technical assistance in distressed areas 
     referred to in subparagraph (B) of section 2411(2) of such 
     title. If there is an insufficient number of satisfactory 
     proposals for cooperative agreements in such distressed areas 
     to allow effective use of the funds made available in 
     accordance with this subsection in such areas, the funds 
     shall be allocated among the Defense Contract Administration 
     Services regions in accordance with section 2415 of such 
     title.

     SEC. 822. DEFENSE FACILITY-WIDE PILOT PROGRAM.

       (a) Authority To Conduct Defense Facility-Wide Pilot 
     Program.--The Secretary of Defense may conduct a pilot 
     program, to be known as the ``defense facility-wide pilot 
     program'', for the purpose of determining the potential for 
     increasing the efficiency and effectiveness of the 
     acquisition process in facilities by using commercial 
     practices on a facility-wide basis.
       (b) Designation of Participating Facilities.--(1) Subject 
     to paragraph (2), the Secretary may designate up to two 
     facilities as participants in the defense facility-wide pilot 
     program.
       (2) The Secretary may designate for participation in the 
     pilot program only those facilities that are authorized to be 
     so designated in a law authorizing appropriations for 
     national defense programs that is enacted after the date of 
     the enactment of this Act.
       (c) Scope of Program.--At a facility designated as a 
     participant in the pilot program, the pilot program shall 
     consist of the following:
       (1) All contracts and subcontracts for defense supplies and 
     services that are performed at the facility.
       (2) All Department of Defense contracts and all 
     subcontracts under Department of Defense contracts performed 
     elsewhere that 

[[Page H414]]
     the Secretary determines are directly and substantially related to the 
     production of defense supplies and services at the facility 
     and are necessary for the pilot program.
       (d) Criteria for Designation of Participating Facilities.--
     The Secretary shall establish criteria for selecting a 
     facility for designation as a participant in the pilot 
     program. In developing such criteria, the Secretary shall 
     consider the following:
       (1) The number of existing and anticipated contracts and 
     subcontracts performed at the facility--
       (A) for which contractors are required to provide certified 
     cost or pricing data pursuant to section 2306a of title 10, 
     United States Code; and
       (B) which are administered with the application of cost 
     accounting standards under section 26(f) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 422(f)).
       (2) The relationship of the facility to other organizations 
     and facilities performing under contracts with the Department 
     of Defense and subcontracts under such contracts.
       (3) The impact that the participation of the facility under 
     the pilot program would have on competing domestic 
     manufacturers.
       (4) Such other factors as the Secretary considers 
     appropriate.
       (e) Notification.--(1) The Secretary shall transmit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives a 
     written notification of each facility proposed to be 
     designated by the Secretary for participation in the pilot 
     program.
       (2) The Secretary shall include in the notification 
     regarding a facility designated for participation in the 
     program a management plan addressing the following:
       (A) The proposed treatment of research and development 
     contracts or subcontracts to be performed at the facility 
     during the pilot program.
       (B) The proposed treatment of the cost impact of the use of 
     commercial practices on the award and administration of 
     contracts and subcontracts performed at the facility.
       (C) The proposed method for reimbursing the contractor for 
     existing and new contracts.
       (D) The proposed method for measuring the performance of 
     the facility for meeting the management goals of the 
     Secretary.
       (E) Estimates of the annual amount and the total amount of 
     the contracts and subcontracts covered under the pilot 
     program.
       (3)(A) The Secretary shall ensure that the management plan 
     for a facility provides for attainment of the following 
     objectives:
       (i) A significant reduction of the cost to the Government 
     for programs carried out at the facility.
       (ii) A reduction of the schedule associated with programs 
     carried out at the facility.
       (iii) An increased use of commercial practices and 
     procedures for programs carried out at the facility.
       (iv) Protection of a domestic manufacturer competing for 
     contracts at such facility from being placed at a significant 
     competitive disadvantage by the participation of the facility 
     in the pilot program.
       (B) The management plan for a facility shall also require 
     that all or substantially all of the contracts to be awarded 
     and performed at the facility after the designation of that 
     facility under subsection (b), and all or substantially all 
     of the subcontracts to be awarded under those contracts and 
     performed at the facility after the designation, be--
       (i) for the production of supplies or services on a firm-
     fixed price basis;
       (ii) awarded without requiring the contractors or 
     subcontractors to provide certified cost or pricing data 
     pursuant to section 2306a of title 10, United States Code; 
     and
       (iii) awarded and administered without the application of 
     cost accounting standards under section 26(f) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 422(f)).
       (f) Exemption From Certain Requirements.--In the case of a 
     contract or subcontract that is to be performed at a facility 
     designated for participation in the defense facility-wide 
     pilot program and that is subject to section 2306a of title 
     10, United States Code, or section 26(f) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 422(f)), the 
     Secretary of Defense may exempt such contract or subcontract 
     from the requirement to obtain certified cost or pricing data 
     under such section 2306a or the requirement to apply 
     mandatory cost accounting standards under such section 26(f) 
     if the Secretary determines that the contract or 
     subcontract--
       (1) is within the scope of the pilot program (as described 
     in subsection (c)); and
       (2) is fairly and reasonably priced based on information 
     other than certified cost and pricing data.
       (g) Special Authority.--The authority provided under 
     subsection (a) includes authority for the Secretary of 
     Defense--
       (1) to apply any amendment or repeal of a provision of law 
     made in this Act to the pilot program before the effective 
     date of such amendment or repeal; and
       (2) to apply to a procurement of items other than 
     commercial items under such program--
       (A) the authority provided in section 34 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 430) to waive a 
     provision of law in the case of commercial items, and
       (B) any exception applicable under this Act or the Federal 
     Acquisition Streamlining Act of 1994 (Public Law 103-355) (or 
     an amendment made by a provision of either Act) in the case 
     of commercial items,
     before the effective date of such provision (or amendment) to 
     the extent that the Secretary determines necessary to test 
     the application of such waiver or exception to procurements 
     of items other than commercial items.
       (h) Applicability.--(1) Subsections (f) and (g) apply to 
     the following contracts, if such contracts are within the 
     scope of the pilot program at a facility designated for the 
     pilot program under subsection (b):
       (A) A contract that is awarded or modified during the 
     period described in paragraph (2).
       (B) A contract that is awarded before the beginning of such 
     period, that is to be performed (or may be performed), in 
     whole or in part, during such period, and that may be 
     modified as appropriate at no cost to the Government.
       (2) The period referred to in paragraph (1), with respect 
     to a facility designated under subsection (b), is the period 
     that--
       (A) begins 45 days after the date of the enactment of the 
     Act authorizing the designation of that facility in 
     accordance with paragraph (2) of such subsection; and
       (B) ends on September 30, 2000.
       (i) Commercial Practices Encouraged.--With respect to 
     contracts and subcontracts within the scope of the defense 
     facility-wide pilot program, the Secretary of Defense may, to 
     the extent the Secretary determines appropriate and in 
     accordance with applicable law, adopt commercial practices in 
     the administration of contracts and subcontracts. Such 
     commercial practices may include the following:
       (1) Substitution of commercial oversight and inspection 
     procedures for Government audit and access to records.
       (2) Incorporation of commercial oversight, inspection, and 
     acceptance procedures.
       (3) Use of alternative dispute resolution techniques 
     (including arbitration).
       (4) Elimination of contract provisions authorizing the 
     Government to make unilateral changes to contracts.

     SEC. 823. TREATMENT OF DEPARTMENT OF DEFENSE CABLE TELEVISION 
                   FRANCHISE AGREEMENTS.

       Not later than 180 days after the date of the enactment of 
     this Act, the chief judge of the United States Court of 
     Federal Claims shall transmit to Congress a report containing 
     an advisory opinion on the following two questions:
       (1) Is it within the power of the executive branch to treat 
     cable television franchise agreements for the construction, 
     installation, or capital improvement of cable television 
     systems at military installations of the Department of 
     Defense as contracts under part 49 of the Federal Acquisition 
     Regulation without violating title VI of the Communications 
     Act of 1934 (47 U.S.C. 521 et seq.)?
       (2) If the answer to the question in paragraph (1) is in 
     the affirmative, is the executive branch required by law to 
     so treat such franchise agreements?

     SEC. 824. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

       Section 831(j)(1) of the National Defense Authorization Act 
     for Fiscal Year 1991 (10 U.S.C. 2301 note) is amended by 
     striking out ``1995'' and inserting in lieu thereof ``1996''.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT
                      Subtitle A--General Matters

     SEC. 901. ORGANIZATION OF THE OFFICE OF THE SECRETARY OF 
                   DEFENSE.

       (a) Findings.--Congress makes the following findings:
       (1) The statutory provisions that as of the date of the 
     enactment of this Act govern the organization of the Office 
     of the Secretary of Defense have evolved from enactment of a 
     number of executive branch legislative proposals and 
     congressional initiatives over a period of years.
       (2) The May 1995 report of the congressionally mandated 
     Commission on Roles and Missions of the Armed Forces included 
     a number of recommendations relating to the Office of the 
     Secretary of Defense.
       (3) The Secretary of Defense has decided to create a 
     special Department task force and to conduct other reviews to 
     review many of the Commission's recommendations.
       (4) The Secretary of Defense has decided to institute a 5 
     percent per year reduction of civilian personnel assigned to 
     the Office of the Secretary of Defense, including the 
     Washington Headquarters Service and the Defense Support 
     Activities, for the period from fiscal year 1996 through 
     fiscal year 2001.
       (5) Over the ten-year period from 1986 through 1995, 
     defense spending in real dollars has been reduced by 34 
     percent and military end-strengths have been reduced by 28 
     percent. During the same period, the number of civilian 
     employees of the Office of the Secretary of Defense has 
     increased by 22 percent.
       (6) To achieve greater efficiency and to revalidate the 
     role and mission of the Office of the Secretary of Defense, a 
     comprehensive review of the organizations and functions of 
     that Office and of the personnel needed to carry out those 
     functions is required.
       (b) Review.--The Secretary of Defense shall conduct a 
     further review of the organizations and functions of the 
     Office of the Secretary of Defense, including the Washington 
     Headquarters Service and the Defense Support Activities, and 
     the personnel needed to carry out those functions. The review 
     shall include the following:
     
[[Page H415]]

       (1) An assessment of the appropriate functions of the 
     Office and whether the Office of the Secretary of Defense or 
     some of its component parts should be organized along mission 
     lines.
       (2) An assessment of the adequacy of the present 
     organizational structure to efficiently and effectively 
     support the Secretary in carrying out his responsibilities in 
     a manner that ensures civilian authority in the Department of 
     Defense.
       (3) An assessment of the advantages and disadvantages of 
     the use of political appointees to fill the positions of the 
     various Under Secretaries of Defense, Assistant Secretaries 
     of Defense, and Deputy Under Secretaries of Defense.
       (4) An assessment of the extent of unnecessary duplication 
     of functions between the Office of the Secretary of Defense 
     and the Joint Staff.
       (5) An assessment of the extent of unnecessary duplication 
     of functions between the Office of the Secretary of Defense 
     and the military departments.
       (6) An assessment of the appropriate number of positions 
     referred to in paragraph (3) and of Deputy Assistant 
     Secretaries of Defense.
       (7) An assessment of whether some or any of the functions 
     currently performed by the Office of Humanitarian and Refugee 
     Affairs are more properly or effectively performed by another 
     agency of Government or elsewhere within the Department of 
     Defense.
       (8) An assessment of the efficacy of the Joint Requirements 
     Oversight Council and whether it is advisable or necessary to 
     establish a statutory charter for this organization.
       (9) An assessment of any benefits or efficiencies derived 
     from decentralizing certain functions currently performed by 
     the Office of the Secretary of Defense.
       (10) An assessment of the appropriate size, number, and 
     functional responsibilities of the Defense Agencies and other 
     Department of Defense support organizations.
       (c) Report.--Not later than March 1, 1996, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report containing --
       (1) his findings and conclusions resulting from the review 
     under subsection (b); and
       (2) a plan for implementing resulting recommendations, 
     including proposals for legislation (with supporting 
     rationale) that would be required as a result of the review.
       (d) Personnel Reduction.--(1) Effective October 1, 1999, 
     the number of OSD personnel may not exceed 75 percent of the 
     number of OSD personnel as of October 1, 1994.
       (2) For purposes of this subsection, the term ``OSD 
     personnel'' means military and civilian personnel of the 
     Department of Defense who are assigned to, or employed in, 
     functions in the Office of the Secretary of Defense 
     (including Direct Support Activities of that Office and the 
     Washington Headquarters Services of the Department of 
     Defense).
       (3) In carrying out reductions in the number of personnel 
     assigned to, or employed in, the Office of the Department of 
     Defense in order to comply with paragraph (1), the Secretary 
     may not reassign functions solely in order to evade the 
     requirement contained in that paragraph.
       (4) If the Secretary of Defense determines, and certifies 
     to Congress, that the limitation in paragraph (1) would 
     adversely affect United States national security, the 
     limitation under paragraph (1) shall be applied by 
     substituting ``80 percent'' for ``75 percent''.

     SEC. 902. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF 
                   DEFENSE POSITIONS.

       (a) Reduction.--Section 138(a) of title 10, United States 
     Code, is amended by striking out ``eleven'' and inserting in 
     lieu thereof ``ten''.
       (b) Conforming Amendment.--Section 5315 of title 5, United 
     States Code, is amended by striking out ``(11)'' after 
     ``Assistant Secretaries of Defense'' and inserting in lieu 
     thereof ``(10)''.

     SEC. 903. DEFERRED REPEAL OF VARIOUS STATUTORY POSITIONS AND 
                   OFFICES IN OFFICE OF THE SECRETARY OF DEFENSE.

       (a) Effective Date.--The amendments made by this section 
     shall take effect on January 31, 1997.
       (b) Termination of Specification by Law of ASD Positions.--
     Subsection (b) of section 138 of title 10, United States 
     Code, is amended to read as follows:
       ``(b) The Assistant Secretaries shall perform such duties 
     and exercise such powers as the Secretary of Defense may 
     prescribe.''.
       (c) Repeal of Certain OSD Presidential Appointment 
     Positions.--The following sections of chapter 4 of such title 
     are repealed:
       (1) Section 133a, relating to the Deputy Under Secretary of 
     Defense for Acquisition and Technology.
       (2) Section 134a, relating to the Deputy Under Secretary of 
     Defense for Policy.
       (3) Section 134a, relating to the Director of Defense 
     Research and Engineering.
       (4) Section 142, relating to the Assistant to the Secretary 
     of Defense for Nuclear and Chemical and Biological Defense 
     Programs.
       (d) Director of Military Relocation Assistance Programs.--
     Section 1056 of such title is amended by striking out 
     subsection (d).
       (e) Conforming Amendments Relating to Repeal of Various OSD 
     Positions.--Chapter 4 of such title is further amended--
       (1) in section 131(b)--
       (A) by striking out paragraphs (6) and (8); and
       (B) by redesignating paragraphs (7), (9), (10), and (11), 
     as paragraphs (6), (7), (8), and (9), respectively;
       (2) in section 138(d), by striking out ``the Under 
     Secretaries of Defense, and the Director of Defense Research 
     and Engineering'' and inserting in lieu thereof ``and the 
     Under Secretaries of Defense''; and
       (3) in the table of sections at the beginning of the 
     chapter, by striking out the items relating to sections 133a, 
     134a, 137, 139, and 142.
       (f) Conforming Amendments Relating to Repeal of 
     Specification of ASD Positions.--
       (1) Section 176(a)(3) of title 10, United States Code, is 
     amended--
       (A) by striking out ``Assistant Secretary of Defense for 
     Health Affairs'' and inserting in lieu thereof ``official in 
     the Department of Defense with principal responsibility for 
     health affairs''; and
       (B) by striking out ``Chief Medical Director of the 
     Department of Veterans Affairs'' and inserting in lieu 
     thereof ``Under Secretary for Health of the Department of 
     Veterans Affairs''.
       (2) Section 1216(d) of such title is amended by striking 
     out ``Assistant Secretary of Defense for Health Affairs'' and 
     inserting in lieu thereof ``official in the Department of 
     Defense with principal responsibility for health affairs''.
       (3) Section 1587(d) of such title is amended by striking 
     out ``Assistant Secretary of Defense for Manpower and 
     Logistics'' and inserting in lieu thereof ``official in the 
     Department of Defense with principal responsibility for 
     personnel and readiness''.
       (4) The text of section 10201 of such title is amended to 
     read as follows:
       ``The official in the Department of Defense with 
     responsibility for overall supervision of reserve component 
     affairs of the Department of Defense is the official 
     designated by the Secretary of Defense to have that 
     responsibility.''.
       (5) Section 1211(b)(2) of the National Defense 
     Authorization Act for Fiscal Years 1988 and 1989 (P.L. 100-
     180; 101 Stat 1155; 10 U.S.C. 167 note) is amended by 
     striking out ``the Assistant Secretary of Defense for Special 
     Operations and Low Intensity Conflict'' and inserting in lieu 
     thereof ``the official designated by the Secretary of Defense 
     to have principal responsibility for matters relating to 
     special operations and low intensity conflict''.
       (g) Repeal of Minimum Number of Senior Staff for Specified 
     Assistant Secretary of Defense.--Section 355 of the National 
     Defense Authorization Act for Fiscal Year 1991 (Public Law 
     101-510; 104 Stat. 1540) is repealed.

     SEC. 904. REDESIGNATION OF THE POSITION OF ASSISTANT TO THE 
                   SECRETARY OF DEFENSE FOR ATOMIC ENERGY.

       (a) In General.--(1) Section 142 of title 10, United States 
     Code, is amended--
       (A) by striking out the section heading and inserting in 
     lieu thereof the following:

     ``Sec. 142. Assistant to the Secretary of Defense for Nuclear 
       and Chemical and Biological Defense Programs'';

       (B) in subsection (a), by striking out ``Assistant to the 
     Secretary of Defense for Atomic Energy'' and inserting in 
     lieu thereof ``Assistant to the Secretary of Defense for 
     Nuclear and Chemical and Biological Defense Programs''; and
       (C) by striking out subsection (b) and inserting in lieu 
     thereof the following:
       ``(b) The Assistant to the Secretary shall--
       ``(1) advise the Secretary of Defense on nuclear energy, 
     nuclear weapons, and chemical and biological defense;
       ``(2) serve as the Staff Director of the Nuclear Weapons 
     Council established by section 179 of this title; and
       ``(3) perform such additional duties as the Secretary may 
     prescribe.''.
       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 4 of such title is 
     amended to read as follows:

``142. Assistant to the Secretary of Defense for Nuclear and Chemical 
              and Biological Defense Programs.''.

       (b) Conforming Amendments.--(1) Section 179(c)(2) of title 
     10, United States Code, is amended by striking out ``The 
     Assistant to the Secretary of Defense for Atomic Energy'' and 
     inserting in lieu thereof ``The Assistant to the Secretary of 
     Defense for Nuclear and Chemical and Biological Defense 
     Programs''.
       (2) Section 5316 of title 5, United States Code, is amended 
     by striking out ``The Assistant to the Secretary of Defense 
     for Atomic Energy, Department of Defense.'' and inserting in 
     lieu thereof the following:
       ``Assistant to the Secretary of Defense for Nuclear and 
     Chemical and Biological Defense Programs, Department of 
     Defense.''.

     SEC. 905. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

       (a) In General.--(1) Chapter 7 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 181. Joint Requirements Oversight Council

       ``(a) Establishment.--The Secretary of Defense shall 
     establish a Joint Requirements Oversight Council in the 
     Department of Defense.
       ``(b) Mission.--In addition to other matters assigned to it 
     by the President or Secretary of Defense, the Joint 
     Requirements Oversight Council shall--
       ``(1) assist the Chairman of the Joint Chiefs of Staff in 
     identifying and assessing the priority of joint military 
     requirements (including existing systems and equipment) to 
     meet the national military strategy;
     
[[Page H416]]

       ``(2) assist the Chairman in considering alternatives to 
     any acquisition program that has been identified to meet 
     military requirements by evaluating the cost, schedule, and 
     performance criteria of the program and of the identified 
     alternatives; and
       ``(3) as part of its mission to assist the Chairman in 
     assigning joint priority among existing and future programs 
     meeting valid requirements, ensure that the assignment of 
     such priorities conforms to and reflects resource levels 
     projected by the Secretary of Defense through defense 
     planning guidance.
       ``(c) Composition.--(1) The Joint Requirements Oversight 
     Council is composed of--
       ``(A) the Chairman of the Joint Chiefs of Staff, who is the 
     chairman of the Council;
       ``(B) an Army officer in the grade of general;
       ``(C) a Navy officer in the grade of admiral;
       ``(D) an Air Force officer in the grade of general; and
       ``(E) a Marine Corps officer in the grade of general.
       ``(2) Members of the Council, other than the Chairman of 
     the Joint Chiefs of Staff, shall be selected by the Chairman 
     of the Joint Chiefs of Staff, after consultation with the 
     Secretary of Defense, from officers in the grade of general 
     or admiral, as the case may be, who are recommended for such 
     selection by the Secretary of the military department 
     concerned.
       ``(3) The functions of the Chairman of the Joint Chiefs of 
     Staff as chairman of the Council may only be delegated to the 
     Vice Chairman of the Joint Chiefs of Staff.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``181. Joint Requirements Oversight Council.''.

       (b) Effective Date.--The amendments made by this section 
     shall take effect on January 31, 1997.

     SEC. 906. RESTRUCTURING OF DEPARTMENT OF DEFENSE ACQUISITION 
                   ORGANIZATION AND WORKFORCE.

       (a) Restructuring Report.--Not later than March 1, 1996, 
     the Secretary of Defense shall submit to Congress a report on 
     the acquisition organization and workforce of the Department 
     of Defense. The report shall include--
       (1) the plan described in subsection (b); and
       (2) the assessment of streamlining and restructuring 
     options described in subsection (c).
       (b) Plan for Restructuring.--(1) The Secretary shall 
     include in the report under subsection (a) a plan on how to 
     restructure the current acquisition organization of the 
     Department of Defense in a manner that would enable the 
     Secretary to accomplish the following:
       (A) Reduce the number of military and civilian personnel 
     assigned to, or employed in, acquisition organizations of the 
     Department of Defense (as defined by the Secretary) by 25 
     percent over a period of five years, beginning on October 1, 
     1995.
       (B) Eliminate duplication of functions among existing 
     acquisition organizations of the Department of Defense.
       (C) Maximize opportunity for consolidation among 
     acquisition organizations of the Department of Defense to 
     reduce management overhead.
       (2) In the report, the Secretary shall also identify any 
     statutory requirement or congressional directive that 
     inhibits any proposed restructuring plan or reduction in the 
     size of the defense acquisition organization.
       (3) In designing the plan under paragraph (1), the 
     Secretary shall give full consideration to the process 
     efficiencies expected to be achieved through the 
     implementation of the Federal Acquisition Streamlining Act of 
     1994 (Public Law 103-355), the Federal Acquisition Reform Act 
     of 1995 (division D of this Act), and other ongoing 
     initiatives to increase the use of commercial practices and 
     reduce contract overhead in the defense procurement system.
       (c) Assessment of Specified Restructuring Options.--The 
     Secretary shall include in the report under subsection (a) a 
     detailed assessment of each of the following options for 
     streamlining and restructuring the existing defense 
     acquisition organization, together with a specific 
     recommendation as to whether each such option should be 
     implemented:
       (1) Consolidation of certain functions of the Defense 
     Contract Audit Agency and the Defense Contract Management 
     Command.
       (2) Contracting for performance of a significant portion of 
     the workload of the Defense Contract Audit Agency and other 
     Defense Agencies that perform acquisition functions.
       (3) Consolidation or selected elimination of Department of 
     Defense acquisition organizations.
       (4) Any other defense acquisition infrastructure 
     streamlining or restructuring option the Secretary may 
     determine.
       (d) Reduction of Acquisition Workforce.--(1) The Secretary 
     of Defense shall accomplish reductions in defense acquisition 
     personnel positions during fiscal year 1996 so that the total 
     number of such personnel as of October 1, 1996, is less than 
     the total number of such personnel as of October 1, 1995, by 
     at least 15,000.
       (2) For purposes of this subsection, the term ``defense 
     acquisition personnel'' means military and civilian personnel 
     assigned to, or employed in, acquisition organizations of the 
     Department of Defense (as specified in Department of Defense 
     Instruction numbered 5000.58 dated January 14, 1992) with the 
     exception of personnel who possess technical competence in 
     trade-skill maintenance and repair positions involved in 
     performing depot maintenance functions.

     SEC. 907. REPORT ON NUCLEAR POSTURE REVIEW AND ON PLANS FOR 
                   NUCLEAR WEAPONS MANAGEMENT IN EVENT OF 
                   ABOLITION OF DEPARTMENT OF ENERGY.

       (a) Report Required.--The Secretary of Defense shall submit 
     to Congress a report concerning the nuclear weapons complex. 
     The report shall set forth--
       (1) the Secretary's views on the effectiveness of the 
     Department of Energy in managing the nuclear weapons complex, 
     including the fulfillment of the requirements for nuclear 
     weapons established for the Department of Energy in the 
     Nuclear Posture Review; and
       (2) the Secretary's recommended plan for the incorporation 
     into the Department of Defense of the national security 
     programs of the Department of Energy if the Department of 
     Energy should be abolished and those programs be transferred 
     to the Department of Defense.
       (b) Definition.--For purposes of this section, the term 
     ``Nuclear Posture Review'' means the Department of Defense 
     Nuclear Posture Review as contained in the report entitled 
     ``Report of the Secretary of Defense to the President and the 
     Congress'', dated February 19, 1995, or in subsequent such 
     reports.
       (c) Submission Of Report.--The report under subsection (a) 
     shall be submitted not later than March 15, 1996.

     SEC. 908. REDESIGNATION OF ADVANCED RESEARCH PROJECTS AGENCY.

       (a) Redesignation.--The agency in the Department of Defense 
     known as the Advanced Research Projects Agency shall after 
     the date of the enactment of this Act be designated as the 
     Defense Advanced Research Projects Agency.
       (b) References.--Any reference in any law, regulation, 
     document, record, or other paper of the United States or in 
     any provision of this Act to the Advanced Research Projects 
     Agency shall be considered to be a reference to the Defense 
     Advanced Research Projects Agency.
                    Subtitle B--Financial Management

     SEC. 911. TRANSFER AUTHORITY REGARDING FUNDS AVAILABLE FOR 
                   FOREIGN CURRENCY FLUCTUATIONS.

       (a) Transfers to Military Personnel Accounts Authorized.--
     Section 2779 of title 10, United States Code, is amended by 
     adding at the end the following:
       ``(c) Transfers to Military Personnel Accounts.--The 
     Secretary of Defense may transfer funds to military personnel 
     appropriations for a fiscal year out of funds available to 
     the Department of Defense for that fiscal year under the 
     appropriation `Foreign Currency Fluctuations, Defense'.''.
       (b) Revision and Codification of Authority for Transfers to 
     Foreign Currency Fluctuations Account.--Section 2779 of such 
     title, as amended by subsection (a), is further amended by 
     adding at the end the following:
       ``(d) Transfers to Foreign Currency Fluctuations Account.--
     (1) The Secretary of Defense may transfer to the 
     appropriation `Foreign Currency Fluctuations, Defense' 
     unobligated amounts of funds appropriated for operation and 
     maintenance and unobligated amounts of funds appropriated for 
     military personnel.
       ``(2) Any transfer from an appropriation under paragraph 
     (1) shall be made not later than the end of the second fiscal 
     year following the fiscal year for which the appropriation is 
     provided.
       ``(3) Any transfer made pursuant to the authority provided 
     in this subsection shall be limited so that the amount in the 
     appropriation `Foreign Currency Fluctuations, Defense' does 
     not exceed $970,000,000 at the time the transfer is made.''.
       (c) Conditions of Availability for Transferred Funds.--
     Section 2779 of such title, as amended by subsection (b), is 
     further amended by adding at the end the following:
       ``(e) Conditions of Availability for Transferred Funds.--
     Amounts transferred under subsection (c) or (d) shall be 
     merged with and be available for the same purposes and for 
     the same period as the appropriations to which 
     transferred.''.
       (d) Repeal of Superseded Provisions.--(1) Section 767A of 
     Public Law 96-527 (94 Stat. 3093) is repealed.
       (2) Section 791 of the Department of Defense Appropriation 
     Act, 1983 (enacted in section 101(c) of Public Law 97-377; 96 
     Stat. 1865) is repealed.
       (e) Technical Amendments.--Section 2779 of title 10, United 
     States Code, is amended--
       (1) in subsection (a), by striking out ``(a)(1)'' and 
     inserting in lieu thereof ``(a) Transfers Back to Foreign 
     Currency Fluctuations Appropriation.--(1)'';
       (2) in subsection (a)(2), by striking out ``2d fiscal 
     year'' and inserting in lieu thereof ``second fiscal year''; 
     and
       (3) in subsection (b), by striking out ``(b)(1)'' and 
     inserting in lieu thereof ``(b) Funding for Losses in 
     Military Construction and Family Housing.--(1)''.
       (f) Effective Date.--Subsections (c) and (d) of section 
     2779 of title 10, United States Code, as added by subsections 
     (a) and (b), and the repeals made by subsection (d), shall 
     apply only with respect to amounts appropriated for a fiscal 
     year after fiscal year 1995.
     
[[Page H417]]


     SEC. 912. DEFENSE MODERNIZATION ACCOUNT.

       (a) Establishment and Use.--(1) Chapter 131 of title 10, 
     United States Code, is amended by inserting after section 
     2215 the following new section:

     ``Sec. 2216. Defense Modernization Account

       ``(a) Establishment.--There is established in the Treasury 
     an account to be known as the `Defense Modernization 
     Account'.
       ``(b) Transfers to Account.--(1)(A) Upon a determination by 
     the Secretary of a military department or the Secretary of 
     Defense with respect to Defense-wide appropriations accounts 
     of the availability and source of funds described in 
     subparagraph (B), that Secretary may transfer to the Defense 
     Modernization Account during any fiscal year any amount of 
     funds available to the Secretary described in that 
     subparagraph. Such funds may be transferred to that account 
     only after the Secretary concerned notifies the congressional 
     defense committees in writing of the amount and source of the 
     proposed transfer.
       ``(B) This subsection applies to the following funds 
     available to the Secretary concerned:
       ``(i) Unexpired funds in appropriations accounts that are 
     available for procurement and that, as a result of economies, 
     efficiencies, and other savings achieved in carrying out a 
     particular procurement, are excess to the requirements of 
     that procurement.
       ``(ii) Unexpired funds that are available during the final 
     30 days of a fiscal year for support of installations and 
     facilities and that, as a result of economies, efficiencies, 
     and other savings, are excess to the requirements for support 
     of installations and facilities.
       ``(C) Any transfer under subparagraph (A) shall be made 
     under regulations prescribed by the Secretary of Defense.
       ``(2) Funds referred to in paragraph (1) may not be 
     transferred to the Defense Modernization Account if--
       ``(A) the funds are necessary for programs, projects, and 
     activities that, as determined by the Secretary, have a 
     higher priority than the purposes for which the funds would 
     be available if transferred to that account; or
       ``(B) the balance of funds in the account, after transfer 
     of funds to the account, would exceed $1,000,000,000.
       ``(3) Amounts credited to the Defense Modernization Account 
     shall remain available for transfer until the end of the 
     third fiscal year that follows the fiscal year in which the 
     amounts are credited to the account.
       ``(4) The period of availability of funds for expenditure 
     provided for in sections 1551 and 1552 of title 31 may not be 
     extended by transfer into the Defense Modernization Account.
       ``(c) Scope of Use of Funds.--Funds transferred to the 
     Defense Modernization Account from funds appropriated for a 
     military department, Defense Agency, or other element of the 
     Department of Defense shall be available in accordance with 
     subsections (f) and (g) only for transfer to funds available 
     for that military department, Defense Agency, or other 
     element.
       ``(d) Authorized Use of Funds.--Funds available from the 
     Defense Modernization Account pursuant to subsection (f) or 
     (g) may be used for the following purposes:
       ``(1) For increasing, subject to subsection (e), the 
     quantity of items and services procured under a procurement 
     program in order to achieve a more efficient production or 
     delivery rate.
       ``(2) For research, development, test, and evaluation and 
     for procurement necessary for modernization of an existing 
     system or of a system being procured under an ongoing 
     procurement program.
       ``(e) Limitations.--(1) Funds in the Defense Modernization 
     Account may not be used to increase the quantity of an item 
     or services procured under a particular procurement program 
     to the extent that doing so would--
       ``(A) result in procurement of a total quantity of items or 
     services in excess of--
       ``(i) a specific limitation provided by law on the quantity 
     of the items or services that may be procured; or
       ``(ii) the requirement for the items or services as 
     approved by the Joint Requirements Oversight Council and 
     reported to Congress by the Secretary of Defense; or
       ``(B) result in an obligation or expenditure of funds in 
     excess of a specific limitation provided by law on the amount 
     that may be obligated or expended, respectively, for that 
     procurement program.
       ``(2) Funds in the Defense Modernization Account may not be 
     used for a purpose or program for which Congress has not 
     authorized appropriations.
       ``(3) Funds may not be transferred from the Defense 
     Modernization Account in any year for the purpose of--
       ``(A) making an expenditure for which there is no 
     corresponding obligation; or
       ``(B) making an expenditure that would satisfy an 
     unliquidated or unrecorded obligation arising in a prior 
     fiscal year.
       ``(f) Transfer of Funds.--(1) The Secretary of Defense may 
     transfer funds in the Defense Modernization Account to 
     appropriations available for purposes set forth in subsection 
     (d).
       ``(2) Funds in the Defense Modernization Account may not be 
     transferred under paragraph (1) until 30 days after the date 
     on which the Secretary concerned notifies the congressional 
     defense committees in writing of the amount and purpose of 
     the proposed transfer.
       ``(3) The total amount of transfers from the Defense 
     Modernization Account during any fiscal year under this 
     subsection may not exceed $500,000,000.
       ``(g) Availability of Funds by Appropriation.--In addition 
     to transfers under subsection (f), funds in the Defense 
     Modernization Account may be made available for purposes set 
     forth in subsection (d) in accordance with the provisions of 
     appropriations Acts, but only to the extent authorized in an 
     Act other than an appropriations Act.
       ``(h) Secretary To Act Through Comptroller.--The Secretary 
     of Defense shall carry out this section through the Under 
     Secretary of Defense (Comptroller), who shall be authorized 
     to implement this section through the issuance of any 
     necessary regulations, policies, and procedures after 
     consultation with the General Counsel and Inspector General 
     of the Department of Defense.
       ``(i) Quarterly Reports.--(1) Not later than 15 days after 
     the end of each calendar quarter, the Secretary of Defense 
     shall submit to the congressional committees specified in 
     paragraph (2) a report on the Defense Modernization Account. 
     Each such report shall set forth the following:
       ``(A) The amount and source of each credit to the account 
     during that quarter.
       ``(B) The amount and purpose of each transfer from the 
     account during that quarter.
       ``(C) The balance in the account at the end of the quarter 
     and, of such balance, the amount attributable to transfers to 
     the account from each Secretary concerned.
       ``(2) The committees referred to in paragraph (1) are the 
     congressional defense committees and the Committee on 
     Governmental Affairs of the Senate and the Committee on 
     Government Reform and Oversight of the House of 
     Representatives.
       ``(j) Definitions.--In this section:
       ``(1) The term `Secretary concerned' includes the Secretary 
     of Defense with respect to Defense-wide appropriations 
     accounts.
       ``(2) The term `unexpired funds' means funds appropriated 
     for a definite period that remain available for obligation.
       ``(3) The term `congressional defense committees' means--
       ``(A) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(B) the Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.
       (2) The table of sections at the beginning of chapter 131 
     of such title is amended by inserting after the item relating 
     to section 2215 the following new item:

``2216. Defense Modernization Account.''.

       (b) Effective Date.--Section 2216 of title 10, United 
     States Code (as added by subsection (a)), shall apply only to 
     funds appropriated for fiscal years after fiscal year 1995.
       (c) Expiration of Authority and Account.--(1) The authority 
     under section 2216(b) of title 10, United States Code (as 
     added by subsection (a)), to transfer funds into the Defense 
     Modernization Account terminates at the close of September 
     30, 2003.
       (2) Three years after the termination date specified in 
     paragraph (1), the Defense Modernization Account shall be 
     closed and any remaining balance in the account shall be 
     canceled and thereafter shall not be available for any 
     purpose.
       (d) GAO Reviews.--(1) The Comptroller General of the United 
     States shall conduct two reviews of the administration of the 
     Defense Modernization Account. In each review, the 
     Comptroller General shall assess the operations and benefits 
     of the account.
       (2) Not later than March 1, 2000, the Comptroller General 
     shall--
       (A) complete the first review; and
       (B) submit to the specified committees of Congress an 
     initial report on the administration and benefits of the 
     Defense Modernization Account.
       (3) Not later than March 1, 2003, the Comptroller General 
     shall--
       (A) complete the second review; and
       (B) submit to the specified committees of Congress a final 
     report on the administration and benefits of the Defense 
     Modernization Account.
       (4) Each such report shall include any recommended 
     legislation regarding the account that the Comptroller 
     General considers appropriate.
       (5) For purposes of this subsection, the term ``specified 
     committees of Congress'' means the congressional committees 
     referred to in section 2216(i)(2) of title 10, United States 
     Code, as added by subsection (a).

     SEC. 913. DESIGNATION AND LIABILITY OF DISBURSING AND 
                   CERTIFYING OFFICIALS.

       (a) Disbursing Officials.--(1) Section 3321(c) of title 31, 
     United States Code, is amended by striking out paragraph (2) 
     and inserting in lieu thereof the following:
       ``(2) The Department of Defense.''.
       (2) Section 2773 of title 10, United States Code, is 
     amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking out ``With the approval 
     of a Secretary of a military department when the Secretary 
     considers it necessary, a disbursing official of the military 
     department'' and inserting in lieu thereof ``Subject to 
     paragraph (3), a disbursing official of the Department of 
     Defense''; and
       (ii) by adding at the end the following new paragraph:
       ``(3) A disbursing official may make a designation under 
     paragraph (1) only with the 

[[Page H418]]
     approval of the Secretary of Defense or, in the case of a disbursing 
     official of a military department, the Secretary of that 
     military department.''; and
       (B) in subsection (b)(1), by striking out ``any military 
     department'' and inserting in lieu thereof ``the Department 
     of Defense''.
       (b) Designation of Members of the Armed Forces To Have 
     Authority To Certify Vouchers.--Section 3325(b) of title 31, 
     United States Code, is amended to read as follows:
       ``(b) In addition to officers and employees referred to in 
     subsection (a)(1)(B) of this section as having authorization 
     to certify vouchers, members of the armed forces under the 
     jurisdiction of the Secretary of Defense may certify vouchers 
     when authorized, in writing, by the Secretary to do so.''.
       (c) Conforming Amendments.--(1) Section 1012 of title 37, 
     United States Code, is amended by striking out ``Secretary 
     concerned'' both places it appears and inserting in lieu 
     thereof ``Secretary of Defense''.
       (2) Section 1007(a) of title 37, United States Code, is 
     amended by striking out ``Secretary concerned'' and inserting 
     in lieu thereof ``Secretary of Defense, or upon the denial of 
     relief of an officer pursuant to section 3527 of title 31''.
       (3)(A) Section 7863 of title 10, United States Code, is 
     amended--
       (i) in the first sentence, by striking out ``disbursements 
     of public moneys or'' and ``the money was paid or''; and
       (ii) in the second sentence, by striking out ``disbursement 
     or''.
       (B)(i) The heading of such section is amended to read as 
     follows:

     ``Sec. 7863. Disposal of public stores by order of commanding 
       officer''.

       (ii) The item relating to such section in the table of 
     sections at the beginning of chapter 661 of such title is 
     amended to read as follows:

``7863. Disposal of public stores by order of commanding officer.''.

       (4) Section 3527(b)(1) of title 31, United States Code, is 
     amended--
       (A) by striking out ``a disbursing official of the armed 
     forces'' and inserting in lieu thereof ``an official of the 
     armed forces referred to in subsection (a)'';
       (B) by striking out ``records,'' and inserting in lieu 
     thereof ``records, or a payment described in section 
     3528(a)(4)(A) of this title,'';
       (C) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), and realigning such clauses 
     four ems from the left margin;
       (D) by inserting before clause (i), as so redesignated, the 
     following:
       ``(A) in the case of a physical loss or deficiency--'';
       (E) in clause (iii), as so redesignated, by striking out 
     the period at the end and inserting in lieu thereof ``; or''; 
     and
       (F) by adding at the end the following:
       ``(B) in the case of a payment described in section 
     3528(a)(4)(A) of this title, the Secretary of Defense or the 
     Secretary of the appropriate military department, after 
     taking a diligent collection action, finds that the criteria 
     of section 3528(b)(1) of this title are satisfied.''.
       (5) Section 3528 of title 31, United States Code, is 
     amended by striking out subsection (d).

     SEC. 914. FISHER HOUSE TRUST FUNDS.

       (a) Establishment.--(1) Chapter 131 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 2221. Fisher House trust funds

       ``(a) Establishment.--The following trust funds are 
     established on the books of the Treasury:
       ``(1) The Fisher House Trust Fund, Department of the Army.
       ``(2) The Fisher House Trust Fund, Department of the Air 
     Force.
       ``(b) Investment.--Funds in the trust funds may be invested 
     in securities of the United States. Earnings and gains 
     realized from the investment of funds in a trust fund shall 
     be credited to the trust fund.
       ``(c) Use of Funds.--(1) Amounts in the Fisher House Trust 
     Fund, Department of the Army, that are attributable to 
     earnings or gains realized from investments shall be 
     available for the operation and maintenance of Fisher houses 
     that are located in proximity to medical treatment facilities 
     of the Army.
       ``(2) Amounts in the Fisher House Trust Fund, Department of 
     the Air Force, that are attributable to earnings or gains 
     realized from investments shall be available for the 
     operation and maintenance of Fisher houses that are located 
     in proximity to medical treatment facilities of the Air 
     Force.
       ``(3) The use of funds under this section is subject to 
     section 1321(b)(2) of title 31.
       ``(d) Fisher House Defined.--In this section, the term 
     `Fisher house' means a housing facility that--
       ``(1) is located in proximity to a medical treatment 
     facility of the Army or the Air Force; and
       ``(2) is available for residential use on a temporary basis 
     by patients at such facilities, members of the family of such 
     patients, and others providing the equivalent of familial 
     support for such patients.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2221. Fisher House trust funds.''.

       (b) Corpus of Trust Funds.--(1) The Secretary of the 
     Treasury shall--
       (A) close the accounts established with the funds that were 
     required by section 8019 of Public Law 102-172 (105 Stat. 
     1175) and section 9023 of Public Law 102-396 (106 Stat. 1905) 
     to be transferred to an appropriated trust fund; and
       (B) transfer the amounts in such accounts to the Fisher 
     House Trust Fund, Department of the Army, established by 
     subsection (a)(1) of section 2221 of title 10, United States 
     Code, as added by subsection (a).
       (2) The Secretary of the Air Force shall transfer to the 
     Fisher House Trust Fund, Department of the Air Force, 
     established by subsection (a)(2) of section 2221 of title 10, 
     United States Code (as added by section (a)), all amounts in 
     the accounts for Air Force installations and other facilities 
     that, as of the date of the enactment of this Act, are 
     available for operation and maintenance of Fisher houses (as 
     defined in subsection (d) of such section 2221).
       (c) Conforming Amendments.--Section 1321 of title 31, 
     United States Code, is amended--
       (1) by adding at the end of subsection (a) the following:
       ``(92) Fisher House Trust Fund, Department of the Army.
       ``(93) Fisher House Trust Fund, Department of the Air 
     Force.''; and
       (2) in subsection (b)--
       (A) by inserting ``(1)'' after ``(b)'';
       (B) in the second sentence, by striking out ``Amounts 
     accruing to these funds (except to the trust fund `Armed 
     Forces Retirement Home Trust Fund')'' and inserting in lieu 
     thereof ``Except as provided in paragraph (2), amounts 
     accruing to these funds'';
       (C) by striking out the third sentence; and
       (D) by adding at the end the following:
       ``(2) Expenditures from the following trust funds may be 
     made only under annual appropriations and only if the 
     appropriations are specifically authorized by law:
       ``(A) Armed Forces Retirement Home Trust Fund.
       ``(B) Fisher House Trust Fund, Department of the Army.
       ``(C) Fisher House Trust Fund, Department of the Air 
     Force.''.
       (d) Repeal of Superseded Provisions.--The following 
     provisions of law are repealed:
       (1) Section 8019 of Public Law 102-172 (105 Stat. 1175).
       (2) Section 9023 of Public Law 102-396 (106 Stat. 1905).
       (3) Section 8019 of Public Law 103-139 (107 Stat. 1441).
       (4) Section 8017 of Public Law 103-335 (108 Stat. 2620; 10 
     U.S.C. 1074 note).

     SEC. 915. LIMITATION ON USE OF AUTHORITY TO PAY FOR EMERGENCY 
                   AND EXTRAORDINARY EXPENSES.

       Section 127 of title 10, United States Code, is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c)(1) Funds may not be obligated or expended in an 
     amount in excess of $500,000 under the authority of 
     subsection (a) or (b) until the Secretary of Defense has 
     notified the Committee on Armed Services and the Committee on 
     Appropriations of the Senate and the Committee on National 
     Security and the Committee on Appropriations of the House of 
     Representatives of the intent to obligate or expend the 
     funds, and--
       ``(A) in the case of an obligation or expenditure in excess 
     of $1,000,000, 15 days have elapsed since the date of the 
     notification; or
       ``(B) in the case of an obligation or expenditure in excess 
     of $500,000, but not in excess of $1,000,000, 5 days have 
     elapsed since the date of the notification.
       ``(2) Subparagraph (A) or (B) of paragraph (1) shall not 
     apply to an obligation or expenditure of funds otherwise 
     covered by such subparagraph if the Secretary of Defense 
     determines that the national security objectives of the 
     United States will be compromised by the application of the 
     subparagraph to the obligation or expenditure. If the 
     Secretary makes a determination with respect to an obligation 
     or expenditure under the preceding sentence, the Secretary 
     shall immediately notify the committees referred to in 
     paragraph (1) that such obligation or expenditure is 
     necessary and provide any relevant information (in classified 
     form, if necessary) jointly to the chairman and ranking 
     minority member (or their designees) of such committees.
       ``(3) A notification under paragraph (1) and information 
     referred to in paragraph (2) shall include the amount to be 
     obligated or expended, as the case may be, and the purpose of 
     the obligation or expenditure.''.
                      TITLE X--GENERAL PROVISIONS
                     Subtitle A--Financial Matters

     SEC. 1001. TRANSFER AUTHORITY.

       (a) Authority To Transfer Authorizations.--(1) Upon 
     determination by the Secretary of Defense that such action is 
     necessary in the national interest, the Secretary may 
     transfer amounts of authorizations made available to the 
     Department of Defense in this division for fiscal year 1996 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     of Defense may transfer under the authority of this section 
     may not exceed $2,000,000,000.
       (b) Limitations.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide authority for items that 
     have a higher priority than 

[[Page H419]]
     the items from which authority is transferred; and
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress.
       (c) Effect on Authorization Amounts.--A transfer made from 
     one account to another under the authority of this section 
     shall be deemed to increase the amount authorized for the 
     account to which the amount is transferred by an amount equal 
     to the amount transferred.
       (d) Notice to Congress.--The Secretary shall promptly 
     notify Congress of each transfer made under subsection (a).

     SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

       (a) Status of Classified Annex.--The Classified Annex 
     prepared by the committee on conference to accompany the bill 
     H.R. 1530 of the One Hundred Fourth Congress and transmitted 
     to the President is hereby incorporated into this Act.
       (b) Construction With Other Provisions of Act.--The amounts 
     specified in the Classified Annex are not in addition to 
     amounts authorized to be appropriated by other provisions of 
     this Act.
       (c) Limitation on Use of Funds.--Funds appropriated 
     pursuant to an authorization contained in this Act that are 
     made available for a program, project, or activity referred 
     to in the Classified Annex may only be expended for such 
     program, project, or activity in accordance with such terms, 
     conditions, limitations, restrictions, and requirements as 
     are set out for that program, project, or activity in the 
     Classified Annex.
       (d) Distribution of Classified Annex.--The President shall 
     provide for appropriate distribution of the Classified Annex, 
     or of appropriate portions of the annex, within the executive 
     branch of the Government.

     SEC. 1003. IMPROVED FUNDING MECHANISMS FOR UNBUDGETED 
                   OPERATIONS.

       (a) Revision of Funding Mechanism.--(1) Section 127a of 
     title 10, United States Code, is amended to read as follows:

     ``Sec. 127a. Operations for which funds are not provided in 
       advance: funding mechanisms

       ``(a) In General.--(1) The Secretary of Defense shall use 
     the procedures prescribed by this section with respect to any 
     operation specified in paragraph (2) that involves--
       ``(A) the deployment (other than for a training exercise) 
     of elements of the Armed Forces for a purpose other than a 
     purpose for which funds have been specifically provided in 
     advance; or
       ``(B) the provision of humanitarian assistance, disaster 
     relief, or support for law enforcement (including immigration 
     control) for which funds have not been specifically provided 
     in advance.
       ``(2) This section applies to--
       ``(A) any operation the incremental cost of which is 
     expected to exceed $50,000,000; and
       ``(B) any other operation the expected incremental cost of 
     which, when added to the expected incremental costs of other 
     operations that are currently ongoing, is expected to result 
     in a cumulative incremental cost of ongoing operations of the 
     Department of Defense in excess of $100,000,000.
     Any operation the incremental cost of which is expected not 
     to exceed $10,000,000 shall be disregarded for the purposes 
     of subparagraph (B).
       ``(3) Whenever an operation to which this section applies 
     is commenced or subsequently becomes covered by this section, 
     the Secretary of Defense shall designate and identify that 
     operation for the purposes of this section and shall promptly 
     notify Congress of that designation (and of the 
     identification of the operation).
       ``(4) This section does not provide authority for the 
     President or the Secretary of Defense to carry out any 
     operation, but establishes mechanisms for the Department of 
     Defense by which funds are provided for operations that the 
     armed forces are required to carry out under some other 
     authority.
       ``(b) Waiver of Requirement To Reimburse Support Units.--
     (1) The Secretary of Defense shall direct that, when a unit 
     of the Armed Forces participating in an operation described 
     in subsection (a) receives services from an element of the 
     Department of Defense that operates through the Defense 
     Business Operations Fund (or a successor fund), such unit of 
     the Armed Forces may not be required to reimburse that 
     element for the incremental costs incurred by that element in 
     providing such services, notwithstanding any other provision 
     of law or any Government accounting practice.
       ``(2) The amounts which but for paragraph (1) would be 
     required to be reimbursed to an element of the Department of 
     Defense (or a fund) shall be recorded as an expense 
     attributable to the operation and shall be accounted for 
     separately.
       ``(c) Transfer Authority.--(1) Whenever there is an 
     operation of the Department of Defense described in 
     subsection (a), the Secretary of Defense may transfer amounts 
     described in paragraph (3) to accounts from which incremental 
     expenses for that operation were incurred in order to 
     reimburse those accounts for those incremental expenses. 
     Amounts so transferred shall be merged with and be 
     available for the same purposes as the accounts to which 
     transferred.
       ``(2) The total amount that the Secretary of Defense may 
     transfer under the authority of this section in any fiscal 
     year is $200,000,000.
       ``(3) Transfers under this subsection may only be made from 
     amounts appropriated to the Department of Defense for any 
     fiscal year that remain available for obligation, other than 
     amounts within any operation and maintenance appropriation 
     that are available for (A) an account (known as a budget 
     activity 1 account) that is specified as being for operating 
     forces, or (B) an account (known as a budget activity 2 
     account) that is specified as being for mobilization.
       ``(4) The authority provided by this subsection is in 
     addition to any other authority provided by law authorizing 
     the transfer of amounts available to the Department of 
     Defense. However, the Secretary may not use any such 
     authority under another provision of law for a purpose 
     described in paragraph (1) if there is authority available 
     under this subsection for that purpose.
       ``(5) The authority provided by this subsection to transfer 
     amounts may not be used to provide authority for an activity 
     that has been denied authorization by Congress.
       ``(6) A transfer made from one account to another under the 
     authority of this subsection shall be deemed to increase the 
     amount authorized for the account to which the amount is 
     transferred by an amount equal to the amount transferred.
       ``(d) Report Upon Designation of an Operation.--Within 45 
     days after the Secretary of Defense identifies an operation 
     pursuant to subsection (a)(2), the Secretary of Defense shall 
     submit to Congress a report that sets forth the following:
       ``(1) The manner by which the Secretary proposes to obtain 
     funds for the cost to the United States of the operation, 
     including a specific discussion of how the Secretary proposes 
     to restore balances in--
       ``(A) the Defense Business Operations Fund (or a successor 
     fund), or
       ``(B) the accounts from which the Secretary transfers funds 
     under the authority of subsection (c), to the levels that 
     would have been anticipated but for the provisions of 
     subsection (c).
       ``(2) If the operation is described in subsection 
     (a)(1)(B), a justification why the budgetary resources of 
     another department or agency of the Federal Government, 
     instead of resources of the Department of Defense, are not 
     being used for carrying out the operation.
       ``(3) The objectives of the operation.
       ``(4) The estimated duration of the operation and of any 
     deployment of armed forces personnel in such operation.
       ``(5) The estimated incremental cost of the operation to 
     the United States.
       ``(6) The exit criteria for the operation and for the 
     withdrawal of the elements of the armed forces involved in 
     the operation.
       ``(e) Limitations.--(1) The Secretary may not restore 
     balances in the Defense Business Operations Fund through 
     increases in rates charged by that fund in order to 
     compensate for costs incurred and not reimbursed due to 
     subsection (b).
       ``(2) The Secretary may not restore balances in the Defense 
     Business Operations Fund or any other fund or account through 
     the use of unobligated amounts in an operation and 
     maintenance appropriation that are available within that 
     appropriation for (A) an account (known as a budget activity 
     1 account) that is specified as being for operating forces, 
     or (B) an account (known as a budget activity 2 account) that 
     is specified as being for mobilization.
         ``(f) Submission of Requests for Supplemental 
     Appropriations.--It is the sense of Congress that whenever 
     there is an operation described in subsection (a), the 
     President should, not later than 90 days after the date on 
     which notification is provided pursuant to subsection (a)(3), 
     submit to Congress a request for the enactment of 
     supplemental appropriations for the then-current fiscal year 
     in order to provide funds to replenish the Defense Business 
     Operations Fund or any other fund or account of the 
     Department of Defense from which funds for the incremental 
     expenses of that operation were derived under this section 
     and should, as necessary, submit subsequent requests for the 
     enactment of such appropriations.
       ``(g) Incremental Costs.--For purposes of this section, 
     incremental costs of the Department of Defense with respect 
     to an operation are the costs of the Department that are 
     directly attributable to the operation (and would not have 
     been incurred but for the operation). Incremental costs do 
     not include the cost of property or services acquired by the 
     Department that are paid for by a source outside the 
     Department or out of funds contributed by such a source.
       ``(h) Relationship to War Powers Resolution.--This section 
     may not be construed as altering or superseding the War 
     Powers Resolution. This section does not provide authority to 
     conduct any military operation.
       ``(i) GAO Compliance Reviews.--The Comptroller General of 
     the United States shall from time to time, and when requested 
     by a committee of Congress, conduct a review of the defense 
     funding structure under this section to determine whether the 
     Department of Defense is complying with the requirements and 
     limitations of this section.''.
       (2) The item relating to section 127a in the table of 
     sections at the beginning of chapter 3 of such title is 
     amended to read as follows:

``127a. Operations for which funds are not provided in advance: funding 
              mechanisms.''.

       (b) Effective Date.--The amendment to section 127a of title 
     10, United States Code, made by subsection (a) shall take 
     effect on the date of the enactment of this Act and 

[[Page H420]]
     shall apply to any operation of the Department of Defense that is in 
     effect on or after that date, whether such operation is begun 
     before, on, or after such date of enactment. In the case of 
     an operation begun before such date, any reference in such 
     section to the commencement of such operation shall be 
     treated as referring to the effective date under the 
     preceding sentence.

     SEC. 1004. OPERATION PROVIDE COMFORT.

       (a) Authorization of Amounts Available.--Within the total 
     amounts authorized to be appropriated in titles III and IV, 
     there is hereby authorized to be appropriated for fiscal year 
     1996 for costs associated with Operation Provide Comfort--
       (1) $136,300,000 for operation and maintenance costs; and
       (2) $7,000,000 for incremental military personnel costs.
       (b) Report.--Not more than $70,000,000 of the amount 
     appropriated under subsection (a) may be obligated until the 
     Secretary of Defense submits to the congressional defense 
     committees a report on Operation Provide Comfort which 
     includes the following:
       (1) A detailed presentation of the projected costs to be 
     incurred by the Department of Defense for Operation Provide 
     Comfort during fiscal year 1996, together with a discussion 
     of missions and functions expected to be performed by the 
     Department as part of that operation during that fiscal year.
       (2) A detailed presentation of the projected costs to be 
     incurred by other departments and agencies of the Federal 
     Government participating in or providing support to Operation 
     Provide Comfort during fiscal year 1996.
       (3) A discussion of available options to reduce the 
     involvement of the Department of Defense in those aspects of 
     Operation Provide Comfort that are not directly related to 
     the military mission of the Department of Defense.
       (4) A plan establishing an exit strategy for United States 
     involvement in, and support for, Operation Provide Comfort.
       (c) Operation Provide Comfort.--For purposes of this 
     section, the term ``Operation Provide Comfort'' means the 
     operation of the Department of Defense that as of October 30, 
     1995, is designated as Operation Provide Comfort.

     SEC. 1005. OPERATION ENHANCED SOUTHERN WATCH.

       (a) Authorization of Amounts Available.--Within the total 
     amounts authorized to be appropriated in titles III and IV, 
     there is hereby authorized to be appropriated for fiscal year 
     1996 for costs associated with Operation Enhanced Southern 
     Watch--
       (1) $433,400,000 for operation and maintenance costs; and
       (2) $70,400,000 for incremental military personnel costs.
       (b) Report.--(1) Of the amounts specified in subsection 
     (a), not more than $250,000,000 may be obligated until the 
     Secretary of Defense submits to the congressional defense 
     committees a report designating Operation Enhanced Southern 
     Watch, or significant elements thereof, as a forward presence 
     operation for which funding should be budgeted as part of the 
     annual defense budget process in the same manner as other 
     activities of the Armed Forces involving forward presence or 
     forward deployed forces.
       (2) The report shall set forth the following:
       (A) The expected duration and annual costs of the various 
     elements of Operation Enhanced Southern Watch.
       (B) Those elements of Operation Enhanced Southern Watch 
     that are semi-permanent in nature and should be budgeted in 
     the future as part of the annual defense budget process in 
     the same manner as other activities of the Armed Forces 
     involving forward presence or forward deployed forces.
       (C) The political and military objectives associated with 
     Operation Enhanced Southern Watch.
       (D) The contributions (both in-kind and actual) by other 
     nations to the costs of conducting Operation Enhanced 
     Southern Watch.
       (c) Operation Enhanced Southern Watch.--For purposes of 
     this section, the term ``Operation Enhanced Southern Watch'' 
     means the operation of the Department of Defense that as of 
     October 30, 1995, is designated as Operation Enhanced 
     Southern Watch.

     SEC. 1006. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED 
                   FISCAL YEAR 1995 DEFENSE APPROPRIATIONS.

       (a) Authority.--The amounts described in subsection (b) may 
     be obligated and expended for programs, projects, and 
     activities of the Department of Defense in accordance with 
     fiscal year 1995 defense appropriations.
       (b) Covered Amounts.--The amounts referred to in subsection 
     (a) are the amounts provided for programs, projects, and 
     activities of the Department of Defense in fiscal year 1995 
     defense appropriations that are in excess of the amounts 
     provided for such programs, projects, and activities in 
     fiscal year 1995 defense authorizations.
       (c) Definitions.--For the purposes of this section:
       (1) Fiscal year 1995 defense appropriations.--The term 
     ``fiscal year 1995 defense appropriations'' means amounts 
     appropriated or otherwise made available to the Department of 
     Defense for fiscal year 1995 in the Department of Defense 
     Appropriations Act, 1995 (Public Law 103-335).
       (2) Fiscal year 1995 defense authorizations.--The term 
     ``fiscal year 1995 defense authorizations'' means amounts 
     authorized to be appropriated for the Department of Defense 
     for fiscal year 1995 in the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337).

     SEC. 1007. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL 
                   APPROPRIATIONS FOR FISCAL YEAR 1995.

       (a) Adjustment to Previous Authorizations.--Amounts 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 1995 in the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337) are hereby 
     adjusted, with respect to any such authorized amount, by the 
     amount by which appropriations pursuant to such authorization 
     were increased (by a supplemental appropriation) or decreased 
     (by a rescission), or both, in title I of the Emergency 
     Supplemental Appropriations and Rescissions for the 
     Department of Defense to Preserve and Enhance Military 
     Readiness Act of 1995 (Public Law 104-6; 109 Stat. 73).
       (b) New Authorization.--The appropriation provided in 
     section 104 of such Act (109 Stat. 79) is hereby authorized.

     SEC. 1008. AUTHORIZATION REDUCTIONS TO REFLECT SAVINGS FROM 
                   REVISED ECONOMIC ASSUMPTIONS.

       (a) Reduction.--The total amount authorized to be 
     appropriated in titles I, II, and III of this Act is hereby 
     reduced by $832,000,000 to reflect savings from revised 
     economic assumptions. Such reduction shall be made from 
     accounts in those titles 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.
       Research, Development, Test and Evaluation, Defense, 
     $2,000,000.
       (b) Reductions To Be Applied Proportionally.--Reductions 
     under this section shall be applied proportionally to each 
     budget activity, activity group, and subactivity group and to 
     each program, project, and activity within each account.
                Subtitle B--Naval Vessels and Shipyards

     SEC. 1011. IOWA CLASS BATTLESHIPS.

       (a) Return to Naval Vessel Register.--The Secretary of the 
     Navy shall list on the Naval Vessel Register, and maintain on 
     such register, at least two of the Iowa-class battleships 
     that were stricken from the register in February 1995.
       (b) Support.--The Secretary shall retain the existing 
     logistical support necessary for support of at least two 
     operational Iowa class battleships in active service, 
     including technical manuals, repair and replacement parts, 
     and ordnance.
       (c) Selection of Ships.--The Secretary shall select for 
     listing on the Naval Vessel Register under subsection (a) 
     Iowa class battleships that are in good material condition 
     and can provide adequate fire support for an amphibious 
     assault.
       (d) Replacement Fire-Support Capability.--(1) If the 
     Secretary of the Navy makes a certification described in 
     paragraph (2), the requirements of subsections (a) and (b) 
     shall terminate, effective 60 days after the date of the 
     submission of such certification.
       (2) A certification referred to in paragraph (1) is a 
     certification submitted by the Secretary of the Navy in 
     writing to the Committee on Armed Services of the Senate and 
     the 

[[Page H421]]
     Committee on National Security of the House of Representatives that the 
     Navy has within the fleet an operational surface fire-support 
     capability that equals or exceeds the fire-support capability 
     that the Iowa class battleships listed on the Naval Vessel 
     Register pursuant to subsection (a) would, if in active 
     service, be able to provide for Marine Corps amphibious 
     assaults and operations ashore.

     SEC. 1012. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN 
                   COUNTRIES.

       (a) Transfers by Grant.--The Secretary of the Navy is 
     authorized to transfer on a grant basis under section 516 of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) frigates 
     of the Oliver Hazard Perry class to other countries as 
     follows:
       (1) To the Government of Bahrain, the guided missile 
     frigate Jack Williams (FFG 24).
       (2) To the Government of Egypt, the frigate Copeland (FFG 
     25).
       (3) To the Government of Turkey, the frigates Clifton 
     Sprague (FFG 16) and Antrim (FFG 20).
       (b) Transfers by Lease or Sale.--The Secretary of the Navy 
     is authorized to transfer on a lease basis under section 61 
     of the Arms Export Control Act (22 U.S.C. 2796) or on a sale 
     basis under section 21 of the Arms Export Control Act (22 
     U.S.C. 2761) frigates of the Oliver Hazard Perry class to 
     other countries as follows:
       (1) To the Government of Egypt, the frigate Duncan (FFG 
     10).
       (2) To the Government of Oman, the guided missile frigate 
     Mahlon S. Tisdale (FFG 27).
       (3) To the Government of Turkey, the frigate Flatley (FFG 
     21).
       (4) To the Government of the United Arab Emirates, the 
     guided missile frigate Gallery (FFG 26).
       (c) Financing for Transfers by Lease.--Section 23 of the 
     Arms Export Control Act (22 U.S.C. 2763) may be used to 
     provide financing for any transfer by lease under subsection 
     (b) in the same manner as if such transfer were a procurement 
     by the recipient nation of a defense article.
       (d) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by subsection 
     (a) or (b) shall be charged to the recipient.
       (e) Expiration of Authority.--The authority to transfer a 
     vessel under subsection (a) and under subsection (b) shall 
     expire at the end of the two-year period beginning on the 
     date of the enactment of this Act, except that a lease 
     entered into during that period under any provision of 
     subsection (b) may be renewed.
       (f) Repair and Refurbishment in United States Shipyards.--
     The Secretary of the Navy shall require, as a condition of 
     the transfer of a vessel under this section, that the country 
     to which the vessel is transferred have such repair or 
     refurbishment of the vessel as is needed, before the vessel 
     joins the naval forces of that country, performed at a 
     shipyard located in the United States, including a United 
     States Navy shipyard.
       (g) Prohibition on Certain Transfers of Vessels on Grant 
     Basis.--(1) Section 516 of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2321j) is amended by adding at the end the 
     following new subsection:
       ``(g) Prohibition on Certain Transfers of Vessels on Grant 
     Basis.--(1) The President may not transfer on a grant basis 
     under this section a vessel that is in excess of 3,000 tons 
     or that is less than 20 years of age.
       ``(2) If the President determines that it is in the 
     national security interests of the United States to transfer 
     a particular vessel on a grant basis under this section, the 
     President may request that Congress enact legislation 
     exempting the transfer from the prohibition in paragraph 
     (1).''.
       (2) The amendment made by paragraph (1) shall apply with 
     respect to the transfer of a vessel on or after the date of 
     the enactment of this Act (other than a vessel the transfer 
     of which is authorized by subsection (a) or by law before the 
     date of the enactment of this Act).

     SEC. 1013. CONTRACT OPTIONS FOR LMSR VESSELS.

       (a) Findings.--Congress makes the following findings:
       (1) A requirement for the Department of the Navy to acquire 
     19 large, medium-speed, roll-on/roll-off (LMSR) vessels was 
     established by the Secretary of Defense in the Mobility 
     Requirements Study conducted after the Persian Gulf War 
     pursuant to section 909 of the National Defense Authorization 
     Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1623) 
     and was revalidated by the Secretary of Defense in the report 
     entitled ``Mobility Requirements Study Bottom-Up Review 
     Update'', submitted to Congress in April 1995.
       (2) The Strategic Sealift Program is a vital element of the 
     national military strategy calling for the Nation to be able 
     to fight and win two nearly simultaneous major regional 
     contingencies.
       (3) The Secretary of the Navy has entered into contracts 
     with shipyards covering acquisition of a total of 17 such 
     LMSR vessels, of which five are vessel conversions and 12 are 
     new construction vessels. Under those contracts, the 
     Secretary has placed orders for the acquisition of 11 vessels 
     and has options for the acquisition of six more, all of which 
     would be new construction vessels. The options allow the 
     Secretary to place orders for one vessel to be constructed at 
     each of two shipyards for award before December 31, 1995, 
     December 31, 1996, and December 31, 1997, respectively.
       (4) Acquisition of an additional two such LMSR vessels, for 
     a total of 19 vessels (the requirement described in paragraph 
     (1)) would contribute to preservation of the industrial base 
     of United States shipyards capable of building auxiliary and 
     sealift vessels.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of the Navy should plan for, and budget to 
     provide for, the acquisition as soon as possible of a total 
     of 19 large, medium-speed, roll-on/roll-off (LMSR) vessels 
     (the number determined to be required in the Mobility 
     Requirements Study referred to in subsection (a)(1)), rather 
     than only 17 such vessels (the number of vessels under 
     contract as of May 1995).
       (c) Additional New Construction Contract Option.--The 
     Secretary of the Navy should negotiate with each of the two 
     shipyards holding new construction contracts referred to in 
     subsection (a)(3) (Department of the Navy contracts numbered 
     N00024-93-C-2203 and N00024-93-C-2205) for an option under 
     each such contract for construction of one additional such 
     LMSR vessel, with such option to be available to the 
     Secretary for exercise during 1995, 1996, or 1997, subject to 
     the availability of funds authorized and appropriated for 
     such purpose. Nothing in this subsection shall be construed 
     to preclude the Secretary of the Navy from competing the 
     award of the two options between the two shipyards holding 
     new construction contracts referred to in subsection (a)(3).
       (d) Report.--The Secretary of the Navy shall submit to the 
     congressional defense committees, by March 31, 1996, a report 
     stating the intentions of the Secretary regarding the 
     acquisition of options for the construction of two additional 
     LMSR vessels as described in subsection (c).

     SEC. 1014. NATIONAL DEFENSE RESERVE FLEET.

       (a) Availability of National Defense Sealift Fund.--Section 
     2218 of title 10, United States Code, is amended--
       (1) in subsection (c)(1)--
       (A) by striking out ``only for--'' in the matter preceding 
     subparagraph (A) and inserting in lieu thereof ``only for the 
     following purposes:'';
       (B) by capitalizing the first letter of the first word of 
     subparagraphs (A), (B), (C), and (D);
       (C) by striking out the semicolon at the end of 
     subparagraphs (A) and (B) and inserting in lieu thereof a 
     period;
       (D) by striking out ``; and'' at the end of subparagraph 
     (C) and inserting in lieu thereof a period; and
       (E) by adding at the end the following new subparagraph:
       ``(E) Expenses for maintaining the National Defense Reserve 
     Fleet under section 11 of the Merchant Ship Sales Act of 1946 
     (50 U.S.C. App. 1744), and for the costs of acquisition of 
     vessels for, and alteration and conversion of vessels in (or 
     to be placed in), the fleet, but only for vessels built in 
     United States shipyards.''; and
       (2) in subsection (i), by inserting ``(other than 
     subsection (c)(1)(E))'' after ``Nothing in this section''.
       (b) Clarification of Exemption of NDRF Vessels From 
     Retrofit Requirement.--Section 11 of the Merchant Ship Sales 
     Act of 1946 (50 U.S.C. App. 1744) is amended by adding at the 
     end the following new subsection:
       ``(e) Vessels in the National Defense Reserve Fleet are 
     exempt from the provisions of section 3703a of title 46, 
     United States Code.''.
       (c) Authority To Use National Defense Sealift Fund To 
     Convert Two Vessels.--Of the amount authorized to be 
     appropriated in section 302 for fiscal year 1996 for the 
     National Defense Sealift Fund under section 2218 of title 10, 
     United States Code, not more than $20,000,000 shall be 
     available for conversion work on the following two roll-on/
     roll-off vessels, which were acquired by the Maritime 
     Administration during fiscal year 1995:
       (1) M/V Cape Knox (ON-1036323).
       (2) M/V Cape Kennedy (ON-1036324).

     SEC. 1015. NAVAL SALVAGE FACILITIES.

       Chapter 637 of title 10, United States Code, is amended to 
     read as follows:

                   ``CHAPTER 637--SALVAGE FACILITIES

``Sec.
``7361. Authority to provide for necessary salvage facilities.
``7362. Acquisition and transfer of vessels and equipment.
``7363. Settlement of claims.
``7364. Disposition of receipts.

     ``Sec. 7361. Authority to provide for necessary salvage 
       facilities

       ``(a) Authority.--The Secretary of the Navy may provide, by 
     contract or otherwise, necessary salvage facilities for 
     public and private vessels.
       ``(b) Coordination With Secretary of Transportation.--The 
     Secretary shall submit to the Secretary of Transportation for 
     comment each proposed contract for salvage facilities that 
     affects the interests of the Department of Transportation.
       ``(c) Limitation.--The Secretary of the Navy may enter into 
     a term contract under subsection (a) only if the Secretary 
     determines that available commercial salvage facilities are 
     inadequate to meet the requirements of national defense.
       ``(d) Public Notice.--The Secretary may not enter into a 
     contract under subsection (a) until the Secretary has 
     provided public notice of the intent to enter into such a 
     contract.
     
[[Page H422]]


     ``Sec. 7362. Acquisition and transfer of vessels and 
       equipment

       ``(a) Authority.--The Secretary of the Navy may acquire or 
     transfer for operation by private salvage companies such 
     vessels and equipment as the Secretary considers necessary.
       ``(b) Agreement on Use.--Before any salvage vessel or 
     salvage gear is transferred by the Secretary to a private 
     party, the private party must agree in writing with the 
     Secretary that the vessel or gear will be used to support 
     organized offshore salvage facilities for a period of as many 
     years as the Secretary considers appropriate.
       ``(c) Reference to Authority To Advance Funds for Immediate 
     Salvage Operations.--For authority for the Secretary of the 
     Navy to advance to private salvage companies such funds as 
     the Secretary considers necessary to provide for the 
     immediate financing of salvage operations, see section 
     2307(g)(2) of this title.

     ``Sec. 7363. Settlement of claims

       ``The Secretary of the Navy may settle any claim by the 
     United States for salvage services rendered by the Department 
     of the Navy and may receive payment of any such claim.

     ``Sec. 7364. Disposition of receipts

       ``Amounts received under this chapter shall be credited to 
     appropriations for maintaining naval salvage facilities. 
     However, any amount received under this chapter in any fiscal 
     year in excess of naval salvage costs incurred by the Navy 
     during that fiscal year shall be deposited into the general 
     fund of the Treasury.''.

     SEC. 1016. VESSELS SUBJECT TO REPAIR UNDER PHASED MAINTENANCE 
                   CONTRACTS.

       (a) In General.--The Secretary of the Navy shall ensure 
     that any vessel that is covered by the contract referred to 
     in subsection (b) remains covered by that contract, 
     regardless of the operating command to which the vessel is 
     subsequently assigned, unless the vessel is taken out of 
     service for the Department of the Navy.
       (b) Covered Contract.--The contract referred to in 
     subsection (a) is the contract entered into before the date 
     of the enactment of this Act for the phased maintenance of AE 
     class ships.

     SEC. 1017. CLARIFICATION OF REQUIREMENTS RELATING TO REPAIRS 
                   OF VESSELS.

       Section 7310(a) of title 10, United States Code, is amended 
     by inserting ``or Guam'' after ``the United States'' the 
     second place it appears.

     SEC. 1018. SENSE OF CONGRESS CONCERNING NAMING OF AMPHIBIOUS 
                   SHIPS.

       It is the sense of Congress that the Secretary of the 
     Navy--
       (1) should name the vessel to be designated LHD-7 as the 
     U.S.S. Iwo Jima; and
       (2) should name the vessel to be designated LPD-17, and 
     each subsequent ship of the LPD-17 class, after a Marine 
     Corps battle or a member of the Marine Corps.

     SEC. 1019. SENSE OF CONGRESS CONCERNING NAMING OF NAVAL 
                   VESSEL.

       It is the sense of Congress that the Secretary of the Navy 
     should name an appropriate ship of the United States Navy the 
     U.S.S. Joseph Vittori, in honor of Marine Corporal Joseph 
     Vittori (1929-1951) of Beverly, Massachusetts, who was 
     posthumously awarded the Medal of Honor for actions against 
     the enemy in Korea on September 15-16, 1951.

     SEC. 1020. TRANSFER OF RIVERINE PATROL CRAFT.

       (a) Authority To Transfer Vessel.--Notwithstanding 
     subsections (a) and (d) of section 7306 of title 10, United 
     States Code, but subject to subsections (b) and (c) of that 
     section, the Secretary of the Navy may transfer a vessel 
     described in subsection (b) to Tidewater Community College, 
     Portsmouth, Virginia, for scientific and educational 
     purposes.
       (b) Vessel.--The authority under subsection (a) applies in 
     the case of a riverine patrol craft of the U.S.S. Swift 
     class.
       (c) Limitation.--The transfer authorized by subsection (a) 
     may be made only if the Secretary determines that the vessel 
     to be transferred is of no further use to the United States 
     for national security purposes.
       (d) Terms and Conditions.--The Secretary may require such 
     terms and conditions in connection with the transfer 
     authorized by this section as the Secretary considers 
     appropriate.
                  Subtitle C--Counter-Drug Activities

     SEC. 1021. REVISION AND CLARIFICATION OF AUTHORITY FOR 
                   FEDERAL SUPPORT OF DRUG INTERDICTION AND 
                   COUNTER-DRUG ACTIVITIES OF THE NATIONAL GUARD.

       (a) Funding Assistance Authorized.--Subsection (a) of 
     section 112 of title 32, United States Code, is amended to 
     read as follows:
       ``(a) Funding Assistance.--The Secretary of Defense may 
     provide funds to the Governor of a State who submits to the 
     Secretary a State drug interdiction and counter-drug 
     activities plan satisfying the requirements of subsection 
     (c). Such funds shall be used for--
       ``(1) the pay, allowances, clothing, subsistence, 
     gratuities, travel, and related expenses, as authorized by 
     State law, of personnel of the National Guard of that State 
     used, while not in Federal service, for the purpose of drug 
     interdiction and counter-drug activities;
       ``(2) the operation and maintenance of the equipment and 
     facilities of the National Guard of that State used for the 
     purpose of drug interdiction and counter-drug activities; and
       ``(3) the procurement of services and leasing of equipment 
     for the National Guard of that State used for the purpose of 
     drug interdiction and counter-drug activities.''.
       (b) Reorganization of Section.--Such section is further 
     amended--
       (1) by redesignating subsection (f) as subsection (h);
       (2) by redesignating subsection (d) as subsection (g) and 
     transferring that subsection to appear before subsection (h), 
     as redesignated by paragraph (1); and
       (3) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively.
       (c) State Drug Interdiction and Counter-drug Activities 
     Plan.--Subsection (c) of such section, as redesignated by 
     subsection (b)(3), is amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``A plan referred to in subsection (a)'' and inserting in 
     lieu thereof ``A State drug interdiction and counter-drug 
     activities plan'';
       (2) by striking out ``and'' at the end of paragraph (2); 
     and
       (3) in paragraph (3)--
       (A) by striking out ``annual training'' and inserting in 
     lieu thereof ``training'';
       (B) by striking out the period at the end and inserting in 
     lieu thereof a semicolon; and
       (C) by adding at the end the following new paragraphs:
       ``(4) include a certification by the Attorney General of 
     the State (or, in the case of a State with no position of 
     Attorney General, a civilian official of the State equivalent 
     to a State attorney general) that the use of the National 
     Guard of the State for the activities proposed under the plan 
     is authorized by, and is consistent with, State law; and
       ``(5) certify that the Governor of the State or a civilian 
     law enforcement official of the State designated by the 
     Governor has determined that any activities included in the 
     plan that are carried out in conjunction with Federal law 
     enforcement agencies serve a State law enforcement 
     purpose.''.
       (d) Examination of State Plan.--Subsection (d) of such 
     section, as redesignated by subsection (b)(3), is amended--
       (1) in paragraph (1)--
       (A) by striking out ``subsection (b)'' and inserting in 
     lieu thereof ``subsection (c)''; and
       (B) by inserting after ``Before funds are provided to the 
     Governor of a State under this section'' the following: ``and 
     before members of the National Guard of that State are 
     ordered to full-time National Guard duty as authorized in 
     subsection (b)''; and
       (2) in paragraph (3)--
       (A) in subparagraph (A), by striking out ``subsection (b)'' 
     and inserting in lieu thereof ``subsection (c)''; and
       (B) by striking out subparagraph (B) and inserting in lieu 
     thereof the following:
       ``(B) pursuant to the plan submitted for a previous fiscal 
     year, funds were provided to the State in accordance with 
     subsection (a) or personnel of the National Guard of the 
     State were ordered to perform full-time National Guard duty 
     in accordance with subsection (b).''.
       (e) Use of Personnel Performing Full-Time National Guard 
     Duty.--Such section is further amended by inserting after 
     subsection (a) the following new subsection (b):
       ``(b) Use of Personnel Performing Full-Time National Guard 
     Duty.--Under regulations prescribed by the Secretary of 
     Defense, personnel of the National Guard of a State may, in 
     accordance with the State drug interdiction and counter-drug 
     activities plan referred to in subsection (c), be ordered to 
     perform full-time National Guard duty under section 502(f) of 
     this title for the purpose of carrying out drug interdiction 
     and counter-drug activities.''.
       (f) End Strength Limitation.--Such section is further 
     amended by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) End Strength Limitation.--(1) Except as provided in 
     paragraph (2), at the end of a fiscal year there may not be 
     more than 4000 members of the National Guard--
       ``(A) on full-time National Guard duty under section 502(f) 
     of this title to perform drug interdiction or counter-drug 
     activities pursuant to an order to duty for a period of more 
     than 180 days; or
       ``(B) on duty under State authority to perform drug 
     interdiction or counter-drug activities pursuant to an order 
     to duty for a period of more than 180 days with State pay and 
     allowances being reimbursed with funds provided under 
     subsection (a)(1).
       ``(2) The Secretary of Defense may increase the end 
     strength authorized under paragraph (1) by not more than 20 
     percent for any fiscal year if the Secretary determines that 
     such an increase is necessary in the national security 
     interests of the United States.''.
       (g) Definitions.--Subsection (h) of such section, as 
     redesignated by subsection (b)(1), is amended by striking out 
     paragraph (1) and inserting in lieu thereof the following:
       ``(1) The term `drug interdiction and counter-drug 
     activities', with respect to the National Guard of a State, 
     means the use of National Guard personnel in drug 
     interdiction and counter-drug law enforcement activities 
     authorized by the law of the State and requested by the 
     Governor of the State.''.
       (h) Technical Amendments.--Subsection (e) of such section 
     is amended--
       (1) in paragraph (1), by striking out ``sections 517 and 
     524'' and inserting in lieu thereof ``sections 12011 and 
     12012''; and
     
[[Page H423]]

       (2) in paragraph (2), by striking out ``the Committees on 
     Armed Services of the Senate and House of Representatives'' 
     and inserting in lieu thereof ``the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives''.
                     Subtitle D--Civilian Personnel

     SEC. 1031. MANAGEMENT OF DEPARTMENT OF DEFENSE CIVILIAN 
                   PERSONNEL.

       Section 129 of title 10, United States Code, is amended--
       (1) in subsection (a)--
       (A) by striking out ``man-year constraint or limitation'' 
     and inserting in lieu thereof ``constraint or limitation in 
     terms of man years, end strength, full-time equivalent 
     positions, or maximum number of employees''; and
       (B) by adding at the end the following new sentence: ``The 
     Secretary of Defense and the Secretaries of the military 
     departments may not be required to make a reduction in the 
     number of full-time equivalent positions in the Department of 
     Defense unless such reduction is necessary due to a reduction 
     in funds available to the Department or is required under a 
     law that is enacted after the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 1996 and 
     that refers specifically to this subsection.'';
       (2) in subsection (b)(2), by striking out ``any end-
     strength'' and inserting in lieu thereof ``any constraint 
     or limitation in terms of man years, end strength, full-
     time equivalent positions, or maximum number of 
     employees''; and
       (3) by adding at the end the following new subsection:
       ``(d) With respect to each budget activity within an 
     appropriation for a fiscal year for operations and 
     maintenance, the Secretary of Defense shall ensure that there 
     are employed during that fiscal year employees in the number 
     and with the combination of skills and qualifications that 
     are necessary to carry out the functions within that budget 
     activity for which funds are provided for that fiscal 
     year.''.

     SEC. 1032. CONVERSION OF MILITARY POSITIONS TO CIVILIAN 
                   POSITIONS.

       (a) Conversion Requirement.--(1) By September 30, 1997, the 
     Secretary of Defense shall convert at least 10,000 military 
     positions to civilian positions.
       (2) At least 3,000 of the military positions converted to 
     satisfy the requirement of paragraph (1) shall be converted 
     to civilian positions not later than September 30, 1996.
       (3) In this subsection:
       (A) The term ``military position'' means a position that, 
     as of the date of the enactment of this Act, is authorized to 
     be filled by a member of the Armed Forces on active duty.
       (B) The term ``civilian position'' means a position that is 
     required to be filled by a civilian employee of the 
     Department of Defense.
       (b) Implementation Plan.--Not later than March 31, 1996, 
     the Secretary of Defense shall submit to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a plan for the 
     implementation of subsection (a).

     SEC. 1033. ELIMINATION OF 120-DAY LIMITATION ON DETAILS OF 
                   CERTAIN EMPLOYEES.

       (a) Elimination of Limitation.--Subsection (b) of section 
     3341 of title 5, United States Code, is amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following:
       ``(2) The 120-day limitation in paragraph (1) for details 
     and renewals of details does not apply to the Department of 
     Defense in the case of a detail--
       ``(A) made in connection with the closure or realignment of 
     a military installation pursuant to a base closure law or an 
     organizational restructuring of the Department as part of a 
     reduction in the size of the armed forces or the civilian 
     workforce of the Department; and
       ``(B) in which the position to which the employee is 
     detailed is eliminated on or before the date of the closure, 
     realignment, or restructuring.
       ``(c) For purposes of this section--
       ``(1) the term `base closure law' means--
       ``(A) section 2687 of title 10;
       ``(B) title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (10 U.S.C. 2687 note); and
       ``(C) the Defense Base Closure and Realignment Act of 1990 
     (10 U.S.C. 2687 note); and
       ``(2) the term `military installation'--
       ``(A) in the case of an installation covered by section 
     2687 of title 10, has the meaning given such term in 
     subsection (e)(1) of such section;
       ``(B) in the case of an installation covered by the Act 
     referred to in subparagraph (B) of paragraph (1), has the 
     meaning given such term in section 209(6) of such Act; and
       ``(C) in the case of an installation covered by the Act 
     referred to in subparagraph (C) of that paragraph, has the 
     meaning given such term in section 2910(4) of such Act.''.
       (b) Applicability.--The amendments made by subsection (a) 
     apply to details made before the date of the enactment of 
     this Act but still in effect on that date and details made on 
     or after that date.

     SEC. 1034. AUTHORITY FOR CIVILIAN EMPLOYEES OF DEPARTMENT OF 
                   DEFENSE TO PARTICIPATE VOLUNTARILY IN 
                   REDUCTIONS IN FORCE.

       Section 3502 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(f)(1) The Secretary of Defense or the Secretary of a 
     military department may--
       ``(A) release in a reduction in force an employee who 
     volunteers for the release even though the employee is not 
     otherwise subject to release in the reduction in force under 
     the criteria applicable under the other provisions of this 
     section; and
       ``(B) for each employee voluntarily released in the 
     reduction in force under subparagraph (A), retain an employee 
     in a similar position who would otherwise be released in the 
     reduction in force under such criteria.
       ``(2) A voluntary release of an employee in a reduction in 
     force pursuant to paragraph (1) shall be treated as an 
     involuntary release in the reduction in force.
       ``(3) An employee with critical knowledge and skills (as 
     defined by the Secretary concerned) may not participate in a 
     voluntary release under paragraph (1) if the Secretary 
     concerned determines that such participation would impair the 
     performance of the mission of the Department of Defense or 
     the military department concerned.
       ``(4) The regulations prescribed under this section shall 
     incorporate the authority provided in this subsection.
       ``(5) The authority under paragraph (1) may not be 
     exercised after September 30, 1996.''.

     SEC. 1035. AUTHORITY TO PAY SEVERANCE PAYMENTS IN LUMP SUMS.

       Section 5595 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(i)(1) In the case of an employee of the Department of 
     Defense who is entitled to severance pay under this section, 
     the Secretary of Defense or the Secretary of the military 
     department concerned may, upon application by the employee, 
     pay the total amount of the severance pay to the employee in 
     one lump sum.
       ``(2)(A) If an employee paid severance pay in a lump sum 
     under this subsection is reemployed by the Government of the 
     United States or the government of the District of Columbia 
     at such time that, had the employee been paid severance pay 
     in regular pay periods under subsection (b), the payments of 
     such pay would have been discontinued under subsection (d) 
     upon such reemployment, the employee shall repay to the 
     Department of Defense (for the military department that 
     formerly employed the employee, if applicable) an amount 
     equal to the amount of severance pay to which the employee 
     was entitled under this section that would not have been paid 
     to the employee under subsection (d) by reason of such 
     reemployment.
       ``(B) The period of service represented by an amount of 
     severance pay repaid by an employee under subparagraph (A) 
     shall be considered service for which severance pay has not 
     been received by the employee under this section.
       ``(C) Amounts repaid to an agency under this paragraph 
     shall be credited to the appropriation available for the pay 
     of employees of the agency for the fiscal year in which 
     received. Amounts so credited shall be merged with, and shall 
     be available for the same purposes and the same period as, 
     the other funds in that appropriation.
       ``(3) If an employee fails to repay to an agency an amount 
     required to be repaid under paragraph (2)(A), that amount is 
     recoverable from the employee as a debt due the United 
     States.
       ``(4) This subsection applies with respect to severance pay 
     payable under this section for separations taking effect on 
     or after the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 1996 and before October 1, 
     1999.''.

     SEC. 1036. CONTINUED HEALTH INSURANCE COVERAGE.

       Section 8905a(d)(4) of title 5, United States Code, is 
     amended--
       (1) in subparagraph (A), by inserting ``, or a voluntary 
     separation from a surplus position,'' after ``an involuntary 
     separation from a position''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) For the purpose of this paragraph, `surplus position' 
     means a position which is identified in pre-reduction-in-
     force planning as no longer required, and which is expected 
     to be eliminated under formal reduction-in-force 
     procedures.''.

     SEC. 1037. REVISION OF AUTHORITY FOR APPOINTMENTS OF 
                   INVOLUNTARILY SEPARATED MILITARY RESERVE 
                   TECHNICIANS.

       (a) Revision of Authority.--Section 3329 of title 5, United 
     States Code, as added by section 544 of the National Defense 
     Authorization Act for Fiscal Year 1993 (Public Law 102-484; 
     106 Stat. 2415), is amended--
       (1) in subsection (b), by striking out ``be offered'' and 
     inserting in lieu thereof ``be provided placement 
     consideration in a position described in subsection (c) 
     through a priority placement program of the Department of 
     Defense''; and
       (2) by striking out subsection (c) and inserting in lieu 
     thereof the following new subsection (c):
       ``(c)(1) The position for which placement consideration 
     shall be provided to a former military technician under 
     subsection (b) shall be a position--
       ``(A) in either the competitive service or the excepted 
     service;
       ``(B) within the Department of Defense; and
       ``(C) in which the person is qualified to serve, taking 
     into consideration whether the 

[[Page H424]]
     employee in that position is required to be a member of a reserve 
     component of the armed forces as a condition of employment.
       ``(2) To the maximum extent practicable, the position shall 
     also be in a pay grade or other pay classification sufficient 
     to ensure that the rate of basic pay of the former military 
     technician, upon appointment to the position, is not less 
     than the rate of basic pay last received by the former 
     military technician for technician service before 
     separation.''.
       (b) Technical and Clerical Amendments.--(1) The section 
     3329 of title 5, United States Code, that was added by 
     section 4431 of the National Defense Authorization Act for 
     Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2719) is 
     redesignated as section 3330 of such title.
       (2) The table of sections at the beginning of chapter 33 of 
     such title is amended by striking out the item relating to 
     section 3329, as added by section 4431(b) of such Act (106 
     Stat. 2720), and inserting in lieu thereof the following new 
     item:

``3330. Government-wide list of vacant positions.''.

     SEC. 1038. WEARING OF UNIFORM BY NATIONAL GUARD TECHNICIANS.

       (a) Requirement.--Section 709(b) of title 32, United States 
     Code, is amended to read as follows:
       ``(b) Except as prescribed by the Secretary concerned, a 
     technician employed under subsection (a) shall, while so 
     employed--
       ``(1) be a member of the National Guard;
       ``(2) hold the military grade specified by the Secretary 
     concerned for that position; and
       ``(3) wear the uniform appropriate for the member's grade 
     and component of the armed forces while performing duties as 
     a technician.''.
       (b) Uniform Allowances for Officers.--Section 417 of title 
     37, United States Code, is amended by adding at the end the 
     following:
       ``(d)(1) For purposes of sections 415 and 416 of this 
     title, a period for which an officer of an armed force, while 
     employed as a National Guard technician, is required to wear 
     a uniform under section 709(b) of title 32 shall be treated 
     as a period of active duty (other than for training).
       ``(2) A uniform allowance may not be paid, and uniforms may 
     not be furnished, to an officer under section 1593 of title 
     10 or section 5901 of title 5 for a period of 
     employment referred to in paragraph (1) for which an 
     officer is paid a uniform allowance under section 415 or 
     416 of this title.''.
       (c) Clothing or Allowances for Enlisted Members.--Section 
     418 of title 37, United States Code, is amended--
       (1) by inserting ``(a)'' before ``The President''; and
       (2) by adding at the end the following:
       ``(b) In determining the quantity and kind of clothing or 
     allowances to be furnished pursuant to regulations prescribed 
     under this section to persons employed as National Guard 
     technicians under section 709 of title 32, the President 
     shall take into account the requirement under subsection (b) 
     of such section for such persons to wear a uniform.
       ``(c) A uniform allowance may not be paid, and uniforms may 
     not be furnished, under section 1593 of title 10 or section 
     5901 of title 5 to a person referred to in subsection (b) for 
     a period of employment referred to in that subsection for 
     which a uniform allowance is paid under section 415 or 416 of 
     this title.''.

     SEC. 1039. MILITARY LEAVE FOR MILITARY RESERVE TECHNICIANS 
                   FOR CERTAIN DUTY OVERSEAS.

       Section 6323 of title 5, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d)(1) A military reserve technician described in section 
     8401(30) is entitled at such person's request to leave 
     without loss of, or reduction in, pay, leave to which such 
     person is otherwise entitled, credit for time or service, or 
     performance or efficiency rating for each day, not to exceed 
     44 workdays in a calendar year, in which such person is on 
     active duty without pay, as authorized pursuant to section 
     12315 of title 10, under section 12301(b) or 12301(d) of 
     title 10 (other than active duty during a war or national 
     emergency declared by the President or Congress) for 
     participation in noncombat operations outside the United 
     States, its territories and possessions.
       ``(2) An employee who requests annual leave or compensatory 
     time to which the employee is otherwise entitled, for a 
     period during which the employee would have been entitled 
     upon request to leave under this subsection, may be granted 
     such annual leave or compensatory time without regard to this 
     section or section 5519.''.

     SEC. 1040. PERSONNEL ACTIONS INVOLVING EMPLOYEES OF 
                   NONAPPROPRIATED FUND INSTRUMENTALITIES.

       (a) Clarification of Definition of Nonappropriated Fund 
     Instrumentality Employee.--Subsection (a)(1) of section 1587 
     of title 10, United States Code, is amended by adding at the 
     end the following new sentence: ``Such term includes a 
     civilian employee of a support organization within the 
     Department of Defense or a military department, such as the 
     Defense Finance and Accounting Service, who is paid from 
     nonappropriated funds on account of the nature of the 
     employee's duties.''.
       (b) Direct Reporting of Violations.--Subsection (e) of such 
     section is amended in the second sentence by inserting before 
     the period the following: ``and to permit the reporting of 
     alleged violations of subsection (b) directly to the 
     Inspector General of the Department of Defense''.
       (c) Technical Amendment.--Subsection (a)(1) of such section 
     is further amended by striking out ``Navy Resale and Services 
     Support Office'' and inserting in lieu thereof ``Navy 
     Exchange Service Command''.
       (d) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 1587. Employees of nonappropriated fund 
       instrumentalities: reprisals''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 81 of such title is 
     amended to read as follows:

``1587. Employees of nonappropriated fund instrumentalities: 
              reprisals.''.

     SEC. 1041. COVERAGE OF NONAPPROPRIATED FUND EMPLOYEES UNDER 
                   AUTHORITY FOR FLEXIBLE AND COMPRESSED WORK 
                   SCHEDULES.

       Paragraph (2) of section 6121 of title 5, United States 
     Code, is amended to read as follows:
       ``(2) `employee' has the meaning given the term in 
     subsection (a) of section 2105 of this title, except that 
     such term also includes an employee described in subsection 
     (c) of that section;''.

     SEC. 1042. LIMITATION ON PROVISION OF OVERSEAS LIVING 
                   QUARTERS ALLOWANCES FOR NONAPPROPRIATED FUND 
                   INSTRUMENTALITY EMPLOYEES.

       (a) Conforming Allowance to Allowances for Other Civilian 
     Employees.--Subject to subsection (b), an overseas living 
     quarters allowance paid from nonappropriated funds and 
     provided to a nonappropriated fund instrumentality employee 
     after the date of the enactment of this Act may not exceed 
     the amount of a quarters allowance provided under subchapter 
     III of chapter 59 of title 5 to a similarly situated civilian 
     employee of the Department of Defense paid from appropriated 
     funds.
       (b) Application to Certain Current Employees.--In the case 
     of a nonappropriated fund instrumentality employee who, as of 
     the date of the enactment of this Act, receives an overseas 
     living quarters allowance under any other authority, 
     subsection (a) shall apply to such employee only after the 
     earlier of--
       (1) September 30, 1997; or
       (2) the date on which the employee otherwise ceases to be 
     eligible for such an allowance under such other authority.
       (c) Nonappropriated Fund Instrumentality Employee 
     Defined.--For purposes of this section, the term 
     ``nonappropriated fund instrumentality employee'' has the 
     meaning given such term in section 1587(a)(1) of title 10, 
     United States Code.

     SEC. 1043. ELECTIONS RELATING TO RETIREMENT COVERAGE.

       (a) In General.--
       (1) Civil service retirement system.--Section 8347(q) of 
     title 5, United States Code, is amended--
       (A) in paragraph (1)--
       (i) by striking ``of the Department of Defense or the Coast 
     Guard'' in the matter before subparagraph (A); and
       (ii) by striking ``3 days'' and inserting ``1 year''; and
       (B) in paragraph (2)(C)--
       (i) by striking ``3 days'' and inserting ``1 year''; and
       (ii) by striking ``in the Department of Defense or the 
     Coast Guard, respectively,''.
       (2) Federal employees' retirement system.--Section 8461(n) 
     of title 5, United States Code, is amended--
       (A) in paragraph (1)--
       (i) by striking ``of the Department of Defense or the Coast 
     Guard'' in the matter before subparagraph (A); and
       (ii) by striking ``3 days'' and inserting ``1 year''; and
       (B) in paragraph (2)(C)--
       (i) by striking ``3 days'' and inserting ``1 year''; and
       (ii) by striking ``in the Department of Defense or the 
     Coast Guard, respectively,''.
       (b) Regulations.--Not later than 6 months after the date of 
     the enactment of this Act, the Office of Personnel Management 
     (and each of the other administrative authorities, within the 
     meaning of subsection (c)(2)(C)(iii)) shall prescribe any 
     regulations (or make any modifications in existing 
     regulations) necessary to carry out this section and the 
     amendments made by this section, including regulations to 
     provide for the notification of individuals who may be 
     affected by the enactment of this section. All regulations 
     (and modifications to regulations) under the preceding 
     sentence shall take effect on the same date.
       (c) Applicability; Related Provisions.--
       (1) Prospective rules.--Except as otherwise provided in 
     this subsection, the amendments made by this section shall 
     apply with respect to moves occurring on or after the 
     effective date of the regulations under subsection (b). Moves 
     occurring on or after the date of the enactment of this Act 
     and before the effective date of such regulations shall be 
     subject to applicable provisions of title 5, United States 
     Code, disregarding the amendments made by this section, 
     except that any individual making an election pursuant to 
     this sentence shall be ineligible to make an election 
     otherwise allowable under paragraph (2).
       (2) Retroactive rules.--
       (A) In general.--The regulations under subsection (b) shall 
     include provisions for the application of sections 8347(q) 
     and 8461(n) 

[[Page H425]]
     of title 5, United States Code, as amended by this section, with 
     respect to any individual who, at any time after December 31, 
     1965, and before the effective date of such regulations, 
     moved between positions in circumstances that would have 
     qualified such individual to make an election under the 
     provisions of such section 8347(q) or 8461(n), as so amended, 
     if such provisions had then been in effect.
       (B) Deadline; related provisions.--An election pursuant to 
     this paragraph--
       (i) shall be made within 1 year after the effective date of 
     the regulations under subsection (b), and
       (ii) shall have the same force and effect as if it had been 
     timely made at the time of the move,

     except that no such election may be made by any individual--
       (I) who has previously made, or had an opportunity to make, 
     an election under section 8347(q) or 8461(n) of title 5, 
     United States Code (as in effect before being amended by this 
     section); however, this subclause shall not be considered to 
     render an individual ineligible, based on an opportunity 
     arising out of a move occurring during the period described 
     in the second sentence of paragraph (1), if no election has 
     in fact been made by such individual based on such move;
       (II) who has not, since the move on which eligibility for 
     the election is based, remained continuously subject 
     (disregarding any break in service of less than 3 days) to 
     CSRS or FERS or both seriatim (if the move was from a NAFI 
     position) or any retirement system (or 2 or more such systems 
     seriatim) established for employees described in section 
     2105(c) of such title (if the move was to a NAFI position); 
     or
       (III) if such election would be based on a move to the 
     Civil Service Retirement System from a retirement system 
     established for employees described in section 2105(c) of 
     such title.
       (C) Transfers of contributions.--
       (i) In general.--If an individual makes an election under 
     this paragraph to be transferred back to a retirement system 
     in which such individual previously participated (in this 
     section referred to as the ``previous system''), all 
     individual contributions (including interest) and Government 
     contributions to the retirement system in which such 
     individual is then currently participating (in this section 
     referred to as the ``current system''), excluding those made 
     to the Thrift Savings Plan or any other defined contribution 
     plan, which are attributable to periods of service performed 
     since the move on which the election is based, shall be 
     paid to the fund, account, or other repository for 
     contributions made under the previous system. For purposes 
     of this section, the term ``current system'' shall be 
     considered also to include any retirement system (besides 
     the one in which the individual is participating at the 
     time of making the election) in which such individual 
     previously participated since the move on which the 
     election is based.
       (ii) Condition subsequent relating to repayment of lump-sum 
     credit.--In the case of an individual who has received such 
     individual's lump-sum credit (within the meaning of section 
     8401(19) of title 5, United States Code, or a similar 
     payment) from such individual's previous system, the payment 
     described in clause (i) shall not be made (and the election 
     to which it relates shall be ineffective) unless such lump-
     sum credit is redeposited or otherwise paid at such time and 
     in such manner as shall be required under applicable 
     regulations. Regulations to carry out this clause shall 
     include provisions for the computation of interest 
     (consistent with section 8334(e) (2) and (3) of title 5, 
     United States Code), if no provisions for such computation 
     otherwise exist.
       (iii) Condition subsequent relating to deficiency in 
     payments relative to amounts needed to ensure that benefits 
     are fully funded.--

       (I) In general.--Except as provided in subclause (II), the 
     payment described in clause (i) shall not be made (and the 
     election to which it relates shall be ineffective) if the 
     actuarial present value of the future benefits that would be 
     payable under the previous system with respect to service 
     performed by such individual after the move on which the 
     election under this paragraph is based and before the 
     effective date of the election, exceeds the total amounts 
     required to be transferred to the previous system under the 
     preceding provisions of this subparagraph with respect to 
     such service, as determined by the authority administering 
     such previous system (in this section referred to as the 
     ``administrative authority'').
       (II) Payment of deficiency.--A determination of a 
     deficiency under this clause shall not render an election 
     ineffective if the individual pays or arranges to pay, at a 
     time and in a manner satisfactory to such administrative 
     authority, the full amount of the deficiency described in 
     subclause (I).

       (D) Alternative election for an individual then 
     participating in fers.--
       (i) Applicability.--This subparagraph applies with respect 
     to any individual who--

       (I) is then currently participating in FERS; and
       (II) would then otherwise be eligible to make an election 
     under subparagraphs (A) through (C) of this paragraph, 
     determined disregarding the matter in subclause (I) of 
     subparagraph (B) before the first semicolon therein.

       (ii) Election.--An individual described in clause (i) may, 
     instead of making an election for which such individual is 
     otherwise eligible under this paragraph, elect to have all 
     prior qualifying NAFI service of such individual treated as 
     creditable service for purposes of any annuity under FERS 
     payable out of the Civil Service Retirement and Disability 
     Fund.
       (iii) Qualifying nafi service.--For purposes of this 
     subparagraph, the term ``qualifying NAFI service'' means any 
     service which, but for this subparagraph, would be creditable 
     for purposes of any retirement system established for 
     employees described in section 2105(c) of title 5, United 
     States Code.
       (iv) Service ceases to be creditable for nafi retirement 
     system purposes.--Any qualifying NAFI service that becomes 
     creditable for FERS purposes by virtue of an election made 
     under this subparagraph shall not be creditable for purposes 
     of any retirement system referred to in clause (iii).
       (v) Conditions.--An election under this subparagraph shall 
     be subject to requirements, similar to those set forth in 
     subparagraph (C), to ensure that--

       (I) appropriate transfers of individual and Government 
     contributions are made to the Civil Service Retirement and 
     Disability Fund; and
       (II) the actuarial present value of future benefits under 
     FERS attributable to service made creditable by such election 
     is fully funded.

       (E) Alternative election for an individual then 
     participating in a nafi retirement system.--
       (i) Applicability.--This subparagraph applies with respect 
     to any individual who--

       (I) is then currently participating in any retirement 
     system established for employees described in section 2105(c) 
     of title 5, United States Code (in this subparagraph referred 
     to as a ``NAFI retirement system''); and
       (II) would then otherwise be eligible to make an election 
     under subparagraphs (A) through (C) of this paragraph 
     (determined disregarding the matter in subclause (I) of 
     subparagraph (B) before the first semicolon therein) based on 
     a move from FERS.

       (ii) Election.--An individual described in clause (i) may, 
     instead of making an election for which such individual is 
     otherwise eligible under this paragraph, elect to have all 
     prior qualifying FERS service of such individual treated as 
     creditable service for purposes of determining eligibility 
     for benefits under a NAFI retirement system, but not for 
     purposes of computing the amount of any such benefits except 
     as provided in clause (v)(II).
       (iii) Qualifying fers service.--For purposes of this 
     subparagraph, the term ``qualifying FERS service'' means any 
     service which, but for this subparagraph, would be creditable 
     for purposes of the Federal Employees' Retirement System.
       (iv) Service ceases to be creditable for purposes of 
     fers.--Any qualifying FERS service that becomes creditable 
     for NAFI purposes by virtue of an election made under this 
     subparagraph shall not be creditable for purposes of the 
     Federal Employees' Retirement System.
       (v) Funding requirements.--

       (I) In general.--Except as provided in subclause (II), 
     nothing in this section or in any other provision of law or 
     any other authority shall be considered to require any 
     payment or transfer of monies in order for an election under 
     this subparagraph to be effective.
       (II) Contribution required only if individual elects to 
     have service made creditable for computation purposes as 
     well.--Under regulations prescribed by the appropriate 
     administrative authority, an individual making an election 
     under this subparagraph may further elect to have the 
     qualifying FERS service made creditable for 
     computation purposes under a NAFI retirement system, but 
     only if the individual pays or arranges to pay, at a time 
     and in a manner satisfactory to such administrative 
     authority, the amount necessary to fully fund the 
     actuarial present value of future benefits under the NAFI 
     retirement system attributable to the qualifying FERS 
     service.
       (3) Information.--The regulations under subsection (b) 
     shall include provisions under which any individual--
       (A) shall, upon request, be provided information or 
     assistance in determining whether such individual is eligible 
     to make an election under paragraph (2) and, if so, the exact 
     amount of any payment which would be required of such 
     individual in connection with any such election; and
       (B) may seek any other information or assistance relating 
     to any such election.
       (d) Creditability of NAFI Service for RIF Purposes.--
       (1) In general.--Clause (ii) of section 3502(a)(C) of title 
     5, United States Code, is amended by striking ``January 1, 
     1987'' and inserting ``January 1, 1966''.
       (2) Effective date.--Notwithstanding any provision of 
     subsection (c), the amendment made by paragraph (1) shall--
       (A) take effect on the date of the enactment of this Act; 
     and
       (B) apply with respect to any reduction in force carried 
     out on or after such date.

     SEC. 1044. EXTENSION OF TEMPORARY AUTHORITY TO PAY CIVILIAN 
                   EMPLOYEES WITH RESPECT TO THE EVACUATION FROM 
                   GUANTANAMO, CUBA.

       (a) Extension of Authority.--The Secretary of Defense may, 
     until the end of January 31, 1996, and without regard to the 
     time limitations specified in subsection (a) of section 5523 
     of title 5, United States Code, make 

[[Page H426]]
     payments under the provisions of such section from funds available for 
     the pay of civilian personnel in the case of employees, or an 
     employee's dependents or immediate family, evacuated from 
     Guantanamo Bay, Cuba, pursuant to the August 26, 1994 order 
     of the Secretary. This section shall take effect as of 
     October 1, 1995, and shall apply with respect to payments 
     made for periods occurring on or after that date.
       (b) Monthly Report.--On the first day of each month 
     beginning after the date of the enactment of this Act and 
     ending before March 1996, the Secretary of the Navy shall 
     transmit to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives a report regarding the payment of employees 
     pursuant to subsection (a). Each such report shall include, 
     for the month preceding the month in which the report is 
     transmitted, a statement of the following:
       (1) The number of the employees paid pursuant to such 
     section.
       (2) The positions of employment of the employees.
       (3) The number and location of the employees' dependents 
     and immediate families.
       (4) The actions taken by the Secretary to eliminate the 
     conditions which necessitated the payments.
            Subtitle E--Miscellaneous Reporting Requirements

     SEC. 1051. REPORT ON FISCAL YEAR 1997 BUDGET SUBMISSION 
                   REGARDING GUARD AND RESERVE COMPONENTS.

       (a) Report.--The Secretary of Defense shall submit to the 
     congressional defense committees, at the same time that the 
     President submits the budget for fiscal year 1997 under 
     section 1105(a) of title 31, United States Code, a report on 
     amounts requested in that budget for the Guard and Reserve 
     components.
       (b) Content.--The report shall include the following:
       (1) A description of the anticipated effect that the 
     amounts requested (if approved by Congress) will have to 
     enhance the capabilities of each of the Guard and Reserve 
     components.
       (2) A listing, with respect to each such component, of each 
     of the following:
       (A) The amount requested for each major weapon system for 
     which funds are requested in the budget for that component.
       (B) The amount requested for each item of equipment (other 
     than a major weapon system) for which funds are requested in 
     the budget for that component.
       (C) The amount requested for each military construction 
     project, together with the location of each such project, for 
     which funds are requested in the budget for that component.
       (c) Inclusion of Information in Next FYDP.--The Secretary 
     of Defense shall specifically display in the next future-
     years defense program (or program revision) submitted to 
     Congress after the date of the enactment of this Act the 
     amounts programmed for procurement of equipment and for 
     military construction for each of the Guard and Reserve 
     components.
       (d) Definition.--For purposes of this section, the term 
     ``Guard and Reserve components'' means the following:
       (1) The Army Reserve.
       (2) The Army National Guard of the United States.
       (3) The Naval Reserve.
       (4) The Marine Corps Reserve.
       (5) The Air Force Reserve.
       (6) The Air National Guard of the United States.

     SEC. 1052. REPORT ON DESIRABILITY AND FEASIBILITY OF 
                   PROVIDING AUTHORITY FOR USE OF FUNDS DERIVED 
                   FROM RECOVERED LOSSES RESULTING FROM CONTRACTOR 
                   FRAUD.

       (a) Report.--Not later than April 1, 1996, the Secretary of 
     Defense shall submit to Congress a report on the 
     desirability and feasibility of authorizing by law the 
     retention and use by the Department of Defense of a 
     specified portion (not to exceed three percent) of amounts 
     recovered by the Government during any fiscal year from 
     losses and expenses incurred by the Department of Defense 
     as a result of contractor fraud at military installations.
       (b) Matters To Be Included.--The report shall include the 
     views of the Secretary of Defense regarding--
       (1) the degree to which such authority would create 
     enhanced incentives for the discovery, investigation, and 
     resolution of contractor fraud at military installations; and
       (2) the appropriate allocation for funds that would be 
     available for expenditure pursuant to such authority.

     SEC. 1053. REPORT OF NATIONAL POLICY ON PROTECTING THE 
                   NATIONAL INFORMATION INFRASTRUCTURE AGAINST 
                   STRATEGIC ATTACKS.

       Not later than 120 days after the date of the enactment of 
     this Act, the President shall submit to Congress a report 
     setting forth the results of a review of the national policy 
     on protecting the national information infrastructure against 
     strategic attacks. The report shall include the following:
       (1) A description of the national policy and architecture 
     governing the plans for establishing procedures, 
     capabilities, systems, and processes necessary to perform 
     indications, warning, and assessment functions regarding 
     strategic attacks by foreign nations, groups, or individuals, 
     or any other entity against the national information 
     infrastructure.
       (2) An assessment of the future of the National 
     Communications System (NCS), which has performed the central 
     role in ensuring national security and emergency preparedness 
     communications for essential United States Government and 
     private sector users, including a discussion of--
       (A) whether there is a Federal interest in expanding or 
     modernizing the National Communications System in light of 
     the changing strategic national security environment and the 
     revolution in information technologies; and
       (B) the best use of the National Communications System and 
     the assets and experience it represents as an integral part 
     of a larger national strategy to protect the United States 
     against a strategic attack on the national information 
     infrastructure.

     SEC. 1054. REPORT ON DEPARTMENT OF DEFENSE BOARDS AND 
                   COMMISSIONS.

       (a) Study.--The Secretary of Defense shall conduct a study 
     of the boards and commissions described in subsection (c). As 
     part of such study, the Secretary shall determine, with 
     respect to each such board or commission that received 
     support from the Department of Defense during fiscal year 
     1995, whether that board or commission merits continued 
     support from the Department.
       (b) Report.--Not later than April 1, 1996, the Secretary 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives a report on the results of the study. The 
     report shall include the following:
       (1) A list of each board and commission described in 
     subsection (c) that received support from the Department of 
     Defense during fiscal year 1995.
       (2) With respect to the boards and commissions specified on 
     the list under paragraph (1)--
       (A) a list of each such board or commission concerning 
     which the Secretary determined under subsection (a) that 
     continued support from the Department of Defense is merited; 
     and
       (B) a list of each such board or commission concerning 
     which the Secretary determined under subsection (a) that 
     continued support from the Department if not merited.
       (3) For each board and commission specified on the list 
     under paragraph (2)(A), a description of--
       (A) the purpose of the board or commission;
       (B) the nature and cost of the support provided by the 
     Department to the board or commission during fiscal year 
     1995;
       (C) the nature and duration of the support that the 
     Secretary proposes to provide to the board or commission;
       (D) the anticipated cost to the Department of providing 
     such support; and
       (E) a justification of the determination that the board or 
     commission merits the continued support of the Department.
       (4) For each board and commission specified on the list 
     under paragraph (2)(B), a description of--
       (A) the purpose of the board or commission;
       (B) the nature and cost of the support provided by the 
     Department to the board or commission during fiscal year 
     1995; and
       (C) a justification of the determination that the board or 
     commission does not merit the continued support of the 
     Department.
       (c) Covered Boards and Commissions.--Subsection (a) applies 
     to any board or commission (including any board or commission 
     authorized by law) that operates within or for the Department 
     of Defense and that--
       (1) provides only policy-making assistance or advisory 
     services for the Department; or
       (2) carries out only activities that are not routine 
     activities, on-going activities, or activities necessary to 
     the routine, on-going operations of the Department.
       (d) Support Defined.--For purposes of this section, the 
     term ``support'' includes the provision of any of the 
     following:
       (1) Funds.
       (2) Equipment, materiel, or other assets.
       (3) Services of personnel.

     SEC. 1055. DATE FOR SUBMISSION OF ANNUAL REPORT ON SPECIAL 
                   ACCESS PROGRAMS.

       Section 119(a) of title 10, United States Code, is amended 
     by striking out ``February 1'' and inserting in lieu thereof 
     ``March 1''.
  Subtitle F--Repeal of Certain Reporting and Other Requirements and 
                              Authorities

     SEC. 1061. REPEAL OF MISCELLANEOUS PROVISIONS OF LAW.

       (a) Volunteers Investing in Peace and Security Program.--
     (1) Chapter 89 of title 10, United States Code, is repealed.
       (2) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part II of subtitle A, of such title 
     are each amended by striking out the item relating to chapter 
     89.
       (b) Security and Control of Supplies.--(1) Chapter 171 of 
     such title is repealed.
       (2) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part IV of subtitle A, of such title 
     are each amended by striking out the item relating to chapter 
     171.
       (c) Annual Authorization of Military Training Student 
     Loads.--Section 115 of such title is amended--
       (1) in subsection (a), by striking out paragraph (3);
       (2) in subsection (b)--
       (A) by inserting ``or'' at the end of paragraph (1);
     
[[Page H427]]

       (B) by striking out ``; or'' at the end of paragraph (2) 
     and inserting in lieu thereof a period; and
       (C) by striking out paragraph (3); and
       (3) by striking out subsection (f).
       (d) Portions of Annual Manpower Requirements Report.--
     Section 115a of such title is amended--
       (1) in subsection (b)(2), by striking out subparagraph (C);
       (2) by striking out subsection (d);
       (3) by redesignating subsection (e) as subsection (d) and 
     striking out paragraphs (4) and (5) thereof;
       (4) by striking out subsection (f); and
       (5) by redesignating subsection (g) as subsection (e).
       (e) Obsolete Authority for Payment of Stipends for Members 
     of Certain Advisory Committees and Boards of Visitors of 
     Service Academies.--(1) The second sentence of each of 
     sections 173(b) and 174(b) of such title is amended to read 
     as follows: ``Other members and part-time advisers shall 
     (except as otherwise specifically authorized by law) serve 
     without compensation for such service.''.
       (2) Sections 4355(h), 6968(h), and 9355(h) of such title 
     are amended by striking out ``is entitled to not more than $5 
     a day and''.
       (f) Annual Budget Information Concerning Recruiting 
     Costs.--(1) Section 227 of such title is repealed.
       (2) The table of sections at the beginning of chapter 9 of 
     such title is amended by striking out the item relating to 
     section 227.
       (g) Expired Authority Relating to Peacekeeping 
     Activities.--(1) Section 403 of such title is repealed.
       (2) The table of sections at the beginning of subchapter I 
     of chapter 20 of such title is amended by striking out the 
     item relating to section 403.
       (h) Procurement of Gasohol for Department of Defense Motor 
     Vehicles.--(1) Subsection (a) of section 2398 of such title 
     is repealed.
       (2) Such section is further amended--
       (A) by redesignating subsections (b) and (c) as subsections 
     (a) and (b), respectively; and
       (B) in subsection (b), as so redesignated, by striking out 
     ``subsection (b)'' and inserting in lieu thereof ``subsection 
     (a)''.
       (i) Requirement of Notice of Certain Disposals and Gifts by 
     Secretary of Navy.--Section 7545 of such title is amended--
       (1) by striking out subsection (c); and
       (2) by redesignating subsection (d) as subsection (c).
       (j) Annual Report on Biological Defense Research Program.--
     (1) Section 2370 of such title is repealed.
       (2) The table of sections at the beginning of chapter 139 
     of such title is amended by striking out the item relating to 
     such section.
       (k) Reports and Notifications Relating to Chemical and 
     Biological Agents.--Subsection (a) of section 409 of Public 
     Law 91-121 (50 U.S.C. 1511) is repealed.
       (l) Annual Report on Balanced Technology Initiative.--
     Subsection (e) of section 211 of the National Defense 
     Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
     101-189; 103 Stat. 1394) is repealed.
       (m) Report on Environmental Restoration Costs for 
     Installations To Be Closed Under 1990 Base Closure Law.--
     Section 2827 of the National Defense Authorization Act for 
     Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 
     2687 note) is amended by striking out subsection (b).
       (n) Limitation on American Diplomatic Facilities in 
     Germany.--Section 1432 of the National Defense Authorization 
     Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1833) 
     is repealed.

     SEC. 1062. REPORTS REQUIRED BY TITLE 10, UNITED STATES CODE.

       (a) Annual Report on Relocation Assistance Programs.--
     Section 1056 of title 10, United States Code, is amended--
       (1) by striking out subsection (f); and
       (2) by redesignating subsection (g) as subsection (f).
       (b) Notice of Salary Increases for Foreign National 
     Employees.--Section 1584 of such title is amended--
       (1) by striking out subsection (b); and
       (2) in subsection (a), by striking out ``(a) Waiver of 
     Employment Restrictions for Certain Personnel.--''.
       (c) Notice Regarding Contracts Performed for Periods 
     Exceeding 10 Years.--(1) Section 2352 of such title is 
     repealed.
       (2) The table of sections at the beginning of chapter 139 
     of such title is amended by striking out the item relating to 
     section 2352.
       (d) Report on Low-Rate Production Under Naval Vessel and 
     Military Satellite Programs.--Section 2400(c) of such title 
     is amended--
       (1) by striking out paragraph (2); and
       (2) in paragraph (1)--
       (A) by striking out ``(1)''; and
       (B) by redesignating clauses (A) and (B) as clauses (1) and 
     (2), respectively.
       (e) Report on Waivers of Prohibition on Employment of 
     Felons.--Section 2408(a)(3) of such title is amended by 
     striking out the second sentence.
       (f) Report on Determination Not To Debar for Fraudulent Use 
     of Labels.--Section 2410f(a) of such title is amended by 
     striking out the second sentence.
       (g) Notice of Military Construction Contracts on Guam.--
     Section 2864(b) of such title is amended by striking out 
     ``after the 21-day period'' and all that follows through 
     ``determination''.

     SEC. 1063. REPORTS REQUIRED BY DEFENSE AUTHORIZATION AND 
                   APPROPRIATIONS ACTS.

       (a) Public Law 99-661 Requirement for Report on Funding for 
     Nicaraguan Democratic Resistance.--Section 1351 of the 
     National Defense Authorization Act for Fiscal Year 1987 
     (Public Law 99-661; 100 Stat. 3995; 10 U.S.C. 114 note) is 
     amended--
       (1) by striking out subsection (b); and
       (2) in subsection (a), by striking out ``(a) Limitation.--
     ''.
       (b) Annual Report on Overseas Military Facility Investment 
     Recovery Account.--Section 2921 of the Military Construction 
     Authorization Act for Fiscal Year 1991 (division B of Public 
     Law 101-510; 10 U.S.C. 2687 note) is amended--
       (1) by striking out subsection (f); and
       (2) by redesignating subsections (g) and (h) as subsections 
     (f) and (g), respectively.
       (c) Science, Mathematics, and Engineering Education Master 
     Plan.--Section 829 of the National Defense Authorization Act 
     for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 
     1444; 10 U.S.C. 2192 note) is repealed.
       (d) Report Regarding Heating Facility Modernization at 
     Kaiserslautern.--Section 8008 of the Department of Defense 
     Appropriations Act, 1994 (Public Law 103-139; 107 Stat. 
     1438), is amended by inserting ``but without regard to the 
     notification requirement in subsection (b)(2) of such 
     section,'' after ``section 2690 of title 10, United States 
     Code,''.

     SEC. 1064. REPORTS REQUIRED BY OTHER PROVISIONS OF LAW.

       (a) Requirement Under Arms Export Control Act for Quarterly 
     Report on Price and Availability Estimates.--Section 28 of 
     the Arms Export Control Act (22 U.S.C. 2768) is repealed.
       (b) Annual Report on National Security Agency Executive 
     Personnel.--Section 12(a) of the National Security Agency Act 
     of 1959 (50 U.S.C. 402 note) is amended by striking out 
     paragraph (5).
       (c) Reports Concerning Certain Federal Contracting and 
     Financial Transactions.--Section 1352 of title 31, United 
     States Code, is amended--
       (1) in subsection (b)(6)(A), by inserting ``(other than the 
     Secretary of Defense and Secretary of a military 
     department)'' after ``The head of each agency''; and
       (2) in subsection (d)(1), by inserting ``(other than in the 
     case of the Department of Defense or a military department)'' 
     after ``paragraph (3) of this subsection''.
       (d) Annual Report on Water Resources Project Agreements.--
     Section 221 of the Flood Control Act of 1970 (42 U.S.C. 
     1962d-5b) is amended--
       (1) by striking out subsection (e); and
       (2) by redesignating subsection (f) as subsection (e).
       (e) Annual Report on Construction of Tennessee-Tombigbee 
     Waterway.--Section 185 of the Water Resources Development Act 
     of 1976 (33 U.S.C. 544c) is amended by striking out the 
     second sentence.
       (f) Annual Report on Monitoring of Navy Home Port Waters.--
     Section 7 of the Organotin Antifouling Paint Control Act of 
     1988 (33 U.S.C. 2406) is amended--
       (1) by striking out subsection (d); and
       (2) by redesignating subsections (e) and (f) as subsections 
     (d) and (e), respectively.
          Subtitle G--Department of Defense Education Programs

     SEC. 1071. CONTINUATION OF UNIFORMED SERVICES UNIVERSITY OF 
                   THE HEALTH SCIENCES.

       (a) Policy.--Congress reaffirms--
       (1) the prohibition set forth in subsection (a) of section 
     922 of the National Defense Authorization Act for Fiscal Year 
     1995 (Public Law 103-337; 108 Stat. 2829; 10 U.S.C. 2112 
     note) regarding closure of the Uniformed Services University 
     of the Health Sciences; and
       (2) the expression of the sense of Congress set forth in 
     subsection (b) of such section regarding the budgetary 
     commitment to continuation of the university.
       (b) Personnel Strength.--During the five-year period 
     beginning on October 1, 1995, the personnel staffing levels 
     for the Uniformed Services University of the Health Services 
     may not be reduced below the personnel staffing levels for 
     the university as of October 1, 1993.
       (c) Budgetary Commitment to Continuation.--It is the sense 
     of Congress that the Secretary of Defense should budget for 
     the operation of the Uniformed Services University of the 
     Health Sciences during fiscal year 1997 at a level at least 
     equal to the level of operations conducted at the University 
     during fiscal year 1995.

     SEC. 1072. ADDITIONAL GRADUATE SCHOOLS AND PROGRAMS AT 
                   UNIFORMED SERVICES UNIVERSITY OF THE HEALTH 
                   SCIENCES.

       (a) Additional Schools and Programs.--Subsection (h) of 
     section 2113 of title 10, United States Code, is amended to 
     read as follows:
       ``(h) The Secretary of Defense may establish the following 
     educational programs at the University:
       ``(1) Postdoctoral, postgraduate, and technological 
     institutes.
       ``(2) A graduate school of nursing.
       ``(3) Other schools or programs that the Secretary 
     determines necessary in order to operate the University in a 
     cost-effective manner.''.
       (b) Conforming Amendments To Reflect Advisory Nature of 
     Board of Regents.--(1) Section 2112(b) of such title is 
     amended by 

[[Page H428]]
     striking out ``, upon recommendation of the Board of Regents,''.
       (2) Section 2113 of such title is amended--
       (A) in subsection (a)--
       (i) by striking out ``a Board of Regents (hereinafter in 
     this chapter referred to as the `Board')'' in the first 
     sentence and inserting in lieu thereof ``the Secretary of 
     Defense''; and
       (ii) by inserting after the first sentence the following 
     new sentence: ``To assist the Secretary in an advisory 
     capacity, there is a Board of Regents for the University.'';
       (B) in subsection (d), by striking out ``Board'' the first 
     place it appears and inserting in lieu thereof ``Secretary'';
       (C) in subsection (e), by striking out ``of Defense'';
       (D) in subsection (f)(1), by striking out ``of Defense'';
       (E) in subsection (g)--
       (i) by striking out ``Board is authorized to'' in the first 
     sentence and inserting in lieu thereof ``Secretary may'';
       (ii) by striking out ``Board is also authorized to'' in the 
     third sentence and inserting in lieu thereof ``Secretary 
     may''; and
       (iii) by striking out ``Board may also, subject to the 
     approval of the Secretary of Defense,'' in the fifth sentence 
     and inserting in lieu thereof ``Secretary may''; and
       (F) by striking out ``Board'' each place it appears in 
     subsections (f), (i), and (j) and inserting in lieu thereof 
     ``Secretary''.
       (3) Section 2114(e)(1) of such title is amended by striking 
     out ``Board, upon approval of the Secretary of Defense,'' and 
     inserting in lieu thereof ``Secretary of Defense''.
       (c) Clerical Amendments.--(1) The heading of section 2113 
     of such title is amended to read as follows:

     ``Sec. 2113. Administration of University''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 104 of such title is 
     amended to read as follows:

``2113. Administration of University.''.

     SEC. 1073. FUNDING FOR ADULT EDUCATION PROGRAMS FOR MILITARY 
                   PERSONNEL AND DEPENDENTS OUTSIDE THE UNITED 
                   STATES.

       Of amounts appropriated pursuant to section 301, $600,000 
     shall be available to carry out adult education programs, 
     consistent with the Adult Education Act (20 U.S.C. 1201 et 
     seq.), for the following:
       (1) Members of the Armed Forces who are serving in 
     locations--
       (A) that are outside the United States; and
       (B) for which amounts are not required to be allotted under 
     section 313(b) of such Act (20 U.S.C. 1201b(b)).
       (2) The dependents of such members.

     SEC. 1074. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
                   BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
                   FORCES AND DEPARTMENT OF DEFENSE CIVILIAN 
                   EMPLOYEES.

       (a) Continuation of Department of Defense Program for 
     Fiscal Year 1996.--(1) Of the amounts authorized to be 
     appropriated in section 301(5)--
       (A) $30,000,000 shall be available for providing 
     educational agencies assistance (as defined in paragraph 
     (4)(A)) to local educational agencies; and
       (B) $5,000,000 shall be available for making educational 
     agencies payments (as defined in paragraph (4)(B)) to local 
     educational agencies.
       (2) Not later than June 30, 1996, the Secretary of Defense 
     shall--
       (A) notify each local educational agency that is eligible 
     for educational agencies assistance for fiscal year 1996 of 
     that agency's eligibility for such assistance and the amount 
     of such assistance for which that agency is eligible; and
       (B) notify each local educational agency that is eligible 
     for an educational agencies payment for fiscal year 1996 of 
     that agency's eligibility for such payment and the amount of 
     the payment for which that agency is eligible.
       (3) The Secretary of Defense shall disburse funds made 
     available under subparagraphs (A) and (B) of paragraph (1) 
     not later than 30 days after the date on which notification 
     to the eligible local educational agencies is provided 
     pursuant to paragraph (2).
       (4) In this section:
       (A) The term ``educational agencies assistance'' means 
     assistance authorized under subsection (b) of section 386 of 
     the National Defense Authorization Act for Fiscal Year 1993 
     (Public Law 102-484; 20 U.S.C. 238 note).
       (B) The term ``educational agencies payments'' means 
     payments authorized under subsection (d) of that section, as 
     amended by subsection (d).
       (b) Special Rule for 1994 Payments.--The Secretary of 
     Education shall not consider any payment to a local 
     educational agency by the Department of Defense, that is 
     available to such agency for current expenditures and used 
     for capital expenses, as funds available to such agency for 
     purposes of making a determination for fiscal year 1994 under 
     section 3(d)(2)(B)(i) of the Act of September 30, 1950 
     (Public Law 874, 81st Congress) (as such Act was in effect on 
     September 30, 1994).
       (c) Reduction in Impact Threshold.--Subsection (c)(1) of 
     section 386 of the National Defense Authorization Act for 
     Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 note) is 
     amended--
       (1) by striking out ``30 percent'' and inserting in lieu 
     thereof ``20 percent''; and
       (2) by striking out ``counted under subsection (a) or (b) 
     of section 3 of the Act of September 30, 1950 (Public Law 
     874, Eighty-first Congress; 20 U.S.C. 238)'' and inserting in 
     lieu thereof ``counted under section 8003(a) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703(a))''.
       (d) Adjustments Related to Base Closures and 
     Realignments.--Subsection (d) of section 386 of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 28 U.S.C. 238 note) is amended to read as follows:
       ``(d) Adjustments Related to Base Closures and 
     Realignments.--To assist communities in making adjustments 
     resulting from reductions in the size of the Armed Forces, 
     the Secretary of Defense shall, in consultation with the 
     Secretary of Education, make payments to local educational 
     agencies that, during the period between the end of the 
     school year preceding the fiscal year for which the payments 
     are authorized and the beginning of the school year 
     immediately preceding that school year, had an overall 
     reduction of not less than 20 percent in the number of 
     military dependent students as a result of the closure or 
     realignment of military installations.''.
       (e) Extension of Reporting Requirement.--Subsection (e)(1) 
     of section 386 of the National Defense Authorization Act for 
     Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 note) is 
     amended by striking out ``and 1995'' and inserting in lieu 
     thereof ``1995, and 1996''.
       (f) Payments for Eligible Federally Connected Children.--
     Subsection (f) of section 8003 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703) is amended--
       (1) in paragraph (2)--
       (A) in the matter preceding clause (i) of subparagraph (A), 
     by striking ``only if such agency'' and inserting ``if such 
     agency is eligible for a supplementary payment in accordance 
     with subparagraph (B) or such agency''; and
       (B) by adding at the end the following new subparagraph:
       ``(D) A local educational agency shall only be eligible to 
     receive additional assistance under this subsection if the 
     Secretary determines that--
       ``(i) such agency is exercising due diligence in availing 
     itself of State and other financial assistance; and
       ``(ii) the eligibility of such agency under State law for 
     State aid with respect to the free public education of 
     children described in subsection (a)(1) and the amount of 
     such aid are determined on a basis no less favorable to such 
     agency than the basis used in determining the eligibility of 
     local educational agencies for State aid, and the amount of 
     such aid, with respect to the free public education of other 
     children in the State.''; and
       (2) in paragraph (3)--
       (A) in subparagraph (A)--
       (i) in the matter preceding clause (i), by inserting 
     ``(other than any amount received under paragraph (2)(B))'' 
     after ``subsection'';
       (ii) in subclause (I) of clause (i), by striking ``or the 
     average per-pupil expenditure of all the States'';
       (iii) by amending clause (ii) to read as follows:
       ``(ii) The Secretary shall next multiply the amount 
     determined under clause (i) by the total number of students 
     in average daily attendance at the schools of the local 
     educational agency.''; and
       (iv) by amending clause (iii) to read as follows:
       ``(iii) The Secretary shall next subtract from the amount 
     determined under clause (ii) all funds available to the local 
     educational agency for current expenditures, but shall not so 
     subtract funds provided--

       ``(I) under this Act; or
       ``(II) by any department or agency of the Federal 
     Government (other than the Department) that are used for 
     capital expenses.''; and

       (B) by amending subparagraph (B) to read as follows:
       ``(B) Special rule.--With respect to payments under this 
     subsection for a fiscal year for a local educational agency 
     described in clause (ii) or (iii) of paragraph (2)(A), the 
     maximum amount of payments under this subsection shall be 
     equal to--
       ``(i) the product of--

       ``(I) the average per-pupil expenditure in all States 
     multiplied by 0.7, except that such amount may not exceed 125 
     percent of the average per-pupil expenditure in all local 
     educational agencies in the State; multiplied by
       ``(II) the number of students described in subparagraph (A) 
     or (B) of subsection (a)(1) for such agency; minus

       ``(ii) the amount of payments such agency receives under 
     subsections (b) and (d) for such year.''.
       (g) Current Year Data.--Paragraph (4) of section 8003(f) of 
     such Act (20 U.S.C. 7703(f)) is amended to read as follows:
       ``(4) Current year data.--For purposes of providing 
     assistance under this subsection the Secretary--
       ``(A) shall use student and revenue data from the fiscal 
     year for which the local educational agency is applying for 
     assistance under this subsection; and
       ``(B) shall derive the per pupil expenditure amount for 
     such year for the local educational agency's comparable 
     school districts by increasing or decreasing the per pupil 
     expenditure data for the second fiscal year preceding the 
     fiscal year for which the determination is made by the same 
     percentage increase or decrease reflected between the per 
     pupil expenditure data for the fourth fiscal year preceding 
     the fiscal year for which the determination is made and the 
     per 

[[Page H429]]
     pupil expenditure data for such second year.''.
       (h) Technical Amendments To Correct References to Repealed 
     Law.--Section 386 of the National Defense Authorization Act 
     for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 note) 
     is amended--
       (1) in subsection (e)(2)--
       (A) in subparagraph (C), by inserting after ``et seq.),'' 
     the following: ``title VIII of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7701 et seq.),''; and
       (B) in subparagraph (D)(iii), by striking out ``under 
     subsections (a) and (b) of section 3 of such Act (20 U.S.C. 
     238)''; and
       (2) in subsection (h)--
       (A) in paragraph (1), by striking out ``section 14101 of 
     the Elementary and Secondary Education Act of 1965'' and 
     inserting in lieu thereof ``section 8013(9) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7713(9))''; 
     and
       (B) by striking out paragraph (3) and inserting in lieu 
     thereof the following new paragraph:
       ``(3) The term `State' means each of the 50 States and the 
     District of Columbia.''.

     SEC. 1075. SHARING OF PERSONNEL OF DEPARTMENT OF DEFENSE 
                   DOMESTIC DEPENDENT SCHOOLS AND DEFENSE 
                   DEPENDENTS' EDUCATION SYSTEM.

       Section 2164(e) of title 10, United States Code, is amended 
     by adding at the end the following:
       ``(4)(A) The Secretary may, without regard to the 
     provisions of any law relating to the number, classification, 
     or compensation of employees--
       ``(i) transfer employees from schools established under 
     this section to schools in the defense dependents' education 
     system in order to provide the services referred to in 
     subparagraph (B) to such system; and
       ``(ii) transfer employees from such system to schools 
     established under this section in order to provide such 
     services to those schools.
       ``(B) The services referred to in subparagraph (A) are the 
     following:
       ``(i) Administrative services.
       ``(ii) Logistical services.
       ``(iii) Personnel services.
       ``(iv) Such other services as the Secretary considers 
     appropriate.
       ``(C) Transfers under this paragraph shall extend for such 
     periods as the Secretary considers appropriate. The Secretary 
     shall provide appropriate compensation for employees so 
     transferred.
       ``(D) The Secretary may provide that the transfer of an 
     employee under this paragraph occur without reimbursement of 
     the school or system concerned.
       ``(E) In this paragraph, the term `defense dependents' 
     education system' means the program established and operated 
     under section 1402(a) of the Defense Dependents' Education 
     Act of 1978 (20 U.S.C. 921(a)).''.

     SEC. 1076. INCREASE IN RESERVE COMPONENT MONTGOMERY GI BILL 
                   EDUCATIONAL ASSISTANCE ALLOWANCE WITH RESPECT 
                   TO SKILLS OR SPECIALTIES FOR WHICH THERE IS A 
                   CRITICAL SHORTAGE OF PERSONNEL.

       Section 16131 of title 10, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(j)(1) In the case of a person who has a skill or 
     specialty designated by the Secretary concerned as a skill or 
     specialty in which there is a critical shortage of personnel 
     or for which it is difficult to recruit or, in the case of 
     critical units, retain personnel, the Secretary concerned may 
     increase the rate of the educational assistance allowance 
     applicable to that person to such rate in excess of the rate 
     prescribed under subparagraphs (A) through (D) of subsection 
     (b)(1) as the Secretary of Defense considers appropriate, but 
     the amount of any such increase may not exceed $350 per 
     month.
       ``(2) In the case of a person who has a skill or specialty 
     designated by the Secretary concerned as a skill or specialty 
     in which there is a critical shortage of personnel or for 
     which it is difficult to recruit or, in the case of critical 
     units, retain personnel, who is eligible for educational 
     benefits under chapter 30 (other than section 3012) of title 
     38 and who meets the eligibility criteria specified in 
     subparagraphs (A) and (B) of section 16132(a)(1) of this 
     title, the Secretary concerned may increase the rate of the 
     educational assistance allowance applicable to that person to 
     such rate in excess of the rate prescribed under section 3015 
     of title 38 as the Secretary of Defense considers 
     appropriate, but the amount of any such increase may not 
     exceed $350 per month.
       ``(3) The authority provided by paragraphs (1) and (2) 
     shall be exercised by the Secretaries concerned under 
     regulations prescribed by the Secretary of Defense.''.

     SEC. 1077. DATE FOR ANNUAL REPORT ON RESERVE COMPONENT 
                   MONTGOMERY GI BILL EDUCATIONAL ASSISTANCE 
                   PROGRAM.

       Section 16137 of title 10, United States Code, is amended 
     by striking out ``December 15 of each year'' and inserting in 
     lieu thereof ``March 1 of each year''.

     SEC. 1078. SCOPE OF EDUCATION PROGRAMS OF COMMUNITY COLLEGE 
                   OF THE AIR FORCE.

       (a) Limitation to Members of the Air Force.--Section 
     9315(a)(1) of title 10, United States Code, is amended by 
     striking out ``for enlisted members of the armed forces'' and 
     inserting in lieu thereof ``for enlisted members of the Air 
     Force''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to enrollments in the Community 
     College of the Air Force after March 31, 1996.

      SEC. 1079. AMENDMENTS TO EDUCATION LOAN REPAYMENT PROGRAMS.

       (a) General Education Loan Repayment Program.--Section 
     2171(a)(1) of title 10, United States Code, is amended--
       (1) by striking out ``or'' at the end of subparagraph (A);
       (2) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (3) by inserting after subparagraph (A) the following new 
     subparagraph (B):
       ``(B) any loan made under part D of such title (the William 
     D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et 
     seq.); or''.
       (b) Education Loan Repayment Program for Enlisted Members 
     of Selected Reserve With Critical Specialties.--Section 
     16301(a)(1) of such title is amended--
       (1) by striking out ``or'' at the end of subparagraph (A);
       (2) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (3) by inserting after subparagraph (A) the following new 
     subparagraph (B):
       ``(B) any loan made under part D of such title (the William 
     D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et 
     seq.); or''.
       (c) Education Loan Repayment Program for Health Professions 
     Officers Serving in Selected Reserve With Wartime Critical 
     Medical Skill Shortages.--Section 16302(a) of such title is 
     amended--
       (1) by redesignating paragraphs (2) through (4) as 
     paragraphs (3) through (5) respectively; and
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) any loan made under part D of such title (the William 
     D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et 
     seq.); or''.
                       Subtitle H--Other Matters

     SEC. 1081. NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, 
                   DEFENSE REINVESTMENT, AND DEFENSE CONVERSION 
                   PROGRAMS.

       (a) National Security Objectives for National Technology 
     and Industrial Base.--(1) Section 2501 of title 10, United 
     States Code, is amended--
       (A) in subsection (a)--
       (i) by striking out ``Defense Policy'' in the subsection 
     heading and inserting in lieu thereof ``National Security''; 
     and
       (ii) by striking out paragraph (5);
       (B) by striking out subsection (b); and
       (C) by redesignating subsection (c) as subsection (b).
       (2) The heading of such section is amended to read as 
     follows:

     ``Sec. 2501. National security objectives concerning national 
       technology and industrial base''.

       (b) National Defense Technology and Industrial Base 
     Council.--Section 2502(c) of such title is amended--
       (1) in paragraph (1), by striking out subparagraph (B) and 
     inserting in lieu thereof the following new subparagraph:
       ``(B) programs for achieving such national security 
     objectives; and'';
       (2) by striking out paragraph (2); and
       (3) by redesignating paragraph (3) as paragraph (2).
       (c) Modification of Defense Dual-Use Critical Technology 
     Partnerships Program.--Section 2511 of such title is amended 
     to read as follows:

     ``Sec. 2511. Defense dual-use critical technology program

       ``(a) Establishment of Program.--The Secretary of Defense 
     shall conduct a program to further the national security 
     objectives set forth in section 2501(a) of this title by 
     encouraging and providing for research, development, and 
     application of dual-use critical technologies. The Secretary 
     may make grants, enter into contracts, or enter into 
     cooperative agreements and other transactions pursuant to 
     section 2371 of this title in furtherance of the program. The 
     Secretary shall identify projects to be conducted as part of 
     the program.
       ``(b) Assistance Authorized.--The Secretary of Defense may 
     provide technical and other assistance to facilitate the 
     achievement of the purposes of projects conducted under the 
     program. In providing such assistance, the Secretary shall 
     make available, as appropriate for the work to be performed, 
     equipment and facilities of Department of Defense 
     laboratories (including the scientists and engineers at those 
     laboratories) for purposes of projects selected by the 
     Secretary.
       ``(c) Financial Commitment of Non-Federal Government 
     Participants.--(1) The total amount of funds provided by the 
     Federal Government for a project conducted under the program 
     may not exceed 50 percent of the total cost of the project. 
     However, the Secretary of Defense may agree to a project in 
     which the total amount of funds provided by the Federal 
     Government exceeds 50 percent if the Secretary determines the 
     project is particularly meritorious, but the project would 
     not otherwise have sufficient non-Federal funding or in-kind 
     contributions.
       ``(2) The Secretary may prescribe regulations to provide 
     for consideration of in-kind contributions by non-Federal 
     Government participants in a project conducted under the 
     program for the purpose of calculating the share of the 
     project costs that has been or is being undertaken by such 
     participants. In such regulations, the Secretary may 
     authorize a participant that is a small business 

[[Page H430]]
     concern to use funds received under the Small Business Innovation 
     Research Program or the Small Business Technology Transfer 
     Program to help pay the costs of project activities. Any such 
     funds so used may be considered in calculating the amount of 
     the financial commitment undertaken by the non-Federal 
     Government participants unless the Secretary determines that 
     the small business concern has not made a significant equity 
     percentage contribution in the project from non-Federal 
     sources.
       ``(3) The Secretary shall consider a project proposal 
     submitted by a small business concern without regard to the 
     ability of the small business concern to immediately meet its 
     share of the anticipated project costs. Upon the selection of 
     a project proposal submitted by a small business concern, the 
     small business concern shall have a period of not less than 
     120 days in which to arrange to meet its financial commitment 
     requirements under the project from sources other than a 
     person of a foreign country. If the Secretary determines upon 
     the expiration of that period that the small business concern 
     will be unable to meet its share of the anticipated project 
     costs, the Secretary shall revoke the selection of the 
     project proposal submitted by the small business concern.
       ``(d) Selection Process.--Competitive procedures shall be 
     used in the conduct of the program.
       ``(e) Selection Criteria.--The criteria for the selection 
     of projects under the program shall include the following:
       ``(1) The extent to which the proposed project advances and 
     enhances the national security objectives set forth in 
     section 2501(a) of this title.
       ``(2) The technical excellence of the proposed project.
       ``(3) The qualifications of the personnel proposed to 
     participate in the research activities of the proposed 
     project.
       ``(4) An assessment of timely private sector investment in 
     activities to achieve the goals and objectives of the 
     proposed project other than through the project.
       ``(5) The potential effectiveness of the project in the 
     further development and application of each technology 
     proposed to be developed by the project for the national 
     technology and industrial base.
       ``(6) The extent of the financial commitment of eligible 
     firms to the proposed project.
       ``(7) The extent to which the project does not 
     unnecessarily duplicate projects undertaken by other 
     agencies.
       ``(f) Regulations.--The Secretary of Defense shall 
     prescribe regulations for the purposes of this section.''.
       (d) Federal Defense Laboratory Diversification Program.--
     Section 2519 of such title is amended--
       (1) in subsection (b), by striking out ``referred to in 
     section 2511(b) of this title''; and
       (2) in subsection (f), by striking out ``section 2511(f)'' 
     and inserting in lieu thereof ``section 2511(e)''.
       (e) Manufacturing Science and Technology Program.--
     Subsection (b) of section 2525 of such title is amended to 
     read as follows:
       ``(b) Purpose of Program.--The Secretary of Defense shall 
     use the program--
       ``(1) to provide centralized guidance and direction 
     (including goals, milestones, and priorities) to the military 
     departments and the Defense Agencies on all matters relating 
     to manufacturing technology;
       ``(2) to direct the development and implementation of 
     Department of Defense plans, programs, projects, activities, 
     and policies that promote the development and application of 
     advanced technologies to manufacturing processes, tools, and 
     equipment;
       ``(3) to improve the manufacturing quality, productivity, 
     technology, and practices of businesses and workers providing 
     goods and services to the Department of Defense;
       ``(4) to promote dual-use manufacturing processes;
       ``(5) to disseminate information concerning improved 
     manufacturing improvement concepts, including information on 
     such matters as best manufacturing practices, product data 
     exchange specifications, computer-aided acquisition and 
     logistics support, and rapid acquisition of manufactured 
     parts;
       ``(6) to sustain and enhance the skills and capabilities of 
     the manufacturing work force;
       ``(7) to promote high-performance work systems (with 
     development and dissemination of production technologies that 
     build upon the skills and capabilities of the work force), 
     high levels of worker education and training; and
       ``(8) to ensure appropriate coordination between the 
     manufacturing technology programs and industrial preparedness 
     programs of the Department of Defense and similar programs 
     undertaken by other departments and agencies of the Federal 
     Government or by the private sector.''.
       (f) Repeal of Various Assistance Programs.--Sections 2512, 
     2513, 2520, 2521, 2522, 2523, and 2524 of such title are 
     repealed.
       (g) Repeal of Military-Civilian Integration and Technology 
     Transfer Advisory Board.--Section 2516 of such title is 
     repealed.
       (h) Repeal of Obsolete Definitions.--Section 2491 of such 
     title is amended--
       (1) by striking out paragraphs (11) and (12); and
       (2) by redesignating paragraphs (13), (14), (15), and (16) 
     as paragraphs (11) (12), (13), and (14), respectively.
       (i) Clerical Amendments.--(1) The table of sections at the 
     beginning of subchapter II of chapter 148 of such title is 
     amended by striking out the item relating to section 2501 and 
     inserting in lieu thereof the following new item:

``2501. National security objectives concerning national technology and 
              industrial base.''.

       (2) The table of sections at the beginning of subchapter 
     III of such chapter is amended--
       (A) by striking out the item relating to section 2511 and 
     inserting in lieu thereof the following new item:

``2511. Defense dual-use critical technology program.''; and

       (B) by striking out the items relating to sections 2512, 
     2513, 2516, and 2520.
       (3) The table of sections at the beginning of subchapter IV 
     of such chapter is amended by striking out the items relating 
     to sections 2521, 2522, 2523, and 2524.

     SEC. 1082. AMMUNITION INDUSTRIAL BASE.

       (a) Review of Ammunition Procurement Programs.--The 
     Secretary of Defense shall carry out a review of the programs 
     of the Department of Defense for the procurement of 
     ammunition. The review shall include the Department of 
     Defense management of ammunition procurement programs, 
     including the procedures of the Department for the planning 
     for, budgeting for, administration, and carrying out of such 
     programs. The Secretary shall begin the review not later than 
     30 days after the date of the enactment of this Act.
       (b) Matters To Be Reviewed.--The review under subsection 
     (a) shall include an assessment of the following:
       (1) The practicability and desirability of (A) continuing 
     to use centralized procurement practices (through a single 
     executive agent) for the procurement of ammunition required 
     by the Armed Forces, and (B) using such centralized 
     procurement practices for the procurement of all such 
     ammunition.
       (2) The capability of the ammunition production facilities 
     of the Government to meet the requirements of the Armed 
     Forces for procurement of ammunition.
       (3) The practicability and desirability of converting those 
     ammunition production facilities to ownership or operation by 
     private sector entities.
       (4) The practicability and desirability of integrating the 
     budget planning for the procurement of ammunition among the 
     Armed Forces.
       (5) The practicability and desirability of establishing an 
     advocate within the Department of Defense for matters 
     relating to the ammunition industrial base, with such an 
     advocate to be responsible for--
       (A) establishing the quantity and price of ammunition 
     procured by the Armed Forces; and
       (B) establishing and implementing policy to ensure the 
     continuing capability of the ammunition industrial base in 
     the United States to meet the requirements of the Armed 
     Forces.
       (6) The practicability and desirability of providing 
     information on the ammunition procurement practices of the 
     Armed Forces to Congress through a single source.
       (c) Report.--Not later than April 1, 1996, the Secretary 
     shall submit to the congressional defense committees a report 
     on the review carried out under subsection (a). The report 
     shall include the following:
       (1) The results of the review.
       (2) A discussion of the methodologies used in carrying out 
     the review.
       (3) An assessment of various methods of ensuring the 
     continuing capability of the ammunition industrial base of 
     the United States to meet the requirements of the Armed 
     Forces.
       (4) Recommendations of means (including legislation) of 
     implementing those methods in order to ensure such continuing 
     capability.

     SEC. 1083. POLICY CONCERNING EXCESS DEFENSE INDUSTRIAL 
                   CAPACITY.

       No funds appropriated pursuant to an authorization of 
     appropriations in this Act may be used for capital investment 
     in, or the development and construction of, a Government-
     owned, Government-operated defense industrial facility unless 
     the Secretary of Defense certifies to the Congress that no 
     similar capability or minimally used capacity exists in any 
     other Government-owned, Government-operated defense 
     industrial facility.

     SEC. 1084. SENSE OF CONGRESS CONCERNING ACCESS TO SECONDARY 
                   SCHOOL STUDENT INFORMATION FOR RECRUITING 
                   PURPOSES.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the States (with respect to public schools) and 
     entities operating private secondary schools should not have 
     a policy of denying, or otherwise effectively preventing, the 
     Secretary of Defense from obtaining for military recruiting 
     purposes--
       (A) entry to any secondary school or access to students at 
     any secondary school equal to that of other employers; or
       (B) access to directory information pertaining to students 
     at secondary schools equal to that of other employers (other 
     than in a case in which an objection has been raised as 
     described in paragraph (2)); and
       (2) any State, and any entity operating a private secondary 
     school, that releases directory information secondary school 
     students should--
       (A) give public notice of the categories of such 
     information to be released; and
     
[[Page H431]]

       (B) allow a reasonable period after such notice has been 
     given for a student or (in the case of an individual younger 
     than 18 years of age) a parent to inform the school that any 
     or all of such information should not be released without 
     obtaining prior consent from the student or the parent, as 
     the case may be.
       (b) Report on DOD Procedures.--Not later than March 1, 
     1996, the Secretary of Defense shall submit to Congress a 
     report on Department of Defense procedures for determining if 
     and when a State or an entity operating a private secondary 
     school has denied or prevented access to students or 
     information as described in subsection (a)(1).
       (c) Definitions.--For purposes of this section:
       (1) The term ``directory information'' means, with respect 
     to a student, the student's name, address, telephone listing, 
     date and place of birth, level of education, degrees 
     received, and (if available) the most recent previous 
     educational program enrolled in by the student.
       (2) The term ``student'' means an individual enrolled in 
     any program of education who is 17 years of age or older.

     SEC. 1085. DISCLOSURE OF INFORMATION CONCERNING UNACCOUNTED 
                   FOR UNITED STATES PERSONNEL FROM THE KOREAN 
                   CONFLICT, THE VIETNAM ERA, AND THE COLD WAR.

       Section 1082 of the National Defense Authorization Act for 
     Fiscal Years 1992 and 1993 (Public Law 102-190; 50 U.S.C. 401 
     note) is amended--
       (1) in subsection (b)(3)(A), by striking out ``cannot be 
     located after a reasonable effort.'' and inserting in lieu 
     thereof ``cannot be located by the Secretary of Defense--
       ``(i) in the case of a person missing from the Vietnam era, 
     after a reasonable effort; and
       ``(ii) in the case of a person missing from the Korean 
     Conflict or Cold War, after a period of 90 days from the date 
     on which any record or other information referred to in 
     paragraph (2) is received by the Department of Defense for 
     disclosure review from the Archivist of the United States, 
     the Library of Congress, or the Joint United States-Russian 
     Commission on POW/MIAs.''; and
       (2) in subsection (c)(1), by striking out ``not later than 
     September 30, 1995'' and inserting in lieu thereof ``not 
     later than January 2, 1996''.

     SEC. 1086. OPERATIONAL SUPPORT AIRLIFT AIRCRAFT FLEET.

       (a) Submittal of JCS Report on Aircraft.--Not later than 
     February 1, 1996, the Secretary of Defense shall submit to 
     Congress the report that, as of the date of the enactment of 
     this Act, is in preparation by the Chairman of the Joint 
     Chiefs of Staff on operational support airlift aircraft.
       (b) Content of Report.--(1) The report referred to in 
     subsection (a) shall contain findings and recommendations on 
     the following:
       (A) Requirements for the modernization and safety of the 
     operational support airlift aircraft fleet.
       (B) The disposition of aircraft that would be excess to 
     that fleet upon fulfillment of the requirements referred to 
     in subparagraph (A).
       (C) Plans and requirements for the standardization of the 
     fleet, including plans and requirements for the provision of 
     a single manager for all logistical support and operational 
     requirements.
       (D) Central scheduling of all operational support airlift 
     aircraft.
       (E) Needs of the Department for helicopter support in the 
     National Capital Region, including the acceptable uses of 
     that support.
       (2) In preparing the report, the Chairman of the Joint 
     Chiefs of Staff shall take into account the recommendation of 
     the Commission on Roles and Missions of the Armed Forces to 
     reduce the size of the operational support airlift aircraft 
     fleet.
       (c) Regulations.--(1) Upon completion of the report 
     referred to in subsection (a), the Secretary shall prescribe 
     regulations, consistent with the findings and recommendations 
     set forth in the report, for the operation, maintenance, 
     disposition, and use of operational support airlift aircraft.
       (2) The regulations shall, to the maximum extent 
     practicable, provide for, and encourage the use of, 
     commercial airlines in lieu of the use of such aircraft.
       (3) The regulations shall apply uniformly throughout the 
     Department.
       (4) The regulations shall not require exclusive use of such 
     aircraft for any particular class of government personnel.
       (d) Reductions in Flying Hours.--(1) The Secretary shall 
     ensure that the number of hours flown during fiscal year 1996 
     by operational support airlift aircraft does not exceed the 
     number equal to 85 percent of the number of hours flown 
     during fiscal year 1995 by operational support airlift 
     aircraft.
       (2) The Secretary should ensure that the number of hours 
     flown in the National Capital Region during fiscal year 1996 
     by helicopters of the operational support airlift aircraft 
     fleet does not exceed the number equal to 85 percent of the 
     number of hours flown in the National Capital Region during 
     fiscal year 1995 by helicopters of the operational support 
     airlift aircraft fleet.
       (e) Restriction on Availability of Funds.--Of the funds 
     appropriated pursuant to section 301 for the operation and 
     use of operational support airlift aircraft, not more than 50 
     percent is available for obligation until the Secretary 
     submits to Congress the report referred to in subsection (a).
       (f) Definitions.--In this section:
       (1) The term ``operational support airlift aircraft'' means 
     aircraft of the Department of Defense designated within the 
     Department as operational support airlift aircraft.
       (2) The term ``National Capital Region'' has the meaning 
     given such term in section 2674(f)(2) of title 10, United 
     States Code.

     SEC. 1087. CIVIL RESERVE AIR FLEET.

       Section 9512 of title 10, United States Code, is amended by 
     striking out ``full Civil Reserve Air Fleet'' in subsections 
     (b)(2) and (e) and inserting in lieu thereof ``Civil Reserve 
     Air Fleet''.

     SEC. 1088. DAMAGE OR LOSS TO PERSONAL PROPERTY DUE TO 
                   EMERGENCY EVACUATION OR EXTRAORDINARY 
                   CIRCUMSTANCES.

       (a) Settlement of Claims of Personnel.--Section 3721(b)(1) 
     of title 31, United States Code, is amended by inserting 
     after the first sentence the following: ``If, however, the 
     claim arose from an emergency evacuation or from 
     extraordinary circumstances, the amount settled and paid 
     under the authority of the preceding sentence may exceed 
     $40,000, but may not exceed $100,000.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply to claims arising before, on, or after the date 
     of the enactment of this Act.
       (c) Representments of Previously Presented Claims.--(1) A 
     claim under subsection (b) of section 3721 of title 31, 
     United States Code, that was settled under such section 
     before the date of the enactment of this Act may be 
     represented under such section, as amended by subsection (a), 
     to the head of the agency concerned to recover the amount 
     equal to the difference between the actual amount of the 
     damage or loss and the amount settled and paid under the 
     authority of such section before the date of the enactment of 
     this Act, except that--
       (A) the claim shall be represented in writing within two 
     years after the date of the enactment of this Act;
       (B) a determination of the actual amount of the damage or 
     loss shall have been made by the head of the agency concerned 
     pursuant to settlement of the claim under the authority of 
     such section before the date of the enactment of this Act;
       (C) the claimant shall have proof of the determination 
     referred to in subparagraph (B); and
       (D) the total of all amounts paid in settlement of the 
     claim under the authority of such section may not exceed 
     $100,000.
       (2) Subsection (k) of such section shall not apply to bar 
     representment of a claim described in paragraph (1), but 
     shall apply to such a claim that is represented and settled 
     under that section after the date of the enactment of this 
     Act.

     SEC. 1089. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION 
                   ACTIONS AGAINST DECEASED MEMBERS.

       Section 3711 of title 31, United States Code, is amended by 
     adding at the end the following:
       ``(g)(1) The Secretary of Defense may suspend or terminate 
     an action by the Secretary or by the Secretary of a military 
     department under subsection (a) to collect a claim against 
     the estate of a person who died while serving on active duty 
     as a member of the Army, Navy, Air Force, or Marine Corps if 
     the Secretary determines that, under the circumstances 
     applicable with respect to the deceased person, it is 
     appropriate to do so.
       ``(2) In this subsection, the term `active duty' has the 
     meaning given that term in section 101 of title 10.''.

     SEC. 1090. CHECK CASHING AND EXCHANGE TRANSACTIONS FOR 
                   DEPENDENTS OF UNITED STATES GOVERNMENT 
                   PERSONNEL.

       (a) Authority To Carry Out Transactions.--Subsection (b) of 
     section 3342 of title 31, United States Code, is amended--
       (1) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (4), (5), and (6), respectively; and
       (2) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) a dependent of personnel of the Government, but 
     only--
       ``(A) at a United States installation at which adequate 
     banking facilities are not available; and
       ``(B) in the case of negotiation of negotiable instruments, 
     if the dependent's sponsor authorizes, in writing, the 
     presentation of negotiable instruments to the disbursing 
     official for negotiation.''.
       (b) Pay Offset.--Subsection (c) of such section is 
     amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       (2) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) The amount of any deficiency resulting from cashing a 
     check for a dependent under subsection (b)(3), including any 
     charges assessed against the disbursing official by a 
     financial institution for insufficient funds to pay the 
     check, may be offset from the pay of the dependent's 
     sponsor.''.
       (c) Definitions.--Such section is further amended by adding 
     at the end the following:
       ``(e) Regulations prescribed under subsection (d) shall 
     include regulations that define the terms `dependent' and 
     `sponsor' for the purposes of this section. In the 
     regulations, the term `dependent', with respect to a member 
     of a uniformed service, shall have the meaning given that 
     term in section 401 of title 37.''.
     
[[Page H432]]


     SEC. 1091. DESIGNATION OF NATIONAL MARITIME CENTER.

       (a) Designation of National Maritime Center.--The NAUTICUS 
     building, located at one Waterside Drive, Norfolk, Virginia, 
     shall be known and designated as the ``National Maritime 
     Center''.
       (b) Reference to National Maritime Center.--Any reference 
     in a law, map, regulation, document, paper, or other record 
     of the United States to the building referred to in 
     subsection (a) shall be deemed to be a reference to the 
     ``National Maritime Center''.

     SEC. 1092. SENSE OF CONGRESS REGARDING HISTORIC PRESERVATION 
                   OF MIDWAY ISLANDS.

       (a) Findings.--Congress makes the following findings:
       (1) September 2, 1995, marks the 50th anniversary of the 
     United States victory over Japan in World War II.
       (2) The Battle of Midway proved to be the turning point in 
     the war in the Pacific, as United States Navy forces 
     inflicted such severe losses on the Imperial Japanese Navy 
     during the battle that the Imperial Japanese Navy never again 
     took the offensive against United States or allied forces.
       (3) During the Battle of Midway, an outnumbered force of 
     the United States Navy, consisting of 29 ships and other 
     units of the Armed Forces under the command of Admiral Nimitz 
     and Admiral Spruance, out-maneuvered and out-fought 350 ships 
     of the Imperial Japanese Navy.
       (4) It is in the public interest to erect a memorial to the 
     Battle of Midway that is suitable to express the enduring 
     gratitude of the American people for victory in the battle 
     and to inspire future generations of Americans with the 
     heroism and sacrifice of the members of the Armed Forces who 
     achieved that victory.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the Midway Islands and the surrounding seas deserve to 
     be memorialized;
       (2) the historic structures related to the Battle of Midway 
     should be maintained, in accordance with the National 
     Historic Preservation Act (16 U.S.C. 470-470t), and subject 
     to the availability of appropriations for that purpose.
       (3) appropriate access to the Midway Islands by survivors 
     of the Battle of Midway, their families, and other visitors 
     should be provided in a manner that ensures the public health 
     and safety on the Midway Islands and the conservation of the 
     natural resources of those islands in accordance with 
     existing Federal law.

     SEC. 1093. SENSE OF SENATE REGARDING FEDERAL SPENDING.

       It is the sense of the Senate that in pursuit of a balanced 
     Federal budget, Congress should exercise fiscal restraint, 
     particularly in authorizing spending not requested by the 
     executive branch and in proposing new programs.

     SEC. 1094. EXTENSION OF AUTHORITY FOR VESSEL WAR RISK 
                   INSURANCE.

       Section 1214 of the Merchant Marine Act, 1936 (46 App. 
     U.S.C. 1294), is amended by striking ``June 30, 1995'' and 
     inserting in lieu thereof ``June 30, 2000''.
               TITLE XI--UNIFORM CODE OF MILITARY JUSTICE

     SEC. 1101. SHORT TITLE.

       This title may be cited as the ``Military Justice 
     Amendments of 1995''.

     SEC. 1102. REFERENCES TO UNIFORM CODE OF MILITARY JUSTICE.

       Except as otherwise expressly provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of chapter 47 of title 10, United States Code 
     (the Uniform Code of Military Justice).
                          Subtitle A--Offenses

     SEC. 1111. REFUSAL TO TESTIFY BEFORE COURT-MARTIAL.

       Section 847(b) (article 47(b)) is amended--
       (1) in the first sentence, by inserting ``indictment or'' 
     after ``shall be tried on''; and
       (2) in the second sentence, by striking out ``shall be'' 
     and all that follows and inserting in lieu thereof ``shall be 
     fined or imprisoned, or both, at the court's discretion.''.

     SEC. 1112. FLIGHT FROM APPREHENSION.

       (a) In General.--Section 895 (article 95) is amended to 
     read as follows:

     ``Sec. 895. Art. 95. Resistance, flight, breach of arrest, 
       and escape

       ``Any person subject to this chapter who--
       ``(1) resists apprehension;
       ``(2) flees from apprehension;
       ``(3) breaks arrest; or
       ``(4) escapes from custody or confinement;
     shall be punished as a court-martial may direct.''.
       (b) Clerical Amendment.--The item relating to section 895 
     (article 95) in the table of sections at the beginning of 
     subchapter X is amended to read as follows:

``895. Art. 95. Resistance, flight, breach of arrest, and escape.''.

     SEC. 1113. CARNAL KNOWLEDGE.

       (a) Gender Neutrality.--Subsection (b) of section 920 
     (article 120) is amended to read as follows:
       ``(b) Any person subject to this chapter who, under 
     circumstances not amounting to rape, commits an act of sexual 
     intercourse with a person--
       ``(1) who is not that person's spouse; and
       ``(2) who has not attained the age of sixteen years;
     is guilty of carnal knowledge and shall be punished as a 
     court-martial may direct.''.
       (b) Mistake of Fact.--Such section (article) is further 
     amended by adding at the end the following new subsection:
       ``(d)(1) In a prosecution under subsection (b), it is an 
     affirmative defense that--
       ``(A) the person with whom the accused committed the act of 
     sexual intercourse had at the time of the alleged offense 
     attained the age of twelve years; and
       ``(B) the accused reasonably believed that that person had 
     at the time of the alleged offense attained the age of 
     sixteen years.
       ``(2) The accused has the burden of proving a defense under 
     paragraph (1) by a preponderance of the evidence.''.
                         Subtitle B--Sentences

     SEC. 1121. EFFECTIVE DATE FOR FORFEITURES OF PAY AND 
                   ALLOWANCES AND REDUCTIONS IN GRADE BY SENTENCE 
                   OF COURT-MARTIAL.

       (a) Effective Date of Specified Punishments.--Subsection 
     (a) of section 857 (article 57) is amended to read as 
     follows:
       ``(a)(1) Any forfeiture of pay or allowances or reduction 
     in grade that is included in a sentence of a court-martial 
     takes effect on the earlier of--
       ``(A) the date that is 14 days after the date on which the 
     sentence is adjudged; or
       ``(B) the date on which the sentence is approved by the 
     convening authority.
       ``(2) On application by an accused, the convening authority 
     may defer a forfeiture of pay or allowances or reduction in 
     grade that would otherwise become effective under paragraph 
     (1)(A) until the date on which the sentence is approved by 
     the convening authority. Such a deferment may be rescinded at 
     any time by the convening authority.
       ``(3) A forfeiture of pay or allowances shall be applicable 
     to pay and allowances accruing on and after the date on which 
     the sentence takes effect.
       ``(4) In this subsection, the term `convening authority', 
     with respect to a sentence of a court-martial, means any 
     person authorized to act on the sentence under section 860 of 
     this title (article 60).''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply to a case in which a sentence is adjudged by a 
     court-martial on or after the first day of the first month 
     that begins at least 30 days after the date of the enactment 
     of this Act.

     SEC. 1122. REQUIRED FORFEITURE OF PAY AND ALLOWANCES DURING 
                   CONFINEMENT.

       (a) Effect of Punitive Separation or Confinement for More 
     Than Six Months.--(1) Subchapter VIII is amended by inserting 
     after section 858a (article 58a) the following:

     ``Sec. 858b. Art. 58b. Sentences: forfeiture of pay and 
       allowances during confinement

       ``(a)(1) A court-martial sentence described in paragraph 
     (2) shall result in the forfeiture of pay and allowances due 
     that member during any period of confinement or parole. The 
     forfeiture pursuant to this section shall take effect on the 
     date determined under section 857(a) of this title (article 
     57(a)) and may be deferred as provided in that section. The 
     pay and allowances forfeited, in the case of a general court-
     martial, shall be all pay and allowances due that member 
     during such period and, in the case of a special court-
     martial, shall be two-thirds of all pay and allowances due 
     that member during such period.
       ``(2) A sentence covered by this section is any sentence 
     that includes--
       ``(A) confinement for more than six months or death; or
       ``(B) confinement for six months or less and a dishonorable 
     or bad-conduct discharge or dismissal.
       ``(b) In a case involving an accused who has dependents, 
     the convening authority or other person acting under section 
     860 of this title (article 60) may waive any or all of the 
     forfeitures of pay and allowances required by subsection (a) 
     for a period not to exceed six months. Any amount of pay or 
     allowances that, except for a waiver under this subsection, 
     would be forfeited shall be paid, as the convening authority 
     or other person taking action directs, to the dependents of 
     the accused.
       ``(c) If the sentence of a member who forfeits pay and 
     allowances under subsection (a) is set aside or disapproved 
     or, as finally approved, does not provide for a punishment 
     referred to in subsection (a)(2), the member shall be paid 
     the pay and allowances which the member would have been paid, 
     except for the forfeiture, for the period during which the 
     forfeiture was in effect.''.
       (2) The table of sections at the beginning of subchapter 
     VIII is amended by adding at the end the following new item:

``858b. 58b. Sentences: forfeiture of pay and allowances during 
              confinement.''.

       (b) Applicability.--The section (article) added by the 
     amendment made by subsection (a)(1) shall apply to a case in 
     which a sentence is adjudged by a court-martial on or after 
     the first day of the first month that begins at least 30 days 
     after the date of the enactment of this Act.
       (c) Conforming Amendment.--(1) Section 804 of title 37, 
     United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 15 of 
     such title is amended by striking out the item relating to 
     section 804.

     SEC. 1123. DEFERMENT OF CONFINEMENT.

       (a) Deferment.--Subchapter VIII is amended-- 
     
[[Page H433]]

       (1) by inserting after subsection (c) of section 857 
     (article 57) the following:

     ``Sec. 857a. Art. 57a. Deferment of sentences'';

       (2) by redesignating the succeeding two subsections as 
     subsection (a) and (b);
       (3) in subsection (b), as redesignated by paragraph (2), by 
     striking out ``postpone'' and inserting in lieu thereof 
     ``defer''; and
       (4) by inserting after subsection (b), as redesignated by 
     paragraph (2), the following:
       ``(c) In any case in which a court-martial sentences a 
     person to confinement and the sentence to confinement has 
     been ordered executed, but in which review of the case under 
     section 867(a)(2) of this title (article 67(a)(2)) is 
     pending, the Secretary concerned may defer further service of 
     the sentence to confinement while that review is pending.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by inserting after 
     the item relating to section 857 (article 57) the following 
     new item:

``857a. 57a. Deferment of sentences.''.
              Subtitle C--Pretrial and Post-Trial Actions

     SEC. 1131. ARTICLE 32 INVESTIGATIONS.

       Section 832 (article 32) is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) If evidence adduced in an investigation under this 
     article indicates that the accused committed an uncharged 
     offense, the investigating officer may investigate the 
     subject matter of that offense without the accused having 
     first been charged with the offense if the accused--
       ``(1) is present at the investigation;
       ``(2) is informed of the nature of each uncharged offense 
     investigated; and
       ``(3) is afforded the opportunities for representation, 
     cross-examination, and presentation prescribed in subsection 
     (b).''.

     SEC. 1132. SUBMISSION OF MATTERS TO THE CONVENING AUTHORITY 
                   FOR CONSIDERATION.

       Section 860(b)(1) (article 60(b)(1)) is amended by 
     inserting after the first sentence the following: ``Any such 
     submission shall be in writing.''.

     SEC. 1133. COMMITMENT OF ACCUSED TO TREATMENT FACILITY BY 
                   REASON OF LACK OF MENTAL CAPACITY OR MENTAL 
                   RESPONSIBILITY.

       (a) Applicable Procedures.--(1) Subchapter IX is amended by 
     inserting after section 876a (article 76a) the following:

     ``Sec. 876b. Art. 76b. Lack of mental capacity or mental 
       responsibility: commitment of accused for examination and 
       treatment

       ``(a) Persons Incompetent To Stand Trial.--(1) In the case 
     of a person determined under this chapter to be presently 
     suffering from a mental disease or defect rendering the 
     person mentally incompetent to the extent that the person is 
     unable to understand the nature of the proceedings against 
     that person or to conduct or cooperate intelligently in the 
     defense of the case, the general court-martial convening 
     authority for that person shall commit the person to the 
     custody of the Attorney General.
       ``(2) The Attorney General shall take action in accordance 
     with section 4241(d) of title 18.
       ``(3) If at the end of the period for hospitalization 
     provided for in section 4241(d) of title 18, it is determined 
     that the committed person's mental condition has not so 
     improved as to permit the trial to proceed, action shall be 
     taken in accordance with section 4246 of such title.
       ``(4)(A) When the director of a facility in which a person 
     is hospitalized pursuant to paragraph (2) determines that the 
     person has recovered to such an extent that the person is 
     able to understand the nature of the proceedings against the 
     person and to conduct or cooperate intelligently in the 
     defense of the case, the director shall promptly transmit a 
     notification of that determination to the Attorney General 
     and to the general court-martial convening authority for the 
     person. The director shall send a copy of the notification to 
     the person's counsel.
       ``(B) Upon receipt of a notification, the general court-
     martial convening authority shall promptly take custody of 
     the person unless the person covered by the notification is 
     no longer subject to this chapter. If the person is no longer 
     subject to this chapter, the Attorney General shall take any 
     action within the authority of the Attorney General that the 
     Attorney General considers appropriate regarding the person.
       ``(C) The director of the facility may retain custody of 
     the person for not more than 30 days after transmitting the 
     notifications required by subparagraph (A).
       ``(5) In the application of section 4246 of title 18 to a 
     case under this subsection, references to the court that 
     ordered the commitment of a person, and to the clerk of such 
     court, shall be deemed to refer to the general court-martial 
     convening authority for that person. However, if the person 
     is no longer subject to this chapter at a time relevant to 
     the application of such section to the person, the United 
     States district court for the district where the person is 
     hospitalized or otherwise may be found shall be considered as 
     the court that ordered the commitment of the person.
       ``(b) Persons Found Not Guilty by Reason of Lack of Mental 
     Responsibility.--(1) If a person is found by a court-martial 
     not guilty only by reason of lack of mental responsibility, 
     the person shall be committed to a suitable facility until 
     the person is eligible for release in accordance with this 
     section.
       ``(2) The court-martial shall conduct a hearing on the 
     mental condition in accordance with subsection (c) of section 
     4243 of title 18. Subsections (b) and (d) of that section 
     shall apply with respect to the hearing.
       ``(3) A report of the results of the hearing shall be made 
     to the general court-martial convening authority for the 
     person.
       ``(4) If the court-martial fails to find by the standard 
     specified in subsection (d) of section 4243 of title 18 that 
     the person's release would not create a substantial risk of 
     bodily injury to another person or serious damage of property 
     of another due to a present mental disease or defect--
       ``(A) the general court-martial convening authority may 
     commit the person to the custody of the Attorney General; and
       ``(B) the Attorney General shall take action in accordance 
     with subsection (e) of section 4243 of title 18.
       ``(5) Subsections (f), (g), and (h) of section 4243 of 
     title 18 shall apply in the case of a person hospitalized 
     pursuant to paragraph (4)(B), except that the United States 
     district court for the district where the person is 
     hospitalized shall be considered as the court that ordered 
     the person's commitment.
       ``(c) General Provisions.--(1) Except as otherwise provided 
     in this subsection and subsection (d)(1), the provisions of 
     section 4247 of title 18 apply in the administration of this 
     section.
       ``(2) In the application of section 4247(d) of title 18 to 
     hearings conducted by a court-martial under this section or 
     by (or by order of) a general court-martial convening 
     authority under this section, the reference in that section 
     to section 3006A of such title does not apply.
       ``(d) Applicability.--(1) The provisions of chapter 313 of 
     title 18 referred to in this section apply according to the 
     provisions of this section notwithstanding section 4247(j) of 
     title 18.
       ``(2) If the status of a person as described in section 802 
     of this title (article 2) terminates while the person is, 
     pursuant to this section, in the custody of the Attorney 
     General, hospitalized, or on conditional release under a 
     prescribed regimen of medical, psychiatric, or psychological 
     care or treatment, the provisions of this section 
     establishing requirements and procedures regarding a person 
     no longer subject to this chapter shall continue to apply to 
     that person notwithstanding the change of status.''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by inserting after the item relating to 
     section 876a (article 76a) the following:

``876b. 76b. Lack of mental capacity or mental responsibility: 
              commitment of accused for examination and treatment.''.

       (b) Conforming Amendment.--Section 802 (article 2) is 
     amended by adding at the end the following new subsection:
       ``(e) The provisions of this section are subject to section 
     876b(d)(2) of this title (article 76b(d)(2)).''.
       (c) Effective Date.--Section 876b of title 10, United 
     States Code (article 76b of the Uniform Code of Military 
     Justice), as added by subsection (a), shall take effect at 
     the end of the six-month period beginning on the date of the 
     enactment of this Act and shall apply with respect to charges 
     referred to courts-martial after the end of that period.
                     Subtitle D--Appellate Matters

     SEC. 1141. APPEALS BY THE UNITED STATES.

       (a) Appeals Relating to Disclosure of Classified 
     Information.--Section 862(a)(1) (article 62(a)(1)) is amended 
     to read as follows:
       ``(a)(1) In a trial by court-martial in which a military 
     judge presides and in which a punitive discharge may be 
     adjudged, the United States may appeal the following (other 
     than an order or ruling that is, or that amounts to, a 
     finding of not guilty with respect to the charge or 
     specification):
       ``(A) An order or ruling of the military judge which 
     terminates the proceedings with respect to a charge or 
     specification.
       ``(B) An order or ruling which excludes evidence that is 
     substantial proof of a fact material in the proceeding.
       ``(C) An order or ruling which directs the disclosure of 
     classified information.
       ``(D) An order or ruling which imposes sanctions for 
     nondisclosure of classified information.
       ``(E) A refusal of the military judge to issue a protective 
     order sought by the United States to prevent the disclosure 
     of classified information.
       ``(F) A refusal by the military judge to enforce an order 
     described in subparagraph (E) that has previously been issued 
     by appropriate authority.''.
       (b) Definitions.--Section 801 (article 1) is amended by 
     inserting after paragraph (14) the following new paragraphs:
       ``(15) The term `classified information' means (A) any 
     information or material that has been determined by an 
     official of the United States pursuant to law, an Executive 
     order, or regulation to require protection against 
     unauthorized disclosure for reasons of national security, and 
     (B) any restricted data, as defined in section 11(y) of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).
       ``(16) The term `national security' means the national 
     defense and foreign relations of the United States.''. 
     
[[Page H434]]


     SEC. 1142. REPEAL OF TERMINATION OF AUTHORITY FOR CHIEF 
                   JUSTICE OF THE UNITED STATES TO DESIGNATE 
                   ARTICLE III JUDGES FOR TEMPORARY SERVICE ON 
                   COURT OF APPEALS FOR THE ARMED FORCES.

       Subsection (i) of section 1301 of the National Defense 
     Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
     101-189; 10 U.S.C. 942 note) is repealed.
                       Subtitle E--Other Matters

     SEC. 1151. ADVISORY COMMITTEE ON CRIMINAL LAW JURISDICTION 
                   OVER CIVILIANS ACCOMPANYING THE ARMED FORCES IN 
                   TIME OF ARMED CONFLICT.

       (a) Establishment.--Not later than 45 days after the date 
     of the enactment of this Act, the Secretary of Defense and 
     the Attorney General shall jointly appoint an advisory 
     committee to review and make recommendations concerning the 
     appropriate forum for criminal jurisdiction over civilians 
     accompanying the Armed Forces in the field outside the United 
     States in time of armed conflict.
       (b) Membership.--The committee shall be composed of at 
     least five individuals, including experts in military law, 
     international law, and Federal civilian criminal law. In 
     making appointments to the committee, the Secretary and the 
     Attorney General shall ensure that the members of the 
     committee reflect diverse experiences in the conduct of 
     prosecution and defense functions.
       (c) Duties.--The committee shall do the following:
       (1) Review historical experiences and current practices 
     concerning the use, training, discipline, and functions of 
     civilians accompanying the Armed Forces in the field.
       (2) Based upon such review and other information available 
     to the committee, develop specific recommendations concerning 
     the advisability and feasibility of establishing United 
     States criminal law jurisdiction over persons who as 
     civilians accompany the Armed Forces in the field outside the 
     United States during time of armed conflict not involving a 
     war declared by Congress, including whether such jurisdiction 
     should be established through any of the following means (or 
     a combination of such means depending upon the degree of the 
     armed conflict involved):
       (A) Establishing court-martial jurisdiction over such 
     persons.
       (B) Extending the jurisdiction of the Article III courts to 
     cover such persons.
       (C) Establishing an Article I court to exercise criminal 
     jurisdiction over such persons.
       (3) Develop such additional recommendations as the 
     committee considers appropriate as a result of the review.
       (d) Report.--(1) Not later than December 15, 1996, the 
     advisory committee shall transmit to the Secretary of Defense 
     and the Attorney General a report setting forth its findings 
     and recommendations, including the recommendations required 
     under subsection (c)(2).
       (2) Not later than January 15, 1997, the Secretary of 
     Defense and the Attorney General shall jointly transmit the 
     report of the advisory committee to Congress. The Secretary 
     and the Attorney General may include in the transmittal any 
     joint comments on the report that they consider appropriate, 
     and either such official may include in the transmittal any 
     separate comments on the report that such official considers 
     appropriate.
       (e) Definitions.--For purposes of this section:
       (1) The term ``Article I court'' means a court established 
     under Article I of the Constitution.
       (2) The term ``Article III court'' means a court 
     established under Article III of the Constitution.
       (f) Termination of Committee.--The advisory committee shall 
     terminate 30 days after the date on which the report of the 
     committee is submitted to Congress under subsection (d)(2).

     SEC. 1152. TIME AFTER ACCESSION FOR INITIAL INSTRUCTION IN 
                   THE UNIFORM CODE OF MILITARY JUSTICE.

       Section 937(a)(1) (article 137(a)(1)) is amended by 
     striking out ``within six days'' and inserting in lieu 
     thereof ``within fourteen days''.

     SEC. 1153. TECHNICAL AMENDMENT.

       Section 866(f) (article 66(f)) is amended by striking out 
     ``Courts of Military Review'' both places it appears and 
     inserting in lieu thereof ``Courts of Criminal Appeals''.
 TITLE XII--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET 
                                 UNION

     SEC. 1201. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS.

       (a) In General.--For purposes of section 301 and other 
     provisions of this Act, Cooperative Threat Reduction programs 
     are the programs specified in subsection (b).
       (b) Specified Programs.--The programs referred to in 
     subsection (a) are the following programs with respect to 
     states of the former Soviet Union:
       (1) Programs to facilitate the elimination, and the safe 
     and secure transportation and storage, of nuclear, chemical, 
     and other weapons and their delivery vehicles.
       (2) Programs to facilitate the safe and secure storage of 
     fissile materials derived from the elimination of nuclear 
     weapons.
       (3) Programs to prevent the proliferation of weapons, 
     weapons components, and weapons-related technology and 
     expertise.
       (4) Programs to expand military-to-military and defense 
     contacts.

     SEC. 1202. FISCAL YEAR 1996 FUNDING ALLOCATIONS.

       (a) In General.--Of the amount appropriated pursuant to the 
     authorization of appropriations in section 301 for 
     Cooperative Threat Reduction programs, not more than the 
     following amounts may be obligated for the purposes 
     specified:
       (1) For elimination of strategic offensive weapons in 
     Russia, Ukraine, Belarus, and Kazakhstan, $90,000,000.
       (2) For weapons security in Russia, $42,500,000.
       (3) For the Defense Enterprise Fund, $0.
       (4) For nuclear infrastructure elimination in Ukraine, 
     Belarus, and Kazakhstan, $35,000,000.
       (5) For planning and design of a storage facility for 
     Russian fissile material, $29,000,000.
       (6) For planning and design of a chemical weapons 
     destruction facility in Russia, $73,000,000.
       (7) For activities designated as Defense and Military 
     Contacts/General Support/Training in Russia, Ukraine, 
     Belarus, and Kazakhstan, $10,000,000.
       (8) For activities designated as Other Assessments/Support 
     $20,500,000.
       (b) Limited Authority To Vary Individual Amounts.--(1) If 
     the Secretary of Defense determines that it is necessary to 
     do so in the national interest, the Secretary may, subject to 
     paragraph (2), obligate amounts for the purposes stated in 
     any of the paragraphs of subsection (a) in excess of the 
     amount specified for those purposes in that paragraph, but 
     not in excess of 115 percent of that amount. However, the 
     total amount obligated for the purposes stated in the 
     paragraphs in subsection (a) may not by reason of the use of 
     the authority provided in the preceding sentence exceed the 
     sum of the amounts specified in those paragraphs.
       (2) An obligation for the purposes stated in any of the 
     paragraphs in subsection (a) in excess of the amount 
     specified in that paragraph may be made using the authority 
     provided in paragraph (1) only after--
       (A) the Secretary submits to Congress a notification of the 
     intent to do so together with a complete discussion of the 
     justification for doing so; and
       (B)  15 days have elapsed following the date of the 
     notification.
       (c) Reimbursement of Pay Accounts.--Funds appropriated 
     pursuant to the authorization of appropriations in section 
     301 for Cooperative Threat Reduction programs may be 
     transferred to military personnel accounts for reimbursement 
     of those accounts for the amount of pay and allowances paid 
     to reserve component personnel for service while engaged in 
     any activity under a Cooperative Threat Reduction program.

     SEC. 1203. PROHIBITION ON USE OF FUNDS FOR PEACEKEEPING 
                   EXERCISES AND RELATED ACTIVITIES WITH RUSSIA.

       None of the funds appropriated pursuant to the 
     authorization in section 301 for Cooperative Threat Reduction 
     programs may be obligated or expended for the purpose of 
     conducting with Russia any peacekeeping exercise or other 
     peacekeeping-related activity.

     SEC. 1204. REVISION TO AUTHORITY FOR ASSISTANCE FOR WEAPONS 
                   DESTRUCTION.

       Section 211 of Public Law 102-228 (22 U.S.C. 2551 note) is 
     amended by adding at the end the following new subsection:
       ``(c) As part of a transmission to Congress under 
     subsection (b) of a certification that a proposed recipient 
     of United States assistance under this title is committed to 
     carrying out the matters specified in each of paragraphs (1) 
     through (6) of that subsection, the President shall include a 
     statement setting forth, in unclassified form (together with 
     a classified annex if necessary), the determination of the 
     President, with respect to each such paragraph, as to whether 
     that proposed recipient is at that time in fact carrying out 
     the matter specified in that paragraph.''.

     SEC. 1205. PRIOR NOTICE TO CONGRESS OF OBLIGATION OF FUNDS.

       (a) Annual Requirement.--(1) Not less than 15 days before 
     any obligation of any funds appropriated for any fiscal year 
     for a program specified under section 1201 as a Cooperative 
     Threat Reduction program, the Secretary of Defense shall 
     submit to the congressional committees specified in paragraph 
     (2) a report on that proposed obligation for that program for 
     that fiscal year.
       (2) The congressional committees referred to in paragraph 
     (1) are the following:
       (A) The Committee on Armed Services, the Committee on 
     Foreign Relations, and the Committee on Appropriations of the 
     Senate.
       (B) The Committee on National Security, the Committee on 
     International Relations, and the Committee on Appropriations 
     of the House of Representatives.
       (b) Matters To Be Specified in Reports.--Each such report 
     shall specify--
       (1) the activities and forms of assistance for which the 
     Secretary of Defense plans to obligate funds;
       (2) the amount of the proposed obligation; and
       (3) the projected involvement (if any) of any department or 
     agency of the United States (in addition to the Department of 
     Defense) and of the private sector of the United States in 
     the activities and forms of assistance for which the 
     Secretary of Defense plans to obligate such funds.

     SEC. 1206. REPORT ON ACCOUNTING FOR UNITED STATES ASSISTANCE.

       (a) Report.--(1) The Secretary of Defense shall submit to 
     Congress an annual report on 

[[Page H435]]
     the efforts made by the United States (including efforts through the 
     use of audits, examinations, and on-site inspections) to 
     ensure that assistance provided under Cooperative Threat 
     Reduction programs is fully accounted for and that such 
     assistance is being used for its intended purposes.
       (2) A report shall be submitted under this section not 
     later than January 31 of each year until the Cooperative 
     Threat Reduction programs are completed.
       (b) Information To Be Included.--Each report under this 
     section shall include the following:
       (1) A list of cooperative threat reduction assistance that 
     has been provided before the date of the report.
       (2) A description of the current location of the assistance 
     provided and the current condition of such assistance.
       (3) A determination of whether the assistance has been used 
     for its intended purpose.
       (4) A description of the activities planned to be carried 
     out during the next fiscal year to ensure that cooperative 
     threat reduction assistance provided during that fiscal year 
     is fully accounted for and is used for its intended purpose.
       (c) Comptroller General Assessment.--Not later than 30 days 
     after the date on which a report of the Secretary under 
     subsection (a) is submitted to Congress, the Comptroller 
     General of the United States shall submit to Congress a 
     report giving the Comptroller General's assessment of the 
     report and making any recommendations that the Comptroller 
     General considers appropriate.

     SEC. 1207. LIMITATION ON ASSISTANCE TO NUCLEAR WEAPONS 
                   SCIENTISTS OF FORMER SOVIET UNION.

       Amounts appropriated pursuant to the authorization of 
     appropriations in section 301 for Cooperative Threat 
     Reduction programs may not be obligated for any program 
     established primarily to assist nuclear weapons scientists in 
     states of the former Soviet Union until 30 days after the 
     date on which the Secretary of Defense certifies in writing 
     to Congress that the funds to be obligated will not be used 
     (1) to contribute to the modernization of the strategic 
     nuclear forces of such states, or (2) for research, 
     development, or production of weapons of mass destruction.

     SEC. 1208. LIMITATION RELATING TO OFFENSIVE BIOLOGICAL 
                   WARFARE PROGRAM OF RUSSIA.

       (a) Limitation.--Of the amount appropriated pursuant to the 
     authorization of appropriations in section 301 for 
     Cooperative Threat Reduction programs that is available for 
     the purpose stated in section 1202(a)(6), $60,000,000 may not 
     be obligated or expended until the President submits to 
     Congress either a certification as provided in subsection (b) 
     or a certification as provided in subsection (c).
       (b) Certification With Respect to Offensive Biological 
     Warfare Program of Russia.--A certification under this 
     subsection is a certification by the President of each of the 
     following:
       (1) That Russia is in compliance with its obligations under 
     the Biological Weapons Convention.
       (2) That Russia has agreed with the United States and the 
     United Kingdom on a common set of procedures to govern visits 
     by officials of the United States and United Kingdom to 
     military biological facilities of Russia, as called for under 
     the Joint Statement on Biological Weapons issued by officials 
     of the United States, the United Kingdom, and Russia on 
     September 14, 1992.
       (3) That visits by officials of the United States and 
     United Kingdom to the four declared military biological 
     facilities of Russia have occurred.
       (c) Alternative Certification.--A certification under this 
     subsection is a certification by the President that the 
     President is unable to make a certification under subsection 
     (b).
       (d) Use of Funds Upon Alternative Certification.--If the 
     President makes a certification under subsection (c), the 
     $60,000,000 specified in subsection (a)--
       (1) shall not be available for the purpose stated in 
     section 1202(a)(6); and
       (2) shall be available for activities in Ukraine, 
     Kazakhstan, and Belarus--
       (A) for the elimination of strategic offensive weapons (in 
     addition to the amount specified in section 1202(a)(1)); and
       (B) for nuclear infrastructure elimination (in addition to 
     the amount specified in section 1202(a)(4)).

     SEC. 1209. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS 
                   DESTRUCTION FACILITY.

       (a) Limitation.--Of the amount appropriated pursuant to the 
     authorization of appropriations in section 301 for 
     Cooperative Threat Reduction programs that is available for 
     planning and design of a chemical weapons destruction 
     facility, not more than one-half of such amount may be 
     obligated or expended until the President certifies to 
     Congress the following:
       (1) That the United States and Russia have completed a 
     joint laboratory study to determine the feasibility of an 
     appropriate technology for destruction of chemical weapons of 
     Russia.
       (2) That Russia is making reasonable progress, with the 
     assistance of the United States (if necessary), toward the 
     completion of a comprehensive implementation plan for 
     managing and funding the dismantlement and destruction of 
     Russia's chemical weapons stockpile.
       (3) That the United States and Russia have made substantial 
     progress toward resolution, to the satisfaction of the United 
     States, of outstanding compliance 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 
     nonproduction of chemical weapons and on measures to 
     facilitate the multilateral convention on banning chemical 
     weapons signed on June 1, 1990.
             TITLE XIII--MATTERS RELATING TO OTHER NATIONS
                  Subtitle A--Peacekeeping Provisions

     SEC. 1301. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS 
                   FOR UNITED STATES SHARE OF COSTS OF UNITED 
                   NATIONS PEACEKEEPING ACTIVITIES.

       (a) In General.--Chapter 20 of title 10, United States 
     Code, is amended by inserting after section 404, the 
     following new section:

     ``Sec. 405. Use of Department of Defense funds for United 
       States share of costs of United Nations peacekeeping 
       activities: limitation

       ``(a) Prohibition on Use of Funds.--Funds available to the 
     Department of Defense may not be used to make a financial 
     contribution (directly or through another department or 
     agency of the United States) to the United Nations--
       ``(1) for the costs of a United Nations peacekeeping 
     activity; or
       ``(2) for any United States arrearage to the United 
     Nations.
       ``(b) Application of Prohibition.--The prohibition in 
     subsection (a) applies to voluntary contributions, as well as 
     to contributions pursuant to assessment by the United Nations 
     for the United States share of the costs of a peacekeeping 
     activity.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of subchapter I of such chapter is amended by 
     adding at the end the following new item:

``405. Use of Department of Defense funds for United States share of 
              costs of United Nations peacekeeping activities: 
              limitation.''.
              Subtitle B--Humanitarian Assistance Programs

     SEC. 1311. OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID 
                   PROGRAMS.

       (a) Covered Programs.--For purposes of section 301 and 
     other provisions of this Act, programs of the Department of 
     Defense designated as Overseas Humanitarian, Disaster, and 
     Civic Aid (OHDACA) programs are the programs provided by 
     sections 401, 402, 404, 2547, and 2551 of title 10, United 
     States Code.
       (b) GAO Report.--Not later than March 1, 1996, the 
     Comptroller General of the United States shall provide to the 
     congressional defense committees a report on--
       (1) existing funding mechanisms available to cover the 
     costs associated with the Overseas Humanitarian, Disaster, 
     and Civic Assistance activities through funds provided to the 
     Department of State or the Agency for International 
     Development, and
       (2) if such mechanisms do not exist, actions necessary to 
     institute such mechanisms, including any changes in existing 
     law or regulations.

     SEC. 1312. HUMANITARIAN ASSISTANCE.

       Section 2551 of title 10, United States Code, is amended--
       (1) by striking out subsections (b) and (c);
       (2) by redesignating subsection (d) as subsection (b);
       (3) by striking out subsection (e) and inserting in lieu 
     thereof the following:
       ``(c) Status Reports.--(1) The Secretary of Defense shall 
     submit to the congressional committees specified in 
     subsection (f) an annual report on the provision of 
     humanitarian assistance pursuant to this section for the 
     prior fiscal year. The report shall be submitted each year at 
     the time of the budget submission by the President for the 
     next fiscal year.
       ``(2) Each report required by paragraph (1) shall cover all 
     provisions of law that authorize appropriations for 
     humanitarian assistance to be available from the Department 
     of Defense for the purposes of this section.
       ``(3) Each report under this subsection shall set forth the 
     following information regarding activities during the 
     previous fiscal year:
       ``(A) The total amount of funds obligated for humanitarian 
     relief under this section.
       ``(B) The number of scheduled and completed transportation 
     missions for purposes of providing humanitarian assistance 
     under this section.
       ``(C) A description of any transfer of excess nonlethal 
     supplies of the Department of Defense made available for 
     humanitarian relief purposes under section 2547 of this 
     title. The description shall include the date of the 
     transfer, the entity to whom the transfer is made, and the 
     quantity of items transferred.'';
       (4) by redesignating subsection (f) as subsection (d) and 
     in that subsection striking 

[[Page H436]]
     out ``the Committees on'' and all that follows through ``House of 
     Representatives of the'' and inserting in lieu thereof ``the 
     congressional committees specified in subsection (f) and the 
     Committees on Appropriations of the Senate and House of 
     Representatives of the'';
       (5) by redesignating subsection (g) as subsection (e); and
       (6) by adding at the end the following new subsection:
       ``(f) Congressional Committees.--The congressional 
     committees referred to in subsections (c)(1) and (d) are the 
     following:
       ``(1) The Committee on Armed Services and the Committee on 
     Foreign Relations of the Senate.
       ``(2) The Committee on National Security and the Committee 
     on International Relations of the House of 
     Representatives.''.

     SEC. 1313. LANDMINE CLEARANCE PROGRAM.

       (a) Inclusion in General Humanitarian Assistance Program.--
     Subsection (e) of section 401 of title 10, United States 
     Code, is amended--
       (1) by striking out ``means--'' and inserting in lieu 
     thereof ``means:'';
       (2) by revising the first word in each of paragraphs (1) 
     through (4) so that the first letter of such word is upper 
     case;
       (3) by striking out the semicolon at the end of paragraphs 
     (1) and (2) and inserting in lieu thereof a period;
       (4) by striking out ``; and'' at the end of paragraph (3) 
     and inserting in lieu thereof a period; and
       (5) by adding at the end the following new paragraph:
       ``(5) Detection and clearance of landmines, including 
     activities relating to the furnishing of education, training, 
     and technical assistance with respect to the detection and 
     clearance of landmines.''.
       (b) Limitation on Landmine Assistance by Members of Armed 
     Forces.--Subsection (a) of such section is amended by adding 
     at the end the following new paragraph:
       ``(4) The Secretary of Defense shall ensure that no member 
     of the Armed Forces, while providing assistance under this 
     section that is described in subsection (e)(5)--
       ``(A) engages in the physical detection, lifting, or 
     destroying of landmines (unless the member does so for the 
     concurrent purpose of supporting a United States military 
     operation); or
       ``(B) provides such assistance as part of a military 
     operation that does not involve the Armed Forces.''.
       (c) Repeal.--Section 1413 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
     108 Stat. 2913; 10 U.S.C. 401 note) is repealed.
            Subtitle C--Arms Exports and Military Assistance

     SEC. 1321. DEFENSE EXPORT LOAN GUARANTEES.

       (a) Establishment of Program.--(1) Chapter 148 of title 10, 
     United States Code, is amended by adding at the end the 
     following new subchapter:

            ``SUBCHAPTER VI--DEFENSE EXPORT LOAN GUARANTEES

``Sec.
``2540. Establishment of loan guarantee program.
``2540a. Transferability.
``2540b. Limitations.
``2540c. Fees charged and collected.
``2540d. Definitions.

     ``Sec. 2540. Establishment of loan guarantee program

       ``(a) Establishment.--In order to meet the national 
     security objectives in section 2501(a) of this title, the 
     Secretary of Defense shall establish a program under which 
     the Secretary may issue guarantees assuring a lender against 
     losses of principal or interest, or both principal and 
     interest, arising out of the financing of the sale or long-
     term lease of defense articles, defense services, or design 
     and construction services to a country referred to in 
     subsection (b).
       ``(b) Covered Countries.--The authority under subsection 
     (a) applies with respect to the following countries:
       ``(1) A member nation of the North Atlantic Treaty 
     Organization (NATO).
       ``(2) A country designated as of March 31, 1995, as a major 
     non-NATO ally pursuant to section 2350a(i)(3) of this title.
       ``(3) A country in Central Europe that, as determined by 
     the Secretary of State--
       ``(A) has changed its form of national government from a 
     nondemocratic form of government to a democratic form of 
     government since October 1, 1989; or
       ``(B) is in the process of changing its form of national 
     government from a nondemocratic form of government to a 
     democratic form of government.
       ``(4) A noncommunist country that was a member nation of 
     the Asia Pacific Economic Cooperation (APEC) as of October 
     31, 1993.
       ``(c) Authority Subject to Provisions of Appropriations.--
     The Secretary may guarantee a loan under this subchapter only 
     to such extent or in such amounts as may be provided in 
     advance in appropriations Acts.

     ``Sec. 2540a. Transferability

       ``A guarantee issued under this subchapter shall be fully 
     and freely transferable.

     ``Sec. 2540b. Limitations

       ``(a) Terms and Conditions of Loan Guarantees.--In issuing 
     a guarantee under this subchapter for a medium-term or long-
     term loan, the Secretary may not offer terms and conditions 
     more beneficial than those that would be provided to the 
     recipient by the Export-Import Bank of the United States 
     under similar circumstances in conjunction with the provision 
     of guarantees for nondefense articles and services.
       ``(b) Losses Arising From Fraud or Misrepresentation.--No 
     payment may be made under a guarantee issued under this 
     subchapter for a loss arising out of fraud or 
     misrepresentation for which the party seeking payment is 
     responsible.
       ``(c) No Right of Acceleration.--The Secretary of Defense 
     may not accelerate any guaranteed loan or increment, and may 
     not pay any amount, in respect of a guarantee issued under 
     this subchapter, other than in accordance with the original 
     payment terms of the loan.

     ``Sec. 2540c. Fees charged and collected

       ``(a) Exposure Fees.--The Secretary of Defense shall charge 
     a fee (known as `exposure fee') for each guarantee issued 
     under this subchapter.
       ``(b) Amount of Exposure Fee.--To the extent that the cost 
     of the loan guarantees under this subchapter is not otherwise 
     provided for in appropriations Acts, the fee imposed under 
     subsection (a) with respect to a loan guarantee shall be 
     fixed in an amount that is sufficient to meet potential 
     liabilities of the United States under the loan guarantee.
       ``(c) Payment Terms.--The fee under subsection (a) for each 
     guarantee shall become due as the guarantee is issued. In the 
     case of a guarantee for a loan which is disbursed 
     incrementally, and for which the guarantee is correspondingly 
     issued incrementally as portions of the loan are disbursed, 
     the fee shall be paid incrementally in proportion to the 
     amount of the guarantee that is issued.
       ``(d) Administrative Fees.--The Secretary of Defense shall 
     charge a fee for each guarantee issued under this subchapter 
     to reflect the additional administrative costs of the 
     Department of Defense that are directly attributable to the 
     administration of the program under this subchapter. Such 
     fees shall be credited to a special account in the Treasury. 
     Amounts in the special account shall be available, to the 
     extent and in amounts provided in appropriations Acts, for 
     paying the costs of administrative expenses of the Department 
     of Defense that are attributable to the loan guarantee 
     program under this subchapter.

     ``Sec. 2540d. Definitions

       ``In this subchapter:
       ``(1) The terms `defense article', `defense services', and 
     `design and construction services' have the meanings given 
     those terms in section 47 of the Arms Export Control Act (22 
     U.S.C. 2794).
       ``(2) The term `cost', with respect to a loan guarantee, 
     has the meaning given that term in section 502 of the 
     Congressional Budget and Impoundment Control Act of 1974 (2 
     U.S.C. 661a).''.
       (2) The table of subchapters at the beginning of such 
     chapter is amended by adding at the end the following new 
     item:

``VI. Defense Export Loan Guarantees........................2540''.....

       (b) Report.--Not later than two years after the date of the 
     enactment of this Act, the President shall submit to Congress 
     a report on the loan guarantee program established pursuant 
     to section 2540 of title 10, United States Code, as added by 
     subsection (a). The report shall include--
       (1) an analysis of the costs and benefits of the loan 
     guarantee program; and
       (2) any recommendations for modification of the program 
     that the President considers appropriate, including--
       (A) any recommended addition to the list of countries for 
     which a guarantee may be issued under the program; and
       (B) any proposed legislation necessary to authorize a 
     recommended modification.
       (c) First Year Costs.--The Secretary of Defense shall make 
     available, from amounts appropriated to the Department of 
     Defense for fiscal year 1996 for operations and maintenance, 
     such amounts as may be necessary, not to exceed $500,000, for 
     the expenses of the Department of Defense during fiscal year 
     1996 that are directly attributable to the administration of 
     the defense export loan guarantee program under subchapter VI 
     of chapter 148 of title 10, United States Code, as added by 
     subsection (a).
       (d) Replenishment of Operations and Maintenance Accounts 
     for First Year Costs.--The Secretary of Defense shall, using 
     funds in the special account referred to in section 2540c(d) 
     of title 10, United States Code (as added by subsection (b)), 
     replenish operations and maintenance accounts for amounts 
     expended from such accounts for expenses referred to in 
     subsection (c).

     SEC. 1322. NATIONAL SECURITY IMPLICATIONS OF UNITED STATES 
                   EXPORT CONTROL POLICY.

       (a) Findings.--Congress makes the following findings:
       (1) Export controls remain an important element of the 
     national security policy of the United States.
       (2) It is in the national security interest that United 
     States export control policy be effective in preventing the 
     transfer, to potential adversaries or combatants of the 
     United States, of technology that threatens the national 
     security or defense of the United States.
       (3) It is in the national security interest that the United 
     States monitor aggressively the export of militarily critical 
     technology in order to prevent its diversion to potential 
     adversaries or combatants of the United States.
     
[[Page H437]]

       (4) The Department of Defense relies increasingly on 
     commercial and dual-use technologies, products, and processes 
     to support United States military capabilities and economic 
     strength.
       (5) The maintenance of the military advantage of the United 
     States depends on effective export controls on dual-use items 
     and technologies that are critical to the military 
     capabilities of the Armed Forces.
       (b)  Sense of Congress.--It is the sense of Congress that--
       (1) the Secretary of Defense should evaluate license 
     applications for the export of militarily critical 
     commodities the export of which is controlled for national 
     security reasons if those commodities are to be exported to 
     certain countries of concern;
       (2) the Secretary of Defense should identify the dual-use 
     items and technologies that are critical to the military 
     capabilities of the Armed Forces, including the military use 
     made of such items and technologies;
       (3) upon identification by the Secretary of Defense of the 
     dual-use items and technologies referred to in paragraph (2), 
     the President should ensure effective export controls or use 
     unilateral export controls on dual-use items and technologies 
     that are critical to the military capabilities of the Armed 
     Forces (regardless of the availability of such items or 
     technologies overseas) with respect to the countries that--
       (A) pose a threat to the national security interests of the 
     United States; and
       (B) are not members in good standing of bilateral or 
     multilateral agreements to which the United States is a party 
     on the use of such items and technologies; and
       (4) the President, upon recommendation of the Secretary of 
     Defense, should ensure effective controls on the re-export by 
     other countries of dual-use items and technologies that are 
     critical to the military capabilities of the Armed Forces.
       (c) Annual Report.--(1) Not later than December 1 of each 
     year through 1999, the President shall submit to the 
     committees specified in paragraph (4) a report on the effect 
     of the export control policy of the United States on the 
     national security interests of the United States.
       (2) The report shall include the following:
       (A) A list setting forth each country determined by the 
     Secretary of Defense, the intelligence community, and other 
     appropriate agencies to be a rogue nation or potential 
     adversary or combatant of the United States.
       (B) For each country so listed, a list of--
       (i) the categories of items that the United States 
     currently prohibits for export to the country;
       (ii) the categories of items that may be exported from the 
     United States with an individual license, and in such cases, 
     any licensing conditions normally required and the policy 
     grounds used for approvals and denials; and
       (iii) the categories of items that may be exported under a 
     general license designated ``G-DEST''.
       (C) For each category of items listed under subparagraph 
     (B)--
       (i) a statement whether a prohibition, control, or 
     licensing requirement on a category of items is imposed 
     pursuant to an international multilateral agreement or is 
     unilateral;
       (ii) a statement whether a prohibition, control, or 
     licensing requirement on a category of items is imposed by 
     the other members of an international agreement or is 
     unilateral;
       (iii) when the answer under either clause (i) or clause 
     (ii) is unilateral, a statement concerning the efforts being 
     made to ensure that the prohibition, control, or licensing 
     requirement is made multilateral; and
       (iv) a statement on what impact, if any, a unilateral 
     prohibition is having, or would have, on preventing the rogue 
     nation or potential adversary from attaining the items in 
     question for military purposes.
       (D) A description of United States policy on sharing 
     satellite imagery that has military significance and a 
     discussion of the criteria for determining the imagery that 
     has that significance.
       (E) A description of the relationship between United States 
     policy on the export of space launch vehicle technology and 
     the Missile Technology Control Regime.
       (F) An assessment of United States efforts to support the 
     inclusion of additional countries in the Missile Technology 
     Control Regime.
       (G) An assessment of the ongoing efforts made by potential 
     participant countries in the Missile Technology Control 
     Regime to meet the guidelines established by the Missile 
     Technology Control Regime.
       (H) A discussion of the history of the space launch vehicle 
     programs of other countries, including a discussion of the 
     military origins and purposes of such programs and the 
     current level of military involvement in such programs.
       (3) The President shall submit the report in unclassified 
     form, but may include a classified annex.
       (4) The committees referred to in paragraph (1) are the 
     following:
       (A) The Committee on Armed Services and the Committee on 
     Foreign Relations of the Senate.
       (B) The Committee on National Security and the Committee on 
     International Relations of the House of Representatives.
       (5) For purposes of this subsection, the term ``Missile 
     Technology Control Regime'' means the policy statement 
     announced on April 16, 1987, between the United States, the 
     United Kingdom, the Federal Republic of Germany, France, 
     Italy, Canada, and Japan to restrict sensitive missile-
     relevant transfers based on the Missile Technology Control 
     Regime Annex, and any amendment thereto.

     SEC. 1323. DEPARTMENT OF DEFENSE REVIEW OF EXPORT LICENSES 
                   FOR CERTAIN BIOLOGICAL PATHOGENS.

       (a) Department of Defense Review.--Any application to the 
     Secretary of Commerce for a license for the export of a class 
     2, class 3, or class 4 biological pathogen to a country 
     identified to the Secretary under subsection (c) as a country 
     that is known or suspected to have a biological weapons 
     program shall be referred to the Secretary of Defense for 
     review. The Secretary of Defense shall notify the Secretary 
     of Commerce within 15 days after receipt of an application 
     under the preceding sentence whether the export of such 
     biological pathogen pursuant to the license would be contrary 
     to the national security interests of the United States.
       (b) Denial of License if Contrary to National Security 
     Interest.--A license described in subsection (a) shall be 
     denied by the Secretary of Commerce if it is determined that 
     the export of such biological pathogen to that country would 
     be contrary to the national security interests of the United 
     States.
       (c) Identification of Countries Known or Suspected To Have 
     a Program To Develop Offensive Biological Weapons.--(1) The 
     Secretary of Defense shall determine, for the purposes of 
     this section, those countries that are known or suspected to 
     have a program to develop offensive biological weapons. Upon 
     making such determination, the Secretary shall provide to the 
     Secretary of Commerce a list of those countries.
       (2) The Secretary of Defense shall update the list under 
     paragraph (1) on a regular basis. Whenever a country is added 
     to or deleted from such list, the Secretary shall notify the 
     Secretary of Commerce.
       (3) Determination under this subsection of countries that 
     are known or suspected to have a program to develop offensive 
     biological weapons shall be made in consultation with the 
     Secretary of State and the intelligence community.
       (d) Definition.--For purposes of this section, the term 
     ``class 2, class 3, or class 4 biological pathogen'' means 
     any biological pathogen that is characterized by the Centers 
     for Disease Control as a class 2, class 3, or class 4 
     biological pathogen.

     SEC. 1324. ANNUAL REPORTS ON IMPROVING EXPORT CONTROL 
                   MECHANISMS AND ON MILITARY ASSISTANCE.

       (a) Joint Reports by Secretaries of State and Commerce.--
     Not later than April 1 of each of 1996 and 1997, the 
     Secretary of State and the Secretary of Commerce shall submit 
     to Congress a joint report, prepared in consultation with the 
     Secretary of Defense, relating to United States export-
     control mechanisms. Each such report shall set forth measures 
     to be taken to strengthen United States export-control 
     mechanisms, including--
       (1) steps being taken by each Secretary (A) to share on a 
     regular basis the export licensing watchlist of that 
     Secretary's department with the other Secretary, and (B) to 
     incorporate the export licensing watchlist data received from 
     the other Secretary into the watchlist of that Secretary's 
     department;
       (2) steps being taken by each Secretary to incorporate into 
     the watchlist of that Secretary's department similar data 
     from systems maintained by the Department of Defense and the 
     United States Customs Service; and
       (3) a description of such further measures to be taken to 
     strengthen United States export-control mechanisms as the 
     Secretaries consider to be appropriate.
       (b) Reports by Inspectors General.--(1) Not later than 
     April 1 of each of 1996 and 1997, the Inspector General of 
     the Department of State and the Inspector General of the 
     Department of Commerce shall each submit to Congress a report 
     providing that official's evaluation of the effectiveness 
     during the preceding year of the export licensing watchlist 
     screening process of that official's department. The reports 
     shall be submitted in both a classified and unclassified 
     version.
       (2) Each report of an Inspector General under paragraph (1) 
     shall (with respect to that official's department)--
       (A) set forth the number of export licenses granted to 
     parties on the export licensing watchlist;
       (B) set forth the number of end-use checks performed with 
     respect to export licenses granted to parties on the export 
     licensing watchlist the previous year;
       (C) assess the screening process used in granting an export 
     license when an applicant is on the export licensing 
     watchlist; and
       (D) assess the extent to which the export licensing 
     watchlist contains all relevant information and parties 
     required by statute or regulation.
       (c) Annual Military Assistance Report.--The Foreign 
     Assistance Act of 1961 is amended by inserting after section 
     654 (22 U.S.C. 2414) the following new section:

     ``SEC. 655. ANNUAL REPORT ON MILITARY ASSISTANCE, MILITARY 
                   EXPORTS, AND MILITARY IMPORTS.

       ``(a) Report Required.--Not later than February 1 of each 
     of 1996 and 1997, the President shall transmit to Congress a 
     report concerning military assistance authorized or furnished 
     for the fiscal year ending the previous September 30.
       ``(b) Information Relating to Military Assistance and 
     Military Exports.--Each 

[[Page H438]]
     such report shall show the aggregate dollar value and quantity of 
     defense articles (including excess defense articles) and 
     defense services, and of military education and training, 
     authorized or furnished by the United States to each foreign 
     country and international organization. The report shall 
     specify, by category, whether those articles and services, 
     and that education and training, were furnished by grant 
     under chapter 2 or chapter 5 of part II of this Act or by 
     sale under chapter 2 of the Arms Export Control Act or were 
     authorized by commercial sale licensed under section 38 of 
     the Arms Export Control Act.
       ``(c) Information Relating to Military Imports.--Each such 
     report shall also include the total amount of military items 
     of non-United States manufacture that were imported into the 
     United States during the fiscal year covered by the report. 
     The report shall show the country of origin, the type of item 
     being imported, and the total amount of items.''.

     SEC. 1325. REPORT ON PERSONNEL REQUIREMENTS FOR CONTROL OF 
                   TRANSFER OF CERTAIN WEAPONS.

       Not later than 30 days after the date of the enactment of 
     this Act, the Secretary of Defense and the Secretary of 
     Energy shall submit to the committees of Congress referred to 
     in subsection (c) of section 1154 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     107 Stat. 1761) the report required under subsection (a) of 
     that section. The Secretary of Defense and the Secretary of 
     Energy shall include with the report an explanation of the 
     failure of such Secretaries to submit the report in 
     accordance with such subsection (a) and with all other 
     previous requirements for the submittal of the report.
 Subtitle D--Burdensharing and Other Cooperative Activities Involving 
                            Allies and NATO

     SEC. 1331. ACCOUNTING FOR BURDENSHARING CONTRIBUTIONS.

       (a) Authority To Manage Contributions in Local Currency, 
     Etc.--Subsection (b) of section 2350j of title 10, United 
     States Code, is amended to read as follows:
       ``(b) Accounting.--Contributions accepted under subsection 
     (a) which are not related to security assistance may be 
     accepted, managed, and expended in dollars or in the currency 
     of the host nation (or, in the case of a contribution from a 
     regional organization, in the currency in which the 
     contribution was provided). Any such contribution shall be 
     placed in an account established for such purpose and shall 
     remain available until expended for the purposes specified in 
     subsection (c). The Secretary of Defense shall establish a 
     separate account for such purpose for each country or 
     regional organization from which such contributions are 
     accepted under subsection (a).''.
       (b) Conforming Amendment.--Subsection (d) of such section 
     is amended by striking out ``credited under subsection (b) to 
     an appropriation account of the Department of Defense'' and 
     inserting in lieu thereof ``placed in an account established 
     under subsection (b)''.
       (c) Technical Amendment.--Such section is further amended--
       (1) in subsection (e)(1), by striking out ``a report to the 
     congressional defense committees'' and inserting in lieu 
     thereof ``to the congressional committees specified in 
     subsection (g) a report''; and
       (2) by adding at the end the following new subsection:
       ``(g) Congressional Committees.--The congressional 
     committees referred to in subsection (e)(1) are--
       ``(1) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(2) the Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.

     SEC. 1332. AUTHORITY TO ACCEPT CONTRIBUTIONS FOR EXPENSES OF 
                   RELOCATION WITHIN HOST NATION OF UNITED STATES 
                   ARMED FORCES OVERSEAS.

       (a) In General.--(1) Subchapter II of chapter 138 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2350k. Relocation within host nation of elements of 
       armed forces overseas

       ``(a) Authority To Accept Contributions.--The Secretary of 
     Defense may accept contributions from any nation because of 
     or in support of the relocation of elements of the armed 
     forces from or to any location within that nation. Such 
     contributions may be accepted in dollars or in the currency 
     of the host nation. Any such contribution shall be placed in 
     an account established for such purpose and shall remain 
     available until expended for the purposes specified in 
     subsection (b). The Secretary shall establish a separate 
     account for such purpose for each country from which such 
     contributions are accepted.
       ``(b) Use of Contributions.--The Secretary may use a 
     contribution accepted under subsection (a) only for payment 
     of costs incurred in connection with the relocation 
     concerning which the contribution was made. Those costs 
     include the following:
       ``(1) Design and construction services, including 
     development and review of statements of work, master plans 
     and designs, acquisition of construction, and supervision and 
     administration of contracts relating thereto.
       ``(2) Transportation and movement services, including 
     packing, unpacking, storage, and transportation.
       ``(3) Communications services, including installation and 
     deinstallation of communications equipment, transmission of 
     messages and data, and rental of transmission capability.
       ``(4) Supply and administration, including acquisition of 
     expendable office supplies, rental of office space, budgeting 
     and accounting services, auditing services, secretarial 
     services, and translation services.
       ``(5) Personnel costs, including salary, allowances and 
     overhead of employees whether full-time or part-time, 
     temporary or permanent (except for military personnel), and 
     travel and temporary duty costs.
       ``(6) All other clearly identifiable expenses directly 
     related to relocation.
       ``(c) Method of Contribution.--Contributions may be 
     accepted in any of the following forms:
       ``(1) Irrevocable letter of credit issued by a financial 
     institution acceptable to the Treasurer of the United States.
       ``(2) Drawing rights on a commercial bank account 
     established and funded by the host nation, which account is 
     blocked such that funds deposited cannot be withdrawn except 
     by or with the approval of the United States.
       ``(3) Cash, which shall be deposited in a separate trust 
     fund in the United States Treasury pending expenditure and 
     which shall accrue interest in accordance with section 9702 
     of title 31.
       ``(d) Annual Report to Congress.--Not later than 30 days 
     after the end of each fiscal year, the Secretary shall submit 
     to Congress a report specifying--
       ``(1) the amount of the contributions accepted by the 
     Secretary during the preceding fiscal year under subsection 
     (a) and the purposes for which the contributions were made; 
     and
       ``(2) the amount of the contributions expended by the 
     Secretary during the preceding fiscal year and the purposes 
     for which the contributions were expended.''.
       (2) The table of sections at the beginning of subchapter II 
     of chapter 138 of such title is amended by adding at the end 
     the following new item:

``2350k. Relocation within host nation of elements of armed forces 
              overseas.''.

       (b) Effective Date.--Section 2350k of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     the date of the enactment of this Act and shall apply to 
     contributions for relocation of elements of the Armed Forces 
     in or to any nation received on or after such date.

     SEC. 1333. REVISED GOAL FOR ALLIED SHARE OF COSTS FOR UNITED 
                   STATES INSTALLATIONS IN EUROPE.

       Section 1304(a) of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2890) is 
     amended--
       (1) by inserting ``(1)'' after ``so that''; and
       (2) by inserting before the period at the end the 
     following: ``, and (2) by September 30, 1997, those nations 
     have assumed 42.5 percent of such costs''.

     SEC. 1334. EXCLUSION OF CERTAIN FORCES FROM EUROPEAN END 
                   STRENGTH LIMITATION.

       (a) Exclusion of Members Performing Duties Under Military-
     To-Military Contact Program.--Paragraph (3) of section 
     1002(c) of the Department of Defense Authorization Act, 1985 
     (22 U.S.C. 1928 note) is amended to read as follows:
       ``(3) For purposes of this subsection, the following 
     members of the Armed Forces are excluded in calculating the 
     end strength level of members of the Armed Forces of the 
     United States assigned to permanent duty ashore in European 
     member nations of NATO:
       ``(A) Members assigned to permanent duty ashore in Iceland, 
     Greenland, and the Azores.
       ``(B) Members performing duties in Europe for more than 179 
     days under a military-to-military contact program under 
     section 168 of title 10, United States Code.''.

     SEC. 1335. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS 
                   WITH NATO ORGANIZATIONS.

       Section 2350b(e) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1), by inserting ``or a NATO 
     organization'' after ``a participant (other than the United 
     States)''; and
       (2) in paragraph (2), by striking out ``a cooperative 
     project'' and inserting in lieu thereof ``such a cooperative 
     project or a NATO organization''.

     SEC. 1336. SUPPORT SERVICES FOR THE NAVY AT THE PORT OF 
                   HAIFA, ISRAEL.

       (a) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense should promptly seek to undertake 
     such actions as are necessary--
       (1) to ensure that suitable port services are available to 
     the Navy at the Port of Haifa, Israel; and
       (2) to ensure the availability to the Navy of suitable 
     services at that port in light of the continuing increase in 
     commercial activities at the port.
       (b) Report.--Not later than 30 days after the date of the 
     enactment of this Act, the Secretary of the Navy shall submit 
     to Congress a report on the availablity of port services for 
     the Navy in the eastern Mediterranean Sea region. The report 
     shall specify--
       (1) the services required by the Navy when calling at the 
     port of Haifa, Israel; and
       (2) the availability of those services at ports elsewhere 
     in the region.
     
[[Page H439]]

                       Subtitle E--Other Matters

     SEC. 1341. PROHIBITION ON FINANCIAL ASSISTANCE TO TERRORIST 
                   COUNTRIES.

       (a) Prohibition.--Subchapter I of chapter 134 of title 10, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 2249a. Prohibition on providing financial assistance 
       to terrorist countries

       ``(a) Prohibition.--Funds available to the Department of 
     Defense may not be obligated or expended to provide financial 
     assistance to--
       ``(1) any country with respect to which the Secretary of 
     State has made a determination under section 6(j)(1)(A) of 
     the Export Administration Act of 1979 (50 App. 2405(j));
       ``(2) any country identified in the latest report submitted 
     to Congress under section 140 of the Foreign Relations 
     Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 
     2656f), as providing significant support for international 
     terrorism; or
       ``(3) any other country that, as determined by the 
     President--
       ``(A) grants sanctuary from prosecution to any individual 
     or group that has committed an act of international 
     terrorism; or
       ``(B) otherwise supports international terrorism.
       ``(b) Waiver.--(1) The President may waive the application 
     of subsection (a) to a country if the President determines--
       ``(A) that it is in the national security interests of the 
     United States to do so; or
       ``(B) that the waiver should be granted for humanitarian 
     reasons.
       ``(2) The President shall--
       ``(A) notify the Committee on Armed Services and the 
     Committee on Foreign Relations of the Senate and the 
     Committee on National Security and the Committee on 
     International Relations of the House of Representatives at 
     least 15 days before the waiver takes effect; and
       ``(B) publish a notice of the waiver in the Federal 
     Register.
       ``(c) Definition.--In this section, the term `international 
     terrorism' has the meaning given that term in section 
     140(d) of the Foreign Relations Authorization Act, Fiscal 
     Years 1988 and 1989 (22 U.S.C. 2656f(d)).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of subchapter I of such chapter is amended by 
     adding at the end the following:
``2249a. Prohibition on providing financial assistance to terrorist 
              countries.''.

     SEC. 1342. JUDICIAL ASSISTANCE TO THE INTERNATIONAL TRIBUNAL 
                   FOR YUGOSLAVIA AND TO THE INTERNATIONAL 
                   TRIBUNAL FOR RWANDA.

       (a) Surrender of Persons.--
       (1) Application of united states extradition laws.--Except 
     as provided in paragraphs (2) and (3), the provisions of 
     chapter 209 of title 18, United States Code, relating to the 
     extradition of persons to a foreign country pursuant to a 
     treaty or convention for extradition between the United 
     States and a foreign government, shall apply in the same 
     manner and extent to the surrender of persons, including 
     United States citizens, to--
       (A) the International Tribunal for Yugoslavia, pursuant to 
     the Agreement Between the United States and the International 
     Tribunal for Yugoslavia; and
       (B) the International Tribunal for Rwanda, pursuant to the 
     Agreement Between the United States and the International 
     Tribunal for Rwanda.
       (2) Evidence on hearings.--For purposes of applying section 
     3190 of title 18, United States Code, in accordance with 
     paragraph (1), the certification referred to in that section 
     may be made by the principal diplomatic or consular officer 
     of the United States resident in such foreign countries where 
     the International Tribunal for Yugoslavia or the 
     International Tribunal for Rwanda may be permanently or 
     temporarily situated.
       (3) Payment of fees and costs.--(A) The provisions of the 
     Agreement Between the United States and the International 
     Tribunal for Yugoslavia and of the Agreement Between the 
     United States and the International Tribunal for Rwanda shall 
     apply in lieu of the provisions of section 3195 of title 18, 
     United States Code, with respect to the payment of expenses 
     arising from the surrender by the United States of a person 
     to the International Tribunal for Yugoslavia or the 
     International Tribunal for Rwanda, respectively, or from any 
     proceedings in the United States relating to such surrender.
       (B) The authority of subparagraph (A) may be exercised only 
     to the extent and in the amounts provided in advance in 
     appropriations Acts.
       (4) Nonapplicability of the federal rules.--The Federal 
     Rules of Evidence and the Federal Rules of Criminal Procedure 
     do not apply to proceedings for the surrender of persons to 
     the International Tribunal for Yugoslavia or the 
     International Tribunal for Rwanda.
       (b) Assistance to Foreign and International Tribunals and 
     to Litigants Before Such Tribunals.--Section 1782(a) of title 
     28, United States Code, is amended by inserting in the first 
     sentence after ``foreign or international tribunal'' the 
     following: ``, including criminal investigations conducted 
     before formal accusation''.
       (c) Definitions.--For purposes of this section:
       (1) International tribunal for yugoslavia.--The term 
     ``International Tribunal for Yugoslavia'' means the 
     International Tribunal for the Prosecution of Persons 
     Responsible for Serious Violations of International 
     Humanitarian Law in the Territory of the Former Yugoslavia, 
     as established by United Nations Security Council Resolution 
     827 of May 25, 1993.
       (2) International tribunal for rwanda.--The term 
     ``International Tribunal for Rwanda'' means the International 
     Tribunal for the Prosecution of Persons Responsible for 
     Genocide and Other Serious Violations of International 
     Humanitarian Law Committed in the Territory of Rwanda and 
     Rwandan Citizens Responsible for Genocide and Other Such 
     Violations Committed in the Territory of Neighboring States, 
     as established by United Nations Security Council Resolution 
     955 of November 8, 1994.
       (3) Agreement between the united states and the 
     international tribunal for yugoslavia.--The term ``Agreement 
     Between the United States and the International Tribunal for 
     Yugoslavia'' means the Agreement on Surrender of Persons 
     Between the Government of the United States and the 
     International Tribunal for the Prosecution of Persons 
     Responsible for Serious Violations of International Law in 
     the Territory of the Former Yugoslavia, signed at The Hague, 
     October 5, 1994.
       (4) Agreement between the united states and the 
     international tribunal for rwanda.--The term ``Agreement 
     between the United States and the International Tribunal for 
     Rwanda'' means the Agreement on Surrender of Persons Between 
     the Government of the United States and the International 
     Tribunal for the Prosecution of Persons Responsible for 
     Genocide and Other Serious Violations of International 
     Humanitarian Law Committed in the Territory of Rwanda and 
     Rwandan Citizens Responsible for Genocide and Other Such 
     Violations Committed in the Territory of Neighboring States, 
     signed at The Hague, January 24, 1995.

     SEC. 1343. SEMIANNUAL REPORTS CONCERNING UNITED STATES-
                   PEOPLE'S REPUBLIC OF CHINA JOINT DEFENSE 
                   CONVERSION COMMISSION.

       (a) Reports Required.--The Secretary of Defense shall 
     submit to Congress a semiannual report on the United States-
     People's Republic of China Joint Defense Conversion 
     Commission. Each such report shall include the following:
       (1) A description of the extent to which the activities 
     conducted in, through, or as a result of the Commission could 
     have directly or indirectly assisted, or may directly or 
     indirectly assist, the military modernization efforts of the 
     People's Republic of China.
       (2) A discussion of the activities and operations of the 
     Commission, including--
       (A) United States funding;
       (B) a listing of participating United States officials;
       (C) specification of meeting dates and locations 
     (prospective and retrospective);
       (D) summary of discussions; and
       (E) copies of any agreements reached.
       (3) A discussion of the relationship between the ``defense 
     conversion'' activities of the People's Republic of China and 
     its defense modernization efforts.
       (4) A discussion of the extent to which United States 
     business activities pursued, or proposed to be pursued, under 
     the imprimatur of the Commission, or the importation of 
     western technology in general, contributes to the 
     modernization of China's military industrial base, including 
     any steps taken by the United States or by United States 
     commercial entities to safeguard the technology or 
     intellectual property rights associated with any materials or 
     information transferred.
       (5) An assessment of the benefits derived by the United 
     States from its participation in the Commission, including 
     whether or to what extent United States participation in the 
     Commission has resulted or will result in the following:
       (A) Increased transparency in the current and projected 
     military budget and doctrine of the People's Republic of 
     China.
       (B) Improved behavior and cooperation by the People's 
     Republic of China in the areas of missile and nuclear 
     proliferation.
       (C) Increased transparency in the plans of the People's 
     Republic of China's for nuclear and missile force 
     modernization and testing.
       (6) Efforts undertaken by the Secretary of Defense to--
       (A) establish a list of enterprises controlled by the 
     People's Liberation Army, including those which have been 
     successfully converted to produce products solely for 
     civilian use; and
       (B) provide estimates of the total revenues of those 
     enterprises.
       (7) A description of current or proposed mechanisms for 
     improving the ability of the United States to track the flow 
     of revenues from the enterprises specified on the list 
     established under paragraph (6)(A).
       (b) Submittal of Reports.--A report shall be submitted 
     under subsection (a) not later than August 1 of each year 
     with respect to the first six months of that year and shall 
     be submitted not later than February 1 of each year with 
     respect to the last six months of the preceding year. The 
     first report under such subsection shall be submitted not 
     less than 60 days after the date of the enactment of this Act 
     and shall apply with respect to the six-month period 
     preceding the date of the enactment of this Act.
       (c) Final Report Upon Termination of Commission.--Upon the 
     termination of the United States-People's Republic of China 
     Joint Defense Conversion Commission, the 

[[Page H440]]
     Secretary of Defense shall submit a final report under this section 
     covering the period from the end of the period covered by the 
     last such report through the termination of the Commission, 
     and subsection (a) shall cease to apply after the submission 
     of such report.
                    TITLE XIV--ARMS CONTROL MATTERS

     SEC. 1401. REVISION OF DEFINITION OF LANDMINE FOR PURPOSES OF 
                   LANDMINE EXPORT MORATORIUM.

       Section 1423(d) of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1832) is 
     amended--
       (1) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C), respectively;
       (2) in subparagraph (C), as so redesignated, by striking 
     out ``by remote control or'';
       (3) by inserting ``(1)'' before ``For purposes of''; and
       (4) by adding at the end the following new paragraph:
       ``(2) The term does not include command detonated 
     antipersonnel land mines (such as the M18A1 `Claymore' 
     mine).''.

     SEC. 1402. REPORTS ON MORATORIUM ON USE BY ARMED FORCES OF 
                   ANTIPERSONNEL LANDMINES.

       Not later than April 30 of each of 1996, 1997, and 1998, 
     the Chairman of the Joint Chiefs of Staff shall submit to the 
     congressional defense committees a report on the projected 
     effects of a moratorium on the defensive use of antipersonnel 
     mines and antitank mines by the Armed Forces. The report 
     shall include a discussion of the following matters:
       (1) The extent to which current doctrine and practices of 
     the Armed Forces on the defensive use of antipersonnel mines 
     and antitank mines adhere to applicable international law.
       (2) The effects that a moratorium would have on the 
     defensive use of the current United States inventory of 
     remotely delivered, self-destructing antitank systems, 
     antipersonnel mines, and antitank mines.
       (3) The reliability of the self-destructing antipersonnel 
     mines and self-destructing antitank mines of the United 
     States.
       (4) The cost of clearing the antipersonnel minefields 
     currently protecting Naval Station Guantanamo Bay, Cuba, and 
     other United States installations.
       (5) The cost of replacing antipersonnel mines in such 
     minefields with substitute systems such as the Claymore mine, 
     and the level of protection that would be afforded by use of 
     such a substitute.
       (6) The extent to which the defensive use of antipersonnel 
     mines and antitank mines by the Armed Forces is a source of 
     civilian casualties around the world, and the extent to which 
     the United States, and the Department of Defense 
     particularly, contributes to alleviating the illegal and 
     indiscriminate use of such munitions.
       (7) The extent to which the threat to the security of 
     United States forces during operations other than war and 
     combat operations would increase as a result of such a 
     moratorium.

     SEC. 1403. EXTENSION AND AMENDMENT OF COUNTER-PROLIFERATION 
                   AUTHORITIES.

       (a) One-Year Extension of Program.--Section 1505 of the 
     Weapons of Mass Destruction Control Act of 1992 (title XV of 
     Public Law 102-484; 22 U.S.C. 5859a) is amended--
       (1) in subsection (a), by striking out ``during fiscal 
     years 1994 and 1995'';
       (2) in subsection (e)(1), by striking out ``fiscal years 
     1994 and 1995'' and inserting in lieu thereof ``a fiscal year 
     during which the authority of the Secretary of Defense to 
     provide assistance under this section is in effect''; and
       (3) by adding at the end the following new subsection:
       ``(f) Termination of Authority.--The authority of the 
     Secretary of Defense to provide assistance under this section 
     terminates at the close of fiscal year 1996.''.
       (b) Program Authorities.--(1) Subsections (b)(2) and (d)(3) 
     of such section are amended by striking out ``the On-Site 
     Inspection Agency'' and inserting in lieu thereof ``the 
     Department of Defense''.
       (2) Subsection (c)(3) of such section is amended by 
     striking out ``will be counted'' and all that follows and 
     inserting in lieu thereof ``will be counted as discretionary 
     spending in the national defense budget function (function 
     050).''.
       (c) Amount of Assistance.--Subsection (d) of such section 
     is amended--
       (1) in paragraph (1)--
       (A) by striking out ``for fiscal year 1994'' the first 
     place it appears and all that follows through the period at 
     the end of the second sentence and inserting in lieu thereof 
     ``for any fiscal year shall be derived from amounts made 
     available to the Department of Defense for that fiscal 
     year.''; and
       (B) by striking out ``referred to in this paragraph''; and
       (2) in paragraph (3)--
       (A) by striking out ``may not exceed'' and all that follows 
     through ``1995''; and
       (B) by inserting before the period at the end the 
     following: ``, may not exceed $25,000,000 for fiscal year 
     1994, $20,000,000 for fiscal year 1995, or $15,000,000 for 
     fiscal year 1996''.

     SEC. 1404. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF 
                   STRATEGIC NUCLEAR DELIVERY SYSTEMS.

       (a) Sense of Congress.--It is the sense of Congress that, 
     unless and until the START II Treaty enters into force, the 
     Secretary of Defense should not take any action to retire or 
     dismantle, or to prepare to retire or dismantle, any of the 
     following strategic nuclear delivery systems:
       (1) B-52H bomber aircraft.
       (2) Trident ballistic missile submarines.
       (3) Minuteman III intercontinental ballistic missiles.
       (4) Peacekeeper intercontinental ballistic missiles.
       (b) Limitation on Use of Funds.--Funds available to the 
     Department of Defense may not be obligated or expended during 
     fiscal year 1996 for retiring or dismantling, or for 
     preparing to retire or dismantle, any of the strategic 
     nuclear delivery systems specified in subsection (a).

     SEC. 1405. CONGRESSIONAL FINDINGS AND SENSE OF CONGRESS 
                   CONCERNING TREATY VIOLATIONS.

       (a) Reaffirmation of Prior Findings Concerning the 
     Krasnoyarsk Radar.--Congress, noting its previous findings 
     with respect to the large phased-array radar of the Soviet 
     Union known as the ``Krasnoyarsk radar'' stated in paragraphs 
     (1) through (4) of section 902(a) of the National Defense 
     Authorization Act for Fiscal Years 1988 and 1989 (Public Law 
     100-180; 101 Stat. 1135) (and reaffirmed in section 1006(a) 
     of the National Defense Authorization Act for Fiscal Years 
     1990 and 1991 (Public Law 101-189; 103 Stat. 1543)), hereby 
     reaffirms those findings as follows:
       (1) The 1972 Anti-Ballistic Missile Treaty prohibits each 
     party from deploying ballistic missile early warning radars 
     except at locations along the periphery of its national 
     territory and oriented outward.
       (2) The 1972 Anti-Ballistic Missile Treaty prohibits each 
     party from deploying an ABM system to defend its national 
     territory and from providing a base for any such nationwide 
     defense.
       (3) Large phased-array radars were recognized during 
     negotiation of the Anti-Ballistic Missile Treaty as the 
     critical long lead-time element of a nationwide defense 
     against ballistic missiles.
       (4) In 1983 the United States discovered the construction, 
     in the interior of the Soviet Union near the town of 
     Krasnoyarsk, of a large phased-array radar that has 
     subsequently been judged to be for ballistic missile early 
     warning and tracking.
       (b) Further Reference to 1987 Congressional Statements.--
     Congress further notes that in section 902 of the National 
     Defense Authorization Act for Fiscal Years 1988 and 1989 
     (Public Law 100-180; 101 Stat. 1135) Congress also--
       (1) noted that the President had certified that the 
     Krasnoyarsk radar was an unequivocal violation of the 1972 
     Anti-Ballistic Missile Treaty; and
       (2) stated it to be the sense of the Congress that the 
     Soviet Union was in violation of its legal obligation under 
     that treaty.
       (c) Further Reference to 1989 Congressional Statements.--
     Congress further notes that in section 1006(b) of the 
     National Defense Authorization Act for Fiscal Years 1990 and 
     1991 (Public Law 101-189; 103 Stat. 1543) Congress also--
       (1) again noted that in 1987 the President declared that 
     radar to be a clear violation of the 1972 Anti-Ballistic 
     Missile Treaty and noted that on October 23, 1989, the 
     Foreign Minister of the Soviet Union conceded that the 
     Krasnoyarsk radar is a violation of the 1972 Anti-Ballistic 
     Missile Treaty; and
       (2) stated it to be the sense of the Congress that the 
     Soviet Union should dismantle the Krasnoyarsk radar 
     expeditiously and without conditions and that until such 
     radar was completely dismantled it would remain a clear 
     violation of the 1972 Anti-Ballistic Missile Treaty.
       (d) Additional Findings.--Congress also finds, with respect 
     to the Krasnoyarsk radar, that retired Soviet General Y.V. 
     Votintsev, Director of the Soviet National Air Defense Forces 
     from 1967 to 1985, has publicly stated--
       (1) that he was directed by the Chief of the Soviet General 
     staff to locate the large phased-array radar at Krasnoyarsk 
     despite the recognition by Soviet authorities that the 
     location of such a radar at that location would be a clear 
     violation of the 1972 Anti-Ballistic Missile Treaty; and
       (2) that Marshal D.F. Ustinov, Soviet Minister of Defense, 
     threatened to relieve from duty any Soviet officer who 
     continued to object to the construction of a large-phased 
     array radar at Krasnoyarsk.
       (e) Sense of Congress Concerning Soviet Treaty 
     Violations.--It is the sense of Congress that the government 
     of the Soviet Union intentionally violated its legal 
     obligations under the 1972 Anti-Ballistic Missile Treaty in 
     order to advance its national security interests.
       (f) Sense of Congress Concerning Compliance by Russia With 
     Arms Control Obligations.--In light of subsections (a) 
     through (e), it is the sense of Congress that the United 
     States should remain vigilant in ensuring compliance by 
     Russia with its arms control obligations and should, when 
     pursuing future arms control agreements with Russia, bear in 
     mind violations of arms control obligations by the Soviet 
     Union.

     SEC. 1406. SENSE OF CONGRESS ON RATIFICATION OF CHEMICAL 
                   WEAPONS CONVENTION AND START II TREATY.

       (a) Findings.--Congress makes the following findings:
       (1) Proliferation of chemical or nuclear weapons materials 
     poses a danger to United States national security, and the 
     threat or use of such materials by terrorists would directly 
     threaten United States citizens at home and abroad.
     
[[Page H441]]

       (2) Events such as the March 1995 terrorist release of a 
     chemical nerve agent in the Tokyo subway, the threatened use 
     of chemical weapons during the 1991 Persian Gulf War, and the 
     widespread use of chemical weapons during the Iran-Iraq 
     War of the 1980's are all potent reminders of the menace 
     posed by chemical weapons, of the fact that the threat of 
     chemical weapons is not sufficiently addressed, and of the 
     need to outlaw the development, production, and possession 
     of chemical weapons.
       (3) The Chemical Weapons Convention negotiated and signed 
     by President Bush would make it more difficult for would-be 
     proliferators, including terrorists, to acquire or use 
     chemical weapons, if ratified and fully implemented, as 
     signed, by all signatories.
       (4) United States military authorities, including Chairman 
     of the Joint Chiefs of Staff General John Shalikashvili, have 
     stated that United States military forces will deter and 
     respond to chemical weapons threats with a robust chemical 
     defense and an overwhelming superior conventional response, 
     as demonstrated in the Persian Gulf War, and have testified 
     in support of the ratification of the Chemical Weapons 
     Convention.
       (5) The United States intelligence community has testified 
     that the Convention will provide new and important sources of 
     information, through regular data exchanges and routine and 
     challenge inspections, to improve the ability of the United 
     States to assess the chemical weapons status in countries of 
     concern.
       (6) The Convention has not entered into force for lack of 
     the requisite number of ratifications.
       (7) Russia has signed the Convention, but has not yet 
     ratified it.
       (8) There have been reports by Russian sources of continued 
     Russian production and testing of chemical weapons, including 
     a statement by a spokesman of the Russian Ministry of Defense 
     on December 5, 1994, that ``We cannot say that all chemical 
     weapons production and testing has stopped altogether.''.
       (9) The Convention will impose a legally binding obligation 
     on Russia and other nations that possess chemical weapons and 
     that ratify the Convention to cease offensive chemical 
     weapons activities and to destroy their chemical weapons 
     stockpiles and production facilities.
       (10) The United States must be prepared to exercise fully 
     its rights under the Convention, including the request of 
     challenge inspections when warranted, and to exercise 
     leadership in pursuing punitive measures against violators of 
     the Convention, when warranted.
       (11) The United States should strongly encourage full 
     implementation at the earliest possible date of the terms and 
     conditions of the United States-Russia bilateral chemical 
     weapons destruction agreement signed in 1990.
       (12) The START II Treaty negotiated and signed by President 
     Bush would help reduce the danger of potential proliferators, 
     including terrorists, acquiring nuclear warheads and 
     materials, and would contribute to United States-Russian 
     bilateral efforts to secure and dismantle nuclear warheads, 
     if ratified and fully implemented as signed by both parties.
       (13) It is in the national security interest of the United 
     States to take effective steps to make it more difficult for 
     proliferators or would-be terrorists to obtain chemical or 
     nuclear materials for use in weapons.
       (14) The President has urged prompt Senate action on, and 
     advice and consent to ratification of, the START II Treaty 
     and the Chemical Weapons Convention.
       (15) The Chairman of the Joint Chiefs of Staff has 
     testified to Congress that ratification and full 
     implementation of both treaties by all parties is in the 
     United States national interest and has strongly urged prompt 
     Senate advice and consent to their ratification.
       (b) Sense of Congress.--It is the sense of Congress that 
     the United States, Russia, and all other parties to the START 
     II Treaty and the Chemical Weapons Convention should promptly 
     ratify and fully implement, as negotiated, both treaties.

     SEC. 1407. IMPLEMENTATION OF ARMS CONTROL AGREEMENTS.

       (a) Funding.--Of the amounts appropriated pursuant to 
     authorizations in sections 102, 103, 104, 201, and 301, the 
     Secretary of Defense may use an amount not to exceed 
     $239,941,000 for implementing arms control agreements to 
     which the United States is a party.
       (b) Limitation.--(1) Funds made available pursuant to 
     subsection (a) for the costs of implementing an arms control 
     agreement may not (except as provided in paragraph (2)) be 
     used to reimburse expenses incurred by any other party to the 
     agreement for which (without regard to any executive 
     agreement or any policy not part of an arms control 
     agreement)--
       (A) the other party is responsible under the terms of the 
     arms control agreement; and
       (B) the United States has no responsibility under the 
     agreement.
       (2) The limitation in paragraph (1) does not apply to a use 
     of funds to carry out an arms control expenses reimbursement 
     policy of the United States described in subsection (c).
       (c) Covered Arms Control Expenses Reimbursement Policies.--
     Subsection (b)(2) applies to a policy of the United States to 
     reimburse expenses incurred by another party to an arms 
     control agreement if--
       (1) the policy does not modify any obligation imposed by 
     the arms control agreement;
       (2) the President--
       (A) issued or approved the policy before the date of the 
     enactment of this Act; or
       (B) entered into an agreement on the policy with the 
     government of another country or approved an agreement on the 
     policy entered into by an official of the United States and 
     the government of another country; and
       (3) the President has notified the designated congressional 
     committees of the policy or the policy agreement (as the case 
     may be), in writing, at least 30 days before the date on 
     which the President issued or approved the policy or has 
     entered into or approved the policy agreement.
       (d) Definitions.--For the purposes of this section:
       (1) The term ``arms control agreement'' means an arms 
     control treaty or other form of international arms control 
     agreement.
       (2) The term ``executive agreement'' means an international 
     agreement entered into by the President that is not 
     authorized by law or entered into as a Treaty to which the 
     Senate has given its advice and consent to ratification.
       (3) The term ``designated congressional committees'' means 
     the following:
       (A) The Committee on Foreign Relations, the Committee on 
     Armed Services, and the Committee on Appropriations of the 
     Senate.
       (B) The Committee on International Relations, the Committee 
     on National Security, and the Committee on Appropriations of 
     the House of Representatives.

     SEC. 1408. IRAN AND IRAQ ARMS NONPROLIFERATION.

       (a) Sanctions Against Transfers of Persons.--Section 
     1604(a) of the Iran-Iraq Arms Non-Proliferation Act of 1992 
     (title XVI of Public Law 102-484; 50 U.S.C. 1701 note) is 
     amended by inserting ``to acquire chemical, biological, or 
     nuclear weapons or'' before ``to acquire''.
       (b) Sanctions Against Transfers of Foreign Countries.--
     Section 1605(a) of such Act is amended by inserting ``to 
     acquire chemical, biological, or nuclear weapons or'' before 
     ``to acquire''.
       (c) Clarification of United States Assistance.--
     Subparagraph (A) of section 1608(7) of such Act is amended to 
     read as follows:
       ``(A) any assistance under the Foreign Assistance Act of 
     1961 (22 U.S.C. 2151 et seq.), other than urgent humanitarian 
     assistance or medicine;''.
       (d) Notification of Certain Waivers Under MTCR 
     Procedures.--Section 73(e)(2) of the Arms Export Control Act 
     (22 U.S.C. 2797b(e)(2)) is amended--
       (1) by striking out ``the Congress'' and inserting in lieu 
     thereof ``the Committee on Armed Services and the Committee 
     on Foreign Relations of the Senate and the Committee on 
     National Security and the Committee on International 
     Relations of the House of Representatives''; and
       (2) by striking out ``20 working days'' and inserting in 
     lieu thereof ``45 working days''.
              TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

     SEC. 1501. AMENDMENTS RELATED TO RESERVE OFFICER PERSONNEL 
                   MANAGEMENT ACT.

       (a) Public Law 103-337.--The Reserve Officer Personnel 
     Management Act (title XVI of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337)) 
     is amended as follows:
       (1) Section 1624 (108 Stat. 2961) is amended--
       (A) by striking out ``641'' and all that follows through 
     ``(2)'' and inserting in lieu thereof ``620 is amended''; and
       (B) by redesignating as subsection (d) the subsection added 
     by the amendment made by that section.
       (2) Section 1625 (108 Stat. 2962) is amended by striking 
     out ``Section 689'' and inserting in lieu thereof ``Section 
     12320''.
       (3) Section 1626(1) (108 Stat. 2962) is amended by striking 
     out ``(W-5)'' in the second quoted matter therein and 
     inserting in lieu thereof ``, W-5,''.
       (4) Section 1627 (108 Stat. 2962) is amended by striking 
     out ``Section 1005(b)'' and inserting in lieu thereof 
     ``Section 12645(b)''.
       (5) Section 1631 (108 Stat. 2964) is amended--
       (A) in subsection (a), by striking out ``Section 510'' and 
     inserting in lieu thereof ``Section 12102''; and
       (B) in subsection (b), by striking out ``Section 591'' and 
     inserting in lieu thereof ``Section 12201''.
       (6) Section 1632 (108 Stat. 2965) is amended by striking 
     out ``Section 593(a)'' and inserting in lieu thereof 
     ``Section 12203(a)''.
       (7) Section 1635(a) (108 Stat. 2968) is amended by striking 
     out ``section 1291'' and inserting in lieu thereof ``section 
     1691(b)''.
       (8) Section 1671 (108 Stat. 3013) is amended--
       (A) in subsection (b)(3), by striking out ``512, and 517'' 
     and inserting in lieu thereof ``and 512''; and
       (B) in subsection (c)(2), by striking out the comma after 
     ``861'' in the first quoted matter therein.
       (9) Section 1684(b) (108 Stat. 3024) is amended by striking 
     out ``section 14110(d)'' and inserting in lieu thereof 
     ``section 14111(c)''.
       (b) Subtitle E of Title 10.--Subtitle E of title 10, United 
     States Code, is amended as follows:
       (1) The tables of chapters preceding part I and at the 
     beginning of part IV are amended by striking out 
     ``Repayments'' in the item 

[[Page H442]]
     relating to chapter 1609 and inserting in lieu thereof ``Repayment 
     Programs''.
       (2)(A) The heading for section 10103 is amended to read as 
     follows:

     ``Sec. 10103. Basic policy for order into Federal service''.

       (B) The item relating to section 10103 in the table of 
     sections at the beginning of chapter 1003 is amended to read 
     as follows:

``10103. Basic policy for order into Federal service.''.

       (3) The table of sections at the beginning of chapter 1005 
     is amended by striking out the third word in the item 
     relating to section 10142.
       (4) The table of sections at the beginning of chapter 1007 
     is amended--
       (A) by striking out the third word in the item relating to 
     section 10205; and
       (B) by capitalizing the initial letter of the sixth word in 
     the item relating to section 10211.
       (5) The table of sections at the beginning of chapter 1011 
     is amended by inserting ``Sec.'' at the top of the column of 
     section numbers.
       (6) Section 10507 is amended--
       (A) by striking out ``section 124402(b)'' and inserting in 
     lieu thereof ``section 12402(b)''; and
       (B) by striking out ``Air Forces'' and inserting in lieu 
     thereof ``Air Force''.
       (7)(A) Section 10508 is repealed.
       (B) The table of sections at the beginning of chapter 1011 
     is amended by striking out the item relating to section 
     10508.
       (8) Section 10542 is amended by striking out subsection 
     (d).
       (9) Section 12004(a) is amended by striking out ``active-
     status'' and inserting in lieu thereof ``active status''.
       (10) Section 12012 is amended by inserting ``the'' in the 
     section heading before the penultimate word.
       (11)(A) The heading for section 12201 is amended to read as 
     follows:

     ``Sec. 12201. Reserve officers: qualifications for 
       appointment''.

       (B) The item relating to that section in the table of 
     sections at the beginning of chapter 1205 is amended to read 
     as follows:

``12201. Reserve officers: qualifications for appointment.''.

       (12)(A) The heading for section 12209 is amended to read as 
     follows:

     ``Sec. 12209. Officer candidates: enlisted Reserves''.

       (B) The heading for section 12210 is amended to read as 
     follows:

     ``Sec. 12210. Attending Physician to the Congress: reserve 
       grade while so serving''.

       (13)(A) The headings for sections 12211, 12212, 12213, and 
     12214 are amended by inserting ``the'' after ``National Guard 
     of''
       (B) The table of sections at the beginning of chapter 1205 
     is amended by inserting ``the'' in the items relating to 
     sections 12211, 12212, 12213, and 12214 after ``National 
     Guard of''.
       (14) Section 12213(a) is amended by striking out ``section 
     593'' and inserting in lieu thereof ``section 12203''.
       (15) The table of sections at the beginning of chapter 1207 
     is amended by striking out ``promotions'' in the item 
     relating to section 12243 and inserting in lieu thereof 
     ``promotion''.
       (16) The table of sections at the beginning of chapter 1209 
     is amended--
       (A) in the item relating to section 12304, by striking out 
     the colon and inserting in lieu thereof a semicolon; and
       (B) in the item relating to section 12308, by striking out 
     the second, third, and fourth words.
       (17) Section 12307 is amended by striking out ``Ready 
     Reserve'' in the second sentence and inserting in lieu 
     thereof ``Retired Reserve''.
       (18)(A) The table of sections at the beginning of chapter 
     1211 is amended by inserting ``the'' in the items relating to 
     sections 12401, 12402, 12403, and 12404 after ``Army and Air 
     National Guard of''.
       (B) The headings for sections 12402, 12403, and 12404 are 
     amended by inserting ``the'' after ``Army and Air National 
     Guard of''
       (19) Section 12407(b) is amended--
       (A) by striking out ``of those jurisdictions'' and 
     inserting in lieu thereof ``State''; and
       (B) by striking out ``jurisdictions'' and inserting in lieu 
     thereof ``States''.
       (20) Section 12731(f) is amended by striking out ``the date 
     of the enactment of this subsection'' and inserting in lieu 
     thereof ``October 5, 1994,''.
       (21) Section 12731a(c)(3) is amended by inserting a comma 
     after ``Defense Conversion''.
       (22) Section 14003 is amended by inserting ``lists'' in the 
     section heading immediately before the colon.
       (23) The table of sections at the beginning of chapter 1403 
     is amended by striking out ``selection board'' in the item 
     relating to section 14105 and inserting in lieu thereof 
     ``promotion board''.
       (24) The table of sections at the beginning of chapter 1405 
     is amended--
       (A) in the item relating to section 14307, by striking out 
     ``Numbers'' and inserting in lieu thereof ``Number'';
       (B) in the item relating to section 14309, by striking out 
     the colon and inserting in lieu thereof a semicolon; and
       (C) in the item relating to section 14314, by capitalizing 
     the initial letter of the antepenultimate word.
       (25) Section 14315(a) is amended by striking out ``a 
     Reserve officer'' and inserting in lieu thereof ``a reserve 
     officer''.
       (26) Section 14317(e) is amended--
       (A) by inserting ``Officers Ordered to Active Duty in Time 
     of War or National Emergency.--'' after ``(e)''; and
       (B) by striking out ``section 10213 or 644'' and inserting 
     in lieu thereof ``section 123 or 10213''.
       (27) The table of sections at the beginning of chapter 1407 
     is amended--
       (A) in the item relating to section 14506, by inserting 
     ``reserve'' after ``Marine Corps and''; and
       (B) in the item relating to section 14507, by inserting 
     ``reserve'' after ``Removal from the''; and
       (C) in the item relating to section 14509, by inserting 
     ``in grades'' after ``reserve officers''.
       (28) Section 14501(a) is amended by inserting ``Officers 
     Below the Grade of Colonel or Navy Captain.--'' after 
     ``(a)''.
       (29) The heading for section 14506 is amended by inserting 
     a comma after ``Air Force''.
       (30) Section 14508 is amended by striking out ``this'' 
     after ``from an active status under'' in subsections (c) and 
     (d).
       (31) Section 14515 is amended by striking out ``inactive 
     status'' and inserting in lieu thereof ``inactive-status''.
       (32) Section 14903(b) is amended by striking out 
     ``chapter'' and inserting in lieu thereof ``title''.
       (33) The table of sections at the beginning of chapter 1606 
     is amended in the item relating to section 16133 by striking 
     out ``limitations'' and inserting in lieu thereof 
     ``limitation''.
       (34) Section 16132(c) is amended by striking out 
     ``section'' and inserting in lieu thereof ``sections''.
       (35) Section 16135(b)(1)(A) is amended by striking out 
     ``section 2131(a)'' and inserting in lieu thereof ``section 
     16131(a)''.
       (36) Section 18236(b)(1) is amended by striking out 
     ``section 2233(e)'' and inserting in lieu thereof ``section 
     18233(e)''.
       (37) Section 18237 is amended--
       (A) in subsection (a), by striking out ``section 
     2233(a)(1)'' and inserting in lieu thereof ``section 
     18233(a)(1)''; and
       (B) in subsection (b), by striking out ``section 2233(a)'' 
     and inserting in lieu thereof ``section 18233(a)''.
       (c) Other Provisions of Title 10.--Effective as of December 
     1, 1994 (except as otherwise expressly provided), and as if 
     included as amendments made by the Reserve Officer Personnel 
     Management Act (title XVI of Public Law 103-360) as 
     originally enacted, title 10, United States Code, is amended 
     as follows:
       (1) Section 101(d)(6)(B)(i) is amended by striking out 
     ``section 175'' and inserting in lieu thereof ``section 
     10301''.
       (2) Section 114(b) is amended by striking out ``chapter 
     133'' and inserting in lieu thereof ``chapter 1803''.
       (3) Section 115(d) is amended--
       (A) in paragraph (1), by striking out ``section 673'' and 
     inserting in lieu thereof ``section 12302'';
       (B) in paragraph (2), by striking out ``section 673b'' and 
     inserting in lieu thereof ``section 12304''; and
       (C) in paragraph (3), by striking out ``section 3500 or 
     8500'' and inserting in lieu thereof ``section 12406''.
       (4) Section 123(a) is amended--
       (A) by striking out ``281, 592, 1002, 1005, 1006, 1007, 
     1374, 3217, 3218, 3219, 3220, 3352(a) (last sentence),'', 
     ``5414, 5457, 5458, 5506,'', and ``8217, 8218, 8219,''; and
       (B) by striking out ``and 8855'' and inserting in lieu 
     thereof ``8855, 10214, 12003, 12004, 12005, 12007, 12202, 
     12213(a) (second sentence), 12642, 12645, 12646, 12647, 
     12771, 12772, and 12773''.
       (5) Section 582(1) is amended by striking out ``section 
     672(d)'' in subparagraph (B) and ``section 673b'' in 
     subparagraph (D) and inserting in lieu thereof ``section 
     12301(d)'' and ``section 12304'', respectively.
       (6) Section 641(1)(B) is amended by striking out ``10501'' 
     and inserting in lieu thereof ``10502, 10505, 10506(a), 
     10506(b), 10507''.
       (7) The table of sections at the beginning of chapter 39 is 
     amended by striking out the items relating to sections 687 
     and 690.
       (8) Sections 1053(a)(1) and 1064 are amended by striking 
     out ``chapter 67'' and inserting in lieu thereof ``chapter 
     1223''.
       (9) Section 1063(a)(1) is amended by striking out ``section 
     1332(a)(2)'' and inserting in lieu thereof ``section 
     12732(a)(2)''.
       (10) Section 1074b(b)(2) is amended by striking out 
     ``section 673c'' and inserting in lieu thereof ``section 
     12305''.
       (11) Section 1076(b)(2)(A) is amended by striking out 
     ``before the effective date of the Reserve Officer Personnel 
     Management Act'' and inserting in lieu thereof ``before 
     December 1, 1994''.
       (12) Section 1176(b) is amended by striking out ``section 
     1332'' in the matter preceding paragraph (1) and in 
     paragraphs (1) and (2) and inserting in lieu thereof 
     ``section 12732''.
       (13) Section 1208(b) is amended by striking out ``section 
     1333'' and inserting in lieu thereof ``section 12733''.
       (14) Section 1209 is amended by striking out ``section 
     1332'', ``section 1335'', and ``chapter 71'' and inserting in 
     lieu thereof ``section 12732'', ``section 12735'', and 
     ``section 12739'', respectively.
       (15) Section 1407 is amended--
       (A) in subsection (c)(1) and (d)(1), by striking out 
     ``section 1331'' and inserting in lieu thereof ``section 
     12731''; and
       (B) in the heading for paragraph (1) of subsection (d), by 
     striking out ``chapter 67'' and inserting in lieu thereof 
     ``chapter 1223''.
     
[[Page H443]]

       (16) Section 1408(a)(5) is amended by striking out 
     ``section 1331'' and inserting in lieu thereof ``section 
     12731''.
       (17) Section 1431(a)(1) is amended by striking out 
     ``section 1376(a)'' and inserting in lieu thereof ``section 
     12774(a)''.
       (18) Section 1463(a)(2) is amended by striking out 
     ``chapter 67'' and inserting in lieu thereof ``chapter 
     1223''.
       (19) Section 1482(f)(2) is amended by inserting ``section'' 
     before ``12731 of this title''.
       (20) The table of sections at the beginning of chapter 533 
     is amended by striking out the item relating to section 5454.
       (21) Section 2006(b)(1) is amended by striking out 
     ``chapter 106 of this title'' and inserting in lieu thereof 
     ``chapter 1606 of this title''.
       (22) Section 2121(c) is amended by striking out ``section 
     3353, 5600, or 8353'' and inserting in lieu thereof ``section 
     12207'', effective on the effective date specified in section 
     1691(b)(1) of Public Law 103-337.
       (23) Section 2130a(b)(3) is amended by striking out 
     ``section 591'' and inserting in lieu thereof ``section 
     12201''.
       (24) The table of sections at the beginning of chapter 337 
     is amended by striking out the items relating to section 3351 
     and 3352.
       (25) Sections 3850, 6389(c), 6391(c), and 8850 are amended 
     by striking out ``section 1332'' and inserting in lieu 
     thereof ``section 12732''.
       (26) Section 5600 is repealed, effective on the effective 
     date specified in section 1691(b)(1) of Public Law 103-337.
       (27) Section 5892 is amended by striking out ``section 5457 
     or section 5458'' and inserting in lieu thereof ``section 
     12004 or section 12005''.
       (28) Section 6410(a) is amended by striking out ``section 
     1005'' and inserting in lieu thereof ``section 12645''.
       (29) The table of sections at the beginning of chapter 837 
     is amended by striking out the items relating to section 8351 
     and 8352.
       (30) Section 8360(b) is amended by striking out ``section 
     1002'' and inserting in lieu thereof ``section 12642''.
       (31) Section 8380 is amended by striking out ``section 
     524'' in subsections (a) and (b) and inserting in lieu 
     thereof ``section 12011''.
       (32) Sections 8819(a), 8846(a), and 8846(b) are amended by 
     striking out ``sections 1005 and 1006'' and inserting in lieu 
     thereof ``sections 12645 and 12646''.
       (33) Section 8819 is amended by striking out ``section 
     1005'' and ``section 1006'' and inserting in lieu thereof 
     ``section 12645'' and ``section 12646'', respectively.
       (d) Cross References in Other Defense Laws.--
       (1) Section 337(b) of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2717) 
     is amended by inserting before the period at the end the 
     following: ``or who after November 30, 1994, transferred to 
     the Retired Reserve under section 10154(2) of title 10, 
     United States Code, without having completed the years of 
     service required under section 12731(a)(2) of such title for 
     eligibility for retired pay under chapter 1223 of such 
     title''.
       (2) Section 525 of the National Defense Authorization Act 
     for Fiscal Years 1992 and 1993 (Public Law 102-190, 105 Stat. 
     1363) is amended by striking out ``section 690'' and 
     inserting in lieu thereof ``section 12321''.
       (3) Subtitle B of title XLIV of the National Defense 
     Authorization Act for Fiscal Year 1993 (Public Law 102-484; 
     10 U.S.C. 12681 note) is amended--
       (A) in section 4415, by striking out ``section 1331a'' and 
     inserting in lieu thereof ``section 12731a'';
       (B) in subsection 4416--
       (i) in subsection (a), by striking out ``section 1331'' and 
     inserting in lieu thereof ``section 12731'';
       (ii) in subsection (b)--

       (I) by inserting ``or section 12732'' in paragraph (1) 
     after ``under that section''; and
       (II) by inserting ``or 12731(a)'' in paragraph (2) after 
     ``section 1331(a)'';

       (iii) in subsection (e)(2), by striking out ``section 
     1332'' and inserting in lieu thereof ``section 12732''; and
       (iv) in subsection (g), by striking out ``section 1331a'' 
     and inserting in lieu thereof ``section 12731a''; and
       (C) in section 4418--
       (i) in subsection (a), by striking out ``section 1332'' and 
     inserting in lieu thereof ``section 12732''; and
       (ii) in subsection (b)(1)(A), by striking out ``section 
     1333'' and inserting in lieu thereof ``section 12733''.
       (4) Title 37, United States Code, is amended--
       (A) in section 302f(b), by striking out ``section 673c of 
     title 10'' in paragraphs (2) and (3)(A) and inserting in lieu 
     thereof ``section 12305 of title 10''; and
       (B) in section 433(a), by striking out ``section 687 of 
     title 10'' and inserting in lieu thereof ``section 12319 of 
     title 10''.
       (e) Cross References in Other Laws.--
       (1) Title 14, United States Code, is amended--
       (A) in section 705(f), by striking out ``600 of title 10'' 
     and inserting in lieu thereof ``12209 of title 10''; and
       (B) in section 741(c), by striking out ``section 1006 of 
     title 10'' and inserting in lieu thereof ``section 12646 of 
     title 10''.
       (2) Title 38, United States Code, is amended--
       (A) in section 3011(d)(3), by striking out ``section 672, 
     673, 673b, 674, or 675 of title 10'' and inserting in lieu 
     thereof ``section 12301, 12302, 12304, 12306, or 12307 of 
     title 10'';
       (B) in sections 3012(b)(1)(B)(iii) and 3701(b)(5)(B), by 
     striking out ``section 268(b) of title 10'' and inserting in 
     lieu thereof ``section 10143(a) of title 10'';
       (C) in section 3501(a)(3)(C), by striking out ``section 
     511(d) of title 10'' and inserting in lieu thereof ``section 
     12103(d) of title 10''; and
       (D) in section 4211(4)(C), by striking out ``section 
     672(a), (d), or (g), 673, or 673b of title 10'' and inserting 
     in lieu thereof ``section 12301(a), (d), or (g), 12302, or 
     12304 of title 10''.
       (3) Section 702(a)(1) of the Soldiers' and Sailors' Civil 
     Relief Act of 1940 (50 U.S.C. App. 592(a)(1)) is amended--
       (A) by striking out ``section 672 (a) or (g), 673, 673b, 
     674, 675, or 688 of title 10'' and inserting in lieu thereof 
     ``section 688, 12301(a), 12301(g), 12302, 12304, 12306, or 
     12307 of title 10''; and
       (B) by striking out ``section 672(d) of such title'' and 
     inserting in lieu thereof ``section 12301(d) of such title''.
       (4) Section 463A of the Higher Education Act of 1965 (20 
     U.S.C. 1087cc-1) is amended in subsection (a)(10) by striking 
     out ``(10 U.S.C. 2172)'' and inserting in lieu thereof ``(10 
     U.S.C. 16302)''.
       (5) Section 179 of the National and Community Service Act 
     of 1990 (42 U.S.C. 12639) is amended in subsection (a)(2)(C) 
     by striking out ``section 216(a) of title 5'' and inserting 
     in lieu thereof ``section 10101 of title 10''.
       (f) Effective Dates.--
       (1) Section 1636 of the Reserve Officer Personnel 
     Management Act shall take effect on the date of the enactment 
     of this Act.
       (2) The amendments made by sections 1672(a), 1673(a) (with 
     respect to chapters 541 and 549), 1673(b)(2), 1673(b)(4), 
     1674(a), and 1674(b)(7) shall take effect on the effective 
     date specified in section 1691(b)(1) of the Reserve Officer 
     Personnel Management Act (notwithstanding section 1691(a) of 
     such Act).
       (3) The amendments made by this section shall take effect 
     as if included in the Reserve Officer Personnel Management 
     Act as enacted on October 5, 1994.

     SEC. 1502. AMENDMENTS TO REFLECT NAME CHANGE OF COMMITTEE ON 
                   ARMED SERVICES OF THE HOUSE OF REPRESENTATIVES.

       (a) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) Sections 503(b)(5), 520a(d), 526(d)(1), 619a(h)(2), 
     806a(b), 838(b)(7), 946(c)(1)(A), 1098(b)(2), 2313(b)(4), 
     2361(c)(1), 2371(h), 2391(c), 2430(b), 2432(b)(3)(B), 
     2432(c)(2), 2432(h)(1), 2667(d)(3), 2672a(b), 2687(b)(1), 
     4342(g), 7307(b)(1)(A), and 9342(g) are amended by 
     striking out ``Committees on Armed Services of the Senate 
     and House of Representatives'' and inserting in lieu 
     thereof ``Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives''.
       (2) Sections 178(c)(1)(A), 942(e)(5), 2350f(c), 7426(e), 
     7431(a), 7431(b)(1), 7431(c), 7438(b), 12302(b), 18235(a), 
     and 18236(a) are amended by striking out ``Committees on 
     Armed Services of the Senate and the House of 
     Representatives'' and inserting in lieu thereof ``Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives''.
       (3) Section 113(j)(1) is amended by striking out 
     ``Committees on Armed Services and Committees on 
     Appropriations of the Senate and'' and inserting in lieu 
     thereof ``Committee on Armed Services and the Committee on 
     Appropriations of the Senate and the Committee on National 
     Security and the Committee on Appropriations of the''.
       (4) Section 119(g) is amended by striking out paragraphs 
     (1) and (2) and inserting in lieu thereof the following:
       ``(1) the Committee on Armed Services and the Committee on 
     Appropriations, and the Defense Subcommittee of the Committee 
     on Appropriations, of the Senate; and
       ``(2) the Committee on National Security and the Committee 
     on Appropriations, and the National Security Subcommittee of 
     the Committee on Appropriations, of the House of 
     Representatives.''.
       (5) Section 127(c) is amended by striking out ``Committees 
     on Armed Services and Appropriations of the Senate and'' and 
     inserting in lieu thereof ``Committee on Armed Services and 
     the Committee on Appropriations of the Senate and the 
     Committee on National Security and the Committee on 
     Appropriations of''.
       (6) Section 135(e) is amended--
       (A) by inserting ``(1)'' after ``(e)'';
       (B) by striking out ``the Committees on Armed Services and 
     the Committees on Appropriations of the Senate and House of 
     Representatives are each'' and inserting in lieu thereof 
     ``each congressional committee specified in paragraph (2) 
     is''; and
       (C) by adding at the end the following:
       ``(2) The committees referred to in paragraph (1) are--
       ``(A) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(B) the Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.
       (7) Section 179(e) is amended by striking out ``to the 
     Committees on Armed Services and Appropriations of the Senate 
     and'' and inserting in lieu thereof ``to the Committee on 
     Armed Services and the Committee on Appropriations of the 
     Senate and the Committee on National Security and the 
     Committee on Appropriations of the''.
       (8) Sections 401(d) and 402(d) are amended by striking out 
     ``submit to the'' and all that 

[[Page H444]]
     follows through ``Foreign Affairs'' and inserting in lieu thereof 
     ``submit to the Committee on Armed Services and the Committee 
     on Foreign Relations of the Senate and the Committee on 
     National Security and the Committee on International 
     Relations''.
       (9) Section 2367(d)(2) is amended by striking out ``the 
     Committees on Armed Services and the Committees on 
     Appropriations of the Senate and'' and inserting in lieu 
     thereof ``the Committee on Armed Services and the Committee 
     on Appropriations of the Senate and the Committee on National 
     Security and the Committee on Appropriations of the''.
       (10) Sections 2306b(g), 2801(c)(4), and 18233a(a)(1) are 
     amended by striking out ``the Committees on Armed Services 
     and on Appropriations of the Senate and'' and inserting in 
     lieu thereof ``the Committee on Armed Services and the 
     Committee on Appropriations of the Senate and the Committee 
     on National Security and the Committee on Appropriations of 
     the''.
       (11) Section 1599(e)(2) is amended--
       (A) in subparagraph (A), by striking out ``The Committees 
     on Armed Services and Appropriations'' and inserting in lieu 
     thereof ``The Committee on National Security, the Committee 
     on Appropriations,''; and
       (B) in subparagraph (B), by striking out ``The Committees 
     on Armed Services and Appropriations'' and inserting in lieu 
     thereof ``The Committee on Armed Services, the Committee on 
     Appropriations,''.
       (12) Sections 4355(a)(3), 6968(a)(3), and 9355(a)(3) are 
     amended by striking out ``Armed Services'' and inserting in 
     lieu thereof ``National Security''.
       (13) Section 1060(d) is amended by striking out ``Committee 
     on Armed Services and the Committee on Foreign Affairs'' and 
     inserting in lieu thereof ``Committee on National Security 
     and the Committee on International Relations''.
       (14) Section 2215 is amended--
       (A) by inserting ``(a) Certification Required.--'' at the 
     beginning of the text of the section;
       (B) by striking out ``to the Committees'' and all that 
     follows through ``House of Representatives'' and inserting in 
     lieu thereof ``to the congressional committees specified in 
     subsection (b)''; and
       (C) by adding at the end the following:
       ``(b) Congressional Committees.--The committees referred to 
     in subsection (a) are--
       ``(1) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(2) the Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.
       (15) Section 2218 is amended--
       (A) in subsection (j), by striking out ``the Committees on 
     Armed Services and on Appropriations of the Senate and the 
     House of Representatives'' and inserting in lieu thereof 
     ``the congressional defense committees''; and
       (B) by adding at the end of subsection (k) the following 
     new paragraph:
       ``(4) The term `congressional defense committees' means--
       ``(A) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(B) the Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.
       (16) Section 2342(b) is amended--
       (A) in the matter preceding paragraph (1), by striking out 
     ``section--'' and inserting in lieu thereof ``section 
     unless--'';
       (B) in paragraph (1), by striking out ``unless''; and
       (C) in paragraph (2), by striking out ``notifies the'' and 
     all that follows through ``House of Representatives'' and 
     inserting in lieu thereof ``the Secretary submits to the 
     Committee on Armed Services and the Committee on Foreign 
     Relations of the Senate and the Committee on National 
     Security and the Committee on International Relations of the 
     House of Representatives notice of the intended 
     designation''.
       (17) Section 2350a(f)(2) is amended by striking out 
     ``submit to the Committees'' and all that follows through 
     ``House of Representatives'' and inserting in lieu thereof 
     ``submit to the Committee on Armed Services and the Committee 
     on Foreign Relations of the Senate and the Committee on 
     National Security and the Committee on International 
     Relations of the House of Representatives''.
       (18) Section 2366 is amended--
       (A) in subsection (d), by striking out ``the Committees on 
     Armed Services and on Appropriations of the Senate and House 
     of Representatives'' and inserting in lieu thereof ``the 
     congressional defense committees''; and
       (B) by adding at the end of subsection (e) the following 
     new paragraph:
       ``(7) The term `congressional defense committees' means--
       ``(A) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(B) the Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.
       (19) Section 2399(h)(2) is amended by striking out 
     ``means'' and all the follows and inserting in lieu thereof 
     the following: ``means--
       ``(A) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(B) the Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.
       (20) Section 2401(b)(1) is amended--
       (A) in subparagraph (B), by striking out ``the Committees 
     on Armed Services and on Appropriations of the Senate and'' 
     and inserting in lieu thereof ``the Committee on Armed 
     Services and the Committee on Appropriations of the Senate 
     and the Committee on National Security and the Committees on 
     Appropriations of the''; and
       (B) in subparagraph (C), by striking out ``the Committees 
     on Armed Services and on Appropriations of the Senate and 
     House of Representatives'' and inserting in lieu thereof 
     ``those committees''.
       (21) Section 2403(e) is amended--
       (A) by inserting ``(1)'' before ``Before making'';
       (B) by striking out ``shall notify the Committees on Armed 
     Services and on Appropriations of the Senate and House of 
     Representatives'' and inserting in lieu thereof ``shall 
     submit to the congressional committees specified in paragraph 
     (2) notice''; and
       (C) by adding at the end the following new paragraph:
       ``(2) The committees referred to in paragraph (1) are--
       ``(A) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(B) the Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.
       (22) Section 2515(d) is amended--
       (A) by striking out ``Reporting'' and all that follows 
     through ``same time'' and inserting in lieu thereof ``Annual 
     Report.--(1) The Secretary of Defense shall submit to the 
     congressional committees specified in paragraph (2) an annual 
     report on the activities of the Office. The report shall be 
     submitted each year at the same time''; and
       (B) by adding at the end the following new paragraph:
       ``(2) The committees referred to in paragraph (1) are--
       ``(A) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(B) the Committee on National Security and the Committee 
     on Appropriations of the House of Representatives.''.
       (23) Section 2662 is amended--
       (A) in subsection (a)--
       (i) in the matter preceding paragraph (1), by striking out 
     ``the Committees on Armed Services of the Senate and House of 
     Representatives'' and inserting in lieu thereof ``the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives''; and
       (ii) in the matter following paragraph (6), by striking out 
     ``to be submitted to the Committees on Armed Services of the 
     Senate and House of Representatives'';
       (B) in subsection (b), by striking out ``shall report 
     annually to the Committees on Armed Services of the Senate 
     and the House of Representatives'' and inserting in lieu 
     thereof ``shall submit annually to the congressional 
     committees named in subsection (a) a report'';
       (C) in subsection (e), by striking out ``the Committees on 
     Armed Services of the Senate and the House of 
     Representatives'' and inserting in lieu thereof ``the 
     congressional committees named in subsection (a)''; and
       (D) in subsection (f), by striking out ``the Committees on 
     Armed Services of the Senate and the House of Representatives 
     shall'' and inserting in lieu thereof ``the congressional 
     committees named in subsection (a) shall''.
       (24) Section 2674(a) is amended--
       (A) in paragraph (2), by striking out ``Committees on Armed 
     Services of the Senate and the House of Representatives, the 
     Committee on Environment and Public Works of the Senate, and 
     the Committee on Public Works and Transportation of the House 
     of Representatives'' and inserting in lieu thereof 
     ``congressional committees specified in paragraph (3)''; and
       (B) by adding at the end the following new paragraph:
       ``(3) The committees referred to in paragraph (2) are--
       ``(A) the Committee on Armed Services and the Committee on 
     Environment and Public Works of the Senate; and
       ``(B) the Committee on National Security and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives.''.
       (25) Section 2813(c) is amended by striking out 
     ``Committees on Armed Services and the Committees on 
     Appropriations of the Senate and House of Representatives'' 
     and inserting in lieu thereof ``appropriate committees of 
     Congress''.
       (26) Sections 2825(b)(1) and 2832(b)(2) are amended by 
     striking out ``Committees on Armed Services and the 
     Committees on Appropriations of the Senate and of the House 
     of Representatives'' and inserting in lieu thereof 
     ``appropriate committees of Congress''.
       (27) Section 2865(e)(2) and 2866(c)(2) are amended by 
     striking out ``Committees on Armed Services and 
     Appropriations of the Senate and House of Representatives'' 
     and inserting in lieu thereof ``appropriate committees of 
     Congress''.
       (28)(A) Section 7434 of such title is amended to read as 
     follows:

     ``Sec. 7434. Annual report to congressional committees

       ``Not later than October 31 of each year, the Secretary 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives a report on the 

[[Page H445]]
     production from the naval petroleum reserves during the preceding 
     calendar year.''.
       (B) The item relating to such section in the table of 
     contents at the beginning of chapter 641 is amended to read 
     as follows:
``7434. Annual report to congressional committees.''.

       (b) Title 37, United States Code.--Sections 301b(i)(2) and 
     406(i) of title 37, United States Code, are amended by 
     striking out ``Committees on Armed Services of the Senate and 
     House of Representatives'' and inserting in lieu thereof 
     ``Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives''.
       (c) Annual Defense Authorization Acts.--
       (1) The National Defense Authorization Act for Fiscal Year 
     1994 (Public Law 103-160) is amended in sections 2922(b) and 
     2925(b) (10 U.S.C. 2687 note) by striking out ``Committees on 
     Armed Services of the Senate and House of Representatives'' 
     and inserting in lieu thereof ``Committee on Armed Services 
     of the Senate and the Committee on National Security of the 
     House of Representatives''.
       (2) The National Defense Authorization Act for Fiscal Year 
     1993 (Public Law 102-484) is amended--
       (A) in section 326(a)(5) (10 U.S.C. 2301 note) and section 
     1304(a) (10 U.S.C. 113 note), by striking out ``Com- mittees 
     on Armed Services of the Senate and House of 
     Representatives'' and inserting in lieu thereof ``Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives''; and
       (B) in section 1505(e)(2)(B) (22 U.S.C. 5859a), by striking 
     out ``the Committee on Armed Services, the Committee on 
     Appropriations, the Committee on Foreign Affairs, and the 
     Committee on Energy and Commerce'' and inserting in lieu 
     thereof ``the Committee on National Security, the Committee 
     on Appropriations, the Committee on International Relations, 
     and the Committee on Commerce''.
       (3) Section 1097(a)(1) of the National Defense 
     Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
     102-190; 22 U.S.C. 2751 note) is amended by striking out 
     ``the Committees on Armed Services and Foreign Affairs'' and 
     inserting in lieu thereof ``the Committee on National 
     Security and the Committee on International Relations''.
       (4) The National Defense Authorization Act for Fiscal Year 
     1991 (Public Law 101-510) is amended as follows:
       (A) Section 402(a) and section 1208(b)(3) (10 U.S.C. 1701 
     note) are amended by striking out ``Committees on Armed 
     Services of the Senate and the House of Representatives'' and 
     inserting in lieu thereof ``Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives''.
       (B) Section 1403 (50 U.S.C. 404b) is amended--
       (i) in subsection (a), by striking out ``the Committees 
     on'' and all that follows through ``each year'' and inserting 
     in lieu thereof ``the congressional committees specified in 
     subsection (d) each year''; and
       (ii) by adding at the end the following new subsection:
       ``(d) Specified Congressional Committees.--The 
     congressional committees referred to in subsection (a) are 
     the following:
       ``(1) The Committee on Armed Services, the Committee on 
     Appropriations, and the Select Committee on Intelligence of 
     the Senate.
       ``(2) The Committee on National Security, the Committee on 
     Appropriations, and the Permanent Select Committee on 
     Intelligence of the House of Representatives.''.
       (C) Section 1457 (50 U.S.C. 404c) is amended--
       (i) in subsection (a), by striking out ``shall submit to 
     the'' and all that follows through ``each year'' and 
     inserting in lieu thereof ``shall submit to the congressional 
     committees specified in subsection (d) each year'';
       (ii) in subsection (c)--

       (I) by striking out ``(1) Except as provided in paragraph 
     (2), the President'' and inserting in lieu thereof ``The 
     President''; and
       (II) by striking out paragraph (2); and

       (iii) by adding at the end the following new subsection:
       ``(d) Specified Congressional Committees.--The 
     congressional committees referred to in subsection (a) are 
     the following:
       ``(1) The Committee on Armed Services and the Committee on 
     Foreign Relations of the Senate.
       ``(2) The Committee on National Security and the Committee 
     on International Relations of the House of 
     Representatives.''.
       (D) Section 2921 (10 U.S.C. 2687 note) is amended--
       (i) in subsection (e)(3)(A), by striking out ``the 
     Committee on Armed Services, the Committee on Appropriations, 
     and the Defense Subcommittees'' and inserting in lieu thereof 
     ``the Committee on National Security, the Committee on 
     Appropriations, and the National Security Subcommittee''; and
       (ii) in subsection (g)(2), by striking out ``the Committee 
     on Armed Services of the Senate and House of 
     Representatives'' and inserting in lieu thereof ``the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives''.
       (5) Section 613(h)(1) of the National Defense Authorization 
     Act, Fiscal Year 1989 (Public Law 100-456; 37 U.S.C. 302 
     note), is amended by striking out ``the Committees on Armed 
     Services of the Senate and the House of Representatives'' and 
     inserting in lieu thereof ``the Committee on Armed Services 
     of the Senate and the Committee on National Security of the 
     House of Representatives''.
       (6) Section 1412 of the Department of Defense Authorization 
     Act, 1986 (Public Law 99-145; 50 U.S.C. 1521), is amended in 
     subsections (b)(4) and (k)(2), by striking out ``Committees 
     on Armed Services of the Senate and House of 
     Representatives'' and inserting in lieu thereof ``Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives''.
       (7) Section 1002(d) of the Department of Defense 
     Authorization Act, 1985 (Public Law 98-525; 22 U.S.C. 1928 
     note), is amended by striking out ``the Committees on Armed 
     Services of the Senate and the House of Representatives'' and 
     inserting in lieu thereof ``the Committee on Armed Services 
     of the Senate, the Committee on National Security of the 
     House of Representatives''.
       (8) Section 1252 of the Department of Defense Authorization 
     Act, 1984 (42 U.S.C. 248d), is amended--
       (A) in subsection (d), by striking out ``Committees on 
     Appropriations and on Armed Services of the Senate and the 
     House of Representatives'' and inserting in lieu thereof 
     ``Committee on Appropriations and the Committee on Armed 
     Services of the Senate and the Committee on Appropriations 
     and the Committee on National Security of the House of 
     Representatives''; and
       (B) in subsection (e), by striking out ``Committees on 
     Appropriations and on Armed Services of the Senate and the 
     House of Representatives'' and inserting in lieu thereof 
     ``congressional committees specified in subsection (d)''.
       (d) Base Closure Law.--The Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) is amended as follows:
       (1) Sections 2902(e)(2)(B)(ii) and 2908(b) are amended by 
     striking out ``Armed Services'' the first place it appears 
     and inserting in lieu thereof ``National Security''.
       (2) Section 2910(2) is amended by striking out ``the 
     Committees on Armed Services and the Committees on 
     Appropriations of the Senate and of the House of 
     Representatives'' and inserting in lieu thereof ``the 
     Committee on Armed Services and the Committee on 
     Appropriations of the Senate and the Committee on National 
     Security and the Committee on Appropriations of the House of 
     Representatives''.
       (e) National Defense Stockpile.--The Strategic and Critical 
     Materials Stock Piling Act is amended--
       (1) in section 6(d) (50 U.S.C. 98e(d))--
       (A) in paragraph (1), by striking out ``Committees on Armed 
     Services of the Senate and House of Representatives'' and 
     inserting in lieu thereof ``Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives''; and
       (B) in paragraph (2), by striking out ``the Committees on 
     Armed Services of the Senate and House of Representatives'' 
     and inserting in lieu thereof ``such congressional 
     committees''; and
       (2) in section 7(b) (50 U.S.C. 98f(b)), by striking out 
     ``Committees on Armed Services of the Senate and House of 
     Representatives'' and inserting in lieu thereof ``Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives''.
       (f) Other Defense-Related Provisions.--
       (1) Section 8125(g)(2) of the Department of Defense 
     Appropriations Act, 1989 (Public Law 100-463; 10 U.S.C. 113 
     note), is amended by striking out ``Committees on 
     Appropriations and Armed Services of the Senate and House of 
     Representatives'' and inserting in lieu thereof ``Committee 
     on Appropriations and the Committee on Armed Services of the 
     Senate and the Committee on Appropriations and the Committee 
     on National Security of the House of Representatives''.
       (2) Section 9047A of the Department of Defense 
     Appropriations Act, 1993 (Public Law 102-396; 10 U.S.C. 2687 
     note), is amended by striking out ``the Committees on 
     Appropriations and Armed Services of the House of 
     Representatives and the Senate'' and inserting in lieu 
     thereof ``the Committee on Appropriations and the Committee 
     on Armed Services of the Senate and the Committee on 
     Appropriations and the Committee on National Security of the 
     House of Representatives''.
       (3) Section 3059(c)(1) of the Defense Drug Interdiction 
     Assistance Act (subtitle A of title III of Public Law 99-570; 
     10 U.S.C. 9441 note) is amended by striking out ``Committees 
     on Appropriations and on Armed Services of the Senate and the 
     House of Representatives'' and inserting in lieu thereof 
     ``Committee on Armed Services and the Committee on 
     Appropriations of the Senate and the Committee on National 
     Security and the Committee on Appropriations of the House of 
     Representatives''.
       (4) Section 7606(b) of the Anti-Drug Abuse Act of 1988 
     (Public Law 100-690; 10 U.S.C. 9441 note) is amended by 
     striking out ``Committees on Appropriations and the Committee 
     on Armed Services of the Senate and the House of 
     Representatives'' and inserting in lieu thereof ``Committee 
     on Armed Services and the Committee on Appropriations of the 
     Senate and the Committee on National Security and the 
     Committee on Appropriations of the House of 
     Representatives''.
       (5) Section 104(d)(5) of the National Security Act of 1947 
     (50 U.S.C. 403-4(d)(5)) is amended by striking out 
     ``Committees on 

[[Page H446]]
     Armed Services of the Senate and House of Representatives'' and 
     inserting in lieu thereof ``Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives''.
       (6) Section 8 of the Inspector General Act of 1978 (5 
     U.S.C. App.) is amended--
       (A) in subsection (b)(3), by striking out ``Committees on 
     Armed Services and Government Operations'' and inserting in 
     lieu thereof ``Committee on National Security and the 
     Committee on Government Reform and Oversight'';
       (B) in subsection (b)(4), by striking out ``Committees on 
     Armed Services and Governmental Affairs of the Senate and the 
     Committees on Armed Services and Government Operations of the 
     House of Representatives'' and inserting in lieu thereof 
     ``congressional committees specified in paragraph (3)'';
       (C) in subsection (f)(1), by striking out ``Committees on 
     Armed Services and Government Operations'' and inserting in 
     lieu thereof ``Committee on National Security and the 
     Committee on Government Reform and Oversight''; and
       (D) in subsection (f)(2), by striking out ``Committees on 
     Armed Services and Governmental Affairs of the Senate and the 
     Committees on Armed Services and Government Operations of the 
     House of Representatives'' and inserting in lieu thereof 
     ``congressional committees specified in paragraph (1)''.
       (7) Section 204(h)(3) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 485(h)(3)) is 
     amended by striking out ``Committees on Armed Services of the 
     Senate and of the House of Representatives'' and inserting in 
     lieu thereof ``Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives''.

     SEC. 1503. MISCELLANEOUS AMENDMENTS TO TITLE 10, UNITED 
                   STATES CODE.

       (a) Subtitle A.--Subtitle A of title 10, United States 
     Code, is amended as follows:
       (1) Section 113(i)(2)(B) is amended by striking out ``the 
     five years covered'' and all that follows through ``section 
     114(g)'' and inserting in lieu thereof ``the period covered 
     by the future-years defense program submitted to Congress 
     during that year pursuant to section 221''.
       (2) Section 136(c) is amended by striking out 
     ``Comptroller'' and inserting in lieu thereof ``Under 
     Secretary of Defense (Comptroller)''.
       (3) Section 526 is amended--
       (A) in subsection (a), by striking out paragraphs (1), (2), 
     and (3) and inserting in lieu thereof the following:
       ``(1) For the Army, 302.
       ``(2) For the Navy, 216.
       ``(3) For the Air Force, 279.'';
       (B) by striking out subsection (b);
       (C) by redesignating subsections (c), (d), and (e) as 
     subsections (b), (c), and (d);
       (D) in subsection (b), as so redesignated, by striking out 
     ``that are applicable on and after October 1, 1995''; and
       (E) in paragraph (2)(B) of subsection (c), as redesignated 
     by subparagraph (C), is amended--
       (i) by striking out ``the'' after ``in the'';
       (ii) by inserting ``to'' after ``reserve component, or''; 
     and
       (iii) by inserting ``than'' after ``in a grade other''.
       (4) Section 528(a) is amended by striking out ``after 
     September 30, 1995,''.
       (5) Section 573(a)(2) is amended by striking out ``active 
     duty list'' and inserting in lieu thereof ``active-duty 
     list''.
       (6) Section 661(d)(2) is amended--
       (A) in subparagraph (B), by striking out ``Until January 1, 
     1994'' and all that follows through ``each position so 
     designated'' and inserting in lieu thereof ``Each position 
     designated by the Secretary under subparagraph (A)'';
       (B) in subparagraph (C), by striking out ``the second 
     sentence of''; and
       (C) by striking out subparagraph (D).
       (7) Section 706(c)(1) is amended by striking out ``section 
     4301 of title 38'' and inserting in lieu thereof ``chapter 43 
     of title 38''.
       (8) Section 1059 is amended by striking out ``subsection 
     (j)'' in subsections (c)(2) and (g)(3) and inserting in lieu 
     thereof ``subsection (k)''.
       (9) Section 1060a(f)(2)(B) is amended by striking out ``(as 
     defined in section 101(a)(22) of the Immigration and 
     Nationality Act (8 U.S.C. 1101(a)(22)))'' and inserting 
     in lieu thereof ``, as determined in accordance with the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.)''.
       (10) Section 1151 is amended--
       (A) in subsection (b), by striking out ``(20 U.S.C. 2701 et 
     seq.)'' in paragraphs (2)(A) and (3)(A) and inserting in lieu 
     thereof ``(20 U.S.C. 6301 et seq.)''; and
       (B) in subsection (e)(1)(B), by striking out ``not later 
     than one year after the date of the enactment of the National 
     Defense Authorization Act for Fiscal Year 1995'' and 
     inserting in lieu thereof ``not later than October 5, 1995''.
       (11) Section 1152(g)(2) is amended by striking out ``not 
     later than 180 days after the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 1995'' and 
     inserting in lieu thereof ``not later than April 3, 1994,''.
       (12) Section 1177(b)(2) is amended by striking out 
     ``provison of law'' and inserting in lieu thereof ``provision 
     of law''.
       (13) The heading for chapter 67 is amended by striking out 
     ``NONREGULAR'' and inserting in lieu thereof ``NON-REGULAR''.
       (14) Section 1598(a)(2)(A) is amended by striking out 
     ``2701'' and inserting in lieu thereof ``6301''.
       (15) Section 1745(a) is amended by striking out ``section 
     4107(d)'' both places it appears and inserting in lieu 
     thereof ``section 4107(b)''.
       (16) Section 1746(a) is amended--
       (A) by striking out ``(1)'' before ``The Secretary of 
     Defense''; and
       (B) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively.
       (17) Section 2006(b)(2)(B)(ii) is amended by striking out 
     ``section 1412 of such title'' and inserting in lieu thereof 
     ``section 3012 of such title''.
       (18) Section 2011(a) is amended by striking out ``to'' and 
     inserting in lieu thereof ``To''.
       (19) Section 2194(e) is amended by striking out ``(20 
     U.S.C. 2891(12))'' and inserting in lieu thereof ``(20 U.S.C. 
     8801)''.
       (20) Sections 2217(b) and 2220(a)(2) are amended by 
     striking out ``Comptroller of the Department of Defense'' and 
     inserting in lieu thereof ``Under Secretary of Defense 
     (Comptroller)''.
       (21) Section 2401(c)(2) is amended by striking out 
     ``pursuant to'' and all that follows through ``September 24, 
     1983,''.
       (22) Section 2410f(b) is amended by striking out ``For 
     purposes of'' and inserting in lieu thereof ``In''.
       (23) Section 2410j(a)(2)(A) is amended by striking out 
     ``2701'' and inserting in lieu thereof ``6301''.
       (24) Section 2457(e) is amended by striking out ``title III 
     of the Act of March 3, 1933 (41 U.S.C. 10a),'' and inserting 
     in lieu thereof ``the Buy American Act (41 U.S.C. 10a)''.
       (25) Section 2465(b)(3) is amended by striking out ``under 
     contract'' and all that follows through the period and 
     inserting in lieu thereof ``under contract on September 24, 
     1983.''.
       (26) Section 2471(b) is amended--
       (A) in paragraph (2), by inserting ``by'' after ``as 
     determined''; and
       (B) in paragraph (3), by inserting ``of'' after ``arising 
     out''.
       (27) Section 2524(e)(4)(B) is amended by inserting a comma 
     before ``with respect to''.
       (28) The heading of section 2525 is amended by capitalizing 
     the initial letter of the second, fourth, and fifth words.
       (29) Chapter 152 is amended by striking out the table of 
     subchapters at the beginning and the headings for subchapters 
     I and II.
       (30) Section 2534(c) is amended by capitalizing the initial 
     letter of the third and fourth words of the subsection 
     heading.
       (31) The table of sections at the beginning of subchapter I 
     of chapter 169 is amended by adding a period at the end of 
     the item relating to section 2811.
       (b) Other Subtitles.--Subtitles B, C, and D of title 10, 
     United States Code, are amended as follows:
       (1) Sections 3022(a)(1), 5025(a)(1), and 8022(a)(1) are 
     amended by striking out ``Comptroller of the Department of 
     Defense'' and inserting in lieu thereof ``Under Secretary of 
     Defense (Comptroller)''.
       (2) Section 6241 is amended by inserting ``or'' at the end 
     of paragraph (2).
       (3) Section 6333(a) is amended by striking out the first 
     period after ``section 1405'' in formula C in the table under 
     the column designated ``Column 2''.
       (4) The item relating to section 7428 in the table of 
     sections at the beginning of chapter 641 is amended by 
     striking out ``Agreement'' and inserting in lieu thereof 
     ``Agreements''.
       (5) The item relating to section 7577 in the table of 
     sections at the beginning of chapter 649 is amended by 
     striking out ``Officers'' and inserting in lieu thereof 
     ``officers''.
       (6) The center heading for part IV in the table of chapters 
     at the beginning of subtitle D is amended by inserting a 
     comma after ``SUPPLY''.

     SEC. 1504. MISCELLANEOUS AMENDMENTS TO ANNUAL DEFENSE 
                   AUTHORIZATION ACTS.

       (a) Public Law 103-337.--Effective as of October 5, 1994, 
     and as if included therein as enacted, the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337) 
     is amended as follows:
       (1) Section 322(1) (108 Stat. 2711) is amended by striking 
     out ``Service'' in both sets of quoted matter and inserting 
     in lieu thereof ``Services''.
       (2) Section 531(g)(2) (108 Stat. 2758) is amended by 
     inserting ``item relating to section 1034 in the'' after 
     ``The''.
       (3) Section 541(c)(1) is amended--
       (A) in subparagraph (B), by inserting a comma after ``chief 
     warrant officer''; and
       (B) in the matter after subparagraph (C), by striking out 
     ``this''.
       (4) Section 721(f)(2) (108 Stat. 2806) is amended by 
     striking out ``revaluated'' and inserting in lieu thereof 
     ``reevaluated''.
       (5) Section 722(d)(2) (108 Stat. 2808) is amended by 
     striking out ``National Academy of Science'' and inserting in 
     lieu thereof ``National Academy of Sciences''.
       (6) Section 904(d) (108 Stat. 2827) is amended by striking 
     out ``subsection (c)'' the first place it appears and 
     inserting in lieu thereof ``subsection (b)''.
       (7) Section 1202 (108 Stat. 2882) is amended--
       (A) by striking out ``(title XII of Public Law 103-60'' and 
     inserting in lieu thereof ``(title XII of Public Law 103-
     160''; and
       (B) in paragraph (2), by inserting ``in the first 
     sentence'' before ``and inserting in lieu thereof''.
       (8) Section 1312(a)(2) (108 Stat. 2894) is amended by 
     striking out ``adding at the end'' 

[[Page H447]]
     and inserting in lieu thereof ``inserting after the item relating to 
     section 123a''.
       (9) Section 2813(c) (108 Stat. 3055) is amended by striking 
     out ``above paragraph (1)'' both places it appears and 
     inserting in lieu thereof ``preceding subparagraph (A)''.
       (b) Public Law 103-160.--The National Defense Authorization 
     Act for Fiscal Year 1994 (Public Law 103-160) is amended in 
     section 1603(d) (22 U.S.C. 2751 note)--
       (1) in the matter preceding paragraph (1), by striking out 
     the second comma after ``Not later than April 30 of each 
     year'';
       (2) in paragraph (4), by striking out ``contributes'' and 
     inserting in lieu thereof ``contribute''; and
       (3) in paragraph (5), by striking out ``is'' and inserting 
     in lieu thereof ``are''.
       (c) Public Law 102-484.--The National Defense Authorization 
     Act for Fiscal Year 1993 (Public Law 102-484) is amended as 
     follows:
       (1) Section 326(a)(5) (106 Stat. 2370; 10 U.S.C. 2301 note) 
     is amended by inserting ``report'' after ``each''.
       (2) Section 3163(1)(E) is amended by striking out 
     ``paragraphs (1) through (4)'' and inserting in lieu thereof 
     ``subparagraphs (A) through (D)''.
       (3) Section 4403(a) (10 U.S.C. 1293 note) is amended by 
     striking out ``through 1995'' and inserting in lieu thereof 
     ``through fiscal year 1999''.
       (d) Public Law 102-190.--Section 1097(d) of the National 
     Defense Authorization Act for Fiscal Years 1992 and 1993 
     (Public Law 102-190; 105 Stat. 1490) is amended by striking 
     out ``the Federal Republic of Germany, France'' and inserting 
     in lieu thereof ``France, Germany''.

     SEC. 1505. MISCELLANEOUS AMENDMENTS TO OTHER LAWS.

       (a) Officer Personnel Act of 1947.--Section 437 of the 
     Officer Personnel Act of 1947 is repealed.
       (b) Title 5, United States Code.--Title 5, United States 
     Code, is amended--
       (1) in section 8171--
       (A) in subsection (a), by striking out ``903(3)'' and 
     inserting in lieu thereof ``903(a)'';
       (B) in subsection (c)(1), by inserting ``section'' before 
     ``39(b)''; and
       (C) in subsection (d), by striking out ``(33 U.S.C. 18 and 
     21, respectively)'' and inserting in lieu thereof ``(33 
     U.S.C. 918 and 921)'';
       (2) in sections 8172 and 8173, by striking out ``(33 U.S.C. 
     2(2))'' and inserting in lieu thereof ``(33 U.S.C. 902(2))''; 
     and
       (3) in section 8339(d)(7), by striking out ``Court of 
     Military Appeals'' and inserting in lieu thereof ``Court of 
     Appeals for the Armed Forces''.
       (c) Public Law 90-485.--Effective as of August 13, 1968, 
     and as if included therein as originally enacted, section 
     1(6) of Public Law 90-485 (82 Stat. 753) is amended--
       (1) by striking out the close quotation marks after the end 
     of clause (4) of the matter inserted by the amendment made by 
     that section; and
       (2) by adding close quotation marks at the end.
       (d) Title 37, United States Code.--Section 406(b)(1)(E) of 
     title 37, United States Code, is amended by striking out ``of 
     this paragraph''.
       (e) Base Closure Laws.--(1) The Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) is amended--
       (A) in section 2905(b)(1)(C), by striking out ``of the 
     Administrator to grant approvals and make determinations 
     under section 13(g) of the Surplus Property Act of 1944 (50 
     U.S.C. App. 1622(g))'' and inserting in lieu thereof ``to 
     dispose of surplus property for public airports under 
     sections 47151 through 47153 of title 49, United States 
     Code'';
       (B) in section 2906(d)(1), by striking out ``section 
     204(b)(4)(C)'' and inserting in lieu thereof ``section 
     204(b)(7)(C)''; and
       (C) in section 2910--
       (i) by designating the second paragraph (10), as added by 
     section 2(b) of the Base Closure Community Redevelopment and 
     Homeless Assistance Act of 1994 (Public Law 103-421; 108 
     Stat. 4352), as paragraph (11); and
       (ii) in such paragraph, as so designated, by striking out 
     ``section 501(h)(4) of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11411(h)(4))'' and inserting in 
     lieu thereof ``section 501(i)(4) of the Stewart B. McKinney 
     Homeless Assistance Act (42 U.S.C. 11411(i)(4))''.
       (2) Section 2921(d)(1) of the National Defense 
     Authorization Act for Fiscal Year 1991 (Public Law 101-510; 
     10 U.S.C. 2687 note) is amended by striking out ``section 
     204(b)(4)(C)'' and inserting in lieu thereof ``section 
     204(b)(7)(C)''.
       (3) Section 204 of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note) is amended--
       (A) in subsection (b)(1)(C), by striking out ``of the 
     Administrator to grant approvals and make determinations 
     under section 13(g) of the Surplus Property Act of 1944 (50 
     U.S.C. App. 1622(g))'' and inserting in lieu thereof ``to 
     dispose of surplus property for public airports under 
     sections 47151 through 47153 of title 49, United States 
     Code''; and
       (B) in subsection (b)(7)(A)(i), by striking out ``paragraph 
     (3)'' and inserting in lieu thereof ``paragraphs (3) through 
     (6)''.
       (f) Public Law 103-421.--Section 2(e)(5) of Public Law 103-
     421 (108 Stat. 4354) is amended--
       (1) by striking out ``(A)'' after ``(5)''; and
       (2) by striking out ``clause'' in subparagraph (B)(iv) and 
     inserting in lieu thereof ``clauses''.
       (g) Atomic Energy Act.--Section 123a. of the Atomic Energy 
     Act (42 U.S.C. 2153a.) is amended by striking out ``144b., or 
     144d.'' and inserting ``, 144b., or 144d.''.

     SEC. 1506. COORDINATION WITH OTHER AMENDMENTS.

       For purposes of applying amendments made by provisions of 
     this Act other than provisions of this title, this title 
     shall be treated as having been enacted immediately before 
     the other provisions of this Act.
TITLE XVI--CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE AND FIREARMS 
                                 SAFETY

     SEC. 1601. SHORT TITLE.

       This title may be cited as the ``Corporation for the 
     Promotion of Rifle Practice and Firearms Safety Act''.
         Subtitle A--Establishment and Operation of Corporation

     SEC. 1611. ESTABLISHMENT OF THE CORPORATION.

       (a) Establishment.--There is established a private, 
     nonprofit corporation to be known as the ``Corporation for 
     the Promotion of Rifle Practice and Firearms Safety'' (in 
     this title referred to as the ``Corporation'').
       (b) Private, Nonprofit Status.--(1) The Corporation shall 
     not be considered to be a department, agency, or 
     instrumentality of the Federal Government. An officer or 
     employee of the Corporation shall not be considered to be an 
     officer or employee of the Federal Government.
       (2) The Corporation shall be operated in a manner and for 
     purposes that qualify the Corporation for exemption from 
     taxation under section 501(a) of the Internal Revenue Code of 
     1986 as an organization described in section 501(c)(3) of 
     such Code.
       (c) Board of Directors.--(1) The Corporation shall have a 
     Board of Directors consisting of not less than nine members.
       (2) The Board of Directors may adopt bylaws, policies, and 
     procedures for the Corporation and may take any other action 
     that the Board of Directors considers necessary for the 
     management and operation of the Corporation.
       (3) Each member of the Board of Directors shall serve for a 
     term of two years. Members of the Board of Directors are 
     eligible for reappointment.
       (4) A vacancy on the Board of Directors shall be filled by 
     a majority vote of the remaining members of the Board.
       (5) The Secretary of the Army shall appoint the initial 
     Board of Directors. Four of the members of the initial Board 
     of Directors, to be designated by the Secretary at the time 
     of appointment, shall (notwithstanding paragraph (3)) serve 
     for a term of one year.
       (d) Director of Civilian Marksmanship.--(1) The Board of 
     Directors shall appoint an individual to serve as the 
     Director of Civilian Marksmanship.
       (2) The Director shall be responsible for the performance 
     of the daily operations of the Corporation and the functions 
     described in section 1612.

     SEC. 1612. CONDUCT OF CIVILIAN MARKSMANSHIP PROGRAM.

       (a) Functions.--The Corporation shall have responsibility 
     for the overall supervision, oversight, and control of the 
     Civilian Marksmanship Program, pursuant to the transfer of 
     the program under subsection (d), including the performance 
     of the following:
       (1) The instruction of citizens of the United States in 
     marksmanship.
       (2) The promotion of practice and safety in the use of 
     firearms, including the conduct of matches and competitions 
     in the use of those firearms.
       (3) The award to competitors of trophies, prizes, badges, 
     and other insignia.
       (4) The provision of security and accountability for all 
     firearms, ammunition, and other equipment under the custody 
     and control of the Corporation.
       (5) The issue, loan, or sale of firearms, ammunition, 
     supplies, and appliances under section 1614.
       (6) The procurement of necessary supplies, appliances, 
     clerical services, other related services, and labor to carry 
     out the Civilian Marksmanship Program.
       (b) Priority for Youth Activities.--In carrying out the 
     Civilian Marksmanship Program, the Corporation shall give 
     priority to activities that benefit firearms safety, 
     training, and competition for youth and that reach as many 
     youth participants as possible.
       (c) Access to Surplus Property.--(1) The Corporation may 
     obtain surplus property and supplies from the Defense 
     Reutilization Marketing Service to carry out the Civilian 
     Marksmanship Program.
       (2) Any transfer of property and supplies to the 
     Corporation under paragraph (1) shall be made without cost to 
     the Corporation.
       (d) Transfer of Civilian Marksmanship Program to 
     Corporation.--(1) The Secretary of the Army shall provide for 
     the transition of the Civilian Marksmanship Program, as 
     defined in section 4308(e) of title 10, United States Code 
     (as such section was in effect on the day before the date of 
     the enactment of this Act), from conduct by the Department of 
     the Army to conduct by the Corporation. The transition shall 
     be completed not later than September 30, 1996.
       (2) To carry out paragraph (1), the Secretary shall provide 
     such assistance and take such action as is necessary to 
     maintain the viability of the program and to maintain the 
     security of firearms, ammunition, and other property that are 
     transferred or reserved for transfer to the Corporation under 
     section 1615, 1616, or 1621. 
     
[[Page H448]]


     SEC. 1613. ELIGIBILITY FOR PARTICIPATION IN CIVILIAN 
                   MARKSMANSHIP PROGRAM.

       (a) Certification Requirement.--(1) Before a person may 
     participate in any activity sponsored or supported by the 
     Corporation, the person shall be required to certify by 
     affidavit the following:
       (A) The person has not been convicted of any Federal or 
     State felony or violation of section 922 of title 18, United 
     States Code.
       (B) The person is not a member of any organization that 
     advocates the violent overthrow of the United States 
     Government.
       (2) The Director of Civilian Marksmanship may require any 
     person to attach to the person's affidavit a 
     certification from the appropriate State or Federal law 
     enforcement agency for purposes of paragraph (1)(A).
       (b) Ineligibility Resulting From Certain Convictions.--A 
     person who has been convicted of a Federal or State felony or 
     a violation of section 922 of title 18, United States Code, 
     shall not be eligible to participate in any activity 
     sponsored or supported by the Corporation through the 
     Civilian Marksmanship Program.
       (c) Authority To Limit Participation.--The Director of 
     Civilian Marksmanship may limit participation as necessary to 
     ensure--
       (1) quality instruction in the use of firearms;
       (2) the safety of participants; and
       (3) the security of firearms, ammunition, and equipment.

     SEC. 1614. ISSUANCE, LOAN, AND SALE OF FIREARMS AND 
                   AMMUNITION BY THE CORPORATION.

       (a) Issuance and Loan.--For purposes of training and 
     competition, the Corporation may issue or loan, with or 
     without charges to recover administrative costs, caliber .22 
     rimfire and caliber .30 surplus rifles, caliber .22 and .30 
     ammunition, air rifles, targets, and other supplies and 
     appliances necessary for activities related to the Civilian 
     Marksmanship Program to the following:
       (1) Organizations affiliated with the Corporation that 
     provide training in the use of firearms to youth.
       (2) The Boy Scouts of America.
       (3) 4-H Clubs.
       (4) Future Farmers of America.
       (5) Other youth-oriented organizations.
       (b) Sales.--(1) The Corporation may sell at fair market 
     value caliber .22 rimfire and caliber .30 surplus rifles, 
     caliber .22 and .30 ammunition, air rifles, repair parts, and 
     accouterments to organizations affiliated with the 
     Corporation that provide training in the use of firearms.
       (2) Subject to subsection (e), the Corporation may sell at 
     fair market value caliber .22 rimfire and caliber .30 surplus 
     rifles, ammunition, targets, repair parts and accouterments, 
     and other supplies and appliances necessary for target 
     practice to citizens of the United States over 18 years of 
     age who are members of a gun club affiliated with the 
     Corporation. In addition to any other requirement, the 
     Corporation shall establish procedures to obtain a criminal 
     records check of the person with appropriate Federal and 
     State law enforcement agencies.
       (c) Limitations on Sales.--(1) The Corporation may not 
     offer for sale any repair part designed to convert any 
     firearm to fire in a fully automatic mode.
       (2) The Corporation may not sell rifles, ammunition, or any 
     other item available for sale to individuals under the 
     Civilian Marksmanship Program to a person who has been 
     convicted of a felony or a violation of section 922 of title 
     18, United States Code.
       (d) Oversight and Accountability.--The Corporation shall be 
     responsible for ensuring adequate oversight and 
     accountability of all firearms issued or loaned under this 
     section. The Corporation shall prescribe procedures for the 
     security of issued or loaned firearms in accordance with 
     Federal, State, and local laws.
       (e) Applicability of Other Law.--(1) Subject to paragraph 
     (2), sales under subsection (b)(2) are subject to applicable 
     Federal, State, and local laws.
       (2) Paragraphs (1), (2), (3), and (5) of section 922(a) of 
     title 18, United States Code, do not apply to the shipment, 
     transportation, receipt, transfer, sale, issuance, loan, or 
     delivery by the Corporation of any item that the Corporation 
     is authorized to issue, loan, sell, or receive under this 
     title.

     SEC. 1615. TRANSFER OF FIREARMS AND AMMUNITION FROM THE ARMY 
                   TO THE CORPORATION.

       (a) Transfers Required.--The Secretary of the Army shall, 
     in accordance with subsection (b), transfer to the 
     Corporation all firearms and ammunition that on the day 
     before the date of the enactment of this Act are under the 
     control of the Director of the Civilian Marksmanship Program, 
     including--
       (1) all firearms on loan to affiliated clubs and State 
     associations;
       (2) all firearms in the possession of the Civilian 
     Marksmanship Support Detachment; and
       (3) all M-1 Garand and caliber .22 rimfire rifles stored at 
     Anniston Army Depot, Anniston, Alabama.
       (b) Time for Transfer.--The Secretary shall transfer 
     firearms and ammunition under subsection (a) as and when 
     necessary to enable the Corporation--
       (1) to issue or loan such items in accordance with section 
     1614(a); or
       (2) to sell such items to purchasers in accordance with 
     section 1614(b).
       (c) Parts.--The Secretary may make available to the 
     Corporation any part from a rifle designated to be 
     demilitarized in the inventory of the Department of the Army.
       (d) Vesting of Title in Transferred Items.--Title to an 
     item transferred to the Corporation under this section shall 
     vest in the Corporation--
       (1) upon the issuance of the item to a recipient eligible 
     under section 1614(a) to receive the item; or
       (2) immediately before the Corporation delivers the item to 
     a purchaser of the item in accordance with a contract for a 
     sale of the item that is authorized under section 1614(b).
       (e) Costs of Transfers.--Any transfer of firearms, 
     ammunition, or parts to the Corporation under this section 
     shall be made without cost to the Corporation, except that 
     the Corporation shall assume the cost of preparation and 
     transportation of firearms and ammunition transferred under 
     this section.

     SEC. 1616. RESERVATION BY THE ARMY OF FIREARMS AND AMMUNITION 
                   FOR THE CORPORATION.

       (a) Reservation of Firearms and Ammunition.--The Secretary 
     of the Army shall reserve for the Corporation the following:
       (1) All firearms referred to in section 1615(a).
       (2) Ammunition for such firearms.
       (3) All M-16 rifles used to support the small arms firing 
     school that are held by the Department of the Army on the 
     date of the enactment of this Act.
       (4) Any parts from, and accessories and accouterments for, 
     surplus caliber .30 and caliber .22 rimfire rifles.
       (b) Storage of Firearms and Ammunition.--Firearms stored at 
     Anniston Army Depot, Anniston, Alabama, before the date of 
     the enactment of this Act and used for the Civilian 
     Marksmanship Program shall remain at that facility, or 
     another storage facility designated by the Secretary of the 
     Army, without cost to the Corporation, until the firearms are 
     issued, loaned, or sold by, or otherwise transferred to, the 
     Corporation.
       (c) Limitation on Demilitarization of M-1 Rifles.--After 
     the date of the enactment of this Act, the Secretary may not 
     demilitarize any M-1 Garand rifle in the inventory of the 
     Army unless that rifle is determined by the Defense Logistics 
     Agency to be unserviceable.
       (d) Exception for Transfers to Federal and State Agencies 
     for Counterdrug Purposes.--The requirement specified in 
     subsection (a) does not supersede the authority provided in 
     section 1208 of the National Defense Authorization Act for 
     Fiscal Years 1990 and 1991 (Public Law 101-189; 10 U.S.C. 372 
     note).

     SEC. 1617. ARMY LOGISTICAL SUPPORT FOR THE PROGRAM.

       (a) Logistical Support.--The Secretary of the Army shall 
     provide logistical support to the Civilian Marksmanship 
     Program and for competitions and other activities conducted 
     by the Corporation. The Corporation shall reimburse the 
     Secretary for incremental direct costs incurred in providing 
     such support. Such reimbursements shall be credited to the 
     appropriations account of the Department of the Army that is 
     charged to provide such support.
       (b) Reserve Component Personnel.--The Secretary shall 
     provide, without cost to the Corporation, for the use of 
     members of the National Guard and Army Reserve to support the 
     National Matches as part of the performance of annual 
     training pursuant to titles 10 and 32, United States Code.
       (c) Use of Department of Defense Facilities for National 
     Matches.--The National Matches may continue to be held at 
     those Department of Defense facilities at which the National 
     Matches were held before the date of the enactment of this 
     Act.
       (d) Regulations.--The Secretary shall prescribe regulations 
     to carry out this section.

     SEC. 1618. GENERAL AUTHORITIES OF THE CORPORATION.

       (a) Donations and Fees.--(1) The Corporation may solicit, 
     accept, hold, use, and dispose of donations of money, 
     property, and services received by gift, devise, bequest, or 
     otherwise.
       (2) The Corporation may impose, collect, and retain such 
     fees as are reasonably necessary to cover the direct and 
     indirect costs of the Corporation to carry out the Civilian 
     Marksmanship Program.
       (3) Amounts collected by the Corporation under the 
     authority of this subsection, including the proceeds from the 
     sale of firearms, ammunition, targets, and other supplies and 
     appliances, may be used only to support the Civilian 
     Marksmanship Program.
       (b) Corporate Seal.--The Corporation may adopt, alter, and 
     use a corporate seal, which shall be judicially noticed.
       (c) Contracts.--The Corporation may enter into contracts, 
     leases, agreements, or other transactions.
       (d) Obligations and Expenditures.--The Corporation may 
     determine the character of, and necessity for, its 
     obligations and expenditures and the manner in which they 
     shall be incurred, allowed, and paid and may incur, allow, 
     and pay such obligations and expenditures.
       (e) Related Authority.--The Corporation may take such other 
     actions as are necessary or appropriate to carry out the 
     authority provided in this section.

     SEC. 1619. DISTRIBUTION OF CORPORATE ASSETS IN EVENT OF 
                   DISSOLUTION.

       (a) Distribution.--If the Corporation dissolves, then--
       (1) upon the dissolution of the Corporation, title to all 
     firearms stored at Anniston Army 

[[Page H449]]
     Depot, Anniston, Alabama, on the date of the dissolution, all M-16 
     rifles that are transferred to the Corporation under section 
     1615(a)(2), that are referred to in section 1616(a)(3), or 
     that are otherwise under the control of the Corporation, and 
     all trophies received by the Corporation from the National 
     Board for the Promotion of Rifle Practice as of such date, 
     shall vest in the Secretary of the Army, and the Secretary 
     shall have the immediate right to the possession of such 
     items;
       (2) assets of the Corporation, other than assets described 
     in paragraph (1), may be distributed by the Corporation to an 
     organization that--
       (A) is exempt from taxation under section 501(a) of the 
     Internal Revenue Code of 1986 as an organization described in 
     section 501(c)(3) of such Code; and
       (B) performs functions similar to the functions described 
     in section 1612(a); and
       (3) all assets of the Corporation that are not distributed 
     pursuant to paragraphs (1) and (2) shall be sold, and the 
     proceeds from the sale of such assets shall be deposited in 
     the Treasury.
       (b) Prohibition.--Assets of the Corporation that are 
     distributed pursuant to the authority of subsection (a) may 
     not be distributed to an individual.
                  Subtitle B--Transitional Provisions

     SEC. 1621. TRANSFER OF FUNDS AND PROPERTY TO THE CORPORATION.

       (a) Funds.--(1) On the date of the submission of a 
     certification in accordance with section 1623 or, if earlier, 
     October 1, 1996, the Secretary of the Army shall transfer to 
     the Corporation--
       (A) the amounts that are available to the National Board 
     for the Promotion of Rifle Practice from sales programs and 
     fees collected in connection with competitions sponsored by 
     the Board; and
       (B) all funds that are in the nonappropriated fund account 
     known as the National Match Fund.
       (2) The funds transferred under paragraph (1)(A) shall be 
     used to carry out the Civilian Marksmanship Program.
       (3) Transfers under paragraph (1)(B) shall be made without 
     cost to the Corporation.
       (b) Property.--The Secretary of the Army shall, as soon as 
     practicable, transfer to the Corporation the following:
       (1) All automated data equipment, all other office 
     equipment, targets, target frames, vehicles, and all other 
     property under the control of the Director of Civilian 
     Marksmanship and the Civilian Marksmanship Support Detachment 
     on the day before the date of the enactment of this Act 
     (other than property to which section 1615(a) applies).
       (2) Title to property under the control of the National 
     Match Fund on such day.
       (3) All supplies and appliances under the control of the 
     Director of the Civilian Marksmanship Program on such day.
       (c) Offices.--The Corporation may use the office space of 
     the Office of the Director of Civilian Marksmanship until the 
     date on which the Secretary of the Army completes the 
     transfer of the Civilian Marksmanship Program to the 
     Corporation. The Corporation shall assume control of the 
     leased property occupied as of the date of the enactment of 
     this Act by the Civilian Marksmanship Support Detachment, 
     located at the Erie Industrial Park, Port Clinton, Ohio.
       (d) Costs of Transfers.--Any transfer of items to the 
     Corporation under this section shall be made without cost to 
     the Corporation.

     SEC. 1622. CONTINUATION OF ELIGIBILITY FOR CERTAIN CIVIL 
                   SERVICE BENEFITS FOR FORMER FEDERAL EMPLOYEES 
                   OF CIVILIAN MARKSMANSHIP PROGRAM.

       (a) Continuation of Eligibility.--Notwithstanding any other 
     provision of law, a Federal employee who is employed by the 
     Department of Defense to support the Civilian Marksmanship 
     Program as of the day before the date of the transfer of the 
     Program to the Corporation and is offered employment by the 
     Corporation as part of the transition described in section 
     1612(d) may, if the employee becomes employed by the 
     Corporation, continue to be eligible during continuous 
     employment with the Corporation for the Federal health, 
     retirement, and similar benefits (including life insurance) 
     for which the employee would have been eligible had the 
     employee continued to be employed by the Department of 
     Defense. The employer's contribution for such benefits shall 
     be paid by the Corporation.
       (b) Regulations.--The Director of the Office of Personnel 
     Management shall prescribe regulations to carry out 
     subsection (a).

     SEC. 1623. CERTIFICATION OF COMPLETION OF TRANSITION.

       (a) Certification Requirement.--Upon completion of the 
     appointment of the Board of Directors for the Corporation 
     under section 1611(c)(5) and of the transition required under 
     section 1612(d), the Secretary of the Army shall submit to 
     the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives a certification of the completion of such 
     actions.
       (b) Publication of Certification.--The Secretary shall take 
     such actions as are necessary to ensure that the 
     certification is published in the Federal Register promptly 
     after the submission of the certification under subsection 
     (a).

     SEC. 1624. REPEAL OF AUTHORITY FOR CONDUCT OF CIVILIAN 
                   MARKSMANSHIP PROGRAM BY THE ARMY.

       (a) Repeals.--(1) Sections 4307, 4308, 4310, and 4311 of 
     title 10, United States Code, are repealed.
       (2) The table of sections at the beginning of chapter 401 
     of such title is amended by striking out the items relating 
     to sections 4307, 4308, 4310, and 4311.
       (b) Conforming Amendments.--(1) Section 4313 of title 10, 
     United States Code, is amended--
       (A) by striking out subsection (b); and
       (B) in subsection (a)--
       (i) by striking out ``(a) Junior Competitors.--'' and 
     inserting in lieu thereof ``(a) Allowances for Participation 
     of Junior Competitors.--''; and
       (ii) in paragraph (3), by striking out ``(3) For the 
     purposes of this subsection'' and inserting in lieu thereof 
     ``(b) Junior Competitor Defined.--For the purposes of 
     subsection (a)''.
       (2) Section 4316 of such title is amended by striking out 
     ``, including fees charged and amounts collected pursuant to 
     subsections (b) and (c) of section 4308,''.
       (3) Section 925(a)(2)(A) of title 18, United States Code, 
     is amended by inserting after ``section 4308 of title 10'' 
     the following: ``before the repeal of such section by section 
     1624(a) of the Corporation for the Promotion of Rifle 
     Practice and Firearms Safety Act''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the earlier of--
       (1) the date on which the Secretary of the Army submits a 
     certification in accordance with section 1623; or
       (2) October 1, 1996.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

       This division may be cited as the ``Military Construction 
     Authorization Act for Fiscal Year 1996''.
                            TITLE XXI--ARMY

     SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(1), the Secretary of the Army may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:

                     Army: Inside the United States                     
------------------------------------------------------------------------
                                      Installation or                   
              State                       location            Amount    
------------------------------------------------------------------------
Alabama..........................  Fort Rucker..........      $5,900,000
                                   Redstone Arsenal.....      $5,000,000
Arizona..........................  Fort Huachuca........     $16,000,000
California.......................  Fort Irwin...........     $25,500,000
                                   Presidio of San            $3,000,000
                                    Francisco.                          
Colorado.........................  Fort Carson..........     $30,850,000
District of Columbia.............  Fort McNair..........     $13,500,000
Georgia..........................  Fort Benning.........     $37,900,000
                                   Fort Gordon..........      $5,750,000
                                   Fort Stewart.........      $8,400,000
Hawaii...........................  Schofield Barracks...     $30,000,000
Kansas...........................  Fort Riley...........      $7,000,000
Kentucky.........................  Fort Campbell........     $10,000,000
                                   Fort Knox............      $5,600,000
New Jersey.......................  Picatinny Arsenal....      $5,500,000
New Mexico.......................  White Sands Missile        $2,050,000
                                    Range.                              
New York.........................  Fort Drum............      $8,800,000
                                   United States              $8,300,000
                                    Military Academy.                   
                                   Watervliet Arsenal...        $680,000
North Carolina...................  Fort Bragg...........     $29,700,000
Oklahoma.........................  Fort Sill............     $14,300,000
South Carolina...................  Naval Weapons                        
                                    Station, Charleston.     $25,700,000
                                   Fort Jackson.........     $32,000,000
Texas............................  Fort Hood............     $32,500,000
                                   Fort Bliss...........     $56,900,000
                                   Fort Sam Houston.....      $7,000,000
Virginia.........................  Fort Eustis..........     $16,400,000
Washington.......................  Fort Lewis...........     $32,100,000
CONUS Classified.................  Classified Location..      $1,900,000
                                                         ---------------
                                     Total:.............    $478,230,000
                                                                        
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(2), the Secretary of the Army may acquire real 
     property and carry out military construction projects for the 
     locations outside the United States, and in the amounts, set 
     forth in the following table:

                     Army: Outside the United States                    
------------------------------------------------------------------------
                                      Installation or                   
             Country                      location            Amount    
------------------------------------------------------------------------
Korea............................  Camp Casey...........      $4,150,000
                                   Camp Hovey...........     $13,500,000
                                   Camp Pelham..........      $5,600,000
                                   Camp Stanley.........      $6,800,000
                                   Yongsan..............      $4,500,000
Overseas Classified..............  Classified Location..     $48,000,000
Worldwide........................  Host Nation Support..     $20,000,000
                                                         ---------------
                                     Total:.............    $102,550,000
                                                                        
------------------------------------------------------------------------

     SEC. 2102. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2104(a)(5)(A), the Secretary of the Army may 
     construct or acquire family housing units (including land 
     acquisition) at the installations, for the purposes, and in 
     the amounts set forth in the following table:

[[Page H450]]


                                              Army: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   Purpose               Amount    
----------------------------------------------------------------------------------------------------------------
Kentucky................................  Fort Knox.................  150 units.................     $19,000,000
New York................................  United States Military                                                
                                           Academy, West Point......  119 units.................     $16,500,000
Virginia................................  Fort Lee..................  135 units.................     $19,500,000
Washington..............................  Fort Lewis................  84 units..................     $10,800,000
                                                                                                 ---------------
                                                                        Total:..................     $65,800,000
                                                                                                                
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(5)(A), the Secretary of the Army may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of family housing units in an amount not to 
     exceed $2,000,000.

     SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2104(a)(5)(A), the Secretary of 
     the Army may improve existing military family housing in an 
     amount not to exceed $48,856,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) In General.--Subject to subsection (c), funds are 
     hereby authorized to be appropriated for fiscal years 
     beginning after September 30, 1995, for military 
     construction, land acquisition, and military family housing 
     functions of the Department of the Army in the total amount 
     of $2,147,427,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $478,230,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $102,550,000.
       (3) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $9,000,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $34,194,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvements of military family housing and facilities, 
     $116,656,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $1,337,596,000.
       (6) For the Homeowners Assistance Program, as authorized by 
     section 2832 of title 10, United States Code, $75,586,000, to 
     remain available until expended.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2101 of this Act may not exceed the 
     total amount authorized to be appropriated under paragraphs 
     (1) and (2) of subsection (a).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (6) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $6,385,000, which 
     represents the combination of project savings resulting from 
     favorable bids, reduced overhead costs, and cancellations due 
     to force structure changes.
                            TITLE XXII--NAVY

     SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(1), and, in the case of the project described in 
     section 2204(b)(2), other amounts appropriated pursuant to 
     authorizations enacted after this Act for that project, the 
     Secretary of the Navy may acquire real property and carry out 
     military construction projects for the installations and 
     locations inside the United States, and in the amounts, set 
     forth in the following table:

                     Navy: Inside the United States                     
------------------------------------------------------------------------
                                      Installation or                   
              State                       location            Amount    
------------------------------------------------------------------------
California.......................  Marine Corps Air-                    
                                    Ground Combat                       
                                    Center, Twentynine                  
                                    Palms...............      $2,490,000
                                   Marine Corps Base,                   
                                    Camp Pendleton......     $27,584,000
                                   Naval Command,                       
                                    Control, and Ocean                  
                                    Surveillance Center,                
                                    San Diego...........      $3,170,000
                                   Naval Air Station,                   
                                    Lemoore.............      $7,600,000
                                   Naval Air Station,                   
                                    North Island........     $99,150,000
                                   Naval Air Warfare                    
                                    Center Weapons                      
                                    Division, China Lake      $3,700,000
                                   Naval Air Warfare                    
                                    Center Weapons                      
                                    Division, Point Mugu      $1,300,000
                                   Naval Construction                   
                                    Batallion Center,                   
                                    Port Hueneme........     $16,700,000
                                   Naval Station, San                   
                                    Diego...............     $19,960,000
Florida..........................  Naval School                         
                                    Explosive Ordinance                 
                                    Disposal, Eglin Air                 
                                    Force Base..........     $16,150,000
                                   Naval Technical                      
                                    Training Center,                    
                                    Corry Station,                      
                                    Pensacola...........      $2,565,000
Georgia..........................  Strategic Weapons                    
                                    Facility, Atlantic,                 
                                    Kings Bay...........      $2,450,000
Hawaii...........................  Honolulu Naval                       
                                    Computer and                        
                                    Telecommunications                  
                                    Area, Master Station                
                                    Eastern Pacific.....      $1,980,000
                                   Intelligence Center                  
                                    Pacific, Pearl                      
                                    Harbor..............      $2,200,000
                                   Naval Submarine Base,                
                                    Pearl Harbor........     $22,500,000
Illinois.........................  Naval Training                       
                                    Center, Great Lakes.     $12,440,000
Indiana..........................  Crane Naval Surface                  
                                    Warfare Center......      $3,300,000
Maryland.........................  Naval Academy,                       
                                    Annapolis...........      $3,600,000
New Jersey.......................  Naval Air Warfare                    
                                    Center Aircraft                     
                                    Division, Lakehurst.      $1,700,000
North Carolina...................  Marine Corps Air                     
                                    Station, Cherry                     
                                    Point...............     $11,430,000
                                   Marine Corps Air                     
                                    Station, New River..     $14,650,000
                                   Marine Corps Base,                   
                                    Camp LeJeune........     $59,300,000
Pennsylvania.....................  Philadelphia Naval                   
                                    Shipyard............      $6,000,000
South Carolina...................  Marine Corps Air                     
                                    Station, Beaufort...     $15,000,000
Texas............................  Naval Air Station,                   
                                    Corpus Christi......      $4,400,000
                                   Naval Air Station,                   
                                    Kingsville..........      $2,710,000
                                   Naval Station,                       
                                    Ingleside...........      $2,640,000
Virginia.........................  Fleet and Industrial                 
                                    Supply Center,                      
                                    Williamsburg........      $8,390,000
                                   Henderson Hall,                      
                                    Arlington...........      $1,900,000
                                   Marine Corps Combat                  
                                    Development Command,                
                                    Quantico............      $3,500,000
                                   Naval Hospital,                      
                                    Portsmouth..........      $9,500,000
                                   Naval Station,                       
                                    Norfolk.............     $10,580,000
                                   Naval Weapons                        
                                    Station, Yorktown...      $1,300,000
Washington.......................  Naval Undersea                       
                                    Warfare Center                      
                                    Division, Keyport...      $5,300,000
                                   Puget Sound Naval                    
                                    Shipyard, Bremerton.     $19,870,000
West Virginia....................  Naval Security Group                 
                                    Detachment..........      $7,200,000
CONUS Classified.................  Classified Locations.      $1,200,000
                                                         ---------------
                                     Total:.............    $435,409,000
                                                                        
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(2), the Secretary of the Navy may acquire real 
     property and carry out military construction projects for the 
     installations and locations outside the United States, and in 
     the amounts, set forth in the following table:

                     Navy: Outside the United States                    
------------------------------------------------------------------------
                                      Installation or                   
             Country                      location            Amount    
------------------------------------------------------------------------
Guam.............................  Naval Computer and                   
                                    Telecommunications                  
                                    Area, Master Station                
                                    Western Pacific.....      $2,250,000
                                   Navy Public Works                    
                                    Center, Guam........     $16,180,000
Italy............................  Naval Air Station,                   
                                    Sigonella...........     $12,170,000
                                   Naval Support                        
                                    Activity, Naples....     $24,950,000
Puerto Rico......................  Naval Security Group                 
                                    Activity, Sabana                    
                                    Seca................      $2,200,000
                                   Naval Station,                       
                                    Roosevelt Roads.....     $11,500,000
                                                         ---------------
                                     Total..............     $69,250,000
                                                                        
------------------------------------------------------------------------

     SEC. 2202. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2204(a)(5)(A), the Secretary of the Navy may 
     construct or acquire family housing units (including land 
     acquisition) at the installations, for the purposes, and in 
     the amounts set forth in the following table:

                                              Navy: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   Purpose               Amount    
----------------------------------------------------------------------------------------------------------------
California..............................  Marine Corps Base, Camp                                               
                                           Pendleton................  138 units.................     $20,000,000
                                          Marine Corps Base, Camp                                               
                                           Pendleton................  Community Center..........      $1,438,000
                                          Marine Corps Base, Camp                                               
                                           Pendleton................  Housing Office............        $707,000
                                          Naval Air Station, Lemoore  240 units.................     $34,900,000
                                          Pacific Missile Test                                                  
                                           Center, Point Mugu.......  Housing Office............      $1,020,000
                                          Public Works Center, San                                              
                                           Diego....................  346 units.................     $49,310,000
Hawaii..................................  Naval Complex, Oahu.......  252 units.................     $48,400,000
Maryland................................  Naval Air Test Center,                                                
                                           Patuxent River...........  Warehouse.................        $890,000
                                          US Naval Academy,                                                     
                                           Annapolis................  Housing Office............        $800,000
North Carolina..........................  Marine Corps Air Station,                                             
                                           Cherry Point.............  Community Center..........      $1,003,000
Pennsylvania............................  Navy Ships Parts Control                                              
                                           Center, Mechanicsburg....  Housing Office............        $300,000
Puerto Rico.............................  Naval Station, Roosevelt                                              
                                           Roads....................  Housing Office............        $710,000
Virginia................................  Naval Surface Warfare                                                 
                                           Center, Dahlgren.........  Housing Office............        $520,000
                                          Public Works Center,                                                  
                                           Norfolk..................  320 units.................     $42,500,000
                                          Public Works Center,                                                  
                                           Norfolk..................  Housing Office............      $1,390,000
West Virginia...........................  Security Group Naval                                                  
                                           Detachment, Sugar Grove..   23 units.................      $3,590,000
                                                                                                 ---------------
                                                                        Total:..................    $207,478,000
                                                                                                                
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(5)(A), the Secretary of the Navy may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $24,390,000.

     SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2204(a)(5)(A), the Secretary of 
     the Navy may improve existing military family housing units 
     in an amount not to exceed $290,831,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) In General.--Subject to subsection (c), funds are 
     hereby authorized to be appropriated for fiscal years 
     beginning after September 30, 1995, for military 
     construction, land acquisition, and military family housing 
     functions of the Department of the Navy in the total amount 
     of $2,119,317,000 as follows: 
     
[[Page H451]]

       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $427,709,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $69,250,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $7,200,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $50,515,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $522,699,000.
       (B) For support of military housing (including functions 
     described in section 2833 of title 10, United States Code), 
     $1,048,329,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2201 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a); and
       (2) $7,700,000 (the balance of the amount authorized under 
     section 2201(a) for the construction of a bachelor enlisted 
     quarters at the Naval Construction Batallion Center, Port 
     Hueneme, California).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (5) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $6,385,000, which 
     represents the combination of project savings resulting from 
     favorable bids, reduced overhead costs, and cancellations due 
     to force structure changes.

     SEC. 2205. REVISION OF FISCAL YEAR 1995 AUTHORIZATION OF 
                   APPROPRIATIONS TO CLARIFY AVAILABILITY OF FUNDS 
                   FOR LARGE ANECHOIC CHAMBER FACILITY, PATUXENT 
                   RIVER NAVAL WARFARE CENTER, MARYLAND.

       Section 2204(a) of the Military Construction Authorization 
     Act for Fiscal Year 1995 (division B of Public Law 103-337; 
     108 Stat. 3033) is amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``$1,591,824,000'' and inserting in lieu thereof 
     ``$1,601,824,000''; and
       (2) by adding at the end the following:
       ``(6) For the construction of the large anechoic chamber 
     facility at the Patuxent River Naval Warfare Center, Aircraft 
     Division, Maryland, authorized by section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 1993 
     (division B of Public Law 102-484; 106 Stat. 2590), 
     $10,000,000.''.

     SEC. 2206. AUTHORITY TO CARRY OUT LAND ACQUISITION PROJECT, 
                   HAMPTON ROADS, VIRGINIA.

       The table in section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 1993 (division B of Public 
     Law 102-484; 106 Stat. 2589) is amended--
       (1) in the item relating to Damneck, Fleet Combat Training 
     Center, Virginia, by striking out ``$19,427,000'' in the 
     amount column and inserting in lieu thereof ``$14,927,000''; 
     and
       (2) by inserting after the item relating to Damneck, Fleet 
     Combat Training Center, Virginia, the following new item:


------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                 Hampton Roads..........      $4,500,000
------------------------------------------------------------------------

     SEC. 2207. ACQUISITION OF LAND, HENDERSON HALL, ARLINGTON, 
                   VIRGINIA.

       (a) Authority To Acquire.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(1), the Secretary of the Navy may acquire all right, 
     title, and interest of any party in and to a parcel of real 
     property, including an abandoned mausoleum, consisting of 
     approximately 0.75 acres and located in Arlington, Virginia, 
     the site of Henderson Hall.
       (b) Demolition of Mausoleum.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(1), the Secretary may--
       (1) demolish the mausoleum located on the parcel acquired 
     under subsection (a); and
       (2) provide for the removal and disposition in an 
     appropriate manner of the remains contained in the mausoleum.
       (c) Authority To Design Public Works Facility.--Using 
     amounts appropriated pursuant to the authorization of 
     appropriations in section 2204(a)(1), the Secretary may 
     obtain architectural and engineering services and 
     construction design for a warehouse and office facility for 
     the Marine Corps to be constructed on the property acquired 
     under subsection (a).
       (d) Description of Property.--The exact acreage and legal 
     description of the real property authorized to be acquired 
     under subsection (a) shall be determined by a survey that is 
     satisfactory to the Secretary. The cost of the survey shall 
     be borne by the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the acquisition under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2208. ACQUISITION OR CONSTRUCTION OF MILITARY FAMILY 
                   HOUSING IN VICINITY OF SAN DIEGO, CALIFORNIA.

       (a) Authority To Use Litigation Proceeds.--Upon final 
     settlement in the case of Rossmoor Liquidating Trust against 
     United States, in the United States District Court for the 
     Central District of California (Case No. CV 82-0956 LEW 
     (Px)), the Secretary of the Treasury shall deposit in a 
     separate account any funds paid to the United States in 
     settlement of such case. At the request of the Secretary of 
     the Navy, the Secretary of the Treasury shall make available 
     amounts in the account to the Secretary of the Navy solely 
     for the acquisition or construction of military family 
     housing, including the acquisition of land necessary for such 
     acquisition or construction, for members of the Armed Forces 
     and their dependents stationed in, or in the vicinity of, San 
     Diego, California. In using amounts in the account, the 
     Secretary of the Navy may use the authorities provided in 
     subchapter IV of chapter 169 of title 10, United States Code, 
     as added by section 2801 of this Act.
       (b) Units Authorized.--Not more than 150 military family 
     housing units may be acquired or constructed with funds 
     referred to in subsection (a). The units authorized by this 
     subsection are in addition to any other units of military 
     family housing authorized to be acquired or constructed in, 
     or in the vicinity of, San Diego, California.
       (c) Payment of Excess Into Treasury.--The Secretary of the 
     Treasury shall deposit into the Treasury as miscellaneous 
     receipts funds referred to in subsection (a) that have not 
     been obligated for construction under this section within 
     four years after receipt thereof.
       (d) Limitation.--The Secretary may not enter into any 
     contract for the acquisition or construction of military 
     family housing under this section until after the expiration 
     of the 21-day period beginning on the day after the day on 
     which the Secretary transmits to the congressional defense 
     committees a report containing the details of such contract.
       (e) Repeal of Existing Authority.--Section 2848 of the 
     Military Construction Authorization Act for Fiscal Years 1990 
     and 1991 (division B of Public Law 101-189; 103 Stat. 1666) 
     is repealed.
                         TITLE XXIII--AIR FORCE

     SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(1), and, in the case of the project described in 
     section 2304(b)(2), other amounts appropriated pursuant to 
     authorizations enacted after this Act for that project, the 
     Secretary of the Air Force may acquire real property and 
     carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:

                   Air Force: Inside the United States                  
------------------------------------------------------------------------
                                      Installation or                   
              State                       location            Amount    
------------------------------------------------------------------------
Alabama..........................  Maxwell Air Force          $5,200,000
                                    Base.                               
Alaska...........................  Eielson Air Force                    
                                    Base................      $7,850,000
                                   Elmendorf Air Force                  
                                    Base................      $9,100,000
                                   Tin City Long Range                  
                                    RADAR Site..........      $2,500,000
Arizona..........................  Davis-Monthan Air          $4,800,000
                                    Force Base.                         
                                   Luke Air Force Base..      $5,200,000
Arkansas.........................  Little Rock Air Force      $2,500,000
                                    Base.                               
California.......................  Beale Air Force Base.      $7,500,000
                                   Edwards Air Force         $33,800,000
                                    Base.                               
                                   Travis Air Force Base     $26,700,000
                                   Vandenberg Air Force       $6,000,000
                                    Base.                               
Colorado.........................  Buckley Air National       $5,500,000
                                    Guard Base.                         
                                   Peterson Air Force         $4,390,000
                                    Base.                               
                                   US Air Force Academy.     $12,874,000
Delaware.........................  Dover Air Force Base.      $5,500,000
District of Columbia.............  Bolling Air Force         $12,100,000
                                    Base.                               
Florida..........................  Cape Canaveral Air         $1,600,000
                                    Force Station.                      
                                   Eglin Air Force Base.     $13,500,000
                                   Tyndall Air Force          $1,200,000
                                    Base.                               
Georgia..........................  Moody Air Force Base.     $25,190,000
                                   Robins Air Force Base     $12,400,000
Hawaii...........................  Hickam Air Force Base     $10,700,000
Idaho............................  Mountain Home Air         $18,650,000
                                    Force Base.                         
Illinois.........................  Scott Air Force Base.     $12,700,000
Kansas...........................  McConnell Air Force        $9,450,000
                                    Base.                               
Louisiana........................  Barksdale Air Force        $2,500,000
                                    Base.                               
Maryland.........................  Andrews Air Force         $12,886,000
                                    Base.                               
Mississippi......................  Columbus Air Force         $1,150,000
                                    Base.                               
                                   Keesler Air Force          $6,500,000
                                    Base.                               
Missouri.........................  Whiteman Air Force        $24,600,000
                                    Base.                               
Nevada...........................  Nellis Air Force Base     $17,500,000
New Jersey.......................  McGuire Air Force         $16,500,000
                                    Base.                               
New Mexico.......................  Cannon Air Force Base     $13,420,000
                                   Holloman Air Force         $6,000,000
                                    Base.                               
                                   Kirtland Air Force         $9,156,000
                                    Base.                               
North Carolina...................  Pope Air Force Base..      $8,250,000
                                   Seymour Johnson Air        $5,530,000
                                    Force Base.                         
North Dakota.....................  Grand Forks Air Force     $14,800,000
                                    Base.                               
                                   Minot Air Force Base.      $1,550,000
Ohio.............................  Wright Patterson Air       $4,100,000
                                    Force Base.                         
Oklahoma.........................  Altus Air Force Base.      $4,800,000
                                   Tinker Air Force Base     $11,100,000
South Carolina...................  Charleston Air Force      $12,500,000
                                    Base.                               
                                   Shaw Air Force Base..      $1,300,000
South Dakota.....................  Ellsworth Air Force        $7,800,000
                                    Base.                               
Tennessee........................  Arnold Air Force Base      $5,000,000
Texas............................  Dyess Air Force Base.      $5,400,000
                                   Goodfellow Air Force       $1,000,000
                                    Base.                               
                                   Kelly Air Force Base.      $3,244,000
                                   Laughlin Air Force         $1,400,000
                                    Base.                               
                                   Randolph Air Force         $3,100,000
                                    Base.                               
                                   Sheppard Air Force         $1,500,000
                                    Base.                               
Utah.............................  Hill Air Force Base..      $8,900,000
Virginia.........................  Langley Air Force          $1,000,000
                                    Base.                               
Washington.......................  Fairchild Air Force       $15,700,000
                                    Base.                               
                                   McChord Air Force          $9,900,000
                                    Base.                               
Wyoming..........................  F.E. Warren Air Force     $9,000,000 
                                    Base.                               

[[Page H452]]
                                                                        
CONUS Classified.................  Classified Location..        $700,000
                                                         ---------------
                                     Total:.............    $504,690,000
                                                                        
------------------------------------------------------------------------


       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(2), the Secretary of the Air Force may acquire real 
     property and may carry out military construction projects for 
     the installations and locations outside the United States, 
     and in the amounts, set forth in the following table:

                  Air Force: Outside the United States                  
------------------------------------------------------------------------
                                      Installation or                   
             Country                      location            Amount    
------------------------------------------------------------------------
Germany..........................  Spangdahlem Air Base.      $8,380,000
                                   Vogelweh Annex.......      $2,600,000
Greece...........................  Araxos Radio Relay         $1,950,000
                                    Site.                               
Italy............................  Aviano Air Base......      $2,350,000
                                   Ghedi Radio Relay          $1,450,000
                                    Site.                               
Turkey...........................  Ankara Air Station...      $7,000,000
                                   Incirlik Air Base....      $4,500,000
United Kingdom...................  Lakenheath Royal Air                 
                                    Force Base..........      $1,820,000
                                   Mildenhall Royal Air       $2,250,000
                                    Force Base.                         
Overseas Classified..............  Classified Location..     $17,100,000
                                                         ---------------
                                     Total:.............     $49,400,000
                                                                        
------------------------------------------------------------------------

     SEC. 2302. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2304(a)(5)(A), the Secretary of the Air Force may 
     construct or acquire family housing units (including land 
     acquisition) at the installations, for the purposes, and in 
     the amounts set forth in the following table:

                                            Air Force: Family Housing                                           
----------------------------------------------------------------------------------------------------------------
              State/Country                      Installation                   Purpose               Amount    
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Elmendorf Air Force Base..  Housing Office/Maintenance                
                                                                       Facility.................      $3,000,000
Arizona.................................  Davis-Monthan Air Force                                               
                                           Base.....................  80 units..................      $9,498,000
Arkansas................................  Little Rock Air Force Base  Replace 1 General Officer                 
                                                                       Quarters.................        $210,000
California..............................  Beale Air Force Base......  Family Housing Office.....        $842,000
                                          Edwards Air Force Base....  127 units.................     $20,750,000
                                          Vandenberg Air Force Base.  Family Housing Office.....        $900,000
                                          Vandenberg Air Force Base.  143 units.................     $20,200,000
Colorado................................  Peterson Air Force Base...  Family Housing Office.....        $570,000
District of Columbia....................  Bolling Air Force Base....  32 units..................      $4,100,000
Florida.................................  Eglin Air Force Base......  Family Housing Office.....        $500,000
                                          Eglin Auxiliary Field 9...  Family Housing Office.....        $880,000
                                          MacDill Air Force Base....  Family Housing Office.....        $646,000
                                          Patrick Air Force Base....  70 units..................      $7,947,000
                                          Tyndall Air Force Base....  82 units..................      $9,800,000
Georgia.................................  Moody Air Force Base......  1 Officer & 1 General                     
                                                                       Officer Quarter..........        $513,000
                                          Robins Air Force Base.....  83 units..................      $9,800,000
Guam....................................  Andersen Air Force Base...  Housing Maintenance                       
                                                                       Facility.................      $1,700,000
Idaho...................................  Mountain Home Air Force                                               
                                           Base.....................  Housing Management                        
                                                                       Facility.................        $844,000
Kansas..................................  McConnell Air Force Base..  39 units..................      $5,193,000
Louisiana...............................  Barksdale Air Force Base..  62 units..................     $10,299,000
Massachusetts...........................  Hanscom Air Force Base....  32 units..................      $4,900,000
Mississippi.............................  Keesler Air Force Base....  98 units..................      $9,300,000
Missouri................................  Whiteman Air Force Base...  72 units..................      $9,948,000
Nevada..................................  Nellis Air Force Base.....  102 units.................     $16,357,000
New Mexico..............................  Holloman Air Force Base...  1 General Officer Quarters        $225,000
                                          Kirtland Air Force Base...  105 units.................     $11,000,000
North Carolina..........................  Pope Air Force Base.......  104 units.................      $9,984,000
                                          Seymour Johnson Air Force                                             
                                           Base.....................  1 General Officer Quarters        $204,000
South Carolina..........................  Shaw Air Force Base.......  Housing Maintenance                       
                                                                       Facility.................        $715,000
Texas...................................  Dyess Air Force Base......  Housing Maintenance                       
                                                                       Facility.................        $580,000
                                          Lackland Air Force Base...  67 units..................      $6,200,000
                                          Sheppard Air Force Base...  Management Office.........        $500,000
                                          Sheppard Air Force Base...  Housing Maintenance                       
                                                                       Facility.................        $600,000
Turkey..................................  Incirlik Air Base.........  150 units.................     $10,146,000
Washington..............................  McChord Air Force Base....  50 units..................      $9,504,000
                                                                                                 ---------------
                                                                        Total:..................    $198,355,000
                                                                                                                
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(5)(A), the Secretary of the Air Force may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $8,989,000.

     SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2304(a)(5)(A), the Secretary of 
     the Air Force may improve existing military family housing 
     units in an amount not to exceed $90,959,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) In General.--Subject to subsection (c), funds are 
     hereby authorized to be appropriated for fiscal years 
     beginning after September 30, 1995, for military 
     construction, land acquisition, and military family housing 
     functions of the Department of the Air Force in the total 
     amount of $1,735,086,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $504,690,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $49,400,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $9,030,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $30,835,000.
       (5) For military housing functions:
       (A) For construction and acquisition, planning and design 
     and improvement of military family housing and facilities, 
     $298,303,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $849,213,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2301 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a); and
       (2) $5,400,000 (the balance of the amount authorized under 
     section 2301(a) for the construction of a corrosion control 
     facility at Tinker Air Force Base, Oklahoma).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (5) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $6,385,000, which 
     represents the combination of project savings resulting from 
     favorable bids, reduced overhead costs, and cancellations due 
     to force structure changes.

     SEC. 2305. RETENTION OF ACCRUED INTEREST ON FUNDS DEPOSITED 
                   FOR CONSTRUCTION OF FAMILY HOUSING, SCOTT AIR 
                   FORCE BASE, ILLINOIS.

       (a) Retention of Interest.--Section 2310 of the Military 
     Construction Authorization Act for Fiscal Year 1994 (division 
     B of Public Law 103-160; 107 Stat. 1874) is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Retention of Interest.--Interest accrued on the funds 
     transferred to the County pursuant to subsection (a) shall be 
     retained in the same account as the transferred funds and 
     shall be available to the County for the same purpose as the 
     transferred funds.''.
       (b) Limitation on Units Constructed.--Subsection (c) of 
     such section, as redesignated by subsection (a)(1), is 
     amended by adding at the end the following new sentence: 
     ``The number of units constructed using the transferred funds 
     (and interest accrued on such funds) may not exceed the 
     number of units of military family housing authorized for 
     Scott Air Force Base in section 2302(a) of the Military 
     Construction Authorization Act for Fiscal Year 1993.''.
       (c) Effect of Completion of Construction.--Such section is 
     further amended by adding at the end the following new 
     subsection: 
     
[[Page H453]]

       ``(d) Completion of Construction.--Upon the completion of 
     the construction authorized by this section, all funds 
     remaining from the funds transferred pursuant to subsection 
     (a), and the remaining interest accrued on such funds, shall 
     be deposited in the general fund of the Treasury of the 
     United States.''.
       (d) Reports on Accrued Interest.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(e) Reports on Accrued Interest.--Not later than March 1 
     of each year following a year in which funds available to the 
     County under this section are used by the County for the 
     purpose referred to in subsection (c), the Secretary shall 
     submit to the congressional defense committees a report 
     setting forth the amount of interest that accrued on such 
     funds during the preceding year.''.
                      TITLE XXIV--DEFENSE AGENCIES

     SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2405(a)(1), and, in the case of the project described in 
     section 2405(b)(2), other amounts appropriated pursuant to 
     authorizations enacted after this Act for that project, the 
     Secretary of Defense may acquire real property and carry out 
     military construction projects for the installations and 
     locations inside the United States, and in the amounts, set 
     forth in the following table:

               Defense Agencies: Inside the United States               
------------------------------------------------------------------------
                                      Installation or                   
           Agency/State                   location            Amount    
------------------------------------------------------------------------
Ballistic Missile Defense                                               
 Organization                                                           
Texas............................  Fort Bliss...........     $13,600,000
                                                                        
Defense Finance & Accounting                                            
 Service                                                                
Ohio.............................  Columbus Center......     $72,403,000
                                                                        
Defense Intelligence Agency                                             
District of Columbia.............  Bolling Air Force                    
                                    Base................        $498,000
                                                                        
Defense Logistics Agency                                                
Alabama..........................  Defense Distribution                 
                                    Anniston............      $3,550,000
California.......................  Defense Distribution                 
                                    Stockton............     $15,000,000
                                   DFSC, Point Mugu.....        $750,000
Delaware.........................  DFSC, Dover Air Force                
                                    Base................     $15,554,000
Florida..........................  DFSC, Eglin Air Force                
                                    Base................      $2,400,000
Louisiana........................  DFSC, Barksdale Air                  
                                    Force Base..........     $13,100,000
New Jersey.......................  DFSC, McGuire Air                    
                                    Force Base..........     $12,000,000
Pennsylvania.....................  Defense Distribution                 
                                    New Cumberland--DDSP      $4,600,000
Virginia.........................  Defense Distribution                 
                                    Depot--DDNV.........     $10,400,000
                                                                        
Defense Mapping Agency                                                  
Missouri.........................  Defense Mapping                      
                                    Agency Aerospace                    
                                    Center..............     $40,300,000
                                                                        
Defense Medical Facility Office                                         
Alabama..........................  Maxwell Air Force                    
                                    Base................     $10,000,000
Arizona..........................  Luke Air Force Base..      $8,100,000
California.......................  Fort Irwin...........      $6,900,000
                                   Marine Corps Base,                   
                                    Camp Pendleton......      $1,700,000
                                   Vandenberg Air Force                 
                                    Base................      $5,700,000
Delaware.........................  Dover Air Force Base.      $4,400,000
Georgia..........................  Fort Benning.........      $5,600,000
Louisiana........................  Barksdale Air Force                  
                                    Base................      $4,100,000
Maryland.........................  Bethesda Naval                       
                                    Hospital............      $1,300,000
                                   Walter Reed Army                     
                                    Institute of                        
                                    Research............      $1,550,000
Texas............................  Fort Hood............      $5,500,000
                                   Lackland Air Force                   
                                    Base................      $6,100,000
Virginia.........................  Northwest Naval                      
                                    Security Group                      
                                    Activity............      $4,300,000
                                                                        
National Security Agency                                                
Maryland.........................  Fort Meade...........     $18,733,000
                                                                        
Office of the Secretary of                                              
 Defense                                                                
Inside the United States.........  Classified location..     $11,500,000
                                                                        
Department of Defense Dependents                                        
 Schools                                                                
Alabama..........................  Maxwell Air Force                    
                                    Base................      $5,479,000
Georgia..........................  Fort Benning.........      $1,116,000
South Carolina...................  Fort Jackson.........        $576,000
                                                                        
Special Operations Command                                              
California.......................  Camp Pendleton.......      $5,200,000
Florida..........................  Eglin Air Force Base                 
                                    (Duke Field)........      $2,400,000
                                   Eglin Auxiliary Field                
                                    9...................     $14,150,000
North Carolina...................  Fort Bragg...........     $23,800,000
Pennsylvania.....................  Olmstead Field,                      
                                    Harrisburg IAP......      $1,643,000
Virginia.........................  Dam Neck.............      $4,500,000
                                   Naval Amphibious                     
                                    Base, Little Creek..      $6,100,000
                                                         ---------------
                                                                        
                                     Total:.............    $364,602,000
------------------------------------------------------------------------

       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2405(a)(2), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations and locations outside the United States, and in 
     the amounts, set forth in the following table:

               Defense Agencies: Outside the United States              
------------------------------------------------------------------------
          Agency/Country             Installation name        Amount    
------------------------------------------------------------------------
Defense Logistics Agency                                                
Puerto Rico......................  Defense Fuel Support                 
                                    Point, Roosevelt                    
                                    Roads...............      $6,200,000
Spain............................  DFSC Rota............      $7,400,000
                                                                        
Defense Medical Facility Office                                         
Italy............................  Naval Support                        
                                    Activity, Naples....      $5,000,000
                                                                        
Department of Defense Dependents                                        
 Schools                                                                
Germany..........................  Ramstein Air Force                   
                                    Base................     $19,205,000
Italy............................  Naval Air Station,                   
                                    Sigonella...........      $7,595,000
                                                                        
National Security Agency                                                
United Kingdom...................  Menwith Hill Station.        $677,000
                                                                        
Special Operations Command                                              
Guam.............................  Naval Station, Guam..      $8,800,000
                                                         ---------------
                                     Total:.............     $54,877,000
------------------------------------------------------------------------

     SEC. 2402. MILITARY FAMILY HOUSING PRIVATE INVESTMENT.

       (a) Availability of Funds for Investment.--Of the amount 
     authorized to be appropriated pursuant to section 
     2405(a)(11)(A), $22,000,000 shall be available for crediting 
     to the Department of Defense Family Housing Improvement Fund 
     established by section 2883(a)(1) of title 10, United States 
     Code (as added by section 2801 of this Act).
       (b) Use of Funds.--The Secretary of Defense may use funds 
     credited to the Department of Defense Family Housing 
     Improvement Fund under subsection (a) to carry out any 
     activities authorized by subchapter IV of chapter 169 of such 
     title (as added by such section) with respect to military 
     family housing.

     SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2405(a)(11)(A), the Secretary of 
     Defense may improve existing military family housing units in 
     an amount not to exceed $3,772,000.

     SEC. 2404. ENERGY CONSERVATION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2405(a)(9), the Secretary of 
     Defense may carry out energy conservation projects under 
     section 2865 of title 10, United States Code.

     SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1995, for military construction, land acquisition, and 
     military family housing functions of the Department of 
     Defense (other than the military departments), in the total 
     amount of $4,629,491,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $329,599,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $54,877,000.
       (3) For military construction projects at Portsmouth Naval 
     Hospital, Virginia, authorized by section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Years 1990 
     and 1991 (division B of Public Law 101-189; 103 Stat. 1640), 
     $47,900,000.
       (4) For military construction projects at Elmendorf Air 
     Force Base, Alaska, hospital replacement, authorized by 
     section 2401(a) of the Military Construction Authorization 
     Act for Fiscal Year 1993 (division B of Public Law 102-484; 
     106 Stat. 2599), $28,100,000.
       (5) For military construction projects at Walter Reed Army 
     Institute of Research, Maryland, hospital replacement, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1993 (division B of Public 
     Law 102-484; 106 Stat. 2599), $27,000,000.
       (6) For unspecified minor construction projects under 
     section 2805 of title 10, United States Code, $23,007,000.
       (7) For contingency construction projects of the Secretary 
     of Defense under section 2804 of title 10, United States 
     Code, $11,037,000.
       (8) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $68,837,000.
       (9) For energy conservation projects authorized by section 
     2404, $40,000,000.
       (10) For base closure and realignment activities as 
     authorized by the Defense Base Closure and Realignment Act of 
     1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
     2687 note), $3,897,892,000.
       (11) For military family housing functions:
       (A) For construction and acquisition and improvement of 
     military family housing and facilities, $25,772,000.
       (B) For support of military housing (including functions 
     described in section 2833 of title 10, United States Code), 
     $40,467,000, of which not more than $24,874,000 may be 
     obligated or expended for the leasing of military family 
     housing units worldwide.
       (b) Limitation of Total Cost of Construction Projects.--
     Notwithstanding the cost variation authorized by section 2853 
     of title 10, United States Code, and any other cost 
     variations authorized by law, the total cost of all projects 
     carried out under section 2401 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a); and
       (2) $35,003,000 (the balance of the amount authorized under 
     section 2401(a) for the construction of a center of the 
     Defense Finance and Accounting Service at Columbus, Ohio).

     SEC. 2406. LIMITATIONS ON USE OF DEPARTMENT OF DEFENSE BASE 
                   CLOSURE ACCOUNT 1990.

       (a) Set Aside for 1995 Round.--Of the amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2405(a)(10), $784,569,000 shall be available only for the 
     purposes described in section 2905 of 

[[Page H454]]
     the Defense Base Closure and Realignment Act of 1990 (part A of title 
     XXIX of Public Law 101-510; 10 U.S.C. 2687 note) with respect 
     to military installations approved for closure or realignment 
     in 1995.
       (b) Construction.--Amounts appropriated pursuant to the 
     authorization of appropriations in section 2405(a)(10) may 
     not be obligated to carry out a construction project with 
     respect to military installations approved for closure or 
     realignment in 1995 until after the date on which the 
     Secretary of Defense submits to Congress a five-year program 
     for executing the 1995 base realignment and closure plan. The 
     limitation contained in this subsection shall not prohibit 
     site surveys, environmental baseline surveys, environmental 
     analysis under the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.), and planning and design work 
     conducted in anticipation of such construction.

     SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   1995 PROJECTS.

       The table in section 2401 of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337; 108 Stat. 3040), under the agency heading 
     relating to Chemical Weapons and Munitions Destruction, is 
     amended--
       (1) in the item relating to Pine Bluff Arsenal, Arkansas, 
     by striking out ``$3,000,000'' in the amount column and 
     inserting in lieu thereof ``$115,000,000''; and
       (2) in the item relating to Umatilla Army Depot, Oregon, by 
     striking out ``$12,000,000'' in the amount column and 
     inserting in lieu thereof ``$186,000,000''.

     SEC. 2408. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPROPRIATED 
                   FOR FISCAL YEAR 1994 CONTINGENCY CONSTRUCTION 
                   PROJECTS.

       Section 2403(a) of the Military Construction Authorization 
     Act for Fiscal Year 1994 (division B of Public Law 103-160; 
     107 Stat. 1876) is amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``$3,268,394,000'' and inserting in lieu thereof 
     ``$3,260,263,000''; and
       (2) in paragraph (10), by striking out ``$12,200,000'' and 
     inserting in lieu thereof ``$4,069,000''.
      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

     SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       The Secretary of Defense may make contributions for the 
     North Atlantic Treaty Organization Infrastructure program as 
     provided in section 2806 of title 10, United States Code, in 
     an amount not to exceed the sum of the amount authorized to 
     be appropriated for this purpose in section 2502 and the 
     amount collected from the North Atlantic Treaty Organization 
     as a result of construction previously financed by the United 
     States.

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 1995, for contributions 
     by the Secretary of Defense under section 2806 of title 10, 
     United States Code, for the share of the United States of the 
     cost of projects for the North Atlantic Treaty Organization 
     Infrastructure program, as authorized by section 2501, in the 
     amount of $161,000,000.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

     SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       There are authorized to be appropriated for fiscal years 
     beginning after September 30, 1995, for the costs of 
     acquisition, architectural and engineering services, and 
     construction of facilities for the Guard and Reserve Forces, 
     and for contributions therefor, under chapter 133 of title 
     10, United States Code (including the cost of acquisition of 
     land for those facilities), the following amounts:
       (1) For the Department of the Army--
       (A) for the Army National Guard of the United States, 
     $134,802,000; and
       (B) for the Army Reserve, $73,516,000.
       (2) For the Department of the Navy, for the Naval and 
     Marine Corps Reserve, $19,055,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $170,917,000; and
       (B) for the Air Force Reserve, $36,232,000.

     SEC. 2602. REDUCTION IN AMOUNT AUTHORIZED TO BE APPROPRIATED 
                   FOR FISCAL YEAR 1994 AIR NATIONAL GUARD 
                   PROJECTS.

       Section 2601(3)(A) of the Military Construction 
     Authorization Act for Fiscal Year 1994 (division B of Public 
     Law 103-160; 107 Stat. 1878) is amended by striking out 
     ``$236,341,000'' and inserting in lieu thereof 
     ``$229,641,000''.

     SEC. 2603. CORRECTION IN AUTHORIZED USES OF FUNDS FOR ARMY 
                   NATIONAL GUARD PROJECTS IN MISSISSIPPI.

       (a) In General.--Subject to subsection (b), amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2601(1)(A) of the Military Construction 
     Authorization Act for Fiscal Year 1994 (division B of Public 
     Law 103-160; 107 Stat. 1878) for the addition or alteration 
     of Army National Guard Armories at various locations in the 
     State of Mississippi shall be available for the addition, 
     alteration, or new construction of armory facilities and an 
     operation and maintenance shop facility (including the 
     acquisition of land for such facilities) at various locations 
     in the State of Mississippi.
       (b) Notice and Wait.--The amounts referred to in subsection 
     (a) shall not be available for construction with respect to a 
     facility referred to in that subsection until 21 days after 
     the date on which the Secretary of the Army submits to 
     Congress a report describing the construction (including any 
     land acquisition) to be carried out with respect to the 
     facility.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

     SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED 
                   TO BE SPECIFIED BY LAW.

       (a) Expiration of Authorizations After Three Years.--Except 
     as provided in subsection (b), all authorizations contained 
     in titles XXI through XXVI for military construction 
     projects, land acquisition, family housing projects and 
     facilities, and contributions to the North Atlantic Treaty 
     Organization Infrastructure program (and authorizations of 
     appropriations therefor) shall expire on the later of--
       (1) October 1, 1998; or
       (2) the date of the enactment of an Act authorizing funds 
     for military construction for fiscal year 1999.
       (b) Exception.--Subsection (a) shall not apply to 
     authorizations for military construction projects, land 
     acquisition, family housing projects and facilities, and 
     contributions to the North Atlantic Treaty Organization 
     Infrastructure program (and authorizations of appropriations 
     therefor), for which appropriated funds have been obligated 
     before the later of--
       (1) October 1, 1998; or
       (2) the date of the enactment of an Act authorizing funds 
     for fiscal year 1999 for military construction projects, land 
     acquisition, family housing projects and facilities, or 
     contributions to the North Atlantic Treaty Organization 
     Infrastructure program.

     SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1993 PROJECTS.

       (a) Extensions.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1993 
     (division B of Public Law 102-484; 106 Stat. 2602), 
     authorizations for the projects set forth in the tables in 
     subsection (b), as provided in section 2101, 2301, or 2601 of 
     that Act or in section 2201 of that Act (as amended by 
     section 2206 of this Act), shall remain in effect until 
     October 1, 1996, or the date of the enactment of an Act 
     authorizing funds for military construction for fiscal year 
     1997, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:


                                 Army: Extension of 1993 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Arkansas..............................  Pine Bluff Arsenal.......  Ammunition Demilitarization                  
                                                                    Support Facility............     $15,000,000
Hawaii................................  Schofield Barracks.......  Add/Alter Sewage Treatment                   
                                                                    Plant.......................     $17,500,000
----------------------------------------------------------------------------------------------------------------



                                 Navy: Extension of 1993 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Camp Pendleton Marine                                                   
                                         Corps Base..............  Sewage Treatment Plant                       
                                                                    Modifications...............     $19,740,000
Maryland..............................  Patuxent River Naval                                                    
                                         Warfare Center..........  Large Anechoic Chamber, Phase                
                                                                    I...........................     $60,990,000
Mississippi...........................  Meridian Naval Air                                                      
                                         Station.................  Child Development Center.....      $1,100,000
Virginia..............................  Hampton Roads............  Land Acquisition.............      $4,500,000
----------------------------------------------------------------------------------------------------------------



                               Air Force: Extension of 1993 Project Authorizations                              
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Arkansas..............................  Little Rock Air Force                                                   
                                         Base....................  Fire Training Facility.......       $710,000 

[[Page H455]]
                                                                                                                
District of Columbia..................  Bolling Air Force Base...  Civil Engineer Complex.......      $9,400,000
Mississippi...........................  Keesler Air Force Base...  Alter Student Dormitory......      $3,100,000
North Carolina........................  Pope Air Force Base......  Construct Bridge Road and                    
                                                                    Utilities...................      $4,000,000
                                        Pope Air Force Base......  Munitions Storage Complex....      $4,300,000
Virginia..............................  Langley Air Force Base...  Base Engineer Complex........      $5,300,000
Guam..................................  Andersen Air Base........  Landfill.....................     $10,000,000
Portugal..............................  Lajes Field..............  Water Wells..................        $865,000
                                        Lajes Field..............  Fire Training Facility.......        $950,000
----------------------------------------------------------------------------------------------------------------




                          Army National Guard: Extension of 1993 Project Authorizations                         
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Alabama...............................  Tuscaloosa...............  Armory.......................      $2,273,000
                                        Union Springs............  Armory.......................        $813,000
Oregon................................  La Grande................  Organizational Maintenance                   
                                                                    Shop........................      $1,220,000
                                        La Grande................  Armory Addition..............      $3,049,000
Pennsylvania..........................  Indiana..................  Armory.......................      $1,700,000
Rhode Island..........................  North Kingston...........  Add/Alter Armory.............      $3,330,000
----------------------------------------------------------------------------------------------------------------



                             Army Reserve: Extension of 1993 Project Authorizations                             
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
West Virginia.........................  Bluefield................  United States Army Reserve                   
                                                                    Center......................      $1,921,000
                                        Clarksburg...............  United States Army Reserve                   
                                                                    Center......................      $1,566,000
                                        Grantville...............  United States Army Reserve                   
                                                                    Center......................      $2,785,000
                                        Lewisburg................  United States Army Reserve                   
                                                                    Center......................      $1,631,000
                                        Weirton..................  United States Army Reserve                   
                                                                    Center......................      $3,481,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1992 PROJECTS.

       (a) Extensions.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1992 
     (division B of Public Law 102-190; 105 Stat. 1535), 
     authorizations for the projects set forth in the tables in 
     subsection (b), as provided in section 2101 or 2601 of that 
     Act, and extended by section 2702 of the Military 
     Construction Authorization Act for Fiscal Year 1995 (division 
     B of Public Law 103-337; 108 Stat. 3047), shall remain in 
     effect until October 1, 1996, or the date of the enactment of 
     an Act authorizing funds for military construction for fiscal 
     year 1997, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:


                                 Army: Extension of 1992 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Oregon................................  Umatilla Army Depot......  Ammunition Demilitarization                  
                                                                    Support Facility............      $3,600,000
                                        Umatilla Army Depot......  Ammunition Demilitarization                  
                                                                    Utilities...................      $7,500,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1992 Project Authorization                          
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Ohio..................................  Toledo...................  Armory.......................      $3,183,000
----------------------------------------------------------------------------------------------------------------



                              Army Reserve: Extension of 1992 Project Authorization                             
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Tennessee.............................  Jackson..................  Joint Training Facility......      $1,537,000
----------------------------------------------------------------------------------------------------------------

                    TITLE XXVIII--GENERAL PROVISIONS
         Subtitle A--Military Housing Privatization Initiative

     SEC. 2801. ALTERNATIVE AUTHORITY FOR CONSTRUCTION AND 
                   IMPROVEMENT OF MILITARY HOUSING.

       (a) Alternative Authority To Construct and Improve Military 
     Housing.--(1) Chapter 169 of title 10, United States Code, is 
     amended by adding at the end the following new subchapter:

``SUBCHAPTER IV--ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT 
                          OF MILITARY HOUSING

``Sec.
``2871. Definitions.
``2872. General authority.
``2873. Direct loans and loan guarantees.
``2874. Leasing of housing to be constructed.
``2875. Investments in nongovernmental entities.
``2876. Rental guarantees.
``2877. Differential lease payments.
``2878. Conveyance or lease of existing property and facilities.
``2879. Interim leases.
``2880. Unit size and type.
``2881. Ancillary supporting facilities.
``2882. Assignment of members of the armed forces to housing units.
``2883. Department of Defense Housing Funds.
``2884. Reports.
``2885. Expiration of authority.

     ``Sec. 2871. Definitions

       ``In this subchapter:
       ``(1) The term `ancillary supporting facilities' means 
     facilities related to military housing units, including child 
     care centers, day care centers, tot lots, community centers, 
     housing offices, dining facilities, unit offices, and other 
     similar facilities for the support of military housing.
       ``(2) The term `base closure law' means the following:
       ``(A) Section 2687 of this title.
       ``(B) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).
       ``(C) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).
       ``(3) The term `construction' means the construction of 
     military housing units and ancillary supporting facilities or 
     the improvement or rehabilitation of existing units or 
     ancillary supporting facilities.
       ``(4) The term `contract' includes any contract, lease, or 
     other agreement entered into under the authority of this 
     subchapter.
       ``(5) The term `Fund' means the Department of Defense 
     Family Housing Improvement Fund or the Department of Defense 
     Military Unaccompanied Housing Improvement Fund established 
     under section 2883(a) of this title.
     
[[Page H456]]

       ``(6) The term `military unaccompanied housing' means 
     military housing intended to be occupied by members of the 
     armed forces serving a tour of duty unaccompanied by 
     dependents.
       ``(7) The term `United States' includes the Commonwealth of 
     Puerto Rico.

     ``Sec. 2872. General authority

       ``In addition to any other authority provided under this 
     chapter for the acquisition or construction of military 
     family housing or military unaccompanied housing, the 
     Secretary concerned may exercise any authority or any 
     combination of authorities provided under this subchapter in 
     order to provide for the acquisition or construction by 
     private persons of the following:
       ``(1) Family housing units on or near military 
     installations within the United States and its territories 
     and possessions.
       ``(2) Military unaccompanied housing units on or near such 
     military installations.

     ``Sec. 2873. Direct loans and loan guarantees

       ``(a) Direct Loans.--(1) Subject to subsection (c), the 
     Secretary concerned may make direct loans to persons in the 
     private sector in order to provide funds to such persons for 
     the acquisition or construction of housing units that the 
     Secretary determines are suitable for use as military family 
     housing or as military unaccompanied housing.
       ``(2) The Secretary concerned shall establish such terms 
     and conditions with respect to loans made under this 
     subsection as the Secretary considers appropriate to protect 
     the interests of the United States, including the period and 
     frequency for repayment of such loans and the obligations of 
     the obligors on such loans upon default.
       ``(b) Loan Guarantees.--(1) Subject to subsection (c), the 
     Secretary concerned may guarantee a loan made to any person 
     in the private sector if the proceeds of the loan are to be 
     used by the person to acquire, or construct housing units 
     that the Secretary determines are suitable for use as 
     military family housing or as military unaccompanied housing.
       ``(2) The amount of a guarantee on a loan that may be 
     provided under paragraph (1) may not exceed the amount equal 
     to the lesser of--
       ``(A) the amount equal to 80 percent of the value of the 
     project; or
       ``(B) the amount of the outstanding principal of the loan.
       ``(3) The Secretary concerned shall establish such terms 
     and conditions with respect to guarantees of loans under this 
     subsection as the Secretary considers appropriate to protect 
     the interests of the United States, including the rights and 
     obligations of obligors of such loans and the rights and 
     obligations of the United States with respect to such 
     guarantees.
       ``(c) Limitation on Direct Loan and Guarantee Authority.--
     Direct loans and loan guarantees may be made under this 
     section only to the extent that appropriations of budget 
     authority to cover their cost (as defined in section 502(5) 
     of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) 
     are made in advance, or authority is otherwise provided in 
     appropriation Acts. If such appropriation or other authority 
     is provided, there may be established a financing account (as 
     defined in section 502(7) of such Act (2 U.S.C. 661a(7))), 
     which shall be available for the disbursement of direct 
     loans or payment of claims for payment on loan guarantees 
     under this section and for all other cash flows to and 
     from the Government as a result of direct loans and 
     guarantees made under this section.

     ``Sec. 2874. Leasing of housing to be constructed

       ``(a) Build and Lease Authorized.--The Secretary concerned 
     may enter into contracts for the lease of military family 
     housing units or military unaccompanied housing units to be 
     constructed under this subchapter.
       ``(b) Lease Terms.--A contract under this section may be 
     for any period that the Secretary concerned determines 
     appropriate and may provide for the owner of the leased 
     property to operate and maintain the property.

     ``Sec. 2875. Investments in nongovernmental entities

       ``(a) Investments Authorized.--The Secretary concerned may 
     make investments in nongovernmental entities carrying out 
     projects for the acquisition or construction of housing units 
     suitable for use as military family housing or as military 
     unaccompanied housing.
       ``(b) Forms of Investment.--An investment under this 
     section may take the form of an acquisition of a limited 
     partnership interest by the United States, a purchase of 
     stock or other equity instruments by the United States, a 
     purchase of bonds or other debt instruments by the United 
     States, or any combination of such forms of investment.
       ``(c) Limitation on Value of Investment.--(1) The cash 
     amount of an investment under this section in a 
     nongovernmental entity may not exceed an amount equal to 
     33\1/3\ percent of the capital cost (as determined by the 
     Secretary concerned) of the project or projects that the 
     entity proposes to carry out under this section with the 
     investment.
       ``(2) If the Secretary concerned conveys land or facilities 
     to a nongovernmental entity as all or part of an investment 
     in the entity under this section, the total value of the 
     investment by the Secretary under this section may not exceed 
     an amount equal to 45 percent of the capital cost (as 
     determined by the Secretary) of the project or projects that 
     the entity proposes to carry out under this section with the 
     investment.
       ``(3) In this subsection, the term `capital cost', with 
     respect to a project for the acquisition or construction of 
     housing, means the total amount of the costs included in the 
     basis of the housing for Federal income tax purposes.
       ``(d) Collateral Incentive Agreements.--The Secretary 
     concerned shall enter into collateral incentive agreements 
     with nongovernmental entities in which the Secretary makes an 
     investment under this section to ensure that a suitable 
     preference will be afforded members of the armed forces and 
     their dependents in the lease or purchase, as the case may 
     be, of a reasonable number of the housing units covered by 
     the investment.

     ``Sec. 2876. Rental guarantees

       ``The Secretary concerned may enter into agreements with 
     private persons that acquire or construct military family 
     housing units or military unaccompanied housing units under 
     this subchapter in order to assure--
       ``(1) the occupancy of such units at levels specified in 
     the agreements; or
       ``(2) rental income derived from rental of such units at 
     levels specified in the agreements.

     ``Sec. 2877. Differential lease payments

       ``Pursuant to an agreement entered into by the Secretary 
     concerned and a private lessor of military family housing or 
     military unaccompanied housing to members of the armed 
     forces, the Secretary may pay the lessor an amount in 
     addition to the rental payments for the housing made by the 
     members as the Secretary determines appropriate to encourage 
     the lessor to make the housing available to members of the 
     armed forces as military family housing or as military 
     unaccompanied housing.

     ``Sec. 2878. Conveyance or lease of existing property and 
       facilities

       ``(a) Conveyance or Lease Authorized.--The Secretary 
     concerned may convey or lease property or facilities 
     (including ancillary supporting facilities) to private 
     persons for purposes of using the proceeds of such conveyance 
     or lease to carry out activities under this subchapter.
       ``(b) Inapplicability to Property at Installation Approved 
     for Closure.--The authority of this section does not apply to 
     property or facilities located on or near a military 
     installation approved for closure under a base closure law.
       ``(c) Terms and Conditions.--(1) The conveyance or lease of 
     property or facilities under this section shall be for such 
     consideration and upon such terms and conditions as the 
     Secretary concerned considers appropriate for the purposes of 
     this subchapter and to protect the interests of the United 
     States.
       ``(2) As part or all of the consideration for a conveyance 
     or lease under this section, the purchaser or lessor (as the 
     case may be) shall enter into an agreement with the Secretary 
     to ensure that a suitable preference will be afforded members 
     of the armed forces and their dependents in the lease or 
     sublease of a reasonable number of the housing units covered 
     by the conveyance or lease, as the case may be, or in the 
     lease of other suitable housing units made available by the 
     purchaser or lessee.
       ``(d) Inapplicability of Certain Property Management 
     Laws.--The conveyance or lease of property or facilities 
     under this section shall not be subject to the following 
     provisions of law:
       ``(1) Section 2667 of this title.
       ``(2) The Federal Property and Administrative Services Act 
     of 1949 (40 U.S.C. 471 et seq.).
       ``(3) Section 321 of the Act of June 30, 1932 (commonly 
     known as the Economy Act) (40 U.S.C. 303b).
       ``(4) Section 501 of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11401).

     ``Sec. 2879. Interim leases

       ``Pending completion of a project to acquire or construct 
     military family housing units or military unaccompanied 
     housing units under this subchapter, the Secretary concerned 
     may provide for the interim lease of such units of the 
     project as are complete. The term of a lease under this 
     section may not extend beyond the date of the completion of 
     the project concerned.

     ``Sec. 2880. Unit size and type

       ``(a) Conformity With Similar Housing Units in Locale.--The 
     Secretary concerned shall ensure that the room patterns and 
     floor areas of military family housing units and military 
     unaccompanied housing units acquired or constructed under 
     this subchapter are generally comparable to the room patterns 
     and floor areas of similar housing units in the locality 
     concerned.
       ``(b) Inapplicability of Limitations on Space by Pay 
     Grade.--(1) Section 2826 of this title shall not apply to 
     military family housing units acquired or constructed under 
     this subchapter.
       ``(2) The regulations prescribed under section 2856 of this 
     title shall not apply to any military unaccompanied housing 
     unit acquired or constructed under this subchapter unless the 
     unit is located on a military installation.

     ``Sec. 2881. Ancillary supporting facilities

       ``Any project for the acquisition or construction of 
     military family housing units or military unaccompanied 
     housing units under this subchapter may include the 
     acquisition 

[[Page H457]]
     or construction of ancillary supporting facilities for the housing 
     units concerned.

     ``Sec. 2882. Assignment of members of the armed forces to 
       housing units

       ``(a) In General.--The Secretary concerned may assign 
     members of the armed forces to housing units acquired or 
     constructed under this subchapter.
       ``(b) Effect of Certain Assignments on Entitlement to 
     Housing Allowances.--(1) Except as provided in paragraph (2), 
     housing referred to in subsection (a) shall be considered as 
     quarters of the United States or a housing facility under the 
     jurisdiction of a uniformed service for purposes of section 
     403(b) of title 37.
       ``(2) A member of the armed forces who is assigned in 
     accordance with subsection (a) to a housing unit not owned or 
     leased by the United States shall be entitled to a basic 
     allowance for quarters under section 403 of title 37 and, if 
     in a high housing cost area, a variable housing allowance 
     under section 403a of that title.
       ``(c) Lease Payments Through Pay Allotments.--The Secretary 
     concerned may require members of the armed forces who lease 
     housing in housing units acquired or constructed under this 
     subchapter to make lease payments for such housing pursuant 
     to allotments of the pay of such members under section 701 of 
     title 37.

     ``Sec. 2883. Department of Defense Housing Funds

       ``(a) Establishment.--There are hereby established on the 
     books of the Treasury the following accounts:
       ``(1) The Department of Defense Family Housing Improvement 
     Fund.
       ``(2) The Department of Defense Military Unaccompanied 
     Housing Improvement Fund.
       ``(b) Commingling of Funds Prohibited.--(1) The Secretary 
     of Defense shall administer each Fund separately.
       ``(2) Amounts in the Department of Defense Family Housing 
     Improvement Fund may be used only to carry out activities 
     under this subchapter with respect to military family 
     housing.
       ``(3) Amounts in the Department of Defense Military 
     Unaccompanied Housing Improvement Fund may be used only to 
     carry out activities under this subchapter with respect to 
     military unaccompanied housing.
       ``(c) Credits to Funds.--(1) There shall be credited to the 
     Department of Defense Family Housing Improvement Fund the 
     following:
       ``(A) Amounts authorized for and appropriated to that Fund.
       ``(B) Subject to subsection (f), any amounts that the 
     Secretary of Defense transfers, in such amounts as provided 
     in appropriation Acts, to that Fund from amounts authorized 
     and appropriated to the Department of Defense for the 
     acquisition or construction of military family housing.
       ``(C) Proceeds from the conveyance or lease of property or 
     facilities under section 2878 of this title for the purpose 
     of carrying out activities under this subchapter with respect 
     to military family housing.
       ``(D) Income derived from any activities under this 
     subchapter with respect to military family housing, including 
     interest on loans made under section 2873 of this title, 
     income and gains realized from investments under section 2875 
     of this title, and any return of capital invested as part of 
     such investments.
       ``(2) There shall be credited to the Department of Defense 
     Military Unaccompanied Housing Improvement Fund the 
     following:
       ``(A) Amounts authorized for and appropriated to that Fund.
       ``(B) Subject to subsection (f), any amounts that the 
     Secretary of Defense transfers, in such amounts as provided 
     in appropriation Acts, to that Fund from amounts authorized 
     and appropriated to the Department of Defense for the 
     acquisition or construction of military unaccompanied 
     housing.
       ``(C) Proceeds from the conveyance or lease of property or 
     facilities under section 2878 of this title for the purpose 
     of carrying out activities under this subchapter with respect 
     to military unaccompanied housing.
       ``(D) Income derived from any activities under this 
     subchapter with respect to military unaccompanied housing, 
     including interest on loans made under section 2873 of this 
     title, income and gains realized from investments under 
     section 2875 of this title, and any return of capital 
     invested as part of such investments.
       ``(d) Use of Amounts in Funds.--(1) In such amounts as 
     provided in appropriation Acts and except as provided in 
     subsection (e), the Secretary of Defense may use amounts in 
     the Department of Defense Family Housing Improvement Fund to 
     carry out activities under this subchapter with respect to 
     military family housing, including activities required in 
     connection with the planning, execution, and administration 
     of contracts entered into under the authority of this 
     subchapter.
       ``(2) In such amounts as provided in appropriation Acts and 
     except as provided in subsection (e), the Secretary of 
     Defense may use amounts in the Department of Defense Military 
     Unaccompanied Housing Improvement Fund to carry out 
     activities under this subchapter with respect to military 
     unaccompanied housing, including activities required in 
     connection with the planning, execution, and administration 
     of contracts entered into under the authority of this 
     subchapter.
       ``(3) Amounts made available under this subsection shall 
     remain available until expended. The Secretary of Defense may 
     transfer amounts made available under this subsection to the 
     Secretaries of the military departments to permit such 
     Secretaries to carry out the activities for which such 
     amounts may be used.
       ``(e) Limitation on Obligations.--The Secretary may not 
     incur an obligation under a contract or other agreement 
     entered into under this subchapter in excess of the 
     unobligated balance, at the time the contract is entered 
     into, of the Fund required to be used to satisfy the 
     obligation.
       ``(f) Notification Required for Transfers.--A transfer of 
     appropriated amounts to a Fund under paragraph (1)(B) or 
     (2)(B) of subsection (c) may be made only after the end of 
     the 30-day period beginning on the date the Secretary of 
     Defense submits written notice of, and justification for, the 
     transfer to the appropriate committees of Congress.
       ``(g) Limitation on Amount of Budget Authority.--The total 
     value in budget authority of all contracts and investments 
     undertaken using the authorities provided in this subchapter 
     shall not exceed--
       ``(1) $850,000,000 for the acquisition or construction of 
     military family housing; and
       ``(2) $150,000,000 for the acquisition or construction of 
     military unaccompanied housing.

     ``Sec. 2884. Reports

       ``(a) Project Reports.--(1) The Secretary of Defense shall 
     transmit to the appropriate committees of Congress a report 
     describing--
       ``(A) each contract for the acquisition or construction of 
     family housing units or unaccompanied housing units that the 
     Secretary proposes to solicit under this subchapter; and
       ``(B) each conveyance or lease proposed under section 2878 
     of this title.
       ``(2) The report shall describe the proposed contract, 
     conveyance, or lease and the intended method of participation 
     of the United States in the contract, conveyance, or lease 
     and provide a justification of such method of participation. 
     The report shall be submitted not later than 30 days before 
     the date on which the Secretary issues the contract 
     solicitation or offers the conveyance or lease.
       ``(b) Annual Reports.--The Secretary of Defense shall 
     include each year in the materials that the Secretary submits 
     to Congress in support of the budget submitted by the 
     President pursuant to section 1105 of title 31 the following:
       ``(1) A report on the expenditures and receipts during the 
     preceding fiscal year covering the Funds established under 
     section 2883 of this title.
       ``(2) A methodology for evaluating the extent and 
     effectiveness of the use of the authorities under this 
     subchapter during such preceding fiscal year.
       ``(3) A description of the objectives of the Department of 
     Defense for providing military family housing and military 
     unaccompanied housing for members of the armed forces.

     ``Sec. 2885. Expiration of authority

       ``The authority to enter into a contract under this 
     subchapter shall expire five years after the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 1996.''.
       (2) The table of subchapters at the beginning of such 
     chapter is amended by inserting after the item relating to 
     subchapter III the following new item:

``IV. Alternative Authority for Acquisition and Improvement of Military 
  Housing.......................................................2871''.

       (b) Final Report.--Not later than March 1, 2000, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the use by the Secretary of 
     Defense and the Secretaries of the military departments of 
     the authorities provided by subchapter IV of chapter 169 of 
     title 10, United States Code, as added by subsection (a). The 
     report shall assess the effectiveness of such authority in 
     providing for the construction and improvement of military 
     family housing and military unaccompanied housing.

     SEC. 2802. EXPANSION OF AUTHORITY FOR LIMITED PARTNERSHIPS 
                   FOR DEVELOPMENT OF MILITARY FAMILY HOUSING.

       (a) Participation of Other Military Departments.--(1) 
     Subsection (a)(1) of section 2837 of title 10, United States 
     Code, is amended by striking out ``of the naval service'' and 
     inserting in lieu thereof ``of the armed forces''.
       (2) Subsection (b)(1) of such section is amended by 
     striking out ``of the naval service'' and inserting in lieu 
     thereof ``of the armed forces''.
       (b) Administration.--(1) Subsection (a)(1) of such section 
     is further amended by striking out ``the Secretary of the 
     Navy'' in the first sentence and inserting in lieu thereof 
     ``the Secretary of a military department''.
       (2) Subsections (a)(2), (b), (c), (g), and (h) of such 
     section are amended by striking out ``Secretary'' each place 
     it appears and inserting in lieu thereof ``Secretary 
     concerned''.
       (c) Account.--Subsection (d) of such section is amended to 
     read as follows:
       ``(d) Account.--(1) There is hereby established on the 
     books of the Treasury an account to be known as the `Defense 
     Housing Investment Account'.
       ``(2) There shall be deposited into the Account--
       ``(A) such funds as may be authorized for and appropriated 
     to the Account;
       ``(B) any proceeds received by the Secretary concerned from 
     the repayment of investments or profits on investments of the 
     Secretary under subsection (a); and
     
[[Page H458]]

       ``(C) any unobligated balances which remain in the Navy 
     Housing Investment Account as of the date of the enactment of 
     the National Defense Authorization Act for Fiscal Year 1996.
       ``(3) From such amounts as are provided in advance in 
     appropriation Acts, funds in the Account shall be available 
     to the Secretaries concerned in amounts determined by the 
     Secretary of Defense for contracts, investments, and expenses 
     necessary for the implementation of this section.
       ``(4) The Secretary concerned may not enter into a contract 
     in connection with a limited partnership under subsection (a) 
     or a collateral incentive agreement under subsection (b) 
     unless a sufficient amount of the unobligated balance of the 
     funds in the Account is available to the Secretary, as of the 
     time the contract is entered into, to satisfy the total 
     obligations to be incurred by the United States under the 
     contract.''.
       (d) Termination of Navy Housing Investment Board.--Such 
     section is further amended--
       (1) by striking out subsection (e); and
       (2) in subsection (h)--
       (A) by striking out ``Authorities'' in the subsection 
     heading and inserting in lieu thereof ``Authority'';
       (B) by striking out ``(1)''; and
       (C) by striking out paragraph (2).
       (e) Report.--Subsection (f) of such section is amended--
       (1) by striking out ``the Secretary carries out 
     activities'' and inserting in lieu thereof ``activities are 
     carried out''; and
       (2) by striking out ``the Secretary shall'' and inserting 
     in lieu thereof ``the Secretaries concerned shall jointly''.
       (f) Extension of Authority.--Subsection (h) of such section 
     is further amended by striking out ``September 30, 1999'' and 
     inserting in lieu thereof ``September 30, 2000''.
       (g) Conforming Amendment.--Subsection (g) of such section 
     is further amended by striking out ``Navy'' in the subsection 
     heading.
  Subtitle B--Other Military Construction Program and Military Family 
                            Housing Changes

     SEC. 2811. SPECIAL THRESHOLD FOR UNSPECIFIED MINOR 
                   CONSTRUCTION PROJECTS TO CORRECT LIFE, HEALTH, 
                   OR SAFETY DEFICIENCIES.

       (a) Special Threshold.--Section 2805 of title 10, United 
     States Code, is amended--
       (1) in subsection (a)(1), by adding at the end the 
     following new sentence: ``However, if the military 
     construction project is intended solely to correct a 
     deficiency that is life-threatening, health-threatening, or 
     safety-threatening, a minor military construction project may 
     have an approved cost equal to or less than $3,000,000.''; 
     and
       (2) in subsection (c)(1), by striking out ``not more than 
     $300,000.'' and inserting in lieu thereof ``not more than--
       ``(A) $1,000,000, in the case of an unspecified military 
     construction project intended solely to correct a deficiency 
     that is life-threatening, health-threatening, or safety-
     threatening; or
       ``(B) $300,000, in the case of any other unspecified 
     military construction project.''.
       (b) Technical Amendment.--Section 2861(b)(6) of such title 
     is amended by striking out ``section 2805(a)(2)'' and 
     inserting in lieu thereof ``section 2805(a)(1)''.

     SEC. 2812. CLARIFICATION OF SCOPE OF UNSPECIFIED MINOR 
                   CONSTRUCTION AUTHORITY.

       Section 2805(a)(1) of title 10, United States Code, as 
     amended by section 2811 of this Act, is further amended by 
     striking out ``(1) that is for a single undertaking at a 
     military installation, and (2)'' in the second sentence.

     SEC. 2813. TEMPORARY AUTHORITY TO WAIVE NET FLOOR AREA 
                   LIMITATION FOR FAMILY HOUSING ACQUIRED IN LIEU 
                   OF CONSTRUCTION.

       Section 2824(c) of title 10, United States Code, is amended 
     by adding at the end the following new sentence: ``The 
     Secretary concerned may waive the limitation set forth in the 
     preceding sentence to family housing units acquired under 
     this section during the five-year period beginning on the 
     date of the enactment of the National Defense Authorization 
     Act for Fiscal Year 1996.''.

     SEC. 2814. REESTABLISHMENT OF AUTHORITY TO WAIVE NET FLOOR 
                   AREA LIMITATION ON ACQUISITION BY PURCHASE OF 
                   CERTAIN MILITARY FAMILY HOUSING.

       Section 2826(e) of title 10, United States Code, is amended 
     by striking out the second sentence.

     SEC. 2815. TEMPORARY AUTHORITY TO WAIVE LIMITATIONS ON SPACE 
                   BY PAY GRADE FOR MILITARY FAMILY HOUSING UNITS.

       Section 2826 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(i)(1) The Secretary concerned may waive the provisions 
     of subsection (a) with respect to military family housing 
     units constructed, acquired, or improved during the five-year 
     period beginning on the date of the enactment of the National 
     Defense Authorization Act for Fiscal Year 1996.
       ``(2) The total number of military family housing units 
     constructed, acquired, or improved during any fiscal year in 
     the period referred to in paragraph (1) shall be the total 
     number of such units authorized by law for that fiscal 
     year.''.

     SEC. 2816. RENTAL OF FAMILY HOUSING IN FOREIGN COUNTRIES.

       Section 2828(e) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1)--
       (A) by striking out ``300 units'' in the first sentence and 
     inserting in lieu thereof ``450 units''; and
       (B) by striking out ``220 such units'' in the second 
     sentence and inserting in lieu thereof ``350 such units''; 
     and
       (2) in paragraph (2), by striking out ``300 units'' and 
     inserting in lieu thereof ``450 units''.

     SEC. 2817. CLARIFICATION OF SCOPE OF REPORT REQUIREMENT ON 
                   COST INCREASES UNDER CONTRACTS FOR MILITARY 
                   FAMILY HOUSING CONSTRUCTION.

       Subsection (d) of section 2853 of title 10, United States 
     Code, is amended to read as follows:
       ``(d) The limitation on cost increases in subsection (a) 
     does not apply to the settlement of a contractor claim under 
     a contract.''.

     SEC. 2818. AUTHORITY TO CONVEY DAMAGED OR DETERIORATED 
                   MILITARY FAMILY HOUSING.

       (a) Authority.--(1) Subchapter III of chapter 169 of title 
     10, United States Code, is amended by inserting after section 
     2854 the following new section:

     ``Sec. 2854a. Conveyance of damaged or deteriorated military 
       family housing; use of proceeds

       ``(a) Authority To Convey.--(1) The Secretary concerned may 
     convey any family housing facility that, due to damage or 
     deterioration, is in a condition that is uneconomical to 
     repair. Any conveyance of a family housing facility under 
     this section may include a conveyance of the real property 
     associated with the facility conveyed.
       ``(2) The authority of this section does not apply to 
     family housing facilities located at military installations 
     approved for closure under a base closure law or family 
     housing facilities located at an installation outside the 
     United States at which the Secretary of Defense terminates 
     operations.
       ``(3) The aggregate total value of the family housing 
     facilities conveyed by the Department of Defense under the 
     authority in this subsection in any fiscal year may not 
     exceed $5,000,000.
       ``(4) For purposes of this subsection, a family housing 
     facility is in a condition that is uneconomical to repair if 
     the cost of the necessary repairs for the facility would 
     exceed the amount equal to 70 percent of the cost of 
     constructing a family housing facility to replace such 
     facility.
       ``(b) Consideration.--(1) As consideration for the 
     conveyance of a family housing facility under subsection (a), 
     the person to whom the facility is conveyed shall pay the 
     United States an amount equal to the fair market value of the 
     facility conveyed, including any real property conveyed along 
     with the facility.
       ``(2) The Secretary concerned shall determine the fair 
     market value of any family housing facility and associated 
     real property that is conveyed under subsection (a). Such 
     determination shall be final.
       ``(c) Notice and Wait Requirements.--The Secretary 
     concerned may not enter into an agreement to convey a family 
     housing facility under this section until--
       ``(1) the Secretary submits to the appropriate committees 
     of Congress, in writing, a justification for the conveyance 
     under the agreement, including--
       ``(A) an estimate of the consideration to be provided the 
     United States under the agreement;
       ``(B) an estimate of the cost of repairing the family 
     housing facility to be conveyed; and
       ``(C) an estimate of the cost of replacing the family 
     housing facility to be conveyed; and
       ``(2) a period of 21 calendar days has elapsed after the 
     date on which the justification is received by the 
     committees.
       ``(d) Inapplicability of Certain Property Disposal Laws.--
     The following provisions of law do not apply to the 
     conveyance of a family housing facility under this section:
       ``(1) The Federal Property and Administrative Services Act 
     of 1949 (40 U.S.C. 471 et seq.).
       ``(2) Title V of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11411 et seq.).
       ``(e) Use of Proceeds.--(1) The proceeds of any conveyance 
     of a family housing facility under this section shall be 
     credited to the appropriate fund established under section 
     2883 of this title and shall be available--
       ``(A) to construct family housing units to replace the 
     family housing facility conveyed under this section, but only 
     to the extent that the number of units constructed with such 
     proceeds does not exceed the number of units of military 
     family housing of the facility conveyed;
       ``(B) to repair or restore existing military family 
     housing; and
       ``(C) to reimburse the Secretary concerned for the costs 
     incurred by the Secretary in conveying the family housing 
     facility.
       ``(2) Notwithstanding section 2883(d) of this title, 
     proceeds derived from a conveyance of a family housing 
     facility under this section shall be available under 
     paragraph (1) without any further appropriation.
       ``(f) Description of Property.--The exact acreage and legal 
     description of any family housing facility conveyed under 
     this section, including any real property associated with 
     such facility, shall be determined by such means as the 
     Secretary concerned considers satisfactory, including by 
     survey in the case of real property.
     
[[Page H459]]

       ``(g) Additional Terms and Conditions.--The Secretary 
     concerned may require such additional terms and conditions in 
     connection with the conveyance of family housing facilities 
     under this section as the Secretary considers appropriate to 
     protect the interests of the United States.''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by inserting after the item relating to 
     section 2854 the following new item:
``2854a. Conveyance of damaged or deteriorated military family housing; 
              use of proceeds.''.

       (b) Conforming Amendment.--Section 204(h) of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     485(h)) is amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) This subsection does not apply to damaged or 
     deteriorated military family housing facilities conveyed 
     under section 2854a of title 10, United States Code.''.

     SEC. 2819. ENERGY AND WATER CONSERVATION SAVINGS FOR THE 
                   DEPARTMENT OF DEFENSE.

       (a) Inclusion of Water Efficient Maintenance in Energy 
     Performance Plan.--Paragraph (3) of section 2865(a) of title 
     10, United States Code, is amended by striking out ``energy 
     efficient maintenance'' and inserting in lieu thereof 
     ``energy efficient maintenance or water efficient 
     maintenance''.
       (b) Scope of Term.--Paragraph (4) of such section is 
     amended--
       (1) in the matter preceding subparagraph (A), by striking 
     out `` `energy efficient maintenance' '' and inserting in 
     lieu thereof `` `energy efficient maintenance or water 
     efficient maintenance' '';
       (2) in subparagraph (A), by striking out ``systems or 
     industrial processes,'' in the matter preceding clause (i) 
     and inserting in lieu thereof ``systems, industrial 
     processes, or water efficiency applications,''; and
       (3) in subparagraph (B), by inserting ``or water cost 
     savings'' before the period at the end.

     SEC. 2820. EXTENSION OF AUTHORITY TO ENTER INTO LEASES OF 
                   LAND FOR SPECIAL OPERATIONS ACTIVITIES.

       (a) Extension of Authority.--Subsection (d) of section 2680 
     of title 10, United States Code, is amended in the first 
     sentence by striking out ``September 30, 1995'' and inserting 
     in lieu thereof ``September 30, 2000''.
       (b) Reporting Requirement.--Such section is further amended 
     by adding at the end the following new subsection:
       ``(e) Reports.--Not later than March 1 of each year, the 
     Secretary of Defense shall submit to the Committee on the 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a report that--
       ``(1) identifies each leasehold interest acquired during 
     the previous fiscal year under subsection (a); and
       ``(2) contains a discussion of each project for the 
     construction or modification of facilities carried out 
     pursuant to subsection (c) during such fiscal year.''.
       (c) Conforming Repeal.--Section 2863 of the National 
     Defense Authorization Act for Fiscal Years 1992 and 1993 
     (Public Law 102-190; 10 U.S.C. 2680 note) is amended by 
     striking out subsection (b).

     SEC. 2821. DISPOSITION OF AMOUNTS RECOVERED AS A RESULT OF 
                   DAMAGE TO REAL PROPERTY.

       (a) In General.--Chapter 165 of title 10, United States 
     Code, is amended by inserting after section 2781 the 
     following new section:

     ``Sec. 2782. Damage to real property: disposition of amounts 
       recovered

       ``Except as provided in section 2775 of this title, amounts 
     recovered for damage caused to real property under the 
     jurisdiction of the Secretary of a military department or, 
     with respect to the Defense Agencies, under the jurisdiction 
     of the Secretary of Defense shall be credited to the account 
     available for the repair or replacement of the real property 
     at the time of recovery. In such amounts as are provided in 
     advance in appropriation Acts, amounts so credited shall be 
     available for use for the same purposes and under the same 
     circumstances as other funds in the account.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2781 the following new item:

``2782. Damage to real property: disposition of amounts recovered.''.

     SEC. 2822. PILOT PROGRAM TO PROVIDE INTEREST RATE BUY DOWN 
                   AUTHORITY ON LOANS FOR HOUSING WITHIN HOUSING 
                   SHORTAGE AREAS AT MILITARY INSTALLATIONS.

       (a) Short Title.--This section may be cited as the 
     ``Military Housing Assistance Act of 1995''.
       (b) Mortgage Assistance Payment Authority of the Secretary 
     of Veterans Affairs.--(1) Chapter 37 of title 38, United 
     States Code, is amended by inserting after section 3707 the 
     following:

     ``Sec. 3708. Authority to buy down interest rates: pilot 
       program

       ``(a) In order to enable the purchase of housing in areas 
     where the supply of suitable military housing is inadequate, 
     the Secretary may conduct a pilot program under which the 
     Secretary may make periodic or lump sum assistance payments 
     on behalf of an eligible veteran for the purpose of buying 
     down the interest rate on a loan to that veteran that is 
     guaranteed under this chapter for a purpose described in 
     paragraph (1), (6), or (10) of section 3710(a) of this title.
       ``(b) An individual is an eligible veteran for the purposes 
     of this section if--
       ``(1) the individual is a veteran, as defined in section 
     3701(b)(4) of this title;
       ``(2) the individual submits an application for a loan 
     guaranteed under this chapter within one year of an 
     assignment of the individual to duty at a military 
     installation in the United States designated by the Secretary 
     of Defense as a housing shortage area;
       ``(3) at the time the loan referred to in subsection (a) is 
     made, the individual is an enlisted member, warrant officer, 
     or an officer (other than a warrant officer) at a pay grade 
     of O-3 or below;
       ``(4) the individual has not previously used any of the 
     individual's entitlement to housing loan benefits under this 
     chapter; and
       ``(5) the individual receives comprehensive prepurchase 
     counseling from the Secretary (or the designee of the 
     Secretary) before making application for a loan guaranteed 
     under this chapter.
       ``(c) Loans with respect to which the Secretary may 
     exercise the buy down authority under subsection (a) shall--
       ``(1) provide for a buy down period of not more than three 
     years in duration;
       ``(2) specify the maximum and likely amounts of increases 
     in mortgage payments that the loans would require; and
       ``(3) be subject to such other terms and conditions as the 
     Secretary may prescribe by regulation.
       ``(d) The Secretary shall promulgate underwriting standards 
     for loans for which the interest rate assistance payments may 
     be made under subsection (a). Such standards shall be based 
     on the interest rate for the second year of the loan.
       ``(e) The Secretary or lender shall provide comprehensive 
     prepurchase counseling to eligible veterans explaining the 
     features of interest rate buy downs under subsection (a), 
     including a hypothetical payment schedule that displays the 
     increases in monthly payments to the mortgagor over the first 
     five years of the mortgage term. For the purposes of this 
     subsection, the Secretary may assign personnel to military 
     installations referred to in subsection (b)(2).
       ``(f) There is authorized to be appropriated $3,000,000 
     annually to carry out this section.
       ``(g) The Secretary may not guarantee a loan under this 
     chapter after September 30, 1998, on which the Secretary is 
     obligated to make payments under this section.''.
       (2) The table of sections at the beginning of chapter 37 of 
     title 38, United States Code, is amended by inserting after 
     the item relating to section 3707 to following new item:

``3708. Authority to buy down interest rates: pilot program.''.

       (c) Authority of Secretary of Defense.--
       (1) Reimbursement for buy down costs.--The Secretary of 
     Defense shall reimburse the Secretary of Veterans Affairs for 
     amounts paid by the Secretary of Veterans Affairs to 
     mortgagees under section 3708 of title 38, United States 
     Code, as added by subsection (b).
       (2) Designation of housing shortage areas.--For purposes of 
     section 3708 of title 38, United States Code, the Secretary 
     of Defense may designate as a housing shortage area a 
     military installation in the United States at which the 
     Secretary determines there is a shortage of suitable housing 
     to meet the military family needs of members of the Armed 
     Forces and the dependents of such members.
       (3) Report.--Not later than March 30, 1998, the Secretary 
     shall submit to Congress a report regarding the effectiveness 
     of the authority provided in section 3708 of title 38, United 
     States Code, in ensuring that members of the Armed Forces and 
     their dependents have access to suitable housing. The report 
     shall include the recommendations of the Secretary regarding 
     whether the authority provided in this subsection should be 
     extended beyond the date specified in paragraph (5).
       (4) Earmark.--Of the amount provided in section 
     2405(a)(11)(B), $10,000,000 for fiscal year 1996 shall be 
     available to carry out this subsection.
       (5) Sunset.--This subsection shall not apply with respect 
     to housing loans guaranteed after September 30, 1998, for 
     which assistance payments are paid under section 3708 of 
     title 38, United States Code.
            Subtitle C--Defense Base Closure and Realignment

     SEC. 2831. DEPOSIT OF PROCEEDS FROM LEASES OF PROPERTY 
                   LOCATED AT INSTALLATIONS BEING CLOSED OR 
                   REALIGNED.

       (a) Exception to Existing Requirements.--Section 2667(d) of 
     title 10, United States Code, is amended--
       (1) in paragraph (1)(A)(ii), by inserting ``or (5)'' after 
     ``paragraph (4)''; and
       (2) by adding at the end the following new paragraph:
       ``(5) Money rentals received by the United States from a 
     lease under subsection (f) shall be deposited into the 
     account established under section 2906(a) of the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2687 note).''.
       (b) Corresponding Amendments to Base Closure Laws.--(1) 
     Section 207(a)(7) of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note) is amended 

[[Page H460]]
     by striking out ``transfer or disposal'' and inserting in lieu thereof 
     ``lease, transfer, or disposal''.
       (2) Section 2906(a)(2) of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2867 note) is amended--
       (A) in subparagraph (C), by striking out ``transfer or 
     disposal'' and inserting in lieu thereof ``lease, transfer, 
     or disposal''; and
       (B) in subparagraph (D), by striking out ``transfer or 
     disposal'' and inserting in lieu thereof ``lease, transfer, 
     or disposal''.

     SEC. 2832. IN-KIND CONSIDERATION FOR LEASES AT INSTALLATIONS 
                   TO BE CLOSED OR REALIGNED.

       Section 2667(f) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(4) The Secretary concerned may accept under subsection 
     (b)(5) services of a lessee for an entire installation to be 
     closed or realigned under a base closure law, or for any part 
     of such installation, without regard to the requirement in 
     subsection (b)(5) that a substantial part of the installation 
     be leased.''.

     SEC. 2833. INTERIM LEASES OF PROPERTY APPROVED FOR CLOSURE OR 
                   REALIGNMENT.

       Section 2667(f) of title 10, United States Code, is amended 
     by adding after paragraph (4), as added by section 2832 of 
     this Act, the following new paragraph:
       ``(5)(A) Notwithstanding the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.), the scope of any 
     environmental impact analysis necessary to support an interim 
     lease of property under this subsection shall be limited to 
     the environmental consequences of activities authorized under 
     the proposed lease and the cumulative impacts of other past, 
     present, and reasonably foreseeable future actions during the 
     period of the proposed lease.
       ``(B) Interim leases entered into under this subsection 
     shall be deemed not to prejudice the final disposal decision 
     with respect to the property, even if final disposal of the 
     property is delayed until completion of the term of the 
     interim lease. An interim lease under this subsection shall 
     not be entered into without prior consultation with the 
     redevelopment authority concerned.
       ``(C) Subparagraphs (A) and (B) shall not apply to an 
     interim lease under this subsection if authorized activities 
     under the lease would--
       ``(i) significantly affect the quality of the human 
     environment; or
       ``(ii) irreversibly alter the environment in a way that 
     would preclude any reasonable disposal alternative of the 
     property concerned.''.

     SEC. 2834. AUTHORITY TO LEASE PROPERTY REQUIRING 
                   ENVIRONMENTAL REMEDIATION AT INSTALLATIONS 
                   APPROVED FOR CLOSURE OR REALIGNMENT.

       Section 120(h)(3) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 
     U.S.C. 9620(h)(3)) is amended in the matter following 
     subparagraph (C)--
       (1) by striking out the first sentence; and
       (2) by adding at the end, flush to the paragraph margin, 
     the following:
     ``The requirements of subparagraph (B) shall not apply in any 
     case in which the person or entity to whom the real property 
     is transferred is a potentially responsible party with 
     respect to such property. The requirements of subparagraph 
     (B) shall not apply in any case in which the transfer of the 
     property occurs or has occurred by means of a lease, without 
     regard to whether the lessee has agreed to purchase the 
     property or whether the duration of the lease is longer than 
     55 years. In the case of a lease entered into after September 
     30, 1995, with respect to real property located at an 
     installation approved for closure or realignment under a base 
     closure law, the agency leasing the property, in consultation 
     with the Administrator, shall determine before leasing the 
     property that the property is suitable for lease, that the 
     uses contemplated for the lease are consistent with 
     protection of human health and the environment, and that 
     there are adequate assurances that the United States will 
     take all remedial action referred to in subparagraph (B) that 
     has not been taken on the date of the lease.''.

     SEC. 2835. FINAL FUNDING FOR DEFENSE BASE CLOSURE AND 
                   REALIGNMENT COMMISSION.

       Section 2902(k) of the Defense Base Closure and Realignment 
     Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
     U.S.C. 2687 note) is amended by adding at the end the 
     following new paragraph:
       ``(3)(A) The Secretary may transfer not more than $300,000 
     from unobligated funds in the account referred to in 
     subparagraph (B) for the purpose of assisting the Commission 
     in carrying out its duties under this part during October, 
     November, and December 1995. Funds transferred under the 
     preceding sentence shall remain available until December 31, 
     1995.
       ``(B) The account referred to in subparagraph (A) is the 
     Department of Defense Base Closure Account established under 
     section 207(a) of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).''.

     SEC. 2836. EXERCISE OF AUTHORITY DELEGATED BY THE 
                   ADMINISTRATOR OF GENERAL SERVICES.

       Section 2905(b)(2) of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) is amended--
       (1) in subparagraph (A)--
       (A) by striking out ``Subject to subparagraph (C)'' in the 
     matter preceding clause (i) and inserting in lieu thereof 
     ``Subject to subparagraph (B)''; and
       (B) by striking out ``in effect on the date of the 
     enactment of this Act'' each place it appears in clauses (i) 
     and (ii);
       (2) by striking out subparagraphs (B) and (C) and inserting 
     in lieu thereof the following new subparagraph (B):
       ``(B) The Secretary may, with the concurrence of the 
     Administrator of General Services--
       ``(i) prescribe general policies and methods for utilizing 
     excess property and disposing of surplus property pursuant to 
     the authority delegated under paragraph (1); and
       ``(ii) issue regulations relating to such policies and 
     methods, which shall supersede the regulations referred to in 
     subparagraph (A) with respect to that authority.''; and
       (3) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively.

     SEC. 2837. LEASE BACK OF PROPERTY DISPOSED FROM INSTALLATIONS 
                   APPROVED FOR CLOSURE OR REALIGNMENT.

       (a) Authority.--Section 2905(b)(4) of the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2687 note) is amended--
       (1) by redesignating subparagraphs (C), (D), and (E) as 
     subparagraphs (D), (E), and (F), respectively; and
       (2) by inserting after subparagraph (B) the following new 
     subparagraph (C):
       ``(C)(i) The Secretary may transfer real property at an 
     installation approved for closure or realignment under this 
     part (including property at an installation approved for 
     realignment which will be retained by the Department of 
     Defense or another Federal agency after realignment) to the 
     redevelopment authority for the installation if the 
     redevelopment authority agrees to lease, directly upon 
     transfer, one or more portions of the property transferred 
     under this subparagraph to the Secretary or to the head of 
     another department or agency of the Federal Government. 
     Subparagraph (B) shall apply to a transfer under this 
     subparagraph.
       ``(ii) A lease under clause (i) shall be for a term of not 
     to exceed 50 years, but may provide for options for renewal 
     or extension of the term by the department or agency 
     concerned.
       ``(iii) A lease under clause (i) may not require rental 
     payments by the United States.
       ``(iv) A lease under clause (i) shall include a provision 
     specifying that if the department or agency concerned ceases 
     requiring the use of the leased property before the 
     expiration of the term of the lease, the remainder of the 
     lease term may be satisfied by the same or another department 
     or agency of the Federal Government using the property for a 
     use similar to the use under the lease. Exercise of the 
     authority provided by this clause shall be made in 
     consultation with the redevelopment authority concerned.''.
       (b) Use of Funds To Improve Leased Property.--
     Notwithstanding any other provision of law, a department or 
     agency of the Federal Government that enters into a lease of 
     property under section 2905(b)(4)(C) of the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2687 note), as amended by 
     subsection (a), may improve the leased property using 
     funds appropriated or otherwise available to the 
     department or agency for such purpose.

     SEC. 2838. IMPROVEMENT OF BASE CLOSURE AND REALIGNMENT 
                   PROCESS REGARDING DISPOSAL OF PROPERTY.

       (a) Applicability.--Subparagraph (A) of section 2905(b)(7) 
     of the Defense Base Closure and Realignment Act of 1990 (part 
     A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) 
     is amended to read as follows:
       ``(A) The disposal of buildings and property located at 
     installations approved for closure or realignment under this 
     part after October 25, 1994, shall be carried out in 
     accordance with this paragraph rather than paragraph (6).''.
       (b) Agreements Under Redevelopment Plans.--Subparagraph 
     (F)(ii)(I) of such section is amended in the second sentence 
     by striking out ``the approval of the redevelopment plan by 
     the Secretary of Housing and Urban Development under 
     subparagraph (H) or (J)'' and inserting in lieu thereof ``the 
     decision regarding the disposal of the buildings and property 
     covered by the agreements by the Secretary of Defense under 
     subparagraph (K) or (L)''.
       (c) Revision of Redevelopment Plans.--Subparagraph (I) of 
     such section is amended--
       (1) in clause (i)(II), by inserting ``the Secretary of 
     Defense and'' before ``the Secretary of Housing and Urban 
     Development''; and
       (2) in clause (ii), by striking out ``the Secretary of 
     Housing and Urban Development'' and inserting in lieu thereof 
     ``such Secretaries''.
       (d) Disposal of Buildings and Property.--(1) Subparagraph 
     (K) of such section is amended to read as follows:
       ``(K)(i) Upon receipt of a notice under subparagraph 
     (H)(iv) or (J)(ii) of the determination of the Secretary of 
     Housing and Urban Development that a redevelopment plan for 
     an installation meets the requirements set forth in 
     subparagraph (H)(i), the Secretary of Defense shall dispose 
     of the buildings and property at the installation.
       ``(ii) For purposes of carrying out an environmental 
     assessment of the closure or realignment of an installation, 
     the Secretary 

[[Page H461]]
     of Defense shall treat the redevelopment plan for the installation 
     (including the aspects of the plan providing for disposal to 
     State or local governments, representatives of the homeless, 
     and other interested parties) as part of the proposed Federal 
     action for the installation.
       ``(iii) The Secretary of Defense shall dispose of buildings 
     and property under clause (i) in accordance with the record 
     of decision or other decision document prepared by the 
     Secretary in accordance with the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4331 et seq.). In preparing the 
     record of decision or other decision document, the Secretary 
     shall give substantial deference to the redevelopment plan 
     concerned.
       ``(iv) The disposal under clause (i) of buildings and 
     property to assist the homeless shall be without 
     consideration.
       ``(v) In the case of a request for a conveyance under 
     clause (i) of buildings and property for public benefit under 
     section 203(k) of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 484(k)) or sections 47151 
     through 47153 of title 49, United States Code, the sponsoring 
     Federal agency shall use the eligibility criteria set forth 
     in such section or such subchapter (as the case may be) to 
     determine the eligibility of the applicant and use proposed 
     in the request for the public benefit conveyance. The 
     determination of such eligibility should be made before 
     submission of the redevelopment plan concerned under 
     subparagraph (G).''.
       (2) Subparagraph (L) of such section is amended by striking 
     out clauses (iii) and (iv) and inserting in lieu thereof the 
     following new clauses (iii) and (iv):
       ``(iii) Not later than 90 days after the date of the 
     receipt of a revised plan for an installation under 
     subparagraph (J), the Secretary of Housing and Urban 
     Development shall--
       ``(I) notify the Secretary of Defense and the redevelopment 
     authority concerned of the buildings and property at an 
     installation under clause (i)(IV) that the Secretary of 
     Housing and Urban Development determines are suitable for use 
     to assist the homeless; and
       ``(II) notify the Secretary of Defense of the extent to 
     which the revised plan meets the criteria set forth in 
     subparagraph (H)(i).
       ``(iv)(I) Upon notice from the Secretary of Housing and 
     Urban Development with respect to an installation under 
     clause (iii), the Secretary of Defense shall dispose of 
     buildings and property at the installation in consultation 
     with the Secretary of Housing and Urban Development and the 
     redevelopment authority concerned.
       ``(II) For purposes of carrying out an environmental 
     assessment of the closure or realignment of an installation, 
     the Secretary of Defense shall treat the redevelopment plan 
     submitted by the redevelopment authority for the installation 
     (including the aspects of the plan providing for disposal to 
     State or local governments, representatives of the homeless, 
     and other interested parties) as part of the proposed Federal 
     action for the installation. The Secretary of Defense shall 
     incorporate the notification of the Secretary of Housing and 
     Urban Development under clause (iii)(I) as part of the 
     proposed Federal action for the installation only to the 
     extent, if any, that the Secretary of Defense considers such 
     incorporation to be appropriate and consistent with the best 
     and highest use of the installation as a whole, taking into 
     consideration the redevelopment plan submitted by the 
     redevelopment authority.
       ``(III) The Secretary of Defense shall dispose of buildings 
     and property under subclause (I) in accordance with the 
     record of decision or other decision document prepared by the 
     Secretary in accordance with the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4331 et seq.). In preparing the 
     record of decision or other decision document, the Secretary 
     shall give deference to the redevelopment plan submitted by 
     the redevelopment authority for the installation.
       ``(IV) The disposal under subclause (I) of buildings and 
     property to assist the homeless shall be without 
     consideration.
       ``(V) In the case of a request for a conveyance under 
     subclause (I) of buildings and property for public benefit 
     under section 203(k) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 484(k)) or 
     sections 47151 through 47153 of title 49, United States Code, 
     the sponsoring Federal agency shall use the eligibility 
     criteria set forth in such section or such subchapter (as the 
     case may be) to determine the eligibility of the applicant 
     and use proposed in the request for the public benefit 
     conveyance. The determination of such eligibility should be 
     made before submission of the redevelopment plan concerned 
     under subparagraph (G).''.
       (e) Conforming Amendment.--Subparagraph (M)(i) of such 
     section is amended by inserting ``or (L)'' after 
     ``subparagraph (K)''.
       (f) Clarification of Participants In Process.--Such section 
     is further amended by adding at the end the following new 
     subparagraph:
       ``(P) For purposes of this paragraph, the term `other 
     interested parties', in the case of an installation, includes 
     any parties eligible for the conveyance of property of the 
     installation under section 203(k) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 484(k)) or 
     sections 47151 through 47153 of title 49, United States Code, 
     whether or not the parties assist the homeless.''.

     SEC. 2839. AGREEMENTS FOR CERTAIN SERVICES AT INSTALLATIONS 
                   BEING CLOSED.

       (a) 1988 Law.--Section 204(b)(8) of the Defense 
     Authorization Amendments and Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note) is amended by 
     striking out subparagraph (A) and inserting in lieu thereof 
     the following new subparagraph:
       ``(A) Subject to subparagraph (C), the Secretary may enter 
     into agreements (including contracts, cooperative agreements, 
     or other arrangements for reimbursement) with local 
     governments for the provision of police or security services, 
     fire protection services, airfield operation services, or 
     other community services by such governments at military 
     installations to be closed under this title if the Secretary 
     determines that the provision of such services under such 
     agreements is in the best interests of the Department of 
     Defense.''.
       (b) 1990 Law.--Section 2905(b)(8) of the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2867 note) is amended by 
     striking out subparagraph (A) and inserting in lieu thereof 
     the following new subparagraph:
       ``(A) Subject to subparagraph (C), the Secretary may enter 
     into agreements (including contracts, cooperative agreements, 
     or other arrangements for reimbursement) with local 
     governments for the provision of police or security services, 
     fire protection services, airfield operation services, or 
     other community services by such governments at military 
     installations to be closed under this part if the Secretary 
     determines that the provision of such services under such 
     agreements is in the best interests of the Department of 
     Defense.''.

     SEC. 2840. AUTHORITY TO TRANSFER PROPERTY AT MILITARY 
                   INSTALLATIONS TO BE CLOSED TO PERSONS WHO 
                   CONSTRUCT OR PROVIDE MILITARY FAMILY HOUSING.

       (a) 1988 Law.--Section 204 of the Defense Authorization 
     Amendments and Base Closure and Realignment Act (Public Law 
     100-526; 10 U.S.C. 2687 note) is amended by adding at the end 
     the following new subsection:
       ``(e) Transfer Authority in Connection With Construction or 
     Provision of Military Family Housing.--(1) Subject to 
     paragraph (2), the Secretary may enter into an agreement to 
     transfer by deed real property or facilities located at or 
     near an installation closed or to be closed under this title 
     with any person who agrees, in exchange for the real property 
     or facilities, to transfer to the Secretary housing units 
     that are constructed or provided by the person and located at 
     or near a military installation at which there is a shortage 
     of suitable housing to meet the requirements of members of 
     the Armed Forces and their dependents. The Secretary may not 
     select real property for transfer under this paragraph if the 
     property is identified in the redevelopment plan for the 
     installation as items essential to the reuse or redevelopment 
     of the installation.
       ``(2) A transfer of real property or facilities may be made 
     under paragraph (1) only if--
       ``(A) the fair market value of the housing units to be 
     received by the Secretary in exchange for the property or 
     facilities to be transferred is equal to or greater than the 
     fair market value of such property or facilities, as 
     determined by the Secretary; or
       ``(B) in the event the fair market value of the housing 
     units is less than the fair market value of property or 
     facilities to be transferred, the recipient of the property 
     or facilities agrees to pay to the Secretary the amount equal 
     to the excess of the fair market value of the property or 
     facilities over the fair market value of the housing units.
       ``(3) Notwithstanding section 207(a)(7), the Secretary may 
     deposit funds received under paragraph (2)(B) in the 
     Department of Defense Family Housing Improvement Fund 
     established under section 2873(a) of title 10, United States 
     Code.
       ``(4) The Secretary shall submit to the appropriate 
     committees of Congress a report describing each agreement 
     proposed to be entered into under paragraph (1), including 
     the consideration to be received by the United States under 
     the agreement. The Secretary may not enter into the agreement 
     until the end of the 21-day period beginning on the date the 
     appropriate committees of Congress receive the report 
     regarding the agreement.
       ``(5) The Secretary may require any additional terms and 
     conditions in connection with an agreement authorized by this 
     subsection as the Secretary considers appropriate to protect 
     the interests of the United States.''.
       (b) 1990 Law.--Section 2905 of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) is amended by adding at the end 
     the following new subsection:
       ``(f) Transfer Authority in Connection With Construction or 
     Provision of Military Family Housing.--(1) Subject to 
     paragraph (2), the Secretary may enter into an agreement to 
     transfer by deed real property or facilities located at or 
     near an installation closed or to be closed under this part 
     with any person who agrees, in exchange for the real property 
     or facilities, to transfer to the Secretary housing units 
     that are constructed or provided by the person and located at 
     or near a military installation at which there is a shortage 
     of suitable housing to meet the requirements of members of 
     the Armed Forces and their dependents. The Secretary may not 
     select real property for 

[[Page H462]]
     transfer under this paragraph if the property is identified in the 
     redevelopment plan for the installation as property essential 
     to the reuse or redevelopment of the installation.
       ``(2) A transfer of real property or facilities may be made 
     under paragraph (1) only if--
       ``(A) the fair market value of the housing units to be 
     received by the Secretary in exchange for the property or 
     facilities to be transferred is equal to or greater than the 
     fair market value of such property or facilities, as 
     determined by the Secretary; or
       ``(B) in the event the fair market value of the housing 
     units is less than the fair market value of property or 
     facilities to be transferred, the recipient of the property 
     or facilities agrees to pay to the Secretary the amount equal 
     to the excess of the fair market value of the property or 
     facilities over the fair market value of the housing units.
       ``(3) Notwithstanding paragraph (2) of section 2906(a), the 
     Secretary may deposit funds received under paragraph (2)(B) 
     in the Department of Defense Family Housing Improvement Fund 
     established under section 2873(a) of title 10, United States 
     Code.
       ``(4) The Secretary shall submit to the congressional 
     defense committees a report describing each agreement 
     proposed to be entered into under paragraph (1), including 
     the consideration to be received by the United States under 
     the agreement. The Secretary may not enter into the agreement 
     until the end of the 30-day period beginning on the date the 
     congressional defense committees receive the report regarding 
     the agreement.
       ``(5) The Secretary may require any additional terms and 
     conditions in connection with an agreement authorized by this 
     subsection as the Secretary considers appropriate to protect 
     the interests of the United States.''.
       (c) Regulations.--Not later than nine months after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     prescribe any regulations necessary to carry out subsection 
     (e) of section 204 of the Defense Authorization Amendments 
     and Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note), as added by subsection (a), and subsection 
     (f) of section 2905 of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note), as added by subsection (b).

     SEC. 2841. USE OF SINGLE BASE CLOSURE AUTHORITIES FOR 
                   DISPOSAL OF PROPERTY AND FACILITIES AT FORT 
                   HOLABIRD, MARYLAND.

       (a) Consolidation of Base Closure Authorities.--In the case 
     of the property and facilities at Fort Holabird, Maryland, 
     described in subsection (b), the Secretary of Defense shall 
     dispose of such property and facilities in accordance with 
     section 2905(b)(7) of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note), as amended by section 2838 of 
     this Act.
       (b) Covered Property and Facilities.--Subsection (a) 
     applies to the following property and facilities at Fort 
     Holabird, Maryland:
       (1) Property and facilities that were approved for closure 
     or realignment under title II of the Defense Authorization 
     Amendments and Base Closure and Realignment Act (Public Law 
     100-526; 10 U.S.C. 2687 note), but have not been disposed of 
     as of the date of the enactment of this Act, including 
     buildings 305 and 306 and the parking lots and other property 
     associated with such buildings.
       (2) Property and facilities that were approved in 1995 for 
     closure or realignment under the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note).
       (c) Use of Surveys and Other Evaluations of Property.--In 
     carrying out the disposal of the property and facilities 
     referred to in subsection (b)(1), the Secretary shall utilize 
     any surveys and other evaluations of such property and 
     facilities that were prepared by the Corps of Engineers 
     before the date of the enactment of this Act as part of the 
     process for the disposal of such property and facilities.
                 Subtitle D--Land Conveyances Generally

                        PART I--ARMY CONVEYANCES

     SEC. 2851. TRANSFER OF JURISDICTION, FORT SAM HOUSTON, TEXAS.

       (a) Transfer of Land for National Cemetery.--The Secretary 
     of the Army may transfer, without reimbursement, to the 
     administrative jurisdiction of the Secretary of Veterans 
     Affairs a parcel of real property (including any improvements 
     thereon) consisting of approximately 53 acres and comprising 
     a portion of Fort Sam Houston, Texas.
       (b) Use of Land.--The Secretary of Veterans Affairs shall 
     use the real property transferred under subsection (a) as a 
     national cemetery under chapter 24 of title 38, United States 
     Code.
       (c) Legal Description.--The exact acreage and legal 
     description of the real property to be transferred under this 
     section shall be determined by a survey satisfactory to the 
     Secretary of the Army. The cost of the survey shall be borne 
     by the Secretary of Veterans Affairs.
       (d) Additional Terms and Conditions.--The Secretary of the 
     Army may require such additional terms and conditions in 
     connection with the transfer under this section as 
     the Secretary of the Army considers appropriate to protect 
     the interests of the United States.

     SEC. 2852. TRANSFER OF JURISDICTION, FORT BLISS, TEXAS.

       (a) Transfer of Land for National Cemetery.--The Secretary 
     of the Army may transfer, without reimbursement, to the 
     administrative jurisdiction of the Secretary of Veterans 
     Affairs a parcel of real property (including any improvements 
     thereon) consisting of approximately 22 acres and comprising 
     a portion of Fort Bliss, Texas.
       (b) Use of Land.--The Secretary of Veterans Affairs shall 
     use the real property transferred under subsection (a) as an 
     addition to the Fort Bliss National Cemetery and administer 
     such real property pursuant to chapter 24 of title 38, United 
     States Code.
       (c) Legal Description.--The exact acreage and legal 
     description of the real property to be transferred under this 
     section shall be determined by a survey satisfactory to the 
     Secretary of the Army. The cost of the survey shall be borne 
     by the Secretary of Veterans Affairs.
       (d) Additional Terms and Conditions.--The Secretary of the 
     Army may require such additional terms and conditions in 
     connection with the transfer under this section as the 
     Secretary of the Army considers appropriate to protect the 
     interests of the United States.

     SEC. 2853. TRANSFER OF JURISDICTION AND LAND CONVEYANCE, FORT 
                   DEVENS MILITARY RESERVATION, MASSACHUSETTS.

       (a) Transfer of Land for Wildlife Refuge.--Subject to 
     subsections (b) and (c), the Secretary of the Army shall 
     transfer, without reimbursement, to the administrative 
     jurisdiction of the Secretary of the Interior that portion of 
     Fort Devens Military Reservation, Massachusetts, that is 
     situated south of Massachusetts State Route 2, for inclusion 
     in the Oxbow National Wildlife Refuge.
       (b) Land Conveyance.--Subject to subsection (c), the 
     Secretary of the Army shall convey to the Town of Lancaster, 
     Massachusetts (in this section referred to as the ``Town''), 
     all right, title, and interest of the United States in and to 
     a parcel of real property consisting of approximately 100 
     acres of the parcel available for transfer under subsection 
     (a) and located adjacent to Massachusetts State Highway 70.
       (c) Requirements Relating to Transfer and Conveyance.--(1) 
     The transfer under subsection (a) and the conveyance under 
     subsection (b) may not be made unless the property to be 
     transferred and conveyed is determined to be excess to the 
     needs of the Department of Defense.
       (2) The transfer and conveyance shall be made as soon as 
     practicable after the date on which the property is 
     determined to be excess to the needs of the Department of 
     Defense.
       (d) Legal Description.--(1) The exact acreage and legal 
     description of the real property to be transferred under 
     subsection (a) shall be determined by a survey mutually 
     satisfactory to the Secretary of the Army and the Secretary 
     of the Interior. The cost of the survey shall be borne by the 
     Secretary of the Interior.
       (2) The exact acreage and legal description of the real 
     property to be conveyed under subsection (b) shall be 
     determined by a survey mutually satisfactory to the Secretary 
     of the Army, the Secretary of the Interior, and the Board of 
     Selectmen of the Town. The cost of the survey shall be borne 
     by the Town.
       (e) Additional Terms and Conditions.--The Secretary of the 
     Army may require such additional terms and conditions in 
     connection with the transfer under subsection (a) and the 
     conveyance under subsection (b) as the Secretary of the Army 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2854. MODIFICATION OF LAND CONVEYANCE, FORT BELVOIR, 
                   VIRGINIA.

       (a) Designation of Recipient.--Subsection (a) of section 
     2821 of the Military Construction Authorization Act for 
     Fiscal Years 1990 and 1991 (division B of Public Law 101-189; 
     103 Stat. 1658) is amended by striking out ``any grantee 
     selected in accordance with subsection (e)'' and inserting in 
     lieu thereof ``the County of Fairfax, Virginia (in this 
     section referred to as the `grantee'),''.
       (b) Consideration.--Subsection (b)(1) of such section is 
     amended by striking out subparagraph (B) and inserting in 
     lieu thereof the following new subparagraph:
       ``(B) grant title, free of liens and other encumbrances, to 
     the Department to such facilities and, if not already owned 
     by the Department, to the underlying land; and''.
       (c) Content of Agreement.--Subsection (c) of such section 
     is amended to read as follows:
       ``(c) Content of Agreement.--An agreement entered into 
     under this section shall include the following:
       ``(1) A requirement that the grantee construct facilities 
     and make infrastructure improvements for the Department of 
     the Army that the Secretary determines are necessary for the 
     Department at Fort Belvoir and at other sites at which 
     activities will be relocated as a result of the conveyance 
     made under this section.
       ``(2) A requirement that the construction of facilities and 
     infrastructure improvements referred to in paragraph (1) be 
     carried out in accordance with plans and specifications 
     approved by the Secretary.
       ``(3) A requirement that the Secretary retain a lien or 
     other security interest against the property conveyed to the 
     grantee in the amount of the fair market value of the 
     property, as determined under subsection (b)(2). The 
     agreement will specify the terms for releasing the lien or 
     other security interest, in 

[[Page H463]]
     whole or in part. In the event of default by the County on its 
     obligations under the terms of the agreement, the Secretary 
     shall enforce the lien or security interest. The proceeds 
     obtained through enforcing the lien or security interest may 
     be used by the Secretary to construct facilities and make 
     infrastructure improvements in lieu of those provided for in 
     the agreement.''.
       (d) Surveys.--Subsection (g) of such section is amended by 
     striking out the last sentence and inserting in lieu thereof 
     the following: ``The grantee shall be responsible for 
     completing any such survey without cost to the United 
     States.''.
       (e) Conforming Amendments.--Such section is further 
     amended--
       (1) in subsection (a), by striking out ``Subject to 
     subsections (b) through (h), the'' and inserting in lieu 
     thereof ``The'';
       (2) in subsection (b)(1), by striking out ``subsection 
     (c)(1)(D)'' both places it appears and inserting in lieu 
     thereof ``subsection (c)(1)(A)'';
       (3) by striking out subsections (e) and (f); and
       (4) by redesignating subsections (g) and (h) as subsections 
     (e) and (f), respectively.

     SEC. 2855. LAND EXCHANGE, FORT LEWIS, WASHINGTON.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to Weyerhaeuser Real Estate Company, Tacoma, 
     Washington (in this section referred to as ``WRECO''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property at Fort Lewis, Washington, known as 
     an unimproved portion of Tract 1000 (formerly being in the 
     DuPont Steilacoom Road, consisting of approximately 1.23 
     acres), and Tract 26E (consisting of 0.03 acre).
       (b) Consideration.--As consideration for the conveyance 
     authorized by subsection (a), WRECO shall convey or cause to 
     be conveyed to the United States, by warranty deed acceptable 
     to the Secretary, a 0.39 acre parcel of real property located 
     adjacent to Fort Lewis, Washington, together with other 
     consideration acceptable to the Secretary. The total 
     consideration conveyed to the United States shall not be less 
     than the fair market value of the land conveyed under 
     subsection (a).
       (c) Determination of Fair Market Value.--The determinations 
     of the Secretary regarding the fair market values of the 
     parcels of real property and improvements to be conveyed 
     pursuant to subsections (a) and (b) shall be final.
       (d) Description of Property.--The exact acreage and legal 
     description of the parcels of real property to be conveyed 
     pursuant to subsections (a) and (b) shall be determined by a 
     survey satisfactory to the Secretary. The cost of the survey 
     shall be borne by WRECO.
       (e) Effect on Existing Reversionary Interest.--The 
     Secretary may enter into an agreement with the appropriate 
     officials of Pierce County, Washington, under which--
       (1) the existing reversionary interest of Pierce County in 
     the lands to be conveyed by the United States under 
     subsection (a) is extinguished; and
       (2) the conveyance to the United States under subsection 
     (b) is made subject to a similar reversionary interest in 
     favor of Pierce County in the lands conveyed under such 
     subsection.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2856. LAND EXCHANGE, ARMY RESERVE CENTER, GAINESVILLE, 
                   GEORGIA.

       (a) Land Exchange Authorized.--The Secretary of the Army 
     may convey to the City of Gainesville, Georgia (in this 
     section referred to as the ``City''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, together with any improvements thereon, consisting 
     of approximately 4.2 acres and located on Shallowford Road in 
     Gainesville, Georgia, the site of the Army Reserve Center, 
     Gainesville, Georgia.
       (b) Consideration.--As consideration for the conveyance 
     authorized by subsection (a), the City shall--
       (1) convey to the United States all right, title, and 
     interest in and to a parcel of real property consisting of 
     approximately 8 acres located in the Atlas Industrial Park, 
     Gainesville, Georgia, that is acceptable to the Secretary;
       (2) design and construct on such real property suitable 
     facilities (as determined by the Secretary) for training 
     activities of the Army Reserve to replace facilities conveyed 
     under subsection (a);
       (3) carry out, at cost to the City, any environmental 
     assessments and any other studies, analyses, and assessments 
     that may be required under Federal law in connection with the 
     land conveyances under subsection (a) and paragraph (1) and 
     the construction under paragraph (2);
       (4) pay the Secretary the amount (as determined by the 
     Secretary) equal to the cost of relocating Army Reserve units 
     from the real property to be conveyed under subsection (a) to 
     the replacement facilities to be constructed under paragraph 
     (2); and
       (5) if the fair market value of the real property conveyed 
     by the Secretary under subsection (a) exceeds the fair market 
     value of the consideration provided by the City under 
     paragraphs (1) through (4), pay the United States the amount 
     equal to the amount of such excess.
       (c) Determination of Fair Market Value.--The Secretary 
     shall determine the fair market value of the real property to 
     be conveyed under subsection (a) and of the consideration to 
     be furnished by the City under subsection (b). Such 
     determination shall be final.
       (d) Description of Property.--The exact acreage and legal 
     description of the parcels of real property to be conveyed 
     under subsections (a) and (b) shall be determined by a survey 
     satisfactory to the Secretary. The cost of the survey shall 
     be borne by the City.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances authorized by this section as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2857. LAND CONVEYANCE, HOLSTON ARMY AMMUNITION PLANT, 
                   MOUNT CARMEL, TENNESSEE.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without reimbursement, to the City of Mount Carmel, 
     Tennessee (in this section referred to as the ``City''), 
     all right, title, and interest of the United States in and 
     to a parcel of real property, including improvements 
     thereon, consisting of approximately 6.5 acres located at 
     Holston Army Ammunition Plant, Tennessee. The property is 
     located adjacent to the Mount Carmel Cemetery and is 
     intended for expansion of the cemetery.
       (b) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the City.
       (c) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2858. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT, 
                   CHARLESTOWN, INDIANA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the State of Indiana (in 
     this section referred to as the ``State''), all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including any improvements thereon, that consists 
     of approximately 1125 acres at the inactivated Indiana Army 
     Ammunition Plant in Charlestown, Indiana, and is the subject 
     of a 25-year lease between the Secretary and the State.
       (b) Condition of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the condition that 
     the State use the conveyed property for recreational 
     purposes.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the State.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2859. LAND CONVEYANCE, FORT ORD, CALIFORNIA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the City of Seaside, California (in this section 
     referred to as the ``City''), all right, title, and interest 
     of the United States in and to a parcel of real property 
     (including improvements thereon) consisting of approximately 
     477 acres located in Monterey County, California, and 
     comprising a portion of the former Fort Ord Military Complex. 
     The real property to be conveyed to the City includes the two 
     Fort Ord Golf Courses, Black Horse and Bayonet, and a portion 
     of the Hayes Housing Facilities.
       (b) Consideration.--As consideration for the conveyance of 
     the real property and improvements under subsection (a), the 
     City shall pay to the United States an amount equal to the 
     fair market value of the property to be conveyed, as 
     determined by the Secretary.
       (c) Use and Deposit of Proceeds.--(1) From the funds paid 
     by the City under subsection (b), the Secretary shall deposit 
     in the Morale, Welfare, and Recreation Fund Account of the 
     Department of the Army such amounts as may be necessary to 
     cover morale, welfare, and recreation activities at Army 
     installations in the general vicinity of Fort Ord during 
     fiscal years 1996 through 2000. The amount deposited by the 
     Secretary into the Account shall not exceed the fair market 
     value, as established under subsection (b), of the two Fort 
     Ord Golf Courses conveyed under subsection (a). The Secretary 
     shall notify Congress of the amount to be deposited not later 
     than 90 days after the date of the conveyance.
       (2) The Secretary shall deposit the balance of any funds 
     paid by the City under subsection (b), after deducting the 
     amount deposited under paragraph (1), in the Department of 
     Defense Base Closure Account 1990.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey mutually 
     satisfactory to the Secretary and the City. The cost of the 
     survey shall be borne by the City.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
     
[[Page H464]]


     SEC. 2860. LAND CONVEYANCE, PARKS RESERVE FORCES TRAINING 
                   AREA, DUBLIN, CALIFORNIA.

       (a) Conveyance Authorized.--(1) Except as provided in 
     paragraph (2), the Secretary of the Army may convey to the 
     County of Alameda, California (in this section referred to as 
     the ``County''), all right, title, and interest of the United 
     States in and to a parcel of real property, including 
     improvements thereon, consisting of approximately 42 acres 
     located at Parks Reserve Forces Training Area, Dublin, 
     California.
       (2) The conveyance authorized by this section shall not 
     include any oil, gas, or mineral interest of the United 
     States in the real property to be conveyed.
       (b) Consideration.--(1) As consideration for the conveyance 
     under subsection (a)(1), the County shall provide the Army 
     with the following services at the portion of Parks Reserve 
     Forces Training Area retained by the Army:
       (A) Relocation of the main gate of the retained Training 
     Area from Dougherty Road to Dublin Boulevard across from the 
     Bay Area Rapid Transit District East Dublin station, 
     including the closure of the existing main gate on Dougherty 
     Road, construction of a security facility, and construction 
     of a roadway from the new entrance to Fifth Street.
       (B) Enclosing and landscaping of the southern boundary of 
     the retained Training Area installation located northerly of 
     Dublin Boulevard.
       (C) Enclosing and landscaping of the eastern boundary of 
     the retained Training Area from Dublin Boulevard to Gleason 
     Drive.
       (D) Resurfacing of roadways within the retained Training 
     Area.
       (E) Provision of such other services in connection with the 
     retained Training Area, including relocation or 
     reconstruction of water lines, relocation or reconstruction 
     of sewer lines, construction of drainage improvements, and 
     construction of buildings, as the Secretary and the County 
     may determine to be appropriate.
       (F) Provision for and funding of any environmental 
     mitigation that is necessary as a result of a change in use 
     of the conveyed property by the County.
       (2) The detailed specifications for the services to be 
     provided under paragraph (1) may be determined and approved 
     on behalf of the Secretary by the Commander of Parks Reserve 
     Forces Training Area. The preparation costs of such 
     specifications shall be borne by the County.
       (3) The fair market value of improvements and services 
     received by the United States from the County under paragraph 
     (1) must be equal to or exceed the appraised fair market 
     value of the real property to be conveyed under subsection 
     (a)(1). The appraisal of the fair market value of the 
     property shall be subject to the Secretary's review and 
     approval.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a)(1) shall be determined by a survey 
     satisfactory to the Secretary. The cost of the survey shall 
     be borne by the County.
       (d) Time for Transfer of Title.--The transfer of title to 
     the County under subsection (a)(1) may be executed by the 
     Secretary only upon the satisfactory guarantee by the County 
     of completion of the services to be provided under subsection 
     (b).
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a)(1) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2861. LAND CONVEYANCE, ARMY RESERVE CENTER, YOUNGSTOWN, 
                   OHIO.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the City of Youngstown, 
     Ohio (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to a 
     parcel of excess real property, including improvements 
     thereon, that is located at 399 Miller Street in Youngstown, 
     Ohio, and contains the Kefurt Army Reserve Center.
       (b) Condition of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the condition that 
     the City retain the conveyed property for the use and benefit 
     of the Youngstown Fire Department.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the City.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2862. LAND CONVEYANCE, ARMY RESERVE PROPERTY, FORT 
                   SHERIDAN, ILLINOIS.

       (a) Conveyance Authorized.--Subject to subsection (b), the 
     Secretary of the Army may convey to any transferee selected 
     under subsection (g) all right, title, and interest of the 
     United States in and to a parcel of real property (including 
     improvements thereon) at Fort Sheridan, Illinois, consisting 
     of approximately 114 acres and comprising an Army Reserve 
     area.
       (b) Requirement for Federal Screening of Property.--The 
     Secretary may not carry out the conveyance of property 
     authorized by subsection (a) unless the Secretary determines 
     that no department or agency of the Federal Government will 
     accept the transfer of the property.
       (c) Consideration.--(1) As consideration for the conveyance 
     under subsection (a), the transferee selected under 
     subsection (g) shall--
       (A) convey to the United States a parcel of real property 
     that meets the requirements of subsection (d);
       (B) design for and construct on the property conveyed under 
     subparagraph (A) such facilities (including support 
     facilities and infrastructure) to replace the facilities 
     conveyed pursuant to the authority in subsection (a) as the 
     Secretary considers appropriate; and
       (C) pay the cost of relocating Army personnel in the 
     facilities located on the real property conveyed pursuant to 
     the authority in subsection (a) to the facilities constructed 
     under subparagraph (B).
       (2) The Secretary shall ensure that the fair market value 
     of the consideration provided by the transferee under 
     paragraph (1) is not less than the fair market value of the 
     real property conveyed by the Secretary under subsection (a).
       (d) Requirements Relating to Property To Be Conveyed to 
     United States.--The real property conveyed to the United 
     States under subsection (c)(1)(A) by the transferee selected 
     under subsection (g) shall--
       (1) be located not more than 25 miles from Fort Sheridan;
       (2) be located in a neighborhood or area having social and 
     economic conditions similar to the social and economic 
     conditions of the area in which Fort Sheridan is located; and
       (3) be acceptable to the Secretary.
       (e) Interim Relocation of Army Personnel.--Pending 
     completion of the construction of all the facilities proposed 
     to be constructed under subsection (c)(1)(B) by the 
     transferee selected under subsection (g), the Secretary may 
     relocate Army personnel in the facilities located on the 
     property to be conveyed pursuant to the authority in 
     subsection (a) to the facilities that have been constructed 
     by the transferee under such subsection (c)(1)(B).
       (f) Determination of Fair Market Value.--The Secretary 
     shall determine the fair market value of the real property to 
     be conveyed under subsection (a) and of the consideration to 
     be provided under subsection (c)(1). Such determination shall 
     be final.
       (g) Selection of Transferee.--(1) The Secretary shall use 
     competitive procedures for the selection of a transferee 
     under subsection (a).
       (2) In evaluating the offers of prospective transferees, 
     the Secretary shall--
       (A) consider such criteria as the Secretary considers to be 
     appropriate to determine whether prospective transferees will 
     be able to satisfy the consideration requirements specified 
     in subsection (c)(1); and
       (B) consult with the communities and jurisdictions in the 
     vicinity of Fort Sheridan (including the City of Lake Forest, 
     the City of Highwood, and the City of Highland Park and the 
     County of Lake, Illinois) in order to determine the most 
     appropriate use of the property to be conveyed.
       (h) Descriptions of Property.--The exact acreage and legal 
     descriptions of the real property to be conveyed by the 
     Secretary under subsection (a) and the real property to be 
     conveyed under subsection (c)(1)(A) shall be determined by a 
     survey satisfactory to the Secretary. The cost of the survey 
     shall be borne by the transferee selected under subsection 
     (g).
       (i) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2863. LAND CONVEYANCE, PROPERTY UNDERLYING CUMMINS 
                   APARTMENT COMPLEX, FORT HOLABIRD, MARYLAND.

       (a) Conveyance Authorized.--Notwithstanding any other 
     provision of law, the Secretary of the Army may convey to the 
     existing owner of the improvements thereon all right, title, 
     and interest of the United States in and to a parcel of real 
     property underlying the Cummins Apartment Complex at Fort 
     Holabird, Maryland, that consists of approximately 6 acres, 
     and any interest the United States may have in the 
     improvements thereon.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the owner of the improvements referred 
     to in that subsection shall provide compensation to the 
     United States in an amount equal to the fair market value (as 
     determined by the Secretary) of the property interest to be 
     conveyed.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey that is 
     satisfactory to the Secretary.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2864. MODIFICATION OF EXISTING LAND CONVEYANCE, ARMY 
                   PROPERTY, HAMILTON AIR FORCE BASE, CALIFORNIA.

       (a) Application of Section.--The authority provided in 
     subsection (b) shall apply 

[[Page H465]]
     only in the event that the purchaser purchases only a portion of the 
     Sale Parcel referred to in section 9099 of the Department of 
     Defense Appropriations Act, 1993 (Public Law 102-396; 106 
     Stat. 1924) and exercises the purchaser's option to withdraw 
     from the sale as to the rest of the Sale Parcel.
       (b) Conveyance Authority in Event of Partial Sale.--The 
     Secretary of the Army may convey to the City of Novato, 
     California (in this section referred to as the ``City'')--
       (1) that portion of the Sale Parcel (other than Landfill 26 
     and an appropriate buffer area around it and the groundwater 
     treatment facility site) that is not purchased as provided in 
     subsection (a); and
       (2) any of the land referred to in subsection (e) of such 
     section 9099 that is not purchased by the purchaser.
       (c) Consideration and Conditions on Conveyance.--The 
     conveyance under subsection (b) shall be made as a public 
     benefit transfer to the City for the sum of One Dollar, 
     subject to the condition that the conveyed property be used 
     for school, classroom, or other educational purposes or as a 
     public park or recreation area.
       (d) Subsequent Conveyance by the City.--(1) If, within 10 
     years after the conveyance under subsection (b), the City 
     conveys all or any part of the conveyed property to a third 
     party without the use restrictions specified in subsection 
     (c), the City shall pay to the Secretary of the Army an 
     amount equal to the proceeds received by the City from the 
     conveyance, minus the demonstrated reasonable costs of making 
     the conveyance and of any improvements made by the City to 
     the property following its acquisition of the land (but only 
     to the extent such improvements increase the value of the 
     property conveyed). The Secretary of the Army shall deliver 
     into the applicable closing escrow an acknowledgement of 
     receipt of the proceeds and a release of the reverter right 
     under subsection (e) as to the affected land, effective upon 
     such receipt.
       (2) Until one year after the completion of the cleanup of 
     contaminated soil in the Landfill located on the Sale Parcel 
     and completion of the groundwater treatment facilities, any 
     conveyance by the City must be at a per-acre price for the 
     portion sold that is at least equal to the per-acre contract 
     price paid by the purchaser for the portion of the Sale 
     Parcel purchased under the Agreement and Modification for the 
     purchase of the Sale Parcel by the purchaser. Thereafter, any 
     conveyance by the City must be at a price at least equal to 
     the fair market value of the portion sold.
       (3) This subsection shall not apply to a conveyance by the 
     City to another public or quasi-public agency for public uses 
     of the kind described in subsection (c).
       (e) Reversion.--If the Secretary of the Army determines 
     that the City has failed to make a payment as required 
     by subsection (d)(1) or that any portion of the conveyed 
     property retained by the City or conveyed under subsection 
     (d)(3) is not being utilized in accordance with subsection 
     (c), title to the applicable portion of such property 
     shall revert to the United States at the election of the 
     Administrator of the General Services Administration.
       (f) Special Conveyance Regarding Building 138 Parcel.--The 
     Secretary of the Army may convey to the purchaser of the Sale 
     Parcel the Building 138 parcel, which has been designated by 
     the parties as Parcel A4. The per-acre price for the portion 
     conveyed under this subsection shall be at least equal to the 
     per-acre contract price paid by the purchaser for the portion 
     of the Sale Parcel purchased under the Agreement and 
     Modification, dated September 25, 1990, as amended.

                       PART II--NAVY CONVEYANCES

     SEC. 2865. TRANSFER OF JURISDICTION, NAVAL WEAPONS INDUSTRIAL 
                   RESERVE PLANT, CALVERTON, NEW YORK.

       (a) Transfer Authorized.--Notwithstanding section 2854 of 
     the Military Construction Authorization Act for Fiscal Year 
     1993 (division B of Public Law 102-484; 106 Stat. 2626), as 
     amended by section 2823 of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337; 108 Stat. 3058), the Secretary of the Navy may 
     transfer, without reimbursement, to the administrative 
     jurisdiction of the Secretary of Veterans Affairs a parcel of 
     real property consisting of approximately 150 acres located 
     adjacent to the Calverton National Cemetery, Calverton, New 
     York, and comprising a portion of the buffer zone of the 
     Naval Weapons Industrial Reserve Plant, Calverton, New York.
       (b) Use of Property.--The Secretary of Veterans Affairs 
     shall use the real property transferred under subsection (a) 
     as an addition to the Calverton National Cemetery and 
     administer such real property pursuant to chapter 24 of title 
     38, United States Code.
       (c) Survey.--The cost of any survey necessary for the 
     transfer of jurisdiction of the real property described in 
     subsection (a) from the Secretary of the Navy to the 
     Secretary of Veterans Affairs shall be borne by the Secretary 
     of Veterans Affairs.
       (d) Additional Terms and Conditions.--The Secretary of the 
     Navy may require such additional terms and conditions in 
     connection with the transfer under this section as the 
     Secretary of the Navy considers appropriate to protect the 
     interests of the United States.

     SEC. 2866. MODIFICATION OF LAND CONVEYANCE, NAVAL WEAPONS 
                   INDUSTRIAL RESERVE PLANT, CALVERTON, NEW YORK.

       (a) Removal of Reversionary Interest; Addition of Lease 
     Authority.--Subsection (c) of section 2833 of the Military 
     Construction Authorization Act for Fiscal Year 1995 (division 
     B of Public Law 103-337; 108 Stat. 3061) is amended to read 
     as follows:
       ``(c) Lease Authority.--Until such time as the real 
     property described in subsection (a) is conveyed by deed, the 
     Secretary may lease the property, along with improvements 
     thereon, to the Community Development Agency in exchange for 
     security services, fire protection services, and maintenance 
     services provided by the Community Development Agency for the 
     property.''.
       (b) Conforming Amendment.--Subsection (e) of such section 
     is amended by striking out ``subsection (a)'' and inserting 
     in lieu thereof ``subsection (a) or a lease under subsection 
     (c)''.

     SEC. 2867. LAND CONVEYANCE ALTERNATIVE TO EXISTING LEASE 
                   AUTHORITY, NAVAL SUPPLY CENTER, OAKLAND, 
                   CALIFORNIA.

       Section 2834(b) of the Military Construction Authorization 
     Act for Fiscal Year 1993 (division B of Public Law 102-484; 
     106 Stat. 2614), as amended by section 2833 of the Military 
     Construction Authorization Act for Fiscal Year 1994 (division 
     B of Public Law 103-160; 107 Stat. 1896) and section 2821 of 
     the Military Construction Authorization Act for Fiscal Year 
     1995 (division B of Public Law 103-337; 108 Stat. 3057), is 
     further amended by adding at the end the following new 
     paragraphs:
       ``(4) In lieu of entering into a lease under paragraph (1), 
     or in place of an existing lease under that paragraph, the 
     Secretary may convey, without consideration, the property 
     described in that paragraph to the City of Oakland, 
     California, the Port of Oakland, California, the City of 
     Alameda, California, or the City of Richmond, California, 
     under such terms and conditions as the Secretary considers 
     appropriate.
       ``(5) The exact acreage and legal description of any 
     property conveyed under paragraph (4) shall be determined by 
     a survey satisfactory to the Secretary. The cost of each 
     survey shall be borne by the recipient of the property.''.

     SEC. 2868. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE 
                   PLANT, MCGREGOR, TEXAS.

       (a) Conveyance Authorized.--(1) The Secretary of the Navy 
     may convey, without consideration, to the City of McGregor, 
     Texas (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including any improvements thereon, 
     containing the Naval Weapons Industrial Reserve Plant, 
     McGregor, Texas.
       (2) After screening the facilities, equipment, and fixtures 
     (including special tooling and special test equipment) 
     located on the parcel for other uses by the Department of the 
     Navy, the Secretary may include in the conveyance under 
     paragraph (1) any facilities, equipment, and fixtures on the 
     parcel not to be so used if the Secretary determines that 
     manufacturing activities requiring the use of such 
     facilities, equipment, and fixtures are likely to continue or 
     be reinstated on the parcel after conveyance under paragraph 
     (1).
       (b) Lease Authority.--Until such time as the real property 
     described in subsection (a)(1) is conveyed by deed, the 
     Secretary may lease the property, along with improvements 
     thereon, to the City in exchange for security services, fire 
     protection services, and maintenance services provided by the 
     City for the property.
       (c) Condition of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the condition that 
     the City, directly or through an agreement with a public or 
     private entity, use the conveyed property (or offer the 
     conveyed property for use) for economic redevelopment to 
     replace all or a part of the economic activity being lost at 
     the parcel.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a)(1) shall be determined by a survey 
     satisfactory to the Secretary. The cost of the survey shall 
     be borne by the City.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) or a lease under 
     subsection (b) as the Secretary considers appropriate to 
     protect the interests of the United States.

     SEC. 2869. LAND CONVEYANCE, NAVAL SURFACE WARFARE CENTER, 
                   MEMPHIS, TENNESSEE.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the Memphis and Shelby County Port Commission, 
     Memphis, Tennessee (in this section referred to as the 
     ``Port''), all right, title, and interest of the United 
     States in and to a parcel of real property (including any 
     improvements thereon) consisting of approximately 26 acres 
     that is located at the Carderock Division, Naval Surface 
     Warfare Center, Memphis Detachment, Presidents Island, 
     Memphis, Tennessee.
       (b) Consideration.--As consideration for the conveyance of 
     real property under subsection (a), the Port shall--
       (1) grant to the United States a restrictive easement in 
     and to a parcel of real property consisting of approximately 
     100 acres that is adjacent to the Memphis Detachment, 
     Presidents Island, Memphis, Tennessee; and
       (2) if the fair market value of the easement granted under 
     paragraph (1) is less than the 

[[Page H466]]
     fair market value of the real property conveyed under subsection (a), 
     provide the United States such additional consideration as 
     the Secretary and the Port jointly determine appropriate so 
     that the value of the consideration received by the United 
     States under this subsection is equal to or greater than the 
     fair market value of the real property conveyed under 
     subsection (a).
       (c) Condition of Conveyance.--The conveyance authorized by 
     subsection (a) shall be carried out in accordance with the 
     provisions of the Land Exchange Agreement between the United 
     States and the Memphis and Shelby County Port Commission, 
     Memphis, Tennessee.
       (d) Determination of Fair Market Value.--The Secretary 
     shall determine the fair market value of the real property to 
     be conveyed under subsection (a) and of the easement to be 
     granted under subsection (b)(1). Such determinations shall be 
     final.
       (e) Use of Proceeds.--The Secretary shall deposit any 
     proceeds received under subsection (b)(2) as consideration 
     for the conveyance of real property authorized under 
     subsection (a) in the special account established pursuant to 
     section 204(h)(2) of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 485(h)(2)).
       (f) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) and the easement to be granted under 
     subsection (b)(1) shall be determined by a survey 
     satisfactory to the Secretary. The cost of the survey shall 
     be borne by the Port.
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance authorized by subsection (a) and the 
     easement granted under subsection (b)(1) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2870. LAND CONVEYANCE, NAVY PROPERTY, FORT SHERIDAN, 
                   ILLINOIS.

       (a) Conveyance Authorized.--Subject to subsection (b), the 
     Secretary of the Navy may convey to any transferee selected 
     under subsection (i) all right, title, and interest of the 
     United States in and to a parcel of real property (including 
     any improvements thereon) at Fort Sheridan, Illinois, 
     consisting of approximately 182 acres and comprising the Navy 
     housing areas at Fort Sheridan.
       (b) Requirement for Federal Screening of Property.--The 
     Secretary may not carry out the conveyance of property 
     authorized by subsection (a) unless the Secretary determines 
     that no department or agency of the Federal Government will 
     accept the transfer of the property.
       (c) Consideration.--(1) As consideration for the conveyance 
     under subsection (a), the transferee selected under 
     subsection (i) shall--
       (A) convey to the United States a parcel of real property 
     that meets the requirements of subsection (d);
       (B) design for and construct on the property conveyed under 
     subparagraph (A) such housing facilities (including support 
     facilities and infrastructure) to replace the housing 
     facilities conveyed pursuant to the authority in subsection 
     (a) as the Secretary considers appropriate;
       (C) pay the cost of relocating members of the Armed Forces 
     residing in the housing facilities located on the real 
     property conveyed pursuant to the authority in subsection (a) 
     to the housing facilities constructed under subparagraph (B);
       (D) provide for the education of dependents of such members 
     under subsection (e); and
       (E) carry out such activities for the operation, 
     maintenance, and improvement of the facilities constructed 
     under subparagraph (B) as the Secretary and the transferee 
     jointly determine appropriate.
       (2) The Secretary shall ensure that the fair market value 
     of the consideration provided by the transferee under 
     paragraph (1) is not less than the fair market value of the 
     property interest conveyed by the Secretary under subsection 
     (a).
       (d) Requirements Relating to Property To Be Conveyed to 
     United States.--The property interest conveyed to the United 
     States under subsection (c)(1)(A) by the transferee selected 
     under subsection (i) shall--
       (1) be located not more than 25 miles from the Great Lakes 
     Naval Training Center, Illinois;
       (2) be located in a neighborhood or area having social and 
     economic conditions similar to the social and economic 
     conditions of the area in which Fort Sheridan is located; and
       (3) be acceptable to the Secretary.
       (e) Education of Dependents of Members of the Armed 
     Forces.--In providing for the education of dependents of 
     members of the Armed Forces under subsection (c)(1)(D), the 
     transferee selected under subsection (i) shall ensure that 
     such dependents may enroll at the schools of one or more 
     school districts in the vicinity of the real property 
     conveyed to the United States under subsection (c)(1)(A) 
     which schools and districts--
       (1) meet such standards for schools and schools districts 
     as the Secretary shall establish; and
       (2) will continue to meet such standards after the 
     enrollment of such dependents regardless of the receipt by 
     such school districts of Federal impact aid.
       (f) Interim Relocation of Members of the Armed Forces.--
     Pending completion of the construction of all the housing 
     facilities proposed to be constructed under subsection 
     (c)(1)(B) by the transferee selected under subsection (i), 
     the Secretary may relocate--
       (1) members of the Armed Forces residing in housing 
     facilities located on the property to be conveyed pursuant to 
     the authority in subsection (a) to the housing facilities 
     that have been constructed by the transferee under such 
     subsection (c)(1)(B); and
       (2) other Government tenants located on such property to 
     other facilities.
       (g) Applicability of Certain Agreements.--The property 
     conveyed by the Secretary pursuant to the authority in 
     subsection (a) shall be subject to the Memorandum of 
     Understanding concerning the Transfer of Certain Properties 
     at Fort Sheridan, Illinois, dated August 8, 1991, between the 
     Department of the Army and the Department of the Navy.
       (h) Determination of Fair Market Value.--The Secretary 
     shall determine the fair market value of the real property 
     interest to be conveyed under subsection (a) and of the 
     consideration to be provided under subsection (c)(1). Such 
     determination shall be final.
       (i) Selection of Transferee.--(1) The Secretary shall use 
     competitive procedures for the selection of a transferee 
     under subsection (a).
       (2) In evaluating the offers of prospective transferees, 
     the Secretary shall--
       (A) consider such criteria as the Secretary considers to be 
     appropriate to determine whether prospective transferees will 
     be able to satisfy the consideration requirements specified 
     in subsection (c)(1); and
       (B) consult with the communities and jurisdictions in the 
     vicinity of Fort Sheridan (including the City of Lake Forest, 
     the City of Highwood, and the City of Highland Park and the 
     County of Lake, Illinois) in order to determine the most 
     appropriate use of the property to be conveyed.
       (j) Descriptions of Property.--The exact acreage and legal 
     descriptions of the real property to be conveyed by the 
     Secretary under subsection (a) and the real property to be 
     conveyed under subsection (c)(1)(A) shall be determined by a 
     survey satisfactory to the Secretary. The cost of the survey 
     shall be borne by the transferee selected under subsection 
     (i).
       (k) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2871. LAND CONVEYANCE, NAVAL COMMUNICATIONS STATION, 
                   STOCKTON, CALIFORNIA.

       (a) Conveyance Authorized.--Subject to subsection (b), the 
     Secretrary of the Navy may convey to the Port of Stockton, 
     California (in this section referred to as the ``Port''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including any improvements thereon, 
     consisting of approximately 1,450 acres at the Naval 
     Communication Station, Stockton, California.
       (b) Requirement for Federal Screening of Property.--The 
     Secretary may not carry out the conveyance of property 
     authorized by subsection (a) unless the Secretary determines 
     that no department or agency of the Federal Government will 
     accept the transfer of the property.
       (c) Interim Lease.--Until such time as the real property 
     described in subsection (a) is conveyed by deed, the 
     Secretary may lease the property, along with improvements 
     thereon, to the Port under terms and conditions satisfactory 
     to the Secretary.
       (d) Consideration.--The conveyance may be made as a public 
     benefit conveyance for port development as defined in section 
     203 of the Federal Property and Administrative Services Act 
     of 1949 (40 U.S.C. 484) if the Port satisfies the criteria in 
     such section and the regulations prescribed to implement such 
     section. If the Port fails to qualify for a public benefit 
     conveyance and still desires to acquire the property, the 
     Port shall pay to the United States an amount equal to the 
     fair market value of the property to be conveyed, as 
     determined by the Secretary.
       (e) Federal Lease of Conveyed Property.--As a condition for 
     transfer of this property under subparagraph (a), the 
     Secretary may require that the Port lease to the Department 
     of Defense or any other Federal agency all or any part of the 
     property being used by the Federal Government at the time of 
     conveyance. Any such lease shall be made under the same terms 
     and conditions as in force at the time of the conveyance. 
     Such terms and conditions will continue to include payment to 
     the Port for maintenance of facilities leased to the Federal 
     Government. Such maintenance of the Federal premises shall be 
     to the reasonable satisfaction of the United States, or as 
     required by all applicable Federal, State, and local laws 
     and ordinances.
       (f) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the Port.
       (g) Additional Terms.--The Secretary may require such 
     additional terms and conditions in connection with the 
     conveyance under subsection (a) or the lease under subsection 
     (c) as the Secretary considers appropriate to protect the 
     interests of the United States.

     SEC. 2872. LEASE OF PROPERTY, NAVAL AIR STATION AND MARINE 
                   CORPS AIR STATION, MIRAMAR, CALIFORNIA.

       (a) Lease Authorized.--Notwithstanding section 2692(a)(1) 
     of title 10, United States 

[[Page H467]]
     Code, the Secretary of the Navy may lease to the City of San Diego, 
     California (in this subsection referred to as the ``City''), 
     the parcel of real property, including improvements thereon, 
     described in subsection (b) in order to permit the City to 
     carry out activities on the parcel relating to solid waste 
     management, including the operation and maintenance of one or 
     more solid waste landfills. Pursuant to the lease, the 
     Secretary may authorize the City to construct and operate on 
     the parcel facilities related to solid waste management, 
     including a sludge processing facility.
       (b) Covered Property.--The parcel of property to be leased 
     under subsection (a) is a parcel of real property consisting 
     of approximately 1,400 acres that is located at Naval Air 
     Station, Miramar, California, or Marine Corps Air Station, 
     Miramar, Cali- fornia.
       (c) Lease Term.--The lease authorized under subsection (a) 
     shall be for an initial term of not more than 50 years. Under 
     the lease, the Secretary may provide the City with an option 
     to extend the lease for such number of additional periods of 
     such length as the Secretary considers appropriate.
       (d) Form of Consideration.--The Secretary may provide in 
     the lease under subsection (a) for the provision by the City 
     of in-kind consideration under the lease.
       (e) Use of Money Rentals.--In such amounts as are provided 
     in advance in appropriation Acts, the Secretary may use money 
     rentals received by the Secretary under the lease authorized 
     under subsection (a) to carry out the following programs at 
     Department of the Navy installations that utilize the solid 
     waste landfill or landfills located on the leased property:
       (1) Environmental programs, including natural resource 
     management programs, recycling programs, and pollution 
     prevention programs.
       (2) Programs to improve the quality of military life, 
     including programs to improve military unaccompanied housing 
     and military family housing.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the lease under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
       (g) Definitions.--In this section, the terms ``sludge'', 
     ``solid waste'', and ``solid waste management'' have the 
     meanings given such terms in paragraphs (26A), (27), and 
     (28), respectively, of section 1004 of the Solid Waste 
     Disposal Act (42 U.S.C. 6903).

                    PART III--AIR FORCE CONVEYANCES

     SEC. 2874. LAND ACQUISITION OR EXCHANGE, SHAW AIR FORCE BASE, 
                   SOUTH CAROLINA.

       (a) Land Acquisition.--By means of an exchange of property, 
     acceptance as a gift, or other means that do not require the 
     use of appropriated funds, the Secretary of the Air Force may 
     acquire all right, title, and interest in and to a parcel of 
     real property (together with any improvements thereon) 
     consisting of approximately 1,100 acres and located adjacent 
     to the eastern end of Shaw Air Force Base, South Carolina, 
     and extending to Stamey Livestock Road in Sumter County, 
     South Carolina.
       (b) Land Exchange Authorized.--For purposes of acquiring 
     the real property described in subsection (a), the Secretary 
     may participate in a land exchange and convey all right, 
     title, and interest of the United States in and to a parcel 
     of real property in the possession of the Air Force if--
       (1) the Secretary determines that the land exchange is in 
     the best interests of the Air Force; and
       (2) the fair market value of the parcel to be conveyed by 
     the Secretary does not exceed the fair market value of the 
     parcel to be acquired by the Secretary.
       (c) Determinations of Fair Market Value.--The Secretary 
     shall determine the fair market value of the parcels of real 
     property to be exchanged, accepted, or otherwise acquired 
     pursuant to subsection (a) and exchanged pursuant to 
     subsection (b). Such determinations shall be final.
       (d) Reversion of Gift Conveyance.--If the Secretary 
     acquires the real property described in subsection (a) by way 
     of gift, the Secretary may accept in the deed of conveyance 
     terms or conditions that require that the land be reconveyed 
     to the donor, or the heirs of the donor, if Shaw Air Force 
     Base ceases operations and is closed.
       (e) Descriptions of Property.--The exact acreage and legal 
     descriptions of the parcels of real property to be to be 
     exchanged, accepted, or otherwise acquired pursuant to 
     subsection (a) and exchanged pursuant to subsection (b) shall 
     be determined by a survey satisfactory to the Secretary.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the acquisition under subsection (a) or conveyance under 
     subsection (b) as the Secretary considers appropriate to 
     protect the interests of the United States.

     SEC. 2875. LAND CONVEYANCE, ELMENDORF AIR FORCE BASE, ALASKA.

       (a) Conveyance to Private Person Authorized.--The Secretary 
     of the Air Force may convey to such private person as the 
     Secretary considers appropriate, all right, title, and 
     interest of the United States in and to a parcel of real 
     property consisting of approximately 31.69 acres that is 
     located at Elmendorf Air Force Base, Alaska, and 
     identified in land lease W-95-507-ENG-58.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the purchaser shall pay to the United 
     States an amount equal to the fair market value of the real 
     property to be conveyed, as determined by the Secretary. In 
     determining the fair market value of the real property, the 
     Secretary shall consider the property as encumbered by land 
     lease W-95-507-ENG-58, with an expiration date of June 13, 
     2024.
       (c) Condition of Conveyance.--The conveyance authorized by 
     subsection (a) shall be subject to the condition that the 
     purchaser of the property--
       (1) permit the lease of the apartment complex located on 
     the property by members of the Armed Forces stationed at 
     Elmendorf Air Force Base and their dependents; and
       (2) maintain the apartment complex in a condition suitable 
     for such leases.
       (d) Deposit of Proceeds.--The Secretary shall deposit the 
     amount received from the purchaser under subsection (b) in 
     the special account established under section 204(h)(2) of 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 485(h)(2)).
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the purchaser of the real property.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2876. LAND CONVEYANCE, RADAR BOMB SCORING SITE, FORSYTH, 
                   MONTANA.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to the City of Forsyth, 
     Montana (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to the 
     parcel of property (including any improvements thereon) 
     consisting of approximately 58 acres located in Forsyth, 
     Montana, which has served as a support complex and 
     recreational facilities for the Radar Bomb Scoring Site, 
     Forsyth, Montana.
       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     City--
       (1) utilize the property and recreational facilities 
     conveyed under that subsection for housing and recreation 
     purposes; or
       (2) enter into an agreement with an appropriate public or 
     private entity to lease such property and facilities to that 
     entity for such purposes.
       (c) Reversion.--If the Secretary determines at any time 
     that the property conveyed under subsection (a) is not being 
     utilized in accordance with paragraph (1) or paragraph (2) of 
     subsection (b), all right, title, and interest in and to the 
     conveyed property, including any improvements thereon, shall 
     revert to the United States and the United States shall have 
     the right of immediate entry onto the property.
       (d) Description of Property.--The exact acreage and legal 
     description of the property conveyed under this section shall 
     be determined by a survey satisfactory to the Secretary. The 
     cost of the survey shall be borne by the City.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under this section as the Secretary 
     determines appropriate to protect the interests of the United 
     States.

     SEC. 2877. LAND CONVEYANCE, RADAR BOMB SCORING SITE, POWELL, 
                   WYOMING.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to the Northwest College 
     Board of Trustees (in this section referred to as the 
     ``Board''), all right, title, and interest of the United 
     States in and to a parcel of real property (including any 
     improvements thereon) consisting of approximately 24 acres 
     located in Powell, Wyoming, which has served as the location 
     of a support complex, recreational facilities, and housing 
     facilities for the Radar Bomb Scoring Site, Powell, Wyoming.
       (b) Condition of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the condition that 
     the Board use the property conveyed under that subsection for 
     housing and recreation purposes and for such other purposes 
     as the Secretary and the Board jointly determine appropriate.
       (c) Reversionary Interest.--During the five-year period 
     beginning on the date that the Secretary makes the conveyance 
     authorized under subsection (a), if the Secretary determines 
     that the conveyed property is not being used in accordance 
     with subsection (b), all right, title, and interest in and to 
     the conveyed property, including any improvements thereon, 
     shall revert to the United States and the United States shall 
     have the right of immediate entry onto the property.
       (d) Description of Property.--The exact acreage and legal 
     description of the property conveyed under this section shall 
     be determined by a survey satisfactory to the Secretary. The 
     cost of the survey shall be borne by the Board.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
     
[[Page H468]]


     SEC. 2878. LAND CONVEYANCE, AVON PARK AIR FORCE RANGE, 
                   FLORIDA.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to Highlands County, 
     Florida (in this section referred to as the ``County''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, together with any improvements 
     thereon, located within the boundaries of the Avon Park Air 
     Force Range near Sebring, Florida, which has previously 
     served as the location of a support complex and recreational 
     facilities for the Avon Park Air Force Range.
       (b) Condition of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the condition that 
     the County, directly or through an agreement with an 
     appropriate public or private entity, use the conveyed 
     property, including the support complex and recreational 
     facilities, for operation of a juvenile or other correctional 
     facility.
       (c) Reversionary Interest.--If the Secretary determines at 
     any time that the property conveyed under subsection (a) is 
     not being used in accordance with subsection (b), all right, 
     title, and interest in the property, including any 
     improvements thereon, shall revert to the United States, and 
     the United States shall have the right of immediate entry 
     onto the property.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the County.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
            Subtitle E--Land Conveyances Involving Utilities

     SEC. 2881. CONVEYANCE OF RESOURCE RECOVERY FACILITY, FORT 
                   DIX, NEW JERSEY.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to Burlington County, New Jersey (in this section 
     referred to as the ``County''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property at Fort Dix, New Jersey, consisting of approximately 
     six acres and containing a resource recovery facility, known 
     as the Fort Dix resource recovery facility.
       (b) Related Easements.--The Secretary may grant to the 
     County any easement that is necessary for access to and 
     operation of the resource recovery facility conveyed under 
     subsection (a).
       (c) Requirement Relating to Conveyance.--The Secretary may 
     not carry out the conveyance of the resource recovery 
     facility authorized by subsection (a) unless the County 
     agrees to accept the facility in its existing condition at 
     the time of the conveyance.
       (d) Conditions on Conveyance.--The conveyance of the 
     resource recovery facility authorized by subsection (a) is 
     subject to the following conditions:
       (1) That the County provide refuse and steam service to 
     Fort Dix, New Jersey, at the rate established by the 
     appropriate Federal or State regulatory authority.
       (2) That the County comply with all applicable 
     environmental laws and regulations (including any permit or 
     license requirements) relating to the resource recovery 
     facility.
       (3) That the County assume full responsibility for 
     ownership, operation, maintenance, repair, and all regulatory 
     compliance requirements for the resource recovery facility.
       (4) That the County not commence any expansion of the 
     resource recovery facility without approval of such expansion 
     by the Secretary.
       (e) Description of the Property.--The exact acreage and 
     legal description of the real property to be conveyed under 
     subsection (a), and of any easements to be granted under 
     subsection (b), shall be determined by a survey satisfactory 
     to the Secretary. The cost of such survey shall be borne by 
     the County.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) and the grant of any 
     easement under subsection (b) as the Secretary considers 
     appropriate to protect the interests of the United States.

     SEC. 2882. CONVEYANCE OF WATER AND WASTEWATER TREATMENT 
                   PLANTS, FORT GORDON, GEORGIA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the city of Augusta, Georgia (in this section 
     referred to as the ``City''), all right, title, and interest 
     of the United States to several parcels of real property 
     located at Fort Gordon, Georgia, and consisting of 
     approximately seven acres each. The parcels are improved with 
     a water filtration plant, water distribution system with 
     storage tanks, sewage treatment plant, and sewage collection 
     system.
       (b) Related Easements.--The Secretary may grant to the City 
     any easement that is necessary for access to the real 
     property conveyed under subsection (a) and operation of the 
     water and wastewater treatment plants and distribution and 
     collection systems conveyed under subsection (a).
       (c) Requirement Relating to Conveyance.--The Secretary may 
     not carry out the conveyance of the water and wastewater 
     treatment plants and distribution and collection systems 
     authorized by subsection (a) unless the City agrees to accept 
     the water and wastewater treatment plants and distribution 
     and collection systems in their existing condition at the 
     time of the conveyance.
       (d) Conditions on Conveyance.--The conveyance authorized by 
     subsection (a) is subject to the following conditions:
       (1) That the City provide water and sewer service to Fort 
     Gordon, Georgia, at a rate established by the appropriate 
     Federal or State regulatory authority.
       (2) That the City comply with all applicable environmental 
     laws and regulations (including any permit or license 
     requirements) regarding the real property conveyed under 
     subsec- tion (a).
       (3) That the City assume full responsibility for ownership, 
     operation, maintenance, repair, and all regulatory compliance 
     requirements for the water and wastewater treatment plants 
     and distribution and collection systems.
       (4) That the City not commence any expansion of the water 
     and wastewater treatment plants and distribution and 
     collection systems without approval of such expansion by the 
     Secretary.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a), and of any easements granted under subsection 
     (b), shall be determined by a survey satisfactory to the 
     Secretary. The cost of such survey shall be borne by the 
     City.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) and the grant of any 
     easement under subsection (b) as the Secretary considers 
     appropriate to protect the interests of the United States.

     SEC. 2883. CONVEYANCE OF ELECTRICITY DISTRIBUTION SYSTEM, 
                   FORT IRWIN, CALIFORNIA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the Southern California Edison Company, California 
     (in this section referred to as the ``Company''), all right, 
     title, and interest of the United States in and to the 
     electricity distribution system located at Fort Irwin, 
     California.
       (b) Description of System and Conveyance.--The electricity 
     distribution system authorized to be conveyed under 
     subsection (a) consists of approximately 115 miles of 
     electricity distribution lines (including poles, switches, 
     reclosers, transformers, regulators, switchgears, and service 
     lines) and includes the equipment, fixtures, structures, and 
     other improvements the Federal Government utilizes to provide 
     electricity services at Fort Irwin. The system does not 
     include any real property.
       (c) Related Easements.--The Secretary may grant to the 
     Company any easement that is necessary for access to and 
     operation of the electricity distribution system conveyed 
     under subsection (a).
       (d) Requirement Relating to Conveyance.--The Secretary may 
     not carry out the electricity distribution system authorized 
     by subsection (a) unless the Company agrees to accept the 
     electricity distribution system in its existing condition at 
     the time of the conveyance.
       (e) Conditions on Conveyance.--The conveyance authorized by 
     subsection (a) is subject to the following conditions:
       (1) That the Company provide electricity service to Fort 
     Irwin, California, at a rate established by the appropriate 
     Federal or State regulatory authority.
       (2) That the Company comply with all applicable 
     environmental laws and regulations (including any permit or 
     license requirements) regarding the electricity distribution 
     system.
       (3) That the Company assume full responsibility for 
     ownership, operation, maintenance, repair, and all regulatory 
     compliance requirements for the electricity distribution 
     system.
       (4) That the Company not commence any expansion of the 
     electricity distribution system without approval of such 
     expansion by the Secretary.
       (f) Description of Easement.--The exact acreage and legal 
     description of any easement granted under subsection (c) 
     shall be determined by a survey satisfactory to the 
     Secretary. The cost of such survey shall be borne by the 
     Company.
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) and the grant of any 
     easement under subsection (c) as the Secretary considers 
     appropriate to protect the interests of the United States.

     SEC. 2884. CONVEYANCE OF WATER TREATMENT PLANT, FORT PICKETT, 
                   VIRGINIA.

       (a) Authority To Convey.--(1) The Secretary of the Army may 
     convey to the Town of Blackstone, Virginia (in this section 
     referred to as the ``Town''), all right, title, and interest 
     of the United States in and to the property described in 
     paragraph (2).
       (2) The property referred to in paragraph (1) is the 
     following property located at Fort Pickett, Virginia:
       (A) A parcel of real property consisting of approximately 
     10 acres, including a reservoir and improvements thereon, the 
     site of the Fort Pickett water treatment plant.
       (B) Any equipment, fixtures, structures, or other 
     improvements (including any water transmission lines, water 
     distribution and service lines, fire hydrants, water pumping 

[[Page H469]]
     stations, and other improvements) not located on the parcel described 
     in subparagraph (A) that are jointly identified by the 
     Secretary and the Town as owned and utilized by the Federal 
     Government in order to provide water to and distribute water 
     at Fort Pickett.
       (b) Related Easements.--The Secretary may grant to the Town 
     the following easements relating to the conveyance of the 
     property authorized by subsection (a):
       (1) Such easements, if any, as the Secretary and the Town 
     jointly determine are necessary in order to provide access to 
     the water distribution system referred to in paragraph (2) of 
     such subsection for maintenance, safety, and other purposes.
       (2) Such easements, if any, as the Secretary and the Town 
     jointly determine are necessary in order to provide access to 
     the finished water lines from the system to the Town.
       (3) Such rights of way appurtenant, if any, as the 
     Secretary and the Town jointly determine are necessary in 
     order to satisfy requirements imposed by any Federal, State, 
     or municipal agency relating to the maintenance of a buffer 
     zone around the water distribution system.
       (c) Water Rights.--The Secretary shall grant to the Town as 
     part of the conveyance under subsection (a) all right, title, 
     and interest of the United States in and to any water of the 
     Nottoway River, Virginia, that is connected with the 
     reservoir referred to in paragraph (2)(A) of such subsection. 
     The grant of such water rights shall not impair the right 
     that any other local jurisidiction may have to withdraw water 
     from the Nottoway River, on or after the date of the 
     enactment of this Act, pursuant to the law of the 
     Commonwealth of Virginia.
       (d) Requirements Relating to Conveyance.--(1) The Secretary 
     may not carry out the conveyance of the water distribution 
     system authorized under subsection (a) unless the Town agrees 
     to accept the system in its existing condition at the time of 
     the conveyance.
       (2) The Secretary shall complete any environmental removal 
     or remediation required under the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601 et seq.) with respect to the system to be conveyed under 
     this section before carrying out the conveyance.
       (e) Conditions on Conveyance.--The conveyance authorized in 
     subsection (a) shall be subject to the following conditions:
       (1) That the Town reserve for provision to Fort Pickett, 
     and provide to Fort Pickett on demand, not less than 
     1,500,000 million gallons per day of treated water from the 
     water distribution system.
       (2) That the Town provide water to and distribute water at 
     Fort Pickett at a rate established by the appropriate Federal 
     or State regulatory authority.
       (3) That the Town maintain and operate the water 
     distribution system in compliance with all applicable Federal 
     and State environmental laws and regulations (including any 
     permit and license requirements).
       (f) Description of Property.--The exact legal description 
     of the property to be conveyed under subsection (a), of any 
     easements granted under subsection (b), and of any water 
     rights granted under subsection (c) shall be determined by a 
     survey and other means satisfactory to the Secretary. The 
     cost of any survey or other services performed at the 
     direction of the Secretary under the authority in the 
     preceding sentence shall be borne by the Town.
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance authorized under subsection (a), the 
     easements granted under subsection (b), and the water rights 
     granted under subsection (c) that the Secretary considers 
     appropriate to protect the interests of the United States.
                       Subtitle F--Other Matters

     SEC. 2891. AUTHORITY TO USE FUNDS FOR CERTAIN EDUCATIONAL 
                   PURPOSES.

       Section 2008 of title 10, United States Code, is amended by 
     striking out ``section 10'' and all that follows through the 
     period at the end and inserting in lieu thereof 
     ``construction, as defined in section 8013(3) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7713(3)), or to carry out section 8008 of such Act (20 U.S.C. 
     7708), relating to the provision of assistance to certain 
     school facilities under the impact aid program.''.

     SEC. 2892. DEPARTMENT OF DEFENSE LABORATORY REVITALIZATION 
                   DEMONSTRATION PROGRAM.

       (a) Program Authorized.--The Secretary of Defense may carry 
     out a program (to be known as the ``Department of Defense 
     Laboratory Revitalization Demonstration Program'') for the 
     revitalization of Department of Defense laboratories. Under 
     the program, the Secretary may carry out minor military 
     construction projects in accordance with subsection (b) and 
     other applicable law to improve Department of Defense 
     laboratories covered by the program.
       (b) Increased Maximum Amounts Applicable to Minor 
     Construction Projects.--For purpose of any military 
     construction project carried out under the program--
       (1) the amount provided in the second sentence of 
     subsection (a)(1) of section 2805 of title 10, United States 
     Code, shall be deemed to be $3,000,000;
       (2) the amount provided in subsection (b)(1) of such 
     section shall be deemed to be $1,500,000; and
       (3) the amount provided in subsection (c)(1)(B) of such 
     section shall be deemed to be $1,000,000.
       (c) Program Requirements.--(1) Not later than 30 days 
     before commencing the program, the Secretary shall--
       (A) designate the Department of Defense laboratories at 
     which construction may be carried out under the program; and
       (B) establish procedures for the review and approval of 
     requests from such laboratories to carry out such 
     construction.
       (2) The laboratories designated under paragraph (1)(A) may 
     not include Department of Defense laboratories that are 
     contractor owned.
       (3) The Secretary shall notify Congress of the laboratories 
     designated under paragraph (1)(A).
       (d) Report.--Not later than February 1, 1998, the Secretary 
     shall submit to Congress a report on the program. The report 
     shall include the Secretary's conclusions and recommendations 
     regarding the desirability of extending the authority set 
     forth in subsection (b) to cover all Department of Defense 
     laboratories.
       (e) Exclusivity of Program.--Nothing in this section may be 
     construed to limit any other authority provided by law for 
     any military construction project at a Department of Defense 
     laboratory covered by the program.
       (f) Definitions.--In this section:
       (1) The term ``laboratory'' includes--
       (A) a research, engineering, and development center;
       (B) a test and evaluation activity owned, funded, and 
     operated by the Federal Government through the Department of 
     Defense; and
       (C) a supporting facility of a laboratory.
       (2) The term ``supporting facility'', with respect to a 
     laboratory, means any building or structure that is used in 
     support of research, development, test, and evaluation at the 
     laboratory.
       (g) Expiration of Authority.--The Secretary may not 
     commence a construction project under the program after 
     September 30, 1998.

     SEC. 2893. AUTHORITY FOR PORT AUTHORITY OF STATE OF 
                   MISSISSIPPI TO USE NAVY PROPERTY AT NAVAL 
                   CONSTRUCTION BATTALION CENTER, GULFPORT, 
                   MISSISSIPPI.

       (a) Joint Use Agreement Authorized.--The Secretary of the 
     Navy may enter into an agreement with the Port Authority of 
     the State of Mississippi (in this section referred to as the 
     ``Port Authority''), under which the Port Authority may use 
     real property comprising up to 50 acres located at the Naval 
     Construction Battalion Center, Gulfport, Mississippi (in this 
     section referred to as the ``Center'').
       (b) Term of Agreement.--The agreement authorized under 
     subsection (a) may be for an initial period of not more than 
     15 years. Under the agreement, the Secretary shall provide 
     the Port Authority with an option to extend the agreement for 
     at least three additional periods of five years each.
       (c) Conditions on Use.--The agreement authorized under 
     subsection (a) shall require the Port Authority--
       (1) to suspend operations under the agreement in the event 
     Navy contingency operations are conducted at the Center; and
       (2) to use the property covered by the agreement in a 
     manner consistent with Navy operations conducted at the 
     Center.
       (d) Consideration.--(1) As consideration for the use of the 
     property covered by the agreement under subsection (a), the 
     Port Authority shall pay to the Navy an amount equal to the 
     fair market rental value of the property, as determined by 
     the Secretary taking into consideration the Port Authority's 
     use of the property.
       (2) The Secretary may include a provision in the agreement 
     requiring the Port Authority--
       (A) to pay the Navy an amount (as determined by the 
     Secretary) to cover the costs of replacing at the Center any 
     facilities vacated by the Navy on account of the agreement or 
     to construct suitable replacement facilities for the Navy; 
     and
       (B) to pay the Navy an amount (as determined by the 
     Secretary) for the costs of relocating Navy operations from 
     the vacated facilities to the replacement facilities.
       (e) Congressional Notification.--The Secretary may not 
     enter into the agreement authorized by subsection (a) until 
     the end of the 21-day period beginning on the date on which 
     the Secretary submits to Congress a report containing an 
     explanation of the terms of the proposed agreement and a 
     description of the consideration that the Secretary expects 
     to receive under the agreement.
       (f) Use of Payment.--(1) In such amounts as are provided in 
     advance in appropriation Acts, the Secretary may use amounts 
     paid under subsection (d)(1) to pay for general supervision, 
     administration, and overhead expenses and for improvement, 
     maintenance, repair, construction, or restoration of the 
     roads, railways, and facilities serving the Center.
       (2) In such amounts as are provided in advance in 
     appropriation Acts, the Secretary may use amounts paid under 
     subsection (d)(2) to pay for constructing new facilities, or 
     making modifications to existing facilities, that are 
     necessary to replace facilities vacated by the Navy on 
     account of the agreement under subsection (a) and for 
     relocating operations of the Navy from the vacated facilities 
     to replacement facilities.
     
[[Page H470]]

       (g) Construction by Port Authority.--The Secretary may 
     authorize the Port Authority to demolish existing facilities 
     located on the property covered by the agreement under 
     subsection (a) and, consistent with the restriction specified 
     in subsection (c)(2), construct new facilities on the 
     property for joint use by the Port Authority and the Navy.
       (h) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the agreement authorized under subsection (a) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2894. PROHIBITION ON JOINT USE OF NAVAL AIR STATION AND 
                   MARINE CORPS AIR STATION, MIRAMAR, CALIFORNIA.

       The Secretary of the Navy may not enter into any agreement 
     that provides for or permits civil aircraft to regularly use 
     Naval Air Station or Marine Corps Air Station, Miramar, 
     California.

     SEC. 2895. REPORT REGARDING ARMY WATER CRAFT SUPPORT 
                   FACILITIES AND ACTIVITIES.

       Not later than February 15, 1996, the Secretary of the Army 
     shall submit to Congress a report setting forth--
       (1) the location, assets, and mission of each Army 
     facility, active or reserve component, that supports water 
     transportation operations;
       (2) an infrastructure inventory and utilization rate of 
     each Army facility supporting water transportation 
     operations;
       (3) options for consolidating these operations to reduce 
     overhead; and
       (4) actions that can be taken to respond affirmatively to 
     requests from the residents of Marcus Hook, Pennsylvania, to 
     close the Army Reserve facility located in Marcus Hook and 
     make the facility available for use by the community.

     SEC. 2896. RESIDUAL VALUE REPORTS.

       (a) Reports Required.--The Secretary of Defense, in 
     coordination with the Director of the Office of Management 
     and Budget, shall submit to the congressional defense 
     committees status reports on the results of residual value 
     negotiations between the United States and Germany. Such 
     status reports shall be submitted within 30 days after the 
     receipt of such reports by the Office of Management and 
     Budget.
       (b) Content of Status Reports.--The status reports required 
     by subsection (a) shall include the following information:
       (1) The estimated residual value of United States capital 
     value and improvements to facilities in Germany that the 
     United States has turned over to Germany.
       (2) The actual value obtained by the United States for each 
     facility or installation turned over to Germany.
       (3) The reasons for any difference between the estimated 
     and actual value obtained.

     SEC. 2897. SENSE OF CONGRESS AND REPORT REGARDING FITZSIMONS 
                   ARMY MEDICAL CENTER, COLORADO.

       (a) Findings.--Congress makes the following findings:
       (1) Fitzsimons Army Medical Center in Aurora, Colorado, was 
     approved for closure in 1995 under the Defense Base Closure 
     and Realignment Act of 1990 (part A of title XXIX of Public 
     Law 101-510; 10 U.S.C. 2687 note).
       (2) The University of Colorado Health Sciences Center and 
     the University of Colorado Hospital Authority are in urgent 
     need of space to maintain their ability to deliver health 
     care to meet the growing demand for their services.
       (3) Reuse of the Fitzsimons Army Medical Center at the 
     earliest opportunity would provide significant benefit to the 
     cities of Aurora, Colorado, and Denver, Colorado.
       (4) Reuse of the Fitzsimons Army Medical Center by the 
     communities in the vicinity of the center will ensure that 
     the center is fully utilized, thereby providing a benefit to 
     such communities.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) determinations as to the use by other departments and 
     agencies of the Federal Government of buildings and property 
     at military installations approved for closure under the 
     Defense Base Closure and Realignment Act of 1990, including 
     Fitzsimons Army Medical Center, Colorado, should be completed 
     as soon as practicable;
       (2) the Secretary of Defense should consider the expedited 
     transfer of appropriate facilities (including facilities that 
     remain operational) at such installations to the 
     redevelopment authorities for such installations in order to 
     ensure continuity of use of such facilities after the closure 
     of such installations, in particular, the Secretary should 
     consider the expedited transfer of the Fitzsimons Army 
     Medical Center because of the significant preparation 
     underway by the redevelopment authority concerned;
       (3) the Secretary should not enter into leases with 
     redevelopment authorities for facilities at such 
     installations until the Secretary determines that such leases 
     fall within the categorical exclusions established by the 
     Secretary pursuant to the National Environmental Policy Act 
     (42 U.S.C. 4321 et seq.).
       (c) Report.--(1) Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to the congressional defense committees a report on 
     the closure and redevelopment of Fitzsimons Army Medical 
     Center.
       (2) The report shall include the following:
       (A) The results of the determinations as to the use of 
     buildings and property at Fitzsimons Army Medical Center by 
     other departments and agencies of the Federal Government 
     under section 2905(b)(1) of the Defense Base Closure and 
     Realignment Act of 1990.
       (B) A description of any actions taken to expedite such 
     determinations.
       (C) A discussion of any impediments raised as a result of 
     such determinations to the transfer or lease of Fitzsimons 
     Army Medical Center.
       (D) A description of any actions taken by the Secretary to 
     lease Fitzsimons Army Medical Center to the redevelopment 
     authority.
       (E) The results of any environmental reviews under the 
     National Environmental Policy Act in which such a lease would 
     fall into the categorical exclusions established by the 
     Secretary of the Army.
       (F) The results of the environmental baseline survey 
     regarding Fitzsimons Army Medical Center and a finding of 
     suitability or nonsuitability.
 TITLE XXIX--LAND CONVEYANCES INVOLVING JOLIET ARMY AMMUNITION PLANT, 
                                ILLINOIS

     SEC. 2901. SHORT TITLE.

       This title may be cited as the ``Illinois Land Conservation 
     Act of 1995''.

     SEC. 2902. DEFINITIONS.

       For purposes of this title, the following definitions 
     apply:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the United States Environmental Protection 
     Agency.
       (2) Agricultural purposes.--The term ``agricultural 
     purposes'' means the use of land for row crops, pasture, hay, 
     and grazing.
       (3) Arsenal.--The term ``Arsenal'' means the Joliet Army 
     Ammunition Plant located in the State of Illinois.
       (4) Arsenal land use concept.--The term ``Arsenal land use 
     concept'' means the land use proposals that were developed 
     and unanimously approved on May 30, 1995, by the Joliet 
     Arsenal Citizen Planning Commission.
       (5) CERCLA.--The term ``CERCLA'' means the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.).
       (6) Environmental law.--The term ``environmental law'' 
     means all applicable Federal, State, and local laws, 
     regulations, and requirements related to protection of human 
     health, natural and cultural resources, or the environment. 
     Such term includes CERCLA, the Solid Waste Disposal Act (42 
     U.S.C. 6901 et seq.), the Federal Water Pollution Control Act 
     (33 U.S.C. 1251 et seq.), the Clean Air Act (42 U.S.C. 7401 
     et seq.), the Federal Insecticide, Fungicide, and Rodenticide 
     Act (7 U.S.C. 136 et seq.), the Toxic Substances Control Act 
     (15 U.S.C. 2601 et seq.), and the Safe Drinking Water Act (42 
     U.S.C. 300f et seq.).
       (7) Hazardous substance.--The term ``hazardous substance'' 
     has the meaning given such term by section 101(14) of CERCLA 
     (42 U.S.C. 9601(14)).
       (8) MNP.--The term ``MNP'' means the Midewin National 
     Tallgrass Prairie established pursuant to section 2914 and 
     managed as a part of the National Forest System.
       (9) Person.--The term ``person'' has the meaning given such 
     term by section 101(21) of CERCLA (42 U.S.C. 9601(21)).
       (10) Pollutant or contaminant.--The term ``pollutant or 
     contaminant'' has the meaning given such term by section 
     101(33) of CERCLA (42 U.S.C. 9601(33)).
       (11) Release.--The term ``release'' has the meaning given 
     such term by section 101(22) of CERCLA (42 U.S.C. 9601(22)).
       (12) Response action.--The term ``response action'' has the 
     meaning given the term ``response'' by section 101(25) of 
     CERCLA (42 U.S.C. 9601(25)).
   Subtitle A--Conversion of Joliet Army Ammunition Plant to Midewin 
                       National Tallgrass Prairie

     SEC. 2911. PRINCIPLES OF TRANSFER.

       (a) Land Use Plan.--The Congress ratifies in principle the 
     proposals generally identified by the land use plan which was 
     developed by the Joliet Arsenal Citizen Planning Commission 
     and unanimously approved on May 30, 1995.
       (b) Transfer Without Reimbursement.--The area constituting 
     the Midewin National Tallgrass Prairie shall be transferred, 
     without reimbursement, to the Secretary of Agriculture.
       (c) Management of MNP.--Management by the Secretary of 
     Agriculture of those portions of the Arsenal transferred to 
     the Secretary under this title shall be in accordance with 
     sections 2914 and 2915 regarding the Midewin National 
     Tallgrass Prairie.
       (d) Security Measures.--The Secretary of the Army and the 
     Secretary of Agriculture shall each provide and maintain 
     physical and other security measures on such portion of the 
     Arsenal as is under the administrative jurisdiction of such 
     Secretary, unless the Secretary of the Army and the Secretary 
     of Agriculture agree otherwise. Such security measures (which 
     may include fences and natural barriers) shall include 
     measures to prevent members of the public from gaining 
     unauthorized access to such portions of the Arsenal as are 
     under the administrative jurisdiction of such Secretary and 
     that may endanger health or safety.
       (e) Cooperative Agreements.--The Secretary of the Army, the 
     Secretary of Agriculture, and the Administrator are 
     individually and collectively authorized to enter into 
     cooperative agreements and memoranda of understanding among 
     each other and with other affected Federal agencies, State 
     and 

[[Page H471]]
     local governments, private organizations, and corporations to carry out 
     the purposes for which the Midewin National Tallgrass Prairie 
     is established.
       (f) Interim Activities of the Secretary of Agriculture.--
     Prior to transfer and subject to such reasonable terms and 
     conditions as the Secretary of the Army may prescribe, the 
     Secretary of Agriculture may enter upon the Arsenal property 
     for purposes related to planning, resource inventory, fish 
     and wildlife habitat manipulation (which may include 
     prescribed burning), and other such activities consistent 
     with the purposes for which the Midewin National Tallgrass 
     Prairie is established.

     SEC. 2912. TRANSFER OF MANAGEMENT RESPONSIBILITIES AND 
                   JURISDICTION OVER ARSENAL.

       (a) General Rule for Transfer of Jurisdiction.--
       (1) Transfer required subject to response actions.--Subject 
     to subsection (d), not later than 270 days after the date of 
     the enactment of this title, the Secretary of the Army shall 
     transfer, without reimbursement, to the Secretary of 
     Agriculture those portions of the Arsenal that--
       (A) are identified on the map described in subsection 
     (e)(1) as appropriate for transfer under this subsection to 
     the Secretary of Agriculture; and
       (B) the Secretary of the Army and the Administrator concur 
     in finding that all response actions have been taken under 
     CERCLA necessary to protect human health and the environment 
     with respect to any hazardous substance remaining on the 
     property.
       (2) Effect of less than complete transfer.--If the 
     concurrence requirement in paragraph (1)(B) results in the 
     transfer, within such 270-day period, of less than all of the 
     Arsenal property covered by paragraph (1)(A), the Secretary 
     of the Army and the Secretary of Agriculture shall enter into 
     a memorandum of understanding providing for the performance 
     by the Secretary of the Army of the additional response 
     actions necessary to allow fulfillment of the concurrence 
     requirement with respect to such Arsenal property. The 
     memorandum of understanding shall be entered into within 60 
     days of the end of such 270-day period and shall include a 
     schedule for the completion of the additional response 
     actions as soon as practicable. Subject to subsection (d), 
     the Secretary of the Army shall transfer Arsenal property 
     covered by this paragraph to the Secretary of Agriculture as 
     soon as possible after the Secretary of the Army and the 
     Administrator concur that all additional response actions 
     have been taken under CERCLA necessary to protect human 
     health and the environment with respect to any hazardous 
     substance remaining on the property. The Secretary of the 
     Army may make transfers under this paragraph on a parcel-by-
     parcel basis.
       (3) Rule of construction regarding concurrences.--For the 
     purpose of reaching the concurrences required by this 
     subsection and subsection (b), if a response action requires 
     construction and installation of an approved remedial design, 
     the response action shall be considered to have been taken 
     when the construction and installation of the approved 
     remedial design is completed and the remedy is demonstrated 
     to the satisfaction of the Administrator to be operating 
     properly and successfully.
       (b) Special Transfer Requirements for Certain Parcels.--
     Subject to subsection (d), the Secretary of the Army shall 
     transfer, without reimbursement, to the Secretary of 
     Agriculture the Arsenal property known as LAP Area Sites L2, 
     L3, and L5 and Manufacturing Area Site 1. The transfer shall 
     occur as soon as possible after the Secretary of the Army and 
     the Administrator concur that all response actions have been 
     taken under CERCLA necessary to protect human health and the 
     environment with respect to any hazardous substance remaining 
     on the property. The Secretary of the Army may make transfers 
     under this subsection on a parcel-by-parcel basis.
       (c) Documentation of Environmental Condition of Parcels; 
     Assessment of Required Actions Under Other Environmental 
     Laws.--
       (1) Documentation.--The Secretary of the Army and the 
     Administrator shall provide to the Secretary of Agriculture 
     all documentation and information that exists on the date the 
     documentation and information is provided relating to the 
     environmental condition of the Arsenal property proposed for 
     transfer under subsection (a) or (b), including documentation 
     that supports the finding that all response actions have been 
     taken under CERCLA necessary to protect human health and the 
     environment with respect to any hazardous substance remaining 
     on the property.
       (2) Assessment.--The Secretary of the Army shall provide to 
     the Secretary of Agriculture an assessment, based on 
     information in existence at the time the assessment is 
     provided, indicating what further action, if any, is required 
     under any environmental law (other than CERCLA) on the 
     Arsenal property proposed for transfer under subsection (a) 
     or (b).
       (3) Time for submission of documentation and assessment.--
     The documentation and assessments required to be submitted to 
     the Secretary of Agriculture under this subsection shall be 
     submitted--
       (A) in the case of the transfers required by subsection 
     (a), not later than 210 days after the date of the enactment 
     of this title; and
       (B) in the case of the transfers required by subsection 
     (b), not later than 60 days before the earliest date on which 
     the property could be transferred.
       (4) Submission of additional information.--The Secretary of 
     the Army and the Administrator shall have a continuing 
     obligation to provide to the Secretary of Agriculture any 
     additional information regarding the environmental condition 
     of property to be transferred under subsection (a) or (b) as 
     such information becomes available.
       (d) Effect of Environmental Assessment.--
       (1) Authority of secretary of agriculture to decline 
     immediate transfer.--If a parcel of Arsenal property to be 
     transferred under subsection (a) or (b) includes property for 
     which the assessment under subsection (c)(2) concludes 
     further action is required under any environmental law (other 
     than CERCLA), the Secretary of Agriculture may decline 
     immediate transfer of the parcel. With respect to such a 
     parcel, the Secretary of the Army and the Secretary of 
     Agriculture shall enter into a memorandum of understanding 
     providing for the performance by the Secretary of the Army of 
     the required actions identified in the Army assessment. The 
     memorandum of understanding shall be entered into within 90 
     days after the date on which the Secretary of Agriculture 
     declines immediate transfer of the parcel and shall include a 
     schedule for the completion of the required actions as soon 
     as practicable.
       (2) Eventual transfer.--In the case of a parcel of Arsenal 
     property that the Secretary of Agriculture declines immediate 
     transfer under paragraph (1), the Secretary may accept 
     transfer of the parcel at any time after the original finding 
     with respect to the parcel that all response actions have 
     been taken under CERCLA necessary to protect human health and 
     the environment with respect to any hazardous substance 
     remaining on the property. The Secretary of Agriculture 
     shall accept transfer of the parcel as soon as possible 
     after the date on which all required further actions 
     identified in the assessment have been taken and the terms 
     of any memorandum of understanding have been satisfied.
       (e) Identification of Arsenal Property for Transfer.--
       (1) Map of proposed transfers.--The lands subject to 
     transfer to the Secretary of Agriculture under subsections 
     (a) and (b) and section 2916 are depicted on the map dated 
     September 22, 1995, which is on file and available for public 
     inspection at the Office of the Chief of the Forest Service 
     and the Office of the Assistant Secretary of the Army for 
     Installations, Logistics and the Environment.
       (2) Method of effecting transfer.--The Secretary of the 
     Army shall effect the transfer of jurisdiction of Arsenal 
     property under subsections (a) and (b) and section 2916 by 
     publication of notices in the Federal Register. The Secretary 
     of Agriculture shall give prior concurrence to the 
     publication of such notices. Each notice published in the 
     Federal Register shall refer to the parcel being transferred 
     by legal description, references to maps or surveys, or other 
     forms of description mutually acceptable to the Secretary of 
     the Army and the Secretary of Agriculture. The Secretary of 
     the Army shall provide, without reimbursement, to the 
     Secretary of Agriculture copies of all surveys and land title 
     information on lands transferred under this section or 
     section 2916.
       (f) Surveys.--All costs of necessary surveys for the 
     transfer of jurisdiction of Arsenal property from the 
     Secretary of the Army to the Secretary of Agriculture shall 
     be borne by the Secretary of Agriculture.

     SEC. 2913. RESPONSIBILITY AND LIABILITY.

       (a) Continued Liability of Secretary of the Army.--The 
     transfers of Arsenal property under sections 2912 and 2916, 
     and the requirements of such sections, shall not in any way 
     affect the responsibilities and liabilities of the Secretary 
     of the Army specified in this section. The Secretary of the 
     Army shall retain any obligation or other liability at the 
     Arsenal that the Secretary of the Army has under CERCLA or 
     other environmental laws. Following transfer of a portion of 
     the Arsenal under this subtitle, the Secretary of the Army 
     shall be accorded any easement or access to the property that 
     may be reasonably required by the Secretary to carry out the 
     obligation or satisfy the liability.
       (b) Special Protections for Secretary of Agriculture.--The 
     Secretary of Agriculture shall not be liable under any 
     environmental law for matters which are related directly or 
     indirectly to activities of the Secretary of the Army at the 
     Arsenal or any party acting under the authority of the 
     Secretary of the Army at the Arsenal, including any of the 
     following:
       (1) Costs or performance of response actions required under 
     CERCLA at or related to the Arsenal.
       (2) Costs, penalties, fines, or performance of actions 
     related to noncompliance with any environmental law at or 
     related to the Arsenal or related to the presence, release, 
     or threat of release of any hazardous substance, pollutant or 
     contaminant, hazardous waste, or hazardous material of any 
     kind at or related to the Arsenal, including contamination 
     resulting from migration of a hazardous substance, pollutant 
     or contaminant, hazardous waste, hazardous material, or 
     petroleum products or their derivatives.
       (3) Costs or performance of actions necessary to remedy 
     noncompliance or another problem specified in paragraph (2).
     
[[Page H472]]

       (c) Liability of Other Persons.--Nothing in this title 
     shall be construed to effect, modify, amend, repeal, alter, 
     limit or otherwise change, directly or indirectly, the 
     responsibilities or liabilities under any environmental law 
     of any person (including the Secretary of Agriculture), 
     except as provided in subsection (b) with respect to the 
     Secretary of Agriculture.
       (d) Payment of Response Action Costs.--A Federal agency 
     that had or has operations at the Arsenal resulting in the 
     release or threatened release of a hazardous substance or 
     pollutant or contaminant for which that agency would be 
     liable under any environmental law, subject to the provisions 
     of this subtitle, shall pay the costs of related response 
     actions and shall pay the costs of related actions to 
     remediate petroleum products or the derivatives of the 
     products, including motor oil and aviation fuel.
       (e) Consultation.--
       (1) Responsibility of secretary of agriculture.--The 
     Secretary of Agriculture shall consult with the Secretary of 
     the Army with respect to the management by the Secretary of 
     Agriculture of real property included in the Midewin National 
     Tallgrass Prairie subject to any response action or other 
     action at the Arsenal being carried out by or under the 
     authority of the Secretary of the Army under any 
     environmental law. The Secretary of Agriculture shall consult 
     with the Secretary of the Army prior to undertaking any 
     activities on the Midewin National Tallgrass Prairie that may 
     disturb the property to ensure that such activities will not 
     exacerbate contamination problems or interfere with 
     performance by the Secretary of the Army of response actions 
     at the property.
       (2) Responsibility of secretary of the army.--In carrying 
     out response actions at the Arsenal, the Secretary of the 
     Army shall consult with the Secretary of Agriculture to 
     ensure that such actions are carried out in a manner 
     consistent with the purposes for which the Midewin National 
     Tallgrass Prairie is established, as specified in section 
     2914(c), and the other provisions of sections 2914 and 2915.

     SEC. 2914. ESTABLISHMENT AND ADMINISTRATION OF MIDEWIN 
                   NATIONAL TALLGRASS PRAIRIE.

       (a) Establishment.--On the effective date of the initial 
     transfer of jurisdiction of portions of the Arsenal to the 
     Secretary of Agriculture under section 2912(a), the Secretary 
     of Agriculture shall establish the Midewin National Tallgrass 
     Prairie. The MNP shall--
       (1) be administered by the Secretary of Agriculture; and
       (2) consist of the real property so transferred and such 
     other portions of the Arsenal subsequently transferred under 
     section 2912(b) or 2916 or acquired under section 2914(d).
       (b) Administration.--
       (1) In general.--The Secretary of Agriculture shall manage 
     the Midewin National Tallgrass Prairie as a part of the 
     National Forest System in accordance with this title and the 
     laws, rules, and regulations pertaining to the National 
     Forest System, except that the Bankhead-Jones Farm Tenant Act 
     of 1937 (7 U.S.C. 1010-1012) shall not apply to the MNP.
       (2) Initial management activities.--In order to expedite 
     the administration and public use of the Midewin National 
     Tallgrass Prairie, the Secretary of Agriculture may conduct 
     management activities at the MNP to effectuate the purposes 
     for which the MNP is established, as set forth in subsection 
     (c), in advance of the development of a land and resource 
     management plan for the MNP.
       (3) Land and resource management plan.--In developing a 
     land and resource management plan for the Midewin National 
     Tallgrass Prairie, the Secretary of Agriculture shall consult 
     with the Illinois Department of Natural Resources and local 
     governments adjacent to the MNP and provide an opportunity 
     for public comment. Any parcel transferred to the Secretary 
     of Agriculture under this title after the development of a 
     land and resource management plan for the MNP may be managed 
     in accordance with such plan without need for an amendment to 
     the plan.
       (c) Purposes of the Midewin National Tallgrass Prairie.--
     The Midewin National Tallgrass Prairie is established to be 
     managed for National Forest System purposes, including the 
     following:
       (1) To manage the land and water resources of the MNP in a 
     manner that will conserve and enhance the native populations 
     and habitats of fish, wildlife, and plants.
       (2) To provide opportunities for scientific, environmental, 
     and land use education and research.
       (3) To allow the continuation of agricultural uses of lands 
     within the MNP consistent with section 2915(b).
       (4) To provide a variety of recreation opportunities that 
     are not inconsistent with the preceding purposes.
       (d) Other Land Acquisition for MNP.--
       (1) Availability of land acquisition funds.--
     Notwithstanding section 7 of the Land and Water Conservation 
     Fund Act of 1965 (16 U.S.C. 460l-9), the Secretary of 
     Agriculture may use monies appropriated from the Land and 
     Water Conservation Fund established under section 2 of such 
     Act (16 U.S.C. 460l-5) for the acquisition of lands and 
     interests in land for inclusion in the Midewin National 
     Tallgrass Prairie.
       (2) Acquisition of lands.--The Secretary of Agriculture may 
     acquire lands or interests therein for inclusion in the 
     Midewin National Tallgrass Prairie by donation, purchase, or 
     exchange, except that the acquisition of private lands for 
     inclusion in the MNP shall be on a willing seller basis only.
       (e) Cooperation With States, Local Governments and Other 
     Entities.--In the management of the Midewin National 
     Tallgrass Prairie, the Secretary of Agriculture is authorized 
     and encouraged to cooperate with appropriate Federal, State 
     and local governmental agencies, private organizations and 
     corporations. Such cooperation may include cooperative 
     agreements as well as the exercise of the existing 
     authorities of the Secretary under the Cooperative Forestry 
     Assistance Act of 1978 (16 U.S.C. 2101 et seq.) and the 
     Forest and Rangeland Renewable Resources Research Act of 1978 
     (16 U.S.C. 1641 et seq.). The objects of such cooperation may 
     include public education, land and resource protection, and 
     cooperative management among government, corporate, and 
     private landowners in a manner which furthers the purposes 
     for which the Midewin National Tallgrass Prairie is 
     established.

     SEC. 2915. SPECIAL MANAGEMENT REQUIREMENTS FOR MIDEWIN 
                   NATIONAL TALLGRASS PRAIRIE.

       (a) Prohibition Against the Construction of New Through 
     Roads.--No new construction of any highway, public road, or 
     any part of the interstate system, whether Federal, State, or 
     local, shall be permitted through or across any portion of 
     the Midewin National Tallgrass Prairie. Nothing in this title 
     shall preclude construction and maintenance of roads for use 
     within the MNP, the granting of authorizations for utility 
     rights-of-way under applicable Federal law, or such access as 
     is necessary. Nothing in this title shall preclude necessary 
     access by the Secretary of the Army for purposes of 
     restoration and cleanup as provided in this title.
       (b) Agricultural Leases and Special Use Authorizations.--
     Within the Midewin National Tallgrass Prairie, use of the 
     lands for agricultural purposes shall be permitted subject to 
     the following terms and conditions:
       (1) If at the time of transfer of jurisdiction under 
     section 2912 or 2916 there exists any lease issued by the 
     Secretary of the Army or the Secretary of Defense for 
     agricultural purposes upon the parcel transferred, the 
     Secretary of Agriculture shall issue a special use 
     authorization to supersede the lease. The terms of the 
     special use authorization shall be identical in substance to 
     the lease that the special use authorization is superseding, 
     including the expiration date and any payments owed the 
     United States. On issuance of the special use authorization, 
     the lease shall become void.
       (2) In addition to the authority provided in paragraph (1), 
     the Secretary of Agriculture may issue special use 
     authorizations to persons for use of the Midewin National 
     Tallgrass Prairie for agricultural purposes. Special use 
     authorizations issued pursuant to this paragraph shall 
     include terms and conditions as the Secretary of Agriculture 
     may deem appropriate.
       (3) No agricultural special use authorization shall be 
     issued for agricultural purposes which has a term extending 
     beyond the date 20 years from the date of the enactment of 
     this title, except that nothing in this title shall preclude 
     the Secretary of Agriculture from issuing agricultural 
     special use authorizations or grazing permits which are 
     effective after twenty years from the date of enactment of 
     this title for purposes primarily related to erosion control, 
     provision for food and habitat for fish and wildlife, or 
     other resource management activities consistent with the 
     purposes of the Midewin National Tallgrass Prairie.
       (c) Treatment of Rental Fees.--Monies received under a 
     special use authorization issued under subsection (b) shall 
     be subject to distribution to the State of Illinois and 
     affected counties pursuant to the Act of May 23, 1908, and 
     section 13 of the Act of March 1, 1911 (16 U.S.C. 500). All 
     monies not distributed pursuant to such Acts shall be covered 
     into the Treasury and shall constitute a special fund (to be 
     known as the ``MNP Rental Fee Account''). The Secretary of 
     Agriculture may use amounts in the fund, until expended and 
     without fiscal year limitation, to cover the cost to the 
     United States of prairie improvement work at the Midewin 
     National Tallgrass Prairie. Any amounts in the fund that the 
     Secretary of Agriculture determines to be in excess of the 
     cost of doing such work shall be transferred, upon such 
     determination, to miscellaneous receipts, Forest Service 
     Fund, as a National Forest receipt of the fiscal year in 
     which the transfer is made.
       (d) User Fees.--The Secretary of Agriculture is authorized 
     to charge reasonable fees for the admission, occupancy, and 
     use of the Midewin National Tallgrass Prairie and may 
     prescribe a fee schedule providing for reduced or a waiver of 
     fees for persons or groups engaged in authorized activities 
     including those providing volunteer services, research, or 
     education. The Secretary shall permit admission, occupancy, 
     and use at no additional charge for persons possessing a 
     valid Golden Eagle Passport or Golden Age Passport.
       (e) Salvage of Improvements.--The Secretary of Agriculture 
     may sell for salvage value any facilities and improvements 
     which have been transferred to the Secretary pursuant to this 
     title.
       (f) Treatment of User Fees and Salvage Receipts.--Monies 
     collected pursuant to subsections (d) and (e) shall be 
     covered into the Treasury and constitute a special fund (to 
     be known as the ``Midewin National Tallgrass Prairie 
     Restoration Fund''). The Secretary of Agriculture may use 
     amounts 

[[Page H473]]
     in the fund, in such amounts as are provided in advance in 
     appropriation Acts, for restoration and administration of the 
     Midewin National Tallgrass Prairie, including construction of 
     a visitor and education center, restoration of ecosystems, 
     construction of recreational facilities (such as trails), 
     construction of administrative offices, and operation and 
     maintenance of the MNP. The Secretary of Agriculture shall 
     include the MNP among the areas under the jurisdiction of the 
     Secretary selected for inclusion in any cost recovery or any 
     pilot program of the Secretary for the collection, use, and 
     distribution of user fees.

     SEC. 2916. SPECIAL TRANSFER RULES FOR CERTAIN ARSENAL PARCELS 
                   INTENDED FOR MNP.

       (a) Description of Parcels.--The following areas of the 
     Arsenal may be transferred under this section:
       (1) Study Area 2, explosive burning ground.
       (2) Study Area 3, flashing ground.
       (3) Study Area 4, lead azide area.
       (4) Study Area 10, toluene tank farms.
       (5) Study Area 11, landfill.
       (6) Study Area 12, sellite manufacturing area.
       (7) Study Area 14, former pond area.
       (8) Study Area 15, sewage treatment plan.
       (9) Study Area L1, load assemble packing area, group 61.
       (10) Study Area L4, landfill area.
       (11) Study Area L7, group 1.
       (12) Study Area L8, group 2.
       (13) Study Area L9, group 3.
       (14) Study Area L10, group 3A.
       (15) Study Area L14, group 4.
       (16) Study Area L15, group 5.
       (17) Study Area L18, group 8.
       (18) Study Area L19, group 9.
       (19) Study Area L33, PVC area.
       (20) Any other lands proposed for transfer as depicted on 
     the map described in section 2912(e)(1) and not otherwise 
     specifically identified for transfer under this subtitle.
       (b) Information Regarding Environmental Condition of 
     Parcels; Assessment of Required Actions Under Other 
     Environmental Laws.--
       (1) Information.--Not later than 180 days after the date on 
     which the Secretary of the Army and the Administrator concur 
     in finding that, with respect to a parcel of Arsenal property 
     described in subsection (a), all response actions have been 
     taken under CERCLA necessary to protect human health and the 
     environment with respect to any hazardous substance remaining 
     on the parcel, the Secretary of the Army and the 
     Administrator shall provide to the Secretary of Agriculture 
     all information that exists on such date regarding the 
     environmental condition of the parcel and the implementation 
     of any response action, including information regarding the 
     effectiveness of the response action.
       (2) Assessment.--At the same time as information is 
     provided under paragraph (1) with regard to a parcel of 
     Arsenal property described in subsection (a), the Secretary 
     of the Army shall provide to the Secretary of Agriculture an 
     assessment, based on information in existence at the time the 
     assessment is provided, indicating what further action, if 
     any, is required under any environmental law (other than 
     CERCLA) with respect to the parcel.
       (3) Submission of additional information.--The Secretary of 
     the Army and the Administrator shall have a continuing 
     obligation to provide to the Secretary of Agriculture any 
     additional information regarding the environmental condition 
     of a parcel of the Arsenal property described in subsection 
     (a) as such information becomes available.
       (c) Offer of Transfer.--Not later than 180 days after the 
     date on which information is provided under subsection (b)(1) 
     with regard to a parcel of the Arsenal property described in 
     subsection (a), the Secretary of the Army shall offer the 
     Secretary of Agriculture the option of accepting a transfer 
     of the parcel, without reimbursement, to be added to the 
     Midewin National Tallgrass Prairie. The transfer shall be 
     subject to the terms and conditions of this subtitle, 
     including the liability provisions contained in section 2913. 
     The Secretary of Agriculture has the option to accept or 
     decline the offered transfer. The transfer of property under 
     this section may be made on a parcel-by-parcel basis.
       (d) Effect of Environmental Assessment.--
       (1) Authority of secretary of agriculture to decline 
     transfer.--If a parcel of Arsenal property described in 
     subsection (a) includes property for which the assessment 
     under subsection (b)(2) concludes further action is required 
     under any other environmental law, the Secretary of 
     Agriculture may decline any transfer of the parcel. 
     Alternatively, the Secretary of Agriculture may decline 
     immediate transfer of the parcel and enter into a memorandum 
     of understanding with the Secretary of the Army providing for 
     the performance by the Secretary of the Army of the required 
     actions identified in the Army assessment with respect to the 
     parcel. The memorandum of understanding shall be entered into 
     within 90 days, or such later date as the Secretaries may 
     establish, after the date on which the Secretary of 
     Agriculture declines immediate transfer of the parcel and 
     shall include a schedule for the completion of the required 
     actions as soon as practicable.
       (2) Eventual transfer.--The Secretary of Agriculture may 
     accept or decline at any time for any reason the transfer of 
     a parcel covered by this section. However, if the Secretary 
     of Agriculture and the Secretary of the Army enter into a 
     memorandum of understanding under paragraph (1) providing 
     for transfer of the parcel, the Secretary of Agriculture 
     shall accept transfer of the parcel as soon as possible 
     after the date on which all required further actions 
     identified in the assessment have been taken and the 
     requirements of the memorandum of understanding have been 
     satisfied.
       (e) Rule of Construction Regarding Concurrences.--For the 
     purpose of the reaching the concurrence required by 
     subsection (b)(1), if a response action requires construction 
     and installation of an approved remedial design, the response 
     action shall be considered to have been taken when the 
     construction and installation of the approved remedial design 
     is completed and the remedy is demonstrated to the 
     satisfaction of the Administrator to be operating properly 
     and successfully.
       (f) Inclusions and Exceptions.--
       (1) Inclusions.--The parcels of Arsenal property described 
     in subsection (a) shall include all associated inventoried 
     buildings and structures as identified in the Joliet Army 
     Ammunition Plant Plantwide Building and Structures Report and 
     the contaminate study sites for both the manufacturing and 
     load assembly and packing sites of the Arsenal as shown in 
     the Dames and Moore Final Report, Phase 2 Remedial 
     Investigation Manufacturing (MFG) Area Joliet Army Ammunition 
     Plant, Joliet, Illinois (May 30, 1993, Contract No. DAAA15-
     90-D-0015 task order No. 6 prepared for the United States 
     Army Environmental Center).
       (2) Exception.--The parcels described in subsection (a) 
     shall not include the property at the Arsenal designated for 
     transfer or conveyance under subtitle B.
  Subtitle B--Other Land Conveyances Involving Joliet Army Ammunition 
                                 Plant

     SEC. 2921. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR 
                   A NATIONAL CEMETERY.

       (a) Conveyance Authorized.--Subject to section 2931, the 
     Secretary of the Army may transfer, without reimbursement, to 
     the Secretary of Veterans Affairs the parcel of real property 
     at the Arsenal described in subsection (b) for use as a 
     national cemetery operated as part of the National Cemetery 
     System of the Department of Veterans Affairs under chapter 24 
     of title 38, United States Code.
       (b) Description of Property.--The real property authorized 
     to be transferred under subsection (a) is a parcel of real 
     property at the Arsenal consisting of approximately 982 
     acres, the approximate legal description of which includes 
     part of sections 30 and 31, Jackson Township, Township 34 
     North, Range 10 East, and part of sections 25 and 36, 
     Channahon Township, Township 34 North, Range 10 East, Will 
     County, Illinois, as depicted in the Arsenal land use 
     concept.
       (c) Security Measures.--The Secretary of Veterans Affairs 
     shall provide and maintain physical and other security 
     measures on the real property transferred under subsection 
     (a). Such security measures (which may include fences and 
     natural barriers) shall include measures to prevent members 
     of the public from gaining unauthorized access to the portion 
     of the Arsenal that is under the administrative jurisdiction 
     of the Secretary of Veterans Affairs and that may endanger 
     health or safety.
       (d) Surveys.--All costs of necessary surveys for the 
     transfer of jurisdiction of Arsenal properties from the 
     Secretary of the Army to the Secretary of Veterans Affairs 
     shall be borne solely by the Secretary of Veterans Affairs.

     SEC. 2922. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR 
                   A COUNTY LANDFILL.

       (a) Conveyance Authorized.--Subject to section 2931, the 
     Secretary of the Army may convey, without compensation, to 
     Will County, Illinois, all right, title, and interest of 
     the United States in and to the parcel of real property at 
     the Arsenal described in subsection (b), which shall be 
     operated as a landfill by the County.
       (b) Description of Property.--The real property authorized 
     to be conveyed under subsection (a) is a parcel of real 
     property at the Arsenal consisting of approximately 455 
     acres, the approximate legal description of which includes 
     part of sections 8, 9, 16, and 17, Florence Township, 
     Township 33 North, Range 10 East, Will County, Illinois, as 
     depicted in the Arsenal land use concept.
       (c) Condition on Conveyance.--The conveyance shall be 
     subject to the condition that the Department of the Army, the 
     Department of Veterans Affairs, and the Department of 
     Agriculture (or their agents or assigns) may use the landfill 
     established on the real property conveyed under subsection 
     (a) for the disposal of construction debris, refuse, and 
     other materials related to any restoration and cleanup of 
     Arsenal property. Such use shall be subject to applicable 
     environmental laws and at no cost to the Federal Government.
       (d) Reversionary Interest.--If, at the end of the five-year 
     period beginning on the date of the conveyance under 
     subsection (a), the Secretary of Agriculture determines that 
     the conveyed property is not opened for operation as a 
     landfill, then, at the option of the Secretary of 
     Agriculture, all right, title, and interest in and to the 
     property, including improvements thereon, shall revert to the 
     United States. Upon any such reversion, the property shall be 
     included in the Midewin 

[[Page H474]]
     National Tallgrass Prairie. In the event the United States exercises 
     its option to cause the property to revert, the United States 
     shall have the right of immediate entry onto the property.
       (e) Information Regarding Environmental Conditions.--At the 
     request of the Secretary of Agriculture, Will County, the 
     Secretary of the Army, and the Administrator shall provide to 
     the Secretary of Agriculture all information in their 
     possession at the time of the request regarding the 
     environmental condition of the real property to be conveyed 
     under this section. The liability and responsibility of any 
     person under any environmental law shall remain unchanged 
     with respect to the landfill, except as provided in this 
     title, including section 2913.
       (f) Surveys.--All costs of necessary surveys for the 
     conveyance of real property under this section shall be borne 
     by Will County, Illinois.
       (g) Additional Terms and Conditions.--The Secretary of the 
     Army may require such additional terms and conditions in 
     connection with the conveyance under this section as the 
     Secretary of the Army considers appropriate to protect the 
     interests of the United States.

     SEC. 2923. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR 
                   INDUSTRIAL PARKS.

       (a) Conveyance Authorized.--Subject to section 2931, the 
     Secretary of the Army may convey to the State of Illinois, 
     all right, title, and interest of the United States in and to 
     the parcels of real property at the Arsenal described in 
     subsection (b), which shall be used as industrial parks to 
     replace all or a part of the economic activity lost at the 
     Arsenal.
       (b) Description of Property.--The real property at the 
     Arsenal authorized to be transferred under subsection (a) 
     consists of the following parcels:
       (1) A parcel of approximately 1,900 acres, the approximate 
     legal description of which includes part of section 30, 
     Jackson Township, Township 34 North, Range 10 East, and 
     sections or parts of sections 24, 25, 26, 35, and 36, 
     Township 34 North, Range 9 East, in Channahon Township, an 
     area of 9.77 acres around the Des Plaines River Pump Station 
     located in the southeast quarter of section 15, Township 34 
     North, Range 9 East of the Third Principal Meridian, in 
     Channahon Township, and an area of 511 feet by 596 feet 
     around the Kankakee River Pump Station in the Northwest 
     Quarter of section 5, Township 33 North, Range 9 East, east 
     of the Third Principal Meridian in Wilmington Township, 
     containing 6.99 acres, located along the easterly side of the 
     Kankakee Cut-Off in Will County, Illinois, as depicted in the 
     Arsenal land use concept, and the connecting piping to the 
     northern industrial site, as described by the United States 
     Army Report of Availability, dated 13 December 1993.
       (2) A parcel of approximately 1,100 acres, the approximate 
     legal description of which includes part of sections 16, 17, 
     and 18 in Florence Township, Township 33 North, Range 10 
     East, Will County, Illinois, as depicted in the Arsenal land 
     use concept.
       (c) Consideration.--
       (1) Delay in payment of consideration.--After the end of 
     the 20-year period beginning on the date on which the 
     conveyance under subsection (a) is completed, the State of 
     Illinois shall pay to the United States an amount equal to 
     fair market value of the conveyed property as of the time of 
     the conveyance.
       (2) Effect of reconveyance by state.--If the State of 
     Illinois reconveys all or any part of the conveyed property 
     during such 20-year period, the State shall pay to the United 
     States an amount equal to the fair market value of the 
     reconveyed property as of the time of the reconveyance, 
     excluding the value of any improvements made to the property 
     by the State.
       (3) Determination of fair market value.--The Secretary of 
     the Army shall determine fair market value in accordance with 
     Federal appraisal standards and procedures.
       (4) Treatment of leases.--The Secretary of the Army may 
     treat a lease of the property within such 20-year period as a 
     reconveyance if the Secretary determines that the lease is 
     being used to avoid application of paragraph (2).
       (5) Deposit of proceeds.--The Secretary of the Army shall 
     deposit any proceeds received under this subsection in the 
     special account established pursuant to section 204(h)(2) of 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 485(h)(2)).
       (d) Conditions of Conveyance.--
       (1) Redevelopment authority.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     Governor of the State of Illinois, in consultation with the 
     Mayor of the Village of Elwood, Illinois, and the Mayor of 
     the City of Wilmington, Illinois, establish a redevelopment 
     authority to be responsible for overseeing the development of 
     the industrial parks on the conveyed property.
       (2) Time for establishment.--To satisfy the condition 
     specified in paragraph (1), the redevelopment authority shall 
     be established within one year after the date of the 
     enactment of this title.
       (e) Surveys.--All costs of necessary surveys for the 
     conveyance of real property under this section shall be borne 
     by the State of Illinois.
       (f) Additional Terms and Conditions.--The Secretary of the 
     Army may require such additional terms and conditions in 
     connection with the conveyance under this section as the 
     Secretary considers appropriate to protect the interests of 
     the United States.
                  Subtitle C--Miscellaneous Provisions

     SEC. 2931. DEGREE OF ENVIRONMENTAL CLEANUP.

       (a) In General.--Nothing in this title shall be construed 
     to restrict or lessen the degree of cleanup at the Arsenal 
     required to be carried out under provisions of any 
     environmental law.
       (b) Response Action.--The establishment of the Midewin 
     National Tallgrass Prairie under subtitle A and the 
     additional real property transfers or conveyances authorized 
     under subtitle B shall not restrict or lessen in any way any 
     response action or degree of cleanup under CERCLA or other 
     environmental law, or any action required under any 
     environmental law to remediate petroleum products or their 
     derivatives (including motor oil and aviation fuel), required 
     to be carried out under the authority of the Secretary of the 
     Army at the Arsenal and surrounding areas.
       (c) Environmental Quality of Property.--Any contract for 
     sale, deed, or other transfer of real property under subtitle 
     B shall be carried out in compliance with all applicable 
     provisions of section 120(h) of CERCLA and other 
     environmental laws.

     SEC. 2932. RETENTION OF PROPERTY USED FOR ENVIRONMENTAL 
                   CLEANUP.

       (a) Retention of Certain Property.--Unless and until the 
     Arsenal property described in this subsection is actually 
     transferred or conveyed under this title or other applicable 
     law, the Secretary of the Army may retain jurisdiction, 
     authority, and control over real property at the Arsenal to 
     be used for--
       (1) water treatment;
       (2) the treatment, storage, or disposal of any hazardous 
     substance, pollutant or contaminant, hazardous material, or 
     petroleum products or their derivatives;
       (3) other purposes related to any response action at the 
     Arsenal; and
       (4) other actions required at the Arsenal under any 
     environmental law to remediate contamination or conditions of 
     noncompliance with any environmental law.
       (b) Conditions.--The Secretary of the Army shall consult 
     with the Secretary of Agriculture regarding the 
     identification and management of the real property retained 
     under this section and ensure that activities carried out on 
     that property are consistent, to the extent practicable, with 
     the purposes for which the Midewin National Tallgrass Prairie 
     is established, as specified in section 2914(c), and with the 
     other provisions of sections 2914 and 2915.
       (c) Priority of Response Actions.--In the case of any 
     conflict between management of the property by the Secretary 
     of Agriculture and any response action required under CERCLA, 
     or any other action required under any other environmental 
     law, including actions to remediate petroleum products or 
     their derivatives, the response action or other action shall 
     take priority.
 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS
      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS
         Subtitle A--National Security Programs Authorizations

     SEC. 3101. WEAPONS ACTIVITIES.

       (a) Stockpile Stewardship.--Subject to subsection (d), 
     funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1996 for stockpile 
     stewardship in carrying out weapons activities necessary for 
     national security programs in the amount of $1,567,175,000, 
     to be allocated as follows:
       (1) For core stockpile stewardship, $1,159,708,000, to be 
     allocated as follows:
       (A) For operation and maintenance, $1,078,403,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $81,305,000, to be allocated as follows:
       Project 96-D-102, stockpile stewardship facilities 
     revitalization, Phase VI, various locations, $2,520,000.
       Project 96-D-103, ATLAS, Los Alamos National Laboratory, 
     Los Alamos, New Mexico, $8,400,000.
       Project 96-D-104, processing and environmental technology 
     laboratory (PETL), Sandia National Laboratories, Albuquerque, 
     New Mexico, $1,800,000.
       Project 96-D-105, contained firing facility addition, 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $6,600,000.
       Project 95-D-102, Chemical and Metallurgy Research Building 
     upgrades project, Los Alamos National Laboratory, Los Alamos, 
     New Mexico, $9,940,000.
       Project 94-D-102, nuclear weapons research, development, 
     and testing facilities revitalization, Phase V, various 
     locations, $12,200,000.
       Project 93-D-102, Nevada support facility, North Las Vegas, 
     Nevada, $15,650,000.
       Project 90-D-102, nuclear weapons research, development, 
     and testing facilities revitalization, Phase III, various 
     locations, $6,200,000.
       Project 88-D-106, nuclear weapons research, development, 
     and testing facilities revitalization, Phase II, various 
     locations, $17,995,000.
       (2) For inertial fusion, $240,667,000, to be allocated as 
     follows:
     
[[Page H475]]

       (A) For operation and maintenance, $203,267,000.
       (B) For the following plant project (including maintenance, 
     restoration, planning, construction, acquisition, and 
     modification of facilities, and land acquisition related 
     thereto), $37,400,000:
       Project 96-D-111, national ignition facility, location to 
     be determined, $37,400,000.
       (3) For technology transfer and education, $160,000,000.
       (4) For Marshall Islands, $6,800,000.
       (b) Stockpile Management.--Subject to subsection (d), funds 
     are hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1996 for stockpile management in 
     carrying out weapons activities necessary for national 
     security programs in the amount of $2,025,083,000, to be 
     allocated as follows:
       (1) For operation and maintenance, $1,911,458,000.
       (2) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $113,625,000, to be allocated as follows:
       Project 96-D-122, sewage treatment quality upgrade (STQU), 
     Pantex Plant, Amarillo, Texas, $600,000.
       Project 96-D-123, retrofit heating, ventilation, and air 
     conditioning and chillers for ozone protection, Y-12 Plant, 
     Oak Ridge, Tennessee, $3,100,000.
       Project 96-D-125, Washington measurements operations 
     facility, Andrews Air Force Base, Camp Springs, Maryland, 
     $900,000.
       Project 96-D-126, tritium loading line modifications, 
     Savannah River Site, South Carolina, $12,200,000.
       Project 95-D-122, sanitary sewer upgrade, Y-12 Plant, Oak 
     Ridge, Tennessee, $6,300,000.
       Project 94-D-124, hydrogen fluoride supply system, Y-12 
     Plant, Oak Ridge, Tennessee, $8,700,000.
       Project 94-D-125, upgrade life safety, Kansas City Plant, 
     Kansas City, Missouri, $5,500,000.
       Project 94-D-127, emergency notification system, Pantex 
     Plant, Amarillo, Texas, $2,000,000.
       Project 94-D-128, environmental safety and health 
     analytical laboratory, Pantex Plant, Amarillo, Texas, 
     $4,000,000.
       Project 93-D-122, life safety upgrades, Y-12 Plant, Oak 
     Ridge, Tennessee, $7,200,000.
       Project 93-D-123, complex-21, various locations, 
     $41,065,000.
       Project 88-D-122, facilities capability assurance program, 
     various locations, $8,660,000.
       Project 88-D-123, security enhancement, Pantex Plant, 
     Amarillo, Texas, $13,400,000.
       (c) Program Direction.--Subject to subsection (d), funds 
     are hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1996 for program direction in carrying 
     out weapons activities necessary for national security 
     programs in the amount of $115,000,000.
       (d) Adjustments.--The total amount authorized to be 
     appropriated pursuant to this section is the sum of the 
     amounts authorized to be appropriated in subsections (a) 
     through (c) reduced by the sum of--
       (1) $37,200,000, for savings resulting from procurement 
     reform; and
       (2) $209,744,000, for use of prior year balances.

     SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

       (a) Environmental Restoration.--Subject to subsection (h), 
     funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1996 for environmental 
     restoration in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $1,635,973,000.
       (b) Waste Management.--Subject to subsection (h), funds are 
     hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1996 for waste management in carrying 
     out environmental restoration and waste management activities 
     necessary for national security programs in the amount of 
     $2,470,598,000, to be allocated as follows:
       (1) For operation and maintenance, $2,295,994,000.
       (2) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $174,604,000, to be allocated as follows:
       Project 96-D-406, spent nuclear fuels canister storage and 
     stabilization facility, Richland, Washington, $42,000,000.
       Project 96-D-407, mixed waste/low-level waste treatment 
     projects, Rocky Flats Plant, Golden, Colorado, $2,900,000.
       Project 96-D-408, waste management upgrades, various 
     locations, $5,615,000.
       Project 95-D-402, install permanent electrical service, 
     Waste Isolation Pilot Plant, Carlsbad, New Mexico, 
     $4,314,000.
       Project 95-D-405, industrial landfill V and construction/
     demolition landfill VII, Phase III, Y-12 Plant, Oak Ridge, 
     Tennessee, $4,600,000.
       Project 95-D-406, road 5-01 reconstruction, area 5, Nevada 
     Test Site, Nevada, $1,023,000.
       Project 95-D-407, 219-S secondary containment upgrade, 
     Richland Washington, $1,000,000.
       Project 94-D-400, high explosive wastewater treatment 
     system, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $4,445,000.
       Project 94-D-402, liquid waste treatment system, Nevada 
     Test Site, Nevada, $282,000.
       Project 94-D-404, Melton Valley storage tank capacity 
     increase, Oak Ridge National Laboratory, Oak Ridge, 
     Tennessee, $11,000,000.
       Project 94-D-407, initial tank retrieval systems, Richland, 
     Washington, $12,000,000.
       Project 94-D-411, solid waste operation complex, Richland, 
     Washington, $6,606,000.
       Project 93-D-178, building 374 liquid waste treatment 
     facility, Rocky Flats Plant, Golden, Colorado, $3,900,000.
       Project 93-D-181, radioactive liquid waste line 
     replacement, Richland, Washington, $5,000,000.
       Project 93-D-182, replacement of cross-site transfer 
     system, Richland, Washington, $19,795,000.
       Project 93-D-187, high-level waste removal from filled 
     waste tanks, Savannah River Site, South Carolina, 
     $19,700,000.
       Project 92-D-171, mixed waste receiving and storage 
     facility, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $1,105,000.
       Project 92-D-188, waste management environmental, safety 
     and health (ES&H) and compliance activities, various 
     locations, $1,100,000.
       Project 90-D-172, aging waste transfer lines, Richland, 
     Washington, $2,000,000.
       Project 90-D-177, RWMC transuranic (TRU) waste 
     characterization and storage facility, Idaho National 
     Engineering Laboratory, Idaho, $1,428,000.
       Project 90-D-178, TSA retrieval enclosure, Idaho National 
     Engineering Laboratory, Idaho, $2,606,000.
       Project 89-D-173, tank farm ventilation upgrade, Richland, 
     Washington, $800,000.
       Project 89-D-174, replacement high-level waste evaporator, 
     Savannah River Site, Aiken, South Carolina, $11,500,000.
       Project 86-D-103, decontamination and waste treatment 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $8,885,000.
       Project 83-D-148, nonradioactive hazardous waste 
     management, Savannah River Site, Aiken, South Carolina, 
     $1,000,000.
       (c) Technology Development.--Subject to subsection (h), 
     funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1996 for technology 
     development in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $440,510,000.
       (d) Transportation Management.--Subject to subsection (h), 
     funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1996 for transportation 
     management in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $13,158,000.
       (e) Nuclear Materials and Facilities Stabilization.--
     Subject to subsection (h), funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1996 
     for nuclear materials and facilities stabilization in 
     carrying out environmental restoration and waste management 
     activities necessary for national security programs in the 
     amount of $1,561,854,000 to be allocated as follows:
       (1) For operation and maintenance, $1,447,108,000.
       (2) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $114,746,000, to be allocated as follows:
       Project 96-D-457, thermal treatment system, Richland 
     Washington, $1,000,000.
       Project 96-D-458, site drainage control, Mound Plant, 
     Miamisburg, Ohio, $885,000.
       Project 96-D-461, electrical distribution upgrade, Idaho 
     National Engineering Laboratory, Idaho, $1,539,000.
       Project 96-D-464, electrical and utility systems upgrade, 
     Idaho Chemical Processing Plant, Idaho National Engineering 
     Laboratory, Idaho, $4,952,000.
       Project 96-D-468, residue elimination project, Rocky Flats 
     Plant, Golden, Colorado, $33,100,000.
       Project 96-D-471, chlorofluorocarbon heating, ventilation, 
     and air conditioning and chiller retrofit, Savannah River 
     Site, Aiken, South Carolina, $1,500,000.
       Project 95-D-155, upgrade site road infrastructure, 
     Savannah River Site, South Carolina, $2,900,000.
       Project 95-D-156, radio trunking system, Savannah River 
     Site, South Carolina, $6,000,000.
       Project 95-D-454, 324 facility compliance/renovation, 
     Richland, Washington, $3,500,000.
       Project 95-D-456, security facilities upgrade, Idaho 
     Chemical Processing Plant, Idaho National Engineering 
     Laboratory, Idaho, $8,382,000.
       Project 94-D-122, underground storage tanks, Rocky Flats 
     Plant, Golden, Colorado, $5,000,000.
       Project 94-D-401, emergency response facility, Idaho 
     National Engineering Laboratory, Idaho, $5,074,000.
       Project 94-D-412, 300 area process sewer piping upgrade, 
     Richland, Washington, $1,000,000.
       Project 94-D-415, medical facilities, Idaho National 
     Engineering Laboratory, Idaho, $3,601,000.
       Project 94-D-451, infrastructure replacement, Rocky Flats 
     Plant, Golden, Colorado, $2,940,000.
     
[[Page H476]]

       Project 93-D-147, domestic water system upgrade, Phase I 
     and II, Savannah River Site, Aiken, South Carolina, 
     $7,130,000.
       Project 92-D-123, plant fire/security alarm systems 
     replacement, Rocky Flats Plant, Golden, Colorado, $9,560,000.
       Project 92-D-125, master safeguards and security agreement/
     materials surveillance task force security upgrades, Rocky 
     Flats Plant, Golden, Colorado, $7,000,000.
       Project 92-D-181, fire and life safety improvements, Idaho 
     National Engineering Laboratory, Idaho, $6,883,000.
       Project 91-D-127, criticality alarm and plant annunciation 
     utility replacement, Rocky Flats Plant, Golden, Colorado, 
     $2,800,000.
       (f) Compliance and Program Coordination.--Subject to 
     subsection (h), funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1996 
     for compliance and program coordination in carrying out 
     environmental restoration and waste management activities 
     necessary for national security programs in the amount of 
     $46,251,000, to be allocated as follows:
       (1) For operation and maintenance, $31,251,000.
       (2) For the following plant project (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of a project 
     authorized in prior years, and land acquisition related 
     thereto):
       Project 95-E-600, hazardous materials training center, 
     Richland, Washington, $15,000,000.
       (g) Analysis, Education, and Risk Management.--Subject to 
     subsection (h), funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1996 
     for analysis, education, and risk management in carrying out 
     environmental restoration and waste management activities 
     necessary for national security programs in the amount of 
     $78,522,000.
       (h) Adjustments.--The total amount authorized to be 
     appropriated pursuant to this section is the sum of the 
     amounts specified in subsections (a) through (g) reduced by 
     the sum of--
       (1) $652,334,000, for use of prior year balances; and
       (2) $37,000,000, for Savannah River Pension Refund.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       (a) Other Defense Activities.--Subject to subsection (b), 
     funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1996 for other defense 
     activities in carrying out programs necessary for national 
     security in the amount of $1,351,975,600, to be allocated as 
     follows:
       (1) For verification and control technology, $428,205,600, 
     to be allocated as follows:
       (A) For nonproliferation and verification research and 
     development, $224,905,000.
       (B) For arms control, $160,964,600.
       (C) For intelligence, $42,336,000.
       (2) For nuclear safeguards and security, $83,395,000.
       (3) For security investigations, $20,000,000.
       (4) For security evaluations, $14,707,000.
       (5) For the Office of Nuclear Safety, $17,679,000.
       (6) For worker and community transition assistance, 
     $82,500,000.
       (7) For fissile materials disposition, $70,000,000.
       (8) For emergency management, $23,321,000.
       (9) For naval reactors development, $682,168,000, to be 
     allocated as follows:
       (A) For operation and infrastructure, $652,568,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $29,600,000, to be allocated as follows:
       Project GPN-101, general plant projects, various locations, 
     $6,600,000.
       Project 95-D-200, laboratory systems and hot cell upgrades, 
     various locations, $11,300,000.
       Project 95-D-201, advanced test reactor radioactive waste 
     system upgrades, Idaho National Engineering Laboratory, 
     Idaho, $4,800,000.
       Project 93-D-200, engineering services facilities, Knolls 
     Atomic Power Laboratory, Niskayuna, New York, $3,900,000.
       Project 90-N-102, expended core facility dry cell project, 
     Naval Reactors Facility, Idaho, $3,000,000.
       (b) Adjustment.--The total amount authorized to be 
     appropriated pursuant to this section is the amount 
     authorized to be appropriated in subsection (a) reduced by 
     $70,000,000, for use of prior year balances.

     SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1996 for payment to the 
     Nuclear Waste Fund established in section 302(c) of the 
     Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the 
     amount of $248,400,000.
                Subtitle B--Recurring General Provisions

     SEC. 3121. REPROGRAMMING.

       (a) In General.--Until the Secretary of Energy submits to 
     the congressional defense committees the report referred to 
     in subsection (b) and a period of 30 days has elapsed after 
     the date on which such committees receive the report, the 
     Secretary may not use amounts appropriated pursuant to this 
     title for any program--
       (1) in amounts that exceed, in a fiscal year--
       (A) 110 percent of the amount authorized for that program 
     by this title; or
       (B) $1,000,000 more than the amount authorized for that 
     program by this title; or
       (2) which has not been presented to, or requested of, 
     Congress.
       (b) Report.--(1) The report referred to in subsection (a) 
     is a report containing a full and complete statement of the 
     action proposed to be taken and the facts and circumstances 
     relied upon in support of such proposed action.
       (2) In the computation of the 30-day period under 
     subsection (a), there shall be excluded any day on which 
     either House of Congress is not in session because of an 
     adjournment of more than 3 days to a day certain.
       (c) Limitations.--(1) In no event may the total amount of 
     funds obligated pursuant to this title exceed the total 
     amount authorized to be appropriated by this title.
       (2) Funds appropriated pursuant to this title may not be 
     used for an item for which Congress has specifically denied 
     funds.

     SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

       (a) In General.--The Secretary of Energy may carry out any 
     construction project under the general plant projects 
     authorized by this title if the total estimated cost of the 
     construction project does not exceed $2,000,000.
       (b) Report to Congress.--If, at any time during the 
     construction of any general plant project authorized by this 
     title, the estimated cost of the project is revised because 
     of unforeseen cost variations and the revised cost of the 
     project exceeds $2,000,000, the Secretary shall immediately 
     furnish a complete report to the congressional defense 
     committees explaining the reasons for the cost variation.

     SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

       (a) In General.--(1) Except as provided in paragraph (2), 
     construction on a construction project may not be started or 
     additional obligations incurred in connection with the 
     project above the total estimated cost, whenever the current 
     estimated cost of the construction project, which is 
     authorized by sections 3101, 3102, or 3103, or which is in 
     support of national security programs of the Department of 
     Energy and was authorized by any previous Act, exceeds by 
     more than 25 percent the higher of--
       (A) the amount authorized for the project; or
       (B) the amount of the total estimated cost for the project 
     as shown in the most recent budget justification data 
     submitted to Congress.
       (2) An action described in paragraph (1) may be taken if--
       (A) the Secretary of Energy has submitted to the 
     congressional defense committees a report on the actions and 
     the circumstances making such action necessary; and
       (B) a period of 30 days has elapsed after the date on which 
     the report is received by the committees.
       (3) In the computation of the 30-day period under paragraph 
     (2), there shall be excluded any day on which either House of 
     Congress is not in session because of an adjournment of more 
     than 3 days to a day certain.
       (b) Exception.--Subsection (a) shall not apply to any 
     construction project which has a current estimated cost of 
     less than $5,000,000.

     SEC. 3124. FUND TRANSFER AUTHORITY.

       (a) Transfer to Other Federal Agencies.--The Secretary of 
     Energy may transfer funds authorized to be appropriated to 
     the Department of Energy pursuant to this title to other 
     Federal agencies for the performance of work for which the 
     funds were authorized. Funds so transferred may be merged 
     with and be available for the same purposes and for the same 
     period as the authorizations of the Federal agency to which 
     the amounts are transferred.
       (b) Transfer Within Department of Energy; Limitations.--(1) 
     Subject to paragraph (2), the Secretary of Energy may 
     transfer funds authorized to be appropriated to the 
     Department of Energy pursuant to this title between any such 
     authorizations. Amounts of authorizations so transferred may 
     be merged with and be available for the same purposes and for 
     the same period as the authorization to which the amounts are 
     transferred.
       (2) Not more than five percent of any such authorization 
     may be transferred between authorizations under paragraph 
     (1). No such authorization may be increased or decreased by 
     more than five percent by a transfer under such paragraph.
       (3) The authority provided by this section to transfer 
     authorizations--
       (A) may only be used to provide funds for items relating to 
     weapons activities necessary for national security programs 
     that have a higher priority than the items from which the 
     funds are transferred; and
       (B) may not be used to provide authority for an item that 
     has been denied funds by Congress.
       (c) Notice to Congress.--The Secretary of Energy shall 
     promptly notify the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives of any transfer of funds to or from 
     authorizations under this title.

     SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

       (a) Requirement for Conceptual Design.--(1) Subject to 
     paragraph (2) and except as provided in paragraph (3), before 
     submitting to Congress a request for funds for a construction 
     project that is in support of a 

[[Page H477]]
     national security program of the Department of Energy, the Secretary of 
     Energy shall complete a conceptual design for that project.
       (2) If the estimated cost of completing a conceptual design 
     for a construction project exceeds $3,000,000, the Secretary 
     shall submit to Congress a request for funds for the 
     conceptual design before submitting a request for funds for 
     the construction project.
       (3) The requirement in paragraph (1) does not apply to a 
     request for funds--
       (A) for a construction project the total estimated cost of 
     which is less than $2,000,000; or
       (B) for emergency planning, design, and construction 
     activities under section 3126.
       (b) Authority for Construction Design.--(1) Within the 
     amounts authorized by this title, the Secretary of Energy may 
     carry out construction design (including architectural and 
     engineering services) in connection with any proposed 
     construction project if the total estimated cost for such 
     design does not exceed $600,000.
       (2) If the total estimated cost for construction design in 
     connection with any construction project exceeds $600,000, 
     funds for such design must be specifically authorized by law.

     SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND 
                   CONSTRUCTION ACTIVITIES.

       (a) Authority.--The Secretary of Energy may use any funds 
     available to the Department of Energy pursuant to an 
     authorization in this title, including those funds authorized 
     to be appropriated for advance planning and construction 
     design under sections 3101, 3102, and 3103, to perform 
     planning, design, and construction activities for any 
     Department of Energy national security program construction 
     project that, as determined by the Secretary, must proceed 
     expeditiously in order to protect public health and safety, 
     to meet the needs of national defense, or to protect 
     property.
       (b) Limitation.--The Secretary may not exercise the 
     authority under subsection (a) in the case of any 
     construction project until the Secretary has submitted to the 
     congressional defense committees a report on the activities 
     that the Secretary intends to carry out under this section 
     and the circumstances making such activities necessary.
       (c) Specific Authority.--The requirement of section 
     3125(b)(2) does not apply to emergency planning, design, and 
     construction activities conducted under this section.

     SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
                   OF THE DEPARTMENT OF ENERGY.

       Subject to the provisions of appropriations Acts and 
     section 3121, amounts appropriated pursuant to this title for 
     management and support activities and for general plant 
     projects are available for use, when necessary, in connection 
     with all national security programs of the Department of 
     Energy.

     SEC. 3128. AVAILABILITY OF FUNDS.

       When so specified in an appropriation Act, amounts 
     appropriated for operation and maintenance or for plant 
     projects may remain available until expended.
   Subtitle C--Program Authorizations, Restrictions, and Limitations

     SEC. 3131. AUTHORITY TO CONDUCT PROGRAM RELATING TO FISSILE 
                   MATERIALS.

       (a) Authority.--The Secretary of Energy may conduct 
     programs designed to improve the protection, control, and 
     accountability of fissile materials in Russia.
       (b) Semi-Annual Reports on Obligation of Funds.--(1) Not 
     later than 30 days after the date of the enactment of this 
     Act, and thereafter not later than April 1 and October 1 of 
     each year, the Secretary of Energy shall submit to Congress a 
     report on each obligation during the preceding six months of 
     funds appropriated for a program described in subsection 
     (a).
       (2) Each such report shall specify--
       (A) the activities and forms of assistance for which the 
     Secretary of Energy has obligated funds;
       (B) the amount of the obligation;
       (C) the activities and forms of assistance for which the 
     Secretary anticipates obligating funds during the six months 
     immediately following the report, and the amount of each such 
     anticipated obligation; and
       (D) the projected involvement (if any) of any department or 
     agency of the United States (in addition to the Department of 
     Energy) and of the private sector of the United States in the 
     activities and forms of assistance for which the Secretary of 
     Energy has obligated funds referred to in subparagraph (A).

     SEC. 3132. NATIONAL IGNITION FACILITY.

       None of the funds authorized to be appropriated pursuant to 
     this title for construction of the National Ignition Facility 
     may be obligated until--
       (1) the Secretary of Energy determines that the 
     construction of the National Ignition Facility will not 
     impede the nuclear nonproliferation objectives of the United 
     States; and
       (2) the Secretary of Energy notifies the congressional 
     defense committees of that determination.

     SEC. 3133. TRITIUM PRODUCTION PROGRAM.

       (a) Establishment of Program.--The Secretary of Energy 
     shall establish a tritium production program that is capable 
     of meeting the tritium requirements of the United States for 
     nuclear weapons. In carrying out the tritium production 
     program, the Secretary shall--
       (1) complete the tritium supply and recycling environmental 
     impact statement in preparation by the Secretary as of the 
     date of the enactment of this Act; and
       (2) assess alternative means for tritium production, 
     including production through--
       (A) types of new and existing reactors, including 
     multipurpose reactors (such as advanced light water reactors 
     and gas turbine gas-cooled reactors) capable of meeting both 
     the tritium production requirements and the plutonium 
     disposition requirements of the United States for nuclear 
     weapons;
       (B) an accelerator; and
       (C) multipurpose reactor projects carried out by the 
     private sector and the Government.
       (b) Funding.--Of funds authorized to be appropriated to the 
     Department of Energy pursuant to section 3101, not more than 
     $50,000,000 shall be available for the tritium production 
     program established pursuant to subsection (a).
       (c) Location of Tritium Production Facility.--The Secretary 
     shall locate any new tritium production facility of the 
     Department of Energy at the Savannah River Site, South 
     Carolina.
       (d) Cost-Benefit Analysis.--(1) The Secretary shall include 
     in the statements referred to in paragraph (2) a comparison 
     of the costs and benefits of carrying out two projects for 
     the separate performance of the tritium production mission of 
     the Department and the plutonium disposition mission of the 
     Department with the costs and benefits of carrying out one 
     multipurpose project for the performance of both such 
     missions.
       (2) The statements referred to in paragraph (1) are--
       (A) the environmental impact statement referred to in 
     subsection (a)(1);
       (B) the plutonium disposition environmental impact 
     statement in preparation by the Secretary as of the date of 
     the enactment of this Act; and
       (C) assessments related to the environmental impact 
     statements referred to in subparagraphs (A) and (B).
       (e) Report.--Not later than 45 days after the date of the 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives a report 
     on the tritium production program established pursuant to 
     subsection (a). The report shall include a specification of--
       (1) the planned expenditures of the Department during 
     fiscal year 1996 for any of the alternative means for tritium 
     production assessed under subsection (a)(2);
       (2) the amount of funds required to be expended by the 
     Department, and the program milestones (including feasibility 
     demonstrations) required to be met, during fiscal years 1997 
     through 2001 to ensure tritium production beginning not later 
     than 2005 that is adequate to meet the tritium requirements 
     of the United States for nuclear weapons; and
       (3) the amount of such funds to be expended and such 
     program milestones to be met during such fiscal years to 
     ensure such tritium production beginning not later than 2011.
       (f) Tritium Targets.--Of the funds made available pursuant 
     to subsection (b), not more than $5,000,000 shall be 
     available for the Idaho National Engineering Laboratory for 
     the test and development of nuclear reactor tritium targets 
     for the types of reactors assessed under subsection 
     (a)(2)(A).

     SEC. 3134. PAYMENT OF PENALTIES.

       The Secretary of Energy may pay to the Hazardous Substance 
     Superfund established under section 9507 of the Internal 
     Revenue Code of 1986 (26 U.S.C. 9507), from funds 
     appropriated to the Department of Energy for environmental 
     restoration and waste management activities pursuant to 
     section 3102, stipulated civil penalties in the amount of 
     $350,000 assessed under the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601 et seq.) against the Rocky Flats Site, Colorado.

     SEC. 3135. FISSILE MATERIALS DISPOSITION.

       (a) In General.--Of the funds authorized to be appropriated 
     to the Department of Energy for fiscal year 1996 pursuant to 
     section 3103, $70,000,000 shall be available only for 
     purposes of completing the evaluation of, and commencing 
     implementation of, the interim- and long-term storage and 
     disposition (including storage and disposition through the 
     use of advanced light water reactors and gas turbine gas-
     cooled reactors) of fissile materials (including plutonium, 
     highly enriched uranium, and other fissile materials) that 
     are excess to the national security needs of the United 
     States.
       (b) Availability of Funds for Multipurpose Reactors.--Of 
     funds made available pursuant to subsection (a), sufficient 
     funds shall be made available for the complete consideration 
     of multipurpose reactors for the disposition of fissile 
     materials in the programmatic environmental impact statement 
     of the Department.
       (c) Limitation.--Of funds made available pursuant to 
     subsection (a), $10,000,000 shall be available only for a 
     plutonium resource assessment.

     SEC. 3136. TRITIUM RECYCLING.

       (a) In General.--Except as provided in subsection (b), the 
     following activities shall be carried out at the Savannah 
     River Site, South Carolina:
       (1) All tritium recycling for weapons, including tritium 
     refitting.
       (2) All activities regarding tritium formerly carried out 
     at the Mound Plant, Ohio. 
     
[[Page H478]]

       (b) Exception.--The following activities may be carried out 
     at the Los Alamos National Laboratory, New Mexico:
       (1) Research on tritium.
       (2) Work on tritium in support of the defense inertial 
     confinement fusion program.
       (3) Provision of technical assistance to the Savannah River 
     Site regarding the weapons surveillance program.

     SEC. 3137. MANUFACTURING INFRASTRUCTURE FOR REFABRICATION AND 
                   CERTIFICATION OF NUCLEAR WEAPONS STOCKPILE.

       (a) Manufacturing Program.--The Secretary of Energy shall 
     carry out a program for purposes of establishing within the 
     Government a manufacturing infrastructure that has the 
     capabilities of meeting the following objectives as specified 
     in the Nuclear Posture Review:
       (1) To provide a stockpile surveillance engineering base.
       (2) To refabricate and certify weapon components and types 
     in the enduring nuclear weapons stockpile, as necessary.
       (3) To fabricate and certify new nuclear warheads, as 
     necessary.
       (4) To support nuclear weapons.
       (5) To supply sufficient tritium in support of nuclear 
     weapons to ensure an upload hedge in the event circumstances 
     require.
       (b) Required Capabilities.--The manufacturing 
     infrastructure established under the program under subsection 
     (a) shall include the following capabilities (modernized to 
     attain the objectives referred to in that subsection):
       (1) The weapons assembly capabilities of the Pantex Plant.
       (2) The weapon secondary fabrication capabilities of the Y-
     12 Plant, Oak Ridge, Tennessee.
       (3) The tritium production, recycling, and other weapons-
     related capabilities of the Savannah River Site.
       (4) The non-nuclear component capabilities of the Kansas 
     City Plant.
       (c) Nuclear Posture Review.--For purposes of subsection 
     (a), the term ``Nuclear Posture Review'' means the Department 
     of Defense Nuclear Posture Review as contained in the Report 
     of the Secretary of Defense to the President and the Congress 
     dated February 19, 1995, or subsequent such reports.
       (d) Funding.--Of the funds authorized to be appropriated 
     under section 3101(b), $143,000,000 shall be available for 
     carrying out the program required under this section, of 
     which--
       (1) $35,000,000 shall be available for activities at the 
     Pantex Plant;
       (2) $30,000,000 shall be available for activities at the Y-
     12 Plant, Oak Ridge, Tennessee;
       (3) $35,000,000 shall be available for activities at the 
     Savannah River Site; and
       (4) $43,000,000 shall be available for activities at the 
     Kansas City Plant.
       (e) Plan and Report.--The Secretary shall develop a plan 
     for the implementation of this section. Not later than March 
     1, 1996, the Secretary shall submit to Congress a report on 
     the obligations the Secretary has incurred, and plans to 
     incur, during fiscal year 1996 for the program referred to in 
     subsection (a).

     SEC. 3138. HYDRONUCLEAR EXPERIMENTS.

       Of the funds authorized to be appropriated to the 
     Department of Energy pursuant to section 3101, $30,000,000 
     shall be available to prepare for the commencement of a 
     program of hydronuclear experiments at the nuclear weapons 
     design laboratories at the Nevada Test Site, Nevada. The 
     purpose of the program shall be to maintain confidence in the 
     reliability and safety of the nuclear weapons stockpile.

     SEC. 3139. LIMITATION ON AUTHORITY TO CONDUCT HYDRONUCLEAR 
                   TESTS.

       Nothing in this Act may be construed to authorize the 
     conduct of hydronuclear tests or to amend or repeal the 
     requirements of section 507 of the Energy and Water 
     Development Appropriations Act, 1993 (Public Law 102-377; 106 
     Stat. 1343; 42 U.S.C. 2121 note).

     SEC. 3140. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS 
                   CRITICAL TO THE DEPARTMENT OF ENERGY NUCLEAR 
                   WEAPONS COMPLEX.

       (a) In General.--The Secretary of Energy shall conduct a 
     fellowship program for the development of skills critical to 
     the ongoing mission of the Department of Energy nuclear 
     weapons complex. Under the fellowship program, the Secretary 
     shall--
       (1) provide educational assistance and research assistance 
     to eligible individuals to facilitate the development by such 
     individuals of skills critical to maintaining the ongoing 
     mission of the Department of Energy nuclear weapons complex;
       (2) employ eligible individuals at the facilities described 
     in subsection (c) in order to facilitate the development of 
     such skills by these individuals; or
       (3) provide eligible individuals with the assistance and 
     the employment.
       (b) Eligible Individuals.--Individuals eligible for 
     participation in the fellowship program are the following:
       (1) Students pursuing graduate degrees in fields of science 
     or engineering that are related to nuclear weapons 
     engineering or to the science and technology base of the 
     Department of Energy.
       (2) Individuals engaged in postdoctoral studies in such 
     fields.
       (c) Covered Facilities.--The Secretary shall carry out the 
     fellowship program at or in connection with the following 
     facilities:
       (1) The Kansas City Plant, Kansas City, Missouri.
       (2) The Pantex Plant, Amarillo, Texas.
       (3) The Y-12 Plant, Oak Ridge, Tennessee.
       (4) The Savannah River Site, Aiken, South Carolina.
       (d) Administration.--The Secretary shall carry out the 
     fellowship program at a facility referred to in subsection 
     (c) through the stockpile manager of the facility.
       (e) Allocation of Funds.--The Secretary shall, in 
     consultation with the Assistant Secretary of Energy for 
     Defense Programs, allocate funds available for the fellowship 
     program under subsection (f) among the facilities referred to 
     in subsection (c). The Secretary shall make the allocation 
     after evaluating an assessment by the weapons program 
     director of each such facility of the personnel and critical 
     skills necessary at the facility for carrying out the ongoing 
     mission of the facility.
       (f) Funding.--Of the funds authorized to be appropriated to 
     the Department of Energy for fiscal year 1996 under section 
     3101(b), $10,000,000 may be used for the purpose of carrying 
     out the fellowship program under this section.

     SEC. 3141. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH 
                   AND DEVELOPMENT PURPOSES.

       Funds appropriated or otherwise made available to the 
     Department of Energy for fiscal year 1996 under section 3101 
     may be obligated and expended for activities under the 
     Department of Energy Laboratory Directed Research and 
     Development Program or under Department of Energy technology 
     transfer programs only if such activities support the 
     national security mission of the Department.

     SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR 
                   WASTE AND SPENT NUCLEAR FUEL RODS.

       (a) Processing of Spent Nuclear Fuel Rods.--Of the amounts 
     appropriated pursuant to section 3102, there shall be 
     available to the Secretary of Energy to respond effectively 
     to new requirements for managing spent nuclear fuel--
       (1) not more than $30,000,000, for the Savannah River Site 
     for the development and implementation of a program for the 
     processing, reprocessing, separation, reduction, isolation, 
     and interim storage of high-level nuclear waste associated 
     with aluminum clad spent fuel rods and foreign spent fuel 
     rods; and
       (2) not more than $15,000,000, for the Idaho National 
     Engineering Laboratory for the development and implementation 
     of a program for the treatment, preparation, and conditioning 
     of high-level nuclear waste and spent nuclear fuel (including 
     naval spent nuclear fuel), nonaluminum clad fuel rods, and 
     foreign fuel rods for interim storage and final disposition.
       (b) Implementation Plan.--Not later than April 30, 1996, 
     the Secretary shall submit to Congress a five-year plan for 
     the implementation of the programs referred to in subsection 
     (a). The plan shall include--
       (1) an assessment of the facilities required to be 
     constructed or upgraded to carry out the processing, 
     separation, reduction, isolation and interim storage of high-
     level nuclear waste;
       (2) a description of the technologies, including 
     stabilization technologies, that are required to be developed 
     for the efficient conduct of the programs;
       (3) a projection of the dates upon which activities under 
     the programs are sufficiently completed to provide for the 
     transfers of such waste to permanent repositories; and
       (4) a projection of the total cost to complete the 
     programs.
       (c) Electrometallurgical Waste Treatment Technologies.--Of 
     the amount appropriated pursuant to section 3102(c), not more 
     than $25,000,000 shall be available for development of 
     electrometallurgical waste treatment technologies at the 
     Argonne National Laboratory.
       (d) Use of Funds for Settlement Agreement.--Funds made 
     available pursuant to subsection (a)(2) for the Idaho 
     National Engineering Laboratory shall be considered to be 
     funds made available in partial fulfillment of the terms and 
     obligations set forth in the settlement agreement entered 
     into by the United States with the State of Idaho in the 
     actions captioned Public Service Co. of Colorado v. Batt, 
     Civil No. 91-0035-S-EJL, and United States v. Batt, Civil No. 
     91-0054-S-EJL, in the United States District Court for the 
     District of Idaho and the consent order of the United States 
     District Court for the District of Idaho, dated October 17, 
     1995, that effectuates the settlement agreement.

     SEC. 3143. PROTECTION OF WORKERS AT NUCLEAR WEAPONS 
                   FACILITIES.

       Of the funds authorized to be appropriated to the 
     Department of Energy under section 3102, $10,000,000 shall be 
     available to carry out activities authorized under section 
     3131 of the National Defense Authorization Act for Fiscal 
     Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1571; 42 
     U.S.C. 7274d), relating to worker protection at nuclear 
     weapons facilities.

     SEC. 3144. DEPARTMENT OF ENERGY DECLASSIFICATION PRODUC- 
                   TIVITY INITIATIVE.

       Of the funds authorized to be appropriated to the 
     Department of Energy under section 3103, $3,000,000 shall be 
     available for the Declassification Productivity Initiative of 
     the Department of Energy.
                       Subtitle D--Other Matters

     SEC. 3151. REPORT ON FOREIGN TRITIUM PURCHASES.

       (a) Report.--Not later than May 1, 1996, the President 
     shall submit to the congressional defense committees a report 
     on the 

[[Page H479]]
     feasibility of, the cost of, and the policy, legal, and other issues 
     associated with purchasing tritium from various foreign 
     suppliers in order to ensure an adequate supply of tritium in 
     the United States for nuclear weapons.
       (b) Form of Report.--The report shall be submitted in 
     unclassified form, but may contain a classified appendix.

     SEC. 3152. STUDY ON NUCLEAR TEST READINESS POSTURES.

       Not later than February 15, 1996, the Secretary of Energy 
     shall submit to Congress a report on the costs, programmatic 
     issues, and other issues associated with sustaining the 
     capability of the Department of Energy--
       (1) to conduct an underground nuclear test 6 months after 
     the date on which the President determines that such a test 
     is necessary to ensure the national security of the United 
     States;
       (2) to conduct such a test 18 months after such date; and
       (3) to conduct such a test 36 months after such date.

     SEC. 3153. MASTER PLAN FOR THE CERTIFICATION, STEWARDSHIP, 
                   AND MANAGEMENT OF WARHEADS IN THE NUCLEAR 
                   WEAPONS STOCKPILE.

       (a) Master Plan Requirement.--Not later than March 15, 
     1996, the President shall submit to Congress a master plan 
     for maintaining the nuclear weapons stockpile. The President 
     shall submit to Congress an update of the master plan not 
     later than March 15 of each year thereafter.
       (b) Plan Elements.--The master plan and each update of the 
     master plan shall set forth the following:
       (1) The numbers of weapons (including active and inactive 
     weapons) for each type of weapon in the nuclear weapons 
     stockpile.
       (2) The expected design lifetime of each weapon type, the 
     current age of each weapon type, and any plans (including the 
     analytical basis for such plans) for lifetime extensions of a 
     weapon type.
       (3) An estimate of the lifetime of the nuclear and 
     nonnuclear components of the weapons (including active 
     weapons and inactive weapons) in the nuclear weapons 
     stockpile, and any plans (including the analytical basis for 
     such plans) for lifetime extensions of such components.
       (4) A schedule of the modifications, if any, required for 
     each weapon type (including active and inactive weapons) in 
     the nuclear weapons stockpile and the cost of such 
     modifications.
       (5) The process to be used in recertifying the safety, 
     reliability, and performance of each weapon type (including 
     active weapons and inactive weapons) in the nuclear weapons 
     stockpile.
       (6) The manufacturing infrastructure required to maintain 
     the nuclear weapons stockpile stewardship and management 
     programs, including a detailed project plan that demonstrates 
     the manner by which the Government will develop by 2002 the 
     capability to refabricate and certify warheads in the nuclear 
     weapons stockpile and to design, fabricate, and certify new 
     warheads.
       (c) Form of Plan.--The master plan and each update of the 
     master plan shall be submitted in unclassified form, but may 
     contain a classified appendix.

     SEC. 3154. PROHIBITION ON INTERNATIONAL INSPECTIONS OF 
                   DEPARTMENT OF ENERGY FACILITIES UNLESS 
                   PROTECTION OF RESTRICTED DATA IS CERTIFIED.

       (a) Prohibition on Inspections.--(1) The Secretary of 
     Energy may not allow an inspection of a nuclear weapons 
     facility by the International Atomic Energy Agency until the 
     Secretary certifies to Congress that no restricted data will 
     be revealed during such inspection.
       (2) For purposes of paragraph (1), the term ``restricted 
     data'' has the meaning provided by section 11 y. of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).
       (b) Extension of Notice-and-Wait Requirement Regarding 
     Proposed Cooperation Agreements.--Section 3155(b) of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 3092) is amended by striking 
     out ``December 31, 1995'' and inserting in lieu thereof 
     ``October 1, 1996''.

     SEC. 3155. REVIEW OF CERTAIN DOCUMENTS BEFORE 
                   DECLASSIFICATION AND RELEASE.

       (a) In General.--The Secretary of Energy shall ensure that, 
     before a document of the Department of Energy that contains 
     national security information is released or declassified, 
     such document is reviewed to determine whether it contains 
     restricted data.
       (b) Limitation on Declassification.--The Secretary may not 
     implement the automatic declassification provisions of 
     Executive Order 12958 if the Secretary determines that such 
     implementation could result in the automatic declassification 
     and release of documents containing restricted data.
       (c) Restricted Data Defined.--In this section, the term 
     ``restricted data'' has the meaning provided by section 11 y. 
     of the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).

     SEC. 3156. ACCELERATED SCHEDULE FOR ENVIRONMENTAL RESTORATION 
                   AND WASTE MANAGEMENT ACTIVITIES.

       (a) Accelerated Cleanup.--The Secretary of Energy shall 
     accelerate the schedule for environmental restoration and 
     waste management activities and projects for a site at a 
     Department of Energy defense nuclear facility if the 
     Secretary determines that such an accelerated schedule will 
     achieve meaningful, long-term cost savings to the Federal 
     Government and could substantially accelerate the release of 
     land for local reuse.
       (b) Consideration of Factors.--In making a determination 
     under subsection (a), the Secretary shall consider the 
     following:
       (1) The cost savings achievable by the Federal Government.
       (2) The amount of time for completion of environmental 
     restoration and waste management activities and projects at 
     the site that can be reduced from the time specified for 
     completion of such activities and projects in the baseline 
     environmental management report required to be submitted for 
     1995 under section 3153 of the National Defense Authorization 
     Act for Fiscal Year 1994 (42 U.S.C. 7274k).
       (3) The potential for reuse of the site.
       (4) The risks that the site poses to local health and 
     safety.
       (5) The proximity of the site to populated areas.
       (c) Report.--Not later than May 1, 1996, the Secretary 
     shall submit to Congress a report on each site for which the 
     Secretary has accelerated the schedule for environmental 
     restoration and waste management activities and projects 
     under subsection (a). The report shall include an explanation 
     of the basis for the determination for that site required by 
     such subsection, including an explanation of the 
     consideration of the factors described in subsection (b).
       (d) Savings Provision.--Nothing in this section may be 
     construed to affect a specific statutory requirement for a 
     specific environmental restoration or waste management 
     activity or project or to modify or otherwise affect 
     applicable statutory or regulatory environmental restoration 
     and waste management requirements, including substantive 
     standards intended to protect public health and the 
     environment.

     SEC. 3157. SENSE OF CONGRESS REGARDING CERTAIN ENVIRONMENTAL 
                   RESTORATION REQUIREMENTS.

       It is the sense of Congress that--
       (1) an individual acting within the scope of that 
     individual's employment with a Federal agency should not be 
     personally subject to civil or criminal sanctions (to the 
     extent such sanctions are provided for by law) as a result of 
     the failure to comply with an environmental cleanup 
     requirement under the Solid Waste Disposal Act or the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act or an analogous requirement under a comparable 
     Federal, State, or local law, in any circumstance under which 
     such failure to comply is due to an insufficiency of funds 
     appropriated to carry out such requirement;
       (2) Federal and State enforcement authorities should 
     refrain from an enforcement action in a circumstance 
     described in paragraph (1); and
       (3) if funds appropriated for a fiscal year after fiscal 
     year 1995 are insufficient to carry out any such 
     environmental cleanup requirement, Congress should elicit the 
     views of Federal agencies, affected States, and the public, 
     and consider appropriate legislative action to address 
     personal criminal liability in a circumstance described in 
     paragraph (1) and any related issues pertaining to potential 
     liability of a Federal agency.

     SEC. 3158. RESPONSIBILITY FOR DEFENSE PROGRAMS EMERGENCY 
                   RESPONSE PROGRAM.

       The Office of Military Applications under the Assistant 
     Secretary of Energy for Defense Programs shall retain 
     responsibility for the Defense Programs Emergency Response 
     Program within the Department of Energy.

     SEC. 3159. REQUIREMENTS FOR DEPARTMENT OF ENERGY WEAPONS 
                   ACTIVITIES BUDGETS FOR FISCAL YEARS AFTER 
                   FISCAL YEAR 1996.

       (a) In General.--The weapons activities budget of the 
     Department of Energy shall be developed in accordance with 
     the Nuclear Posture Review, the Post Nuclear Posture Review 
     Stockpile Memorandum currently under development, and the 
     programmatic and technical requirements associated with the 
     review and memorandum.
       (b) Required Detail.--The Secretary of Energy shall include 
     in the materials that the Secretary submits to Congress in 
     support of the budget for a fiscal year submitted by the 
     President pursuant to section 1105 of title 31, United States 
     Code, a long-term program plan, and a near-term program plan, 
     for the certification and stewardship of the nuclear weapons 
     stockpile.
       (c) Definition.--In this section, the term ``Nuclear 
     Posture Review'' means the Department of Defense Nuclear 
     Posture Review as contained in the report of the Secretary of 
     Defense to the President and the Congress dated February 19, 
     1995, or in subsequent such reports.

     SEC. 3160. REPORT ON HYDRONUCLEAR TESTING.

       (a) Report.--The Secretary of Energy shall direct the joint 
     preparation by the Directors of the Lawrence Livermore 
     National Laboratory and the Los Alamos National Laboratory of 
     a report on the advantages and disadvantages with respect to 
     the safety and reliability of the nuclear weapons stockpile 
     of permitting alternative limits to the current limit on the 
     explosive yield of hydronuclear and other explosive tests. 
     The report shall address the following explosive yield 
     limits:
       (1) 4 pounds (TNT equivalent).
       (2) 400 pounds (TNT equivalent).
       (3) 4,000 pounds (TNT equivalent).
       (4) 40,000 pounds (TNT equivalent).
       (5) 400 tons (TNT equivalent).
       (b) Funding.--The Secretary shall make available funds 
     appropriated to the Department of Energy pursuant to section 
     3101 for preparation of the report required under subsection 
     (a).
     
[[Page H480]]


     SEC. 3161. APPLICABILITY OF ATOMIC ENERGY COMMUNITY ACT OF 
                   1955 TO LOS ALAMOS, NEW MEXICO.

       (a) Date of Transfer of Utilities.--Section 72 of the 
     Atomic Energy Community Act of 1955 (42 U.S.C. 2372) is 
     amended by striking out ``not later than five years after the 
     date it is included within this Act'' and inserting in lieu 
     thereof ``not later than June 30, 1998''.
       (b) Date of Transfer of Municipal Installations.--Section 
     83 of such Act (42 U.S.C. 2383) is amended by striking out 
     ``not later than five years after the date it is included 
     within this Act'' and inserting in lieu thereof ``not later 
     than June 30, 1998''.
       (c) Recommendation for Further Assistance Payments.--
     Section 91d. of such Act (42 U.S.C. 2391) is amended--
       (1) by striking out ``, and the Los Alamos School Board;'' 
     and all that follows through ``county of Los Alamos, New 
     Mexico'' and inserting in lieu thereof ``; or not later than 
     June 30, 1996, in the case of the Los Alamos School Board and 
     the county of Los Alamos, New Mexico''; and
       (2) by adding at the end the following new sentence: ``If 
     the recommendation under the preceding sentence regarding the 
     Los Alamos School Board or the county of Los Alamos, New 
     Mexico, indicates a need for further assistance for the 
     school board or the county, as the case may be, after June 
     30, 1997, the recommendation shall include a report and plan 
     describing the actions required to eliminate the need for 
     further assistance for the school board or the county, 
     including a proposal for legislative action to carry out the 
     plan.''.
       (d) Contract To Make Payments.--Section 94 of such Act (42 
     U.S.C. 2394) is amended--
       (1) by striking out ``June 30, 1996'' each place it appears 
     in the proviso in the first sentence and inserting in lieu 
     thereof ``June 30, 1997''; and
       (2) by striking out ``July 1, 1996'' in the second sentence 
     and inserting in lieu thereof ``July 1, 1997''.

     SEC. 3162. SENSE OF CONGRESS REGARDING SHIPMENTS OF SPENT 
                   NUCLEAR FUEL.

       (a) Findings.--Congress makes the following findings:
       (1) The United States has entered into a settlement 
     agreement with the State of Idaho in the actions captioned 
     Public Service Co. of Colorado v. Batt, Civil No. 91-0035-S-
     EJL, and United States v. Batt, Civil No. 91-0054-S-EJL, in 
     the United States District Court for the District of Idaho, 
     regarding shipment of naval spent nuclear fuel to Idaho, 
     examination and storage of such fuel in Idaho, and other 
     matters.
       (2) Under this court enforceable agreement--
       (A) the State of Idaho has agreed--
       (i) to accept 575 shipments of naval spent nuclear fuel 
     from the Navy into Idaho between October 17, 1995 and 2035;
       (ii) to accept certain shipments of spent nuclear fuel from 
     the Department of Energy into Idaho between October 17, 1995 
     and 2035; and
       (iii) to allow the Navy and the Department of Energy, on an 
     interim basis, to store the spent nuclear fuel in Idaho over 
     the next 40 years; and
       (B) the United States has made commitments--
       (i) to remove all spent nuclear fuel (except certain 
     quantities for testing) from Idaho by 2035; and
       (ii) to facilitate the cleanup and stabilization of 
     radioactive waste at the Idaho National Engineering 
     Laboratory.
       (3) The settlement agreement allows the Department of 
     Energy and the Department of the Navy to meet 
     responsibilities that are important to the national security 
     interests of the United States.
       (4) Authorizations and appropriations of funds will be 
     necessary in order to provide for fulfillment of the terms 
     and obligations set forth in the settlement agreement.
       (b) Sense of Congress.--(1) Congress recognizes the need to 
     implement the terms, conditions, rights, and obligations 
     contained in the settlement agreement referred to in 
     subsection (a)(1) and the consent order of the United States 
     District Court for the District of Idaho, dated October 17, 
     1995, that effectuates the settlement agreement in accordance 
     with those terms, conditions, rights, and obligations.
       (2) It is the sense of Congress that funds requested by the 
     President to carry out the settlement agreement and such 
     consent order should be appropriated for that purpose.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     1996, $17,000,000 for the operation of the Defense Nuclear 
     Facilities Safety Board under chapter 21 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2286 et seq.).
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE
        Subtitle A--Authorization of Disposals and Use of Funds

     SEC. 3301. DEFINITIONS.

       For purposes of this subtitle:
       (1) The term ``National Defense Stockpile'' means the 
     stockpile provided for in section 4 of the Strategic and 
     Critical Materials Stock Piling Act (50 U.S.C. 98c).
       (2) The term ``National Defense Stockpile Transaction 
     Fund'' means the fund in the Treasury of the United States 
     established under section 9(a) of the Strategic and Critical 
     Materials Stock Piling Act (50 U.S.C. 98h(a)).

     SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

       (a) Obligation of Stockpile Funds.--During fiscal year 
     1996, the National Defense Stockpile Manager may obligate up 
     to $77,100,000 of the funds in the National Defense Stockpile 
     Transaction Fund for the authorized uses of such funds under 
     section 9(b)(2) of the Strategic and Critical Materials Stock 
     Piling Act (50 U.S.C. 98h(b)(2)).
       (b) Additional Obligations.--The National Defense Stockpile 
     Manager may obligate amounts in excess of the amount 
     specified in subsection (a) if the National Defense Stockpile 
     Manager notifies Congress that extraordinary or emergency 
     conditions necessitate the additional obligations. The 
     National Defense Stockpile Manager may make the additional 
     obligations described in the notification after the end of 
     the 45-day period beginning on the date Congress receives the 
     notification.
       (c) Limitations.--The authorities provided by this section 
     shall be subject to such limitations as may be provided in 
     appropriations Acts.

     SEC. 3303. DISPOSAL OF CHROMITE AND MANGANESE ORES AND 
                   CHROMIUM FERRO AND MANGANESE METAL 
                   ELECTROLYTIC.

       (a) Domestic Upgrading.--In offering to enter into 
     agreements pursuant to any provision of law for the disposal 
     from the National Defense Stockpile of chromite and manganese 
     ores or chromium ferro and manganese metal electrolytic, the 
     President shall give a right of first refusal on all such 
     offers to domestic ferroalloy upgraders.
       (b) Domestic Ferroalloy Upgrader Defined.--For purposes of 
     this section, the term ``domestic ferroalloy upgrader'' means 
     a company or other business entity that, as determined by the 
     President--
       (1) is engaged in operations to upgrade chromite or 
     manganese ores of metallurgical grade or chromium ferro and 
     manganese metal electrolytic; and
       (2) conducts a significant level of its research, 
     development, engineering, and upgrading operations in the 
     United States.

     SEC. 3304. RESTRICTIONS ON DISPOSAL OF MANGANESE FERRO.

       (a) Disposal of Lower Grade Material First.--The President 
     may not dispose of high carbon manganese ferro in the 
     National Defense Stockpile that meets the National Defense 
     Stockpile classification of Grade One, Specification 30(a), 
     as revised on May 22, 1992, until completing the disposal of 
     all manganese ferro in the National Defense Stockpile that 
     does not meet such classification. The President may not 
     reclassify manganese ferro in the National Defense Stockpile 
     after the date of the enactment of this Act.
       (b) Requirement for Remelting by Domestic Ferroalloy 
     Producers.--Manganese ferro in the National Defense Stockpile 
     that does not meet the classification specified in subsection 
     (a) may be sold only for remelting by a domestic ferroalloy 
     producer unless the President determines that a domestic 
     ferroalloy producer is not available to acquire the material.
       (c) Domestic Ferroalloy Producer Defined.--For purposes of 
     this section, the term ``domestic ferroalloy producer'' means 
     a company or other business entity that, as determined by the 
     President--
       (1) is engaged in operations to upgrade manganese ores of 
     metallurgical grade or manganese ferro; and
       (2) conducts a significant level of its research, 
     development, engineering, and upgrading operations in the 
     United States.

     SEC. 3305. TITANIUM INITIATIVE TO SUPPORT BATTLE TANK UPGRADE 
                   PROGRAM.

       During each of the fiscal years 1996 through 2003, the 
     Secretary of Defense shall transfer from stocks of the 
     National Defense Stockpile up to 250 short tons of titanium 
     sponge to the Secretary of the Army for use in the weight 
     reduction portion of the main battle tank upgrade program. 
     Transfers under this section shall be without charge to the 
     Army, except that the Secretary of the Army shall pay all 
     transportation and related costs incurred in connection with 
     the transfer.
                    Subtitle B--Programmatic Change

     SEC. 3311. TRANSFER OF EXCESS DEFENSE-RELATED MATERIALS TO 
                   STOCKPILE FOR DISPOSAL.

       (a) Transfer and Disposal.--Section 4 of the Strategic and 
     Critical Materials Stock Piling Act (50 U.S.C. 98c) is 
     amended by adding at the end the following new subsection:
       ``(c)(1) The Secretary of Energy, in consultation with the 
     Secretary of Defense, shall transfer to the stockpile for 
     disposal in accordance with this Act uncontaminated materials 
     that are in the Department of Energy inventory of materials 
     for the production of defense-related items, are excess to 
     the requirements of the Department for that purpose, and are 
     suitable for transfer to the stockpile and disposal through 
     the stockpile.
       ``(2) The Secretary of Defense shall determine whether 
     materials are suitable for transfer to the stockpile under 
     this subsection, are suitable for disposal through the 
     stockpile, and are uncontaminated.''.
       (b) Conforming Amendment.--Subsection (a) of such section 
     is amended by adding at the end the following:
       ``(10) Materials transferred to the stockpile under 
     subsection (c).''.
     
[[Page H481]]

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES
         Subtitle A--Administration of Naval Petroleum Reserves

     SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

       There is hereby authorized to be appropriated to the 
     Secretary of Energy $148,786,000 for fiscal year 1996 for the 
     purpose of carrying out activities under chapter 641 of title 
     10, United States Code, relating to the naval petroleum 
     reserves (as defined in section 7420(2) of such title). Funds 
     appropriated pursuant to such authorization shall remain 
     available until expended. Of the amount appropriated pursuant 
     to the authorization of appropriations in the preceding 
     sentence, the Secretary may use not more than $7,000,000 for 
     carrying out activities related to the sale of Naval 
     Petroleum Reserve Numbered 1 under section 3412.

     SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM 
                   DURING FISCAL YEAR 1996.

       Notwithstanding section 7430(b)(2) of title 10, United 
     States Code, during fiscal year 1996, any sale of any part of 
     the United States share of petroleum produced from Naval 
     Petroleum Reserves Numbered 1, 2, and 3 shall be made at a 
     price not less than 90 percent of the current sales price, as 
     estimated by the Secretary of Energy, of comparable petroleum 
     in the same area.

     SEC. 3403. EXTENSION OF OPERATING CONTRACT FOR NAVAL 
                   PETROLEUM RESERVE NUMBERED 1.

       Section 3503 of the National Defense Authorization Act of 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3111) is 
     amended by striking out ``two years'' in the first sentence 
     and inserting in lieu thereof ``three years''.
              Subtitle B--Sale of Naval Petroleum Reserve

     SEC. 3411. DEFINITIONS.

       For purposes of this subtitle:
       (1) The terms ``Naval Petroleum Reserve Numbered 1'' and 
     ``reserve'' mean Naval Petroleum Reserve Numbered 1, commonly 
     referred to as the Elk Hills Unit, located in Kern County, 
     California, and established by Executive order of the 
     President, dated September 2, 1912.
       (2) The term ``naval petroleum reserves'' has the meaning 
     given that term in section 7420(2) of title 10, United States 
     Code, except that the term does not include Naval Petroleum 
     Reserve Numbered 1.
       (3) The term ``unit plan contract'' means the unit plan 
     contract between equity owners of the lands within the 
     boundaries of Naval Petroleum Reserve Numbered 1 entered into 
     on June 19, 1944.
       (4) The term ``effective date'' means the date of the 
     enactment of this Act.
       (5) The term ``Secretary'' means the Secretary of Energy.
       (6) The term ``appropriate congressional committees means 
     the Committee on Armed Services of the Senate and the 
     Committee on National Security and the Committee on Commerce 
     of the House of Representatives.

     SEC. 3412. SALE OF NAVAL PETROLEUM RESERVE NUMBERED 1.

       (a) Sale of Reserve Required.--Subject to section 3414, not 
     later than two years after the effective date, the Secretary 
     of Energy shall enter into one or more contracts for the sale 
     of all right, title, and interest of the United States in and 
     to all lands owned or controlled by the United States inside 
     Naval Petroleum Reserve Numbered 1. Chapter 641 of title 10, 
     United States Code, shall not apply to the sale of the 
     reserve.
       (b) Equity Finalization.--(1) Not later than eight months 
     after the effective date, the Secretary shall finalize equity 
     interests of the known oil and gas zones in Naval Petroleum 
     Reserve Numbered 1 in the manner provided by this subsection.
       (2) The Secretary shall retain the services of an 
     independent petroleum engineer, mutually acceptable to the 
     equity owners, who shall prepare a recommendation on final 
     equity figures. The Secretary may accept the recommendation 
     of the independent petroleum engineer for final equity in 
     each known oil and gas zone and establish final equity 
     interest in Naval Petroleum Reserve Numbered 1 in accordance 
     with the recommendation, or the Secretary may use such other 
     method to establish final equity interest in the reserve as 
     the Secretary considers appropriate.
       (3) If, on the effective date, there is an ongoing equity 
     redetermination dispute between the equity owners under 
     section 9(b) of the unit plan contract, the dispute shall be 
     resolved in the manner provided in the unit plan contract 
     within eight months after the effective date. The resolution 
     shall be considered final for all purposes under this 
     section.
       (c) Notice of Sale.--Not later than two months after the 
     effective date, the Secretary shall publish a notice of 
     intent to sell Naval Petroleum Reserve Numbered 1. The 
     Secretary shall make all technical, geological, and financial 
     information relevant to the sale of the reserve available to 
     all interested and qualified buyers upon request. The 
     Secretary, in consultation with the Administrator of General 
     Services, shall ensure that the sale process is fair and open 
     to all interested and qualified parties.
       (d) Establishment of Minimum Sale Price.--(1) Not later 
     than seven months after the effective date, the Secretary 
     shall retain the services of five independent experts in the 
     valuation of oil and gas fields to conduct separate 
     assessments, in a manner consistent with commercial 
     practices, of the value of the interest of the United States 
     in Naval Petroleum Reserve Numbered 1. The independent 
     experts shall complete their assessments within 11 months 
     after the effective date. In making their assessments, the 
     independent experts shall consider (among other factors)--
       (A) all equipment and facilities to be included in the 
     sale;
       (B) the estimated quantity of petroleum and natural gas in 
     the reserve; and
       (C) the net present value of the anticipated revenue stream 
     that the Secretary and the Director of the Office of 
     Management and Budget jointly determine the Treasury would 
     receive from the reserve if the reserve were not sold, 
     adjusted for any anticipated increases in tax revenues that 
     would result if the reserve were sold.
       (2) The independent experts retained under paragraph (1) 
     shall also determine and submit to the Secretary the 
     estimated total amount of the cost of any environmental 
     restoration and remediation necessary at the reserve. The 
     Secretary shall report the estimate to the Director of the 
     Office of Management and Budget, the Secretary of the 
     Treasury, and Congress.
       (3) The Secretary, in consultation with the Director of the 
     Office of Management and Budget, shall set the minimum 
     acceptable price for the reserve. The Secretary may not set 
     the minimum acceptable price below the higher of--
       (A) the average of the five assessments prepared under 
     paragraph (1); and
       (B) the average of three assessments after excluding the 
     high and low assessments.
       (e) Administration of Sale; Draft Contract.--(1) Not later 
     than two months after the effective date, the Secretary shall 
     retain the services of an investment banker or an appropriate 
     equivalent financial adviser to independently administer, in 
     a manner consistent with commercial practices and in a manner 
     that maximizes sale proceeds to the Government, the sale of 
     Naval Petroleum Reserve Numbered 1 under this section. Costs 
     and fees of retaining the investment banker or financial 
     adviser may be paid out of the proceeds of the sale of the 
     reserve.
       (2) Not later than 11 months after the effective date, the 
     investment banker or financial adviser retained under 
     paragraph (1) shall complete a draft contract or contracts 
     for the sale of Naval Petroleum Reserve Numbered 1, which 
     shall accompany the solicitation of offers and describe the 
     terms and provisions of the sale of the interest of the 
     United States in the reserve.
       (3) The draft contract or contracts shall identify--
       (A) all equipment and facilities to be included in the 
     sale; and
       (B) any potential claim or liability (including liability 
     for environmental restoration and remediation), and the 
     extent of any such claim or liability, for which the United 
     States is responsible under subsection (g).
       (4) The draft contract or contracts, including the terms 
     and provisions of the sale of the interest of the United 
     States in the reserve, shall be subject to review and 
     approval by the Secretary, the Secretary of the Treasury, and 
     the Director of the Office of Management and Budget. Each of 
     those officials shall complete the review of, and approve or 
     disapprove, the draft contract or contracts not later than 12 
     months after the effective date.
       (f) Solicitation of Offers.--(1) Not later than 13 months 
     after the effective date, the Secretary shall publish the 
     solicitation of offers for Naval Petroleum Reserve Numbered 
     1.
       (2) Not later than 18 months after the effective date, the 
     Secretary shall identify the highest responsible offer or 
     offers for purchase of the interest of the United States in 
     Naval Petroleum Reserve Numbered 1 that, in total, meet or 
     exceed the minimum acceptable price determined under 
     subsection (d)(3).
       (3) The Secretary shall take such action immediately after 
     the effective date as is necessary to obtain from an 
     independent petroleum engineer within 10 months after that 
     date a reserve report prepared in a manner consistent with 
     commercial practices. The Secretary shall use the reserve 
     report in support of the preparation of the solicitation of 
     offers for the reserve.
       (g) Future Liabilities.--To effectuate the sale of the 
     interest of the United States in Naval Petroleum Reserve 
     Numbered 1, the Secretary may extend such indemnities and 
     warranties as the Secretary considers reasonable and 
     necessary to protect the purchaser from claims arising from 
     the ownership in the reserve by the United States.
       (h) Maintaining Production.--Until the sale of Naval 
     Petroleum Reserve Numbered 1 is completed under this section, 
     the Secretary shall continue to produce the reserve at the 
     maximum daily oil or gas rate from a reservoir, which will 
     permit maximum economic development of the reservoir 
     consistent with sound oil field engineering practices in 
     accordance with section 3 of the unit plan contract.
       (i) Noncompliance With Deadlines.--At any time during the 
     two-year period beginning on the effective date, if the 
     Secretary determines that the actions necessary to complete 
     the sale of the reserve within that period are not being 
     taken or timely completed, the Secretary shall transmit to 
     the appropriate congressional committees a written 
     notification of that determination together with a plan 
     setting forth the actions that will be taken to ensure that 
     the sale of the reserve will be completed within 

[[Page H482]]
     that period. The Secretary shall consult with the Director of the 
     Office of Management and Budget in preparing the plan for 
     submission to the committees.
       (j) Oversight.--The Comptroller General shall monitor the 
     actions of the Secretary relating to the sale of the reserve 
     and report to the appropriate congressional committees any 
     findings on such actions that the Comptroller General 
     considers appropriate to report to the committees.
       (k) Acquisition of Services.--The Secretary may enter into 
     contracts for the acquisition of services required under this 
     section under the authority of paragraph (7) of section 
     303(c) of the Federal Property and Administrative Services 
     Act of 1949 (41 U.S.C. 253(c)), except that the notification 
     required under subparagraph (B) of such paragraph for each 
     contract shall be submitted to Congress not less than 7 days 
     before the award of the contract.

     SEC. 3413. EFFECT OF SALE OF RESERVE.

       (a) Effect on Existing Contracts.--(1) In the case of any 
     contract, in effect on the effective date, for the purchase 
     of production from any part of the United States' share of 
     Naval Petroleum Reserve Numbered 1, the sale of the interest 
     of the United States in the reserve shall be subject to the 
     contract for a period of three months after the closing date 
     of the sale or until termination of the contract, whichever 
     occurs first. The term of any contract entered into after the 
     effective date for the purchase of the production shall not 
     exceed the anticipated closing date for the sale of the 
     reserve.
       (2) The Secretary shall exercise the termination procedures 
     provided in the contract between the United States and 
     Bechtel Petroleum Operation, Inc., Contract Number DE-ACO1-
     85FE60520 so that the contract terminates not later than the 
     date of closing of the sale of Naval Petroleum Reserve 
     Numbered 1 under section 3412.
       (3) The Secretary shall exercise the termination procedures 
     provided in the unit plan contract so that the unit 
     plan contract terminates not later than the date of 
     closing of the sale of reserve.
       (b) Effect on Antitrust Laws.--Nothing in this subtitle 
     shall be construed to alter the application of the antitrust 
     laws of the United States to the purchaser or purchasers (as 
     the case may be) of Naval Petroleum Reserve Numbered 1 or to 
     the lands in the reserve subject to sale under section 3412 
     upon the completion of the sale.
       (c) Preservation of Private Right, Title, and Interest.--
     Nothing in this subtitle shall be construed to adversely 
     affect the ownership interest of any other entity having any 
     right, title, and interest in and to lands within the 
     boundaries of Naval Petroleum Reserve Numbered 1 and which 
     are subject to the unit plan contract.
       (d) Transfer of Otherwise Nontransferable Permit.--The 
     Secretary may transfer to the purchaser or purchasers (as the 
     case may be) of Naval Petroleum Reserve Numbered 1 the 
     incidental take permit regarding the reserve issued to the 
     Secretary by the United States Fish and Wildlife Service and 
     in effect on the effective date if the Secretary determines 
     that transfer of the permit is necessary to expedite the sale 
     of the reserve in a manner that maximizes the value of the 
     sale to the United States. The transferred permit shall cover 
     the identical activities, and shall be subject to the same 
     terms and conditions, as apply to the permit at the time of 
     the transfer.

     SEC. 3414. CONDITIONS ON SALE PROCESS.

       (a) Notice Regarding Sale Conditions.--The Secretary may 
     not enter into any contract for the sale of Naval Petroleum 
     Reserve Numbered 1 under section 3412 until the end of the 
     31-day period beginning on the date on which the Secretary 
     submits to the appropriate congressional committees a written 
     notification--
       (1) describing the conditions of the proposed sale; and
       (2) containing an assessment by the Secretary of whether it 
     is in the best interests of the United States to sell the 
     reserve under such conditions.
       (b) Authority to Suspend Sale.--(1) The Secretary may 
     suspend the sale of Naval Petroleum Reserve Numbered 1 under 
     section 3412 if the Secretary and the Director of the Office 
     of Management and Budget jointly determine that--
       (A) the sale is proceeding in a manner inconsistent with 
     achievement of a sale price that reflects the full value of 
     the reserve; or
       (B) a course of action other than the immediate sale of the 
     reserve is in the best interests of the United States.
       (2) Immediately after making a determination under 
     paragraph (1) to suspend the sale of Naval Petroleum Reserve 
     Numbered 1, the Secretary shall submit to the appropriate 
     congressional committees a written notification describing 
     the basis for the determination and requesting a 
     reconsideration of the merits of the sale of the reserve.
       (c) Effect of Reconsideration Notice.--After the Secretary 
     submits a notification under subsection (b), the Secretary 
     may not complete the sale of Naval Petroleum Reserve Numbered 
     1 under section 3412 or any other provision of law unless the 
     sale of the reserve is authorized in an Act of Congress 
     enacted after the date of the submission of the notification.

     SEC. 3415. TREATMENT OF STATE OF CALIFORNIA CLAIM REGARDING 
                   RESERVE.

       (a) Reservation of Funds.--After the costs incurred in the 
     conduct of the sale of Naval Petroleum Reserve Numbered 1 
     under section 3412 are deducted, nine percent of the 
     remaining proceeds from the sale of the reserve shall be 
     reserved in a contingent fund in the Treasury for payment to 
     the State of California for the Teachers' Retirement Fund of 
     the State in the event that, and to the extent that, the 
     claims of the State against the United States regarding 
     production and proceeds of sale from Naval Petroleum Reserve 
     Numbered 1 are--
       (1) settled by agreement with the United States under 
     subsection (c); or
       (2) finally resolved in favor of the State by a court of 
     competent jurisdiction, if a settlement agreement is not 
     reached.
       (b) Disposition of Funds.--In such amounts as may be 
     provided in appropriation Acts, amounts in the contingent 
     fund shall be available for paying a claim described in 
     subsection (a). After final disposition of the claims, any 
     unobligated balance in the contingent fund shall be credited 
     to the general fund of the Treasury. If no payment is made 
     from the contingent fund within 10 years after the effective 
     date, amounts in the contingent fund shall be credited to the 
     general fund of the Treasury.
       (c) Settlement Offer.--Not later than 30 days after the 
     date of the sale of Naval Petroleum Reserve Numbered 1 under 
     section 3412, the Secretary shall offer to settle all claims 
     of the State of California against the United States with 
     respect to lands in the reserve located in sections 16 and 36 
     of township 30 south, range 23 east, Mount Diablo Principal 
     Meridian, California, and production or proceeds of sale from 
     the reserve, in order to provide proper compensation for the 
     State's claims. The Secretary shall base the amount of the 
     offered settlement payment from the contingent fund on the 
     fair value for the State's claims, including the mineral 
     estate, not to exceed the amount reserved in the contingent 
     fund.
       (d) Release of Claims.--Acceptance of the settlement offer 
     made under subsection (c) shall be subject to the condition 
     that all claims against the United States by the State of 
     California for the Teachers' Retirement Fund of the State be 
     released with respect to lands in Naval Petroleum Reserve 
     Numbered 1, including sections 16 and 36 of township 30 
     south, range 23 east, Mount Diablo Principal Meridian, 
     California, or production or proceeds of sale from the 
     reserve.

     SEC. 3416. STUDY OF FUTURE OF OTHER NAVAL PETROLEUM RESERVES.

       (a) Study Required.--The Secretary of Energy shall conduct 
     a study to determine which of the following options, or 
     combinations of options, regarding the naval petroleum 
     reserves (other than Naval Petroleum Reserve Numbered 1) 
     would maximize the value of the reserves to the United 
     States:
       (1) Retention and operation of the naval petroleum reserves 
     by the Secretary under chapter 641 of title 10, United States 
     Code.
       (2) Transfer of all or a part of the naval petroleum 
     reserves to the jurisdiction of another Federal agency for 
     administration under chapter 641 of title 10, United States 
     Code.
       (3) Transfer of all or a part of the naval petroleum 
     reserves to the Department of the Interior for leasing in 
     accordance with the Mineral Leasing Act (30 U.S.C. 181 et 
     seq.) and surface management in accordance with the Federal 
     Land Policy and Management Act (43 U.S.C. 1701 et seq.).
       (4) Sale of the interest of the United States in the naval 
     petroleum reserves.
       (b) Conduct of Study.--The Secretary shall retain an 
     independent petroleum consultant to conduct the study.
       (c) Considerations Under Study.--An examination of the 
     value to be derived by the United States from the transfer or 
     sale of the naval petroleum reserves shall include an 
     assessment and estimate of the fair market value of the 
     interest of the United States in the naval petroleum 
     reserves. The assessment and estimate shall be made in a 
     manner consistent with customary property valuation practices 
     in the oil and gas industry.
       (d) Report and Recommendations Regarding Study.--Not later 
     than June 1, 1996, the Secretary shall submit to Congress a 
     report describing the results of the study and containing 
     such recommendations (including proposed legislation) as the 
     Secretary considers necessary to implement the option, or 
     combination of options, identified in the study that would 
     maximize the value of the naval petroleum reserves to the 
     United States.
                  TITLE XXXV--PANAMA CANAL COMMISSION
              Subtitle A--Authorization of Appropriations

     SEC. 3501. SHORT TITLE.

       This subtitle may be cited as the ``Panama Canal Commission 
     Authorization Act for Fiscal Year 1996''.

     SEC. 3502. AUTHORIZATION OF EXPENDITURES.

       (a) In General.--Subject to subsection (b), the Panama 
     Canal Commission is authorized to make such expenditures 
     within the limits of funds and borrowing authority available 
     to it in accordance with law, and to make such contracts and 
     commitments without regard to fiscal year limitations, as may 
     be necessary under the Panama Canal Act of 1979 (22 U.S.C. 
     3601 et seq.) for the operation, maintenance, and improvement 
     of the Panama Canal for fiscal year 1996.
       (b) Limitations.--For fiscal year 1996, the Panama Canal 
     Commission may expend from funds in the Panama Canal 
     Revolving Fund not more than $50,741,000 for administrative 
     expenses, of which--
     
[[Page H483]]

       (1) not more than $15,000 may be used for official 
     reception and representation expenses of the Supervisory 
     Board of the Commission;
       (2) not more than $10,000 may be used for official 
     reception and representation expenses of the Secretary of the 
     Commission; and
       (3) not more than $45,000 may be used for official 
     reception and representation expenses of the Administrator of 
     the Commission.
       (c) Replacement Vehicles.--Funds available to the Panama 
     Canal Commission shall be available for the purchase of not 
     to exceed 38 passenger motor vehicles (including large heavy-
     duty vehicles to be used to transport Commission personnel 
     across the isthmus of Panama) at a cost per vehicle of not 
     more than $19,500. A vehicle may be purchased with such funds 
     only as necessary to replace another passenger motor vehicle 
     of the Commission.

     SEC. 3503. EXPENDITURES IN ACCORDANCE WITH OTHER LAWS.

       Expenditures authorized under this subtitle may be made 
     only in accordance with the Panama Canal Treaties of 1977 and 
     any law of the United States implementing those treaties.
   Subtitle B--Reconstitution of Commission as Government Corporation

     SEC. 3521. SHORT TITLE.

       This subtitle may be cited as the ``Panama Canal Amendments 
     Act of 1995''.

     SEC. 3522. RECONSTITUTION OF COMMISSION AS GOVERNMENT 
                   CORPORATION.

       (a) In General.--Section 1101 of the Panama Canal Act of 
     1979 (22 U.S.C. 3611) is amended to read as follows:


    ``establishment, purposes, offices, and residence of commission

       ``Sec. 1101. (a) For the purposes of managing, operating, 
     and maintaining the Panama Canal and its complementary works, 
     installations and equipment, and of conducting operations 
     incident thereto, in accordance with the Panama Canal Treaty 
     of 1977 and related agreements, the Panama Canal Commission 
     (hereinafter in this Act referred to as the `Commission') is 
     established as a wholly owned government corporation (as that 
     term is used in chapter 91 of title 31, United States Code) 
     within the executive branch of the Government of the United 
     States. The authority of the President with respect to the 
     Commission shall be exercised through the Secretary of 
     Defense.
       ``(b) The principal office of the Commission shall be 
     located in the Republic of Panama in one of the areas made 
     available for use of the United States under the Panama Canal 
     Treaty of 1977 and related agreements, but the Commission may 
     establish branch offices in such other places as it considers 
     necessary or appropriate for the conduct of its business. 
     Within the meaning of the laws of the United States relating 
     to venue in civil actions, the Commission is an inhabitant 
     and resident of the District of Columbia and the eastern 
     judicial district of Louisiana.''.
       (b) Clerical Amendment.--The item relating to such section 
     in the table of contents in section 1 of such Act is amended 
     to read as follows:

``1101. Establishment, Purposes, Offices, and Residence of 
              Commission.''.

     SEC. 3523. SUPERVISORY BOARD.

       Section 1102 of the Panama Canal Act of 1979 (22 U.S.C. 
     3612) is amended by striking out so much as precedes 
     subsection (b) and inserting in lieu thereof the following:


                          ``supervisory board

       ``Sec. 1102. (a) The Commission shall be supervised by a 
     Board composed of nine members, one of whom shall be the 
     Secretary of Defense or an officer of the Department of 
     Defense designated by the Secretary. Not less than five 
     members of the Board shall be nationals of the United States 
     and the remaining members of the Board shall be nationals of 
     the Republic of Panama. Three members of the Board who are 
     nationals of the United States shall hold no other office in, 
     and shall not be employed by, the Government of the United 
     States, and shall be chosen for the independent perspective 
     they can bring to the Commission's affairs. Members of the 
     Board who are nationals of the United States shall cast their 
     votes as directed by the Secretary of Defense or a designee 
     of the Secretary of Defense.''.

     SEC. 3524. GENERAL AND SPECIFIC POWERS OF COMMISSION.

       (a) In General.--The Panama Canal Act of 1979 (22 U.S.C. 
     3601 et seq.) is amended by inserting after section 1102 the 
     following new sections:


                     ``general powers of commission

       ``Sec. 1102a. (a) The Commission may adopt, alter, and use 
     a corporate seal, which shall be judicially noticed.
       ``(b) The Commission may by action of the Board of 
     Directors adopt, amend, and repeal bylaws governing the 
     conduct of its general business and the performance of the 
     powers and duties granted to or imposed upon it by law.
       ``(c) The Commission may sue and be sued in its corporate 
     name, except that--
       ``(1) the amenability of the Commission to suit is limited 
     by Article VIII of the Panama Canal Treaty of 1977, section 
     1401 of this Act, and otherwise by law;
       ``(2) an attachment, garnishment, or similar process may 
     not be issued against salaries or other moneys owed by the 
     Commission to its employees except as provided by section 
     5520a of title 5, United States Code, and sections 459, 461, 
     and 462 of the Social Security Act (42 U.S.C. 659, 661, 662), 
     or as otherwise specifically authorized by the laws of the 
     United States; and
       ``(3) the Commission is exempt from the payment of interest 
     on claims and judgments.
       ``(d) The Commission may enter into contracts, leases, 
     agreements, or other transactions.
       ``(e) The Commission--
       ``(1) may determine the character of, and necessity for, 
     its obligations and expenditures and the manner in which they 
     shall be incurred, allowed, and paid; and
       ``(2) may incur, allow, and pay its obligations and 
     expenditures, subject to pertinent provisions of law 
     generally applicable to Government corporations.
       ``(f) The Commission shall have the priority of the 
     Government of the United States in the payment of debts out 
     of bankrupt estates.
       ``(g) The authority of the Commission under this section 
     and section 1102B is subject to the Panama Canal Treaty of 
     1977 and related agreements, and to chapter 91 of title 31, 
     United States Code.

                    ``specific powers of commission

       ``Sec. 1102b. (a) The Commission may manage, operate, and 
     maintain the Panama Canal.
       ``(b) The Commission may construct or acquire, establish, 
     maintain, and operate such activities, facilities, and 
     appurtenances as necessary and appropriate for the 
     accomplishment of the purposes of this Act, including the 
     following:
       ``(1) Docks, wharves, piers, and other shoreline 
     facilities.
       ``(2) Shops and yards.
       ``(3) Marine railways, salvage and towing facilities, fuel-
     handling facilities, and motor transportation facilities.
       ``(4) Power systems, water systems, and a telephone system.
       ``(5) Construction facilities.
       ``(6) Living quarters and other buildings.
       ``(7) Warehouses, storehouses, a printing plant, and 
     manufacturing, processing, or service facilities in 
     connection therewith.
       ``(8) Recreational facilities.
       ``(c) The Commission may use the United States mails in the 
     same manner and under the same conditions as the executive 
     departments of the Federal Government.
       ``(d) The Commission may take such actions as are necessary 
     or appropriate to carry out the powers specifically conferred 
     upon it.''.
       (b) Clerical Amendment.--The table of contents in section 1 
     of such Act is amended by inserting after the item relating 
     to section 1102 the following new items:
``1102a. General powers of Commission.
``1102b. Specific powers of Commission.''.

     SEC. 3525. CONGRESSIONAL REVIEW OF BUDGET.

       Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 
     3712) is amended--
       (1) in subsection (c)--
       (A) by striking out ``and subject to paragraph (2)'' in 
     paragraph (1);
       (B) by striking out paragraph (2); and
       (C) by redesignating paragraph (3) as paragraph (2); and
       (2) by striking out subsection (e) and inserting in lieu 
     thereof the following new subsection (e):
       ``(e) In accordance with section 9104 of title 31, United 
     States Code, Congress shall review the annual budget of the 
     Commission.''.

     SEC. 3526. AUDITS.

       (a) In General.--Section 1313 of the Panama Canal Act of 
     1979 (22 U.S.C. 3723) is amended--
       (1) by striking out the heading for the section and 
     inserting in lieu thereof the following: ``audits'';
       (2) in subsection (a)--
       (A) by striking out ``Financial transactions'' and 
     inserting in lieu thereof ``Notwithstanding any other 
     provision of law, and subject to subsection (d), financial 
     transactions'';
       (B) by striking out ``pursuant to the Accounting and 
     Auditing Act of 1950 (31 U.S.C. 65 et seq.)'';
       (C) by striking out ``audit pursuant to such Act'' in the 
     second sentence and inserting in lieu thereof ``such audit'';
       (D) by striking out ``An audit pursuant to such Act'' in 
     the last sentence and inserting in lieu thereof ``Any such 
     audit''; and
       (E) by adding at the end the following new sentence: ``An 
     audit performed under this section is subject to the 
     requirements of paragraphs (2), (3), and (5) of section 
     9105(a) of title 31, United States Code.'';
       (3) in subsection (b), by striking out ``The Comptroller 
     General'' in the first sentence and inserting in lieu thereof 
     ``Subject to subsection (d), the Comptroller General''; and
       (4) by adding at the end the following new subsections:
       ``(d) At the discretion of the Board provided for in 
     section 1102, the Commission may hire independent auditors to 
     perform, in lieu of the Comptroller General, the audit and 
     reporting functions prescribed in subsections (a) and (b).
       ``(e) In addition to auditing the financial statements of 
     the Commission, the Comptroller General (or the independent 
     auditor if one is employed pursuant to subsection (d)) shall, 
     in accordance with standards for an examination of a 
     financial forecast established by the American Institute 
     of Certified Public Accountants, examine and report on the 
     Commission's financial forecast that it will be in a 
     position to meet its financial liabilities on December 31, 
     1999.''.
     
[[Page H484]]

       (b) Clerical Amendment.--The item relating to such section 
     in the table of contents in section 1 of such Act is amended 
     to read as follows:

``1313. Audits.''.

     SEC. 3527. PRESCRIPTION OF MEASUREMENT RULES AND RATES OF 
                   TOLLS.

       Section 1601 of the Panama Canal Act of 1979 (22 U.S.C. 
     3791) is amended to read as follows:


         ``prescription of measurement rules and rates of tolls

       ``Sec. 1601. The Commission may, subject to the provisions 
     of this Act, prescribe and from time to time change--
       ``(1) the rules for the measurement of vessels for the 
     Panama Canal; and
       ``(2) the tolls that shall be levied for use of the Panama 
     Canal.''.

     SEC. 3528. PROCEDURES FOR CHANGES IN RULES OF MEASUREMENT AND 
                   RATES OF TOLLS.

       Section 1604 of the Panama Canal Act of 1979 (22 U.S.C. 
     3794) is amended--
       (1) in subsection (a), by striking out ``1601(a)'' in the 
     first sentence and inserting in lieu thereof ``1601'';
       (2) by striking out subsection (c) and inserting in lieu 
     thereof the following new subsection (c):
       ``(c) After the proceedings have been conducted pursuant to 
     subsections (a) and (b), the Commission may change the rules 
     of measurement or rates of tolls, as the case may be. The 
     Commission shall publish notice of any such change in the 
     Federal Register not less than 30 days before the effective 
     date of the change.''; and
       (3) by striking out subsections (d) and (e) and 
     redesignating subsection (f) as subsection (d).

     SEC. 3529. MISCELLANEOUS TECHNICAL AMENDMENTS.

       The Panama Canal Act of 1979 is amended--
       (1) in section 1205 (22 U.S.C. 3645), by striking out 
     ``appropriation'' in the last sentence and inserting in lieu 
     thereof ``fund'';
       (2) in section 1303 (22 U.S.C. 3713), by striking out ``The 
     authority of this section may not be used for administrative 
     expenses.'';
       (3) in section 1321(d) (22 U.S.C. 3731(d)), by striking out 
     ``appropriations or'' in the second sentence;
       (4) in section 1401(c) (22 U.S.C. 3761(c)), by striking out 
     ``appropriated for or'' in the first sentence;
       (5) in section 1415 (22 U.S.C. 3775), by striking out 
     ``appropriated or'' in the second sentence; and
       (6) in section 1416 (22 U.S.C. 3776), by striking out 
     ``appropriated or'' in the third sentence.

     SEC. 3530. CONFORMING AMENDMENT TO TITLE 31, UNITED STATES 
                   CODE.

       Section 9101(3) of title 31, United States Code, is amended 
     by adding at the end the following:
       ``(P) the Panama Canal Commission.''.
                 DIVISION D--FEDERAL ACQUISITION REFORM

     SEC. 4001. SHORT TITLE.

       This division may be cited as the ``Federal Acquisition 
     Reform Act of 1996''.
                         TITLE XLI--COMPETITION

     SEC. 4101. EFFICIENT COMPETITION.

       (a) Armed Services Acquisitions.--Section 2304 of title 10, 
     United States Code, is amended--
       (1) by redesignating subsection (j) as subsection (k); and
       (2) by inserting after subsection (i) the following new 
     subsection (j):
       ``(j) The Federal Acquisition Regulation shall ensure that 
     the requirement to obtain full and open competition is 
     implemented in a manner that is consistent with the need to 
     efficiently fulfill the Government's requirements.''.
       (b) Civilian Agency Acquisitions.--Section 303 of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253) is amended--
       (1) by redesignating subsection (h) as subsection (i); and
       (2) by inserting after subsection (g) the following new 
     subsection (h):
       ``(h) The Federal Acquisition Regulation shall ensure that 
     the requirement to obtain full and open competition is 
     implemented in a manner that is consistent with the need to 
     efficiently fulfill the Government's requirements.''.
       (c) Revisions to Notice Thresholds.--Section 18(a)(1)(B) of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 
     416(a)(1)(B)) is amended--
       (A) by striking out ``subsection (f)--'' and all that 
     follows through the end of the subparagraph and inserting in 
     lieu thereof ``subsection (b); and''; and
       (B) by inserting after ``property or services'' the 
     following: ``for a price expected to exceed $10,000, but not 
     to exceed $25,000,''.

     SEC. 4102. EFFICIENT APPROVAL PROCEDURES.

       (a) Armed Services Acquisitions.--Section 2304(f)(1)(B) of 
     title 10, United States Code, is amended--
       (1) in clause (i)--
       (A) by striking out ``$100,000 (but equal to or less than 
     $1,000,000)'' and inserting in lieu thereof ``$500,000 (but 
     equal to or less than $10,000,000)''; and
       (B) by striking out ``(ii), (iii), or (iv)'' and inserting 
     in lieu thereof ``(ii) or (iii)'';
       (2) in clause (ii)--
       (A) by striking out ``$1,000,000 (but equal to or less than 
     $10,000,000)'' and inserting in lieu thereof ``$10,000,000 
     (but equal to or less than $50,000,000)''; and
       (B) by adding ``or'' at the end;
       (3) by striking out clause (iii); and
       (4) by redesignating clause (iv) as clause (iii).
       (b) Civilian Agency Acquisitions.--Section 303(f)(1)(B) of 
     the Federal Property and Administrative Services Act of 1949 
     (41 U.S.C. 253(f)(1)(B)) is amended--
       (1) in clause (i)--
       (A) by striking out ``$100,000 (but equal to or less than 
     $1,000,000)'' and inserting in lieu thereof ``$500,000 (but 
     equal to or less than $10,000,000)''; and
       (B) by striking out ``(ii), (iii), or (iv);'' and inserting 
     in lieu thereof ``(ii) or (iii); and'';
       (2) in clause (ii)--
       (A) by striking out ``$1,000,000 (but equal to or less than 
     $10,000,000)'' and inserting in lieu thereof ``$10,000,000 
     (but equal to or less than $50,000,000)''; and
       (B) by striking out the semicolon after ``civilian'' and 
     inserting in lieu thereof a comma; and
       (3) in clause (iii), by striking out ``$10,000,000'' and 
     inserting in lieu thereof ``$50,000,000''.

     SEC. 4103. EFFICIENT COMPETITIVE RANGE DETERMINATIONS.

       (a) Armed Services Acquisitions.--Paragraph (4) of 2305(b) 
     of title 10, United States Code, is amended--
       (1) in subparagraph (C), by striking out ``(C)'', by 
     transferring the text to the end of subparagraph (B), and in 
     that text by striking out ``Subparagraph (B)'' and inserting 
     in lieu thereof ``This subparagraph'';
       (2) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (3) by inserting before subparagraph (C) (as so 
     redesignated) the following new subparagraph (B):
       ``(B) If the contracting officer determines that the number 
     of offerors that would otherwise be included in the 
     competitive range under subparagraph (A)(i) exceeds the 
     number at which an efficient competition can be conducted, 
     the contracting officer may limit the number of proposals in 
     the competitive range, in accordance with the criteria 
     specified in the solicitation, to the greatest number that 
     will permit an efficient competition among the offerors rated 
     most highly in accordance with such criteria.''.
       (b) Civilian Agency Acquisitions.--Section 303B(d) of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253b(d)) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting before paragraph (3) (as so redesignated) 
     the following new paragraph (2):
       ``(2) If the contracting officer determines that the number 
     of offerors that would otherwise be included in the 
     competitive range under paragraph (1)(A) exceeds the number 
     at which an efficient competition can be conducted, the 
     contracting officer may limit the number of proposals in the 
     competitive range, in accordance with the criteria specified 
     in the solicitation, to the greatest number that will permit 
     an efficient competition among the offerors rated most highly 
     in accordance with such criteria.''.

     SEC. 4104. PREAWARD DEBRIEFINGS.

       (a) Armed Services Acquisitions.--Section 2305(b) of title 
     10, United States Code, is amended--
       (1) by striking out subparagraph (F) of paragraph (5);
       (2) by redesignating paragraph (6) as paragraph (9); and
       (3) by inserting after paragraph (5) the following new 
     paragraphs:
       ``(6)(A) When the contracting officer excludes an offeror 
     submitting a competitive proposal from the competitive range 
     (or otherwise excludes such an offeror from further 
     consideration prior to the final source selection decision), 
     the excluded offeror may request in writing, within three 
     days after the date on which the excluded offeror receives 
     notice of its exclusion, a debriefing prior to award. The 
     contracting officer shall make every effort to debrief the 
     unsuccessful offeror as soon as practicable but may refuse 
     the request for a debriefing if it is not in the best 
     interests of the Government to conduct a debriefing at that 
     time.
       ``(B) The contracting officer is required to debrief an 
     excluded offeror in accordance with paragraph (5) of this 
     section only if that offeror requested and was refused a 
     preaward debriefing under subparagraph (A) of this paragraph.
       ``(C) The debriefing conducted under this subsection shall 
     include--
       ``(i) the executive agency's evaluation of the significant 
     elements in the offeror's offer;
       ``(ii) a summary of the rationale for the offeror's 
     exclusion; and
       ``(iii) reasonable responses to relevant questions posed by 
     the debriefed offeror as to whether source selection 
     procedures set forth in the solicitation, applicable 
     regulations, and other applicable authorities were followed 
     by the executive agency.
       ``(D) The debriefing conducted pursuant to this subsection 
     may not disclose the number or identity of other offerors and 
     shall not disclose information about the content, ranking, or 
     evaluation of other offerors' proposals.
       ``(7) The contracting officer shall include a summary of 
     any debriefing conducted under paragraph (5) or (6) in the 
     contract file.
       ``(8) The Federal Acquisition Regulation shall include a 
     provision encouraging the use of alternative dispute 
     resolution techniques 

[[Page H485]]
     to provide informal, expeditious, and inexpensive procedures for an 
     offeror to consider using before filing a protest, prior to 
     the award of a contract, of the exclusion of the offeror from 
     the competitive range (or otherwise from further 
     consideration) for that contract.''.
       (b) Civilian Agency Acquisitions.--Section 303B of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253b) is amended--
       (1) by striking out paragraph (6) of subsection (e);
       (2) by redesignating subsections (f), (g), (h), and (i) as 
     subsections (i), (j), (k), and (l), respectively; and
       (3) by inserting after subsection (e) the following new 
     subsections:
       ``(f)(1) When the contracting officer excludes an offeror 
     submitting a competitive proposal from the competitive range 
     (or otherwise excludes such an offeror from further 
     consideration prior to the final source selection decision), 
     the excluded offeror may request in writing, within 3 days 
     after the date on which the excluded offeror receives notice 
     of its exclusion, a debriefing prior to award. The 
     contracting officer shall make every effort to debrief the 
     unsuccessful offeror as soon as practicable but may refuse 
     the request for a debriefing if it is not in the best 
     interests of the Government to conduct a debriefing at that 
     time.
       ``(2) The contracting officer is required to debrief an 
     excluded offeror in accordance with subsection (e) of this 
     section only if that offeror requested and was refused a 
     preaward debriefing under paragraph (1) of this 
     subsection.
       ``(3) The debriefing conducted under this subsection shall 
     include--
       ``(A) the executive agency's evaluation of the significant 
     elements in the offeror's offer;
       ``(B) a summary of the rationale for the offeror's 
     exclusion; and
       ``(C) reasonable responses to relevant questions posed by 
     the debriefed offeror as to whether source selection 
     procedures set forth in the solicitation, applicable 
     regulations, and other applicable authorities were followed 
     by the executive agency.
       ``(4) The debriefing conducted pursuant to this subsection 
     may not disclose the number or identity of other offerors and 
     shall not disclose information about the content, ranking, or 
     evaluation of other offerors' proposals.
       ``(g) The contracting officer shall include a summary of 
     any debriefing conducted under subsection (e) or (f) in the 
     contract file.
       ``(h) The Federal Acquisition Regulation shall include a 
     provision encouraging the use of alternative dispute 
     resolution techniques to provide informal, expeditious, and 
     inexpensive procedures for an offeror to consider using 
     before filing a protest, prior to the award of a contract, of 
     the exclusion of the offeror from the competitive range (or 
     otherwise from further consideration) for that contract.''.

     SEC. 4105. DESIGN-BUILD SELECTION PROCEDURES.

       (a) Armed Services Acquisitions.--(1) Chapter 137 of title 
     10, United States Code, is amended by inserting after section 
     2305 the following new section:

     ``Sec. 2305a. Design-build selection procedures

       ``(a) Authorization.--Unless the traditional acquisition 
     approach of design-bid-build established under the Brooks 
     Architect-Engineers Act (41 U.S.C. 541 et seq.) is used or 
     another acquisition procedure authorized by law is used, the 
     head of an agency shall use the two-phase selection 
     procedures authorized in this section for entering into a 
     contract for the design and construction of a public 
     building, facility, or work when a determination is made 
     under subsection (b) that the procedures are appropriate for 
     use.
       ``(b) Criteria for Use.--A contracting officer shall make a 
     determination whether two-phase selection procedures are 
     appropriate for use for entering into a contract for the 
     design and construction of a public building, facility, or 
     work when the contracting officer anticipates that three or 
     more offers will be received for such contract, design work 
     must be performed before an offeror can develop a price or 
     cost proposal for such contract, the offeror will incur a 
     substantial amount of expense in preparing the offer, and the 
     contracting officer has considered information such as the 
     following:
       ``(1) The extent to which the project requirements have 
     been adequately defined.
       ``(2) The time constraints for delivery of the project.
       ``(3) The capability and experience of potential 
     contractors.
       ``(4) The suitability of the project for use of the two-
     phase selection procedures.
       ``(5) The capability of the agency to manage the two-phase 
     selection process.
       ``(6) Other criteria established by the agency.
       ``(c) Procedures Described.--Two-phase selection procedures 
     consist of the following:
       ``(1) The agency develops, either in-house or by contract, 
     a scope of work statement for inclusion in the solicitation 
     that defines the project and provides prospective offerors 
     with sufficient information regarding the Government's 
     requirements (which may include criteria and preliminary 
     design, budget parameters, and schedule or delivery 
     requirements) to enable the offerors to submit proposals 
     which meet the Government's needs. If the agency contracts 
     for development of the scope of work statement, the agency 
     shall contract for architectural and engineering services as 
     defined by and in accordance with the Brooks Architect-
     Engineers Act (40 U.S.C. 541 et seq.).
       ``(2) The contracting officer solicits phase-one proposals 
     that--
       ``(A) include information on the offeror's--
       ``(i) technical approach; and
       ``(ii) technical qualifications; and
       ``(B) do not include--
       ``(i) detailed design information; or
       ``(ii) cost or price information.
       ``(3) The evaluation factors to be used in evaluating 
     phase-one proposals are stated in the solicitation and 
     include specialized experience and technical competence, 
     capability to perform, past performance of the offeror's team 
     (including the architect-engineer and construction members of 
     the team) and other appropriate factors, except that cost-
     related or price-related evaluation factors are not 
     permitted. Each solicitation establishes the relative 
     importance assigned to the evaluation factors and subfactors 
     that must be considered in the evaluation of phase-one 
     proposals. The agency evaluates phase-one proposals on the 
     basis of the phase-one evaluation factors set forth in the 
     solicitation.
       ``(4) The contracting officer selects as the most highly 
     qualified the number of offerors specified in the 
     solicitation to provide the property or services under the 
     contract and requests the selected offerors to submit phase-
     two competitive proposals that include technical proposals 
     and cost or price information. Each solicitation establishes 
     with respect to phase two--
       ``(A) the technical submission for the proposal, including 
     design concepts or proposed solutions to requirements 
     addressed within the scope of work (or both), and
       ``(B) the evaluation factors and subfactors, including cost 
     or price, that must be considered in the evaluations of 
     proposals in accordance with paragraphs (2), (3), and (4) of 
     section 2305(a) of this title.
     The contracting officer separately evaluates the submissions 
     described in subparagraphs (A) and (B).
       ``(5) The agency awards the contract in accordance with 
     section 2305(b)(4) of this title.
       ``(d) Solicitation to State Number of Offerors To Be 
     Selected for Phase Two Requests for Competitive Proposals.--A 
     solicitation issued pursuant to the procedures described in 
     subsection (c) shall state the maximum number of offerors 
     that are to be selected to submit competitive proposals 
     pursuant to subsection (c)(4). The maximum number specified 
     in the solicitation shall not exceed 5 unless the agency 
     determines with respect to an individual solicitation that a 
     specified number greater than 5 is in the Government's 
     interest and is consistent with the purposes and objectives 
     of the two-phase selection process.
       ``(e) Requirement for Guidance and Regulations.--The 
     Federal Acquisition Regulation shall include guidance--
       ``(1) regarding the factors that may be considered in 
     determining whether the two-phase contracting procedures 
     authorized by subsection (a) are appropriate for use in 
     individual contracting situations;
       ``(2) regarding the factors that may be used in selecting 
     contractors; and
       ``(3) providing for a uniform approach to be used 
     Government-wide.''.
       (2) The table of sections at the beginning of chapter 137 
     of such title is amended by adding after the item relating to 
     section 2305 the following new item:

``2305a. Design-build selection procedures.''.

       (b) Civilian Agency Acquisitions.--(1) Title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 251 et seq.) is amended by inserting after section 
     303L the following new section:

     ``SEC. 303M. DESIGN-BUILD SELECTION PROCEDURES.

       ``(a) Authorization.--Unless the traditional acquisition 
     approach of design-bid-build established under the Brooks 
     Architect-Engineers Act (title IX of this Act) is used or 
     another acquisition procedure authorized by law is used, the 
     head of an executive agency shall use the two-phase selection 
     procedures authorized in this section for entering into a 
     contract for the design and construction of a public 
     building, facility, or work when a determination is made 
     under subsection (b) that the procedures are appropriate for 
     use.
       ``(b) Criteria for Use.--A contracting officer shall make a 
     determination whether two-phase selection procedures are 
     appropriate for use for entering into a contract for the 
     design and construction of a public building, facility, or 
     work when the contracting officer anticipates that three or 
     more offers will be received for such contract, design work 
     must be performed before an offeror can develop a price or 
     cost proposal for such contract, the offeror will incur a 
     substantial amount of expense in preparing the offer, and the 
     contracting officer has considered information such as the 
     following:
       ``(1) The extent to which the project requirements have 
     been adequately defined.
       ``(2) The time constraints for delivery of the project.
       ``(3) The capability and experience of potential 
     contractors.
       ``(4) The suitability of the project for use of the two-
     phase selection procedures.
       ``(5) The capability of the agency to manage the two-phase 
     selection process.
       ``(6) Other criteria established by the agency.
       ``(c) Procedures Described.--Two-phase selection procedures 
     consist of the following:
     
[[Page H486]]

       ``(1) The agency develops, either in-house or by contract, 
     a scope of work statement for inclusion in the solicitation 
     that defines the project and provides prospective offerors 
     with sufficient information regarding the Government's 
     requirements (which may include criteria and preliminary 
     design, budget parameters, and schedule or delivery 
     requirements) to enable the offerors to submit proposals 
     which meet the Government's needs. If the agency contracts 
     for development of the scope of work statement, the agency 
     shall contract for architectural and engineering services as 
     defined by and in accordance with the Brooks Architect-
     Engineers Act (40 U.S.C. 541 et seq.).
       ``(2) The contracting officer solicits phase-one proposals 
     that--
       ``(A) include information on the offeror's--
       ``(i) technical approach; and
       ``(ii) technical qualifications; and
       ``(B) do not include--
       ``(i) detailed design information; or
       ``(ii) cost or price information.
       ``(3) The evaluation factors to be used in evaluating 
     phase-one proposals are stated in the solicitation and 
     include specialized experience and technical competence, 
     capability to perform, past performance of the offeror's team 
     (including the architect-engineer and construction members of 
     the team) and other appropriate factors, except that cost-
     related or price-related evaluation factors are not 
     permitted. Each solicitation establishes the relative 
     importance assigned to the evaluation factors and subfactors 
     that must be considered in the evaluation of phase-one 
     proposals. The agency evaluates phase-one proposals on the 
     basis of the phase-one evaluation factors set forth in the 
     solicitation.
       ``(4) The contracting officer selects as the most highly 
     qualified the number of offerors specified in the 
     solicitation to provide the property or services under the 
     contract and requests the selected offerors to submit phase-
     two competitive proposals that include technical proposals 
     and cost or price information. Each solicitation establishes 
     with respect to phase two--
       ``(A) the technical submission for the proposal, including 
     design concepts or proposed solutions to requirements 
     addressed within the scope of work (or both), and
       ``(B) the evaluation factors and subfactors, including cost 
     or price, that must be considered in the evaluations of 
     proposals in accordance with subsections (b), (c), and (d) 
     of section 303A.
     The contracting officer separately evaluates the submissions 
     described in subparagraphs (A) and (B).
       ``(5) The agency awards the contract in accordance with 
     section 303B of this title.
       ``(d) Solicitation to State Number of Offerors To Be 
     Selected for Phase Two Requests for Competitive Proposals.--A 
     solicitation issued pursuant to the procedures described in 
     subsection (c) shall state the maximum number of offerors 
     that are to be selected to submit competitive proposals 
     pursuant to subsection (c)(4). The maximum number specified 
     in the solicitation shall not exceed 5 unless the agency 
     determines with respect to an individual solicitation that a 
     specified number greater than 5 is in the Government's 
     interest and is consistent with the purposes and objectives 
     of the two-phase selection process.
       ``(e) Requirement for Guidance and Regulations.--The 
     Federal Acquisition Regulation shall include guidance--
       ``(1) regarding the factors that may be considered in 
     determining whether the two-phase contracting procedures 
     authorized by subsection (a) are appropriate for use in 
     individual contracting situations;
       ``(2) regarding the factors that may be used in selecting 
     contractors; and
       ``(3) providing for a uniform approach to be used 
     Government-wide.''.
       (2) The table of sections at the beginning of such Act is 
     amended by inserting after the item relating to section 303L 
     the following new item:

``Sec. 303M. Design-build selection procedures.''.
                      TITLE XLII--COMMERCIAL ITEMS

     SEC. 4201. COMMERCIAL ITEM EXCEPTION TO REQUIREMENT FOR 
                   CERTIFIED COST OR PRICING DATA.

       (a) Armed Services Acquisitions.--(1) Subsections (b), (c), 
     and (d) of section 2306a of title 10, United States Code, are 
     amended to read as follows:
       ``(b) Exceptions.--
       ``(1) In general.--Submission of certified cost or pricing 
     data shall not be required under subsection (a) in the case 
     of a contract, a subcontract, or modification of a contract 
     or subcontract--
       ``(A) for which the price agreed upon is based on--
       ``(i) adequate price competition; or
       ``(ii) prices set by law or regulation;
       ``(B) for the acquisition of a commercial item; or
       ``(C) in an exceptional case when the head of the procuring 
     activity, without delegation, determines that the 
     requirements of this section may be waived and justifies in 
     writing the reasons for such determination.
       ``(2) Modifications of contracts and subcontracts for 
     commercial items.--In the case of a modification of a 
     contract or subcontract for a commercial item that is not 
     covered by the exception to the submission of certified cost 
     or pricing data in paragraph (1)(A) or (1)(B), submission of 
     certified cost or pricing data shall not be required under 
     subsection (a) if--
       ``(A) the contract or subcontract being modified is a 
     contract or subcontract for which submission of certified 
     cost or pricing data may not be required by reason of 
     paragraph (1)(A) or (1)(B); and
       ``(B) the modification would not change the contract or 
     subcontract, as the case may be, from a contract or 
     subcontract for the acquisition of a commercial item to a 
     contract or subcontract for the acquisition of an item other 
     than a commercial item.
       ``(c) Cost or Pricing Data on Below-Threshold Contracts.--
       ``(1) Authority to require submission.--Subject to 
     paragraph (2), when certified cost or pricing data are not 
     required to be submitted by subsection (a) for a contract, 
     subcontract, or modification of a contract or subcontract, 
     such data may nevertheless be required to be submitted by the 
     head of the procuring activity, but only if the head of the 
     procuring activity determines that such data are necessary 
     for the evaluation by the agency of the reasonableness of the 
     price of the contract, subcontract, or modification of a 
     contract or subcontract. In any case in which the head of the 
     procuring activity requires such data to be submitted under 
     this subsection, the head of the procuring activity shall 
     justify in writing the reason for such requirement.
       ``(2) Exception.--The head of the procuring activity may 
     not require certified cost or pricing data to be submitted 
     under this paragraph for any contract or subcontract, or 
     modification of a contract or subcontract, covered by the 
     exceptions in subparagraph (A) or (B) of subsection (b)(1).
       ``(3) Delegation of authority prohibited.--The head of a 
     procuring activity may not delegate functions under this 
     paragraph.
       ``(d) Submission of Other Information.--
       ``(1) Authority to require submission.--When certified cost 
     or pricing data are not required to be submitted under this 
     section for a contract, subcontract, or modification of a 
     contract or subcontract, the contracting officer shall 
     require submission of data other than certified cost or 
     pricing data to the extent necessary to determine the 
     reasonableness of the price of the contract, subcontract, or 
     modification of the contract or subcontract. Except in the 
     case of a contract or subcontract covered by the exceptions 
     in subsection (b)(1)(A), the data submitted shall include, at 
     a minimum, appropriate information on the prices at which the 
     same item or similar items have previously been sold that is 
     adequate for evaluating the reasonableness of the price 
     for the procurement.
       ``(2) Limitations on authority.--The Federal Acquisition 
     Regulation shall include the following provisions regarding 
     the types of information that contracting officers may 
     require under paragraph (1):
       ``(A) Reasonable limitations on requests for sales data 
     relating to commercial items.
       ``(B) A requirement that a contracting officer limit, to 
     the maximum extent practicable, the scope of any request for 
     information relating to commercial items from an offeror to 
     only that information that is in the form regularly 
     maintained by the offeror in commercial operations.
       ``(C) A statement that any information received relating to 
     commercial items that is exempt from disclosure under section 
     552(b) of title 5 shall not be disclosed by the Federal 
     Government.''.
       (2) Section 2306a of such title is further amended--
       (A) by striking out subsection (h); and
       (B) by redesignating subsection (i) as subsection (h).
       (b) Civilian Agency Acquisitions.--(1) Subsections (b), (c) 
     and (d) of section 304A of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 254b) are 
     amended to read as follows:
       ``(b) Exceptions.--
       ``(1) In general.--Submission of certified cost or pricing 
     data shall not be required under subsection (a) in the case 
     of a contract, a subcontract, or a modification of a contract 
     or subcontract--
       ``(A) for which the price agreed upon is based on--
       ``(i) adequate price competition; or
       ``(ii) prices set by law or regulation;
       ``(B) for the acquisition of a commercial item; or
       ``(C) in an exceptional case when the head of the procuring 
     activity, without delegation, determines that the 
     requirements of this section may be waived and justifies in 
     writing the reasons for such determination.
       ``(2) Modifications of contracts and subcontracts for 
     commercial items.--In the case of a modification of a 
     contract or subcontract for a commercial item that is not 
     covered by the exception to the submission of certified cost 
     or pricing data in paragraph (1)(A) or (1)(B), submission of 
     certified cost or pricing data shall not be required under 
     subsection (a) if--
       ``(A) the contract or subcontract being modified is a 
     contract or subcontract for which submission of certified 
     cost or pricing data may not be required by reason of 
     paragraph (1)(A) or (1)(B); and
       ``(B) the modification would not change the contract or 
     subcontract, as the case may be, from a contract or 
     subcontract for the acquisition of a commercial item to a 
     contract or subcontract for the acquisition of an item other 
     than a commercial item.
       ``(c) Cost or Pricing Data on Below-Threshold Contracts.--
       ``(1) Authority to require submission.--Subject to 
     paragraph (2), when certified cost 

[[Page H487]]
     or pricing data are not required to be submitted by subsection (a) for 
     a contract, subcontract, or modification of a contract or 
     subcontract, such data may nevertheless be required to be 
     submitted by the head of the procuring activity, but only if 
     the head of the procuring activity determines that such data 
     are necessary for the evaluation by the agency of the 
     reasonableness of the price of the contract, subcontract, or 
     modification of a contract or subcontract. In any case in 
     which the head of the procuring activity requires such data 
     to be submitted under this subsection, the head of the 
     procuring activity shall justify in writing the reason for 
     such requirement.
       ``(2) Exception.--The head of the procuring activity may 
     not require certified cost or pricing data to be submitted 
     under this paragraph for any contract or subcontract, or 
     modification of a contract or subcontract, covered by the 
     exceptions in subparagraph (A) or (B) of subsection (b)(1).
       ``(3) Delegation of authority prohibited.--The head of a 
     procuring activity may not delegate the functions under this 
     paragraph.
       ``(d) Submission of Other Information.--
       ``(1) Authority to require submission.--When certified cost 
     or pricing data are not required to be submitted under this 
     section for a contract, subcontract, or modification of a 
     contract or subcontract, the contracting officer shall 
     require submission of data other than certified cost or 
     pricing data to the extent necessary to determine the 
     reasonableness of the price of the contract, subcontract, or 
     modification of the contract or subcontract. Except in the 
     case of a contract or subcontract covered by the exceptions 
     in subsection (b)(1)(A), the data submitted shall include, at 
     a minimum, appropriate information on the prices at which the 
     same item or similar items have previously been sold that is 
     adequate for evaluating the reasonableness of the price for 
     the procurement.
       ``(2) Limitations on authority.--The Federal Acquisition 
     Regulation shall include the following provisions regarding 
     the types of information that contracting officers may 
     require under paragraph (1):
       ``(A) Reasonable limitations on requests for sales data 
     relating to commercial items.
       ``(B) A requirement that a contracting officer limit, to 
     the maximum extent practicable, the scope of any request for 
     information relating to commercial items from an offeror to 
     only that information that is in the form regularly 
     maintained by the offeror in commercial operations.
       ``(C) A statement that any information received relating to 
     commercial items that is exempt from disclosure under section 
     552(b) of title 5 shall not be disclosed by the Federal 
     Government.''.
       (2) Section 304A of such Act is further amended--
       (A) by striking out subsection (h); and
       (B) by redesignating subsection (i) as subsection (h).

     SEC. 4202. APPLICATION OF SIMPLIFIED PROCEDURES TO CERTAIN 
                   COMMERCIAL ITEMS.

       (a) Armed Services Acquisitions.--(1) Section 2304(g) of 
     title 10, United States Code, is amended--
       (A) in paragraph (1), by striking out ``shall provide for 
     special simplified procedures for purchases of'' and all that 
     follows through the end of the paragraph and inserting in 
     lieu thereof the following: ``shall provide for--
       ``(A) special simplified procedures for purchases of 
     property and services for amounts not greater than the 
     simplified acquisition threshold; and
       ``(B) special simplified procedures for purchases of 
     property and services for amounts greater than the simplified 
     acquisition threshold but not greater than $5,000,000 with 
     respect to which the contracting officer reasonably expects, 
     based on the nature of the property or services sought and on 
     market research, that offers will include only commercial 
     items.''; and
       (B) by adding at the end the following new paragraph:
       ``(4) The head of an agency shall comply with the Federal 
     Acquisition Regulation provisions referred to in section 
     31(g) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 427).''.
       (2) Section 2305 of title 10, United States Code, is 
     amended in subsection (a)(2) by inserting after ``(other than 
     for'' the following: ``a procurement for commercial items 
     using special simplified procedures or''.
       (b) Civilian Agency Acquisitions.--(1) Section 303(g) of 
     the Federal Property and Administrative Services Act of 1949 
     (41 U.S.C. 253(g)) is amended--
       (A) in paragraph (1), by striking out ``shall provide for 
     special simplified procedures for purchases of'' and all that 
     follows through the end of the paragraph and inserting in 
     lieu thereof the following: ``shall provide for--
       ``(A) special simplified procedures for purchases of 
     property and services for amounts not greater than the 
     simplified acquisition threshold; and
       ``(B) special simplified procedures for purchases of 
     property and services for amounts greater than the simplified 
     acquisition threshold but not greater than $5,000,000 with 
     respect to which the contracting officer reasonably expects, 
     based on the nature of the property or services sought and on 
     market research, that offers will include only commercial 
     items.''; and
       (B) by adding at the end the following new paragraph:
       ``(5) An executive agency shall comply with the Federal 
     Acquisition Regulation provisions referred to in section 
     31(g) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 427).''.
       (2) Section 303A of such Act (41 U.S.C. 253a) is amended in 
     subsection (b) by inserting after ``(other than for'' the 
     following: ``a procurement for commercial items using special 
     simplified procedures or''.
       (c) Acquisitions Generally.--Section 31 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 427) is amended--
       (1) in subsection (a), by striking out ``shall provide for 
     special simplified procedures for purchases of'' and all that 
     follows through the end of the subsection and inserting in 
     lieu thereof the following: ``shall provide for--
       ``(1) special simplified procedures for purchases of 
     property and services for amounts not greater than the 
     simplified acquisition threshold; and
       ``(2) special simplified procedures for purchases of 
     property and services for amounts greater than the simplified 
     acquisition threshold but not greater than $5,000,000 with 
     respect to which the contracting officer reasonably expects, 
     based on the nature of the property or services sought and on 
     market research, that offers will include only commercial 
     items.''; and
       (2) by adding at the end the following new subsection:
       ``(g) Special Rules for Commercial Items.--The Federal 
     Acquisition Regulation shall provide that, in the case of a 
     purchase of commercial items using special simplified 
     procedures, an executive agency--
       ``(1) shall publish a notice in accordance with section 18 
     and, as provided in subsection (b)(4) of such section, permit 
     all responsible sources to submit a bid, proposal, or 
     quotation (as appropriate) which shall be considered by the 
     agency;
       ``(2) may not conduct the purchase on a sole source basis 
     unless the need to do so is justified in writing and approved 
     in accordance with section 2304 of title 10, United States 
     Code, or section 303 of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253), as 
     applicable; and
       ``(3) shall include in the contract file a written 
     description of the procedures used in awarding the contract 
     and the number of offers received.''.
       (d) Simplified Notice.--(1) Section 18 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 416) is amended--
       (A) in subsection (a)(6), by inserting before 
     ``submission'' the following: ``issuance of solicitations and 
     the''; and
       (B) in subsection (b)(6), by striking out ``threshold--'' 
     and inserting in lieu thereof ``threshold, or a contract for 
     the procurement of commercial items using special simplified 
     procedures--''.
       (e) Effective Date.--The authority to issue solicitations 
     for purchases of commercial items in excess of the simplified 
     acquisition threshold pursuant to the special simplified 
     procedures authorized by section 2304(g)(1) of title 10, 
     United States Code, section 303(g)(1) of the Federal Property 
     and Administrative Services Act of 1949, and section 31(a) of 
     the Office of Federal Procurement Policy Act, as amended by 
     this section, shall expire three years after the date on 
     which such amendments take effect pursuant to section 
     4401(b). Contracts may be awarded pursuant to solicitations 
     that have been issued before such authority expires, 
     notwithstanding the expiration of such authority.

     SEC. 4203. INAPPLICABILITY OF CERTAIN PROCUREMENT LAWS TO 
                   COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEMS.

       (a) Laws Listed in the FAR.--The Office of Federal 
     Procurement Policy Act (41 U.S.C. 401) et seq.) is amended by 
     adding at the end the following:

     ``SEC. 35. COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEM 
                   ACQUISITIONS: LISTS OF INAPPLICABLE LAWS IN 
                   FEDERAL ACQUISITION REGULATION.

       ``(a) Lists of Inapplicable Provisions of Law.--(1) The 
     Federal Acquisition Regulation shall include a list of 
     provisions of law that are inapplicable to contracts for the 
     procurement of commercially available off-the-shelf items.
       ``(2) A provision of law that, pursuant to paragraph (3), 
     is properly included on a list referred to in paragraph (1) 
     may not be construed as being applicable to contracts 
     referred to in paragraph (1). Nothing in this section shall 
     be construed to render inapplicable to such contracts any 
     provision of law that is not included on such list.
       ``(3) A provision of law described in subsection (b) shall 
     be included on the list of inapplicable provisions of law 
     required by paragraph (1) unless the Administrator for 
     Federal Procurement Policy makes a written determination that 
     it would not be in the best interest of the United States to 
     exempt such contracts from the applicability of that 
     provision of law. Nothing in this section shall be construed 
     as modifying or superseding, or as being intended to impair 
     or restrict authorities or responsibilities under--
       ``(A) section 15 of the Small Business Act (15 U.S.C. 644); 
     or
       ``(B) bid protest procedures developed under the authority 
     of subchapter V of chapter 35 of title 31, United States 
     Code; subsections (e) and (f) of section 2305 of title 10, 
     United States Code; or subsections (h) and (i) of section 
     303B of the Federal Property and Administrative Services Act 
     of 1949 (41 U.S.C. 253b).
     
[[Page H488]]

       ``(b) Covered Law.--Except as provided in subsection 
     (a)(3), the list referred to in subsection (a)(1) shall 
     include each provision of law that, as determined by the 
     Administrator, imposes on persons who have been awarded 
     contracts by the Federal Government for the procurement of 
     commercially available off-the-shelf items Government-unique 
     policies, procedures, requirements, or restrictions for the 
     procurement of property or services, except the following:
       ``(1) A provision of law that provides for criminal or 
     civil penalties.
       ``(2) A provision of law that specifically refers to this 
     section and provides that, notwithstanding this section, such 
     provision of law shall be applicable to contracts for the 
     procurement of commercial off-the-shelf items.
       ``(c) Definition.--(1) As used in this section, the term 
     `commercially available off-the-shelf item' means, except as 
     provided in paragraph (2), an item that--
       ``(A) is a commercial item (as described in section 
     4(12)(A));
       ``(B) is sold in substantial quantities in the commercial 
     marketplace; and
       ``(C) is offered to the Government, without modification, 
     in the same form in which it is sold in the commercial 
     marketplace.
       ``(2) The term `commercially available off-the-shelf item' 
     does not include bulk cargo, as defined in section 3 of the 
     Shipping Act of 1984 (46 U.S.C. App. 1702), such as 
     agricultural products and petroleum products.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of such Act is amended by inserting after the item 
     relating to section 34 the following:
``Sec. 35. Commercially available off-the-shelf item acquisitions: 
              lists of inapplicable laws in Federal Acquisition 
              Regulation.''.

     SEC. 4204. AMENDMENT OF COMMERCIAL ITEMS DEFINITION.

       Section 4(12)(F) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 403(12)(F)) is amended by inserting 
     ``or market'' after ``catalog''.

     SEC. 4205. INAPPLICABILITY OF COST ACCOUNTING STANDARDS TO 
                   CONTRACTS AND SUBCONTRACTS FOR COMMERCIAL 
                   ITEMS.

       Paragraph (2)(B) of section 26(f) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 422(f)) is amended--
       (1) by striking out clause (i) and inserting in lieu 
     thereof the following:
       ``(i) Contracts or subcontracts for the acquisition of 
     commercial items.''; and
       (2) by striking out clause (iii).
               TITLE XLIII--ADDITIONAL REFORM PROVISIONS
          Subtitle A--Additional Acquisition Reform Provisions

     SEC. 4301. ELIMINATION OF CERTAIN CERTIFICATION REQUIREMENTS.

       (a) Elimination of Certain Statutory Certification 
     Requirements.--(1) Section 2410b of title 10, United States 
     Code, is amended in paragraph (2) by striking out 
     ``certification and''.
       (2) Section 1352(b)(2) of title 31, United States Code, is 
     amended--
       (A) by striking out subparagraph (C); and
       (B) by inserting ``and'' after the semicolon at the end of 
     subparagraph (A).
       (3) Section 5152 of the Drug-Free Workplace Act of 1988 (41 
     U.S.C. 701) is amended--
       (A) in subsection (a)(1), by striking out ``has certified 
     to the contracting agency that it will'' and inserting in 
     lieu thereof ``agrees to'';
       (B) in subsection (a)(2), by striking out ``contract 
     includes a certification by the individual'' and inserting in 
     lieu thereof ``individual agrees''; and
       (C) in subsection (b)(1)--
       (i) by striking out subparagraph (A);
       (ii) by redesignating subparagraph (B) as subparagraph (A) 
     and in that subparagraph by striking out ``such certification 
     by failing to carry out''; and
       (iii) by redesignating subparagraph (C) as subparagraph 
     (B).
       (b) Elimination of Certain Regulatory Certification 
     Requirements.--
       (1) Current certification requirements.--(A) Not later than 
     210 days after the date of the enactment of this Act, the 
     Administrator for Federal Procurement Policy shall issue for 
     public comment a proposal to amend the Federal Acquisition 
     Regulation to remove from the Federal Acquisition Regulation 
     certification requirements for contractors and offerors that 
     are not specifically imposed by statute. The Administrator 
     may omit such a certification requirement from the proposal 
     only if--
       (i) the Federal Acquisition Regulatory Council provides the 
     Administrator with a written justification for the 
     requirement and a determination that there is no less 
     burdensome means for administering and enforcing the 
     particular regulation that contains the certification 
     requirement; and
       (ii) the Administrator approves in writing the retention of 
     the certification requirement.
       (B)(i) Not later than 210 days after the date of the 
     enactment of this Act, the head of each executive agency that 
     has agency procurement regulations containing one or more 
     certification requirements for contractors and offerors that 
     are not specifically imposed by statute shall issue for 
     public comment a proposal to amend the regulations to remove 
     the certification requirements. The head of the executive 
     agency may omit such a certification requirement from the 
     proposal only if--
       (I) the senior procurement executive for the executive 
     agency provides the head of the executive agency with a 
     written justification for the requirement and a determination 
     that there is no less burdensome means for administering and 
     enforcing the particular regulation that contains the 
     certification requirement; and
       (II) the head of the executive agency approves in writing 
     the retention of such certification requirement.
       (ii) For purposes of clause (i), the term ``head of the 
     executive agency'' with respect to a military department 
     means the Secretary of Defense.
       (2) Future certification requirements.--(A) Section 29 of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 425) 
     is amended--
       (i) by amending the heading to read as follows:

       ``SEC. 29. CONTRACT CLAUSES AND CERTIFICATIONS.'';
       (ii) by inserting ``(a) Nonstandard Contract Clauses.--'' 
     before ``The Federal Acquisition''; and
       (iii) by adding at the end the following new subsection:
       ``(c) Prohibition on Certification Requirements.--(1) A 
     requirement for a certification by a contractor or offeror 
     may not be included in the Federal Acquisition Regulation 
     unless--
       ``(A) the certification requirement is specifically imposed 
     by statute; or
       ``(B) written justification for such certification 
     requirement is provided to the Administrator for Federal 
     Procurement Policy by the Federal Acquisition Regulatory 
     Council, and the Administrator approves in writing the 
     inclusion of such certification requirement.
       ``(2)(A) A requirement for a certification by a contractor 
     or offeror may not be included in a procurement regulation of 
     an executive agency unless--
       ``(i) the certification requirement is specifically imposed 
     by statute; or
       ``(ii) written justification for such certification 
     requirement is provided to the head of the executive agency 
     by the senior procurement executive of the agency, and the 
     head of the executive agency approves in writing the 
     inclusion of such certification requirement.
       ``(B) For purposes of subparagraph (A), the term `head of 
     the executive agency' with respect to a military department 
     means the Secretary of Defense.''.
       (B) The item relating to section 29 in the table of 
     contents for the Office of Federal Procurement Policy Act 
     (contained in section 1(b)) (41 U.S.C. 401 note) is amended 
     to read as follows:
``Sec. 29. Contract clauses and certifications.''.

       (c) Policy of Congress.--Section 29 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 425) is further 
     amended by adding after subsection (a) the following new 
     subsection:
       ``(b) Construction of Certification Requirements.--A 
     provision of law may not be construed as requiring a 
     certification by a contractor or offeror in a procurement 
     made or to be made by the Federal Government unless that 
     provision of law specifically provides that such a 
     certification shall be required.''.

     SEC. 4302. AUTHORITIES CONDITIONED ON FACNET CAPABILITY.

       (a) Commencement and Expiration of Authority To Conduct 
     Certain Tests of Procurement Procedures.--Subsection (j) of 
     section 5061 of the Federal Acquisition Streamlining Act of 
     1994 (41 U.S.C. 413 note; 108 Stat. 3355) is amended to read 
     as follows:
       ``(j) Commencement and Expiration of Authority.--The 
     authority to conduct a test under subsection (a) in an agency 
     and to award contracts under such a test shall take effect on 
     January 1, 1997, and shall expire on January 1, 2001. A 
     contract entered into before such authority expires in 
     an agency pursuant to a test shall remain in effect, in 
     accordance with the terms of the contract, the 
     notwithstanding of expiration the authority to conduct the 
     test under this section.''.
       (b) Use of Simplified Acquisition Procedures.--Subsection 
     (e) of section 31 of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 427) is amended--
       (1) by striking out ``Acquisition Procedures.--'' and all 
     that follows through ``(B) The simplified acquisition'' in 
     paragraph (2)(B) and inserting in lieu thereof ``Acquisition 
     Procedures.--The simplified acquisition''; and
       (2) by striking out ``pursuant to this section'' in the 
     remaining text and inserting in lieu thereof ``pursuant to 
     section 2304(g)(1)(A) of title 10, United States Code, 
     section 303(g)(1)(A) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(A)), 
     and subsection (a)(1) of this section''.

     SEC. 4303. INTERNATIONAL COMPETITIVENESS.

       (a) Additional Authority to Waive Research, Development, 
     and Production Costs.--Subject to subsection (b), section 
     21(e)(2) of the Arms Export Control Act (22 U.S.C. 
     2761(e)(2)) is amended--
       (1) by inserting ``(A)'' after ``(2)''; and
       (2) by adding at the end the following new subparagraphs:
       ``(B) The President may waive the charge or charges which 
     would otherwise be considered appropriate under paragraph 
     (1)(B) for a particular sale if the President determines 
     that--
       ``(i) imposition of the charge or charges likely would 
     result in the loss of the sale; or
     
[[Page H489]]

       ``(ii) in the case of a sale of major defense equipment 
     that is also being procured for the use of the Armed Forces, 
     the waiver of the charge or charges would (through a 
     resulting increase in the total quantity of the equipment 
     purchased from the source of the equipment that causes a 
     reduction in the unit cost of the equipment) result in a 
     savings to the United States on the cost of the equipment 
     procured for the use of the Armed Forces that substantially 
     offsets the revenue foregone by reason of the waiver of the 
     charge or charges.
       ``(C) The President may waive, for particular sales of 
     major defense equipment, any increase in a charge or charges 
     previously considered appropriate under paragraph (1)(B) if 
     the increase results from a correction of an estimate 
     (reasonable when made) of the production quantity base that 
     was used for calculating the charge or charges for purposes 
     of such paragraph.''.
       (b) Conditions.--Subsection (a) shall be effective only 
     if--
       (1) the President, in the budget of the President for 
     fiscal year 1997, proposes legislation that if enacted would 
     be qualifying offsetting legislation; and
       (2) there is enacted qualifying offsetting legislation.
       (c) Effective Date.--If the conditions in subsection (b) 
     are met, then the amendments made by subsection (a) shall 
     take effect on the date of the enactment of qualifying 
     offsetting legislation.
       (d) Definitions.--For purposes of this section:
       (1) The term ``qualifying offsetting legislation'' means 
     legislation that includes provisions that--
       (A) offset fully the estimated revenues lost as a result of 
     the amendments made by subsection (a) for each of the fiscal 
     years 1997 through 2005;
       (B) expressly state that they are enacted for the purpose 
     of the offset described in subparagraph (A); and
       (C) are included in full on the PayGo scorecard.
       (2) The term ``PayGo scorecard'' means the estimates that 
     are made by the Director of the Congressional Budget Office 
     and the Director of the Office of Management and Budget under 
     section 252(d) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985.

     SEC. 4304. PROCUREMENT INTEGRITY.

       (a) Amendment of Procurement Integrity Provision.--Section 
     27 of the Office of Federal Procurement Policy Act (41 U.S.C. 
     423) is amended to read as follows:

     ``SEC. 27. RESTRICTIONS ON DISCLOSING AND OBTAINING 
                   CONTRACTOR BID OR PROPOSAL INFORMATION OR 
                   SOURCE SELECTION INFORMATION.

       ``(a) Prohibition on Disclosing Procurement Information.--
     (1) A person described in paragraph (2) shall not, other than 
     as provided by law, knowingly disclose contractor bid or 
     proposal information or source selection information before 
     the award of a Federal agency procurement contract to which 
     the information relates.
       ``(2) Paragraph (1) applies to any person who--
       ``(A) is a present or former official of the United States, 
     or a person who is acting or has acted for or on behalf of, 
     or who is advising or has advised the United States with 
     respect to, a Federal agency procurement; and
       ``(B) by virtue of that office, employment, or relationship 
     has or had access to contractor bid or proposal information 
     or source selection information.
       ``(b) Prohibition on Obtaining Procurement Information.--A 
     person shall not, other than as provided by law, knowingly 
     obtain contractor bid or proposal information or source 
     selection information before the award of a Federal agency 
     procurement contract to which the information relates.
       ``(c) Actions Required of Procurement Officers When 
     Contacted by Offerors Regarding Non-Federal Employment.--(1) 
     If an agency official who is participating personally and 
     substantially in a Federal agency procurement for a contract 
     in excess of the simplified acquisition threshold contacts or 
     is contacted by a person who is a bidder or offeror in that 
     Federal agency procurement regarding possible non-Federal 
     employment for that official, the official shall--
       ``(A) promptly report the contact in writing to the 
     official's supervisor and to the designated agency ethics 
     official (or designee) of the agency in which the official is 
     employed; and
       ``(B)(i) reject the possibility of non-Federal employment; 
     or
       ``(ii) disqualify himself or herself from further personal 
     and substantial participation in that Federal agency 
     procurement until such time as the agency has authorized the 
     official to resume participation in such procurement, in 
     accordance with the requirements of section 208 of title 18, 
     United States Code, and applicable agency regulations on the 
     grounds that--
       ``(I) the person is no longer a bidder or offeror in that 
     Federal agency procurement; or
       ``(II) all discussions with the bidder or offeror regarding 
     possible non-Federal employment have terminated without an 
     agreement or arrangement for employment.
       ``(2) Each report required by this subsection shall be 
     retained by the agency for not less than two years following 
     the submission of the report. All such reports shall be made 
     available to the public upon request, except that any part of 
     a report that is exempt from the disclosure requirements of 
     section 552 of title 5, United States Code, under subsection 
     (b)(1) of such section may be withheld from disclosure to the 
     public.
       ``(3) An official who knowingly fails to comply with the 
     requirements of this subsection shall be subject to the 
     penalties and administrative actions set forth in subsection 
     (e).
       ``(4) A bidder or offeror who engages in employment 
     discussions with an official who is subject to the 
     restrictions of this subsection, knowing that the official 
     has not complied with subparagraph (A) or (B) of paragraph 
     (1), shall be subject to the penalties and administrative 
     actions set forth in subsection (e).
       ``(d) Prohibition on Former Official's Acceptance of 
     Compensation From Contractor.--(1) A former official of a 
     Federal agency may not accept compensation from a contractor 
     as an employee, officer, director, or consultant of the 
     contractor within a period of one year after such former 
     official--
       ``(A) served, at the time of selection of the contractor or 
     the award of a contract to that contractor, as the procuring 
     contracting officer, the source selection authority, a member 
     of the source selection evaluation board, or the chief of a 
     financial or technical evaluation team in a procurement in 
     which that contractor was selected for award of a contract in 
     excess of $10,000,000;
       ``(B) served as the program manager, deputy program 
     manager, or administrative contracting officer for a contract 
     in excess of $10,000,000 awarded to that contractor; or
       ``(C) personally made for the Federal agency--
       ``(i) a decision to award a contract, subcontract, 
     modification of a contract or subcontract, or a task order or 
     delivery order in excess of $10,000,000 to that contractor;
       ``(ii) a decision to establish overhead or other rates 
     applicable to a contract or contracts for that contractor 
     that are valued in excess of $10,000,000;
       ``(iii) a decision to approve issuance of a contract 
     payment or payments in excess of $10,000,000 to that 
     contractor; or
       ``(iv) a decision to pay or settle a claim in excess of 
     $10,000,000 with that contractor.
       ``(2) Nothing in paragraph (1) may be construed to prohibit 
     a former official of a Federal agency from accepting 
     compensation from any division or affiliate of a contractor 
     that does not produce the same or similar products or 
     services as the entity of the contractor that is responsible 
     for the contract referred to in subparagraph (A), (B), or (C) 
     of such paragraph.
       ``(3) A former official who knowingly accepts compensation 
     in violation of this subsection shall be subject to penalties 
     and administrative actions as set forth in subsection (e).
       ``(4) A contractor who provides compensation to a former 
     official knowing that such compensation is accepted by the 
     former official in violation of this subsection shall be 
     subject to penalties and administrative actions as set forth 
     in subsection (e).
       ``(5) Regulations implementing this subsection shall 
     include procedures for an official or former official of a 
     Federal agency to request advice from the appropriate 
     designated agency ethics official regarding whether the 
     official or former official is or would be precluded by this 
     subsection from accepting compensation from a particular 
     contractor.
       ``(e) Penalties and Administrative Actions.--
       ``(1) Criminal penalties.--Whoever engages in conduct 
     constituting a violation of subsection (a) or (b) for the 
     purpose of either--
       ``(A) exchanging the information covered by such subsection 
     for anything of value, or
       ``(B) obtaining or giving anyone a competitive advantage in 
     the award of a Federal agency procurement contract,
     shall be imprisoned for not more than 5 years or fined as 
     provided under title 18, United States Code, or both.
       ``(2) Civil penalties.--The Attorney General may bring a 
     civil action in an appropriate United States district court 
     against any person who engages in conduct constituting a 
     violation of subsection (a), (b), (c), or (d). Upon proof of 
     such conduct by a preponderance of the evidence, the person 
     is subject to a civil penalty. An individual who engages in 
     such conduct is subject to a civil penalty of not more than 
     $50,000 for each violation plus twice the amount of 
     compensation which the individual received or offered for the 
     prohibited conduct. An organization that engages in such 
     conduct is subject to a civil penalty of not more than 
     $500,000 for each violation plus twice the amount of 
     compensation which the organization received or offered for 
     the prohibited conduct.
       ``(3) Administrative actions.--(A) If a Federal agency 
     receives information that a contractor or a person has 
     engaged in conduct constituting a violation of subsection 
     (a), (b), (c), or (d), the Federal agency shall consider 
     taking one or more of the following actions, as appropriate:
       ``(i) Cancellation of the Federal agency procurement, if a 
     contract has not yet been awarded.
       ``(ii) Rescission of a contract with respect to which--
       ``(I) the contractor or someone acting for the contractor 
     has been convicted for an offense punishable under paragraph 
     (1), or
       ``(II) the head of the agency that awarded the contract has 
     determined, based upon a preponderance of the evidence, that 
     the contractor or someone acting for the contractor has 
     engaged in conduct constituting such an offense.
     
[[Page H490]]

       ``(iii) Initiation of suspension or debarment proceedings 
     for the protection of the Government in accordance with 
     procedures in the Federal Acquisition Regulation.
       ``(iv) Initiation of adverse personnel action, pursuant to 
     the procedures in chapter 75 of title 5, United States Code, 
     or other applicable law or regulation.
       ``(B) If a Federal agency rescinds a contract pursuant to 
     subparagraph (A)(ii), the United States is entitled to 
     recover, in addition to any penalty prescribed by law, the 
     amount expended under the contract.
       ``(C) For purposes of any suspension or debarment 
     proceedings initiated pursuant to subparagraph (A)(iii), 
     engaging in conduct constituting an offense under subsection 
     (a), (b), (c), or (d) affects the present responsibility of a 
     Government contractor or subcontractor.
       ``(f) Definitions.--As used in this section:
       ``(1) The term `contractor bid or proposal information' 
     means any of the following information submitted to a Federal 
     agency as part of or in connection with a bid or proposal to 
     enter into a Federal agency procurement contract, if that 
     information has not been previously made available to the 
     public or disclosed publicly:
       ``(A) Cost or pricing data (as defined by section 2306a(h) 
     of title 10, United States Code, with respect to procurements 
     subject to that section, and section 304A(h) of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     254b(h)), with respect to procurements subject to that 
     section).
       ``(B) Indirect costs and direct labor rates.
       ``(C) Proprietary information about manufacturing 
     processes, operations, or techniques marked by the contractor 
     in accordance with applicable law or regulation.
       ``(D) Information marked by the contractor as `contractor 
     bid or proposal information', in accordance with applicable 
     law or regulation.
       ``(2) The term `source selection information' means any of 
     the following information prepared for use by a Federal 
     agency for the purpose of evaluating a bid or proposal to 
     enter into a Federal agency procurement contract, if that 
     information has not been previously made available to the 
     public or disclosed publicly:
       ``(A) Bid prices submitted in response to a Federal agency 
     solicitation for sealed bids, or lists of those bid prices 
     before public bid opening.
       ``(B) Proposed costs or prices submitted in response to a 
     Federal agency solicitation, or lists of those proposed costs 
     or prices.
       ``(C) Source selection plans.
       ``(D) Technical evaluation plans.
       ``(E) Technical evaluations of proposals.
       ``(F) Cost or price evaluations of proposals.
       ``(G) Competitive range determinations that identify 
     proposals that have a reasonable chance of being selected for 
     award of a contract.
       ``(H) Rankings of bids, proposals, or competitors.
       ``(I) The reports and evaluations of source selection 
     panels, boards, or advisory councils.
       ``(J) Other information marked as `source selection 
     information' based on a case-by-case determination by the 
     head of the agency, his designee, or the contracting officer 
     that its disclosure would jeopardize the integrity or 
     successful completion of the Federal agency procurement to 
     which the information relates.
       ``(3) The term `Federal agency' has the meaning provided 
     such term in section 3 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 472).
       ``(4) The term `Federal agency procurement' means the 
     acquisition (by using competitive procedures and awarding a 
     contract) of goods or services (including construction) from 
     non-Federal sources by a Federal agency using appropriated 
     funds.
       ``(5) The term `contracting officer' means a person who, by 
     appointment in accordance with applicable regulations, has 
     the authority to enter into a Federal agency procurement 
     contract on behalf of the Government and to make 
     determinations and findings with respect to such a contract.
       ``(6) The term `protest' means a written objection by an 
     interested party to the award or proposed award of a Federal 
     agency procurement contract, pursuant to subchapter V of 
     chapter 35 of title 31, United States Code.
       ``(7) The term `official' means the following:
       ``(A) An officer, as defined in section 2104 of title 5, 
     United States Code.
       ``(B) An employee, as defined in section 2105 of title 5, 
     United States Code.
       ``(C) A member of the uniformed services, as defined in 
     section 2101(3) of title 5, United States Code.
       ``(g) Limitation on Protests.--No person may file a protest 
     against the award or proposed award of a Federal agency 
     procurement contract alleging a violation of subsection (a), 
     (b), (c), or (d), nor may the Comptroller General of the 
     United States consider such an allegation in deciding a 
     protest, unless that person reported to the Federal agency 
     responsible for the procurement, no later than 14 days after 
     the person first discovered the possible violation, the 
     information that the person believed constitutes evidence of 
     the offense.
       ``(h) Savings Provisions.--This section does not--
       ``(1) restrict the disclosure of information to, or its 
     receipt by, any person or class of persons authorized, in 
     accordance with applicable agency regulations or procedures, 
     to receive that information;
       ``(2) restrict a contractor from disclosing its own bid or 
     proposal information or the recipient from receiving that 
     information;
       ``(3) restrict the disclosure or receipt of information 
     relating to a Federal agency procurement after it has been 
     canceled by the Federal agency before contract award unless 
     the Federal agency plans to resume the procurement;
       ``(4) prohibit individual meetings between a Federal agency 
     official and an offeror or potential offeror for, or a 
     recipient of, a contract or subcontract under a Federal 
     agency procurement, provided that unauthorized disclosure or 
     receipt of contractor bid or proposal information or source 
     selection information does not occur;
       ``(5) authorize the withholding of information from, nor 
     restrict its receipt by, Congress, a committee or 
     subcommittee of Congress, the Comptroller General, a Federal 
     agency, or an inspector general of a Federal agency;
       ``(6) authorize the withholding of information from, nor 
     restrict its receipt by, the Comptroller General of the 
     United States in the course of a protest against the award or 
     proposed award of a Federal agency procurement contract; or
       ``(7) limit the applicability of any requirements, 
     sanctions, contract penalties, and remedies established under 
     any other law or regulation.''.
       (b) Repeals.--The following provisions of law are repealed:
       (1) Sections 2397, 2397a, 2397b, and 2397c of title 10, 
     United States Code.
       (2) Section 33 of the Federal Energy Administration Act of 
     1974 (15 U.S.C. 789).
       (3) Section 281 of title 18, United States Code.
       (4) Subsection (c) of section 32 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 428).
       (5) The first section 19 of the Federal Nonnuclear Energy 
     Research and Development Act of 1974 (42 U.S.C. 5918).
       (6) Part A of title VI of the Department of Energy 
     Organization Act and its catchline (42 U.S.C. 7211, 7212, and 
     7218).
       (7) Section 308 of the Energy Research and Development 
     Administration Appropriation Authorization Act for Fiscal 
     Year 1977 (42 U.S.C. 5816a).
       (8) Section 522 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6392).
       (c) Clerical Amendments.--
       (1) The table of sections at the beginning of chapter 141 
     of title 10, United States Code, is amended by striking out 
     the items relating to sections 2397, 2397a, 2397b, and 2397c.
       (2) The table of sections at the beginning of chapter 15 of 
     title 18, United States Code, is amended by striking out the 
     item relating to section 281.
       (3) Section 32 of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 428) is amended by redesignating subsections 
     (d), (e), (f), and (g) as subsections (c), (d), (e), and (f), 
     respectively.
       (4) The table of contents for the Department of Energy 
     Organization Act is amended by striking out the items 
     relating to part A of title VI including sections 601 through 
     603.
       (5) The table of contents for the Energy Policy and 
     Conservation Act is amended by striking out the item relating 
     to section 522.

     SEC. 4305. FURTHER ACQUISITION STREAMLINING PROVISIONS.

       (a) Purpose of Office of Federal Procurement Policy.--
       (1) Revised statement of purpose.--Section 5(a) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 404) is 
     amended to read as follows:
       ``(a) There is in the Office of Management and Budget an 
     Office of Federal Procurement Policy (hereinafter referred to 
     as the `Office') to provide overall direction of Government-
     wide procurement policies, regulations, procedures, and forms 
     for executive agencies and to promote economy, efficiency, 
     and effectiveness in the procurement of property and services 
     by the executive branch of the Federal Government.''.
       (2) Repeal of findings, policies, and purposes.--Sections 2 
     and 3 of such Act (41 U.S.C. 401 and 402) are repealed.
       (b) Repeal of Report Requirement.--Section 8 of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 407) is 
     repealed.
       (c) Obsolete Provisions.--
       (1) Relationship to former regulations.--Section 10 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 409) is 
     repealed.
       (2) Authorization of appropriations.--Section 11 of such 
     Act (41 U.S.C. 410) is amended to read as follows:

     ``SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated for the Office of 
     Federal Procurement Policy each fiscal year such sums as may 
     be necessary for carrying out the responsibilities of that 
     office for such fiscal year.''.
       (d) Clerical Amendments.--The table of contents for the 
     Office of Federal Procurement Policy Act (contained in 
     section 1(b)) is amended by striking out the items relating 
     to sections 2, 3, 8, and 10.

     SEC. 4306. VALUE ENGINEERING FOR FEDERAL AGENCIES.

       (a) Use of Value Engineering.--The Office of Federal 
     Procurement Policy Act (41 U.S.C. 401 et seq.), as amended by 
     section 4203, is further amended by adding at the end the 
     following new section:
     
[[Page H491]]


     ``SEC. 36. VALUE ENGINEERING.

       ``(a) In General.--Each executive agency shall establish 
     and maintain cost-effective value engineering procedures and 
     processes.
       ``(b) Definition.--As used in this section, the term `value 
     engineering' means an analysis of the functions of a program, 
     project, system, product, item of equipment, building, 
     facility, service, or supply of an executive agency, 
     performed by qualified agency or contractor personnel, 
     directed at improving performance, reliability, quality, 
     safety, and life cycle costs.''.
       (b) Clerical Amendment.--The table of contents for such 
     Act, contained in section 1(b), is amended by adding at the 
     end the following new item:

``Sec. 36. Value engineering.''.

     SEC. 4307. ACQUISITION WORKFORCE.

       (a) Acquisition Workforce.--(1) The Office of Federal 
     Procurement Policy Act (41 U.S.C. 401 et seq.), as amended by 
     section 4306, is further amended by adding at the end the 
     following new section:

     ``SEC. 37. ACQUISITION WORKFORCE.

       ``(a) Applicability.--This section does not apply to an 
     executive agency that is subject to chapter 87 of title 10, 
     United States Code.
       ``(b) Management Policies.--
       ``(1) Policies and procedures.--The head of each executive 
     agency, after consultation with the Administrator for Federal 
     Procurement Policy, shall establish policies and procedures 
     for the effective management (including accession, education, 
     training, career development, and performance incentives) of 
     the acquisition workforce of the agency. The development of 
     acquisition workforce policies under this section shall be 
     carried out consistent with the merit system principles set 
     forth in section 2301(b) of title 5, United States Code.
       ``(2) Uniform implementation.--The head of each executive 
     agency shall ensure that, to the maximum extent practicable, 
     acquisition workforce policies and procedures established are 
     uniform in their implementation throughout the agency.
       ``(3) Government-wide policies and evaluation.--The 
     Administrator shall issue policies to promote uniform 
     implementation of this section by executive agencies, with 
     due regard for differences in program requirements among 
     agencies that may be appropriate and warranted in view of the 
     agency mission. The Administrator shall coordinate with the 
     Deputy Director for Management of the Office of Management 
     and Budget to ensure that such policies are consistent with 
     the policies and procedures established and enhanced system 
     of incentives provided pursuant to section 5051(c) of the 
     Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 263 
     note). The Administrator shall evaluate the implementation of 
     the provisions of this section by executive agencies.
       ``(c) Senior Procurement Executive Authorities and 
     Responsibilities.--Subject to the authority, direction, and 
     control of the head of an executive agency, the senior 
     procurement executive of the agency shall carry out all 
     powers, functions, and duties of the head of the agency with 
     respect to implementation of this section. The senior 
     procurement executive shall ensure that the policies of the 
     head of the executive agency established in accordance with 
     this section are implemented throughout the agency.
       ``(d) Management Information Systems.--The Administrator 
     shall ensure that the heads of executive agencies collect and 
     maintain standardized information on the acquisition 
     workforce related to implementation of this section. To the 
     maximum extent practicable, such data requirements shall 
     conform to standards established by the Office of Personnel 
     Management for the Central Personnel Data File.
       ``(e) Applicability to Acquisition Workforce.--The programs 
     established by this section shall apply to the acquisition 
     workforce of each executive agency. For purposes of this 
     section, the acquisition workforce of an agency consists of 
     all employees serving in acquisition positions listed in 
     subsection (g)(1)(A).
       ``(f) Career Development.--
       ``(1) Career paths.--The head of each executive agency 
     shall ensure that appropriate career paths for personnel who 
     desire to pursue careers in acquisition are identified in 
     terms of the education, training, experience, and assignments 
     necessary for career progression to the most senior 
     acquisition positions. The head of each executive agency 
     shall make information available on such career paths.
       ``(2) Critical duties and tasks.--For each career path, the 
     head of each executive agency shall identify the critical 
     acquisition-related duties and tasks in which, at minimum, 
     employees of the agency in the career path shall be competent 
     to perform at full performance grade levels. For this 
     purpose, the head of the executive agency shall provide 
     appropriate coverage of the critical duties and tasks 
     identified by the Director of the Federal Acquisition 
     Institute.
       ``(3) Mandatory training and education.--For each career 
     path, the head of each executive agency shall establish 
     requirements for the completion of course work and related 
     on-the-job training in the critical acquisition-related 
     duties and tasks of the career path. The head of each 
     executive agency shall also encourage employees to maintain 
     the currency of their acquisition knowledge and generally 
     enhance their knowledge of related acquisition management 
     disciplines through academic programs and other self-
     developmental activities.
       ``(4) Performance incentives.--The head of each executive 
     agency shall provide for an enhanced system of incentives for 
     the encouragement of excellence in the acquisition workforce 
     which rewards performance of employees that contribute to 
     achieving the agency's performance goals. The system of 
     incentives shall include provisions that--
       ``(A) relate pay to performance (including the extent to 
     which the performance of personnel in such workforce 
     contributes to achieving the cost goals, schedule goals, and 
     performance goals established for acquisition programs 
     pursuant to section 313(b) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 263(b))); and
       ``(B) provide for consideration, in personnel evaluations 
     and promotion decisions, of the extent to which the 
     performance of personnel in such workforce contributes to 
     achieving such cost goals, schedule goals, and performance 
     goals.
       ``(g) Qualification Requirements.--
       ``(1) In general.--(A) Subject to paragraph (2), the 
     Administrator shall establish qualification requirements, 
     including education requirements, for the following 
     positions:
       ``(i) Entry-level positions in the General Schedule 
     Contracting series (GS-1102).
       ``(ii) Senior positions in the General Schedule Contracting 
     series (GS-1102).
       ``(iii) All positions in the General Schedule Purchasing 
     series (GS-1105).
       ``(iv) Positions in other General Schedule series in which 
     significant acquisition-related functions are performed.
       ``(B) Subject to paragraph (2), the Administrator shall 
     prescribe the manner and extent to which such qualification 
     requirements shall apply to any person serving in a position 
     described in subparagraph (A) at the time such requirements 
     are established.
       ``(2) Relationship to requirements applicable to defense 
     acquisition workforce.--The Administrator shall establish 
     qualification requirements and make prescriptions under 
     paragraph (1) that are comparable to those established for 
     the same or equivalent positions pursuant to chapter 87 of 
     title 10, United States Code, with appropriate modifications.
       ``(3) Approval of requirements.--The Administrator shall 
     submit any requirement established or prescription made under 
     paragraph (1) to the Director of the Office of Personnel 
     Management for approval. If the Director does not disapprove 
     a requirement or prescription within 30 days after the date 
     on which the Director receives it, the requirement or 
     prescription is deemed to be approved by the Director.
       ``(h) Education and Training.--
       ``(1) Funding levels.--(A) The head of an executive agency 
     shall set forth separately the funding levels requested for 
     education and training of the acquisition workforce in the 
     budget justification documents submitted in support of the 
     President's budget submitted to Congress under section 1105 
     of title 31, United States Code.
       ``(B) Funds appropriated for education and training under 
     this section may not be obligated for any other purpose.
       ``(2) Tuition assistance.--The head of an executive agency 
     may provide tuition reimbursement in education (including a 
     full-time course of study leading to a degree) in accordance 
     with section 4107 of title 5, United States Code, for 
     personnel serving in acquisition positions in the agency.''.
       (2) The table of contents for such Act, contained in 
     section 1(b), is amended by adding at the end the following 
     new item:

``Sec. 37. Acquisition workforce.''.

       (b) Additional Amendments.--Section 6(d) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 405), is amended--
       (1) by redesignating paragraphs (6), (7), (8), (9), (10), 
     (11), and (12) (as transferred by section 4321(h)(1)) as 
     paragraphs (7), (8), (9), (10), (11), (12), and (13), 
     respectively;
       (2) in paragraph (5)--
       (A) in subparagraph (A), by striking out ``Government-wide 
     career management programs for a professional procurement 
     work force'' and inserting in lieu thereof ``the development 
     of a professional acquisition workforce Government-wide''; 
     and
       (B) in subparagraph (B)--
       (i) by striking out ``procurement by the'' and inserting in 
     lieu thereof ``acquisition by the'';
       (ii) by striking out ``and'' at the end of the 
     subparagraph; and
       (iii) by striking out subparagraph (C) and inserting in 
     lieu thereof the following:
       ``(C) collect data and analyze acquisition workforce data 
     from the Office of Personnel Management, the heads of 
     executive agencies, and, through periodic surveys, from 
     individual employees;
       ``(D) periodically analyze acquisition career fields to 
     identify critical competencies, duties, tasks, and related 
     academic prerequisites, skills, and knowledge;
       ``(E) coordinate and assist agencies in identifying and 
     recruiting highly qualified candidates for acquisition 
     fields;
       ``(F) develop instructional materials for acquisition 
     personnel in coordination with private and public acquisition 
     colleges and training facilities;
       ``(G) evaluate the effectiveness of training and career 
     development programs for acquisition personnel;
       ``(H) promote the establishment and utilization of academic 
     programs by colleges and universities in acquisition fields;
       ``(I) facilitate, to the extent requested by agencies, 
     interagency intern and training programs; and
     
[[Page H492]]

       ``(J) perform other career management or research functions 
     as directed by the Administrator.''; and
       (3) by inserting before paragraph (7) (as so redesignated) 
     the following new paragraph (6):
       ``(6) administering the provisions of section 37;''.

     SEC. 4308. DEMONSTRATION PROJECT RELATING TO CERTAIN 
                   PERSONNEL MANAGEMENT POLICIES AND PROCEDURES.

       (a) Commencement.--The Secretary of Defense is encouraged 
     to take such steps as may be necessary to provide for the 
     commencement of a demonstration project, the purpose of which 
     would be to determine the feasibility or desirability of one 
     or more proposals for improving the personnel management 
     policies or procedures that apply with respect to the 
     acquisition workforce of the Department of Defense.
       (b) Terms and Conditions.--
       (1) In general.--Except as otherwise provided in this 
     subsection, any demonstration project described in subsection 
     (a) shall be subject to section 4703 of title 5, United 
     States Code, and all other provisions of such title that 
     apply with respect to any demonstration project under such 
     section.
       (2) Exceptions.--Subject to paragraph (3), in applying 
     section 4703 of title 5, United States Code, with respect to 
     a demonstration project described in subsection (a)--
       (A) ``180 days'' in subsection (b)(4) of such section shall 
     be deemed to read ``120 days'';
       (B) ``90 days'' in subsection (b)(6) of such section shall 
     be deemed to read ``30 days''; and
       (C) subsection (d)(1)(A) of such section shall be 
     disregarded.
       (3) Condition.--Paragraph (2) shall not apply with respect 
     to a demonstration project unless it--
       (A) involves only the acquisition workforce of the 
     Department of Defense (or any part thereof); and
       (B) commences during the 3-year period beginning on the 
     date of the enactment of this Act.
       (c) Definition.--For purposes of this section, the term 
     ``acquisition workforce'' refers to the persons serving in 
     acquisition positions within the Department of Defense, as 
     designated pursuant to section 1721(a) of title 10, United 
     States Code.

     SEC. 4309. COOPERATIVE PURCHASING.

       (a) Delay in Opening Certain Federal Supply Schedules To 
     Use by State, Local, and Indian Tribal Governments.--The 
     Administrator of General Services may not use the authority 
     of section 201(b)(2) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 481(b)(2)) to 
     provide for the use of Federal supply schedules of the 
     General Services Administration until after the later of--
       (1) the date on which the 18-month period beginning on the 
     date of the enactment of this Act expires; or
       (2) the date on which all of the following conditions are 
     met:
       (A) The Administrator has considered the report of the 
     Comptroller General required by subsection (b).
       (B) The Administrator has submitted comments on such report 
     to Congress as required by subsection (c).
       (C) A period of 30 days after the date of submission of 
     such comments to Congress has expired.
       (b) Report.--Not later than one year after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to the Administrator of General Services and to Congress a 
     report on the implementation of section 201(b) of the Federal 
     Property and Administrative Services Act of 1949. The report 
     shall include the following:
       (1) An assessment of the effect on industry, including 
     small businesses and local dealers, of providing for the use 
     of Federal supply schedules by the entities described in 
     section 201(b)(2)(A) of the Federal Property and 
     Administrative Services Act of 1949.
       (2) An assessment of the effect on such entities of 
     providing for the use of Federal supply schedules by them.
       (c) Comments on Report by Administrator.--Not later than 30 
     days after receiving the report of the Comptroller General 
     required by subsection (b), the Administrator of General 
     Services shall submit to Congress comments on the report, 
     including the Administrator's comments on whether the 
     Administrator plans to provide any Federal supply schedule 
     for the use of any entity described in section 201(b)(2)(A) 
     of the Federal Property and Administrative Services Act of 
     1949.
       (d) Calculation of 30-Day Period.--For purposes of 
     subsection (a)(2)(C), the calculation of the 30-day period 
     shall exclude Saturdays, Sundays, and holidays, and any day 
     on which neither House of Congress is in session because of 
     an adjournment sine die, a recess of more than 3 days, or an 
     adjournment of more than 3 days.

     SEC. 4310. PROCUREMENT NOTICE TECHNICAL AMENDMENT.

       Section 18(c)(1)(E) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 416(c)(1)(E)) is amended by inserting 
     after ``requirements contract'' the following: ``, a task 
     order contract, or a delivery order contract''.

     SEC. 4311. MICRO-PURCHASES WITHOUT COMPETITIVE QUOTATIONS.

       Section 32(c) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 428), as redesignated by section 4304(c)(3), 
     is amended by striking out ``the contracting officer'' and 
     inserting in lieu thereof ``an employee of an executive 
     agency or a member of the Armed Forces of the United States 
     authorized to do so''.
                    Subtitle B--Technical Amendments

     SEC. 4321. AMENDMENTS RELATED TO FEDERAL ACQUISITION 
                   STREAMLINING ACT OF 1994.

       (a) Public Law 103-355.--Effective as of October 13, 1994, 
     and as if included therein as enacted, the Federal 
     Acquisition Streamlining Act of 1994 (Public Law 103-355; 108 
     Stat. 3243 et seq.) is amended as follows:
       (1) Section 1073 (108 Stat. 3271) is amended by striking 
     out ``section 303I'' and inserting in lieu thereof ``section 
     303K''.
       (2) Section 1202(a) (108 Stat. 3274) is amended by striking 
     out the closing quotation marks and second period at the end 
     of paragraph (2)(B) of the subsection inserted by the 
     amendment made by that section.
       (3) Section 1251(b) (108 Stat. 3284) is amended by striking 
     out ``Office of Federal Procurement Policy Act'' and 
     inserting in lieu thereof ``Federal Property and 
     Administrative Services Act of 1949''.
       (4) Section 2051(e) (108 Stat. 3304) is amended by striking 
     out the closing quotation marks and second period at the end 
     of subsection (f)(3) in the matter inserted by the amendment 
     made by that section.
       (5) Section 2101(a)(6)(B)(ii) (108 Stat. 3308) is amended 
     by replacing ``regulation'' with ``regulations'' in the first 
     quoted matter.
       (6) Section 2351(a) (108 Stat. 3322) is amended by 
     inserting ``(1)'' before ``Section 6''.
       (7) The heading of section 2352(b) (108 Stat. 3322) is 
     amended by striking out ``Procedures to Small Business 
     Government Contractors.--'' and inserting in lieu thereof 
     ``Procedures.--''.
       (8) Section 3022 (108 Stat. 3333) is amended by striking 
     out ``each place'' and all that follows through the end of 
     the section and inserting in lieu thereof ``in paragraph (1) 
     and `, rent,' after `sell' in paragraph (2).''.
       (9) Section 5092(b) (108 Stat. 3362) is amended by 
     inserting ``of paragraph (2)'' after ``second sentence''.
       (10) Section 6005(a) (108 Stat. 3364) is amended by 
     striking out the closing quotation marks and second period at 
     the end of subsection (e)(2) of the matter inserted by the 
     amendment made by that section.
       (11) Section 10005(f)(4) (108 Stat. 3409) is amended in the 
     second matter in quotation marks by striking out `` `Sec. 5. 
     This Act'' and inserting in lieu thereof `` `Sec. 7. This 
     title''.
       (b) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) Section 2220(b) is amended by striking out ``the date 
     of the enactment of the Federal Acquisition Streamlining Act 
     of 1994'' and inserting in lieu thereof ``October 13, 1994''.
       (2)(A) The section 2247 added by section 7202(a)(1) of 
     Public Law 103-355 (108 Stat. 3379) is redesignated as 
     section 2249.
       (B) The item relating to that section in the table of 
     sections at the beginning of subchapter I of chapter 134 is 
     revised to conform to the redesignation made by subparagraph 
     (A).
       (3) Section 2302(3)(K) is amended by adding a period at the 
     end.
       (4) Section 2304(f)(2)(D) is amended by striking out ``the 
     Act of June 25, 1938 (41 U.S.C. 46 et seq.), popularly 
     referred to as the Wagner-O'Day Act,'' and inserting in lieu 
     thereof ``the Javits-Wagner-O'Day Act (41 U.S.C. 46 et 
     seq.),''.
       (5) Section 2304(h) is amended by striking out paragraph 
     (1) and inserting in lieu thereof the following:
       ``(1) The Walsh-Healey Act (41 U.S.C. 35 et seq.).''.
       (6)(A) The section 2304a added by section 848(a)(1) of 
     Public Law 103-160 (107 Stat. 1724) is redesignated as 
     section 2304e.
       (B) The item relating to that section in the table of 
     sections at the beginning of chapter 137 is revised to 
     conform to the redesignation made by subparagraph (A).
       (7) Section 2306a is amended--
       (A) in subsection (d)(2)(A)(ii), by inserting ``to'' after 
     ``The information referred'';
       (B) in subsection (e)(4)(B)(ii), by striking out the second 
     comma after ``parties''; and
       (C) in subsection (i)(3), by inserting ``(41 U.S.C. 
     403(12))'' before the period at the end.
       (8) Section 2323 is amended--
       (A) in subsection (a)(1)(C), by inserting a closing 
     parenthesis after ``1135d-5(3))'' and after ``1059c(b)(1))'';
       (B) in subsection (a)(3), by striking out ``(issued under'' 
     and all that follows through ``421(c))'';
       (C) in subsection (b), by inserting ``(1)'' after 
     ``Amount.--''; and
       (D) in subsection (i)(3), by adding at the end a 
     subparagraph (D) identical to the subparagraph (D) set forth 
     in the amendment made by section 811(e) of Public Law 103-160 
     (107 Stat. 1702).
       (9) Section 2324 is amended--
       (A) in subsection (e)(2)(C)--
       (i) by striking out ``awarding the contract'' at the end of 
     the first sentence; and
       (ii) by striking out ``title III'' and all that follows 
     through ``Act)'' and inserting in lieu thereof ``the Buy 
     American Act (41 U.S.C. 10b-1)''; and
       (B) in subsection (h)(2), by inserting ``the head of the 
     agency or'' after ``in the case of any contract if''.
       (10) Section 2350b is amended--
       (A) in subsection (c)(1)-- 
     
[[Page H493]]

       (i) by striking out ``specifically--'' and inserting in 
     lieu thereof ``specifically prescribes--''; and
       (ii) by striking out ``prescribe'' in each of subparagraphs 
     (A), (B), (C), and (D); and
       (B) in subsection (d)(1), by striking out ``subcontract to 
     be'' and inserting in lieu thereof ``subcontract be''.
       (11) Section 2372(i)(1) is amended by striking out 
     ``section 2324(m)'' and inserting in lieu thereof ``section 
     2324(l)''.
       (12) Section 2384(b) is amended--
       (A) in paragraph (2)--
       (i) by striking ``items, as'' and inserting in lieu thereof 
     ``items (as''; and
       (ii) by inserting a closing parenthesis after ``403(12))''; 
     and
       (B) in paragraph (3), by inserting a closing parenthesis 
     after ``403(11))''.
       (13) Section 2400(a)(5) is amended by striking out ``the 
     preceding sentence'' and inserting in lieu thereof ``this 
     paragraph''.
       (14) Section 2405 is amended--
       (A) in paragraphs (1) and (2) of subsection (a), by 
     striking out ``the date of the enactment of the Federal 
     Acquisition Streamlining Act of 1994'' and inserting in lieu 
     thereof ``October 13, 1994''; and
       (B) in subsection (c)(3)--
       (i) by striking out ``the later of--'' and all that follows 
     through ``(B)''; and
       (ii) by redesignating clauses (i), (ii), and (iii) as 
     subparagraphs (A), (B), and (C), respectively, and realigning 
     those subparagraphs accordingly.
       (15) Section 2410d(b) is amended by striking out paragraph 
     (3).
       (16) Section 2410g(d)(1) is amended by inserting before the 
     period at the end the following: ``(as defined in section 
     4(12) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 403(12)))''.
       (17) Section 2424(c) is amended--
       (A) by inserting ``Exception.--'' after ``(c)''; and
       (B) by striking out ``drink'' the first and third places it 
     appears in the second sentence and inserting in lieu thereof 
     ``beverage''.
       (18) Section 2431 is amended--
       (A) in subsection (b)--
       (i) by striking out ``Any report'' in the first sentence 
     and inserting in lieu thereof ``Any documents''; and
       (ii) by striking out ``the report'' in paragraph (3) and 
     inserting in lieu thereof ``the documents''; and
       (B) in subsection (c), by striking ``reporting'' and 
     inserting in lieu thereof ``documentation''.
       (19) Section 2461(e)(1) is amended by striking out ``the 
     Act of June 25, 1938 (41 U.S.C. 47), popularly referred to as 
     the Wagner-O'Day Act'' and inserting in lieu thereof ``the 
     Javits-Wagner-O'Day Act (41 U.S.C. 47)''.
       (20) Section 2533(a) is amended by striking out ``title III 
     of the Act'' and all that follows through ``such Act'' and 
     inserting in lieu thereof ``the Buy American Act (41 U.S.C. 
     10a)) whether application of such Act''.
       (21) Section 2662(b) is amended by striking out ``small 
     purchase threshold'' and inserting in lieu thereof 
     ``simplified acquisition threshold''.
       (22) Section 2701(i)(1) is amended--
       (A) by striking out ``Act of August 24, 1935 (40 U.S.C. 
     270a-270d), commonly referred to as the `Miller Act','' and 
     inserting in lieu thereof ``Miller Act (40 U.S.C. 270a et 
     seq.)''; and
       (B) by striking out ``such Act of August 24, 1935'' and 
     inserting in lieu thereof ``the Miller Act''.
       (c) Small Business Act.--The Small Business Act (15 U.S.C. 
     632 et seq.) is amended as follows:
       (1) Section 8(d) (15 U.S.C. 637(d)) is amended--
       (A) in paragraph (1), by striking out the second comma 
     after ``small business concerns'' the first place it appears; 
     and
       (B) in paragraph (6)(C), by striking out ``and small 
     business concerns owned and controlled by the socially and 
     economically disadvantaged individuals'' and inserting in 
     lieu thereof ``, small business concerns owned and controlled 
     by socially and economically disadvantaged individuals, and 
     small business concerns owned and controlled by women''.
       (2) Section 8(f) (15 U.S.C. 637(f)) is amended by inserting 
     ``and'' after the semicolon at the end of paragraph (5).
       (3) Section 15(g)(2) (15 U.S.C. 644(g)(2)) is amended by 
     striking out the second comma after the first appearance of 
     ``small business concerns''.
       (d) Title 31, United States Code.--Title 31, United States 
     Code, is amended as follows:
       (1) Section 3551 is amended--
       (A) by striking out ``subchapter--'' and inserting in lieu 
     thereof ``subchapter:''; and
       (B) in paragraph (2), by striking out ``or proposed 
     contract'' and inserting in lieu thereof ``or a solicitation 
     or other request for offers''.
       (2) Section 3553(b)(3) is amended by striking out 
     ``3554(a)(3)'' and inserting in lieu thereof ``3554(a)(4)''.
       (3) Section 3554(b)(2) is amended by striking out ``section 
     3553(d)(2)(A)(i)'' and inserting in lieu thereof ``section 
     3553(d)(3)(C)(i)(I)''.
       (e) Federal Property and Administrative Services Act of 
     1949.--The Federal Property and Administrative Services Act 
     of 1949 is amended as follows:
       (1) The table of contents in section 1 (40 U.S.C. 471 
     prec.) is amended--
       (A) by striking out the item relating to section 104;
       (B) by striking out the item relating to section 201 and 
     inserting in lieu thereof the following:

``Sec. 201. Procurements, warehousing, and related activities.'';

       (C) by inserting after the item relating to section 315 the 
     following new item:

``Sec. 316. Merit-based award of grants for research and 
              development.'';

       (D) by striking out the item relating to section 603 and 
     inserting in lieu thereof the following:

``Sec. 603. Authorizations for appropriations and transfer 
              authority.'';

     and
       (E) by inserting after the item relating to section 605 the 
     following new item:

``Sec. 606. Sex discrimination.''.

       (2) Section 303(f)(2)(D) (41 U.S.C. 253(f)(2)(D)) is 
     amended by striking out ``the Act of June 25, 1938 (41 U.S.C. 
     46 et seq.), popularly referred to as the Wagner-O'Day Act,'' 
     and inserting in lieu thereof ``the Javits-Wagner-O'Day Act 
     (41 U.S.C. 46 et seq.),''.
       (3) The heading for paragraph (1) of section 304A(c) (41 
     U.S.C. 254b(c)) is amended by changing each letter that is 
     capitalized (other than the first letter of the first word) 
     to lower case.
       (4) Subsection (d)(2)(A)(ii) of section 304A (41 U.S.C. 
     254b) is amended by inserting ``to'' after ``The information 
     referred''.
       (5) Section 304C(a)(2) is amended by striking out ``section 
     304B'' and inserting in lieu thereof ``section 304A''.
       (6) Section 307(b) is amended by striking out ``section 
     305(c)'' and inserting in lieu thereof ``section 305(d)''.
       (7) The heading for section 314A (41 U.S.C. 264a) is 
     amended to read as follows:

     ``SEC. 314A. DEFINITIONS RELATING TO PROCUREMENT OF 
                   COMMERCIAL ITEMS.''.

       (8) Section 315(b) (41 U.S.C. 265(b)) is amended by 
     striking out ``inspector general'' both places it appears and 
     inserting in lieu thereof ``Inspector General''.
       (9) The heading for section 316 (41 U.S.C. 266) is amended 
     by inserting at the end a period.
       (f) Walsh-Healey Act.--
       (1) The Walsh-Healey Act (41 U.S.C. 35 et seq.) is 
     amended--
       (A) by transferring the second section 11 (as added by 
     section 7201(4) of Public Law 103-355) so as to appear after 
     section 10; and
       (B) by redesignating the three sections following such 
     section 11 (as so transferred) as sections 12, 13, and 14.
       (2) Such Act is further amended in section 10--
       (A) in subsection (b), by striking out ``section 1(b)'' and 
     inserting in lieu thereof ``section 1(a)''; and
       (B) in subsection (c), by striking out the comma after `` 
     `locality' ''.
       (g) Anti-Kickback Act of 1986.--Section 7(d) of the Anti-
     Kickback Act of 1986 (41 U.S.C. 57(d)) is amended--
       (1) by striking out ``such Act'' and inserting in lieu 
     thereof ``the Office of Federal Procurement Policy Act''; and
       (2) by striking out the second period at the end.
       (h) Office of Federal Procurement Policy Act.--The Office 
     of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is 
     amended as follows:
       (1) Section 6 (41 U.S.C. 405) is amended by transferring 
     paragraph (12) of subsection (d) (as such paragraph was 
     redesignated by section 5091(2) of the Federal Acquisition 
     Streamlining Act of 1994 (P.L. 103-355; 108 Stat. 3361)) to 
     the end of that subsection.
       (2) Section 6(11) (41 U.S.C. 405(11)) is amended by 
     striking out ``small business'' and inserting in lieu thereof 
     ``small businesses''.
       (3) Section 18(b) (41 U.S.C. 416(b)) is amended by 
     inserting ``and'' after the semicolon at the end of paragraph 
     (5).
       (4) Section 26(f)(3) (41 U.S.C. 422(f)(3)) is amended in 
     the first sentence by striking out ``Not later than 180 days 
     after the date of enactment of this section, the 
     Administrator'' and inserting in lieu thereof ``The 
     Administrator''.
       (i) Other Laws.--
       (1) The National Defense Authorization Act for Fiscal Year 
     1994 (Public Law 103-160) is amended as follows:
       (A) Section 126(c) (107 Stat. 1567) is amended by striking 
     out ``section 2401 of title 10, United States Code, or 
     section 9081 of the Department of Defense Appropriations Act, 
     1990 (10 U.S.C. 2401 note).'' and inserting in lieu thereof 
     ``section 2401 or 2401a of title 10, United States Code.''.
       (B) Section 127 (107 Stat. 1568) is amended--
       (i) in subsection (a), by striking out ``section 2401 of 
     title 10, United States Code, or section 9081 of the 
     Department of Defense Appropriations Act, 1990 (10 U.S.C. 
     2401 note).'' and inserting in lieu thereof ``section 2401 or 
     2401a of title 10, United States Code.''; and
       (ii) in subsection (e), by striking out ``section 9081 of 
     the Department of Defense Appropriations Act, 1990 (10 U.S.C. 
     2401 note).'' and inserting in lieu thereof ``section 2401a 
     of title 10, United States Code.''.
       (2) The National Defense Authorization Act for Fiscal Years 
     1990 and 1991 (Public Law 101-189) is amended by striking out 
     section 824.
       (3) Section 117 of the National Defense Authorization Act, 
     Fiscal Year 1989 (Public Law 

[[Page H494]]
     100-456; 10 U.S.C. 2431 note) is amended by striking out subsection 
     (c).
       (4) The National Defense Authorization Act for Fiscal Years 
     1988 and 1989 (Public Law 100-180) is amended by striking out 
     section 825 (10 U.S.C. 2432 note).
       (5) Section 11 of Public Law 101-552 (5 U.S.C. 581 note) is 
     amended by inserting ``under'' before ``the amendments made 
     by this Act''.
       (6) The last sentence of section 6 of the Federal Power Act 
     (16 U.S.C. 799) is repealed.
       (7) Section 101(a)(11)(A) of the Rehabilitation Act of 1973 
     (29 U.S.C. 721(a)(11)(A)) is amended by striking out ``the 
     Act entitled `An Act to create a Committee on Purchases of 
     Blind-made Products, and for other purposes', approved June 
     25, 1938 (commonly known as the Wagner-O'Day Act; 41 U.S.C. 
     46 et seq.)'' and inserting in lieu thereof ``the Javits-
     Wagner-O'Day Act (41 U.S.C. 46 et seq.)''.
       (8) The first section 5 of the Miller Act (40 U.S.C. 270a 
     note) is redesignated as section 7 and, as so redesignated, 
     is transferred to the end of that Act.
       (9) Section 3737(g) of the Revised Statutes of the United 
     States (41 U.S.C. 15(g)) is amended by striking out ``rights 
     of obligations'' and inserting in lieu thereof ``rights or 
     obligations''.
       (10) The Act of June 15, 1940 (41 U.S.C. 20a; Chapter 367; 
     54 Stat. 398), is repealed.
       (11) The Act of November 28, 1943 (41 U.S.C. 20b; Chapter 
     328; 57 Stat. 592), is repealed.
       (12) Section 3741 of the Revised Statutes of the United 
     States (41 U.S.C. 22), as amended by section 6004 of Public 
     Law 103-355 (108 Stat. 3364), is amended by striking out ``No 
     member'' and inserting in lieu thereof ``Sec. 3741. No 
     Member''.
       (13) Section 5152(a)(1) of the Drug-Free Workplace Act of 
     1988 (41 U.S.C. 701(a)(1)) is amended by striking out ``as 
     defined in section 4 of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 403)'' and inserting in lieu thereof 
     ``(as defined in section 4(12) of such Act (41 U.S.C. 
     403(12)))''.

     SEC. 4322. MISCELLANEOUS AMENDMENTS TO FEDERAL ACQUISITION 
                   LAWS.

       (a) Office of Federal Procurement Policy Act.--The Office 
     of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is 
     amended as follows:
       (1) Section 6(b) (41 U.S.C. 405(b)) is amended by striking 
     out the second comma after ``under subsection (a)'' in the 
     first sentence.
       (2) Section 25(b)(2) (41 U.S.C. 421(b)(2)) is amended by 
     striking out ``Under Secretary of Defense for Acquisition'' 
     and inserting in lieu thereof ``Under Secretary of Defense 
     for Acquisition and Technology''.
       (b) Other Laws.--
       (1) Section 11(2) of the Inspector General Act of 1978 (5 
     U.S.C. App.) is amended by striking out the second comma 
     after ``Community Service''.
       (2) Section 908(e) of the Defense Acquisition Improvement 
     Act of 1986 (10 U.S.C. 2326 note) is amended by striking out 
     ``section 2325(g)'' and inserting in lieu thereof ``section 
     2326(g)''.
       (3) Effective as of August 9, 1989, and as if included 
     therein as enacted, Public Law 101-73 is amended in section 
     501(b)(1)(A) (103 Stat. 393) by striking out ``be,'' and 
     inserting in lieu thereof ``be;'' in the second quoted matter 
     therein.
       (4) Section 3732(a) of the Revised Statutes of the United 
     States (41 U.S.C. 11(a)) is amended by striking out the 
     second comma after ``quarters''.
       (5) Section 2 of the Contract Disputes Act of 1978 (41 
     U.S.C. 601) is amended in paragraphs (3), (5), (6), and (7), 
     by striking out ``The'' and inserting in lieu thereof 
     ``the''.
       (6) Section 6 of the Contract Disputes Act of 1978 (41 
     U.S.C. 605) is amended in subsections (d) and (e) by 
     inserting after ``United States Code'' each place it appears 
     the following: ``(as in effect on September 30, 1995)''.
       (7) Section 13 of the Contract Disputes Act of 1978 (41 
     U.S.C. 612) is amended--
       (A) in subsection (a), by striking out ``section 1302 of 
     the Act of July 27, 1956, (70 Stat. 694, as amended; 31 
     U.S.C. 724a)'' and inserting in lieu thereof ``section 1304 
     of title 31, United States Code''; and
       (B) in subsection (c), by striking out ``section 1302 of 
     the Act of July 27, 1956, (70 Stat. 694, as amended; 31 
     U.S.C. 724a)'' and inserting in lieu thereof ``section 1304 
     of title 31, United States Code,''.
             TITLE XLIV--EFFECTIVE DATES AND IMPLEMENTATION

     SEC. 4401. EFFECTIVE DATE AND APPLICABILITY.

       (a) Effective Date.--Except as otherwise provided in this 
     division, this division and the amendments made by this 
     division shall take effect on the date of the enactment of 
     this Act.
       (b) Applicability of Amendments.--
       (1) Solicitations, unsolicited proposals, and related 
     contracts.--An amendment made by this division shall apply, 
     in the manner prescribed in the final regulations promulgated 
     pursuant to section 4402 to implement such amendment, with 
     respect to any solicitation that is issued, any unsolicited 
     proposal that is received, and any contract entered into 
     pursuant to such a solicitation or proposal, on or after the 
     date described in paragraph (3).
       (2) Other matters.--An amendment made by this division 
     shall also apply, to the extent and in the manner prescribed 
     in the final regulations promulgated pursuant to section 4402 
     to implement such amendment, with respect to any matter 
     related to--
       (A) a contract that is in effect on the date described in 
     paragraph (3);
       (B) an offer under consideration on the date described in 
     paragraph (3); or
       (C) any other proceeding or action that is ongoing on the 
     date described in paragraph (3).
       (3) Demarcation date.--The date referred to in paragraphs 
     (1) and (2) is the date specified in such final regulations. 
     The date so specified shall be January 1, 1997, or any 
     earlier date that is not within 30 days after the date on 
     which such final regulations are published.

     SEC. 4402. IMPLEMENTING REGULATIONS.

       (a) Proposed Revisions.--Proposed revisions to the Federal 
     Acquisition Regulation and such other proposed regulations 
     (or revisions to existing regulations) as may be necessary to 
     implement this Act shall be published in the Federal Register 
     not later than 210 days after the date of the enactment of 
     this Act.
       (b) Public Comment.--The proposed regulations described in 
     subsection (a) shall be made available for public comment for 
     a period of not less than 60 days.
       (c) Final Regulations.--Final regulations shall be 
     published in the Federal Register not later than 330 days 
     after the date of enactment of this Act.
       (d) Modifications.--Final regulations promulgated pursuant 
     to this section to implement an amendment made by this Act 
     may provide for modification of an existing contract without 
     consideration upon the request of the contractor.
       (e) Savings Provisions.--
       (1) Validity of prior actions.--Nothing in this division 
     shall be construed to affect the validity of any action taken 
     or any contract entered into before the date specified in the 
     regulations pursuant to section 4401(b)(3) except to the 
     extent and in the manner prescribed in such regulations.
       (2) Renegotiation and modification of preexisting 
     contracts.--Except as specifically provided in this division, 
     nothing in this division shall be construed to require the 
     renegotiation or modification of contracts in existence on 
     the date of the enactment of this Act.
       (3) Continued applicability of preexisting law.--Except as 
     otherwise provided in this division, a law amended by this 
     division shall continue to be applied according to the 
     provisions thereof as such law was in effect on the day 
     before the date of the enactment of this Act until--
       (A) the date specified in final regulations implementing 
     the amendment of that law (as promulgated pursuant to this 
     section); or
       (B) if no such date is specified in regulations, January 1, 
     1997.
          DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

     SEC. 5001. SHORT TITLE.

       This division may be cited as the ``Information Technology 
     Management Reform Act of 1996''.

     SEC. 5002. DEFINITIONS.

       In this division:
       (1) Director.--The term ``Director'' means the Director of 
     the Office of Management and Budget.
       (2) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 4(1) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(1)).
       (3) Information technology.--(A) The term ``information 
     technology'', with respect to an executive agency means any 
     equipment or interconnected system or subsystem of equipment, 
     that is used in the automatic acquisition, storage, 
     manipulation, management, movement, control, display, 
     switching, interchange, transmission, or reception of data or 
     information by the executive agency. For purposes of the 
     preceding sentence, equipment is used by an executive agency 
     if the equipment is used by the executive agency directly or 
     is used by a contractor under a contract with the executive 
     agency which (i) requires the use of such equipment, or (ii) 
     requires the use, to a significant extent, of such equipment 
     in the performance of a service or the furnishing of a 
     product.
       (B) The term ``information technology'' includes computers, 
     ancillary equipment, software, firmware and similar 
     procedures, services (including support services), and 
     related resources.
       (C) Notwithstanding subparagraphs (A) and (B), the term 
     ``information technology'' does not include any equipment 
     that is acquired by a Federal contractor incidental to a 
     Federal contract.
       (4) Information resources.--The term ``information 
     resources'' has the meaning given such term in section 
     3502(6) of title 44, United States Code.
       (5) Information resources management.--The term 
     ``information resources management'' has the meaning given 
     such term in section 3502(7) of title 44, United States Code.
       (6) Information system.--The term ``information system'' 
     has the meaning given such term in section 3502(8) of title 
     44, United States Code.
       (7) Commercial item.--The term ``commercial item'' has the 
     meaning given that term in section 4(12) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(12)). 
     
[[Page H495]]

  TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY
                     Subtitle A--General Authority

     SEC. 5101. REPEAL OF CENTRAL AUTHORITY OF THE ADMINISTRATOR 
                   OF GENERAL SERVICES.

       Section 111 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 759) is repealed.
      Subtitle B--Director of the Office of Management and Budget

     SEC. 5111. RESPONSIBILITY OF DIRECTOR.

       In fulfilling the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Director shall comply with this title with 
     respect to the specific matters covered by this title.

     SEC. 5112. CAPITAL PLANNING AND INVESTMENT CONTROL.

       (a) Federal Information Technology.--The Director shall 
     perform the responsibilities set forth in this section in 
     fulfilling the responsibilities under section 3504(h) of 
     title 44, United States Code.
       (b) Use of Information Technology in Federal Programs.--The 
     Director shall promote and be responsible for improving the 
     acquisition, use, and disposal of information technology by 
     the Federal Government to improve the productivity, 
     efficiency, and effectiveness of Federal programs, including 
     through dissemination of public information and the reduction 
     of information collection burdens on the public.
       (c) Use of Budget Process.--The Director shall develop, as 
     part of the budget process, a process for analyzing, 
     tracking, and evaluating the risks and results of all major 
     capital investments made by an executive agency for 
     information systems. The process shall cover the life of each 
     system and shall include explicit criteria for analyzing the 
     projected and actual costs, benefits, and risks associated 
     with the investments. At the same time that the President 
     submits the budget for a fiscal year to Congress under 
     section 1105(a) of title 31, United States Code, the Director 
     shall submit to Congress a report on the net program 
     performance benefits achieved as a result of major capital 
     investments made by executive agencies in information systems 
     and how the benefits relate to the accomplishment of the 
     goals of the executive agencies.
       (d) Information Technology Standards.--The Director shall 
     oversee the development and implementation of standards and 
     guidelines pertaining to Federal computer systems by the 
     Secretary of Commerce through the National Institute of 
     Standards and Technology under section 5131 and section 20 of 
     the National Institute of Standards and Technology Act (15 
     U.S.C. 278g-3).
       (e) Designation of Executive Agents for Acquisitions.--The 
     Director shall designate (as the Director considers 
     appropriate) one or more heads of executive agencies as 
     executive agent for Government-wide acquisitions of 
     information technology.
       (f) Use of Best Practices in Acquisitions.--The Director 
     shall encourage the heads of the executive agencies to 
     develop and use the best practices in the acquisition of 
     information technology.
       (g) Assessment of Other Models for Managing Information 
     Technology.--The Director shall assess, on a continuing 
     basis, the experiences of executive agencies, State and local 
     governments, international organizations, and the private 
     sector in managing information technology.
       (h) Comparison of Agency Uses of Information Technology.--
     The Director shall compare the performances of the executive 
     agencies in using information technology and shall 
     disseminate the comparisons to the heads of the executive 
     agencies.
       (i) Training.--The Director shall monitor the development 
     and implementation of training in information resources 
     management for executive agency personnel.
       (j) Informing Congress.--The Director shall keep Congress 
     fully informed on the extent to which the executive agencies 
     are improving the performance of agency programs and the 
     accomplishment of agency missions through the use of the best 
     practices in information resources management.
       (k) Procurement Policy and Acquisitions of Information 
     Technology.--The Director shall coordinate the development 
     and review by the Administrator of the Office of Information 
     and Regulatory Affairs of policy associated with Federal 
     acquisition of information technology with the Office of 
     Federal Procurement Policy.

     SEC. 5113. PERFORMANCE-BASED AND RESULTS-BASED MANAGEMENT.

       (a) In General.--The Director shall encourage the use of 
     performance-based and results-based management in fulfilling 
     the responsibilities assigned under section 3504(h), of title 
     44, United States Code.
       (b) Evaluation of Agency Programs and Investments.--
       (1) Requirement.--The Director shall evaluate the 
     information resources management practices of the executive 
     agencies with respect to the performance and results of the 
     investments made by the executive agencies in information 
     technology.
       (2) Direction for executive agency action.--The Director 
     shall issue to the head of each executive agency clear and 
     concise direction that the head of such agency shall--
       (A) establish effective and efficient capital planning 
     processes for selecting, managing, and evaluating the results 
     of all of its major investments in information systems;
       (B) determine, before making an investment in a new 
     information system--
       (i) whether the function to be supported by the system 
     should be performed by the private sector and, if so, whether 
     any component of the executive agency performing that 
     function should be converted from a governmental organization 
     to a private sector organization; or
       (ii) whether the function should be performed by the 
     executive agency and, if so, whether the function should be 
     performed by a private sector source under contract or by 
     executive agency personnel;
       (C) analyze the missions of the executive agency and, based 
     on the analysis, revise the executive agency's mission-
     related processes and administrative processes, as 
     appropriate, before making significant investments in 
     information technology to be used in support of those 
     missions; and
       (D) ensure that the information security policies, 
     procedures, and practices are adequate.
       (3) Guidance for multiagency investments.--The direction 
     issued under paragraph (2) shall include guidance for 
     undertaking efficiently and effectively interagency and 
     Government-wide investments in information technology to 
     improve the accomplishment of missions that are common to the 
     executive agencies.
       (4) Periodic reviews.--The Director shall implement through 
     the budget process periodic reviews of selected information 
     resources management activities of the executive agencies in 
     order to ascertain the efficiency and effectiveness of 
     information technology in improving the performance of the 
     executive agency and the accomplishment of the missions of 
     the executive agency.
       (5) Enforcement of accountability.--
       (A) In general.--The Director may take any authorized 
     action that the Director considers appropriate, including an 
     action involving the budgetary process or appropriations 
     management process, to enforce accountability of the head of 
     an executive agency for information resources management and 
     for the investments made by the executive agency in 
     information technology.
       (B) Specific actions.--Actions taken by the Director in the 
     case of an executive agency may include--
       (i) recommending a reduction or an increase in any amount 
     for information resources that the head of the executive 
     agency proposes for the budget submitted to Congress under 
     section 1105(a) of title 31, United States Code;
       (ii) reducing or otherwise adjusting apportionments and 
     reapportionments of appropriations for information resources;
       (iii) using other authorized administrative controls over 
     appropriations to restrict the availability of funds for 
     information resources; and
       (iv) designating for the executive agency an executive 
     agent to contract with private sector sources for the 
     performance of information resources management or the 
     acquisition of information technology.
                     Subtitle C--Executive Agencies

     SEC. 5121. RESPONSIBILITIES.

       In fulfilling the responsibilities assigned under chapter 
     35 of title 44, United States Code, the head of each 
     executive agency shall comply with this subtitle with respect 
     to the specific matters covered by this subtitle.

     SEC. 5122. CAPITAL PLANNING AND INVESTMENT CONTROL.

       (a) Design of Process.--In fulfilling the responsibilities 
     assigned under section 3506(h) of title 44, United States 
     Code, the head of each executive agency shall design and 
     implement in the executive agency a process for maximizing 
     the value and assessing and managing the risks of the 
     information technology acquisitions of the executive agency.
       (b) Content of Process.--The process of an executive agency 
     shall--
       (1) provide for the selection of information technology 
     investments to be made by the executive agency, the 
     management of such investments, and the evaluation of the 
     results of such investments;
       (2) be integrated with the processes for making budget, 
     financial, and program management decisions within the 
     executive agency;
       (3) include minimum criteria to be applied in considering 
     whether to undertake a particular investment in information 
     systems, including criteria related to the quantitatively 
     expressed projected net, risk-adjusted return on investment 
     and specific quantitative and qualitative criteria for 
     comparing and prioritizing alternative information systems 
     investment projects;
       (4) provide for identifying information systems investments 
     that would result in shared benefits or costs for other 
     Federal agencies or State or local governments;
       (5) provide for identifying for a proposed investment 
     quantifiable measurements for determining the net benefits 
     and risks of the investment; and
       (6) provide the means for senior management personnel of 
     the executive agency to obtain timely information regarding 
     the progress of an investment in an information system, 
     including a system of milestones for measuring progress, on 
     an independently verifiable basis, in terms of cost, 
     capability of the system to meet specified requirements, 
     timeliness, and quality.

     SEC. 5123. PERFORMANCE AND RESULTS-BASED MANAGEMENT.

       In fulfilling the responsibilities under section 3506(h) of 
     title 44, United States Code, the head of an executive agency 
     shall--
     
[[Page H496]]

       (1) establish goals for improving the efficiency and 
     effectiveness of agency operations and, as appropriate, the 
     delivery of services to the public through the effective use 
     of information technology;
       (2) prepare an annual report, to be included in the 
     executive agency's budget submission to Congress, on the 
     progress in achieving the goals;
       (3) ensure that performance measurements are prescribed for 
     information technology used by or to be acquired for, the 
     executive agency and that the performance measurements 
     measure how well the information technology supports programs 
     of the executive agency;
       (4) where comparable processes and organizations in the 
     public or private sectors exist, quantitatively benchmark 
     agency process performance against such processes in terms of 
     cost, speed, productivity, and quality of outputs and 
     outcomes;
       (5) analyze the missions of the executive agency and, based 
     on the analysis, revise the executive agency's mission-
     related processes and administrative processes as appropriate 
     before making significant investments in information 
     technology that is to be used in support of the performance 
     of those missions; and
       (6) ensure that the information security policies, 
     procedures, and practices of the executive agency are 
     adequate.

     SEC. 5124. ACQUISITIONS OF INFORMATION TECHNOLOGY.

       (a) In General.--The authority of the head of an executive 
     agency to conduct an acquisition of information technology 
     includes the following authorities:
       (1) To acquire information technology as authorized by law.
       (2) To enter into a contract that provides for multiagency 
     acquisitions of information technology in accordance with 
     guidance issued by the Director.
       (3) If the Director finds that it would be advantageous for 
     the Federal Government to do so, to enter into a multiagency 
     contract for procurement of commercial items of information 
     technology that requires each executive agency covered by the 
     contract, when procuring such items, either to procure the 
     items under that contract or to justify an alternative 
     procurement of the items.
       (b) FTS 2000 Program.--Notwithstanding any other provision 
     of this or any other law, the Administrator of General 
     Services shall continue to manage the FTS 2000 program, and 
     to coordinate the follow-on to that program, on behalf of and 
     with the advice of the heads of executive agencies.

     SEC. 5125. AGENCY CHIEF INFORMATION OFFICER.

       (a) Designation of Chief Information Officers.--Section 
     3506 of title 44, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (2)(A), by striking out ``senior 
     official'' and inserting in lieu thereof ``Chief Information 
     Officer'';
       (B) in paragraph (2)(B)--
       (i) by striking out ``senior officials'' in the first 
     sentence and inserting in lieu thereof ``Chief Information 
     Officers'';
       (ii) by striking out ``official'' in the second sentence 
     and inserting in lieu thereof ``Chief Information Officer''; 
     and
       (iii) by striking out ``officials'' in the second sentence 
     and inserting in lieu thereof ``Chief Information Officers''; 
     and
       (C) in paragraphs (3) and (4), by striking out ``senior 
     official'' each place it appears and inserting in lieu 
     thereof ``Chief Information Officer''; and
       (2) in subsection (c)(1), by striking out ``official'' in 
     the matter preceding subparagraph (A) and inserting in lieu 
     thereof ``Chief Information Officer''.
       (b) General Responsibilities.--The Chief Information 
     Officer of an executive agency shall be responsible for--
       (1) providing advice and other assistance to the head of 
     the executive agency and other senior management personnel of 
     the executive agency to ensure that information technology is 
     acquired and information resources are managed for the 
     executive agency in a manner that implements the policies and 
     procedures of this division, consistent with chapter 35 of 
     title 44, United States Code, and the priorities established 
     by the head of the executive agency;
       (2) developing, maintaining, and facilitating the 
     implementation of a sound and integrated information 
     technology architecture for the executive agency; and
       (3) promoting the effective and efficient design and 
     operation of all major information resources management 
     processes for the executive agency, including improvements to 
     work processes of the executive agency.
       (c) Duties and Qualifications.--The Chief Information 
     Officer of an agency that is listed in section 901(b) of 
     title 31, United States Code, shall--
       (1) have information resources management duties as that 
     official's primary duty;
       (2) monitor the performance of information technology 
     programs of the agency, evaluate the performance of those 
     programs on the basis of the applicable performance 
     measurements, and advise the head of the agency regarding 
     whether to continue, modify, or terminate a program or 
     project; and
       (3) annually, as part of the strategic planning and 
     performance evaluation process required (subject to section 
     1117 of title 31, United States Code) under section 306 of 
     title 5, United States Code, and sections 1105(a)(29), 1115, 
     1116, 1117, and 9703 of title 31, United States Code--
       (A) assess the requirements established for agency 
     personnel regarding knowledge and skill in information 
     resources management and the adequacy of such requirements 
     for facilitating the achievement of the performance goals 
     established for information resources management;
       (B) assess the extent to which the positions and personnel 
     at the executive level of the agency and the positions and 
     personnel at management level of the agency below the 
     executive level meet those requirements;
       (C) in order to rectify any deficiency in meeting those 
     requirements, develop strategies and specific plans for 
     hiring, training, and professional development; and
       (D) report to the head of the agency on the progress made 
     in improving information resources management capability.
       (d) Information Technology Architecture Defined.--In this 
     section, the term ``information technology architecture'', 
     with respect to an executive agency, means an integrated 
     framework for evolving or maintaining existing information 
     technology and acquiring new information technology to 
     achieve the agency's strategic goals and information 
     resources management goals.
       (e) Executive Level IV.--Section 5315 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``Chief Information Officer, Department of Agriculture.
       ``Chief Information Officer, Department of Commerce.
       ``Chief Information Officer, Department of Defense (unless 
     the official designated as the Chief Information Officer of 
     the Department of Defense is an official listed under section 
     5312, 5313, or 5314 of this title).
       ``Chief Information Officer, Department of Education.
       ``Chief Information Officer, Department of Energy.
       ``Chief Information Officer, Department of Health and Human 
     Services.
       ``Chief Information Officer, Department of Housing and 
     Urban Development.
       ``Chief Information Officer, Department of Interior.
       ``Chief Information Officer, Department of Justice.
       ``Chief Information Officer, Department of Labor.
       ``Chief Information Officer, Department of State.
       ``Chief Information Officer, Department of Transportation.
       ``Chief Information Officer, Department of Treasury.
       ``Chief Information Officer, Department of Veterans 
     Affairs.
       ``Chief Information Officer, Environmental Protection 
     Agency.
       ``Chief Information Officer, National Aeronautics and Space 
     Administration.
       ``Chief Information Officer, Agency for International 
     Development.
       ``Chief Information Officer, Federal Emergency Management 
     Agency.
       ``Chief Information Officer, General Services 
     Administration.
       ``Chief Information Officer, National Science Foundation.
       ``Chief Information Officer, Nuclear Regulatory Agency.
       ``Chief Information Officer, Office of Personnel 
     Management.
       ``Chief Information Officer, Small Business 
     Administration.''.

     SEC. 5126. ACCOUNTABILITY.

       The head of each executive agency, in consultation with the 
     Chief Information Officer and the Chief Financial Officer of 
     that executive agency (or, in the case of an executive agency 
     without a Chief Financial Officer, any comparable official), 
     shall establish policies and procedures that--
       (1) ensure that the accounting, financial, and asset 
     management systems and other information systems of the 
     executive agency are designed, developed, maintained, and 
     used effectively to provide financial or program performance 
     data for financial statements of the executive agency;
       (2) ensure that financial and related program performance 
     data are provided on a reliable, consistent, and timely basis 
     to executive agency financial management systems; and
       (3) ensure that financial statements support--
       (A) assessments and revisions of mission-related processes 
     and administrative processes of the executive agency; and
       (B) performance measurement of the performance in the case 
     of investments made by the agency in information systems.

     SEC. 5127. SIGNIFICANT DEVIATIONS.

       The head of an executive agency shall identify in the 
     strategic information resources management plan required 
     under section 3506(b)(2) of title 44, United States Code, any 
     major information technology acquisition program, or any 
     phase or increment of such a program, that has significantly 
     deviated from the cost, performance, or schedule goals 
     established for the program.

     SEC. 5128. INTERAGENCY SUPPORT.

       Funds available for an executive agency for oversight, 
     acquisition, and procurement of information technology may be 
     used by the head of the executive agency to support jointly 
     with other executive agencies the activities of interagency 
     groups that are established to advise the Director in 
     carrying out the Director's responsibilities under this 
     title. The use of such funds for that purpose shall be 
     subject to such requirements and 

[[Page H497]]
     limitations on uses and amounts as the Director may prescribe. The 
     Director shall prescribe any such requirements and 
     limitations during the Director's review of the executive 
     agency's proposed budget submitted to the Director by the 
     head of the executive agency for purposes of section 1105 of 
     title 31, United States Code.
                   Subtitle D--Other Responsibilities

     SEC. 5131. RESPONSIBILITIES REGARDING EFFICIENCY, SECURITY, 
                   AND PRIVACY OF FEDERAL COMPUTER SYSTEMS.

       (a) Standards and Guidelines.--
       (1) Authority.--The Secretary of Commerce shall, on the 
     basis of standards and guidelines developed by the National 
     Institute of Standards and Technology pursuant to paragraphs 
     (2) and (3) of section 20(a) of the National Institute of 
     Standards and Technology Act (15 U.S.C. 278g-3(a)), 
     promulgate standards and guidelines pertaining to Federal 
     computer systems. The Secretary shall make such standards 
     compulsory and binding to the extent to which the Secretary 
     determines necessary to improve the efficiency of operation 
     or security and privacy of Federal computer systems. The 
     President may disapprove or modify such standards and 
     guidelines if the President determines such action to be in 
     the public interest. The President's authority to disapprove 
     or modify such standards and guidelines may not be delegated. 
     Notice of such disapproval or modification shall be published 
     promptly in the Federal Register. Upon receiving notice of 
     such disapproval or modification, the Secretary of Commerce 
     shall immediately rescind or modify such standards or 
     guidelines as directed by the President.
       (2) Exercise of authority.--The authority conferred upon 
     the Secretary of Commerce by this section shall be exercised 
     subject to direction by the President and in coordination 
     with the Director to ensure fiscal and policy consistency.
       (b) Application of More Stringent Standards.--The head of a 
     Federal agency may employ standards for the cost-effective 
     security and privacy of sensitive information in a Federal 
     computer system within or under the supervision of that 
     agency that are more stringent than the standards promulgated 
     by the Secretary of Commerce under this section, if such 
     standards contain, at a minimum, the provisions of those 
     applicable standards made compulsory and binding by the 
     Secretary of Commerce.
       (c) Waiver of Standards.--The standards determined under 
     subsection (a) to be compulsory and binding may be waived by 
     the Secretary of Commerce in writing upon a determination 
     that compliance would adversely affect the accomplishment of 
     the mission of an operator of a Federal computer system, or 
     cause a major adverse financial impact on the operator which 
     is not offset by Government-wide savings. The Secretary may 
     delegate to the head of one or more Federal agencies 
     authority to waive such standards to the extent to which the 
     Secretary determines such action to be necessary and 
     desirable to allow for timely and effective implementation of 
     Federal computer system standards. The head of such agency 
     may redelegate such authority only to a Chief Information 
     Officer designated pursuant to section 3506 of title 44, 
     United States Code. Notice of each such waiver and delegation 
     shall be transmitted promptly to Congress and shall be 
     published promptly in the Federal Register.
       (d) Definitions.--In this section, the terms ``Federal 
     computer system'' and ``operator of a Federal computer 
     system'' have the meanings given such terms in section 20(d) 
     of the National Institute of Standards and Technology Act (15 
     U.S.C. 278g-3(d)).
       (e) Technical Amendments.--Chapter 35 of title 44, United 
     States Code, is amended--
       (1) in section 3504(g)--
       (A) in paragraph (2), by striking out ``the Computer 
     Security Act of 1987 (40 U.S.C. 759 note)'' and inserting in 
     lieu thereof ``sections 20 and 21 of the National Institute 
     of Standards and Technology Act (15 U.S.C. 278g-3 and 278g-
     4), section 5131 of the Information Technology Management 
     Reform Act of 1996, and sections 5 and 6 of the Computer 
     Security Act of 1987 (40 U.S.C. 759 note)''; and
       (B) in paragraph (3), by striking out ``the Computer 
     Security Act of 1987 (40 U.S.C. 759 note)'' and inserting in 
     lieu thereof ``the standards and guidelines promulgated under 
     section 5131 of the Information Technology Management Reform 
     Act of 1996 and sections 5 and 6 of the Computer Security Act 
     of 1987 (40 U.S.C. 759 note)''; and
       (2) in section 3518(d), by striking out ``Public Law 89-306 
     on the Administrator of the General Services Administration, 
     the Secretary of Commerce, or'' and inserting in lieu thereof 
     ``section 5131 of the Information Technology Management 
     Reform Act of 1996 and the Computer Security Act of 1987 (40 
     U.S.C. 759 note) on the Secretary of Commerce or''.

     SEC. 5132. SENSE OF CONGRESS.

       It is the sense of Congress that, during the next five-year 
     period beginning with 1996, executive agencies should achieve 
     each year at least a 5 percent decrease in the cost (in 
     constant fiscal year 1996 dollars) that is incurred by the 
     agency for operating and maintaining information technology, 
     and each year a 5 percent increase in the efficiency of the 
     agency operations, by reason of improvements in information 
     resources management by the agency.
                 Subtitle E--National Security Systems

     SEC. 5141. APPLICABILITY TO NATIONAL SECURITY SYSTEMS.

       (a) In General.--Except as provided in subsection (b), this 
     title does not apply to national security systems.
       (b) Exceptions.--
       (1) In general.--Sections 5123, 5125, and 5126 apply to 
     national security systems.
       (2) Capital planning and investment control.--The heads of 
     executive agencies shall apply sections 5112 and 5122 to 
     national security systems to the extent practicable.
       (3) Performance and results of information technology 
     investments.--(A) Subject to subparagraph (B), the heads of 
     executive agencies shall apply section 5113 to national 
     security systems to the extent practicable.
       (B) National security systems shall be subject to section 
     5113(b)(5) except for subparagraph (B)(iv) of that section.

     SEC. 5142. NATIONAL SECURITY SYSTEM DEFINED.

       (a) Definition.--In this subtitle, the term ``national 
     security system'' means any telecommunications or information 
     system operated by the United States Government, the 
     function, operation, or use of which--
       (1) involves intelligence activities;
       (2) involves cryptologic activities related to national 
     security;
       (3) involves command and control of military forces;
       (4) involves equipment that is an integral part of a weapon 
     or weapons system; or
       (5) subject to subsection (b), is critical to the direct 
     fulfillment of military or intelligence missions.
       (b) Limitation.--Subsection (a)(5) does not include a 
     system that is to be used for routine administrative and 
     business applications (including payroll, finance, logistics, 
     and personnel management applications).
     TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

     SEC. 5201. PROCUREMENT PROCEDURES.

       The Federal Acquisition Regulatory Council shall ensure 
     that, to the maximum extent practicable, the process for 
     acquisition of information technology is a simplified, clear, 
     and understandable process that specifically addresses the 
     management of risk, incremental acquisitions, and the need to 
     incorporate commercial information technology in a timely 
     manner.

     SEC. 5202. INCREMENTAL ACQUISITION OF INFORMATION TECHNOLOGY.

       (a) Policy.--The Office of Federal Procurement Policy Act 
     (41 U.S.C. 401 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 35. MODULAR CONTRACTING FOR INFORMATION TECHNOLOGY.

       ``(a) In General.--The head of an executive agency should, 
     to the maximum extent practicable, use modular contracting 
     for an acquisition of a major system of information 
     technology.
       ``(b) Modular Contracting Described.--Under modular 
     contracting, an executive agency's need for a system is 
     satisfied in successive acquisitions of interoperable 
     increments. Each increment complies with common or 
     commercially accepted standards applicable to information 
     technology so that the increments are compatible with other 
     increments of information technology comprising the system.
       ``(c) Implementation.--The Federal Acquisition Regulation 
     shall provide that--
       ``(1) under the modular contracting process, an acquisition 
     of a major system of information technology may be divided 
     into several smaller acquisition increments that--
       ``(A) are easier to manage individually than would be one 
     comprehensive acquisition;
       ``(B) address complex information technology objectives 
     incrementally in order to enhance the likelihood of achieving 
     workable solutions for attainment of those objectives;
       ``(C) provide for delivery, implementation, and testing of 
     workable systems or solutions in discrete increments each of 
     which comprises a system or solution that is not dependent on 
     any subsequent increment in order to perform its principal 
     functions; and
       ``(D) provide an opportunity for subsequent increments of 
     the acquisition to take advantage of any evolution in 
     technology or needs that occur during conduct of the earlier 
     increments;
       ``(2) a contract for an increment of an information 
     technology acquisition should, to the maximum extent 
     practicable, be awarded within 180 days after the date on 
     which the solicitation is issued and, if the contract for 
     that increment cannot be awarded within such period, the 
     increment should be considered for cancellation; and
       ``(3) the information technology provided for in a contract 
     for acquisition of information technology should be delivered 
     within 18 months after the date on which the solicitation 
     resulting in award of the contract was issued.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of such Act is amended by inserting after the item 
     relating to section 34 the following new item:
``Sec. 35. Modular contracting for information technology.''.
     TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS
                 Subtitle A--Conduct of Pilot Programs

     SEC. 5301. AUTHORITY TO CONDUCT PILOT PROGRAMS.

       (a) In General.--
     
[[Page H498]]

       (1) Purpose.--The Administrator for Federal Procurement 
     Policy (hereinafter referred to as the ``Administrator''), in 
     consultation with the Administrator for the Office of 
     Information and Regulatory Affairs, may conduct pilot 
     programs in order to test alternative approaches for 
     acquisition of information technology by executive agencies.
       (2) Multiagency, multi-activity conduct of each program.--
     Except as otherwise provided in this title, each pilot 
     program conducted under this title shall be carried out in 
     not more than two procuring activities in each of the 
     executive agencies that are designated by the Administrator 
     in accordance with this title to carry out the pilot 
     program. The head of each designated executive agency 
     shall, with the approval of the Administrator, select the 
     procuring activities of the executive agency that are to 
     participate in the test and shall designate a procurement 
     testing official who shall be responsible for the conduct 
     and evaluation of the pilot program within the executive 
     agency.
       (b) Limitations.--
       (1) Number.--Not more than two pilot programs may be 
     conducted under the authority of this title, including one 
     pilot program each pursuant to the requirements of sections 
     5311 and 5312.
       (2) Amount.--The total amount obligated for contracts 
     entered into under the pilot programs conducted under the 
     authority of this title may not exceed $750,000,000. The 
     Administrator shall monitor such contracts and ensure that 
     contracts are not entered into in violation of the limitation 
     in the preceding sentence.
       (c) Period of Programs.--
       (1) In general.--Subject to paragraph (2), any pilot 
     program may be carried out under this title for the period, 
     not in excess of five years, that is determined by the 
     Administrator as being sufficient to establish reliable 
     results.
       (2) Continuing validity of contracts.--A contract entered 
     into under the pilot program before the expiration of that 
     program shall remain in effect according to the terms of the 
     contract after the expiration of the program.

     SEC. 5302. EVALUATION CRITERIA AND PLANS.

       (a) Measurable Test Criteria.--The head of each executive 
     agency conducting a pilot program under section 5301 shall 
     establish, to the maximum extent practicable, measurable 
     criteria for evaluating the effects of the procedures or 
     techniques to be tested under the program.
       (b) Test Plan.--Before a pilot program may be conducted 
     under section 5301, the Administrator shall submit to 
     Congress a detailed test plan for the program, including a 
     detailed description of the procedures to be used and a list 
     of any regulations that are to be waived.

     SEC. 5303. REPORT.

       (a) Requirement.--Not later than 180 days after the 
     completion of a pilot program under this title, the 
     Administrator shall--
       (1) submit to the Director a report on the results and 
     findings under the program; and
       (2) provide a copy of the report to Congress.
       (b) Content.--The report shall include the following:
       (1) A detailed description of the results of the program, 
     as measured by the criteria established for the program.
       (2) A discussion of any legislation that the Administrator 
     recommends, or changes in regulations that the Administrator 
     considers necessary, in order to improve overall information 
     resources management within the Federal Government.

     SEC. 5304. RECOMMENDED LEGISLATION.

       If the Director determines that the results and findings 
     under a pilot program under this title indicate that 
     legislation is necessary or desirable in order to improve the 
     process for acquisition of information technology, the 
     Director shall transmit the Director's recommendations for 
     such legislation to Congress.

     SEC. 5305. RULE OF CONSTRUCTION.

       Nothing in this title shall be construed as authorizing the 
     appropriation or obligation of funds for the pilot programs 
     authorized under this title.
                  Subtitle B--Specific Pilot Programs

     SEC. 5311. SHARE-IN-SAVINGS PILOT PROGRAM.

       (a) Requirement.--The Administrator may authorize the heads 
     of two executive agencies to carry out a pilot program to 
     test the feasibility of--
       (1) contracting on a competitive basis with a private 
     sector source to provide the Federal Government with an 
     information technology solution for improving mission-related 
     or administrative processes of the Federal Government; and
       (2) paying the private sector source an amount equal to a 
     portion of the savings derived by the Federal Government from 
     any improvements in mission-related processes and 
     administrative processes that result from implementation of 
     the solution.
       (b) Limitations.--The head of an executive agency 
     authorized to carry out the pilot program may, under the 
     pilot program, carry out one project and enter into not more 
     than five contracts for the project.
       (c) Selection of Projects.--The projects shall be selected 
     by the Administrator, in consultation with the Administrator 
     for the Office of Information and Regulatory Affairs.

     SEC. 5312. SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.

       (a) In General.--The Administrator may authorize the heads 
     of any of the executive agencies, in accordance with 
     subsection (d)(2), to carry out a pilot program to test the 
     feasibility of using solutions-based contracting for 
     acquisition of information technology.
       (b) Solutions-Based Contracting Described.--For purposes of 
     this section, solutions-based contracting is an acquisition 
     method under which the acquisition objectives are defined by 
     the Federal Government user of the technology to be acquired, 
     a streamlined contractor selection process is used, and 
     industry sources are allowed to provide solutions that attain 
     the objectives effectively.
       (c) Process Requirements.--The Administrator shall require 
     use of a process with the following aspects for acquisitions 
     under the pilot program:
       (1) Acquisition plan emphasizing desired result.--
     Preparation of an acquisition plan that defines the 
     functional requirements of the intended users of the 
     information technology to be acquired, identifies the 
     operational improvements to be achieved, and defines the 
     performance measurements to be applied in determining whether 
     the information technology acquired satisfies the defined 
     requirements and attains the identified results.
       (2) Results-oriented statement of work.--Use of a statement 
     of work that is limited to an expression of the end results 
     or performance capabilities desired under the acquisition 
     plan.
       (3) Small acquisition organization.--Assembly of a small 
     acquisition organization consisting of the following:
       (A) An acquisition management team, the members of which 
     are to be evaluated and rewarded under the pilot program for 
     contributions toward attainment of the desired results 
     identified in the acquisition plan.
       (B) A small source selection team composed of 
     representatives of the specific mission or administrative 
     area to be supported by the information technology to be 
     acquired, together with a contracting officer and persons 
     with relevant expertise.
       (4) Use of source selection factors emphasizing source 
     qualifications and costs.--Use of source selection factors 
     that emphasize--
       (A) the qualifications of the offeror, including such 
     factors as personnel skills, previous experience in providing 
     other private or public sector organizations with solutions 
     for attaining objectives similar to the objectives of the 
     acquisition, past contract performance, qualifications of the 
     proposed program manager, and the proposed management plan; 
     and
       (B) the costs likely to be associated with the conceptual 
     approach proposed by the offeror.
       (5) Open communications with contractor community.--Open 
     availability of the following information to potential 
     offerors:
       (A) The agency mission to be served by the acquisition.
       (B) The functional process to be performed by use of 
     information technology.
       (C) The process improvements to be attained.
       (6) Simple solicitation.--Use of a simple solicitation that 
     sets forth only the functional work description, the source 
     selection factors to be used in accordance with paragraph 
     (4), the required terms and conditions, instructions 
     regarding submission of offers, and the estimate of the 
     Federal Government's budget for the desired work.
       (7) Simple proposals.--Submission of oral presentations and 
     written proposals that are limited in size and scope and 
     contain information on--
       (A) the offeror's qualifications to perform the desired 
     work;
       (B) past contract performance;
       (C) the proposed conceptual approach; and
       (D) the costs likely to be associated with the proposed 
     conceptual approach.
       (8) Simple evaluation.--Use of a simplified evaluation 
     process, to be completed within 45 days after receipt of 
     proposals, which consists of the following:
       (A) Identification of the most qualified offerors that are 
     within the competitive range.
       (B) Issuance of invitations for at least three and not more 
     than five of the identified offerors to make oral 
     presentations to, and engage in discussions with, the 
     evaluating personnel regarding, for each offeror--
       (i) the qualifications of the offeror, including how the 
     qualifications of the offeror relate to the approach proposed 
     to be taken by the offeror in the acquisition; and
       (ii) the costs likely to be associated with the approach.
       (C) Evaluation of the qualifications of the identified 
     offerors and the costs likely to be associated with the 
     offerors' proposals on the basis of submissions required 
     under the process and any oral presentations made by, and any 
     discussions with, the offerors.
       (9) Selection of most qualified offeror.--A selection 
     process consisting of the following:
       (A) Identification of the most qualified source, and 
     ranking of alternative sources, primarily on the basis of the 
     oral proposals, presentations, and discussions, and written 
     proposals submitted in accordance with paragraph (7).
       (B) Conduct for 30 to 60 days of a program definition phase 
     (funded, in the case of the source ultimately awarded the 
     contract, by the Federal Government)--
     
[[Page H499]]

       (i) during which the selected source, in consultation with 
     one or more intended users, develops a conceptual system 
     design and technical approach, defines logical phases for the 
     project, and estimates the total cost and the cost for each 
     phase; and
       (ii) after which a contract for performance of the work may 
     be awarded to that source on the basis of cost, the 
     responsiveness, reasonableness, and quality of the proposed 
     performance, and a sharing of risk and benefits between the 
     source and the Government.
       (C) Conduct of as many successive program definition phases 
     with alternative sources (in the order ranked) as is 
     necessary in order to award a contract in accordance with 
     subparagraph (B).
       (10) System implementation phasing.--System implementation 
     to be executed in phases that are tailored to the solution, 
     with various contract arrangements being used, as 
     appropriate, for various phases and activities.
       (11) Mutual authority to terminate.--Authority for the 
     Federal Government or the contractor to terminate the 
     contract without penalty at the end of any phase defined for 
     the project.
       (12) Time management discipline.--Application of a standard 
     for awarding a contract within 105 to 120 days after issuance 
     of the solicitation.
       (d) Pilot Program Design.--
       (1) Joint public-private working group.--The Administrator, 
     in consultation with the Administrator for the Office of 
     Information and Regulatory Affairs, shall establish a joint 
     working group of Federal Government personnel and 
     representatives of the information technology industry to 
     design a plan for conduct of any pilot program carried out 
     under this section.
       (2) Content of plan.--The plan shall provide for use of 
     solutions-based contracting in the Department of Defense and 
     not more than two other executive agencies for a total of--
       (A) not more than 10 projects, each of which has an 
     estimated cost of between $25,000,000 and $100,000,000; and
       (B) not more than 10 projects, each of which has an 
     estimated cost of between $1,000,000 and $5,000,000, to be 
     set aside for small business concerns.
       (3) Complexity of projects.--(A) Subject to subparagraph 
     (C), each acquisition project under the pilot program shall 
     be sufficiently complex to provide for meaningful evaluation 
     of the use of solutions-based contracting for acquisition of 
     information technology for executive agencies.
       (B) In order for an acquisition project to satisfy the 
     requirement in subparagraph (A), the solution for attainment 
     of the executive agency's objectives under the project should 
     not be obvious, but rather shall involve a need for some 
     innovative development and systems integration.
       (C) An acquisition project should not be so extensive or 
     lengthy as to result in undue delay in the evaluation of the 
     use of solutions-based contracting.
       (e) Monitoring by GAO.--The Comptroller General of the 
     United States shall--
       (1) monitor the conduct, and review the results, of 
     acquisitions under the pilot program; and
       (2) submit to Congress periodic reports containing the 
     views of the Comptroller General on the activities, results, 
     and findings under the pilot program.
     TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

     SEC. 5401. ON-LINE MULTIPLE AWARD SCHEDULE CONTRACTING.

       (a) Automation of Multiple Award Schedule Contracting.--In 
     order to provide for the economic and efficient procurement 
     of information technology and other commercial items, the 
     Administrator of General Services shall provide through the 
     Federal Acquisition Computer Network (in this section 
     referred to as ``FACNET''), not later than January 1, 1998, 
     Government-wide on-line computer access to information on 
     products and services that are available for ordering under 
     the multiple award schedules. If the Administrator determines 
     it is not practicable to provide such access through FACNET, 
     the Administrator shall provide such access through another 
     automated system that has the capability to perform the 
     functions listed in subsection (b)(1) and meets the 
     requirement of subsection (b)(2).
       (b) Additional FACNET Functions.--(1) In addition to the 
     functions specified in section 30(b) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 426(b)), the FACNET 
     architecture shall have the capability to perform the 
     following functions:
       (A) Provide basic information on prices, features, and 
     performance of all products and services available for 
     ordering through the multiple award schedules.
       (B) Provide for updating that information to reflect 
     changes in prices, features, and performance as soon as 
     information on the changes becomes available.
       (C) Enable users to make on-line computer comparisons of 
     the prices, features, and performance of similar products and 
     services offered by various vendors.
       (2) The FACNET architecture shall be used to place orders 
     under the multiple award schedules in a fiscal year for an 
     amount equal to at least 60 percent of the total amount spent 
     for all orders under the multiple award schedules in that 
     fiscal year.
       (c) Streamlined Procedures.--
       (1) Pilot program.--Upon certification by the Administrator 
     of General Services that the FACNET architecture meets the 
     requirements of subsection (b)(1) and was used as required by 
     subsection (b)(2) in the fiscal year preceding the fiscal 
     year in which the certification is made, the Administrator 
     for Federal Procurement Policy may establish a pilot program 
     to test streamlined procedures for the procurement of 
     information technology products and services available for 
     ordering through the multiple award schedules.
       (2) Applicability to multiple award schedule contracts.--
     Except as provided in paragraph (4), the pilot program shall 
     be applicable to all multiple award schedule contracts for 
     the purchase of information technology and shall test the 
     following procedures:
       (A) A procedure under which negotiation of the terms and 
     conditions for a covered multiple award schedule contract is 
     limited to terms and conditions other than price.
       (B) A procedure under which the vendor establishes the 
     prices under a covered multiple award schedule contract and 
     may adjust those prices at any time in the discretion of the 
     vendor.
       (C) A procedure under which a covered multiple award 
     schedule contract is awarded to any responsible offeror 
     that--
       (i) has a suitable record of past performance, which may 
     include past performance on multiple award schedule 
     contracts;
       (ii) agrees to terms and conditions that the Administrator 
     determines as being required by law or as being appropriate 
     for the purchase of commercial items; and
       (iii) agrees to establish and update prices, features, and 
     performance and to accept orders electronically through the 
     automated system established pursuant to subsection (a).
       (3) Comptroller general review and report.--(A) Not later 
     than three years after the date on which the pilot program is 
     established, the Comptroller General of the United States 
     shall review the pilot program and report to the Congress on 
     the results of the pilot program.
       (B) The report shall include the following:
       (i) An evaluation of the extent to which there is 
     competition for the orders placed under the pilot program.
       (ii) The effect that the streamlined procedures under the 
     pilot program have on prices charged under multiple award 
     schedule contracts.
       (iii) The effect that such procedures have on paperwork 
     requirements for multiple award schedule contracts and 
     orders.
       (iv) The impact of the pilot program on small businesses 
     and socially and economically disadvantaged small businesses.
       (4) Withdrawal of schedule or portion of schedule from 
     pilot program.--The Administrator may withdraw a multiple 
     award schedule or portion of a schedule from the pilot 
     program if the Administrator determines that (A) price 
     competition is not available under such schedule or portion 
     thereof, or (B) the cost to the Government for that schedule 
     or portion thereof for the previous year was higher than it 
     would have been if the contracts for such schedule or portion 
     thereof had been awarded using procedures that would apply if 
     the pilot program were not in effect. The Administrator shall 
     notify Congress at least 30 days before the date on which the 
     Administrator withdraws a schedule or portion thereof under 
     this paragraph. The authority under this paragraph may not be 
     delegated.
       (5) Termination of pilot program.--Unless reauthorized by 
     law, the authority of the Administrator to award contracts 
     under the pilot program shall expire four years after the 
     date on which the pilot program is established. Contracts 
     entered into before the authority expires shall remain in 
     effect in accordance with their terms notwithstanding the 
     expiration of the authority to award new contracts under the 
     pilot program.
       (d) Definition.--In this section, the term ``FACNET'' means 
     the Federal Acquisition Computer Network established under 
     section 30 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 426).

     SEC. 5402. IDENTIFICATION OF EXCESS AND SURPLUS COMPUTER 
                   EQUIPMENT.

       Not later than six months after the date of the enactment 
     of this Act, the head of an executive agency shall inventory 
     all computer equipment under the control of that official. 
     After completion of the inventory, the head of the executive 
     agency shall maintain, in accordance with title II of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 481 et seq.), an inventory of any such equipment that 
     is excess or surplus property.

     SEC. 5403. ACCESS OF CERTAIN INFORMATION IN INFORMATION 
                   SYSTEMS TO THE DIRECTORY ESTABLISHED UNDER 
                   SECTION 4101 OF TITLE 44, UNITED STATES CODE.

       Notwithstanding any other provision of this division, if in 
     designing an information technology system pursuant to this 
     division, the head of an executive agency determines that a 
     purpose of the system is to disseminate information to the 
     public, then the head of such executive agency shall 
     reasonably ensure that an index of information disseminated 
     by such system is included in the directory created pursuant 
     to section 4101 of title 44, United States Code. Nothing in 
     this section authorizes the dissemination of information to 
     the public unless otherwise authorized.
     
[[Page H500]]

   TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

     SEC. 5501. PERIOD FOR PROCESSING PROTESTS.

       Title 31, United States Code, is amended as follows:
       (1) Section 3553(b)(2)(A) is amended by striking out ``35'' 
     and inserting in lieu thereof ``30''.
       (2) Section 3554 is amended--
       (A) in subsection (a)(1), by striking out ``125'' and 
     inserting in lieu thereof ``100''; and
       (B) in subsection (e)--
       (i) in paragraph (1), by striking out ``Government 
     Operations'' and inserting in lieu thereof ``Government 
     Reform and Oversight''; and
       (ii) in paragraph (2), by striking out ``125'' and 
     inserting in lieu thereof ``100''.

     SEC. 5502. AVAILABILITY OF FUNDS FOLLOWING GAO RESOLUTION OF 
                   CHALLENGE TO CONTRACTING ACTION.

       (a) In General.--Section 1558 of title 31, United States 
     Code, is amended--
       (1) in the first sentence of subsection (a)--
       (A) by inserting ``or other action referred to in 
     subsection (b)'' after ``protest'' the first place it 
     appears;
       (B) by striking out ``90 working days'' and inserting in 
     lieu thereof ``100 days''; and
       (C) by inserting ``or other action'' after ``protest'' the 
     second place it appears; and
       (2) by striking out subsection (b) and inserting in lieu 
     thereof the following:
       ``(b) Subsection (a) applies with respect to--
       ``(1) any protest filed under subchapter V of chapter 35 of 
     this title; or
       ``(2) an action commenced under administrative procedures 
     or for a judicial remedy if--
       ``(A) the action involves a challenge to--
       ``(i) a solicitation for a contract;
       ``(ii) a proposed award of a contract;
       ``(iii) an award of a contract; or
       ``(iv) the eligibility of an offeror or potential offeror 
     for a contract or of the contractor awarded the contract; and
       ``(B) commencement of the action delays or prevents an 
     executive agency from making an award of a contract or 
     proceeding with a procurement.''.
       (b) Conforming Amendment.--The heading of such section is 
     amended to read as follows:

     ``Sec. 1558. Availability of funds following resolution of a 
       formal protest or other challenge''.

       (c) Clerical Amendment.--The item relating to such section 
     in the table of sections at the beginning of chapter 15 of 
     title 31, United States Code, is amended to read as follows:

``1558. Availability of funds following resolution of a formal protest 
              or other challenge.''.
             TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

     SEC. 5601. AMENDMENTS TO TITLE 10, UNITED STATES CODE.

       (a) Protest File.--Section 2305(e) is amended by striking 
     out paragraph (3).
       (b) Multiyear Contracts.--Section 2306b of such title is 
     amended--
       (1) by striking out subsection (k); and
       (2) by redesignating subsection (l) as subsection (k).
       (c) Law Inapplicable to Procurement of Information 
     Technology.--Section 2315 of title 10, United States Code, is 
     amended by striking out ``Section 111'' and all that follows 
     through ``use of equipment or services if,'' and inserting in 
     lieu thereof the following: ``For the purposes of the 
     Information Technology Management Reform Act of 1996, the 
     term `national security systems' means those 
     telecommunications and information systems operated by the 
     Department of Defense, the functions, operation or use of 
     which''.

     SEC. 5602. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

       (a) References to Brooks Automatic Data Processing Act.--
     Section 612 of title 28, United States Code, is amended--
       (1) in subsection (f), by striking out ``section 111 of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 759)'' and inserting in lieu thereof ``the provisions 
     of law, policies, and regulations applicable to executive 
     agencies under the Information Technology Management Reform 
     Act of 1996'';
       (2) in subsection (g), by striking out ``sections 111 and 
     201 of the Federal Property and Administrative Services Act 
     of 1949 (40 U.S.C. 481 and 759)'' and inserting in lieu 
     thereof ``section 201 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 481)'';
       (3) by striking out subsection (l); and
       (4) by redesignating subsection (m) as subsection (l).
       (b) References to Automatic Data Processing.--Section 612 
     of title 28, United States Code, is further amended--
       (1) in the heading, by striking out the second word and 
     inserting in lieu thereof ``Information Technology'';
       (2) in subsection (a), by striking out ``Judiciary 
     Automation Fund'' and inserting in lieu thereof ``Judiciary 
     Information Technology Fund''; and
       (3) by striking out ``automatic data processing'' and 
     inserting in lieu thereof ``information technology'' each 
     place it appears in subsections (a), (b), (c)(2), (e), (f), 
     and (h)(1).

     SEC. 5603. AMENDMENT TO TITLE 31, UNITED STATES CODE.

       Section 3552 of title 31, United States Code, is amended by 
     striking out the second sentence.

     SEC. 5604. AMENDMENTS TO TITLE 38, UNITED STATES CODE.

       Section 310 of title 38, United States Code, is amended to 
     read as follows:

     ``Sec. 310. Chief Information Officer

       ``(a) The Chief Information Officer for the Department is 
     designated pursuant to section 3506(a)(2) of title 44.
       ``(b) The Chief Information Officer performs the duties 
     provided for chief information officers of executive agencies 
     under chapter 35 of title 44 and the Information Technology 
     Management Reform Act of 1996.''.

     SEC. 5605. PROVISIONS OF TITLE 44, UNITED STATES CODE, 
                   RELATING TO PAPERWORK REDUCTION.

       (a) Definition.--Section 3502 of title 44, United States 
     Code, is amended by striking out paragraph (9) and inserting 
     in lieu thereof the following:
       ``(9) the term `information technology' has the meaning 
     given that term in section 5002 of the Information Technology 
     Management Reform Act of 1996 but does not include national 
     security systems as defined in section 5142 of that Act;''.
       (b) Development of Standards and Guidelines by National 
     Institute of Standards and Technology.--Section 3504(h)(1)(B) 
     of such title is amended by striking out ``section 111(d) of 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 759(d))'' and inserting in lieu thereof ``section 
     5131 of the Information Technology Management Reform Act of 
     1996''.
       (c) Compliance With Directives.--Section 3504(h)(2) of such 
     title is amended by striking out ``sections 110 and 111 of 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 757 and 759)'' and inserting in lieu thereof ``the 
     Information Technology Management Reform Act of 1996 and 
     directives issued under section 110 of the Federal Property 
     and Administrative Services Act of 1949 (40 U.S.C. 757)''.
       (d) Collection of Information.--Section 3507(j)(2) of such 
     title is amended by striking out ``90 days'' in the second 
     sentence and inserting in lieu thereof ``180 days''.

     SEC. 5606. AMENDMENT TO TITLE 49, UNITED STATES CODE.

       Section 40112(a) of title 49, United States Code, is 
     amended by striking out ``or a contract to purchase property 
     to which section 111 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 759) 
     applies''.

     SEC. 5607. OTHER LAWS.

       (a) National Institute of Standards and Technology Act.--
     Section 20 of the National Institute of Standards and 
     Technology Act (15 U.S.C. 278g-3) is amended--
       (1) in subsection (a)--
       (A) by striking out ``section 3502(2) of title 44'' each 
     place it appears in paragraphs (2) and (3)(A) and inserting 
     in lieu thereof ``section 3502(9) of title 44''; and
       (B) in paragraph (4), by striking out ``section 111(d) of 
     the Federal Property and Administrative Services Act of 
     1949'' and inserting in lieu thereof ``section 5131 of the 
     Information Technology Management Reform Act of 1996'';
       (2) in subsection (b)--
       (A) by striking out paragraph (2);
       (B) in paragraph (3), by striking out ``section 111(d) of 
     the Federal Property and Administrative Services Act of 
     1949'' and inserting in lieu thereof ``section 5131 of the 
     Information Technology Management Reform Act of 1996''; and
       (C) by redesignating paragraphs (3), (4), (5), and (6) as 
     paragraphs (2), (3), (4), and (5); and
       (3) in subsection (d)--
       (A) in paragraph (1)(B)(v), by striking out ``as defined'' 
     and all that follows and inserting in lieu thereof a 
     semicolon; and
       (B) in paragraph (2)--
       (i) by striking out ``system'--'' and all that follows 
     through ``means'' in subparagraph (A) and inserting in lieu 
     thereof ``system' means''; and
       (ii) by striking out ``; and'' at the end of subparagraph 
     (A) and all that follows through the end of subparagraph (B) 
     and inserting in lieu thereof a semicolon.
       (b) Computer Security Act of 1987.--
       (1) Purposes.--Section 2(b)(2) of the Computer Security Act 
     of 1987 (Public Law 100-235; 101 Stat. 1724) is amended by 
     striking out ``by amending section 111(d) of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     759(d))''.
       (2) Security plan.--Section 6(b) of such Act (101 Stat. 
     1729; 40 U.S.C. 759 note) is amended--
       (A) by striking out ``Within one year after the date of 
     enactment of this Act, each such agency shall, consistent 
     with the standards, guidelines, policies, and regulations 
     prescribed pursuant to section 111(d) of the Federal Property 
     and Administrative Services Act of 1949,'' and inserting in 
     lieu thereof ``Each such agency shall, consistent with the 
     standards, guidelines, policies, and regulations prescribed 
     pursuant to section 5131 of the Information Technology 
     Management Reform Act of 1996,''; and
       (B) by striking out ``Copies'' and all that follows through 
     ``Code.''.
       (c) Federal Property and Administrative Services Act of 
     1949.--Section 303B(h) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253b(h)) is 
     amended by striking out paragraph (3).
       (d) Office of Federal Procurement Policy Act.--Section 
     6(h)(1) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 405(h)(1)) is amended by striking out ``of automatic 
     data processing and telecommunications equipment and services 
     or''.
     
[[Page H501]]

       (e) National Energy Conservation Policy Act.--Section 
     801(b)(3) of the National Energy Conservation Policy Act (42 
     U.S.C. 8287(b)(3)) is amended by striking out the second 
     sentence.
       (f) Central Intelligence Agency Act of 1949.--Section 3 of 
     the Central Intelligence Agency Act of 1949 (50 U.S.C. 403c) 
     is amended by striking out subsection (e).

     SEC. 5608. CLERICAL AMENDMENTS.

       (a) Federal Property and Administrative Services Act of 
     1949.--The table of contents in section 1(b) of the Federal 
     Property and Administrative Services Act of 1949 is amended 
     by striking out the item relating to section 111.
       (b) Title 38, United States Code.--The table of sections at 
     the beginning of chapter 3 of title 38, United States Code, 
     is amended by striking out the item relating to section 310 
     and inserting in lieu thereof the following:
``310. Chief Information Officer.''.
     TITLE LVII--EFFECTIVE DATE, SAVINGS PROVISIONS, AND RULES OF 
                              CONSTRUCTION

     SEC. 5701. EFFECTIVE DATE.

       This division and the amendments made by this division 
     shall take effect 180 days after the date of the enactment of 
     this Act.

     SEC. 5702. SAVINGS PROVISIONS.

       (a) Regulations, Instruments, Rights, and Privileges.--All 
     rules, regulations, contracts, orders, determinations, 
     permits, certificates, licenses, grants, and privileges--
       (1) which have been issued, made, granted, or allowed to 
     become effective by the Administrator of General Services or 
     the General Services Board of Contract Appeals, or by a court 
     of competent jurisdiction, in connection with an acquisition 
     activity carried out under the section 111 of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     759), and
       (2) which are in effect on the effective date of this 
     division,

     shall continue in effect according to their terms until 
     modified, terminated, superseded, set aside, or revoked in 
     accordance with law by the Director or any other authorized 
     official, by a court of competent jurisdiction, or by 
     operation of law.
       (b) Proceedings.--
       (1) Proceedings generally.--This division and the 
     amendments made by this division shall not affect any 
     proceeding, including any proceeding involving a claim, 
     application, or protest in connection with an acquisition 
     activity carried out under section 111 of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     759) that is pending before the Administrator of General 
     Services or the General Services Board of Contract Appeals on 
     the effective date of this division.
       (2) Orders.--Orders may be issued in any such proceeding, 
     appeals may be taken therefrom, and payments may be made 
     pursuant to such orders, as if this division had not been 
     enacted. An order issued in any such proceeding shall 
     continue in effect until modified, terminated, superseded, or 
     revoked in accordance with law by the Director or any other 
     authorized official, by a court of competent jurisdiction, or 
     by operation of law.
       (3) Discontinuance or modification of proceedings not 
     prohibited.--Nothing in this subsection prohibits the 
     discontinuance or modification of any such proceeding under 
     the same terms and conditions and to the same extent that 
     such proceeding could have been discontinued or modified if 
     this Act had not been enacted.
       (4) Other authority and prohibition.--Section 1558(a) of 
     title 31, United States Code, and the second sentence of 
     section 3552 of such title shall continue to apply with 
     respect to a protest process in accordance with this 
     subsection.
       (5) Regulations for transfer of proceedings.--The Director 
     may prescribe regulations providing for the orderly transfer 
     of proceedings continued under paragraph (1).
       (c) Standards and Guidelines for Federal Computer 
     Systems.--Standards and guidelines that are in effect for 
     Federal computer systems under section 111(d) of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     759(d)) on the day before the effective date of this division 
     shall remain in effect until modified, terminated, 
     superseded, revoked, or disapproved under the authority of 
     section 5131 of this Act.

     SEC. 5703. RULES OF CONSTRUCTION.

       (a) Relationship to Title 44, United States Code.--Nothing 
     in this division shall be construed to amend, modify, or 
     supersede any provision of title 44, United States Code, 
     other than chapter 35 of such title.
       (b) Relationship to Computer Security Act of 1987.--Nothing 
     in this division shall affect the limitations on authority 
     that is provided for in the administration of the Computer 
     Security Act of 1987 (Public Law 100-235) and the amendments 
     made by such Act.
       And the House agree to the same.
       That the Senate recede from its disagreement to the 
     amendment of the House to the title of the bill and agree to 
     the same with an amendment as follows:
       In lieu of the House amendment, amend the title so as to 
     read: ``An Act to authorize appropriations for fiscal year 
     1996 for military activities of the Department of Defense, 
     for military construction, and for defense activities of the 
     Department of Energy, to prescribe personnel strengths for 
     such fiscal year for the Armed Forces, to reform acquisition 
     laws and information technology management of the Federal 
     Government, and for other purposes.''.
       And the House agree to the same.
     Floyd Spence,
     Bob Stump,
     Duncan Hunter,
     Herbert H. Bateman,
     Curt Weldon,
     G.V. Montgomery,
     John M. Spratt, Jr.,
                                Managers on the Part of the House.

     Strom Thurmond,
     John Warner,
     Bill Cohen,
     Trent Lott,
     Sam Nunn,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendments of the House to the bill (S. 1124) to authorize 
     appropriations for fiscal year 1996 for military activities 
     of the Department of Defense, to prescribe personnel 
     strengths for such fiscal year for the Armed Forces, 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 House amendment to the text of the bill struck all of 
     the Senate bill after the enacting clause and inserted a 
     substitute text.
       The Senate recedes from its disagreement to the amendment 
     of the House with an amendment that is a substitute for the 
     Senate bill and the House amendment. The differences between 
     the Senate bill, the House amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clerical 
     changes.
       All references in this joint statement to provisions of the 
     House bill refer to the provisions of H.R. 1530 (The National 
     Defense Authorization Act for Fiscal Year 1996), as passed by 
     the House on June 15, 1995. All references to provisions of 
     the Senate amendment refer to the Senate amendment to the 
     text of H.R. 1530, as passed by the Senate on September 6, 
     1995.
       The conference report on H.R. 1530 is set forth in House 
     Report 104-406. The President vetoed H.R. 1530 on December 
     28, 1995.
       In those cases in which the conference agreement requires 
     the submission of a report to Congress or a committee of 
     Congress, the report shall be submitted not later than the 
     later of the date established in the Act or the statement of 
     managers language for submission of the report or the date 
     that is 45 days after the date of the enactment of this Act. 
     The reason for this extension is that, while the conferees 
     expect that reports will be submitted in a timely fashion, 
     they recognize that the circumstances associated with this 
     legislation may in some cases make compliance with deadlines 
     impractical. The conferees intend that this authority be used 
     sparingly and only in those few cases where an extension in 
     filing the report is essential.

                 Summary Statement of Conference Action

       The conferees recommend authorizations for the Department 
     of Defense for procurement, research and development, test 
     and evaluation, operation and maintenance, working capital 
     funds, military construction and family housing, weapons 
     programs of the Department of Energy, and civil defense that 
     have a budget authority implication of $264.7 billion.

                    Summary Table of Authorizations

       The defense authorization act provides authorizations for 
     appropriations but does not generally provide budget 
     authority. Budget authority is generally provided in 
     appropriation acts.
       In order to relate the conference recommendations to the 
     Budget Resolution, matters in addition to the dollar 
     authorizations contained in this bill must be taken into 
     account. A number of programs in the defense function are 
     authorized permanently or, in certain instances, authorized 
     in other annual legislation. In addition, this authorization 
     bill would establish personnel levels and include a number of 
     legislative provisions affecting military compensation.
       The following table summarizes authorizations included in 
     the bill in fiscal year 1996 and, in addition, summarizes the 
     implications of the conference action for the budget totals 
     for national defense (budget function 050).

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     Congressional defense committees
       The term ``congressional defense committees'' is often used 
     in this statement of the managers. It means the Defense 
     Authorization and Appropriations Committees of the Senate and 
     House of Representatives.

            DIVISION A: DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          Title I--Procurement

     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $39,697.8 million for procurement in the 
     Department of Defense. The House bill would authorize 
     $44,117.0 million. The Senate amendment would authorize 
     $45,043.8 million. The conferees recommended an authorization 
     of $44,878.1 million. Unless noted explicitly in the 
     statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $1,223.1 million for Aircraft Procurement, 
     Army in the Department of Defense. The House bill would 
     authorize $1,423.1 million. The Senate amendment would 
     authorize $1,396.5 million. The conferees recommended an 
     authorization of $1,558.8 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Airborne reconnaissance low
       The budget request included $18.4 million to procure one 
     additional aircraft.
       The House bill and the Senate amendment would approve the 
     budget request.
       The conferees agree to authorize the budget request and 
     express a continued strong support for the Airborne 
     Reconnaissance Low (ARL) program, to include the procurement 
     of a total of 9 aircraft as soon as possible.
       The conferees expect the Department to evaluate the 
     advantages of linking the airborne workstations of the ARL to 
     an Unmanned Aerial Vehicle, to provide for airborne analysis 
     and assured dissemination of information.
     UH-60 Black Hawk helicopter
       The budget request included $526.0 million for the 
     procurement of 60 Black Hawk helicopters in the final year of 
     a five-year multiyear procurement. No funds were requested 
     for advance procurement.
       The House bill would approve the budget request and add 
     $75.0 million for advance procurement.
       The Senate amendment would decrease procurement funds to 
     $475.8 million to procure 50 helicopters, and would not 
     provide funds for advance procurement.
       The conferees agree to authorize $526.0 million for the 
     procurement of 60 Black Hawk helicopters and $70.0 million 
     for advance procurement. The conferees also agree to provide 
     authority for multiyear procurement for the Black Hawk 
     helicopter program.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $676.4 million for Missile Procurement, Army 
     in the Department of Defense. The House bill would authorize 
     $862.8 million. The Senate amendment would authorize $894.4 
     million. The conferees recommended an authorization of $865.6 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Hellfire missile
       The budget request included $197.5 million to procure 352 
     Longbow Hellfire missiles and $12.0 million for post-
     production support.
       The House bill and the Senate amendment would provide an 
     additional $40.0 million, which when combined with $12.0 
     million of post-production funds, would enable the Army to 
     buy 750 Hellfire II missiles.
       The conferees agree to provide an additional $37.2 million 
     for the procurement of 750 Hellfire II missiles.
     Javelin medium anti-tank weapon
       The budget request included $171.4 million to procure 557 
     Javelin missiles.
       The House bill and the Senate amendment would authorize an 
     increase of $39.0 million for an additional 453 Javelin 
     missiles.
       The conferees agree to authorize an additional $35.5 
     million, which when added to the budget request of $171.4 
     million, will procure a total of 1,010 Javelin missiles.
     TOW missile
       The budget request included $7.4 million for plant closure 
     and production support of prior year TOW missile deliveries. 
     No funds were requested for additional missile production.
       The House bill and the Senate amendment would authorize an 
     increase of $20.0 million for procurement of 1,000 TOW 2B 
     missiles.
       The conferees agree to authorize an increase of $5.0 
     million for procurement of 500 TOW 2B missiles.
     Multiple launch rocket system
       The budget request included $48.2 million for annual 
     support and fielding of the Army's Multiple Launch Rocket 
     System (MLRS), but this amount did not include funding for 
     procurement of any new launchers.
       The House bill would authorize an increase of $16.4 million 
     to procure MLRS launchers to complete equipping a National 
     Guard MLRS battalion, for which funds were authorized in 
     fiscal year 1995.
       The Senate amendment would authorize an increase of $16.4 
     million to complete fielding the same National Guard 
     battalion described in the House bill. In addition, the 
     Senate amendment would authorize an increase of $48.0 million 
     to recondition sufficient MLRS launchers and ancillary 
     equipment for one additional National Guard MLRS battalion.
       The conferees agree to authorize $98.6 million to provide 
     sufficient reconditioned MLRS launchers and ancillary 
     equipment to complete the fielding of the National Guard 
     battalion authorized in fiscal year 1995, and to fully equip 
     another National Guard battalion in fiscal year 1996.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $1,298.9 million for Weapons and Tracked 
     Combat Vehicles Procurement, Army in the Department of 
     Defense. The House bill would authorize $1,359.7 million. The 
     Senate amendment would authorize $1,547.9 million. The 
     conferees recommended an authorization of $1,652.7 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     Direct support electronic system test sets
       The budget request included $1.5 million for calibration of 
     the direct support electronic system test sets (DSESTS).
       The House bill included no additional funding for DSESTS.
       The Senate amendment would authorize an increase of $15.0 
     million for additional procurement of DSESTS for M1 Abrams 
     series tanks and Bradley infantry fighting vehicles.
       The conferees agree to authorize an increase of $15.0 
     million for DSESTS for both procurement and research and 
     development, as indicated below:

Procurement:                                                    Million
  M1 Abrams tank series............................................$3.0
  Armored Gun System................................................6.0
Research & Development:
  PE23735A Abrams Block Improvements................................4.0
  PE23735A Armored Gun System.......................................2.0
     M113 Carrier modifications
       The budget request included $48.1 million for modification 
     of M113 personnel carriers.
       The House bill and the Senate amendment would approve the 
     budget request.
       The conferees agree to authorize an increase of $1.6 
     million for an additional 12 carrier modification upgrades to 
     be used as opposing force vehicles at the National Training 
     Center.
     M109A6 Paladin 155mm howitzer, self-propelled
       The budget request included $220.2 million for retrofitting 
     215 M109A6 Paladin howitzer systems.
       The House bill and the Senate amendment would approve the 
     budget request.
       The conferees agree to authorize an increase of $81.8 
     million to procure an additional 48 Paladin retrofits to 
     equip two additional National Guard battalions and to 
     retrofit the fire control processor for 340 systems.
     Improved Recovery Vehicle
       The budget request included $23.5 million to procure nine 
     M88A1E1 Improved Recovery Vehicles (IRV).
       The House bill would approve the budget request.
       The Senate amendment would authorize an increase of $33.9 
     million to procure an additional 12 IRVs.
       The House recedes.
     M1 Abrams tank upgrade program
       The budget request included $473.8 million for 100 M1A2 
     tank upgrades for the Army.
       The House bill would approve the budget request.
       The Senate amendment would authorize an increase of $110.0 
     million for 24 additional M1A2 tank upgrades and, in 
     accordance with the Statement of Managers accompanying the 
     National Defense Authorization Act of Fiscal Year 1995 (H. 
     Rept. 103-701), would direct the Army to transfer 24 M1A1 
     tanks to the Marine Corps Reserve.
       The House recedes.
       The conferees continue to support a multiyear procurement 
     for M1A2 tank upgrades, as authorized in the National Defense 
     Authorization Act of Fiscal Year 1995. However, the conferees 
     agree with guidance and direction to the Army Acquisition 
     Executive (AAE) regarding the need to maintain an appropriate 
     balance between the heavy and medium portions of the tracked 
     combat vehicle fleets, included in the Senate report (S. 
     Rept. 104-112). The conferees expect the AAE to comply with 
     that guidance and direction.
     Mark-19 universal mounting bracket
       The budget request included $1.4 million for program 
     modifications under $2.0 million.
       The Senate amendment would recommend an increase of $1.5 
     million to begin initial production of a nondevelopmental 
     universal bracket.
       The House bill would authorize the budget request.
       The Senate recedes.
       The conferees encourage the Army to reprogram funds to 
     provide $1.5 million to initiate production of a 
     nondevelopmental universal mounting bracket for the Mark-19 
     automatic grenade launcher.
       The conferees provide $.5 million in PE 64802A to type 
     classify this bracket.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $795.0 million for Ammunition Procurement, 
     Army in the Department of Defense. The House bill would 
     authorize $1,062.7 million. The Senate amendment would 
     authorize $1,120.1 million. The conferees recommended an 
     authorization of $1,093.9 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H520]]

     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $2,256.6 million for Other Procurement, Army 
     in the Department of Defense. The House bill would authorize 
     $2,545.6 million. The Senate amendment would authorize 
     $2,811.1 million. The conferees recommended an authorization 
     of $2,763.4 million. Unless noted explicitly in the statement 
     of managers, all changes are made without prejudice.

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[[Page H526]]

     High mobility multipurpose wheeled vehicle
       The budget request included $57.7 million for 546 high 
     mobility multipurpose wheeled vehicles (HMMWVs).
       The House bill would authorize an increase of $39.0 million 
     to procure approximately 700 additional HMMWVs.
       The Senate amendment would authorize an increase of $72.0 
     million to procure approximately 1300 additional HMMWVs.
       The House recedes.
       The conferees agree that additional HMMWVs are required for 
     both the Army and the Marine Corps, and expect the military 
     services to include in future budget requests adequate funds 
     to procure sufficient HMMWVs to meet validated service 
     requirements and to meet minimum annual required production 
     rates necessary to sustain the essential elements of the 
     HMMWV industrial base.
     Family of heavy tactical vehicles
       The budget request included $0.6 million for the family of 
     heavy tactical vehicles (FHTV).
       The House bill would authorize an increase of $100.0 
     million for the FHTV program.
       The Senate amendment would authorize an increase of $125.0 
     million for the FHTV program.
       The House recedes.
       The conferees agree to authorize an increase to the budget 
     request of $125.0 million to procure the heavy tactical 
     vehicles, as indicated below:

------------------------------------------------------------------------
                                                     Dollars            
                                                       (in      Quantity
                                                    millions)           
------------------------------------------------------------------------
Heavy equipment transporter.......................      $40.0         83
Heavy expanded mobility tactical transporter......       33.0        115
Palletized loading system.........................       52.0        147
------------------------------------------------------------------------

     Medium truck extended service program
       The budget request did not include funds for the medium 
     truck extended service program (ESP).
       The House bill would not authorize funds for medium truck 
     ESP.
       The Senate amendment would authorize $30.0 million for 
     medium truck ESP.
       The conferees agree to authorize $20.0 million for medium 
     truck ESP. The conferees express their concern regarding the 
     possibility of initiating multiple truck remanufacture 
     programs, thereby creating excess capacity in the industry. 
     The conferees prefer that maximum use be made of the medium 
     truck ESP currently underway, that separate, additional 
     procurements be kept to a minimum to avoid industrial 
     overcapacity, and that, for future procurements, 
     consideration be given to reliable manufacturers with 
     demonstrated capabilities to produce military trucks.
     GUARDRAIL tactical information broadcast service
       The budget request included $48.9 million for the GUARDRAIL 
     common sensor program.
       Both the House bill and the Senate amendment would 
     authorize funding at the requested level.
       The conferees have determined that there is a need for 
     GUARDRAIL aircraft to be equipped with improved intelligence 
     data dissemination capability and interoperability with other 
     intelligence data producers. Therefore, the conferees agree 
     to authorize an increase of $9.0 million to the budget 
     request for procurement and integration of tactical 
     information broadcast service to provide this capability for 
     existing GUARDRAIL aircraft.
     Nonsystem training devices
       The budget request included $71.6 million for nonsystem 
     training devices.
       The House bill and the Senate amendment authorized the 
     request.
       The conferees are concerned that the Army is currently 
     training firefighters using fossil-fueled techniques that are 
     not only hazardous to the trainees but, in some cases, in 
     violation of environmental regulations. Moreover, the 
     conferees are aware that there are computer-controlled 
     natural gas/propane firefighter training systems, currently 
     used by other services, that provide safe training for 
     individuals and minimize destruction to the environment. 
     Accordingly, the conferees authorize $4.5 million to procure 
     an initial set of these systems.
       Further, the conferees believe that the Army should develop 
     a plan to replace current firefighting training sites in 
     regions where multiple commands can take advantage of a 
     single site.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $3,886.5 million for Aircraft Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $4,106.5 million. The Senate amendment would 
     authorize $4,916.6 million. The conferees recommended an 
     authorization of $4,572.4 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H529]]

     AV-8B remanufacture
       The budget request included $148.2 million for the 
     remanufacture of four Marine Corps AV-8B aircraft.
       The House bill would add $160.0 million for the 
     remanufacture of eight additional aircraft.
       The Senate amendment would authorize an additional $100.0 
     million for the remanufacture of four more aircraft.
       The conferees agree to authorize a total of $229.4 million, 
     $81.3 million above the budget request, for the remanufacture 
     of four additional aircraft.
     Electronic warfare
       The budget request included no funds to either expand the 
     Navy's fleet of EA-6B Block 89 aircraft to accommodate the 
     retirement of the EF-111 jammer aircraft or to improve the 
     capabilities of the existing Block 89 EA-6B fleet.
       The House bill would approve the budget request.
       The Senate amendment would authorize $216.0 million to 
     modernize airborne electronic warfare (EW) capabilities of 
     the EA-6B Block 89 aircraft and to expand the number of Block 
     89 aircraft by 20.
       The conferees agree that modernization of the Department's 
     tactical electronic warfare aircraft fleet is a priority item 
     of special interest. Accordingly, the conferees agree to 
     authorize $165.0 million to initiate procurement of EA-6B 
     modifications, as set forth below:
       (1) $100.0 million to modernize up to 20 older EA-6B Block 
     82 aircraft to the newer Block 89 configuration to offset EF-
     111 retirements;
       (2) $40.0 million to procure 60 band 9/10 transmitters; and
       (3) $25.0 million for 30 USQ-113 enhanced radio 
     countermeasure sets.
       The conferees also authorize an increase of $10.0 million 
     to Navy EW development (PE 64270N), to develop a low-cost, 
     reactive jamming capability for the EA-6B. The conferees are 
     especially interested in the Navy's completion of an 
     affordable upgrade to the EA-6B reactive processor 
     capability.
       The conferees note the inconsistent nature of the Navy's 
     actions regarding airborne tactical EW in recent years and 
     are deeply concerned with the Navy's vacillating commitment 
     and support for meaningful upgrades to the EA-6B aircraft. 
     Accordingly, the Secretary of the Navy is directed to:
       (1) initiate the EA-6B modifications identified above.
       (2) provide the congressional defense committees with the 
     following:
       (a) a program and budget plan for completing the directed 
     modifications.
       (b) the Joint Tactical Airborne EW Study (JTAEWS).
       In addition, the conferees agree that the Secretary of the 
     Navy shall not obligate more than 75 percent of funds 
     appropriated for procurement of the F/A-18C/D for fiscal year 
     1996 until he has accomplished the actions specified above.
     F-14 modifications
       The budget request included $59.0 million for F-14 
     modifications. This amount did not include any funds for a 
     forward-looking infrared (FLIR)/laser designator system for 
     the F-14. The budget request included $25.4 million in 
     research and development funds for a precision strike 
     upgrade, an effort to integrate the joint direct attack 
     munition (JDAM) into the F-14.
       The House bill would approve the budget request for F-14 
     modifications.
       After completion of the House bill, the Navy informed the 
     Senate that the requirements validation process had 
     documented an operational requirement for a FLIR/laser 
     designator system for the F-14, in lieu of the JDAM 
     integration. The Senate considered this requirement to be a 
     high priority for carrier operations. Therefore, the Senate 
     amendment would authorize an increase of $17.1 million for F-
     14 aircraft modifications in fiscal year 1996. This action 
     was taken with the understanding that the Department of 
     Defense would provide funding for the system in future budget 
     requests.
       The conferees agree to provide $101.5 million for F-14 
     modifications, with an increase of $42.5 million provided for 
     the FLIR/laser designator effort. The conferees also agree to 
     reduce the F-14 research and development request by $25.4 
     million.
       Additionally, the conferees agree to invite the Navy to 
     reprogram funds originally authorized for JDAM integration 
     into the FLIR/laser designator procurement effort, to 
     expedite meeting the need for improving F-14 strike 
     capability.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $1,787.1 million for Weapons Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $1,626.4 million. The Senate amendment would 
     authorize $1,771.4 million. The conferees recommended an 
     authorization of $1,659.8 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H531]]

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[[Page H532]]

     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $5,051.9 million for Shipbuilding and 
     Conversion Procurement, Navy in the Department of Defense. 
     The House bill would authorize $6,227.9 million. The Senate 
     amendment would authorize $7,111.9 million. The conferees 
     recommended an authorization of $6,643.9 million. Unless 
     noted explicitly in the statement of managers, all changes 
     are made without prejudice.

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[[Page H534]]

     Overview
       The budget request for fiscal year 1996 contained no 
     authorization for Ammunition Procurement, Navy and Marine 
     Corps in the Department of Defense. The House bill would 
     authorize $461.8 million. The Senate amendment contained no 
     authorization. The conferees recommended an authorization of 
     $430.1 million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page H536]]

     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $2,396.1 million for Other Procurement, Navy 
     in the Department of Defense. The House bill would authorize 
     $2,461.5 million. The Senate amendment would authorize 
     $2,471.9 million. The conferees recommended an authorization 
     of $2,414.8 million. Unless noted explicitly in the statement 
     of managers, all changes are made without prejudice.

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[[Page H543]]

     Submarine navigation sets
       The budget request included $4.1 million for the 
     electrically suspended gyro navigator (ESGN), the navigation 
     system currently installed on Navy submarines. It also 
     included $17.7 million for other navigation equipment.
       The House bill would reduce ESGN funding by $4.1 million 
     and increase funding for other navigation equipment by $10.0 
     million to purchase and install MK-49 ring laser gyro (RLG) 
     navigators on Navy submarines.
       The Senate amendment would reduce ESGN funding by $2.5 
     million, the amount budgeted for ESGN reliability 
     modifications. It would also increase funding for other 
     navigation equipment by $10.0 million to purchase and install 
     MK-49 RLG navigators on Navy submarines.
       The Senate recedes.
     AN/BPS-16 submarine radar
       The budget request included $0.5 million for ship radar 
     support .
       The House bill would add $9.0 million for procurement of 
     AN/BPS-16 submarine radar systems because of a concern about 
     the reliability and operational suitability of the existing 
     AN/BPS-15 submarine navigation radar.
       The Senate amendment would authorize the budget request.
       The conferees are aware that there is a commercial off-the-
     shelf (COTS) variant of the AN/BPS-16 that could be procured 
     and installed at a substantially lower cost than the AN/BPS-
     16 built to military specifications. The conferees are also 
     aware that the reliability and maintenance challenges 
     associated with the existing AN/BPS-15 have induced many Navy 
     submarine crews to procure inexpensive commercial navigation 
     radars with limited capability.
       Based on these considerations, the conferees agree to 
     authorize an increase of $9.0 million for the procurement and 
     installation of AN/BPS-16 submarine radar sets. The conferees 
     encourage the Navy to take advantage of the new COTS variant 
     of the AN/BPS-16 to achieve the maximum benefit from this 
     additional funding.
     Afloat planning system
       The conferees have fully supported the Tomahawk cruise 
     missile program and the associated support systems necessary 
     for employment of Tomahawk for precision strike missions. The 
     conferees note that the Tomahawk afloat planning system (APS) 
     complements the Tomahawk mission planning system, located at 
     the shore-based mission planning centers, and provides afloat 
     battle group and battle force commanders or deployed joint 
     staffs with an organic capability to plan for the tactical 
     employment of the conventional Tomahawk land attack missile 
     (TLAM). APS is also an integral part of the Joint Service 
     Imagery Processing System--Navy (JSIPS-N) and Challenge 
     Athena systems. These systems support Tomahawk strike 
     planning, but can also provide mission planning support for 
     other precision guided munitions.
       The conferees encourage the Department of Defense to:
       (1) continue support and funding for APS; and
       (2) consider extending APS's targeting and mission planning 
     capabilities to other tactical command echelons, in order to 
     meet the expanding requirement for tactical utilization of 
     the Tomahawk system and improve its responsiveness to the 
     demands of land battle.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $474.1 million for Marine Corps Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $399.2 million. The Senate amendment would 
     authorize $683.4 million. The conferees recommended an 
     authorization of $458.9 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H547]]

     Commander's Tactical Terminal
       The budget request included no funding for USMC procurement 
     of Commander's Tactical Terminal (CTT) radios.
       Neither the House bill nor the Senate amendment authorized 
     additional funding for CTT radios.
       The conferees note that the Department's integrated 
     (intelligence) broadcast service plan included migration to 
     an interoperable family of transceivers known as the Joint 
     Tactical Terminal. The conferees have been informed that 
     Marine Corps procurement of CTTs will play a vital role in 
     this plan, and therefore authorize an increase of $12.5 
     million for this purpose.
     Marine Corps intelligence support equipment
       The budget request included no funding for Marine Corps 
     procurement of Joint Surveillance and Target Attack Radar 
     System (JSTARS) ground support module.
       Neither the House bill nor the Senate amendment included 
     additional funds for this purpose.
       The conferees believe the Marine Corps should have more 
     responsibility over its own procurement actions, and 
     therefore agree to authorize an increase of $16.5 million for 
     Marine procurement of two JSTARS ground support modules.
     Light reconnaissance/strike vehicles
       The budget request did not include funds for procurement of 
     any light reconnaissance/strike vehicles (LRV/LSV).
       The House bill would add $2.0 million to buy LRVs for the 
     Marine Corps and $6.0 million to buy LSVs for the special 
     operations forces.
       The conferees agree to authorize $6.0 million for LSVs for 
     the special operations forces.
       The conferees understand that the Marine Corps has 
     completed a mission needs statement (MNS) for an LRV. The MNS 
     calls for fielding an LRV with the Fleet Marine Forces by 
     fiscal year 1995. However, the Marine Corps has neither 
     established a formal requirement nor budgeted any resources 
     against a possible requirement.
       Therefore, the conferees direct the Secretary of the Navy 
     to report to the congressional defense committees on whether 
     the Marine Corps will translate the MNS into an operational 
     requirement and the risks the Fleet Marine Force will incur 
     if an LRV is not procured. The conferees expect the Secretary 
     to submit this report by February 28, 1996.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $6,183.9 million for Aircraft Procurement, 
     Air Force in the Department of Defense. The House bill would 
     authorize $7,032.0 million. The Senate amendment would 
     authorize $6,318.6 million. The conferees recommended an 
     authorization of $7,349.8 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H551]]

     Air Force fighter aircraft data link
       The budget request included $79.5 million for F-15 
     modifications.
       The House bill would authorize the requested amount based 
     on assurances from the Department of Defense that Air Force 
     efforts to procure a tactical information data link for a 
     portion of the F-15 fleet would be conducted within the scope 
     of the Department's multifunction information distribution 
     system (MIDS) program.
       The Senate amendment would authorize the budget request. 
     The Senate report (S. Rept. 104-112) expressed support for 
     the Air Force's efforts to equip its fighter aircraft with 
     ``Link 16'' data link capability, but questioned the Air 
     Force's decision to pursue this capability for only a portion 
     of the F-15 fleet. The Senate report also recommended that 
     the Department continue MIDS acquisition and stated that it 
     would not support any Air Force effort to start a new 
     program, redundant to MIDS, to meet similar requirements.
       The conferees note that the Under Secretary of Defense for 
     Acquisition and Technology has terminated the F-15 data link 
     procurement and that the Air Force now intends to pursue a 
     MIDS variant data link to meet its requirements. The 
     Department has informed the conferees that this program is to 
     be a competitive solicitation that will require adherence to 
     the MIDS architecture, MIDS software modularity, and MIDS 
     hardware modulatory as a design objective, and, for the F-15, 
     reduced hardware and software functionality to reduce costs.
       The conferees agree to authorize $78.3 million for F-15 
     modifications. The conferees direct the Under Secretary of 
     Defense for Acquisition and Technology to ensure that the 
     Department uses a competitive acquisition strategy for 
     fighter data link procurement. The strategy should promote 
     full opportunity for U.S. companies to compete within the 
     competitive solicitation outlined by the Under Secretary.
     Defense support program procurement
       The budget request included $102.9 million for Defense 
     Support Program (DSP) procurement.
       The Senate amendment would authorize $67.0 million, a 
     reduction of $35.9 million to the budget request.
       The House bill would authorize the budget request.
       The House recedes. The conferees are aware that $35.9 
     million in fiscal year 1995 funds are excess and subject to 
     consideration for reprogramming for non-DSP purposes. 
     Therefore, the conferees agree to reduce the fiscal year 1996 
     DSP procurement budget by $35.9 million, leaving $67.0 
     million. The conferees direct the Air Force to use the excess 
     fiscal year 1995 funds currently identified as a source on 
     the fiscal year 1995 omnibus reprogramming request to fulfill 
     fiscal year 1996 DSP requirements. Given that the fiscal year 
     1995 DSP procurement source has been denied as part of this 
     year's omnibus reprogramming, the conferees direct that the 
     full amount be restored to DSP.
     RC-135 re-engining
       The budget request included no funding for the Defense 
     Airborne Reconnaissance Program (DARP) modifications line (P-
     1, line 57) in the Aircraft Procurement, Air Force account.
       The House bill would authorize an increase of $37.0 million 
     for modification of an existing C-135 aircraft to the RC-135 
     RIVET JOINT configuration.
       The Senate amendment would authorize an increase of $48.0 
     million for re-engining of two existing RIVET JOINT aircraft. 
     The Senate amendment would also authorize an increase of 
     $31.5 million in PE 64268F for non-recurring integration 
     activity to facilitate an affordable program for converting 
     two retired EC-135 aircraft to the RIVET JOINT configuration.


                        engines and installation

       The conferees concur with the cost effectiveness and 
     increase in operational effectiveness that could be provided 
     by re-engining the existing fleet of RIVET JOINT aircraft and 
     agree to authorize an increase of $48.0 million to procure 
     and install re-engining kits for two existing RIVET JOINT 
     aircraft.
       The conferees note that the theater Commanders-in-Chief 
     (CINCs) have addressed additional RIVET JOINT aircraft as one 
     of their highest intelligence priorities. The need for 
     additional RIVET JOINT aircraft is further reinforced by the 
     extremely high operational tempo currently experienced by 
     this reconnaissance asset. The conferees support the theater 
     CINCs' requirements for additional RIVET JOINT aircraft and 
     strongly urge the Department to seek reprogramming authority 
     to modify other existing C-135 assets to the RC-135 
     configuration.


                                 sr-71

       The conferees agree to provide an additional $5.0 million 
     for costs associated with the refurbishment of SR-71 
     aircraft.


                  engine component improvement program

       The conferees agree to authorize $133.2 million for the 
     engine component improvement program, an increase of $29.5 
     million, consisting of two adjustments: (1) an additional 
     $31.5 million for the integration activity described in the 
     Senate report (S. Rept. 104-112); and (2) a reduction of the 
     $2.0 million requested for the B-2 engine.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $3,647.7 million for Missile Procurement, 
     Air Force in the Department of Defense. The House bill would 
     authorize $3,430.1 million. The Senate amendment would 
     authorize $3,627.5 million. The conferees recommended an 
     authorization of $2,938.9 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H553]]

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[[Page H554]]

     Overview
       The budget request for fiscal year 1996 contained no 
     authorization for Ammunition Procurement, Air Force in the 
     Department of Defense. The House bill would authorize $321.3 
     million. The Senate amendment contained no authorization. The 
     conferees recommended an authorization of $343.8 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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[[Page H556]]

     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $6,804.7 million for Other Procurement, Air 
     Force in the Department of Defense. The House bill would 
     authorize $6,784.8 million. The Senate amendment would 
     authorize $6,516.0 million. The conferees recommended an 
     authorization of $6,268.4 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H562]]

     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $2,179.9 million for Defense-wide 
     Procurement in the Department of Defense. The House bill 
     would authorize $2,205.9 million. The Senate amendment would 
     authorize $2,118.3 million. The conferees recommended an 
     authorization of $2,124.4 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice. 

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[[Page H566]]

     Defense airborne reconnaissance program procurement
       The budget request included $179.3 million in procurement 
     for the Defense airborne reconnaissance program (DARP).
       The House bill would approve the budget request.
       The Senate amendment would increase the requested amount by 
     $4.5 million, and would direct the Department to change the 
     priorities of some program elements. The conferees agree to 
     an authorization of $161.6 million, a reduction of $17.7 
     million from the budget request.


                           joint tactical uav

       The conferees agree to authorize a total of $42.4 million 
     for the joint tactical UAV (JT-UAV), a reduction of $17.7 
     million from the budget request.
       The conferees are particularly concerned about the 
     continuing problems with the Hunter UAV in the JT-UAV 
     program. Therefore, the conferees direct that none of the 
     funds appropriated for fiscal year 1996 be used to procure 
     production Hunter systems or additional low-rate initial 
     production units, beyond those already ordered, until the 
     Secretary of Defense provides to the Congressional defense 
     committees the results of the Defense Acquisition Board (DAB) 
     review of the Hunter program.


                              pioneer uav

       Of the funds authorized and appropriated for defense-wide 
     procurement, Defense Airborne Reconnaissance Programs (DARP), 
     the conferees direct that the Department use $4.5 million to 
     equip nine Pioneer UAV systems with the common automatic 
     landing and recovery system (CARLS).
       The conferees note the Department's continuing failure to 
     equip UAVs with the CARLS system. The conferees are concerned 
     with this result, particularly since the Department agrees 
     that CARLS installation on UAVs in general, and Pioneer in 
     particular, would reduce landing accidents and associated 
     losses.
     Automated document conversion system
       The budget request did not include any additional funds for 
     the automated document conversion system (ADCS). This is a 
     program for converting the Department of Defense's 
     engineering drawings from hard copy to electronic format.
       The House bill would authorize $20.0 million for this 
     purpose.
       The Senate amendment would approve the budget request.
       The conferees are concerned with the lack of progress by 
     the Department toward achieving major cost savings through 
     the adoption of automated document conversion technology. The 
     conferees are encouraged, however, that the Department has 
     recently acknowledged such savings and has produced a roadmap 
     to realize these savings by changing from raster to vector 
     conversion. The conferees also understand this plan brings an 
     upgrade and expansion of UNIX-based systems and will test 
     several personal computer (PC)-based systems.
       However, the conferees are concerned with the Department's 
     plan for using $10.0 million of these funds for ``bulk'' 
     conversion purposes, since these funds were specifically 
     appropriated for the purchase of ADCS equipment. The 
     conferees are concerned that there may be a greater 
     requirement for ADCS software and equipment than the 
     Department currently has planned and that some or all of the 
     funds planned for bulk conversion may be needed for software 
     and equipment. Should the results of the Department's ongoing 
     conversion survey confirm that additional software and 
     equipment is needed, the conferees feel that the Department 
     should address first the needs of UNIX-based engineering 
     systems as the UNIX-based system has undergone extensive 
     testing per Congressional direction. The conferees direct 
     that the Secretary of Defense provide a report to the 
     congressional defense committees by March 29, 1996, on the 
     results of the PC-based system testing.
     Overview
       The budget request for fiscal year 1996 contained no 
     authorization for National Guard and Reserve Procurement in 
     the Department of Defense. The House bill would authorize 
     $770.0 million. The Senate amendment would authorize $777.4 
     million. The conferees recommended an authorization of $777.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

[[Page H567]]
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[[Page H568]]
     [GRAPHIC] [TIFF OMMITTED] TH22JA96.048
     

     
[[Page H569]]

     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $746.7 million for Chemical Agent and 
     Munitions Destruction, Army in the Department of Defense. The 
     House bill would authorize $746.7 million. The Senate 
     amendment would authorize $671.7 million. The conferees 
     recommended an authorization of $672.3 million. Unless noted 
     explicitly in the statement of managers, all changes are made 
     without prejudice.

[[Page H570]]
     [GRAPHIC] [TIFF OMMITTED] TH22JA96.049
     

     
[[Page H571]]



                       items of special interest

     Aerial targets
       The budget request included $68.6 million for aerial 
     targets.
       The House bill and the Senate amendment authorized the 
     request.
       The conferees understand the Navy's current acquisition 
     strategy for subscale subsonic aerial targets is to procure 
     only the BQM-74E. However, the conferees understand the 
     contractor may have taken some recent cost reduction 
     initiatives on the BQM-34S subscale target. Therefore, the 
     conferees believe that the Navy's non-competitive procurement 
     of the BQM-74E may not provide the service with the best 
     value target. Accordingly, the conferees urge the Navy to 
     reassess its acquisition strategy for this target and conduct 
     a competition based upon meeting a performance specification. 
     The conferees believe that such a competition could result in 
     buying a target that truly represents the best value to the 
     Navy.
     AN/ALE-47
       The conferees are concerned that the current Air Force 
     acquisition strategy for the follow-on production of lots IV 
     through VII of the AN/ALE-47 Countermeasure Dispenser System 
     may involve significant and unnecessary risks for the 
     program. The conferees direct the Air Force to delay any 
     procurement action regarding lots IV through VII of the AN/
     ALE-47 until 14 days after the date on which the Air Force 
     has provided the congressional defense committees with a 
     report that assesses the cost and acquisition strategy 
     related to the introduction of new suppliers for the system.
     Engineer construction equipment
       The conferees are aware of the significant contribution 
     National Guard engineer construction units have made to 
     securing the southwest border. The construction efforts of 
     the National Guard have been of singular assistance in 
     providing for increased safety for U.S. Border Patrol agents 
     and in facilitating the U.S. Border Patrol efforts to counter 
     illegal drugs and illegal immigration along the southwest 
     border. The conferees agree that sufficient funds should be 
     allocated by the National Guard to purchase appropriate 
     loaders, dozers, and road-grading equipment for use by 
     National Guard engineer construction units that rotate to 
     continue construction on projects along the United States-
     Mexican border.
       The conferees have indicated elsewhere in this statement of 
     managers, that the Department of Defense should, through 
     normal reprogramming procedures, use available funds provided 
     for counterdrug activities to continue construction to extend 
     the fence constructed by the National Guard on the southwest 
     border.
     LPD-17 radio communications systems 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.
     SH-60 modifications
       The conferees understand that there are at least 60 AN/AQS-
     13F dipping sonars currently installed in the Navy's SH-60F 
     helicopters that will not be replaced under the SH-60R 
     program. These sonars could be upgraded to meet current 
     shallow water operational requirements based on a 
     modification already developed through the FMS program.
       The conferees direct the Secretary of the Navy to evaluate 
     the cost effectiveness of a modification program for the AQS-
     13F dipping sonars that will not be replaced in conjunction 
     with the SH-60R program, and report the results to the 
     congressional defense committees by March 15, 1996.


                         legislative provisions

                     legislative provisions adopted

              Subtitle A--Authorization of Appropriations

                       Subtitle B--Army Programs

     Procurement of OH-58D Armed Kiowa Warrior helicopters (sec. 
         111)
       The House bill contained a provision (sec. 111) that would 
     modify current law to permit procurement of twenty additional 
     OH-58D AHIP scout helicopters.
       The Senate amendment contained an identical provision (sec. 
     122).
       The conferees understand that the procurement of twenty 
     additional OH-58D Armed Kiowa Warrior helicopters will cost 
     up to $140.0 million and agree to amend the provision to 
     authorize $140.0 million to procure these helicopters.
     Repeal of requirements for armored vehicle upgrades (sec. 
         112)
       The House bill contained a provision (sec. 112) that would 
     repeal subsection (j) of section 21 of the Arms Export 
     Control Act (22 U.S.C. 2761).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Multiyear procurement of helicopters (sec. 113)
       The budget request included $354.0 million to buy 18 AH-64D 
     aircraft and 13 Longbow fire control radars.
       The House bill would authorize the budget request.
       The Senate amendment contained a provision (sec. 111) that 
     would authorize an increase of $82.0 million and the 
     multiyear procurement of Longbow Apache helicopters.
       The House recedes with an amendment.
       The conferees agree to authorize an increase of $76.2 
     million for the Longbow Apache attack helicopter program and 
     multiyear procurement contracts for both the AH-64D Longbow 
     Apache attack helicopter program and the UH-60 Black Hawk 
     utility helicopter program.
     Report on AH-64D engine upgrades (sec. 114)
       The Senate amendment contained a provision (sec. 114) that 
     would require the Secretary of the Army to submit a report to 
     Congress on plans to procure T700-701C engine upgrade kits 
     for Army AH-64D helicopters.
       The House bill contained no similar provision.
       The House recedes.
     Requirement for use of previously authorized multiyear 
         procurement authority for Army small arms procurement 
         (sec. 115)
       The budget request did not include any funds for 
     procurement of small arms.
       The House bill and the Senate amendment would authorize 
     funds for the following small arms programs as indicated 
     below:

------------------------------------------------------------------------
                                                         House    Senate
------------------------------------------------------------------------
M-16 rifle............................................    $13.5    $13.5
M4 carbine............................................      6.5     13.5
M9 personal defense weapon............................      2.0      4.0
M249 squad automatic weapon...........................     28.5     28.5
MK-19 grenade launcher................................     20.0     33.9
Medium machine gun (mod kits).........................      6.5      6.5
------------------------------------------------------------------------

       The conferees agree to provide funds for small arms 
     programs as indicated below:

------------------------------------------------------------------------
                                                      Dollars           
                                                    (millions)  Quantity
------------------------------------------------------------------------
M-16 rifle........................................      $13.5     27,500
M4 carbine........................................        6.5     12,000
M9 personal defense weapon........................        2.0      4,660
M249 squad automatic weapon.......................       28.5     10,265
MK-19 grenade launcher............................       33.9      2,100
Medium machine gun (mod kits).....................        6.5      1,434
------------------------------------------------------------------------

       The conferees express their concern that the Army did not 
     include funds for small arms programs in the fiscal year 1996 
     budget request, despite specific direction regarding 
     multiyear procurement for small arms included in the 
     Statement of Managers accompanying the National Defense 
     Authorization Act for Fiscal Year 1995 (S. Rept. 103-701). 
     The conferees expect the Secretary of the Army to comply with 
     both the letter and intent of the law in this regard. The 
     conferees further expect the Secretary of the Army to ensure 
     that small arms programs are funded at levels approximating 
     those in this report until requirements for each separate 
     class of small arms are fully achieved and that appropriate 
     multiyear contracts are executed. The conferees include a 
     provision (sec. 116) that would direct the Secretary of the 
     Army to enter into multiyear procurement contracts during 
     fiscal year 1997, in accordance with section 115(b)(2) of the 
     National Defense Authorization Act for Fiscal Year 1995.

                       Subtitle C--Navy Programs

     Nuclear attack submarines (sec. 131)
       The budget request reflected a policy, adopted by the 
     Department of Defense as a consequence of its Bottom Up 
     Review, that would cause all future nuclear submarines to be 
     constructed by General Dynamics Electric Boat Division 
     (Electric Boat). The budget request included the following 
     funding for submarine construction programs:
       (1) $1.5 billion for SSN-23, the final increment required 
     for full funding of this Seawolf class submarine;
       (2) $704.5 million advance procurement for the first of a 
     new class of nuclear attack submarines, designated as the new 
     attack submarine (NAS), whose construction would begin in 
     fiscal year 1998; and
       (3) a total of $455.4 million for research, development, 
     test, and evaluation for the NAS program.
       The House report (H. Rept. 104-131) reflected the view that 
     changes in the Navy's plan for acquisition of nuclear attack 
     submarines should be made to incorporate advanced 
     technologies into these submarines' designs. These 
     recommendations were based on an underlying premise that the 
     Navy's NAS program would not provide an adequate 
     technological advantage over foreign submarines presently 
     under construction or in design. The House bill would:
       (1) not authorize SSN-23;
       (2) authorize $550.0 million for Electric Boat to design, 
     build, and incorporate a hull section into SSN-22 to create a 
     lengthened, expanded capability variant of the basic Seawolf 
     design, while retaining its full weapons load;
       (3) authorize $704.5 million advance procurement for the 
     fiscal year 1998 submarine that would be built by Electric 
     Boat;
       (4) authorize $300.0 million for Electric Boat to design 
     and build a second hull section that would be incorporated 
     into a fiscal year 1998 submarine, and convert that submarine 
     from the lead ship of a serial-production class, based on the 
     current NAS design, into an additional, one-of-a-kind, 
     expanded capability platform that would be derived from the 
     current NAS design;
       (5) directs that $10.0 million of the funds in the budget 
     request for NAS detailed design work be used only for 
     establishing and maintaining a cadre of Newport News 
     submarine designers at Electric Boat and for transfer of 

[[Page H572]]
     all NAS design data from Electric Boat's design data base to Newport 
     News';
       (6) authorize $150.0 million to begin an effort at Newport 
     News to design, develop, and build prototype versions of 
     major submarine components that would result in a follow-on 
     submarine design for serial production that represents a 
     substantial improvement in affordability and capability over 
     the current NAS design;
       (7) direct the Advanced Research Projects Agency (ARPA) and 
     the national laboratories to make new technologies available 
     to both Electric Boat and Newport News that show potential 
     for achieving a follow-on submarine design for serial 
     production that represents a substantial improvement over the 
     current NAS design; and
       (8) include a provision (sec. 133) that would direct the 
     Secretary of the navy to award, on a competitive basis, 
     contracts for attack submarines built after the fiscal year 
     1998 submarine.
       The Senate amendment reflected an alternate view on how to 
     acquire nuclear attack submarines. It contained a provision 
     (sec. 121) that would:
       (1) authorize the SSN-23 at $1.5 billion, the budget 
     request;
       (2) limit the ability of the Secretary of the Navy to 
     obligate or expend funds for SSN-23 until he restructures the 
     NAS program to provide for:
       (a) procurement of the lead NAS from Electric Boat in 
     fiscal year 1998;
       (b) procurement of the second NAS from Newport News 
     Shipbuilding and Drydock (Newport News) in fiscal year 1999; 
     and
       (c) competitive procurement of any additional NAS vessels 
     after the second. Potential competitors for these additional 
     vessels would be contractors that have been awarded a 
     contract by the Secretary of the Navy for construction of 
     nuclear attack submarines during the past 10 years;
       (3) place additional limits on the total amount of funds 
     that may be expended for SSN-23 in fiscal years 1996, 1997, 
     1998, and 1999;
       (4) direct the Secretary of the Navy to solicit competitive 
     proposals and award the contract or contracts for NAS, after 
     the second NAS, on the basis of price;
       (5) direct the Secretary of the Navy to take no action that 
     would impair the design, engineering, construction, and 
     maintenance competencies of either Electric Boat or Newport 
     News to construct the NAS;
       (6) direct the Secretary of the Navy to report every six 
     months to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House the 
     obligation and expenditure of funds for SSN-23 and the NAS;
       (7) authorize $814.5 million in fiscal year 1996 for design 
     and advance procurement of the lead and second NAS, of which 
     $10.0 million would be available only for participation of 
     Newport News in the NAS design, and $100.0 million would be 
     available only for advance procurement and design of the 
     second submarine under the NAS program;
       (8) place limits on the expenditure of advance procurement 
     funds in fiscal year 1996 for the lead NAS, unless funds are 
     also obligated or expended for the second NAS;
       (9) authorized $802.0 million in fiscal year 1997 for 
     advance procurement of the lead and second NAS, of which 
     $75.0 million would be available only for participation by 
     Newport News in the design of the NAS, and $427.0 million 
     would be available only for advance procurement and design of 
     the second submarine under the NAS program; and
       (10) authorized $455.4 million, the budget request, for 
     research, development, test, and evaluation for the NAS 
     program.
       The conferees agree to adopt a new provision dealing with 
     the design and procurement of future Navy attack submarines. 
     This provision would:
       (1) authorize the SSN-23 at $700.0 million;
       (2) authorize $804.5 million in fiscal year 1996 for design 
     and advance procurement of the fiscal year 1998 and fiscal 
     year 1999 submarines (previously designated by the Navy as 
     the NAS), of which;
       (a) $704.5 million would be available only for long-lead 
     and advance construction and procurement for the fiscal year 
     1998 submarine, which would be built by Electric Boat; and
       (b) $100.0 million would be available only for long-lead 
     and advance construction and procurement for the fiscal year 
     1999 submarine, which would be built by Newport News;
       (3) authorize $10.0 million only for participation of 
     Newport News in the design of the submarine previously 
     designated by the Navy as the NAS;
       (4) establish a special bipartisan congressional panel that 
     would be briefed, at least annually, by the Secretary of the 
     Navy on the status of the submarine modernization program and 
     submarine-related research and development;
       (5) direct the Secretary of Defense, not later than March 
     15, 1996, to accomplish the following:
       (a) develop and submit a detailed plan for development of a 
     program that will lead to production of more capable, less 
     expensive submarines than the submarine previously designated 
     as the NAS;
       (b) ensure the plan includes a program for the design, 
     development, and procurement of four nuclear attack 
     submarines that would be procured during fiscal years 1998 
     through 2001 with each successive submarine being more 
     capable and more affordable;
       (c) structure the program so that:
       (i) one of the four submarines would be constructed with 
     funds appropriated for each fiscal year from fiscal year 1998 
     through fiscal year 2001;
       (ii) to ensure flexibility for innovation, the fiscal year 
     1998 and the fiscal year 2000 submarines would be constructed 
     by Electric Boat and the fiscal year 1999 and the fiscal year 
     2001 submarines would be constructed by Newport News;
       (iii) the design previously designated as the NAS would be 
     used as the base design by both contractors:
       (iv) each contractor would be called on to propose 
     improvements, including design improvements, for each 
     successive submarine so that each of them would be more 
     capable, more affordable, and their design would lead to a 
     design for a future class of nuclear attack submarines that 
     would possess the latest, best, and most affordable 
     technology; and
       (v) the fifth and subsequent nuclear attack submarines, 
     proposed for construction after SSN-23, would be procured 
     after a competition based on price;
       (d) the Secretary of Defense's plan would also:
       (i) set forth a program to accomplish the design, 
     development, and construction of the four submarines that 
     would take maximum advantage of a streamlined acquisition 
     process;
       (ii) culminate in selection of a design for a next 
     submarine for serial production not earlier than fiscal year 
     2003 with procurement to occur after a competition based on 
     price;
       (iii) identify advanced technologies that are in various 
     phases of research and development, as well as those that are 
     commercially available off-the-shelf, that are candidates for 
     incorporation into the plan to design, develop, and procure 
     the submarines;
       (iv) designate the fifth submarine procured after SSN-23 to 
     be the lead ship in a next generation submarine class, unless 
     the Secretary of the Navy, in consultation with the special 
     congressional submarine review panel, determines that more 
     submarines should be built before the design of a new class 
     of submarines is fixed, in which case the fifth and each 
     successive submarine would be procured after a competition 
     based on price; and
       (v) identify the impact of the submarine program on the 
     remainder of the Navy's shipbuilding account;
       (6) impose certain limits on the amounts that can be 
     obligated and expended on the SSN-23 and the fiscal year 1998 
     and 1999 submarines until:
       (a) the Secretary of the Navy has certified in writing to 
     the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House that procurement 
     of future nuclear attack submarines, except as stipulated 
     elsewhere in this provision, would be accomplished through a 
     competition based on price; and
       (b) the Secretary of Defense, not later than March 15, 
     1996, has:
       (i) submitted the submarine design and procurement plan 
     that would be required by the provision;
       (ii) directed the Under Secretary of Defense (Comptroller) 
     to incorporate the costs of the submarine design and 
     procurement plan into the future years defense program, even 
     if the total cost of the plan's program exceeds the 
     President's budget; and
       (iii) directed that the Under Secretary of Defense for 
     Acquisition and Technology conduct oversight of the 
     development and improvement of the nuclear attack submarine 
     program of the Navy and established reporting procedures to 
     ensure that officials of the Department of the Navy, who 
     exercise management oversight of the program, report to the 
     Under Secretary of Defense for Acquisition and Technology 
     with respect to that program;
       (7) direct the Secretary of Defense to use streamlined 
     acquisition policies to reduce the cost and increase the 
     efficiency of the submarine program;
       (8) direct the Secretary of Defense to submit to Congress 
     an annual update of the submarine design and procurement plan 
     with the submission of the President's budget, for each of 
     fiscal years 1998 through 2002;
       (9) direct that funds authorized for fiscal year 1996 by 
     this provision may not be obligated or expended during fiscal 
     year 1996 for the fiscal year 1998 submarine unless funds are 
     also obligated and expended during fiscal year 1996 for the 
     fiscal year 1999 submarine;
       (10) authorize the Secretary of the Navy to enter into 
     contracts with Electric Boat and Newport News, and suppliers 
     of components during fiscal year 1996 for:
       (a) the procurement of long-lead components for the fiscal 
     year 1998 submarine and the fiscal year 1999 submarine; and
       (b) advance construction of long-lead components and other 
     components for such submarines;
       (11) authorize that, of the amount provided in section 
     201(4) of this Act for ARPA, that $100.0 million would be 
     available only for development and demonstration of advanced 
     technologies for incorporation into the submarines 
     constructed as part of the submarine design and procurement 
     plan specified under this provision, to include electric 
     drive, hydrodynamic quieting, ship control automation, solid-
     state power electronics, wake reduction technologies, 
     superconductor technologies, torpedo defense technologies, 
     advanced control concepts, fuel cell technologies, and 
     propulsors;
     
[[Page H573]]

       (12) direct that the Director of ARPA shall implement a 
     rapid prototype acquisition strategy for both land-based and 
     at-sea subsystem and system demonstrations of advanced 
     technologies in concert with Electric Boat and Newport News: 
     and
       (13) define potential competitors, for the purposes of this 
     provision, as those that have been awarded a contract by the 
     Secretary of the Navy for construction of nuclear attack 
     submarines during the past 10 years.
     Research for advanced submarine technology (sec. 132)
       The conferees agree to adopt a new provision that would 
     direct that, of the amount appropriated for fiscal year 1996 
     for the national defense sealift fund, $50.0 million would be 
     available only for the Director of the Advance Research 
     Projects Agency for advanced submarine technology activities.
     Cost limitation for Seawolf submarine program (sec. 133)
       The Senate amendment would authorize the third Seawolf 
     class submarine SSN-23. Consistent with this authorization, 
     the Senate amendment included a provision (sec. 125) that 
     would establish a combined cost cap on all three Seawolf 
     submarines (SSN-21, SSN-22 and SSN-23). This cost cap would 
     be in addition to a cost cap that Congress imposed on the 
     first two Seawolf class submarines, SSN-21 and SSN-22, in 
     fiscal year 1995.
       The House bill included a provision (sec. 132) that would 
     repeal the cost cap on SSN-21 and SSN-22.
       The conferees agree to adopt a new provision that would:
       (1) establish a combined cost cap on the three Seawolf 
     submarines (SSN-21, SSN-22, and SSN-23); and
       (2) repeal the combined cost cap on SSN-21 and SSN-22 that 
     was imposed by the National Defense Authorization Act for 
     Fiscal Year 1995.
     Repeal of prohibition on backfit of Trident submarines (sec. 
         134)
       The House bill contained a provision (sec. 131) that would 
     repeal the provision of law that prohibits the backfit of 
     Trident II (D-5) missiles into Trident I (C-4) missile-
     carrying submarines.
       The Senate amendment contained an identical provision (sec. 
     122).
       The conference agreement contains this provision.
       The conferees endorse an all D-5 fleet of Trident 
     submarines. But the conferees also believe that it is 
     premature to rule out the option of retaining all 18 Trident 
     submarines. Although the Nuclear Posture Review recommended a 
     force of 14 Trident submarines equipped with the D-5 missile, 
     circumstances may require the United States to retain a 
     higher number of such submarines or, alternatively, reduce to 
     a lower level.
       Given this uncertainty, the conferees direct the Secretary 
     of the Navy to take several actions: (1) fully fund all 
     activities necessary for the backfitting of Trident II 
     missiles into at least four west coast Trident submarines on 
     the schedule recommended in the Nuclear Posture Review; and 
     (2) continue to fund, in the fiscal year 1997 budget and in 
     the Future Years Defense Program, adequate operational 
     support for Trident I missiles to ensure the option of 
     retaining all 18 Trident submarines on full operational 
     status, assuming backfits of the final four submarines with 
     D-5 missiles following the completion of the first four 
     conversions.
     Arleigh Burke class destroyer program (sec. 135)
       The Senate amendment contained a provision (sec. 123) that 
     would:
       (1) authorize $650.0 million as the first increment of 
     split funding for two Arleigh Burke class destroyers in 
     accordance with a split funding provision (sec. 124) that was 
     included elsewhere in the Senate amendment; and
       (2) express the sense of Congress that the Secretary of the 
     Navy should plan for and request the final increment of 
     funding for the two Arleigh Burke class destroyers in fiscal 
     year 1997, also in accordance with the split funding 
     provision (sec. 124) of the Senate amendment.
       The House bill contained no similar provision.
       The conferees adopt a new provision that would:
       (1) authorize six Arleigh Burke class destroyers;
       (2) authorize $2.17 billion, the budget request, for the 
     construction, including advance procurement, for Arleigh 
     Burke class destroyers;
       (3) authorize the Secretary of the Navy to enter into 
     contracts in fiscal year 1996 for the construction of three 
     Arleigh Burke class destroyers;
       (4) authorize the Secretary of the Navy to enter into 
     contracts in fiscal year 1997 for the construction of three 
     Arleigh Burke class destroyers, subject to the availability 
     of appropriations for such destroyers;
       (5) continue the contract award pattern and sequence used 
     by the Navy for the procurement of Arleigh Burke class 
     destroyers in fiscal years 1994 and 1995;
       (6) limit the liability of the government for these vessels 
     to the amounts appropriated for them; and
       (7) encourage, subject to a prior notification to the 
     congressional defense committees, the Secretary of the Navy 
     to use shipbuilding and conversion savings, that become 
     excess to the needs of the Navy from other programs, to fully 
     fund Arleigh Burke class destroyer contracts entered into 
     under the terms of the provision.
     Acquisition program for crash attenuating seats (sec. 136)
       The Senate amendment contained a provision (sec. 126) that 
     would allow the Secretary of the Navy to establish a program 
     to procure and install commercially developed, energy 
     absorbing, crash attenuating seats in H-53E helicopters. The 
     Senate provision would allow the Secretary to use up to $10.0 
     million for the program out of unobligated balances in the 
     Legacy Resource Management Program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to establish such a program.
       The conferees acknowledge the potential value of crash 
     attenuating seats for passengers in military helicopters, and 
     expect the Department to proceed quickly to define the 
     technical specification and qualification for non-
     developmental seats. The conferees further expect the 
     Department to ensure the acquisition program incorporates 
     full and open competition.
     T-39N trainer aircraft (sec. 137)
       The budget request did not include funds to purchase the T-
     39N aircraft the Department of the Navy now uses to train 
     naval flight officers. The government leases these aircraft 
     as part of a service contract. The lessor has offered to sell 
     these aircraft to the government, rather than continue the 
     current leasing arrangement.
       The House bill and the Senate amendment would support the 
     budget request.
       The Senate report (S. Rept 104-112) would direct the 
     Secretary of the Navy to provide an analysis of the 
     contractor's proposal to the Armed Services Committee of the 
     Senate, so the proposal and the analysis could be reviewed 
     for possible further action.
       The conferees recommend $45.0 million for purchasing T-39N 
     aircraft, subject to certain conditions. The conferees 
     believe that the proposal deserves further review before 
     purchasing these aircraft. The conferees expect the 
     Department's analysis to answer, at a minimum, the following 
     questions:
       (1) What would be the status of the training program for 
     which T-39Ns are currently leased?
       (2) For what purpose would the Navy spend procurement funds 
     in fiscal year 1996?
       (3) Is funding for this project contained anywhere in the 
     future years defense program (FYDP)? If there is funding, how 
     much?
       (4) Is there an approved requirement in the Navy for 
     acquiring this capability? Does this requirement supplant or 
     supplement the current mission that is being filled by the T-
     39N leasing program?
       (5) How much funding beyond $45.0 million would be required 
     to enable the T-39N system to meet future training 
     requirements? If additional funds are required, how much of 
     the additional cost is budgeted in the FYDP?
       (6) What savings, in terms of both current and constant 
     dollars, would accrue to the Navy by purchasing aircraft for 
     this requirement on a non-competitive basis in fiscal year 
     1996, rather than selecting an aircraft under competitive 
     procedures when the current lease program expires in fiscal 
     year 1998? If savings will accrue, are they attributable to 
     factors other than inflation? Are there savings in life cycle 
     support costs beyond the initial acquisition costs?
       (7) Would additional funding for the project now interfere 
     with the Navy's opportunity to conduct a competitive 
     procurement or better define the program's requirements?
       (8) Are there other reasons that would prevent executing 
     the program in fiscal year 1996?
       (9) The conferees understand that the T-39N leasing 
     contract provided for amortizing the full purchase price of 
     the aircraft over the first five years of the lease. Since 
     the contractor has already been reimbursed in full for 
     purchase price, why would it be in the government's interests 
     to pay more than a nominal amount for aircraft?
       The conferees believe that the proposal to buy the aircraft 
     could have merit; however, the conferees recommend a 
     provision that would prohibit obligation of these acquisition 
     funds until 60 days after the Under Secretary of Defense for 
     Acquisition and Technology has submitted the analysis 
     described above and has certified to the Armed Services 
     Committee of the Senate and the National Security Committee 
     of the House of Representatives that acquisition of the T-39N 
     aircraft is in the best interest of the government and is the 
     most cost effective alternative in meeting the requirements 
     for training naval flight officers.
     Pioneer unmanned aerial vehicle program (sec. 138)
       The Senate amendment contained a provision (sec. 132) that 
     would prohibit the Secretary of the Navy from spending more 
     than one-sixth of the funds appropriated for fiscal year 
     1996, or any unobligated balances available from previous 
     years, until the Secretary certifies that funds have been 
     obligated to equip nine Pioneer Unmanned Aerial Vehicle 
     systems with the Common Automatic Landing and Recovery System 
     (CARLS).
       The House bill contained no similar provision.
       The House recedes.

                     Subtitle D--Air Force Programs

     Repeal of limitations (secs. 141 and 142)
       The budget request included $279.9 million for B-2 
     procurement and $623.6 million for B-

[[Page H574]]
     2 research and development for a B-2 program consisting of twenty 
     aircraft. The House bill contained a provision (sec. 141) 
     that would repeal limitations on the B-2 program, and provide 
     an increase of $553 million for B-2 procurement. The House 
     bill would repeal:
       Section 112 of the National Defense Act for Fiscal Years 
     1990 and 1991, which requires certification from the 
     Secretary of Defense that the B-2 is meeting certain 
     performance criteria.
       Section 151(c) of the National Defense Authorization Act 
     for Fiscal Year 1993, which limits B-2 procurement to 20 
     bombers and one test aircraft.
       Section 131(c) of the National Defense Authorization Act 
     for Fiscal Year 1994, which reaffirms the twenty one aircraft 
     limitation.
       Section 131(d) of the National Defense Authorization Act 
     for Fiscal Year 1994, which limits the total program costs to 
     $28,968,000,000 in Fiscal Year 1981 constant dollars.
       Section 133(e) of the National Defense Authorization Act 
     for Fiscal Year 1995, which provides that none of the $125.0 
     million authorized and appropriated for the Enhanced Bomber 
     Capability Fund may be obligated for advance procurement of 
     new B-2 aircraft (including long lead items).
       The Senate amendment contained no additional funds, nor did 
     it contain any repeal of the limitations provision.
       The conferees agree to an amendment that would repeal the 
     limitations imposed on the scope of the B-2 program, while 
     retaining requirements for B-2 performance compliance in both 
     the present authorization and any possible future acquisition 
     of the aircraft.
       The conferees agree to authorize the budget request for 
     research and development and to increase the authorization 
     for procurement by $493.0 million. The conferees further 
     agree that the $493.0 million may not be spent until March 
     31, 1996.
       The conferees believe that the B-2 bomber represents a 
     major technological advance in strategic bomber capabilities. 
     However, if a decision were made to acquire additional B-2 
     bombers, their high cost would result in funding reductions 
     in the Administration's five year defense program. Therefore, 
     the Senate conferees believe that the increased authorization 
     of $493.0 million provided for the B-2 bomber program may be 
     expended only for procurement of B-2 components, upgrades, 
     and modifications that would be of value for the existing 
     fleet of B-2 bombers.
       The conferees are concerned over the cost of producing 
     modern, highly capable, long range bombers, and therefore 
     strongly urge the Secretary of Defense to: (1) complete the 
     study called for in section 133(d)(3) of the National Defense 
     Act of 1995 (Public Law 103-337) for requirements formulation 
     and conceptual studies for a conventional-conflict-oriented, 
     lower-cost, next generation bomber; and (2) explore options, 
     including adoption of streamlined acquisition policies and 
     procedures, for reducing the costs of producing long-range 
     bombers. Accordingly, the conferees agree to repeal the 
     requirements contained in section 133(d)(3), which states 
     that such a study may be carried out only if the previously-
     produced bomber force study found bomber capabilities to be 
     inadequate.
       The conferees note that section 133(d) permitted the 
     Secretary to obligate up to $25.0 million of the $125.0 
     million authorized and appropriated in fiscal year 1995 for 
     the Enhanced Bomber Capability Fund for such a study. The 
     conferees direct that any remaining unobligated fiscal year 
     1995 funds from the $125.0 million made available for B-2 
     bomber industrial base preservation and next-generation 
     bomber study shall promptly be merged with the $493.0 million 
     in additional B-2 funds authorized in this Act.
       In order to compare force capabilities with relative costs, 
     the conferees urge the Secretary of Defense to provide a 
     summary and detailed listing of program reductions and 
     adjustments to the fiscal year 1997 budget request and the 
     future years' defense program (FYDP) required by the possible 
     acquisition of additional B-2 bombers. The Secretary should 
     use the standard cost analysis approach used in the March 
     1995 Air Force cost estimate for further B-2 acquisition of 
     one and one-half and three aircraft per year.
     MC-130H Aircraft Program (sec. 143)
       The conference agreement includes a new provision that 
     would amend section 161 of the National Defense Authorization 
     Act for Fiscal Years 1990 and 1991 (P.L. 101-189) to enable 
     obligation of funds for award fee and procurement of 
     contractor furnished equipment.
       The conferees understand that the Air Force desires to 
     grant an award fee to the MC-130H Combat Talon II development 
     contractor, but is prohibited from doing so by a provision of 
     Public Law 101-189. The conferees note that the prohibitive 
     legislative provision requires the Director of Operational 
     Test and Evaluation (DOT&E) to certify that the MC-130H 
     Combat Talon II terrain avoidance radar performs in 
     accordance with requirements outlined in the test and 
     Evaluation Master Plan (TEMP) approved by the DOT&E in 
     September 1988. The conferees have been informed that the 
     aircraft cannot be certified as having met TEMP criteria 
     because a specific test criterion referred to in the TEMP has 
     been determined to be unmeasurable.
       The conferees agree to include a provision that would allow 
     the DOT&E to certify to the congressional defense committees 
     that the MC-130H terrain avoidance radar is operationally 
     effective in order to release the award fee for the MC-130H. 
     The conferees direct the DOT&E to include in his report a 
     statement that all unmeasurable test criteria included in the 
     September 1988 TEMP have been appropriately corrected.

             Subtitle E--Chemical Demilitarization Program

     Chemical agents and munitions destruction program (secs. 107, 
         151-153)
       The budget request contained $746.7 million for operation 
     and maintenance, research and development and procurement, 
     for the defense chemical agents and munitions destruction 
     program.
       The House bill contained a series of provisions (secs. 106, 
     151-153, and 2407) that would: authorize the budget request; 
     repeal a legislative requirement to develop a chemical 
     demilitarization cryofracture facility; express congressional 
     concern about the cost growth of destroying the unitary 
     chemical stockpile and express a view that the Secretary of 
     Defense should consider measures to reduce the overall cost; 
     direct the Secretary of Defense to conduct a review and 
     evaluation of issues associated with closure and reuse of the 
     Department of Defense facilities that are co-located with the 
     unitary chemical stockpile and demilitarization operations; 
     and prohibit the obligation or expenditure of fiscal year 
     1996 funds, prior to March 1, 1996, for the construction of a 
     chemical munitions incinerator facility at Umatilla Army 
     Depot, Oregon.
       The Senate amendment contained provisions (sec. 107 and 
     1099C) that would authorize $671.7 million for the chemical 
     agents and munitions destruction program, and direct the 
     Department of Defense to review and assess the risk 
     associated with the transportation of any portion of the 
     unitary chemical stockpile, such as drained chemical agents 
     or munitions from one location to another within the 
     continental United States, and review and evaluate issues 
     associated with closure and reuse of the Department of 
     Defense facilities that are co-located with the unitary 
     chemical stockpile and demilitarization operations. The 
     Senate report (S. Rept. 104-112) would recommend the use of 
     unobligated fiscal years 1994 and 1995 procurement funds for 
     procurement of equipment at Pine Bluff, Arkansas and 
     Umatilla, Oregon.
       The conferees agree to provisions that would authorize 
     $672.3 million for the defense chemical agents and munitions 
     program, to include: $265.0 million for procurement; $353.8 
     million for operations and maintenance; and $53.4 million for 
     research and development. The provision would repeal the 
     legislative requirement to develop a chemical 
     demilitarization cryofracture facility.
       Further, the conferees agree to provisions that would 
     direct the Secretary of Defense to proceed with the 
     destruction of the U.S. chemical stockpile using the current 
     baseline technology. The conferees would also require the 
     Secretary to ensure that support measures have been provided 
     at each installation where a chemical agent and munitions 
     demilitarization facility would be constructed, as required 
     by the Department of Defense and the Department of Army 
     regulations, the chemical demilitarization plans, and the 
     Solid Waste Disposal Act permit. The conferees direct the 
     Secretary to conduct an assessment of the current chemical 
     demilitarization program and recommend measures that could 
     reduce the total cost of the program. The provision would 
     also direct the Secretary to review and evaluate issues 
     associated with the closure and reutilization of Department 
     of Defense facilities co-located with continuing chemical 
     stockpile and chemical demilitarization operations. The 
     conferees agree to authorize the use of funds appropriated 
     for the defense chemical agents and munitions destruction 
     program to support travel and associated travel costs of 
     Commissioners of the Citizens' Advisory Commissions, when 
     such travel is conducted at the invitation of the Assistant 
     Secretary of the Army for Research, Development and 
     Acquisition. The provision would modify existing law to 
     permit the appointment of a civilian as project manager for 
     the chemical agent and munitions destruction program. The 
     Department would also be required to provide a quarterly 
     report to Congress on the use of such funds to pay for the 
     travel and associated travel costs.


     COST OF THE CHEMICAL AGENTS AND MUNITIONS DESTRUCTION PROGRAM

       The conferees remain concerned about the escalating costs 
     associated with the chemical agents and munitions destruction 
     program. The program has grown from its original estimate of 
     $1.7 billion in 1986 to the current estimated cost of $11.9 
     billion, with expectations that costs will further increase. 
     Continued delays in proceeding with the demilitarization and 
     destruction of the chemical stockpile have added to the 
     overall increases in the program. The conferees believe that 
     the program should proceed expeditiously and utilize 
     technology that minimizes risks to the public and the 
     environment.
       The conferees are concerned that continued delays, related 
     to site operation systemization, environmental permits, and 
     construction of the demilitarization and destruction 
     facilities, would increase the overall program costs and 
     risks to the public and the environment.
       Finally, as the Department reviews measures that could be 
     implemented to reduce the growth of the program costs, the 
     conferees expect the Secretary to consider the potential for 
     reconfiguration of the stockpile, as described in the October 
     19, 1995 letter from the Assistant Secretary of the 

[[Page H575]]
     Army for Research, Development and Acquisition, and to ensure 
     protection of the public and environment.


                        ALTERNATIVE TECHNOLOGIES

       The Department of the Army is currently conducting research 
     and development of chemical neutralization and 
     biodegradation, in conjunction with neutralization, for use 
     at the bulk-only storage sites. The conferees believe there 
     is potential for the implementation of these processes at 
     future demilitarization and destruction sites, which could 
     reduce the requirement for a liquid incinerator. The 
     conferees support the National Research Council's (NRC's) 
     recommendation that the Army continues its current baseline 
     incineration program until such time as the evaluation of 
     these alternative technologies is concluded.
       If the evaluation of the alternative technologies research 
     and development program proves successful, the conferees 
     would support inclusion of this process into the baseline 
     process. In conducting the chemical demilitarization and 
     destruction program and assessing measures to significantly 
     reduce program costs, the conferees expect the Department to 
     consider a wide range of alternatives to the current baseline 
     incineration program, to include the use of alternative 
     technologies.
       Additionally, the conferees expect the Secretary's 
     assessment of the current chemical demilitarization program 
     and measures to reduce the overall cost of the program, to 
     include a risk analysis specific to each chemical stockpile 
     storage and demilitarization site, the results of the 
     stockpile surveillance and stability analysis related to the 
     physical and chemical integrity of the stockpile, and the 
     potential reconfiguration of the chemical stockpile. In 
     making such an assessment, the Secretary shall ensure the 
     maximum protection of the environment, the general public, 
     and the personnel involved in the destruction of the chemical 
     stockpile, while minimizing total program costs. The 
     conferees expect the assessment to yield potential revisions 
     to the chemical agents and munitions destruction program that 
     could reduce program costs and increase public safety.


                   legislative provisions not adopted

     Repeal of limitation on total cost for SSN-21 and SSN-22 
         Seawolf submarines
       The budget request included $1.5 billion for construction 
     of the third Seawolf class submarine, SSN-23.
       The House bill would not authorize SSN-23. However, 
     consistent with other actions taken by the House on SSN-22, 
     the House bill contained a provision (sec. 132) that would 
     eliminate the existing cost cap on the first two Seawolf 
     class submarines.
       The Senate amendment would authorize SSN-23. It did not 
     contain a provision that would repeal the cost cap on SSN-21 
     and SSN-22.
       The House recedes.
     Competition required for selection of shipyards for 
         construction of vessels for next generation attack 
         submarine program
       The House bill contained a provision (sec. 133) that would:
       (1) require the Secretary of the Navy to select on a 
     competitive basis the shipyard for construction of each 
     vessel of the next generation attack submarine program; and
       (2) stipulate that the next generation attack submarine 
     program shall begin with the first submarine that is 
     programmed to be constructed after the submarine that is 
     programmed to be constructed in fiscal year 1998.
       The Senate amendment contained a provision (sec. 121) that 
     would address competition as an integral part of the broader 
     issue of current and future nuclear submarine construction 
     programs.
       The House recedes.
       The conferees agree to incorporate the issue of competition 
     for future submarines into a new, more comprehensive 
     provision dealing with future submarine development and 
     procurement.
     Sonobuoy programs
       The budget request included $8.9 million for the 
     procurement of AN/SSQ-53 sonobuoys and no funding for the 
     procurement of AN/SSQ-110 sonobuoys.
       The House bill contained a provision (sec. 134) that would:
       (1) stipulate that no fiscal year 1996 funds could be used 
     for procurement of AN/SSQ-53 sonobuoys; and
       (2) authorize $8.9 million for AN/SSQ-110 sonobuoys.
       While the Senate amendment contained no similar provision, 
     it did recommend funding adjustments to these two sonobuoy 
     programs that would accomplish the intent underlying the 
     House provision.
       The conferees agree that the funding adjustment included in 
     the House provision should be adopted, but do not believe 
     that a legislative provision to that effect is necessary.
       The House recedes.
     Split funding for construction of naval vessels and 
         incremental funding of procurement items
       The Senate amendment contained a provision (sec. 124) that 
     would authorize the Secretary of Defense to employ split 
     funding for construction of certain naval vessels when 
     developing the future years defense program. The provision 
     would permit the Secretary to provide funding for these 
     vessels over two years, but enter into a contract based on 
     the first increment of funding. The intent of the provision 
     would be to provide the Secretary with more flexibility to 
     develop a uniform and cost effective shipbuilding program.
       The House bill contained a provision (sec. 1007) that would 
     prohibit the use of incremental funding, including split 
     funding, for:
       (1) the procurement of aircraft, missiles, or naval 
     vessels;
       (2) the procurement of tracked combat vehicles;
       (3) the procurement of other weapons; and
       (4) the procurement of naval torpedoes and related support 
     equipment.
       The House provision would not apply to funding classified 
     as advance procurement funding.
       These provisions were not included in the conference 
     agreement.
     Tier II predator unmanned aerial vehicle program
       The Senate amendment contained a provision (sec. 131) that 
     would prohibit the obligation of funds appropriated or 
     otherwise made available for the Department of Defense in 
     fiscal year 1996 for the Tier II Predator Unmanned Aerial 
     Vehicle.
       The House bill contained no similar provision.
       The Senate recedes.
     Joint primary aircraft training system program
       The budget request included $55.0 million for three joint 
     primary aircraft training system (JPATS) aircraft. At the 
     time of the budget submission, the Department of Defense 
     (DOD) had not completed the JPATS competition. This amount 
     was derived from an estimate of funding required to procure 
     three aircraft from any of the potential competitors. After 
     source selection, the Department determined that it could 
     procure eight JPATS aircraft with the requested funds.
       The Senate amendment contained a provision (sec. 133) that 
     would increase the number of aircraft that the Department 
     could procure, from three to eight, without changing the 
     amount of the authorization.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree that the Air Force should buy up to 
     eight aircraft with authorized funds.
     Weapons industrial facilities
       The budget request included $13.1 million for naval weapons 
     industrial facilities.
       The Senate amendment included a provision (sec. 391) that 
     would authorize an increase of $2.0 million in operations and 
     maintenance accounts for essential safety functions for the 
     Allegany Ballistics Laboratory.
       The House bill contained no similar provision.
       The Senate recedes. The conferees agree to provide an 
     increase of $30.0 million for naval weapons industrial 
     facilities for continuation of the facility restoration 
     program at Allegany Ballistics Laboratory.

         Title II--Research, Development, Test, and Evaluation

     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $34,331.9 million for Research and 
     Development in the Department of Defense. The House bill 
     would authorize $35,934.5 million. The Senate amendment would 
     authorize $35,959.9 million. The conferees recommended an 
     authorization of $35,730.4 million. Unless noted explicitly 
     in the statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $4,444.2 million for Army, Research and 
     Development in the Department of Defense. The House bill 
     would authorize $4,774.9 million. The Senate amendment would 
     authorize $4,845.1 million. The conferees recommended an 
     authorization of $4,737.6 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Passive millimeter wave camera
       The budget request did not include funds for the passive 
     millimeter wave camera.
       The House bill would add $6.0 million in PE 62120A for 
     continuation of the program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Tractor rose
       The budget request included $4.5 million for Tractor Rose.
       The House bill would authorize the requested amount.
       The Senate amendment would authorize an additional $13.5 
     million.
       The conferees are aware of recent progress in the 
     activities related to this program. As a consequence, the 
     conferees recommend authorization of this project at the 
     level of funds appropriated in fiscal year 1996. In addition, 
     the conferees urge the Department of the Army to consider 
     reprogramming funds below threshold to capitalize on the 
     potential of this technology.
     Electric gun technology
       The budget request included $9.0 million for the electric 
     gun exploratory development program.
       The House bill would authorize an additional $6.0 million 
     in PE 62618A to complete research team data gathering and 
     assessment in order to refocus the effort on the most 
     promising technologies.
       The conferees agree to authorize an additional $7.0 million 
     for electric gun technology and an additional $1.0 million 
     for the electrothermal chemical gun.
     Objective individual combat weapon (OICW)
       The budget request included $5.1 million in PE 62623A and 
     $4.5 million in PE 63607A for continuation of the joint 
     service small arms program.
       The House bill would authorize an additional $2.0 million 
     in PE 63607A for an advanced technology demonstration of 
     lightweight, medium caliber, multi-shot, anti-armor weapon 
     technology for application to a next-generation objective 
     individual combat weapon system (OICW) for the Army and the 
     Marines. The House report (H. Rept. 104-131) expressed the 
     concern that funds requested for the OICW in fiscal year 1996 
     are insufficient to adequately conduct this advanced 
     technology program. The House report also encouraged the 
     Secretary of the Army to examine the current development 
     strategy for the OICW to support the joint small arms master 
     plan (JSAMP) and to request reprogramming of funds to carry 
     out the plan.
       The Senate amendment would authorize the requested amount.
       The House recedes. The conferees strongly support the 
     development of advanced technology for advanced individual 
     weapons systems, as outlined in the JSAMP, and share the 
     concerns expressed in the House report regarding adequacy of 
     funding for development of the OICW. The conferees encourage 
     the Secretary of the Army to request reprogramming of 
     additional funds to compensate for any fiscal year 1996 
     funding shortfalls in the OICW program. The conferees also 
     encourage the Secretary to include additional funds in the 
     fiscal year 1997 budget request for OICW.
     Advanced battery technology
       The budget request did not include funding for advanced 
     batteries.
       The House bill would authorize $3.0 million in PE 62705A 
     for non-metallic lithium and low-cost reusable alkaline 
     batteries.
       The Senate amendment contained no similar provision.
       The conferees agree to the House authorization, but agree 
     to provide only $2.0 million in PE 62705A.
     Environmental policy simulation laboratory
       The conferees agree that $3.0 million of the funds 
     appropriated in PE 62720A shall be authorized for the 
     establishment of an environmental policy simulation lab under 
     the direction of the Army Environmental Policy Institute. The 
     conferees further direct the Department of Defense to comply 
     with the direction contained in the Senate report (S. Rept. 
     104-112) regarding the establishment of this lab.
     Command, control, and communications technology
       The budget request included $15.7 million in PE 62782A for 
     the exploratory development of command, control, and 
     communications technology.
       The House bill would authorize the requested amount.
       The Senate amendment would authorize an additional $2.0 
     million in PE 62782A as part of a general increase to address 
     underfunding in the Army technology base.
       The Senate recedes.
       The conferees agree that the Army technology base has been 
     underfunded in recent years. The conferees urge the Army 
     leadership and the Office of the Secretary of Defense provide 
     for balanced funding of the Army technology base program, as 
     related to other Defense program accounts in the fiscal year 
     1997 budget request.
     Medical advanced technology
       The budget request included $11.8 million for medical 
     advanced technology.
       The House bill would include an additional $5.0 million for 
     continuation of the battlefield tissue replacement program.
       The Senate amendment would include an additional $3.0 
     million for telemedicine.
       The conferees agree to authorize an additional $8.0 million 
     for both of these programs and an additional $1.0 million for 
     Army standardized testing of Trichloromelamine (TCM) in PE 
     63002A.
     Aviation advanced technology
       The budget request included $48.6 million for aviation 
     advanced technology.
       The House bill provided an additional authorization of $6.5 
     million for evaluation of the Starstreak missile and $10.0 
     million for tactical mobility technologies and designs, 
     particularly related to the CH-47.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an additional $4.0 million 
     in PE 63003A for the completion of the phase II air-to-air 
     test and evaluation for Starstreak during fiscal year 1996 
     and $4.0 for modernization technologies and improvement 
     designs for the CH-47D.
       The Army is encouraged to provide sufficient funding in its 
     fiscal year 1997 budget request for completion of the air-to-
     air Starstreak evaluation program and continuation of the CH-
     47D modernization program.
     Weapons and munitions-advanced technology
       The budget request included $18.8 million for weapons and 
     munitions advanced technology.
       The House bill would authorize an additional $2.0 million 
     for the XM 982/155mm projectile development.
       The Senate amendment would authorize the request.
       The conferees agree to authorize $2.0 million for the XM 
     982/155mm projectile development, an additional $6.0 million 
     for the precision guided mortar munition, and an additional 
     $1.0 million for electrorheological fluid recoil in PE 
     63004A.
     Command, control, and communications-advanced technology
       The budget request included $16.9 million in PE 63006A for 
     advanced development of command, control, and communications 
     technology.
       The House bill would authorize the requested amount.
       The Senate amendment would authorize an additional $3.0 
     million to partially address funding shortfalls in the Army 
     technology base for fiscal year 1996. The Senate amendment 
     would also authorize an increase of $4.0 million in PE 63006A 
     to develop and test wave net technology for possible 
     application to the Army's digitization initiatives.
       The conferees agree to authorize the additional $4.0 
     million to PE 63006A for development and testing of wave net 
     technology.
     Space applications technology program
       The budget request included $16.9 million in PE 63006A for 
     command, control, and communications advanced technology, 
     including $498,000 for the Army's space applications 
     technology program.
       Both the House bill and the Senate amendment would 
     authorize the budget request for the Army's space 
     applications technology program.
       The conferees agree to an additional $5.0 million in PE 
     63006A for the space applications technology program. The 
     conferees are aware of the program's success in demonstrating 
     global positioning system and Wrasse weather data receivers 
     during Operation Desert Storm/Desert Shield and other space 
     technology applications, such as, the location of high value 
     targets using hyperspectral sensing techniques, high data 
     rate satellite communications on the move, and down link 
     weather satellite technology. The conferees encourage the 
     Army to continue support to the program in future budget 
     requests.
     Acquired immune deficiency syndrome
       The budget request included $2.9 million in PE 63105A.
       Both the House bill and the Senate amendment authorized the 
     requested amount.
       The conferees agree to authorize the requested amount and 
     concur with the Senate report (S. Rept. 104-112) that 
     directed at least $1.0 million of the authorized amount be 
     used to continue domestic clinical HIV programs.
     Joint precision strike demonstration programs
       The budget request included $34.1 million in PE 63238A for 
     the joint air-land-sea precision strike demonstration (JPSD) 
     program.
       The House bill would direct that the JPSD program be 
     expanded into a jointly manned program, with participation by 
     all military services, and would recommend an increase of 
     $4.0 million for this purpose.
       The Senate amendment would authorize the requested amount.
       The House recedes. The conferees agree with the views 
     expressed in the House report (H. Rept. 104-131) on the 
     progress made by the Army in demonstrating advanced concepts 
     for attack of time-critical targets. The conferees also agree 
     with the House report recommendations for increased 
     participation by the other military services in the JPSD. 
     Attack of time-critical targets on the battlefield is a joint 
     issue which requires the coordinated efforts of all the 
     military services.
     Missile and rocket advanced technology
       The budget request included $123.9 million in PE 63313A for 
     missile and rocket advanced technology.
       The House bill would reduce the requested amount by $12.1 
     million by making the following adjustments: adding $2.5 
     million for low cost autonomous attack submunition (LOCAAS) 
     and $5.0 million for low-cost guidance development for the 
     multiple launch rocket system (MLRS); and reducing the amount 
     requested for the rapid force projection initiative by $19.6 
     mil

[[Page H584]]
     lion.
       The Senate amendment would increase the requested amount by 
     $12.0 million, with $5.0 million for LOCAAS and $7.0 million 
     for low-cost guidance for MLRS.
       The conferees agree to authorize a total of $118.9 million 
     in PE 63313A. The conferees agree to reduce the requested 
     amount by $7.5 million for the Enhanced-Fiber Optic Guided 
     (E-FOG) missile system, as a result of concerns expressed in 
     the House report (H. Rept. 104-131), and to add $2.5 million 
     for LOCAAS within PE 63313A. The conferees would also 
     increase the requested amount by $2.5 million for LOCAAS in 
     PE 63601F for the Air Force. The conferees continue to 
     support low-cost guidance for the MLRS and urge the Army to 
     reprogram funds for this program in fiscal year 1996 and to 
     request adequate funds in the fiscal year 1997 budget 
     request.
     Landmine warfare and barrier advanced technology
       The budget request included $18.8 million for landmine 
     warfare, and barrier advanced technology.
       The House bill would authorize an additional $10.0 million 
     for continuation of the landmine neutralization program.
       The Senate amendment would approve the budget request.
       The conferees agree to authorize an increase of $6.0 
     million for PE 63606A. Of this increase, $3.0 million will be 
     used for landmine detection and clearance technology 
     development, and $3.0 million will be used for the 
     accelerated development and testing of the Ground Penetrating 
     Radar.
     Intelligence fusion analysis demonstration
       The budget request included $2.9 million in PE 63745A for 
     the Intelligence Fusion Analysis Demonstration program.
       The House bill would authorize an additional $3.0 million 
     for development and evaluation in Army Warfighter Experiments 
     and the joint precision strike demonstration program of 
     advanced large screen, automated graphical displays that 
     would provide enhanced situational awareness for tactical 
     commanders.
       The Senate amendment would authorize the requested amount.
       The Senate recedes.
     Aviation advanced development
       The budget request contained $8.4 million for aviation 
     advanced development.
       The House bill would authorize an additional $6.0 million 
     for the common helicopter helmet development in PE 63801A.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Comanche helicopter (RAH-66)
       The budget request included $199.1 million to continue 
     development of the Comanche scout/attack helicopter.
       The House bill would authorize an increase of $100.0 
     million for Comanche research and development.
       The Senate amendment would authorize an increase of $174.0 
     million and require the Department of Defense and the 
     Department of the Army to develop a plan to provide for 
     procurement of Comanche helicopters, not later than fiscal 
     year 2001, with initial operating capability by fiscal year 
     2003.
       The Senate recedes.
       The conferees agree to authorize an increase of $100.0 
     million to accelerate development of the electro-optical 
     system and integrated communication navigation package, and 
     mission equipment software development for the second 
     aircraft.
     Medium truck extended service program
       The House bill would authorize an additional $9.4 million 
     for the Marine Corps medium truck variant.
       The Senate amendment would add $10.0 million to PE 64604A 
     for initiation of a five-ton truck extended service program 
     (ESP), and $9.4 million to PE 26624M for additional medium 
     truck variants and development of simulation models and 
     testing.
       The conferees agree to provide $1.5 million in PE 64604A 
     for the Army's five-ton ESP and $3.5 million for the Marine 
     Corps in PE 26624M for initiation of a medium tactical 
     vehicle replacement (MTVR).
       The conferees agree with the section of the Senate Report 
     (S. Rept. 104-112) that deals with the medium tactical truck 
     extended service program, including the requirements for a 
     report from the Secretary of the Army on the medium truck 
     ESP.
       As the manager of tactical vehicles for the Department of 
     Defense, the conferees expect the Army to manage the Army 
     five-ton truck ESP and the Marine Corps MTVR program and 
     ensure that Air Force and Navy requirements are included in 
     executing the Army ESP. The conferees expect the Army to take 
     maximum advantage of medium truck ESP currently underway, to 
     minimize additional procurements to avoid industrial 
     overcapacity, and to give consideration to reliable 
     manufacturers that have demonstrated capabilities to produce 
     military trucks.
     Heavy tactical vehicles
       The House bill would provide an increase of $2.75 million 
     in PE 64622A, $1.9 million for water heater/chiller 
     development for the Army's water tank semitrailer, and $.85 
     million for a palletized loading system technology 
     demonstration.
       The Senate amendment would provide an increase of $1.9 
     million in PE 64622A for water heater/chiller development for 
     the Army's water tank semitrailer.
       The Senate recedes.
     High mobility multipurpose wheeled vehicle extended service 
         program
       The Senate amendment would include an increase of $5.0 
     million in PE 64642A to initiate an extended service program 
     (ESP) for the high mobility multipurpose wheeled vehicle 
     (HMMWV).
       The conferees recognize that the HMMWV fleet is reaching 
     age and mileage levels leading to increased maintenance and 
     operating costs and lower reliability. The conferees agree to 
     provide an increase of $2.0 million for initiation and 
     prototype development for HMMWV ESP.
       The conferees direct the Secretary of the Army to submit, 
     with the fiscal year 1997 budget request, a report to the 
     congressional defense committees that describes a program to 
     develop and test prototypes, and to initiate a joint program 
     to remanufacture HMMWV's for the Army and the Marine Corps, 
     harmonizing their requirements for ESP. The conferees further 
     direct the Secretary of the Army and the Secretary of the 
     Navy to ensure this program is fully funded in future 
     budgets.
     Automated test equipment development
       The budget request included $5.4 million for automated test 
     equipment development.
       The House bill would authorize an additional $10.0 million 
     in PE 64746A for the integrated family of test equipment.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Joint surveillance target attack radar system
       The budget request included $18.8 million for the Army and 
     $169.7 million for the Air Force for the Joint Surveillance 
     Target Attack Radar System (JSTARS).
       The House bill would authorize an increase in the Air Force 
     requested amount, $14.0 million to establish a NATO program 
     office and $20.0 million for development of an improved data 
     modem and satellite communications capability.
       The Senate amendment would authorize no additional funding 
     for these programs.
       The conferees agree to authorize an additional $9.5 million 
     in PE 64770A for the Army Ground Station Module, in support 
     of the NATO Alliance Ground Surveillance program, and an 
     additional $24.5 million in PE 64770F, with $4.5 million for 
     the Air Force portion of the JSTARS NATO Alliance Ground 
     Surveillance program and $20.0 million for development of an 
     improved data modem and satellite communications capability.
     Weapons and munitions-engineering development
       The budget request included $15.9 million for weapons and 
     munitions-engineering development.
       The House bill would authorize an additional $2.7 million 
     for type classification of a soft mount for the MK-19 and 
     $1.6 million for the 120mm practice cartridge XM-931 training 
     round.
       The Senate amendment would authorize $0.5 million for type 
     classification of a non-developmental universal mounting 
     bracket for the MK-19 grenade machine gun.
       The conferees agree to authorize $0.5 million for the type 
     classification of the MK-19 mounting bracket and $1.6 million 
     for the 120mm practice cartridge in PE 64802A.
     Battlefield combat identification system (BCIS)
       The conferees are disappointed with the fiscal constraints 
     that precluded full funding of the administration's $30.5 
     million request for non-cooperative target recognition (PE 
     64817A), particularly in relation to the battlefield combat 
     identification system (BCIS). Fratricide on the battlefield 
     is of great concern to our fighting forces, and BCIS is 
     expected to significantly enhance the Army's ability to deal 
     with this critical issue. The system has performed extremely 
     well in Army testing to date, and the program enjoys 
     widespread support, both within the military services and the 
     warfighting Commanders-in-Chief. The conferees encourage the 
     Secretary of the Army to aggressively pursue the program, and 
     would entertain a reprogramming request to fund additional 
     BCIS units or accelerated BCIS development.
     Joint warfighter interoperability demonstration
       The budget request included $46.5 million in PE 65712A for 
     support of Army operational testing.
       The House bill would recommend an additional $1.5 million 
     for support of a joint warfighter interoperability 
     demonstration, one of the key fiscal year 1996 funding 
     shortfalls identified during evaluation of the Department of 
     the Army budget request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an additional $1.5 million 
     in PE 23758A for support of the joint warfighting 
     interoperability demonstration, as recommended in the House 
     bill.
     Missile/air defense product improvement
       The budget request included $17.1 million for the missile/
     air defense product improvement program element.
       The House bill would authorize an increase of $9.8 million 
     for the evaluation of Stinger block II.
       The Senate amendment would also authorize $9.8 million for 
     Stinger, and an additional $35.0 million for Patriot cruise 
     missile defense.
       The conferees agree to authorize $61.9 million in PE 
     23801A, an increase of $44.8 million for both programs.
     
[[Page H585]]

     Instrumented factory for gear development
       The budget request did not include funding for the 
     continuation of the instrumented factory gear (INFAC).
       The House bill would authorize an additional $5.0 million 
     for INFAC in PE 78045A.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Polycrylonitrile carbon fibers
       The budget request did not include funding for 
     polycrylonitrile (PAN) fiber development.
       The House bill would authorize an additional $4.0 million 
     for PAN fibers in the Army MANTECH program.
       The Senate amendment would authorize an additional $4.0 
     million for PAN fibers in the Army materials technology 
     program.
       The conferees agree to authorize an additional $4.0 million 
     for this PAN fibers program in PE 78045A.
     Rotary winged aircraft repair
       The budget request included no funding for manufacturing 
     technology related to rotary winged aircraft repair.
       The House bill would fence $1.5 million of the Army MANTECH 
     program for technologies related to industrial-academic 
     partnerships for repair technology development and insertion 
     for rotary winged aircraft.
       The Senate amendment contained no similar provision.
       The conferees agree to authorize $1.5 million for the 
     program in PE 78045A.
     Task force XXI soldier
       The conferees agree to authorize $30.0 million for a 
     program that consolidates the Army's Land warrior and 
     Generation II (GEN II) soldier programs. The conferees agree 
     to the following adjustment for the purpose of program 
     consolidation:

                                                               Millions
PE 63001A--Logistics Advanced Technology..........................-$4.9
PE 63710A--Night Vision Advanced Technology........................-4.2
PE 63772A--Advanced Tactical Computer Science and Technology.......-5.0
PE 63747A--Soldier Support and Survivability......................-25.9
Task Force XXI Soldier............................................+30.0

       The conferees believe that the Army must examine and 
     consider a full range of alternatives, including expansion of 
     the dismounted soldier system of the applique program, 
     execution of the Land Warrior program, and acceleration of 
     the GEN II advanced technology demonstrator, to the extent 
     that they support the new consolidated program.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $8,204.5 million for Navy, Research and 
     Development in the Department of Defense. The House bill 
     would authorize $8,516.5 million. The Senate amendment would 
     authorize $8,624.2 million. the conferees recommended an 
     authorization of $8,474.8 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Long-range guided projectile technology
       The budget request contained $32.7 million for development 
     and demonstration of the advanced global positioning system/
     inertial navigation system (GPS/INS) guidance and control 
     technology for long range precision guided munitions used by 
     Navy surface fire support and Army long-range artillery.
       The House bill would authorize an additional $9.0 million 
     to accelerate the development and demonstration of the GPS/
     INS.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment.
       The conferees agree to an additional $2.0 million in PE 
     62111N for the purposes indicated in the House report (H. 
     Rept. 104-131). The conferees are aware of a demonstrated 
     rapid progress in the development and demonstration of 
     miniaturized, gun-hardened GPS/INS technology in the Army's 
     Low-Cost Competent Munition (LCCM) Program, the Navy's 
     advanced technology demonstration program for an extended 
     range guided projectile, and the cooperative LCCM technology 
     program established between Departments of the Army and the 
     Navy. The conferees believe that the technology may 
     significantly improve the accuracy of existing and future 
     gun-fired projectiles, missiles, and rockets, and that an 
     opportunity exists to accelerate development and 
     demonstration in these areas. The conferees strongly 
     encourage increased funding in this area in future Army and 
     Navy budget requests.
     Surface ship technology
       The budget request included $36.8 million for surface ship 
     technology.
       The House bill would authorize an additional $6.0 million 
     for power electronics building blocks and $10.0 million for 
     advanced submarine technology development.
       The Senate amendment would authorize an additional $6.0 
     million for power electronics building blocks.
       The conferees agree to authorize $67.8 million in PE 
     62121N; an increase of $31.0 million. That authorization 
     includes $6.0 million for power electronics building blocks, 
     $10.0 million for advanced submarine technology development 
     and $15.0 million for curved plate technology for ship 
     construction.
     Power electronic building blocks
       The budget request did not include funding for the power 
     electronic building blocks project.
       Both the House bill and the Senate amendment contained $6.0 
     million in PE 62121N to initiate a power electronics program 
     based on metal oxide semiconductor (MOS) control thyristors 
     for high speed switching.
       The conferees agree that the program should be affiliated 
     with academic institutions and, as recommended by the Senate, 
     involve a computational test bed for system simulation. The 
     conferees agree that at least one-third of the funding should 
     be for university participation.
     Flat panel, helmet-mounted display
       The budget request included $7.0 million in PE 62122N for 
     exploratory development of air vehicle technology.
       The House bill would authorize an additional $2.5 million 
     to continue exploratory development of flat panel, helmet-
     mounted displays for air crew helmets.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Communications technology
       The budget request included $9.2 million in PE 62232N to 
     continue development of key communications technologies for 
     air, ship, and submarine platforms.
       The House bill would authorize an additional $4.0 million 
     for support of wireless and satellite communications research 
     in the areas of integrated antenna systems, communications 
     hardware design, communication algorithm development and 
     high-frequency device modeling and measurements.
       The Senate amendment contained no similar recommendation.
       The House recedes. The conferees recognize the importance 
     of continued wireless and satellite communications research 
     in the areas recommended in the House report (H. Rept. 104-
     131).
     Air crew adaptive automation technology
       The budget request included $40.5 million in PE 62233N for 
     exploratory development of enabling readiness, training, and 
     environmental technologies that support the manning, 
     operation, and maintenance of fleet assets, and that provide 
     the necessary training, facilities, and equipment to maintain 
     operational forces in a high state of readiness.
       The House bill would authorize an additional $2.7 million 
     to continue development of adaptable automation technology 
     for management of air crew workloads.
       The Senate amendment would authorize the budget request.
       The House recedes.
     Embedded sensors
       The budget request included $74.8 million in PE 62234N for 
     exploratory development in the areas of materials, 
     electronics, and computer technology in support of Navy 
     advanced weapon and platform systems.
       The House bill would authorize an additional $3.0 million 
     to complete the exploratory development of embedded, remotely 
     queried, microelectromechanical sensors in thick composites, 
     which would be suitable for use in submarine, ships, and 
     armored vehicles.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Parametric airborne dipping sonar
       The budget request included $51.2 million for exploratory 
     development of undersea surveillance and weapons technology.
       The Senate amendment would authorize an additional $4.8 
     million in PE 62314N to expand the current scope of the 
     demonstration and evaluation of parametric sonar technology 
     to provide three dimensional stabilized steerable beams, 
     around 360 degrees, at full source level, further 
     characterize the technology for mine avoidance implications, 
     and evaluate whether parametric sonar technology merits 
     further development.
       The House bill contained no similar provision.
       The House recedes. The conferees agree that the Navy should 
     complete evaluation of the limited capability laboratory 
     prototype, in-depth technical review and assessment of the 
     potential of parametric sonar for helicopter application, and 
     in-water testing and evaluation of the parametric airborne 
     dipping sonar prototype.
     Polar Ozone Aerosol Monitor III
       The budget request included $45.5 million for exploratory 
     development of oceanographic and atmospheric technology, in 
     support of joint warfare mission area capabilities.
       The House bill would authorize an additional $5.0 million 
     to complete engineering, integration and test of the Polar 
     Ozone Aerosol Monitor (POAM) III payload on the SPOT 4 
     spacecraft, in anticipation of system launch in 1997.
       The Senate amendment included no similar provision.
       The conferees agree to authorize an additional $2.5 million 
     in PE 62435N to continue engineering, integration and test of 
     the POAM III payload on the SPOT 4 spacecraft. The conferees 
     encourage the Secretary of the Navy to reprogram those funds 
     necessary to complete the program and launch the POAM III 
     payload on the SPOT 4 spacecraft in 1997.
     Air crew protective clothing and devices
       The budget request included $1.7 million in PE 63216N for 
     demonstration and validation of air crew protective clothing 
     and devices.
       The House bill would authorize an additional $7.4 million 
     to the budget request to continue development of the advanced 
     integrated life support system and of an advanced technology 
     escape system for air crews. The House report (H. Rept. 104-
     131) also directed the Navy to provide, by March 2, 1996, a 
     report that would describe the program plan for these two 
     programs and the coordination of each plan with programs 
     under consideration in the Air Force and the Army.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
       The conferees direct the Secretary of the Navy to submit 
     the report described in the House report (H. Rpt. 104-131).
     Air systems and weapons advanced technology
       The budget request included $17.1 million for air systems 
     advanced technology in PE 63217N. The request contained no 
     specific funding for the maritime avionics subsystems and 
     technology (MAST) program. MAST is a fiscal year 1995 ``new 
     start'' that focuses on the development of scaleable, open, 
     fault-tolerant, and common avionics architectures.
       The House bill would authorize an additional $35.0 million 
     for the advanced anti-radiation guided missile (AARGM). The 
     House report (H. Rept. 104-131) encouraged the Navy and the 
     Air Force to pursue the technology objectives of the MAST 
     program under respective avionics technology development 
     programs and the Joint Advanced Strike Technology (JAST) 
     program.
       The Senate amendment would authorize an additional $9.0 
     million for rapid response technologies.
       The conferees agree to authorize an additional $35.0 
     million in PE 63217N for AARGM and $9.0 million for rapid 
     response technologies for the specific purposes detailed in 
     the respective House and Senate reports (H. Rept. 104-131; S. 
     Rept. 104-112). The conferees also agree to authorize an 
     additional $10.0 million for continuation of the MAST program 
     in fiscal year 1996, and recommend that the Secretary of the 
     Navy consider requirements for continuation of the MAST 
     program in the Navy's fiscal year 1997 budget request.
     Mobile off-shore base (MOBS)
       The budget request included $14.7 million in PE 63238N to 
     begin using ARPA developed technology for a mobile offshore 
     base (MOB) and to initiate sub-scale tests of a complete 
     system for the purpose of evaluating risks associated with 
     full scale construction.
       The House bill would authorize the budget request. The 
     House report (H. Rept. 104-131), citing the potential cost of 
     the MOBS system, noted that the Department of Defense had 
     failed to comply with guidance provided in the Statement of 
     Managers (H. Rept. 103-701) accompanying the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337). 
     The House report directed that any fiscal year 1996 funds 
     authorized and appropriated for MOBS or for the Landing Ship 
     Quay/Causeway not be obligated until the Department provides 
     the reports and certification previously directed by 
     Congress.
       The Senate amendment would authorize the budget request.
       The House recedes from its restriction on the obligation of 
     fiscal year 1996 f

[[Page H592]]
     unds for the MOBS project. The conferees note, however, the point made 
     in the House report (H. Rept. 104-131) about the large 
     potential cost of the MOBS program if carried to completion. 
     The conferees further note that, in accordance with section 
     2430, title 10, United States Code, MOBS qualifies as an 
     Acquisition Category I major defense acquisition program. 
     Therefore, it is subject to the review and approval 
     procedures for major defense acquisition programs established 
     in Department of Defense instructions, regulations, and 
     procedures. Under these review and approval procedures, a 
     Milestone 0 (concept exploration and definition) review of 
     the MOBS project is required by the Defense Acquisition Board 
     (DAB). The conferees direct the Secretary of Defense to 
     report to the congressional defense committees, by March 31, 
     1996, the plan and schedule for incorporating MOBS into the 
     DAB process and accomplishing a Milestone 0 review.
     Medical development
       The conferees agreed to authorize an additional $1.0 
     million (PE 63706N) for acceleration of blood storage 
     development and an additional $3.0 million (PE 63706N) for 
     the Naval Biodynamics Laboratory (NBDL) for infrastructure 
     transfer activities.
     Sensor integration and decision support systems
       The budget request contained $17.8 million in PE 63707N for 
     advanced development of manpower, personnel, and training 
     technology, including $1.1 million for air human factors 
     engineering.
       The House bill would authorize an additional $1.5 million 
     in PE 63707N for development and evaluation of intelligent, 
     multi-source, multi-platform sensor integration and cockpit 
     decision support systems.
       The Senate amendment would authorize the budget request.
       The House recedes.
     Navy advanced technology demonstration
       The budget request included $96.8 million in PE 63792N for 
     advanced development and demonstration of high payoff, 
     emerging technologies that could significantly improve Navy 
     warfighting capabilities.
       Both the House bill and the Senate amendment would 
     authorize the budget request.
       The conferees agree that the program for advanced 
     technology demonstration of low cost, highly accurate 
     guidance and control for improved naval surface fire support 
     from surface 5" guns shall be fully funded at the level 
     established in the budget request.
     Remote controlled minehunting vehicle
       The budget request included $7.6 million in PE 63502N for 
     development and demonstration of improvements in minehunting 
     sonar and remotely controlled minehunting systems.
       The House bill would authorize an additional $1.65 million 
     in PE 63502N to accelerate the remote minehunting operational 
     prototype (RMOP) development program and provide an interim 
     operational capability to the fleet.
       The Senate amendment would authorize an additional $7.5 
     million in PE 63502N to accelerate development of RMOP.
       The Senate recedes. The conferees agree that the mine 
     detection and location capability demonstrated by the RMOP 
     vehicle during a joint amphibious exercise in March-April 
     1995 suggests that it has the potential to fill a gap in the 
     Navy's mine countermeasures operational capabilities. 
     Therefore, the conferees conclude that the RMOP program 
     should be accelerated to provide a contingency capability for 
     fleet use. The conferees encourage the Secretary of the Navy 
     to include additional funds for this purpose in the fiscal 
     year 1997 budget request.
     Non-acoustic antisubmarine warfare program
       The House bill would authorize $23.2 million to reestablish 
     a separate Navy non-acoustic antisubmarine warfare (NAASW) 
     program in PE 63528N that would be on par with the Department 
     of Defense's advanced sensor applications program.
       The Senate amendment contained no funding for a Navy 
     specific research and development program. However, the 
     Senate amendment did provide $10.0 million of additional 
     funding in PE 63714D, the Department of Defense's advanced 
     sensor applications program, to continue development for a 
     NAASW program, ATD-111, that is being executed by the Navy.
       The conferees authorize an increase of $10.0 million in PE 
     63528N for the ATD-111 NAASW program. The funding is 
     authorized to: (1) test system upgrades; (2) correct system 
     defects identified during field tests; (3) bring the test 
     systems to a common configuration; and (4) evaluate carriage 
     on alternate airborne platforms.
       The conferees recommend that the Navy conduct a comparative 
     evaluation of the ATD-111 laser radar (LIDAR) system with 
     other approaches. Comparative testing of competing non-
     acoustic approaches to antisubmarine warfare and other 
     applications should provide a basis for establishing a firm 
     requirement for follow-on systems.
       The conferees also agree that there is a need for two 
     viable, independent, but coordinated and complementary NAASW 
     programs, one in the Navy and one in the Office of the 
     Secretary of Defense. To reestablish the Navy's independent 
     NAASW program, the conferees encourage the Secretary of the 
     Navy to provide funding for it in the fiscal year 1997 budget 
     request. Further guidance with respect to the NAASW program 
     is contained in the classified annex.
     Advanced submarine technology development
       The budget request included $18.4 million in PE 62121N for 
     exploratory development of submarine systems technology and 
     $30.9 million in PE 63561N for advanced submarine systems 
     development.
       The House bill would authorize an increase of $10.0 million 
     in PE 62121N. Of this amount, $7.0 million is to continue the 
     transfer of technology to the Navy for active control of 
     machinery platforms demonstrated in the Advanced Research 
     Projects Agency's (ARPA's) Project M. The House bill would 
     also authorize an additional $13.1 million in PE 63561N. The 
     House report (H. Rept. 104-131) expressed concern over the 
     overall reduction in submarine research and development 
     funding, reflecting in the budget request, and the belief 
     that this level of funding would be inadequate to support the 
     type of long-term research necessary to ensure the 
     availability of advanced technologies that could maintain the 
     superior technological capability of the U.S. submarine 
     force. The House report directed the Secretary of Defense to 
     develop a plan for long-term submarine research and 
     development aimed at ensuring U.S. technological superiority 
     and to report this plan to the congressional defense 
     committees with the submission of the fiscal year 1997 budget 
     request.
       The Senate amendment would approve the budget request.
       The conferees agree to an increase of $10.0 million in PE 
     62121N. This increase would not include any reservations for 
     ARPA's Project M. The conferees would authorize the 
     transition effort associated with Project M in PE 63569E. The 
     conferees also agree to an increase of $20.0 million in PE 
     63561N. The conferees would also adopt a provision, discussed 
     in greater detail in the procurement section of the 
     conference report, that would direct the Secretary of the 
     Defense to develop a plan for long-term submarine research 
     and development aimed at ensuring U.S. technological 
     superiority and to report this plan to the congressional 
     defense committees no later than March 15, 1996.
     Intercooled recuperated gas turbine engine
       The budget request included $25.6 million in PE 63508N, a 
     technology base program element, for continued development of 
     the intercooled recuperated (ICR) gas turbine.
       The House bill expressed concern that the budget request 
     had transferred the ICR gas turbine engine from the Advanced 
     Surface Machinery (ASM) Program (PE 63573N), where it had 
     been previously budgeted, because of the possibility of 
     disruption in the relationship between the ICR program and 
     other elements of the ASM program. In order to restore ASM 
     program integrity, the House bill would direct the transfer 
     of $25.6 million from PE 63508N to PE 63573N. Additionally, 
     the House bill would increase funding for the ICR engine by 
     $21.5 million to support ICR engine tests at the Navy's land-
     based test site and, based on elements of the Navy's revised 
     ICR development plan, direct the Navy to proceed with a 
     second 500 hour engine test and other associated testing at 
     the site.
       The Senate amendment also directed transfer of $25.6 
     million from PE 63508N to PE 63573N, but did not increase 
     funding for the ICR engine.
       The conferees agree to a funding level of $82.9 million in 
     PE 63573N. The conferees direct that, of the total amount 
     authorized for PE 63573N, $41.0 million is authorized for the 
     ICR program.
     Cooperative engagement capability
       The budget request included $180.0 million in PE 63755N for 
     development of the cooperative engagement capability (CEC).
       The House bill would authorize the requested amount, but 
     would direct that no more than $102.0 million be obligated 
     until the Secretary of Defense notifies the congressional 
     defense committees that the test and evaluation master plan 
     for the CEC program has been approved by the Director, 
     Operational Test and Evaluation.
       The Senate amendment would add $22.5 million to continue 
     accelerated development of the airborne component of CEC and 
     an additional $20.0 million to accelerate joint Army-Navy and 
     Air Force-Navy exploitation of CEC for cruise missile defense 
     and theater missile defense.
       The conferees agree to an additional $42.5 million for CEC 
     for the purposes described in Senate amendment. The House 
     recedes from its funding limitation. The conferees note the 
     concerns expressed in the House report (H. Rept. 104-131) 
     regarding developmental testing and independent operational 
     testing required to insure that the CEC is operationally 
     effective and suitable when deployed to the fleet. They 
     direct the Secretary of the Navy to submit to the 
     congressional defense committees, by March 31, 1996, a report 
     on the status of plans for developmental and independent 
     operational testing of the CEC.
     Naval surface fire support
       The Navy's budget request included $12.0 million in PE 
     63795N to develop the gun weapon system technology needed by 
     the Navy to resolve major deficiencies in its ability to 
     provide naval surface fire support (NSFS) to amphibious 
     operations.
       The House report (H. Rept. 104-131) noted that the budget 
     request was sharply reduced during the budget formulation 
     process. It further observed that the future years defense 
     plan for gun system technology had been left under funded by 
     over $160 million and did not include an adequate plan to 
     meet long-term requirements for advanced NSFS weapons 
     systems. To address these concerns the House bill would 
     increase funding in PE 63795N by $25.0 million to:
       (1) accelerate the development of a long range guided 
     projectile that would incorporate advanced low cost global 
     positioning 

[[Page H593]]
     system/inertial navigation system (GPS/INS) guidance;
       (2) improve the existing MK-45 5-inch naval gun; and
       (3) permit the Navy to place increased emphasis on 
     satisfying long-term requirements for advanced gun systems in 
     addition to its near-term focus on modifications to the MK-45 
     gun.
       The Senate amendment would add $19.2 million to PE 63795N. 
     The Senate's evaluation noted in the Senate report (S. Rept. 
     104-112) of the Navy's NSFS program, as reflected in the 
     budget request, yielded conclusions similar to those of the 
     House.
       The conferees note that in May 1995 the Secretary of the 
     Navy, based on a recently completed cost and operational 
     effectiveness analysis (COEA), reported the following 
     conclusions to Congress regarding NSFS:
       (1) a 155 millimeter/60-caliber naval gun, employing 
     precision guided munitions, is the most cost effective NSFS 
     solution; and
       (2) a combination of guns, missiles, and tactical aviation 
     is needed to fully meet NSFS requirements.
       The Secretary also reported that, as a result of the NSFS 
     COEA, the Navy's NSFS program had been structured to:
       (1) proceed with the long-term development of a 155 
     millimeter gun;
       (2) develop a gun-launched precision guided munition; and
       (3) modify the Navy's existing MK-45, 5-inch gun to deal 
     with long-term and near-term challenges.
       However, as reflected in the budget request, affordability 
     constraints and a desire to field an enhanced NSFS capability 
     prior to Fiscal Year 2001 have moved the Navy to embrace a 
     near-term program reflecting the following priorities:
       (1) develop a global positioning system/inertial navigation 
     system 5-inch guided projectile;
       (2) improve the existing MK-45 5-inch gun; and
       (3) demonstrate the NSFS capabilities of Army Tactical 
     Missile System (ATACMS), Sea Standoff Land Attack Missile 
     (SLAM), and STANDARD Missiles.
       To confirm the cost effectiveness of this near-term 
     approach, which was not thoroughly evaluated in the NSFS 
     COEA, the Navy has directed the Center for Naval Analysis to 
     perform supplemental analysis to evaluate its cost 
     effectiveness. The need for this supplemental analysis was 
     reinforced by the General Accounting Office, which strongly 
     recommended in May 1995 that the Navy revalidate its NSFS 
     requirements and conduct a comprehensive supplemental 
     analysis to the COEA that would include all available gun and 
     missile alternatives.
       The conferees agree to authorize $34.0 million, an increase 
     of $22.0 million, in PE 63795N. Over the past several years, 
     the conferees have repeatedly stressed the issue of NSFS, but 
     have found the Navy's response to be highly variable as new 
     programs or approaches have succeeded one another from year 
     to year. Because of a strong need and the Navy's apparent 
     commitment to pursue the program to completion, the conferees 
     are willing to provide initial support, in fiscal year 1996, 
     to the Navy's effort to upgrade the capability of its 5-inch 
     guns and projectiles. The conferees take this action based on 
     the Navy leadership's assurances that the Navy will follow 
     through with consistent, stable, and adequate future years 
     funding.
       The conferees affirm their conclusion that the Navy needs 
     to place increased emphasis on pursuing a long-term program 
     to satisfy NSFS mission requirements. The conferees direct 
     that the Secretary of the Navy include a report on the plans 
     for such a program in the fiscal year 1997 budget submission. 
     The conferees also affirm the need for an updated COEA that 
     considers all available gun and missile alternatives, 
     including extended range multiple launch rockets and existing 
     and improved 5-inch guns, to support future acquisition 
     milestone decisions related to the Navy's near-term and long-
     term programs.
     AH-1W integrated weapons system upgrade
       The budget request included $14.9 million in PE 64212N for 
     engineering and manufacturing development of upgrades to the 
     AH-1W Cobra attack helicopter for the Marine Corps.
       The House bill recommended a reduction of $11.6 million to 
     the budget request, based on the understanding that the 
     Marine Corps had decided to suspend development of the 
     integrated weapon systems (IWS) for the AH-1W.
       The Senate amendment would authorize the budget request.
       The House recedes. The conferees understand that the 
     Department of the Navy has suspended the IWS upgrade, based 
     on identification of other urgent requirements for 
     modification of Marine Corps helicopters. The upgrade program 
     would now focus on the adaptation of both the AH-1W attack 
     helicopter and the UH-1N utility helicopter, and their 
     respective power trains, to a 4-blade rotor system which will 
     increase the operational safety power margin and useful 
     mission payload of both helicopters. The IWS upgrade for the 
     AH-1W will be deferred until later in the program. The 
     conferees further understand, based upon the Department's 
     analysis, that the revised program will provide growth 
     potential to bridge the gap until the joint replacement 
     aircraft would become available around the year 2020, and is 
     reportedly more cost effective than the adoption of other, 
     more modern attack and utility helicopters that have already 
     been fielded or are under development.
       The conferees note that the Department plans a defense 
     acquisition milestone II decision to proceed with engineering 
     and manufacturing development in late fiscal year 1996 and 
     also plans to use the fiscal year 1996 funds made available 
     for the program for pre-milestone IV/II engineering studies. 
     The conferees are aware of a Department of the Navy 
     experience with harmonic coupling problems encountered during 
     a previous major helicopter power train upgrade that 
     contributed to a number of aircraft mishaps. Accordingly, 
     this issue must be addressed in detail during pre-milestone 
     engineering studies and in the milestone II decision process, 
     and the absence of the problem demonstrated prior to 
     milestone III. The Secretary of the Navy is directed to 
     report the results of these engineering studies and the 
     milestone II decision with the submission of the fiscal year 
     1998 budget request.
     AV-8B Harrier weapons system improvements
       The budget request included $11.3 million in PE 64214N for 
     integration and testing of weapons and aircraft improvements 
     for the AV-8B Harrier aircraft.
       The House bill would authorize an increase of $15.6 million 
     to the budget request to support the United States' share of 
     the AV-8B production memorandum of understanding between the 
     United States, Spain, and Italy, and for concurrent 
     integration of the AIM-120 missile and 1760 data bus during 
     remanufacture of the day-only AV-8As to the AV-8B radar 
     configuration.
       The Senate amendment would authorize the budget request.
       The Senate recedes. The conferees agree to authorize the 
     increase of $15.6 million to the budget request with the 
     understanding that the Department of the Navy would include 
     in the fiscal year 1997 budget request the balance of the 
     $11.7 million required by the memorandum of understanding.
     S-3B Project Gray Wolf
       The budget request included $12.9 million in PE 64217N for 
     continued development of weapon system improvements for the 
     S-3 aircraft.
       The House bill would authorize an additional $15.0 million 
     for continued evaluation and potential establishment of an 
     advanced concept technology demonstration of ``Project Gray 
     Wolf'', a fleet proof of concept demonstration of the ability 
     of an S-3B aircraft equipped with a multi-mode synthetic 
     aperture radar designed to provide real time stand-off 
     surveillance, targeting, and strike support for littoral 
     operations.
       The Senate amendment would authorize an additional $13.2 
     million for the same purpose.
       The conferees agree to authorize the requested amount.
       The conferees agree that ``Project Gray Wolf'' demonstrates 
     potential for providing the Department of the Navy with a 
     versatile carrier-based capability to provide real time, 
     stand-off surveillance, targeting, and strike support. The 
     conferees encourage the Secretary of the Navy to consider a 
     reprogramming request to support this program, should any 
     funds become available during fiscal year 1996. The conferees 
     further encourage the Secretary to include funds for the 
     program in his fiscal year 1997 budget request.
     P-3 maritime patrol aircraft sensor integration
       The budget request included $1.9 million in PE 64221N for 
     the P-3 maritime patrol aircraft (MPA) modernization program.
       The House bill would authorize an increase of $15.0 million 
     to the budget request. That increase would include $12.0 
     million to restore the schedule for integration of the 
     improved extended echo ranging (IEER) and the anti-surface 
     warfare improvement program (AIP) capabilities in the P-3, 
     and $3.0 million for upgrade of P-3 stores management, to 
     permit integration of advanced weapons systems. In relation 
     to the fiscal year 1995 budget projections for fiscal year 
     1996, the House report (H. Rept. 104-131) noted that sharp 
     funding reductions in the P-3 modernization program would 
     result in an overall program cost increase and multi-year 
     delays in fielding capability improvements needed to offset 
     decreases in MPA force structure. The House report also 
     expressed the House's expectation that the Navy's future 
     budget requests would include the increased funding necessary 
     to complete the IEER and AIP capabilities integration in the 
     P-3, the P-3 stores management upgrades, and procurement of 
     sufficient quantities of the AIP and update III kits to 
     appropriately outfit the active and reserve MPA force.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Air crew systems development
       The budget request included $9.8 million in PE 64264N for 
     the development of aviation life support systems for air 
     crews.
       The House bill would authorize an increase of $7.9 million 
     to transition the Navy's Day/Night/All Weather Helmet Mounted 
     Display to operational evaluation in F/A-18 and AV-8B 
     aircraft, to upgrade current escape systems, and to develop 
     crashworthy troop seats in the H-1, H-3 and H-46 helicopters.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     AEGIS combat systems engineering
       The budget request included $105.9 million in PE 64307N, 
     including $90.0 million for continued development of 
     improvements in the AEGIS combat system.
       The House bill would authorize $89.9 million, a reduction 
     of $15.8 million from the requested amount. In support of the 
     funding 

[[Page H594]]
     reduction, the House report (H. Rept. 104-131) cited the deferred 
     release of fiscal year 1995 funds, which led to a 
     corresponding, but unnecessary, increase in the Navy's budget 
     request. The House report (H. Rept. 104-131) also expressed 
     concern about the Navy's revised strategy for development of 
     the AEGIS baseline 6.
       The Senate amendment would authorize the requested amount.
       The conferees agree to a reduction of $11.0 million in PE 
     64307N for AEGIS combat systems engineering. The conferees 
     note that the Navy included the $11.0 million in its budget 
     request in anticipation of losing $15.8 million of fiscal 
     year 1995 funds through the omnibus reprogramming process. 
     The use of these fiscal year 1995 funds as a reprogramming 
     source has been specifically denied by Congress. The 
     conferees direct the Office of the Secretary of Defense to 
     return these funds to the Navy without delay to permit 
     orderly execution of the AEGIS program. Further, the navy 
     should review its program for development of the AEGIS 
     baseline 6 with a view to minimizing concurrency.
     Enhanced modular signal processor
       The budget request included $8.3 million in PE 64507N for 
     development and risk mitigation testing of the AN/UYS-2 
     enhanced modular signal processor (EMSP) and software 
     development, integration, testing, and critical engineering 
     design support in the airborne low-frequency sonar (ALFS), 
     surveillance towed array sensor system (SURTASS), AN/SQQ-89 
     surface combat system, and AN/BSY-2 submarine combat system.
       Both the House bill and the Senate amendment would 
     authorize the budget request.
       The conferees understand that the Navy is considering 
     development of a commercial-off-the-shelf (COTS) variant of 
     the EMSP, as discussed in the House report (H. Rept. 104-
     131). The conferees authorize an increase of $6.5 million in 
     PE 64507N for development of this COTS variant. The conferees 
     encourage the Navy to include additional funds that may be 
     required to complete the EMSP COTS development in its fiscal 
     year 1997 budget request.
     Submarine combat system
       The budget request included $42.3 million in PE 64524N for 
     development of the AN/BSY-2 submarine combat system.
       The House bill would reduce the authorization by $6.2 
     million, the amount requested for delivery of the AN/BSY-2 
     system for the SSN-23.
       The Senate amendment would authorize the budget request.
       The House recedes.
     Submarine tactical warfare system
       The budget request included $38.5 million in PE 64562N for 
     continued development of improvements in SSN combat control 
     systems.
       The House bill recommended a reduction of $18.0 million to 
     the budget request.
       The Senate amendment would authorize the requested amount.
       The House recedes.
     Advanced tactical air command central
       The budget request included $8.4 million in PE 604719M to 
     continue development of the advanced tactical air command 
     central (ATACC) for the Marine Corps.
       The House bill would reduce the PE by $5.0 million and 
     direct that the details of the operational requirement and a 
     revised program plan be provided with the fiscal year 1997 
     budget request. The house report (H. Rept. 104-131) expressed 
     concerns regarding the marked growth in program costs for 
     fiscal year 1996 and succeeding years, changes in the 
     acquisition strategy, and significant revisions in the 
     program schedule. These concerns raise questions regarding 
     how well the operational requirement is defined and whether 
     the system should continue in engineering and manufacturing 
     systems development, or whether a demonstration/validation 
     program would be more appropriate.
       The Senate amendment would authorize the requested amount.
       The House recedes.
       The conferees agree that the concerns expressed by the 
     House should be addressed following submission of the fiscal 
     year 1997 defense budget request.
     Ship self-defense system


                                summary

       The budget request included $166.0 million in PE 64755N for 
     the ship self-defense program.
       The House bill would approve the budget request. The House 
     report (H. Rept. 104-131) expressed concern that the Navy had 
     failed to include funding in its budget request to continue 
     development of either the infrared search and track (IRST) 
     system or NULKA, an electronic warfare countermeasures 
     system, despite the apparently high priority that the Navy 
     has placed on these systems in the past. The House report 
     argued that such funding lapses point to the absence of 
     clearly defined program baselines in the ship self-defense 
     programs.
       The Senate amendment would authorize $184.5 million in PE 
     64755N, an increase of $18.5 million. It would authorize an 
     additional $9.5 million for IRST and $9.0 million for NULKA. 
     The Senate report (S. Rept. 104-112) also discussed 
     evaluation of existing self-defense systems, such as the 
     BARAK 1 missile system, for installation on active and new 
     construction Navy ships.
       The conferees agree to authorize $183.5 million for the 
     ship self-defense program in PE 64755N. Funding increases and 
     areas of emphasis are discussed in the following paragraphs. 
     The conferees also agree that the year-to-year volatility of 
     the Navy's budget requests for ship self-defense programs 
     appear to contradict the Navy's oft stated emphasis on 
     littoral warfare. Therefore, the conferees direct the 
     Secretary of the Navy to provide to the congressional defense 
     committees, as a part of the annual update of the ``Ship 
     Anti-Air Warfare (AAW) Report'', an assessment of progress in 
     establishing program baselines for the ship self-defense 
     program and the degree to which these baselines are being 
     met.


                                  irst

       The budget requested reduced funding for and restructured 
     the infrared search and track (IRST) program for 
     affordability reasons. The conferees believe that the IRST 
     system has the potential to play a very important role in 
     defending naval ships against sea skimming antiship missiles. 
     A recently completed cost and operational effectiveness 
     analysis (COEA) supports this conclusion. The conferees agree 
     that the Navy should emphasize early integration of the IRST 
     system with both Aegis and non-Aegis ships, and place 
     priority on early completion of its development. Therefore, 
     the conferees authorize an increase of $9.5 million in PE 
     64755N to accelerate plans for combat system integration and 
     design of the IRST system.


                                 nulka

       NULKA is a joint United States/Australian project to 
     develop an anti-ship missile decoy system. Increased funding 
     in fiscal year 1996 would allow the Navy to integrate NULKA 
     with the ship self-defense system (SSDS), for installation on 
     amphibious ships and other self-defense ships, to conduct 
     testing of the integrated system, and to commence development 
     of improvements to the payload needed to counter improvements 
     in anti-ship missile technology. The conferees strongly 
     support these objectives and authorize an increase of $8.0 
     million in PE 64755N.


                                barak 1

       The Senate report expressed concern about the need to 
     protect Navy ships from the proliferation of maneuvering, 
     sea-skimming, low observable, anti-ship cruise missiles. It 
     also recognizes the fact that the Navy's evaluation of 
     existing systems, such as the BARAK 1 missile, as candidates 
     for the LPD-17 class's self-defense suite, could produce the 
     most cost-effective solution to this threat. Development 
     costs could be avoided through such an approach.
       While addressing ship self-defense in some detail, the 
     House report did not discuss this aspect of the requirement.
       The conferees agree that the incorporation of weapons 
     systems that are already in production, such as BARAK 1, into 
     the combat systems of active or new construction ships could 
     be a cost effective means to deal with a rapidly 
     proliferating and evolving cruise missile threat. The 
     conferees desire to be kept informed on the progress and 
     results of the LPD-17 cost and operational effectiveness 
     analysis (COEA). Furthermore, the conferees direct the Navy 
     to present, by February 1996, a plan that could lead to 
     testing of the BARAK 1 system in the United States during 
     fiscal year 1996, should the LPD-17 COEA demonstrate that 
     self-defense systems such as BARAK 1 would be cost effective.
       Because of the advantage to the fleet of an early 
     deployment of a robust ship self-defense system, the 
     committee directs the Navy to also examine and report on 
     BARAK 1 applicability to other ship classes. The results of 
     this analysis should be provided to the congressional defense 
     committees by February 1996.
     Fixed distributed system--deployable
       The budget request included $93.5 million in PE 64784N for 
     the fixed distribution surveillance system (FDS), but 
     included no funding for the deployable (FDS-D) prototype.
       The House bill would add $10.0 million to the budget 
     request to refurbish the FDS-D prototype and improve its 
     capability to provide an interim deployable undersea 
     surveillance, until the Advanced Deployable System becomes 
     available.
       The Senate amendment would authorize the budget request.
       The conferees authorize $103.5 million in PE 64784N, of 
     which $10.0 million would be used to refurbish the FDS-D 
     prototype and improve its surveillance capability. Further 
     guidance is contained in the classified annex.
     SSBN security and survivability program
       The budget request included $25.1 million in PE 12224N for 
     the SSBN security and survivability program.
       The House bill would provide an increase of $9.5 million to 
     the budget request. The House bill would also direct the 
     Secretary of the Navy to provide to the congressional defense 
     committees, within 60 days of enactment, an assessment of the 
     potential threat to the U.S. SSBN force an analysis of the 
     SSBN security program needed to counter that threat.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an additional $5.5 million 
     in PE 12224N for the SSBN security and survivability program. 
     The conferees agree with the House direction to the Secretary 
     of Defense regarding the SSBN security program, contained in 
     the House report (H. Rept. 104-131). Further guidance 
     regarding the program is provided in the classified annex.
     
[[Page H595]]

     Cryptologic system trainer
       The budget request included $7.0 million in PE 24571N to 
     continue development and evaluation of the Navy's surface 
     tactical team trainer.
       The House bill would authorize an additional $3.0 million 
     for:
       (1) integration and evaluation of the cryptologic systems 
     trainer in the battle force tactical training system; and
       (2) the development of related information warfare/command 
     and control warfare shipboard training systems.
       The Senate amendment would authorize the budget request.
       The conferees authorize $10.0 million in PE 24571N. Of this 
     amount, $3.0 million is for the purposes discussed in the 
     House report (H. Rept. 104-131).
     Optoelectronics
       The budget request did not include funding for 
     optoelectronics manufacturing.
       The House bill would provide $10.0 million to initiate 
     partnerships with industry, government laboratories and other 
     research organizations to allow the development of 
     manufacturing technologies that would support optoelectronics 
     devices and components.
       The Senate amendment contained no similar provision.
       The conferees agree to authorize an additional $10.0 
     million for this program in PE 78011N. The conferees also 
     agree to authorize an additional $2.0 million for advanced 
     bulk manufacturing of mercury cadmium telluride (MCT) for low 
     cost sensors, also in PE 78011N.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $12,598.4 million for Air Force, Research 
     and Development in the Department of Defense. The House bill 
     would authorize $13,184.1 million. The Senate amendment would 
     authorize $13,087.4 million. The conferees recommended an 
     authorization of $12,914.9 million. Unless noted explicitly 
     in the statement of managers, all changes are made without 
     prejudice.

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[[Page H602]]

     Defense research sciences
       The budget request included $239.893 million for defense 
     research sciences in PE 61102F.
       The House bill would authorize an additional $5.0 million 
     for adaptive optics research.
       The Senate amendment would reduce the budget request by 
     $9.0 million and authorize $5.0 million for adaptive optics 
     research.
       The conferees agree, that of the $249.5 million authorized 
     in this program element, $5.0 million shall be authorized for 
     adaptive optics research.
     Robotics corrosion inspection system
       The House bill would authorize $8.0 million in PE 62102F to 
     conduct a competitive program to demonstrate the feasibility 
     of non-contact robotic corrosion inspection for detection of 
     hidden corrosion and metal fatigue.
       The Senate amendment did not include such authorization.
       The conferees strongly encourage the Air Force to consider 
     environmentally benign technologies that demonstrate the 
     potential to provide a 25 percent savings in cargo and 
     fighter aircraft inspection and repair costs through the use 
     of non-contact robotic corrosion inspection.
     Firefighting clothing
       The conferees encourage the Department of Defense to 
     continue to make greater use of commercial off-the-shelf 
     technologies that meet military requirements without 
     extensive development programs. The conferees are aware of 
     recent commercial developments in thermal absorbing materials 
     that would have the potential to significantly increase 
     personnel protection for fighting aircraft, ship-board, and 
     chemical fires. Accordingly, the conferees authorize an 
     additional $1.25 million in PE 62201F for the development of 
     a firefighting suit that would incorporate these 
     technologies.
     Aerospace propulsion
       The budget request included $3.7 million in PE 62203F for 
     the high thermal stability and the endothermic hydrocarbon 
     fuels project 3048.
       The House bill and Senate amendment would authorize an 
     additional $3.0 million for the acceleration of this project.
       The conferees agree that of the $75.0 million authorized 
     for this program element that $6.7 million be authorized for 
     project 3048.
     High frequency active auroral research program (HAARP)
       The conferees agree to a $5.0 million increase in PE 62601F 
     for the high frequency active auroral research program 
     (HAARP).
     Rocket propulsion technology
       The House bill would authorize an additional $13.0 million 
     for rocket propulsion technology programs in PE 62601F, PE 
     63302F, and PE 62111N.
       The Senate amendment contained no similar provision.
       The conferees agree to provide an additional $13.0 million, 
     as specified in the House report (H. Rept. 104-131).
     Computer security
       The budget request included $98.5 million for Command, 
     Control, and Communications in PE 62702F.
       The House bill would authorize an additional $3.0 million 
     to evaluate voice recognition computer security systems.
       The Senate amendment contained no similar authorization.
       The conferees direct that, of the $96.5 million authorized, 
     $3.0 million be authorized for evaluation of voice 
     recognition computer security systems, as specified in the 
     House report (H. Rept. 104-131).
     Aircraft ejection seats
       The budget request included $19.0 million in PE 63231F for 
     crew systems and personnel protection technology.
       The House bill would authorize an additional $3.0 million 
     to test existing Navy, Marine Corps, and Air Force front-line 
     trainer and tactical aircraft ejection seats. Ejection seat 
     tests would be conducted to verify predicted performance and 
     to identify existing problems and the required corrective 
     action.
       The Senate amendment had no similar provision.
       The conferees agree to authorize an additional $3.0 million 
     in PE 63231F for the purposes specified in the House report 
     (H. Rept. 104-131).
     Micro-satellite development program
       The budget request included $32.6 million in PE 63401F for 
     Advanced Spacecraft Technology.
       The Senate amendment would authorize an additional $20.0 
     million for a micro-satellite development program.
       The House bill would authorize the budget request.
       The House recedes.
       The Air Force Phillips Laboratory, in conjunction with the 
     Air Force Space Command's Space Warfare Center, has initiated 
     a small satellite program to develop and demonstrate a 
     variety of miniaturized space technologies. The micro-
     satellite program builds upon the highly successful 
     Clementine satellite program. The conferees strongly support 
     this effort and direct that it be placed under the control of 
     the Space Warfare Center and be executed by the Clementine 
     Team (Phillips Laboratory, Naval Research Laboratory, and 
     Lawrence Livermore National Laboratory).
     Intercontinental ballistic missile (ICBM) research and 
         development and associated issues


                     icbm demonstration/validation

       The budget request included $20.3 million in PE 63851F for 
     six Minuteman-related projects.
       The House bill would authorize an additional $14.5 million 
     to complete acquisition and requirement documentation efforts 
     and to conduct missile guidance technology experiments. The 
     House report (H. Rept. 104-131) expressed concern that the 
     budget request failed to include pre-milestone 0 and phase 0 
     funding for the command signal decoder, the modified 
     miniature receive terminal for launch control centers, the 
     safety enhanced reentry vehicle, and inertial measurement 
     modifications.
       The Senate amendment would authorize an additional $4.3 
     million to bolster the Air Force reentry vehicle applications 
     project. The Senate report (S. Rept. 104-112) expressed 
     concern that the reentry vehicle nose tip requirements were 
     not adequately funded.
       The conferees agree to authorize the budget request. The 
     conferees also reiterate the concerns expressed in the House 
     and Senate reports. The conferees understand that the Air 
     Force is considering options to address these concerns from 
     within their existing fiscal year 1996 budget, in particular 
     the documentation issues identified in the House report. The 
     conferees strongly urge the Air Force to fulfill these 
     requirements.


             icbm engineering and manufacturing development

       The budget request contained $192.7 million in PE 64851F to 
     fund the Minuteman guidance and propulsion replacement 
     programs.
       The House bill would authorize an additional $8.0 million 
     to fund the initial integration design and testing of the 
     capability to integrate the Mk21 warhead on the new Minuteman 
     guidance set. The House report (H. Rept. 104-131) endorsed 
     using the Mk21, the safest warhead in the inventory, on the 
     Minuteman, if and when it becomes available as a result of 
     arms control treaties. The House report expressed concern 
     that the current guidance replacement program fails to fund 
     the design and testing necessary to ensure the Mk21 
     capability prior to initiation of the guidance set 
     production.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request. The 
     conferees, however, reiterate the concerns expressed in the 
     House report (H. Rept. 104-131), and support the 
     recommendations made therein. The conferees are concerned 
     that the Department of Defense and the Air Force have failed 
     to take the necessary action to ensure that the safest 
     nuclear warheads are compatible with the new Minuteman 
     guidance sets. Therefore, the conferees direct that, of the 
     funds authorized for fiscal year 1996 in PE 64851F, up to 
     $4.0 million shall be available to initiate efforts to ensure 
     that the new Minuteman guidance sets are capable of 
     accommodating the Mk21 warhead. The conferees further direct 
     the Secretary of Defense to ensure that the funds necessary 
     to continue this effort are included in the fiscal year 1997 
     budget request.


                       reentry vehicle materials

       The Senate amendment would authorize $750,000 above the 
     budget request in PE 62102F for the Thermal Protection 
     Materials Reentry Vehicle project to purchase, test, and 
     evaluate three nose tip billets and related technologies.
       The House bill would not authorize additional funds for 
     reentry vehicle materials.
       The Senate recedes. Nevertheless, the conferees reiterate 
     the concerns expressed in the Senate report (S. Rept. 104-
     112) regarding the adequacy of the reentry vehicle 
     applications program, and, in particular, the reentry vehicle 
     materials program. Therefore, the conferees direct that, of 
     the funds available in PE 62102F, up to $750,000 shall be 
     available for the Thermal Protection Materials Reentry 
     Vehicle project to purchase, test, and evaluate three ICBM 
     reentry vehicle nose tip billets and related thermal 
     technologies.


                      ballistic missile technology

       The budget request contained $3.1 million in PE 63311F to 
     conduct guidance and range safety technology experiments.
       The House bill would authorize an additional $5.7 million 
     for Minuteman class range tracking and safety equipment based 
     on Global Positioning System (GPS) equipment developments.
       The Senate amendment would authorize an additional $5.0 
     million for suborbital flight testing conducted at White 
     Sands Missile Range for ballistic missile guidance, range 
     tracking, and safety equipment, based on existing GPS 
     equipment.
       The conferees agree to authorize $5.7 million above the 
     budget request to enhance ballistic missile technology 
     experiments and to proceed with a follow-on to the successful 
     Missile Technology Demonstration Flight 1 (MTD-1). The 
     conferees commend the participants in this joint effort and 
     encourage the Air Force, the Ballistic Missile Defense 
     Organization, the Defense Nuclear Agency, and the Phillips 
     Laboratory to continue to pursue such joint efforts. Prior to 
     completing plans for a MTD follow-on, the conferees direct 
     the Air Force to consult with the Senate Committee on Armed 
     Services and the House Committee on National Security on 

[[Page H603]]
     the issues and options associated with the following: (1) the 
     technologies to be tested; (2) the type of booster 
     configuration to be employed; and (3) the test range to be 
     used.


                    peacekeeper contingency planning

       The conferees direct the Secretary of the Air Force to 
     submit a report to the congressional defense committees, by 
     March 1, 1996, that outlines the Air Force's current plans 
     for retiring Peacekeeper, and maintaining the system in the 
     interim. The report should also address the additional 
     actions and funding that would be required to maintain the 
     option of retaining up to 50 Peacekeeper ICBMs in an 
     operational status beyond 2003. The report should include a 
     timetable that outlines when such actions and funding would 
     be needed.
     Weapon impact assessment system
       The conferees are aware of innovative technologies that may 
     significantly resolve the battlefield damage assessment 
     problems related to tactical aviation. The conferees support 
     the priorities established in the fiscal year 1996 Department 
     of Defense Small Business Innovative Research Program 
     solicitation (96.1) to expeditiously pursue weapon impact 
     assessment technology. Accordingly, the conferees authorize 
     $950,000, distributed equally between PE 64618N and PE 
     64618F, for a joint Navy-Air Force flight demonstration of a 
     weapon impact assessment system that uses a video sensor-
     transmitter with precision guided munitions.
     Stand-off land attack missiles
       The budget request contained $40.5 million in PE 64603N for 
     continued development of the stand-off land attack missile-
     enhanced response (SLAM-ER) as an interim replacement for the 
     canceled tri-service stand-off attack missile (TSSAM) for the 
     Navy.
       The House bill would authorize the budget request for SLAM-
     ER. However, the House report (H. Rept. 104-131) would 
     prohibit the Navy from obligating more than $10.0 million for 
     the program without specific approval by the congressional 
     defense committees.
       The House bill would also provide an additional $37.5 
     million in PE 64312N for the Navy and an additional $37.5 
     million in PE 27160F for the Air Force to establish a joint 
     program for accelerated development and evaluation of 
     candidate joint air-to-surface stand-off missile (JASSM) 
     systems as a near-term replacement for TSSAM. The House 
     report would direct the Secretary of Defense to establish 
     immediately such a program and would further direct the 
     Secretary to report to the congressional defense committees 
     within 60 days of the enactment of the Act on:
       (1) the Department's plan to address near-term Navy and Air 
     Force requirements for an interim TSSAM replacement;
       (2) the Department's plans to satisfy these near-term 
     requirements; and
       (3) the long-term plan for development of a TSSAM 
     replacement that will satisfy the requirements of both 
     services.
       The Senate amendment would authorize the budget request in 
     PE 64603N for continued development of SLAM-ER, and would 
     provide an additional $50.0 million for the Air Force in PE 
     27160F to initiate a JASSM program, with the expectation that 
     the Department of Defense would establish a joint program to 
     meet Air Force and Navy needs for a replacement for TSSAM.
       The House recedes with an amendment. The conferees agree 
     to:
       (1) authorize the SLAM-ER budget request;
       (2) provide $25.0 million for JASSM in the Air Force 
     budget; and
       (3) require the Department to report on plans for meeting 
     near-term and long-term Air Force and Navy requirements for 
     stand-off weapons systems.


             joint air-to-surface stand-off missile (jassm)

       In testimony before the Congress this year, the Air Force 
     and the Navy continued to support the requirement for a 
     survivable, precision strike stand-off weapon. The DOD 
     decision to cancel the TSSAM program exacerbated an already 
     significant shortfall in this capability. The conferees 
     stress the urgent need for the operational capability that 
     would be provided by the TSSAM, and expect the Secretary of 
     Defense to establish a joint program in the Air Force and the 
     Navy for development of a TSSAM replacement, as recommended 
     in both the House report (H. Rept. 104-131) and the Senate 
     report (S. Rept. 104-112).
       The conferees are concerned about the approach the services 
     may pursue to fulfill the JASSM requirement. The conferees 
     note that there are a number of competing alternatives upon 
     which the JASSM could be based. The conferees believe that 
     JASSM could evolve from a existing, or planned interim 
     weapons system. The conferees believe that, if the Department 
     decides that a new weapon development is appropriate, the new 
     development program should be based on technologies that have 
     already been developed in the TSSAM program, or in other 
     existing or planned stand-off weapons systems, including 
     technologies relating to low and very low observability/
     stealth.
       The conferees note that there are a number of competing 
     alternatives upon which the JASSM could be based, and want to 
     ensure that due consideration is given to all competing 
     approaches. Therefore, the conferees direct the Department to 
     consider the following in conducting the JASSM program: (1) 
     the results of the TSSAM development program, and the 
     potential for using technology and components derived from 
     that program; and (2) the results of programs for development 
     of other stand-off weapons systems, and the potential for 
     using technologies derived from those programs. The conferees 
     direct the Secretary of Defense to include, in his report on 
     precision guided munitions, information on the extent to 
     which the Department may avail itself of TSSAM-derivative 
     components and technology, as well as, components and 
     technologies derived from other stand-off weapons programs, 
     in meeting the JASSM requirement.


                            required report

       The conferees direct the Secretary of Defense to include in 
     the report on the analysis required by the provision on 
     precision guided munitions, the Department's plan for meeting 
     near-term Navy and Air Force requirements for an interim 
     TSSAM replacement and the long-term plan for development of a 
     TSSAM replacement that will meet the requirements of both 
     services. The conferees expect that the Department would 
     establish the following for JASSM weapons system at the next 
     milestone: design-to-unit cost goals; minimum performance 
     parameters; and interface requirements between JASSM and 
     launch platforms.
     Mobile missile launch detection and tracking
       The conferees are aware of a proposal to use specialized 
     processing techniques on synthetic aperture radar data to 
     detect medium-rage ballistic missiles shortly after launch. 
     The conferees urge the Air Force to consider this promising 
     concept and agree to authorize the use of up to $1.0 million 
     in funds made available in PE 28060F to demonstrate the 
     feasibility of this concept.
     Rivet joint technology transfer program
       The Senate amendment recommended a $28.0 million increase 
     to the theater missile defense program element (PE 28060F) to 
     initiate the migration of the Cobra Ball medium wave infrared 
     acquisition technology for the Rivet Joint RC-135 tactical 
     reconnaissance fleet.
       The House bill did not contain a similar recommendation.
       The Senate recedes.
       The conferees encourage the Air Force to move forward with 
     this near term, cost effective program. With the transfer of 
     this mature technology, the Rivet Joint fleet would offer 
     early deployment and provide a significant improvement to the 
     Department of Defense's capabilities in long range 
     surveillance, warning, rapid cueing for attack operations, 
     and impact point prediction. To achieve this goal, the 
     conferees would consider a reprogramming in fiscal year 1996. 
     The conferees understand that funds for the completion of 
     this technology migration are included in the Air Force 
     future year defense plans for this program.
     Information systems security
       The budget request included $11.3 million in PE 33140F for 
     the Air Force's Information Systems Security program.
       The Senate amendment would authorize an additional $1.5 
     million to complete research and development of the Trusted 
     RUBIX multi-level security database management system.
       The House bill would authorize the budget request.
       The House recedes.
     Computer-assisted technology transfer
       The conferees agree to authorize $7.2 million in PE 78011F 
     to continue the computer-assisted technology transfer 
     program.
     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $8,802.9 million for Defense-Wide, Research 
     and Development in the Department of Defense. The House bill 
     would authorize $9,287.1 million. The Senate amendment would 
     authorize $9,271.2 million. The conferees recommended an 
     authorization of $9,419.5 million. Unless noted explicity in 
     the statement of managers, all changes are made without 
     prejudice.

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     University research initiative
       The budget request included $236.2 million in PE 61103D.
       The House bill would authorize an additional $20.0 million 
     above the requested amount for the continuation of the 
     Defense Experimental Program to Stimulate Competitive 
     Research (DEPSCoR).
       The Senate amendment would apply a general reduction of 
     $15.0 million to the requested amount and would add $10.0 
     million for the acceleration of research activities at 
     universities affecting combat readiness. The Senate amendment 
     would also authorize $10.0 million within the authorized 
     amount for the continuation of the DODDS Director's fund for 
     Science, Mathematics, and Engineering.
       The conferees agree to an authorization of $231.2 million 
     in PE 61103D, of which $20.0 million shall be for the 
     continuation of the DEPSCoR program and $10.0 million for the 
     continuation of the DODDS Director's fund for Science, 
     Mathematics and Engineering. The conferees also agree to 
     authorize an additional $10.0 million for the Combat 
     Readiness Research program described on page 169 of the 
     Senate report (104-112) and direct that an institution 
     awarded a contract, grant or agreement under the program be 
     required to contribute at least three times the amount 
     provided by the Federal government to execute the program.
     Chemical-biological defense program
       The budget request contained $383.5 million for the 
     Department of Defense chemical-biological defense program, 
     including $243.0 million for research, development, test and 
     evaluation and $140.5 million for procurement of chemical and 
     biological defense non-medical and medical systems.
       The House bill would authorize a $57.1 million increase to 
     the budget request for the following chemical-biological 
     defense research and development programs: $4.6 million for 
     PE 61384BP; $23.5 million for PE 62384BP; $12.6 million for 
     PE 63384BP; $4.4 million for PE 63884BP; and $12.0 million 
     for PE 64384BP. The House bill would also authorize a total 
     of an additional $50.0 million in operations and maintenance 
     funding for chemical defense training and chemical medical 
     defense training in the Army, Navy, Marine Corps, and Air 
     Force.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase to the budget 
     request in the following program elements: $4.6 million for 
     PE 61384BP; $7.8 million for PE 62384BP; $10.0 million for PE 
     63384BP; and $1.6 million for PE 63884BP. The increased 
     authorizations would augment and accelerate research and 
     development in medical and non-medical chemical and 
     biological defense. Prior to obligation or expenditure of 
     funds authorized above the budget request, the conferees 
     direct the Department to report on the projected use of these 
     funds.
       The conferees also agree to a $50.0 million increase in the 
     military services operations and maintenance accounts for 
     chemical defense training and chemical medical defense 
     training. The conferees direct the Department to provide a 
     report to Congress on the use of this increased funding in 
     the Department's chemical defense training and chemical 
     medical defense training. Additionally, the Department is 
     directed to notify Congress 15 days in advance of obligation 
     or expenditure of funds, and to provide a justification for 
     the use of such funds in connection with the procurement of 
     chemical-biological defense equipment.
     Computing systems and communications technology
       The budget request included $403.9 million for computing 
     systems and communications technology in PE 62301E.
       The House bill would reduce the budget request by $25.0 
     million. The House bill would authorize an additional $11.0 
     million for accelerated development of improved nuclear 
     detection and forensic analysis capabilities.
       The Senate amendment would authorize an additional $3.0 
     million for software reuse activities and $30.0 million in 
     procurement for the global broadcast service.
       The conferees agree to authorize $396.3 million in PE 
     62301E, to include: $11.0 million for nuclear monitoring and 
     detection; $8.0 million for global broadcast service; $7.5 
     million for software reuse; and a general reduction of $29.6 
     million.
     Global broadcast service
       The budget request contained no funds for global broadcast 
     service (GBS).
       The Senate amendment would authorize $30.0 million in 
     weapons procurement, Navy, for a GBS pilot program. The 
     Senate report (S. Rept. 104-112) endorsed insertion of this 
     technology into the military communications master plan and 
     the Navy's proposal to use the ultra-high frequency follow-on 
     (UFO) satellite system as a host for an interim GBS 
     capability.
       Neither the House bill nor the House report (H. Rept. 104-
     131) addressed the subject.
       The Senate recedes on the $30.0 million authorization in 
     weapons procurement, Navy. The conferees, however, agree to 
     authorize $8.0 million for fiscal year 1996 in PE 62301E to 
     support this effort.
       The conferees endorse the Senate language regarding the 
     insertion of DBS/GBS technology into the communications 
     master plan. The conferees, however, do not believe that the 
     Department of Defense (DOD) has adequately evaluated all 
     alternatives and associated issues. The conferees support 
     proceeding swiftly with this program, but require additional 
     information before endorsing any particular technical 
     approach or acquisition strategy.
       The conferees are aware of the time-sensitivity surrounding 
     the Navy's proposal to use UFO satellites 8, 9, and 10 as 
     host platforms, and that a protracted period of study and 
     review may preclude this option (insofar as it is dependent 
     on use of satellite 8, which is currently scheduled to be 
     launched no later than December 1997). The conferees are also 
     aware that the Deputy Under Secretary of Defense for Space 
     has tentatively endorsed the UFO approach as an interim 
     bridge to an objective GBS system.
       Nonetheless, the conferees remain concerned that no 
     detailed analysis of options and requirements has been 
     presented to Congress. Not wanting to prematurely endorse any 
     particular GBS option nor preclude any promising alternative, 
     the conferees direct the Under Secretary of Defense for 
     Acquisition and Technology to submit a report to the 
     congressional defense committees that addresses the following 
     issues regarding the development and deployment of interim 
     and objective GBS capabilities: (1) the military requirement 
     to be satisfied; (2) the cost, schedule, technical risk, and 
     operational effectiveness of all hosted and free-flyer 
     options; (3) the issues involved with the use of competitive 
     procedures or other than competitive procedures; and (4) the 
     role of GBS capabilities in the DOD's future military 
     satellite communications architecture and the Department's 
     strategy for acquiring and integrating such capabilities.
       The conferees encourage early involvement by the 
     Commanders-in-Chief (CINCs) to ensure that GBS capabilities 
     support a broad range of joint missions in the CINCs' areas 
     of responsibility. The conferees also believe that the Under 
     Secretary for Acquisition and Technology should conduct a 
     broad survey of the capabilities and views of industry prior 
     to selecting a particular technical approach or acquisition 
     strategy.
       Once the congressional defense committees have received the 
     report described above, the conferees would consider a 
     reprogramming request to satisfy any outstanding fiscal year 
     1996 funding requirements. The conferees' approval of such a 
     request would depend largely on the content of the report 
     submitted, the offsets identified, and the degree to which 
     the chosen GBS acquisition strategy is funded in the 
     Secretary of Defense's fiscal year 1997 budget request and 
     Future Years Defense Program.
     Materials and electronics technology
       The budget request included $226.1 million for material and 
     electronics technology.
       The House bill would authorize an additional $3.0 million 
     for chemical vapor deposition (CVD) and $2.0 million for 
     chemical vapor composite (CVC) deposition. The bill would 
     also provide an additional $5.0 million for higher transition 
     temperature superconducting (HTS) materials, $7.5 million for 
     seamless high off-chip connectivity (SHOCC) and $10.0 million 
     for non-woven aramide fiber packaging.
       The Senate amendment would authorize an additional $8.0 
     million for CVD and $8.0 million for HTS.
       The conferees agree to authorize $242.0 million in PE 
     62712E, an increase of $16.0 million. This increase provides 
     $4.0 million each for CVC deposition and CVD diamond material 
     development and $8.0 million for HTS. The HTS authorization 
     shall include HTS wire applications and precision band pass 
     filters and high ``Q'' antennae for military communication 
     systems that operate in signal rich environments.
     Counterterror technical support
       The budget request included $12.0 million for the 
     counterterror technical support program.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $2.0 
     million to the budget request for the continued development 
     of pulsed fast neutron analysis (PFNA) cargo inspection 
     technology.
       The House recedes.
     Joint Department of Defense/Department of Energy munitions 
         technology development
       The budget request included $16.8 million for the joint 
     Department of Defense and Department of Energy munitions 
     program.
       The House bill would authorize $31.8 million for the 
     program, a $15.0 million increase to the budget request for 
     environmentally compliant demilitarization and disposal of 
     unserviceable, obsolete, or non-treaty compliant munitions, 
     rocket motors, and explosives.
       The Senate amendment would authorize the budget request.
       The conferees agree to a $5.0 million increase to the 
     budget request for joint DOD/DOE munitions technology 
     development (PE 63225D). In addition, the conferees agree to 
     provide $15.0 million for explosives demilitarization 
     technology (PE 63104D), discussed elsewhere in the report.
     Experimental evaluation of major innovative technologies 
         (EEMIT)
       The budget request included $618.0 million for Experimental 
     Evaluation of Major Innovative Technologies (EEMIT).
       The House bill would authorize an additional $55.8 million 
     for several programs, to include: global grid communications 
     ($5.0 million); safety and survivability ($2.0 million); 
     synthetic theater of war ($6.8 million); cruise missile 
     defense ($35.0 million); and antisubmarine warfare (ASW) 
     ($7.0 million).
       The Senate amendment would authorize an increase of $18.0 
     million for several programs, to include: cruise missile

[[Page H609]]
      defense ($10.0 million); thermophotovoltaics ($5.0 million); and 
     funding for a large millimeter wave telescope ($3.0 million). 
     The Senate would also authorize a general reduction of $10.0 
     million to the EEMIT program element.
       The conferees agree to authorize $613.7 million in PE 
     63226E, the highest level of appropriation, and specifically 
     identify the following programs for authorization: cruise 
     missile defense ($10.0 million); large millimeter wave 
     telescope ($3.0 million); safety and survivability ($2.0 
     million); ASW ($5.0 million); deep ocean relocation ($2.5 
     million); and Crown Royal ($5.0 million).
     Safety and survivability
       The House bill would authorize an additional $2.0 million 
     in PE 65864N and an additional $2.0 million in PE 63226E for 
     safety and survivability enhancements.
       The Senate amendment contained no additional authorization 
     for these purposes.
       The conferees direct that of the funds authorized in PE 
     64864N and PE 63226E, $2.0 million each shall be used for 
     safety and survivability enhancements, as specified in the 
     House report (H. Rept. 104-131).
     Shallow water anti-submarine warfare
       The budget request included $16.5 million in PE 63226E for 
     development and demonstration of advanced technologies for 
     shallow water anti-submarine warfare operations.
       The House bill would authorize an additional $7.0 million 
     to begin an assessment by ARPA and the Navy of the use of 
     newly developed and maturing multi-static acoustic, 
     electromagnetic and electro-optic sensor technologies 
     integrated into existing aircraft, ship, and submarine 
     platforms in a combined system of sensors to provide the 
     joint amphibious operational commander an integrated picture 
     of the littoral maritime environment.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment. The conferees agree 
     to authorize an additional $5.0 million to the budget request 
     to continue the development and demonstration of advanced 
     technologies for shallow water anti-submarine warfare.
     Synthetic theater of war
       The budget request included $79.1 million in PE 63226E for 
     the Advanced Distributed Simulation program.
       The House bill would authorize an additional $6.8 million 
     to maintain the program and schedule for the 1997 Synthetic 
     Theater of War (STOW-97) advanced concept technology 
     demonstration.
       The Senate amendment would authorize the budget request.
       The House recedes. The conferees are impressed by the 
     results of the STOW-95 demonstration and the potential to 
     meet the warfighting commanders' requirements for development 
     and integration of improved simulation technologies for 
     training and mission rehearsal. The conferees recognize that 
     the STOW program could prove to be the foundation for the 
     future Joint Simulations System for all the military 
     services. The conferees strongly encourage the Secretary of 
     Defense to maintain funding levels necessary to sustain the 
     objectives and schedule of the STOW-97 advanced concept 
     technology demonstration.
     Tactical technology
       The budget request included $113.2 million for this 
     tactical technology program.
       The House bill would authorize an additional $7.0 million 
     for the tactical landing system project and an additional 
     $7.0 million for a high resolution, mobile multiple object 
     tracking system project.
       The Senate amendment would authorize an additional $6.5 
     million for the tactical landing system project.
       The conferees agree to authorize an additional $6.5 million 
     in PE 63226E for completion of the tactical landing system 
     project and an additional $7.0 million in PE 63226E for a 
     high resolution, mobile multiple object tracking system.
     Advanced submarine technology development
       The budget request included $7.5 million in PE 63569E for 
     the Advanced Research Projects Agency's (ARPA's) advanced 
     submarine technology program.
       The House bill would authorize an additional $23.0 million 
     in PE 63569E. This increase would permit ARPA to pursue 
     innovative technologies that could improve the capability of 
     Navy submarines to operate in littoral regions, develop and 
     demonstrate new concepts for structural acoustics and 
     management of submarine signatures, and enhance the multi-
     mission capabilities of Navy submarines.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $30.5 million in PE 
     63569E, an increase of $23.0 million. Of the $23.0 million, 
     $7.0 million shall only be available to continue transfer of 
     technology to the Navy for active control of machinery 
     platforms demonstrated in ARPA's Project M.
     Rapid acquisition of manufactured parts
       The House bill would authorize an increase of $12.0 million 
     above the requested amount of $21.5 million in PE 63712N for 
     the continuation of the rapid acquisition of manufactured 
     parts (RAMP) program.
       The Senate amendment would authorize an increase of $12.0 
     million above the requested amount of $6.5 million in PE 
     63736D for the RAMP program.
       The House recedes.
     Advanced lithography program
       The budget request included $39.0 million in PE 63739E for 
     advanced lithography programs.
       The House bill would authorize an additional $25.0 million 
     in PE 63739E for advanced lithography programs.
       The Senate amendment would authorize the requested amount.
       The conferees agree to authorize $60.0 million, an 
     additional $21.0 million, in PE 63739E, for advanced 
     lithography programs.
     Advanced electronics technologies
       The budget request included $420.0 million for advanced 
     electronics technologies in PE 63739E.
       The House bill would authorize an additional $25.0 million 
     for advanced lithography and a reduction of $23.6 million in 
     project MT-07.
       The Senate amendment reduced the budget request by a 
     cumulative $50.0 million for three separate programs.
       The conferees agree to a funding level of $409.0 million, 
     which includes an additional $21.0 million for advanced 
     lithography, $7.5 million for seamless high off-chip 
     connectivity, and full funding for project MT-08. The 
     conferees consider the work of the Center for Advanced 
     Technologies to be worthy of continuation. The conferees note 
     that the Department of Defense may, at its discretion, use 
     funds authorized in PE 61101E to continue the program at the 
     requested level.
     Joint robotics program
       The budget request included $17.4 million for the joint 
     robotics program.
       The House bill would authorize an additional $10.0 million 
     for the mobile detection assessment response system (MDARS).
       The Senate amendment contained no similar provision.
       The conferees agree to an increased funding authorization 
     of $5.0 million for MDARS in PE 63709D.
     Advanced sensor applications program
       The budget request included $17.4 million in PE 63714D for 
     the advanced sensor applications program.
       The House bill would authorize an increase of $10.0 million 
     to the budget request, including $5.0 million for continued 
     development of a research prototype laser radar anti-
     submarine warfare (LIDAR ASW) system concept, which is being 
     investigated by the Office of the Secretary of Defense 
     advanced sensor applications program (OSD ASAP), and $5.0 
     million for continued development of the Navy ATD-111 LIDAR 
     ASW system. The House bill would encourage comparative 
     testing of the two systems as a basis for establishing the 
     requirement for a follow-on system.
       The Senate amendment would authorize an additional $10.0 
     million for upgrade test and evaluation of the ATD-111 
     system, and would direct the Secretary of the Navy to prepare 
     a plan for acquisition and deployment of the ATD-111.
       The conferees have agreed to provide $10.0 million in PE 
     63528N for the Navy ATD-111 non-acoustic anti-submarine 
     warfare program, as discussed elsewhere in this statement of 
     managers. The conferees strongly support the comparative 
     evaluation of the LIDAR ASW alternatives, and direct the 
     Department of the Navy and the OSD ASAP to develop jointly a 
     plan for testing these two alternative approaches to LIDAR 
     ASW. The conferees expect that funds to complete the 
     evaluation will be included in the fiscal year 1997 defense 
     budget request.
     Industrial preparedness (manufacturing technology) programs
       The budget request included $17.8 million for the Army, 
     $41.2 million for the Navy, $53.3 million for the Air Force, 
     and $7.0 million for the Defense Agencies to fund the 
     manufacturing technology (MANTECH) programs within these 
     agencies.
       The House bill would include an additional $10.0 million 
     for the Army, an additional $10.0 million for the Navy, and 
     approve the requested amount for the Air Force and the 
     Defense. The House bill would also transfer funding from 
     advanced development (6.3) program elements to industrial 
     preparedness (7.8) program elements.
       The Senate amendment would authorize all the manufacturing 
     technology programs at the requested amounts and would 
     transfer the funding from the program elements in the budget 
     request.
       The conferees agree to authorize funding for manufacturing 
     technology programs, as follows:

                                                               Millions
Army (PE 78045A)..................................................$26.8
Navy (PE 78011N)...................................................88.0
Air Force (PE 78011F)..............................................60.9
Def. Ag. (PE 78011S)................................................7.0
     Integrated bridge system for MK V special operations craft
       The budget request included $13.3 million in PE 1160402BB 
     for special operations advanced technology development.
       The House bill would authorize an additional $1.5 million 
     for development of a prototype maritime integrated bridge 
     system for the MK V special operations craft to demonstrate 
     the potential for advanced display and control technologies 
     to enhance mission performance.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Quiet Knight advanced concept and technology demonstration
       The budget request included $101.6 million in PE 1160404BB 
     for Special Operations tactical systems development, to 
     include $3.5 

[[Page H610]]
     million allocated by the U.S. Special Operations Command to continue 
     the Quiet Knight advanced avionics technology demonstration.
       The House bill would authorize the budget request. The 
     House report (H. Rept. 104-131) expressed strong support for 
     a Phase I (component development and demonstration) of an 
     advanced concept technology demonstration of Quiet Knight for 
     both fixed and rotary wing aircraft, and the continuation to 
     a Phase II full scale demonstration and flight test of the 
     integrated Quiet Knight capability. The House report also 
     expressed the expectation that funding requirements for 
     completion of the Phase II demonstration would be included in 
     the fiscal year 1997 budget request.
       The Senate amendment would authorize the budget request.
       The conferees support completion of the Quiet Knight 
     technology demonstration, and encourage the Department of 
     Defense to validate the requirements for advanced low 
     probability of intercept/low probability of detection 
     avionics for special operations aircraft.
     Advanced SEAL delivery system
       The budget request included $24.6 million in PE 1160404BB 
     to complete fabrication and integration of the first Advanced 
     SEAL Delivery System (ASDS) and begin system level testing.
       The House bill would authorize an additional $4.0 million 
     to complete evaluation of the ASDS employed on the SSN-688 
     class submarine.
       The Senate amendment contained a similar provision.
       The conferees are pleased with the joint efforts of the 
     U.S. Special Operations Command and the Navy in the 
     development of ASDS. The conferees agree to increase the 
     budget request by $4.0 million to complete evaluation of the 
     ASDS.
     Rigid hull inflatable boat
       The budget request contained $11.7 million for procurement 
     of special warfare equipment, including $10.1 million for 
     procurement of the Naval Special Warfare 10 meter Rigid Hull 
     Inflatable Boat (RHIB).
       The House bill would authorize the budget request.
       The Senate amendment noted that the U.S. Special Operations 
     Command had reported that the 10 meter RHIB, on which initial 
     developmental effort had been focused, performed 
     unsatisfactorily during operational testing. As a result, a 
     new strategy was adopted for development of a RHIB to meet 
     Special Operations Forces' requirements. The Senate amendment 
     would authorize an increase of $4.3 million in PE 1160404BB 
     to support this developmental effort and would direct a 
     corresponding reduction in the procurement account for 
     special warfare equipment to offset the increase.
       The House recedes. The conferees understand that the $4.3 
     million increase in PE 1160404BB for this purpose will 
     support the competitive procurement of three to four 
     prototype RHIBs for developmental testing and early 
     operational assessment. The remaining $5.8 million authorized 
     for procurement of special warfare RHIBs will be used to 
     procure approximately 30 interim 24-foot RHIBs to alleviate 
     deficiencies caused by the estimated three-year delay in 
     initial operation capability for the new RHIBs.
     Ballistic missile defense funding and programmatic guidance
       The budget request contained $2,912.9 million for the 
     Ballistic Missile Defense Organization (BMDO), including 
     $2,442.2 million for Research, Development, Test, and 
     Evaluation (RDT&E), $453.7 million for Procurement, and $17.0 
     million for Military Construction.
       The House bill would authorize an additional $628.0 million 
     for BMDO.
       The Senate amendment would authorize an additional $490.5 
     million for BMDO.
       The conferees agree to authorize a total of $3,516.9 
     million for BMDO, an increase of $603.9 million above the 
     budget request. The conferees set forth specific funding 
     allocations and programmatic guidance below.

                                                                 BMDO FUNDING ALLOCATION                                                                
                                                                [In thousands of dollars]                                                               
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                           Conference   
                         Program                             Budget Request      House Change      Senate Change    Conference Change       Outcome     
--------------------------------------------------------------------------------------------------------------------------------------------------------
Support Tech.............................................             93,308  .................  .................  .................             93,308
Support Tech.............................................             79,387  .................            +70,000            +50,000            129,387
THAAD Dem/Val............................................            576,327  .................  .................  .................            576,327
Hawk.....................................................             23,188  .................  .................  .................             23,188
BM/C3 Dem/Val............................................             24,231  .................  .................  .................             24,231
Navy LT Dem/Val..........................................  .................  .................  .................           +185,000            185,000
Navy UT Dem/Val..........................................             30,442           +170,000           +170,000           +170,000            200,442
Corps SAM................................................             30,442            -10,000             +4,558            -10,000             20,442
BPI......................................................             49,061            -20,000            -49,061            -49,061  .................
NMD......................................................            370,621           +450,000           +300,000           +450,000            820,621
Other TMD................................................            460,470            -37,000            +15,000            -22,000            438,470
THAAD EMD................................................  .................            +50,000  .................  .................  .................
BM/C3 EMD................................................             14,301  .................  .................  .................             14,301
PAC-3 EMD................................................            247,921  .................           +104,500           +104,500            352,421
PAC-3 EMD/RR.............................................             19,485  .................  .................  .................             19,485
Navy LT EMD..............................................            237,473            +45,000            +45,000           -140,000             97,473
Management...............................................            185,542            -20,000            -30,000            -30,000            155,542
Patriot Proc.............................................            399,463  .................           -104,500           -104,500            294,963
Navy LT Proc.............................................             16,897  .................  .................  .................             16,897
Hawk Proc................................................              5,106  .................  .................  .................              5,106
BM/C3 Proc...............................................             32,242  .................  .................  .................             32,242
BMDO Milcon..............................................             17,009  .................  .................  .................             17,009
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Theater High Altitude Area Defense (THAAD)--The conferees 
     agree to authorize the budget request of $576.3 million in PE 
     63861C for THAAD Demonstration/Validation (Dem/Val).
       The conferees endorse the language in the House report (H. 
     Rept. 104-131) and the Senate report (S. Rept. 104-112) 
     regarding the THAAD User Operational Evaluation System (UOES) 
     option, and the need to ensure a smooth and timely transition 
     from the Dem/Val phase to the Engineering and Manufacturing 
     Development (EMD) phase. The conferees direct the Secretary 
     of Defense to restructure the THAAD program so as to achieve 
     a First Unit Equipped (FUE) by fiscal year 2000. The 
     conferees believe that this objective can be facilitated by 
     making only minor modifications to the UOES design and 
     beginning Low-Rate Initial Production as soon as the EMD 
     missiles have been adequately tested. Subsequent performance 
     improvements to the initial system configuration should be 
     incorporated through block upgrades, as appropriate and 
     necessary. The conferees note that this approach would reduce 
     overall THAAD development costs while significantly 
     accelerating fielding of an operational system. Therefore, 
     the conferees urge the Secretary of Defense to release the 
     THAAD engineering and manufacturing development (EMD) request 
     for proposal. Finally, the conferees direct the Secretary of 
     Defense to promptly initiate development of all battle 
     management software for the THADD system, including that 
     necessary to receive cuing information from external sensors.
       Navy Upper Tier--The budget request included $30.4 million 
     in PE 63868C for the Navy Upper Tier program.
       The conferees agree to authorize an increase of $170.0 
     million for a total Navy Upper Tier authorization of $200.4 
     million. The conferees direct the Secretary of Defense to 
     include the Navy Upper Tier program in the core theater 
     missile defense (TMD) program and to structure the Navy Upper 
     Tier development and acquisition program so as to achieve an 
     initial operational capability (IOC) not later than fiscal 
     year 2001, with a UOES capability not later than fiscal year 
     1999. The conferees look forward to receiving the results of 
     the various studies that are assessing Navy Upper Tier 
     technical issues and deployment options. The conferees agree 
     to require the Director of BMDO to provide a status report to 
     the congressional defense committees, not later than March 1, 
     1996, that summarizes the findings and recommendations (as 
     available) of these analyses. The Director of BMDO should 
     include in such report an assessment of options for reducing 
     risk and enhancing competition in the Navy Upper Tier 
     program, including the option of establishing a competitive 
     development and flight test program between the Lightweight 
     Exoatomospheric Projectile (LEAP) and THAAD kill vehicles.
       The conferees believe that competition within the Navy 
     Upper Tier program is desirable, but do not support the 
     notion of competition between the Navy Upper Tier and THAAD 
     programs. The conferees are convinced that the United States 
     can and should develop and deploy both sea-based and land-
     based upper tier programs. Although there may be an 
     opportunity to reduce the number of TMD programs being 
     developed by the Department of Defense, the conferees 
     strongly oppose the notion of a competition and down-select 
     between the THAAD and Navy Upper Tier systems. The conferees 
     view these as critical and complementary systems.
       Patriot--The budget request included $247.9 in PE 64865C 
     for PAC-3 EMD, $19.5 million in PE 64866C for PAC-3 risk 
     reduction, and $399.5 million for Patriot procurement.
     
[[Page H611]]

       The conferees agree to authorize the overall amount 
     requested for the Patriot program and related activities. 
     Within this overall authorization, the conferees agree to 
     transfer $104.5 million from Patriot procurement to PAC-3 
     EMD, a total authorization of $352.4 million in PE 64865C.
       Navy Lower Tier--The budget request included $237.5 million 
     in PE 64867C for Navy Lower Tier EMD and $16.9 million for 
     Navy Lower Tier procurement.
       The conferees agree to authorize an increase of $45.0 
     million for Navy Lower Tier Dem/Val and to transfer $140.0 
     million from Navy Lower Tier EMD to Navy Lower Tier Dem/Val, 
     a total of $185.0 million in PE 63867C.
       Corps SAM--The budget request included $30.4 million in PE 
     63869C for the Corps Surface to Air Missile (Corps SAM) 
     system.
       The conferees agree to authorize $20.4 million for Corps 
     SAM, a reduction of $10.0 million. Although the conferees 
     support the Corps SAM requirement, they remain concerned by 
     several aspects of the current Corps SAM program, now known 
     as the medium extended air defense system (MEADS). The 
     conferees support an effort to explore alternative means to 
     satisfy the Corps SAM requirement. Given the investments that 
     have already been made in developing systems such as PAC-3 
     and THAAD, reintegration of existing systems and technologies 
     may offer an achievable, cost-effective, and expeditious 
     alternative. The conferees direct the Secretary of Defense to 
     submit a report to the congressional defense committees on 
     the options associated with the use of existing systems, 
     technologies, and program management mechanisms to satisfy 
     the Corps SAM requirement, including an assessment of cost 
     and schedule implications. The conferees direct that, of the 
     funds authorized in fiscal year 1996 for the Corps SAM 
     program, not more than $15.0 million may be obligated until 
     such report has been submitted to the congressional defense 
     committees.
       Boost-Phase Intercept--The budget request included $49.1 
     million in PE 63870C for the kinetic energy Boost-Phase 
     Intercept (BPI) program.
       The House bill would authorize $29.1 million for the 
     kinetic BPI program.
       The Senate amendment would authorize no funds for the 
     kinetic BPI program in PE 63870C. However, the Senate 
     amendment would authorize $15.0 million in the Other TMD 
     (OTMD) program element (PE 63872C) to initiate a joint United 
     States-Israel BPI program based on unmanned aerial vehicles 
     (UAVs).
       The conferees agree to authorize no funds for the kinetic 
     BPI program due to continuing skepticism about the 
     operational and technical effectiveness of a BPI system based 
     on a manned tactical aircraft. However, the conferees agree 
     to authorize the use of up to $15.0 million, from within 
     funds made available in the OTMD program element, for a UAV-
     based BPI program. The conferees support a joint U.S.-Israel 
     UAV-BPI program focused on risk mitigation, provided that an 
     equitable cost-sharing arrangement can be reached and that 
     the program will be structured to satisfy the BPI 
     requirements of both sides. The conferees also support 
     continuation of the Atmospheric Interceptor Technology (AIT) 
     program, which is being developed as an advanced multi-
     purpose kill vehicle. The conferees authorize the use of up 
     to $30.0 million, from within funds made available in the 
     OTMD program element, to continue the AIT program. The 
     conferees are disappointed that the Department has not 
     completed its review of BPI programs and options in time to 
     inform the conferees' deliberations and decisions. Therefore, 
     the conferees agree to require the Director of BMDO to submit 
     a report to the congressional defense committees, not later 
     than February 1, 1996, that summarizes the findings and 
     recommendations of the Department's BPI study. This report 
     should also address promising options and technical 
     approaches associated with a UAV BPI program.
       Other TMD--The budget request contained $460.5 million in 
     PE 63872C for OTMD programs, projects, and activities.
       The House bill would authorize $423.5 million for OTMD.
       The Senate amendment would authorize $475.5 million, 
     including the $15.0 million for the UAV-BPI program cited 
     above.
       The conferees agree to authorize $438.5 million for OTMD. 
     Of this amount, the conferees authorize the use of up to 
     $15.0 million to explore a UAV-BPI program and up to $30.0 
     million to continue the AIT advanced kill vehicle program.
       National Missile Defense--The budget request contained 
     $370.6 million in PE 63871C for National Missile Defense 
     (NMD).
       The House bill would authorize $820.6 million for NMD.
       The Senate amendment would authorize $670.6 million for 
     NMD.
       The conferees agree to authorize $820.6 million for NMD.
       Support Technologies--The budget request contained $93.3 
     million in PE 62173C and $79.4 million in PE 63173C for 
     ballistic missile defense (BMD) support technologies.
       The House bill would authorize the budget request for BMD 
     Support Technologies.
       The Senate amendment would authorize an increase of $70.0 
     million in PE 63173C for the Space-Based Laser (SBL) program.
       The conferees agree to authorize the budget request in PE 
     62173C and to authorize an increase in the SBL program of 
     $50.0 million, for a total authorization of $129.4 million in 
     PE 63173C. The conferees believe that it is critical for the 
     United States to continue developing the technology for 
     space-based defenses, to preserve the option of deploying 
     highly effective global defenses in the future. The conferees 
     note that a space-based laser would likely be the most 
     effective system for intercepting ballistic missiles of 
     virtually all ranges in the boost phase. Therefore, the 
     conferees direct the Secretary of Defense to take the 
     following actions: (1) continue integration and testing of 
     the laser, mirror, and beam control components of the Alpha-
     Lamp Integration program; (2) accelerate design activities on 
     the StarLITE space demonstration configuration; (3) produce 
     the concept of operations and design requirements for a 
     follow-on operational space-based laser deployment; and (4) 
     revitalize the technology development efforts most likely to 
     yield significant cost and weight savings for a future SBL 
     spacecraft. The conferees direct the Secretary of Defense to 
     ensure that sufficient funds are provided in the outyears for 
     continuation of a robust SBL effort, and submit to the 
     congressional defense committees, by March 1, 1996, a report 
     that outlines a program and funding profile that could lead 
     to an on-orbit test of a demonstration system by the end of 
     1999 if approved.
       The conferees note that the Director, BMDO, has testified 
     to Congress that BMDO's follow-on technology programs are 
     severely under-funded and that the Director is seeking to 
     increase such funding to approximately 12 percent of the 
     overall BMDO budget. The conferees support the efforts of the 
     Director of BMDO to increase funding for advanced technology 
     development. However, the conferees note that such increases 
     will require an overall increase in the funds allocated to 
     BMDO. The conferees support such an increase in order to 
     reinvigorate and advanced technology programs and to help 
     sustain the development and acquisition activities endorsed 
     by the conferees.
       BMDO is required to set aside 2.15 percent of extramural 
     research, development, test, and evaluation authorized and 
     appropriated (RDT&E) funds for Small Business Innovative 
     Research (SBIR) efforts. Since the conferees recommend a 
     level of funding for BMD programs exceeding the budget 
     request, and programmed funding for SBIR represents a level 
     below the mandated percentage, the Director of BMDO is 
     authorized to transfer such funds as necessary from BMD 
     program elements into PE 62173C to achieve the required 
     percentage for SBIR.
       BMDO Management--The budget request contained $185.5 
     million in PE 65218C for BMD Management.
       The House bill would authorize $165.5 million for BMDO 
     Management.
       The Senate amendment would authorize $155.5 million for 
     BMDO Management.
       The conferees agree to authorize $155.5 million for BMDO 
     Management. The conferees recognize that BMDO must maintain 
     the integrity of its oversight of the overall BMD program. 
     The conferees are concerned, however, that BMD management 
     infrastructure may be unnecessarily duplicated in one or more 
     of the services. Therefore, the conferees direct that BMDO 
     identify any such duplication and take actions to eliminate 
     it. The conferees request that the Director of BMDO consult 
     with the Senate Committee on Armed Services and the House 
     Committee on National Security regarding the Director's 
     findings and proposed actions. The conferees further direct 
     that BMDO show no increase in fiscal year 1997, after 
     adjustments for inflation and any change in mission, over the 
     level appropriated for management in fiscal year 1996.
     Cruise missile defense funding
       The House bill would authorize an increase of $76.0 million 
     above the budget request for cruise missile defense programs, 
     projects, and activities.
       The Senate amendment would authorize an increase of $145.0 
     million above the budget request for a similar group of 
     programs, projects, and activities.
       The conferees agree to authorize an increase of $85.0 
     million above the budget request for cruise missile defense 
     programs, projects, and activities. The conferees provide 
     additional guidance in the classified annex.

                       ITEMS OF SPECIAL INTEREST

     Anti-submarine warfare program
       The conferees share the concerns raised in the House report 
     (H. Rept. 104-131), and in the classified annex to that 
     report, regarding the apparent decline in priority of the 
     Navy's anti-submarine warfare (ASW) program. The conferees 
     agree that there is a need for an assessment of the nation's 
     overall ASW program. The conferees' concerns are addressed 
     further in the classified annex to this Statement of 
     Managers.
       The conferees direct the Secretary of Defense to assess the 
     current and projected United States ASW capability in light 
     of the continuing development of quieter nuclear submarines, 
     the proliferation of very capable diesel submarines, the sale 
     of sophisticated, submarine launched weapons, and the 
     declining trend in budget resources associated with ASW 
     programs. This assessment should identify both short-term and 
     long-term improvements that are needed to cope with the 
     evolving submarine threat in both littoral and open ocean 
     areas. The results of this assessment and the plan for the 
     United States ASW program shall be reported to the 
     congressional defense committees by July 1, 1996.
     Geosat follow-on program
       The House report (H. Rept. 104-131) addressed the issue of 
     converging the Navy's 

[[Page H612]]
     Geosat Follow-On (GFO) altimetry program with the National Aeronautics 
     and Space Administration's TOPEX/Poseidon Follow-On (TPFO) 
     altimetry program.
       The Senate report (S. Rept. 104-112) did not address the 
     issue.
       The conferees share the concerns raised in the House 
     report. The conferees are dismayed that the report to 
     Congress on altimetry convergence was submitted more than 
     three months later than an already extended deadline. The 
     conferees are also troubled that the report recommends 
     proceeding with the TPFO option, despite the fact that this 
     approach would cost more, not involve U.S. construction and 
     control of the satellite, and not provide the same level of 
     data security. The TPFO option would require the Navy to 
     spend an additional $5.2 million, for which it has not 
     budgeted, to add global positioning system (GPS) and direct 
     downlink capabilities critical for satisfying Navy 
     requirements. The conferees direct that no funds authorized 
     for the Department of Defense be obligated or expended during 
     fiscal year 1996 for activities associated with adding GPS 
     and direct downlink capabilities to TPFO.
     High performance computing modernization program
       In addition to supporting efforts to reduce the RDT&E 
     infrastructure, the conferees continue to support investment 
     in high performance computing (HPC) resources for use in the 
     developmental test and evaluation (DT&E) community and 
     recognize the need for a transition to HPC-based resources, 
     integrated DT&E, and operational test and evaluation (OT&E). 
     The conferees direct the Secretary of Defense to prepare a 
     long-term plan for modernization of HPC resources at test and 
     evaluation centers, and for the integration of HPC-based 
     models, advanced data bases, and other decision support 
     resources into the RDT&E infrastructure. In preparing the 
     plan, the Secretary should rely on the collaborative input 
     from the Director of Defense Research and Engineering, the 
     Director of Test Systems Engineering and Evaluation, and the 
     Director of Operational Test and Evaluation. The plan shall 
     address budgeting options that provide for a realistic 
     program and propose financing methods that can insure that 
     needed infrastructure investments are made in a timely 
     manner. The conferees direct the Secretary to submit the 
     proposed plan with the Department of Defense budget 
     recommendations to the congressional defense committees, no 
     later than March 31, 1996.
     Low-low frequency acoustics
       The conferees share the understanding expressed in the 
     House report (H. Rept. 104-131) that of the funds authorized 
     and appropriated in fiscal year 1994 and 1995 for the low-low 
     frequency acoustics (LLFA) technology program approximately 
     $30.0 million remain available and are sufficient to continue 
     the program through fiscal year 1996. The conferees further 
     understand that the fiscal year 1996 program will focus on 
     operational concepts for the LLFA, technical performance, 
     command and control, environmental considerations, and the 
     transition of the LLFA technology to existing fleet 
     platforms. The conferees agree with the House that based on 
     the emerging results of the fiscal year 1996 program 
     consideration of additional funding for LLFA technology 
     program, should be deferred until the fiscal year 1997 budget 
     request.
     Machine tool controller
       The conferees are aware of a recent cooperative research 
     and development agreement, entered into by the Department of 
     Energy, two national laboratories, and a private sector 
     consortium, to develop and test an open-architecture machine 
     tool controller. The conferees encourage the Secretary of 
     Defense to develop a plan to ensure a thorough evaluation of 
     the technology and its application to the specific needs of 
     defense contractors.
     National security space policy, management, and oversight
       The House report (H. Rept. 104-131) and the Senate report 
     (S. Rept. 104-112) each contained reporting requirements 
     concerning policy, management, and oversight of U.S. national 
     security space programs. In lieu of the reporting 
     requirements contained in those reports, the conferees direct 
     the Secretary of Defense to submit a report to the Congress, 
     not later than April 15, 1996, that addresses in detail the 
     following matters:
       (1) The results of the Administration's reviews of U.S. 
     national and military space policies--The conferees direct 
     that copies of any updated policy directives (including 
     unclassified and classified forms) that result from the 
     reviews be included as attachments to the Secretary's report. 
     The conferees view the Administration's decision to initiate 
     such reviews as appropriate in light of changes in the 
     international security environment, and expect the reviews 
     will be completed in time to permit Departmental witnesses to 
     discuss the results in hearings on the President's fiscal 
     year 1997 budget request.
       (2) The activities of the Joint Department of Defense 
     Intelligence Community Space Management Board (JSMB)--The 
     report shall include a copy of the charter for the Board and 
     a description of its planned functions, operations, and 
     staffing. The report shall address the responsibilities for 
     the development of an integrated national security space 
     architecture and the integrated acquisition of national 
     security space systems. In addition, the report shall 
     describe the Board's plans for reviewing military and 
     intelligence satellite communications architectures and 
     systems. The conferees endorse the establishment of the JSMB, 
     noting that improved integration of military and intelligence 
     satellite architectures and systems can result in significant 
     cost-savings and efficiencies in the acquisition and 
     operation of those systems.
       (3) The status of and plans for completing a national 
     security space master plan to guide investments in military 
     and intelligence space architectures and systems for the 
     coming decade--The conferees note with concern that the 
     Department failed in a similar, but more narrowly focused, 
     undertaking when, in the Statement of Managers to accompany 
     the National Defense Authorization Act for Fiscal Year 1993 
     (H. Rept. 102-966), the conferees directed the Department to 
     develop ``a comprehensive acquisition strategy for 
     developing, fielding, and operating DOD space programs.'' 
     Nonetheless, the conferees applaud the decision of the Deputy 
     Under Secretary of Defense for Space to begin drafting such a 
     master plan, and request that the report include an estimated 
     completion date for the plan.
       (4) The Department's plans for ensuring that, even as 
     oversight of national security space acquisition and planning 
     is centralized, each of the military services is able to 
     influence decisions regarding space architectures and 
     systems--The conferees direct that the report include: (a) an 
     assessment of progress to date in centralizing DOD space 
     management; (b) the organizational structure that will be 
     achieved upon completion of the planned consolidation, and an 
     estimated completion date for such consolidation; (c) a 
     description of how the DOD plans to protect service-unique 
     interests and other equities in the new centralized 
     organization; (d) the anticipated reductions in personnel and 
     infrastructure that will result from such consolidation; and 
     (e) the degree to which effectiveness and efficiency will be 
     enhanced by the new structure and associated procedures.
       The conferees are aware that the Department has established 
     a Space Architect Office as part of the space management 
     reorganization. Given that this is a new function and 
     organization, budget planning was not completed prior to 
     submittal of the amended fiscal year 1996 budget request. 
     Therefore, the conferees agree to authorize the use of up to 
     $10.0 million in Air Force research, development, test, and 
     evaluation funds to operate the Space Architect Office in 
     fiscal year 1996.
     Shortstop
       The conferees stress the need to move forward without delay 
     on the Shortstop countermeasure system, and encourage the 
     Secretary of the Army to maintain funding for the currently 
     planned program leading to procurement.
     Softwar operations
       The conferees direct the Air Force's Phillips Laboratory 
     Combat Space Operations Program Office to examine the use of 
     commercially developed Information Warfare Systems that use 
     television enhanced situational awareness for ``softwar'' 
     operations. The Secretary of the Air Force shall report to 
     the congressional defense committees by January 1, 1996 on 
     the results of the Phillips Laboratory examination and the 
     possibility to fund a technology demonstration in ``softwar'' 
     operations. The conferees direct the Secretary to pursue this 
     technology if the examination results in a favorable 
     recommendation.

                         LEGISLATIVE PROVISIONS

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

      Modifications to strategic environmental research and 
         development program (sec. 203)
       The House bill contained a provision (sec. 203) that would 
     make certain modifications to chapter 172 of title 10, United 
     States Code, which governs the Strategic Environmental 
     Research and Development Program.
       Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would streamline 
     and simplify program activities, facilitate program 
     management, and promote cost effectiveness. The existing 
     annual reporting requirement would continue until fiscal year 
     1997, at which point an abbreviated annual reporting 
     requirement would become effective. The Senate amendment 
     would ensure that the level of participation by the Secretary 
     of Energy would not be subject to change. The conferees agree 
     that there is a continuing need for Department of Energy 
     participation in the program, and the retention of some 
     reporting requirements.
     Defense dual-use technology initiative (sec. 204)
       The House bill would deny the entire funding request of 
     $500.0 million for the Defense Reinvestment Program (PE 
     63570E).
       The Senate amendment would rename the program the Defense 
     Dual-Use Technology Initiative and reduce the requested 
     authorization for the program by $262.0 million.
       The conferees agree to change the name of the program and 
     to authorize $195.0 million for the program. The conferees 
     have included a provision that would limit the availability 
     of the funds authorized in PE 63570E only for the purpose of 
     continuation or completion of projects initiated before 
     October 1, 1995. The conferees have also included language 
     that would require the Secretary of Defense, prior to 
     obligation of funds, to provide the congressional defense 
     committees with notice 

[[Page H613]]
     regarding the projects to be funded with $145.0 million of the amount 
     authorized for the program. The conferees have also required 
     that, for the remaining $50.0 million of the total amount 
     authorized, the Secretary should certify, prior to obligation 
     of funds, that the projects that would be carried out using 
     such funds have been determined by the Joint Requirements 
     Oversight Council to be of significant military priority.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     Space launch modernization (sec. 211)
       The House bill contained a provision (sec. 211) that would 
     authorize $100.0 million for a competitive reusable rocket 
     technology program, and $7.5 million for evaluation of 
     prototype hardware of low-cost expendable launch vehicles.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     $50.0 million for a competitive reusable rocket technology 
     program, provided that the National Aeronautics and Space 
     Administration allocates at least an equal amount for its 
     reusable space launch program.
     Tactical manned reconnaissance (sec. 212)
       The House bill contained a provision (sec. 213) that would 
     prohibit the Air Force from conducting any research and 
     development on tactical manned reconnaissance systems.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require a 
     report explaining the Air Force's planned uses of funds for 
     the tactical manned reconnaissance mission.
     Joint advanced strike technology (JAST) program (sec. 213)
       The budget request included three requests for research and 
     development funding for the joint advanced strike technology 
     (JAST) program: $149.3 million for the Navy, $151.2 million 
     for the Air Force, and $30.7 million for the Advanced 
     Research Projects Agency.
       The House bill contained a provision (sec. 216) that would 
     reduce the request for JAST by $51.0 million, evenly divided 
     between the Navy and the Air Force, and limit to 75 percent 
     the obligation of fiscal year 1996 appropriations until the 
     Secretary of Defense provides a report to the congressional 
     defense committees. The provision would require that the 
     Secretary's report specify the numbers and capabilities of 
     JAST-derivative aircraft and related weapons systems 
     necessary to support two major regional contingencies.
       The Senate amendment would approve the JAST request. The 
     Senate amendment also contained a provision (sec. 211) that 
     would require the Navy to evaluate a variant of the F-117 
     stealth fighter to fulfill Navy requirements within the JAST 
     program. The Senate amendment would add $175.0 million to the 
     Navy program for this propose, with $25.0 million to provide 
     initial engineering analysis and specific risk reduction 
     efforts, and $150.0 million to develop a flying prototype. 
     Authorization of a flying prototype would be contingent on 
     approval by the Secretary of the Navy's approval of results 
     of initial analytical efforts.
       The Senate report (S. Rept. 104-112) questioned whether the 
     program could fulfill the needs of the three services, and 
     directed the Department to include two separate approaches in 
     the JAST program to reduce program risk. The Senate amendment 
     directed the Secretary of the Navy to:
       (1) ensure that the JAST program leads to competitive 
     demonstration involving tests of full scale, full thrust 
     aircraft by competitors to provide test data for evaluation 
     by the services; and
       (2) evaluate at least two propulsion concepts from 
     competing engine companies as part of those demonstrations.
       Subsequent to passage of the Senate amendment and the House 
     bill, the Department redefined the JAST program. Although 
     additional resources will be necessary, from fiscal year 1997 
     onward, to execute this new program, these changes have led 
     to fiscal year 1996 deferral of $131.0 million.
       The conferees share the concerns expressed in the Senate 
     report (S. Rept. 104-112) regarding the lack of engine 
     competition and the size of flying prototypes. The conferees 
     direct the Under Secretary of Defense (Acquisition & 
     Technology) (USD (A&T)) to ensure that: (1) the Department's 
     JAST program plan provides for adequate engine competition in 
     the program; and (2) the scale of the proposed demonstrator 
     aircraft is consistent with both adequately demonstrating 
     JAST concepts and lowering the risk of entering engineering 
     and manufacturing development (EMD). The conferees direct the 
     Secretary of Defense to include in the report required by 
     section 213(d) the Department's plan for competitive engine 
     programs and demonstrator aircraft.
       The conferees recommend authorization of funds reflecting 
     these changes, and agree to a provision (sec. 213) that 
     would:
       (1) require that the Secretary of Defense provide a report 
     to the congressional defense committees specifying the:
       (a) the numbers and capabilities of JAST-derivative 
     aircraft and related weapons systems required to support two 
     major regional contingencies; and
       (b) the department's plan for competitive engine programs 
     and demonstrator aircraft;
       (2) limit obligations for the JAST program to no more than 
     75 per cent of fiscal year 1996 appropriations, until the 
     Secretary of Defense provides this report;
       (3) authorize up to $25.0 million from Navy Research, 
     Development, Test and Evaluation to conduct a six month 
     program definition phase for the A/F-117X to determine 
     whether such an aircraft could affordably meet the Navy's 
     next generation aircraft strike requirements;
       (a) if the USD (A&T) determines that a six month definition 
     phase is warranted, he shall provide a report on the results 
     of the concept definition phase to the congressional defense 
     committees, not later than May 1, 1996;
       (b) if the USD (A&T) determines otherwise and certifies 
     that an A/F-117X aircraft is not needed to meet the Navy 
     requirements and is not a cost effective approach to meeting 
     Navy needs, the provision would allow the Department to use 
     the $25.0 million for other JAST activities.
       (4) authorize $7.0 million for competitive engine concepts.
     Continous wave, superconducting radio frequency, free 
         electron laser (sec. 214)
       The House bill contained a provision (sec. 217) that would 
     authorize $9.0 million in PE 62111N for the establishment of 
     a continuous wave, superconducting radio frequency, free 
     electron laser program within the Office of the Secretary of 
     the Navy.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Navy mine countermeasure program (sec. 215)
       The Senate amendment contained a provision (sec. 212) that 
     would transfer primary responsibility for developing and 
     testing naval mine countermeasures from the Director, Defense 
     Research and Engineering to the Under Secretary of Defense 
     for Acquisition and Technology. It would provide for the 
     exercise of this responsibility during fiscal years 1997 
     through 1999.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish 
     fiscal years 1996 through 1999 as the period for exercise of 
     the responsibility.
       The conferees note that section 216(b) of the National 
     Defense Authorization Act for Fiscal Years 1992 and 1993 
     (Public Law 102-190) provides that the Secretary of Defense 
     may waive this assignment of responsibility if he annually 
     certifies the adequacy of:
       (1) the mine countermeasures master plan prepared by the 
     Department of the Navy; and
       (2) the budget resources provided for implementation of the 
     plan.
     Space-Based Infrared System (sec. 216)
       The Senate amendment contained a provision (sec. 214) that 
     would accelerate development and deployment of the Space and 
     Missile Tracking System (SMTS), formerly known as Brilliant 
     Eyes, and that would require the Secretary of the Air Force 
     to obtain the concurrence of the Director of the Ballistic 
     Missile Defense Organization (BMDO) before implementing any 
     decision that would impact the SMTS program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to establish a program baseline for the 
     overall Space-Based Infrared System (SBIRS) program. The 
     baseline would include the following:
       (1) overall program structure, including: (A) program cost 
     and an estimate of the funds required in each fiscal year in 
     which development and acquisition activities are planned, (B) 
     a comprehensive schedule with program milestones and exit 
     criteria, and (C) optimized performance parameters for each 
     segment of the integrated system;
       (2) a development schedule for SMTS structured to achieve 
     the first launch of a Block I satellite in fiscal year 2002, 
     and initial operational capability (IOC) of the system in 
     fiscal year 2003;
       (3) full integration of SMTS into the overall SBIRS 
     architecture; and
       (4) establishment of the performance parameters of all 
     space segment components so as to optimize the performance of 
     the integrated system while minimizing unnecessary redundancy 
     and cost.
       The provision adopted by the conferees would require the 
     Secretary of Defense to provide a report to the congressional 
     defense committees on the SBIRS program baseline not later 
     than 60 days after the enactment of this Act.
       The conference provision would also establish the following 
     program elements for the SBIRS program:
       (1) Space Segment High;
       (2) Space Segment Low (SMTS); and
       (3) Ground Segment.
       The conference provision requires the SBIRS baseline to 
     include an SMTS IOC by fiscal year 2003 to support national 
     and theater missile defenses. The conferees understand that 
     the Air Force has defined this IOC as consisting of 12-18 
     satellites. The conferees urge the Air Force to make every 
     effort to achieve an 18 satellite IOC by fiscal year 2003.
       In accelerating the SMTS program, it is not the conferees' 
     intent to reduce the priority and importance of the SBIRS 
     High components. The conferees endorse the schedule that the 
     Air Force has established for the SBIRS High components. The 
     SBIRS program should feature complementary and mutually 
     supportive elements that do not include excessive technical 
     and functional redundancy.
       Although SMTS can, over time, become a multi-functional 
     sensor system capable of 

[[Page H614]]
     fulfilling missions such as technical intelligence and battlespace 
     characterization, the conferees direct the Air Force to 
     ensure that the SMTS Flight Demonstration System (FDS) and 
     Block I system be designed primarily to satisfy the missile 
     defense mission. Missions not related to theater and/or 
     national ballistic missile defense should not be allowed to 
     add significant cost, weight or delay to the SMTS FDS or 
     Block I system. This scaled-down approach will ameliorate the 
     technical challenges associated with an accelerated schedule 
     while contributing to overall affordability.
       To support this schedule and missile defense focus, the 
     conferees direct the Secretary of Defense to commence SMTS 
     pre-engineering and manufacturing development (EMD) 
     activities in fiscal year 1996 and to ensure that the FDS and 
     Block I satellites are equipped with long-wave infrared 
     sensors. The conferees endorse the design characteristics 
     specified in the Senate report (S. Rept. 104-112) regarding 
     the objective SMTS system. The conferees have authorized 
     sufficient funds in fiscal year 1996 to commence these 
     activities and to prepare the way for a fiscal year 1998 FDS 
     launch.
       Over time, as the Air Force gains operational experience 
     with the High and Low Block I systems, it is likely that SMTS 
     will be able to assume a much larger share of the SBIRS 
     requirements burden. In the meantime, the conferees urge the 
     Secretary of Defense to initiate technical and cost trade 
     studies among the SBIRS space systems and include any 
     preliminary findings and recommendations in the SBIRS 
     baseline report.
       The budget request for SBIRS included $130.7 million for 
     demonstration/validation (Dem/Val), $152.2 million for EMD, 
     and $19.9 million for procurement. Of the funds requested for 
     Dem/Val, $114.8 million was for SMTS. The conferees agree on 
     the following authorizations:
       (1) $265.7 million in PE 63441F for SBIRS Dem/Val, of which 
     $249.8 million is for SMTS; and
       (2) $162.2 million in PE 64441F for SBIRS EMD, of which 
     $9.4 million is for the Miniature Sensor Technology 
     Integration (MSTI) program.
       The conferees are aware of a recent proposal to increase 
     competition and reduce risk in the SMTS program through a 
     low-cost flight experiment. The conferees direct the Air 
     Force and BMDO to carefully assess the merits of this concept 
     and to include their joint findings and recommendations in 
     the SBIRS baseline report. If the Air Force Acquisition 
     Executive and the Director of BMDO certify to the 
     congressional defense committees that such a flight 
     experiment is in the overall interest of the SMTS program 
     (measured in terms of risk reduction and schedule 
     acceleration), the conferees authorize the use of up to $40.0 
     million of the funds authorized for SMTS in fiscal year 1996 
     to begin a low-cost flight experiment.
       The conferees congratulate the Air Force and BMDO for 
     reaching agreement on the acquisition management relationship 
     for execution of the SMTS program. In light of the Memorandum 
     of Agreement between the Air Force Acquisition Executive and 
     the Director of BMDO, the Senate recedes on its language 
     dealing with management oversight of the SMTS program. As 
     with all aspects of the SMTS program, however, the conferees 
     will continue to monitor management oversight with great 
     interest. If the present management structure does not 
     fulfill the expectations of the conferees, or lead to 
     implementation of the guidance provided above, the conferees 
     will reconsider transferring SMTS back to BMDO.
     Defense Nuclear Agency programs (sec. 217)
       The budget request contained $219.0 million for research 
     and development at the Defense Nuclear Agency.
       The Senate amendment contained a provision (sec. 216) that 
     would authorize $242.0 million for fiscal year 1996 for 
     research and development programs (PE 62715H), a $23.0 
     increase to the budget request. The increase would provide: 
     $3.0 million for the establishment of the tunnel 
     characterization/neutralization program; $6.0 million for the 
     establishment of a long-term radiation tolerant 
     microelectronics program and require the Secretary to report 
     to Congress on the program and future year funding; $4.0 
     million for the electro-thermal gun program; and transfer the 
     Air Force thermionics program and any unobligated funds to 
     the DNA and provide $10.0 to accelerate that program.
       The House report (H. Rept. 104-131) would provide a $4.0 
     million increase to the budget request for the electro-
     thermal gun technology.
       The conferees agree to a provision that would authorize 
     $241.7 million, including a reduction of $5.0 for 
     environmental pollutant research. This represents a $27.7 
     million increase over the budget request. Of that amount, 
     $3.0 million shall be used for a tunnel characterization/
     neutralization program, $4.0 million shall be available for 
     the electro-thermal gun technology program, $6.0 million 
     shall be available for the establishment of a long-term 
     radiation tolerant microelectronics program and development 
     of long pulse, high power microwave technology, $10 million 
     shall be available for the thermionics program; and $4.0 
     million shall be available for the counterterror explosives 
     research program. Additionally, the Secretary is directed to 
     provide a report to Congress, 120 days after enactment of 
     this Act, on the conduct of the long-term radiation tolerant 
     microelectronics program and future years funding for this 
     program. The remainder of the increase should be used to 
     supplement the tunnel characterization/neutralization program 
     and the long-term radiation tolerant microelectronics 
     program, as appropriate.


             TUNNEL CHARACTERIZATION/NEUTRALIZATION PROGRAM

       The conferees understand that the Department of Defense has 
     allocated $10.0 million of funds requested in the budget for 
     the counterproliferation support program for a tunnel 
     characterization/neutralization program. Although the DNA 
     tunnel characterization/neutralization target tests and 
     program would be executed independently of the Department's 
     counterproliferation efforts, the conferees expect close 
     coordination between the two programs to ensure that common 
     concerns are addressed. The conferees urge the DNA to 
     utilize, to the maximum extent possible, the Nevada Test Site 
     infrastructure for the tunnel target characterization/
     neutralization tests and program.


                              thermionics

       The conferees directed the transfer of the thermionics 
     conversion technology from the Air Force Weapons program (PE 
     62601F), together with all unobligated funds authorized and 
     appropriated in prior years, totalling up to $12.0 million, 
     to the Defense Nuclear Agency program (PE 62715H).
     Counterproliferation support program (sec. 218)
       The budget request contained $108.2 million for the defense 
     counterproliferation support program.
       The Senate amendment contained a provision (sec. 217) that 
     would authorize $144.5 million for the program, a $36.3 
     million increase to the budget request. Of the funds 
     authorized in this section, $6.3 million would be available 
     to the Special Operations Command (SOCOM) for purposes of 
     broadening SOCOM's counterproliferation activities and $30.0 
     million would be available for the continuation of the Army 
     tactical antisatellite technologies (ASAT) program (PE 
     63392A) for a user operation evaluation system (UOES) 
     contingency capability. The provision would authorize the 
     Department of Defense to transfer up to $50.0 million from 
     fiscal year 1996 defense research and development accounts 
     for counterproliferation support activities.
       The House bill would authorize the budget request for the 
     counterproliferation support program and include $11.0 
     million for the development of improved nuclear detection and 
     forensics analysis by the Advanced Projects Research Agency 
     (ARPA).
       The conferees agree to a provision that would authorize 
     $138.2 million for the counterproliferation support program, 
     of which $30.0 million shall be available for the 
     continuation of the Army tactical antisatellite technologies 
     program. Of the funds authorized in fiscal year 1996, the 
     conferees recommend that $1.5 million be available for the 
     exploration of the ``deep digger'' concept for hard target 
     characterization, and that $5.0 million be available for the 
     high frequency active auroral research program (HAARP).
       The conferees acknowledge concerns raised in the Senate 
     report (S. Rept. 104-112) regarding the need for the 
     Department to continue the aggressive pursuit of discriminate 
     detection and attack capabilities of deep underground 
     structures. The Department should continue to develop the 
     capability to detect and defend against biological agents 
     through the use of technologies, available through 
     universities and non-profit industries, that have been 
     developed for biological detection, emergency preparedness 
     and response. The Department should also continue to develop 
     a capability to counter technological gains by proliferant 
     countries that could gain access to a broad mix of 
     commercial-off-the-shelf space technologies which could 
     provide these countries with significant space capabilities 
     or access to space-derived data and could negatively impact a 
     spectrum of multi-service and joint warfighting capabilities.


                   tactical antisatellite technology

       The conferees direct the Secretary of Defense to include 
     sufficient resources in fiscal year 1997, and throughout the 
     future year defense plan (FYDP), for the following: a user 
     operation evaluation system (UOES) contingency capability to 
     produce 10 kill vehicles with the appropriate boosters by 
     fiscal year 1999; a review to determine the appropriate 
     management structure and military service responsibility; 
     report on the current status of antisatellite development 
     worldwide and the degree to which United States antisatellite 
     development efforts may contribute to similar development 
     among other nations and their impact on U.S. operational 
     capabilities; and to report the Department's recommendations 
     to Congress in the fiscal year 1997 budget request. To avoid 
     significant or lengthy delays in developing a needed 
     capability, the conferees direct the Department to leverage, 
     or build upon the current Army tactical antisatellite 
     technology program. The conferees note that authorization of 
     funds for continued development of the tactical antisatellite 
     system does not constitute a decision to deploy the system.


                     mission planning and analysis

       The conferees recommend that $2.5 million from Air Force 
     operation and maintenance (O&M) be made available for 
     Strategic Air Command (STRATCOM) mission planning and 
     analysis. The STRATCOM program provides support to the 
     regional commanders-

[[Page H615]]
     in-chief (CINCs) in advance planning for counterproliferation 
     contingencies. This program aids commanders in identifying 
     and characterizing current and emerging proliferation 
     threats. In instances in which proliferation activities 
     challenge the interests of the United States and its military 
     forces and operations, STRATCOM mission planning and analysis 
     capabilities allow defense planners to: identify a variety of 
     potential military targets; assess the effectiveness, 
     consequences and costs of military options; and develop 
     alternative contingency plans that would maximize mission 
     effectiveness, and minimize the risks, costs, and collateral 
     effects.


     improved nuclear detection and forensic analysis capabilities

       Due to an increase in international terrorism and attempts 
     by criminal elements to acquire weapons-grade nuclear 
     material, the conferees recommend $11.0 million to accelerate 
     the development of improved nuclear detection and forensic 
     analysis capabilities in PE 62301E, project ST23. The 
     conferees direct the ARPA to closely coordinate its efforts 
     in this area closely coordinate with the counterproliferation 
     support program manager in the Department of Defense and the 
     interagency group on counterproliferation.
     Nonlethal Weapons Program (sec. 219)
       The Senate bill contained a provision (sec. 218) that would 
     establish a new, consolidated program for non-lethal systems 
     and technology. The program would be managed by the Office of 
     Strategic and Tactical Systems of the Under Secretary of 
     Defense for Acquisition and Technology. The provision would 
     create a new program element within the defense budget for 
     this program, and transfer funds from PE 603570D, PE 603750D, 
     PE 603702E, and PE 603226E into this new program element.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express 
     congressional recognition of the U.S. armed forces increasing 
     role in operations other than war, recognition of support for 
     the use of nonlethal weapons and systems across the spectrum 
     of conflict, and concern that development of these 
     technologies is being spread across the budgets of the 
     military services and defense agencies. The conferees direct 
     the Department of Defense to submit a report to Congress by 
     February 15, 1996 and direct the Secretary of Defense to 
     assign responsibility for the nonlethal weapons program to an 
     existing office within the Office of the Secretary of Defense 
     or designate an executive agent from the military services, 
     to establish centralized responsibility for development and 
     fielding of nonlethal weapons technology. The conferees 
     authorize $37.2 million in a new defense program element for 
     nonlethal weapons programs and nonlethal technologies 
     programs.
       The conferees believe that centralized responsibility for 
     the nonlethal weapons program will ensure effective program 
     management and expeditious development, acquisition, and 
     fielding of nonlethal weapons and systems. The conferees 
     further understand that both the Department of the Army and 
     the Marine Corps are the primary users of these technologies 
     and recommend the designation of either military service as 
     the executive agent for this important program. Further, the 
     conferees understand that the Department of the Army and the 
     Marine Corps have closely coordinated their efforts in this 
     area and expect this coordination to continue to ensure 
     centralized management and improved budgetary focus for the 
     nonlethal weapons program. The provision would also require 
     the Department to report to Congress by February 15, 1996 on 
     the designation of the executive agent for oversight of the 
     program, the acquisition plan, the time frame for fielding 
     systems, current and anticipated military requirements, and 
     the Department of Defense policy regarding the nonlethal 
     weapons program.
     Federally-Funded Research and Development Centers (sec. 220)
       The House bill contained a provision (sec. 257) that would 
     require the Secretary of Defense and the Secretaries of the 
     Army, Navy, and Air Force to reevaluate the functions of 
     Federally-Funded Research and Development Centers (FFRDCs) 
     and to achieve certain reductions, consolidations and 
     management goals. The provision would limit FFRDC funding to 
     $1.15 billion and reduce funding for FFRDCs and University-
     Affiliated Research Centers (UARC) by $90.1 million.
       The Senate amendment contained a provision (sec. 219) that 
     would require an undistributed reduction in FFRDC funding of 
     $90.0 million, below the ceiling for fiscal year 1995, and 
     would establish a statutory ceiling for FFRDCs of $1.2 
     billion in fiscal year 1996.
       The Senate recedes with an amendment. The conferees agree 
     to reduce the funding for FFRDCs and UARCs by $90.0 million 
     in fiscal year 1996 and direct that not more than $9.0 
     million of this reduction be applied to funding for UARCs. 
     The conferees have included language that would require the 
     Secretary of Defense to manage the UARCs at the fiscal year 
     1995 level. The conferees direct the Secretary of Defense to 
     ensure adequate funding in fiscal year 1996 for those FFRDCs 
     that engage in studies and analysis for the Office of the 
     Secretary of Defense and the services. The conferees also 
     direct the Secretary to examine the possibility of increasing 
     the use of the Software Engineering Institute in support of 
     command, control, communications, computing, and intelligence 
     programs managed by the Office of the Secretary of Defense.
     Joint seismic program and global seismic network (sec. 221)
       The Senate amendment contained a provision (sec. 224) that 
     would authorize $9.5 million of unobligated fiscal year 1995 
     funds in Air Force research and development for the joint 
     seismic program (JSP) and the global seismic network (GSN) to 
     provide more robust monitoring research and expanded seismic 
     monitoring of potential nuclear tests.
       The House bill contained no similar provision.
       The conferees agree to a provision that would authorize 
     $9.5 million in fiscal year 1996 for the joint seismic and 
     global seismic network programs. The conferees understand 
     that no future year funds would be required for this program. 
     Further, the conferees direct the Department of Defense 
     Comptroller to release the funds in a timely manner so that 
     the programs can be completed.
     Hydra-70 rocket product improvement program (sec. 222)
       The Senate amendment contained a provision (sec. 113) that 
     would prohibit the obligation of funds to procure Hydra-70 
     rockets until the Secretary of the Army submitted 
     certifications regarding: identification of causes and 
     technical corrections of Hydra-70 rocket failures; 
     comparative cost of correcting all Hydra-70 rockets versus 
     the non-recurring costs of acquiring improved rockets; review 
     and qualification of commercial, nondevelopmental systems to 
     replace Hydra-70 rockets; the availability of training 
     rockets to meet Army requirements; and the attainment of 
     competition in future procurements of training rockets.
       The House bill contained no similar provision.
       The House recedes with an amendment.
       The conferees agree to authorize up to $10.0 million for 
     full qualification and operational platform certification of 
     a Hydra-70 rocket with a 2.75-inch rocket motor with 
     composite propellant, for use on the AH-64D Apache 
     helicopter.
     Limitation on obligation of funds until receipt of electronic 
         combat consolidation master plan (sec. 223)
       The conferees agree to a provision that limits the 
     obligation of appropriations for PE 65896A, PE 65864N, PE 
     65807F, and PE 65804D until 14 days after the Department of 
     Defense submits to the congressional defense committees its 
     master plan for the consolidation of electronic combat test 
     and evaluation assets.
       The House report (H. Rept. 103-499) directed the Secretary 
     of Defense to develop a master plan for future consolidation 
     of all DOD electronic combat test and evaluation assets. 
     Further, the House report directed that no fiscal year 1995 
     or prior year funds be used to transfer or consolidate 
     electronic combat test and evaluation assets until 30 days 
     after the submission of the master plan to the congressional 
     defense committees. To date, the master plan has not been 
     provided to the congressional defense committees and funds 
     continue to be obligated for purposes that contravene the 
     House report language.
     Requirement for report on reductions in research, 
         development, test, and evaluation (sec. 225)
       The conferees agree to a provision that requires the Under 
     Secretary of Defense (Comptroller) to submit a report to the 
     congressional defense committees by March 15, 1996 detailing 
     the allocation of the following reductions in research, 
     development, test, and evaluation required by the Department 
     of Defense Appropriations Act of 1996: (1) general 
     reductions; (2) reductions to reflect savings from revised 
     economic assumptions; (3) reductions to reflect the funding 
     ceiling for federally funded research and development 
     centers; and (4) reductions for savings through improved 
     management of contractor automatic data processing cost 
     charged through indirect rates on Department of Defense 
     acquisition contracts.
     Advanced field artillery system (Crusader) (sec. 226)
       The House bill contained a provision (sec. 255) that would 
     impose spending authority limitations on the Secretary of the 
     Army, unless certain technical performance criteria are 
     achieved in the Crusader program. The provision would permit 
     the Secretary to significantly alter the Crusader acquisition 
     plan for the cannon propellant, if it is required to achieve 
     the objectives of the Advanced Field Artillery System, 
     provided notification is given to the defense committees of 
     the Senate and House of Representatives.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would terminate 
     funding for the liquid propellant portion of the Crusader 
     program in the event that the Secretary fails to provide a 
     report to the congressional defense committees by August 1, 
     1996, documenting that significant progress has been made in 
     the liquid propellant and regenerative liquid propellant gun, 
     in accordance with the acquisition program baseline 
     objectives.
     Demilitarization of conventional munitions, rockets, and 
         explosives (sec. 227)
       The House bill contained a provision (sec. 263) that would 
     authorize $15.0 million for the establishment of an 
     integrated program for the development and demonstration of 
     environmentally compliant technologies for 

[[Page H616]]
     the demilitarization of conventional munitions, explosives, and rocket 
     motors, and indicated specific technologies that should be 
     considered in the program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delete 
     reference to specific technologies that should be considered 
     in the program. The amendment reflects a conference agreement 
     to authorize $15.0 million in PE 63104D for the Conventional 
     Munitions, Rockets, and Explosives Demilitarization account.
       The conferees are concerned about requirements for disposal 
     by the military services and defense agencies of growing 
     numbers of unserviceable, obsolete, or non-treaty compliant 
     munitions, rocket motors and explosives. As environmental 
     constraints increasingly restrict the traditional disposal 
     methods of open burning or open detonation, development and 
     demonstration of environmentally compliant technologies for 
     this purpose become even more urgent.
       The conferees believe that a centralized conventional 
     munitions and explosives disposal program should be 
     established for this purpose within the Department of Defense 
     (DOD) under a single program element, and that consideration 
     should be given to the model of the Large Rocket Motor 
     Demilitarization program, centrally managed by the Army as 
     executive agent, with the requirements of the military 
     services integrated through the Joint Ordnance Commanders' 
     Group. In such a program, the conferees encourage the 
     consideration of a range of competitively selected potential 
     resource recovery and alternative demilitarization 
     technologies, including (but not limited to) cryogenic 
     washout, supercritical water oxidation, molten metal 
     pyrolysis, plasma arc, catalytic fluid bed oxidation, molten 
     salt pyrolysis, plasma arc, catalytic fluid bed oxidation, 
     molten salt oxidation, incineration, critical fluid 
     extraction and ingredient recovery, and underground contained 
     burning.
       The conferees direct the Secretary of Defense to submit a 
     report of the DOD plan for the establishment of such a 
     program to the congressional defense committees by March 31, 
     1996.
     Defense airborne reconnaissance program (sec. 228)
       The budget request included $525.2 million for research and 
     development for the Defense airborne reconnaissance program 
     (DARP).
       The House bill would add a total of $121.6 million to the 
     requested amount. The Senate amendment would increase the 
     request by $33.0 million. Details of the adjustments in the 
     House bill and the Senate amendment, as well as the final 
     conference agreement, are displayed in the table below:

------------------------------------------------------------------------
                                Budget     House     Senate   Conference
                                request    bill    amendment   agreement
------------------------------------------------------------------------
      Total..................    $525.2   +$121.6     +$33.0    +$114.8 
                              ------------------------------------------
UAV programs:                                                           
  Joint tactical maneuver....  ........     -36.8  .........      -10.0 
    Hunter...................  ........  ........  .........  ..........
    Navy variant (VTOL)......  ........  ........  .........      +12.5 
  Tier II....................  ........     +25.9  .........      +25.3 
  Tier II+...................  ........     +60.0  .........  ..........
  Tier III...................  ........     +35.0  .........      +18.0 
U-2 upgrade programs:                                                   
  SYERS......................  ........     +14.0  .........      +14.0 
  Defensive systems..........  ........  ........      +13.0      +10.0 
  SIGINT.....................  ........  ........      +20.0      +20.0 
  PGMs.......................  ........       -10  .........  ..........
Other programs:                                                         
  CIGGS......................  ........     +16.0  .........      +11.0 
  Common data link...........  ........      +0.5  .........  ..........
  EO framing sensors.........  ........      +5.0  .........       +7.0 
  MSAG.......................  ........     +12.0  .........       +8.0 
------------------------------------------------------------------------

               MANNED AND UNMANNED RECONNAISSANCE SYSTEMS

       The conferees remain optimistic about the future 
     contributions of unmanned aerial vehicle (UAV) systems to the 
     Department of Defense's (DOD) reconnaissance missions. 
     However, the conferees remain unwilling to sacrifice proven 
     manned systems in the near-term for the promise of unproven 
     future systems. Further, the conferees believe five major UAV 
     programs are overly redundant. The conferees are aware of the 
     Department's intent to reduce the number of UAVs to satisfy 
     the tactical, theater, and strategic missions. The conferees 
     agree that it is important for the Department to satisfy 
     these three distinct missions.
       Further, the conferees believe the Department's endurance 
     UAV programs must be viewed in the larger context of the 
     broad area search/wide area surveillance missions. The 
     conferees are concerned that the current and projected array 
     of sensors (including Tier II+ and Tier III- UAVs, SR-71, U-
     2, and national systems) are not simply ``complementary'', 
     but are ``duplicative''. The conferees will, therefore, 
     remain extremely interested in the Department's future 
     directions with respect to high altitude endurance UAV 
     efforts.


                              MANEUVER UAV

       The budget request included $36.8 million for the maneuver 
     UAV.
       The House will would deny any authorization for the 
     maneuver UAV because the Department had failed to provide 
     either a joint operational requirements document (JORD) or a 
     cost and operational effectiveness analysis (COEA) in a 
     timely manner.
       The Senate amendment would approve the budget request.
       The conferees agree to authorize $26.8 million for the 
     maneuver UAV. The conferees are disappointed that the 
     Department took so long to complete the JORD and the COEA. 
     The conferees hope that the results of the ongoing review of 
     the various UAV programs will be provided to the 
     congressional defense and intelligence committees in a more 
     timely fashion.


                           joint tactical uav

       The conferees remain particularly concerned about the 
     Department's inability to develop and pursue a cohesive joint 
     tactical UAV (JT-UAV) master plan for longer than a four 
     month period. The conferees direct the Department not to use 
     appropriated fiscal year 1996 funds to procure production 
     Hunter UAV systems or additional low rate initial production 
     units beyond those already ordered. The conferees intend that 
     this prohibition remain in effect until the Department 
     provides the congressional defense and intelligence 
     committees with the results of its UAV program review. 
     Accordingly, if the Department's review results in the 
     cancellation of one or more of the currently planned UAV 
     programs, the conferees direct the Department to seek 
     reprogramming actions to use those funds to satisfy other 
     CINC near-term reconnaissance support requirements. Any funds 
     made available as a result of Department decisions on UAVs 
     will remain within the DARP account. Of any resources made 
     available from UAV restructuring, the conferees direct that 
     the Department use them to fully fund the U-2 sensor upgrades 
     described later in this section. Any additional excess 
     resources over those used for U-2 sensor upgrades may be used 
     for the naval variant (VTOL). Further, the conferees 
     specifically deny authorization of any fiscal year 1996 funds 
     for marinization of the Hunter UAV.


                           naval variant uav

       The conferees agree that development and evaluation of a 
     joint tactical UAV (JT-UAV) short or vertical take-off and 
     landing (STOL/VTOL) variant for naval applications should be 
     continued and structured on existing successful efforts. The 
     conferees agree to authorize an additional $12.5 million to 
     support continued development and evaluation of VTOL JT-UAV 
     variants, as detailed in the Senate report (S. Rept. 104-
     112). The conferees intend that the Department limit its air 
     vehicle evaluation to items that are low risk, currently 
     available off-the-shelf, and have the demonstrated potential 
     to meet joint tactical UAV interoperability and performance 
     requirements.


                medium altitude endurance uav (predator)

       The House bill would authorize an additional $25.9 million 
     for the Tier II medium altitude endurance UAV (Predator).
       The Senate amendment included a provision (sec. 131) that 
     would deny funds for the Tier II system.
       The Senate recedes.
       The conferees agree to authorize an additional $25.3 
     million for another Predator system (air vehicles and ground 
     station) and replacement air vehicles. The conferees are 
     encouraged by the successes of the Predator advanced concept 
     technology program, and particularly by the theater 
     commanders' praise for its contributions in the Bosnia area. 
     The conferees strongly support continuation of this ACTD, and 
     encourage the Department to take the necessary steps to make 
     a full production decision. The conferees believe this 
     vehicle could satisfy multiple operational roles, including 
     the theater and maritime roles. The conferees encourage the 
     Department to develop plans for a maritime use of this 
     vehicle. Such planning should include conducting an 
     operational demonstration at sea. Finally, the conferees 
     agree to authorize all prior year allocated funds.


                      HIGH ALTITUDE ENDURANCE UAVS

       The House bill would authorize an additional $60.0 million 
     for the Tier II+ and $35.0 million for the Tier III-.
       The Senate amendment would authorize the budget request for 
     both programs.
       The House recedes on Tier II+. The Senate recedes on the 
     Tier III-. The conferees agree to authorize an additional 
     $18.0 million for Tier III-.
       As with the JT-UAV, the conferees expect the Department to 
     make acquisition decisions on this issue based on operational 
     requirements. However, the conferees emphasize that the 
     Department needs a more capable, low observable vehicle. The 
     conferees agree that the Department should use the additional 
     $18.0 million for Tier III- to buy the third air vehicle in 
     fiscal year 1996, instead of fiscal year 1997. The conferees 
     direct the Department to provide the congressional defense 
     and intelligence committees with a report on the operational 
     user needs for such a vehicle. If the current estimate of the 
     Tier III- system capabilities fall short of those needs, the 
     Department should outline its technical proposals to improve 
     this vehicle, in response to those user requirements.


                          U-2 SENSOR UPGRADES

       The House bill would authorize an additional $14.0 million 
     to upgrade all Senior Year electro-optical reconnaissance 
     sensors (SYERS) to the newest configuration, upgrade existing 
     ground stations, and improve geolocational accuracy through 
     various product improvements.
       The Senate amendment would authorize an additional $20.0 
     million to initiate the remote airborne SIGINT system upgrade 
     program.
       The Senate report (S. Rept. 104-112) contained a technical 
     error in the table for Research, Development, Test, and 
     Evaluation (RDT&E), Defense-Wide, that shows an increase in 
     the DARP PE 35154D, line 102, rather than in line 124. This 
     error was facilitated 

[[Page H617]]
     by the Department's budget exhibit for RDT&E programs (R-1) in which 
     both of these budget lines are associated with the same 
     program element. The conferees encourage the Defense Airborne 
     Reconnaissance Office (DARO) to carry a single R-1 line for 
     an individual program element in the future.
       The conferees view with concern the DARO's lack of emphasis 
     on manned reconnaissance upgrades, and include a provision 
     that requires the Director of the DARO to expeditiously carry 
     out those upgrades. The conferees agree to authorize $34.0 
     million to meet U-2 sensor upgrade requirements, and direct 
     the Secretary of Defense to provide a report on the 
     Department's plans to obligate funds for U-2 upgrades prior 
     to February 1, 1996.


                         U-2 DEFENSIVE SYSTEMS

       The conferees agree to authorize $10.0 million to upgrade 
     U-2 defensive systems for the purposes specified in the 
     Senate Report (S. Rept. 104-112).


              COMMON IMAGERY GROUND/SURFACE SYSTEM (CIGSS)

       The budget request included $161.8 million for the CIGSS 
     effort.
       The House bill would authorize an additional $16.0 million. 
     This increase would be used to mitigate a near-term funding 
     shortfall for DARO's ``migration'' of the various imagery 
     ground stations to a common architecture.
       The Senate amendment would approve the budget request.
       The conferees agree to authorize an additional $11.0 
     million for this effort.


                       INTELLIGENCE DISSEMINATION

       The budget request included funds for numerous intelligence 
     dissemination systems and data links.
       The House bill would restrict the use of funds pending the 
     Department's development of a coherent, long-term 
     intelligence dissemination architecture and a plan for 
     development of a joint tactical transceiver (JTT).
       The Senate amendment would authorize the requested amounts.
       The House recedes.
       The conferees are pleased with the Department's response to 
     the House bill provision. The conferees believe that the 
     Department is moving in the right direction to ensure service 
     interoperability and to reduce the number of unique tactical 
     intelligence transceivers. Additionally, the conferees are 
     aware that the Assistant Secretary of Defense for Command, 
     Control, Communications, and Intelligence is monitoring 
     efforts to develop advanced software reprogrammable radios. 
     The conferees strongly encourage continued involvement in 
     this technology development, as it appears to have great 
     potential for future application in the JTT program. The 
     conferees will continue to monitor the progress of the 
     Department's approach.


               ELECTRO-OPTICAL FRAMING SENSOR DEVELOPMENT

       The House would authorize an additional $5.0 million to 
     continue development and evaluation of airborne electro-optic 
     framing sensor and multi-spectral framing technologies with 
     on-chip forward motion compensation. These improved 
     capabilities could be used to support precision targeting.
       The Senate amendment included no similar adjustment.
       The conferees agree to authorize $7.0 million for this 
     purpose.
       The conferees are pleased with the results of the four 
     million picture element (four mega-pixel) framing 
     demonstration. The conferees encourage the Department to 
     program funding to accelerate the four mega-pixel and the 25 
     mega-pixel sensor initiatives.


              MULTI-FUNCTION SELF-ALIGNED GATE TECHNOLOGY

       The conferees agree to authorize $8.0 million for multi-
     function self-aligned gate (MSAG) technology for the purposes 
     specified in the House report (H. Rept. 104-131).


                   JOINT AIRBORNE SIGINT ARCHITECTURE

       The budget request included $88.8 million for the joint 
     airborne signals intelligence (SIGINT) architecture (JASA) 
     program.
       The House bill would restrict obligation of fiscal year 
     1996 funds for JASA to no more than 25 percent of available 
     funds until the Department submits an analysis and report 
     that includes a comparison of future years defense programs 
     (FYDP) and life cycle costs for development and fielding of 
     the joint airborne SIGINT system (JASS), and that address a 
     more conventional, evolutionary, product-improvement 
     approach.
       The Senate amendment would authorize the requested amount.
       The House recedes on the funding restrictions.
       Despite their support for the evolving concept and 
     development of JASA, the conferees remain concerned about 
     several issues:
       (1) the Department's ability to sustain current operational 
     systems;
       (2) elimination of the potential for airborne SIGINT 
     modernization gaps prior to fielding JASA components;
       (3) the projected costs of the JASS program; and
       (4) the risk that current approaches may sacrifice near and 
     mid-term operational requirements for promised long-term 
     common solutions.
       The conferees believe that there is a need to continue 
     interim, affordable, incremental upgrades, and to provide 
     quick reaction capability improvements to meet emerging 
     requirements, while continuing the JASA architectural 
     approach. The conferees encourage competitive evolutionary 
     solutions to satisfy existing and projected SIGINT 
     requirements, and urge the earliest delivery of 
     architecturally compliant components for evolving current and 
     future systems. The conferees expect future budget requests 
     for the DARO to include funding for these efforts. The 
     conferees direct the DARO Director to certify to the 
     congressional defense and intelligence committees that the 
     individual SIGINT systems will be upgraded to incorporate 
     these interim needs, as identified by the operational users.
       The conferees direct the Department to provide an interim 
     report by March 1, 1996, with a completed report by August 1, 
     1996, that includes:
       (1) an independent cost and operational effectiveness 
     analysis that compares the FYDP and life-cycle costs of the 
     JASS program to an evolutionary product improvement approach, 
     based on equivalent system performance;
       (2) an evaluation of cost, technical and schedule risks, as 
     well as a comparison of technical requirements and JASS 
     performance; and
       (3) the Department's assessment of its ability to predict 
     both the future threat and technology environments necessary 
     to determine whether a single approach is viable and in the 
     nation's best interests.
       Finally, to ensure that there are no airborne SIGINT 
     capability gaps during the transition to JASA, DARO is 
     directed to determine and implement necessary quick-reaction 
     improvements to existing airborne systems. The conferees 
     intend that the Department pursue a balanced approach to JASA 
     development that allows the services to program funds for 
     such evolutionary upgrades, provided there is compliance with 
     an overall migration to the JASA architecture.
     Ballistic missile defense policy (secs. 231-253)
       The House bill contained eight provisions (secs. 231-238) 
     that collectively would be called the ``Ballistic Missile 
     Defense Act of 1995.'' The House bill contained four 
     additional provisions (secs. 241-244) that would also deal 
     with matters related to ballistic missile defense (BMD).
       The Senate amendment contained eleven provisions (secs. 
     231-241) that collectively would be called the ``Missile 
     Defense Act of 1995.'' The Senate amendment contained two 
     additional provisions (secs. 227 and 243) that would also 
     deal with matters related to BMD.
       The conference agreement combines the House and the Senate 
     BMD provisions into two subtitles as described below.

           Subtitle C--Ballistic Missile Defense Act of 1995

     Short title (sec. 231)
       The House bill contained a provision (sec. 231) that would 
     entitle this group of provisions the ``Ballistic Missile 
     Defense Act of 1995.''
       The Senate amendment contained a provision (sec. 231) that 
     would use a different title--``Missile Defense Act of 
     1995''--reflecting the fact that the Senate version included 
     a provision dealing with cruise missile defense.
       The Senate recedes.
     Findings (sec. 232)
       The Senate amendment contained a provision (sec. 232) that 
     would establish a series of congressional findings as the 
     rationale for developing and deploying theater and national 
     ballistic missile defenses.
       The House bill contained a provision (sec. 242) that would 
     make several similar findings.
       The House recedes with an amendment merging the House and 
     Senate findings.
     Ballistic Missile Defense Policy (sec. 233)
       The House bill contained a provision (sec. 232) that would 
     establish a United States policy to: (1) deploy at the 
     earliest practical date highly effective theater missile 
     defenses; and (2) deploy at the earliest practical date a 
     national missile defense (NMD) system that is capable of 
     providing a highly effective defense of the United States 
     against limited ballistic missile attacks.
       The Senate amendment contained a similar provision (sec. 
     233) that would establish a United States policy to: (1) 
     deploy as soon as possible affordable and operationally 
     effective theater missile defenses; (2) develop for 
     deployment a multiple-site national missile defense system 
     (that can be augmented to a layered defense over time) while 
     initiating negotiations to amend the Anti-Ballistic Missile 
     (ABM) Treaty; (3) ensure congressional review prior to a 
     decision to deploy the NMD system; (4) improve existing 
     cruise missile defense systems and deploy as soon as 
     practical defenses against advanced cruise missiles; (5) 
     pursue a focused research and development program to provide 
     follow-on ballistic missile defense options; (6) employ 
     streamlined acquisition procedures in developing and 
     deploying missile defenses; (7) seek a cooperative transition 
     to a regime that does not feature mutual assured destruction 
     and an offense-only form of deterrence as the basis for 
     strategic stability; and (8) carry out the policies, 
     programs, and requirements of the Missile Defense Act through 
     processes specified within, or consistent with, the ABM 
     Treaty.
       The House recedes with an amendment to establish a United 
     States policy to: (1) deploy affordable and operationally 
     effective 

[[Page H618]]
     theater missile defenses to protect forward-deployed and expeditionary 
     elements of the armed forces of the United States and to 
     complement and support the missile defense capabilities of 
     the forces of coalition partners and allies of the United 
     States; and (2) seek a cooperative transition to a regime 
     that does not feature mutual assured destruction and an 
     offense-only form of deterrence as the basis of strategic 
     stability.
     Theater Missile Defense Architecture (sec. 234)
       The House bill contained a provision (sec. 233) that, in 
     part, would direct the Secretary of Defense to develop and 
     deploy at the earliest practical date advanced theater 
     missile defense (TMD) systems. The House bill contained 
     another provision (sec. 236) that would establish a ballistic 
     missile defense program accountability report.
       The Senate amendment contained a provision (sec. 234) that 
     would provide detailed policy guidance related to theater 
     missile defense. The provision would establish a core theater 
     missile defense program (the Theater High Altitude Area 
     Defense system, the Navy Upper Tier system, the Patriot PAC-3 
     system, and the Navy Lower Tier system) with programmatic 
     milestones for each core system, require that the systems in 
     the core program be interoperable and mutually supporting, 
     establish guidelines for creating new core systems, and 
     require the Secretary of Defense to provide the congressional 
     defense committees a TMD Architecture report along with the 
     fiscal year 1997 budget submission.
       The House recedes with an amendment to integrate elements 
     of the House's ballistic missile defense program 
     accountability provision into a revised TMD reporting 
     requirement, and to make technical and clarifying changes. 
     Included is a requirement that the Secretary of Defense 
     report on the following matters to the Senate Committee on 
     Armed Services and the House Committee on National Security 
     whenever the Secretary issues an ABM Treaty compliance 
     certification for any TMD system: (1) the compliance policy 
     applied in preparing such a certification; (2) how the policy 
     applied differs from the policy stated in section 235(b)(1) 
     of this Act (the so-called ``demonstrated standard''); and 
     (3) how the application of that compliance policy (rather 
     than the ``demonstrated standard'') will affect the cost, 
     schedule, and performance of the TMD system being considered.
     Prohibition on use of funds to implement an international 
         agreement concerning theater missile defense systems 
         (sec. 235)
       The House bill contained a provision (sec. 235) that would 
     establish a theater missile defense demarcation standard (the 
     so-called ``demonstrated standard'' based on the range and 
     speed of the target) and would prohibit the obligation or 
     expenditure of funds appropriated for the Department of 
     Defense to implement or employ any other standard.
       The Senate amendment contained a related provision (sec. 
     238) that would: (1) express the sense of Congress that the 
     ``demonstrated standard'' is the appropriate standard for 
     defining a TMD demarcation; and (2) prohibit the use of funds 
     appropriated for the Department of Defense in fiscal year 
     1996 to implement an international agreement that is 
     inconsistent with this standard, unless such agreement 
     receives Senate advice and consent to ratification, or is 
     specifically approved in a subsequent Act.
       The House recedes with a clarifying amendment.
     Ballistic missile defense cooperation with allies (sec. 236)
       The House bill contained a provision (sec. 242) that, in 
     part, would endorse cooperation in the area of ballistic 
     missile defense between the United States and its allies and 
     coalition partners, and that would urge the President to: (1) 
     pursue high-level discussions with allies of the United 
     States and selected other states on the means and methods by 
     which the parties can cooperate in the development, 
     deployment, and operation of ballistic missile defenses; (2) 
     take the initiative within the North Atlantic Treaty 
     Organization to develop a consensus for deployment of BMD by 
     the Alliance; and (3) seek agreement with U.S. allies and 
     selected other states on steps the parties can take to reduce 
     the risks posed by the threat of limited ballistic missile 
     attacks.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to include the House 
     language on BMD cooperation with allies as a free-standing 
     provision.
     ABM Treaty Defined (sec. 237)
       The House bill contained a provision (sec. 237) that would 
     define the ABM Treaty.
       The Senate amendment contained a similar provision.
       The Senate recedes with a technical amendment.
     Repeal of Missile Defense Act of 1991 (sec. 238)
       The House bill contained a provision, (sec. 238) that would 
     repeal the Missile Defense Act of 1991.
       The Senate amendment contained a similar provision (sec. 
     241(1)).
       The Senate recedes.

         Subtitle D--Other Ballistic Missile Defense Provisions

     Ballistic Missile Defense Program Elements (sec. 251)
       The Senate amendment contained a provision (sec. 239) that 
     would establish seven program elements for the Ballistic 
     Missile Defense Organization's budget.
       The House bill contained no similar provision.
       The House recedes with an amendment creating eight program 
     elements.
     Testing of theater missile defense interceptors (sec. 252)
       The House bill contained a provision (sec. 243) that would 
     amend subsection (a) of section 237 of Public Law 103-160, 
     pertaining to the testing of theater missile defense 
     interceptors.
       The Senate amendment contained a similar provision (sec. 
     227) that also would relate to the testing of theater missile 
     defense interceptors.
       The Senate recedes.
     Repeal of missile defense provisions (sec. 253)
       The Senate amendment contained a provision (sec. 241) that 
     would repeal ten outdated BMD-related provisions of law.
       The House bill contained a similar provision (sec. 244) 
     that would repeal six outdated BMD-related provisions of law.
       The House recedes with an amendment. The Conferees agree to 
     repeal nine outdated BMD-related provisions of law.

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

     Precision guided munitions (sec. 261)
       The Senate amendment contained a provision (sec. 215) that 
     would require the Secretary of Defense, not later than 
     February 1, 1996, to submit a report that contains an 
     analysis of the full range of precision guided munitions 
     (PGM) in production, and in research, development, test and 
     evaluation. The analysis would address the following:
       (1) The types of precision guided munitions needed to 
     destroy various service target classes;
       (2) The feasibility of joint development programs to meet 
     the needs of various Services; and
       (3) The economy and effectiveness of continued acquisition 
     of ``interim'' PGMs.
       The House bill contained no legislative provision on PGMs, 
     but directed the Secretary to conduct a similar analysis in 
     its report (H. Rept. 104-131) accompanying the bill.
       The conferees agree to the Senate provision, with an 
     amendment that would extend the reporting deadline to April 
     15, 1996.
     Review of C4I by National Research Council (sec. 262)
       The House bill contained a provision (sec. 256) that would 
     direct the Secretary of Defense to enter into a contract with 
     the National Research Council of the National Academy of 
     Sciences to conduct a review of Department of Defense 
     programs for command, control, communications, computers, and 
     intelligence. The study would be conducted over a two-year 
     period and $900.0 thousand would be available for the cost of 
     the study.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Analysis of consolidation of basic research accounts of 
         military departments (sec. 263)
       The House bill contained a provision (sec. 252) that would 
     direct the Secretary of Defense to fund the equivalent of a 
     cost and operational effectiveness study of the consolidation 
     of the indivdiual services' basic research accounts to 
     determine potential infrastructure savings.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Change in the annual reporting period, from calendar to 
         fiscal year, on certain contracts with colleges and 
         universities. (sec. 264)
       The House bill contained a provision (sec. 253) that would 
     amend section 2361 of title 10, United States Code, to change 
     the annual reporting period from the preceding ``calendar'' 
     year to each preceding ``fiscal'' year on the use of 
     competitive procedures for awards of research and development 
     contracts, and the award of construction contracts to 
     colleges and universities.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Aeronautical research and test capabilities assessment (sec. 
         265)
       The House bill contained a provision (sec. 260) that would 
     require the Secretary of Defense to assess aeronautical 
     research and test facilities and capabilities of the United 
     States, and to provide a report to the congressional defense 
     committees detailing the findings and recommendations of the 
     assessment.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                       Subtitle F--Other Matters

      Advanced lithography program (sec. 271)
       The House bill contained a provision (sec. 214) that would 
     amend section 216 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337). The provision 
     would permit the Director of the Advanced Research Projects 
     Agency (ARPA) to consider Semiconductor Industry Association 
     and Semiconductor Technology Council recommendations as 
     advisory and would allow ARPA to establish priorities and 
     funding levels for the program, consistent with the best 
     interests of national security. The provision would also add 
     a goal that the program ensure that the use of lithographic 
     processes, being developed by American-owned manufacturers in 
     the United States, would lead to superior performance 
     electronics systems for the Department of Defense.
     
[[Page H619]]

       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify the 
     term ``American-owned manufacturer'' to mean that it would be 
     consistent with the definition of ``United States-owned 
     company'' and ``United States incorporated company'' in 
     section 278 (n) of title 15, United States Code.
     Enhanced fiber optic guided missile system (sec. 272)
       The House bill contained a provision (sec. 215) that would 
     require the Secretary of the Army to certify whether there is 
     a requirement for the enhanced fiber optic guided missile 
     (EFOG-M) system, and whether there is a cost and 
     effectiveness analysis supporting such requirement. The 
     provision would also limit funding for the EFOG-M program if 
     the test of operational missiles and associated fire units 
     are not delivered on time and within current cost estimates.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     certification of the Secretary of the Army regarding a 
     requirement and a cost and effectiveness analysis to support 
     the requirement for the EFOG-M system to be provided 
     following completion of the Advanced Concept Technology 
     Demonstration (ACTD), instead of before the ACTD, as proposed 
     by the House.
     States eligible for assistance under Defense Experimental 
         Program to Stimulate Competitive Research (DEPSCoR) (sec. 
         273)
       The Senate amendment contained a provision (sec. 220) that 
     would modify the graduation criteria for states participating 
     in the Department of Defense EPSCoR program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide for 
     the use of a three year average to determine, on a state-by-
     state basis, whether a state institution of higher learning 
     receives 60 percent of the average amounts for research and 
     engineering obligated by the Department of Defense.
     Cruise missile defense initiative (sec. 274)
       The Senate amendment contained a provision (sec. 236) that 
     would establish a cruise missile defense initiative. The 
     provision would require the Secretary of Defense to 
     strengthen and coordinate the cruise missile defense programs 
     of the Department of Defense, and provide Congress with a 
     report describing the Secretary's plans for implementing this 
     provision.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     University research initiative support program (sec. 275)
       The House bill contained a provision (sec. 254) that would 
     amend Section 802 of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160). The provision 
     would change the university research initiative support 
     program from a mandatory program to a voluntary program and 
     provide for improved review procedures.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Revisions of manufacturing of science and technology program 
         (sec. 276)
       The House bill contained a provision that would eliminate 
     the technology-based focus for the manufacturing of science 
     and technology program, and provide new emphasis on near-term 
     cost reduction applications. The provision would also require 
     a larger non-federal government cost share for 25 percent of 
     the program appropriation, and eliminate cost share for 
     academic institutions.
       The Senate amendment contained a provision (sec. 222) that 
     would amend section 2525 of title 10, United States Code, in 
     two ways. The provision clarified the role of the Joint 
     Directors of Laboratories in establishing the Manufacturing 
     Science and Technology Program. The provision included a 
     requirement that manufacturing equipment producers be more 
     directly involved in projects funded under this program.
       The conferees agree to an amendment that would combine the 
     House and Senate provisions.
       The conferees support the transfer of the MANTECH program 
     from advanced development to a Research, Development, Test & 
     Evaluation (RDT&E) production support account to ensure 
     direct impact of manufacturing technology on reduction of 
     production and repair costs for todays systems. However, the 
     conferees direct that a balance be maintained between near-
     term manufacturing solutions for weapons systems and the long 
     range manufacturing design needs, such as implementing 
     Integrated Products and Process Development (IPPD) in future 
     systems.
       The conferees would include the House provision to set 
     aside 25 percent of the funding for the manufacturing 
     technology program for entering into contracts and 
     cooperative agreements, on a cost-share basis, in which the 
     ration of funding provided by non-federal and federal 
     participants is 2 to 1. The conferees have included a 
     provision that would allow the Under Secretary of Defense for 
     Acquisition and Technology to waive the requirement after 
     July 15 of each fiscal year. The conferees direct that 
     contracts and cooperative agreements awarded to meet this 
     requirement be on a project-by-project basis. The conferees 
     direct that the Department maximize the number of contracts 
     and cooperative agreements, to the extent practicable.
       The conferees expect the Department of Defense and the 
     services to request an aggressive fiscal year 1997 MANTECH 
     budget that reflects program needs. As a goal, the Department 
     should consider funding this program at approximately one 
     percent of the services' RDT&E budgets. The conferees also 
     believe that the Secretary of Defense should place the 
     highest priority on addressing the management and budget 
     process issues that have adversely affected the MANTECH 
     program.
     Five-year plan for consolidation of defense laboratories and 
         test and evaluation centers (sec. 277)
       The House bill contained a provision (sec. 259) that would 
     require the Secretary of Defense to prepare a five year 
     strategic plan to consolidate and restructure the 
     Department's research and development laboratories and test 
     and evaluation centers.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to include additional 
     study parameters and to adjust the limitation on funding 
     obligations; from 40 percent to 75 percent for the central 
     test and evaluation investment development program pending 
     submission of the report to Congress.
     Limitation on T-38 avionics upgrade program (sec. 278)
       The House bill contained a provision (sec. 261) that would 
     allow the Department of the Air Force to consider foreign 
     companies for the award of the contract for the T-38 aircraft 
     avionics upgrade program only if such companies are 
     headquartered in countries that allow equal access to United 
     States companies for such contracts.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Global Positioning System (sec. 279)
       The Senate amendment contained a provision (sec. 1081) that 
     would require the Secretary of Defense to suspend use of the 
     selective availability feature of the Global Positioning 
     System (GPS) by May 1, 1996, unless the Secretary develops a 
     plan for dealing with the challenges associated with GPS 
     jamming and denial.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Army support for the National Science Center for 
         Communications and Engineering (sec. 280)
       The Senate amendment contained a provision (sec. 1085) that 
     would modify the authority of the Army to provide support to 
     the National Science Center outreach program.
       The House bill contained no similar provision.
       The House recedes.


                   legislative provisions not adopted

     Maneuver variant unmanned aerial vehicle
       The House bill contained a provision (sec. 212) that would 
     prohibit the obligation of funds appropriated or otherwise 
     made available pursuant to authorizations in fiscal year 1996 
     for the Maneuver Variant Unmanned Aerial Vehicle.
       The Senate amendment contained no similar provision.
       The House recedes.
     National missile defense
       The House bill contained a provision (sec. 233) that, in 
     part, would direct the Secretary of Defense to develop for 
     deployment at the earliest practical date a national missile 
     defense system consisting of: (1) up to 100 ground-based 
     interceptors at a single site or a greater number of 
     interceptors at a number of sites, as determined necessary by 
     the Secretary; (2) fixed, ground-based radars; (3) space 
     based sensors, including those sensor systems that are 
     capable of cuing ground-based interceptors and providing 
     initial targeting vectors; and (4) battle management, 
     command, control, and communications.
       The Senate amendment contained a provision (sec. 235) that 
     would direct the Secretary of Defense to take the following 
     steps regarding national missile defense (NMD): (1) develop 
     for deployment an affordable and operationally effective NMD 
     system (consisting of ground-based interceptors capable of 
     being deployed at multiple sites, ground-based radars, space-
     based sensors, and battle management, command, control, and 
     communications) to counter a limited, accidential, or 
     unauthorized ballistic missile attack, and which is capable 
     of attaining initial operational capability by the end of 
     2003; (2) develop an interim operational capability plan that 
     would give the United States the ability to field a limited 
     NMD system by the end of 1999; (3) prescribe and use 
     streamlined acquisition procedures; (4) employ additional 
     cost saving measures; and (5) report on his plan for NMD 
     deployment and an analysis of options for supplementing the 
     initial NMD architecture to improve cost and operational 
     effectiveness. The Senate amendment also contained a 
     provision (sec. 235(d)(2)) that would prohibit the use of 
     Minuteman boosters in any NMD architecture.
       The conference agreement does not include a provision on 
     national missile defense.
     Ballistic missile defense follow-on technology research and 
         development
       The House bill contained a provision (sec. 234) that would 
     provide guidance on follow-

[[Page H620]]
     on technology development for theater and national ballistic missile 
     defense programs.
       The Senate amendment contained no similar provision.
       The House recedes.
     Policy regarding the ABT Treaty
       The Senate amendment contained a provision (sec. 237) that 
     would clarify that the policies, programs, and requirements 
     of the ``Missile Defense Act of 1995'' (subtitle C of title 
     II of the Senate amendment) can be accomplished through 
     processes specified in the ABM Treaty, and that would express 
     the sense of Congress that the Senate should review the 
     continuing value and validity of the ABM Treaty.
       The House bill contained a provision (sec. 242(c)(2)) that 
     would urge the President to pursue high-level discussions 
     with Russia to amend the ABM Treaty.
       The conference agreement does not include either provision.
     Ballistic missile defense funding
       The House bill contained a provision (sec. 241) that would 
     authorize $3.070 billion in Defensewide research, 
     development, test, and evaluation (RDT&E) funds for ballistic 
     missile defense programs.
       The Senate amendment contained no similar provision.
       The House recedes. The conferees discuss funding for 
     ballistic missile defense programs elsewhere in this 
     Statement of Managers.
     Allocation of funds for medical countermeasures against 
         biowarfare threats
       The House bill contained a provision (sec. 251) that would 
     amend section 2370a of title 10, United States Code, to 
     permit the obligation or expenditure of up to 50 percent of 
     funds authorized for the medical component of the Department 
     of Defense Biological Defense Research program for product 
     development, or for research, development, test, or 
     evaluation of medical countermeasures related to mid-term or 
     far-term validated biowarfare threat agents.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note with concern that the recent progress in 
     bio-technology could potentially lead to the development of 
     new biological warfare agents and capabilities among 
     potential adversaries of the United States. The conferees 
     direct that the Department report to the congressional 
     defense committees by March 1, 1996 on the national security 
     threats posed by such potential developments of new agents 
     through advances in bio-technology and genetic engineering. 
     The report should also include recommendations related to 
     reducing the impact of progress in these areas, examine the 
     utility of increased emphasis on research and development of 
     medical countermeasures related to mid-term or far-term 
     biowarfare threat agents; and identify other measures that 
     could reduce the threat of these technological advances and 
     reduce the threat of biological agent and weapons 
     proliferation.
     Cross reference to congressional defense policy concerning 
         national technology and industrial base, reinvestment, 
         and conversion in operation of defense research and 
         development programs
       The House bill contained a provision (sec. 262) that would 
     cross-reference sections 2358(a)(2)(B) and 2371(a) with 
     section 2501 of title 10, United States Code, to encourage 
     the use of dual-use technology programs in defense research 
     and technology programs.
       The Senate amendment contained no similar provision.
       The House recedes.
     Fiber optic acoustic sensor system
       The budget request included $21.3 million in PE 63504N for 
     the advanced submarine combat systems development program.
       The House bill contained a provision (sec. 264) that would 
     authorize $28.2 million for the advanced submarine combat 
     systems development program in fiscal year 1996, including 
     $6.9 million for research and development for a fiber optic 
     acoustic sensor system and common optical towed array. The 
     provision also reduced funding for the advanced submarine 
     systems development program (PE 63561N) by $6.9 million.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees agree to the authorization of an additional 
     $6.9 million above the budget request in PE 63504N for 
     advanced development of fiber optic acoustic sensor systems, 
     including the development of common optical towed arrays.
     Joint targeting support system testbed
       The budget request included $141.4 million in PE 24229N for 
     the Tomahawk missile and the Tomahawk mission planning center 
     programs.
       The House bill contained a provision (sec. 265) that would 
     reallocate project funding within PE 24229N. The provision 
     would increase funding for Tomahawk theater mission planning 
     by $10.0 million in order to establish a joint targeting 
     support system testbed and would reduce funding for Tomahawk 
     missile development by $10.0 million, as an offset.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees agree to an additional authorization of $4.0 
     million in PE 24229N to initiate development of a joint 
     targeting support system testbed (JTSST) for demonstration of 
     potential joint targeting operations. The conferees 
     understand that an initial study would investigate the 
     relative roles of the existing systems installed in the 
     Tomahawk mission planning center and other mission planning 
     systems that are being developed by the individual military 
     services. It is recognized that these systems are projected 
     to have embedded precision weapons planning capabilities.
       The conferees expect that the results of the initial JTSST 
     study and follow-on demonstrations will contribute to the 
     definition of long-term objectives, guidelines, and schedule 
     milestones for convergence of the Navy/Marine Corps tactical 
     aircraft mission planning systems and the Air Force mission 
     support system, and should lead to the development of a joint 
     mission planning system architecture for the military 
     services.
       The conferees direct the Secretary of Defense to report to 
     the congressional defense committees as soon as possible, but 
     no later than the submission of the fiscal year 1998 budget 
     request. This report shall describe the Secretary's plan for 
     implementing the recommendations that result from the study.
     Battlefield Integration Center
       The Senate amendment contained a provision (sec. 201(4)(C)) 
     that would authorize the use of up to $25.0 million in 
     Defensewide research, development, test, and evaluation 
     (RDT&E) funds made available for Other Theater Missile 
     Defense activities for the Army's Battlefield Integration 
     Center (BIC).
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $21.0 
     million in PE 63308A for the BIC.
     Marine Corps shore fire support
       The Senate amendment contained a provision (sec. 213) that 
     would not allow more than fifty percent of the funds 
     appropriated in fiscal year 1996 for the Tomahawk Baseline 
     Improvement Program to be obligated until the Secretary of 
     the Navy certifies that a program has been established and 
     fully funded. That program would lead to a live fire test of 
     an Army Extended Range Multiple Launch Rocket from an Army 
     launcher on a Navy ship before October 1, 1997.
       The House bill contained no similar provision.
       The Senate recedes. Further guidance relative to the 
     consideration of the Army Extended Range Multiple Launch 
     Rocket System in the Navy Surface Fire Support program is 
     contained elsewhere in the Statement of Managers.
     Depressed altitude guided gun round (DAGGR)
       The budget request contained no funds for the depressed 
     altitude guided gun round (DAGGR).
       The Senate amendment contained a provision (sec. 225) that 
     would authorize $5.0 million for continued development of the 
     DAGGR system.
       The House bill contained no similar provision.
       The Senate recedes. DAGGR technology has indicated 
     potential capability which might be used to counter threats 
     such as 122-millimeter rockets and cruise missiles. The 
     conferees encourage the Secretary of the Army to include this 
     program in the fiscal year 1997 budget request, and, if 
     warranted, consider a reprogramming request to provide 
     funding for DAGGR in fiscal year 1996.
     Army echelon above corps communication
       The budget request included $5.9 million for Army echelon 
     above corps communications.
       The House bill would authorize the budget request.
       The Senate amendment included a provision (sec. 226) that 
     would provide an increase of $40.0 million to procure 
     additional communications equipment for the Army's echelons 
     above corps.
       The Senate recedes.
       The conferees agree to authorize the increase of $40.0 
     million for the procurement of additional communications 
     equipment for the Army's echelons above corps.
     Sense of the Senate on the Director of Operational Test and 
         Evaluation
       The Senate amendment contained a provision (sec. 242) that 
     would express a sense of the Senate that would discourage any 
     attempt to diminish or eliminate the Office of the Director 
     of Operational Test and Evaluation or its functions.
       The House bill contained no similar provision.
       The Senate recedes.
     Ballistic missile defense technology center
       The Senate amendment contained a provision (sec. 243) that 
     would establish a ballistic missile defense technology center 
     within the Space and Strategic Defense Command of the Army.
       The House bill contained no similar provision.
       The Senate recedes.

                  Title III--Operation and Maintenance

     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $91,634.4 million for Operation and 
     Maintenance in the Department of Defense and $1,852.9 for 
     Working Capital Fund Accounts in fiscal year 1996. The House 
     bill would authorize $94,420.2 million for Operation and 
     Maintenance and $2,452.9 for Working Capital Fund Accounts. 
     The Senate amendment would authorize $91,408.8 million for 
     Operation and Maintenance and $1,962.9 for Working Capital 
     Fund 

[[Page H621]]
     Accounts. The conferees recommended an authorization of $92,616.4 
     million for Operation and Maintenance and $1,902.9 for 
     Working Capital Fund Accounts for fiscal year 1996. Unless 
     noted explicitly in the statement of managers, all changes 
     are made without prejudice.

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     PACER COIN
       The budget request included $5.5 million in procurement and 
     $19.5 million in operations and maintenance funding for the 
     PACER COIN aircraft.
       The House bill would deny all funding, effectively 
     terminating this program.
       The Senate amendment would authorize the Department's 
     request.
       The House recedes.
       The conferees agree to authorize the budget request. 
     Nevertheless, the conferees have serious reservations about 
     whether the PACER COIN program, within its current mission 
     tasking, provides such unique intelligence collection as to 
     justify continued spending of limited resources on this 
     mission. However, the conferees agree that:
       (1) terminating the PACER COIN program immediately this 
     fiscal year would place unacceptable stresses on the 
     personnel system;
       (2) the Department has already obligated fiscal year 1996 
     funds for this mission; and
       (3) the Air Force would need funds to terminate the program 
     and provide proper aircraft/equipment disposition.
       The conferees direct the Department to determine whether or 
     not the PACER COIN aircraft could be used in a dual use role. 
     The conferees believe that the analysis should answer several 
     questions, including at least the following:
       (1) Could the aircraft be used, without certain PACER COIN 
     systems, in an air drop role?
       (2) Could the aircraft be configured to simultaneously 
     perform the PACER COIN mission and carry the SENIOR SCOUT 
     tactical intelligence system?
       (3) What alternatives are there for filling the 
     requirements of the regional Commander in Chief if the PACER 
     COIN program is terminated?
       (4) What would be the effects of failing to meet the 
     requirements of the regional Commander in Chief for the PACER 
     COIN capability?
       The conferees direct the Secretary of Defense to report to 
     the congressional defense and intelligence committees on the 
     results of this analysis by May 1, 1995.
       If the Department determines that dual use of the aircraft 
     is not practical, the conferees direct the Department to 
     determine proper disposition of the PACER COIN mission 
     aircraft (e.g. permanent aircraft storage or deconfiguration 
     from the current mission configuration).
       If the Department determines that dual use of the aircraft 
     is practical, and that the operational unit can fulfill 
     multiple missions, the conferees direct the department to:
       (1) maintain the PACER COIN aircraft in a reconfigurable 
     state for use in those multiple roles and retain the PACER 
     COIN mission equipment for future contingency or national 
     disaster mission uses; and
       (2) begin training for those appropriate new missions, 
     including air drop, as soon as possible to ensure a smooth 
     transition from the PACER COIN-unique mission.


                       items of special interest

     DBOF transfers
       The conferees reduced the civilian personnel funding 
     request by $226.0 million. Of this amount, the conferees 
     expect that $96.0 million will be realized from projected 
     savings from Defense Business Operations Fund (DBOF) 
     activities. The conferees direct that $96.0 million be 
     transferred from the DBOF to the accounts from which the 
     reductions are taken.
       The conferees also reduced the operation and maintenance 
     (O&M) accounts of the services by $180.0 million, in 
     anticipation of savings from efficiencies in the management 
     of Department of Defense inventories. The conferees direct 
     that $180.0 million be transferred from the DBOF to the 
     following O&M accounts: Army, $60.0 million; Navy, $60.0 
     million; Air Force, $60.0 million.
     Restriction on devolving the Defense Environmental 
         Restoration Account to the military services
       In a memorandum dated May 3, 1995, the Deputy Secretary of 
     Defense announced a proposal to devolve the Defense 
     Environmental Restoration Account (DERA), a single transfer 
     account administered by the Department of Defense, to four 
     separate transfer accounts administered by the individual 
     military services. The execution of the Deputy Secretary of 
     Defense's proposal would require modification of the DERA 
     statutory framework.
       The conferees are concerned the devolution of DERA would 
     impede congressional oversight of the management and use of 
     funds authorized for and appropriated to the account. In 
     relation to devolvement, the conferees desire a thorough 
     description of the means by which the Department of Defense 
     would ensure consistent funding and accountability for 
     environmental restoration activities. Moreover, the 
     Department of Defense needs to identify the monetary savings 
     and administrative efficiencies associated with DERA 
     devolvement. The Department of Defense also must specify 
     funding and staffing reductions for the office of the Deputy 
     Under Secretary of Defense for Environmental Security that 
     would result from DERA devolution.
       The conferees agree that, in the event that the Department 
     of Defense intends to pursue legislation to authorize 
     devolvement for fiscal year 1997, the Secretary of Defense 
     must submit a report to Congress, no later than March 31, 
     1996. The report should provide full justification for DERA 
     devolvement and address the matters outlined above. In the 
     absence of the requested information this year, the conferees 
     decline to authorize a change to the existing statutory 
     scheme for DERA at this time.
     National defense sealift fund


                                summary

       The budget request included $974.2 million in the national 
     defense sealift fund (NDSF) for the procurement of two new 
     strategic sealift ships, operations and maintenance of the 
     national defense reserve fleet (NDRF), acquisition and 
     modification of additional ships for the ready reserve force 
     (RRF) of the NDRF, and research and development of mid-term 
     sealift ship technologies.
       The House bill would authorize $974.2 million for the NDSF, 
     the budget request.
       The Senate amendment would authorize $1.08 billion for the 
     NDSF, an increase of $110.0 million. This increase would be 
     for the purpose of purchasing and converting one additional 
     ship for enhancement of the Marine Corps' maritime 
     prepositioning ship (MPS) program.
       The conferees agree to authorize $1.02 billion for the 
     NDSF, an increase of $50.0 million. Items of special interest 
     are discussed in the following sections.


                       national defense features

       The House bill did not authorize the $70.0 million included 
     in the NDSF budget request for the procurement and 
     modification of additional roll-on/roll-off (RO/RO) ships for 
     the RRF. Instead, it would authorize $70.0 million for the 
     procurement and installation of national defense features 
     (NDF) on commercial vehicle carriers built in and documented 
     under the laws of the United States, as required by section 
     2218, title 10, United States Code.
       The Senate amendment dealt with the $70.0 million included 
     in the NDSF budget request for the procurement and 
     modification of RRF RO/RO vessels as follows:
       (1) $20.0 million to modify RO/RO vessels purchased in 
     fiscal year 1995; and
       (2) $50.0 million to procure and install defense features 
     on commercial RO/RO vessels that would be built in United 
     States shipyards.
       The conferees agree that, of the amount authorized for the 
     NDSF, $50.0 million shall be for the procurement and 
     installation of NDF and $20.0 million shall be for 
     modification of the RRF RO/RO vessels purchased in fiscal 
     year 1995. The conferees also restrict the obligation of the 
     $20.0 million authorized for the modification of RRF RO/RO 
     vessels until 30 days after the Secretary of Defense has 
     notified the congressional defense committees that a NDF 
     program has been formally established and that at least $50.0 
     million has been made available to fund it.


                maritime prepositioning ship enhancement

       The budget request of $974.2 million for the national 
     defense sealift fund (NDSF) did not include funding for any 
     enhancements to the Marine Corps' maritime prepositioning 
     force.
       In order to continue a program initiated last year, the 
     Senate amendment would authorize $110.0 million above the 
     NDSF budget request to purchase and convert an additional MPS 
     ship.
       The House bill would authorize the budget request. It did 
     not address the issue of MPS enhancement.
       The conferees would not authorize funds for MPS enhancement 
     in the conference agreement. However, the conferees reaffirm 
     their strong support for the MPS enhancement program. This 
     program will enable the Marine Corps to add additional tanks, 
     an expeditionary airfield, additional Navy construction 
     battalion equipment, a fleet hospital, and other supplies to 
     each MPS squadron, to better sustain the Marine Corps as an 
     expeditionary force.
       The conferees believe that there are substantial benefits 
     inherent in an MPS enhancement program. Consequently, the 
     conferees are troubled by the department's failure to include 
     funding for a second MPS enhancement ship in the fiscal year 
     1996 budget request, and by the lack of progress in acquiring 
     and converting the MPS enhancement ship authorized and 
     appropriated in fiscal year 1995.
       The conferees note, however, that the Navy appears to have 
     made some recent progress in developing a well-defined 
     program. In view of the above, the conferees strongly 
     encourage the Secretary of Defense to accelerate the pace at 
     which additional sealift capability is acquired (to include 
     funding for a second MPS enhancement ship in fiscal year 
     1997). However, the conferees expect the Secretary to adhere 
     to the prepositioning, surge, and RRF priorities established 
     by the Mobility Requirements Study (MRS) and validated by the 
     MRS Bottom Up Review Update.
       The conferees also expect the Navy to aggressively pursue 
     all possible procurement options, including multi-ship and 
     commercial procurement, to achieve the cost savings 
     associated with the acquisition, conversion, and delivery of 
     MPS enhancement vessels. The Secretary of Defense is directed 
     to report on the progress made in meeting this goal when he 
     submits the fiscal year 1997 budget request.


                 advanced submarine technology research

       The conferees agree that, of the amount appropriated for 
     fiscal year 1996 for the NDSF, $50.0 million shall be 
     available only for the Director of the Advanced Research 
     Projects Agency for advanced submarine technology activit

[[Page H647]]
     ies.
     National Security Agency oversight
       The budget request included $5.0 million in operations and 
     maintenance (O&M) funds and 82 new personnel billets for 
     National Security Agency (NSA) oversight of tactical signals 
     intelligence (SIGINT) system development.
       The House bill would not authorize the $5.0 million O&M 
     request.
       The Senate amendment would authorize the budget request.
       The conferees question the necessity for 82 persons to 
     perform a function that could be significantly facilitated by 
     automation and improved electronic connectivity, but 
     recognize both the importance of the program and the 
     commitment of the Deputy Secretary of Defense and the 
     Director of NSA to this effort. Accordingly, the conferees 
     agree to authorize the budget request, but direct that the 82 
     billets be transferred from the Consolidated Cryptological 
     Program (CCP) to the Defense Cryptological Program (DCP), 
     resulting in no net gain in United States SIGINT System 
     activities. The conferees understand that this billet 
     transfer may temporarily force NSA to exceed its personnel 
     ceilings. The conferees agree to authorize NSA to remain 
     above its personnel ceiling through fiscal year 1997 for this 
     purpose, but expect that, as of September 30, 1997, NSA will 
     meet its congressionally mandated 17.5 percent reduction 
     target. The conferees also urge NSA to review the 
     requirements for each of these billets for validity and 
     consistency.
     Department of Defense next generation weather radar-doppler
       The Department of the Air Force operates 21 next generation 
     weather radar-doppler (NEXRAD) weather radar equipment in 
     CONUS that primarily function to protect military locations. 
     Additionally, Department of Defense (DOD) radar provides 
     supplementary data to the National Weather Service (NWS) and 
     its national radar network.
       DOD NEXRADs are maintained at operational standards that 
     meet military requirements. Due to increasing NWS reliance on 
     the DOD NEXRADS for primary and back-up coverage, efforts 
     have been made to increase the reliability of the DOD radar 
     to meet NWS operating standards.
       The conferees direct the Secretary of the Air Force to 
     report by March 31, 1996, on the measures needed to conform 
     the operation of the NEXRADS to the NWS operating standards. 
     The report should address any resource requirements, 
     including personnel and funds.
     Reengineering household goods moves
       The conferees commend the Department of Defense for 
     initiating efforts to incorporate efficient business 
     practices in its household goods moving operations. The 
     objective of these efforts should be to procure commercial 
     services at the lowest possible cost while ensuring service 
     members and their families receive the best possible service.
       Current procurement practices are cumbersome and 
     inefficient, resulting in clearly unacceptable costs for both 
     DOD and the moving industry. It is not apparent that the time 
     and expense associated with processing redundant paperwork 
     and administering a government-unique system are necessary to 
     ensure a level of service for DOD customers that meets the 
     industry standard.
       Further, current practices are structured in such a way 
     that service members and their families are subjected to 
     unnecessary administrative burdens. Claims procedures and the 
     evaluation system are outdated and seemingly disconnected 
     from the concept of quality control, and can be frustrating 
     to customers. Because military relocations account for a 
     substantial share of moving industry work, DOD should be able 
     to implement simple, cost-effective procedures which 
     simultaneously assure first class service for customers.
       However, current DOD practices do not reflect best industry 
     practices, such that the DOD operation should be 
     reengineered, rather than simply reorganized. The conferees 
     direct the Secretary of Defense to initiate a pilot program 
     to reengineer household goods moves. The Secretary should 
     direct the incorporation of commercial practices, and report 
     on the program not later than February 15, 1996, prior to 
     implementation of any element of the pilot program. The 
     report should be accompanied by comments from the industry.
       The Secretary may not implement any element of the pilot 
     program that could adversely affect small businesses, 
     including extension or application of Federal Acquisition 
     Regulations into this matter, until 90 days after the 
     submission of the report.

                         Legislative Provisions


                     legislative provisions adopted

              Subtitle A--Authorization of Appropriations

     Armed Forces Retirement Home (sec. 303)
       The House bill contained a provision (sec. 303) that would 
     authorize an appropriation from the Armed Forces Retirement 
     Home (AFRH) Trust Fund for operation of the AFRH in fiscal 
     year 1996.
       The Senate amendment contained a provision (sec. 303) that 
     would authorize an identical appropriation from the trust 
     fund, and authorize a new appropriation of $45.0 million to 
     the trust fund. The recommendation for this new appropriation 
     directly to the trust fund would address the problem of its 
     potential insolvency due to unanticipated decreases in the 
     long-established funding stream approved by Congress for 
     operation of the AFRH.
       The Senate recedes.
       Congress established a funding program whereby the AFRH 
     would be self-sustaining, and not dependent on public funds. 
     The U.S. Soldiers' and Airmen's Home in Washington, DC, has 
     operated successfully according to this program since its 
     inception in 1851. The U.S. Naval Home (established in 1834 
     and located since 1976 in Gulfport, MS) had been funded 
     differently, relying on public funds from 1935 until 1991, 
     when both homes were incorporated into the AFRH (Armed Forces 
     Retirement Home Act of 1991; P.L. 101-510). The Act brought 
     both homes under the unified management of the Armed Forces 
     Retirement Home Board and merged the trust funds of the two 
     homes.
       Subsequent to incorporation, the annual operating costs for 
     both homes of the AFRH have been authorized by Congress, to 
     be drawn (appropriated) from a single trust fund. Since the 
     funding program provided that interest from the trust fund, 
     fines and forfeitures, and a monthly assessment from the pay 
     of active duty enlisted service members and warrant officers 
     would maintain the solvency of the trust fund, no 
     appropriation outside the fund was envisioned to be 
     necessary.
       However, Congress did not anticipate the magnitude of 
     reductions in the armed forces prompted by the end of the 
     Cold War. These reductions caused a decrease in the funding 
     stream as the income derived from assessments decreased. The 
     high quality of the force resulted in fewer disciplinary 
     problems, which in turn resulted in less income from fines 
     and forfeitures. This is significant because fines and 
     forfeitures account for more than half the income.
       The trust fund now has a negative cash flow because more 
     money is required for operation of the AFRH than is available 
     from income. The corpus of the trust fund is being depleted, 
     and the conferees recognize the need to implement changes to 
     prevent insolvency. The conferees believe it would be easier, 
     preferable, and more advantageous to implement corrective 
     measures in the next few years, rather than wait for the 
     problem to become much more serious.
       The conferees note that Congress addressed the funding 
     problem in the National Defense Authorization Act for Fiscal 
     Year 1995 by providing authority for an increase in the 
     monthly assessment. The 1995 provision also established a 
     schedule of increases for resident fees and required a 
     comprehensive study by the Board on funding alternatives for 
     the AFRH. However, the study will not be completed until 
     December 1995, and the Department of Defense has declined to 
     increase the assessment prior to completion of the study. The 
     conferees note that an increase in the assessment, from 50 
     cents to one dollar per month, may not of itself resolve the 
     cash flow problem. A combination of efficiencies and funding 
     program changes may be appropriate.
       The conferees strongly support the fine work of the Board, 
     and agree to wait for the outcome of the study in order not 
     to restrict the consideration of efficiencies. The conferees 
     encourage the Secretary of Defense and the Board to continue 
     their efforts to examine alternative methods of meeting the 
     long-term financial requirements of the AFRH, while 
     maintaining high quality service for the residents.
     Transfer from National Defense Stockpile Transaction Fund 
         (sec. 304)
       The Senate amendment contained a provision (sec. 304) that 
     would authorize the transfer of $150.0 million from the 
     National Defense Stockpile Transition fund to the operation 
     and maintenance accounts of the services.
       The House bill contained no similar provision.
       The House recedes.
     Civil Air Patrol (sec. 305)
       The Senate amendment contained a provision (sec. 305) that 
     would reduce the level of Department of Defense support to 
     the Civil Air Patrol (CAP) by $2.9 million from the budget 
     request of $27.5 million.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       This reduction would realize savings by accelerating a CAP 
     reorganization in which many of the functions performed by 
     Air Force personnel in the past would then be performed by 
     employees of the CAP. This reorganization, which was 
     originally planned to be completed in fiscal year 1997, will 
     now be completed during fiscal year 1996.

                   Subtitle B--Depot-Level Activities

     Policy regarding performance of depot-level maintenance and 
         repair for the Department of Defense (sec. 311)
       The House bill contained a provision (sec. 395) that would 
     amend current law to establish the importance to national 
     security of maintaining a core depot-level maintenance and 
     repair capability within Department of Defense (DOD) 
     facilities. The provision would address core work 
     determinations, interservicing, competition, and an exclusion 
     from workload limitations for large individual maintenance 
     projects. It would also repeal two limitations on the 
     performance of depot-level work (10 U.S.C. 2466 and 2469), 
     effective December 31, 1996.
       The Senate amendment contained a provision (sec. 311) that 
     would require the Secretary of Defense to develop a 
     comprehensive 

[[Page H648]]
     policy on the performance of depot-level maintenance and repair, and 
     submit a report on the policy to the congressional defense 
     committees by March 31, 1996. The provision would condition 
     the repeal of the two current limitations on congressional 
     approval of the recommended policy.
       The House recedes with an amendment that would clarify both 
     the content of the policy and considerations to be made by 
     the Secretary. The amendment would also affirm that it is the 
     sense of Congress that DOD must articulate core workload 
     requirements as a necessary first step toward developing a 
     policy.
       The conferees believe that it would be extremely difficult 
     for Congress to approve a policy that does not provide for 
     the performance of core depot-level workload in public 
     facilities.
       Although the conferees do not wish to prescribe more than a 
     broad outline of the areas to be addressed by the Secretary, 
     the conferees believe it is useful to direct the Secretary to 
     consider numerous matters in developing the policy, and to 
     report on items of interest.
       The conferees believe it is both preferable and entirely 
     possible for DOD to develop an acceptable, comprehensive 
     policy that will serve the best interests of national 
     security. The conferees also believe that such a policy could 
     achieve efficiencies, and result in resolving the constant 
     debate over how to apportion work between the public and 
     private sectors.
       With respect to the exclusion for large individual 
     maintenance projects contained in the House provision, the 
     conferees note that certain projects may account for a large 
     share of a military department's maintenance and repair 
     budget. This is the case with respect to complex overhauls of 
     naval vessels, particularly nuclear-powered aircraft 
     carriers, whose overhaul and refueling can absorb a large 
     percentage of the Navy's maintenance and repair budget in a 
     given fiscal year. Amounts expended for such large projects 
     could, if counted against the limitation prescribed under 
     current law (10 U.S.C. 2466), affect the application of the 
     formula for the apportionment of work between the public and 
     private sectors.
       The conferees note that the impact of large maintenance 
     projects could have unintended consequences on the 
     application of section 2466. Until the workload limitations 
     are repealed, the conferees direct the Secretary of the Navy 
     to monitor the assignment of large individual maintenance 
     projects closely and continue to administer depot maintenance 
     programs to avoid unintended imbalances in workload 
     distribution insofar as practicable.
     Management of depot employees (sec. 312)
       The House bill contained a provision (sec. 332) that would 
     prohibit the management of depot employees by endstrength 
     constraints.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Extension of authority for aviation depots and naval 
         shipyards to engage in defense-related production and 
         services (sec. 313)
       The Senate amendment contained a provision (sec. 312) that 
     would extend through fiscal year 1996 the authority provided 
     by section 1425 of the National Defense Authorization Act of 
     1991, as amended, for naval shipyards and aviation depots of 
     all the services to bid on defense-related production and 
     services.
       The House bill contained no similar provision.
       The House recedes.
     Modification of notification requirement regarding use of 
         core logistics functions waiver (sec. 314)
       The House bill contained a provision (sec. 374) that would 
     modify section 2464(b) to title 10, United States Code, 
     concerning notification to Congress regarding the effective 
     date of the subject waiver.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                  Subtitle C--Environmental Provisions

     Revision of requirements for agreements for services under 
         the defense environmental restoration program (sec. 321)
       The Senate amendment contained a provision (sec. 321) that 
     would amend section 2701(d) of title 10, United States Code, 
     to ensure Department of Defense accountability for 
     reimbursements provided to states or territories. The Senate 
     amendment would limit the basis for state reimbursement. 
     First, states or territories participating in agreements 
     under the defense environmental restoration program would 
     only receive reimbursement for providing technical and 
     scientific services. Second, the provision would require the 
     submission of a reprogramming request for amounts in excess 
     of $5.0 million.
       The House bill contained no similar provision.
       The House recedes with an amendment that would increase the 
     funding authorization to $10.0 million.
     Addition of amounts creditable to the defense environmental 
         remediation account (sec. 322)
       The House bill contained a provision (sec. 322) that would 
     provide for transfer account credit of amounts recovered 
     under section 107 of the Comprehensive Environmental 
     Response, Compensation and Liability Act of 1980 (CERCLA) (42 
     U.S.C. 9601, et seq.) or from other reimbursements to the 
     Department of Defense for environmental restoration 
     activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Sense of Congress on use of defense environmental restoration 
         account (sec. 323)
       The House bill contained a provision (sec. 326) that would 
     express the sense of Congress that by the end of fiscal year 
     1997 no more than 20 percent of the annual funding for the 
     Defense Environmental Restoration Account should be spent for 
     administration, support, studies, and investigations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish a 
     goal that by the end of fiscal year 1997 no more than 20 
     percent of the annual funding for the Defense Environmental 
     Restoration Account should be spent for administration, 
     support, studies, and investigations. The amendment would 
     also require the Department of Defense to submit a report to 
     Congress by April 1, 1996. The report would specify issues 
     related to attaining the 20 percent goal.
     Revision of authorities relating to restoration advisory 
         boards (sec. 324)
       The Senate amendment contained a provision (sec. 323) that 
     would amend section 2705 of title 10, United States Code, 
     which authorizes establishment of restoration advisory boards 
     (RABs) to assist the Department of Defense with environmental 
     restoration activities at military installations. Section 
     2705 also provides a funding framework for local community 
     members of RABs and existing technical review committees.
       About 200 Restoration Advisory Boards have been established 
     at operational and closing installations and formerly used 
     defense sites. Under current law, the RAB funding sources for 
     local community member participation and for technical 
     assistance are the Defense Environmental Restoration Account 
     (DERA) and the Base Realignment and Closure Account (BRAC). 
     Section 2705(e)(3)(B) provides a $7.5 million limit on the 
     use of DERA and BRAC funds to pay for RAB technical 
     assistance and community participation in fiscal year 1995. 
     Under section 2705(d)(3), routine administrative expenses for 
     RABs may be paid out of funds available for the operation and 
     maintenance of an installation, without any limit on the 
     amount of funds that may be expended for that purpose.
       The Senate amendment would amend section 2705 to limit 
     funding sources to BRAC and DERA, not to exceed $4.0 million 
     in fiscal year 1996. Funds would be made available only for 
     routine administrative expenses and technical assistance. The 
     installation commander could obtain technical assistance for 
     a RAB to interpret scientific and engineering issues related 
     to the environmental restoration activities at the 
     installation where the RAB is functioning.
       The House bill contained no similar provision.
       The House recedes with an amendment that would increase the 
     funding authorization to $6.0 million. As part of the 
     amendment, the conferees have included language that would 
     make funds unavailable after September 15, 1996, unless the 
     Secretary of Defense publishes proposed final or interim 
     final regulations. Based on section 2705(d)(2) of title 10, 
     United States Code, the conferees anticipate that the 
     Department would already have made some progress in the 
     promulgation of regulations.
       Funding for private sector sources of technical assistance 
     would be contingent on the following: (1) a demonstration 
     that the existing technical resources of the Federal, state, 
     and local agencies responsible for overseeing environmental 
     restoration at an installation could not serve the objective 
     for which technical assistance is requested; or (2) outside 
     assistance is likely to contribute to the efficiency, 
     effectiveness, or timeliness of environmental restoration at 
     an installation; and (3) outside assistance is likely to 
     contribute to community acceptance of environmental 
     restoration activities at an installation.
       The conferees intend that the funds authorized pursuant to 
     this section would be the primary funding source for 
     technical assistance and administrative expenses associated 
     with RABs. The conferees strongly encourage the Secretary of 
     Defense to ensure that funds authorized for RABs are expended 
     in a manner that is consistent with obtaining technical 
     assistance and with payment of administrative expenses, and 
     is dispensed in accordance with the funding mechanism 
     established in this section. The RAB program should not serve 
     as a drain on the Superfund.
     Discharge from vessels of the Armed Forces (sec. 325)
       The Senate amendment contained a provision (sec. 322) that 
     would address incidental discharges from vessels of the armed 
     forces through the development of uniform national discharge 
     standards. The Federal Water pollution Control Act, 33 U.S.C. 
     1251 et seq., and implementing regulations currently exempt 
     incidental vessel discharges from permitting requirements. 
     Incidental discharges remain subject to varying state 
     regulation. The lack of uniformity has presented operational 
     problems for the Navy.
       The Senate amendment is modeled after section 312 of the 
     Federal Water Pollution Control Act, 33 U.S.C. 1322, which 
     establishes uniform national discharge standards for sewage 
     discharges from all vessels. The standards provision would 
     extend this model to regulate non-sewage incidental 
     discharges from vessels of the armed forces.
     
[[Page H649]]

       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

     Operation of commissary system (sec. 331)
       The House bill contained a provision (sec. 341) that would 
     revise the operation of the commissary store system, allow 
     contracts with other agencies, and revise payments to vendor 
     agents.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the revision of payments to vendor agents.
       The conferees are concerned about the high cost of the 
     Defense Finance and Accounting Service procedures to process 
     the 1.5 million annual commissary invoices. The conferees 
     believe that innovative practices need to be pursued to 
     reduce this burden. The administrative costs consume funding 
     that could otherwise be used to improve patron services or 
     reduce costs.
       The conferees direct the Secretary of Defense to conduct a 
     review of innovative practices to reduce this cost. Included 
     in this review should be an examination of the relationship 
     between the current distribution and invoicing practices. The 
     Secretary of Defense should report to the Senate Committee on 
     Armed Services and the House Committee on National Security 
     by February 15, 1996 on the recommended actions, if any, to 
     reduce these costs and how any savings will be used.
       Additionally, the conferees note that the Defense 
     Commissary Information System and the Point-of-Sale 
     Modernization programs are essentially off-the-shelf 
     commercial grocery systems designed to improve patron service 
     and increase efficiency of commissary operations. As such, 
     the conferees believe the Secretary of Defense should get 
     these systems on line and operating with the minimum of 
     review required to ensure interface with other government 
     data systems and compliance with legislation and regulations 
     essential to protect the interests of the government.
     Limited release of commissary store sales information to 
         manufacturers, distributors, and other vendors doing 
         business with Defense Commissary Agency (sec. 332)
       The House bill contained a provision (sec. 343) that would 
     amend the procedures for the release of commissary stores 
     sales information.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Economical distribution of distilled spirits by 
         nonappropriated fund instrumentalities (sec. 333)
       The House bill contained a provision (sec. 344) that would 
     amend the procedures for the determination of the most 
     economical distribution of distilled spirits.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Transportation by commissaries and exchanges to overseas 
         locations (sec. 334)
       The House bill contained a provision (sec. 345) that would 
     allow officials responsible for the operation of commissaries 
     and military exchanges the authority to negotiate directly 
     with private carriers for the most cost-effective 
     transportation of supplies by sea, without relying on the 
     Military Sealift Command or the Military Traffic Management 
     Command.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Demonstration project for uniform funding of morale, welfare, 
         and recreation activities at certain military 
         installations (sec. 335)
       The House bill contained a provision (sec. 346) that would 
     require the Secretary of Defense to conduct a demonstration 
     program at six military installations under which funds 
     appropriated for the support of morale, welfare, and 
     recreation programs at the installations are combined with 
     nonappropriated funds available for these programs and 
     treated as nonappropriated funds.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment which would extend the 
     test to two years.
     Operation of combined exchange and commissary stores (sec. 
         336)
       The House bill contained a provision (sec. 347) that would 
     permit the continued operation of the base exchange mart at 
     Fort Worth Naval Air Station, Texas, and would allow for the 
     expansion of the Base Exchange Mart Program.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees approve this expansion with the understanding 
     that they do not intend that exchange marts replace viable 
     commissaries. When a commissary is identified for closure, 
     the exchange system will be permitted to conduct a market 
     survey to determine the viability of an exchange mart in the 
     closing commissary facility. The conferees do not expect that 
     an exchange mart would be in direct competition with a 
     commissary operating in close proximity to a proposed 
     exchange mart.
       The conferees expect that exchange marts will operate in a 
     manner in which nonappropriated funds are not required to 
     sustain their operation. The conferees expect that every 
     effort will be made to operate the exchange marts in a manner 
     which requires only a minimal amount of appropriated fund 
     support.
     Deferred payment programs of military exchanges (sec. 337)
       The House bill contained a provision (sec. 348) that would 
     require the Secretary of Defense to establish a uniform 
     exchange credit program that could use commercial banking 
     institutions to fund and operate the deferred payment 
     programs of the Army and Air Force Exchange Service and the 
     Navy Exchange Service.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify the 
     provision by ensuring that any proposal be competitively 
     awarded and that prior to entering into any commercial 
     program the Secretary determine that it is in the best 
     interests of the exchange systems.
     Availability of funds to offset expenses incurred by Army and 
         Air Force Exchange Service on account of troop reductions 
         in Europe (sec. 338)
       The House bill contained a provision (sec. 349) that would 
     require that the Secretary of Defense transfer not more than 
     $70 million to the Army and Air Force Exchange Service to 
     offset expenses incurred by the Army and Air Force Exchange 
     Service on account of reductions in the number of military 
     personnel in Europe.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
       In order to avoid disruption of operations associated with 
     currency fluctuations and, in recognition of the unique 
     direct appropriation nature of commissaries as an entity of 
     the Defense Business Operations Fund, the conferees direct 
     that the military exchanges, other nonappropriated fund 
     instrumentalities, and commissaries be permitted to be 
     included in the Department of Defense foreign currency 
     fluctuation fund.
       Associated with the drawdown in Europe was an initiative to 
     transfer operations of the Stars and Stripes Bookstores to 
     the military exchanges. This transfer has a residual impact 
     upon certain employees. The conferees direct that the Army 
     and Air Force Exchange Service accept responsibility for 
     resolving the issue of employment, severance, and back pay 
     for the 15 local national employees formerly employed by the 
     Stars and Stripes. The conferees expect that the Army and Air 
     Force Exchange Service can, in conjunction with the Army and 
     Air Force headquarters in Europe, resolve the current job 
     action concerning these 15 local national employees using 
     funds provided in this section.
     Study regarding improving efficiencies in operation of 
         military exchanges and other morale, welfare, and 
         recreation activities and commissary stores (sec. 339)
       The House bill contained a provision (sec. 350) that would 
     require the Secretary of Defense to conduct a study and 
     submit a report to Congress regarding the manner in which 
     greater efficiencies can be achieved in the operation of 
     military exchanges, commissary stores, and other morale, 
     welfare, and recreation activities.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees agree with the findings and scope of the 
     study called for in the House report (H. Rept 104-131). The 
     conferees believe that the Department of Defense should seek 
     opportunities to reduce labor costs in resale activities and 
     to reduce excessive overhead. Additionally, the conferees 
     agree that significant economies and revenue potential can be 
     realized in the area of management and oversight of overseas 
     slot machine operations. The conferees direct the Secretary 
     of Defense consider and, if appropriate, submit a plan to 
     have one service serve as the executive agent for the 
     consolidated management and operation of this function.
     Repeal of requirement to convert ships' stores to 
         nonappropriated fund instrumentalities (sec. 340)
       The House bill contained a provision (sec. 351) that would 
     extend, to December 31, 1996, the deadline for the conversion 
     of all Navy ships' stores to operate as nonappropriated fund 
     activities.
       The Senate amendment contained a provision (sec. 373) that 
     would repeal section 371 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160) 
     requiring the Navy to convert ships' stores operations to a 
     Navy Exchange System agency.
       The House recedes with an amendment that would require the 
     Inspector General of the Department of Defense to complete a 
     review of the Navy Audit Agency report regarding the 
     conversion of the Ships Stores pursuant to section 374 of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337).
     Disposition of excess morale, welfare, and recreation (MWR) 
         funds (sec. 341)
       The Senate amendment contained a provision (sec. 371) that 
     would amend section 373 of the National Defense Authorization 
     Act for Fiscal Year 1995 to permit the Marine Corps to retain 
     the MWR funds transferred from Marine Corps installations.
       The House bill contained no similar provision.
       
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       The House recedes.
     Clarification of entitlement to use of morale, welfare, and 
         recreation facilities by members of Reserve components 
         and dependents (sec. 342)
       The Senate amendment contained a provision (sec. 633) that 
     would amend section 1065 of title 10, United States Code, to 
     give members of the retired reserve who would be eligible for 
     retired pay but for the fact that they are under 60 years of 
     age the same priority of use of morale, welfare, and 
     recreation facilities of the military services as members who 
     retired after active duty careers.
       The House bill contained no similar provision.
       The House recedes.

     Subtitle E--Performance of Functions by Private-Sector Sources

     Competitive procurement of printing and duplication services 
         (sec. 351)
       The House bill contained a provision (sec. 359) that would 
     direct the Defense Printing Service to procure at least 70 
     percent of printing and duplication work competitively.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would exempt 
     classified printing and duplication work from this 
     calculation.
     Direct vendor delivery system for consumable inventory items 
         of Department of Defense (sec. 352)
       The House bill contained a provision (sec. 360) that would 
     require the Department of Defense (DOD) to arrange for 
     delivery of consumable inventory items directly from vendors 
     to military installations in the United States. Complete 
     implementation of this system would be required by September 
     30, 1997.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require DOD 
     to use direct vendor delivery of consumable inventory items 
     whenever practicable.
     Payroll, finance, and accounting functions of the Department 
         of Defense (sec. 353)
       The House bill contained a provision (sec. 362) that would 
     require the Secretary of Defense to submit a plan to Congress 
     for the privatization of the payroll functions for civilian 
     employees of the Department of Defense and to implement the 
     plan not later than October 1, 1996.
       The House bill contained a provision (sec. 368) that would 
     require the Secretary of Defense to conduct a pilot program 
     to test and evaluate the cost savings and efficiencies of 
     private operation of accounting and payroll functions of 
     nonappropriated fund instrumentalities of the Department of 
     Defense.
       The Senate amendment contained a provision (sec. 352) that 
     would require the department of Defense to conduct a review 
     of the need for further expansion of Defense Finance and 
     Accounting Service (DFAS) operating locations, and to report 
     to the appropriate committees of the Congress prior to 
     establishing any new DFAS operating locations.
       The House recedes with an amendment that would combine and 
     clarify the three provisions.
     Demonstration program to identify overpayments made to 
         vendors (sec. 354)
       The House bill contained a provision (sec. 363) that would 
     require the Secretary of Defense to conduct a demonstration 
     program at the Defense Personnel Support Center, 
     Philadelphia, Pennsylvania, to evaluate the feasibility of 
     using private contractors to audit accounting and procurement 
     records of the Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Pilot program on private operation of defense dependents' 
         schools (sec. 355)
       The House bill contained a provision (sec. 364) that would 
     allow the Secretary of Defense to conduct a pilot program to 
     assess the feasibility of using private contractors to 
     operate overseas dependents' schools and to report the 
     results of the pilot program to Congress.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Program for improved travel process for the Department of 
         Defense (sec. 356)
       The House bill contained a provision (sec. 365) that would 
     require the Secretary of Defense to conduct a pilot program 
     including two prototype tests of commercial travel 
     applications to improve management of the Department of 
     Defense Travel System.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary to conduct a two-year test at a minimum of three 
     sites and a maximum of six sites, and to report to the Senate 
     Committee on Armed Services and the House Committee on 
     National Security at the conclusion of the first year.
       The conferees do not intend this provision to be viewed as 
     authority for the Secretary of Defense to circumvent the 
     requirement for civilians to use adequate government quarters 
     where they are available.
     Increased reliance on private-sector sources for commercial 
         products and services (sec. 357)
       The House bill contained a provision (sec. 367) that would 
     require the Secretary of Defense to endeavor to obtain 
     products and services from the private sector. The provision 
     would require the Secretary of Defense to describe functions 
     that can be performed by the private sector and specify 
     impediments to outsourcing.
       The Senate amendment contained a provision (sec. 386) that 
     would require the Secretary to report on the use of private 
     sector contractors to perform functions not essential to the 
     warfighting mission of the Department of Defense.
       The Senate recedes with an amendment.
       The conferees agree that DOD should make a maximum effort 
     to rely upon the private sector for commercial functions 
     whenever the same level of service can be obtained at a 
     reduced cost to the government, and the national security 
     does not require the activity to be retained in-house. The 
     conferees note with approval the many steps the Department 
     has already taken in this direction and encourage the 
     Department to continue in its efforts. The conferees urge the 
     Department to maintain close coordination with the Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House regarding its efforts to downsize the 
     federal government while placing greater reliance upon the 
     private sector.

        Subtitle F--Miscellaneous Reviews, Studies, and Reports

     Quarterly readiness reports (sec. 361)
       The House bill contained a provision (sec. 371) that would 
     require the Secretary of Defense to report quarterly to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives on the 
     military readiness of the armed forces.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Restatement of requirement for semiannual reports to Congress 
         on transfers from high-priority readiness appropriations 
         (sec. 362)
       The House bill contained a provision (sec. 373) that would 
     amend section 361 of the National Defense Authorization Act 
     for Fiscal Year 1995 in order to provide more detailed 
     guidance on the report required.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment. The 
     conferees are disappointed that the Department of Defense has 
     not been sufficiently thorough in reporting on transfers from 
     high-priority readiness appropriations and expect future 
     reports to be more substantive.
     Report regarding reduction of costs associated with contract 
         management oversight (sec. 363)
       The House bill contained a provision (sec. 376) that would 
     require the Comptroller General to submit a report to 
     Congress that would identify methods to reduce the cost of 
     Department of Defense management and oversight of contracts 
     in connection with major defense acquisition programs.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reviews of management of inventory control points and 
         Material Management Standard System (sec. 364)
       The House bill contained a provision (sec. 391) that would 
     direct the Secretary of Defense to conduct a review regarding 
     consolidation of all inventory control points (ICP) under the 
     Defense Logistics Agency. The provision would also prohibit 
     implementation of the Materiel Management Standard System 
     (MMSS) until submission of the Secretary's report to the 
     Congressional defense committees.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to report by March 31, 1996, on the advisability of 
     consolidating all ICP. The General Accounting Office would 
     review the Secretary's report, and review the MMSS. The 
     amendment would not impose a restriction on implementation of 
     the MMSS.
     Report on private performance of certain functions performed 
         by military aircraft (sec. 365)
       The Senate amendment contained a provision (sec. 390) that 
     would require the Secretary of Defense to report on the 
     feasibility of meeting requirements of VIP transportation, 
     airlift, air cargo, in-flight refueling and other functions 
     by using private contractors in lieu of military aircraft.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Strategy and report on automated information systems of 
         Department of Defense (sec. 366)
       The House bill contained a provision (sec. 375) that would 
     prohibit the Secretary of Defense from obligating or 
     expending amounts greater than $2.4 billion for the 
     development and modernization of automated data processing 
     programs pending a report by the Inspector General of the 
     Department of Defense (DOD).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would remove the 
     restriction on obligation of funds. The conferees believe 
     that off-the-shelf automated information systems can improve 
     DOD property management. 

[[Page H651]]
     This includes software, laminate barcode printers, barcode readers, and 
     storage devices.
       The conferees also endorse the requirement contained in 
     Title III of the House report (H. Rept. 104-131) in a 
     paragraph of the Items of Special Interest section, entitled 
     ``Off-the-shelf systems.'' The conferees direct the Secretary 
     to include in this report a discussion of functional 
     processes that can use existing private sector technology.

                       Subtitle G--Other Matters

     Codification of Defense Business Operations Fund (sec. 371)
       The House bill contained several provisions pertaining to 
     the Defense Business Operations Fund (DBOF).
       Section 311 would modify DBOF by adding or precluding 
     various DBOF activities. The provision would also require 
     certain costs to be included in DBOF charges, and revise the 
     capital purchase authority threshold from $50,000 to $15,000. 
     Further, the provision would extend discretionary authority 
     to the Secretary of Defense or the Secretary of a military 
     department to purchase goods and services from non-DBOF 
     activities, if they are available at a more competitive rate.
       Section 312 would require the Secretary of Defense to 
     manage DBOF under the immediate authority of the Under 
     Secretary of Defense (Comptroller). This would include 
     central management of cash balances. The provision would also 
     prohibit further expansion of the DBOF by adding new 
     functions, activities, funds or accounts to the DBOF.
       Section 313 would require the inclusion of the costs of 
     military personnel, who perform duty in industrial fund 
     activities, in determining costs in DBOF activities. The 
     provision would also terminate the practice of billing in 
     advance for goods and services provided through the DBOF.
       The Senate amendment contained no similar provisions.
       The Senate recedes with a single amendment that would 
     codify DBOF, but amend the activities listed in the House 
     bill (sec. 312), not revise the capital purchase threshold, 
     and retain the prohibition on further expansion.
       The amendment also would direct the Comptroller General of 
     the United States to determine the advisability of managing 
     DBOF at the Department of Defense (DOD) level. The conferees 
     recommend the defense committees review this matter in fiscal 
     year 1996 and consider the advisability of central management 
     in light of the Comptroller General's report and improvements 
     in the condition of the DBOF.
       The amendment would permit advance billing for compelling 
     reasons, but require DOD to notify the defense committees of 
     the Congress after September 30, 1996 in the event the 
     aggregate total of advance billing exceeds $100.0 million 
     subsequent to enactment of the National Defense Authorization 
     Act for Fiscal Year 1996. Another report would be required 
     each time the aggregate amount of advance billing increases 
     by $100.0 million after the date of the preceding report.
       The conferees previously expressed support for the DOD plan 
     to eliminate advance billing in fiscal year 1995 in the 
     conference report accompanying the National Defense 
     Authorization Act for Fiscal Year 1995. The practice of 
     advance billing appears to cause DBOF customers to refrain 
     from purchasing goods and services and it appears to promote 
     confusion, rather than good business, at the unit or 
     installation level.
       The conferees also support the effort to capture total 
     costs in order to conduct business operations in accordance 
     with generally accepted business practices. The conferees 
     direct the Secretary of Defense to annotate the justification 
     books accompanying subsequent budget submissions for DBOF 
     activities, to reflect the total costs for both military and 
     civilian personnel. These costs should include items such as 
     salaries, benefits, and retirement plans. The conferees 
     believe it is necessary for Congress to evaluate the 
     consequences of including such costs in DBOF rates and 
     pricing.
     Clarification of services and property exchanged to benefit 
         the historical collection of the armed forces (sec. 372)
       The House bill contained a provision (sec. 321) that would 
     clarify the law concerning the exchange of services and 
     property for the benefit of the historical collection of the 
     armed services.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Defense Business Management University (sec. 373)
       The House bill contained a provision (sec. 381) that would 
     prohibit the use of funds for any lease with respect to the 
     Center for Financial Management Education and Training of the 
     Defense Business Management University (DBMU) if the lease 
     would be treated as a capital lease for budgetary purposes.
       The Senate amendment contained a provision (sec. 351) that 
     would require the Secretary of Defense to certify the need 
     for the Center for Financial Management Education and 
     Training of the DBMU, and report on Department of Defense 
     financial management training, 90 days prior to obligating 
     funds for a capital lease.
       The House recedes with an amendment that would require the 
     Secretary of Defense to make the determination of the 
     location of the center using a merit-based selection process 
     and report to the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives on the details of this selection process at 
     least 30 days prior to entering into a capital lease.
     Permanent authority for use of proceeds from the sale of 
         certain lost, abandoned, or unclaimed property (sec. 374)
       The House bill contained a provision (sec. 388) that would 
     provide permanent authority for a successful demonstration 
     program for the disposal of certain personal property.
       The Senate amendment contained a provision (sec. 383) that 
     would provide similar permanent authority, but would provide 
     further authority to credit the operation and maintenance 
     account of a relevant installation for the costs incurred to 
     collect, transport, store, protect, or sell such property. 
     Net proceeds from a sale would be covered into the Treasury. 
     A mechanism for subsequent claims by an owner, heir, etc., 
     would also be provided.
       The House recedes with a clarifying amendment.
     Sale of military clothing and subsistence and other supplies 
         of the Navy and Marine Corps (sec. 375)
       The House bill contained a provision (sec. 393) that would 
     provide to Navy and Marine Corps personnel the same authority 
     that Army an Air Force personnel currently have to purchase 
     replacement subsistence and other supplies.
       The Senate amendment contained a similar provision (sec. 
     384).
       The House recedes with a technical amendment.
     Personnel services and logistical support for certain 
         activities held on military installations (sec. 376)
       The House bill contained a provision (sec. 385) that would 
     clarify the authority of the Secretary of Defense in regard 
     to jamborees conducted by the Boy Scouts of America on 
     military installations.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Retention of monetary awards (sec. 377)
       The House bill contained a provision (sec. 386) that would 
     permit the Secretary of Defense to accept any monetary award 
     for excellence, given to the Department of Defense by a 
     nongovernmental entity, as an award in a competition 
     recognizing excellence or innovation in providing services or 
     administering programs. Such an award would be credited to 
     the appropriation of the command, installation, or activity 
     that is recognized in the award, as provided in appropriation 
     acts. Not more than 50 percent of the monetary award may be 
     disbursed to the persons who are responsible for earning the 
     award, up to $10.0 thousand per person.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit the 
     Secretary to accept such monetary awards and disburse the 
     award to the morale, welfare, and recreation nonappropriated 
     fund account of the command, installation, or activity 
     involved in earning the award. Certain incidental expenses 
     could be reimbursed from the award amount.
     Provision of equipment and facilities to assist in emergency 
         response actions (sec. 378)
       The House bill contained a provision (sec. 383) that would 
     amend section 372 of title 10, United States Code, to 
     authorize the Department of Defense to provide assistance in 
     the form of training facilities, sensors, protective 
     clothing, antidotes, and other materials and expertise to 
     appropriate federal, state, or local law enforcement agencies 
     for responding to emergencies involving chemical or 
     biological agents.
       The Senate amendment did not contain a similar provision.
       The Senate recedes with a technical amendment.
     Department of Defense military and civil defense preparedness 
         to respond to emergencies resulting from a chemical, 
         biological, radiological, or nuclear attack (sec. 379)
       The Senate amendment contained a provision (sec. 223) that 
     would require the Secretaries of the Departments of Defense 
     and Energy, in consultation with the Federal Emergency 
     Management Agency (FEMA), to submit a report to Congress that 
     would describe the military and civil defense plans and 
     programs to respond to the use of chemical, biological, 
     nuclear, and radiological agents or weapons against a 
     civilian population located in the United States or near a 
     U.S. military installation.
       The House bill did not contain a similar provision.
       The House recedes with an amendment.

                   Legislative Provisions Not Adopted

     Office of Economic Adjustment
       The House bill contained a provision (sec. 304) that would 
     increase the amount of funds available to the Office of 
     Economic Adjustment by $1.5 million.
       The Senate amendment contained no similar provision.
       The House recedes.
     Annual proposed budget for operation of defense business 
         operations fund
       The House bill contained a provision (sec. 314) that would 
     require that the budget request for the Department of Defense 
     include the amount of funds necessary to cover the operating 
     losses of the Defense Business Operations Fund for the 
     previous year. 
     
[[Page H652]]

       The Senate amendment contained no similar provision.
       The House recedes.
     Reduction in requests for transportation funded through 
         Defense Business Operations Fund
       The House bill contained a provision (sec. 315) that would 
     direct a reduction in requests for purchasing transportation 
     through the Defense Business Operations Fund during fiscal 
     year 1996 by $70.0 million from the amount purchased in 
     fiscal year 1995. The provision would also require a report 
     on achieving certain efficiencies.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees are concerned about the amount of overhead 
     carried by the Department of Defense (DOD) to support its 
     transportation infrastructure. The conferees direct the 
     Secretary of Defense to submit a report to Congress by March 
     1, 1996. The Secretary should address changes to the 
     transportation infrastructure and implementation of 
     consolidation proposals, such as the elimination of 
     duplication in component command structure. The Secretary 
     should also address measures to reduce transportation 
     overhead without adversely affecting operational and 
     mobilization requirements. The conferees recommend a $70.0 
     million reduction in anticipation of savings from 
     improvements and efficiencies.
     Repeal of certain environmental education programs
       The House bill contained a provision (sec. 323) that would 
     repeal sections 1333 and 1334 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     10 U.S.C. 2701, note).
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of limitation on obligation of amounts transferred 
         from environmental restoration transfer account
       The House bill contained a provision (sec. 324) that would 
     eliminate the statutory ``fence'' that precludes the transfer 
     of funds from the Defense Environmental Restoration Account 
     (DERA) for purposes unrelated to environmental remediation.
       The Senate amendment contained no similar provision.
       The House recedes.
     Elimination of authority to transfer amounts for 
         toxicological profiles
       The House bill contained a provision (sec. 325) that would 
     amend section 2704 of title 10, United States Code. The 
     provision would eliminate authority for the Department of 
     Defense to use Defense Environmental Restoration Account 
     funds to reimburse the Agency for Toxic Substance and Disease 
     Registry (ATSDR), a branch of the U.S. Public Health Service. 
     Reimbursement is currently provided to ATSDR for performing 
     statutorily required health assessments and health risk 
     studies at Defense installations listed on the National 
     Priorities List (NPL).
       The Senate amendment contained no similar provision.
       The House recedes.
     Pricing policies for commissary store merchandise
       The House bill contained a provision (sec. 342) that would 
     reduce administrative costs in pricing commissary 
     merchandise.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees recognize that there may be potential savings 
     for the Defense Commissary Agency (DeCA) if variable pricing 
     was permitted. Therefore, the conferees direct that the 
     Secretary of Defense submit a report to the Senate Committee 
     on Armed Services and the House Committee on National 
     Security not later than May 1, 1996 describing how a variable 
     pricing policy would be implemented; the estimated savings, 
     if any; the impact on customers and suppliers; and a 
     recommended legislative proposal, if appropriate.
     Procurement of electricity from most economical source
       The House bill contained a provision (sec. 357) that would 
     require the Department of Defense (DOD) to procure 
     electricity from the most economical source.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees direct the Department of Defense to consult 
     with the Federal Energy Regulatory Commission (FERC) on 
     methods to obtain lower prices for the electricity procured 
     by the DOD, including procurement of such electricity through 
     competitive sources. Decisions with regard to procurement of 
     electricity by the DOD and the FERC should take into 
     consideration the cost savings potential to the DOD and the 
     recovery of the specific cost of utility investment that is 
     directly attributable to existing arrangements and 
     understandings with the DOD.
       The conferees direct the Department of Defense to submit a 
     report to Congress by March 1, 1996 on the feasibility of 
     attaining the most economical price for electricity under 
     existing statutes. In addition, the DOD shall report on all 
     legislative or regulatory impediments to procuring 
     electricity from the most economical source and the potential 
     cost savings inherent to the elimination of such impediments. 
     The report shall also identify those bases or facilities that 
     are in the best position to use competitive sources of 
     electricity.
     Procurement of certain commodities from most economical 
         source
       The House bill contained a provision (sec. 358) that would 
     enable the Department of Defense (DOD) to procure commodities 
     from a source other than the General Services Administration 
     (GSA) if the source can provide the commodities at a lower 
     cost.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees are aware that the requirement for DOD to 
     purchase commodities from GSA denies DOD the flexibility to 
     pursue good business practices by preventing DOD from 
     procuring items at the lowest cost. This inflexibility seems 
     to run counter to the desire of Congress, and it does not 
     promote good business practices within DOD. Encouraging 
     managers at all levels to make sound business decisions is an 
     underlying fundamental of the Defense Business Operations 
     Fund concept.
       The conferees direct the Secretary of Defense to report to 
     the congressional defense committees by March 1, 1996, 
     regarding the advisability of obtaining the authority to 
     bypass GSA. The Secretary should identify any statutory 
     relief necessary.
     Private operation of functions of Defense Reutilization and 
         Marketing Service
       The House bill contained a provision (sec. 361) that would 
     require the Secretary of Defense to solicit for performance, 
     by commercial entities, of selected functions of the Defense 
     Reutilization and Marketing Service (DRMS). The provision 
     would require the Secretary to report on those functions that 
     should continue to be performed by Department of Defense 
     (DOD) civilian employees not later than July 1, 1996.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees expect the Secretary to address the 
     privatization of DRMS functions as part of the DOD-wide 
     review and report, regarding increased reliance on private 
     sector sources for commercial products and services, required 
     elsewhere in this bill.
     Pilot program for private operation of consolidated 
         information technology functions of Department of Defense
       The House bill contained a provision (sec. 366) that would 
     require the Secretary of Defense to enter into negotiations 
     for contracting-out the workload of three Defense 
     Megacenters. This effort would serve as a three-year pilot 
     program to determine the advisability of having this type of 
     work performed by the private sector. The goal of the program 
     would be to achieve savings of at least 35 percent over 
     current practices. Further consolidation of megacenters, to 
     fewer than the 16 currently identified, would be prohibited 
     until completion of the pilot program.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe there is significant potential to 
     make improvements in the efficiency and effectiveness of the 
     Department of Defense (DOD) data processing operations, to 
     include the data megacenters. The conferees also believe 
     there may be significant potential to achieve savings from 
     contracting-out work that is not military-essential or 
     otherwise unique to government. However, judgments on the 
     advantages of contracting-out work should be based on 
     economic and mission analyses, which the DOD has not 
     performed.
       The conferees direct the Secretary to submit a report on 
     this matter to the defense committees by May 31, 1996. The 
     report should include: the rationale for contracting-out 
     work; an analysis of the costs and benefits of contracting-
     out a portion of the workload; a detailed description of 
     information technology functions and services performed by 
     megacenters that are not considered military essential; and 
     the amount of savings anticipated to be achieved by 
     contracting-out. The conferees note that functions considered 
     to be military-essential, and those that pertain to 
     information security, military readiness, certain aspects of 
     training, and warfighting, are not required to be addressed 
     in this report.
     Authority of Inspector General over investigations of 
         procurement fraud
       The House bill contained a provision (sec. 382) that would 
     consolidate responsibility for all investigations of 
     procurement fraud within the Department of Defense under the 
     Inspector General.
       The Senate amendment contained no similar provision.
       The House recedes. Under the Inspector General Act of 1978, 
     as amended, the overall responsibility for investigations 
     within the DOD, including procurement fraud investigations, 
     rests with the Inspector General. The Inspector General has 
     full authority to investigate any allegations of procurement 
     fraud involving a DOD contractor. Day-to-day responsibility 
     for the conduct of procurement fraud investigations is 
     divided among the investigative organizations of the 
     Department of Defense and each of the military departments. 
     The Inspector General also has full authority to assume 
     responsibility for any procurement fraud investigation 
     initiated by one or more of the military departments.
       The Defense Advisory Board on the Investigative 
     Capabilities of the DOD unanimously recommended that fraud 
     investigations be consolidated into the Office of the 

[[Page H653]]
     Inspector General. The recommendation was based on several objectives 
     that would include eliminating joint investigations, 
     eliminating confusion over joint investigations, and 
     increasing the capability to identify multiple acts of fraud 
     by the same contractors.
       The conferees note that there have been continuing concerns 
     about duplication and coordination between the Department of 
     Defense Inspector General and the investigative components of 
     the military departments with respect to major procurement 
     fraud investigations. The conferees agree that the Department 
     must endeavor to concentrate procurement fraud efforts on 
     investigations rather than jurisdictional disputes. 
     Therefore, the conferees believe that the Secretary of 
     Defense should make every effort to ensure that this 
     important function is performed in the most efficient and 
     effective manner, avoiding the necessity for joint 
     investigations to the maximum extent practicable.
       The conferees are encouraged to note that the Department 
     recently established a coordinating council, headed by the 
     DOD Inspector General, to address some of the concerns raised 
     by the Defense Advisory Board. To ensure the effectiveness of 
     the new procedures, the conferees direct that the Secretary 
     review the newly constituted Secretary's Board on 
     Investigations, with a particular emphasis on maximizing the 
     efficiency and effectiveness of major procurement fraud 
     investigations. As part of this review, the Secretary should 
     assess: (1) the optimal level of resources required to ensure 
     a robust oversight function within the Department; (2) which 
     DOD investigative components should conduct procurement fraud 
     investigations; and (3) the optimal organization required to 
     increase the DOD capability to maximize procurement fraud 
     recoveries and indictments.
       The conferees direct the Secretary to provide a report by 
     May 1, 1996, to the congressional defense committees on the 
     results of this review. The conferees will assess this report 
     to ascertain whether further legislation is necessary to 
     address remaining concerns over duplication and coordination 
     problems among the DOD investigative components.
     Transfer of excess personal property to support law 
         enforcement activities
       The House bill contained a provision (sec. 389) that would 
     amend section 1208(a)(1)(A) of the National Defense 
     Authorization Act for Fiscal Years 1990 and 1991, concerning 
     the transfer of excess personal property. This provision 
     would expand current authority to permit the Secretary of 
     Defense to transfer excess property to state and other 
     federal agencies for use in law enforcement activities. 
     Current authority contained in the above section addresses 
     only transfers to such agencies for their use in counter-drug 
     activities.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that numerous avenues currently exist to 
     transfer excess property to state and other federal agencies, 
     including law enforcement agencies which do not have explicit 
     counternarcotics responsibilities. However, there appears to 
     be no coherent policy, priority, or central data base which 
     allows such agencies to learn what is available at a given 
     time, or to effect a transfer without inordinate 
     administrative work.
       The conferees direct the Secretary of Defense to review 
     this matter and report to the defense committees of the 
     Congress not later than March 30, 1996, on developing a 
     comprehensive policy and establishing procedures which would 
     assist state and federal law enforcement agencies in 
     identifying and obtaining such equipment. The Secretary 
     should consider Memoranda of Understanding as a means to 
     effect transfers.
       The Secretary should also give high priority consideration 
     to state and federal law enforcement agencies that 
     demonstrate their need for such equipment.
     Development and implementation of innovative processes to 
         improve operation and maintenance
       The House bill contained a provision (sec. 390) that would 
     direct that $350.0 million, of the funds authorized and 
     appropriated for defense-wide operation and maintenance, be 
     available for the development or acquisition of information 
     technologies and reengineered functional processes.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sale of 50 percent of current war reserve fuel stocks and 
         prepositioned war reserves
       The House bill contained a provision (sec. 392) that would 
     require the Secretary of Defense to reduce war reserve fuel 
     stocks of the Department of Defense to a level equal to 50 
     percent of the level of such stocks on January 1, 1995.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that the DOD has made considerable 
     progress in identifying its fuel requirements necessary for 
     wartime operations. This has led to a reduction in the 
     required level of war reserves. The conferees urge the DOD to 
     continue its efforts in this area in order to save money 
     while maintaining military readiness.
       The conferees further believe that there is considerable 
     opportunity to address critical afloat and ashore war reserve 
     deficiencies. The conferees agree to add $60 million for 
     purchases of critical war reserve stocks. This funding is 
     authorized in the operation and maintenance, defense-wide 
     activities account for application to high priority war 
     reserve requirements. The Secretary of Defense is requested 
     to report on the expenditure of these funds to the 
     congressional defense committees prior to their allocation 
     and should seek the views of theater commanders-in-chief in 
     determining the application of these resources.
     Southwest border states anti-drug information system
       The House bill included a provision (sec. 396) that 
     indicated that the Southwest Border States Anti-Drug 
     Information Systems program is an important element of the 
     Department of Defense support of law enforcement agencies in 
     the fight against illegal trafficking of narcotics.
       The Senate amendment contained no similar provision.
       The House recedes. The Southwest Border States Anti-Drug 
     Information System is addressed elsewhere in this statement 
     of managers.
     Elimination of certain restrictions on purchases and sales of 
         items by exchange stores and other morale, welfare, and 
         recreation (MWR) facilities
       The Senate amendment contained a provision (sec. 372) that 
     would eliminate the cost, price, size, and country of origin 
     limitations on purchases and sales of items sold in the 
     military exchanges and morale, welfare, and recreation 
     facilities.
       The House bill contained no similar provision.
       The Senate recedes.
     Funding for Troops to Teachers and Troops to Cops Programs
       The Senate amendment contained a provision (sec. 388) that 
     would authorize $42.0 million for the Troops-to-Teachers 
     program and $10.0 million for the Troops-to-Cops program from 
     amounts authorized for military personnel for fiscal year 
     1996.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees recognize that these programs address the 
     economic dislocation among service members caused by the 
     defense drawdown. Therefore, the conferees invite the 
     Department of Defense to determine whether use of existing 
     resources, if available, is appropriate to continue these 
     programs.
     Authorization of amounts requested in the budget for Junior 
         ROTC
       The Senate amendment contained a provision (sec. 389) that 
     would restore the authorization to fund Junior Reserve 
     Officer's Training Corps (JROTC) at the budget request.
       The House bill authorized the JROTC program at the budget 
     request.
       The Senate recedes.
       The conferees agree to authorize the JROTC program at the 
     budget request.
     Use of commissary stores by members of the ready reserve
       The Senate amendment contained a provision (sec. 631) that 
     would permit members of the ready reserve to use commissaries 
     on the same basis as members on active duty.
       The House bill contained no similar provision.
       The Senate recedes.
     Use of commissary stores by retired reserves under age 60 and 
         their survivors
       The Senate amendment contained a provision (sec. 632) that 
     would permit survivors of ``gray area'' retirees, members of 
     the retired reserve who have not attained the age of 60 
     years, to use commissaries as if the sponsor had attained 60 
     years of age and was receiving retirement benefits.
       The House bill contained no similar provision.
       The Senate recedes.

              Title IV--Military Personnel Authorizations


                       ITEMS OF SPECIAL INTEREST

     Minimum force structure levels for Navy Light Airborne 
         Multipurpose System helicopters
       The conferees note that the Navy Light Airborne 
     Multipurpose System (LAMPS) antisubmarine warfare helicopter 
     fleet provides an essential element to the Nation's overall 
     antisubmarine warfare capability. The conferees understand 
     that the Navy has no plans to reduce the number of active or 
     reserve LAMPS squadrons below the 14 currently in the force 
     structure during fiscal years 1996 or 1997. The conferees 
     believe that 14 LAMPS squadrons is the minimum structure 
     necessary and fully expect the Navy to continue to support 
     that level of force structure.


                         legislative provisions

                     legislative provisions adopted

                       Subtitle A--Active Forces

     End strengths for active forces (sec. 401)
       The House bill contained a provision (sec. 401) that would 
     establish active duty end strengths for fiscal year 1996.
       The Senate amendment contained a similar provision (sec. 
     401), but would include an increase of 340, of which 65 would 
     be officers, in Navy end strength to permit the Navy to 
     retain an active P-3 squadron scheduled for inactivation in 
     fiscal year 1996.
       The following table summarizes the authorized active duty 
     end strengths for fiscal year 1996. 
     
[[Page H654]]


----------------------------------------------------------------------------------------------------------------
                                                                                    Fiscal year                 
                                                                 -----------------------------------------------
                                                                       1995                            1996     
                                                                   Authorization   1996 Request   Recommendation
----------------------------------------------------------------------------------------------------------------
Army:                                                                                                           
    Total.......................................................         510,000         495,000         495,000
    Officer.....................................................  ..............          81,300          81,300
Navy:                                                                                                           
    Total.......................................................         441,641         428,000         428,340
    Officer.....................................................  ..............          58,805          58,870
Marine Corps:                                                                                                   
    Total.......................................................         174,000         174,000         174,000
    Officer.....................................................  ..............          17,978          17,978
Air Force:                                                                                                      
    Total.......................................................         400,051         388,200         388,200
    Officer.....................................................  ..............          75,928          75,928
        Total...................................................       1,525,692       1,485,200       1,485,540
        Officer.................................................  ..............         234,011         234,076
----------------------------------------------------------------------------------------------------------------

       The House bill also contained a provision (sec. 521) that 
     would establish permanent end strength levels beginning in 
     fiscal year 1996.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would integrate 
     the House bill provision (sec. 521) into this section.
     Temporary variation in DOPMA authorized end strength 
         limitations for active duty Air Force and Navy officers 
         in certain grades (sec. 402)
       The House bill contained a provision (sec. 402) that would 
     authorize a temporary increase in the number of officers who 
     can serve on active duty in the grade of major in the Air 
     Force and in the grades of lieutenant commander, commander, 
     and captain in the Navy until September 30, 1997.
       The Senate amendment contained a similar provision (sec. 
     402).
       The House recedes.
       The conferees fully expect the Secretary of Defense to 
     provide a comprehensive proposal to restructure the 
     authorized strength tables for commissioned officers on 
     active duty in time for the committee to address, in the 
     National Defense Authorization Act for Fiscal Year 1997, a 
     permanent solution to perceived recurring shortages of 
     officers in controlled grades for each service.
     Certain general and flag officers awaiting retirement not to 
         be counted (sec. 403)
       The Senate amendment contained a provision (sec. 403) that 
     would exempt a retiring Chairman of the Joint Chiefs, Chief 
     of Staff of the Army, Chief of Naval Operations, Chief of 
     Staff of the Air Force, or Commandant of the Marine Corps 
     from being included in the number of general and flag 
     officers on active duty, authorized to be serving in the 
     grade of general and admiral, during the period when they 
     would complete those activities necessary to transition to 
     the retired list after they have been relieved from their 
     former position.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees agree that the five positions in this 
     provision represent the totality of the critical positions 
     for which an exemption of this type is appropriate. The 
     conferees expect that the Department will not request 
     exemptions for any additional general/flag officer positions.
       The conferees intend that this authority would not be used 
     for more than 60 calendar days.

                       Subtitle B--Reserve Forces

     End strengths for selected reserve (sec. 411)
       The House bill contained a provision (sec. 411) that would 
     authorize selected reserve end strength levels for fiscal 
     year 1996.
       The Senate amendment contained a similar provision (sec. 
     411).
       The following table summarizes the authorized end strength 
     levels for the selected reserve for fiscal year 1996.

------------------------------------------------------------------------
                                               Fiscal year              
                               -----------------------------------------
                                     1995         1996         1996     
                                Authorization   Request   Recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States................      400,000      373,000       373,000  
The Army Reserve..............      242,000      230,000       230,000  
The Naval Reserve.............      102,960       98,602        98,894  
The Marine Corps Reserve......       42,000       42,000        42,274  
The Air National Guard of the                                           
 United States................      115,581      109,458       112,707  
The Air Force Reserve.........       78,706       73,969        73,969  
The Coast Guard Reserve.......        8,000        8,000         8,000  
------------------------------------------------------------------------

       The conferees have approved an increase in the Naval 
     Reserve end strength, which reflects the recommendation that 
     the Navy retain one reserve P-3 squadron currently scheduled 
     for inactivation in fiscal year 1996.
       The conferees have approved an increase in the Marine Corps 
     Reserve end strength, which reflects the conferees' 
     recommendation that the authorized number or reservists on 
     active duty in support of the Marine Corps Reserve be 
     increased.
       The conferees have approved an increase in the Air National 
     Guard end strength, which reflects the conferees' 
     recommendation that the Air Force maintain the PAA squadrons 
     at 15 aircraft per squadron in fiscal year 1996.
     End strengths for the Reserves on active duty in support of 
         the Reserves (sec. 412)
       The House bill contained a provision (sec. 412) that would 
     authorize reserve full-time support end strength levels for 
     fiscal year 1996.
       The Senate amendment contained a similar provision (sec. 
     412).
       The following table summarizes the reserve full-time 
     support end strength levels for fiscal year 1996.

------------------------------------------------------------------------
                                               Fiscal year              
                                ----------------------------------------
                                      1995        1996         1996     
                                 authorization   request  recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States.................       23,650      23,390       23,390   
The Army Reserve...............       11,940      11,575       11,575   
The Naval Reserve..............       17,510      17,490       17,587   
The Marine Corps Reserve.......        2,285       2,285        2,559   
The Air National Guard of the                                           
 United States.................        9,389       9,817       10,066   
The Air Force Reserve..........          648         628          628   
------------------------------------------------------------------------

       The conferees have approved an increase in the authorized 
     number of reservists on active duty (AR's) in support of the 
     Marine Corps Reserve. The conferees note that this increase 
     is intended to complement existing active duty support, and 
     is not a substitute for any portion of the active duty 
     support that is part of the Inspector-Instructor system. 
     Therefore, the conferees direct that the Inspector-Instructor 
     support system not be reduced as a result of any AR increase. 
     Further, the conferees direct that the AR increase of 274 
     personnel be utilized to the extent that it is supported by a 
     specific appropriation. The conferees do not support 
     increasing the AR program if it means reducing any other 
     reserve programs.
       The increases in the number of reservists on active duty in 
     support of the Naval Reserve reflects the conferees' approval 
     of additional selected reserve strength to enable the Navy to 
     retain a reserve P-3 squadron.
       The increase in the number of reservists on active duty in 
     support of the Air National Guard reflects the conferees' 
     approval of selected reserve strength to enable the Air 
     National Guard to retain the PAA squadrons at 15 aircraft per 
     squadron.
     Counting of certain active component personnel assigned in 
         support of Reserve component training (sec. 413)
       The House bill contained a provision (sec. 413) that would 
     permit active duty personnel assigned to active duty units, 
     that have been and continue to be established for the 
     principal purpose of providing dedicated training support to 
     reserve component units, to be counted toward the number of 
     advisers required by section 414(c) of the National Defense 
     Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
     102-190).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Increase in the number of members in certain grades 
         authorized to serve on active duty in support of the 
         Reserves (sec. 414)
       The Senate amendment contained a provision (sec. 413) that 
     would temporarily increase the number of members of certain 
     grades authorized to serve on active duty in support of the 
     reserves.
       The House bill contained no similar provision.
       The House recedes.
     Reserves on active duty in support of Cooperative Threat 
         Reduction Programs not to be counted (sec. 415)
       The Senate amendment contained a provision (sec. 414) that 
     would exempt members of a reserve component who participate 
     in Cooperative Threat Reduction Act programs from being 
     counted against the authorized active duty end strength.
       The House bill contained no similar provision.
       The House recedes.
     Reserves on active duty for military-to-military contacts and 
         comparable activities not to be counted (sec. 416)
       The Senate amendment contained a provision (sec. 415) that 
     would amend section 168 of title 10, United States Code, to 
     exempt members of a reserve component who participate in 
     activities or programs specified in section 168, for over 180 
     days, from counting against the end strengths for members of 
     the armed services on active duty, authorized by section 
     115(a)(1) of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes.

              Subtitle C--Military Training Student Loads

     Authorization of training student loads (sec. 421)
       The House bill contained a provision (sec. 421) that would 
     approve the training students loads contained in the 
     President's budget.
       The Senate amendment contained an identical provision (sec. 
     421).
       The conference agreement includes this provision.

              Subtitle D--Authorization of Appropriations

     Authorization for increase in active duty end strengths (sec. 
         432)
       The House bill contained a provision (sec. 432) that would 
     authorize $112.0 million in additional funds available for 
     increasing military personnel end strengths within the 
     Department of Defense above those levels requested by the 
     President's budget.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                   Title V--Military Personnel Policy


                       items of special interest

     Funding for the Family Advocacy Program and the New Parent 
         Support Program
       The conferees are concerned about the adequacy of funding 
     requested by the Department of Defense for the Family 
     Advocacy Program (FAP) and the lack of funding for the New 
     Parent Support Program (NPSP). The conferees agree to provide 
     an increase of $30.0 million for the FAP and $25.6 for the 

[[Page H655]]
     NPSP. The conferees direct that the NPSP increase be allocated as 
     follows: Army--$10.0 million; Navy--$7.0 million; Marine 
     Corps--$5.0 million; Air Force--$3.6 million. The conferees 
     take this action in response to the significant strains 
     placed on military families as a result of the high 
     operations tempo in all services. The conferees consider the 
     FAP and the NPSP critical to the readiness and retention of 
     quality people.
       The conferees recognize that there is fierce competition 
     within the Department of Defense, and among the services, for 
     scarce operations and maintenance funds. The conferees are 
     concerned that the FAP and NPSP funding may be used for other 
     purposes. If the Department or a service attempt to reduce, 
     divert, or reprogram the FAP or NPSP funding for some other 
     purpose, the conferees would consider such an action to be in 
     direct contravention of congressional intent.


                         legislative provisions

                     Legislative provisions adopted

                  Subtitle A--Officer Personnel Policy

     Joint officer management (sec. 501)
       The Senate amendment contained a provision (sec. 501) that 
     would amend joint officer management policies in four areas: 
     (1) the number of required critical joint duty assignment 
     positions; (2) joint duty assignment credit for certain 
     qualifying joint task force positions; (3) the education and 
     experience sequencing requirement for the award of the joint 
     specialty to general and flag officers; and (4) tour length 
     requirements for certain officers on a second joint tour.
       The House bill contained no similar amendment.
       The House recedes with a clarifying amendment.
       The conferees note that this amendment is intended to 
     provide to the civilian and military leadership of the 
     Department of Defense some flexibility to manage the various 
     joint officer programs, without undermining the fundamental 
     tenets and goals of the Goldwater-Nichols Department of 
     Defense Reorganization Act of 1986. Therefore, none of the 
     changes included in the conference agreement should be 
     perceived as diminishing the importance of joint duty 
     assignments or the importance of rigorous preparation before 
     the award of the joint specialty or the need for judicious 
     management of those officers to whom that designator has been 
     awarded. The conferees revised the Department's original 
     proposal to preclude the Department from rapidly rotating 
     officers through joint task force assignments and thereby 
     circumventing the fundamental intent of the Goldwater-Nichols 
     Department of Defense Reorganization Act of 1986.
     
[[Page H656]]

       Regarding credit for service in joint task force and 
     multinational force positions, the conferees recognize that 
     certain positions will provide real-world joint experience 
     equal to or greater than that provided by some positions on 
     the Joint Duty Assignment List. Additionally, the conferees 
     believe that authorizing the Secretary of Defense to award 
     joint duty credit for certain officers serving in joint task 
     force positions will permit deserving in-service assignments 
     to receive joint duty assignment credit. The conferees fully 
     expect the Secretary of Defense to closely manage the award 
     of joint duty credit for such positions.
     Retired grade for officers in grades above major general and 
         rear admiral (sec. 502)
       The Senate amendment contained a provision (sec. 505) that 
     would permit the retirement of three- and four-star generals 
     and flag officers to be considered under the same standards 
     and procedures as general and flag officer retirements at the 
     one- and two-star level.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Wearing of insignia for higher grade before promotion (sec. 
         503)
       The Senate amendment contained a provision (sec. 507) that 
     would define ``frocking'' and limit the numbers of officers 
     that could be frocked to grades 0-4 through 0-7.
       Frocking is the practice of allowing an officer to wear the 
     insignia of a higher grade prior to appointment to that 
     higher grade. While the Department of Defense has attempted 
     to control the extent of frocking through regulation, the 
     practice remains a means by which the services routinely 
     circumvent the statutory limits on the number of officers 
     authorized to serve in certain grades.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Authority to extend transition period for officers selected 
         for early retirement (sec. 504)
       The House bill contained a provision (sec. 501) that would 
     authorize the secretaries of the military departments to 
     defer the date of retirement for officers selected for early 
     retirement for up to 90 days, to avoid personal hardship or 
     for other humanitarian reasons.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     service secretary to make the decision on a case-by-case 
     basis and would prohibit any delegation of this authority.
       The conferees expect the Secretary of Defense and the 
     service secretaries to modify the instructions, regulations, 
     and policies pertaining to enlisted personnel in order to 
     provide an equivalent benefit for enlisted personnel.
     Army officer manning levels (sec. 505)
       The House bill contained a provision (sec. 522) that would 
     require that, beginning in fiscal year 1999 and thereafter, 
     the annual Army end strength be sufficient to meet at least 
     90 percent of active Army officer manpower requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Authority for medical department officers other than 
         physicians to be appointed as Surgeon General (sec. 506)
       The Senate amendment contained a provision (sec. 503) that 
     would amend sections 3036, 5137, and 8036 of title 10, United 
     States Code, to permit educationally and professionally 
     qualified officers, such as dentists, nurses, and clinical 
     psychologists, as well as doctors, to be appointed as surgeon 
     general of an armed force.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Deputy Judge Advocate General of the Air Force (sec. 507)
       The Senate amendment contained a provision (sec. 504) that 
     would amend section 8037 of title 10, United States Code, to 
     adjust the tenure of the Deputy Judge Advocate General of the 
     Air Force from two years to four years and authorize the 
     grade of major general for that position.
       The House bill contained no similar provision.
       The House recedes.
     Authority for temporary promotions for certain Navy 
         lieutenants with critical skills (sec. 508)
       The House bill contained a provision (sec. 552(d)) that 
     would extend the authority for the Navy to ``spot promote'' 
     certain lieutenants serving in positions involving critical 
     skills.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would extend the 
     authority until September 30, 1996 and limit the number of 
     positions to which an officer could be promoted under this 
     authority.
     Retirement for years of service of Directors of Admissions of 
         Military and Air Force Academies (sec. 509)
       The Senate amendment contained a provision (sec. 508) that 
     would authorize the Secretary of the Army to involuntarily 
     retire the Director of Admissions, United States Military 
     Academy, after 30 years of service as a commissioned officer.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make the Air 
     Force Academy subject to the application of the provision.

           Subtitle B--Matters Relating to Reserve Components

     Extension of certain reserve officer management authorities 
         (sec. 511)
       The House bill contained a provision (sec. 552) that would 
     extend authorities that provide for the appointment, 
     promotion, and retirement of reserve officers (sec. 552 a-c), 
     and the promotion of certain officers on active duty in the 
     Navy (sec. 552d).
       The Senate amendment contained an identical provision (sec. 
     506), except for the authority to provide for the promotion 
     of certain officers on active duty in the Navy.
       The conference agreement includes the identical provisions.
       The promotion of certain officers on active duty in the 
     Navy is addressed elsewhere in the conference report.
     Mobilization Income Insurance Program for members of Ready 
         Reserve (sec. 512)
       The House bill contained a provision (sec. 517) that would 
     authorize an income protection insurance plan for members of 
     the Ready Reserve.
       The Senate amendment contained a similar provision (sec. 
     511).
       The conference agreement includes this provision.
     Military technician full-time support program for Army and 
         Air Force Reserve components (sec. 513)
       The House bill contained a provision (sec. 511) that would 
     restore military technician end strength to nearly the fiscal 
     year 1995 level and require that the Secretary of Defense, in 
     the future, manage military technicians by annual end 
     strength. This section would also prohibit military 
     technicians in certain high priority units and activities, 
     but not those at management-level headquarters, from being 
     subject to broad civilian personnel reductions. In addition, 
     this section would require the Secretary of Defense, within 
     six months of enactment, to initiate measures to consolidate 
     and streamline management-level headquarters at the National, 
     regional, and state level in the Air Force and Army Reserve 
     and National Guard. This section would also require that, 
     after the date of enactment, only dual-status technicians be 
     hired.
       The Senate amendment contained a provision (sec. 331) that 
     would establish a floor for military technicians in the Army 
     and Air Force Reserve and National Guard for fiscal years 
     1996 and 1997.
       The Senate recedes with an amendment that would establish a 
     floor for military technicians in the Army and Air Force 
     Reserve and National Guard at the House level.
       The conferees recognize the critical importance of military 
     technicians to reserve component readiness, and direct the 
     use of end-strength floors to manage this special category of 
     personnel. The conferees urge the Secretary of Defense and 
     the Secretaries of the military departments to provide the 
     requisite funding to ensure that the correct number of 
     qualified military technicians are available to ensure a 
     significant contribution to operational readiness.
     Revisions to Army Guard combat reform initiative to include 
         Army reserve under certain provisions and to make certain 
         revisions (sec. 514)
       The House bill contained a provision (sec. 513) that would 
     change the requirement of section 1111 of the Army National 
     Guard Combat Readiness Reform Act of 1992 (title XI, Public 
     Law 102-484). As revised, the section would require the Army 
     to annually provide at least 150 officers and 1,000 soldiers, 
     with at least two years prior active duty experience, to 
     national guard units.
       This section would also expand the Army selected reserve 
     requirements of sections 1112(b), 1113, 1115, 1116, and 1120 
     of the Army National Guard Combat Readiness Reform Act of 
     1992 (title XI, Public Law 102-484).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Active duty associate unit responsibility (sec. 515)
       The House bill contained a provision (sec. 519) that would 
     amend section 1131 of the Army National Guard Combat 
     Readiness Reform Act of 1992 (title XI, Public Law 102-484). 
     As revised, the provision would require that each Army 
     National Guard brigade and Army Selected Reserve unit, 
     considered essential for execution of the national strategy, 
     be associated with an active duty unit.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Leave for members of reserve components performing public 
         safety duty (sec. 516)
       The Senate amendment contained a provision (sec. 513) that 
     would amend section 6323(b) of title 5, United States Code, 
     that would permit employees who elect, when performing public 
     safety duty, to use either military leave, annual leave, or 
     compensatory time, to which they are otherwise entitled.
       The House bill contained no similar provision.
       The House recedes.
       
[[Page H657]]

     Department of Defense funding for National Guard 
         participation in joint disaster and emergency assistance 
         exercises (sec. 517)
       The Senate amendment contained a provision (sec. 361) that 
     would provide funding authority for National Guard units to 
     participate in joint exercises to prepare them to respond to 
     civil emergencies or disasters.
       The House bill contained no similar provision.
       The House recedes.

                   Subtitle C--Decorations and Awards

     Award of Purple Heart to persons wounded while held as 
         prisoners of war before April 25, 1962 (sec. 521)
       The Senate amendment contained a provision (sec. 541) that 
     would authorize award of the Purple Heart to prisoners of war 
     captured before April 1962 who were injured or wounded in 
     conjunction with their capture or imprisonment.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Authority to award decorations recognized acts of valor 
         performed in combat during the Vietnam conflict (sec. 
         522)
       The Senate amendment contained a provision (sec. 542) that 
     would authorize the Secretary of Defense or the secretaries 
     of the military departments to award a decoration for an act, 
     achievement, or service performed during the Vietnam era for 
     which there was no award provided. The provision would 
     establish a one-year period in which award recommendations 
     could be submitted for consideration and existing award 
     review procedures would be used. At the end of one year, the 
     Secretary would be required to report to the Congress on the 
     results on this review.
       The House bill contained no similar provision.
       The House recedes with an amendment to limit consideration 
     of decorations for acts of valor.
     Military intelligence personnel prevented by secrecy from 
         being considered for decorations and awards (sec. 523)
       The Senate amendment contained a provision (sec. 543) that 
     would require the secretaries of the military departments, 
     upon application, to review the records of personnel who 
     performed military intelligence duties during the Cold War 
     period.
       The House bill contained no similar provision.
       The House recedes.
       The conferees expect the secretaries of the military 
     departments to take reasonable actions to widely publicize 
     the opportunity to submit requests for consideration of 
     awards and decorations under this provision.
     Review regarding upgrading of Distinguished Service Crosses 
         and Navy Crosses awarded to Asian Americans and Native 
         American Pacific Islanders for World War II Service (sec. 
         524)
       The Senate amendment contained a provision (sec. 544) that 
     would require the Secretary of Defense to review that records 
     of Asian Americans who received the Distinguished Service 
     Cross during World War II to determine if, except for racial 
     prejudice, the act(s) would have merited award of the Medal 
     of Honor.
       The House bill contained no similar provision.
       The House recedes with an amendment which would make all 
     the services subject to the application of the provision.
     Eligibility for Armed Forces Expeditionary Medal based upon 
         service in El Salvador (sec. 525)
       The House bill contained a provision (sec. 559) that would 
     designate the country of El Salvador, during the period 
     beginning on January 1, 1981, and ending on February 1, 1992, 
     as an area and a period of time in which members of the Armed 
     forces participated in operations in significant numbers and 
     otherwise met the general requirements for award of the Armed 
     Forces Expeditionary Medal.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Procedure for consideration of military decorations not 
         previously submitted in timely fashion (sec. 526)
       The conference agreement includes a provision that would 
     establish procedures under which Members of Congress can 
     forward to the secretary of a military department a 
     recommendation for a military award or decoration, including 
     an upgrade of a previously approved award or decoration, for 
     consideration by the Secretary, without regard to time limits 
     established in law or policy. The secretary concerned will 
     make a recommendation concerning the merits of the request to 
     the Senate Committee on Armed Services and the House 
     Committee on National Security.
       In accordance with established standards, the conferees 
     believe that the burden and costs for researching and 
     assembling documentation to support approval of requested 
     awards and decorations should rest with the requestor and 
     should not cause an undue administrative burden within the 
     Legislative or Executive Branch.
       The conferees note that the Department of Defense has 
     traditionally avoided consideration of requests for review of 
     military awards on the merits by citing the expiration of 
     various time limits. The conferees, in general, do not 
     support the provision of military awards or decorations 
     through private relief bills. The conferees intend that the 
     secretaries' recommendations would be the basis for 
     consideration of a waiver of time limits, if appropriate.

                 Subtitle D--Officer Education Programs

     Revision of service obligation for graduates of the services 
         academies (sec. 531)
       The Senate amendment contained a provision (sec. 502) that 
     would reduce the service obligation for graduates of the 
     service academies from six years to five years.
       The House bill contained no similar provision.
       The House recedes.
     Nomination to service academies from Commonwealth of the 
         Northern Marianas Islands (sec. 532)
       The House bill contained a provision (sec. 564) that would 
     authorize the Resident Representative of the Commonwealth of 
     the Northern Marianas Islands to nominate one cadet for 
     attendance at each of the service academies.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Repeal of requirement for athletic director and 
         nonappropriated fund account for the athletics programs 
         at the service academies (sec. 533)
       The Senate amendment contained a provision (sec. 557) that 
     would repeal sections 4357 and 9356 of title 10, United 
     States Code, and subsections (b), (d), and (e) of sections 
     556 of the National Defense Authorization Act for Fiscal Year 
     1995 (Public Law 103-337).
       The House bill contained a similar provision (sec. 1032r).
       The conference report includes this provision.
     Repeal of requirement for program to test privatization of 
         service academy preparatory schools (sec. 534)
       The Senate amendment contained a provision (sec. 558) that 
     would terminate any test program for determining the cost 
     effectiveness of transferring, in whole or in part, the 
     mission of the military academy preparatory schools to the 
     private sector.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     ROTC access to campuses (sec. 541)
       The House bill contained a provision (sec. 1034) that would 
     deny Department of Defense grants and contracts to any 
     institution that has an anti-ROTC policy, as determined by 
     the Secretary of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     ROTC scholarships for the National Guard (sec. 542)
       The House bill contained a provision (sec. 514) that would 
     authorize the Secretary of the Army, with the agreement of 
     the ROTC cadet involved, to redesignate ongoing scholarships 
     as scholarships leading toward service in the Army National 
     Guard and to make other technical changes.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Delay in reorganization of Army ROTC regional headquarters 
         structure (sec. 543)
       The House bill contained a provision (sec. 518) that would 
     delay the closure of an Army ROTC regional headquarters until 
     the Secretary of the Army determines whether such closure is 
     in the best interests of the Army.
       The Senate amendment contained a similar provision (sec. 
     560).
       The conference agreement includes this provision.
     Duration of field training or practice cruise required under 
         the Senior ROTC program (sec. 544)
       The Senate amendment contained a provision (sec. 554) that 
     would permit the secretary of a military department to 
     prescribe the length of the field training portion or 
     practice cruise that must be completed for enrollment in the 
     Reserve Officers' Training Corps Advance Course by persons 
     who have not participated in the first two years of Reserve 
     Officers' Training Corps.
       The House bill contained no similar provision.
       The House recedes.
     Active duty officers detailed to ROTC duty at senior military 
         colleges to serve as commandant and assistant commandant 
         of cadets and as tactical officers (sec. 545)
       The House bill contained a provision (sec. 516) that would 
     require that, upon the request of any of the six senior 
     military colleges, the Secretary of Defense shall detail 
     active duty officers to serve as the commandant or assistant 
     commandant of cadets, and as tactical officers at the 
     institution.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide the 
     Secretary discretion in responding to a request from a senior 
     military college.
       The conferees expect that the service secretaries will 
     respond positively to any request, from a senior military 
     college, to provide an officer to serve as the commandant or 
     assistant commandant, or as a tactical officer.

        Subtitle E--Miscellaneous Reviews, Studies, and Reports

     Report concerning appropriate forum for judicial review of 
         Department of Defense personnel actions (sec. 551)
       The Senate amendment contained a provision (sec. 559) that 
     would establish a panel to 

[[Page H658]]
     examine whether the existing practices with regard to judicial review 
     of DOD administrative personnel actions are appropriate and 
     adequate, whether a centralized judicial review of 
     administrative personnel actions should be established, and 
     whether the United States Court of Appeals for the Armed 
     Forces should conduct such reviews. This approach has been 
     recommended by the American Bar Association.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     panel to examine whether a single federal court should 
     conduct such reviews, and, if so, which federal court should 
     be assigned that responsibility. The amendment would provide 
     the Secretary of Defense with the responsibility to establish 
     the panel. The conference agreement required that the 
     Secretary consult with the Attorney General and the Chief 
     Justice of the United States concerning appointments to the 
     panel. The conferees also required that the Secretary consult 
     with the Attorney General prior to sending the report to 
     Congress.
     Comptroller General review of proposed Army end strength 
         allocations (sec. 552)
       The House bill contained a provision (sec. 523) that would 
     require the Comptroller General of the United States to 
     determine the extent to which the Army is able to fully man 
     the combat and support forces required to carry out the 
     national security strategy and operations other than war for 
     fiscal years 1996 through 2001.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report on manning status of highly deployable support units 
         (sec. 553)
       The House bill contained a provision (sec. 524) that would 
     direct each of the secretaries of the military departments to 
     conduct a study to determine whether high-priority support 
     units, that would deploy early in a crisis, are, as a matter 
     of policy, manned at less than 100 percent of authorized 
     strengths. The provision would further require the 
     secretaries of the military departments to report the 
     findings of their studies not later than September 30, 1996.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Review of system for correction of military records (sec. 
         554)
       The Senate amendment contained a provision (sec. 555) that 
     would require the secretaries of the military departments to 
     review the composition of the Boards for the Correction of 
     Military Records and the procedures used by those boards. The 
     provision would require the submission of a report to the 
     appropriate committees of the Senate and the House of 
     Representatives by April 1, 1996.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees are concerned that the Boards for the 
     Correction of Military Records are perceived to be 
     unresponsive, bureaucratic extensions of the uniformed 
     services.
     Report on the consistency of reporting of fingerprint cards 
         and final disposition forms to the Federal Bureau of 
         Investigation (sec. 555)
       The House bill contained a provision (sec. 565) that would 
     require the Secretary of Defense to submit a report on the 
     consistency with which fingerprint cards and final 
     disposition forms are reported by the Defense Criminal 
     Investigation Organizations to the Federal Bureau of 
     Investigation.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.

                       Subtitle F--Other Matters

     Equalization of accrual of service credit for officers and 
         enlisted members (sec. 561)
       The House bill contained a provision (sec. 551) that would 
     make the criteria for accrual of service credit for officers 
     consistent with the criteria established for enlisted 
     members.
       The Senate amendment contained a similar provision (sec. 
     552).
       The conference agreement includes this provision.
     Army ranger training (sec. 562)
       The House bill contained a provision (sec. 557) that would 
     establish a baseline number of officers and enlisted 
     personnel that would have to be assigned to the Army Ranger 
     Training Brigade and would give the Secretary of the Army one 
     year to achieve that level. This provision would also require 
     that training safety cells be established in each of the 
     three major phases of the Ranger training course.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment which would require 
     the Ranger Training Brigade to be manned at 90 percent of the 
     requirements for two years, at which time the statutory 
     requirement would expire. The amendment would also require 
     the Comptroller General to assess the effectiveness of 
     corrective actions taken by the Army as a result of the 
     February 1995 accident at the Florida Ranger Training Camp. 
     The amendment also expresses the sense of the Congress that 
     the Secretary of Defense review and enhance, if necessary, 
     oversight of all high-risk training and consider 
     establishment of safety cells similar to those prescribed in 
     the Ranger Training Brigade.
       The conferees direct the secretary of defense to undertake 
     a comprehensive analysis of high-risk training activities, to 
     include, but not limited to the following: Army-Ranger; Navy 
     SEAL; Navy and Air Force Survival, Evasion, Resistance, and 
     Escape; and Airborne training. The study should identify key 
     contributing factors prejudicial to personnel safety. This 
     study shall include sensitivity analysis for each high-risk 
     training program, with particular emphasis on officer-
     enlisted ratios and instructor-student ratios. The conferees 
     direct the Secretary to submit the study results to the 
     Senate Committee on Armed Services and the House Committee on 
     National Security not later than December 31, 1996.
     Separation in cases involving extended confinement (sec. 563)
       The Senate amendment contained a provision (sec. 553) that 
     would authorize the administrative separation of a service 
     member who is sentenced by court-martial to a period of 
     confinement for one year or more.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     such a separation if the member has been sentenced to a 
     period of confinement for more than six months.
     Limitations on reductions in medical personnel (sec. 564)
       The Senate amendment contained a provision (sec. 556) that 
     would amend section 711 of the National Defense Authorization 
     Act for Fiscal Year 1991, section 718 of the National Defense 
     Authorization Act for Fiscal Years 1992 and 1993, and section 
     518 of the National Defense Authorization Act for Fiscal Year 
     1993 to modify the limitations on reductions in medical 
     personnel.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Sense of Congress concerning personnel tempo rates (sec. 565)
       The House bill contained a provision (sec. 525) that would 
     express the sense of Congress that the Secretary of Defense 
     should continue to improve the Department's personnel tempo 
     management techniques so that all personnel can expect a 
     reasonable personnel tempo rate.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Separation benefits during force reduction for officers of 
         the commissioned corps of National Oceanic and 
         Atmospheric Administration (sec. 566)
       The House bill contained a provision (sec. 566) that would, 
     at the discretion of the Secretary of Commerce, authorize for 
     officers of the Commissioned Corps of the National Oceanic 
     and Atmospheric Administration, the separation benefits 
     available to the other uniformed services.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Discharge of members of the armed forces who have the HIV-1 
         virus (sec. 567)
       The House bill contained a provision (sec. 561) that would 
     require the Secretary of Defense to separate or retire 
     service members who are identified as HIV-positive.
       The Senate amendment contained no similar provision
       The Senate recedes with an amendment that would provide the 
     discharged member with an entitlement to medical and dental 
     care within the Military Health Care System, to the same 
     extent and under the same conditions as a military retiree.
     Revision and codification of Military Family Act and Military 
         Child Care Act (sec. 568)
       The House bill contained a provision (sec. 560) that would 
     codify in title 10, United States Code, updated provisions of 
     The Military Family Act of 1985 (title VII, Public Law 99-
     145), and The Military Child Care Act of 1989 (title XV, 
     Public Law 101-189), which were instrumental in focusing 
     Department of Defense attention on the needs of military 
     families and on the importance of effective child care 
     programs.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate a 
     reporting requirement.
     Determination of whereabouts and status of missing persons 
         (sec. 569)
       The House bill contained a provision (sec. 563) that would 
     require the Secretary of Defense to centralize at the 
     Department of Defense level, the oversight and policy 
     responsibility for accounting for missing persons.
       The Senate amendment contained a similar provision (sec. 
     551).
       The Senate recedes with an amendment that would clarify and 
     integrate the two provisions.
       The conferees' intention in requiring the creation of the 
     Office for Missing Persons (section 1501) is that this office 
     will have a broad range of responsibilities that include 
     those of all the individual offices that currently have 
     responsibilities for POW/MIA matters.
       The conferees expect that the Secretary of Defense will 
     organize this new office to serve 

[[Page H659]]
     as the single focal point in the Department of Defense for POW/MIA 
     matters and consolidate the formulation and oversight of 
     search, rescue, escape and evasion and accountability 
     policies. The conferees further expect that the Secretary of 
     Defense will make every effort to ensure a close working 
     relationship with the national intelligence agencies.
       In relation to the Special Rule for Persons Classified as 
     KIA/BNR, the conferees believe that the evidence referred to 
     in section 1509(c) should be compelling evidence, such as 
     post-incident letters written by the supposedly-dead person 
     while in captivity or United States or other archival 
     evidence that directly contradicts earlier United States 
     Government determinations.
     Associate Director of Central Intelligence for Military 
         Support (sec. 570)
       The Senate amendment contained a provision (sec. 1096) that 
     would exempt the position of Associate Director of Central 
     Intelligence for Military Support from counting against the 
     numbers and percentages of officers authorized to be serving 
     in the rank and grade of such officer for the armed force of 
     which such officer is a member when neither the Director for 
     Central Intelligence or the Deputy Director for Central 
     Intelligence is a military officer.
       The House bill contained no similar provision.
       The House recedes.

      Subtitle G--Support for Non-Department of Defense Activities

     Repeal and revision of certain Civil-Military Programs (secs. 
         571, 572, 573 and 574)
       The House bill contained a provision (sec. 558) that would 
     repeal the authority for three programs established by the 
     National Defense Authorization Act for Fiscal Year 1993 
     (Public Law 102-484): the Civil-Military Cooperative Action 
     Program; the National Guard Youth Opportunities Program; and 
     the Pilot Outreach Program to Reduce the Demand for Illegal 
     Drugs. Additionally, this provision would preclude Department 
     of Defense support to the Civilian Conservation Corps.
       The Senate amendment contained several provisions that 
     would address Civil-Military Programs as follows: (1) 
     prohibit the use of funds for the Office of Civil-Military 
     Programs within the Office of the Assistant Secretary of 
     Defense for Reserve Affairs (sec. 362); (2) revise section 
     410 of title 10, United States Code, the Civil-Military 
     Cooperative Action Program (sec. 363); (3) extend the 
     authorization for the National Guard Youth Opportunities 
     Program through Fiscal Year 1997 (sec. 1083); and (4) extend 
     the duration of the Pilot Outreach Program to Reduce the 
     Demand for Illegal Drugs for two additional years (sec. 
     1099A).
       The conference agreement includes several provisions (secs. 
     571, 572, 573, and 574) that would: (1) replace section 410 
     of title 10, United States Code, with a new section, that 
     would authorize support and services for certain eligible 
     organizations and activities outside of the Department of 
     Defense (sec. 2012); (2) prohibit the use of funds for the 
     Office of Civil-Military Programs within the Office of the 
     Assistant Secretary of Defense for Reserve Affairs or for any 
     other entity within the Office of the Secretary of Defense 
     that has an exclusive or principal mission of providing 
     centralized direction for activities under section 572 of 
     this Act; (3) extend that authorization for the National 
     Guard Youth Opportunities Program for 18 months from 
     enactment and limit the number of programs to the number in 
     effect on September 30, 1995. The Conference Agreement did 
     not extend the duration of the Pilot Outreach Program to 
     Reduce Demand for Illegal Drugs.
       Regarding the repeal of specific authority for the Civil-
     Military Cooperative Program and the absence of an extension 
     of the Pilot Outreach Program to Reduce the Demand for 
     Illegal Drugs, the conferees note that the Young Marines, the 
     Seaborne Conservation Corps, and other programs operated 
     under Department of Defense and service policy prior to the 
     October 1992 enactment of the statutory authorities for the 
     various civil-military programs. The conferees expect that 
     the Young Marines, the Seaborne Conservation Corps and other 
     similar programs should be able to continue operations in 
     accordance with the pre-October 1992 authorities.
       The conferees intend that the 18-month extension of the 
     National Guard Youth Opportunities Program would permit these 
     programs to develop non-Department of Defense sources of 
     funding in order to continue operation after the authority in 
     this extension expires.
       Regarding support and services for eligible organizations 
     and activities outside of the Department of Defense, the 
     conferees intend that the ``customary community relations and 
     public affairs activities'', referred to in section 
     572(b)(1), provide for the use of Department of Defense 
     resources to support public events, including such activities 
     as the honor guards, static displays of equipment, bands, and 
     demonstrations, and rely heavily on volunteer support. 
     Department of Defense resources should be considered 
     available for community relations support only after all 
     military needs have been met. Additionally, the conferees 
     expect that, concerning the exception to the relationship to 
     military training, referred to in section 572(d)(2), most 
     manpower requests for assistance under this exception will be 
     met by volunteers, and that any assistance other than 
     manpower will be extremely limited. With respect to such 
     exception, Government vehicles may be used, but only to 
     provide transportation of military manpower to and from the 
     work site. The use of government aircraft in assistance under 
     this exception is prohibited.


                   legislative provisions not adopted

     Report on feasibility of providing education benefits 
         protection insurance for service academy and ROTC 
         scholarship students who become medically unable to serve
       The House bill contained a provision (sec. 515) that would 
     require the Secretary of Defense to conduct a study on the 
     need and feasibility of establishing a no cost to the 
     government disability insurance plan for service academy and 
     Reserve Officers' Training Corps scholarship students.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that private insurance companies 
     could provide the needed coverage without requiring further 
     study by the Secretary of Defense. Accordingly, the conferees 
     direct the Secretary to cooperate with private insurers and 
     to make insurance information available to students in a 
     manner that the Secretary determines to be essentially 
     consistent with the way private insurance information is 
     handled elsewhere within the Department of Defense.
     Authority to appoint Brigadier General Charles E. Yeager, 
         United States Air Force (retired) to the grade of major 
         general on the retired list
       The House bill contained a provision (sec. 562) that would 
     authorize the President to advance Brigadier General Charles 
     E. Yeager (retired) to the grade of major general on the 
     retired list.
       The Senate amendment contained no similar provision.
       The House recedes.

          Title VI--Compensation and Other Personnel Benefits


                         legislative provisions

                     legislative provisions adopted

                     Subtitle A--Pay and Allowances

     Military pay raise for fiscal year 1996 (sec. 601)
       The House bill contained a provision (sec. 601) that would 
     provide a 2.4 percent military pay raise for all the 
     uniformed services, except the National Oceanic and 
     Atmospheric Administration. Additionally, the provision would 
     increase by 5.2 percent the rates of the basic allowance for 
     quarters for members of the uniformed services. These 
     increases would be effective January 1, 1996.
       The Senate amendment contained a similar provision that 
     would apply to all uniformed services (sec. 601).
       The House recedes with an amendment.
       The conferees note that the President issued an Executive 
     Order on December 28, 1995 to provide a 2.0 percent pay raise 
     to military personnel under section 1009, title 10, United 
     States Code to correspond with an increase in federal 
     civilian pay effective January 1, 1996. Consequently, the 
     conferees agree to amend the original provision to rescind 
     the Executive Order and provide authority for an increase of 
     2.4 percent in the rates of military basic pay and basic 
     allowance for subsistence and 5.2 percent in the basic 
     allowance for quarters retroactively to January 1, 1996.
     Limitation on basic allowance for subsistence for members 
         residing without dependents in government quarters (sec. 
         602)
       The House bill contained a provision (sec. 602) that would 
     require the secretaries of the military departments to allow 
     no more than 12 percent of the service members without 
     dependents who reside in government quarters to receive basic 
     allowance for subsistence (BAS). The provision would also 
     require the Secretary of Defense to submit a report to 
     confirm the current number of service members in this 
     category and to establish a standard for the appropriate 
     percentage of personnel who are eligible to receive BAS.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Election of basic allowance for quarters instead of 
         assignment to inadequate quarters (sec. 603)
       The Senate amendment contained a provision (sec. 602) that 
     would authorize payment of the basic allowance for quarters 
     (BAQ) and variable housing allowance (VHA) (and overseas 
     housing allowance (OHA) if assigned overseas) to single 
     members in the paygrade E-6 and above who have been assigned 
     to quarters that do not meet minimum adequacy standards 
     established by the Department of Defense.
       The House bill contained no similar provision.
       The House recedes.
     Payment of basic allowance for quarters to members in pay 
         grade E-6 who are assigned to sea duty (sec. 604)
       The House bill contained a provision (sec. 603) that would 
     authorize payment of basic allowance for quarters and 
     variable housing allowance to single E-6 personnel assigned 
     to shipboard sea duty.
       The Senate amendment contained a similar provision (sec. 
     603).
       The conference agreement includes this provision.
     Limitation on reduction of variable housing allowance for 
         certain members (sec. 605)
       The House bill contained a provision (sec. 604) that would 
     authorize the Secretary of 

[[Page H660]]
     Defense to establish a minimum amount of variable housing allowance 
     (VHA) to meet the cost of adequate housing in high cost 
     areas. The provision would also prevent the reduction of the 
     amount of VHA paid to an individual, as long as the member 
     retains uninterrupted eligibility to receive VHA in the 
     housing area and the member's housing costs are not reduced.
       The Senate amendment contained a provision (sec. 604) that 
     would prevent reduction of the amount of variable housing 
     allowance (VHA) paid to an individual, as long as the service 
     member retains uninterrupted eligibility to receive VHA in 
     the housing area and the service member's housing costs are 
     not reduced.
       The House recedes with a technical amendment.
       The conferees believe that, if the current mechanism for 
     determining VHA rates is inadequate, the Secretary of Defense 
     should notify the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House. Such 
     notification should include a recommended solution and all 
     appropriate justification.
     Clarification of limitation on eligibility for Family 
         Separation Allowance (sec. 606)
       The House bill contained a provision (sec. 605) that would 
     authorize the payment of family separation allowance to 
     service members on board a ship that is away from homeport, 
     even though the service member elected to remain 
     unaccompanied by dependents at the permanent duty station.
       The Senate amendment contained a similar provision (sec. 
     605) that also authorized payment of family separation 
     allowance when members are on temporary duty away from 
     permanent duty station.
       The House recedes.

           Subtitle B--Bonuses and Special and Incentive Pays

     Extension of certain bonuses for reserve forces (sec. 611)
       The House bill contained a provision (sec. 611) that would 
     extend until September 30, 1998 the authority for the 
     selected reserve reenlistment bonus, the selected reserve 
     enlistment bonus, the selected reserve affiliation bonus, the 
     ready reserve enlistment and reenlistment bonus, and the 
     prior service enlistment bonus.
       The Senate amendment contained a similar provision (sec. 
     611) that would provide for extensions to September 30, 1997.
       The House recedes.
     Extension of certain bonuses and special pay for nurse 
         officer candidates, registered nurses, and nurse 
         anesthetists (sec. 612)
       The House bill contained a provision (sec. 612) that would 
     extend until September 30, 1998 the authority for the nurse 
     officer candidate accession program, the accession bonus for 
     registered nurses, and the incentive special pay for nurse 
     anesthetists.
       The Senate amendment contained a similar provision (sec. 
     612) that would provide for extensions to September 30, 1997.
       The House recedes.
     Extension of authority relating to payment of other bonuses 
         and special pays (sec. 613)
       The House bill contained a provision (sec. 613) that would 
     extend until September 30, 1998 the authority for the 
     aviation officer retention bonus, the reenlistment bonus for 
     active members, enlistment bonuses for critical skills, 
     special pay for enlisted members of the selected reserve 
     assigned to certain high-priority units, special pay for 
     nuclear-qualified officers extending the period of active 
     service, and the nuclear career accession bonus. The 
     provision would also extend the authority for repayment of 
     education loans for certain health professionals who serve in 
     the selected reserve and the nuclear career annual incentive 
     bonus to October 1, 1998.
       The Senate amendment contained a similar provision (sec. 
     613) that would provide for extensions to September 30 and 
     October 1, 1997.
       The House recedes with a clarifying amendment.
     Codification and extension of special pay for critically 
         short wartime health specialists in the selected reserves 
         (sec. 614)
       The House bill contained a provision (sec. 614) that would 
     amend title 37, United States Code, to include authorization 
     of special pay for critically short wartime health 
     specialists in the selected reserves and extend the authority 
     for the special pay to September 30, 1998.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to limit the extension 
     of authority to September 30, 1997.
     Hazardous duty incentive pay for warrant officers and 
         enlisted members serving as air weapons controllers (sec. 
         615)
       The Senate amendment contained a provision (sec. 614) that 
     would authorize special hazardous duty incentive pay for 
     enlisted members serving as air weapons controllers aboard 
     airborne warning and control systems.
       The House bill contained no similar provision.
       The House recedes.
     Aviation career incentive pay (sec. 616)
       The House bill contained a provision (sec. 615) that would 
     reduce the initial operational flying requirement for 
     Aviation Career Incentive Pay from 9 of the first 12 years to 
     8 of the first 12 years of aviation service.
       The Senate amendment contained a similar provision (sec. 
     615) that would also restrict to the service secretary the 
     authority to grant waivers of the number of years.
       The House recedes.
     Clarification of authority to provide special pay for nurses 
         (sec. 617)
       The Senate amendment contained a provision (sec. 616) that 
     would add military nurses to the list of health care 
     professionals who are eligible to receive a special pay for 
     being board certified in their specialty.
       The House bill contained no similar provision.
       The House recedes.
     Continuous entitlement to career sea pay for crew members of 
         ships designated as tenders (sec. 618)
       The House bill contained a provision (sec. 616) that would 
     authorize personnel assigned to tenders to receive career sea 
     pay.
       The Senate amendment contained a similar provision (sec. 
     617).
       The conference agreement includes this provision.
     Increase in maximum rate of special duty assignment pay for 
         enlisted members serving as recruiters (sec. 619)
       The House bill contained a provision (sec. 617) that would 
     authorize payment of a maximum monthly rate of $375 of 
     additional special duty assignment pay to recruiters.
       The Senate amendment contained an identical provision (sec. 
     618).
       The conference agreement includes this provision.

            Subtitle C--Travel and Transportation Allowances

     Repeal of requirement regarding calculation of allowances on 
         basis of mileage tables (sec. 621)
       The Senate amendment contained a provision (sec. 621) that 
     would amend section 104(d)(1)(A) of title 37, United States 
     Code, to repeal the requirement that travel mileage tables be 
     prepared under the direction of the Secretary of Defense.
       The House bill contained no similar provision.
       The House recedes.
     Departure allowances (sec. 622)
       The Senate amendment contained a provision (sec. 622) that 
     would equalize evacuation allowances to ensure equitable 
     treatment of military dependents, civilians and their 
     dependents, when officially authorized or ordered to evacuate 
     an overseas area.
       The House bill contained no similar provision.
       The House recedes.
     Transportation of nondependent child from member's station 
         overseas after loss of dependent status while overseas 
         (sec. 623)
       The House bill contained a provision (sec. 621) that would 
     authorize dependent children, who lose eligibility as 
     dependents for any reason while overseas, to return to the 
     United States one time at government expense prior to the 
     sponsor receiving permanent-change-of-station orders.
       The Senate amendment contained a similar provision (sec. 
     624).
       The conference agreement includes this provision.
     Authorization of dislocation allowance for moves in 
         connection with base realignments and closures (sec. 624)
       The House bill contained a provision (sec. 622) that would 
     authorize the payment of dislocation allowance for service 
     members directed to move as a result of the closure or 
     realignment of an installation.
       The Senate amendment contained a similar provision (sec. 
     623).
       The conference agreement includes this provision.

    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

     Effective date for military retiree cost-of-living 
         adjustments for fiscal years 1996, 1997 and 1998 (sec. 
         631)
       The House bill contained a provision (sec. 633) that would 
     conform the military retired pay cost-of-living adjustment 
     (COLA) payment date with the payment date established for 
     Federal civilian retirees by making the military retired pay 
     COLA first payable during March 1996, rather than September 
     1996.
       The Senate amendment contained a provision (sec. 641) that 
     would provide that the 1996 military retired pay cost-of-
     living adjustment be effective the first day of March 1996. 
     In subsequent years, the cost-of-living adjustment would be 
     effective the first day of December of each year.
       The House recedes with an amendment that would provide that 
     the military retired pay COLAs for fiscal years 1996 and 1997 
     be effective the first day of March, 1996, and the first day 
     of December, 1996, respectively. The provision would also 
     require that the effective date for COLAs during fiscal year 
     1998 conform to the date prescribed for Federal civilian 
     retirees.
       The conferees acknowledge that restoring equity to the 
     payment of COLAs to military retirees has been a priority 
     concern since passage of the Omnibus Budget Reconciliation 
     Act of 1993 which caused military retirees to receive their 
     COLAs later than their civilian counterparts. The solution 
     specified in this provision is a welcome end to the inequity 
     between the two groups of retirees.
     Denial of non-regular service retired pay for reserves 
         receiving certain court-martial sentences (sec. 632)
       The Senate amendment contained a provision (sec. 642) that 
     would authorize the Secretaries of the military departments 
     to deny 

[[Page H661]]
     retired pay to non-regular service members who are convicted of an 
     offense under the Uniform Code of Military Justice and whose 
     sentence includes death, a dishonorable discharge, a bad 
     conduct discharge, or dismissal. The provision would treat 
     both regular and non-regular service members equitably.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Report on payment of annuities for certain military surviving 
         spouses (sec. 633)
       The Senate amendment contained a provision (sec. 648) that 
     would require the Secretary of Defense to determine the 
     number of surviving spouses of retired careerists who died 
     before March 21, 1974 and retired pay eligible reserve 
     retirees under age 60 who died before September 30, 1978, and 
     report to the Senate Committee on Armed Services and the 
     House Committee on National Security. These groups of 
     surviving spouses have become known as ``Forgotten Widows'' 
     since they were widowed before provisions of the Survivor 
     Benefit Plan were applicable to them.
       The House bill contained no similar provision.
       The House recedes.
     Payment of back quarters and subsistence allowances to World 
         War II veterans who served as guerrilla fighters in the 
         Philippines (sec. 634)
       The conference agreement includes a provision that would 
     require the service secretaries, on request, to pay the 
     quarters and subsistence allowance that was not paid to 
     certain guerrilla fighters in the Philippines during World 
     War II.
     Authority for relief from previous overpayments under minimum 
         income widows program (sec. 635)
       The conference agreement includes a provision that would 
     permit the Secretary of Defense to waive the recovery of any 
     overpayment made before enactment of the conference report 
     and that is attributable to a failure by the Department of 
     Defense to apply eligibility requirements correctly.
       The conferees expect the Secretary of Defense to direct the 
     Defense Finance and Accounting Service to stop sending 
     collection letters to widows expected to be covered under 
     this provision.
     Transitional compensation for dependents of members of the 
         armed forces separated for dependent abuse (sec. 636)
       The House bill contained a provision (sec. 556) that would 
     require the Secretary of Defense to retroactively provide 
     compensation to certain eligible dependents inadvertently 
     excluded from the program.
       The Senate amendment contained a provision (sec. 649) that 
     would amend section 1059(d) of title 10, United States Code, 
     to include transitional compensation for dependents whose 
     sponsor forfeited all pay and allowances, but was not 
     separated from the service.
       The Senate recedes with a clarifying amendment.

                       Subtitle E--Other Matters

     Payment to survivors of deceased members for all leave 
         accrued (sec. 641)
       The Senate amendment contained a provision (sec. 647) that 
     would permit survivors of deceased members of the uniformed 
     services to be paid for all leave accrued. This provision 
     will enable survivors to be paid for leave accrued above the 
     60 day limit.
       The House bill contained no similar provision.
       The House recedes.
     Repeal of reporting requirements regarding compensation 
         matters (sec. 642)
       The House bill contained a provision (sec. 631) that would 
     eliminate a report on dependents accompanying members on 
     assignments to overseas locations and simplify the 
     requirement for the President to submit to the Congress 
     recommendations on military pay matters.
       The Senate amendment contained a similar provision (sec. 
     1072(d)).
       The Senate recedes with an amendment that would combine the 
     two provisions.
     Recoupment of administrative expenses in garnishment actions 
         (sec. 643)
       The Senate amendment contained a provision (sec. 643) that 
     would amend section 5502 of title 5, United States Code, to 
     shift the burden for payment of administrative costs, 
     incurred incident to garnishment actions, from the employee 
     to the creditor.
       The House bill contained no similar provision.
       The House recedes.
     Report on extending to junior noncommissioned officers 
         privileges provided for senior noncommissioned officers 
         (sec. 644)
       The Senate amendment contained a provision (sec. 646) that 
     would require the Secretary of Defense to study and report to 
     the Congress on methods of improving the working conditions 
     of noncommissioned officers in pay grades E-5 and E-6. This 
     report, and the accompanying legislative recommendations, 
     should provide the committee a road map to continue quality 
     of life improvements.
       The House bill contained no similar provision.
       The House recedes.
     Study regarding joint process for determining location of 
         recruiting stations (sec. 645)
       The House bill contained a provision (sec. 632) that would 
     require the Secretary of Defense to conduct a study of the 
     process for determining the location and manning of 
     recruiting stations. The study would be based on market 
     research and analysis conducted jointly by the military 
     departments.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Automatic maximum coverage under Servicemen's Group Life 
         Insurance (sec. 646)
       The Senate amendment contained a provision (sec. 644) that 
     would automatically enroll service members at the maximum 
     insurance level of $200,000, instead of the $100,000 level 
     currently in law.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delay 
     implementation until April 1, 1996.
     Termination of servicemen's group life insurance for members 
         of the Ready Reserve who fail to pay premiums (sec. 647)
       The Senate amendment contained a provision (sec. 645) that 
     would authorize the Secretary of Defense to terminate 
     coverage under the Servicemen's Group Life Insurance for 
     members of the ready reserve who fail to make premium 
     payments for 120 days.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delay 
     implementation until April 1, 1996.


                   legislative provisions not adopted

     Repeal of prohibition on payment of lodging expenses when 
         adequate Government quarters are available
       The House bill contained a provision (sec. 623) that would 
     repeal the prohibition on payment of lodging expenses when 
     adequate government quarters are available.
       The Senate amendment contained no similar provision.
       The House recedes.

                   Title VII--Health Care Provisions


                       items of special interest

     Follow-on medical care for certain members of former members 
         of the Armed Forces and their dependents
       The conferees note that some service members, as a result 
     of receiving transfusions at military hospitals were placed 
     at risk of contracting a serious communicable disease and 
     subsequently transmitting it to their dependents.
       The case of Douglas Simon of Eden Prairie, Minnesota, and 
     his family, is an example of the very tragic situation that 
     can arise following a transfusion of contaminated blood. In 
     1983, while serving in the Army National Guard, Mr. Simon was 
     infected with the AIDS virus after undergoing a blood 
     transfusion at Fort Benning, Georgia. Subsequently, he 
     unknowingly transmitted the virus to his spouse, Nancy, who 
     in turn, transmitted the virus to their daughter Candace. 
     Candace became ill and died of AIDS in 1993 at the age of 
     five. Both Mr. and Mrs. Simon are now in the terminal stages 
     of AIDS and their two remaining children Brian, 11, and Eric, 
     9, will be orphaned. To date, the Department of Defense has 
     not accepted any financial responsibility for the treatment 
     of Mr. or Mrs. Simon, or the future of the two children. The 
     conferees direct the Secretary of Defense to review the 
     Department's role in this case and to determine whether the 
     Department of Defense should provide fair compensation to 
     these and other similarly affected persons.


                         legislative provisions

                     Legislative provisions adopted

                    Subtitle A--Health Care Services

     Modifications of requirements regarding routine physical 
         examinations and immunizations under CHAMPUS (sec. 701)
       The House bill contained a provision (sec. 701) that would 
     amend section 1079(a) of title 10, United States Code, by 
     expanding ``well-baby visits'' and immunizations to 
     dependents under the age of six, by authorizing immunizations 
     at age six and above and by adding coverage of health 
     promotion and disease prevention visits associated with 
     immunizations, pap smears and mammograms.
       The Senate amendment contained a similar provision (sec. 
     703).
       The conference agreement includes this provision.
     Correction of inequities in medical and dental care and death 
         and disability benefits for certain reservists (sec. 702)
       The House bill contained a provision (sec. 702) that would 
     authorize reservists the same death and disability benefits 
     as active duty members, during off-duty periods between 
     successive inactive duty training periods performed at 
     locations outside the reasonable commuting distance from the 
     member's residence.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Medical care for surviving dependents of retired Reserves who 
         die before age 60 (sec. 703)
       The Senate amendment contained a provision (sec. 701) that 
     would permit survivors of ``gray area'' retirees, members of 
     the retired reserve who have not attained the age of 60 
     years, to receive medical care as if the sponsor had attained 
     60 years of age and was receiving retirement benefits.
       The House bill contained no similar provision.
       
[[Page H662]]

       The House recedes.
     Medical and dental care for members of the Selected Reserve 
         assigned to early deploying units of the Army Selected 
         Reserve (sec. 704) and dental insurance for members of 
         the Selected Reserve (sec. 705)
       The House bill contained a provision (sec. 703) that would 
     require the Secretary of the Army to provide medical and 
     dental screenings, physical exams for members over 40, and 
     the dental care required to meet dental readiness standards 
     for units scheduled for deployment within 75 days of 
     mobilization.
       The provision would also require the Secretary of Defense 
     to conduct a demonstration program to offer members of the 
     selected reserve dental readiness insurance on a voluntary 
     basis, at no cost to the Department of Defense.
       The Senate amendment contained a provision (sec. 702) that 
     would require the Secretary of Defense to establish a dental 
     insurance plan for members of the selected reserve. The 
     provision would require a plan, similar to the active duty 
     dependent dental insurance plan, with voluntary enrollment 
     and premium sharing by the member.
       The House recedes with two amendments. One requires the 
     Secretary of Defense to establish a dental insurance plan for 
     members of the selected reserve in fiscal year 1997. The 
     amendment also provides authority for the Secretary to 
     conduct the necessary surveys, preparation work, and a test 
     of the plan in fiscal year 1996. The other amendment requires 
     the Secretary of the Army to provide medical and dental care 
     to members of early deploying units of the selective reserve.
     Permanent authority to carry out Specialized Treatment 
         Facility Program (sec. 706)
       The Senate amendment contained a provision (sec. 704) that 
     would amend section 1105 of title 10, United States Code, by 
     repealing subsection (h), the sunset provision, to make the 
     Specialized Treatment Facility Program permanent.
       The House bill contained no similar provision.
       The House recedes.

                      Subtitle B--TRICARE Program

     Definition of TRICARE Program (sec. 711)
       The Senate amendment contained a provision (sec. 711) that 
     would define the TRICARE program and other terms of art in 
     the statute.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Priority use of military treatment facilities for persons 
         enrolled in managed care initiatives (sec. 712)
       The House bill contained a provision (sec. 711) that would 
     amend title 10, United States Code, to require the Secretary 
     of Defense, as an incentive for enrollment, to establish 
     reasonable priorities for services provided at military 
     treatment facilities for TRICARE-enrolled beneficiaries.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Staggered payment of enrollment fees for TRICARE program 
         (sec. 713)
       The House bill contained a provision (sec. 712) that would 
     amend section 1097(e) of title 10, United States Code, to 
     require the Secretary of Defense to allow beneficiaries to 
     pay any required enrollment fees on a monthly or quarterly 
     basis, at no additional cost to the beneficiary.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment limiting the payments 
     to a quarterly basis.
       The conferees direct the Secretary of Defense to establish 
     procedures for retired service members to pay enrollment fees 
     by allotment.
     Requirement of budget neutrality for TRICARE program to be 
         based on entire program (sec. 714)
       The House bill contained a provision (sec. 713) that would 
     clarify the requirement for the TRICARE HMO option to be 
     budget neutral by requiring that the combined effect of all 
     three TRICARE options be budget neutral.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Training in health care management and administration for 
         TRICARE lead agents (sec. 715)
       The House bill contained a provision (sec. 714) that would 
     direct the Secretary of Defense to ensure that military 
     medical treatment facility commanders, selected to serve as 
     lead agents for the Department's managed health-care program, 
     TRICARE, receive appropriate training in health-care 
     management and administration.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add key 
     subordinates to the training requirement.
     Pilot program of individualized residential mental health 
         services (sec. 716)
       The House bill contained a provision (sec. 746) that would 
     direct the Secretary of Defense to study the feasibility of 
     expanding mental health services to include ``wraparound'' 
     services, and to include the requirement that providers share 
     financial risk through case-rate reimbursement, and then to 
     report the results of the study to Congress by March 1, 1996.
       The Senate amendment contained a provision (sec. 714) that 
     would direct the Secretary of Defense to implement a program 
     of residential treatment for seriously emotionally disturbed 
     and complex-needs adolescents. This treatment would 
     incorporate the concept of ``wraparound services'' in one 
     TRICARE region. The Secretary would be required to report on 
     the evaluation of this program not later than eighteen months 
     after the program is implemented.
       The House recedes with a clarifying amendment.
     Evaluation and report on TRICARE program effectiveness (sec. 
         717)
       The House bill contained a provision (sec. 715) that would 
     require the Secretary of Defense to obtain an ongoing 
     independent evaluation of the TRICARE program and to provide 
     an annual report to Congress on the results of the 
     evaluation. The evaluation should report on efforts to make 
     TRICARE Prime, the HMO option, available in non-catchment and 
     rural areas.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Sense of Congress regarding access to health care under 
         TRICARE program for covered beneficiaries who are 
         Medicare eligible (sec. 718)
       The Senate amendment contained a provision (sec. 713) that 
     would express the sense of the Senate that the Secretary of 
     Defense should develop a program to ensure that covered 
     beneficiaries who are eligible for Medicare and who reside in 
     a region in which TRICARE has been implemented have access to 
     health care services under TRICARE and that the Department of 
     Defense be reimbursed for those services.
       The house bill contained no similar provision.
       The House recedes with an amendment that makes the 
     provision a sense of Congress.

          Subtitle C--Uniformed Services Treatment Facilities

     Delay of termination of status of certain facilities as 
         Uniformed Services Treatment Facilities (sec. 721)
       The Senate amendment contained a provision (sec. 721) that 
     would extend until September 30, 1997, the designation of 
     Uniformed Services Treatment Facilities (USTF) as military 
     treatment facilities (MTF).
       The House bill amendment contained no similar provision.
       The House recedes.
     Limitation on expenditures to support Uniformed Services 
         Treatment Facilities (sec. 722)
       The House bill contained a provision (sec. 721) that would 
     amend the National Defense Authorization Act for Fiscal Year 
     1984 (Public Law 98-94) to limit the amount authorized to 
     $300.0 million for the Department of Defense Uniformed 
     Services Treatment Facilities (USTFs) managed care plan. This 
     section would limit beneficiary enrollment in the USTF 
     program to the number enrolled as of September 30, 1995.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the limit on the number of enrollees.
     Application of CHAMPUS payment rules in certain cases (sec. 
         723)
       The Senate amendment contained a provision (sec. 723) that 
     would amend section 1074 of title 10, United States Code, to 
     include the Uniformed Services Treatment Facilities (USTF) in 
     the authority under which a USTF could be reimbursed for care 
     provided to a Department of Defense eligible enrollee who 
     receives care out of the local area of the USTF in which they 
     are enrolled.
       The House bill contained no similar provision.
       The House recedes.
     Application of federal acquisition regulation to 
         participation agreements with Uniformed Services 
         Treatment Facilities (sec. 724)
       The House bill contained a provision (sec. 722) that would 
     amend the National Defense Authorization Act for Fiscal Year 
     1991 (Public Law 101-510) by repealing the Federal 
     Acquisition Regulation (FAR) exemption granted to the 
     Uniformed Services Treatment Facilities (USTFs).
       The Senate amendment contained a similar provision (sec. 
     722).
       The Senate recedes.
     Development of plan for integrating Uniformed Services 
         Treatment Facilities in managed care programs of 
         Department of Defense (sec. 725)
       The House bill contained a provision (sec. 723) that would 
     amend section 718(c) of the National Defense Authorization 
     Act for Fiscal Year 1991 (Public Law 101-510) to require the 
     Secretary of Defense to submit to Congress a plan under which 
     the 10 Uniformed Services Treatment Facilities (USTFs) would 
     be integrated into the Department of Defense's managed 
     health-care program by September 30, 1997. In addition, this 
     section would require the Secretary to assess the feasibility 
     of implementing a modified version of USTF option II.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       
[[Page H663]]

     Equitable implementation of uniform cost sharing requirements 
         for Uniformed Services Treatment Facilities (sec. 726)
       The House bill contained a provision (sec. 724) that would 
     direct the Secretary of Defense to apply uniform cost shares 
     to each of the 10 Uniformed Services Treatment Facilities 
     (USTFs) only upon regional implementation of the TRICARE 
     managed health care program in the USTF's service area. It 
     would also direct the GAO to evaluate the effect of TRICARE 
     cost shares on USTFs.
       The Senate amendment contained a provision (sec. 712) that 
     would require the Uniformed Services Treatment Facilities to 
     implement the TRICARE uniform benefit concurrent with the 
     implementation of TRICARE in that region. The recommended 
     provision would exempt a covered beneficiary who has been 
     continuously enrolled on and after January 1, 1995.
       The Senate recedes with a technical amendment.
     Elimination of unnecessary annual reporting requirements 
         regarding Uniformed Services Treatment Facilities (sec. 
         727)
       The House bill contained a provision (sec. 736) that would 
     eliminate unnecessary annual reporting requirements regarding 
     military health care.
       The Senate amendment contained no similar provision.
       The Senate recedes.

   Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

     Maximum allowable payments to individual health-care 
         providers under CHAMPUS (sec. 731)
       The House bill contained a provision (sec. 731) that would 
     amend title 10, United States Code, to codify a provision of 
     the Department of Defense Appropriations Act for Fiscal Year 
     1995 (Public Law 103-335) that establishes a process for 
     gradually reducing CHAMPUS maximum payment amounts to those 
     limits for similar services under Medicare.
       The Senate amendment contained a similar provision (sec. 
     732).
       The conference agreement includes this provision.
     Notification of certain CHAMPUS covered beneficiaries of loss 
         of CHAMPUS eligibility (sec. 732)
       The House bill contained a provision (sec. 743) that would 
     direct the administering secretaries to develop a mechanism 
     for notifying beneficiaries of their ineligibility for 
     CHAMPUS health benefits when the loss of CHAMPUS eligibility 
     is due to disability status.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Personal services contracts for medical treatment facilities 
         of the Coast Guard (sec. 733)
       The Senate amendment contained a provision (sec. 733) that 
     would authorize the Secretary of Transportation to use the 
     personal services contract authority, currently available to 
     the Secretary of Defense, to contract for health care 
     providers in support of the Coast Guard.
       The House bill contained no similar provision.
       The House recedes.
     Identification of third-party payer situations (sec. 734)
       The House bill contained a provision (sec. 733) that would 
     authorize the Secretary of Defense to prescribe regulations 
     for the collection of information from covered beneficiaries 
     regarding insurance, medical service, or health plans of 
     third-party payers.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Redesignation of Military Health Care Account as Defense 
         Health Program Account and two-year availability of 
         certain account funds (sec. 735)
       The House bill contained a provision (sec. 734) that would 
     amend section 1100 of title 10, United States Code, to allow 
     the Secretary of Defense to carry over three percent of the 
     defense health plan annual operation and maintenance 
     appropriations to the end of the next fiscal year.
       The Senate amendment contained a similar provision (sec. 
     731).
       The conference agreement includes this provision.
     Expansion of financial assistance program for health care 
         professionals in reserve components, to include dental 
         specialties (sec. 736)
       The House bill contained a provision (sec. 735) that would 
     authorize financial assistance for qualified dentists engaged 
     in training for a dental specialty which is critically needed 
     in wartime.
       The Senate amendment contained a similar provision (sec. 
     512).
       The conference agreement includes this provision.
     Applicability of limitation on prices of pharmaceuticals 
         procured for Coast Guard (sec. 737)
       The Senate amendment contained in provision (sec. 743) that 
     would include the Coast Guard in the pharmaceutical purchase 
     program administered by the Department of Veterans Affairs.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Expansion of existing restriction on use of defense funds for 
         abortions (sec. 738)
       The House bill contained a provision (sec. 732) that would 
     amend section 1093 of title 10, United States Code, to 
     restrict the Department of Defense (DOD) from using medical 
     treatment facilities or other DOD facilities, as well as DOD 
     funds, to perform abortions, unless necessary to save the 
     life of the mother.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     the use of Department of Defense facilities to perform 
     abortions except in cases where the pregnancy is the result 
     of rape or incest or in cases when the life of the mother is 
     endangered. The amendment would retain the prohibition on the 
     use of Department of Defense funds for abortions except in 
     cases when the life of the mother in endangered.

                       Subtitle E--Other Matters

     Tri-service nursing research (sec. 741)
       The Senate amendment contained a provision (sec. 741) that 
     would authorize establishment of a tri-service research 
     program at the Uniformed Services University of the Health 
     Sciences.
       The House bill contained no similar provision.
       The House recedes.
     Termination of program to train military psychologists to 
         prescribe psychotropic medications (sec. 742)
       The House bill contained a provision (sec. 741) that would 
     direct the Department of Defense to terminate the pilot 
     demonstration program and to withdraw the authority to 
     prescribe psychotropic drugs from psychologists who 
     participated in the demonstration program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     any new enrollments, permit current students to complete the 
     training, and require a General Accounting Office evaluation 
     of the program.
     Waiver of collection of payments due from certain persons 
         unaware of loss of CHAMPUS eligibility (sec. 743)
       The House bill contained a provision (sec. 742) that would 
     authorize the Secretaries of Defense, Transportation and 
     Health and Human Services to waive the collection of certain 
     payments described for beneficiaries of the Civilian Health 
     and Medical Program of the Uniformed Services (CHAMPUS). This 
     waiver would apply to CHAMPUS beneficiaries who lost their 
     CHAMPUS eligibility prior to Medicare entitlement because of 
     a disability or end-stage renal disease.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Demonstration program to train military medical personnel in 
         civilian shock trauma units (sec. 744)
       The House bill contained a provision (sec. 744) that would 
     require the Secretary of Defense to conduct a demonstration 
     program, through arrangements with civilian hospitals, to 
     evaluate the feasibility of providing additional shock trauma 
     training for military medical personnel.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees expect the Secretary of Defense to ensure 
     that the program would be budget neutral and that the 
     Department would receive compensation, payment in kind, or 
     services of equivalent value to the government costs for 
     providing services to the non-DOD agencies. The conferees 
     further direct the Comptroller General to evaluate the costs 
     and value of services or reimbursements to the government.
     Study regarding Department of Defense efforts to determine 
         appropriate force levels of wartime medical personnel 
         (sec. 745)
       The House bill contained a provision (sec. 745) that would 
     direct the Comptroller General of the United States to 
     evaluate the effectiveness of the modeling efforts of each of 
     the three service surgeons general related to determination 
     of the appropriate wartime military medical force-level 
     requirements, and then to submit to Congress a report on this 
     evaluation, not later than March 1, 1996.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report on improved access to military health care for covered 
         beneficiaries entitled to Medicare (sec. 746)
       The House bill contained a provision (sec. 747) that would 
     require the Secretary of Defense to report on possible 
     alternatives to improving access to the military health care 
     system for those beneficiaries who are Medicare eligible and 
     ineligible for the Civilian Health and Medical Program of the 
     Uniformed Services (CHAMPUS).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report on effect of closure of Fitzsimons Army Medical 
         Center, Colorado, on provision of care to military 
         personnel, retired military personnel, and their 
         dependents (sec. 747)
       The Senate amendment contained a provision (sec. 744) that 
     would require the Secretary of Defense to report to the 
     Congress on the effect of the closure of Fitzsimons Army 
     Medical Center, Colorado, on the capability of the Department 
     of Defense to provide health care for members and former 
     members of the armed services, and their dependents who 
     suffer from undiagnosed illness 

[[Page H664]]
     as a result of service in the Persian Gulf War.
       The House bill contained no similar provision.
       The House recedes with an amendment that would expand the 
     requirement to include a report on the effect of the closure 
     of Fitzsimons Army Medical Center on the capability of the 
     Department of Defense to provide health care for all military 
     members, retired military personnel, and their dependents.
     Sense of Congress on continuity of health care services for 
         covered beneficiaries adversely affected by closures of 
         military medical treatment facilities (sec. 748)
       The House bill contained a provision (sec. 748) that would 
     express the sense of Congress that the Secretary of Defense 
     should take all appropriate steps to ensure the continuation 
     of medical and pharmaceutical benefits for covered 
     beneficiaries adversely affected by the closure of military 
     facilities.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     State recognition of military advance medical directives 
         (sec. 749)
       The House bill contained a provision (sec. 555) that would 
     ensure advanced medical directives, prepared by members of 
     the armed forces, their spouses, or other persons eligible 
     for legal assistance, are recognized as valid by all states 
     and possessions of the United States.
       The Senate amendment contained a similar provision (sec. 
     1092).
       The Senate recedes with a clarifying amendment.


                   legislative provisions not adopted

     Waiver of Medicare Part B late enrollment penalty and 
         establishment of special enrollment period for certain 
         military retirees and dependents
       The Senate amendment contained a provision (sec. 705) that 
     would amend the Social Security Act to authorize a waiver of 
     the penalty for late enrollment in Medicare Part B for 
     Medicare-eligible Department of Defense beneficiaries who 
     reside in geographic areas affected by the closure of 
     military hospitals under the Base Realignment and Closure 
     process.
       The House bill contained no similar provision.
       The Senate recedes.
     Disclosure of information in Medicare and Medicaid coverage 
         data bank to improve collection from responsible parties 
         for health care services furnished under CHAMPUS
       The Senate amendment contained a provision (sec. 734) that 
     would amend section 1144 of the Social Security Act to extend 
     to the Department of Defense access to information in the 
     data bank to enhance the effectiveness of the Department of 
     Defense third party collection program.
       The House bill contained no similar provision.
       The Senate recedes.

  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters


                       items of special interest

     Ship repair contracts
       The conferees are concerned with continued reports that 
     Navy ship repair contractors are not being paid by the prime 
     contractor in a timely manner. The House report accompanying 
     H.R. 1530 (H. Rept. 104-131) addressed this issue by asking 
     the Navy to pursue remedies necessary to ensure that the 
     subcontractor community will be able to support the United 
     States Navy fleet properly. The conferees support this 
     language and urge the Navy to monitor this problem carefully 
     and explore available remedies to ensure that Navy ship 
     repair subcontractors are properly and promptly compensated 
     for their services.
       The conferees are similarly concerned with the Navy's 
     practice of bundling ship repair contracts that include only 
     a small number of drydocking requirements within several ship 
     repair availabilities. The conferees are concerned that this 
     may unnecessarily preclude competition for repair work that 
     does not require a drydock. The conferees believe that if the 
     Navy continues to bundle multi-year ship repair contracts 
     that would in part require the use of a drydock, the Navy 
     should give strong consideration to making available, at a 
     reasonable cost, a public drydock, to ensure adequate 
     competition.
     Worker's compensation coverage on overseas contracts
       The conferees agree with the requirement contained in the 
     Senate report (S. Rept. 104-112) that would direct the 
     Secretary of Defense to review the efforts of the State 
     Department and the Agency for International Development to 
     consolidate worker's compensation insurance coverage on 
     overseas contracts. The conferees note that chapter 12 of 
     title 42, United States Code, mandates that all United States 
     citizens and legal permanent residents, employed for any 
     duration by a defense contractor, be covered by uniform 
     worker's compensation insurance.


                         legislative provisions

                     Legislative Provisions Adopted

                     Subtitle A--Acquisition Reform

     Limitation on expenditure of appropriations (sec. 801)
       The House bill contained a provision (sec. 821(b)) that 
     would repeal section 2207 of title 10, United States Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would apply 
     section 2207 of title 10, United States Code, solely to 
     contracts valued above the simplified acquisition threshold.
     Delegation authority (sec. 802)
       The Senate amendment contained a provision (sec. 806) that 
     would repeal section 2356 of title 10, United States Code, 
     which unnessarily duplicates inherent authority of the 
     Secretary of Defense to delegate research contracting 
     authorities.
       The House bill contained an identical provision.
       The conference agreement includes this provision.
     Critical spare parts (sec. 803)
       The House bill contained a provision (sec. 821(d)) that 
     would repeal section 2383 of title 10, United States Code, 
     regarding quality requirements for critical spare parts of 
     ships or aircraft. The provision was intended to assist the 
     Department of Defense in shifting from reliance on outdated 
     military specifications and standards to the use of modern 
     industrial manufacturing methods that would ensure quality in 
     critical spare parts.
       The Senate amendment contained an identical provision (sec. 
     809).
       The conference agreement includes this provision.
     Fees for certain testing services (sec. 804)
       The House bill contained a provision (sec. 822) that would 
     provide flexibility for the Secretary of Defense to require 
     reimbursement of indirect, as well as direct costs, from 
     private sector uses of Department of Defense testing 
     facilities.
       The Senate amendment contained an identical provision (sec. 
     812).
       The conference agreement includes this provision.
     Coordination and communication of defense research activities 
         (sec. 805)
       The House bill contained a provision (sec. 824) that would 
     amend section 2364 of title 10, United States Code, to 
     require that papers prepared by a defense research facility 
     on a technological issue relating to a major weapon system be 
     available for consideration at all decision reviews.
       The Senate amendment contained an identical provision (sec. 
     807).
       The conference agreement includes this provision.
     Addition of certain items to domestic source limitation (sec. 
         806)
       The House bill contained a provision (sec. 825) that would 
     add certain named vessel components to domestic source 
     limitations, as provided in section 2534(a) of title 10, 
     United States Code. The provision would also extend, through 
     October 1, 2000, current limitations related to anti-friction 
     bearings and would require that these limitations be 
     applicable to contracts and subcontracts below the simplified 
     acquisition threshold, as well as for commercial 
     subcontracts.
       The Senate contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     list of vessel components to be added to the domestic source 
     limitations in section 2534 of title 10, United States Code. 
     The provision includes language that would restrict the 
     application of the domestic source limitations to the 
     additional vessel components for contracts entered into after 
     March 31, 1996.
       The conferees have included language that would require, 
     for a two-year period beginning on the date of enactment of 
     this Act, a similar limitation on the purchase of propellers 
     with a diameter of six feet or more. The conferees direct the 
     Secretary of the Navy to provide the congressional defense 
     committees by March 1, 1996 with an assessment of the impact 
     on the Navy's ability to maintain and modernize the fleet, 
     and address the impact of the limitation on the purchase of 
     and the castings for such propellers. The conferees also 
     remain concerned over the pressing need to sustain a robust 
     ship propeller repair and maintenance commercial base. 
     Therefore, the conferees strongly urge the Navy to take this 
     critical objective fully into account in allocating propeller 
     repair work in the future.
     Encouragement of use of leasing authority for commercial 
         vehicles (sec. 807)
       The House bill contained a provision (sec. 827) that would 
     direct the Secretary of Defense to use lease agreements for 
     acquisition of equipment, whenever practicable and otherwise 
     authorized by law. The House provision would also direct the 
     Secretary to submit to Congress, within 90 days after 
     enactment of this bill, a report indicating changes in 
     legislation required to facilitate the Department of Defense 
     use of leases for the acquisition of equipment.
       The Senate amendment contained a provision (sec. 392), 
     similar to the House provision, that would also provide 
     authority for the Secretary of Defense to conduct a pilot 
     program for lease of commercial utility cargo vehicles under 
     certain prescribed conditions.
       The House recedes with a clarifying amendment.
     Cost reimbursement rules for indirect costs attributable to 
         private sector work of defense contractors (sec. 808)
       The House bill contained a provision (sec. 844) that would 
     authorize the Secretary of Defense to enter into agreements 
     with contractors performing or seeking to perform 

[[Page H665]]
     private sector work. The House provision would apply modified 
     accounting rules with respect to the allocation of indirect 
     costs associated with a contractor's private sector work.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify the 
     method for allocation of indirect costs to contractor private 
     sector work and would require the Secretary of Defense to 
     report on the use of the authority contained in this 
     provision. The conferees expect the Secretary to act 
     expeditiously on each defense contractor application for an 
     agreement under this section.
     Subcontracts for ocean transportation services (sec. 809)
       The Senate amendment contained a provision (sec. 802(b)) 
     that would delay, until May 1, 1996, the inclusion of section 
     1241(b) of title 46, United States Code, or section 2631 of 
     title 10, United States Code, on a list promulgated under 
     section 430(b) of title 41, United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Prompt resolution of audit recommendations (sec. 810)
       The Senate amendment contained a provision (sec. 803) that 
     would conform section 6009 of the Federal Acquisition 
     Streamlining Act of 1994 to the reporting requirements of the 
     Inspector General Act of 1978.
       The House bill contained no similar provision.
       The House recedes.
     Test programs for negotiation of comprehensive subcontracting 
         plans (sec. 811)
       The Senate amendment contained a provision (sec. 804) that 
     would amend the test authority to remove the limitation on 
     the activities that may be included in a test. The provision 
     would also reduce the number of contracts and the aggregate 
     dollar value of those contracts required to establish a 
     condition for a contractor's participation in the test 
     program.
       The House bill contained no similar provision.
       The House recedes.
     Authority to procure for test or experimental purposes (sec. 
         812)
       The Senate amendment contained a provision (sec. 808) that 
     would amend section 2373 of title 10, United States Code, to 
     conform the newly-codified section to the scope of the 
     service-specific statutes it replaced.
       The House bill contained no similar provision.
       The House recedes.
     Use of funds for acquisition of rights to use designs, 
         processes, technical data and computer software (sec. 
         813)
       The Senate amendment contained a provision (sec. 810) that 
     would clarify section 2386 of title 10, United States Code, 
     regarding the types of information the Secretary of Defense 
     may acquire from Department of Defense contractors.
       The House bill contained no similar provision.
       The House recedes.
     Independent cost estimates for major defense acquisition 
         programs (sec. 814)
       The Senate amendment contained a provision (sec. 811) that 
     would permit the military departments or defense agencies, 
     independent of their respective acquisition executives, to 
     prepare independent cost estimates for major defense 
     acquisitions assigned to individual components for oversight. 
     The provision would align the responsibility for independent 
     cost estimates with the level of the decision authority.
       The House bill contained no similar provision.
       The House recedes.
     Construction, repair, alteration, furnishing, and equipping 
         of naval vessels (sec. 815)
       The Senate amendment contained a provision (sec. 813) that 
     would restore the policy regarding the application of the 
     Walsh-Healey Act, repealed by the Federal Acquisition 
     Streamlining Act 1994, to contracts for the construction, 
     alteration, furnishing, or equipping of naval vessels.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                       Subtitle B--Other Matters

     Procurement technical assistance programs (sec. 821)
       The Senate amendment contained a provision (sec. 821) that 
     would add $12.0 million to continue the procurement technical 
     assistance center program in fiscal year 1996.
       The House bill contained no similar provision, but 
     authorized $10.0 million to continue the program in fiscal 
     year 1996.
       The House recedes.
     Additional Department of Defense pilot programs (sec. 822)
       The conferees have adopted a provision that would set forth 
     criteria for designating a facility to participate in a 
     Department of Defense pilot program and require that the 
     Congress approve the designation in legislation enacted after 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 1996. The conferees intended that the pilot 
     program be used to test, among other initiatives, the 
     expansion of commercial practices throughout a facility in 
     which work is being performed under contracts with the 
     Department of Defense. Nothing in this provision is intended 
     to authorize or award a contract, or to exempt a facility 
     from competition requirements in the award of a contract.
     Treatment of Department of Defense cable television franchise 
         agreements (sec. 823)
       The Senate amendment included a provision (sec. 822) that 
     would require cable television franchise agreements between 
     cable television operators and the Department of Defense to 
     be considered contracts for the telecommunications services 
     under Part 49 of the Federal Acquisition Regulation (FAR).
       The House bill contained no similar provision.
       The House recedes with an amendment. The amendment would 
     require the United States Court of Federal Claims to render 
     an advisory opinion to Congress on the power of the executive 
     branch to treat cable franchise agreements as contracts under 
     the FAR and, if so, whether the executive branch is required 
     by law to treat these agreements as contracts under the FAR. 
     If the answer to both questions is affirmative, the conferees 
     expect the Department of Defense to implement regulations 
     treating cable franchise agreements as contracts for purposes 
     of the FAR. If the Court renders an affirmative answer to the 
     first question, the conferees will regard that as significant 
     basis for enacting a provision similar to that in the Senate 
     amendment.
     Mentor-protege program authority (sec. 824)
       The conferees have adopted a provision that would extend 
     for one year the authority for eligible businesses under the 
     Mentor-Protege program to enter into new agreements. The 
     conferees agree that this extension does not prejudge the 
     outcome of ongoing reviews of programs with similar 
     objectives.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Testing of defense acquisition programs
       The House bill contained a provision (sec. 823) that would 
     amend section 2366 of title 10, United States Code, regarding 
     requirements for operational testing in defense acquisition 
     programs.
       The Senate amendment contained no similar provision.
       The House recedes.
     Waivers from cancellation of funds
       The Senate amendment contained a provision (sec. 801) that 
     would make funds available for satellite on-orbit incentive 
     fees until such fees would be earned.
       The House bill contained no similar provision
       The Senate recedes.
     Repeal of duplicative authority for simplified acquisition 
         purchases
       The Senate amendment contained a provision (sec. 817) that 
     would repeal the authority for simplified acquisition 
     purchases in section 427 of title 41, United States Code.
       The House bill contained no similar provision.
       The Senate recedes.
     Restriction on reimbursement of costs
       The Senate amendment contained a provision (sec. 819) that 
     would prohibit reimbursement of allowable costs above 
     $250,000 for individual compensation in fiscal year 1996. The 
     provision also expressed the sense of the Senate that 
     Congress should consider making such prohibition permanent.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees question the appropriateness of the level of 
     industry executive compensation reimbursement as an allowable 
     expense under government contracts. The conferees direct the 
     Secretary of Defense to conduct a thorough assessment of its 
     current policies and procedures regarding standards of 
     allowability, allocability, and reasonableness of 
     compensation reimbursement by the Department of Defense. In 
     carrying out such assessment, the Secretary should conduct a 
     survey of the executive compensation practices of comparable 
     non-defense firms involved with similar industries, taking 
     into consideration size and geographic location.
       The conferees direct the Secretary to submit a report to 
     the congressional defense committees not later than March 31, 
     1996. The report should detail the results of the Secretary's 
     assessment and any changes to current policies and 
     procedures, implemented as a result of the assessment.

      Title IX--Department of Defense Organization and Management


                         LEGISLATIVE PROVISIONS

                     LEGISLATIVE PROVISION ADOPTED

                      Subtitle A--General Matters

     Reorganization of the Office of the Secretary of Defense 
         (sec. 901-903 and 905)
       The House bill contained a provision (sec. 901) that would 
     require that direct support activities and similar functions 
     be included in the mandated personnel reduction. This 
     provision would also reduce the number of authorized 
     assistant secretaries of defense by two and require that the 
     Secretary of Defense provide Congress with a comprehensive 
     reorganization plan for the office. Additionally, it would 
     repeal a number of the current statutorily mandated offices 
     and positions within OSD.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to conduct a detailed review of the 
     organization and functions of the Office of the Secretary of 
     Defense, including the Washington Headquarters Service and 
     the Defense Support Agencies. The amendment would also direct 
     the following: a 25 percent reduction 

[[Page H666]]
     of the Office of the Secretary of Defense over five years; reduction of 
     the number of Assistant Secretaries of Defense by one, from 
     eleven to ten; and, on January 31, 1997, repeal certain 
     statutory mandated offices and positions within the Office of 
     the Secretary of Defense. Additionally, the amendment would 
     establish a charter for the Joint Requirements Oversight 
     Council (JROC) effective January 31, 1997.
       The conferees, while agreeing to provide the Secretary with 
     broad latitude in recommending changes to the existing OSD 
     structure, continue to strongly believe that the functional 
     responsibilities associated with Special Operations and Low 
     Intensity (SOLIC) should be carried out under a senior 
     civilian official who can maintain clear and unambiguous 
     civilian control over that element of the military. 
     Therefore, the conferees urge that the Secretary, in 
     formulating the plan required by this provision, vest the 
     SOLIC responsibility in an official whose appointment is 
     subject to the advice and consent of the Senate and for whom 
     the SOLIC function shall be a principal responsibility.
     Redesignation of the position of Assistant to the Secretary 
         of Defense for Atomic Energy (sec. 904)
       The Senate amendment contained a provision (sec. 901) that 
     would change the name of the Assistant to the Secretary of 
     Defense for Atomic Energy to be the Assistant to the 
     Secretary of Defense for Nuclear and Chemical and Biological 
     Defense Programs.
       The House bill contained no similar provision.
       The House recedes.
     Restructuring of Department of Defense acquisition 
         organization and workforce (sec. 906)
       The House bill contained a provision (sec. 902) that would 
     require the Secretary of Defense to submit a report to 
     Congress including a plan for restructuring the current 
     acquisition organizations in the Department of Defense as 
     well as an assessment of specified restructuring options. The 
     provision would also mandate a reduction of the acquisition 
     workforce by 25 percent from October 1, 1995 to October 1, 
     1998, and require a reduction of 30,000 acquisition workforce 
     positions in the Department of Defense in fiscal year 1996.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment requiring the 
     Secretary to submit the report on a plan to reduce by October 
     1, 1998 the acquisition workforce, as defined by the 
     Secretary, 25 percent below the baseline of October 1, 1994. 
     The provision would also require the Secretary to reduce the 
     number of acquisition personnel by 15,000 in fiscal year 
     1996.
     Report on nuclear posture review and on plans for nuclear 
         weapons management in event of abolition of Department of 
         Energy (sec. 907)
       The House bill contained a provision (sec. 903) that would 
     require the Secretary of Defense to prepare and submit a 
     report to Congress that describes the Secretary's plan to 
     incorporate the national security programs of the Department 
     of Energy (DOE) into the Department of Defense. In developing 
     the plan the Secretary would be required to make every effort 
     to preserve the integrity, mission, and functions of these 
     programs. The Senate amendment contained a provision (sec. 
     3151) that would require the Secretary of Defense to provide 
     the congressional defense committees with an assessment of 
     the effectiveness of the DOE. The assessment should include: 
     (1) maintaining the nuclear weapons stockpile; (2) management 
     of its environmental, health, and safety requirements, and 
     national security research and development, as compared with 
     similar DoD operations; and (3) the fulfillment of DOE's 
     Nuclear Posture Review requirements.
       The Senate recedes with an amendment that combines both 
     provisions.
     Redesignation of Advanced Research Projects Agency (sec. 908)
       The House bill contained a provision (sec. 908) that would 
     change the designation of the Advanced Research Projects 
     Agency to the Defense Advanced Research Projects Agency.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                    Subtitle B--Financial Management

     Transfer authority regarding funds available for foreign 
         currency fluctuation (sec. 911)
       The Senate amendment contained a provision (sec. 1006) that 
     would authorize a foreign currency fluctuation account for 
     the military personnel appropriation. This authorization 
     would be limited to fiscal year 1996 and subsequent 
     appropriations.
       The House bill contained no similar provision.
       The House recedes.
     Defense Modernization Account (sec. 912)
       The Senate amendment contained a provision (sec. 1003) that 
     would establish a Defense Modernization Account to encourage 
     savings within the Department of Defense and to make those 
     savings available to address the serious shortfall in funding 
     for modernization.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       Under the conference agreement, the Secretary of Defense 
     could place in the Defenses Modernization Account funds saved 
     from achieving economies and efficiencies in: (1) investment 
     programs; and (2) installation management (to the extent that 
     unobligated balances in installation management are available 
     during the last 30 days of the fiscal year). The conferees 
     fully expect the Department to protect current readiness of 
     the forces, particularly in regard to funds for budget 
     activities one and two in the operation and maintenance 
     appropriations accounts.
       In order to encourages savings by the military departments 
     and the Department of Defense, funds placed in the account 
     would be reserved for use by the department or component that 
     generated the savings. No funds could be made available from 
     the account by the department of defense except through 
     established reprogramming procedures. Reprogramming 
     procedures could not be used to exceed the statutory funding 
     authorization or statutory quantity ceiling applicable to a 
     given program. The amount of funds that could be reprogrammed 
     by the Department of Defense could not exceed $500.0 million 
     in any one fiscal year.
     Disbursing and certifying officials (sec. 913)
       The House bill contained a provision (sec. 1004) that would 
     provide for the designation and appointment of disbursing and 
     certifying officials within the Department of Defense.
       The Senate bill contained a similar provision (sec. 1002) 
     that would authorize the designation and appointment of 
     disbursing and certifying officials, and would grant relief 
     from liability in certain specific circumstances. Relief from 
     liability would be based on demonstrated accountability for 
     the loss is determined and diligent efforts to collect money 
     owed to the government has been made.
       The House recedes.
     Fisher House Trust Funds (sec. 914)
       The Senate amendment contained a provision (sec. 742) that 
     would establish trust funds on the books of the Treasury for 
     Fisher Houses. The interest earned by these trust funds would 
     be used for the administration, operation, and maintenance of 
     Fisher Houses within the Army and Air Force.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Limitation on use of authority to pay for emergency and 
         extraordinary expenses (sec. 915)
       The House bill contained a provision (sec. 372) that would 
     require the Secretary of Defense to submit to Congress a 
     quarterly report of expenditures for emergency and 
     extraordinary expenses. The provision would also require the 
     Secretary of Defense to provide congressional notification 
     prior to an obligation or expenditure of $1.0 million or 
     more.
       The Senate amendment included a provision (sec. 1005) that 
     would require the Secretary of Defense to notify Congress 
     five days prior to an obligation or expenditure of emergency 
     and extraordinary expenses authority in excess of $500,000 
     and 15 days prior to an obligation or expenditure of $1.0 
     million. The provision would allow the Secretary of Defense 
     to waive the time period required for notification prior to 
     obligation or expenditure of funds if a determination were 
     made that such prior notification would compromise national 
     security objectives. In the event the Secretary uses the 
     authority to waive notification for national security 
     reasons, notification would be required 30 days after the 
     expenditure of funds or on the date the activity is 
     completed.
       The House recedes with an amendment that would require the 
     Secretary of Defense to notify the congressional defense 
     committees five days in advance of obligation or expenditure 
     of funds in excess of $500,000 or 15 days in advance of 
     obligation or expenditure of funds in excess of $1.0 million. 
     In the event the Secretary determines that prior notification 
     of the obligation or expenditure of funds would compromise 
     national security objectives, the provision would allow the 
     Secretary to waive the waiting period. In the event a 
     national security waiver is necessary, the Secretary shall 
     immediately notify the congressional defense committees of 
     the need to expend funds, and provide the chairman and 
     ranking member, or their designees, with any relevant 
     information, including the amount and purposes for the 
     obligation or expenditure.
       The conferees remain concerned about the use of Department 
     of Defense funds for purposes that are more appropriately 
     funded through the international affairs budget. The 
     conferees urge the administration to refrain recommending the 
     use of the Department of Defense emergency and extraordinary 
     expenses authority for non-defense purposes. The conferees 
     also caution the Department to exercise minimal and judicious 
     use of the national security waiver.


                   legislative provisions not adopted

     Change in titles of certain Marine Corps general officer 
         billets resulting from reorganization of the 
         Headquarters, Marine Corps
       The House bill contained a provision (sec. 904) that would 
     change references in current law to reflect the 
     reorganization of Headquarters, Marine Corps.
       The Senate amendment contained no similar provision.
       The House recedes.
     Inclusion of Information Resources Management College in the 
         National Defense University
       The House bill contained a provision (sec. 905) that would 
     authorize the Secretary of Defense to establish a personnel 
     system for 

[[Page H667]]
     the Information Resources Management College that is consistent with 
     the personnel system for other institutions within the 
     National Defense University.
       The Senate amendment contained no similar provision.
       The House recedes.
     Employment of civilians at the Asia-Pacific Center for 
         Security Studies
       The House bill contained a provision (sec. 906) that would 
     authorize the Secretary of Defense to establish a personnel 
     system for the Asia-Pacific Center for Security Studies.
       The Senate amendment contained no similar provision.
       The House recedes.
     Naval nuclear propulsion program
       The House bill contained a provision (sec. 909) that would 
     establish that no department or agency may regulate or direct 
     any Propulsion Program unless otherwise permitted or 
     specified by law. It contained a second provision (sec. 
     1032(m)) that would repeal section 1634 of the National 
     Defense Authorization Act for Fiscal Year 1985 (Public Law 
     98-525, 42 U.S.C. 7158 note). Section 1634 stipulates that 
     the provisions of Executive Order 12344, dated February 1, 
     1982, pertaining to the Naval Nuclear Propulsion Program, 
     shall remain in force until changed by law.
       The Senate amendment contained no similar provision.
       The House recedes on both section 909 and section 1032(m).
     Aviation testing consolidation
       The House bill contained a provision (sec. 910) that would 
     prevent the Secretary of the Army from consolidating the 
     Aviation Technical Test Center, Fort Rucker, Alabama, with 
     any other aviation testing facility until 60 days after the 
     date on which a report was received.
       The Senate amendment contained no similar provision.
       The House recedes.
     Office of Humanitarian and Refugee Affairs
       The Senate amendment contained a provision (sec. 364) that 
     would eliminate the Office of Humanitarian and Refugee 
     Affairs within the Office of the Assistant Secretary of 
     Defense for Special Operations and Low Intensity Conflict.
       The House bill contained no similar provision.
       The Senate recedes.

                      Title X--General Provisions


                       items of special interest

     Assistance to local educational agencies when installation 
         housing is located on leased land
       The conferees note that the Secretary of Education has 
     declined to recognize military connected students as residing 
     on Federal property if the government owned housing in which 
     they reside is located on leased land. In one case, 
     recognition of on-installation residency was denied even 
     though the housing is located within the security perimeter 
     of the installation and is managed in the same manner as 
     government housing located on government owned land.
       The conferees believe that, for purposes of assistance to 
     local educational agencies, residents of government owned 
     housing, located on land leased by the government and managed 
     in the same manner as government housing on government owned 
     land, shall be considered residents of federal property.
     Authority to conduct personnel demonstration projects
       The National Defense Authorization Act for Fiscal Year 1995 
     made permanent the authority of the Secretary of the Navy to 
     continue personnel demonstration projects at the Naval Air 
     Warfare Center Weapons Division, China Lake, California, and 
     the Naval Command, Control, and Ocean Center, San Diego, 
     California, and at successor organizations resulting from the 
     reorganization of Naval Air Warfare Center Weapons Division 
     or the Naval Command, Control, and Ocean Center. 
     Additionally, the National Defense Authorization Act for 
     Fiscal Year 1995 provided expanded authority for the 
     Secretary of Defense to conduct personnel demonstration 
     projects at Science and Technology Reinvention Laboratories.
       The conferees are concerned about what appears to be a lack 
     of real progress in this area over the past year. Therefore, 
     the conferees direct the Department of Defense to report to 
     the Senate Committee on Armed Services and the House 
     Committee on National Security, not later than February 1, 
     1996, the extent to which these expanded authorities have 
     been used in each of the military departments. As a minimum, 
     this report should include those demonstration projects 
     proposed by the military departments, the status of each such 
     proposal, and the projected date for final action on each 
     proposal.


                         legislative provisions

                     legislative provisions adopted

                     Subtitle A--Financial Matters

     Transfer authority (sec. 1001)
       The House bill contained a provision (sec. 1001) that would 
     allow the Department of Defense to transfer up to $2.0 
     billion between accounts using normal reprogramming 
     procedures.
       The Senate amendment contained a similar provision (sec. 
     1001).
       The House recedes.
     Incorporation of classified annex (sec. 1002)
       The House bill contained a provision (sec. 1002) that would 
     incorporate by reference the classified annex to the bill. In 
     addition, the provision would authorize the expenditure of 
     funds made available for programs, projects, and activities 
     referred to in the classified annex according to the terms, 
     conditions, limitations, restrictions, and requirements of 
     those programs, projects, and activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Improved funding mechanisms for unbudgeted operations (sec. 
         1003), Operation Provide Comfort (sec. 1004), and 
         Operation Enhanced Southern Watch (sec. 1005)
       The House Bill contained a provision (sec. 1003) that would 
     establish a procedure for the funding of contingency 
     operations out of accounts other than those which are 
     normally known as operational readiness accounts. This 
     provision would also require the President to budget for any 
     operations that are ongoing in the first quarter of a fiscal 
     year and are expected to continue into the next fiscal year. 
     If the President were to fail to request the necessary funds 
     in his annual budget, then funding for these operations would 
     be denied at the start of the next fiscal year.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include 
     three separate provisions that would: (1) modify the funding 
     mechanism proposed by the House for contingency operations; 
     (2) authorize $503.8 million for Enhanced Southern Watch and 
     require that semi-permanent elements of this operation be 
     designated as forward presence operations; and (3) authorize 
     $143.3 million for Provide Comfort and require the Secretary 
     of Defense to provide a report on this operation. The 
     authorization includes both military personnel and operations 
     and maintenance funding.
       The conferees have observed with concern, the continuing 
     growth of the Department of Defense involvement in unbudgeted 
     peacekeeping and humanitarian contingency operations that 
     negatively impact upon military readiness. The Secretary of 
     Defense initially estimated the unbudgeted fiscal year 1996 
     costs to the Department for ongoing operations in Iraq, Haiti 
     and Bosnia to be $1.2 billion. This amount excludes the 
     estimated $1.5 billion incremental cost of the proposed 
     deployment of U.S. ground forces to Bosnia. Lacking the 
     budgeted resources, the Department has resorted to the 
     practice of financing the cost of these operations from the 
     military services' operational readiness accounts. This 
     practice has resulted in the cancellation or deferral of some 
     training exercises, necessary equipment maintenance, and 
     other routine activities that degrade the readiness of the 
     force. Depending on what activities are foregone, this 
     adverse impact could be significant.
       In recognition of this problem, the Administration's fiscal 
     year 1996 legislative proposal contained a request to grant 
     the Secretary of Defense extraordinary authority to transfer 
     funds between accounts. The conferees instead recommend a 
     provision that would more fully address this matter by 
     providing new funding mechanisms for unforeseen and 
     unbudgeted contingency operations.
       To address unforeseen and unbudgeted operations, the 
     provision would revise existing provisions of law to require 
     the Secretary of Defense to draw upon the Defense Business 
     Operating Fund (DBOF) to provide much of the funding for 
     these operations. In addition, the provision authorizes a 
     targeted transfer authority of $200.0 million from non-
     readiness accounts. These accounts are intended to serve as 
     interim funding mechanisms until Congress approves a 
     supplemental appropriations package to replenish the DBOF 
     cash balances or other accounts from which funds were 
     transferred.
       To address ongoing operations in southern Iraq, the 
     conferees recommend a provision that would authorize $503.8 
     million for Enhanced Southern Watch during fiscal year 1996 
     and would require that before obligating more than $250 
     million of this amount, the Secretary of Defense shall 
     provide the Congressional Defense Committees with a report 
     designating any elements of Operation Enhanced Southern Watch 
     that are semipermanent in nature as forward presence 
     operations that should be budgeted in the future in the same 
     manner as other forward presence operations routinely 
     budgeted as part of the annual defense budget. The conferees 
     believe that the aftermath of the Persian Gulf War has 
     fundamentally altered the security situation in the region in 
     a manner that will require a significant U.S. presence for 
     years to come.
       To address the operation designated as Provide Comfort, the 
     conferees recommend a provision that would authorize $143.3 
     million in fiscal year 1996. This provision would also 
     require the Secretary of Defense to submit a report that 
     details the expected fiscal year 1996 costs of that 
     operation, and the missions and functions expected to be 
     performed by the Department of Defense and other agencies of 
     the Federal Government. In addition, this report should 
     discuss the options related to reduction of the level of the 
     military involvement in the operation, and include an exit 
     strategy for the United States.
       Finally, the conferees express the view that costs borne by 
     the Department of Defense in conducting contingency 
     operations in support of another agency's mission, such as 
     humanitarian relief, law enforcement and 

[[Page H668]]
     immigration control, should not be assessed against the defense budget 
     topline. The conferees are concerned with the increasing cost 
     of these operations at a time of declining defense budgets 
     and the negative impact this has had upon military readiness. 
     The conferees endorse the historical principle of maintaining 
     a peacetime defense budget designed to adequately fund the 
     activities of the Department of Defense to organize, train 
     and equip military forces in a manner sufficient to meet 
     national security requirements.
       In addition, the conferees note that the five year defense 
     program remains underfunded relative to the national security 
     strategy and recommended military force structure. The 
     negative impact of these shortfalls will grow in the years 
     ahead and threaten our ability to maintain adequate levels of 
     short and long-term readiness, including sorely needed 
     equipment modernization. Therefore, the conferees believe 
     that funding for contingency operations should be provided in 
     addition to what would have otherwise been made available for 
     the Department of Defense for its normal peacetime 
     activities.
     Unauthorized appropriations for fiscal year 1995 (sec. 1006)
       The House bill contained a provision (sec. 1005) that would 
     allow the Department of Defense to obligate funds for all 
     fiscal year 1995 programs, projects, and activities for which 
     the amount appropriated exceeded the amount authorized.
       The Senate amendment contained no such provision.
       The Senate recedes.
     Authorization of prior year emergency supplemental 
         appropriations for fiscal year 1995 (sec. 1007)
       The House bill contained a provision (sec. 1006) that would 
     authorize the emergency supplemental appropriations enacted 
     in the Emergency Supplemental Appropriations and Rescissions 
     for the Department of Defense to Preserve and Enhance 
     Military Readiness Act of 1995 (Public Law 104-6). This Act 
     provided funding for fiscal year 1995 expenses related to 
     military operations in Southwest Asia, Haiti, Cuba, Somalia, 
     Bosnia, and Korea.
       The Senate amendment contained a similar provision (sec. 
     1004).
       The Senate recedes.
     Authorization reductions to reflect savings from revised 
         economic assumptions (sec. 1008)
       The conferees agree to a provision that would reflect 
     revised economic assumptions that were not available prior to 
     the conference report.

                Subtitle B--Naval Vessels and Shipyards

     Iowa class battleships (sec. 1011)
       In February 1995, the Secretary of the Navy made a decision 
     to strike the Navy's four inactive Iowa class battleships 
     from the naval register. The Senate amendment contained a 
     provision (sec. 1011) that would direct the Secretary of the 
     Navy to restore at least two Iowa class battleships to the 
     naval register in an inactive status. The Secretary would be 
     required to retain them on the register until he is prepared 
     to certify that the Navy has within the fleet an operational 
     surface fire support capability that equals or exceeds the 
     fire support capability that the battleships could provide if 
     returned to active service.
       The Senate provision would recognize the fact that 
     battleships could provide a surface fire support capability 
     unmatched by any other Navy weapons system and that there is 
     an ongoing concern regarding the Department of the Navy's 
     apparent lack of commitment to provide for the surface fire 
     support capability necessary for amphibious assaults. The 
     ability of the Marine Corps and the Navy to conduct forcible 
     entry by amphibious assault is an essential element of the 
     Department of the Navy's strategic concept for littoral 
     warfare.
       The House bill contained no similar provision.
       The House recedes with an amendment.
       The conferees believe that the Department of the Navy's 
     future years defense program, presented with the fiscal year 
     1996 budget, could not produce a replacement fire support 
     capability comparable to the battleships until well into the 
     next century. The conferees consider retention of two 
     battleships in the fleet's strategic reserve a prudent 
     measure.
     Transfer of naval vessels to certain foreign countries (sec. 
         1012)
       The Senate amendment included a provision (sec. 1012) that 
     would authorize the Secretary of the Navy to transfer eight 
     FFG-7 class guided missile frigates to various countries. 
     Seven of the frigates would be transferred by grant, and one 
     by lease.
       The House bill contained no similar provision.
       The House recedes with an amendment that would:
       (1) reduce the number of grant transfers from seven to 
     four, and the remaining frigates would be transferred by 
     lease or sale;
       (2) require that, as a condition of the transfer of the 
     eight frigates, any repair or refurbishment needed before the 
     transfer, be performed at a shipyard located in the United 
     States;
       (3) amend section 2763 of title 22, United States Code, to 
     permit foreign countries to use foreign assistance funds to 
     lease vessels; and
       (4) amend section 2321j of title 22, United States Code, to 
     prohibit future grant transfers of any vessel that is in 
     excess of 3,000 tons or that is less than 20 years old.
       The conferees are aware that in some cases U.S. national 
     security will be best served by a grant transfer, 
     particularly when the recipient is an important coalition 
     defense partner that is making valuable contributions to U.S. 
     security or lacks the resources to obtain a vessel by lease 
     or sale. Accordingly, the amendment to section 2321j would 
     permit the President to request a future grant transfer if it 
     is determined that it is in the national security interest of 
     the United States.
     Contract options for LMSR vessels (sec. 1013)
       The House bill contained a provision (sec. 1021) that would 
     recommend that the Secretary of the Navy negotiate a contract 
     option price for a seventh large medium speed roll-on/roll-
     off (LMSR) strategic sealift ship at each of the two 
     shipyards that currently have construction contracts.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify 
     that the provision would not preclude the Secretary of the 
     Navy from competing these two contract options between the 
     two shipyards that currently have construction contracts.
     National Defense Reserve Fleet (sec. 1014)
       The Senate amendment contained a provision (sec. 381) that 
     would permit the use of the National Defense Sealift Fund 
     (NDSF) to budget for expenses of the national defense reserve 
     fleet (NDRF). Beginning with the fiscal year 1996 request, 
     funds for NDRF expenses would be included in the NDSF budget 
     request within budget function 051.
       The House bill contained no similar provision.
       The House recedes with an amendment that would:
       (1) clarify that NDRF vessels would not require retrofit to 
     a double hull configuration as a consequence of this change 
     in budgeting procedure;
       (2) clarify that NDSF funds shall not be used for the 
     acquisition of ships for the NDRF that are built in foreign 
     shipyards; and
       (3) permit the use of NDSF funds to complete the 
     modifications needed to prepare two roll-on/roll-off ships 
     that were purchased in fiscal year 1995 for incorporation 
     into the ready reserve force of the NDRF.
       The conferees intend that the Department of Defense seek 
     and obtain specific legislative authorization prior to 
     obligating and expending any funds for the acquisition of any 
     vessels for the NDRF.
       The conferees are aware of the importance of strategic 
     sealift to national security. The conferees will revisit the 
     prohibition on procurement of ships built in foreign 
     shipyards but will only do so when the Department has 
     established and funded a national defense features program, 
     and they have had an opportunity to evaluate its 
     effectiveness as an alternative source of strategic sealift.
     Naval salvage facilities (sec. 1015)
       The Senate amendment contained a provision (sec. 805) that 
     would consolidate all sections in chapter 637 of title 10, 
     United States Code, relating to naval salvage facilities.
       The House bill contained no similar provision.
       The House recedes with an amendment.
     Vessels subject to repair under phased maintenance contracts 
         (sec. 1016)
       The House bill contained a provision (sec. 1022) that would 
     require the Secretary of the Navy to ensure that vessels or 
     classes of vessels, covered by phased maintenance contracts 
     while in active Navy service, would continue to be covered by 
     those contracts after being transferred to other operating 
     commands, such as the Military Sealift Command.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would restrict 
     this requirement to type AE ships covered by phased 
     maintenance contracts as of the date of enactment of the 
     National Defense Authorization Act for Fiscal Year 1996.
     Clarification of requirements relating to repairs of vessels 
         (sec. 1017)
       Section 7310 of title 10, United States Code, places limits 
     on the type of repairs that can be performed by foreign 
     shipyards on Navy ships that are homeported in the United 
     States. The House bill contained a provision (sec. 1023) that 
     would amend section 7310 by designating Guam a United States 
     homeport for purposes of that section.
       The Senate recedes.
     Naming amphibious ships (sec. 1018)
       The Senate amendment contained a provision (sec. 1013) that 
     would make the following findings:
       (1) this is the fiftieth anniversary of the battle of Iwo 
     Jima, one of the greatest victories in the Marine Corps' 
     illustrious history;
       (2) the Navy has recently retired the ship that honored 
     that battle, U.S.S. Iwo Jima (LPH-2), the first ship in a 
     class of amphibious assault ships;
       (3) this Act authorizes the LHD-7, the final ship of the 
     Wasp class of amphibious assault ships, to replace the Iwo 
     Jima class of ships;
       (4) the Navy is planning to start building a new class of 
     amphibious transport docks, now called the LPD-17 class, and 
     this Act also authorizes funds that will lead to procurement 
     of these vessels; 
     
[[Page H669]]

       (5) there has been some confusion in the rationale behind 
     naming new naval vessels, with traditional naming conventions 
     frequently violated; and
       (6) although there have been good and sufficient reasons to 
     depart from naming conventions in the past, the rationale for 
     such departures has not always been clear.
       The Senate amendment would also express the sense of the 
     Senate that:
       (1) the LHD-7, authorized in the Senate amendment, should 
     be named the U.S.S. Iwo Jima; and
       (2) the ships of the LPD-17 class amphibious ships should 
     be named after a Marine Corps battle or a member of the 
     Marine Corps.
       The House bill contained no similar provision.
       The House recedes with an amendment. The conferees agree to 
     endorse the sense of the Senate expressed as a sense of 
     Congress.
     Naming of naval vessel (sec. 1019)
       The House bill contained a provision (sec. 1024) that would 
     express the sense of Congress that the Secretary of the Navy 
     should name an appropriate naval vessel the U.S.S. Joseph 
     Vittori.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Transfer of riverine patrol craft (sec. 1020)
       The House bill contained a provision (sec. 1025) that would 
     authorize the Secretary of the Navy to transfer one Swift 
     class riverine patrol craft to the Tidewater Community 
     College, Portsmouth, Virginia, for scientific and educational 
     purposes.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                  Subtitle C--Counter-Drug Activities

     Counter-drug activities
       The budget request for drug interdiction and counter-drug 
     activities totals $680.4 million, plus $131.5 million for 
     operational tempo which is included within the operating 
     budgets of the military services.
       Both the House bill and the Senate amendment would 
     authorize the budget request of $680.4 million, with marginal 
     differences in the allocation of these funds.
       Both the House bill and the Senate amendment would delete 
     funding for the Community Outreach Programs ($8.2 million). 
     In addition, the Senate amendment included a provision (sec. 
     1022) that would prohibit continued Department of Defense 
     (DOD) funding of the National Drug Intelligence Center (NDIC) 
     ($34.0 million).
       The House bill would authorize increased funding for the 
     Tethered Aerostat Radar System ($1.5 million), Counterdrug 
     Analysis ($1.2 million), Southcom Radars ($1.5 million), 
     Special Operations Forces (SOF) Counterdrug Support ($2.5 
     million), and CARIBROC Communications ($1.5 million).
       The Senate amendment would authorize an increase in funding 
     for procurement of non-intrusive inspection devices for the 
     Customs Service ($25.0 million), Source Nation Support 
     Initiatives ($15.2 million) and the Gulf States Counterdrug 
     Initiative ($2.0 million).
       The conferees agree to delete DOD funding for the Community 
     Outreach Programs and to reduce funding for the National Drug 
     Intelligence Center to $20.0 million. The conferees also 
     agree to an undistributed reduction of $12.3 million. Offsets 
     to comply with the undistributed reduction may not be taken 
     from items where increases have been provided.
       The conferees agree to authorize additional funding for Law 
     Enforcement Agency Support, with a $4.0 million increase to 
     expand the intelligence activities of the Gulf States Coast 
     Initiative and a $2.5 million increase for the Southwest 
     Border States Information System. The conferees support 
     continued DOD assistance for the Southwest Border States 
     Anti-Drug Information System and urge the Secretary of 
     Defense to continue to monitor and support this system 
     through completion of the current program.
       The conferees further agree to authorize an additional 
     increase of $28.0 million for other Law Enforcement Agency 
     Support. The conferees urge the Secretary of Defense, through 
     normal reprogramming procedures, to use up to $25.0 million 
     of these funds to procure low-energy/backscatter x-ray 
     equipment for use as non-intrusive inspection devices. The 
     conferees are aware that 70 percent of the illegal drugs that 
     enter the United States come, primarily by air, into Mexico 
     and then across the southwest border by truck and automobile. 
     The conferees believe that the fielding of non-intrusive 
     inspection devices at the southwest border would 
     significantly contribute to the fight against illegal drug 
     trafficking across the United States-Mexican border. The 
     conferees also urge the Secretary of Defense, through normal 
     reprogramming procedures, to consider using available funds 
     for improvements and extension of the existing fence along 
     the San Diego Border Patrol Sector.
       Allocation of funds for counterdrug activities are 
     indicated below:

     Drug interdiction and counterdrug activities, operations and 
                              maintenance

                                                              Thousands
  Fiscal year 1996 drug and counterdrug request................$680,400
    Source nation support.......................................127,300
    Dismantling cartels..........................................64,300
    Detection and monitoring....................................111,700
    Law enforcement agency support..............................279,300
    Demand reduction.............................................97,800
  Reductions:
    Community outreach programs...................................8,236
    National Drug Intelligence Center............................14,000
    Undistributed reduction......................................12,264
  Increases, law enforcement agency support:
    Gulf States counterdrug initiative............................4,000
    Southwest border States information system....................2,500
  Other (non-intrusive inspection devices, Southwest border fence28,000
                                                             __________

      Total.....................................................680,400

     Revision and clarification of authority for Federal support 
         of drug interdiction and counter-drug activities of the 
         National Guard (sec. 1021)
       The Senate amendment contained a provision (sec. 1021) that 
     would revise and clarify authority for federal support of 
     drug interdiction and counter-drug activities of the National 
     Guard.
       The House bill contained no similar provision.
       The House recedes with an amendment which would further 
     clarify the legal status of National Guard personnel 
     participating in these programs.
     National Drug Intelligence Center (sec. 1022)
       The Senate amendment included a provision (sec. 1022) that 
     would prohibit further Department of Defense (DOD) funding of 
     the National Drug Intelligence Center (NDIC), but would allow 
     the Secretary of Defense to continue to provide DOD 
     intelligence personnel to support intelligence activities at 
     NDIC, as long as the number of personnel provided by DOD does 
     not exceed the number used to support intelligence activities 
     at NDIC as of the date of enactment of this bill.
       The House bill contained no similar provision.
       The House recedes.

                     Subtitle D--Civilian Personnel

     Management of Department of Defense civilian personnel (sec. 
         1031)
       The House bill contained a provision (sec. 331) that would 
     prohibit the use of full-time equivalent personnel ceilings 
     in the management of the Department of Defense's civilian 
     workforce.
       The Senate amendment contained a similar provision (sec. 
     332).
       The Senate recedes with a clarifying amendment.
       The conferees direct the Secretary of Defense to report to 
     the Senate Committee on Armed Services and the House 
     Committee on National Security by February 15, 1996, on plans 
     to manage civilian personnel in consideration of this 
     provision.
     Conversion of military positions to civilian positions (sec. 
         1032)
       The House bill contained a provision (sec. 333) that would 
     require the Secretary of Defense to convert not less than 
     10,000 military positions to performance by civilian 
     employees of the Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit the 
     conversion to be phased over two fiscal years.
     Elimination of 120-day limitation on details of certain 
         employees (sec. 1033)
       The Senate amendment contained a provision (sec. 338) that 
     would amend section 3341 of title 5, United States Code, to 
     eliminate the requirement that the administration of details 
     for civilian employees be managed in 120-day increments.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Authority of civilian employees of the Department of Defense 
         to participate voluntarily in reductions in force (sec. 
         1034)
       The Senate amendment contained a provision (sec. 340) that 
     would allow employees who are not affected by a reduction-in-
     force (RIF) to volunteer to be RIF separated in place of 
     other employees who are scheduled for RIF separation.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Authority to pay severance payments in lump sums (sec. 1035)
       The Senate amendment contained a provision (sec. 341) that 
     would amend section 5595 of title 5, United States Code, to 
     permit the lump-sum payment of severance pay.
       The House bill contained no similar provision.
       The House recedes.
     Continued health insurance coverage (sec. 1036)
       The House bill contained a provision (sec. 337) that would 
     extend continued health insurance coverage for certain 
     employees affected by a force reduction or a base realignment 
     and closure action.
       The Senate amendment contained a similar provision (sec. 
     337).
       The Senate recedes.
     Revision of authority for appointments of involuntarily 
         separated military reserve technicians (sec. 1037)
       The Senate amendment contained a provision (sec. 336) that 
     would amend section 3329 of title 5, United States Code, to 
     eliminate 

[[Page H670]]
     the requirement regarding separated technicians.
       The House bill amendment contained no similar provision.
       The House recedes.
     Wearing of uniform by National Guard technicians (sec. 1038)
       The Senate amendment contained a provision (sec. 333) that 
     would require military technicians to wear military uniforms 
     in their jobs. The provision would also place technician 
     officers on the same footing as Active Guard and Reserve 
     officers for purposes of qualifying for a uniform allowance.
       The House bill contained no similar provision.
       The House recedes.
     Military leave for military reserve technicians for certain 
         duty overseas (sec. 1039)
       The House bill contained a provision (sec. 512) that would 
     authorize military technicians an additional 44 workdays of 
     leave, without loss of pay and other benefits, for periods 
     the technician would serve on active duty, without pay, while 
     in support of non-combat operations outside the United 
     States.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Personnel actions involving employees of nonappropriated fund 
         instrumentalities (sec. 1040)
       The House bill contained a provision (sec. 334) that would 
     clarify the definition of nonappropriated fund 
     instrumentality employees and permit the direct reporting of 
     violations by nonappropriated fund employees to the 
     Department of Defense Inspector General.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Coverage of nonappropriated fund employees under authority 
         for flexible and compressed work schedules (sec. 1041)
       The House bill contained a provision (sec. 336) that would 
     provide the same overtime exemption for nonappropriated fund 
     employees as applies to other civilian employees of the 
     Department of Defense.
       The Senate amendment contained a similar provision (sec. 
     343).
       The House recedes.
     Limitation on provision of overseas living quarters 
         allowances for nonappropriated fund instrumentality 
         employees (sec. 1042)
       The House bill contained a provision (sec. 335) that would, 
     as of September 30, 1997, conform the allowance for overseas 
     living quarters for nonappropriated fund employees to that 
     provided for civilian employees of the Department of Defense 
     paid from appropriate funds.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Elections relating to retirement coverage (sec. 1043)
       The House bill contained a provision (sec. 338) that would 
     increase the number of employees eligible to transfer between 
     nonappropriated fund and appropriated fund morale, welfare, 
     recreation programs without significant loss of benefits.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide for 
     portability of retirement benefits by allowing: (1) election 
     by employees of the nonappropriated fund or the Federal 
     Employees Retirement System; (2) credit for years of service 
     either as a nonappropriated fund employee or a civil service 
     employee; (3) government-wide eligibility; and (4) 
     creditability of nonappropriated fund service for reduction-
     in-force purposes.
     Extension of temporary authority to pay civilian employees 
         with respect to the evacuation from Guantanamo, Cuba 
         (sec. 1044)
       The Senate amendment contained a provision (sec. 334) that 
     would extend the authorization for the Navy to continue to 
     pay evacuation allowances until January 31, 1996 to civilian 
     employees whose dependents were evacuated from Guantanamo, 
     Cuba, in August and September 1994. The provision would also 
     require a monthly report which would include the actions that 
     the Secretary of the Navy is taking to eliminate the 
     conditions making the payments necessary.
       The House bill contained no similar provision.
       The House recedes.

            Subtitle E--Miscellaneous Reporting Requirements

     Report on budget submission regarding reserve components 
         (sec. 1051)
       The Senate amendment contained a provision (sec. 1007) that 
     would require the Secretary of Defense to submit a report 
     that describes measures taken within the Department of 
     Defense to ensure that the reserve components are 
     appropriately funded, and, for fiscal year 1997, lists the 
     major weapons and items of equipment, as well as, the 
     military construction projects provided for the National 
     Guard and Reserves.
       The House bill included no similar provision.
       The House recedes with an amendment.
       The conferees agree to a provision that would require the 
     report included in the original Senate provision, and would 
     require the Secretary of Defense to display in all future-
     years defense programs the amounts requested for procurement 
     of equipment and military construction for each of the 
     reserve components.
     Report on desirability and feasibility of providing authority 
         for use of funds derived from recovered losses resulting 
         from contractor fraud (sec. 1052)
       The Senate amendment contained a provision (sec. 382) that 
     would allow the secretary of a military department to receive 
     an allocation from funds recovered in contractor fraud cases, 
     for use by installations that carried out or supported 
     investigations or litigation involving contractor fraud.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to report on the desirability and 
     feasibility of authorizing the retention and use of a portion 
     of such recovered amounts.
     Review of national policy on protecting the national 
         information infrastructure against strategic attack (sec. 
         1053)
       The Senate amendment contained a provision (sec. 1097) that 
     would require the President to submit a report that would set 
     forth the national policy and architecture governing plans to 
     protect the national information infrastructure against 
     strategic attack.
       The House bill contained no similar provision.
       The House recedes.
       The conferees intend that the President rely, to the 
     maximum extent practicable, on the executive agent for the 
     national communications system in the preparation and 
     submission of the report.
     Report on Department of Defense boards and commissions (see 
         1054)
       The Senate amendment contained a provision (sec. 1084) that 
     would require the Department of Defense to prepare a report 
     listing certain boards and commissions. The Department would 
     be required to indicate whether each board or commission 
     merits continued support.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Change in reporting date (sec. 1055)
       The Senate amendment contained a provision in its 
     classified annex that would change the date that the 
     Department of Defense is required to submit annually its 
     budget materials for Special Access Programs, from February 1 
     to March 1.
       The House bill contained no similar provision.
       The House recedes.

  Subtitle F--Repeal of Certain Reporting and Other Requirements and 
                              Authorities

     Miscellaneous provisions of law (sec. 1061)
       The House bill contained a provision (sec. 1032) that would 
     repeal numerous provisions of law that have expired or are 
     obsolete, or that were inconsistent with other provisions 
     recommended by the House.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would retain 
     portions of the suggested deletions.
     Reports required by Title 10, United States Code (sec. 1062)
       The Senate amendment contained seven provisions (secs. 
     1071-1077) that would delete a total of 67 reports currently 
     required of the Department of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would retain 
     several of the reporting requirements.

          Subtitle G--Department of Defense Education Programs

     Continuation of the Uniformed Services University of the 
         Health Sciences (sec. 1071)
       The House bill contained a provision (sec. 907) that would 
     require the Secretary of Defense to budget for ongoing 
     operations at the Uniformed Services University of the Health 
     Sciences.
       The Senate amendment contained a similar provision (sec. 
     1031) that would reaffirm the prohibition of the closure of 
     the University, and establish minimum staffing levels.
       The House recedes with a clarifying amendment.
     Additional graduate schools and programs at the Uniformed 
         Services University of the Health Sciences (sec. 1072)
       The Senate amendment contained a provision (sec. 1032) that 
     would authorize additional graduate schools and programs at 
     the Uniformed Services University of the Health Sciences. 
     This provision would permit the Board of Regents to establish 
     a graduate school of nursing at the University.
       The House bill contained no similar provision.
       The House recedes.
     Funding for adult education programs for military personnel 
         and dependents outside the United States (sec. 1073)
       The Senate amendment contained a provision (sec. 1033) that 
     would authorize appropriations for the military continuing 
     education programs of the armed services, and for adult 
     members of military families stationed or residing outside 
     the United States.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       
[[Page H671]]

     Assistance to local educational agencies that benefit 
         dependents of members of the armed forces and Department 
         of Defense civilian employees (sec. 1074)
       The House bill contained a provision (sec. 394) that would 
     authorize the appropriation of $58.0 million for assistance 
     to local educational agencies in areas where there is an 
     impact to school systems caused by dependents of members of 
     the armed forces and Department of Defense (DOD) civilians.
       The Senate amendment contained a provision (sec. 387) that 
     would prohibit the Secretary of Education from considering 
     payments to a local educational agency from DOD funds when 
     determining the amount of impact aid to be paid from 
     Department of Education funds. Additionally, the recommended 
     provision would make technical changes to the previous year 
     authorizations of impact aid.
       The conferees agree to combine and clarify the two 
     provisions and to change the authorized funding to $35.0 
     million.
     Sharing of personnel of Department of Defense domestic 
         dependent schools and defense dependents' education 
         system (sec. 1075)
       The Senate amendment contained a provision (sec. 335) that 
     would authorize the Secretary of Defense to direct the 
     sharing of personnel resources between the Department of 
     Defense Overseas School System and the Defense Dependents' 
     Education System, and to provide other support services to 
     either system, for a period to be prescribed by the 
     Secretary.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Increase in reserve component Montgomery GI Bill educational 
         assistance allowance with respect to skills or 
         specialties for which there is a critical shortage of 
         personnel (sec. 1076)
       The House bill contained a provision (sec. 553) that would 
     authorize increased rates of educational assistance allowance 
     for reserve members with specialties or skills in which there 
     are critical shortages.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would expand the 
     authority to include certain former active duty personnel 
     with critical specialties or skills who become members of a 
     selected reserve unit.
     Date for annual report on reserve component Montgomery GI 
         Bill educational assistance program (sec. 1077)
       The Senate amendment contained a provision (sec. 1035) that 
     would change the date on which the annual report on selected 
     reserve educational assistance program is due to the 
     Congress, from December 15 to March 1 of each year.
       The House bill contained no similar provision.
       The House recedes.
     Scope of the education programs of Community College of the 
         Air Force (sec. 1078)
       The Senate amendment contained a provision (sec. 1034) that 
     would amend section 9315 of title 10, United States Code, to 
     limit the scope of the Community College of the Air Force 
     (CCAF) to Air Force personnel.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees do not consider expanding the CCAF as an 
     appropriate means of establishing a defense-wide community 
     college. If the Secretary of Defense believes that 
     establishment of a defense-wide community college is 
     appropriate, he should forward such a recommendation, 
     complete with justification, to the Congress.
     Amendments to education loan repayment programs (sec. 1079)
       The House bill contained a provision (sec. 554) that would 
     authorize the repayment of loans that were made under the 
     William D. Ford Federal Direct Loan Program.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                       Subtitle H--Other Matters

     Termination and modification of authorities regarding 
         national defense technology and industrial base, defense 
         reinvestment, and defense conversion programs (sec. 1081)
       The House bill contained a provision (sec. 1031) that would 
     repeal portions of chapter 148 of title 10, United States 
     Code, that would establish authorities similar to those 
     provided elsewhere in law.
       The Senate amendment contained a similar provision (sec. 
     221).
       The conferees agree to a provision that would adopt both 
     House and Senate provisions, with an amendment. The conferees 
     have included a provision that would repeal subsection 2501 
     (b) and sections 2512, 2513, 2516, 2520, 2521, 2522, 2523, 
     and 2524 of title 10, United States Code. The provision would 
     also amend section 2525 of title 10, United States Code, by 
     adding a series of guidelines to the requirement for the 
     preparation of the manufacturing science and technology 
     master plan. Finally, the conferees have included language 
     that would modify the defense dual-use critical technology 
     program authorized by section 2511 of title 10, United States 
     Code. In using the authority under this section, the 
     conferees expect the Secretary of Defense to give equal 
     consideration to the development of both product and process 
     technologies.
     Ammunition industrial base (sec. 1082)
       The Senate amendment contained a provision (sec. 823) that 
     would require the Secretary of Defense to review ammunition 
     procurement and management programs and report the findings 
     to the congressional defense committees by April 1, 1996.
       The House bill contained no similar provision.
       The House recedes.
     Policy concerning excess defense industrial capacity (sec. 
         1083)
       The House bill contained a provision (sec. 1033) that would 
     prohibit the use of appropriated funds for capital investment 
     in, or the development and construction of, a government-
     owned, government-operated defense industrial facility unless 
     the Secretary of Defense certifies to Congress that no 
     similar capability or minimally used capability exists in 
     another similar facility.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment.
     Sense of Congress concerning access to secondary school 
         student information for recruiting purposes (sec. 1084)
       The Senate amendment contained a provision (sec. 1091) that 
     would express the sense of the Senate that educational 
     institutions, including secondary schools, should not deny 
     military recruiters the same access to their campuses and 
     directory information that is allowed other employers.
       The House bill contained no similar provision.
       The House recedes with an amendment expressing the sense of 
     Congress.
     Disclosure of information concerning unaccounted for United 
         States personnel from the Korean Conflict, the Vietnam 
         Era and the Cold War (sec. 1085)
       The conference agreement includes a provision that would 
     modify section 1082 of the National Defense Authorization Act 
     for Fiscal Years 1992 and 1993 (Public Law 102-190) to change 
     the criteria under which limitations to disclosure of 
     information concerning United States personnel classified as 
     prisoner of war or missing in action during the Vietnam 
     conflict would not apply and to change the date by which a 
     report is required to be delivered to the Congress.
     Operational support airlift aircraft fleet (sec. 1086)
       The Senate amendment contained a provision (sec. 1099E) 
     that would require the Secretary of Defense to submit a Joint 
     Chiefs of Staff report on operational support aircraft (OSA) 
     to the congressional defense committees, and to reduce the 
     flying hours of such aircraft in fiscal year 1996.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to examine central scheduling and management of 
     such aircraft in the report.
       The conferees believe that the review of OSA operations 
     should focus on savings and scheduling rationalization. The 
     conferees believe that the Department of Defense can achieve 
     efficiencies by revamping the current OSA program, and have 
     included a reduction in OSA flying hours for fiscal year 1996 
     in this provision.
       While prior studies of OSA organization have recommended 
     realigning OSA management, the conferees refrain from 
     directing the Department to make specific organizational 
     changes at this time.
     Civil Reserve Air Fleet (sec. 1087)
       The House bill contained a provision (sec. 387) that would 
     clarify the conditions under which a contractor under the 
     Civil Reserve Air Fleet program is required to commit 
     aircraft for use by the Department of Defense.
       The Senate amendment contained a similar provision (sec. 
     814).
       The House recedes.
     Damage or loss to personal property due to emergency 
         evacuation or extraordinary circumstances (sec. 1088)
       The Senate amendment contained a provision (sec. 1087) that 
     would provide for an increased level of reimbursement for 
     claims that arise from emergency evacuations or extraordinary 
     circumstances. The new limits would be retroactive to June 1, 
     1991.
       The House contained no similar provision.
       The House recedes with an amendment that would provide for 
     retroactive application of the increased level of 
     reimbursement when certain conditions are met.
     Authority to suspend or terminate collection actions against 
         deceased members (sec. 1089)
       The Senate amendment contained a provision (sec. 1086) that 
     would amend section 3711 of title 31, United States Code, to 
     authorize the Secretary of Defense to suspend or terminate 
     collection action against the estates of service members who 
     die on active duty while indebted to the government.
       The House bill contained no similar provision.
       The House recedes.
     Check cashing and exchange transactions for dependents of 
         United States Government personnel (sec. 1090)
       The Senate amendment contained a provision (sec. 1088) that 
     would authorize United States disbursing personnel to extend 
     check-cashing and currency exchange services to 

[[Page H672]]
     the dependents of military and civilian personnel at government 
     installations that do not have adequate banking facilities.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     National Maritime Center (sec. 1091)
       The Senate amendment contained a provision (sec. 1099D) 
     that would designate the Nauticus building, located at one 
     Waterside Drive, Norfolk, Virginia, as the National Maritime 
     Center.
       The House bill contained no similar provision.
       The House recedes.
     Sense of Congress regarding historic preservation of Midway 
         Islands (sec. 1092)
       The Senate amendment contained a provision (sec. 1099b) 
     that would express the sense of the Senate that Midway Island 
     be memorialized and the historic structures relating to the 
     Battle of Midway be maintained in accordance with the 
     National Historic Preservation Act.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make the 
     provision a Sense of the Congress.
     Sense of the Senate regarding federal spending (sec. 1093)
       The Senate amendment contained a provision (sec. 1095) that 
     would express a sense of the Senate regarding federal 
     spending.
       The House bill contained no similar provision.
       The House recedes.
     Extension of authority for vessel war risk insurance (sec. 
         1094)
       The conferees agree to a new provision that would amend 
     section 1214 of the Merchant Marine Act, 1936 (46 App. U.S.C. 
     1294) to extend the Secretary of Transportation's authority 
     to provide insurance against loss or damage as a result of 
     marine war risks from June 30, 1995 to June 30, 2000. The 
     conferees acknowledge the cooperation of the Committee on 
     Commerce, Science, and Transportation of the Senate, the 
     committee of jurisdiction in the Senate, for permitting 
     inclusion of this important authority in the National Defense 
     Authorization Act for Fiscal Year 1996.


                   legislative provisions not adopted

     Application of Buy America Act principles
       The House bill contained a provision (sec. 1035) that would 
     apply Buy American principles to reciprocal defense 
     procurement memoranda of understanding with other countries.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that section 849 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160) 
     contains identical language that is the operative law in this 
     area.
     Repeal of requirements for part-time career opportunity 
         employment reports
       The Senate amendment contained a provision (sec. 339) that 
     would eliminate the requirement in section 3407 of title 5, 
     United States Code, that agencies provide progress reports on 
     the part-time career employment program.
       The House bill contained no similar provision.
       The Senate recedes.
     Holidays for employees whose basic work week is other than 
         Monday through Friday
       The Senate amendment contained a provision (sec. 342) that 
     would amend section 6103(b)(2) of title 5, United States 
     Code, to authorize agencies some discretion in designating 
     holidays for employees whose basic work week is other than 
     Monday through Friday.
       The House bill contained no similar provision.
       The Senate recedes.
     Assistance to Customs Service
       The Senate amendment included a provision (sec. 1023) that 
     would authorize the Department of Defense to procure or 
     transfer funds to the Customs service for procurement of non-
     intrusive inspection devices for use at the ports of entry on 
     the southwest border of the United States.
       The House bill contained no similar provision.
       The Senate recedes. The conferees agree, as stated 
     elsewhere in this statement of managers, to urge the 
     Secretary of Defense to procure non-intrusive inspection 
     devices with funds available through reprogramming 
     procedures.
     Establishment of Junior ROTC units in Indian reservation 
         schools
       The Senate amendment contained a provision (sec. 1036) that 
     would express the Sense of the Congress that secondary 
     schools on Indian reservations be afforded full opportunity 
     to be selected as locations for establishing new Junior 
     Reserve Officers' Training Corps units.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree that current law affords full 
     opportunity for secondary schools on Indian reservations to 
     be selected as locations for establishing new Junior Reserve 
     Officers' Training Corps units.
     Defense cooperation between the United States and Israel
       The Senate amendment contained a provision (sec. 1055) that 
     would express the Sense of Congress for continued cooperation 
     between the United States and Israel in military and 
     technical areas.
       The House bill contained no similar provision.
       The Senate recedes. The conferees note that a provision 
     virtually identical to that contained in the Senate amendment 
     exists in the National Defense Authorization Act for Fiscal 
     Year 1995 (Public Law 103-337). The conferees recognize the 
     numerous benefits to the United States resulting from our 
     strategic relationship with Israel. The conferees strongly 
     commend the United States' continuing commitment to 
     maintaining Israel's qualitative edge over any combination of 
     adversaries. Despite the great progress made in the Middle 
     East peace process, Israel continues to face an unstable and 
     highly dangerous environment, compounded by the proliferation 
     of weapons of mass destruction and ballistic missiles.
     International military education and training
       The Senate amendment contained a provision (sec. 1058) that 
     would, subject to the provisions of the Foreign Assistance 
     Act of 1961, grant discretionary authority to the Secretary 
     of Defense to provide up to $20.0 million for the provision 
     of international military education and training (IMET) for 
     countries allied and friendly with the United States.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees strongly support Department of Defense 
     funding for and management of the IMET program. IMET is a 
     unique military program that fosters military-to-military 
     relationships and contributes to greater inter-operability 
     and coalition-building with the military organizations of 
     allied and friendly nations. IMET has suffered in recent 
     years from being part of the State Department's budget which 
     has become increasingly unpopular with the American public 
     and their elected representatives. The conferees are pleased 
     to note, however, that the Foreign Operations Appropriations 
     Conference Report for Fiscal Year 1996 fully funds the 
     administration's IMET request.
       The conferees intend to address this matter next year with 
     a view towards transferring budgetary and execution 
     responsibility for IMET to the Department of Defense. 
     Accordingly, the conferees encourage the Secretary of Defense 
     and the Secretary of State to work out a process for such a 
     transfer to ensure smooth and effective functioning with 
     robust future funding.
     Sense of the Senate on protection of United States from 
         ballistic missile attack
       The Senate amendment contained a provision (sec. 1062) that 
     would express the Sense of the Senate that all Americans 
     should be protected from accidental, intentional, or limited 
     ballistic missile attack, and that front line troops of the 
     United States should be protected from missile attacks. The 
     Senate provision would also provide funding for the Corps 
     surface-to-air missile (SAM) program.
       The House bill contained no similar provision.
       The Senate recedes. Although the conferees fully support 
     the views expressed in the Senate provision, they believe 
     that such views are adequately represented elsewhere in the 
     conference report. The conferees also address the Corps SAM 
     issue elsewhere in the conference report.
     Travel of disabled veterans on military aircraft
       The Senate amendment contained a provision (sec. 1089) that 
     would permit veterans eligible for compensation for a 
     service-connected disability the same entitlement to space-
     available transportation as retired members of the Armed 
     Forces.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note the unreliable nature of space-available 
     flight, and that such flights would normally involve cargo-
     type aircraft, which are not equipped for handicapped access, 
     seating and care. The conferees agree that concerns for the 
     safety of disabled veterans were overriding in this decision.
     Transportation of crippled children in the Pacific Rim region 
         to Hawaii for medical care
       The Senate amendment contained a provision (sec. 1090) that 
     would authorize the Secretary of Defense to permit space-
     available transportation of crippled children in the Pacific 
     Rim region to Hawaii for medical care in non-military medical 
     facilities.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees direct the Secretary of Defense to conduct a 
     study, consulting with the Shriners Hospitals in the Pacific 
     region, to determine the viability and potential liabilities 
     of such a program. The report should be provided to the 
     Senate Committee on Armed Services and the House Committee on 
     National Security not later than May 1, 1996.
     Sense of Senate regarding Ethics Committee investigations
       The Senate amendment contained a provision (sec. 1094) 
     expressing the Sense of the Senate concerning proceedings 
     before the Senate Ethics Committee with respect to Senator 
     Packwood.
       The House bill contained no similar provision.
       
[[Page H673]]

       The Senate recedes.

               Title XI--Uniform Code of Military Justice


                         LEGISLATIVE PROVISIONS

                     LEGISLATIVE PROVISIONS ADOPTED

     References to Uniform Code of Military Justice (sec. 1102)
       The House bill contained a provision (sec. 541) that would 
     clarify references to the Uniform Code of Military Justice in 
     the bill.
       The Senate amendment contained an identical provision (sec. 
     521).
       The conference agreement includes this provision.

                          Subtitle A--Offenses

     Refusal to testify before courts-martial (sec. 1111)
       The Senate amendment contained a provision (sec. 524) that 
     would provide Federal District Courts the same power to 
     punish individuals who fail to appear at courts-martial as 
     they currently have to punish individuals who do not appear 
     in civilian cases.
       The House bill contained no similar provision.
       The House recedes.
     Flight from apprehension (sec. 1112)
       The House bill contained a provision (sec. 544) that would 
     make it clear that the offense of ``resisting apprehension'' 
     under Article 95 of the Uniform Code of Military Justice 
     includes flight from apprehension.
       The Senate amendment contained an identical provision (sec. 
     531).
       The conference agreement includes this provision.
     Carnal knowledge (sec. 1113)
       The Senate amendment contained a provision (sec. 532) that 
     would amend Article 120(b) of the Uniform Code of Military 
     Justice (10 U.S.C. 920 (b)) by making the crime of carnal 
     knowledge gender neutral, bringing Article 120 into 
     conformance with the Sexual Abuse Act of 1986. The provision 
     also would add an affirmative defense of mistake of fact to 
     conform Article 120 to federal civilian law (18 U.S.C. 2243).
       The House bill contained a similar provision (sec. 545).
       The House recedes.

                         Subtitle B--Sentences

     Effective date for forfeitures of pay and allowances and 
         reductions in grade by sentence of court-martial (secs. 
         1121 and 1122)
       The Senate amendment contained provisions (secs. 526(a) and 
     526(b)) that would require those portions of a court-martial 
     sentence extending to forfeiture of pay and allowances or 
     reduction in grade to be effective 14 days after the date the 
     sentence is adjudged or upon approval by the convening 
     authority, whichever occurs earlier. The amendment would also 
     require that sentences containing a punitive discharge, 
     death, or more than 6 months confinement, result in total 
     forfeitures of pay and allowances. If an accused were to make 
     application to the convening authority, the forfeitures of 
     pay and allowances, or reduction in grade or both could be 
     deferred until the date on which the sentence is approved. 
     Also under this provision, when convening authorities take 
     action on sentences, any or all of the forfeitures of pay and 
     allowances to be forfeited could be used to provide 
     transitional compensation for the dependents of the accused.
       The House bill contained a similar provision (sec. 542).
       The House recedes with an amendment which would apply the 
     automatic forfeitures to a sentence of death, punitive 
     discharge, or confinement in excess of six months. The 
     forfeiture in the case of a special court-martial would be 
     limited to two-thirds of the pay due, which is the maximum 
     punishment limitation of a special court-martial.
     Deferment of confinement (sec. 1123)
       The Senate amendment contained a provision (sec. 527) that 
     would allow for the deferment of confinement adjudged by 
     courts-martial in two situations beyond those authorized 
     under current law. One would permit deferment of confinement 
     while the case is being reviewed by the United States Court 
     of Appeals for the Armed Forces under Article 67(a)(2). The 
     other circumstance that would lead to deferment concerns 
     individuals who are serving civilian confinement while they 
     have a sentence pending that has been adjudged by a court-
     martial. The Senate amendment would defer the running of the 
     court-martial sentence until completion of the civilian 
     sentence, if the convening authority so directs.
       The House bill contained no similar amendment.
       The House recedes.

              Subtitle C--Pretrial and Post-Trial Actions

     Article 32 investigations (sec. 1131)
       The Senate amendment contained a provision (sec. 523) that 
     would revise the procedures for authorizing investigation of 
     misconduct uncovered during a pretrial investigation under 
     Article 32 of the Uniform Code of Military Justice.
       The House bill contained no similar provision.
       The House recedes. Under Article 32 of the Uniform Code of 
     Military Justice, a formal pretrial investigation is 
     conducted when a court-martial convening authority refers 
     charges to an Article 32 investigating officer. Under current 
     law, if the Article 32 officer uncovers evidence of 
     additional misconduct in the course of the investigation, the 
     information must be provided to the convening authority and 
     then referred back to the Article 32 officer before it can be 
     investigated by the Article 32 investigating officer.
       The conferees agree that current law should be changed to 
     permit the investigating officer to investigate new 
     misconduct uncovered during the Article 32 investigation 
     without requiring further administrative action by the 
     convening authority. This change should reduce the time, 
     delay, and administrative burden associated with obtaining 
     the convening authority's approval for investigation of 
     additional misconduct. The conferees emphasize, however, that 
     the additional misconduct may not be investigated under 
     Article 32 unless the accused is afforded the same rights as 
     under current law with respect to investigation of the 
     charges, presentation of evidence in defense or mitigation, 
     and cross-examination as apply to the charges that were the 
     basis of the Article 32 investigation.
     Submission of matters to the convening authority for 
         consideration (sec. 1132)
       The Senate amendment contained a provision (sec. 528) that 
     would require all post-trial material submitted to the 
     convening authority by the accused to be in writing. Current 
     law does not specify the medium for such submissions.
       The House bill contained no similar provision.
       The House recedes. The conferees agree that the intent of 
     this section is not to restrict the accused's communications 
     with the convening authority, but to ensure that formal 
     submissions under Article 60(b) are made through a standard 
     medium. The convening authority, in his or her discretion, 
     may take into consideration other communications by the 
     accused, such as a personal appearance or a videotape. The 
     convening authority, however, is not required to review such 
     other matters under Article 60, and a convening authority's 
     decision to refuse consideration of matters other than 
     written submissions is not subject to review. The conferees 
     direct the Secretary of Defense to ensure that the 
     explanatory ``Discussion'' accompanying the Manual for 
     Courts-Martial reflect that this amendment does not restrict 
     the ability of the convening authority to consider 
     communications from the accused that are not written 
     submissions.
     Commitment of accused to treatment facility by reason of lack 
         of mental capacity or mental responsibility (sec. 1133)
       The Senate amendment contained a provision (sec. 525) that 
     would establish procedures for handling individuals who are 
     mentally incompetent to stand trial or found not guilty by 
     reason of lack of mental responsibility.
       The House bill contained no similar provision.
       The House recedes.
       This provision is in no way intended to conflict with Rule 
     706 of the Rules for Courts-Martial. To the extent that there 
     is a provisions overlap, section 706 should be reviewed to 
     make certain that it conforms with the new provision.

                     Subtitle D--Appellate Matters

     Appeals by the United States (sec. 1141)
       The Senate amendment contained a provision (sec. 530) that 
     would apply to courts-martial the same protections with 
     regard to classified information as apply to orders or 
     rulings issued in Federal District Courts under the 
     Classified Information Procedures Act (18 U.S.C. App. 7). 
     This section incorporates Senate amendment section 522 
     concerning certain definitions.
       The House bill contained no similar provision.
       The House recedes with an amendment.
     Repeal of termination of authority for Chief Justice of 
         United States to designate Article III judges for 
         temporary service on Court of Appeals for the Armed 
         Forces. (sec. 1142)
       The House bill contained a provision (sec. 549) that would 
     make permanent the authority of the Chief Justice of the 
     United States to fill temporary vacancies on the United 
     States Court of Appeals for the Armed Forces. Section 1301 of 
     the National Defense Authorization Act for Fiscal Years 1990 
     and 1991 authorized the Chief Judge of the United States 
     Court of Appeals for the Armed Forces to request the Chief 
     Justice to make such appointments through September 30, 1995. 
     This provision would eliminate the ``sunset'' provision.
       The Senate amendment contained a similar provision (sec. 
     535).
       The Senate recedes.

                       Subtitle E--Other Matters

     Advisory committee on criminal law jurisdiction over 
         civilians accompanying the Armed Forces in time of armed 
         conflict (sec. 1151)
       The Senate amendment contained a provision (sec. 536) that 
     would create an advisory panel to determine which courts 
     should have criminal jurisdiction over civilians accompanying 
     the military outside the United States during times of armed 
     conflict, including conflicts other than a declared war.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Time after accession for initial instruction in the Uniform 
         Code of Military Justice (sec. 1152)
       The House bill contained a provision (sec. 546) that would 
     increase the time after accession for initial instruction in 
     the Uniform Code of Military Justice.
     
[[Page H674]]

       The Senate amendment (sec. 533) contained an identical 
     provision.
       The conference agreement includes this provision.
     Technical amendment (sec. 1153)
       The House bill contained a provision (sec. 550) that would 
     amend article 66(f) of the Uniform Code of Military Justice 
     (10 U.S.C. 866) by striking out ``Courts of Military Review'' 
     in both places it appears, and inserting in lieu thereof 
     ``Courts of Criminal Appeals.''
       The Senate amendment contained an identical provision (sec. 
     534).
       The conference agreement includes this provision.


                   legislative provisions not adopted

     Persons who may appear before the United States Court of 
         Appeals for the Armed Forces
       The House bill contained a provision (sec. 547) that would 
     provide that only attorneys and properly certified law 
     students could practice and appear before the United States 
     Court of Appeals for the Armed Forces.
       The Senate amendment contained no similar provision.
       The House recedes. The conferees believe that the question 
     of who should be authorized to appear before the Court of 
     Appeals for the Armed Forces normally should be addressed 
     through the rules promulgated by the court, rather than 
     through legislation. The conferees are concerned, however, 
     that the Court has permitted undergraduate students to appear 
     before the Court as amicus curiae. However laudable it may be 
     to afford such students practical experience appearing before 
     a federal court, the conferees believe such considerations 
     are outweighed by the requirement that the Court of Appeals 
     for the Armed Forces maintain the highest standards of 
     judicial practice and procedure. The conferees are aware that 
     the Court presently has this matter under review and look 
     forward to a change in the Court's rules of procedure that 
     will obviate the need for legislation on this subject.
     Discretionary representation by government appellate defense 
         counsel in petitioning the Supreme Court for writ of 
         certiorari
       The House bill contained a provision (sec. 548) that would 
     amend section 870 of title 10, United States Code, to provide 
     that representations of an accused, in the preparation of a 
     petition for a writ of certiorari before the United States 
     Supreme Court, shall be at the discretion of military 
     appellate defense counsel. Current law requires appellate 
     defense counsel to represent the accused before the Supreme 
     Court when requested by the accused.
       The Senate amendment contained no similar provision.
       The House recedes.
     Proceedings in revision
       The Senate amendment contained a provision (sec. 529) that 
     would authorize a proceeding in revision at courts-martial 
     prior to authentication of the record under certain 
     conditions.
       The House bill contained no similar provision.
       The Senate recedes.

 Title XII--Cooperative Threat Reduction With States of Former Soviet 
                                 Union


                         legislative provisions

                     legislative provisions adopted

     Cooperative threat reduction program (secs. 1201-1209)
       The budget request included $371.0 million in defense 
     operation and maintenance for the Cooperative Threat 
     Reduction (CTR) Program.
       The House bill contained provisions (secs. 1101-1108) 
     related to the CTR program that would include the following: 
     authorize $200.0 million for the CTR program, a $171.0 
     million reduction to the budget request (sec. 1101); place 
     specific limitations on all CTR programs for fiscal year 1996 
     (sec. 1102); repeal authority for the Demilitarization 
     Enterprise Fund (DEF) (sec. 1103); prohibit the use of CTR 
     funds for peacekeeping exercises and related activities with 
     Russia (sec. 1104); revise authority for assistance for 
     weapons destruction (sec. 1105); require prior notice of 
     obligation of funds (sec. 1106); require an annual 
     accountability report to ensure that assistance is being used 
     for its intended purpose (sec. 1107); and prohibit the 
     obligation or expenditure of fiscal year 1996 funds until the 
     President provides written certification to Congress that 
     Russia has terminated its offensive biological weapons 
     program.
       The Senate amendment included several provisions (sec. 
     1041-1044) related to the CTR program that would include the 
     following: authorize $365.0 million for the CTR program, a 
     $6.0 million reduction to the budget request (sec. 1041); 
     limit the obligation of CTR funds that would assist nuclear 
     weapons scientists in the former Soviet Union, pending a 
     written certification from the Secretary of Defense that 
     funds would not contribute to the modernization of strategic 
     nuclear forces or for research, development or production of 
     weapons of mass destruction (sec. 1042); limit the obligation 
     of $50.0 million, pending a written certification from the 
     President that Russia is in compliance with its obligations 
     under the Biological Weapons Convention (BWC); and limit the 
     use of more than $52.0 million of fiscal year 1996 funds 
     available for CTR, pending a presidential certification that 
     a joint laboratory study to evaluate the Russian 
     neutralization proposal has been completed and the United 
     States agrees with that proposal, that Russia is in the 
     process of preparing a comprehensive destruction and 
     dismantlement plan for its chemical weapons stockpile, and 
     that Russia is committed to resolving outstanding issues 
     under the 1989 Wyoming Memorandum of Understanding and the 
     1990 Bilateral Destruction Agreement.
       The conferees agree to the CTR provisions, as follows: 
     authorize $300.0 million in fiscal year 1996 for CTR and 
     place limitations on the CTR projects in fiscal year 1996; 
     provide authority for individual limitations to be exceeded 
     by a specified percentage; authorize use of CTR funds to 
     reimburse pay accounts for U.S. military reserve members 
     participating in CTR activities; prohibit the use of CTR 
     funds for peacekeeping activities and related activities with 
     Russia; require a presidential determination that each 
     recipient country is observing the criteria for assistance 
     provided under the CTR program; require the Secretary of 
     Defense to provide congressional defense committees with 
     advance notification of obligation of funds; require an 
     annual audit and examination report; limit assistance to 
     nuclear weapons scientists; and limit the obligation of $60.0 
     million in fiscal year 1996 CTR funds for Russia, pending 
     presidential certification that Russia is complying with its 
     BWC obligations and that Russia has agreed to, and 
     implemented, agreements and visits per the September 14, 1992 
     Joint Statement on Biological Weapons and that visits to the 
     four declared military biological facilities of Russia by 
     officials of the U.S. and United Kingdom have occurred. If 
     the President is unable to certify Russian compliance with 
     its BWC obligations, or that visits agreed to under the Joint 
     Statement have not occurred, he may certify that fact and 
     related funds would then be available for strategic offensive 
     weapons elimination in Ukraine, Kazakhstan or Belarus. The 
     provision would also prohibit obligation of more than half 
     the funds authorized for chemical weapons destruction-related 
     activities in Russia, pending a presidential certification.
       The conferees direct that none of the funds authorized for 
     CTR in fiscal year 1996 may be used to reimburse other 
     departments and agencies for the travel and other expenses 
     incurred by employees of those departments and agencies, even 
     if those employees are engaged in CTR-related activities.
       The Conventional Forces in Europe (CFE) Treaty requires 
     signatories to be in full compliance with their obligations 
     to reduce treaty limited equipment by November 16, 1995. The 
     Russian government has generally been in overall compliance 
     with its obligations since the treaty has been in force 
     provisionally. Russia's compliance with the limits in the 
     northern and southern flank zones has caused concern for a 
     number of the signatories. Russian officials have indicated 
     that they will not be in compliance with the flank limits in 
     these zones because of the instability along their southern 
     borders.
       If Russia refuses to honor its legal and political 
     obligations under the CFE Treaty, the conferees question the 
     ability of the President to certify Russia's commitment to 
     complying with its arms control obligations, necessary to 
     make it eligible to receive CTR assistance. Further, the 
     conferees believe that the President would only be in a 
     position to certify Russia's commitment to comply with its 
     arms control obligations under the following circumstances: 
     (1) through an agreement to comply with a NATO-endorsed flank 
     limit proposal and substantial progress toward withdrawing 
     any excess equipment by the May 1996 Treaty Review 
     Conference; (2) demonstrated fulfillment of obligations to 
     meet agreed-upon reductions in levels of military equipment 
     in the naval infantry and coastal defense forces, and in 
     holdings east of the Ural mountains; and (3) through an 
     agreement on an offset package that would add to the flank 
     limit proposal additional verification measures, additional 
     information sharing arrangements on the flank areas, and 
     additional constraints on Treaty-limited equipment contained 
     in areas formerly defined as flank areas.

             Title XIII--Matters Relating to Other Nations


                       Items of Special Interest

     Waiver of foreign assistance reimbursement requirements to 
         the Department of Defense and the armed forces
       The conferees are concerned about the inadequate funding in 
     the fiscal year 1996 international affairs budget for 
     activities identified by the administration as presidential 
     priorities, such as drawdown authority for defense articles 
     and services for Jordan and the transfer of non-lethal 
     defense articles to Central European countries.
       While the conferees are generally supportive of both 
     activities, the conferees do not support efforts to waive 
     requirements under Sections 519(f) and 632(d) of the Foreign 
     Assistance Act of 1961. Those provisions of the Foreign 
     Assistance Act require reimbursement of the Department of 
     Defense and military services for costs to transport defense 
     articles, or replace defense items that are not excess to the 
     military services.
       The conferees appreciate the role that Jordan played in the 
     Middle East peace process and believe that the Government of 
     Jordan should have the defense items, services, and military 
     training, that would enable them to protect their borders and 
     respond to terrorist threats. However, the conferees are 
     concerned by the use of defense funds to pay for this 
     authority.
     
[[Page H675]]

       In a letter supporting the special drawdown authority for 
     Jordan, the Secretary of Defense stated that military 
     readiness would suffer unless the non-excess defense items 
     are replaced and the military services are reimbursed for 
     transportation and other costs. The conferees direct the 
     Secretary of Defense to provide a report to the congressional 
     defense committees 60 days after enactment of this Act that 
     would address the cost to replace non-excess defense items 
     provided to Jordan and an identification of funds included in 
     the President's fiscal year 1997 budget for this purpose.


                         legislative provisions

                     legislative provisions adopted

                  Subtitle A--Peacekeeping Provisions

     Limitation on use of Department of Defense funds for 
         international peacekeeping assessments and drawdown of 
         Department of Defense articles (sec. 1301)
       The House bill contained a provision (sec. 1202) that would 
     amend chapter 20 of title 10, United States Code, to prohibit 
     the use of Department of Defense funds for voluntary or 
     assessed financial contributions to the United Nations for 
     the United States share of peacekeeping costs, effective 
     October 1, 1995.
       The Senate amendment contained no similar provision.
       The Senate recedes.

              Subtitle B--Humanitarian Assistance Programs

     Overseas humanitarian, disaster, and civic aid (secs. 1311-
         1312)
       The House bill contained a provision (sec. 1211) that would 
     specify five programs operated by the Department of Defense 
     to be funded through the budget account known as Overseas 
     Humanitarian, Disaster, and Civic Aid (OHDACA).
       The House bill also contained a provision (sec. 1212) that 
     would eliminate the current authority to transfer funds from 
     DOD to the Department of State to provide for the 
     administrative costs associated with the transportation of 
     humanitarian supplies. In addition, this provision would 
     remove the Secretary of State's authority over the DOD's 
     program for the transportation of humanitarian relief, and it 
     would provide for technical changes to the existing reporting 
     requirements for the DOD's humanitarian programs.
       The Senate amendment contained a provision (sec. 365) that 
     would require the General Accounting Office (GAO) to submit a 
     report to Congress on existing funding mechanisms that would 
     facilitate the funding of programs within the OHDACA account 
     through the Department of State or the Agency for 
     International Development. If such mechanisms do not 
     currently exist, the GAO would be required to identify those 
     actions necessary to institute such mechanisms.
       The conference agreement includes these provisions.
       The conferees agree that although the DOD is uniquely 
     capable of performing some humanitarian or disaster relief 
     operations, these operations are fundamentally the 
     responsibility of the Department of State and the Agency for 
     International Development and, in general, are more 
     appropriately funded through these agencies. Therefore, the 
     conferees have reduced the amount of DOD funds available to 
     the OHDACA account for fiscal year 1996 and have requested 
     that the GAO provide a report that would identify necessary 
     changes in existing law or regulations to transfer the 
     funding responsibility for these programs, where appropriate, 
     to other federal agencies, beginning in fiscal year 1997.
     Landmine clearance program (sec. 1313)
       The House bill contained a provision (sec. 1213) that would 
     amend humanitarian and civic assistance authorities in 
     section 401 of title 10 United States Code to include 
     humanitarian demining activities.
       The Senate amendment contained a provision (sec. 1054) that 
     would amend section 1413 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337) 
     to include the following: require the Secretary of Defense to 
     certify to the Congress that humanitarian activities satisfy 
     military training requirements for the personnel involved; 
     authorize $20.0 million in fiscal year 1996 for the 
     humanitarian landmine clearing assistance program; terminate 
     authority for the Department of Defense to provide funds for 
     the humanitarian landmine clearing assistance program after 
     fiscal year 1996; and revise the definition of a landmine.
       The conferees agree to a provision that would amend section 
     401 of title 10 United States Code to include humanitarian 
     demining activities; limit activities of United States 
     military personnel participating in humanitarian landmine 
     clearing activities; and, repeal section 1413 of the National 
     Defense Authorization Act for Fiscal Year 1995 (Public Law 
     103-337).
       Unlike other types of humanitarian and civic assistance 
     activities, the conferees realize that the activities of 
     detection and clearing of landmines will often be the sole or 
     primary focus of the military operation in question. In such 
     cases, the approving authority would have to determine that 
     the specific operational readiness skills of the 
     participating United States forces--usually special 
     operations forces whose skills are based upon the activities 
     listed in section 167(j) of title 10, United States Code--
     will be promoted by participation in those activities.

            Subtitle C--Arms Export and Military Assistance

     Defense export loan guarantees (sec. 1321)
       The House bill contained a provision (sec. 1224) that would 
     require the Secretary of Defense to create a defense export 
     loan guarantee program for certain eligible countries.
       The Senate amendment contained a similar provision (sec. 
     1053) with different criteria for eligible countries.
       The House recedes with an amendment that would authorize 
     use of fees generated under the program for payment of start-
     up costs for administration of the program and for payment of 
     ongoing administrative expenses. The conferees intend to 
     monitor the administration of this program closely to ensure 
     that the method of funding the administrative fees does not 
     impact the process of approval of the loan guarantees.
     National security implications of United States export 
         control policy (sec. 1322-1323)
       The Senate amendment contained a provision (sec. 1052) that 
     would express the sense of Congress regarding the national 
     security implications of maintaining effective export 
     controls on dual-use items and technologies that are critical 
     to the military capabilities of the United States. This 
     provision would require the Department to review export 
     licenses for class 2, 3, and 4 biological pathogens with a 
     potential use in biological warfare programs and to determine 
     if export would be contrary to U.S. national security 
     interests.
       The House bill did not contain a similar provision.
       The House recedes. The conferees concur with concerns 
     identified in the Senate report (S. Rept. 104-112) that the 
     lowering of export controls on dual-use items and 
     technologies may place current U.S. technologies and defense 
     capabilities at risk. The conferees continue to be concerned 
     with administration support for admittance of nations into 
     the Missile Technology Control Regime (MTCR) and the New 
     Forum absent a record of compliance with the spirit of these 
     regimes prior to their inclusion.
       Two years ago in the House report (H. Rept. 103-357), the 
     conferees expressed concern that ``. . . loosening the 
     restrictions on space launch vehicle technology within the 
     MTCR could, over time, result in the proliferation of 
     offensive ballistic missiles . . .'' and expressed particular 
     concern about the new MTCR members being permitted to retain 
     space launch vehicle programs. Despite written administration 
     assurances that Congress would be consulted on MTCR-related 
     issues, to include the addition of new members, the conferees 
     were disappointed to learn in the summer of 1995 that new 
     countries would be admitted to the MTCR, despite retention of 
     a SLV program and a history of evading program controls. The 
     conferees believe that the current administration approach 
     facilitates a growing and perhaps irreversible danger that 
     the MTCR, despite its auspicious early history, will 
     increasingly become an avenue for technology proliferation.
       The conferees strongly encourage the administration to 
     emphasize the use of controls on sensitive technologies in 
     any new administration proposals to reauthorize the Export 
     Administration Act, and that no attempts be made to repeal or 
     substantially alter the missile sanction provisions in Title 
     XVII of the National Defense Authorization Act for Fiscal 
     Year 1991, as was the case in the administration proposal 
     submitted in the last Congress.
       American firms are conducting discussions and negotiations 
     with a number of foreign governments, or other entities, on 
     the purchase of high-resolution U.S. commercial 
     reconnaissance and imaging satellites and high-resolution 
     imagery or imagery distribution systems. The conferees 
     understand that the Secretary of Defense is authorized under 
     Presidential Directive/National Security Council-23 and the 
     Remote Sensing Act of 1992 to determine when national 
     security interests call for controls on such satellite 
     imagery. The Secretary of State is similarly empowered to 
     determine when international obligations would require 
     imagery controls. The conferees emphasize the following: that 
     determinations on national security and international 
     obligations should be communicated to U.S. firms in 
     discussions regarding issuance of operating licenses to U.S. 
     firms, to the extent such determinations can be made in 
     advance of the actual operation of the satellites; that the 
     Secretary of Defense or the Secretary of State should ensure 
     that license agreements and distribution agreements include 
     adequate provisions to ensure that the sharing of imagery or 
     procurement of U.S. commercial imagery systems or products 
     with foreign governments or foreign entities would not be 
     used against U.S. military forces deployed overseas; and that 
     provisions in the license agreements should deny terrorist 
     governments and entities controlled by these governments 
     access to imagery of neighboring countries. The conferees 
     continue to be concerned that the national security issues 
     involved in the proliferation of high-resolution satellites 
     and satellite imagery have not been adequately thought 
     through by the executive branch and hope that the report 
     mandated by this section will serve to clarify DoD policy on 
     these issues.
       The conferees also note the recent decision to relax export 
     restrictions on supercomputers and are concerned about the 
     potential impact of this decision on the United States' 
     nonproliferation efforts and the maintenance of the U.S. 
     military technological edge. The conferees direct the 
     Secretary of Defense to submit a report, not 

[[Page H676]]
     later than December 31, 1995, that describes the impact of the export 
     decision on the ability of nations to acquire and use high-
     performance computing capabilities to develop advanced 
     conventional weaponry, weapons of mass destruction, and 
     delivery vehicles, including missiles.
     Reports on arms export control and military assistance (sec. 
         1324)
       The Senate amendment contained a provision (sec. 1064) that 
     would require the following reports to be submitted to 
     Congress: (1) a report by the Secretary of State on the firms 
     that are on the Department of State watch list for export of 
     sensitive or dual use technologies, and a description of the 
     measures taken to strengthen United States export controls; 
     (2) an evaluation of the watch list screening process by the 
     Department of State Inspector General; and (3) an annual 
     report on the aggregate dollar value and quantity of defense 
     articles, services, and military education and training 
     furnished by the United States to each foreign country and 
     international organization.
       The House bill did not contain a similar provision.
       The conferees agree to a provision that would require the 
     Department of State and the Department of Commerce, in 
     consultation with the Department of Defense, to report 
     jointly to the Congress on United States export control 
     mechanisms and measures taken to strengthen export controls. 
     The provision would also require the President to submit a 
     report to Congress on military assistance and military 
     exports authorized or furnished to foreign countries and 
     international organizations.
     Report on personnel requirements for control of transfer of 
         certain weapons (sec. 1325)
       The Senate amendment contained a provision (sec. 1093) that 
     would require the Secretary of Defense and the Secretary of 
     Energy to report to the Congress on the personnel resources 
     necessary to implement nonproliferation policy 
     responsibilities of both departments and would require both 
     Secretaries to explain the failure to provide the report, as 
     previously required by legislation.
       The House bill did not contain a similar provision.
       The House recedes.

 Subtitle D--Burdensharing and Other Cooperative Activities Involving 
                            Allies and NATO

     Accounting for burdensharing contributions (sec. 1331)
       The House bill contained a provision (sec. 1225) that would 
     authorize the United States to accept burdensharing 
     contributions in the currency of the host nation or in United 
     States dollars. This provision would maintain this funding in 
     a separate account that would be available until expended.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Authority to accept contributions for expenses of relocation 
         within host nations of United States armed forces 
         overseas (sec. 1332)
       The House bill contained a provision (sec. 1226) that would 
     establish authorization and procedures to accept 
     contributions from host nations for the purpose of relocating 
     United States armed forces within the host nation.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Revised goal for allied share of costs for United States 
         installations in Europe (sec. 1333)
       The House bill contained a provision (sec. 1228) that would 
     require the Department of Defense to reduce United States 
     military personnel assigned in European North Atlantic Treaty 
     Organization (NATO) countries during fiscal years 1996-1999. 
     Military personnel would be reduced by 1,000 for each 
     scheduled percentage point that allied contributions in cash 
     and in-kind payments fail to offset U.S. non-personnel costs 
     of operating military installations in Europe.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment.
       The conferees agree to a provision that would amend section 
     1304 of the National Defense Authorization Act of 1995 
     (Public Law 103-337) to require the President to seek an 
     agreement with European member states of NATO to increase to 
     42.5 percent by September 30, 1997 their share of the 
     nonpersonnel costs for United States military installations 
     in those nations.
     Exclusion of certain forces from European end strength 
         limitation (sec. 1334)
       The conference agreement includes a provision that would 
     exclude personnel performing duties in Europe for more than 
     179 days under a military-to-military contact program.
     Cooperative research and development agreements with NATO 
         organizations (sec. 1335)
       The Senate bill contained a provision (sec. 1051) that 
     would make a technical and conforming amendment to section 
     2350b of title 10, United States Code, to make it consistent 
     with section 2350a, which was amended in the National Defense 
     Authorization Act for Fiscal Year 1995.
       The House bill did not contain a similar provision.
       The House recedes.
     Support services for the Navy at the Port of Haifa (sec. 
         1336)
       The Senate amendment contained a provision (sec. 1056) that 
     would express the sense of Congress that the Secretary of the 
     Navy should promptly undertake actions to:
       (1) improve the services available to the Navy at the Port 
     of Haifa; and
       (2) ensure that the continuing increase in commercial 
     activities at the Port of Haifa does not have an adverse 
     impact on the services required by the Navy at Haifa.
       The House bill contained no similar provision.
       The House recedes with an amendment.

                       Subtitle E--Other Matters

     Prohibition on financial assistance to terrorist countries 
         (sec. 1341)
       The Senate amendment contained a provision (sec. 1057) that 
     would prohibit the use of any Department of Defense funds to 
     assist nations that support acts of terrorism. A 
     determination to prohibit funds may be based on a 
     determination by the Secretary of State under section 
     6(j)(1)(A) of the Export Administration Act of 1979; or that 
     a nation provided significant support for international 
     terrorism, as identified in a report to Congress, pursuant to 
     section 140 of the Foreign Relations Authorization Act, 
     Fiscal Year 1988 and 1989; or a determination by the 
     President that a nation has supported international terrorism 
     or has granted sanctuary from prosecution to a group or 
     individual that has committed an act of international 
     terrorism.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Judicial assistance to the International Tribunal for 
         Yugoslavia and to the International Tribunal for Rwanda 
         (sec. 1342)
       The Senate amendment contained a provision (sec. 1098) that 
     would provide authority for the United States to surrender 
     persons and provide judicial assistance to the International 
     Tribunals for Yugoslavia and Rwanda, pursuant to the 
     agreement between the Government of the United States and the 
     International Tribunals.
       The House bill did not contain a similar provision.
       The House recedes with a technical amendment.
     United States-China Joint Defense Conversion Commission (sec. 
         1343)
       The House bill included a provision (sec. 1223) that would 
     prohibit the use of funds authorized in fiscal year 1996 for 
     the Department of Defense activities associated with the 
     United States-People's Republic of China Joint Defense 
     Conversion Commission.
       The Senate bill did not include a similar provision.
       The House recedes with an amendment.
       The conferees agree to a provision that would require the 
     Secretary of Defense to submit semi-annual reports to 
     Congress on the United States-People's Republic of China 
     (PRC) Joint Defense Conversion Commission. The report shall 
     include: a description of activities that could directly, or 
     indirectly, assist the military modernization efforts of the 
     PRC; information on the activities and operations of the 
     Commission; a discussion of the relationship of PRC defense 
     conversion activities and PRC defense modernization efforts; 
     steps taken by the United States to safeguard against use of 
     western technology to modernize the PRC military industrial 
     base; and an assessment of U.S. benefits derived from 
     participation in the commission, to include an increase in 
     the transparency of the military budget and doctrine of the 
     PRC. In preparing the reports required by this section, the 
     Secretary shall seek and obtain the views of appropriate U.S. 
     intelligence agencies and shall be consulted on the matters 
     assessed in the reports and those views shall be included as 
     an annex to the reports.
       The conferees agree that a continued dialogue on security 
     matters between the United States and the PRC can promote 
     stability in the region, and help protect American interests 
     and the interests of America's Asian allies. The conferees 
     note that the Senate Armed Services Committee and the House 
     National Security Committee intend to review the status of 
     the U.S.-PRC security dialogue on a regular basis to 
     determine the extent to which the dialogue has produced 
     tangible results in the areas of human rights, transparency 
     in military spending and doctrine, missile and nuclear 
     nonproliferation, and other important security issues.


                   legislative provision not adopted

     Placement of United States forces under United Nations 
         operational or tactical control
       The House bill contained a provision (sec. 1201) that would 
     limit the use of Department of Defense funds and the 
     circumstances under which the President could commit U.S. 
     armed forces to United Nations (UN) command and control, and 
     provide exceptions under which armed forces could be placed 
     under UN command and control. The President would be required 
     to certify to the Congress, prior to the placement of U.S. 
     armed forces under UN command and control, the following: 
     that U.S. national security interests require the placement 
     of Armed Forces under UN command and control; that U.S. armed 
     forces commander would retain the right to report 
     independently to U.S. military authorities and decline orders 
     that are illegal, militarily imprudent, or beyond the scope 
     of the mission; that U.S. forces would remain under U.S. 
     administrative command; and that U.S. forces involved would 
     retain the authority to withdraw and take necessary 
     protective actions, if engaged by hostile forces. 
     
[[Page H677]]

       The Senate amendment contained a provision (sec. 1061) that 
     would express the sense of Congress that: U.S. armed forces 
     should not be placed under the operational control of the UN 
     without close and prior consultation with Congress; U.S. 
     armed forces should only be placed under UN command and 
     control when clearly in the national interest; U.S. armed 
     forces should only be placed under qualified commanders with 
     clear and effective command and control; and that U.S. armed 
     forces should only be placed under operational control of 
     foreign commanders in peace enforcement missions, except in 
     the most extraordinary circumstances.
       The conference agreement did not include either provision.
       The conferees remain gravely concerned over the 
     administration's stated willingness, as articulated by 
     Presidential Decision Directive 25, to place U.S. forces 
     under UN operational control during peacekeeping operations. 
     The conferees are pleased to note that the peacekeeping 
     deployment to Bosnia does not involve such an arrangement. 
     The conferees strongly urge the Secretary of Defense to 
     ensure that clearly defined and effective command and control 
     relationships are maintained for U.S. forces participating in 
     this deployment.

                    Title XIV--Arms Control Matters


                         LEGISLATIVE PROVISIONS

                     legislative provisions adopted

     Revision of definition of landmine for purposes of landmine 
         export moratorium (sec. 1401)
       The House bill contained a provision (sec. 1221) that would 
     amend the definition of ``anti-personnel landmine'', 
     contained in section 1423(d)(3) of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160), 
     by deleting ``remote controlled, manually-emplaced munitions 
     or devices''.
       The Senate amendment contained a provision (sec. 1054) that 
     would include a subsection to redefine the definition of an 
     antipersonnel landmine.
       The conferees agree to an amendment that would amend 
     section 1423(d) of the National Defense Authorization Act for 
     Fiscal Year 1994 (Public Law 103-160), to redefine an 
     antipersonnel landmine to exclude command detonated anti-
     personnel landmines, such as M18A1 ``Claymore'' mines, from 
     the definition.
     Reports on moratorium on use by Armed Forces of antipersonnel 
         landmines (sec. 1402)
       The Senate amendment contained a provision (sec. 1099) that 
     would express the sense of Congress that the President should 
     actively support proposals to modify protocol II on landmines 
     in the 1980 Conventional Weapons Convention at the United 
     Nations Conference, to immediately implement the United 
     States goal of eventual elimination of antipersonnel 
     landmines, and place a one year moratorium on the use of 
     antipersonnel landmines by the United States military, except 
     along internationally recognized borders and demilitarized 
     zones. Consistent with the provision, the President should 
     also encourage governments of other nations to implement a 
     moratorium on the use of antipersonnel landmines.
       The House bill did not contain a similar provision.
       The House recedes with amendment.
       The conferees agree to a provision that would require the 
     Chairman of the Joint Chiefs of Staff to provide an annual 
     report to Congress on the projected effects of a moratorium 
     on the defensive use of antipersonnel landmines and antitank 
     mines by the United States military forces.
     Extension and amendment of counterproliferation authorities 
         (sec. 1403)
       The House bill contained a provision (sec. 1222) that would 
     extend, through fiscal year 1996, the authorities in section 
     1505 of title XV of the National Defense Authorization Act 
     for Fiscal Year 1993 (Public Law 102-484). The provision 
     would authorize the Department of Defense to provide up to 
     $15.0 million to support international nonproliferation 
     activities, such as, the United Nations Special Commission on 
     Iraq (UNSCOM). Authority for the Secretary of Defense to 
     provide assistance under this section would terminate at the 
     end of fiscal year 1996.
       The Senate bill contained no similar provision.
       The Senate recedes.
       The conferees understand that the extension of authority in 
     fiscal year 1996 for the Department of Defense support of 
     international nonproliferation activities would be used 
     primarily to support the United Nations Special Commission on 
     Iraq (UNSCOM). The conferees do not intend to provide the 
     Department of Defense with authority to use defense funds to 
     support chemical weapons and ballistic missile dismantlement, 
     nuclear materials control and removal, or to destroy weapons 
     of mass destruction and their delivery systems in foreign 
     countries, such as Brazil, South Africa, or countries in 
     Africa or the Middle East generally. These disarmament 
     activities are more appropriately funded from the 
     international affairs budget. Authorities for dismantlement 
     of weapons of mass destruction in the former Soviet Union are 
     provided elsewhere in this Act.
       In accordance with the conference report to accompany the 
     National Defense Authorization Act for Fiscal Year 1994, the 
     conferees direct the Secretary of Defense to provide to the 
     congressional defense committees, 30 days in advance of any 
     U.S. commitment to support international nonproliferation 
     activities, a report on the international nonproliferation 
     activities which the Department seeks to support. The report 
     should identify potential future funding for this support, 
     the extent to which the United States is obligated to provide 
     such support, the extent to which funds are provided for in 
     the international affairs budget, and the national security 
     objective for providing the support.
     Limitation on retirement or dismantlement of strategic 
         nuclear delivery systems (sec. 1404)
       The Senate amendment contained a provision (sec. 1082) that 
     would express the sense of Congress that until the START II 
     Treaty enters into force, the Secretary of Defense should not 
     retire or dismantle any B-52H bombers, Trident ballistic 
     missile submarines, Minuteman III intercontinental ballistic 
     missiles (ICBMs), or Peacekeeper ICBMs. The provision would 
     also prohibit the use of funds appropriated to the Department 
     of Defense during fiscal year 1996 for retiring or 
     dismantling any such systems.
       The House bill contained a similar provision (sec. 1229) 
     that would express the sense of Congress that the Secretary 
     of Defense should not implement any reduction in strategic 
     forces that is called for in the START II Treaty unless and 
     until that treaty enters into force.
       The House recedes.
       The conferees reiterate the importance of not having the 
     United States unilaterally and prematurely begin to implement 
     reductions under the START II Treaty. Until it is clear that 
     the treaty will actually enter into force, the United States 
     must retain options for maintaining a larger force of 
     strategic nuclear delivery systems, to include 500 Minuteman 
     III ICBMs, 50 Peacekeeper ICBM's 18 Trident II ballistic 
     missile submarines, and 94 B-52H bombers. The conferees 
     believe that by retaining such options, the United States 
     increases Russia's incentives to ratify and fully implement 
     the START II Treaty.
       Additionally, the conferees believe that it is prudent to 
     delay, beyond fiscal year 1996, the decision to retire or 
     dismantle 28 B-52H bombers, as currently planned by the 
     Department of Defense. At the same time, the conferees do not 
     believe that the Air Force should take any action that 
     prejudge a decision in fiscal year 1997 to retire or 
     dismantle those 28 B-52H bombers. Therefore, the conferees 
     direct the Secretary of Defense to retain 94 B-52H bombers 
     during fiscal year 1996, while minimizing additional 
     expenditures on the 28 aircraft that may be retired in the 
     near future.
       The conferees understood that the Air Force would require 
     $17.4 million in procurement funds, $45.3 million in 
     operations and maintenance funds, and $4.3 million in 
     military personnel funds to retain the 28 B-52H bombers in a 
     fully operational status and to provide them with system 
     updates and modifications. The conferees believe that with 
     system updates and modifications. The conferees believe that 
     this level of funding may not be required merely to preserve 
     the option of retaining the 28 aircraft for one more year. In 
     particular, it may not be necessary to expand procurement 
     funds on aircraft that may be retired in fiscal year 1997. 
     Therefore, the conferees agree to authorize the use of up to 
     $17.4 million in Air Force procurement funds, up to $45.3 
     million in Air Force operations and maintenance funds, and up 
     to $4.3 million in Air Force personnel funds to retain in an 
     attrition reserve status the 28 B-52H bombers that would 
     otherwise be retired in fiscal year 1996.
     Congressional findings and Sense of Congress concerning 
         treaty violations (sec. 1405)
       The House bill contained a provision (sec. 1227) that would 
     express a sense of Congress that the government of the former 
     Soviet Union intentionally violated its legal obligation 
     under the 1972 Anti-Ballistic Missile Treaty in order to 
     advance its national security interests, and that the United 
     States should remain vigilant to ensure compliance with arms 
     control obligations.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     outline the legislative history behind the provision.
     Sense of Congress on ratification of the Chemical Weapons 
         Convention and the Strategic Arms Reduction Talks (sec. 
         1406)
       The House bill contained a provision (sec. 1230) that would 
     express the sense of Congress that the United States should 
     ratify the Chemical Weapons Convention (CWC) as a signal of 
     its commitment to reduce the threat posed by chemical 
     weapons.
       The Senate amendment contained a provision (sec. 1099F) 
     that would express the sense of Congress that it is in the 
     national security interests of the United States and Russia, 
     as signatories of the Strategic Arms Reduction Talks (START 
     II), and the United States and all parties to the Chemical 
     Weapons Convention (CWC), to ratify and fully implement the 
     agreements, as negotiated.
       The conferees agree to a provision that would express the 
     sense of Congress that it is in the national security 
     interests of the United States, that the United States and 
     Russia, as parties to START II and the CWC, and all other 
     signatories to the CWC, to ratify and fully implement these 
     arms control agreements, as negotiated.
       The conferees note that a full Senate debate on the 
     ratification of START and the CWC treaties has not taken 
     place. It is not the intention of the Congress, through this 
     provision, to predetermine the outcome of the Senate debate 
     on the advice and consent to ratification of the two arms 
     control treaties.
     
[[Page H678]]

     Implementation of arms control agreements (sec. 1407)
       The budget request included $261.9 million in procurement, 
     operation and maintenance, and research and development in 
     the defense and military service accounts for the 
     implementation of arms control agreements.
       The Senate amendment contained a provision (sec. 1060) that 
     would authorize $228.9 million for implementing arms control 
     agreements, a $33.0 million reduction to the budget request. 
     The provision would also prohibit the use of defense funds to 
     reimburse expenses of signatories to arms control treaties, 
     other than the United States, pursuant to treaties or 
     agreements with the United States that have entered into 
     force, if the Congress has not received 30-day notice prior 
     to agreement between the parties.
       The House bill did not contain a similar provision, but 
     would provide $261.9 million for implementation of arms 
     control agreements.
       The House recedes with an amendment that would make 
     available up to $239.9 million for implementing arms control 
     agreements, a $22.0 million reduction to the budget request. 
     The reductions are reflected in the following table. The 
     conferees endorse the views stated in the Senate report (S. 
     Rept. 104-112), that reiterate the concern expressed in the 
     conference report accompanying the National Defense 
     Authorization Act for Fiscal Year 1994 (H. Rept. 103-357). 
     That conference report required the Congress to be notified 
     30 days in advance of a U.S. agreement to accept the 
     recommendations of any consultative commissions that result 
     in either technical changes to a treaty or agreement 
     affecting inspections and monitoring provisions, or that 
     result in increased U.S. implementation costs.
       The conferees limit the expenditure of funds to provide 
     reimbursement for arms control implementation inspections 
     costs borne by the inspected party to a treaty or agreement. 
     Funds may only be expended if the Congress has been notified 
     30 days in advance of an agreement by the President to a 
     policy or policy agreement, and that policy or policy 
     agreement does not modify any obligation imposed by the arms 
     control agreement.
       The provision would not prohibit the use of funds to 
     implement two policy agreements under the Intermediate-Range 
     Nuclear Forces (INF) Treaty and strategic Arms Reductions 
     Treaty (START), concluded in May 1994 and February 1995. The 
     conferees understand that the Department of Defense agreed to 
     reimburse Belarus, Kazakhstan, and Ukraine for the costs of 
     U.S. inspections conducted within those territories for each 
     six-month period, expenses for which those countries are 
     obligated under the treaties, if Belarus, Kazakhstan, and 
     Ukraine do not conduct inspections in the United States. 
     Further, the conferees understand that if Belarus, 
     Kazakhstan, or Ukraine conduct an inspection of a U.S. 
     facility, the U.S. will not provide reimbursement during the 
     applicable six-month time period.
       The Intermediate Range Nuclear Forces Treaty and Strategic 
     Arms Reduction Treaty permit the United States to conduct 
     inspections to verify compliance with the treaties within the 
     territories of Belarus, Kazakhstan, and Ukraine. The 
     conferees are concerned about assertions by the 
     administration that failure to reimburse Belarus, Kazakhstan, 
     and Ukraine would prevent the United States from conducting 
     INF and START inspections in these countries in the future. 
     The Senate provided its advice and consent to ratification of 
     INF and START based on the ability of the United States to 
     fully exercise its inspection rights.
       In a September 21, 1994 letter from the Secretary of 
     Defense to Congress, the Secretary emphasized that the policy 
     statements exchanged between the United States and the three 
     Parties expressed ``. . . strictly a policy understanding.'' 
     He also stated ``that they are not legally binding'' and that 
     no treaty provisions would be changed. Further, the Secretary 
     stated ``[T]he Administration would not consider this to be a 
     precedent for any other area of START implementation.''
       The conferees express their continuing concern that arms 
     control consultative commissions are being used to facilitate 
     changes or modifications to arms control treaties and 
     agreements that should be brought to the Senate for its 
     review and subsequent advice and consent. There may be very 
     good reasons for changes in implementation of specific arms 
     control treaties or agreements. However, if a change or 
     modification to the treaty or agreement would result in a 
     change to the understanding under which the Senate provided 
     its advice and consent to ratification, the Congress must be 
     consulted about the recommended change or modification in 
     advance of any agreement in the consultative commissions, and 
     must provide its subsequent agreement to the change or 
     modification.

                               FISCAL YEAR 1996 ARMS CONTROL IMPLEMENTATION BUDGET                              
----------------------------------------------------------------------------------------------------------------
                   Account                                  Program               Request     Recomm    Rec Auth
----------------------------------------------------------------------------------------------------------------
WPN..........................................  Arms control compliance.........     14.800      0.000     14.800
OPAF.........................................  Spares & repairs................      0.467      0.000      0.467
PDA..........................................  OSIA............................      2.941      0.000      2.941
RDT&E, AF....................................  Arms control implementation.....      0.998      0.000      0.998
RDT&E, DA....................................  Ver tech dem, DNA (603711)......     33.971      0.000     33.971
O&M, Army....................................  ................................     40.778     -6.000     34.778
O&M, Navy....................................  ................................     35.354     -2.000     33.354
O&M, AF......................................  ................................     34.645     -2.000     32.645
O&M, DA......................................  OSIA............................     97.987    -12.000     85.987
                                                                                --------------------------------
    Total....................................  ................................    261.941    -22.000    239.941
----------------------------------------------------------------------------------------------------------------

     Iran and Iraq arms nonproliferation (sec. 1408)
       The Senate amendment included a provision (sec. 1063) that 
     would amend sections 1604(a) and 1605(a) of Title XVI of the 
     National Defense Authorization Act for Fiscal Year 1993 
     (Public Law 102-484), to apply sanctions and controls to 
     persons or countries who transfer or retransfer goods or 
     technology that would contribute to the Iran or Iraq efforts 
     to acquire chemical, biological, or nuclear weapons, in 
     addition to sanctions and controls on the acquisition of 
     destabilizing advanced conventional weapons. The provision 
     would also amend section 1608(7) to clarify the meaning of 
     ``United States assistance'' to conform to the definition of 
     such term in the Foreign Assistance Act of 1961 (section 2151 
     et seq. of Title 10, United States Code).
       The House bill did not contain a similar provision.
       The House recedes with an amendment.
       The conferees also agree to an amendment to section 
     73(e)(2) of the Arms Export Control Act (section 2797b(e)(2) 
     of title 22, United States Code) that would require that the 
     notification of certain waivers under the Missile Technology 
     Control Regime procedures be submitted to the congressional 
     defense committees and the congressional foreign relations 
     committees, not less than 45 working days before issuance of 
     the waiver.

              Title XV--Technical and Clerical Amendments


                         legislative provisions

                     legislative provisions adopted

     Technical and clerical amendments (sec. 1501-1506)
       The Senate amendment contained eight sections (secs. 1101 
     through 1108) that made numerous technical and clerical 
     amendments to existing laws.
       The House bill contained no similar provision.
       The House recedes.

Title XVI--Corporation for the Promotion of Rifle Practice and Firearms 
                                 Safety


                         legislative provisions

                     legislative provisions adopted

     Corporation for the Promotion of Rifle Practice and Firearms 
         Safety (secs. 1601-1624)
       The House bill contained a provision (sec. 384) that would 
     convert the Civilian Marksmanship Program (CMP) to a 
     federally chartered nonprofit corporation.
       The Senate amendment contained a similar provision (sec. 
     385) that would convert the CMP to a nonappropriated fund 
     instrumentality.
       The Senate recedes with an amendment that would convert the 
     CMP to a private, nonprofit corporation. The provision would 
     require the Secretary of the Army to provide for the 
     transition of the CMP from an appropriated fund activity of 
     the Department of Defense to a viable nonprofit corporation.
       The conferees recognize the value of the CMP, and believe 
     the program should continue as a non-federal government 
     entity.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS


                                overview

       The budget request for fiscal year 1996 included 
     $10,697,955,000 for military construction and family housing.
       The House bill would authorize $11,197,995,000 for military 
     construction and family housing.
       The Senate amendment would provide $10,902,988,000 for this 
     purpose.
       The conferees recommend authorization of appropriations of 
     $11,177,009,000 for military construction and family housing, 
     including general reductions and termination of prior year 
     projects.
       The conferees are deeply concerned about the current 
     quality of facilities at military installations and the 
     condition of the housing stock for military families and 
     unaccompanied personnel. The conferees are concerned about 
     the possible long-term deleterious effects of deteriorating 
     military infrastructure and military housing on the readiness 
     of the armed forces and the retention of personnel. The 
     conferees are especially concerned about the backlog of 
     construction, repair, and maintenance required to resolve 
     serious problems affecting the quality of life for personnel 
     and their families. The increases in funding recommended by 
     the conferees is targeted at enhancing quality of life 
     programs, particularly housing and needed operational 
     requirements for the military services.
       The conferees are pleased with the attention the Secretary 
     of Defense has devoted to improving family housing, housing 
     for unaccompanied personnel, and other quality of life 
     improvements. The conferees note the Secretary's proposal to 
     establish new authorities for alternative means to construct 
     or improve military housing. The conferees have worked 
     closely with the Secretary in the development of the proposal 
     and have agreed to include these authorities in this Act.
       The conferees have also included a provision to expand the 
     authority previously granted to the Department of the Navy to 
     enter into limited partnerships with the private sector to 
     acquire family housing. The conferees note the efforts of the 
     Navy to utilize existing authority to provide critically 
     needed housing in Corpus Christi, Texas and Everett, 
     Washington. The conferees understand that agreements to 
     provide housing in 

[[Page H679]]
     those two locations may be ready for contract execution in fiscal year 
     1996.
       In addition to these new initiatives, the conferees also 
     support a pilot program that provides qualified junior 
     enlisted and junior officer personnel with greater access to 
     private home ownership opportunities through an interest rate 
     buydown program managed by the Department of Veterans' 
     Affairs. The conferees encourage the Secretary of Defense to 
     promote this program and to continue exploring creative ways 
     to stimulate interest in and availability of home ownership 
     among servicemembers.
       The conferees recognize that these authorities have the 
     long-term potential to produce critically needed housing for 
     the armed forces. To rectify immediate problems, the 
     conferees recommend $417,169,000 above the Administration's 
     budget request for family housing, unaccompanied personnel 
     housing, child development centers, health care facilities, 
     and other projects to enhance the quality of life for 
     currently serving personnel.

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                            Title XXI--Army


                            fiscal year 1996

     Overview
       The House bill would authorize $2,167,190,000 for Army 
     military construction and family housing programs for fiscal 
     year 1996.
       The Senate amendment would authorize $2,027,613,000 for 
     this purpose.
       The conferees recommend authorization of $2,147,427,000 for 
     Army military construction and family housing for fiscal year 
     1996.
       The conferees agree to a general reduction of $6,385,000 in 
     the authorization of appropriations for the Army military 
     construction account. The general reduction is to be offset 
     by savings from favorable bids, reduction in overhead costs, 
     and cancellation of projects due to force structure changes. 
     The general reduction shall not cancel any military 
     construction authorized by title XXI of this Act.
     Planning and design, Army
       The conferees direct that, within authorized amounts for 
     planning and design, the Secretary of the Army conduct 
     planning and design activities for the following project:
       Pohakuloa Training Site, Hawaii, Road Improvement--
     $2,000,000.
       The conferees note that this project is required to correct 
     hazardous road conditions which impact readiness. The 
     conferees urge the Secretary to make every effort to include 
     this project in the fiscal year 1997 budget request.
     Aerial Port and Intermediate Staging Base, The National 
         Training Center, Fort Irwin, California
       The budget request included no military construction funds 
     to expand the airport at Barstow-Daggett, California, to meet 
     the operational and training requirements of the National 
     Training Center, Fort Irwin, California.
       The House bill would authorize $10.0 million for phase II 
     of the Barstow-Daggett expansion project.
       The Senate amendment included no funding for phase II of 
     this project.
       The conferees agree to authorize $10.0 million for phase II 
     of the Barstow-Daggett expansion project, contingent upon the 
     Secretary of Defense's certification that the project best 
     meets the operational and training requirements of the 
     National Training Center, Fort Irwin, California.


                         legislative provisions

                     legislative provisions adopted

     Improvements to military family housing units (sec. 2103)
       The conferees direct that, within authorized amounts for 
     construction improvements of military family housing and 
     facilities, the Secretary of the Army execute the following 
     projects:
       Fort Wainwright, Alaska, Whole Neighborhood 
     Revitalization--$7,300,000.
       Fort Campbell, Kentucky, Whole Neighborhood 
     Revitalization--$17,356,000.
       Fort Bragg, North Carolina, Whole Neighborhood 
     Revitalization--$10,000,000.


                   legislative provisions not adopted

     Reduction in amounts authorized to be appropriated for fiscal 
         year 1992 military construction projects
       The Senate amendment contained a provision (sec. 2105) that 
     would rescind $6.25 million from the amount authorized for 
     the Department of the Army in section 2105 of the National 
     Defense Authorization Act for Fiscal Year 1992 (Public Law 
     102-190).
       The House bill amendment contained no similar provision.
       The Senate recedes.

                            Title XXII--Navy


                            fiscal year 1996

     Overview
       The House bill would authorize $2,164,861,000 for Navy 
     military construction and family housing programs for fiscal 
     year 1996.
       The Senate amendment would authorize $2,077,459,000 for 
     this purpose.
       The conferees recommend authorization of $2,119,317,000 for 
     Navy military construction and family housing for fiscal year 
     1996.
       The conferees agree to a general reduction of $6,385,000 in 
     the authorization of appropriations for the Navy military 
     construction account. The general reduction is to be offset 
     by savings from favorable bids, reduction in overhead costs, 
     and cancellation of projects due to force structure changes. 
     The general reduction shall not cancel and military 
     construction authorized by title XXII of this Act.
     Planning and design, Navy
       The conferees direct that, within authorized amounts for 
     planning and design, the Secretary of the Navy conduct 
     planning and design activities for the following projects:
       Naval Station, Mayport, Florida, Wharf Improvements--
     $2,340,000.
       Naval Air Station, Fallon, Nevada, Galley--$50,000.
       Naval Air Station, Fallon, Nevada, Child Development 
     Center--$150,000.
       The conferees note that the projects at Naval Air Station, 
     Fallon, Nevada, are necessary to correct facility 
     deficiencies which impact readiness, quality of life, and 
     productivity. The conferees urge the Secretary to make every 
     effort to include these projects in the fiscal year 1997 
     budget request.
     Improvements to military family housing units (sec. 2203)
       The conferees direct that, within authorized amounts for 
     construction improvements of military family housing and 
     facilities, the Secretary of the Navy execute the following 
     projects:
       Naval Station, Mayport, Florida, Whole House 
     Revitalization--$7,300,000.
       Public Works Center, Great Lakes, Illinois, Whole House 
     Revitalization--$15,300,000.
       Naval Education Training Command, Newport, Rhode Island, 
     Whole House Improvements--$8,795,000.
       Marine Corps Air Station, Beaufort, South Carolina, Whole 
     House Rehabilitation--$6,784,000.
       Naval Submarine Base, Bangor, Washington, Construction 
     Improvements--$4,890,000.


                         legislative provisions

                     legislative provisions adopted

     Revision of fiscal year 1995 authorization of appropriations 
         to clarify availability of funds for large anechoic 
         chamber, Patuxent River Naval Warfare Center, Maryland 
         (sec. 2205)
       The Senate amendment contained a provision (sec. 2205) that 
     would amend section 2204 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-307) 
     to authorize the $10.0 million appropriated for the Large 
     Anechoic Chamber Facility at the Naval Air Warfare Center, 
     Patuxent River, Maryland in the Military Construction 
     Appropriations Act for Fiscal Year 1995 (Public Law 103-307).
       The Senate provision would permit the Navy to proceed with 
     the award of a contract in the amount of $30.0 million for 
     the first phase of the $61.0 million project.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Authority to carry out land acquisition project, Hampton 
         Roads, Virginia (sec. 2206)
       The Senate amendment contained a provision (sec. 2206) that 
     would amend section 2201(a) of the National Defense 
     Authorization Act for Fiscal Year 1993 to authorize the 
     Secretary of the Navy to acquire 191 acres of land in Hampton 
     Roads, Virginia. This acquisition is in addition to the land 
     acquisition at Dam Neck, Virginia, authorized in the National 
     Defense Authorization Act for Fiscal Year 1993.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees direct the Secretary of Navy to make every 
     possible attempt to acquire both parcels of land using the 
     $4.5 million previously authorized. If additional funds are 
     required, the conferees expect the Secretary to utilize cost 
     variation and reprogramming procedures.
     Acquisition of land, Henderson Hall, Arlington, Virginia 
         (sec. 2207)
       The Senate amendment contained a provision (sec. 2207) that 
     would authorize the Secretary of the Navy to acquire a 0.75 
     acre parcel of land located at Henderson Hall, Arlington, 
     Virginia. The parcel, which is currently occupied by an 
     abandoned and vandalized mausoleum, is required to construct 
     a public works complex to support the Headquarters Battalion, 
     United States Marine Corps. The provision would authorize the 
     demolition of the mausoleum and the use of appropriated funds 
     to remove and provide appropriate disposal of the remains 
     abandoned in the mausoleum.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Acquisition or construction of military family housing in the 
         vicinity of San Diego, California (sec. 2208)
       The conferees include a new section that would direct the 
     Secretary of the Treasury to make available, upon request 
     from the Secretary of the Navy, funds paid to the United 
     States upon final settlement in the case of Rossmoor 
     Liquidating Trust, initiated against the United States, in 
     the United States District Court for the Central District of 
     California. From those funds, the Secretary of the Navy would 
     be authorized to acquire or construct no more than 150 
     military family housing units in the San Diego, California 
     region for the Department of the Navy. The authority would be 
     subject to the expiration of a 21-day period, beginning on 
     the day on which the Secretary transmits to the congressional 
     defense committees a report containing the details of the 
     contract to acquire or construct the units authorized by this 
     section.

                         Title XXIII--Air Force


                            fiscal year 1996

     Overview
       The House bill would authorize $1,727,557,000 for Air Force 
     military construction and family housing programs for fiscal 
     year 1996.
       The Senate amendment would authorize $1,724,699,000 for 
     this purpose.
       The conferees recommend authorization of $1,735,086,000 for 
     Air Force military construction and family housing for fiscal 
     year 1996.
       The conferees agree to a general reduction of $6,385,000 in 
     the authorization of appropriations for the Air Force 
     military construction account. The general reduction is to be 
     offset by savings from favorable bids, reduction in overhead 
     costs, and cancellation of projects due to force structure 
     changes. The general reduction shall not cancel any military 
     construction authorized by title XXIII of this Act.
     Improvements to military family housing units (sec. 2303)
       The conferees direct that, within authorized amounts for 
     construction improvements 

[[Page H698]]
     of military family housing and facilities, the Secretary of the Air 
     Force execute the following project:

Wright-Patterson Air Force Base, Ohio, Family Housing Improve$5,900,000


                       items of special interest

     Bonaire housing complex, Presque Isle, Maine
       The conferees are aware of the economic impact and the 
     difficult redevelopment effort facing Limestone, Maine, as a 
     result of the closure of Loring Air Force Base. To ensure 
     that the community has maximum flexibility in its 
     redevelopment effort, the conferees direct the Secretary of 
     the Air Force to obtain written concurrence of the designated 
     local reuse authority, or its designee, before any land, 
     tangible property or interest in the Air Force property known 
     as the Bonaire housing complex in Presque Isle, Maine, is 
     transferred to the Department of Interior, or to any other 
     entity. The conferees believe that a cooperative effort 
     should be maintained by all parties seeking property and that 
     the designated local redevelopment authority is the most 
     appropriate entity to coordinate reuse efforts.


                         legislative provisions

                     legislative provisions adopted

     Retention of accrued interest on funds deposited for 
         construction of family housing, Scott Air Force Base, 
         Illinois (sec. 2305)
       The House bill contained a provision (sec. 2305) that would 
     amend section 2310 of the Military Construction Authorization 
     Act for Fiscal Year 1994 (Division B of Public Law 103-160) 
     to permit the retention of accrued interest on funds 
     previously transferred to the County of St. Clair, Illinois, 
     for the purpose of constructing military family housing at 
     Scott Air Force Base. Upon completion of construction all 
     funds remaining, and any interest accrued thereon, shall be 
     deposited in the general fund of the United States Treasury.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Air Force to submit to congressional defense 
     committees an annual report describing the amount of interest 
     accrued and retained by the County for the housing project. 
     The Secretary would be required to submit the report by March 
     1 of each year, until the construction project is completed.


                   legislative provisions not adopted

     Reduction in amounts authorized to be appropriated for fiscal 
         year 1992 military construction projects
       The Senate amendment contained a provision (sec. 2305) that 
     would rescind $16.0 million from the amount authorized for 
     the Department of the Air Force in section 2305 of the 
     National Defense Authorization Act for Fiscal Year 1992 
     (Public Law 102-190).
       The House bill contained no similar provision.
       The Senate recedes.

                      Title XXIV--Defense Agencies


                            fiscal year 1996

     Overview
       The House bill would authorize $4,692,463,000 for Defense 
     Agencies military construction and family housing programs 
     for fiscal year 1996.
       The Senate amendment would authorize $4,456,883,000 for 
     this purpose.
       The conferees recommend authorization of $4,629,491,000 for 
     Air Force military construction and family housing for fiscal 
     year 1996.


                         legislative provisions

                     legislative provisions adopted

     Military family housing private investment (sec. 2402)
       The House bill contained a provision (sec. 2402) that would 
     authorize the Secretary of Defense to enter into agreements 
     to construct, acquire, and improve family housing, for the 
     purpose of encouraging private investment, in the amount of 
     $22,000,000.
       The Senate amendment contained a similar provision.
       The House recedes.
     Energy conservation projects (sec. 2404)
       The House bill contained a provision (sec. 2404) that would 
     authorize the Secretary of Defense to carry out energy 
     conservation projects using funds authorized pursuant to the 
     authorization of appropriations in section 2405.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Limitations on use of Department of Defense Base Closure 
         Account 1990 (sec. 2406)
       The conferees include a new section that would prohibit the 
     obligation of funds authorized for appropriation in section 
     2405 (a)(10) of this Act, to carry out a construction project 
     with respect to military installations approved for closure 
     or realignment in 1995, until after the date the Secretary of 
     Defense submits to Congress a five-year program for executing 
     the 1995 base realignment and closure plan. The limitation 
     would not preclude any activities associated with 
     environmental cleanup activities or planning and design for 
     such construction projects.
     Modification of authority to carry out fiscal year 1995 
         projects (sec. 2407)
       The House bill contained a provision (sec. 2406) that would 
     amend the table in section 2401 of the Military Construction 
     Authorization Act for Fiscal Year 1995 (Division B of Public 
     Law 103-337) to provide for full authorization of projects to 
     support chemical weapons and munitions destruction at Pine 
     Bluff Arsenal, Arkansas and Umatilla Army Depot, Oregon.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Reduction in amounts authorized to be appropriated for fiscal 
         year 1994 contingency construction projects (sec. 2408)
       The Senate amendment contained a provision (sec. 2407) that 
     would terminate authorization of appropriations for prior 
     year projects including:
       (1) $3.2 million from the amount authorized for the 
     Department of Defense in section 2405(a) of the Military 
     Construction Authorization Act for Fiscal Year 1991 (Division 
     B of Public Law 101-510);
       (2) $6.8 million from the amount authorized for the 
     Department of Defense in section 2404(a) of the Military 
     Construction Authorization Act for Fiscal Year 1992 (Division 
     B of Public Law 102-190); and
       (3) $8.6 million from the amount authorized for the 
     Department of Defense in section 2403(a) of the Military 
     Construction Authorization Act for Fiscal Year 1993 (Division 
     B of Public Law 102-484).
       The House bill contained no similar provision.
       The House recedes with an amendment that would reduce $8.1 
     million from the amount authorized to be appropriated for the 
     Department of Defense in section 2403(a) of the Military 
     Construction Authorization Act for Fiscal Year 1994 (Division 
     B of Public Law 103-160).


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Limitation of expenditures for a construction project at 
         Umatilla Army Depot, Oregon
       The House bill contained a provision (sec. 2407) that would 
     prohibit the expenditure of funds prior to March 1, 1996, for 
     the construction of a chemical weapons and munitions 
     incinerator facility at Umatilla Army Depot, Oregon.
       The Senate amendment contained no similar provision.
       The House recedes.

     Title XXV--North Atlantic Treaty Organizations Infrastructure


                            fiscal year 1996

     Overview
       The House bill would authorize $161,000,000 for the U.S. 
     contribution to the NATO Infrastructure program for fiscal 
     year 1996.
       The Senate amendment would authorize $179,000,000 for this 
     purpose.
       The conferees authorize $161,000,000 for the U.S. 
     contribution to the NATO Infrastructure program.


                         legislative provisions

                     legislative provisions adopted

     Authorization of appropriations, NATO (sec. 2502)
       The House bill contained a provision (sec. 2502) that would 
     authorize funding for the North Atlantic Treaty Organization 
     Infrastructure program in the amount of $161.0 million.
       The Senate amendment contained a provision (sec. 2502) that 
     would authorize funding for the North Atlantic Treaty 
     Organization Infrastructure program in the amount of $179.0 
     million.
       The Senate recedes.

            Title XXVI--Guard and Reserve Forces Facilities


                            fiscal year 1996

     Overview
       The House bill would authorize $284,924,000 for military 
     construction and land acquisition for fiscal year 1996 for 
     the National Guard and reserve components.
       The Senate amendment would authorize $432,339,000 for this 
     purpose.
       The conferees recommend authorization of $436,522,000 for 
     military construction and land acquisition for fiscal year 
     1996. This authorization would be distributed as follows:

  Army National Guard......................................$134,802,000
  Army Reserve...............................................73,516,000
  Naval/Marine Corps Reserve.................................19,055,000
  Air National Guard........................................170,917,000
  Air Force Reserve..........................................36,232,000

     Planning and design, Guard and Reserve Forces
       The conferees direct that, within authorized amounts for 
     planning and design, the Guard and Reserve Forces conduct 
     planning and design activities for the following projects:

Army Reserve:
  Fort Dix, New Jersey, Intelligence Training Center...........$788,000
Army National Guard:
  Lincoln, Nebraska, Medical Training Facility.................$200,000
  Fort Dix, New Jersey, Technical Training Facility............$750,000
  Billings, Montana, Armed Forces Reserve Center.............$1,200,000
Air National Guard:
  Robins Air Force Base, Georgia, B-1 Site and Utility Upgrades$270,000
  Hickam Air Force Base, Hawaii, Squadron Operations Facility..$790,000


[[Page H699]]

       The conferees note that these projects are required to 
     accommodate new missions and to correct facility deficiencies 
     that impact readiness, quality of life, and productivity. The 
     conferees urge the service secretaries to make every effort 
     to include these projects in the fiscal year 1997 budget 
     request.


                         legislative provisions

                     legislative provisions adopted

     Reduction in amount authorized to be appropriated for fiscal 
         year 1994 Air National Guard Projects (sec. 2602)
       The Senate amendment contained a provision (sec. 2602) that 
     would rescind funds authorized for appropriation by the 
     National Defense Authorization Act for Fiscal Year 1994 
     (Public Law 103-160) for land acquisition for the Idaho 
     Training Range.
       The House bill contained no similar provision.
       The House recedes.
     Correction in authorized uses of funds for Army National 
         Guard projects in Mississippi (sec. 2603)
       The House bill contained a provision (sec. 2602) that would 
     clarify amounts authorized to be appropriated in section 
     2601(1)(A) of the Military Construction Authorization Act for 
     Fiscal Year 1994 (Division B of Public Law 103-360) for the 
     addition or alteration of Army National Guard Armories at 
     various locations in the State of Mississippi. The House 
     provision would direct the use of authorized funds for the 
     addition, alteration, or new construction of armory 
     facilities and an operations and maintenance shop, including 
     the acquisition of land for such facilities at such 
     locations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of the Army to submit a report to congressional 
     defense committees that would describe the intended use of 
     funds and to wait 21 days before any of the funds could be 
     obligated.

                    Title XXVIII--General Provisions


                       ITEMS OF SPECIAL INTEREST

     Damage to facilities from Hurricane Opal
       The conferees note that, on October 5, 1995, military 
     facilities in the Southeastern United States sustained damage 
     as a direct result of Hurricane Opal. The conferees direct 
     the Secretary of Defense to conduct a comprehensive 
     assessment of infrastructure and facilities at installations 
     affected by Hurricane Opal, to include: Fort Benning and Fort 
     McPherson in Georgia; Fort Rucker, Fort McClellan, and 
     Anniston Army Depot in Alabama; Tyndall Air Force Base, Eglin 
     Air Force Base, and Hulbert Field and facilities in and 
     around Naval Air Station, Pensacola, Florida. The Secretary 
     shall submit a report on the Department's findings to the 
     congressional defense committees, no later than February 15, 
     1996.
       The assessment should include:
       (1) a report on all property damage;
       (2) the estimated cost to repair or replace damaged or 
     destroyed facilities;
       (3) the impact on operations and readiness caused by any 
     loss of facilities;
       (4) any actions taken to repair or replace damaged or 
     destroyed facilities; and
       (5) recommendations for funding the required facility 
     repairs or replacements.


                         LEGISLATIVE PROVISIONS

                     LEGISLATIVE PROVISIONS ADOPTED

         Subtitle A--Military Housing Privatization Initiative

     Alternative authority for construction and improvement of 
         military housing (sec. 2801)
       The House bill contained a provision (sec. 2801) that would 
     authorize a series of authorities, as alternative methods of 
     acquiring and improving family housing and support facilities 
     for the armed forces. Such authorities would include the 
     ability to contract and lease family housing. Use of the 
     authorities would be targeted at installations where there is 
     a shortage of suitable family housing. For housing acquired 
     under the authorities provided in this section, the unit size 
     and type limitations in current law would be waived to 
     encourage private sector development of military family 
     housing. The Department of Defense (DOD) would be authorized 
     to contribute up to 35 percent of the investment cost in any 
     project. Such investment could take a number of forms, 
     including cash, existing housing, and/or real property. The 
     provision would also establish the Defense Family Housing 
     Improvement Fund as the sole source of funding for projects 
     constructed or renovated under the authorities of this 
     provision. The provision would require DOD to submit a 21-day 
     notice-and-wait announcement to Congress before entering into 
     contract agreements associated with these new authorities and 
     would require DOD to submit a 30-day notice-and-wait 
     announcement before transferring funds from the family 
     housing construction accounts to the Fund. Each of the 
     authorities contained in this provision would expire on 
     September 30, 2000.
       The Senate amendment contained a similar provision (sec. 
     2811) that would expand the authorities to include 
     acquisition or renovation of unaccompanied housing on or near 
     military installations. The provision would also establish a 
     Department of Defense Housing Improvement Fund, for use as 
     the sole source to finance costs associated with the 
     acquisition of housing and support facilities.
       The House recedes with an amendment that would establish 
     the Department of Defense Family Housing Improvement Fund and 
     the Department of Defense Military Unaccompanied Housing 
     Improvement Fund as the sources to finance costs associated 
     with the acquisition of housing and supporting facilities, 
     including costs defined in section 502(5) of the Federal 
     Credit Reform Act of 1990 (2 U.S.C. 661a(5)). The provision 
     would also establish certain reporting requirements for the 
     DOD and would limit the transfer of funds previously 
     authorized and appropriated to funds associated with the 
     construction of family housing or unaccompanied housing. The 
     provision would also limit the obligation of funds by DOD to 
     $850.0 million for family housing and $150.0 million for 
     unaccompanied housing.
     Expansion of authority for limited partnerships for 
         development of military family housing (sec. 2802)
       The Senate amendment contained a provision (sec. 2807) that 
     would provide each of the military services with the limited 
     partnership authority provided to the Department of the Navy 
     by section 2803 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337). The provision would 
     also extend the expiration of the authority to September 30, 
     2000.
       The House bill contained a similar provision.
       The House recedes with a technical amendment.

  Subtitle B--Other Military Construction Program and Military Family 
                            Housing Changes

     Special threshold for unspecified minor construction projects 
         to correct life, health, or safety deficiencies (sec. 
         2811)
       The Senate amendment contained a provision (sec. 2801) that 
     would amend 2805 of title 10, United States Code, to include 
     as a minor military construction project any military 
     construction project intended solely to correct a life, 
     health, or safety deficiency, if the approved cost is equal 
     to or less than $3.0 million. The provision would authorize 
     the expenditure of operation and maintenance funds to carry 
     out projects to correct a life, health, or safety deficiency 
     costing no more than $1.0 million.
       The House bill contained a similar provision.
       The House recedes.
     Clarification of scope of unspecified minor construction 
         authority (sec. 2812)
       The Senate amendment contained a provision (sec. 2802) that 
     would amend section 2805(a)(1) of title 10, United States 
     Code, to clarify the definition of minor military 
     construction.
       The House bill contained a similar provision.
       The House recedes.
     Temporary authority to waive net floor area limitation for 
         family housing acquired in lieu of construction (sec. 
         2813)
       The Senate amendment contained a provision (sec. 2803) that 
     would waive, for a five year period, beginning in fiscal year 
     1996, the net floor area limitation established in section 
     2826 of title 10, United States Code, if existing family 
     housing is acquired in lieu of construction.
       The House bill contained no similar provision.
       The House recedes with an amendment that would give the 
     service secretary discretionary authority to waive the floor 
     limitation.
     Reestablishment of authority to waive net floor area 
         limitation on acquisition by purchase of certain military 
         family housing (sec. 2814)
       The Senate amendment contained a provision (sec. 2804) that 
     would make permanent section 2826(e) of title 10, United 
     States Code, that allows a waiver for a 20 percent increase 
     in the square footage limitation when acquiring, through 
     purchase, military family housing units for members of the 
     Armed Forces in pay grades below O-6.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Temporary authority to waive limitations on space by pay 
         grade for military family housing units (sec. 2815)
       The Senate amendment contained a provision (sec. 2805) that 
     would waive section 2826 of title 10, United States Code, for 
     housing authorized for construction for five years, beginning 
     in fiscal year 1996. The waiver would permit the construction 
     of family housing units without regard to space limitations, 
     as long as the total number of housing units is the same as 
     authorized by law.
       The House bill contained no similar provision.
       The House recedes with an amendment that would give the 
     service secretary discretion to waive the authority for five 
     years beginning in fiscal year 1996.
     Rental of family housing in foreign countries (sec. 2816)
       The House bill contained a provision (sec. 2805) that would 
     authorize an increase in the number of high-cost family 
     housing units that may be leased in foreign countries.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Clarification of scope of report requirement on cost 
         increases under contracts for military family housing 
         construction (sec. 2817)
       The Senate amendment contained a provision (sec. 2808) that 
     would amend section 2853 

[[Page H700]]
     to title 10, United States Code, by eliminating the requirement for 
     congressional notification on cost increases that exceed 
     established limitations when the increase is related to 
     settlement of a court ordered contract claim.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Authority to convey damaged or deteriorated military family 
         housing (sec. 2818)
       The Senate amendment contained a provision (sec. 2809) that 
     would authorize the secretaries of the military departments 
     to sell, at fair market value, family housing facilities at 
     non-base closure installations that have deteriorated beyond 
     economical repair, or are no longer required. The sale may 
     include the parcel of land on which the family housing 
     facilities are located.
       The provision directs that the proceeds from the sale of 
     the property be used to replace or revitalize housing at the 
     existing installation, or at another installation. The 
     provision also requires the secretary concerned to notify 
     Congress before proceeding with conveyance of family housing 
     facilities under this authority.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Energy and water conservation savings for the Department of 
         Defense (sec. 2819)
       The Senate amendment contained a provision (sec. 2810) that 
     would amend section 2865 of title 10, United States Code, to 
     include water conservation in the Department of Defense's 
     comprehensive energy conservation plan.
       The House bill contained no similar provision.
       The House recedes.
     Extension of authority to enter into leases of land for 
         special operations activities (sec. 2820)
       The Senate amendment contained a provision (sec. 2812) that 
     would make permanent the authority provided in section 2680 
     of title 10, United States Code, which grants the Secretary 
     of Defense the authority to lease property required for 
     special operations activities conducted by the Special 
     Operations Command.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     authority to lease property required for special operations 
     until September 30, 2000.
     Disposition of amounts recovered as a result of damage to 
         real property (sec. 2821)
       The House bill contained a provision (sec. 2804) that would 
     authorize the military departments to retain the proceeds 
     recovered as a result of damages to real property instead of 
     depositing those proceeds into the miscellaneous receipts 
     account in the United States Treasury. Such proceeds would be 
     made available for repair or replacement of damages to real 
     property.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Pilot program to provide interest rate buy down authority on 
         loans for housing within housing shortage areas at 
         military installations (sec. 2822)
       The House bill contained a provision (sec. 2806) that would 
     authorize a three-year pilot program to provide additional 
     housing assistance to military personnel. Under the program, 
     as administered by the Secretary of Veterans Affairs (VA), 
     the VA would buy down the interest rate on VA home loans for 
     qualified applicants. The Secretary of Defense would 
     reimburse the VA for the costs of the interest rate buy down. 
     Authorization of the program would be limited to $10.0 
     million and could only be utilized at military installations 
     which the Secretary of Defense considers to have a military 
     family housing deficit.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     scope of the program to active duty enlisted members, warrant 
     officers, and officers at a pay grade of O-3 and below.

            Subtitle C--Defense Base Closure and Realignment

     Deposit of proceeds from leases of property located at 
         installations being closed or realigned (sec. 2831)
       The House bill contained a provision (sec. 2812) that would 
     authorize the Secretary of Defense to deposit proceeds from 
     leases of property located at installations being closed or 
     realigned into the relevant account established in the 
     Defense Authorization Amendments and Base Closure and 
     Realignment Act (Public Law 100-526) or the Defense Base 
     Closure and Realignment Act of 1990 (Public Law 101-510).
       The Senate amendment contained a similar provision.
       The Senate recedes.
     In-kind consideration for leases at installations to be 
         closed or realigned (sec. 2832)
       The Senate amendment contained a provision (sec. 2821) that 
     would permit the service secretaries to accept in-kind 
     services (improvements, maintenance, protection, repair, or 
     restoration services performed on any portion of the 
     installation) from a lessee in lieu of cash rental payments 
     for leases of property that will be disposed of as a result 
     of a base closure or realignment.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Interim leases of property approved for closure or 
         realignment (sec. 2833)
       The Senate amendment contained a provision (sec. 2830B) 
     that would facilitate the use of limited term leases (one to 
     five years) by the Department of Defense in connection with 
     reuse of military installations selected for closure. The 
     provision would make it clear that any environmental impact 
     analysis prepared in connection with an interim lease of 
     Department of Defense property approved for closure or 
     realignment shall be limited to the scope of environmental 
     consequences related to the lease activities.
       The House bill contained no similar provision.
       The House recedes.
       The conferees agree that under current law the Department 
     of Defense has been reluctant to enter into limited term 
     leases before an environmental review has been completed, 
     pursuant to the National Environmental Policy Act (42 U.S.C. 
     4321, et. seq.), that would address the disposal of the 
     entire installation. Such concerns have impeded private 
     sector use of base closure property for short term capital 
     investments.
     Authority to lease property requiring environmental 
         remediation at installations approved for closure or 
         realignment (sec. 2834)
       The Senate amendment contained a provision (sec. 2824) that 
     would allow the Department of Defense to enter into long-term 
     lease agreements at military installations selected for 
     closure, while environmental restoration is ongoing. 
     Specifically, the section would provide that section 
     120(h)(3)(B) of the Comprehensive Environmental Response 
     Compensation and Liability Act of 1980 (CERCLA) (42 U.S.C. 
     9620(h)(3)(B)) does not apply to leases at Department of 
     Defense installations. The provision would also provide for 
     Environmental Protection Agency consultation on the 
     determination that property is suitable for lease in those 
     instances involving long term leases at installations 
     approved for closure under a base closure law.
       The House bill contained no similar provision.
       The House recedes.
       The conferees agree that the provision is necessary to 
     ensure that the Department may enter into long-term leases 
     while cleanup is ongoing. The provision addresses a recent 
     federal district court decision that could undermine reuse 
     plans at military installations selected for closure with 
     similar reuse plans. The provision serves to clarify the 
     legislative intent on this issue.
     Final funding for Defense Base Closure and Realignment 
         Commission (sec. 2835)
       The Senate amendment contained a provision (sec. 2825) that 
     would amend section 2902(k) of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510, 10 U.S.C. 2657) to authorize the Secretary of 
     Defense to transfer unobligated funds from the Department of 
     Defense Base Closure Account to fund the operations of the 
     Defense Base Closure and Realignment Commission until 
     December 31, 1995.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     transfer authority to $300,000.
     Exercise of authority delegated by the Administrator of 
         General Services (sec. 2836)
       The Senate amendment contained a provision (sec. 2827) that 
     would amend the Defense Base Closure and Realignment Act of 
     1990 (Public Law 101-510) to expand the authority of the 
     Secretary of Defense, with the concurrence of the 
     Administrator of the General Services Administration, to 
     prescribe general policies and issue regulations for 
     utilizing excess property and disposing of surplus property. 
     The provision would also make certain technical changes.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Lease back of property disposed from installations approved 
         for closure or realignment (sec. 2837)
       The Senate amendment contained a provision (sec. 2828) that 
     would amend the Defense Base Closure and Realignment Act of 
     1990 (Public Law 101-510) to allow base closure property that 
     is still needed by the Department of Defense or another 
     federal agency to be transferred to the local redevelopment 
     authority, providing that the redevelopment authority leases 
     back the property to the Department of Defense or federal 
     agency. Such a lease should not exceed 50 years and could not 
     require rental payments by the United States.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Improvement of base closure and realignment process regarding 
         disposal of property (sec. 2838)
       The House bill contained a provision (sec. 2814) that would 
     amend the Defense Authorization Amendments and Base Closure 
     and Realignment Act (Public Law 100-526; 10 

[[Page H701]]
     U.S.C. 2687 note) and the Defense Base Closure and Realignment Act of 
     1990 (Part A of title XXIX of Public Law 101-510; 10 U.S.C. 
     2687). The provision would preclude consideration of Section 
     501 of the Stewart B. McKinney Homeless Assistance Act (42 
     U.S.C. 11411) in the transfer or disposal of real property 
     located at military installations closed or realigned under 
     the base closure law.
       The Senate amendment contained a provision (sec. 2826) that 
     would amend the Defense Base Closure and Realignment Act of 
     1990 (Part A of title XXIX of Public Law 101-510; 10 U.S.C. 
     2687) to authorize the Secretary of Defense to approve local 
     redevelopment authorities' base reuse plans. Before making 
     any property disposal decisions, the Secretary of Defense 
     would be required to consult with the Secretary of Housing 
     and Urban Development to determine if the needs of the 
     homeless were appropriately considered. In reviewing disposal 
     plans, the Secretary of Defense could give deference to local 
     communities' plans in making the final property disposal 
     decisions.
       The House recedes with a technical amendment that would 
     recognize the preeminence of local redevelopment authorities' 
     plans for reuse of properties and facilities on installations 
     closed or realigned under the base closure procedures. The 
     amendment would further enhance the ability of the Secretary 
     of Defense to give final approval of local communities' base 
     reuse plans.
     Agreements for certain services at installations being closed 
         (sec. 2839)
       The House bill contained a provision (sec. 2813) that would 
     clarify current law that authorizes the Secretary of Defense 
     to enter into agreements with local governments for the 
     provision of police, security, fire protection, air field 
     operations, or other community services provided by such 
     governments at military installations scheduled to be closed.
       The Senate amendment contained a similar provision.
       The Senate recedes with a technical amendment.
     Authority to transfer property at military installations to 
         be closed to persons who construct or provide military 
         family housing (sec. 2840)
       The House bill contained a provision (sec. 2811) that would 
     authorize the Secretary of Defense to enter into an agreement 
     to transfer property or facilities at a closed installation, 
     or an installation designated to be closed, under current 
     law, to a person who agrees to provide, in exchange for the 
     property or facilities, housing units located at another 
     military installation where there is a shortage of suitable 
     housing. Under the provision, the Secretary would not be 
     permitted to select property or facilities for transfer that 
     have been identified in the redevelopment plan for the 
     installation as essential for base reuse and development.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Use of single base closure authorities for disposal of 
         property and facilities at Fort Holabird, Maryland (sec. 
         2841)
       The Senate amendment contained a provision (sec. 2830) that 
     would consolidate disposal of all property affected by the 
     1988 and 1995 base closure actions at Fort Holabird, Maryland 
     under the provisions of the Base Closure Community 
     Redevelopment and Homeless Assistance Act of 1994 (Public Law 
     103-421).
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                 Subtitle D--Land Conveyances Generally


                        part I--army conveyances

     Transfer of jurisdiction, Fort Sam Houston, Texas (sec. 2851)
       The House bill contained a provision (sec. 2821) that would 
     authorize the Secretary of the Army to transfer, without 
     reimbursement, approximately 53 acres, with improvements, to 
     the Secretary of Veterans Affairs. The property would be 
     conveyed for use as a national cemetery.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment deleting the 
     reversionary interest of the Secretary of the Army in the 
     property.
     Transfer of jurisdiction, Fort Bliss, Texas (sec. 2852)
       The House bill contained a provision (sec. 2838) that would 
     authorize the Secretary of the Army to transfer to the 
     Secretary of Veteran Affairs jurisdiction of approximately 22 
     acres, comprising a portion of Fort Bliss, Texas. The 
     property transferred would be used as an addition to the Fort 
     Bliss National Cemetery.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delete the 
     Secretary of the Army's reversionary interest in the 
     property.
     Tranfer of jurisdiction and land conveyance, Fort Devens 
         Military Reservation, Massachusetts (sec. 2853)
       The House bill contained a provision (sec. 2831) that would 
     require the Secretary of the Army to convey to the Secretary 
     of the Interior, without reimbursement, a portion of the Fort 
     Devens Military Reservation, Massachusetts, at any time after 
     the date on which the property is determined to be excess to 
     the needs of the Department of Defense. The property is to be 
     conveyed for inclusion in the Oxbow National Wildlife Refuge. 
     The cost of any surveys necessary for the conveyance shall be 
     borne by the Secretary of the Interior.
       This section would also require the Secretary of the Army 
     to convey to the Town of Lancaster, Massachusetts, without 
     reimbursement, a parcel of real property consisting of 
     approximately 100 acres of the parcel available for transfer 
     to the Secretary of the Interior. The cost of any surveys 
     necessary for the conveyance would be borne by the town.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Modification of land conveyance, Fort Belvoir, Virginia (sec. 
         2854)
       The Senate amendment contained a provision (sec. 2863) that 
     would require the Secretary of the Army to submit a report to 
     the Senate Armed Services Committee and the House National 
     Security Committee on the status of the negotiations related 
     to the land conveyance at the Engineer Proving Grounds, Fort 
     Belvoir, Virginia authorized by subsection (a) of section 
     2821 of the Military Construction Authorization Act for 
     Fiscal Years 1990 and 1991 (Public Law 101-189).
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     reporting requirement and would amend section 2821 of the 
     Military Construction Authorization Act for Fiscal Years 1990 
     and 1991 to authorize the Secretary of the Army to convey to 
     the County of Fairfax, Virginia, all right, title and 
     interest of the United States in and to all or a portion of 
     the parcel of real property, including improvements thereon, 
     at Fort Belvoir, Virginia, consisting of approximately 820 
     acres and known as the Engineer Proving Ground. In 
     consideration, the County shall construct facilities for the 
     Department of the Army; grant title, free of liens and other 
     encumbrances, to the facilities and, if not already owned by 
     the Department, to the underlying land; and make 
     infrastructure improvements for the Department of the Army, 
     as may be specified by the Secretary of the Army. The value 
     of the consideration provided by the County shall not be less 
     than the fair market value of the property conveyed to the 
     County, as determined by the Secretary. The amendment would 
     prohibit the Secretary from entering into any agreement under 
     this provision until the expiration of 60 days following the 
     date on which the Secretary transmits to the congressional 
     defense committees a report containing details of the 
     agreement between the Army and the County.
     Land exchange, Fort Lewis, Washington (sec. 2855)
       The House bill contained a provision (sec. 2836) that would 
     authorize the Secretary of the Army to convey to Weyerhaeuser 
     Real Estate Company, Tacoma, Washington two parcels of real 
     property at Fort Lewis, Washington totaling 1.26 acres. As 
     consideration the Weyerhaeuser Real Estate Company would 
     convey 0.39 acres located within the boundaries of Fort Lewis 
     together with other considerations acceptable to the 
     Secretary. The total consideration conveyed to the United 
     States would be no less than the fair market value of the 
     property conveyed by the Army.
       The Senate amendment contained a similar provision.
       The Senate recedes with a technical amendment.
     Land exchange, Army Reserve Center, Gainsville, Georgia (sec. 
         2856)
       The Senate amendment contained a provision (sec. 2846) that 
     would authorize the Secretary of the Army to convey to the 
     City of Gainesville, Georgia, a 4.2 acre parcel of real 
     property, including a reserve center, located on Shallowford 
     Road in Gainsville, Georgia. As consideration, the City of 
     Gainesville would convey to the Secretary approximately 8 
     acres of real property located in the Atlas Industrial Park 
     in Gainesville. The City would construct replacement 
     facilities in accordance with the requirements of the 
     Secretary of the Army for training activities of the Army 
     Reserve, and fund the costs of relocating the Reserve units 
     to the new location. The City's contribution of land and 
     facilities would be no less than the fair market value of the 
     property conveyed by the Secretary.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment.
     Land conveyance, Holston Army Ammunition Plant, Mount Carmel, 
         Tennessee (sec. 2857)
       The House bill contained a provision (sec. 2829) that would 
     authorize the Secretary of the Army to convey to the City of 
     Mount Carmel, Tennessee, without reimbursement, a parcel of 
     real property consisting of approximately 6.5 acres. The 
     property would be conveyed for expansion of the existing 
     Mount Carmel Cemetery.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
         Indiana (sec. 2858)
       The House bill contained a provision (sec. 2825) that would 
     authorize the Secretary of the Army to convey to the State of 
     Indiana, 

[[Page H702]]
     without consideration, a parcel of real property, with improvements, 
     consisting of approximately 1,125 acres. The property to be 
     conveyed would be used for recreational purposes.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Fort Ord, California (sec. 2859)
       The House bill contained a provision (sec. 2824) that would 
     authorize the Secretary of the Army to convey to the City of 
     Seaside, California, at fair market value, all right, title, 
     and interest in approximately 477 acres of real property 
     (comprising the Black House and Bayonet gold courses and a 
     portion of the Hayes Housing Facilities) comprising a portion 
     of the former Fort Ord Military Complex. From the amount paid 
     by the City in consideration for the conveyance, the 
     Secretary would deposit in the Morale, Welfare, and 
     Recreation Fund (MWR) account of the Department of the Army 
     an amount equal to the fair market value of the golf courses 
     conveyed under this section. The balance of the amount paid 
     by the City would be deposited in the Department of Defense 
     Base Closure Account 1990.
       The Senate amendment contained a provision (sec. 2841) that 
     would require the Secretary of Defense, within 60 days after 
     the date of enactment of the National Defense Authorization 
     Act for Fiscal Year 1996, to provide to Congress a report 
     that would describe the disposal plans for the 477 acres of 
     property at the former Fort Ord Military Complex.
       The Senate recedes to Senate amendment, section 2841. The 
     Senate recedes with an amendment to House bill section 2824. 
     The amendment to section 2824 would direct the Secretary to 
     deposit into the MWR account only those proceeds from the 
     sale of golf courses that are required to support MWR 
     activities in the vicinity of Fort Ord for the next five 
     years. The amount deposited into the MWR account would not 
     exceed the fair market value of golf courses conveyed to the 
     City. The amendment would also require the Secretary to 
     certify his findings on the disposition of the proceeds in a 
     report to Congress 90 days after the date of the conveyance.
     Land conveyance, Parks Reserve Forces Training Area, Dublin, 
         California (sec. 2860)
       The House bill contained a provision (sec. 2828) that would 
     authorize the Secretary of the Army to convey to the County 
     of Alameda, California, approximately 42 acres, with 
     improvements, located at the Parks Reserve Forces Training 
     Area, Dublin, California. The conveyance shall not include 
     any oil, gas, or mineral interests of the United States, and 
     shall be subject to the condition that the County would pay 
     for road improvements, utility upgrades, and construction 
     improvements at the portion of the Army Training Area 
     retained by the Army.
       The Senate bill contained no similar provision.
       The Senate recedes with a a technical amendment.
     Land conveyance, Army Reserve Center, Youngstown, Ohio (sec. 
         2861)
       The House bill contained a provision (sec. 2834) that would 
     authorize the Secretary of the Army to convey to the City of 
     Youngstown, Ohio, without consideration, a parcel of real 
     property. The property is located at 399 Miller Street in 
     Youngstown, Ohio, and comprises the vacant Kefurt Army 
     Reserve Center.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Army Reserve property, Fort Sheridan, 
         Illinois (sec. 2862)
       The Senate amendment contained a provision (sec. 2843) that 
     would authorize the Secretary of the Army to convey to a 
     transferee, selected through a competitive process, all 
     right, title, and interest of the United States in a parcel 
     of real property, and improvements thereon, at Fort Sheridan, 
     Illinois, consisting of approximately 114 acres and 
     comprising two Army Reserve areas. As consideration, the 
     transferee would convey to the United States a parcel of 
     land, acceptable to the Secretary, located not more than 25 
     miles from Fort Sheridan and in an area having similar social 
     and economic conditions as the area in which Fort Sheridan is 
     located. The transferee would also be required to construct 
     replacement facilities and infrastructure, and pay the cost 
     of relocating the Army personnel. The Secretary of the Army 
     would be required to ensure that the fair market value of the 
     consideration provided by the transferee is not less than the 
     fair market value of the real property conveyed by the 
     Secretary.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Land conveyance, property underlying Cummins Apartment 
         Complex, Fort Holabird, Maryland (sec. 2863)
       The Senate amendment contained a provision (sec. 2830A) 
     that would authorize the Secretary of the Army to convey to 
     the owner of the Cummins Apartment Complex, at fair market 
     value, six acres of real property at Fort Holabird, Maryland 
     that underlies the Cummins Apartment Complex.
       The House bill contained no similar provision.
       The House recedes.
     Modification of existing land conveyance, Army property, 
         Hamilton Air Force Base, California (sec. 2864)
       The House bill contained a provision (sec. 2837) that would 
     modify section 9099(e) of the National Defense Appropriations 
     Act for Fiscal Year 1993 (Public Law 102-396), which 
     permitted the Secretary of the Army to sell certain parcels 
     of property at the former Hamilton Air Force Base, 
     California, as described in the Agreement and Modification, 
     dated September 25, 1990, between the Department of the 
     Defense, the General Services Administration, and the 
     purchaser. The House provision would authorize the Secretary 
     of the Army to convey to the City of Novato, California, any 
     unpurchased property described in section 9099(e) of the 
     National Defense Appropriations Act for Fiscal Year 1993 
     (Public Law 102-396), for use in establishing schools and 
     park areas. Under this provision, the City would be required 
     to provide any proceeds received from subsequent sale of the 
     property, within the next ten years, to the Secretary of the 
     Army.
       The Senate amendment contained no similar provision.
       The Senate recedes with technical amendment.


                       part ii--navy conveyances

     Transfer of jurisdiction, Naval Weapons Industrial Reserve 
         Plant, Calverton, New York (sec. 2865)
       The House bill contained a provision (sec. 2823) that would 
     authorize the Secretary of the Navy to transfer to the 
     Secretary of Veterans Affairs, without reimbursement, 
     approximately 150 acres at the Naval Weapons Industrial 
     Reserve Plant, Calverton, New York. The property would be 
     conveyed for use as a national cemetery.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Modification of land conveyance, Naval Weapons Industrial 
         Reserve Plant, Calverton, New York (sec. 2866)
       The House bill contained a provision (sec. 2835) that would 
     modify the condition of conveyance of the Naval Weapons 
     Industrial Reserve Plant, Calverton, New York, as authorized 
     in the Military Construction Authorization Act for Fiscal 
     1995 (Division B of Public Law 103-335; 108 Stat. 3061). The 
     modification would amend the purpose of the conveyance. The 
     provision would also strike the Department of Navy's 
     reversionary interest in the property, and, in lieu thereof, 
     authorize the Secretary to lease the facility to the 
     Community Development Agency, in exchange for security, fire 
     protection, and maintenance services, until the property is 
     conveyed by deed.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would retain the 
     purpose of the conveyance, as currently authorized by law.
     Land conveyance alternative to existing lease authority, 
         Naval Supply Center, Oakland, California (sec. 2867)
       The House bill contained a provision (sec. 2833) that would 
     amend section 2834(b) of the Military Construction 
     Authorization Act for Fiscal Year 1993, (Division B of Public 
     Law 103-160) and section 2821 of the Military Construction 
     Authorization Act for Fiscal Year 1995 (Division B of Public 
     Law 103-337) to authorize the Secretary of the Navy to convey 
     to the City of Oakland, California, the Port of Oakland, 
     California, or the City of Alameda, California, without 
     consideration, in lieu of an existing lease, property at the 
     Naval Supply Center, under such terms as the Secretary 
     considers appropriate. The exact acreage of the real property 
     that would be conveyed would be determined by a survey that 
     is satisfactory to the Secretary, and the cost for such 
     survey shall be borne by the recipient of the property.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include the 
     City of Richmond, California as an authorized recipient of 
     the property to be conveyed.
     Land conveyance, Naval Weapons Industrial Reserve Plant, 
         McGregor, Texas (sec. 2868)
       The House bill contained a provision (sec. 2830) that would 
     authorize the Secretary of the Navy to convey to the City of 
     McGregor, Texas, without consideration, all right, title, and 
     interest of the United States in a parcel of real property, 
     including improvements thereon, containing the Naval Weapons 
     Industrial Reserve Plant. The conveyed property would be used 
     for purposes of economic redevelopment. Until the real 
     property is conveyed by deed, the Secretary would be 
     permitted to lease the facility of the City in exchange for 
     security, fire protection, and maintenance services. The 
     Secretary would be authorized to convey other fixtures 
     located on the property if such equipment can be reinstituted 
     after the conveyance.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Naval Surface Warfare Center, Memphis, 
         Tennessee (sec. 2869)
       The Senate amendment contained a provision (sec. 2838) that 
     would authorize the Secretary of the Navy to convey to the 
     Memphis and Shelby County Port Commission, Memphis, 
     Tennessee, 26 acres of land, including a 1250 ton stiff leg 
     derrick crane, located at the Carderock Division, Naval 
     Surface Warfare Center, Memphis Detachment, President's 
     Island, Memphis, Tennessee. As consideration 

[[Page H703]]
     for the conveyance, the Port Commission shall grant a restrictive 
     easement consisting of approximately 100 acres that is 
     adjacent to the Memphis Detachment. If the value of the 
     easement granted by the Port is less than the fair market 
     value of the real property conveyed by the Navy, the 
     Secretary and the Port would jointly determine the 
     appropriate additional compensation. The Secretary would 
     deposit any cash proceeds received as part of the 
     transaction, into the special account established under 
     section 204(h)(2) of the Federal Property and Administrative 
     Services Act of 1949.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Navy property, Fort Sheridan, Illinois (sec. 
         2870)
       The Senate amendment contained a provision (sec. 2842) that 
     would authorize the Secretary of the Navy to convey to a 
     transferee, selected through a competitive process, all 
     right, title, and interest of the United States in a parcel 
     of real property, and improvements thereon, at Fort Sheridan, 
     Illinois, consisting of approximately 182 acres and 
     comprising the Navy housing areas at Fort Sheridan. As 
     consideration, the transferee would convey to the United 
     States a parcel of land, acceptable to the Secretary, located 
     not more than 25 miles from the Great Lakes Naval Training 
     Center, Illinois, and located in an area having similar 
     social and economic conditions as the area in which Fort 
     Sheridan is located. The transferee would also be required 
     to: construct replacement housing, support facilities, and 
     infrastructure; pay the cost of relocating the Navy 
     personnel; and provide for the education of dependents in 
     schools that meet, and would continue to meet, standards 
     established by the Secretary of the Navy, even after the 
     enrollment of dependents, regardless of the receipt of 
     federal impact aid by such schools or school districts. The 
     Secretary of the Navy would be required to ensure that the 
     fair market value of the consideration provided by the 
     transferee is not less than the fair market value of the real 
     property conveyed by the Secretary.
       The House bill contained no similar provision.
       The House recedes with technical amendment.
     Land conveyance, Naval Communications Station, Stockton, 
         California (sec. 2871)
       The Senate amendment contained a provision (sec. 2844) that 
     would authorize the Secretary of the Navy, with the 
     concurrence of the Administrator of General Services and the 
     Secretary of Housing and Urban Development, to convey to the 
     Port of Stockton, California, all right, title, and interest 
     in approximately 1,450 acres of real property at the Naval 
     Communications Station, Stockton, California. The conveyance 
     may be as a public benefit conveyance if the Port satisfies 
     the criteria established in section 203 of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     484). If the Port does not satisfy such criteria, the 
     conveyance would be for fair market value. As a condition for 
     the conveyance, the Port would be required to agree to 
     maintain, under current terms and conditions, existing 
     Federal leases of property at the Station. The Secretary 
     would be authorized to lease the property to the Port until 
     the property is conveyed by deed.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     requirement that the conveyance be subject to the concurrence 
     of the Administrator of General Service and the Secretary of 
     Housing and Urban Development. The conferees intend that the 
     Secretary would not carry out the conveyance unless it is 
     determined that no department or agency of the Federal 
     Government will accept the transfer of the property.
     Lease of property, Naval Air Station and Marine Corps Air 
         Station, Miramar, California (sec. 2872)
       The conferees include a new section that would authorize 
     the Secretary of the Navy to enter into a lease agreement 
     with the City of San Diego, California, that would provide 
     for the City's use of land at the Naval Air Station or Marine 
     Corps Air Station Miramar, California, as a municipal solid 
     waste landfill, and for other purposes related to the 
     management of solid waste. The provision would also allow the 
     Secretary to receive in-kind consideration under the lease, 
     and to use any rental money received to carry out 
     environmental programs or improvement projects to enhance 
     quality of life programs for personnel stationed at the Naval 
     Air Station or Marine Corps Air Station. This provision would 
     provide the sole authority for entering into the described 
     lease with the City of San Diego.


                    part iii--air force conveyances

     Land acquisition or exchange, Shaw Air Force Base, South 
         Carolina (sec. 2874)
       The House bill contained a provision (sec. 2822) that would 
     authorize the Secretary of the Air Force to acquire, by means 
     of an exchange of property, acceptance as a gift, or other 
     means that would not require the use of appropriated funds, 
     all right, title, and interest in a parcel of real property, 
     with improvements, consisting of approximately 1,100 acres 
     adjacent to Shaw Air Force Base, Sumter, South Carolina.
       The Senate amendment contained an identical provision. The 
     conference agreement includes this provision.
     Land conveyance, Elmendorf Air Force Base, Alaska (sec. 2875)
       The House bill contained a provision (sec. 2832) that would 
     authorize the Secretary of the Air Force to sell to a private 
     person a parcel of real property consisting of approximately 
     32 acres located at Elmendorf Air Force Base, Alaska. As 
     consideration for the sale, the purchaser would be required 
     to provide appropriate maintenance for the apartment complex 
     located on the property to be conveyed and used by members of 
     the armed forces and their dependents stationed at the 
     Elmendorf Air Force Base. The cost of any surveys necessary 
     for the sale of real property would be borne by the 
     purchaser.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Land conveyance, Radar Bomb Scoring Site, Forsyth, Montana 
         (sec. 2876)
       The Senate amendment contained a provision (sec. 2839) that 
     would authorize the Secretary of the Air Force to convey to 
     the City of Forsyth, Montana, without consideration, 
     approximately 58 acres, with improvements, comprising the 
     support complex and recreational facilities of the former 
     Radar Bomb Scoring Site, Forsyth, Montana. The conveyance 
     would be subject to the condition that the City use the 
     property for housing and recreational purposes.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Radar Bomb Scoring Site, Powell, Wyoming 
         (sec. 2877)
       The Senate amendment contained a provision (sec. 2840) that 
     would authorize the Secretary of the Air Force to convey to 
     the Northwest College Board of Trustees, without 
     consideration, approximately 24 acres, with improvements, 
     comprising the support complex, recreational areas, and 
     housing facilities at the former Radar Bomb Scoring Site, 
     Powell, Wyoming. The conveyance would be subject to the 
     condition that the Board use the property conveyed for 
     housing and recreational purposes, and for such other 
     purposes as the Secretary and the Board jointly determine 
     appropriate.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Avon Park Air Force Range, Florida (sec. 
         2878)
       The House bill contained a provision (sec. 2827) that would 
     authorize the Secretary of the Air Force to convey, without 
     consideration, a parcel of real property, with improvements, 
     within the boundaries of the Avon Park Air Force Range near 
     Sebring, Florida to Highlands County, Florida. The property 
     would be conveyed for the operation of a juvenile or other 
     correctional facility.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.

            Subtitle E--Land Conveyances Involving Utilities

     Conveyance of resources recovery facility, Fort Dix, New 
         Jersey (sec. 2881)
       The House bill contained a provision (sec. 2841) that would 
     authorize the Secretary of the Army to convey to Burlington 
     County, New Jersey, a parcel of real property at Fort Dix, 
     New Jersey, consisting of approximately two acres and 
     containing the Fort Dix resource recovery facility.
       The Senate amendment contained a similar provision.
       The Senate recedes with an amendment that would increase 
     the acreage to be conveyed to six acres and would make other 
     technical corrections.
     Conveyance of water and wastewater treatment plants, Fort 
         Gordon, Georgia (sec. 2882)
       The House bill contained a provision (sec. 2842) that would 
     authorize the Secretary of the Army to convey to the City of 
     Augusta, Georgia, all rights, title, and interest of the 
     United States in several parcels of real property consisting 
     of approximately seven acres each and containing water and 
     wastewater treatment plants and distribution and collection 
     systems. In consideration of the conveyance, the City of 
     Augusta would accept the water and wastewater treatment 
     plants and distribution and collection systems in their 
     existing condition and provide water and sewer service to 
     Fort Gordon, Georgia at a rate established by the appropriate 
     State or Federal regulatory authority.
       The Senate amendment contained a similar provision.
       The Senate recedes with a technical amendment.
     Conveyance of electricity distribution system, Fort Irwin, 
         California (sec. 2883)
       The House bill contained a provision (sec. 2843) that would 
     authorize the Secretary of the Army to convey to the Southern 
     California Edison Company, California, all right, title, and 
     interest of the United States in the electrical distribution 
     system located at Fort Irwin, California. In consideration 
     for the conveyance, the Southern California Edison Company 
     would be required to accept the electrical distribution 
     system in its existing condition and provide electrical 
     service to Fort Irwin at a rate established by the 
     appropriate State or Federal regulatory authority.
       The Senate amendment contained a similar provision.
       
[[Page H704]]

       The Senate recedes with a technical amendment.
     Conveyance of water treatment plant, Fort Pickett, Virginia 
         (sec. 2884)
       The Senate amendment contained a provision (sec. 2835) that 
     would authorize the Secretary of the Army to convey to the 
     Town of Blackstone, Virginia, without reimbursement, the 
     water treatment plant located at Fort Pickett, Virginia. In 
     exchange, the town would provide water and sewer services to 
     Fort Pickett, at a rate negotiated by the Secretary of the 
     Army and approved by the appropriate federal and state 
     regulatory authorities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of the Army to convey to the Town of 
     Blackstone, Virginia, the water treatment plant located at 
     Fort Pickett, Virginia. The amendment would also modify 
     paragraph (c) by clarifying that the water rights granted to 
     the town would be determined pursuant to the law of the 
     Commonwealth of Virginia.

                       Subtitle F--Other Matters

     Authority to use funds for certain educational purposes (sec. 
         2891)
       The Senate amendment contained a provision (sec. 2813) that 
     would amend section 2008 of title 10, United States Code, to 
     authorize the Department of Defense to continue the use of 
     appropriated funds for repair, maintenance, and construction 
     of Department of Education school facilities located on 
     military installations.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Department of Defense Laboratory Revitalization Demonstration 
         Program (sec. 2892)
       The Senate amendment contained a provision (sec. 2861) that 
     would establish a test program to allow the heads of selected 
     defense laboratories greater flexibility to undertake 
     facility modernization initiatives. For test program 
     laboratories, the provision would raise the minor 
     construction threshold, from $1.5 million to $3.0 million, 
     for projects that the Secretary of Defense may carry out 
     without specific authorization. The provision would also 
     raise the threshold for minor military construction projects 
     requiring prior approval of the Secretary of Defense, from 
     $500,000 to $1.5 million. Finally, the provision would raise, 
     for the selected laboratories, the threshold, from $300,000 
     to $1.0 million, for the value of any unspecified military 
     construction project for which operation and maintenance 
     funds may be used.
       The provision would provide for the expiration of the test 
     authority on September 30, 2000. It would also require the 
     Secretary of Defense to designate participating laboratories 
     before the test may begin, establish a review procedure for 
     each project to be funded under this section, and report to 
     Congress on the lessons learned from the test program one 
     year before the program is terminated.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Authority for Port Authority of State of Mississippi to use 
         Navy property at Naval Construction Battalion Center, 
         Gulfport, Mississippi (sec. 2893)
       The House bill contained a provision (sec. 2852) that would 
     authorize the Secretary of the Navy to enter into an 
     agreement with the Port Authority of the State of Mississippi 
     to permit joint use of real property and associated 
     improvements comprising up to 50 acres located at the Naval 
     Construction Battalion Center, Gulfport, Mississippi. The 
     requirement would be for a period not to exceed 15 years, and 
     the Port Authority would be required to pay fair market 
     rental value as determined by the Secretary. The Secretary 
     could not enter into any agreement until after the end of a 
     21-day period beginning on the date on which the Secretary 
     submits a report to Congress explaining the terms of the 
     proposed agreement and describing the consideration that the 
     Secretary would expect to receive under the agreement.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Prohibition on joint use of Naval Air Station and Marine 
         Corps Air Station, Miramar, California (sec. 2894)
       The House bill contained a provision (sec. 2853) that would 
     prohibit the Secretary of the Navy from entering into any 
     agreement that would provide for the regular use of Naval Air 
     Station, Miramar, California, by civil aircraft.
       The Senate amendment contained a similar provision.
       The Senate recedes with a clarifying amendment.
     Report regarding Army water craft support facilities and 
         activities (sec. 2895)
       The House bill contained a provision (sec. 2854) that would 
     require the Secretary of the Army to submit, not later than 
     February 15, 1996, a report describing the Army's water craft 
     support facilities and activities. The report would include 
     actions that can be taken to close the Army Reserve Facility 
     located in Marcus Hook, Pennsylvania.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Residual value reports (sec. 2896)
       The Senate amendment contained a provision (sec. 2864) that 
     would require the Secretary of Defense, in coordination with 
     the Director of the Office of Management and Budget, to 
     submit to the congressional defense committees a status 
     report on the results of residual value negotiations between 
     the United States and Germany. The report would be provided 
     within 30 days after the Office of Management and Budget 
     receives the results of the negotiations.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Sense of Congress and report regarding Fitzsimons Army 
         Medical Center, Colorado (sec. 2897)
       The Senate amendment contained a provision (sec. 2830C) 
     that would express the Sense of Congress that the Secretary 
     of the military departments should consider the expedited 
     transfer of facilities to local redevelopment authorities 
     while the facilities are still operational. The provision 
     would also require the Secretary of the Army to provide a 
     report, within 180 days of enactment of the National Defense 
     Authorization Bill for Fiscal Year 1996, on the actions taken 
     to convey the Fitzsimons Army Medical Center, Colorado.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees agree that this section is intended to 
     support current efforts to redevelop the Fitzsimons Army 
     Medical Center. The conferees agree that this section is not 
     intended to circumvent the 1995 recommendations of the 
     Defense Base Closure and Realignment Commission, or other 
     applicable laws.


                   legislative provisions not adopted

     Land conveyance, Naval Air Station, Pensacola, Florida
       The House bill contained a provision (sec. 2826) that would 
     authorize the Secretary of the Navy to convey to West Florida 
     Developers, Inc. a parcel of unimproved real property, 
     consisting of approximately 135 acres. As consideration for 
     the conveyance of real property, West Florida Developers, 
     Inc. would agree to restrict the use of all lands located 
     within the Accident Potential Zone of Naval Air Station 
     Pensacola, owned by West Florida Developers, Inc. The cost of 
     any surveys necessary for the conveyance shall be borne by 
     West Florida Developers, Inc.
       The Senate amendment contained no similar provision.
       The House recedes.
     Expansion of authority to sell electricity
       The House bill contained a provision (sec. 2851) that would 
     amend section 2483(a) of title 10, United States Code, to 
     expand the authority of the Department of Defense to permit 
     the military departments to take advantage of changing 
     electric power marketing conditions by increasing the 
     available option to outsource for energy on military 
     installations.
       The Senate amendment contained no similar provision.
       The House recedes.
     Clarification of funding for environmental restoration at 
         installations approved for closure or realignment in 1995
       The Senate amendment contained a provision (sec. 2823) that 
     would authorize the Department of Defense to fund 
     environmental restoration at installations selected for 
     closure by the 1995 Defense Base Closure and Realignment 
     Commission with funds authorized for the Defense 
     Environmental Restoration Account for fiscal year 1996. After 
     fiscal year 1996, environmental restoration for these 
     installations would be funded using the Defense Base Closure 
     and Realignment Account.
       The House bill contained no similar provision.
       The Senate recedes.
     Report on the disposal of property, Fort Ord Military 
         Complex, California
       The Senate amendment contained a provision (sec. 2841) that 
     would require the Secretary of Defense to submit a report to 
     the Congress describing the plans for the disposal of a 
     parcel of real property consisting of approximately 477 acres 
     at the former Fort Ord Military Complex.
       The House bill contained no similar provision.
       The Senate recedes.
     Land conveyance, William Langer Jewel Bearing Plant, Rolla, 
         North Dakota
       The Senate amendment contained a provision (sec. 2845) that 
     would authorize the Administrator of the General Services 
     Administration to convey to the Job Development Authority of 
     the City of Rolla, without consideration, approximately 9.77 
     acres of real property, comprising the former Army-owned 
     William Langer Jewel Bearing Plant, Rolla, North Dakota. The 
     property and facility are to be used for economic development 
     in order to replace economic activity lost at the plant.
       The House bill contained no similar provision.
       The Senate recedes. 
       
[[Page H705]]

     Renovation of the Pentagon Reservation
       The Senate amendment contained a provision (sec. 2865) that 
     would require the Secretary of Defense to take such actions 
     necessary to reduce the total cost of the renovation of the 
     Pentagon Reservation to not more than $1.1 billion.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that, as required by section 8149 of the 
     Fiscal Year 1995 Department of Defense Appropriations Act 
     (Public Law 103-335), the Secretary of Defense certified on 
     December 19, 1994 that the total cost of the renovation would 
     not exceed $1.2 billion. Although the department is in the 
     fifth year of a 15 year renovation of the Pentagon, the 
     conferees reiterate their view that this project should be 
     executed at the lowest cost possible. Earlier this year, the 
     Secretary of Defense appointed a steering committee to review 
     the ongoing renovation project. The Secretary of Defense is 
     directed to submit a report to the Senate Committee on Armed 
     Services and the House Committee on National Security by 
     February 15, 1996 on the findings of the steering committee 
     review and on opportunities to achieve further savings.

  Title XXIX--Land Conveyances Involving Joliet Army Ammunition Plant


                         legislative provisions

                     legislative provisions adopted

     Title XXIX--Land Conveyances involving Joliet Army Ammunition 
         Plant, Illinois
       The Senate amendment contained provisions (secs. 2851-2857) 
     that would authorize the Secretary of the Army to transfer to 
     the Secretary of Agriculture approximately 19,000 acres of 
     land located at the Joliet Army Ammunition Plant to establish 
     the Midewin Tallgrass Prairie. The provision would also 
     authorize the Secretary of the Army to convey, without 
     compensation, to the Secretary of Veterans Affairs 910 acres 
     of land at Joliet Army Ammunition Plant to establish a 
     national cemetery.
       The provision would further authorize the Secretary of the 
     Army to convey to the County of Will, Illinois, without 
     consideration, 425 acres of land at Joliet Army Ammunition 
     Plant to be used for a landfill. As a part of this 
     conveyance, the County of Will would be required to permit 
     Federal Government use of the landfill at no cost.
       The provision would also authorize the Secretary of the 
     Army to convey, at fair market value, 1,900 acres and 1,100 
     acres of land located at the Joliet Army Ammunition Plant to 
     the Village of Elwood, Illinois, and the City of Wilmington, 
     Illinois, respectively, to establish industrial parks. All 
     proceeds from any future sale of these parcels or portions of 
     these parcels would be remitted to the Secretary of the Army.
       The House bill contained no similar provision.
       The House recedes with an amendment that would incorporate 
     the language contained in H.R. 714, an act that would 
     establish the Midewin National Tallgrass Prairie in the State 
     of Illinois, as passed by the House of Representatives in the 
     104th Congress. The House amendment would modify H.R. 714 to:
       (1) make technical corrections;
       (2) authorize the Secretary of the Army to transfer 982 
     acres of real property to the Secretary of Veterans Affairs 
     to establish a national cemetery;
       (3) authorize the Secretary of the Army to convey to Will 
     County, Illinois, without consideration, 455 acres of real 
     property for use as a landfill;
       (4) authorize the Secretary of the Army to convey to the 
     State of Illinois, at fair market value, 3,000 acres of real 
     property to the State of Illinois for economic redevelopment. 
     The State of Illinois would be required to pay the Army fair 
     market value for the property within twenty years after the 
     date of the conveyance;
       (5) require the Governor of the State of Illinois to 
     consult with the Mayors of the Village of Elwood, Illinois, 
     and the City of Wilmington, Illinois, in establishing a 
     redevelopment authority to oversee the development of the 
     real property conveyed to the State; and
       (6) clarify the responsibility of the Department of the 
     Army, and other parties to the conveyance, for environmental 
     remediation and restoration of the real property comprising 
     the Joliet Army Ammunition Plant.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      Title XXXI--Department of Energy National Security Programs

     Overview
       The budget request for fiscal year 1996 contained an 
     authorization of $11,178.5 million for the Department of 
     Energy National Security Programs. The House bill would 
     authorize $10,403.6 million. The Senate amendment would 
     authorize $11,178.7 million. The conferees recommended an 
     authorization of $10,618.2 million. The funding level was 
     largely due to a reduced funding in Environmental Restoration 
     and Waste Management. Unless noted explicitly in the 
     statement of managers, all changes are made without 
     prejudice.

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                         legislative provisions

                     legislative provisions adopted

         Subtitle A--National Security Programs Authorizations

     Weapons Activities (sec. 3101)
       The budget request included $3.540 billion for weapons 
     activities. The House bill contained a provision (sec. 3101) 
     that would authorize $3.599 billion for operating expenses, 
     plant projects, and capital equipment for activities 
     necessary to carry out the Department of Energy stockpile 
     stewardship and stockpile management programs.
       The Senate amendment contained a provision (sec. 3101) that 
     would authorize Department of Energy weapons activity funding 
     for fiscal year 1996 in the amount of $3.654 billion.
       The conferees agree to authorize $3.460 billion for weapons 
     activities, a reduction of $80.0 million from the requested 
     amount. This overall net reduction is the result of a $55.7 
     million increase to the requested amount for all authorized 
     weapons activities, combined with $135.6 million in 
     adjustment reductions. The adjustment reductions are 
     primarily based on larger amounts of prior year balances than 
     those proposed in the Department of Energy (DOE) budget 
     request. The $55.7 million increase in weapons activities is 
     necessary to fund the requirements levied on the DOE as a 
     result of the Nuclear Posture Review. The increase is 
     required for two major reasons: to fund a modern stockpile 
     refabrication capacity sized to the requirements of the 
     Nuclear Posture Review and to fund a means to assure 
     confidence in stockpile reliability and safety without full-
     scale, underground nuclear testing. The increase is also 
     appropriate given the historic downward trend in funding for 
     weapons activities (75% from fiscal year 1985 to fiscal year 
     1995).
       The conferees remain concerned about the near-term 
     viability of U.S. strategic deterrence, particularly if the 
     United States refrains from remanufacturing the weapons in 
     the nuclear stockpile with the most efficient fabrication 
     techniques. In relation to the needs of nuclear weapons 
     refabrication and recertification, the conferees recommend 
     that the DOE laboratories and plants enter into appropriate 
     industrial partnerships of mutual benefit.
       The budget request included $1.016 billion for core 
     stockpile stewardship. The conferees agree to authorize 
     $1.078 billion for core stockpile stewardship. The conferees 
     authorize the use of stockpile stewardship funds, as follows: 
     (1) accelerated strategic computing initiative, $40.0 million 
     (2) hydronuclear experiment preparation, $30.0 million; (3) 
     dual revalidation, $10.0 million.
       Of the $150.0 million authorized for a redirected 
     technology transfer program, the conferees recommend the 
     following amounts: (1) advanced design & production 
     technology (ADAPT), $20.0 million; (2) AMTEX, $10.0 million; 
     (3) enhanced stockpile surveillance, $20.0 million; (4) 
     industrial partnerships in direct support of stockpile 
     stewardship program, $25.0 million; (5) industrial 
     partnerships in direct support of stockpile management 
     program, $25.0 million; (6) completion of highest priority 
     CRADA's that remain from fiscal year 1995, $50.0 million.
       The budget request included $1.907 billion for the 
     stockpile management program. The conferees agree to 
     authorize $2.025 billion for the stockpile management 
     program. The conferees authorize the following: (1) 
     manufacturing infrastructure/technology modernization at the 
     four production plants, $143.0 million; (2) fellowship 
     program (four plants), $10.0 million; (3) radiological/
     nuclear accident response, $70.9 million; (4) tritium source, 
     $50.0 million.
       The conferees agree to authorize an additional $118.2 
     million for stockpile management activities. The increase is 
     necessary to remedy weapons refabrication planning 
     deficiencies identified at the DOE production complex. These 
     remedies are required to begin meeting the objectives of the 
     Nuclear Posture Review.
       The conferees recommend that in following fiscal years the 
     Department request the full amount required to meet 
     Department of Defense and programmatic requirements for 
     weapons activities. The conferees find that the DOE Five Year 
     National Security Budget Plan, which assigns major, 
     arbitrary, outyear budget cuts to weapons activities, and to 
     other critical programs within Atomic Energy Defense 
     Activities, does not adequately address the budget 
     requirements necessary to implement the Nuclear Posture 
     Review.
     Environmental restoration and waste management (sec. 3102)
       The budget request included $6.008 billion for 
     environmental restoration and waste management.
       The House bill contained a provision (sec. 3102) that would 
     authorize $5.265 billion for operating expenses, plant 
     projects, and capital equipment for defense environmental 
     restoration and waste management activities.
       The Senate amendment contained a provision (sec. 3102) that 
     would authorize $5.906 billion.
       The conferees authorize $5.557 billion for defense 
     environmental restoration and waste management activities, a 
     reduction of $451.0 million from the request. The reduction 
     would be partially offset by the availability of prior year 
     funds that have not been obligated, or if obligated, have not 
     been expended and would not be needed for the projects that 
     were the basis for obligation.
       The conferees support the recent Department of Energy 
     strategic realignment initiatives, taken in connection with 
     the Department's headquarters functions, to include the 
     consolidation of space, the elimination of duplication 
     between field and headquarters activities, and the reduction 
     of headquarters support service contractors. The conferees 
     direct that funding cuts, to the maximum extent possible, 
     continue to be absorbed through reduction of headquarters 
     personnel and activities. With limited budgets, it is 
     critical that every available dollar be used for actual 
     cleanup activities in the field and that the Department 
     continue its efforts to reduce bureaucratic layers and 
     organizational redundancies at headquarters.
       The conferees understand that the Department has employed 
     support service contractors to perform inherently 
     governmental or core governmental functions at the 
     headquarters level. The conferees direct the Department to 
     discontinue that practice and to transfer savings to field 
     operations. The conferees recognize that in some cases it may 
     be more cost effective to seek outside technical expertise 
     rather than employ permanent government personnel.
       The conferees authorize an additional $60.0 million above 
     the budget request in the environmental restoration sub-
     account to initiate an accelerated cleanup program at sites 
     where such action could result in long-term cost savings to 
     the Department. The conferees intend for the Department to 
     carefully evaluate opportunities for such savings at all 
     Department of Energy sites. Guidelines for selection of sites 
     that are eligible for accelerated cleanup are discussed 
     elsewhere in this report.
       The conferees are particularly concerned about the 
     projected use of several Department of Energy facilities for 
     additional responsibilities with respect to the processing, 
     treatment, and interim storage of foreign and domestic 
     sourced spent fuel rods. Therefore, the conferees direct, 
     elsewhere in this statement of managers, the initiation of 
     several projects to mitigate these effects. The conferees 
     also direct the initiation of the preconstruction design and 
     engineering for dry storage and advanced mixed waste 
     treatment facilities at the Idaho National Engineering 
     Laboratory. In this regard, the conferees agree to authorize 
     additional funding for the spent nuclear fuels canister 
     storage and stabilization facility at Hanford, Washington.
       Prior to, and during conference, the Department submitted 
     to the Congress several separate amendments (additions and 
     deletions) to the list of projects included in the original 
     budget request. Consistent with the amended budget 
     submission, the conferees agree to provide additional funding 
     for certain projects and to delete a number of other 
     projects. Given the lead times associated with budget 
     preparation, the conferees recognize that it is difficult to 
     accurately project the status or requirements for every 
     activity. However, the conferees encourage the Department to 
     refrain from submitting multiple amendments to budget 
     requests during conference.
       In an effort to track carryover balances, the conferees 
     direct the Department to submit a report to the congressional 
     defense committees, contemporaneous with the fiscal year 1997 
     budget request. The report should contain the following: (1) 
     an end of current fiscal year projection of uncosted and 
     unobligated carryover balances; (2) target end of current 
     fiscal year carryover balances, by program, based on a model 
     of the minimum amount necessary for program operations and 
     continuity; (3) a comparison of the differences between the 
     projected and target carryover balances, by program; (4) a 
     justification for the difference between the projected and 
     targeted carryover balances; and (5) the amount of 
     unjustified carryover balances, based on the calculation in 
     (2). The conferees direct the Department to report the 
     carryover balances within the Environmental Restoration and 
     Waste Management Program, and those balances across all 
     Atomic Energy Defense Activities accounts. The conferees 
     believe that unjustified carryover balances should be applied 
     to reduce the Department's budget request for the next fiscal 
     year.
     Other Defense Activities (sec. 3103)
       The budget request included $1.432 billion for Other 
     Defense Activities of the Department of Energy (DOE) for 
     fiscal year 1996. The House bill contained a provision (sec. 
     3104) that would authorize $1.329 billion for Other Defense 
     Activities.
       The Senate amendment contained a provision (sec. 3103) that 
     would authorize $1.408 billion for this group of programs, a 
     decrease of $24.0 million below the requested amount.
       The conferees agree to authorize $1.352 billion for these 
     programs.
       The conferees also direct that the five-year plans for the 
     following activities be provided, not later than January 15, 
     1996, to the congressional defense committees: security 
     investigations; nuclear safeguards and security; nuclear 
     safety; worker and community transition; fissile materials 
     disposition; naval reactors; nonproliferation; and arms 
     control.

                             Naval Reactors

       The conferees urge the Naval Reactors Program to maintain 
     the high health and safety standards that have resulted in 
     both an unprecedented record of safe operation and have 
     become the standard for safe nuclear power operations around 
     the world. 

[[Page H727]]
     The conferees also support the program's continued use of the Advanced 
     Test Reactor (ATR). This facility is completely unique in the 
     United States and is essential to the continuation of the 
     advanced materials subprogram. This subprogram provides 
     experimental data that is the basis for both present safety 
     standards and future power plant designs.

                    Other National Security Programs

                    Nuclear Safeguards and Security

       The conferees believe that the Secretary of Energy should 
     carefully balance investment within the sub-programs of the 
     Nuclear Safeguards and Security Program to safeguard 
     Department of Energy nuclear weapons, nuclear materials, and 
     facilities against theft, sabotage, and terrorist activity. 
     Such a balanced approach should remain the highest priority 
     of the program. The conferees authorize additional funding 
     for declassification activities elsewhere in this statement 
     of managers, but this should not be construed as an 
     indication that the Congress in any way is indifferent to the 
     protection of these DOE properties. In view of the growing 
     severity of domestic and international terrorism, the 
     conferees urge the DOE to take increased steps to safeguard 
     the weapons grade material and weapons under its control.

                   Office of Security Investigations

       As a result of recent major incidents of domestic and 
     international terrorism, the conferees believe that the 
     Office of Security Investigations should determine the need 
     for more frequent reinvestigations of individuals with actual 
     access to weapons grade material. The conferees direct that 
     the Secretary provide the congressional defense committees 
     with a description of the determination rendered, not later 
     than March 30, 1996. The Secretarial submission should 
     include the Department's recommendations and the rationale 
     for the determination. The conferees also recommend a more 
     detailed treatment of any new initiatives and emphases in the 
     fiscal year 1997 budget submission.

                     Office of Security Evaluations

       The conferees believe that the Office of Security 
     Evaluations should reevaluate its present policies, and 
     evaluate and develop new policies and actions, if required, 
     to improve the effectiveness of its program. The conferees 
     direct that the Secretary provide an explanation of the 
     results of this reevaluation to the appropriate congressional 
     defense committees, not later than March 30, 1996. The 
     conferees also recommend a more detailed treatment of the 
     results of its policies in the fiscal year 1997 budget 
     submission.

                        Office of Nuclear Safety

       The conferees believe that the Office of Nuclear Safety 
     should implement the program with an overall cost/benefit 
     analysis applied as a major consideration. That approach 
     would ensure that available resources would be used in a 
     fiscally responsible manner, and provide reductions in 
     significant risks to employees. Resources should not be used 
     to fund marginal improvements that provide minimal safety 
     benefits. The conferees direct the Secretary to implement 
     cost/benefit performance as a criterion for the Office of 
     Nuclear Safety.

                    Worker and Community Transition

       The conferees direct the Worker and Community Transition 
     program to provide more detailed information on the 
     effectiveness of its activities, through the end of fiscal 
     year 1995, in the fiscal year 1997 budget request.

               Fissile Materials Control and Disposition

       The conferees are concerned that the Fissile Materials 
     Control and Disposition Program does not have a wide range of 
     technology and cost effectiveness assessments in its 
     programmatic environmental impact statement (PEIS). Specific 
     direction is provided in this Act to consider a variety of 
     nuclear reactors in this regard. The committees of 
     jurisdiction intend to explore these issues in greater depth 
     with the Department of Energy during future congressional 
     hearings.

                           Emergency Response

       The conferees direct that the funds for the Office of 
     Emergency Response, within the Office of Non-proliferation 
     and National Security, shall be allocated within the Other 
     Defense Programs category, not from within any other part of 
     the Atomic Energy Defense Activities. The conferees further 
     direct that in fiscal year 1997, and subsequent fiscal years, 
     the funding requested for Atomic Energy Defense Activities 
     Program Direction should be allocated separately within each 
     of the four top level categories of that account, and not 
     aggregated within one such category, as was done in the 
     fiscal year 1996 budget request.
     Nonproliferation and verification research and development 
         and arms control
       The budget request included $226.1 million for 
     nonproliferation and verification research and development, 
     and $162.3 million for arms control.
       The House bill would authorize $163.5 million for 
     nonproliferation and verification research and development, a 
     $62.6 million reduction to the budget request; and $147.4 
     million for arms control, a $14.9 million reduction to the 
     budget request.
       The Senate amendment would authorize the budget request.
       The conferees authorize $224.9 million for nonproliferation 
     and verification research and development, consistent with 
     the amended budget request from the Department of Energy, and 
     $161.0 million for arms control.
       Due to the increase in international terrorism and attempts 
     to acquire weapons grade nuclear materials by criminal 
     organizations, the conferees authorize $3.0 million be 
     available from nonproliferation and verification research and 
     development for the development of forensics capability to 
     detect and track shipments abroad. Further, the conferees 
     direct the Secretary of Energy to broaden involvement in this 
     area to include the entire Department of Energy weapons 
     complex, including the Savannah River Site, Pacific Northwest 
     Laboratory, Idaho National Engineering Laboratory, and 
     industry.
       The conferees direct the Secretary of Energy to submit a 
     five-year nonproliferation research and development program 
     plan to Congress by March 30, 1996. The plan shall include a 
     program strategy, description of the program and project 
     objectives, deliverables, and milestones for each project 
     within the program. The plan shall also identify the specific 
     organization customers for each project and subprogram.
       The conferees concur with recommendations in the Senate 
     report (S. Rept. 104-112) that the Department of Energy, in 
     coordination with the International Atomic Energy Agency 
     (IAEA), should conduct a study on nuclear reactor safety 
     issues in the Ukraine and report, with recommendations, to 
     Congress on the safety issues that need to be addressed. The 
     conferees direct that the report be broadened to include 
     nuclear reactors in Russia. However, the conferees agree that 
     funding to conduct a study on nuclear reactor safety study in 
     Ukraine and Russia would more appropriately be funded in the 
     international affairs budget and the civilian nuclear reactor 
     portion of the energy budget, and therefore, no funds are 
     authorized to conduct this study from nonproliferation and 
     verification research and development or any other Atomic 
     Energy Defense Activities account.
     Defense nuclear waste disposal (sec. 3104)
       The budget request included $198.4 million for defense 
     nuclear waste disposal activities of the Department of Energy 
     for fiscal year 1996.
       The House bill contained a provision (sec. 3105) that would 
     authorize $198.4 million for this purpose.
       The Senate amendment contained an identical provision.
       The conference agreement includes a provision that would 
     authorize $248.4 million for defense nuclear waste disposal 
     activities of the Department of Energy for fiscal year 1996.

                Subtitle B--Recurring General Provisions

     Reprogramming (sec. 3121)
       The House bill contained a provision (sec. 3121) that would 
     prohibit the reprogramming of funds in excess of 110 percent 
     of the amount authorized for the program concerned, or in 
     excess of $1.0 million above the amount authorized for the 
     program unless the Secretary of Energy notifies the 
     congressional defense committees and a period of 30 days has 
     elapsed subsequent to the receipt of notification. Should the 
     Department demonstrate that it has improved its procedures 
     for handling reprogramming requests, the Armed Services 
     Committee of the Senate and the National Security Committee 
     of the House would consider a return to a more flexible 
     reprogramming process.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Limits on general plant projects (sec. 3122)
       The House bill contained a provision (sec. 3122) that would 
     limit the initiation of ``general plant projects'' authorized 
     by the bill if the current estimated cost for any project 
     exceeds $2.0 million. However, the provision would require 
     the Secretary of Energy to provide the congressional defense 
     committees with notification and an explanation for a general 
     plant project cost variation that raises the cost of any 
     project above $2.0 million.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Limits on construction projects (sec. 3123)
       The House bill contained a provision (sec. 3123) that would 
     permit initiation and continuation of a Department of Energy 
     construction project if the estimated cost for the project 
     does not exceed 125 percent of the higher of: (1) the funds 
     authorized for the project; or (2) the most recent total 
     estimated cost presented to the Congress as justification for 
     such project. The Secretary of Energy would submit a detailed 
     report to the congressional defense committees for any 
     project that exceeds such limits, and the report would be 
     submitted within the 30 legislative days following a decision 
     to initiate or continue such a project.
       The House provision would also specify that the 125 percent 
     limitation would not apply to any project with an estimated 
     cost below $5.0 million.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Fund transfer authority (sec. 3124)
       The Senate amendment contained a provision (sec. 3124) that 
     would authorize the transfer of Department of Energy funds to 
     other agencies of the government for performance of work for 
     which the funds were 

[[Page H728]]
     authorized and appropriated. The provision would permit another agency 
     to merge the transferred funds with that agency's authorized 
     and appropriated funds.
       The provision would also authorize the Department to 
     transfer funds internally among its appropriations accounts, 
     up to a limit of five percent of the authorized amount.
       The House bill contained a similar provision.
       The House recedes with an amendment that would stipulate 
     that, for any such internal transfers or reprogrammings 
     pursuant to this section, weapons activities shall be 
     regarded by the Department as having higher priority than 
     environmental management activities or other defense 
     activities.
     Authority for conceptual and construction design (sec. 3125)
       The House bill contained a provision (sec. 3125) that would 
     limit the Secretary of Energy's authority to request 
     construction funding until the Secretary has certified a 
     conceptual design. If the cost of the conceptual design 
     exceeds $3.0 million, the Secretary must request the amount 
     from Congress before submitting a request for the 
     construction project. The Secretary may carry out 
     construction design services if their cost is less than $0.6 
     million. Greater costs for construction design would be 
     required to be authorized by law.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Authority for emergency planning, design, and construction 
         activities (sec. 3126)
       The House bill contained a provision (sec. 3126) that would 
     permit the Secretary of Energy to utilize available funds to 
     perform planning and design for any unauthorized Department 
     of Energy national security program construction project 
     based on the Secretary's determination that the design must 
     proceed expeditiously for the protection of public health, 
     safety, and property, or to meet the needs of the national 
     defense.
       The Senate amendment contained a similar provision (sec. 
     3126).
       The Senate recedes.
     Funds available for all national security programs of the 
         Department of Energy (sec. 3127)
       The House bill contained a provision (sec. 3127) that would 
     authorize amounts appropriated for management and support 
     activities and for general plant projects to be made 
     available for use, when necessary, in connection with all 
     national security programs of the Department of Energy.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Availability of funds (sec. 3128)
       The House bill contained a provision (sec. 3128) that would 
     authorize amounts appropriated for operating expenses or for 
     plant and capital equipment to remain available until 
     expended.
       The Senate amendment contained a similar provision.
       The Senate recedes.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

     Authority to conduct a program relating to fissile materials 
         (sec. 3131)
       The House bill contained a provision (sec. 3131) that would 
     authorize the Secretary of Energy to conduct a program to 
     improve fissile material protection, control, and 
     accountability in Russia. The provision would also require 
     notification to the Congress prior to obligation of funds.
       The Senate amendment did not contain a similar provision.
       The Senate recedes with an amendment.
       The conferees agree to a provision that would authorize the 
     Secretary of Energy to conduct a program to improve fissile 
     material protection, control, and accountability in Russia. 
     The provision would also require the Secretary to provide a 
     semi-annual report to Congress on the obligation of funds for 
     the preceding six month period and on the plans for 
     obligation of those funds.
       The conferees direct that each report shall include the 
     following: a forecast of planned expenditures, broken out by 
     major program elements and program achievements; and a 
     description of procedures to ensure that funds are used for 
     the purposes and activities for which they were authorized. 
     The report shall be submitted in classified and unclassified 
     forms.
     National Ignition Facility (sec. 3132)
       The House bill contained a provision (sec. 3132) that would 
     limit the expenditure of funds appropriated for the National 
     Ignition Facility (NIF) until the Secretary of Energy 
     determines that the NIF does not impede U.S. nuclear non-
     proliferation objectives and then notifies the Congress.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     expenditure of construction funds for the NIF until the 
     Secretary makes the determination and notifies the Congress.
     Tritium production program (sec. 3133)
       The House bill contained a provision (sec. 3133a) that 
     would authorize $50.0 million, for a project that would 
     provide a long-term source of tritium, subsequent to the 
     Secretary of Energy's completion of a record of decision on 
     the tritium production program and the conclusion of 
     congressional hearings.
       The Senate amendment contained a provision (sec. 3131) that 
     would authorize $50.0 million to conduct an assessment of 
     various types of reactors and an accelerator. The provision 
     would ensure that any new tritium production facility would 
     be located at the Savannah River Site. It would also 
     authorize $5.0 million from weapons activity funds for 
     tritium target work in reactors.
       The Senate recedes with an amendment that would provide 
     for: $50.0 million to establish a program to provide a 
     tritium production source; $5.0 million for tritium target 
     work to be administered by the Idaho National Engineering 
     Laboratory; a new tritium facility at the Savannah River 
     Site; the Secretary's cost/benefit comparison between 
     performance of the tritium production mission and the fissile 
     materials disposition mission with a single multi-purpose 
     reactor project and performance of these missions with two 
     separate projects; and a long-term tritium production funding 
     plan to Congress within 45 days of enactment of this Act.
       The conferees direct the Secretary of Energy to establish 
     both headquarters and field offices for the national tritium 
     production program within Defense Programs. The conferees 
     direct that these offices be adequately staffed by Federal 
     technical experts in accelerators, reactors, and other 
     relevant areas of science and technology. The conferees 
     further direct that the Savannah River Operations Office be 
     designated as the tritium production field office.
     Payment of penalties assessed against Rocky Flats site (sec. 
         3134)
       The House bill contained a provision (sec. 3103) that would 
     authorize the Secretary of Energy to pay for civil penalties 
     assessed in accordance with a federal facility agreement and 
     consent order against the Rocky Flats site in Colorado.
       The Senate amendment contained a similar provision (sec. 
     3105).
       The Senate recedes.
       As indicated in the Senate report (S. Rept. 104-112), the 
     conferees are concerned about the diversion of Department of 
     Energy funds for payment of fines and penalties. The 
     conferees agree that this is an issue that warrants continued 
     monitoring.
     Fissile materials disposition (sec. 3135)
       The budget request included $70.0 million for the fissile 
     materials disposition program.
       The Senate amendment contained a provision (sec. 3132) that 
     would authorize $70.0 million for the storage and disposition 
     of fissile materials that are excess to U.S. national 
     security needs. Of this amount, $10.0 million would be 
     available for a plutonium resource assessment.
       The House bill contained a provision (sec. 3133(b)) that 
     would authorize $70.0 million for plutonium storage and 
     disposition, including the multipurpose advanced light water 
     reactor. Of that amount, $5.0 million would be available for 
     evaluating the conversion of plutonium to oxide fuel material 
     for the multipurpose reactor. Sufficient funds would also be 
     made available to fully assess the multipurpose reactor in 
     the Department of Energy's (DOE's) programmatic environmental 
     impact statement on fissile materials disposition.
       The Senate recedes with an amendment.
       The conferees authorize $70.0 million be made available for 
     evaluation and implementation of interim- and long-term 
     storage and disposition of plutonium, highly enriched 
     uranium, and other fissile materials that are excess to the 
     national security needs of the U.S. The conferees direct that 
     the evaluation include full consideration of light water and 
     gas turbine reactors. The conferees further direct that 
     sufficient funds be made available for the complete 
     consideration of multipurpose reactors in the DOE 
     programmatic environmental impact statement on fissile 
     materials disposition. The conferees endorse the views 
     expressed in the House Report (H. Rept. 104-131) regarding 
     the National Resource Center for Plutonium.
     Tritium recycling (sec. 3136)
       The Senate amendment contained a provision (sec. 3133) that 
     would require Department of Energy weapons program tritium 
     recycling to be carried out at the Savannah River Site. The 
     Senate provision would allow the Los Alamos National 
     Laboratory to conduct the following activities related to 
     tritium: (1) research on tritium properties; (2) inertial 
     confinement fusion tritium research; (3) technical assistance 
     for the Savannah River Site regarding the weapons 
     surveillance program, as directed by the Savannah River Site 
     Office. Except as noted above, the Savannah River Site Office 
     and its on-site contractor would be responsible for all 
     tritium-related national security activities of the U.S. 
     Department of Energy.
       The House bill contained no similar provision.
       The House recedes.
     Manufacturing infrastructure for refabrication and 
         certification of nuclear weapons stockpile (sec. 3137)
       The Senate amendment included a provision (sec. 3134) that 
     would authorize $143.0 million to carry out a program to meet 
     the manufacturing infrastructure requirements of the 
     President's Nuclear Posture Review through near-term 
     modernization of technology at the four production plants 
     cited in this section.
       The House bill contained no similar provision.
       The House recedes with an amendment. The conferees require 
     that this initiative provide for enhanced stockpile 
     surveillance, advanced manufacturing, and core stockpile 

[[Page H729]]
     management activities at these plants. This requirement includes 
     fundamental initiatives in advanced manufacturing, and 
     additional emphasis on advanced computerized manufacturing 
     and revalidation techniques at these plants. The conferees 
     direct the Secretary of Energy to ensure that requirements 
     for primary pit refabrication are addressed in the on-going 
     Programmatic Environmental Impact Statement (PEIS) on 
     Stockpile Stewardship and Management. Should it be 
     determined, based on the PEIS, that there is a need for such 
     a capacity, the conferees require the Secretary to undertake 
     a conceptual design study of an appropriately sized weapon 
     primary pit refabrication, manufacturing and reuse facility 
     and to consider the Savannah River Site for that role. Up to 
     $5.0 million would be available for this study from the 
     stockpile management program resources.
       The conferees direct the Secretary to treat this initiative 
     as a high weapons activity program priority with new budget 
     authority. Further, the conferees authorize $118.2 million 
     above the DOE Stockpile Management budget request to pursue 
     this initiative in fiscal year 1996 at the four production 
     plants, without an impact on the current planned program 
     activities at these plants. The conferees further direct that 
     the remaining $24.8 million required for this initiative be 
     made available from core stockpile management, 
     reconfiguration and materials surveillance funds. The 
     conferees recommend that the rate of expenditure for this 
     initiative at each plant be proportionate to the plant's 
     allocation of the entire initiative.
     Hydronuclear experiments (sec. 3138)
       The Senate amendment contained a provision (sec. 3135) that 
     would authorize $50.0 million in fiscal year 1996 to prepare 
     the Nevada Test Site for hydronuclear experiments that would 
     yield four pounds (TNT equivalent) or less. The experiments 
     would be conducted to maintain confidence in the safety and 
     reliability of the nuclear weapons stockpile. Zero yield 
     experiments could be included in the fiscal year 1996 
     experiments as part of the test site preparation.
       The House bill contained no similar provision.
       The House recedes with an amendment providing $30.0 million 
     for such purposes.
     Limitation on authority to conduct hydronculear tests (sec. 
         3139)
       The Senate amendment contained a provision (sec. 3108) that 
     would limit this Act by confirming that nothing in this Act 
     authorizes hydronuclear tests and that nothing in this Act 
     amends or repeals the Exon-Hatfield Amendment (section 507 of 
     Public Law 102-377) which places limitations on U.S. nuclear 
     testing.
       The House bill contained no similar provision.
       The House recedes with an amendment.
     Fellowship program for development of skills critical to the 
         Department of Energy nuclear weapons complex (sec. 3140)
       The Senate amendment contained a provision (sec. 3136) that 
     would provide $10.0 million from Stockpile Management funds 
     to begin a science and engineering fellowship program for the 
     Pantex Plant, the Kansas City Plant, the Savannah River Site 
     and the Y-12 Plant. The program would provide educational and 
     research assistance to attract scientists and engineers with 
     the skills most relevant to plant employment opportunities 
     and mission requirements.
       The House bill contained no similar provision.
       The House recedes.
     Limitation on use of funds for certain research and 
         development purposes (sec. 3141)
       The Senate amendment contained a provision (sec. 3138) that 
     would limit the obligation of fiscal year 1996 Atomic Energy 
     Defense Activity funds for the Department of Energy 
     laboratory directed research and development (LDRD) program 
     and the Department of Energy technology transfer programs, 
     unless such activities support the national security missions 
     of the Department.
       The House bill contained no similar provision.
       The House recedes.
       The conferees believe the scientific and engineering 
     challenges embodied in the emerging stockpile stewardship and 
     stockpile management programs are more than sufficient to 
     maintain the laboratories' preeminence in science and 
     engineering. Therefore, the laboratories should expeditiously 
     begin to focus the program resources on the pressing needs of 
     the nuclear weapons program.
     Processing and treatment of high level nuclear waste and 
         spent nuclear fuel rods (sec. 3142)
       The Senate amendment contained a provision (sec. 3139) that 
     would recommend $2.5 million for the electrometallurgical 
     processing activities at the Idaho National Engineering 
     Laboratory. This amendment would also recommend $45.0 million 
     to develop technologies for the processing of spent fuel rods 
     at the Savannah River Site and at the Idaho National 
     Engineering Laboratory.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     $45.0 million for the development of a program to respond 
     effectively to the new management requirements for spent 
     fuel. These new requirements are the result of a decision set 
     forth in the Department of Energy's Record of Decision, dated 
     May 30, 1995, prepared in relation to the Department's spent 
     nuclear fuel management program. That decision provided for 
     the consolidation at the Savannah River Site and at the Idaho 
     National Engineering Laboratory of spent nuclear fuel that 
     has been transported from various sites in the United States, 
     spent fuel from naval reactors, and spent fuel from foreign 
     reactors. The conferees authorize $30.0 million for the 
     Savannah River Site for the development of a program for the 
     processing and interim storage of aluminum clad spent fuel 
     rods and foreign spent fuel rods. The conferees authorize 
     $15.0 million for the Idaho National Engineering Laboratory 
     for a similar program for nonaluminum clad spent fuel rods, 
     foreign spent fuel rods, and naval spent fuel. The conferees 
     require the Secretary of Energy to submit to Congress a 
     detailed five-year implementation plan that would provide 
     cost estimates, completion dates, and technological 
     requirements for completion of the program.
       The conferees also authorize, from technology development 
     program funds within Environmental Restoration and Waste 
     Management, $25.0 million for the development of 
     electrometallurgical waste treatment technologies at the 
     Argonne National Laboratory.
     Protection of workers at nuclear weapons facilities (sec. 
         3143)
       The Senate amendment contained a provision (sec. 3142) that 
     would authorize $10.0 million from the operations and 
     maintenance resources of the Environmental Restoration and 
     Waste Management Program to carry out activities related to 
     worker protection at nuclear weapons facilities.
       The House bill contained no similar provision.
       The House recedes.
     Department of Energy declassification productivity initiative 
         (sec. 3144)
       The budget request did not identify funding for the 
     Declassification Productivity Initiative that began in fiscal 
     year 1995.
       The Senate amendment contained a provision (sec. 3140) that 
     would authorize $3.0 million from other national security 
     programs for the Declassification Productivity Initiative 
     (DPI) at the Department of Energy.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that Executive Order 12958, signed by 
     the President on April 9, 1995, mandates that millions of 
     classified documents be declassified by the year 2000. While 
     it remains paramount that the Department maintain the 
     integrity of its national security information, the conferees 
     agree that substantial savings can be realized by reducing 
     the volumes of unduly classified documents, and by modifying 
     unnecessary and overly-burdensome classification policies. 
     The conferees authorize $3.0 million for the DPI and 
     recommend that the Department request appropriate funding for 
     the initiative in future budget submissions.

                       Subtitle D--Other Matters

     Report on foreign tritium purchases (sec. 3151)
       The House bill contained a provision (sec. 3141) that would 
     require the President to submit a report to Congress by 
     February, 1996, on the feasibility, cost, and ramifications 
     of purchasing tritium for the nuclear weapons program from 
     foreign suppliers.
       The Senate amendment contained a similar provision (sec. 
     3163) that would require the President to submit the same 
     report to the congressional defense committees by May 30, 
     1997.
       The Senate recedes with an amendment that would require the 
     report by May 1, 1996.
     Study on nuclear test readiness postures (sec. 3152)
       The House bill contained a provision (sec. 3142) that would 
     require the Secretary of Energy to submit a report to 
     Congress by February 15, 1996. The report would address cost 
     and other issues related to the Department of Energy's 
     capability to conduct underground nuclear testing within 6 
     months, 18 months, and 36 months from the date that the 
     President determines that such testing is necessary to ensure 
     the national security of the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Master plan for the certification, stewardship, and 
         management of warheads in the nuclear weapons stockpile 
         (sec. 3153)
       The House bill contained a provision (sec. 3143) that would 
     require the Secretary of Defense, in consultation with the 
     Secretary of Energy, to submit a plan to Congress that would 
     describe in detail the proposed means of demonstrating the 
     capability to refabricate and certify old warheads and to 
     design and build new warheads. The provision would require 
     submission of the report not later than March 15, 1996.
       The Senate amendment contained a provision (sec. 3165) that 
     would require the Secretary of Energy to produce, by March 
     15, 1996, and every year thereafter, a plan for maintaining 
     the enduring nuclear weapons stockpile. That plan would 
     involve at least six specific elements, to include a plan for 
     the manufacturing infrastructure, necessary to maintain the 
     nuclear weapons stockpile stewardship and management 
     programs.
       The House recedes with an amendment that would explicitly 
     incorporate the requirements of the House provision into the 
     manufacturing infrastructure requirements section of the 
     Senate provision. Both sets of requirements are based on the 
     Department of Energy infrastructure requirements section of 
     the Nuclear Posture Review.
     
[[Page H730]]

     Prohibition on international inspections of Department of 
         Energy facilities unless protection of restricted data is 
         certified (sec. 3154)
       The House bill included a provision (sec. 3144) that would 
     prohibit international inspections of Department of Energy 
     facilities unless the Secretary of Energy certifies that 
     sensitive and/or restricted data has been adequately 
     safeguarded.
       The Senate amendment did not contain a similar provision.
       The Senate recedes with an amendment.
       The conferees agree to a provision that would prohibit an 
     inspection of a nuclear weapons facility by the International 
     Atomic Energy Agency (IAEA) until the Secretary of Energy 
     certifies to Congress that no restricted data would be 
     revealed during the inspection.
       The conferees direct the Secretary to ensure that the 
     certification to Congress is made prior to the inspection. If 
     the Secretary of Energy cannot provide certification in 
     advance of an inspection because of a short-notice (24-hour) 
     request, the Secretary shall provide certification no later 
     than seven days after the inspection has been conducted. The 
     certification shall also describe the steps taken by the 
     Secretary to ensure the protection of the restricted data 
     during the inspection.
     Review of certain documents before declassification and 
         release (sec. 3155)
       The conference agreement includes this provision to 
     strongly urge the President to immediately review and revise 
     Executive Order 12958, which provides for the automatic 
     declassification and public release of documents containing 
     National Security Information within five years, regardless 
     of prior review. Included under this order are Department of 
     Energy documents that potentially contain restricted data on 
     nuclear weapons design, production and testing, and 
     Department of Defense documents that potentially contain 
     information on nuclear weapons operations and support. 
     Automatic declassification thereby creates the risk of 
     releasing nuclear weapons information to potential 
     proliferators. This would constitute a grave risk to U.S. 
     national security and to non-proliferation efforts.
       The conferees believe that the automatic declassification 
     of national security records that contain restricted data 
     would constitute a violation of the legal protections for 
     restricted data, mandated by the Atomic Energy Act of 1954, 
     as amended. The conferees recognize that the Executive Order 
     provides an exemption for the automatic declassification of 
     restricted data. However, the conferees are concerned that 
     some classified documents may contain restricted data 
     information without reflecting that fact on the 
     classification records. Therefore, there is no practical 
     means to ensure the protection of restricted data and apply 
     an automatic declassification system.
     Accelerated schedule for environmental management activities 
         (sec. 3156)
       The House bill contained a provision (sec. 3145) that would 
     permit the Secretary of Energy to accelerate the schedule for 
     environmental management activities and projects for any 
     specific Department of Energy defense nuclear facility site, 
     if such efforts would yield substantial long-term cost 
     savings and speed up the release of land for development.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment. The amended 
     provision would require the Secretary of Energy to submit a 
     report to Congress by May 1, 1996 regarding site selection 
     for the accelerated program.
     Sense of Congress on certain environmental restoration 
         requirements (sec. 3157)
       The Senate amendment contained a provision (sec. 3107) that 
     would express the sense of Congress that individuals in the 
     executive branch should not be held personally liable for 
     failure to comply with an environmental cleanup requirement 
     when the failure to comply is due to congressional 
     appropriations decisions.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees agree that no individual acting within the 
     scope of employment with a Federal agency or department 
     should be personally subject to civil or criminal sanctions 
     for any failure to comply with an environmental cleanup 
     requirement that is the result of inadequate funding.
     Responsibility for defense programs emergency response 
         program (sec. 3158)
       The Senate amendment contained a provision (sec. 3161) that 
     would require the Assistant Secretary of Energy for Defense 
     Programs to retain the responsibility for the Defense 
     Programs Radiological/Nuclear Accident Response Program. That 
     program includes the seven emergency response assets needed 
     to carry out the mission: the Aerial Measuring System; the 
     Atmospheric Release Advisory Capability; the Accident 
     Response Group; the Federal Radiological Monitoring and 
     Assessment Center; the Nuclear Emergency Search Team; the 
     Radiological Assistance Program; and the Radiation Emergency 
     Assistance Center/Training Site.
       The House bill contained no similar provision.
       The House recedes.
     Requirements for Department of Energy weapons activities 
         budgets for fiscal years after fiscal year 1996 (sec. 
         3159)
       The Senate amendment contained a provision (sec. 3162) that 
     would require the Department of Energy (DOE) to remedy past 
     and present items of congressional criticism related to the 
     clarity of the Department's budget submission. The Senate 
     provision would require the Department to explicitly relate 
     its budget submission to the requirements of the Nuclear 
     Posture Review.
       The House bill contained no similar provision.
       The House recedes.
     Report on hydronuclear testing (sec. 3160)
       The Senate amendment contained a provision (sec. 3164) that 
     would require the Secretary of Energy to direct the Los 
     Alamos and Lawrence Livermore National Laboratories to 
     prepare a report that would assess the advantages and 
     disadvantages of permitting alternative limits for nuclear 
     test yields, from at least four pounds to 20 tons, as related 
     to the safety and reliability of the nuclear weapons 
     stockpile. In addition to the yields explicitly cited, the 
     report would address other yields, as appropriate, but would 
     remain focused on the advantages and disadvantages of sub-
     kiloton testing, as related to stockpile safety and 
     reliability.
       The House bill contained no similar provision.
       The House recedes with an amendment that adjusts the 
     nuclear test yields of interest.
     Applicability of Atomic Energy Community Act of 1955 to Los 
         Alamos, New Mexico (sec. 3161)
       The Senate amendment contained a provision (sec. 3166) that 
     would amend and specify certain requirements of the Atomic 
     Energy Community Act of 1955 for the community of Los Alamos, 
     New Mexico.
       The House bill contained no similar provision.
       The House recedes.
     Sense of Congress regarding shipments of spent nuclear fuel 
         (sec. 3162)
       The Senate amendment contained a provision (sec. 3167) that 
     would express a sense of the Senate that the Secretary of 
     Defense, the Secretary of Energy, and the Governor of the 
     State of Idaho should continue good faith negotiations for 
     the purpose of reaching an agreement on the issue of 
     shipments of spent nuclear fuel from naval reactors.
       The House bill included no similar provision.
       The House recedes with an amendment that would express the 
     sense of Congress that: (1) the Congress recognizes the need 
     to implement the terms, conditions, rights, and obligations 
     contained in the settlement agreement reached between the 
     United States and the State of Idaho regarding shipment, 
     examination, and storage of naval spent nuclear fuel at 
     Idaho; and (2) that funds requested by the President to carry 
     out the settlement agreement and consent order should be 
     appropriated for that purpose.


                   legislative provisions not adopted

     Education program for personnel critical to the nuclear 
         weapons complex
       The Senate amendment contained a provision (sec. 3137) that 
     would authorize $10.0 million from the Stockpile Stewardship 
     Program to conduct an education program designed to establish 
     a long-term supply of personnel with skills critical to the 
     nuclear weapons complex. The program would: (1) encourage and 
     assist students in the study of science, mathematics, and 
     engineering; (2) enhance teaching skills in critical areas; 
     and (3) increase scientific understanding of the general 
     public.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize $10.0 million from the 
     Stockpile Stewardship Program. The conferees note that 
     because existing legislation authorizes such activities, up 
     to $10.0 million would be authorized for this purpose, 
     without a separate authorization provision.
     Applicability of Atomic Energy Community Act of 1955 to Los 
         Alamos, New Mexico (sec. 3161)
       The Senate amendment contained a provision (sec. 3166) that 
     would amend and specify certain requirements of the Atomic 
     Energy Community Act of 1955 for the community of Los Alamos, 
     New Mexico.
       The House bill contained no similar provision.
       The House recedes.
     Authority to reprogram funds for disposition of certain spent 
         nuclear fuel
       The Senate amendment contained a provision (sec. 3141) that 
     would authorize the Secretary of Energy to reprogram up to 
     $5.0 million in fiscal year 1996 funds available to the 
     Department for the disposition of spent nuclear fuel in the 
     Democratic People's Republic of Korea (DPRK), in order to 
     meet International Atomic Energy Agency (IAEA) safeguard 
     standards and fulfill the October 21, 1994 agreement between 
     the United States and the DPRK.
       The House bill did not contain a similar provision.
       The Senate recedes.
       In order to meet International Atomic Energy Agency 
     safeguard standards and fulfill the October 21, 1994 
     agreement between the United States and the DPRK, the 
     conferees recommend $3.6 million for the disposition of 

[[Page H731]]
     spent nuclear fuel. In authorizing these funds, the conferees make no 
     judgment regarding the merits of the October 1994 agreement.

          Title XXXII--Defense Nuclear Facilities Safety Board


                         legislative provisions

                     legislative provisions adopted

     Authorization (sec. 3201)
       The House bill contained a provision (sec. 3201) that would 
     authorize $17.0 million for the Defense Nuclear Facilities 
     Safety Board.
       The Senate amendment contained an identical provision (sec. 
     3201).
       the conferees recommend $17.0 million for the Board.

                Title XXXIII--National Defense Stockpile


                         legislative provisions

                     legislative provisions adopted

        Subtitle A--Authorization of Disposals and Use of Funds

     Disposal of chromite and manganese ores and chromium ferro 
         and manganese metal electrolytic (sec. 3303)
       The House bill contained a provision (sec. 3302) that would 
     require the granting of right of first refusal to domestic 
     ferroalloy upgraders, for certain disposals.
       The Senate amendment contained a similar provision (sec. 
     3403).
       The House recedes with a technical amendment regarding the 
     definition of a domestic ferroalloy upgrader.
     Restrictions on disposal of manganese ferro (sec. 3304)
       The House bill contained a provision (sec. 3303) that would 
     require that certain grade manganese ferro not be disposed of 
     from the National Defense Stockpile until the disposal of 
     lower grade inventory material had been completed. The 
     provision would also require that certain grade manganese 
     ferro only be sold for remelting in a submerged arc 
     ferromanganese furnace.
       The Senate amendment contained a similar provision (sec. 
     3404) that would require certain grade manganese ferro to be 
     sold only for remelting by a domestic ferroalloy producer.
       The House recedes.
     Titanium initiative to support battle tank upgrade program 
         (sec. 3305)
       The House bill contained a provision (sec. 3304) that would 
     direct the transfer of titanium sponge from the National 
     Defense Stockpile to the Army for use in the weight reduction 
     portion of the main battle tank upgrade program. The transfer 
     would be without cost to the Army, except for transportation 
     and similar costs.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                    Subtitle B--Programmatic Change

     Transfer of excess defense-related materials to stockpile for 
         disposal (sec. 3311)
       The Senate amendment contained a provision (sec. 3405) that 
     would direct the transfer of suitable, uncontaminated 
     Department of Energy inventory items to the National Defense 
     Stockpile for disposal.
       The House bill contains no similar provision.
       The House recedes.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Disposal of obsolete and excess materials contained in the 
         National Defense Stockpile
       The Senate amendment contained a provision (sec. 3402) that 
     would authorize the disposal of materials from the National 
     Defense Stockpile.
       The House bill contained no similar provision.
       The Senate recedes.
       The defense committees and the conferees have recommended 
     that new disposal authority be granted in the reconciliation 
     process, rather than authorization.

                 Title XXXIV--Naval Petroleum Reserves


                         legislative provisions

                     legislative provisions adopted

         Subtitle A--Administration of Naval Petroleum Reserves

     Authorization of appropriations (sec. 3401)
       The House bill contained a provision (sec. 3401) that would 
     authorize fiscal year 1996 appropriations for the operation 
     of the Naval Petroleum Reserves.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Price requirement on sale of certain petroleum during fiscal 
         year 1996 (sec. 3402)
       The House bill contained a provision (sec. 3402) that would 
     require that the sale of any oil produced at the Naval 
     Petroleum Reserves be transacted for a price that is not less 
     than 90 percent of the sales price of comparable petroleum 
     from the same area, as estimated by the Secretary of Energy.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Extension of operating contract for naval petroleum reserve 
         numbered 1. (sec. 3403)
       The conference agreement contains a provision which amends 
     Section 3503 of the National Defense Authorization Act of 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3111) to 
     extend the Department of Energy's authority to operate the 
     Naval Petroleum Reserve Numbered 1.

              Subtitle B--Sale of Naval Petroleum Reserve

     Future of Naval Petroleum and Oil Shale Reserves (secs. 3411-
         3416)
       The House bill contained a provision (sec. 3403) that would 
     provide for the sale of the Naval Petroleum Reserve Numbered 
     1 (NPR-1), also known as Elk Hills located in Kern County, 
     California. The House bill also contained a provision (sec. 
     3404) that would require the Secretary of Energy to conduct a 
     study to determine what should be done with the other five 
     remaining reserves in the Naval Petroleum and Oil Shale 
     Reserves.
       The Senate amendment contained similar provisions (secs. 
     3301 and 3302).
       The conference agreement includes several provisions 
     related to the future of the Naval Petroleum and Oil Shale 
     Reserves that would provide for the sale of NPR-1 by 
     competitive bid within two years of enactment. The agreement 
     would also require the Secretary of Energy to submit a report 
     that would recommend a course of action that would maximize 
     the value of the five remaining reserves to the federal 
     government.
       The conferees believe that the sale of NPR-1 can be 
     justified based on the fact that there is no longer a 
     military need for these reserves. Since the Arab oil embargo, 
     the likelihood of a sustained interruption in supply has 
     fallen and the market has shown itself to be responsive in 
     pricing and allocating oil during periods of uncertain 
     supply.
       In addition, the conferees are concerned about the long-
     term implications of government participation in what has 
     become a commercial oil business. The conferees believe that 
     producing and selling oil and natural gas should be performed 
     within the private sector. That belief is shared by the 
     administration which also proposed the sale of the reserve.
       The sale of NPR-1 will help save the federal government 
     over a billion dollars in operating costs and several hundred 
     million dollars in interest payments. These savings are in 
     addition to the increased tax revenues and the $1.5 to $2.5 
     billion in receipts that will result from the sale. Even 
     after deducting the lost annual revenues resulting from the 
     sale, these savings and receipts will result in a substantial 
     net increase to the Treasury.
       The conference agreement contains a number of safeguards so 
     that the sale of NPR-1 will ensure the government realizes 
     the maximum amount of revenues possible. The provisions would 
     require the Secretary of Energy to obtain credible appraisals 
     of the value of the reserve before setting a minimum 
     acceptable sales price. In addition, the valuation must 
     include all existing infrastructure, the estimated quantity 
     of petroleum and natural gas in the reserve, and the 
     anticipated revenue stream that the Treasury would receive if 
     the reserve was not sold. The Secretary could not accept bids 
     lower than the minimum acceptable price and could not enter 
     into contracts for sale until the end of a 31-day period 
     following notification to Congress. The proceeds from the 
     sale would be deposited in the Treasury.
       In addition, if the Secretary of Energy and the Director of 
     the Office of Management and Budget jointly determine that 
     the sale of NPR-1 is proceeding in a manner that is 
     inconsistent with the best interests of the United States, 
     the Secretary may suspend the sale. The Secretary must then 
     wait for further legislation authorizing the continuation of 
     the sale. The conferees believe the Secretary should suspend 
     the sale only after all efforts have been made to ameliorate 
     any difficulties in the sale of the reserve.
       In the event the Secretary is not able to comply with the 
     deadlines included in these provisions, the Secretary and the 
     Director of the OMB would be required to notify Congress and 
     submit a plan of alternative action.
       The conference agreement provides for the transfer of a 
     current environmental permit (50 CFR 13.25) in order to allow 
     the purchaser to continue the operation of the field with all 
     the environmental safeguards provided by the federal 
     government. In addition, the conferees expect that this will 
     ensure that the value of the field will not be diminished by 
     the uncertain timing of obtaining a new permit.
       In response to a potential legal claim by the State of 
     California, on behalf of the California State Teachers 
     Retirement Fund, the provisions would set aside nine percent 
     of the net proceeds in a contingent fund. These funds would 
     be available, subject to appropriations, for the payment of 
     any valid claims resulting from a settlement between the 
     Secretary of Energy and the State of California or a 
     judgement by a court of competent jurisdiction. The conferees 
     expect that California's release of its claim would be 
     contingent upon an appropriation of funds per any settlement 
     agreement or court decision.

                  Title XXXV--Panama Canal Commission


                         legislative provisions

                     legislative provisions adopted

     Panama Canal Commission (Title XXXV)
       The House call contained several provisions (secs. 3501-
     3503) that would provide the authorization of expenditures 
     for the Panama Canal Commission revolving fund.
       The Senate amendment contained similar provisions (secs. 
     3501-3502).
       The Panama Canal Commission does not draw from U.S. 
     taxpayer funds for operation of the Canal, but operates on a 
     self-sustaining basis, utilizing tolls and other revenues to 
     cover its operating, administrative, and 

[[Page H732]]
     capital improvements expenses. The Senate amendment would provide for 
     slightly greater allowances for official representation 
     expenses than the House bill. The Senate amendment would also 
     limit the cost of vehicles purchased for use by the 
     Commission. The House bill contained a requirement that the 
     vehicles be built in the United States.
       The House recedes on these items. However, the conferees 
     note that the Commission has in the past purchased vehicles 
     built in the United States and would encourage that practice 
     to continue.
       The House bill included additional provisions (secs. 3521-
     3531), not in the Senate amendment, that would facilitate the 
     transition and the operation of the Canal as an autonomous 
     entity after it is transferred to Panama at the end of 1999. 
     Section 3522 of the National Defense Authorization Act for 
     Fiscal Year 1993 (Public Law 102-484) required that the 
     President review and report on possible changes that would 
     ease the transition process. The legislative provisions 
     contained in sections 3521-3531 of the House bill would 
     implement, with only minor clarifying changes, the 
     administration's recommendations contained in the report 
     transmitted to the Congress on April 12, 1994.
       The Senate recedes with an amendment that would delete 
     section 3524 of the House bill entitled ``International 
     Advisors''.
       The conferees agree that the Canal's governing board of 
     supervisors can consult with and obtain expert advice from 
     those in the international shipping and financial community 
     without the necessity of a legislative provision.

                 Division D--Federal Acquisition Reform


                         legislative provisions

                     legislative provisions adopted

     Overview
       Acquisition reform provisions with government-wide 
     application were included in title VIII of the House bill. 
     Subsequently, the House passed H.R. 1670, a freestanding bill 
     which addressed many of the same, as well as, other issues. 
     The Senate amendment contained a number of acquisition policy 
     provisions. The conferees considered all of these provisions 
     before agreeing to include the following legislation in the 
     conference agreement. The following is a section-by-section 
     description of the provisions adopted by the conferees.

                         Title XLI--Competition

     Efficient competition (sec. 4101)
       The conference agreement includes a provision that would 
     amend section 2304 of title 10 and section 253 of title 41. 
     United States Code. The provision would direct that the 
     Federal Acquisition Regulation ensure that the requirement to 
     obtain full and open competition is implemented in a manner 
     that is consistent with the need to efficiently fulfill the 
     government's requirements. This provision makes no change to 
     the requirement for full and open competition or to the 
     definition of full and open competition.
     Efficient approval procedures (sec. 4102)
       The conference agreement includes a provision that would 
     amend section 2304 of title 10 and section 253 of title 41, 
     United States Code, by raising the dollar thresholds for 
     contracts that require the approval of the use of other than 
     competitive procedures by higher level agency officials.
     Efficient competitive range determinations (sec. 4103)
       The conference agreement includes a provision that would 
     allow a contracting officer, in procurements involving 
     competitive negotiations, to limit the number of proposals in 
     the competitive range to the greatest number that would 
     permit an efficient competition among the most highly rated 
     competitors. The conferees intend that the determination of 
     the competitive range be made after the initial evaluation of 
     the proposals, on the basis of the rating of those proposals. 
     The rating shall be made on the basis of price, quality and 
     other factors specified in the solicitation for the 
     evaluation of the proposals.
     Preaward debriefings (sec. 4104)
       The conference agreement includes a provision that would 
     require that, prior to a contract award, a contracting 
     officer provide a debriefing to any interested offerors on 
     the reasons for that offeror's exclusion from the competitive 
     range in a competitive negotiation. The provision would 
     specify information that must be provided to an unsuccessful 
     offeror upon written request for a debriefing, as well as 
     limitations on the types of information that may be provided. 
     The provision also would require the Federal Acquisition 
     Regulation to include a provision encouraging the use of 
     alternative dispute resolution techniques to provide 
     informal, expeditious, and inexpensive procedures for an 
     offeror to consider using before filing a protest.
     Design-build selection procedures (sec. 4105)
       The conference agreement includes a provision that would 
     authorize the use of two-phase selection procedures for 
     entering into contracts for the design and construction of a 
     public building, facility, or work. The provision details the 
     considerations that would be used by a contracting officer to 
     determine whether to use two-phase selection procedures and 
     describes the process to be followed under the two-phase 
     selection procedure. The provision would also limit the 
     number of proposals to be considered in the second phase to 
     no more than five, unless the agency determines that a 
     greater number is in the government's interest. This 
     provision is not intended to modify the Brooks Architect-
     Engineers Act.

                      Title XLII--Commercial Items

     Commercial item exception to requirement for cost or pricing 
         data (sec. 4201)
       The conference agreement includes a provision that would 
     amend section 2306a of title 10 and section 254b of title 41, 
     United States Code, to exempt suppliers of commercial items 
     under contracts and subcontracts with federal agencies from 
     the requirement to submit certified cost and pricing data. 
     The provision would include the requirement that, in the 
     cases of such contracts or subcontracts, contracting officers 
     shall require the submission of data other than certified 
     cost or pricing data to the extent necessary to determine 
     price reasonableness. In recognition of the authority of the 
     General Accounting Office to audit contractor records, the 
     conferees have removed the specific audit authorities in the 
     Federal Acquisition Streamlining Act of 1994 (Public Law 103-
     355) that relate to information supplied by commercial 
     suppliers in lieu of certified cost and pricing data.
     Application of simplified procedures to certain commercial 
         items (sec. 4202)
       The conference agreement includes a provision that would 
     allow the use of simplified procedures for the acquisition of 
     commercial items with a purchase value of $5.0 million or 
     less when a contracting officer reasonably expects that 
     offers in response to a solicitation would only include 
     commercial items. The provision would specify that 
     implementing regulations provide that all responsible 
     offerors in procurements conducted under this authority be 
     permitted to submit a bid, proposal, or quotation that shall 
     be considered by the agency. The conferees intend that the 
     flexible notice provision be implemented in a manner that 
     would provide offerors with a reasonable opportunity to 
     respond. The provision would also prohibit sole source 
     procurement unless the need is justified in writing in 
     accordance with section 2304 of title 10 or section 253 of 
     title 41, United States Code. The authority for the use of 
     simplified procedures under this section would expire at the 
     end of the three-year period, beginning on the date of the 
     issuance of the final implementing regulations.
     Inapplicability of certain procurement laws to commercially 
         available off-the-shelf items (sec. 4203)
       The conference agreement includes a provision that would 
     require that the Federal Acquisition Regulation include a 
     list of provisions that are inapplicable to contracts for the 
     procurement of commercially available off-the-shelf items. 
     The list would be required to include each provision of law 
     that, in the opinion of the Administrator of the Office of 
     Federal Procurement Policy, imposes on persons who have been 
     awarded contracts by the federal government for the 
     procurement of commercially available off-the-shelf products 
     government-unique policies, procedures, requirements, or 
     restrictions for the procurement of property or services 
     unless the Administrator determines that to do so would not 
     be in the best interest of the United States. The list would 
     include provisions of law uniquely applicable to government 
     contractors, but would not include generally applicable 
     provisions of law. The provision would specifically preclude 
     several categories of statutes from being included on the 
     list, such as any provision of law that provides for civil or 
     criminal penalties. The provision would define commercially 
     available off-the-shelf items as commercial items that are 
     sold in substantial quantities to the general public and that 
     are offered to the federal government in the same form in 
     which they have been sold to the general public. The 
     provision would specifically exclude from that definition 
     bulk cargo such as agricultural products and petroleum 
     products.
     Amendment to commercial items definition (sec. 4204)
       The conference agreement includes a provision that would 
     make a clarifying amendment to the definition of ``commercial 
     services'' in section 403(12)(F) of title 41, United States 
     Code. For the purpose of this section, market prices are 
     current prices that are established in the course of ordinary 
     trade between buyers and sellers free to bargain and that can 
     be substantiated from sources independent of the offeror.
     Inapplicability of cost accounting standards to contracts and 
         subcontracts for commercial items (sec. 4205)
       The conference agreement includes a provision that would 
     exempt contracts and subcontracts for commercial items from 
     the application of the cost accounting standards promulgated 
     under section 422 of title 41, United States Code. The Cost 
     Accounting Standards Board, in consultation with the Director 
     of the Defense Contract Audit Agency, shall establish 
     guidance, consistent with commercial accounting systems and 
     practices, to ensure that contractors appropriately assign 
     costs to contracts (other than firm, fixed-price contracts) 
     that are covered by the exemption for contracts or 
     subcontracts where the price negotiated is based on 
     established catalog or market prices of commercial items sold 
     in substantial quantities to the general public. The 
     conferees direct that the Board issue standards to implement 
     this provision. 
     
[[Page H733]]


               Title XLIII--Additional Reform Provisions

          Subtitle A--Additional Acquisition Reform Provisions

     Elimination of certain certification requirements (sec. 4301)
       The conference agreement includes a provision that would 
     eliminate a number of statutory certification requirements 
     for contractors and subcontractors with the federal 
     government. The conferees note that the underlying 
     requirement to comply with the specified statutes is not 
     affected by the elimination of the contractor or 
     subcontractor certification requirements. The conferees have 
     included a general requirement that the Administrator of the 
     Office of Federal Procurement Policy (OFPP) amend the Federal 
     Acquisition Regulation to remove regulation-based 
     certification requirements after a suitable period for public 
     notice and comment. The provision would mandate the heads of 
     executive agencies to follow a similar process. The provision 
     also includes a prohibition on the imposition of future 
     contractor and subcontractor certification requirements, 
     unless such certification is imposed by statute or is 
     justified in writing and approved by the Federal Acquisition 
     Regulatory Council and the Administrator of OFPP.
     Authorities conditioned on Federal Acquisition Computer 
         Network (FACNET) capability (sec. 4302)
       The conference agreement includes a provision that would 
     amend section 5061 of the Federal Acquisition Streamlining 
     Act of 1994 (Public Law 103-484) to allow a test of 
     alternative procurement procedures. The amendment would 
     remove a requirement that the test of alternative procurement 
     procedures be contingent on the implementation of full 
     federal acquisition computer network (FACNET) electronic 
     commerce procedures. The Provision would also amend 
     subsection (e) of section 427 of title 41, United States 
     Code, to limit the linkage between full FACNET implementation 
     and federal agency use of simplified acquisition procedures 
     to a requirement that an agency must deploy a full FACNET 
     capability by December 31, 1999 or revert back to a threshold 
     of $50,000 on the value of procurements below which 
     simplified procedures are authorized.
     International competitiveness (sec. 4303)
       The conference agreement includes a provision that would 
     amend section 21(e)(2) of the Arms Export Control Act to 
     allow the President to waive recoupment charges for non-
     recurring research and development costs on foreign military 
     sales of major defense equipment under certain conditions. 
     The provision would authorize the presidential waiver if it 
     is determined that the levy of charges would likely result in 
     the loss of a sale or the elimination of charges would result 
     in savings to the government in the form of lower per unit 
     costs for a particular item of equipment. Under this 
     provision, the President would also be authorized to waive 
     any portion of a recoupment charge attributable to a 
     correction in an earlier estimate of a production quantity 
     base used to calculate the pro rata recoupment charges for a 
     particular item. The provision includes language that would 
     render the use of the waiver subject to the President's 
     identification and Congressional appropriation of an offset 
     for any revenue lost as a result of the waiver authority, 
     from fiscal year 1997 through fiscal year 2005.
     Procurement integrity (sec. 4304)
       The conference agreement includes a provision that would 
     amend section 423 of title 41, United States Code, to revise 
     the restrictions on obtaining or disclosing contractor bid or 
     proposal information or source selection information. The 
     provision would prohibit, except as provided by law, present 
     or former federal employees from knowingly obtaining or 
     disclosing such information before the award of a contract to 
     which information relates. This provision would authorize 
     criminal penalties for a violation of such prohibition when 
     such information is exchanged for something of value or for 
     the purpose of allowing anyone to obtain a competitive 
     advantage in the award of a federal contract. The provision 
     would authorize civil and administrative penalties for such 
     violations as well.
       The provision would also replace the current agency-
     specific recusal and post-employment restrictions applicable 
     to agency employees involved in certain specified procurement 
     actions with uniform standards applicable to all federal 
     agencies. The post-employment restrictions would apply to 
     designated officials involved in procurements over $10.0 
     million for a one-year period.
       The recusal requirements apply to employees who are 
     participating personally and substantially in a procurement. 
     These requirements cover employees who participate personally 
     and substantially in one or more of the following activities: 
     the drafting of a specification developed for that 
     procurement; the review and approval of a specification 
     developed for that procurement; the preparation or issuance 
     of a procurement solicitation in that procurement; the 
     evaluation of bids or proposals for that procurement; the 
     selection of sources for that procurement; the conduct of 
     negotiations in the procurement; the review and approval of 
     the award, modification, or extension of a contract in that 
     procurement; such other specific procurement actions as may 
     be specified in implementing regulations.
       The provision also would provide civil and administrative 
     penalties for contractors as well as for agency employees who 
     violate the recusal requirements or the post-employment 
     restrictions.
     Further acquisition streamlining provisions (sec. 4305)
       The conference agreement includes a provision that would 
     consolidate a number of provisions in the Office of Federal 
     Procurement Policy Act concerning findings, policies, and 
     purposes. The provision would also repeal the reporting 
     requirements in section 8 of the Act as well as make 
     clarifying changes to section 11 of the Act regarding the 
     permanent authorization of appropriations for the Office of 
     Federal Procurement Policy.
     Value engineering for federal agencies (sec. 4306)
       The conference agreement includes a provision that would 
     amend the Office of Federal Procurement Policy Act by adding 
     a new section that would require federal agencies to 
     establish and maintain cost-effective value engineering 
     procedures and processes.
     Acquisition workforce (sec. 4307)
       The conference agreement includes a provision that would 
     establish a series of policies and procedures for the 
     management of the acquisition workforce in executive agencies 
     other than the Department of Defense. The provision would 
     require the head of each executive agency, after consultation 
     with the Administrator of the Office of Federal Procurement 
     Policy, to establish procedures and policies for the 
     accession, education, training, and career development and 
     performance incentives for the acquisition workforce of the 
     agency. The provision would place primary management 
     authority for the acquisition workforce under the control of 
     the senior procurement executive of each agency. The 
     provision would establish statutory standards for the 
     executive agencies in areas such as career development and 
     worker qualification requirements. The provision would also 
     require each agency to establish separate funding levels for 
     acquisition workforce education and training, and would 
     authorize tuition reimbursement programs for personnel 
     serving in acquisition positions.
     Demonstration project relating to certain personnel 
         management policies and procedures (sec. 4308)
       The conference agreement includes a provision that would 
     encourage the Secretary of Defense to embark on a 
     demonstration program, or programs, to test the feasibility 
     and desirability of proposals to improve personnel management 
     policies or procedures for the Department of Defense 
     acquisition workforce. The provision would modify authority 
     under section 4703 of title 5, United States Code, with 
     respect to a demonstration project carried out under this 
     section for the three-year period, beginning on the date of 
     enactment of this Act.
     Cooperative purchasing (sec. 4309)
       The conference agreement includes a provision that would 
     suspend the authority of the Administrator of General 
     Services under section 481(b)(2) of title 40, United States 
     Code, to allow state and local governments to use the federal 
     supply schedules. The provision would suspend the authority 
     until the later of the period ending 18 months after the date 
     of enactment of this Act or the period ending 30 days after 
     the date after the Administrator has reviewed a General 
     Accounting Office report that assesses the effects of state 
     and local governments use of the federal supply schedules and 
     has submitted the report and comments on the report to 
     Congress. The conferees direct that the General Accounting 
     Office include an assessment of the impact on costs to 
     federal agencies from the use of federal supply schedules by 
     state and local governments.
     Procurement notice technical amendment (sec. 4310)
       The conference agreement includes a provision that would 
     make a clarifying amendment to section 18(c)(1)(E) to the 
     Office of Federal Procurement Policy Act.
     Micro-purchases without competitive quotations (sec. 4311)
       The conference agreement includes a provision that would 
     amend section 428 of title 41, United States Code, to provide 
     greater flexibility to executive agencies in determining who 
     may make purchases below $2,500 without being required to 
     receive competitive quotations.

                    Subtitle B--Technical Amendments

     Amendments related to Federal Acquisition Streamlining Act of 
         1994 (sec. 4321)
       The conference agreement includes a provision that would 
     make a series of technical and clarifying changes to the 
     Federal Acquisition Streamlining Act of 1994 (Public Law 103-
     355).
     Miscellaneous amendments to federal acquisition laws (sec. 
         4322)
       The conference agreement includes a provision that would 
     make a series of clarifying and technical changes to 
     acquisition statutes throughout the United States Code.

             Title XLIV--Effective Dates and Implementation

     Effective date and applicability (sec. 4401)
       The conference agreement includes a provision that would 
     provide that amendments made by this division would take 
     effect on the date of enactment except as otherwise 

[[Page H734]]
     provided. The provision would provide that amendments made by this 
     division apply to solicitations issued, unsolicited proposals 
     received, any contract entered into pursuant to such a 
     solicitation or proposal, and ongoing contracting actions, on 
     or after the date 30 days after final implementing 
     regulations are published but no later than January 1, 1997.
     Implementing regulations (sec. 4402)
       The conference agreement includes a provision that would 
     establish a regulatory implementation schedule for the 
     amendments within this division.

          DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM


                         legislative provisions

                     legislative provisions adopted

     Overview
       The Senate amendment contained provisions with government-
     wide acquisition and management issues related to information 
     technology. The House bill also contained provisions relating 
     to bid protest jurisdictions. The conferees considered all of 
     these provisions before agreeing to include Division E in the 
     conference agreement.
       The conferees agree that:
       (1) federal information systems are critical to the lives 
     of every American;
       (2) the efficiency and effectiveness of the federal 
     government is dependent upon the effective use of 
     information;
       (3) the federal government annually spends billions of 
     dollars operating obsolete information systems;
       (4) the use of obsolete information systems severely limits 
     the quality of the services that the federal government 
     provides, the efficiency of federal government operations, 
     and the capabilities of the federal government to account for 
     how taxpayer dollars are spent;
       (5) the failure to modernize federal government information 
     systems and the operations they support, despite efforts to 
     do so, has resulted in the waste of billions of dollars that 
     cannot be recovered;
       (6) despite improvements achieved through implementation of 
     the Chief Financial Officers Act of 1990, most federal 
     agencies cannot track the expenditures of Federal dollars 
     and, thus, expose the taxpayers to billions of dollars in 
     waste, fraud, abuse, and mismanagement;
       (7) poor planning and program management and an 
     overburdened acquisition process have resulted in the 
     American taxpayers not getting their money's worth from the 
     expenditure of $200,000,000,000 on information systems during 
     the decade preceding the enactment of this Act;
       (8) the federal government's investment control processes 
     focus too late in the system lifecycle, lack sound capital 
     planning, and pay inadequate attention to business process 
     improvement, performance measurement, project milestones, or 
     benchmarks against comparable organizations;
       (9) many federal agencies lack adequate personnel with the 
     basic skills necessary to effectively and efficiently use 
     information technology and other information resources in 
     support of agency programs and missions;
       (10) federal regulations governing information technology 
     acquisitions are outdated, focus on paperwork and process 
     rather than results, and prevent the federal government from 
     taking timely advantage of the rapid advances taking place in 
     the competitive and fast changing global information 
     technology industry;
       (11) buying, leasing, or developing information systems 
     should be a top priority for federal agency management 
     because of the high potential for the systems to 
     substantially improve Federal Government operations, 
     including the delivery of services to the public; and,
       (12) structural changes in the federal government, 
     including elimination of the Brooks Act (section 111 of the 
     Federal Property and Administrative Services Act of 1949, as 
     amended), are necessary in order to improve federal 
     information management and to facilitate federal government 
     acquisition of the state-of-the-art information technology 
     that is critical for improving the efficiency and 
     effectiveness of federal government operations.
       The conferees agree that action is necessary on the part of 
     Congress in order to:
       (1) create incentives for the federal government to 
     strategically use information technology in order to achieve 
     efficient and effective operations of the federal government, 
     and to provide cost effective and efficient delivery of 
     federal government services to the taxpayers;
       (2) provide for the cost effective and timely acquisition, 
     management, and use of effective information technology 
     solutions;
       (3) transform the process-oriented procurement system of 
     the federal government, as it relates to the acquisition of 
     information technology, into a results-oriented procurement 
     system;
       (4) increase the responsibility and authority of officials 
     of the Office of Management and Budget and other federal 
     government agencies, and the accountability of such officials 
     to Congress and the public, in the use of information 
     technology and other information resources in support of 
     agency missions;
       (5) ensure that federal government agencies are responsible 
     and accountable for achieving service delivery levels and 
     project management performance comparable to the best in the 
     private sector;
       (6) promote the development and operation of multiple-
     agency and government-wide, inter-operable, shared 
     information resources to support the performance of federal 
     government missions;
       (7) reduce fraud, waste, abuse, and errors resulting from a 
     lack of, or poor implementation of, federal government 
     information systems;
       (8) increase the capability of the federal government to 
     restructure and improve processes before applying information 
     technology;
       (9) increase the emphasis placed by federal agency managers 
     on completing effective capital planning and process 
     improvement before applying information technology to the 
     executing of plans and the performance of agency missions;
       (10) coordinate, integrate, and, to the extent practicable, 
     establish uniform federal information resources management 
     policies and practices in order to improve the productivity, 
     efficiency, and effectiveness of federal government programs 
     and the delivery of services to the public;
       (11) strengthen the partnership between the federal 
     government and state, local, and tribal governments for 
     achieving federal government missions, goals, and objectives;
       (12) provide for the development of a well-trained core of 
     professional federal government information resources 
     managers; and,
       (13) improve the ability of agencies to share expertise and 
     best practices and coordinate the development of common 
     application systems and infrastructure.
       The following is a section-by-section description of the 
     provisions adopted by the conferees. Section 5001 sets forth 
     a short title ``The Information Technology Management Reform 
     Act of 1996'' and Section 5002 sets forth definitions.

   Title LI--Responsibility for Acquisition of Information Technology

                     Subtitle A--General Authority

     Repeal of central authority of the Administrator of General 
         Services (sec. 5101)
       The conference agreement includes a provision that would 
     repeal section 111 of the Federal Property and Administrative 
     Services Act of 1949, as amended.

      Subtitle B--Director of the Office of Management and Budget

     Responsibility of Director (sec. 5111)
       The conference agreement includes a provision that would 
     require the Director of the Office of Management and Budget 
     to comply with this title. The conferees anticipate that 
     these provisions will be reviewed upon reauthorization of the 
     Paperwork Reduction Act prior to September 30, 2001.
       The conferees agree that in undertaking activities and 
     issuing guidance in accordance with this subtitle, the 
     Director shall promote the integration of information 
     technology management with the broader information resource 
     management processes in the agencies.
       The conferees encourage the establishment of interagency 
     groups to support the Director by examining areas of 
     information technology, to include: telecommunications, 
     software engineering, common administrative and programmatic 
     applications, computer security and information policy, all 
     of which would benefit from a government-wide or multi-agency 
     perspective; the promotion of cooperation among agencies in 
     information technology matters; the review of major or high 
     risk information technology acquisitions; and the promotion 
     of the efficient use of information technology that supports 
     agency missions. The interagency groups should: identify 
     common goals and requirements; develop a coordinated approach 
     to meeting certain agency requirements, such as budget 
     estimates and procurement programs; identify opportunities to 
     share information that would improve the agency performance 
     and reduce costs of agency programs; make recommendations 
     regarding protocols and other standards for information 
     technology, including security standards; and make 
     recommendations concerning interoperability among agency 
     information systems. The conferees also encourage the 
     establishment of temporary special advisory groups, composed 
     of experts from industry, academia, and the Federal 
     Government, to review government-wide information technology 
     programs, major or high risk information technology 
     acquisitions, and information technology policy.
     Capital planning and investment control (sec. 5112)
       The conference agreement includes a provision that would 
     describe the Director's responsibilities under 44 USC 3504(h) 
     that relate to promoting and sustaining responsibility and 
     accountability for improvement of the acquisition, use, and 
     disposal of information technology by executive agencies.
       The conferees agree that the Director, in developing a 
     process related to major agency capital investments, should: 
     ensure that the process identifies opportunities for 
     interagency cooperation; ensure the success of high risk and 
     high return investments; develop requirements for agency 
     submission of investment information needed to execute the 
     process; ensure that agency information resources management 
     plans are integrated into the agency's program plans, 
     financial management plans, and budgets for the acquisition 
     and use of information technology designed to improve agency 
     performance and the accomplishment of agency missions; and 
     identify three categories of information systems 
     investments--(1) high risk--those 

[[Page H735]]
     projects that, by virtue of their size, complexity, use of innovative 
     technology, or other factors, have an especially high risk of 
     failure; (2) high return--those projects that by virtue of 
     their total potential benefits, in proportion to their costs, 
     have particularly unique value to the public; and (3) 
     crosscutting--those projects of individual agencies, with 
     shared benefit to or impact on other federal agencies and 
     state or local governments, that require enforcement of 
     operational standards or elimination of redundancies. 
     Finally, the conferees also agree that the Director, to 
     encourage the use of best business and administrative 
     practices, should identify and collect information regarding 
     best practices, to include information on the development and 
     implementation of best practices by the executive agencies. 
     The Director should provide the executive agencies with 
     information on best practices, and advice and assistance 
     regarding the use of best practices.
     Performance-based and results-based management (sec. 5113)
       The conference agreement includes a provision that would 
     require the Director to encourage performance and results-
     based management for agency information technology programs. 
     The Director is required to review agency management 
     practices based on the performance and results of its 
     information technology programs and investments. The Director 
     is required to issue clear and concise directions to ensure 
     that agencies have effective and efficient capital planning 
     processes that are used to select, control, and evaluate the 
     results of major information systems investments and to 
     ensure that agency information security is adequate.
       The conferees agree that the Director's direction to 
     agencies regarding performance and results-based management 
     of information technology resources shall contain the 
     following: (1) that each executive agency and its major 
     subcomponents institute effective and efficient capital 
     planning processes for selecting, controlling, and evaluating 
     the results of all of its major information systems 
     investments; (2) that the agency maintain a current and 
     adequate information resources management plan, and to the 
     maximum extent practicable, specifically identify the method 
     for acquisition of information technology expected to improve 
     agency operations, and otherwise benefit the agency; (3) that 
     the agency provide for adequate integration of the agency's 
     information resources management plans, strategic plans 
     prepared pursuant to 5 U.S.C. 306, performance plans prepared 
     pursuant to 31 U.S.C. 1115, financial management plans 
     prepared pursuant to 31 U.S.C. 902(a)(5), and the agency 
     budgets for the acquisition and use of information technology 
     and other information resources. In addition, the conferees 
     agree that OMB shall provide the needed oversight, through 
     the budget process and other means, to ensure that executive 
     agencies assume responsibility, and effectively implement 
     suitable performance and results-based management practices.

                     Subtitle C--Executive Agencies

     Responsibilities (sec. 5121)
       The conference agreement includes a provision that would 
     require the head of each executive agency to comply with this 
     subtitle. The conferees anticipate that these provisions will 
     be reviewed upon reauthorization of the Paperwork Reduction 
     Act prior to September 30, 2001.
       The conferees encourage the establishment and support of 
     independent technical review committees, composed of diverse 
     agency personnel (including users) and outside experts 
     selected by the agency head, to advise an agency head about 
     information systems programs.
     Capital planning and investment control (sec. 5122)
       The conference agreement includes a provision that would 
     require agencies to develop a process for furthering their 
     responsibilities under 44 U.S.C. 3506(h). The head of the 
     agency is required to design and develop a process for 
     maximizing the value and assessing and managing the risk of 
     the agency's information technology acquisitions.
     Performance and results-based management (sec. 5123)
       The conference agreement includes a provision that would 
     require agencies to establish goals for and report on the 
     progress of improving efficiency and effectiveness of agency 
     operations through use of information technology, as required 
     by 44 U.S.C. 3506(h). The head of an executive agency must 
     ensure that performance measures are established to support 
     evaluating the results and benefits of information technology 
     investments.
       The conferees agree that, in fulfilling the 
     responsibilities under this section, agency heads should 
     ensure that: (1) before investing in information technology 
     to support a function, the agency determines whether that 
     function should be performed in the private sector or by an 
     agency of the federal government; (2) the agency adequately 
     provides for the integration of the agency's information 
     resources management plans, strategic plans prepared pursuant 
     to 5 U.S.C. 306, performance plans prepared pursuant to 31 
     U.S.C. 1115, financial management plans prepared pursuant to 
     31 U.S.C. 902(a)(5), and adequately prepares budgets for the 
     acquisition and use of information technology; (3) the agency 
     maintains a current and adequate information resources 
     management plan, and to the maximum extent practicable, 
     specifically identifies how acquired information technology 
     would improve agency operations and otherwise benefit the 
     agency; and (4) the agency invests in efficient and effective 
     interagency and government-wide information technology to 
     improve the accomplishment of common agency missions or 
     functions.
     Acquisitions of information technology (sec. 5124)
       The conference agreement includes a provision that would 
     authorize the head of an executive agency to acquire 
     information technology and, upon approval of the Director of 
     OMB, enter into multi-agency information technology 
     investments. The conferees intend that the requirements and 
     limitations of the Economy Act, and other provisions of law, 
     apply to these multiagency acquisitions. This section also 
     authorizes the General Services Administration (GSA) to 
     continue the management of the FTS-2000 program and 
     coordinate the follow-on effort to FTS-2000.
     Agency chief information officer (sec. 5125)
       The conference agreement includes a provision that would 
     amend the Paperwork Reduction Act of 1995 by replacing the 
     ``senior information resources management official position'' 
     established within each executive agency with an agency Chief 
     Information Officer (CIO). The agency CIO is responsible for 
     providing information and advice regarding information 
     technology and information resources management to the head 
     of the agency, and for ensuring that the management and 
     acquisition of agency information technology is implemented 
     consistent with the provisions of this law.
       The conferees anticipate that agencies may establish CIOs 
     for major subcomponents or bureaus, and expect agency CIOs 
     will possess knowledge of, and practical experience in, 
     information and information technology management practices 
     of business or government entities. The conferees also intend 
     that deputy chief information officers be appointed by agency 
     heads that have additional experience in business process 
     analysis, software and information systems development, 
     design and management of information technology 
     architectures, data and telecommunications management at 
     government or business entities. The conferees intend that 
     CIOs, in agencies other than those listed in 31 U.S.C. 
     901(b), perform essentially the same duties as CIOs in 
     agencies listed in 31 U.S.C. 901(b).
       The conferees expect that an agency's CIO will meet 
     periodically with other appropriate agency officials to 
     advise and coordinate the information technology and other 
     information resources management activities of the various 
     agencies.
     Accountability (sec. 5126)
       The conference agreement includes a provision that would 
     require the head of each agency, in consultation with agency 
     Chief Information Officers and Chief Financial Officers, to 
     ensure the integration of financial and information systems. 
     The conferees intend that the information resources 
     management plan, required under 44 U.S.C. 3506(b)(2), support 
     the performance of agency missions through the application of 
     information technology and other information resources, and 
     include the following: (1) a statement of goals to improve 
     the extent to which information resources contribute to 
     program productivity, efficiency, and effectiveness; (2) the 
     development of methods to measure progress toward achieving 
     the goals; (3) the establishment of clear roles, 
     responsibilities, and accountability to achieve the goals; 
     (4) a description of an agency's major existing and planned 
     information technology components (such as information 
     systems and telecommunications networks); (5) the 
     relationship among the information technology components, and 
     the information architecture; and (6) a summary of the 
     project's status and any changes in name, direction or scope, 
     quantifiable results achieved, and current maintenance 
     expenditures for each ongoing or completed major information 
     systems investment from the previous year. The conferees also 
     intend that agency heads will periodically evaluate and 
     improve the accuracy, security, completeness, and reliability 
     of information maintained by or for the agency.
     Significant deviations (sec. 5127)
       The conference agreement includes a provision that would 
     require agencies to identify in their information resources 
     management plans any major information technology acquisition 
     program, or phase or increment of such program, that has 
     significantly deviated from the established cost, 
     performance, or schedule baseline.
     Interagency support (sec. 5128)
       The conference agreement includes a provision that would 
     authorize the utilization of funds for interagency activities 
     in support of the Information Technology Reform Act.

                  Subtitle D--Other Responsibilities.

     Responsibilities regarding efficiency, security, and privacy 
         of federal computer systems (sec. 5131)
       The conference agreement includes a provision that would 
     set forth the authority for the Secretary of Commerce, in 
     consultation with the National Institute of Standards and 
     Technology, to promulgate standards to improve the operation, 
     security, and privacy of Federal information technology 
     systems.
     Sense of Congress (sec. 5132)
       The conference agreement includes a provision stating that 
     agencies, over the next 

[[Page H736]]
     five years, should achieve a five percent per year decrease in costs 
     incurred for operation and maintenance of information 
     technology, and a five percent increase in operational 
     efficiency through improvements in information resources 
     management.

                 Subtitle E--National Security Systems

       The conference agreement includes a provision that would 
     exclude national security systems from provisions of this 
     Act, unless otherwise provided in this Act.

     Title LII--Process for Acquisitions of Information Technology

     Procurement procedures (sec. 5201)
       The conference agreement includes a provision that would 
     direct the Federal Acquisition Regulatory Council to ensure, 
     to the maximum extent practicable, that the information 
     technology process is simplified, clear, and understandable. 
     The process should specifically address the management of 
     risk, incremental acquisitions, and the need to incorporate 
     commercial information technology in a timely manner.
       The conferees agree that, in performing oversight of 
     information technology acquisitions, the Director of the 
     Office of Management and Budget, agency heads, and agency 
     inspectors general should emphasize program results and 
     established performance measurements, rather than reviews of 
     the acquisition process.
     Incremental acquisition of information technology (sec. 5202)
       The conference agreement includes a provision that would 
     provide for procedures in the Federal Acquisition Regulations 
     for the incremental acquisition of major information 
     technology systems by the Department of Defense and the 
     civilian executive agencies.

     Title LIII--Information Technology Acquisition Pilot Programs

                 Subtitle A--Conduct of Pilot Programs

       The conference agreement includes provisions that would 
     authorize the Administrator of Office of Federal Procurement 
     Policy, in consultation with the Administrator of Office of 
     Information and Regulatory Affairs, to: conduct pilot 
     programs to test alternative acquisition approaches for 
     information technology; conduct no more than two pilots, not 
     to exceed $750 million for a period not to exceed five years; 
     require agency heads to develop evaluation and test plans; 
     prepare and submit test plans to Congress prior to 
     implementation; report on results within 180 days after 
     completion; and make recommendations for legislation.

                  Subtitle B--Specific Pilot Programs

       The conference agreement includes provisions that would 
     provide for two specific pilot programs, the share-in-savings 
     pilot program and the solutions-based contracting pilot 
     program.

     Title LIV--Additional Information Resources Management Matters

     On-line multiple award schedule contracting (sec. 5401)
       The conference agreement includes a provision that would 
     require the Administrator of General Services to provide for 
     on-line access to multiple award schedules for information 
     technology. The system would provide basic information on 
     prices, features, and similar matters, allow for information 
     updates, enable comparison of product information, enable on-
     line ordering and invoicing, permit on-line payment, and 
     archive order data. The provision would also authorize a 
     pilot program to test streamlined procedures for the 
     automated system. The conference agreement directs the 
     Administrator of General Services to incorporate its 
     information technology multiple award schedules into Federal 
     Acquisition Computer Network (FACNET) by January 1, 1998, and 
     would make the pilot program discretionary. The conferees 
     agree that the procedures established by the Administrator 
     for use of FACNET be consistent with the Federal Property and 
     Administrative Services Act requirements regarding the 
     multiple award schedule (41 U.S.C. 259(B)(3)). If the 
     Administrator determines it is not practicable to provide 
     such access through FACNET, the Administrator shall provide 
     such access through another automated system that has the 
     capability to perform the functions listed in subsection 
     259(b)(1) and meets the requirement of subsection 259(b)(2).
     Disposal of excess computer equipment (sec. 5402)
       The conference agreement includes a provision that would 
     require agencies to inventory all agency computer equipment 
     and to identify excess or surplus property. The conferees 
     direct that the Administrator of General Services, in 
     exercising current authority under title II of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     481 et seq.), donate federal surplus personal property to 
     public organizations. The conferees direct the Administrator 
     to prescribe regulations that establish a priority for the 
     donation of surplus computer equipment in the following 
     sequence: (1) elementary and secondary schools, and schools 
     funded by the Bureau of Indian Affairs; (2) public libraries; 
     (3) public colleges and universities; and (4) other entities 
     eligible for donation of federal surplus personal property 
     under title II of that Act.
     Access of certain information in information systems to the 
         directory established under section 4101 of title 44, 
         United States Code (sec. 5403)
       The conference agreement includes a provision that would 
     ensure that, for agency information systems that disseminate 
     information to the public, an index of information is 
     included in the Government Printing Office (GPO) directory 
     established under 44 U.S.C. 4101.
       In 1993, Congress directed the GPO to create an online 
     directory, of federal public information in electronic form 
     (Public Law 103-40). Today, that system is accessible to the 
     general public directly and through the Federal Depository 
     Libraries. Yet, in the two years since enactment of the GPO 
     access bill, technology has moved forward dramatically in its 
     ability to support location and search of the physically-
     distributed, locally-maintained databases. Congress 
     recognized this shift in the Paperwork Reduction Act of 1995 
     (Public Law 104-13). That Act requires Federal agencies to 
     ensure access to agency public information by ``encouraging a 
     diversity of public and private sources''. It also directs 
     the Office of Management and Budget to establish a 
     distributed, electronic, agency-based Government Information 
     Locator Service (GILS) to identify the major information 
     dissemination products of each agency. As the Senate report 
     noted (S. Rept. 104-112), GILS: ``* * * will provide multiple 
     avenues for public access to government information by 
     pointing to specific agency information holdings. To make 
     this possible, agencies' systems must be compatible. Thus, 
     agency GILS information should be available to the public 
     through the Government Printing Office Locator System 
     (established pursuant to Public Law 103-40) in addition to 
     any other required methods, agencies may choose to 
     efficiently and effectively provide public and agency access 
     to GILS.''
       Section 5403 further clarifies the intent of Congress to 
     ensure the widest possible access to Federal public 
     information through a diversity of compatible sources.

   Title LV--Procurement Protest Authority of the Comptroller General

       The conference agreement includes a provision that would 
     require the Comptroller General to issue a decision relating 
     to a bid protest within 100 days.

             Title LVI--Conforming and Clerical Amendments

       The conference agreement includes a series of clarifying 
     and technical changes to acquisition statutes throughout the 
     United States Code.

      Title LVII--Effective Date, Savings Provisions, and Rule of 
                              Construction

     Effective date (sec. 5701)
       The conference agreement includes a provision that would 
     provide for this division and the amendments made by this 
     division to take effect 180 days after the date of the 
     enactment of this Act.
     Savings provisions (sec. 5702)
       The conference agreement includes a provision that would 
     allow selected information technology actions and acquisition 
     proceedings, including claims or applications, that have been 
     initiated by, or are pending before, Administrator of the 
     General Services or the General Services Administration Board 
     of Contract Appeals to be continued under original terms, 
     until terminated, revoked, or superseded in accordance with 
     law, by the Director of OMB, by a court, or by operation of 
     law. The Director of OMB is authorized to establish 
     regulations for transferring such actions and proceedings.
     Floyd Spence,
     Bob Stump,
     Duncan Hunter,
     Herbert H. Bateman,
     Curt Weldon,
     G.V. Montgomery,
     John M. Spratt, Jr.,
                                Managers on the Part of the House.

     Strom Thurmond,
     John Warner,
     Bill Cohen,
     Trent Lott,
     Sam Nunn,
     Managers on the Part of the Senate.

                          ____________________