[Congressional Record Volume 143, Number 128 (Tuesday, September 23, 1997)]
[House]
[Pages H7656-H7710]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 CONFERENCE REPORT ON H.R. 2266, DEPARTMENT OF DEFENSE APPROPRIATIONS 
                               ACT, 1998

  Mr. YOUNG of Florida submitted the following conference report and 
statement on the bill (H.R. 2266) making appropriations for the 
Department of Defense for the fiscal year ending September 30, 1998, 
and for other purposes:

                  Conference Report (H. Rept. 105-265)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2266) ``making appropriations for the Department of Defense 
     for the fiscal year ending September 30, 1998, and for other 
     purposes,'' having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:

     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 1998, for military functions 
     administered by the Department of Defense, and for other 
     purposes, namely:

                                TITLE I

                           MILITARY PERSONNEL

                        Military Personnel, Army

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Army on active 
     duty (except members of reserve components provided for 
     elsewhere), cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42 
     U.S.C. 402 note), to section 229(b) of the Social Security 
     Act (42 U.S.C. 429(b)), and to the Department of Defense 
     Military Retirement Fund; $20,452,057,000.

                        Military Personnel, Navy

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Navy on active 
     duty (except members of the Reserve provided for elsewhere), 
     midshipmen, and aviation cadets; and for payments pursuant to 
     section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
     note), to section 229(b) of the Social Security Act (42 
     U.S.C. 429(b)), and to the Department of Defense Military 
     Retirement Fund; $16,493,518,000.

                    Military Personnel, Marine Corps

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Marine Corps on 
     active duty (except members of the Reserve provided for 
     elsewhere); and for payments pursuant to section 156 of 
     Public Law 97-377, as amended (42 U.S.C. 402 note), to 
     section 229(b) of the Social Security Act (42 U.S.C. 429(b)), 
     and to the Department of Defense Military Retirement Fund; 
     $6,137,899,000.

                     Military Personnel, Air Force

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Air Force on 
     active duty (except members of reserve components provided 
     for elsewhere), cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42

[[Page H7657]]

     U.S.C. 402 note), to section 229(b) of the Social Security 
     Act (42 U.S.C. 429(b)), and to the Department of Defense 
     Military Retirement Fund; $17,102,120,000.

                        Reserve Personnel, Army

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     Reserve on active duty under sections 10211, 10302, and 3038 
     of title 10, United States Code, or while serving on active 
     duty under section 12301(d) of title 10, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     reserve training, or while performing drills or equivalent 
     duty or other duty, and for members of the Reserve Officers' 
     Training Corps, and expenses authorized by section 16131 of 
     title 10, United States Code; and for payments to the 
     Department of Defense Military Retirement Fund; 
     $2,032,046,000.

                        Reserve Personnel, Navy

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Navy 
     Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Reserve Officers' Training Corps, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund; $1,376,601,000.

                    Reserve Personnel, Marine Corps

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Marine 
     Corps Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Marine Corps platoon leaders class, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund; $391,770,000.

                      Reserve Personnel, Air Force

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air Force 
     Reserve on active duty under sections 10211, 10305, and 8038 
     of title 10, United States Code, or while serving on active 
     duty under section 12301(d) of title 10, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     reserve training, or while performing drills or equivalent 
     duty or other duty, and for members of the Air Reserve 
     Officers' Training Corps, and expenses authorized by section 
     16131 of title 10, United States Code; and for payments to 
     the Department of Defense Military Retirement Fund; 
     $815,915,000.

                     National Guard Personnel, Army

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     National Guard while on duty under section 10211, 10302, or 
     12402 of title 10 or section 708 of title 32, United States 
     Code, or while serving on duty under section 12301(d) of 
     title 10 or section 502(f) of title 32, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund; $3,333,867,000.

                  National Guard Personnel, Air Force

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air 
     National Guard on duty under section 10211, 10305, or 12402 
     of title 10 or section 708 of title 32, United States Code, 
     or while serving on duty under section 12301(d) of title 10 
     or section 502(f) of title 32, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund; $1,334,712,000.

                                TITLE II

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army


                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Army, as authorized by law; 
     and not to exceed $11,437,000, can be used for emergencies 
     and extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Army, and payments may be 
     made on his certificate of necessity for confidential 
     military purposes; $16,754,306,000 and, in addition, 
     $50,000,000 shall be derived by transfer from the National 
     Defense Stockpile Transaction Fund: Provided, That of the 
     funds appropriated in this paragraph, not less than 
     $300,000,000 shall be made available only for conventional 
     ammunition care and maintenance.

                    Operation and Maintenance, Navy


                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Navy and the Marine Corps, 
     as authorized by law; and not to exceed $5,500,000, can be 
     used for emergencies and extraordinary expenses, to be 
     expended on the approval or authority of the Secretary of the 
     Navy, and payments may be made on his certificate of 
     necessity for confidential military purposes; $21,617,766,000 
     and, in addition, $50,000,000 shall be derived by transfer 
     from the National Defense Stockpile Transaction Fund.

                Operation and Maintenance, Marine Corps

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Marine Corps, as authorized 
     by law; $2,372,635,000.

                  Operation and Maintenance, Air Force


                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Air Force, as authorized by 
     law; and not to exceed $8,362,000 can be used for emergencies 
     and extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Air Force, and payments may 
     be made on his certificate of necessity for confidential 
     military purposes; $18,492,883,000 and, in addition, 
     $50,000,000 shall be derived by transfer from the National 
     Defense Stockpile Transaction Fund.

                Operation and Maintenance, Defense-Wide

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of activities and agencies of the 
     Department of Defense (other than the military departments), 
     as authorized by law; $10,369,740,000, of which not to exceed 
     $25,000,000 may be available for the CINC initiative fund 
     account; and of which not to exceed $28,850,000 can be used 
     for emergencies and extraordinary expenses, to be expended on 
     the approval or authority of the Secretary of Defense, and 
     payments may be made on his certificate of necessity for 
     confidential military purposes.

                Operation and Maintenance, Army Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Army Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications; 
     $1,207,891,000.

                Operation and Maintenance, Navy Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Navy Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications; 
     $921,711,000.

            Operation and Maintenance, Marine Corps Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Marine Corps Reserve; repair of 
     facilities and equipment; hire of passenger motor vehicles; 
     travel and transportation; care of the dead; recruiting; 
     procurement of services, supplies, and equipment; and 
     communications; $116,366,000.

              Operation and Maintenance, Air Force Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Air Force Reserve; repair of 
     facilities and equipment; hire of passenger motor vehicles; 
     travel and transportation; care of the dead; recruiting; 
     procurement of services, supplies, and equipment; and 
     communications; $1,632,030,000.

             Operation and Maintenance, Army National Guard

       For expenses of training, organizing, and administering the 
     Army National Guard, including medical and hospital treatment 
     and related expenses in non-Federal hospitals; maintenance, 
     operation, and repairs to structures and facilities; hire of 
     passenger motor vehicles; personnel services in the National 
     Guard Bureau; travel expenses (other than mileage), as 
     authorized by law for Army personnel on active duty, for Army 
     National Guard division, regimental, and battalion commanders 
     while inspecting units in compliance with National Guard 
     Bureau regulations when specifically authorized by the Chief, 
     National Guard Bureau; supplying and equipping the Army 
     National Guard as authorized by law; and expenses of repair, 
     modification, maintenance, and issue of supplies and 
     equipment (including aircraft); $2,419,632,000: Provided, 
     That not later than March 15, 1998, the Director of the Army 
     National Guard shall provide a report to the congressional 
     defense committees identifying the allocation, by 
     installation and activity, of all base operations funds 
     appropriated under this heading.

             Operation and Maintenance, Air National Guard

       For operation and maintenance of the Air National Guard, 
     including medical and hospital treatment and related expenses 
     in non-Federal hospitals; maintenance, operation, repair, and 
     other necessary expenses of facilities for the training and 
     administration of the Air National Guard, including repair of 
     facilities, maintenance, operation, and modification of 
     aircraft; transportation of things, hire of passenger motor 
     vehicles; supplies, materials, and equipment, as authorized 
     by law for the Air National Guard; and expenses incident to 
     the maintenance and use of supplies, materials, and 
     equipment, including such as may be furnished from stocks 
     under the control of agencies of the Department of Defense; 
     travel expenses (other than mileage) on the same basis as 
     authorized by law for Air National Guard personnel on active 
     Federal duty, for Air National Guard commanders

[[Page H7658]]

     while inspecting units in compliance with National Guard 
     Bureau regulations when specifically authorized by the Chief, 
     National Guard Bureau; $3,013,282,000.

             Overseas Contingency Operations Transfer Fund


                     (including transfer of funds)

       For expenses directly relating to Overseas Contingency 
     Operations by United States military forces; $1,884,000,000: 
     Provided, That the Secretary of Defense may transfer these 
     funds only to operation and maintenance accounts within this 
     title, and working capital funds: Provided further, That the 
     funds transferred shall be merged with and shall be available 
     for the same purposes and for the same time period, as the 
     appropriation to which transferred: Provided further, That 
     the transfer authority provided in this paragraph is in 
     addition to any other transfer authority contained elsewhere 
     in this Act.

          United States Court of Appeals for the Armed Forces

       For salaries and expenses necessary for the United States 
     Court of Appeals for the Armed Forces; $6,952,000, of which 
     not to exceed $2,500 can be used for official representation 
     purposes.

                    Environmental Restoration, Army


                     (including transfer of funds)

       For the Department of the Army, $375,337,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Army shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of the Army, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Army, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation: 
     Provided further, That not more than twenty-five per centum 
     of funds provided under this heading may be obligated for 
     environmental remediation by the Corps of Engineers under 
     total environmental remediation contracts.

                    Environmental Restoration, Navy


                     (including transfer of funds)

       For the Department of the Navy, $275,500,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Navy shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of the Navy, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Navy, 
     to be merged with and to be available for the same 
     purposes and for the same time period as the 
     appropriations to which transferred: Provided further, 
     That upon a determination that all or part of the funds 
     transferred from this appropriation are not necessary for 
     the purposes provided herein, such amounts may be 
     transferred back to this appropriation.

                  Environmental Restoration, Air Force


                     (including transfer of funds)

       For the Department of the Air Force, $376,900,000, to 
     remain available until transferred: Provided, That the 
     Secretary of the Air Force shall, upon determining that such 
     funds are required for environmental restoration, reduction 
     and recycling of hazardous waste, removal of unsafe buildings 
     and debris of the Department of the Air Force, or for similar 
     purposes, transfer the funds made available by this 
     appropriation to other appropriations made available to the 
     Department of the Air Force, to be merged with and to be 
     available for the same purposes and for the same time period 
     as the appropriations to which transferred: Provided further, 
     That upon a determination that all or part of the funds 
     transferred from this appropriation are not necessary for the 
     purposes provided herein, such amounts may be transferred 
     back to this appropriation.

                Environmental Restoration, Defense-Wide


                     (including transfer of funds)

       For the Department of Defense, $26,900,000, to remain 
     available until transferred: Provided, That the Secretary of 
     Defense shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of Defense, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of Defense, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

         Environmental Restoration, Formerly Used Defense Sites


                     (including transfer of funds)

       For the Department of the Army, $242,300,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Army shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris at 
     sites formerly used by the Department of Defense, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Army, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

             Overseas Humanitarian, Disaster, and Civic Aid

       For expenses relating to the Overseas Humanitarian, 
     Disaster, and Civic Aid programs of the Department of Defense 
     (consisting of the programs provided under sections 401, 402, 
     404, 2547, and 2551 of title 10, United States Code); 
     $47,130,000, to remain available until September 30, 1999.

                  Former Soviet Union Threat Reduction

       For assistance to the republics of the former Soviet Union, 
     including assistance provided by contract or by grants, for 
     facilitating the elimination and the safe and secure 
     transportation and storage of nuclear, chemical and other 
     weapons; for establishing programs to prevent the 
     proliferation of weapons, weapons components, and weapon-
     related technology and expertise; for programs relating to 
     the training and support of defense and military personnel 
     for demilitarization and protection of weapons, weapons 
     components and weapons technology and expertise; 
     $382,200,000, to remain available until September 30, 2000: 
     Provided, That of the amounts provided under this heading, 
     $35,000,000 shall be available only to support the 
     dismantling and disposal of nuclear submarines and submarine 
     reactor components in the Russian Far East: Provided further, 
     That of the amounts provided under this heading, $5,000,000 
     shall be available only for the Arctic Military Environmental 
     Cooperation Program.

                 Quality of Life Enhancements, Defense

         For expenses, not otherwise provided for, resulting from 
     unfunded shortfalls in the repair and maintenance of real 
     property of the Department of Defense (including military 
     housing and barracks); $360,000,000, for the maintenance of 
     real property of the Department of Defense (including minor 
     construction and major maintenance and repair), which shall 
     remain available for obligation until September 30, 1999, as 
     follows:
       Army, $100,000,000;
       Navy, $70,000,000;
       Marine Corps, $45,000,000; and
       Air Force, $145,000,000.

                               TITLE III

                              PROCUREMENT

                       Aircraft Procurement, Army

       For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $1,346,317,000, to remain available for obligation until 
     September 30, 2000.

                       Missile Procurement, Army

       For construction, procurement, production, modification, 
     and modernization of missiles, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $762,409,000, to remain available for obligation until 
     September 30, 2000.

        Procurement of Weapons and Tracked Combat Vehicles, Army

       For construction, procurement, production, and modification 
     of weapons and tracked combat vehicles, equipment, including 
     ordnance, spare parts, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including the land necessary therefor, for 
     the foregoing purposes, and such lands and interests therein, 
     may be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; and other expenses necessary for the 
     foregoing purposes; $1,298,707,000, to remain available for 
     obligation until September 30, 2000.

                    Procurement of Ammunition, Army

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854 of title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $1,037,202,000, to remain available for obligation until 
     September 30, 2000.

[[Page H7659]]

                        Other Procurement, Army

       For construction, procurement, production, and modification 
     of vehicles, including tactical, support, and non-tracked 
     combat vehicles; communications and electronic equipment; 
     other support equipment; spare parts, ordnance, and 
     accessories therefor; specialized equipment and training 
     devices; expansion of public and private plants, including 
     the land necessary therefor, for the foregoing purposes, and 
     such lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $2,679,130,000, to remain available for obligation until 
     September 30, 2000.

                       Aircraft Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     spare parts, and accessories therefor; specialized equipment; 
     expansion of public and private plants, including the land 
     necessary therefor, and such lands and interests therein, may 
     be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; $6,535,444,000, to remain available 
     for obligation until September 30, 2000.

                       Weapons Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of missiles, torpedoes, other weapons, and 
     related support equipment including spare parts, and 
     accessories therefor; expansion of public and private plants, 
     including the land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; 
     $1,102,193,000, to remain available for obligation until 
     September 30, 2000.

            Procurement of Ammunition, Navy and Marine Corps

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854 of title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $397,547,000, to remain available for obligation until 
     September 30, 2000.

                   Shipbuilding and Conversion, Navy

       For expenses necessary for the construction, acquisition, 
     or conversion of vessels as authorized by law, including 
     armor and armament thereof, plant equipment, appliances, and 
     machine tools and installation thereof in public and private 
     plants; reserve plant and Government and contractor-owned 
     equipment layaway; procurement of critical, long leadtime 
     components and designs for vessels to be constructed or 
     converted in the future; and expansion of public and private 
     plants, including land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title, as follows:
       For continuation of the SSN-21 attack submarine program, 
     $153,444,000;
       NSSN, $2,314,903,000;
       NSSN (AP), $284,859,000;
       CVN-77 (AP), $50,000,000;
       CVN Refuelings, $1,615,003,000;
       CVN Refuelings (AP), $46,855,000;
       DDG-51 destroyer program, $3,411,200,000;
       DDG-51 destroyer program (AP), $157,806,000;
       LPD-17 amphibious transport dock ship (AP), $100,000,000;
       Oceanographic ship program (AP), $16,000,000;
       LCAC landing craft air cushion program, $20,000,000; and
       For craft, outfitting, post delivery, conversions, and 
     first destination transportation, $137,521,000;

     In all: $8,235,591,000, to remain available for obligation 
     until September 30, 2002: Provided, That additional 
     obligations may be incurred after September 30, 2002, for 
     engineering services, tests, evaluations, and other such 
     budgeted work that must be performed in the final stage of 
     ship construction: Provided further, That none of the funds 
     provided under this heading for the construction or 
     conversion of any naval vessel to be constructed in shipyards 
     in the United States shall be expended in foreign facilities 
     for the construction of major components of such vessel: 
     Provided further, That none of the funds provided under this 
     heading shall be used for the construction of any naval 
     vessel in foreign shipyards.

                        Other Procurement, Navy

       For procurement, production, and modernization of support 
     equipment and materials not otherwise provided for, Navy 
     ordnance (except ordnance for new aircraft, new ships, and 
     ships authorized for conversion); the purchase of not to 
     exceed 194 passenger motor vehicles for replacement only; and 
     the purchase of one vehicle required for physical security of 
     personnel, notwithstanding price limitations applicable to 
     passenger vehicles but not to exceed $232,340 per vehicle; 
     expansion of public and private plants, including the land 
     necessary therefor, and such lands and interests therein, may 
     be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; $3,144,205,000, to remain available 
     for obligation until September 30, 2000.

                       Procurement, Marine Corps

       For expenses necessary for the procurement, manufacture, 
     and modification of missiles, armament, military equipment, 
     spare parts, and accessories therefor; plant equipment, 
     appliances, and machine tools, and installation thereof in 
     public and private plants; reserve plant and Government and 
     contractor-owned equipment layaway; vehicles for the Marine 
     Corps, including the purchase of not to exceed 40 passenger 
     motor vehicles for replacement only; and expansion of public 
     and private plants, including land necessary therefor, and 
     such lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     $482,398,000, to remain available for obligation until 
     September 30, 2000.

                    Aircraft Procurement, Air Force

       For construction, procurement, and modification of aircraft 
     and equipment, including armor and armament, specialized 
     ground handling equipment, and training devices, spare parts, 
     and accessories therefor; specialized equipment; expansion of 
     public and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things; 
     $6,480,983,000, to remain available for obligation until 
     September 30, 2000: Provided, That of the funds made 
     available under this heading, $331,000,000 shall be available 
     for long lead activities related to the procurement of 
     additional B-2 bombers: Provided further, That if the 
     President determines that no additional B-2 bombers should be 
     procured during this fiscal year, and he certifies to the 
     Congress his decision, the funding described in the previous 
     proviso shall be made available to modify and repair the 
     existing fleet of B-2 bombers.

                     Missile Procurement, Air Force

       For construction, procurement, and modification of 
     missiles, spacecraft, rockets, and related equipment, 
     including spare parts and accessories therefor, ground 
     handling equipment, and training devices; expansion of public 
     and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things; 
     $2,394,202,000, to remain available for obligation until 
     September 30, 2000.

                  Procurement of Ammunition, Air Force

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854, title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $398,534,000, to remain available for obligation until 
     September 30, 2000.

                      Other Procurement, Air Force

       For procurement and modification of equipment (including 
     ground guidance and electronic control equipment, and ground 
     electronic and communication equipment), and supplies, 
     materials, and spare parts therefor, not otherwise provided 
     for; the purchase of not to exceed 196 passenger motor 
     vehicles for replacement only; the purchase of one vehicle 
     required for physical security of personnel, notwithstanding 
     price limitations applicable to passenger vehicles but not to 
     exceed $232,340 per vehicle; and expansion of public and 
     private plants, Government-owned equipment and installation 
     thereof in such plants, erection of structures, and 
     acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon, prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; $6,592,909,000, to remain available for obligation 
     until September 30, 2000.

                       Procurement, Defense-Wide

       For expenses of activities and agencies of the Department 
     of Defense (other than the military departments) necessary 
     for procurement, production, and modification of equipment, 
     supplies, materials, and spare parts therefor, not otherwise 
     provided for; the purchase of not to exceed 381 passenger 
     motor vehicles for replacement only; expansion of public and 
     private plants, equipment, and installation thereof in such 
     plants, erection of structures, and acquisition of land for 
     the foregoing purposes, and such lands and interests therein, 
     may be acquired, and construction prosecuted thereon

[[Page H7660]]

     prior to approval of title; reserve plant and Government and 
     contractor-owned equipment layaway; $2,106,444,000, to remain 
     available for obligation until September 30, 2000.

                  National Guard and Reserve Equipment

       For procurement of aircraft, missiles, tracked combat 
     vehicles, ammunition, other weapons, and other procurement 
     for the reserve components of the Armed Forces; $653,000,000, 
     to remain available for obligation until September 30, 2000: 
     Provided, That the Chiefs of the Reserve and National Guard 
     components shall, not later than 30 days after the enactment 
     of this Act, individually submit to the congressional defense 
     committees the modernization priority assessment for their 
     respective Reserve or National Guard component.

                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment; $5,156,507,000, to remain available 
     for obligation until September 30, 1999.

            Research, Development, Test and Evaluation, Navy

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment; $8,115,686,000, to remain available 
     for obligation until September 30, 1999: Provided, That funds 
     appropriated in this paragraph which are available for the V-
     22 may be used to meet unique requirements of the Special 
     Operations Forces.

         Research, Development, Test and Evaluation, Air Force

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment; $14,507,804,000, to remain 
     available for obligation until September 30, 1999: Provided, 
     That of the funds made available in this paragraph, 
     $4,000,000 shall be only for development of coal-derived jet 
     fuel technologies.

        Research, Development, Test and Evaluation, Defense-Wide

       For expenses of activities and agencies of the Department 
     of Defense (other than the military departments), necessary 
     for basic and applied scientific research, development, test 
     and evaluation; advanced research projects as may be 
     designated and determined by the Secretary of Defense, 
     pursuant to law; maintenance, rehabilitation, lease, and 
     operation of facilities and equipment; $9,821,760,000, to 
     remain available for obligation until September 30, 1999: 
     Provided, That not less than $409,898,000 of the funds 
     appropriated in this paragraph shall be made available only 
     for the Sea-Based Wide Area Defense (Navy Upper-Tier) 
     program: Provided further, That funds appropriated for the 
     Dual-Use Applications Program under section 5803 of the 
     Treasury, Postal Service, and General Government 
     Appropriations Act, 1997 (Public Law 104-208), shall remain 
     available for obligation until September 30, 1998.

               Developmental Test and Evaluation, Defense

       For expenses, not otherwise provided for, of independent 
     activities of the Director, Test and Evaluation in the 
     direction and supervision of developmental test and 
     evaluation, including performance and joint developmental 
     testing and evaluation; and administrative expenses in 
     connection therewith; $258,183,000, to remain available for 
     obligation until September 30, 1999.

                Operational Test and Evaluation, Defense

       For expenses, not otherwise provided for, necessary for the 
     independent activities of the Director, Operational Test and 
     Evaluation in the direction and supervision of operational 
     test and evaluation, including initial operational test and 
     evaluation which is conducted prior to, and in support of, 
     production decisions; joint operational testing and 
     evaluation; and administrative expenses in connection 
     therewith; $31,384,000, to remain available for obligation 
     until September 30, 1999.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       For the Defense Working Capital Funds; $971,952,000.

                     National Defense Sealift Fund

       For National Defense Sealift Fund programs, projects, and 
     activities, and for expenses of the National Defense Reserve 
     Fleet, as established by section 11 of the Merchant Ship 
     Sales Act of 1946 (50 U.S.C. App. 1744); $1,074,948,000, to 
     remain available until expended: Provided, That none of the 
     funds provided in this paragraph shall be used to award a new 
     contract that provides for the acquisition of any of the 
     following major components unless such components are 
     manufactured in the United States: auxiliary equipment, 
     including pumps, for all shipboard services; propulsion 
     system components (that is; engines, reduction gears, and 
     propellers); shipboard cranes; and spreaders for shipboard 
     cranes: Provided further, That the exercise of an option in a 
     contract awarded through the obligation of previously 
     appropriated funds shall not be considered to be the award of 
     a new contract: Provided further, That the Secretary of the 
     military department responsible for such procurement may 
     waive these restrictions on a case-by-case basis by 
     certifying in writing to the Committees on Appropriations of 
     the House of Representatives and the Senate, that adequate 
     domestic supplies are not available to meet Department of 
     Defense requirements on a timely basis and that such an 
     acquisition must be made in order to acquire capability for 
     national security purposes.

                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       For expenses, not otherwise provided for, for medical and 
     health care programs of the Department of Defense, as 
     authorized by law; $10,369,075,000, of which $10,095,007,000 
     shall be for Operation and maintenance, of which not to 
     exceed two per centum shall remain available until September 
     30, 1999, and of which $274,068,000, to remain available for 
     obligation until September 30, 2000, shall be for 
     Procurement.

           Chemical Agents and Munitions Destruction, Defense

       For expenses, not otherwise provided for, necessary for the 
     destruction of the United States stockpile of lethal chemical 
     agents and munitions in accordance with the provisions of 
     section 1412 of the Department of Defense Authorization Act, 
     1986 (50 U.S.C. 1521), and for the destruction of other 
     chemical warfare materials that are not in the chemical 
     weapon stockpile, $600,700,000, of which $462,200,000 shall 
     be for Operation and maintenance, $72,200,000 shall be for 
     Procurement to remain available until September 30, 2000, and 
     $66,300,000 shall be for Research, development, test and 
     evaluation to remain available until September 30, 1999: 
     Provided, That of the funds available under this heading, 
     $1,000,000 shall be available until expended each year only 
     for a Johnston Atoll off-island leave program: Provided 
     further, That the Secretaries concerned shall, pursuant to 
     uniform regulations, prescribe travel and transportation 
     allowances for travel by participants in the off-island leave 
     program.

         Drug Interdiction and Counter-Drug Activities, Defense


                     (including transfer of funds)

       For drug interdiction and counter-drug activities of the 
     Department of Defense, for transfer to appropriations 
     available to the Department of Defense for military personnel 
     of the reserve components serving under the provisions of 
     title 10 and title 32, United States Code; for Operation and 
     maintenance; for Procurement; and for Research, development, 
     test and evaluation; $712,882,000: Provided, That the funds 
     appropriated under this head shall be available for 
     obligation for the same time period and for the same purpose 
     as the appropriation to which transferred: Provided further, 
     That the transfer authority provided in this paragraph is in 
     addition to any transfer authority contained elsewhere in 
     this Act.

                    Office of the Inspector General

       For expenses and activities of the Office of the Inspector 
     General in carrying out the provisions of the Inspector 
     General Act of 1978, as amended; $138,380,000, of which 
     $136,580,000 shall be for Operation and maintenance, of which 
     not to exceed $500,000 is available for emergencies and 
     extraordinary expenses to be expended on the approval or 
     authority of the Inspector General, and payments may be made 
     on his certificate of necessity for confidential military 
     purposes; and of which $1,800,000, to remain available until 
     September 30, 2000, shall be for Procurement.

                               TITLE VII

                            RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

       For payment to the Central Intelligence Agency Retirement 
     and Disability System Fund, to maintain proper funding level 
     for continuing the operation of the Central Intelligence 
     Agency Retirement and Disability System; $196,900,000.

               Intelligence Community Management Account


                     (including transfer of funds)

       For necessary expenses of the Intelligence Community 
     Management Account; $121,080,000, of which $39,011,000 for 
     the Advanced Research and Development Committee and the 
     Environmental Intelligence and Applications Program shall 
     remain available until September 30, 1999: Provided, That of 
     the funds appropriated under this heading, $27,000,000 shall 
     be transferred to the Department of Justice for the National 
     Drug Intelligence Center to support the Department of 
     Defense's counter-drug intelligence responsibilities, and of 
     the said amount, $1,500,000 for Procurement shall remain 
     available until September 30, 2000, and $3,000,000 for 
     Research, development, test and evaluation shall remain 
     available until September 30, 1999.

Payment to Kaho'olawe Island Conveyance, Remediation, and Environmental 
                            Restoration Fund

       For payment to Kaho'olawe Island Conveyance, Remediation, 
     and Environmental Restoration Fund, as authorized by law; 
     $35,000,000, to remain available until expended.

                 National Security Education Trust Fund

       For the purposes of title VIII of Public Law 102-183, 
     $2,000,000, to be derived from the National Security 
     Education Trust Fund, to remain available until expended.

                               TITLE VIII

                           GENERAL PROVISIONS

       Sec. 8001. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes not 
     authorized by the Congress.
       Sec. 8002. During the current fiscal year, provisions of 
     law prohibiting the payment of compensation to, or employment 
     of, any person not a citizen of the United States shall not 
     apply to personnel of the Department of Defense: Provided, 
     That salary increases granted to direct

[[Page H7661]]

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


                          (transfer of funds)

       Sec. 8005. Upon determination by the Secretary of Defense 
     that such action is necessary in the national interest, he 
     may, with the approval of the Office of Management and 
     Budget, transfer not to exceed $2,000,000,000 of working 
     capital funds of the Department of Defense or funds made 
     available in this Act to the Department of Defense for 
     military functions (except military construction) between 
     such appropriations or funds or any subdivision thereof, to 
     be merged with and to be available for the same purposes, and 
     for the same time period, as the appropriation or fund to 
     which transferred: Provided, That such authority to transfer 
     may not be used unless for higher priority items, based on 
     unforeseen military requirements, than those for which 
     originally appropriated and in no case where the item for 
     which funds are requested has been denied by Congress: 
     Provided further, That the Secretary of Defense shall notify 
     the Congress promptly of all transfers made pursuant to this 
     authority or any other authority in this Act: Provided 
     further, That no part of the funds in this Act shall be 
     available to prepare or present a request to the Committees 
     on Appropriations for reprogramming of funds, unless for 
     higher priority items, based on unforeseen military 
     requirements, than those for which originally appropriated 
     and in no case where the item for which reprogramming is 
     requested has been denied by the Congress: Provided further, 
     That of the authority provided under this section, not to 
     exceed $65,000,000 shall be available to meet requirements 
     for termination of the Reserve Mobilization Insurance 
     Program, notwithstanding chapter 1214 of title 10 of the 
     United States Code.


                          (transfer of funds)

       Sec. 8006. During the current fiscal year, cash balances in 
     working capital funds of the Department of Defense 
     established pursuant to section 2208 of title 10, United 
     States Code, may be maintained in only such amounts as are 
     necessary at any time for cash disbursements to be made 
     from such funds: Provided, That transfers may be made 
     between such funds: Provided further, That transfers may 
     be made between working capital funds and the ``Foreign 
     Currency Fluctuations, Defense'' appropriation and the 
     ``Operation and Maintenance'' appropriation accounts in 
     such amounts as may be determined by the Secretary of 
     Defense, with the approval of the Office of Management and 
     Budget, except that such transfers may not be made unless 
     the Secretary of Defense has notified the Congress of the 
     proposed transfer. Except in amounts equal to the amounts 
     appropriated to working capital funds in this Act, no 
     obligations may be made against a working capital fund to 
     procure or increase the value of war reserve material 
     inventory, unless the Secretary of Defense has notified 
     the Congress prior to any such obligation.
       Sec. 8007. Funds appropriated by this Act may not be used 
     to initiate a special access program without prior 
     notification 30 calendar days in session in advance to the 
     congressional defense committees.
       Sec. 8008. (a) None of the funds provided in this Act shall 
     be available to initiate (1) a multiyear contract that 
     employs economic order quantity procurement in excess of 
     $20,000,000 in any one year of the contract or that includes 
     an unfunded contingent liability in excess of $20,000,000, or 
     (2) a contract for advance procurement leading to a multiyear 
     contract that employs economic order quantity procurement in 
     excess of $20,000,000 in any one year, unless the 
     congressional defense committees have been notified at least 
     thirty days in advance of the proposed contract award: 
     Provided, That no part of any appropriation contained in this 
     Act shall be available to initiate a multiyear contract for 
     which the economic order quantity advance procurement is not 
     funded at least to the limits of the Government's liability: 
     Provided further, That no part of any appropriation contained 
     in this Act shall be available to initiate multiyear 
     procurement contracts for any systems or component thereof if 
     the value of the multiyear contract would exceed $500,000,000 
     unless specifically provided in this Act: Provided further, 
     That no multiyear procurement contract can be terminated 
     without 10-day prior notification to the congressional 
     defense committees: Provided further, That the execution of 
     multiyear authority shall require the use of a present value 
     analysis to determine lowest cost compared to an annual 
     procurement.
       Funds appropriated in title III of this Act may be used for 
     multiyear procurement contracts as follows:
       Apache Longbow radar;
       AV-8B aircraft; and
       Family of Medium Tactical Vehicles.
       (b) None of the funds provided in this Act and hereafter 
     may be used to submit to Congress (or to any committee of 
     Congress) a request for authority to enter into a contract 
     covered by those provisions of subsection (a) that precede 
     the first proviso of that subsection unless--
       (1) such request is made as part of the submission of the 
     President's Budget for the United States Government for any 
     fiscal year and is set forth in the Appendix to that budget 
     as part of proposed legislative language for appropriations 
     bills for the next fiscal year; or
       (2) such request is formally submitted by the President as 
     a budget amendment; or
       (3) the Secretary of Defense makes such request in writing 
     to the congressional defense committees.
       Sec. 8009. Within the funds appropriated for the operation 
     and maintenance of the Armed Forces, funds are hereby 
     appropriated pursuant to section 401 of title 10, United 
     States Code, for humanitarian and civic assistance costs 
     under chapter 20 of title 10, United States Code. Such funds 
     may also be obligated for humanitarian and civic assistance 
     costs incidental to authorized operations and pursuant to 
     authority granted in section 401 of chapter 20 of title 10, 
     United States Code, and these obligations shall be reported 
     to Congress on September 30 of each year: Provided, That 
     funds available for operation and maintenance shall be 
     available for providing humanitarian and similar assistance 
     by using Civic Action Teams in the Trust Territories of the 
     Pacific Islands and freely associated states of Micronesia, 
     pursuant to the Compact of Free Association as authorized by 
     Public Law 99-239: Provided further, That upon a 
     determination by the Secretary of the Army that such action 
     is beneficial for graduate medical education programs 
     conducted at Army medical facilities located in Hawaii, the 
     Secretary of the Army may authorize the provision of medical 
     services at such facilities and transportation to such 
     facilities, on a nonreimbursable basis, for civilian patients 
     from American Samoa, the Commonwealth of the Northern Mariana 
     Islands, the Marshall Islands, the Federated States of 
     Micronesia, Palau, and Guam.
       Sec. 8010. (a) During fiscal year 1998, the civilian 
     personnel of the Department of Defense may not be managed on 
     the basis of any end-strength, and the management of such 
     personnel during that fiscal year shall not be subject to 
     any constraint or limitation (known as an end-strength) on 
     the number of such personnel who may be employed on the 
     last day of such fiscal year.
       (b) The fiscal year 1999 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 1999 Department of 
     Defense budget request shall be prepared and submitted to the 
     Congress as if subsections (a) and (b) of this provision were 
     effective with regard to fiscal year 1999.
       (c) Nothing in this section shall be construed to apply to 
     military (civilian) technicians.
       Sec. 8011. Notwithstanding any other provision of law, none 
     of the funds made available by this Act shall be used by the 
     Department of Defense to exceed, outside the fifty United 
     States, its territories, and the District of Columbia, 
     125,000 civilian workyears: Provided, That workyears shall be 
     applied as defined in the Federal Personnel Manual: Provided 
     further, That workyears expended in dependent student hiring 
     programs for disadvantaged youths shall not be included in 
     this workyear limitation.
       Sec. 8012. None of the funds made available by this Act 
     shall be used in any way, directly or indirectly, to 
     influence congressional action on any legislation or 
     appropriation matters pending before the Congress.
       Sec. 8013. (a) None of the funds appropriated by this Act 
     shall be used to make contributions to the Department of 
     Defense Education Benefits Fund pursuant to section 2006(g) 
     of title 10, United States Code, representing the normal cost 
     for future benefits under section 3015(c) of title 38, United 
     States Code, for any member of the armed services who, on or 
     after the date of enactment of this Act--
       (1) enlists in the armed services for a period of active 
     duty of less than three years; or
       (2) receives an enlistment bonus under section 308a or 308f 
     of title 37, United States Code,

     nor shall any amounts representing the normal cost of such 
     future benefits be transferred from the Fund by the Secretary 
     of the Treasury to the Secretary of Veterans Affairs pursuant 
     to section 2006(d) of title 10, United States Code; nor shall 
     the Secretary of Veterans Affairs pay such benefits to any 
     such member: Provided, That in the case of a member covered 
     by clause (1), these limitations shall not apply to members 
     in combat arms skills or to members who enlist in the armed 
     services on or after July 1, 1989, under a program continued 
     or established by the Secretary of Defense in fiscal year 
     1991 to test the cost-effective use of special recruiting 
     incentives involving not more than nineteen noncombat arms 
     skills approved in advance by the Secretary of Defense: 
     Provided further, That this subsection applies only to active 
     components of the Army.
       (b) None of the funds appropriated by this Act shall be 
     available for the basic pay and allowances of any member of 
     the Army participating as a full-time student and receiving 
     benefits paid by the Secretary of Veterans Affairs from the 
     Department of Defense Education Benefits Fund when time spent 
     as a full-time student is credited toward completion of a 
     service commitment: Provided, That this subsection shall not 
     apply to those members who have reenlisted with this option 
     prior to October 1, 1987: Provided further, That this 
     subsection applies only to active components of the Army.

[[Page H7662]]

       Sec. 8014. None of the funds appropriated by this Act shall 
     be available to convert to contractor performance an activity 
     or function of the Department of Defense that, on or after 
     the date of enactment of this Act, is performed by more than 
     ten Department of Defense civilian employees until a most 
     efficient and cost-effective organization analysis is 
     completed on such activity or function and certification of 
     the analysis is made to the Committees on Appropriations of 
     the House of Representatives and the Senate: Provided, That 
     this section shall not apply to a commercial or industrial 
     type function of the Department of Defense that: (1) is 
     included on the procurement list established pursuant to 
     section 2 of the Act of June 25, 1938 (41 U.S.C. 47), 
     popularly referred to as the Javits-Wagner-O'Day Act; (2) 
     is planned to be converted to performance by a qualified 
     nonprofit agency for the blind or by a qualified nonprofit 
     agency for other severely handicapped individuals in 
     accordance with that Act; or (3) is planned to be 
     converted to performance by a qualified firm under 51 per 
     centum Native American ownership.


                          (transfer of funds)

       Sec. 8015. Funds appropriated in title III of this Act for 
     the Department of Defense Pilot Mentor-Protege Program may be 
     transferred to any other appropriation contained in this Act 
     solely for the purpose of implementing a Mentor-Protege 
     Program developmental assistance agreement pursuant to 
     section 831 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301 note), 
     as amended, under the authority of this provision or any 
     other transfer authority contained in this Act.
       Sec. 8016. None of the funds in this Act may be available 
     for the purchase by the Department of Defense (and its 
     departments and agencies) of welded shipboard anchor and 
     mooring chain 4 inches in diameter and under unless the 
     anchor and mooring chain are manufactured in the United 
     States from components which are substantially manufactured 
     in the United States: Provided, That for the purpose of this 
     section manufactured will include cutting, heat treating, 
     quality control, testing of chain and welding (including the 
     forging and shot blasting process): Provided further, That 
     for the purpose of this section substantially all of the 
     components of anchor and mooring chain shall be considered to 
     be produced or manufactured in the United States if the 
     aggregate cost of the components produced or manufactured in 
     the United States exceeds the aggregate cost of the 
     components produced or manufactured outside the United 
     States: Provided further, That when adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis, the Secretary of the service 
     responsible for the procurement may waive this restriction on 
     a case-by-case basis by certifying in writing to the 
     Committees on Appropriations that such an acquisition must be 
     made in order to acquire capability for national security 
     purposes.
       Sec. 8017. None of the funds appropriated by this Act 
     available for the Civilian Health and Medical Program of the 
     Uniformed Services (CHAMPUS) shall be available for the 
     reimbursement of any health care provider for inpatient 
     mental health service for care received when a patient is 
     referred to a provider of inpatient mental health care or 
     residential treatment care by a medical or health care 
     professional having an economic interest in the facility to 
     which the patient is referred: Provided, That this limitation 
     does not apply in the case of inpatient mental health 
     services provided under the program for the handicapped under 
     subsection (d) of section 1079 of title 10, United States 
     Code, provided as partial hospital care, or provided pursuant 
     to a waiver authorized by the Secretary of Defense because of 
     medical or psychological circumstances of the patient that 
     are confirmed by a health professional who is not a Federal 
     employee after a review, pursuant to rules prescribed by the 
     Secretary, which takes into account the appropriate level of 
     care for the patient, the intensity of services required by 
     the patient, and the availability of that care.
       Sec. 8018. Funds available in this Act may be used to 
     provide transportation for the next-of-kin of individuals who 
     have been prisoners of war or missing in action from the 
     Vietnam era to an annual meeting in the United States, under 
     such regulations as the Secretary of Defense may prescribe.
       Sec. 8019. Notwithstanding any other provision of law, 
     during the current fiscal year, the Secretary of Defense may, 
     by Executive Agreement, establish with host nation 
     governments in NATO member states a separate account into 
     which such residual value amounts negotiated in the return of 
     United States military installations in NATO member states 
     may be deposited, in the currency of the host nation, in lieu 
     of direct monetary transfers to the United States Treasury: 
     Provided, That such credits may be utilized only for the 
     construction of facilities to support United States military 
     forces in that host nation, or such real property maintenance 
     and base operating costs that are currently executed through 
     monetary transfers to such host nations: Provided further, 
     That the Department of Defense's budget submission for fiscal 
     year 1999 shall identify such sums anticipated in residual 
     value settlements, and identify such construction, real 
     property maintenance or base operating costs that shall be 
     funded by the host nation through such credits: Provided 
     further, That all military construction projects to be 
     executed from such accounts must be previously approved in a 
     prior Act of Congress: Provided further, That each such 
     Executive Agreement with a NATO member host nation shall be 
     reported to the congressional defense committees, the 
     Committee on International Relations of the House of 
     Representatives and the Committee on Foreign Relations of the 
     Senate thirty days prior to the conclusion and endorsement of 
     any such agreement established under this provision.
       Sec. 8020. None of the funds available to the Department of 
     Defense may be used to demilitarize or dispose of M-1 
     Carbines, M-1 Garand rifles, M-14 rifles, .22 caliber rifles, 
     .30 caliber rifles, or M-1911 pistols.
       Sec. 8021. Notwithstanding any other provision of law, none 
     of the funds appropriated by this Act shall be available to 
     pay more than 50 per centum of an amount paid to any person 
     under section 308 of title 37, United States Code, in a lump 
     sum.
       Sec. 8022. No more than $500,000 of the funds appropriated 
     or made available in this Act shall be used during a single 
     fiscal year for any single relocation of an organization, 
     unit, activity or function of the Department of Defense into 
     or within the National Capital Region: Provided, That the 
     Secretary of Defense may waive this restriction on a case-by-
     case basis by certifying in writing to the congressional 
     defense committees that such a relocation is required in the 
     best interest of the Government.
       Sec. 8023. A member of a reserve component whose unit or 
     whose residence is located in a state which is not contiguous 
     with another state is authorized to travel in a space 
     required status on aircraft of the Armed Forces between home 
     and place of inactive duty training, or place of duty in lieu 
     of unit training assembly, when there is no road or railroad 
     transportation (or combination of road and railroad 
     transportation between those locations: Provided, That a 
     member traveling in that status on a military aircraft 
     pursuant to the authority provided in this section is not 
     authorized to receive travel, transportation, or per diem 
     allowances in connection with that travel.
       Sec. 8024. In addition to funds provided elsewhere in this 
     Act, $8,000,000 is appropriated only for incentive payments 
     authorized by section 504 of the Indian Financing Act of 
     1974, 25 U.S.C. 1544: Provided, That these payments shall be 
     available only to contractors which have submitted 
     subcontracting plans pursuant to 15 U.S.C. 637(d), and 
     according to regulations which shall be promulgated by the 
     Secretary of Defense within 90 days of the passage of this 
     Act: Provided further, That contractors participating in the 
     test program established by Section 854 of Public Law 101-189 
     (15 U.S.C. 637 note) shall be eligible for the program 
     established by Section 504 of the Indian Financing Act of 
     1974 (25 U.S.C. 1544).
       Sec. 8025. During the current fiscal year, none of the 
     funds available to the Department of Defense may be used to 
     procure or acquire (1) defensive handguns unless such 
     handguns are the M-9 or M-11 9 mm Department of Defense 
     standard handguns, or (2) offensive handguns except for the 
     Special Operations Forces: Provided, That the foregoing shall 
     not apply to handguns and ammunition for marksmanship 
     competitions.
       Sec. 8026. During the current fiscal year, funds 
     appropriated or otherwise available for any Federal agency, 
     the Congress, the judicial branch, or the District of 
     Columbia may be used for the pay, allowances, and benefits of 
     an employee as defined by section 2105 of title 5 or an 
     individual employed by the government of the District of 
     Columbia, permanent or temporary indefinite, who--
       (1) is a member of a Reserve component of the Armed Forces, 
     as described in section 10101 of title 10, or the National 
     Guard, as described in section 101 of title 32;
       (2) performs, for the purpose of providing military aid to 
     enforce the law or providing assistance to civil authorities 
     in the protection or saving of life or property or prevention 
     of injury--
       (A) Federal service under sections 331, 332, 333, or 12406 
     of title 10, or other provision of law, as applicable; or
       (B) full-time military service for his or her State, the 
     District of Columbia, the Commonwealth of Puerto Rico, or a 
     territory of the United States; and
       (3) requests and is granted--
       (A) leave under the authority of this section; or
       (B) annual leave, which may be granted without regard to 
     the provisions of sections 5519 and 6323(b) of title 5, if 
     such employee is otherwise entitled to such annual leave:

     Provided, That any employee who requests leave under 
     subsection (3)(A) for service described in subsection (2) of 
     this section is entitled to such leave, subject to the 
     provisions of this section and of the last sentence of 
     section 6323(b) of title 5, and such leave shall be 
     considered leave under section 6323(b) of title 5.
       Sec. 8027. None of the funds appropriated by this Act shall 
     be available to perform any cost study pursuant to the 
     provisions of OMB Circular A-76 if the study being performed 
     exceeds a period of twenty-four months after initiation of 
     such study with respect to a single function activity or 
     forty-eight months after initiation of such study for a 
     multi-function activity.
       Sec. 8028. Funds appropriated by this Act for the American 
     Forces Information Service shall not be used for any national 
     or international political or psychological activities.
       Sec. 8029. Notwithstanding any other provision of law or 
     regulation, the Secretary of Defense may adjust wage rates 
     for civilian employees hired for certain health care 
     occupations as authorized for the Secretary of Veterans 
     Affairs by section 7455 of title 38, United States Code.
       Sec. 8030. None of the funds appropriated or made available 
     in this Act shall be used to reduce or disestablish the 
     operation of the 53rd Weather Reconnaissance Squadron of the 
     Air Force Reserve, if such action would reduce the WC-130 
     Weather Reconnaissance mission below the levels funded in 
     this Act.
       Sec. 8031. (a) Of the funds for the procurement of supplies 
     or services appropriated by this

[[Page H7663]]

     Act, qualified nonprofit agencies for the blind or other 
     severely handicapped shall be afforded the maximum 
     practicable opportunity to participate as subcontractors and 
     supplies in the performance of contracts let by the 
     Department of Defense.
       (b) During the current fiscal year, a business concern 
     which has negotiated with a military service or defense 
     agency a subcontracting plan for the participation by small 
     business concerns pursuant to section 8(d) of the Small 
     Business Act (15 U.S.C. 637(d)) shall be given credit toward 
     meeting that subcontracting goal for any purchases made from 
     qualified nonprofit agencies for the blind or other severely 
     handicapped.
       (c) For the purpose of this section, the phrase ``qualified 
     nonprofit agency for the blind or other severely 
     handicapped'' means a nonprofit agency for the blind or other 
     severely handicapped that has been approved by the Committee 
     for the Purchase from the Blind and Other Severely 
     Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-
     48).
       Sec. 8032. During the current fiscal year, net receipts 
     pursuant to collections from third party payers pursuant to 
     section 1095 of title 10, United States Code, shall be made 
     available to the local facility of the uniformed services 
     responsible for the collections and shall be over and above 
     the facility's direct budget amount.
       Sec. 8033. During the current fiscal year, the Department 
     of Defense is authorized to incur obligations of not to 
     exceed $350,000,000 for purposes specified in section 
     2350j(c) of title 10, United States Code, in anticipation of 
     receipt of contributions, only from the Government of Kuwait, 
     under that section: Provided, That, upon receipt, such 
     contributions from the Government of Kuwait shall be credited 
     to the appropriations or fund which incurred such 
     obligations.
       Sec. 8034. Of the funds made available in this Act, not 
     less than $26,247,000 shall be available for the Civil Air 
     Patrol, of which $22,702,000 shall be available for Operation 
     and maintenance.
       Sec. 8035. (a) None of the funds appropriated in this Act 
     are available to establish a new Department of Defense 
     (department) federally funded research and development center 
     (FFRDC), either as a new entity, or as a separate entity 
     administrated by an organization managing another FFRDC, or 
     as a nonprofit membership corporation consisting of a 
     consortium of other FFRDCs and other non-profit entities.
       (b) Limitation on Compensation--Federally Funded Research 
     and Development Center (FFRDC).--No member of a Board of 
     Directors, Trustees, Overseers, Advisory Group, Special 
     Issues Panel, Visiting Committee, or any similar entity of a 
     defense FFRDC, and no paid consultant to any defense FFRDC, 
     may be compensated for his or her services as a member of 
     such entity, or as a paid consultant, except under the same 
     conditions, and to the same extent, as members of the Defense 
     Science Board: Provided, That a member of any such entity 
     referred to previously in this subsection shall be allowed 
     travel expenses and per diem as authorized under the Federal 
     Joint Travel Regulations, when engaged in the performance of 
     membership duties.
       (c) Notwithstanding any other provision of law, none of the 
     funds available to the department from any source during 
     fiscal year 1998 may be used by a defense FFRDC, through a 
     fee or other payment mechanism, for charitable contributions, 
     for construction of new buildings, for payment of cost 
     sharing for projects funded by government grants, or for 
     absorption of contract overruns.
       (d) Notwithstanding any other provision of law, of the 
     funds available to the department during fiscal year 1998, 
     not more than 6,206 staff years of technical effort (staff 
     years) may be funded for defense FFRDCs: Provided, That of 
     the specific amount referred to previously in this 
     subsection, not more than 1,105 staff years may be funded for 
     the defense studies and analysis FFRDCs.
       (e) Notwithstanding any other provision of law, the 
     Secretary of Defense shall control the total number of staff 
     years to be performed by defense FFRDCs during fiscal year 
     1998 so as to reduce the total amounts appropriated in titles 
     II, III, and IV of this Act by $71,800,000: Provided, That 
     the total amounts appropriated in titles II, III, and IV of 
     this Act are hereby reduced by $71,800,000 to reflect savings 
     from the use of defense FFRDCs by the department.
       (f) Within 60 days after enactment of this Act, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report presenting the specific amounts 
     of staff years of technical effort to be allocated by the 
     department for each defense FFRDC during fiscal year 1998: 
     Provided, That, after the submission of the report required 
     by this subsection, the department may not reallocate more 
     than five per centum of an FFRDC's staff years among other 
     defense FFRDCs until 30 days after a detailed justification 
     for any such reallocation is submitted to the congressional 
     defense committees.
       (g) The Secretary of Defense shall, with the submission of 
     the department's fiscal year 1999 budget request, submit a 
     report presenting the specific amounts of staff years of 
     technical effort to be allocated for each defense FFRDC 
     during that fiscal year.
       (h) No part of the reductions contained in subsection (e) 
     of this section may be applied against any budget activity, 
     activity group, subactivity group, line item, program 
     element, program, project, subproject or activity which does 
     not fund defense FFRDC activities within each appropriation 
     account, and the reductions in subsection (e) shall be 
     allocated on a proportional basis.
       (i) Not later than 90 days after enactment of this Act, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report listing the specific funding 
     reductions allocated to each category listed in subsection 
     (h) above pursuant to this section.
       Sec. 8036. None of the funds in this or any other Act shall 
     be available for the preparation of studies on--
       (a) the cost effectiveness or feasibility of removal and 
     transportation of unitary chemical weapons or agents from the 
     eight chemical storage sites within the continental United 
     States to Johnston Atoll: Provided, That this prohibition 
     shall not apply to General Accounting Office studies 
     requested by a Member of Congress or a Congressional 
     Committee; and
       (b) the potential future uses of the nine chemical disposal 
     facilities other than for the destruction of stockpile 
     chemical munitions and as limited by section 1412(c)(2), 
     Public Law 99-145: Provided, That this prohibition does not 
     apply to future use studies for the CAMDS facility at Tooele, 
     Utah.
       Sec. 8037. None of the funds appropriated or made available 
     in this Act shall be used to procure carbon, alloy or armor 
     steel plate for use in any Government-owned facility or 
     property under the control of the Department of Defense which 
     were not melted and rolled in the United States or Canada: 
     Provided, That these procurement restrictions shall apply to 
     any and all Federal Supply Class 9515, American Society of 
     Testing and Materials (ASTM) or American Iron and Steel 
     Institute (AISI) specifications of carbon, alloy or armor 
     steel plate: Provided further, That the Secretary of the 
     military department responsible for the procurement may 
     waive this restriction on a case-by-case basis by 
     certifying in writing to the Committees on Appropriations 
     of the House of Representatives and the Senate that 
     adequate domestic supplies are not available to meet 
     Department of Defense requirements on a timely basis and 
     that such an acquisition must be made in order to acquire 
     capability for national security purposes: Provided 
     further, That these restrictions shall not apply to 
     contracts which are in being as of the date of enactment 
     of this Act.
       Sec. 8038. For the purposes of this Act, the term 
     ``congressional defense committees'' means the National 
     Security Committee of the House of Representatives, the Armed 
     Services Committee of the Senate, the Subcommittee on Defense 
     of the Committee on Appropriations of the Senate, and the 
     Subcommittee on National Security of the Committee on 
     Appropriations of the House of Representatives.
       Sec. 8039. During the current fiscal year, the Department 
     of Defense may acquire the modification, depot maintenance 
     and repair of aircraft, vehicles and vessels as well as the 
     production of components and other Defense-related articles, 
     through competition between Department of Defense depot 
     maintenance activities and private firms: Provided, That the 
     Senior Acquisition Executive of the military department or 
     defense agency concerned, with power of delegation, shall 
     certify that successful bids include comparable estimates of 
     all direct and indirect costs for both public and private 
     bids: Provided further, That Office of Management and Budget 
     Circular A-76 shall not apply to competitions conducted under 
     this section.
       Sec. 8040. (a)(1) If the Secretary of Defense, after 
     consultation with the United States Trade Representative, 
     determines that a foreign country which is party to an 
     agreement described in paragraph (2) has violated the terms 
     of the agreement by discriminating against certain types of 
     products produced in the United States that are covered by 
     the agreement, the Secretary of Defense shall rescind the 
     Secretary's blanket waiver of the Buy American Act with 
     respect to such types of products produced in that foreign 
     country.
       (2) An agreement referred to in paragraph (1) is any 
     reciprocal defense procurement memorandum of understanding, 
     between the United States and a foreign country pursuant to 
     which the Secretary of Defense has prospectively waived the 
     Buy American Act for certain products in that country.
       (b) The Secretary of Defense shall submit to Congress a 
     report on the amount of Department of Defense purchases from 
     foreign entities in fiscal year 1998. Such report shall 
     separately indicate the dollar value of items for which the 
     Buy American Act was waived pursuant to any agreement 
     described in subsection (a)(2), the Trade Agreement Act of 
     1979 (19 U.S.C. 2501 et seq.), or any international agreement 
     to which the United States is a party.
       (c) For purposes of this section, the term ``Buy American 
     Act'' means title III of the Act entitled ``An Act making 
     appropriations for the Treasury and Post Office Departments 
     for the fiscal year ending June 30, 1934, and for other 
     purposes'', approved March 3, 1933 (41 U.S.C. 10a et seq.).
       Sec. 8041. The total amounts appropriated in titles II, 
     III, and IV of this Act are hereby reduced by $300,000,000 to 
     reflect savings from the use of advisory and assistance 
     services by the Department of Defense: Provided, That the 
     savings shall be applied to the following titles in the 
     following amounts:
       Title II, Operation and Maintenance, $112,000,000;
       Title III, Procurement, $62,000,000; and
       Title IV, Research, Development, Test and Evaluation, 
     $126,000,000:

     Provided further, That the savings specified shall be applied 
     only to funds budgeted to purchase advisory and assistance 
     services: Provided further, That the savings shall be applied 
     on a pro-rata basis to each program, project and activity 
     which included budget funds for advisory and assistance 
     services.
       Sec. 8042. Appropriations contained in this Act that remain 
     available at the end of the current fiscal year as a result 
     of energy cost savings realized by the Department of Defense 
     shall remain available for obligation for the next fiscal 
     year to the extent, and for the purposes, provided in section 
     2865 of title 10, United States Code.

[[Page H7664]]

       Sec. 8043. Notwithstanding any other provision of this Act, 
     the amounts provided in all appropriation accounts in titles 
     III and IV of this Act are reduced by 1.5 percent: Provided, 
     That these reductions shall be applied on a pro-rata basis to 
     each line item, program element, program, project, 
     subproject, and activity within each appropriation account: 
     Provided further, That not later than 60 days after the 
     enactment of this Act, the Undersecretary of Defense 
     (Comptroller) shall submit a report to the congressional 
     defense committees listing the specific funding reductions 
     allocated to each category listed in the preceding proviso 
     pursuant to this section.


                     (including transfer of funds)

       Sec. 8044. Amounts deposited during the current fiscal year 
     to the special account established under 40 U.S.C. 485(h)(2) 
     and to the special account established under 10 U.S.C. 
     2667(d)(1) are appropriated and shall be available until 
     transferred by the Secretary of Defense to current applicable 
     appropriations or funds of the Department of Defense under 
     the terms and conditions specified by 40 U.S.C. 485(h)(2) (A) 
     and (B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to 
     be available for the same time period and the same purposes 
     as the appropriation to which transferred.
       Sec. 8045. During the current fiscal year, appropriations 
     available to the Department of Defense may be used to 
     reimburse a member of a reserve component of the Armed Forces 
     who is not otherwise entitled to travel and transportation 
     allowances and who occupies transient government housing 
     while performing active duty for training or inactive duty 
     training: Provided, That such members may be provided lodging 
     in kind if transient government quarters are unavailable as 
     if the member was entitled to such allowances under 
     subsection (a) of section 404 of title 37, United States 
     Code: Provided further, That if lodging in kind is provided, 
     any authorized service charge or cost of such lodging may be 
     paid directly from funds appropriated for operation and 
     maintenance of the reserve component of the member concerned.
       Sec. 8046. The President shall include with each budget for 
     a fiscal year submitted to the Congress under section 1105 of 
     title 31, United States Code, materials that shall identify 
     clearly and separately the amounts requested in the budget 
     for appropriation for that fiscal year for salaries and 
     expenses related to administrative activities of the 
     Department of Defense, the military departments, and the 
     Defense Agencies.
       Sec. 8047. Notwithstanding any other provision of law, 
     funds available for ``Drug Interdiction and Counter-Drug 
     Activities, Defense'' may be obligated for the Young Marines 
     program.
       Sec. 8048. Notwithstanding any other provision of this Act, 
     the total amount appropriated in title IV of this Act is 
     hereby reduced by $474,000,000: Provided, That each program 
     element, program, project, subproject, and activity funded in 
     title IV of this Act shall be allocated a pro-rata share of 
     any of the reductions made by this section: Provided further, 
     That not later than 60 days after the enactment of this Act, 
     the Undersecretary of Defense (Comptroller) shall submit a 
     report to the congressional defense committees listing the 
     specific funding reductions allocated to each category listed 
     in the preceding proviso pursuant to this section.
       Sec. 8049. During the current fiscal year, amounts 
     contained in the Department of Defense Overseas Military 
     Facility Investment Recovery Account established by section 
     2921(c)(1) of the National Defense Authorization Act of 1991 
     (Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
     until expended for the payments specified by section 
     2921(c)(2) of that Act.
       Sec. 8050. Of the funds appropriated or otherwise made 
     available by this Act, not more than $119,200,000 shall be 
     available for payment of the operating costs of NATO 
     Headquarters: Provided, That the Secretary of Defense may 
     waive this section for Department of Defense support provided 
     to NATO forces in and around the former Yugoslavia.
       Sec. 8051. During the current fiscal year, appropriations 
     which are available to the Department of Defense for 
     operation and maintenance may be used to purchase items 
     having an investment item unit cost of not more than 
     $100,000.
       Sec. 8052. (a) During the current fiscal year, none of the 
     appropriations or funds available to the Department of 
     Defense Working Capital Funds shall be used for the purchase 
     of an investment item for the purpose of acquiring a new 
     inventory item for sale or anticipated sale during the 
     current fiscal year or a subsequent fiscal year to customers 
     of the Department of Defense Working Capital Funds if such an 
     item would not have been chargeable to the Department of 
     Defense Working Capital Funds during fiscal year 1994 and if 
     the purchase of such an investment item would be chargeable 
     during the current fiscal year to appropriations made to the 
     Department of Defense for procurement.
       (b) The fiscal year 1999 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 1999 Department of 
     Defense budget shall be prepared and submitted to the 
     Congress on the basis that any equipment which was classified 
     as an end item and funded in a procurement appropriation 
     contained in this Act shall be budgeted for in a proposed 
     fiscal year 1999 procurement appropriation and not in the 
     supply management business area or any other area or category 
     of the Department of Defense Working Capital Funds.
       Sec. 8053. None of the funds provided in this Act and 
     hereafter shall be available for use by a Military Department 
     to modify an aircraft, weapon, ship or other item of 
     equipment, that the Military Department concerned plans to 
     retire or otherwise dispose of within five years after 
     completion of the modification: Provided, That this 
     prohibition shall not apply to safety modifications: Provided 
     further, That this prohibition may be waived by the Secretary 
     of a Military Department if the Secretary determines it is in 
     the best national security interest of the United States to 
     provide such waiver and so notifies the congressional defense 
     committees in writing.
       Sec. 8054. None of the funds appropriated by this Act for 
     programs of the Central Intelligence Agency shall remain 
     available for obligation beyond the current fiscal year, 
     except for funds appropriated for the Reserve for 
     Contingencies, which shall remain available until September 
     30, 1999.
       Sec. 8055. Notwithstanding any other provision of law, 
     funds made available in this Act for the Defense Intelligence 
     Agency may be used for the design, development, and 
     deployment of General Defense Intelligence Program 
     intelligence communications and intelligence information 
     systems for the Services, the Unified and Specified Commands, 
     and the component commands.
       Sec. 8056. Of the funds appropriated by the Department of 
     Defense under the heading ``Operation and Maintenance, 
     Defense-Wide'', not less than $8,000,000 shall be made 
     available only for the mitigation of environmental impacts, 
     including training and technical assistance to tribes, 
     related administrative support, the gathering of information, 
     documenting of environmental damage, and developing a system 
     for prioritization of mitigation and cost to complete 
     estimates for mitigation, on Indian lands resulting from 
     Department of Defense activities.
       Sec. 8057. Amounts collected for the use of the facilities 
     of the National Science Center for Communications and 
     Electronics during the current fiscal year pursuant to 
     section 1459(g) of the Department of Defense Authorization 
     Act, 1986, and deposited to the special account established 
     under subsection 1459(g)(2) of that Act are appropriated and 
     shall be available until expended for the operation and 
     maintenance of the Center as provided for in subsection 
     1459(g)(2).
       Sec. 8058. None of the funds appropriated in this Act may 
     be used to fill the commander's position at any military 
     medical facility with a health care professional unless the 
     prospective candidate can demonstrate professional 
     administrative skills.
       Sec. 8059. (a) None of the funds appropriated in this Act 
     may be expended by an entity of the Department of Defense 
     unless the entity, in expending the funds, complies with the 
     Buy American Act. For purposes of this subsection, the term 
     ``Buy American Act'' means title III of the Act entitled ``An 
     Act making appropriations for the Treasury and Post Office 
     Departments for the fiscal year ending June 30, 1934, and 
     for other purposes'', approved March 3, 1933 (41 U.S.C. 
     10a et seq.).
       (b) If the Secretary of Defense determines that a person 
     has been convicted of intentionally affixing a label bearing 
     a ``Made in America'' inscription to any product sold in or 
     shipped to the United States that is not made in America, the 
     Secretary shall determine, in accordance with section 2410f 
     of title 10, United States Code, whether the person should be 
     debarred from contracting with the Department of Defense.
       (c) In the case of any equipment or products purchased with 
     appropriations provided under this Act, it is the sense of 
     the Congress that any entity of the Department of Defense, in 
     expending the appropriation, purchase only American-made 
     equipment and products, provided that American-made equipment 
     and products are cost-competitive, quality-competitive, and 
     available in a timely fashion.
       Sec. 8060. None of the funds appropriated by this Act shall 
     be available for a contract for studies, analysis, or 
     consulting services entered into without competition on the 
     basis of an unsolicited proposal unless the head of the 
     activity responsible for the procurement determines--
       (1) as a result of thorough technical evaluation, only one 
     source is found fully qualified to perform the proposed work, 
     or
       (2) the purpose of the contract is to explore an 
     unsolicited proposal which offers significant scientific or 
     technological promise, represents the product of original 
     thinking, and was submitted in confidence by one source, or
       (3) the purpose of the contract is to take advantage of 
     unique and significant industrial accomplishment by a 
     specific concern, or to insure that a new product or idea of 
     a specific concern is given financial support:

     Provided, That this limitation shall not apply to contracts 
     in an amount of less than $25,000, contracts related to 
     improvements of equipment that is in development or 
     production, or contracts as to which a civilian official of 
     the Department of Defense, who has been confirmed by the 
     Senate, determines that the award of such contract is in the 
     interest of the national defense.
       Sec. 8061. (a) Except as provided in subsections (b) and 
     (c), none of the funds made available by this Act may be 
     used--
       (1) to establish a field operating agency; or
       (2) to pay the basic pay of a member of the Armed Forces or 
     civilian employee of the Department who is transferred or 
     reassigned from a headquarters activity if the member or 
     employee's place of duty remains at the location of that 
     headquarters.
       (b) The Secretary of Defense or Secretary of a military 
     department may waive the limitations in subsection (a), on a 
     case-by-case basis, if the Secretary determines, and 
     certifies to the Committees on Appropriations of the House of 
     Representatives and Senate that the granting of the waiver 
     will reduce the personnel requirements or the financial 
     requirements of the department.
       (c) This section does not apply to field operating agencies 
     funded within the National Foreign Intelligence Program.
       Sec. 8062. Funds appropriated by this Act for intelligence 
     activities are deemed to be specifically authorized by the 
     Congress for purposes of

[[Page H7665]]

     section 504 of the National Security Act of 1947 (50 U.S.C. 
     414) during fiscal year 1998 until the enactment of the 
     Intelligence Authorization Act for Fiscal Year 1998.
       Sec. 8063. Notwithstanding section 303 of Public Law 96-487 
     or any other provision of law, the Secretary of the Navy is 
     authorized to lease real and personal property at Naval Air 
     Facility, Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for 
     commercial, industrial or other purposes.


                             (RESCISSIONS)

       Sec. 8064. Of the funds provided in Department of Defense 
     Appropriations Acts, the following funds are hereby rescinded 
     from the following accounts in the specified amounts:
       ``Shipbuilding and Conversion, Navy, 1996/2000'', 
     $35,600,000;
       ``Other Procurement, Navy, 1996/1998'', $3,300,000;
       ``Aircraft Procurement, Army, 1997/1999'', $5,000,000;
       ``Procurement of Ammunition, Army, 1997/1999'', $5,000,000;
       ``Other Procurement, Army, 1997/1999'', $6,000,000;
       ``Other Procurement, Navy, 1997/1999'', $2,200,000;
       ``Aircraft Procurement, Navy, 1997/1999'', $24,000,000;
       ``Research, Development, Test and Evaluation, Army, 1997/
     1998'', $6,000,000;
       ``Research, Development, Test and Evaluation, Navy, 1997/
     1998'', $40,000,000;
       ``Research, Development, Test and Evaluation, Air Force, 
     1997/1998'', $25,000,000;
       ``Research, Development, Test and Evaluation, Defense-Wide, 
     1997/1998'', $24,000,000.
         Sec. 8065. None of the funds available in this Act may be 
     used to reduce the authorized positions for military 
     (civilian) technicians of the Army National Guard, the Air 
     National Guard, Army Reserve and Air Force Reserve for the 
     purpose of applying any administratively imposed civilian 
     personnel ceiling, freeze, or reduction on military 
     (civilian) technicians, unless such reductions are a direct 
     result of a reduction in military force structure.
         Sec. 8066. None of the funds appropriated or otherwise 
     made available in this Act may be obligated or expended for 
     assistance to the Democratic People's Republic of North Korea 
     unless specifically appropriated for that purpose.
         Sec. 8067. During the current fiscal year, funds 
     appropriated in this Act are available to compensate members 
     of the National Guard for duty performed pursuant to a plan 
     submitted by a Governor of a State and approved by the 
     Secretary of Defense under section 112 of title 32, United 
     States Code: Provided, That during the performance of such 
     duty, the members of the National Guard shall be under State 
     command and control: Provided further, That such duty shall 
     be treated as full-time National Guard duty for purposes of 
     sections 12602 (a)(2) and (b)(2) of title 10, United States 
     Code.
         Sec. 8068. Funds appropriated in this Act for operation 
     and maintenance of the Military Departments, Unified and 
     Specified Commands and Defense Agencies shall be available 
     for reimbursement of pay, allowances and other expenses which 
     would otherwise be incurred against appropriations for the 
     National Guard and Reserve when members of the National Guard 
     and Reserve provide intelligence support to Unified Commands, 
     Defense Agencies and Joint Intelligence Activities, including 
     the activities and programs included within the General 
     Defense Intelligence Program and the Consolidated Cryptologic 
     Program: Provided, That nothing in this section authorizes 
     deviation from established Reserve and National Guard 
     personnel and training procedures.
         Sec. 8069. During the current fiscal year, none of the 
     funds appropriated in this Act may be used to reduce the 
     civilian medical and medical support personnel assigned to 
     military treatment facilities below the September 30, 1997 
     level: Provided, That the Service Surgeons General may waive 
     this section by certifying to the congressional defense 
     committees that the beneficiary population is declining in 
     some catchment areas and civilian strength reductions may be 
     consistent with responsible resource stewardship and 
     capitation-based budgeting.


                     (INCLUDING TRANSFER OF FUNDS)

         Sec. 8070. None of the funds appropriated in this Act may 
     be transferred to or obligated from the Pentagon Reservation 
     Maintenance Revolving Fund, unless the Secretary of Defense 
     certifies that the total cost for the planning, design, 
     construction and installation of equipment for the renovation 
     of the Pentagon Reservation will not exceed $1,118,000,000.
         Sec. 8071. (a) None of the funds available to the 
     Department of Defense for any fiscal year for drug 
     interdiction or counter-drug activities may be transferred to 
     any other department or agency of the United States except as 
     specifically provided in an appropriations law.
         (b) None of the funds available to the Central 
     Intelligence Agency for any fiscal year for drug interdiction 
     and counter-drug activities may be transferred to any other 
     department or agency of the United States except as 
     specifically provided in an appropriations law.


                          (TRANSFER OF FUNDS)

         Sec. 8072. Appropriations available in this Act under the 
     heading ``Operation and Maintenance, Defense-Wide'' for 
     increasing energy and water efficiency in Federal buildings 
     may, during their period of availability, be transferred to 
     other appropriations or funds of the Department of Defense 
     for projects related to increasing energy and water 
     efficiency, to be merged with and to be available for the 
     same general purposes, and for the same time period, as 
     the appropriation or fund to which transferred.
       Sec. 8073. None of the funds appropriated by this Act may 
     be used for the procurement of ball and roller bearings other 
     than those produced by a domestic source and of domestic 
     origin: Provided, That the Secretary of the military 
     department responsible for such procurement may waive this 
     restriction on a case-by-case basis by certifying in writing 
     to the Committees on Appropriations of the House of 
     Representatives and the Senate, that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes.
       Sec. 8074. Notwithstanding any other provision of law, 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to American Samoa: 
     Provided, That notwithstanding any other provision of law, 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to the Indian Health 
     Service when it is in conjunction with a civil-military 
     project.
       Sec. 8075. None of the funds in this Act may be used to 
     purchase any supercomputer which is not manufactured in the 
     United States, unless the Secretary of Defense certifies to 
     the congressional defense committees that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes that is not available from United States 
     manufacturers.
       Sec. 8076. Notwithstanding any other provision of law, the 
     Naval shipyards of the United States shall be eligible to 
     participate in any manufacturing extension program financed 
     by funds appropriated in this or any other Act.
       Sec. 8077. Notwithstanding any other provision of law, each 
     contract awarded by the Department of Defense during the 
     current fiscal year for construction or service performed in 
     whole or in part in a State which is not contiguous with 
     another State and has an unemployment rate in excess of the 
     national average rate of unemployment as determined by the 
     Secretary of Labor, shall include a provision requiring the 
     contractor to employ, for the purpose of performing that 
     portion of the contract in such State that is not contiguous 
     with another State, individuals who are residents of such 
     State and who, in the case of any craft or trade, possess or 
     would be able to acquire promptly the necessary skills: 
     Provided, That the Secretary of Defense may waive the 
     requirements of this section, on a case-by-case basis, in the 
     interest of national security.
       Sec. 8078. During the current fiscal year, the Army shall 
     use the former George Air Force Base as the airhead for the 
     National Training Center at Fort Irwin: Provided, That none 
     of the funds in this Act shall be obligated or expended to 
     transport Army personnel into Edwards Air Force Base for 
     training rotations at the National Training Center.
       Sec. 8079. (a) The Secretary of Defense shall submit, on a 
     quarterly basis, a report to the congressional defense 
     committees, the Committee on International Relations of the 
     House of Representatives and the Committee on Foreign 
     Relations of the Senate setting forth all costs (including 
     incremental costs) incurred by the Department of Defense 
     during the preceding quarter in implementing or supporting 
     resolutions of the United Nations Security Council, including 
     any such resolution calling for international sanctions, 
     international peacekeeping operations, and humanitarian 
     missions undertaken by the Department of Defense. The 
     quarterly report shall include an aggregate of all such 
     Department of Defense costs by operation or mission.
       (b) The Secretary of Defense shall detail in the quarterly 
     reports all efforts made to seek credit against past United 
     Nations expenditures and all efforts made to seek 
     compensation from the United Nations for costs incurred by 
     the Department of Defense in implementing and supporting 
     United Nations activities.
       Sec. 8080. (a) Limitation on Transfer of Defense Articles 
     and Services.--Notwithstanding any other provision of law, 
     none of the funds available to the Department of Defense for 
     the current fiscal year may be obligated or expended to 
     transfer to another nation or an international organization 
     any defense articles or services (other than intelligence 
     services) for use in the activities described in subsection 
     (b) unless the congressional defense committees, the 
     Committee on International Relations of the House of 
     Representatives, and the Committee on Foreign Relations of 
     the Senate are notified 15 days in advance of such transfer.
       (b) Covered Activities.--This section applies to--
       (1) any international peacekeeping or peace-enforcement 
     operation under the authority of chapter VI or chapter VII of 
     the United Nations Charter under the authority of a United 
     Nations Security Council resolution; and
       (2) any other international peacekeeping, peace-
     enforcement, or humanitarian assistance operation.
       (c) Required Notice.--A notice under subsection (a) shall 
     include the following:
       (1) A description of the equipment, supplies, or services 
     to be transferred.
       (2) A statement of the value of the equipment, supplies, or 
     services to be transferred.
       (3) In the case of a proposed transfer of equipment or 
     supplies--
       (A) a statement of whether the inventory requirements of 
     all elements of the Armed Forces (including the reserve 
     components) for the type of equipment or supplies to be 
     transferred have been met; and
       (B) a statement of whether the items proposed to be 
     transferred will have to be replaced and, if so, how the 
     President proposes to provide funds for such replacement.
       Sec. 8081. To the extent authorized by subchapter VI of 
     chapter 148 of title 10, United States Code, the Secretary of 
     Defense shall issue

[[Page H7666]]

     loan guarantees in support of U.S. defense exports not 
     otherwise provided for: Provided, That the total contingent 
     liability of the United States for guarantees issued under 
     the authority of this section may not exceed $15,000,000,000: 
     Provided further, That the exposure fees charged and 
     collected by the Secretary for each guarantee, shall be paid 
     by the country involved and shall not be financed as part of 
     a loan guaranteed by the United States: Provided further, 
     That the Secretary shall provide quarterly reports to the 
     Committees on Appropriations, Armed Services and Foreign 
     Relations of the Senate and the Committees on Appropriations, 
     National Security and International Relations in the House of 
     Representatives on the implementation of this program: 
     Provided further, That amounts charged for administrative 
     fees and deposited to the special account provided for under 
     section 2540c(d) of title 10, shall be available for paying 
     the costs of administrative expenses of the Department of 
     Defense that are attributable to the loan guarantee program 
     under subchapter VI of chapter 148 of title 10.
       Sec. 8082. None of the funds available to the Department of 
     Defense shall be obligated or expended to make a financial 
     contribution to the United Nations for the cost of an United 
     Nations peacekeeping activity (whether pursuant to assessment 
     or a voluntary contribution) or for payment of any United 
     States arrearage to the United Nations.
       Sec. 8083. None of the funds available to the Department of 
     Defense under this Act shall be obligated or expended to pay 
     a contractor under a contract with the Department of Defense 
     for costs of any amount paid by the contractor to an employee 
     when--
       (1) such costs are for a bonus or otherwise in excess of 
     the normal salary paid by the contractor to the employee; and
       (2) such bonus is part of restructuring costs associated 
     with a business combination.
       Sec. 8084. (a) None of the funds appropriated or otherwise 
     made available in this Act may be used to transport or 
     provide for the transportation of chemical munitions or 
     agents to the Johnston Atoll for the purpose of storing or 
     demilitarizing such munitions or agents.
       (b) The prohibition in subsection (a) shall not apply to 
     any obsolete World War II chemical munition or agent of the 
     United States found in the World War II Pacific Theater of 
     Operations.
       (c) The President may suspend the application of subsection 
     (a) during a period of war in which the United States is a 
     party.
       Sec. 8085. None of the funds provided in title II of this 
     Act for ``Former Soviet Union Threat Reduction'' may be 
     obligated or expended to finance housing for any individual 
     who was a member of the military forces of the Soviet Union 
     or for any individual who is or was a member of the military 
     forces of the Russian Federation.
       Sec. 8086. During the current fiscal year, no more than 
     $10,000,000 of appropriations made in this Act under the 
     heading ``Operation and Maintenance, Defense-Wide'' may be 
     transferred to appropriations available for the pay of 
     military personnel, to be merged with, and to be available 
     for the same time period as the appropriations to which 
     transferred, to be used in support of such personnel in 
     connection with support and services for eligible 
     organizations and activities outside the Department of 
     Defense pursuant to section 2012 of title 10, United States 
     Code.
       Sec. 8087. For purposes of section 1553(b) of title 31, 
     United States Code, any subdivision of appropriations made in 
     this Act under the heading ``Shipbuilding and Conversion, 
     Navy'' shall be considered to be for the same purpose as any 
     subdivision under the heading ``Shipbuilding and Conversion, 
     Navy'' appropriations in any prior year, and the one percent 
     limitation shall apply to the total amount of the 
     appropriation.
       Sec. 8088. Notwithstanding 31 U.S.C. 1552(a), not more than 
     $14,000,000 appropriated under the heading ``Aircraft 
     Procurement, Air Force'' in Public Law 102-396 which was 
     available and obligated for the B-2 Aircraft Program shall 
     remain available for expenditure and for adjusting 
     obligations for such program until September 30, 2003.
       Sec. 8089. During the current fiscal year, in the case of 
     an appropriation account of the Department of Defense for 
     which the period of availability for obligation has expired 
     or which has closed under the provisions of section 1552 of 
     title 31, United States Code, and which has a negative 
     unliquidated or unexpended balance, an obligation or an 
     adjustment of an obligation may be charged to any current 
     appropriation account for the same purpose as the expired or 
     closed account if--
       (1) the obligation would have been properly chargeable 
     (except as to amount) to the expired or closed account before 
     the end of the period of availability or closing of that 
     account;
       (2) the obligation is not otherwise properly chargeable to 
     any current appropriation account of the Department of 
     Defense; and
       (3) in the case of an expired account, the obligation is 
     not chargeable to a current appropriation of the Department 
     of Defense under the provisions of section 1405(b)(8) of the 
     National Defense Authorization Act for Fiscal Year 1991, 
     Public Law 101-510, as amended (31 U.S.C. 1551 note): 
     Provided, That in the case of an expired account, if 
     subsequent review or investigation discloses that there was 
     not in fact a negative unliquidated or unexpended balance in 
     the account, any charge to a current account under the 
     authority of this section shall be reversed and recorded 
     against the expired account: Provided further, That the total 
     amount charged to a current appropriation under this section 
     may not exceed an amount equal to one percent of the total 
     appropriation for that account.


                          (TRANSFER OF FUNDS)

       Sec. 8090. Upon enactment of this Act, the Secretary of 
     Defense shall make the following transfers of funds: 
     Provided, That the amounts transferred shall be available for 
     the same purposes as the appropriations to which transferred, 
     and for the same time period as the appropriation from which 
     transferred: Provided further, That the amounts shall be 
     transferred between the following appropriations in the 
     amount specified:
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1989/2000'':
       SSN-688 attack submarine program, $3,000,000;
       DDG-51 destroyer program, $1,500,000;
       LHD-1 amphibious assault ship program, $8,000,000;
       T-AO fleet oiler program, $3,453,000;
       AOE combat support ship program, $3,600,000; and
       For craft, outfitting, and post delivery, $2,019,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1989/2000'':
       SSN-21 attack submarine program, $21,572,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/2001'':
       DDG-51 destroyer program, $1,060,000;
       LHD-1 amphibious assault ship program, $1,600,000;
       LSD-41 cargo variant ship program, $2,666,000;
       AOE combat support ship program, $7,307,000; and
       For craft, outfitting, and post delivery, $12,000,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/2001'':
       SSN-21 attack submarine program, $24,633,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1996/2000'':
       LHD-1 amphibious assault ship program, $5,592,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1996/2000'':
       SSN-21 attack submarine program, $5,592,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1994/1998'':
       LHD-1 amphibious assault ship program, $400,000; and
       DDG-51 destroyer program, $1,054,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1995/1999'':
       For craft, outfitting, and post delivery, conversions, and 
     first destination transportation, $715,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1996/2000'':
       LHD-1 amphibious assault ship program, $17,513,000; and
       For craft, outfitting, and post delivery, conversions, and 
     first destination transportation, $878,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1997/2001'':
       For craft, outfitting, and post delivery, conversions, and 
     first destination transportation, $3,600,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1997/2001'':
       DDG-51 destroyer program, $24,160,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1996/2000'':
       Fast Patrol Boat, $9,500,000;
       To:
       ``Research, Development, Test and Evaluation, Navy, 1998/
     1999'', $9,500,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1997/2001'':
       Oceanographic ship SWATH, $45,000,000;
       To:
       ``Research, Development, Test and Evaluation, Navy, 1998/
     1999'', $45,000,000;
       From:
       ``Aircraft Procurement, Air Force, 1997/1999'', 
     $73,531,000;
       To:
       ``Research, Development, Test and Evaluation, Air Force, 
     1997/1998'', $73,531,000:

     Provided further, That notwithstanding any other provision of 
     law, to facilitate a full and final settlement of all claims 
     under contracts N00024-79-C-2614 and N00024-77-C-2031, the 
     Secretary of the Navy may offset the amount of $1,660,680.84, 
     owed by the Navy under contract N00024-79-C-2614 for the T-
     ARC-7 against an equal amount, $1,660,680.84, owed to the 
     Navy under contract N00024-77-C-2031 for the AD 43.
       Sec. 8091. The Under Secretary of Defense (Comptroller) 
     shall submit to the congressional defense committees by 
     February 1, 1998 a detailed report identifying, by amount and 
     by separate budget activity, activity group, subactivity 
     group, line item, program element, program, project, 
     subproject, and activity, any activity for which the fiscal 
     year 1999 budget request was reduced because Congress 
     appropriated funds above the President's budget request for 
     that specific activity for fiscal year 1998.
       Sec. 8092. (a) None of the funds available to the 
     Department of Defense under this Act may be obligated or 
     expended to reimburse a defense contractor for restructuring 
     costs associated with a business combination of the defense 
     contractor that occurs after the date of enactment of this 
     Act unless--
       (1) the auditable savings for the Department of Defense 
     resulting from the restructuring will exceed the costs 
     allowed by a factor of at least two to one; or

[[Page H7667]]

       (2) the savings for the Department of Defense resulting 
     from the restructuring will exceed the costs allowed and the 
     Secretary of Defense determines that the business combination 
     will result in the preservation of a critical capability that 
     might otherwise be lost to the Department; and
       (3) the report required by Section 818(e) of Public Law 
     103-337 to be submitted to Congress in 1997 is submitted.
       (b) Not later than April 1, 1998, the Comptroller General 
     shall, in consultation with the Inspector General of the 
     Department of Defense, the Secretary of Defense, and the 
     Secretary of Labor, submit to Congress a report which shall 
     include the following:
       (1) an analysis and breakdown of the restructuring costs 
     paid by or submitted to the Department of Defense to 
     companies involved in business combinations since 1993;
       (2) an analysis of the specific costs associated with 
     workforce reductions;
       (3) an analysis of the services provided to the workers 
     affected by business combinations;
       (4) an analysis of the effectiveness of the restructuring 
     costs used to assist laid off workers in gaining employment; 
     and
       (5) in accordance with section 818 of Public Law 103-337, 
     an analysis of the savings reached from the business 
     combination relative to the restructuring costs paid by the 
     Department of Defense.
       (c) The report should set forth recommendations to make 
     this program more effective for workers affected by business 
     combinations and more efficient in terms of the use of 
     Federal dollars.
       Sec. 8093. Funds appropriated in title II of this Act for 
     supervision and administration costs for facilities 
     maintenance and repair, minor construction, or design 
     projects may be obligated at the time the reimbursable order 
     is accepted by the performing activity: Provided, That for 
     the purpose of this section, supervision and administration 
     costs includes all in-house Government cost.
       Sec. 8094. The Secretary of Defense may waive reimbursement 
     of the cost of conferences, seminars, courses of instruction, 
     or similar educational activities of the Asia-Pacific Center 
     for Security Studies for military officers and civilian 
     officials of foreign nations if the Secretary determines that 
     attendance by such personnel, without reimbursement, is in 
     the national security interest of the United States: 
     Provided, That costs for which reimbursement is waived 
     pursuant to this subsection shall be paid from 
     appropriations available for the Asia-Pacific Center.
       Sec. 8095. (a) Notwithstanding any other provision of law, 
     the Chief of the National Guard Bureau may permit the use of 
     equipment of the National Guard Distance Learning Project by 
     any person or entity on a space-available, reimbursable 
     basis. The Chief of the National Guard Bureau shall establish 
     the amount of reimbursement for such use on a case-by-case 
     basis.
       (b) Amounts collected under subsection (a) shall be 
     credited to funds available for the National Guard Distance 
     Learning Project and be available to defray the costs 
     associated with the use of equipment of the project under 
     that subsection. Such funds shall be available for such 
     purposes without fiscal year limitation.
       Sec. 8096. Using funds available by this Act or any other 
     Act, the Secretary of the Air Force, pursuant to a 
     determination under section 2690 of title 10, United States 
     Code, may implement cost-effective agreements for required 
     heating facility modernization in the Kaiserslautern Military 
     Community in the Federal Republic of Germany: Provided, That 
     in the City of Kaiserslautern such agreements will include 
     the use of United States anthracite as the base load energy 
     for municipal district heat to the United States Defense 
     installations: Provided further, That at Landstuhl Army 
     Regional Medical Center and Ramstein Air Base, furnished heat 
     may be obtained from private, regional or municipal services, 
     if provisions are included for the consideration of United 
     States coal as an energy source.
       Sec. 8097. Notwithstanding any other provision of law, and 
     notwithstanding the provisions in section 7306 of title 10, 
     United States Code, in addition to amounts otherwise 
     appropriated or made available by this Act, $13,000,000 is 
     appropriated to the Department of the Navy and shall be 
     available only for a grant to the Intrepid Sea-Air-Space 
     Foundation only for the refurbishment of the former U.S.S. 
     Intrepid (CV 11).
       Sec. 8098. In accordance with section 1557 of title 31, 
     United States Code, the following obligated balance shall be 
     exempt from subchapter IV of chapter 15 of such title and 
     shall remain available for expenditure without fiscal year 
     limitation: Funds obligated by the Economic Development 
     Administration for EDA Project No. 04-49-04095 from funds 
     made available in the Department of Defense Appropriations 
     Act, 1994 (Public Law 103-189).
       Sec. 8099. None of the funds provided by this Act may be 
     used to pay costs of instruction for an Air Force officer for 
     enrollment commencing during the 1998-1999 academic year in a 
     postgraduate degree program at a civilian educational 
     institution if--
       (1) the degree program to be pursued by that officer is 
     offered by the Air Force Institute of Technology (or was 
     offered by that institute during the 1996-1997 academic 
     year);
       (2) the officer is qualified for enrollment at the Air 
     Force Institute of Technology in that degree program; and
       (3) the number of students commencing that degree program 
     at the Air Force Institute of Technology during the first 
     semester of the 1998-1999 academic year is less than the 
     number of students commencing that degree program for the 
     first semester of the 1996-1997 academic year.
       Sec. 8100. During the current fiscal year, the amounts 
     which are necessary for the operation and maintenance of the 
     Fisher Houses administered by the Departments of the Army, 
     the Navy, and the Air Force are hereby appropriated, to be 
     derived from amounts which are available in the applicable 
     Fisher House trust fund established under 10 U.S.C. 2221 for 
     the Fisher Houses of each such department.
       Sec. 8101. During the current fiscal year, refunds 
     attributable to the use of the Government travel card by 
     military personnel and civilian employees of the Department 
     of Defense may be credited to operation and maintenance 
     accounts of the Department of Defense which are current when 
     the refunds are received.
       Sec. 8102. During the current fiscal year, not more than a 
     total of $60,000,000 in withdrawal credits may be made by the 
     Marine Corps Supply Management activity group of the Navy 
     Working Capital Fund, Department of Defense Working Capital 
     Funds, to the credit of current applicable appropriations of 
     a Department of Defense activity in connection with the 
     acquisition of critical low density repairables that are 
     capitalized into the Navy Working Capital Fund.
       Sec. 8103. Notwithstanding 31 U.S.C. 3902, during the 
     current fiscal year interest penalties may be paid by the 
     Department of Defense from funds financing the operation of 
     the military department or defense agency with which the 
     invoice or contract payment is associated.
       Sec. 8104. At the time the President submits his budget for 
     fiscal year 1999, the Department of Defense shall transmit to 
     the congressional defense committees a budget justification 
     document for the active and reserve Military Personnel 
     accounts, to be known as the ``M-1'', which shall identify, 
     at the budget activity, activity group, and subactivity group 
     level, the amounts requested by the President to be 
     appropriated to the Department of Defense for military 
     personnel in any budget request, or amended budget request, 
     for fiscal year 1999.
       Sec. 8105. Notwithstanding any other provision in this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $100,000,000 to reflect savings due to excess inventory, 
     to be distributed as follows: ``Operation and Maintenance, 
     Army'', $40,000,000; ``Operation and Maintenance, Navy'', 
     $40,000,000; and ``Operation and Maintenance, Air Force'', 
     $20,000,000.
       Sec. 8106. Notwithstanding any other provision in this Act, 
     the total amount appropriated in title III of this Act is 
     hereby reduced by $75,000,000 to reflect savings from repeal 
     of section 2403 of title 10, United States Code.
       Sec. 8107. The Secretary of the Army may exchange or sell 
     one Army C-20 aircraft and may apply the exchange allowance 
     or sale proceeds in whole or in part payment for the 
     acquisition of one C-37 aircraft: Provided, That in addition 
     to such exchange allowance or sale proceeds, of the amount 
     appropriated for fiscal year 1998 for Aircraft Procurement, 
     Air Force, not more than $6,000,000 shall be made available 
     for acquisition of the C-37 for the United States Army: 
     Provided further, That in addition to such exchange allowance 
     or sale proceeds, of the amount appropriated for fiscal year 
     1997 for Aircraft Procurement, Air Force, not more than 
     $27,100,000 shall be made available for acquisition of the C-
     37 for the United States Army.
       Sec. 8108. During the current fiscal year, the Secretary of 
     Defense may award contracts for capital assets having a 
     development or acquisition cost of not less than $100,000 of 
     a Working Capital Fund in advance of the availability of 
     funds in the Working Capital Fund for minor construction, 
     automatic data processing equipment, software, equipment, and 
     other capital improvements.
       Sec. 8109. From funds made available by this Act for the 
     Maritime Technology Program up to $250,000 shall be made 
     available to assist with a pilot project that will facilitate 
     the transfer of commercial cruise ship shipbuilding 
     technology and expertise to U.S. yards, utilize the 
     experience and expertise of existing U.S.-flag cruise ship 
     operators, and enable the operation of a U.S.-flag foreign-
     built cruise ship, and two newly-constructed U.S.-flag cruise 
     ships: Provided, That a person (including a related person 
     with respect to that person) who, within 18 months after the 
     date of enactment, enters into a binding contract for 
     construction in the United States of two cruise ships, which 
     contract shall provide for the construction of two cruise 
     ships of equal or greater size than the cruise ship being 
     operated by such person on the date of enactment and shall 
     require the delivery of the first cruise ship no later 
     than January 1, 2005, and the second cruise ship no later 
     than January 1, 2008, may document with a coastwise 
     endorsement a cruise ship constructed pursuant to this 
     section and a foreign-built cruise ship otherwise in 
     compliance with 46 U.S.C. sections 289, 883 and 12106 
     until such date which is twenty-four (24) months after the 
     delivery of the second cruise ship or any subsequently 
     delivered cruise ship: Provided further, That a person 
     (including a related person with respect to that person) 
     within the meaning of 46 U.S.C. section 801 may not 
     operate a U.S.-flag foreign-built cruise ship, or any 
     other cruise ship, in coastwise trade between or among the 
     islands of Hawaii, upon execution of the contract referred 
     to in this section and continuing throughout the life 
     expectancy (as that term is used in 46 U.S.C. App 1125) of 
     a newly constructed U.S. flag cruise ship referred to in 
     this section, unless the cruise ship is operated by a 
     person (including a related person with respect to that 
     person) that is operating a cruise ship in coastwise trade 
     between or among the islands of Hawaii on the date of 
     enactment, except if any cruise ship constructed pursuant 
     to this section operates in regular service other than 
     between or among the islands of Hawaii: Provided further, 
     That for purposes of this section the term ``cruise ship'' 
     means a vessel that is at least 10,000 gross tons

[[Page H7668]]

     (as measured under chapter 143 of title 46, United States 
     Code) and has berth or stateroom accommodations for at 
     least 275 passengers: Provided further, That for purposes 
     of this section, unless otherwise defined in this section, 
     the term ``person'' means a corporation, partnership or 
     association the controlling interest of which is owned by 
     citizens of the United States within the meaning of 46 
     U.S.C. section 802(b): Provided further, That for purposes 
     of this section the term ``related person'' means with 
     respect to a person (i) a holding company, subsidiary, 
     affiliate or association of the person and (ii) an 
     officer, director, or agent of the person or of an entity 
     referred to in (i): Provided further, That none of the 
     funds provided in this or any other Act may be obligated 
     for the tooling to construct or the construction of 
     vessels addressed by this section.
       Sec. 8110. The Secretary of Defense shall submit to the 
     congressional defense committees not later than November 15, 
     1997 an aviation safety plan outlining an appropriate level 
     of navigational safety upgrades for all Department of Defense 
     aircraft and the associated funding profile to install these 
     upgrades in an expeditious manner.
       Sec. 8111. Notwithstanding any other provision of law, the 
     Secretary of Defense shall obligate the funds provided for 
     University Research Initiatives in the Department of Defense 
     Appropriations Act, 1997 (titles I through VIII under section 
     101(b) of Public Law 104-208) for the projects and in the 
     amounts provided for in House Report 104-863 of the House of 
     Representatives, 104th Congress, second session.
       Sec. 8112. The Secretary of Defense shall submit to the 
     Committees on Appropriations of the House of Representatives 
     and Senate, not later than April 15, 1998, a report on 
     alternatives for current theater combat simulations: 
     Provided, That this report shall be based on a review and 
     evaluation by the Defense Science Board of the adequacy of 
     the current models used by the Department of Defense for 
     theater combat simulations, with particular emphasis on the 
     tactical warfare (TACWAR) model and the ability of that model 
     to adequately measure airpower, stealth, and other 
     asymmetrical United States warfighting advantages, and shall 
     include the recommendations of the Defense Science Board for 
     improvements to current models and modeling techniques.
       Sec. 8113. Effective on June 30, 1998, section 8106(a) of 
     the Department of Defense Appropriations Act, 1997 (titles I 
     through VIII of the matter under section 101(b) of Public Law 
     104-208; 110 Stat. 3009-111; 10 U.S.C. 113 note), is amended 
     by striking out ``$3,000,000'' and inserting in lieu thereof 
     ``$1,000,000''.
       Sec. 8114. None of the funds appropriated in title IV of 
     this Act may be used to procure end-items for delivery to 
     military forces for operational training, operational use or 
     inventory requirements: Provided, That this restriction does 
     not apply to end-items used in development, prototyping, and 
     test activities preceding and leading to acceptance for 
     operational use: Provided further, That this restriction does 
     not apply to programs funded within the National Foreign 
     Intelligence Program: Provided further, That the Secretary of 
     Defense may waive this restriction on a case-by-case basis by 
     certifying in writing to the Committees on Appropriations of 
     the House of Representatives and the Senate that it is in the 
     national security interest to do so.
       Sec. 8115. It is the sense of the Congress that all member 
     nations of the North Atlantic Treaty Organization (NATO) 
     should contribute their proportionate share to pay for the 
     costs of the Partnership for Peace program and for any future 
     costs attributable to the expansion of NATO.
       Sec. 8116. The budget of the President for fiscal year 1999 
     submitted to Congress pursuant to section 1105 of title 31, 
     United States Code, and each annual budget request 
     thereafter, shall include budget activity groups (known as 
     ``subactivities'') in the operation and maintenance 
     accounts of the military departments and other 
     appropriation accounts, as may be necessary, to separately 
     identify all costs incurred by the Department of Defense 
     to support the expansion of the North Atlantic Treaty 
     Organization. The budget justification materials submitted 
     to Congress in support of the budget of the Department of 
     Defense for fiscal year 1999, and subsequent fiscal years, 
     shall provide complete, detailed estimates for the 
     incremental costs of such expansion.
       Sec. 8117. None of the funds made available in this Act may 
     be obligated or expended to enter into or renew a contract 
     with a contractor that is subject to the reporting 
     requirement set forth in subsection (d) of section 4212 of 
     title 38, United States Code, but has not submitted the most 
     recent report required by such subsection for 1997 or a 
     subsequent year.
       Sec. 8118. None of the funds made available in this Act may 
     be used to approve or license the sale of the F-22 advanced 
     tactical fighter to any foreign government.
       Sec. 8119. None of the funds appropriated or otherwise made 
     available by this Act may be made available for the United 
     States Man and the Biosphere Program, or related projects.
       Sec. 8120. Up to $4,500,000 of funds available to the 
     Department of Defense may be available for the payment of 
     claims for loss and damage to personal property suffered as a 
     direct result of the flooding in the Red River Basin during 
     April and May, 1997 by members of the Armed Forces residing 
     in the vicinity of Grand Forks Air Force Base, North Dakota, 
     without regard to the provisions of section 3721(e) of title 
     31, United States Code.
       Sec. 8121. Of the total amount appropriated under title II 
     for the Navy, the Secretary of the Navy shall make 
     $25,000,000 available for a program to demonstrate expanded 
     use of multitechnology automated reader cards throughout the 
     Navy and the Marine Corps, including demonstration of the use 
     of the so-called ``smartship'' technology of the ship-to-
     shore work load / off load program.
       Sec. 8122. (a) Findings.--(1) The North Atlantic Treaty 
     Organization, at the Madrid summit, decided to admit three 
     new members, the Czech Republic, Poland and Hungary.
       (2) The President, on behalf of the United States endorsed 
     and advocated the expansion of the North Atlantic Treaty 
     Organization to include three additional members.
       (3) The Senate will consider the ratification of 
     instruments to approve the admissions of new members to the 
     North Atlantic Treaty Organization.
       (4) The United States has contributed more than 
     $20,000,000,000 since 1952 for infrastructure and support of 
     the Alliance.
       (5) In appropriations Acts considered by the Congress for 
     fiscal year 1998, $449,000,000 has been requested by the 
     President for expenditures in direct support of United States 
     participation in the Alliance.
       (6) In appropriations Acts considered by the Congress for 
     fiscal year 1998, $9,983,300,000 has been requested by the 
     President in support of United States military expenditures 
     in North Atlantic Treaty Organization countries.
       (b) Report to Congress.--The Secretary of Defense shall 
     identify and report to the congressional defense committees 
     not later than October 1, 1997--
       (1) the amounts necessary, by appropriation account, for 
     all anticipated costs to the United States for the admission 
     of the Czech Republic, Poland and Hungary to the North 
     Atlantic Treaty Organization for the fiscal years 1998, 1999, 
     2000, 2001 and 2002; and
       (2) any new commitments or obligations entered into or 
     assumed by the United States in association with the 
     admission of new members to the Alliance, to include the 
     deployment of United States military personnel, the provision 
     of defense articles or equipment, training activities and the 
     modification and construction of military facilities.
       Sec. 8123. (a) The Secretary of Defense may, on a case-by-
     case basis, waive with respect to a foreign country each 
     limitation on the procurement of defense items from foreign 
     sources provided in law if the Secretary determines that the 
     application of the limitation with respect to that country 
     would invalidate cooperative programs entered into between 
     the Department of Defense and the foreign country, or would 
     invalidate reciprocal trade agreements for the procurement of 
     defense items entered into under section 2531 of title 10, 
     United States Code, and the country does not discriminate 
     against the same or similar defense items produced in the 
     United States for that country.
       (b) Subsection (a) applies with respect to--
       (1) contracts and subcontracts entered into on or after the 
     date of the enactment of this Act; and
       (2) options for the procurement of items that are exercised 
     after such date under contracts that are entered into before 
     such date if the option prices are adjusted for any reason 
     other than the application of a waiver granted under 
     subsection (a).
       (c) Subsection (a) does not apply to a limitation regarding 
     construction of warships, ball and roller bearings, and 
     clothing or textile materials as defined by section 11 
     (chapters 50-65) of the Harmonized Tariff Schedule and 
     products classified under headings 4010, 4202, 4203, 6401 
     through 6406, 6505, 7019, and 9404.
       Sec. 8124. It is the sense of Congress that should the 
     Senate ratify NATO enlargement, that the proportional cost of 
     the United States share of the NATO common budget should not 
     increase, and that if any NATO member does not pay its share, 
     the United States shall not pay either.
       Sec. 8125. Congress finds that the Defense Base Closure and 
     Realignment Commission directed the transfer of only 10 
     electro-magnetic test environment systems from Eglin Air 
     Force Base, Florida, to Nellis Air Force Base, Nevada.
       Sec. 8126. (a) Findings.--(1) The Department of Defense 
     budget is insufficient to fulfill all the requirements on the 
     unfunded priorities lists of the military services and 
     defense agencies;
       (2) the documented printing expenses of the Department of 
     Defense amount to several hundred million dollars per year, 
     and a similar amount of undocumented printing expenses may be 
     included in external defense contracts;
       (3) printing in two or more colors generally increases 
     costs;
       (4) the Joint Committee on Printing of the Congress of the 
     United States has established regulations intended to protect 
     taxpayers from extravagant Government printing expenses;
       (5) the Government Printing and Binding Regulations 
     published by the Joint Committee on Printing direct that ``. 
     . . it is the responsibility of the head of any department, 
     independent office or establishment of the Government to 
     assure that all multicolor printing shall contribute 
     demonstrable value toward achieving a greater fulfillment of 
     the ultimate end-purpose of whatever printed item in which it 
     is included.'';
       (6) the Department of Defense publishes a large number of 
     brochures, calendars, and other products in which the use of 
     multicolor printing does not appear to meet the demonstrably 
     valuable contribution requirement of the Joint Committee on 
     Printing, but instead appears to be used primarily for 
     decorative effect; and
       (7) the Department of Defense could save resources for 
     higher priority needs by reducing printing expenses.
       (b) Sense of the Senate.--Therefore, it is the sense of the 
     Senate that--
       (1) the Secretary of Defense should ensure that the 
     printing costs of the Department of Defense and military 
     services are held to the lowest amount possible;

[[Page H7669]]

       (2) the Department of Defense should strictly comply with 
     the Printing and Binding Regulations published by the Joint 
     Committee on Printing of the Congress of the United States;
       (3) the Department of Defense budget submission for fiscal 
     year 1999 should reflect the savings that will result from 
     the stricter printing guidelines in paragraphs (1) and (2).


                             (RESCISSIONS)

       Sec. 8127. Of the funds provided in title III of the 
     Department of Defense Appropriations Act, 1996 (Public Law 
     104-61), $62,000,000 are rescinded, and of the funds provided 
     in title IV of the Department of Defense Appropriations Act, 
     1997 (as contained in section 101(b) of Public Law 104-208), 
     $38,000,000 are rescinded: Provided, That such rescissions 
     shall not be made before July 1, 1998: Provided further, That 
     not later than June 1, 1998, the Undersecretary of Defense 
     (Comptroller) shall submit a report to the congressional 
     defense committees listing the specific programs, projects 
     and activities proposed for rescission subject to the 
     provisions of this section.
       Sec. 8128. Section 303(e) of the 1997 Emergency 
     Supplemental Appropriations Act for Recovery from Natural 
     Disasters, and for Overseas Peacekeeping Efforts, Including 
     Those in Bosnia (Public Law 105-18; 111 Stat. 168) is struck 
     and the following is inserted in lieu thereof:
       ``(e) Availability of Funds.--The Secretary may use funds 
     available in the Defense Working Capital Fund for the payment 
     of the costs of utilities, maintenance and repair, and 
     improvements entered into under the lease under this 
     section.''.
       Sec. 8129. Subject to amounts appropriated under the 
     heading ``Shipbuilding and Conversion, Navy'' in this Act for 
     the New Attack Submarine Program, and notwithstanding any 
     provisions of the National Defense Authorization Act for 
     Fiscal Year 1996 and of the National Defense Authorization 
     Act for Fiscal Year 1997 to the contrary, and notwithstanding 
     section 2304(k) of title 10, United States Code, and the 
     policy set forth in paragraph (1) of that section, the 
     Secretary of the Navy may enter into a contract during fiscal 
     year 1998 for the necessary procurement of four submarines 
     under the New Attack Submarine Program with one of the two 
     shipbuilders which are party to the Team Agreement between 
     Electric Boat Corporation and Newport News Shipbuilding and 
     Dry Dock Company dated February 25, 1997, that was submitted 
     to the Congress by the Secretary of the Navy on March 31, 
     1997, as the prime contractor on the condition such prime 
     contractor enter into one or more subcontracts (under such 
     prime contract) with the other shipbuilder which is a party 
     to such Team Agreement as contemplated in such Team 
     Agreement, with such contract providing for construction of 
     the first submarine in fiscal year 1998 and for the advance 
     construction and advance procurement of material for the 
     second, third, and fourth submarines in fiscal year 1998: 
     Provided, That such prime contract shall provide that if such 
     contract is terminated, the United States shall not be liable 
     for termination costs in excess of the total amount 
     appropriated for the New Attack Submarine Program.
       Sec. 8130. In addition to the amounts provided elsewhere in 
     this Act, $3,000,000 is hereby appropriated for ``Operations 
     and Maintenance, Defense-Wide'', and shall be made available 
     only for the establishment of the ``21st Century National 
     Security Study Group'' (hereinafter in this section referred 
     to as the ``Study Group''): Provided, That these funds may be 
     obligated only upon the completion of a memorandum of 
     agreement between the Secretary of Defense (after 
     consultation with the President), the Speaker of the House of 
     Representatives, the Minority Leader of the House of 
     Representatives, the Majority Leader of the Senate, and the 
     Minority Leader of the Senate: Provided further, That this 
     memorandum of agreement will set forth the scope of the 
     Group's work, as well as its charter, composition, 
     authorities, lifespan, and products to be generated: Provided 
     further, That this memorandum of agreement shall be completed 
     not later than December 15, 1997.
       Sec. 8131. (a) Panel to Review Long Range Air Power.--(1) 
     There is hereby established an independent panel to evaluate 
     the adequacy of current planning for United States long-range 
     air power and the requirement for continued low-rate 
     production of B-2 stealth bombers.
       (2) The panel shall be composed of nine members appointed 
     as follows:
       (A) Two members shall be named by the President;
       (B) Two members shall be named by the Speaker of the House 
     of Representatives;
       (C) One member shall be named by the minority leader of the 
     House of Representatives;
       (D) Two members shall be named by the majority leader of 
     the Senate;
       (E) One member shall be named by the minority leader of the 
     Senate; and
       (F) One member, will serve as chairman of the panel, shall 
     be named by the President.
       (b) Functions of Panel.--(1) Not later than March 1, 1998, 
     the panel shall submit to the President and Congress a report 
     containing its conclusions and recommendations concerning the 
     appropriate B-2 bomber force and specifically stating its 
     recommendation on whether additional funds for the B-2 should 
     be used for continued low-rate production of the B-2 or for 
     upgrades to improve deployability, survivability and 
     maintainability.
       (2) As part of its evaluation and review, the panel shall 
     consider, but not be limited to, the following:
       (A) Scenarios involving no warning time and little warning 
     time from potential adversaries;
       (B) The make-up of the current bomber fleet and expected 
     attrition to that fleet over the next fifteen years;
       (C) The potential effect of additional B-2 bombers on 
     deterrence;
       (D) The potential effect of additional B-2 bombers in the 
     ``halt phase'' of a conflict;
       (E) The potential of a biological or chemical ``lock-out'' 
     of tactical U.S. assets by future adversaries and the effect 
     of additional B-2 bombers toward mitigating such a tactic;
       (F) Trade-offs between additional B-2 bombers and other 
     programmed DOD assets in meeting the scenarios described in 
     subsections (b)(2)(A) through (b)(2)(E) above;
       (G) The desirability of an increased rate of purchase of 
     precision-guided munitions for aircraft in the existing B-2 
     fleet;
       (H) The desirability of improving the low observable 
     characteristics of the existing B-2 fleet; and
       (I) The affordability of additional B-2 bombers in the 
     context of projected levels of future defense funding.
       (c) Panel Administration.--(1) The members of the panel 
     shall be allowed travel expenses, including per diem in lieu 
     of subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the panel.
       (2) Upon the request of the chairman of the panel, the 
     Secretary of Defense may detail to the panel, on a 
     nonreimbursable basis, personnel of the Department of Defense 
     to assist the panel in carrying out its duties. The Secretary 
     of Defense shall furnish to the panel such administrative and 
     support services as may be requested by the chairman of the 
     panel and shall ensure that all appropriate actions are taken 
     to preserve the options of the President until the panel 
     submits its report under subsection (b)(1).
       (d) Funding.--The Secretary of Defense shall, upon the 
     request of the panel, make available to the panel such 
     amounts as the panel may require to carry out its duties 
     under this section.
       (e) Termination of the Panel.--The panel shall terminate 30 
     days after the date on which it submits its report under 
     subsection (b)(1).
       Sec. 8132. None of the funds in this Act may be made 
     available for the deployment of United States armed forces in 
     the Republic of Bosnia and Herzegovina after June 30, 1998, 
     unless the President, after consultation with the bipartisan 
     leadership of the Senate and the House of Representatives, 
     transmits to the Congress not later than May 15, 1998 a 
     certification that the continued presence of United States 
     armed forces is required in order to meet the national 
     security interests of the United States: Provided, That such 
     certification shall specify the following aspects of any 
     deployment beyond June 30, 1998--
       (1) The reasons why such deployment is in the national 
     interest;
       (2) The number of United States military personnel to be 
     deployed in and around the Republic of Bosnia and Herzegovina 
     and the former Yugoslavia;
       (3) The expected duration of any such deployment;
       (4) The mission and objectives of United States military 
     forces deployed in and around the Republic of Bosnia and 
     Herzegovina and the former Yugoslavia;
       (5) The exit strategy for United States forces engaged in 
     such deployment;
       (6) The costs associated with any deployment beyond June 
     30, 1998; and
       (7) The impact of such deployment on the morale, retention, 
     and effectiveness of U.S. forces:

     Provided further, That concurrent with said certification, 
     the President shall submit a supplemental appropriations 
     request for such amounts as are necessary for any continued 
     deployment beyond June 30, 1998: Provided further, That 
     nothing in this section shall be deemed to restrict the 
     authority of the President under the Constitution to protect 
     the lives of United States citizens.
       This Act may be cited as the ``Department of Defense 
     Appropriations Act, 1998''.
       And the Senate agree to the same.
     Bill Young,
     Joseph M. McDade,
     Jerry Lewis,
     Joe Skeen,
     David L. Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Ernest Istook,
     Randy ``Duke'' Cunningham,
     Bob Livingston,
     John P. Murtha,
     Norm Dicks
       (except on amendment dealing with the B-2 bomber.),
     W.G. Bill Hefner,
     Martin Olav Sabo,
     Julian C. Dixon,
     Peter J. Visclosky,
                                Managers on the Part of the House.

     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete Domenici,
     Christopher S. Bond,
     Mitch McConnell,
     Richard Shelby,
     Judd Gregg,
     Kay Bailey Hutchison,
     Daniel K. Inouye,
     Robert Byrd,
     Patrick J. Leahy,
     Dale Bumpers,
     Frank R. Lautenberg,
     Byron L. Dorgan,
                               Managers on the Part of the Senate.

[[Page H7670]]

                      JOINT EXPLANATORY STATEMENT

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 2266), making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 1998, and for other purposes, 
     submit the following joint statement to the House and the 
     Senate in explanation of the effect of the action agreed upon 
     by the managers and recommended in the accompanying 
     conference report.
       The conference agreement on the Department of Defense 
     Appropriations Act, 1998, incorporates some of the provisions 
     of both the House and Senate versions of the bill. The 
     language and allocations set forth in House Report 105-206 
     and Senate Report 105-45 should be complied with unless 
     specifically addressed in the accompanying bill and statement 
     of the managers to the contrary.
       Senate Amendment: The Senate deleted the entire House bill 
     after the enacting clause and inserted the Senate bill. The 
     conference agreement includes a revised bill.

              Definition of Program, Project, and Activity

       The conferees agree that for the purposes of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (Public Law 
     99-177) as amended by the balanced Budget and Emergency 
     Deficit Control Reaffirmation Act of 1987 (Public Law 100-
     119) and by the Budget Enforcement Act of 1990 (Public Law 
     101-508), the term program, project, and activity for 
     appropriations contained in this Act shall be defined as the 
     most specific level of budget items identified in the 
     Department of Defense Appropriations Act, 1998, the 
     accompanying House and Senate Committee reports, the 
     conference report and accompanying joint explanatory 
     statement of the managers of the Committee of Conference, the 
     related classified annexes and reports, and the P-1 and R-1 
     budget justification documents as subsequently modified by 
     Congressional action. The following exception to the above 
     definition shall apply:
       for the Military Personnel and the Operation and 
     Maintenance accounts, the term ``program, project, and 
     activity'' is defined as the appropriations accounts 
     contained in the Department of Defense Appropriations Act. At 
     the time the President submits his budget for fiscal year 
     1999, the conferees direct the Department of Defense to 
     transmit to the congressional defense committees budget 
     justification documents to be known as the ``M-1'' and ``O-
     1'' which shall identify, at the budget activity, activity 
     group, and subactivity group level, the amounts requested by 
     the President to be appropriated to the Department of Defense 
     for operation and maintenance in any budget request, or 
     amended budget request, for fiscal year 1999.

                      TITLE I--MILITARY PERSONNEL

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Active personnel:
    Army........................................     $20,492,257     $20,445,381     $20,426,457     $20,452,057
    Navy........................................      16,501,118      16,504,911      16,508,218      16,493,518
    Marine Corps................................       6,147,599       6,141,635       6,148,899       6,137,899
    Air Force...................................      17,145,556      17,044,874      17,206,056      17,102,120
Reserve personnel:
    Army........................................       2,024,446       2,045,615       2,037,046       2,032,046
    Navy........................................       1,375,401       1,377,249       1,374,901       1,376,601
    Marine Corps................................         381,070         391,953         384,770         391,770
    Air Force...................................         814,936         814,772         815,745         815,915
National Guard Personnel:
    Army........................................       3,200,667       3,245,387       3,446,867       3,333,867
    Air Force...................................       1,319,712       1,331,417       1,334,712       1,334,714
                                                 ---------------------------------------------------------------
      Total, Military Personnel.................      69,411,762      69,343,194      69,683,671      69,470,505
----------------------------------------------------------------------------------------------------------------

                        personnel understrength

       The conferees recommend a total reduction of $303,200,000 
     to the services military personnel accounts due to lower than 
     estimated end strengths during fiscal year 1997. The 
     conferees understand that the Services will begin fiscal year 
     1998 with fewer personnel on-board than originally budgeted, 
     therefore, the requirements for pays and allowances of 
     personnel are overstated. A summary of the understrength 
     reductions is shown in the table below:

                       [In thousands of dollars]

Army..........................................................-$240,000
Navy............................................................-10,000
Marine Corps.....................................................-3,600
Air Force.......................................................-44,600
Army Reserve.....................................................-5,000
                                                       ________________
                                                       
  Total........................................................-303,200


                        force structure changes

       The fiscal year 1998 budget request included reductions in 
     the size of Primary Aircraft Authorized (PAA) levels for Air 
     Force B-52's, and Air Force Reserve and Air National Guard C-
     130's units. The conferees recommend restoring these aircraft 
     levels during fiscal year 1998. In addition, the conferees 
     recommend adding funds to support the Air Force Reserve's WC-
     130 Weather Reconnaissance mission, and Navy Reserve LAMPS 
     squadrons. In total, the conferees recommend an additional 
     $11,779,000 in the military personnel accounts and 
     $64,373,000 in the services Operations and Maintenance 
     accounts for personnel and support costs of these units. A 
     summary of the funds provided follows:

----------------------------------------------------------------------------------------------------------------
                                                     Military
                                                     personnel          O&M         Procurement        Total
----------------------------------------------------------------------------------------------------------------
Air Force, B-52's...............................           4,500          42,400          10,400          57,300
Air Force Reserve, C-130's......................           1,409           6,780  ..............           8,189
Air National Guard C-130's......................           4,000          13,063  ..............          17,063
Air Force Reserve, WC-130 Weather Reconnaissance             170             830  ..............           1,000
Navy/Navy Reserve, Magic Lantern................           1,700           1,300  ..............           3,000
                                                 ---------------------------------------------------------------
      Total.....................................          11,779          64,373          10,400          86,552
----------------------------------------------------------------------------------------------------------------

                        foreign currency savings

       The budget request reduces the active duty military 
     personnel accounts by $62,000,000 for foreign currency 
     savings due to favorable fluctuations in overseas exchange 
     rates. The conferees understand that there are additional 
     savings and recommend a further reduction of $16,000,000 to 
     the personnel accounts, for a total foreign currency 
     reduction of $78,000,000.


                     contingency operations funding

       The fiscal year 1998 budget request recommended 
     $213,600,000 for pay and allowances of military personnel in 
     the ``Overseas Contingency Operations Transfer Fund'', for 
     cost of operations in Bosnia during fiscal year 1998. The 
     conferees agree to the realignment of these funds into the 
     Services military personnel accounts.


                  temporary early retirement authority

       The conferees recommend a total of $126,902,000 for Army 
     and Air Force Temporary Early Retirement Authority. Of this 
     amount, the conferees agree to restore $36,902,000, the 
     budget request, for Army separation payments. However, due to 
     enlisted understrength projections, the conferees recommend 
     $90,000,000, a reduction of $57,836,000 from the budget 
     request, for Air Force separation payments.

                          Active End Strength

                           [Fiscal year 1998]
------------------------------------------------------------------------
                                                              Conference
                                        Budget    Conference  vs. budget
------------------------------------------------------------------------
Army................................     495,000     495,000  ..........
Navy................................     390,802     390,802  ..........
Marine Corps........................     174,000     174,000  ..........
Air Force...........................     371,577     371,699        +122
                                     -----------------------------------
      Total, Active Personnel.......   1,431,379   1,431,501        +122
------------------------------------------------------------------------

                        Military Personnel, Army

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

                        [In thousands of dollars]
------------------------------------------------------------------------
                                         House      Senate    Conference
------------------------------------------------------------------------
Basic Allowance for Quarters........      10,326  ..........  ..........
Foreign Currency Savings............      -4,000  ..........      -9,000
Temporary Early Retirement Program..     -36,902  ..........  ..........
Service Academies Foreign Students..      -1,000  ..........      -1,000
Personnel Understrength Savings.....    -183,100  ..........    -240,000
Family Separation Allowance.........       9,600  ..........       9,600
Contingency Operations Transfer--        158,200     158,200     158,200
 Bosnia.............................
End Strength Reduction..............  ..........    -266,000  ..........
Additional Recruiting Support.......  ..........      42,000      42,000
                                     -----------------------------------
    Total, Military Personnel, Army.     -46,876     -65,800     -40,200
------------------------------------------------------------------------


[[Page H7671]]

                        Military Personnel, Navy

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

                        [In thousands of dollars]
------------------------------------------------------------------------
                                         House      Senate    Conference
------------------------------------------------------------------------
Basic Allowance for Quarters........       9,393  ..........  ..........
Foreign Currency Savings............      -1,000  ..........      -3,000
Service Academies Foreign Students..      -1,000  ..........      -1,000
Personnel Understrength Savings.....     -10,000  ..........     -10,000
Unemployment Compensation Savings...     -10,000  ..........     -10,000
Family Separation Allowance.........       9,300  ..........       9,300
Contingency Operations Transfer-           7,100       7,100       7,100
 Bosnia.............................
                                     -----------------------------------
      Total, Military Personnel,           3,793       7,100      -7,600
       Navy.........................
------------------------------------------------------------------------

                    Military Personnel, Marine Corps

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

                        [In thousands of dollars]
------------------------------------------------------------------------
                                         House      Senate    Conference
------------------------------------------------------------------------
Basic Allowance for Quarters........       2,736  ..........  ..........
Foreign Currency Savings............  ..........  ..........      -1,000
Personnel Understrength Savings.....      -3,600  ..........      -3,600
Family Separation Allowance.........      -3,600  ..........      -3,600
Unemployment Compensation Savings...     -10,000  ..........     -10,000
Contingency Operations Transfer-           1,300       1,300       1,300
 Bosnia.............................
                                     -----------------------------------
      Total, Military Personnel,          -5,964       1,300      -9,700
       Marine Corps.................
------------------------------------------------------------------------

                     Military Personnel, Air Force

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

                        [In thousands of dollars]
------------------------------------------------------------------------
                                         House      Senate    Conference
------------------------------------------------------------------------
Basic Allowance for Quarters........       8,654  ..........  ..........
Temporary Early Retirement Program..    -147,836  ..........     -57,836
Foreign Currency Savings............      -1,000  ..........      -3,000
Service Academies Foreign Students..      -1,000  ..........      -1,000
Personnel Understrength Savings.....     -18,000  ..........     -44,600
Family Separation Allowance.........       2,500  ..........       2,500
Contingency Operations Transfer-          47,000      47,000      47,000
 Bosnia.............................
B-52 Force Structure................  ..........       4,500       4,500
                                     -----------------------------------
      Total, Military Personnel, Air    -109,682      51,500     -52,436
       Force........................
------------------------------------------------------------------------

                   National Guard and Reserve Forces

       The conferees agree to provide $9,284,911,000 in Reserve 
     personnel appropriations, $9,310,912,000 in Operation and 
     maintenance appropriations, and $653,000,000 in the National 
     Guard and Reserve Equipment appropriation. These funds 
     support a Selected Reserve strength of 892,597 as shown 
     below.

                           Reserve Strengths

------------------------------------------------------------------------
                                              Fiscal year 1998
                                  --------------------------------------
                                                              Conference
                                      Budget     Conference   vs. Budget
------------------------------------------------------------------------
Selected Reserve:
    Army Reserve.................      208,000      208,000  ...........
    Navy Reserve.................       94,294       94,326          +32
    Marine Corps Reserve.........       42,000       42,000  ...........
    Air Force Reserve............       73,431       73,598         +167
    Army National Guard..........      366,516      366,516  ...........
    Air National Guard...........      107,377      108,157         +780
                                  --------------------------------------
      Total......................      891,618      892,597         +979
                                  ======================================
AGR/TARS:
    Army Reserve.................       11,500       11,500  ...........
    Navy Reserve.................       16,136       16,168          +32
    Marine Corps Reserve.........        2,559        2,559  ...........
    Air Force Reserve............          963          963  ...........
    Army National Guard..........       22,310       22,310  ...........
    Air National Guard...........       10,616       10,671          +55
                                  --------------------------------------
      Total......................       64,084       64,171          +87
                                  ======================================
Technicians:
    Army Reserve.................        6,501        6,501  ...........
    Air Force Reserve............        9,622        9,659          +37
    Army National Guard..........       25,250       25,250  ...........
    Air National Guard...........       22,968       23,068         +100
                                  --------------------------------------
      Total......................       64,341       64,478         +137
                                  ======================================
------------------------------------------------------------------------

           Retention of Military Leave for Federal Employees

       The conferees reject the budget request proposal to 
     eliminate military leave for those members of the Reserve 
     components who are Federal employees.


             Reserve Mobilization Income Insurance program

       The conferees include language in section 8005 of the 
     general provisions which provides the Department of Defense 
     reprogramming authority to meet its financial obligations 
     with respect to the termination of this program in the 
     absence of a supplemental appropriation.

                        Reserve Personnel, Army

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

                        [In thousands of dollars]
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Unit Readiness/Training..........        8,000  ...........  ...........
Basic Allowance for Quarters.....          569  ...........  ...........
Reserve Duty Drill Pay...........       20,400       20,400       20,400
Health Scholarship Stipend.......       -7,800       -7,800       -7,800
Personnel Understrength Savings..  ...........  ...........       -5,000
                                  --------------------------------------
      Total, Reserve Personnel,         21,169       12,600        7,600
       Army......................
------------------------------------------------------------------------

                        Reserve Personnel, Navy

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

                        [In thousands of dollars]
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
Basic Allowance for Quarters.....          648  ...........  ...........
Reserve Duty Drill Pay...........        8,500        8,500        8,500
Health Scholarship Stipend.......       -9,000       -9,000       -9,000
Magic Lantern Aircraft...........        1,700  ...........        1,700
                                  --------------------------------------
      Total, Reserve Personnel,          1,848         -500        1,200
       Navy......................
------------------------------------------------------------------------

                          navy reserve forces

       The conferees concur in the House direction regarding Navy 
     Reserve Forces.

                    Reserve Personnel, Marine Corps

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

                        [In thousands of dollars]
------------------------------------------------------------------------
                                            House    Senate   Conference
------------------------------------------------------------------------
Annual Training/School Tours............     7,000  ........      7,000
Basic Allowance for Quarters............       183  ........  ..........
Reserve Duty Drill Pay..................     3,700     3,700      3,700
                                         -------------------------------
      Total, Reserve Personnel, Marine      10,883     3,700     10,700
       Corps............................
------------------------------------------------------------------------

                      Reserve Personnel, Air Force

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

                        [In thousands of dollars]
------------------------------------------------------------------------
                                            House    Senate   Conference
------------------------------------------------------------------------
Basic Allowance for Quarters............       266  ........  ..........
Reserve Duty Drill Pay..................     8,200     8,200      8,200
Health Scholarship Stipend..............    -8,800    -8,800     -8,800
WC-130 Weather Reconnaissance...........       170  ........        170
C-130 Force Structure...................  ........     1,409      1,409
                                         -------------------------------
      Total, Reserve Personnel, Air           -164       809        979
       Force............................
------------------------------------------------------------------------

                     National Guard Personnel, Army

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

                        [In thousands of dollars]
------------------------------------------------------------------------
                                            House    Senate   Conference
------------------------------------------------------------------------
School/Special Training.................    10,000   115,000     40,000
Basic Allowance for Quarters............     1,520  ........  ..........
Reserve Duty Drill Pay..................    33,200    33,200     33,200
Annual Training.........................  ........    33,000     15,000
Inactive Duty Training..................  ........    20,000     10,000
Initial Entry Training..................  ........    35,000     30,000
Bonus/Transition Benefits...............  ........    10,000      5,000
                                         -------------------------------
      Total, National Guard Personnel,      44,720   246,200    133,200
       Army.............................
------------------------------------------------------------------------

                  National Guard Personnel, Air Force

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

                        [In thousands of dollars]
------------------------------------------------------------------------
                                            House    Senate   Conference
------------------------------------------------------------------------
Basic Allowance for Quarters............       705  ........  ..........
Reserve Duty Drill Pay..................    11,000    11,000     11,000
C-130 Force Structure...................  ........     4,000      4,000
                                         -------------------------------
      Total, National Guard Personnel,      11,705    15,000     15,000
       Air Force........................
------------------------------------------------------------------------

                  TITLE II--OPERATION AND MAINTENANCE

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
O&M. ARMY.......................................     17,049,484      17,078,218      16,913,473      16,754,306
    TRANSFER--STOCKPILE.........................        (50,000)        (50,000)        (50,000)        (50,000)
O&M. NAVY.......................................     21,508,130      21,779,365      21,576,419      21,617,766
    TRANSFER--STOCKPILE.........................        (50,000)        (50,000)        (50,000)        (50,000)
O&M. MARINE CORPS...............................      2,301,345       2,598,032       2,328,535       2,372,635
O&M. AIR FORCE..................................     18,817,785      18,740,167      18,592,385      18,492,883
    TRANSFER--STOCKPILE.........................        (50,000)        (50,000)        (50,000)        (50,000)
O&M. DEFENSEWIDE................................     10,390,938      10,053,956      10,399,638      10,639,740
O&M. ARMY RESERVE...............................      1,192,891       1,207,891       1,212,891       1,207,891
O&M. NAVY RESERVE...............................        834,711         924,711         834,211         921,711
O&M. MARINE CORPS RESERVE.......................        110,366         119,266         110,366         116,366
O&M. AIR FORCE RESERVE..........................      1,624,420       1,635,250       1,631,200       1,632,030
O&M. ARMY NATIONAL GUARD........................      2,258,932       2,313,632       2,449,932       2,419,632
O&M. AIR NATIONAL GUARD.........................      2,991,219       2,995,719       3,010,282       3,013,282
----------------------------------------------------------------------------------------------------------------


[[Page H7672]]


                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND...       1,467,500       1,855,400       1,889,000       1,884,000
UNITED STATES COURT OF APPEALS FOR THE ARMED               6,952           6,952           6,952           6,952
 FORCES.........................................
ENVIRONMENTAL RESTORATION, ARMY.................         377,337         377,337         375,337         375,337
ENVIRONMENTAL RESTORATION, NAVY.................         277,500         277,500         275,500         275,500
ENVIRONMENTAL RESTORATION, AIR FORCE............         378,900         378,900         376,900         376,900
ENVIRONMENTAL RESTORATION, DEFENSE-WIDE.........          27,900          27,900          26,900          26,900
ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE         202,300         202,300         242,300         242,300
 SITES..........................................
OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID..          80,130          55,557          40,130          47,130
FORMER SOVIET UNION THREAT REDUCTION............         382,200         284,700         382,200         382,200
QUALITY OF LIFE ENHANCEMENTS, DEFENSE...........  ..............  ..............         100,000         360,000
                                                 ---------------------------------------------------------------
      GRAND TOTAL, O&M..........................      82,280,940      82,912,753      82,774,551      82,895,461
----------------------------------------------------------------------------------------------------------------

                       real property maintenance

       The conferees are concerned about the extensive backlog of 
     real property maintenance in the Department of Defense and 
     the effect this has on the morale of U.S. service personnel. 
     Accordingly, the conferees agree to provide a total of 
     $724,620,000, of which $360,000,000 is provided in the 
     Quality of Life Enhancements, Defense account. The conferees 
     also agree that, of the funds for real property maintenance 
     provided within Operation and Maintenance, Army at 
     $15,000,000 shall be used for demolition requirements 
     previously identified by the Department of the Army. In the 
     case of real property maintenance funding provided directly 
     to the services' Operation and maintenance accounts, the 
     conferees agree the Department of Defense should provide 
     written notification to the congressional defense committees 
     for transfers of greater than $15,000,000 to or from the 
     total real property maintenance amount provided to each 
     service.


            operation and maintenance budget execution data

       The conferees support the position expressed in the House 
     report accompanying the Defense Appropriations bill for 
     fiscal year 1998 requiring the Department of Defense to 
     provide the congressional defense committees with quarterly 
     budget execution data. Such data should be provided not later 
     than forty-five days past the close of each quarter of the 
     fiscal year, and should provide data for each O-1 budget 
     activity, activity group, and subactivity for each of the 
     active, defense-wide, reserve and national guard components. 
     These reports should also include: the budget request and 
     actual obligations for each O-1 budget activity, activity 
     group, and subactivity; the DoD distribution of any 
     unallocated congressional adjustments to the budget request 
     to each budget activity, activity group, and subactivity 
     group; and, adjustments to each budget activity, activity 
     group and subactivity group resulting from DoD reprogramming 
     actions.


                operation and maintenance reprogramming

       The conferees agree that proposed transfers of funds 
     between O-1 budget activities in excess of $15,000,000 are 
     subject to normal, prior approval reprogramming procedures.
       The Department should also follow prior approval 
     reprogramming procedures for the cumulative value of 
     transfers in excess of $15,000,000 into or out of the 
     following O-1 subactivity groups.
     Operation and Maintenance, Army
       Depot maintenance.
     Operation and maintenance, Navy
       Aircraft depot maintenance, ship depot maintenance, and 
     Intermediate maintenance.
     Operation and maintenance, Marine Corps
       Depot maintenance.
       The conferees further direct the Secretary of the Air Force 
     to identify in separate budget subactivities depot 
     maintenance for budget activity one and budget activity two 
     in the fiscal year 1999 budget request and subsequent budget 
     requests. In addition, due to continuing concerns about force 
     readiness and the apparent diversion of Operation and 
     maintenance funds, the conferees agree that the Department 
     should provide written notification of the congressional 
     defense committees for the cumulative value of any and all 
     transfers in excess of $15,000,000 from or into the following 
     budget activities and subactivity group categories:
     Operation and maintenance, Army
       Land Forces: Divisions, Corps combat forces, Corps support 
     forces, Echelon above corps forces, Land forces operations 
     support; Land Forces Readiness: Land forces depot 
     maintenance.
     Operation and maintenance, Navy
       Air Operations: Mission and other flight operations; Fleet 
     air training, Aircraft depot maintenance; Ship Operations: 
     Mission and other ship operations, Ship operational support 
     and training, Intermediate maintenance, Ship depot 
     maintenance.
     Operation and maintenance, Marine Corps
       Expeditionary Forces: Operational forces, depot 
     maintenance.
     Operation and maintenance, Air Force
       Air Operations: Primary combat forces, Primary combat 
     weapons, Air operations training; Mobility Operations: 
     Airlift operations, payments to the transportation business 
     area.

            Defense Computer Investigations Training Program


                         computer forensics lab

       The conferees support the Department of Defense efforts to 
     improve information security and investigative capabilities 
     related to computer crimes. The conferees urge the Department 
     of Defense to allocate $8,500,000 of the funds available in 
     Operation and Maintenance, Navy and $2,700,000 available in 
     Operation and Maintenance, Air Force to improve capabilities 
     in this area. Further, the conferees direct that the 
     Department of Defense fully fund these activities in the 
     fiscal year 1999 budget request.


                  chemical-biological defense funding

       The conferees recommend that the Department of Defense use 
     existing facilities with explosives ranges capable of 
     handling large blasts and existing instructional and research 
     programs in response to blast, radiological, biological and 
     chemical threats.


                           distance education

       The conferees recognize that in recent nationwide surveys, 
     one out of three homeless men identifies himself as a 
     military veteran. The conferees further recognize that a 
     significant percentage of the thousands of men and women 
     leaving the armed forces each year are doing so without 
     having earned either an associates or bachelors degree. This 
     lack of formal education credentials may be making it more 
     difficult for veterans to secure good jobs following their 
     military service. Therefore, the conferees encourage the 
     Department to explore distance education initiatives that 
     could assist active duty personnel and their family members, 
     DoD civilian employees and veterans in pursuing college-level 
     degrees. These distance education degree-granting initiatives 
     must be portable so that they can be pursued regardless of 
     changes of duty station.


                environmentally safe fuel storage tanks

       The conferees support Department of Defense efforts to 
     develop and install environmentally safe fuel storage tanks. 
     Accordingly, the conferees direct that $2,000,000 of the 
     funds in Operation and Maintenance, Marine Corps, and 
     $2,000,000 of the funds made available in Operation and 
     Maintenance, Air Force be used to support such efforts.

                        Northern Mariana Islands

       The conferees are aware of communications between the 
     Government of the Northern Mariana Islands and the Department 
     of Defense concerning future development of certain lands on 
     the island of Tinian in the Commonwealth of the Northern 
     Mariana Islands under lease to the United States. 
     Accordingly, the conferees believe the Secretary of Defense 
     should consider a development plan approved by the Government 
     of the Commonwealth of the Northern Mariana Islands to be a 
     ``Permitted Use'' within the meaning of Article 1, Subsection 
     D of the Leaseback and Disposal Agreement between the 
     Commonwealth of the Northern Mariana Islands and the United 
     States of America dated August 4, 1994, provided that (1) 
     such a plan has been approved by the Government of the 
     Commonwealth of the Northern Mariana Islands, and (2) the 
     plan does not preclude use of the land for urgent military 
     purposes.

                    Operation and Maintenance, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                            Budget             House              Senate           Conference
----------------------------------------------------------------------------------------------------------------
 100 OPERATION AND MAINTENANCE,
      ARMY
 150 BUDGET ACTIVITY 1: OPERATING
      FORCES
 200 LAND FORCES
 250 DIVISIONS                             1,221,794          1,267,007          1,161,494          1,173,494
 300 CORPS COMBAT FORCES                     350,942            350,942            327,242            332,942
 350 CORPS SUPPORT FORCES                    323,190            323,190            323,190            323,190
 400 ECHELON ABOVE CORPS FORCES              440,542            440,542            440,542            440,542
 450 LAND FORCES OPERATIONS                  658,067            658,067            658,067            658,067
      SUPPORT

[[Page H7673]]

 
 500 LAND FORCES READINESS
 550 FORCE READINESS OPERATIONS              898,356            898,356            898,356            898,356
      SUPPORT
 600 LAND FORCES SYSTEMS READINESS           346,651            346,651            346,651            346,651
 650 LAND FORCES DEPOT MAINTENANCE           637,044            806,744            701,044            780,244
 700 LAND FORCES READINESS SUPPORT
 750 BASE SUPPORT                          2,417,712          2,441,712          2,417,712          2,440,712
 800 MAINTENANCE OF REAL PROPERTY            693,328            693,328            743,328            693,328
 850 MANAGEMENT AND OPERATIONAL              130,012            130,012            131,212            131,212
      HEADQUARTERS
 900 UNIFIED COMMANDS                         70,620             70,620             63,620             52,620
 950 MISCELLANEOUS ACTIVITIES                179,864            185,264            179,864            179,864
 955 CLASSIFIED PROGRAMS,           .................  .................             1,800   .................
      UNDISTRIBUTED
                                   -----------------------------------------------------------------------------
1045       TOTAL, BUDGET ACTIVITY          8,368,122          8,612,435          8,394,122          8,451,222
            1
                                   =============================================================================
1050 BUDGET ACTIVITY 2:
      MOBILIZATION
1100 MOBILITY OPERATIONS
1200 STRATEGIC MOBILIZATION                  317,241            317,241            317,241            317,241
1250 WAR RESERVE ACTIVITIES                  171,100            171,100            171,100            171,100
1300 INDUSTRIAL PREPAREDNESS                  78,103             59,099             78,103             59,099
                                   -----------------------------------------------------------------------------
1350       TOTAL, BUDGET ACTIVITY            566,444            547,440            566,444            547,440
            2
                                   =============================================================================
1400 BUDGET ACTIVITY 3: TRAINING
      AND RECRUITING
1450 ACCESSING TRAINING
1500 OFFICER ACQUISITION                      63,992             62,592             63,992             62,592
1550 RECRUIT TRAINING                         12,620             12,620             12,620             12,620
1600 ONE STATION UNIT TRAINING                14,723             14,723             14,723             14,723
1650 RESERVE OFFICER TRAINING                113,128            113,128            113,578            113,578
      CORPS (ROTC)
1700 BASE SUPPORT (ACADEMY ONLY)              72,470             72,470             72,470             72,470
1750 MAINTENANCE OF REAL PROPERTY             28,123             28,123             28,123             28,123
      (ACADEMY ONLY)
1800 BASIC SKILL/ADVANCE TRAINING
1850 SPECIALIZED SKILL TRAINING              217,202            217,202            217,202            217,202
1900 FLIGHT TRAINING                         213,906            213,906            227,906            224,906
1950 PROFESSIONAL DEVELOPMENT                 69,594             69,594             69,594             69,594
      EDUCATION
2000 TRAINING SUPPORT                        484,484            484,484            482,484            479,484
2050 BASE SUPPORT (OTHER TRAINING)           897,433            897,433            897,433            897,433
2100 MAINTENANCE OF REAL PROPERTY            321,089            321,089            350,089            321,089
      (OTHER TRAINING)
2150 RECRUITING/OTHER TRAINING
2200 RECRUITING AND ADVERTISING              222,718            229,718            241,718            235,718
2250 EXAMINING                                75,922             75,922             75,922             75,922
2300 OFF-DUTY AND VOLUNTARY                   94,364             94,364             94,364             94,364
      EDUCATION
2350 CIVILIAN EDUCATION AND                   81,481             78,629             81,481             81,481
      TRAINING
2400 JUNIOR ROTC                              73,439             74,189             73,439             74,189
2450 BASE SUPPORT (RECRUITING
      LEASES)
     163,,010                                163,010            163,010            163,010            163,010
                                   -----------------------------------------------------------------------------
2500       TOTAL, BUDGET ACTIVITY          3,219,698          3,223,196          3,280,148          3,238,498
            3
                                   =============================================================================
2550 BUDGET ACTIVITY 4: ADMIN &
      SERVICEWIDE ACTIVITIES
2600 SECURITY PROGRAMS
2650 SECURITY PROGRAMS                       366,085            366,085            366,085            366,085
2700 LOGISTICS OPERATIONS
2750 SERVICEWIDE TRANSPORTATION              531,326            531,326            531,326            531,326
2800 CENTRAL SUPPLY ACTIVITIES               405,371            405,371            405,371            405,371
2850 LOGISTIC SUPPORT ACTIVITIES             253,138            286,338            275,038            289,138
2900 AMMUNITION MANAGEMENT                   369,407            369,407            369,407            369,407
2950 SERVICEWIDE SUPPORT
3000 ADMINISTRATION                          294,972            246,971            294,972            246,372
3050 SERVICEWIDE COMMUNICATIONS              620,825            620,825            632,925            626,825
3100 MANPOWER MANAGEMENT                     152,437            152,437            152,437            152,437
3150 OTHER PERSONNEL SUPPORT                 155,307            155,307            155,307            155,307
3200 OTHER SERVICE SUPPORT                   593,446            595,446            529,485            531,485
3250 ARMY CLAIMS ACTIVITIES                  151,092            151,092            151,092            151,092
3300 REAL ESTATE MANAGEMENT                   63,526             63,526             63,526             63,526
3350 BASE SUPPORT                            667,779            624,279            667,779            623,779
3400 MAINTENANCE OF REAL PROPERTY            131,528            131,528            145,028            135,028
3550 SUPPORT OF OTHER NATIONS
3600 INTERNATIONAL MILITARY                  270,413            270,413            255,413            255,413
      HEADQUARTERS
3650 MISC SUPPORT OF OTHER NATIONS            34,568             34,568             34,568             34,568
                                   -----------------------------------------------------------------------------
3700       TOTAL, BUDGET ACTIVITY          5,061,220          5,004,919          5,029,759          4,937,159
            4
                                   =============================================================================
3710 CLASSIFIED PROGRAMS            .................            -6,895   .................            -6,895
      UNDISTRIBUTED
3715 CIVILIAN PERSONNEL             .................           -33,300           -131,000            -96,400
      UNDERSTRENGTH
3720 GENERAL REDUCTION, NATIONAL             -50,000            -50,000            -50,000            -50,000
      DEFENSE STOCKPILE FUND
3730 FOREIGN CURRENCY FLUCTUATION/          -116,000           -135,000           -135,000           -167,000
      BUDGET AMEND
3770 INFORMATION RESOURCE           .................           -25,000   .................           -25,000
      MANAGEMENT
3785 REAL PROPERTY MAINTENANCE      .................           232,000   .................            98,812
3787 ECONOMIC ASSUMPTIONS           .................  .................           -41,000            -41,000
3790 TDY EXPENSES                   .................           -19,930   .................           -22,930
3795 QDR CIVILIAN PERSONNEL         .................          -140,347   .................           -70,000
      REDUCTIONS
3800 CONTINGENCY OPERATIONS         .................           -80,300   .................  .................
      TRANSFER--SWA
3815 NON-BRAC CARETAKER STATUS      .................           -51,000   .................           -40,000
3835 MEMORIAL EVENTS                .................  .................  .................               400
                                   =============================================================================
4100       TOTAL, OPERATION AND           17,049,484         17,078,218         16,913,473         16,754,306
            MAINTENANCE, ARMY
4150 TRANSFER                                (50,000)           (50,000)           (50,000)           (50,000)
                                   -----------------------------------------------------------------------------
4200       TOTAL FUNDING AVAILABLE       (17,099,484)       (17,128,218)       (16,963,473)       (16,804,306)
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  250  Readiness Training--NTC Rotation Shortfall................30,000
  250  Parachute Maintenance and Repair...........................2,000
  250  Contingency Operations Transfer..........................-80,300
  300  Hunter UAV................................................12,000
  300  Flying Hour Program......................................-30,000
  650  Depot Maintenance--Other.................................143,200
  750  Organizational Clothing and Equipment (Increment I).......20,000
  750  Range Safe System..........................................1,700
  750  Ft. Irwin, George AFB Airhead..............................1,300
  850  USARPAC Reserve Component Integration......................1,200
  900  JCS Exercises and Headquarters Reduction.................-18,000
Budget Activity 2: Mobilization:
  1300  Industrial Preparedness-Nominal Growth..................-19,004
Budget Activity 3: Training and Recruiting:
  1500  Service Academies-Foreign Students.......................-1,400
  1650  Army Air Battle Captain Program.............................450
  1900  Army Pilot Modernization Program.........................11,000
  2000  Training Infrastructure Reduction........................-5,000
  2200  Recruiting-Enlisted Advertising...........................7,000
  2200  Recruiter Support.........................................3,500
  2200  Recruiting-College Loan Repayment Program.................2,500

[[Page H7674]]

Budget Activity 4: Administration and Servicewide Activities:
  2400  Indiana University Northwest JROTC Mentoring Program........750
  2850  Army Logistics Automation................................20,000
  2850  Central Logistics--SSTS, Depot Maintenance, SDT..........16,000
  3000  Headquarters and Administrative Activity Reduction......-48,600
  3050  SBIS......................................................6,000
  3200  Army Conservation and Ecosystem Management................3,000
  3200  Eisenhower Center.........................................2,000
  3200  Pentagon Reservation Transfer...........................-66,961
  3350  Laser-Leveling............................................1,000
  3350  FEMP....................................................-45,000
  3400  Rock Island Arsenal Bridge................................3,500
  3600  International Military Headquarters.....................-15,000
Undistributed:
  3710  Classified Undistributed.................................-6,895
  3715  Civilian Personnel Understrength........................-96,400
  3730  Foreign Currency Fluctuation............................-51,000
  3770  High Risk Automation Systems............................-25,000
  3785  Real Property Maintenance................................98,812
  3787  Revised Economic Assumptions............................-41,000
  3790  TDY Expenses............................................-22,930
  3795  QDR--Civilian Personnel Reductions......................-70,000
  3815  Non-BRAC Caretaker Status...............................-40,000
  3835  Capitol Memorial Events.....................................400

                           Depot Maintenance

       The conferees recommend increasing the Army depot 
     maintenance funding by $143,200,000 above the budget request. 
     In addition, $16,000,000 is provided in budget activity 4, 
     Administration and Service-wide support to provide for 
     transportation and warehousing costs associated with the 
     increase in the funded depot maintenance program. The 
     conferees remain concerned about backlogs in the repair and 
     maintenance of communications and electronic equipment. 
     Accordingly, $43,500,000 of the total depot maintenance 
     increase is allocated to the U.S. Army Communications-
     Electronics Command Battlefield Communications Review 
     program, for performance at Army depots, of the following 
     workloads: $21,000,000 for repair/maintenance of Mobile 
     Subscriber Equipment shelters, prime movers, and accessories 
     or support equipment; $15,800,000 for the repair/maintenance 
     of Non-Integrated Communications Secure and Integrated 
     Communications Secure SINCGARS radios and accessories or 
     support equipment; and $6,700,000 for the repair, maintenance 
     or modification of the AN/TS-85 and AN/TSC-93 Tactical 
     Satellite Communications Terminals, associated antenna 
     systems, accessories or support equipment.
       In addition, the conferees are concerned about the 
     increasing backlog of depot maintenance workload associated 
     with inventory drawdowns in support of contingency 
     operations. Accordingly, the conferees recommend that the 
     Army apply $30,000,000 of the total increase to this 
     workload.

                       Army Logistics Automation

       The House and Senate bills each addressed separate 
     shortfalls totaling $46,900,0900 in Army Logistics 
     Automation. The conferees agree to provide $20,000,000 in 
     Operations and Maintenance, Army and $10,000,000 in Other 
     Procurement, Army (LOGTECH) to support both these critical 
     efforts.

                       Air Battle Captain Program

       The conferees concur with the funding provided for the 
     continuation of the Air Battle Captain program, and direct 
     that program continue to accept new students.

                           Eisenhower Center

       The conferees have provided $2,000,000 only for the 
     Eisenhower Center for military history and education efforts 
     focusing on combat leadership, motivation, endurance and 
     including historical exhibits, equipment, and the collection, 
     transcribing, and cataloging of oral histories and written 
     memoirs of combat veterans

                      North Star Borough Landfill

       Of the funds provided in this account, the conferees direct 
     the Department of the Army to provide $5,000,000 for 
     developmental costs associated with the expansion of the 
     North Star Borough landfill.

                    Operation and Maintenance, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
  4250 OPERATION AND MAINTENANCE, NAVY
  4300 BUDGET ACTIVITY 1: OPERATING FORCES
  4350 AIR OPERATIONS
  4400 MISSION AND OTHER FLIGHT OPERATIONS          2,101,423       2,423,423       2,035,663       2,357,663
  4450 FLEET AIR TRAINING                             667,112         667,112         682,112         682,112
  4500 INTERMEDIATE MAINTENANCE                        58,087          58,087          58,087          58,087
  4550 AIR OPERATIONS AND SAFETY SUPPORT               73,248          73,248          73,248          73,248
  4600 AIRCRAFT DEPOT MAINTENANCE                     716,300         865,300       1,012,094         782,094
  4650 AIRCRAFT DEPOT OPERATIONS SUPPORT               21,575          21,575         21,.575          21,575
  4700 BASE SUPPORT                                   789,892         789,892         789,892         789,892
  4750 MAINTENANCE OF REAL PROPERTY                   262,452         262,452         262,452         262,452
  4760 JCS EXERCISES & HEADQUARTERS REDUCTION   ..............  ..............         -7,500          -9,000
  4800 SHIP OPERATIONS
  4850 MISSION AND OTHER SHIP OPERATIONS            2,130,636       2,130,636       2,117,112       2,117,112
  4900 SHIP OPERATIONAL SUPPORT AND TRAINING          735,660         735,660         735,660         735,660
  4950 INTERMEDIATE MAINTENANCE                       511,125         511,125         511,125         511,125
  5000 SHIP DEPOT MAINTENANCE                       2,040,690       2,115,690       2,040,690       2,100,690
  5050 SHIP DEPOT OPERATIONS SUPPORT                  786,021         786,021         785,817         785,817
  5100 BASE SUPPORT                                   840,646         840,646         840,646         840,646
  5150 MAINTENANCE OF REAL PROPERTY                   245,904         245,904         245,904         245,904
  5160 JCS EXERCISES & HEADQUARTERS REDUCTION   ..............  ..............         -7,500          -9,000
  5200 COMBAT OPERATION/SUPPORT
  5250 COMBAT COMMUNICATIONS                          210,776         210,776         210,776         210,776
  5300 ELECTRONIC WARFARE                               7,763           7,763           7,763           7,763
  5350 SPACE SYSTEMS AND SURVEILLANCE                 136,869         136,869         136,869         136,869
  5400 WARFARE TACTICS                                125,892         125,892         125,892         125,892
  5450 OPERATIONAL METEOROLOGY AND                    209,188         208,188         228,688         228,688
        OCEANOGRAPHY
  5500 COMBAT SUPPORT FORCES                          383,830         383,830         383,815         383,815
  5550 EQUIPMENT MAINTENANCE                          177,708         178,208         176,906         177,406
  5600 DEPOT OPERATIONS SUPPORT                           908             908             908             908
  5650 BASE SUPPORT                                   317,266         317,266         317,266         317,266
  5700 MAINTENANCE OF REAL PROPERTY                    42,864          42,864          46,864          46,864
  5710 CLASSIFIED PROGRAMS UNDISTRIBUTED                 ----            ----           5,500            ----
  5750 WEAPONS SUPPORT
  5800 CRUISE MISSILE                                  92,462          92,482          92,482          92,482
  5850 FLEET BALLISTIC MISSILE                        811,451         811,451         811,451         811,451
  5900 IN-SERVICE WEAPONS SYSTEMS SUPPORT              54,927          54,927          54,927          54,927
  5950 WEAPONS MAINTENANCE                            400,817         422,717         400,817         414,817
  6000 BASE SUPPORT                                    71,540          71,540          71,540          71,540
  6050 MAINTENANCE OF REAL ESTATE PROPERTY             27,516          27,516          30,016          27,516
                                               -----------------------------------------------------------------
  6200       TOTAL, BUDGET ACTIVITY 1              15,052,568      15,620,968      15,345,257      15,451,057
                                               =================================================================
  6250 BUDGET ACTIVITY 2: MOBILIZATION
  6300 READY RESERVE AND PREPOSITIONING FORCES
  6350 SHIP PREPOSITIONING AND SURGE                  455,030         455,030         454,948         454,948
  6400 ACTIVATIONS/INACTIVATIONS
  6450 AIRCRAFT ACTIVATIONS/INACTIVATIONS               3,081           3,081           3,081           3,081
  6500 SHIP ACTIVATIONS/INACTIVATIONS                 701,583         701,583         701,583         701,583
  6550 MOBILIZATION PREPAREDNESS
  6600 FLEET HOSPITAL PROGRAM                          19,814          19,814          19,814          19,814
  6650 INDUSTRIAL READINESS                            29,196             703          29,196          15,196
  6700 COAST GUARD SUPPORT                             18,363          18,363          18,363          18,363
                                               -----------------------------------------------------------------
  6750       TOTAL, BUDGET ACTIVITY 2:              1,227,067       1,198,574       1,226,985       1,212,985
                                               =================================================================
  6800 BUDGET ACTIVITY 3: TRAINING AND
        RECRUITING
  6850 ACCESSION TRAINING
  6900 OFFICER ACQUISITIONS                            69.274          67.874          69.274          67.874

[[Page H7675]]

 
  6950 RECRUIT TRAINING                                 4,646           4,646           4,646           4,646
  7000 RESERVE OFFICIERS TRAINING CORPS (ROTC)         67,795          67,795          67,695          67,795
  7050 BASE SUPPORT                                    57,605          57,605          57,605          57,605
  7100 MAINTENANCE OF REAL PROPERTY                    74,215          42,715          74,215          74,215
  7150 BASIC SKILLS AND ADVANCED TRAINING
  7200 SPECIALIZED SKILL TRAINING                     236,487         236,487         218,487         216,987
  7250 FLIGHT TRAINING                                314,790         314,790         314,790         314,790
  7300 PROFESSIONAL DEVELOPMENT EDUCATION              69,044          65,071          64,044          66,044
  7350 TRAINING SUPPORT                               135,051         137,051         122,051         122,551
  7400 BASE SUPPORT                                   339,627         339,627         339,627         339,627
  7450 MAINTENANCE OF REAL PROPERTY                    95,601          95,601         104,101          95,601
  7500 RECRUITION AND OTHER TRAINING AND
        EDUCATION
  7550 RECRUITING AND ADVERTISING                     122,454         129,454         122,454         125,454
  7600 OFF-DUTY AND VOLUNTARY EDUCATION                69,495          69,495          69,495          69,495
  7650 CIVILIAN EDUCATION AND TRAINING                 29,198          28,176          29,198          29,198
  7700 JUNIOR ROTC                                     23,642          23,642          23,642          23,642
  7750 BASE SUPPORT                                       445             445             445             445
  7800 MAINTENANCE OF REAL PROPERTY                        62              62              62              62
                                               -----------------------------------------------------------------
  7850       TOTAL, BUDGET ACTIVITY 3               1,709,431       1,680,536       1,681,931       1,676,031
  7900 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
        ACTIVITIES
  7950 SERVICEWIDE SUPPORT
  8000 ADMINISTRATION                                 574,305         535,225         545,494         497,194
  8050 EXTERNAL RELATIONS                              24,141          24,141          24,141          24,141
  8100 CIVILIAN MANPOWER AND PERSON MANAGEMENT        118,544         118,544         118,544         118,544
  8150 MILITARY MANPOWER AND PERSON MANAGEMENT        124,403         124,403         124,403         124,403
  8200 OTHER PERSONNEL SUPPORT                        199,446         199,446         199,446         199,446
  8250 SERVICEWIDE COMMUNICATIONS                     260,056         260,056         259,749         259,749
  8300 BASE SUPPORT                                   197,537         172,537         197,537         172,537
  8400 MAINTENANCE OF REAL PROPERTY                    39,623          39,623          42,923          39,623
  8450 LOGISTICS OPERATIONS AND TECHNICAL
        SUPPORT
  8500 SERVICEWIDE TRANSPORTATION                     149,675         149,675         149,675         149,675
  8550 PLANNING, ENGINEERING AND DESIGN               258,779         258,779         258,779         258,779
  8600 ACQUISITION AND PROGRAM MANAGEMENT             491,003         495,003         491,003         493,003
  8650 AIR SYSTEMS SUPPORT                            271,149         271,149         271,149         271,149
  8700 HULL, MECHANICAL AND ELECTRICAL SUPPORT         46,904          46,904          46,904          46,904
  8750 COMBAT/WEAPONS SYSTEMS                          41,547          41,547          41,547          41,547
  8800 SPACE AND ELECTRONIC WARFARE SYSTEMS            70,344          70,344          70,344          70,344
  8850 BASE SUPPORT                                   152,606         152,606         152,606         152,606
  8900 MAINTENANCE OF REAL PROPERTY                    20,470          20,470          20,470          20,470
  8950 SECURITY PROGRAMS
  9000 SECURITY PROGRAMS                              536,691         536,691         536,691         536,691
  9050 BASE SUPPORT                                     6,886           6,886           6,886           6,886
  9100 MAINTENANCE OF REAL PROPERTY                     1,520           1,520           1,520           1,520
  9150 SUPPORT OF OTHER NATIONS
  9200 INTERNATIONAL HEADQUARTERS AND AGENCIES          6,435           6,435           6,435           6,435
                                               -----------------------------------------------------------------
  9350       TOTAL, BUDGET ACTIVITY 4               3,592,064       3,531,984       3,568,246       3,491,646
                                               =================================================================
  9360 CLASSIFIED PROGRAMS UNDISTRIBUTED        ..............          1,902   ..............          4,902
  9365 INFORMATION RESOURCE MANAGEMENT          ..............        -19,000   ..............        -19,000
  9370 GENERAL REDUCTION, NATIONAL DEFENSE            -50,000         -50,000         -50,000         -50,000
        STOCKPILE FUND
  9380 FOREIGN CURRENCY FLUCTUATION/BUDGET            -23,000         -23,000         -21,000         -29,000
        AMEND
  9390 CIVILIAN PERSONNEL UNDERSTRENGTH         ..............       -108,300        -113,000         -16,000
  9415 ENVIRONMENTAL COMPLIANCE                 ..............          5,500   ..............          3,300
  9417 ECONOMIC ASSUMPTIONS                     ..............  ..............        -62,000         -62,000
  9420 OTHER CONTRACTS                          ..............        -29,719   ..............        -29,719
  9425 REAL PROPERTY MAINTENANCE                ..............         98,540   ..............         14,924
  9430 TDY EXPENSES                             ..............        -12,060   ..............        -15,060
  9435 QDR CIVILIAN PERSONNEL REDUCTIONS        ..............        -34,960   ..............        -17,000
  9440 ASBESTOS ERADICATION                     ..............          2,000   ..............  ..............
  9445 CONTINGENCY OPERATIONS TRANSFER--SWA     ..............        -84,900   ..............  ..............
  9450 MAGIC LANTERN                            ..............          1,300   ..............          1,300
                                               =================================================================
  9750       TOTAL, OPERATION AND MAINTENANCE,     21,508,130      21,779,365      21,576,419      21,617,766
              NAVY
  9800 TRANSFER                                       (50,000)        (50,000)        (50,000)        (50,000)
                                               -----------------------------------------------------------------
  9850       TOTAL FUNDING AVAILABLE              (21,558,130)    (21,829,365)    (21,626,419)    (21,667,766)
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  4400  Flying Hour Program Shortfalls..........................322,000
  4400  Contingency Operations Transfer.........................-65,760
  4450  PMRF.....................................................15,000
  4600  Depot Maintenance--Aviation Backlog......................70,000
  4600  Contingency Operations Transfer..........................-4,206
  4760  JCS Exercises and Headquarters Reduction.................-9,000
  4850  Contingency Operations Transfer.........................-13,524
  5000  Depot Maintenance--Unfunded Ship Availabilities..........60,000
  5050  Contingency Operations Transfer............................-204
  5160  JCS Exercises and Headquarters Reduction.................-9,000
  5450  Naval Meteorology and Oceanography Command...............19,500
  5500  Contingency Operations Transfer.............................-15
  5550  Reverse Osmosis Desalinators--Refurbishment.................500
  5550  Contingency Operations Transfer............................-802
  5950  Gun Weapon Overhaul and Support, Louisville..............12,000
  5950  Ship Self Defense System (SSDS) Equipment--Wallops Island.2,000
Budget Activity 2: Mobilization:
  6350  Contingency Operations Transfer.............................-82
  6650  Industrial Preparedness--Nominal Growth.................-14,000
Budget Activity 3: Training and Recruiting:
  6900  Service Academies--Foreign Students......................-1,400
  7200  Training Infrastructure Reduction.......................-19,500
  7300  Naval Postgraduate School--Laboratory Improvements........2,000
  7300  Training Infrastructure Reduction........................-5,000
  7350  CNET--Distance Learning...................................2,000
  7350  Training Infrastructure Reduction.......................-14,500
  7550  Recruiting and Advertising................................3,000
Budget Activity 4: Administration and Servicewide Activities:
  8000  Pentagon Reservation Transfer...........................-28,811
  8000  Headquarters and Administrative Activity Reduction......-48,300
  8250  Contingency Operations Transfer............................-307
  8300  FEMP....................................................-25,000
  8600  ATIS......................................................2,000
Undistributed:
  9360  Classified Undistributed..................................4,902
  9365  DoD Software Program Managers Network.....................6,000
  9365  High Risk Automation Systems............................-25,000
  9380  Foreign Currency Fluctuation.............................-6,000
  9390  Civilian Personnel Understrength........................-16,600
  9415  Electrotechnologies.......................................3,300
  9417  Revised Economic Assumptions............................-62,000
  9420  Other Contracts--Program Growth.........................-29,719
  9425  Real Property Maintenance................................14,924
  9430  TDY Expenses............................................-15,060
  9435  QDR--Civilian Personnel Reductions......................-17,000
  9450  Magic Lantern.............................................1,300

[[Page H7676]]

                         SHIP DEPOT MAINTENANCE

       The conferees agree to provide $2,100,690,000 for ship 
     depot maintenance, and delete the language recommended by the 
     Senate establishing a floor on ship depot maintenance 
     funding. The conferees' recommendation will provide the fleet 
     commanders flexibility in managing their operation and 
     maintenance funds during the fiscal year, in recognition that 
     emergencies can lead to funding shortfalls. However, the 
     conferees strongly urge the Navy leadership to ensure that 
     all funds provided for ship maintenance are used solely for 
     that purpose except in the most unusual of circumstances.
       The conferees understand that the Navy will initiate a 
     pilot program beginning on October 1, 1997 to study whether 
     combining fleet intermediate facilities with Navy shipyards 
     might yield economies of scale and allow maintenance managers 
     to better balance workloads in the Navy shipyards. The 
     conferees believe it will take at least two years before the 
     Navy can determine whether this new arrangement is in fact 
     cost effective and should be made permanent or expanded to 
     other locations. Therefore, the conferees direct that the 
     pilot program shall not be expanded until six months after 
     the Navy reports to the Committees on Appropriations on its 
     findings, and that such report shall be made on or after 
     April 1, 1999. Further, the conferees direct that the Navy 
     shall not make any changes to the workforce in terms of total 
     numbers of employees and shall not change the name of the 
     Navy activity involved or make any permanent changes until 
     this pilot study has been completed and evaluated by the 
     Congress. The conferees are hopeful that the study will lead 
     to significant improvements in Navy maintenance functions and 
     look forward to approving permanent changes throughout the 
     Navy beginning in fiscal year 2000.


                         1998 WORLD EXPOSITION

       The conferees understand that the Navy has requested to 
     participate as one of the United States Government sponsors 
     of the U.S. exhibit focused on ocean research and technology 
     at the 1998 World Exposition in Lisbon, Portugal. Should the 
     Secretary of the Navy determine that Navy participation is 
     beneficial to the interests of the service, the conferees 
     agree that adequate funds should be made available from the 
     Operation and maintenance account to assist in the creation 
     and operation of the U.S. national pavilion. Funds shall be 
     used to exhibit defense capabilities in global oceanography 
     and environmental security to include interaction among NOAA 
     and the appropriate entities of the Department of Defense.

                Operation and Maintenance, Marine Corps

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
  9900 OPERATION AND MAINTENANCE, MARINE CORPS
  9950 BUDGET ACTIVITY 1: OPERATING FORCES
 10000 EXPEDITIONARY FORCES
 10050 OPERATIONAL FORCES                              345,077         404,577         364,077         378,077
 10100 FIELD LOGISTICS                                 183,660         183,660         183,660         183,660
 10150 DEPOT MAINTENANCE                               121,339         146,339         121,339         133,339
 10200 BASE SUPPORT                                    639,495         674,895         639,495         653,995
 10250 MAINTENANCE OF REAL PROPERTY                    263,593         263,593         286,193         263,593
 10255 JCS EXERCISES & HEADQUARTERS REDUCTION   ..............  ..............          -5,000          -8,000
 10300 USMC PREPOSITIONING
 10350 MARITIME PREPOSITIONING                          77,380          77,380          77,380          77,380
 10400 NORWAY PREPOSITIONING                             3,603           3,603           3,603           3,603
                                               -----------------------------------------------------------------
 10450       TOTAL, BUDGET ACTIVITY 1                1,634,147       1,754,047       1,670,747       1,685,647
----------------------------------------------------------------------------------------------------------------


                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
 10500 BUDGET ACTIVITY 3: TRAINING AND RECRUITING
 10550 ACCESSION TRAINING
 10600 RECRUIT TRAINING                                           9,098        9,098        9,098        9,098
 10650 OFFICER ACQUISITION                                          282          282          282          282
 10700 BASE SUPPORT                                              51,266       61,266       51,266       58,766
 10750 MAINTENANCE OF REAL PROPERTY                              18,115       18,115       19,715       18,115
 10800 BASIC SKILLS AND ADVANCED TRAINING
 10850 SPECIALIZED SKILLS TRAINING                               28,647       28,647       33,147       28,647
 10900 FLIGHT TRAINING                                              156          156          156          156
 10950 PROFESSIONAL DEVELOPMENT EDUCATION                         5,803        5,803        5,803        5,803
 11000 TRAINING SUPPORT                                          78,749       78,749       77,649       75,649
 11050 BASE SUPPORT                                              54,557       64,557       54,557       62,057
 11100 MAINTENANCE OF REAL PROPERTY                              25,051       25,051       27,251       25,051
 11150 RECRUITING AND OTHER TRAINING EDUCATION
 11200 RECRUITING AND ADVERTISING                                74,442       78,842       74,442       78,742
 11250 OFF-DUTY AND VOLUNTARY EDUCATION                          15,063       15,063       15,063       15,063
 11300 JUNIOR ROTC                                                9,006        9,006        9,006        9,006
 11350 BASE SUPPORT                                               8,100        8,100        8,100        8,100
 11400 MAINTENANCE OF REAL PROPERTY                               2,447        2,447        2,747        2,447
                                                           -----------------------------------------------------
 11450       TOTAL, BUDGET ACTIVITY 3                           380,782      405,182      388,282      396,982
----------------------------------------------------------------------------------------------------------------


                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
 11500 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
        ACTIVITIES
 11550 SERVICEWIDE SUPPORT
 11650 SPECIAL SUPPORT                                 219,312         219,312         207,102         207,102
 11700 SERVICEWIDE TRANSPORTATION                       30,617          30,617          30,617          30,617
 11750 ADMINISTRATION                                   26,105          26,105          26,105          26,105
 11800 BASE SUPPORT                                     12,370          12,370          12,370           9,870
 11850 MAINTENANCE OF REAL PROPERTY                      2,012           2,102           2,312           2,012
                                               -----------------------------------------------------------------
 11900       TOTAL, BUDGET ACTIVITY 4                  290,416         290,416         278,506         275,706
                                               =================================================================
 11915 FOREIGN CURRENCY FLUCTUATION/BUDGET              -4,000          -4,000          -2,000          -4,000
        AMEND
 11935 REAL PROPERTY MAINTENANCE                ..............         154,100  ..............          30,500
 11937 ECONOMIC ASSUMPTIONS                     ..............  ..............          -7,000          -7,000
 11940 QDR CIVILIAN PERSONNEL REDUCTIONS        ..............          -1,713  ..............          -1,000
 11960 CIVILIAN PERSONNEL UNDEREXECUTION        ..............  ..............  ..............          -1,200
 11965 TDY EXPENSES                             ..............  ..............  ..............          -3,000
                                               =================================================================
 12300       TOTAL, OPERATION AND MAINTENANCE,       2,301,345       2,598,032       2,328,535       2,372,635
              MARINE CORPS
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  10050  Readiness Training--Operating Forces Training Support...25,000
  10050  Initial Issue (Clothing/Body Armor/Bivouac gear).........8,000
  10150  Depot Maintenance Backlog Reduction.....................12,000
  10200  Base Support.............................................7,500
  10200  Personnel Support Equipment..............................7,000
  10255  JCS Exercises and Headquarters Reduction................-8,000
Budget Activity 3: Training and Recruiting:
  10700  Base Support.............................................7,500
  11000  Training Infrastructure Reduction.......................-3,100
  11050  Base Support.............................................7,500
  11200  Recruiting and Advertising...............................4,300

[[Page H7677]]

Budget Activity 4: Administration and Servicewide Activities:
  11650  Pentagon Reservation Transfer..........................-12,210
  11800  Base Support.............................................7,500
  11800  FEMP...................................................-10,000
Undistributed:
  11935  Real Property Maintenance...............................30,500
  11937  Revised Economic Assumptions............................-7,000
  11940  QDR--Civilian Personnel Reductions......................-1,000
  11960  Civilian Personnel Understrength........................-1,200
  11965  TDY Expenses............................................-3,000

                  Operation and Maintenance, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
 12450 OPERATION AND MAINTENANCE, AIR
        FORCE
 12500 BUDGET ACTIVITY 1: OPERATING FORCES
 12550 AIR OPERATIONS:
 12600 PRIMARY COMBAT FORCES                     2,719,301        3,020,301        2,571,801        2,572,801
 12650 PRIMARY COMBAT WEAPONS                      457,939          457,939          457,939          457,939
 12700 COMBAT ENHANCEMENT FORCES                   253,099          253,099          256,199          256,199
 12750 AIR OPERATIONS TRAINING                     617,828          617,828          617,828          617,828
 12800 COMBAT COMMUNICATIONS                       981,936          981,936          981,936          981,936
 12850 BASE SUPPORT                              1,758,461        1,786,261        1,758,461        1,770,561
 12900 MAINTENANCE OF REAL PROPERTY                576,409          576,409          626,009          576,409
 12905 JCS EXERCISES & HEADQUARTERS         ...............  ...............         -15,000          -18,000
        REDUCTION
 12907 CLASSIFIED PROGRAMS UNDISTRIBUTED    ...............  ...............             800   ...............
 12950 COMBAT RELATED OPERATIONS:
 13000 5GLOBAL C3I AND EARLY WARNING               712,916          712,916          712,916          712,916
 13050 NAVIGATION/WEATHER SUPPORT                  131,608          131,608          131,608          131,608
 13100 OTHER COMBAT OPS SUPPORT PROGRAMS           205,449          208,249          205,449          207,249
 13150 JCS EXERCISES                                45,306           45,306           45,306           45,306
 13200 MANAGEMENT/OPERATIONAL HEADQUARTERS         113,400          113,400          113,400          113,400
 13250 TACTICAL INTEL AND OTHER SPECIAL            231,411          234,411          231,411          232,911
        ACTIVITIES
 13300 SPACE OPERATIONS
 13350 LAUNCH FACILITIES                           226,956          226,956          226,956          226,956
 13400 LAUNCH VEHICLES                             103,576          103,576          103,576          103,576
 13450 SPACE CONTROL SYSTEMS                       283,597          283,597          284,997          284,997
 13500 SATELLITE SYSTEMS                            42,235           42,235           42,235           42,235
 13550 OTHER SPACE OPERATIONS                       82,972           82,972           82,972           82,972
 13600 BASE SUPPORT                                310,370          310,370          310,370          310,370
 13650 MAINT OF REAL PROPERTY                      119,869          119,869          130,269          119,869
                                           ---------------------------------------------------------------------
 13700       TOTAL, BUDGET ACTIVITY 1            9,974,638       10,309,238        9,877,438        9,830,038
                                           =====================================================================
 13750 BUDGET ACTIVITY 2: MOBILIZATION
 13800 MOBILITY OPERATIONS:
 13850 AIRLIFT OPERATIONS                        1,793,506        1,848,106        1,853,506        1,908,106
 13900 AIRLIFT OPERATIONS C31                       16,267           16,267           16,267           16,267
 13950 MOBILIZATION PREPAREDNESS                   145,868          140,763          145,868          140,763
 14000 PAYMENTS TO TRANSPORTATION BUSINESS         514,000          514,000          514,000          514,000
        AREA
 14050 BASE SUPPORT                                427,865          427,865          427,865          427,865
 14100 MAINTENANCE OF REAL PROPERTY                151,842          151,842          165,842          151,842
                                           ---------------------------------------------------------------------
 14150       TOTAL, BUDGET ACTIVITY 2            3,049,348        3,098,843        3,122,848        3,158,843
                                           =====================================================================
 14200 BUDGET ACTIVITY 3: TRAINING AND
        RECRUITING
 14250 ACCESSION TRAINING:
 14300 OFFICER ACQUISITION                          51,605           50,205           51,605           50,205
 14350 RECRUIT TRAINING                              3,971            3,971            3,971            3,971
 14400 RESERVE OFFICER TRAINING CORPS               47,611           47,611           47,611           47,611
        (ROTC)
 14450 BASE SUPPORT (ACADEMIES ONLY)                57,262           57,262           57,262           57,262
 14500 MAINTENANCE OF REAL PROPERTY                 50,662           50,662           50,662           50,662
        (ACADEMIES ONLY)
 14550 BASIC SKILLS AND ADVANCED TRAINING:
 14600 SPECIALIZED SKILL TRAINING                  196,980          196,980          176,980          175,980
 14650 FLIGHT TRAINING                             394,075          394,075          394,075          394,075
 14700 PROFESSIONAL DEVELOPMENT EDUCATION           88,682           68,216           76,682           75,682
 14750 TRAINING SUPPORT                             63,296           63,296           51,296           50,296
 14800 BASE SUPPORT (OTHER TRAINING)               370,436          370,436          370,436          370,436
 14850 MAINTENANCE OF REAL PROPERTY (OTHER          87,072           87,072           96,372           87,072
        TRAINING)
 14900 RECRUITING, AND OTHER TRAINING AND
        EDUCATION:
 14950 RECRUITING AND ADVERTISING                   55,039           59,539           55,039           57,239
 15000 EXAMINING                                     2,212            2,212            2,212            2,212
 15050 OFF DUTY AND VOLUNTARY EDUCATION             85,609           85,609           85,609           85,609
 15100 CIVILIAN EDUCATION AND TRAINING              67,183           64,832           67,183           67,183
 15150 JUNIOR ROTC                                  26,052           26,052           26,052           26,052
                                           ---------------------------------------------------------------------
 15200       TOTAL, BUDGET ACTIVITY 3            1,647,747        1,628,030        1,613,047        1,601,547
                                           =====================================================================
 
 15250 BUDGET ACTIVITY 4: ADMIN &
        SERVICEWIDE ACTIVITIES
 15300 LOGISTICS OPERATIONS:
 15350 LOGISTICS OPERATIONS                        788,680          788,680          788,680          788,680
 15400 TECHNICAL SUPPORT ACTIVITIES                390,267          390,267          390,267          390,267
 15450 SERVICEWIDE TRANSPORTATION                  236,372          236,372          236,372          236,372
 15500 BASE SUPPORT                                753,449          720,449          753,449          720,449
 15550 MAINTENANCE OF REAL PROPERTY                194,617          194,617          213,217          194,617
 15600 SERVICEWIDE ACTIVITIES:
 15650 ADMINISTRATION                              126,642           75,480          126,642           73,942
 15700 SERVICEWIDE COMMUNICATIONS                  297,316          297,316          300,016          297,316
 15750 PERSONNEL PROGRAMS                          100,343          100,343          100,343          100,343
 15800 RESCURE AND RECOVERY SERVICES                55,881           55,881           55,881           55,881
 15900 ARMS CONTROL                                 29,565           29,565           29,565           29,565
 15950 OTHER SERVICEWIDE ACTIVITIES                524,545          525,045          494,945          495,445
 16000 OTHER PERSONNEL SUPPORT                      33,623           33,623           33,623           33,623
 16050 CIVIL AIR PATROL CORPORATION                 17,927           18,727           22,327           21,527
 16100 BASE SUPPORT                                155,791          155,791          155,791          155,791
 16150 MAINTENANCE OF REAL PROPERTY                 10,728           10,728           12,828           10,728
 16200 SECURITY PROGRAMS:
 16250 SECURITY PROGRAMS                           510,046          510,046          482,846          510,046
 16300 SUPPORT TO OTHER NATIONS:
 16350 INTERNATIONAL SUPPORT                        13,260           13,260           13,260           13,260
                                           ---------------------------------------------------------------------
 16400       TOTAL, BUDGET ACTIVITY 4            4,239,052        4,161,190        4,210,052        4,127,852
                                           =====================================================================
 16410 CLASSIFIED PROGRAMS UNDISTRIBUTED    ...............          13,900   ...............           4,000
 16415 CIVILIAN PERSONNEL UNDERSTRENGTH     ...............         -70,000          -82,000           -7,700
 16420 GENERAL REDUCTION, NATIONAL DEFENSE         -50,000          -50,000          -50,000          -50,000
        STOCKPILE FUND
 16430 FOREIGN CURRENCY FLUCTUATION/BUDGET         -43,000          -53,000          -53,000          -67,000
        AMEND
 16475 INFORMATION RESOURCE MANAGEMENT      ...............         -16,000   ...............         -16,000
 16487 ECONOMIC ASSUMPTIONS                 ...............  ...............         -46,000          -46,000
 16490 OTHER CONTRACTS                      ...............         -93,981   ...............         -93,981
 16495 CHEMICAL/BIOLOGICAL DEFENSE--PACOM   ...............          10,000   ...............          10,000
 16500 CONTINGENCY OPERATION TRANSFER--SWA  ...............        -459,900   ...............  ...............
 16505 REAL PROPERTY MAINTENANCE            ...............         358,200   ...............         100,384
 16510 TDY EXPENSES                         ...............         -20,000   ...............         -23,000
 16515 QDR--CIVILIAN PERSONNEL REDUCTIONS   ...............         -76,253   ...............         -36,000
                                           ---------------------------------------------------------------------

[[Page H7678]]

 
 16800       TOTAL, O&M, AIR FORCE              18,817,785       18,740,167       18,592,385       18,492,883
 16850           TRANSFER                          (50,000)         (50,000)         (50,000)         (50,000)
                                           ---------------------------------------------------------------------
 16900           TOTAL FUNDING AVAILABLE       (18,867,785)     (18,790,167)     (18,642,385)     (18,542,883)
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  12600  Flying Hour Program Shortfalls (AVDLR Shortfall).......240,000
  12600  B-52 Attrition Reserve..................................42,400
  12600  SR-71...................................................30,000
  12600  Battle Labs..............................................1,000
  12600  Contingency Operations Transfer.......................-459,900
  12700  NBC Defense Program......................................3,100
  12850  Force Protection-Base Physical Security.................12,100
  12905  JCS Exercises and Headquarters Reduction...............-18,000
  13100  SIMVAL...................................................1,800
  13250  JFACC Situational Awareness System (JSAS)................1,500
  13450  Spacetrack...............................................1,400
Budget Activity 2: Mobilization:
  13850  Flying Hour Program Shortfalls (AVDLR Shortfall)........60,000
  13850  Depot Maintenance-KC-135 DPEM...........................54,600
  13950  Industrial Preparedness-Nominal Growth..................-5,105
Budget Activity 3: Training and Recruiting:
  14300  Service Academies-Foreign Students......................-1,400
  14600  Training Infrastructure Reduction......................-21,000
  14700  Training Infrastructure Reduction......................-13,000
  14750  Training Infrastructure Reduction......................-13,000
  14950  Recruiting and Advertising...............................2,200
Budget Activity 4: Administration and Sevicewide Activities:
  15500  FEMP...................................................-33,000
  15650  HEADQUARTERS AND ADMINISTRATIVE ACTIVITY REDUCTION.....-52,700
  15950  CAMP.......................................................500
  15950  Pentagon Reservation Transfer..........................-29,600
  16050  Civil Air Patrol--Counterdrug Activities.................2,800
  16050  Civil Air Patrol Corporation...............................800
Undistributed:
  16410  Classified Undistributed.................................4,000
  16415  Civilian Personnel Under Strength.......................-7,700
  16430  Foreign Currency Fluctuation...........................-24,000
  16475  REMIS...................................................-8,900
  16475  High Risk Automation Systems...........................-25,000
  16487  Revised Economic Assumptions...........................-46,000
  16490  Other Contracts--Program Growth........................-93,981
  16495  Chemical/Biological Defense--PACOM......................10,000
  16505  Real Property Maintenance..............................100,384
  16510  TDY Expenses...........................................-23,000
  16515  QDR--Civilian Personnel Reductions.....................-36,000


                                 b-52s

       The conferees provide a total of $57,300,000 to fund 
     attrition reserve B-52 aircraft:

Operation and maintenance...................................$42,400,000
Aircraft procurement; mods...................................10,400,000
Military personnel............................................4,500,000

       The conferees direct that this funding be used to operate 
     and maintain the current force structure of 94 B-52s and to 
     continue standard maintenance and upgrades on the attrition 
     reserve aircraft. For the purposes of this procurement 
     funding, the conferees direct the Air Force to treat all 94 
     B-52s now in the force structure as planes to be retained for 
     the six-year period beginning October 1, 1997.


                     william lehman aviation center

       The William Lehman Aviation Center at Florida Memorial 
     College--a Historically Black College located in Miami, 
     Florida--is well positioned to assist in the recruitment and 
     training of minorities in military aviation. The conferees 
     urge the Department of the Air Force to work closely with the 
     College in fully utilizing and developing FMC's faculty, 
     equipment, facilities and expertise.


                 environmental quality responsibilities

       The conferees are concerned of potentially duplicative 
     activities undertaken by the Air Force Center for 
     Environmental Excellence (AFCEE) and other Departmental 
     environmental centers. The conferees direct that the Air 
     Force review this situation and take prompt action to ensure 
     that the mission and responsibilities of the AFCEE fully 
     conform to the commitments made by the Air Force when this 
     center was first established and that its activities are 
     focused on the mission for which it was established.

                Operation and Maintenance, Defense-Wide

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
 16950 OPERATION AND MAINTENANCE, DEFENSE-WIDE
 17000 BUDGET ACTIVITY 1: OPERATING FORCES
 17050 JOINT CHIEFS OF STAFF                           541,169         491,169         454,007         452,007
 17100 SPECIAL OPERATIONS COMMAND                    1,085,927       1,129,027  ..............       1,119,327
                                               -----------------------------------------------------------------
 17150       TOTAL, BUDGET ACTIVITY 1                1,627,096       1,620,196         454,007       1,571,334
                                               =================================================================
 17200 BUDGET ACTIVITY 2: MOBILIZATION
 17250 DEFENSE LOGISTICS AGENCY                         27,260          27,260          27,260          27,260
 17350 BUDGET ACTIVITY 3: TRAINING AND
        RECRUITING
 17400 DEFENSE ACQUISITION UNIVERSITY                   99,964          96,064          94,964          94,964
 17450 AMERICAN FORCES INFORMATION SERVICE              11,586          11,586          11,586          11,586
 17500 DEFENSE HUMAN RESOURCES FIELD ACTIVITY           14,200          14,200          14,200          14,200
 17550 DEFENSE SPECIAL WEAPONS AGENCY                      475             475             475             475
 17600 SPECIAL OPERATIONS COMMAND                       37,930          37,930          37,930          37,930
                                               -----------------------------------------------------------------
 17650       TOTAL, BUDGET ACTIVITY 3                  164,155         160,255         159,155         159,155
                                               =================================================================
 17700 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
        ACTIVITIES
 17750 AMERICAN FORCES INFORMATION SERVICE              94,956          94,956          94,956          94,956
 17800 CLASSIFIED AND INTELLIGENCE                   3,490,397       3,392,136       3,461,797       3,450,966
 17900 DEFENSE CONTRACT AUDIT AGENCY                   329,264         326,764         329,264         326,764
 17950 DEFENSE FINANCE AND ACCOUNTING SERVICE           91,654  ..............          91,654          70,654
 18000 DEFENSE HUMAN RESOURCES FIELD ACTIVITY          124,735         122,735         124,735         122,735
 18050 DEFENSE INFORMATION SYSTEMS AGENCY              725,858         717,658         690,258         689,058
 18100 DEFENSE INVESTIGATIVE SERVICE                   186,661         186,661         186,661         186,661
 18150 DEFENSE LEGAL SERVICES AGENCY                     8,839           8,839           8,087           8,087
 18200 DEFENSE LOGISTICS AGENCY                      1,086,443       1,138,043       1,099,443       1,126,043
 18300 DEFENSE POW/MIA OFFICE                           14,195          14,195          14,195          14,195
 18350 DEFENSE SPECIAL WEAPONS AGENCY                   87,837          87,837          87,837          87,837
 18400 DEFEBSE SUPPORT ACTIVITIES                       69,270          69,270          69,270          69,270
 18450 DEFENSE TECHNOLOGY SECURITY                      10,545          10,545          10,545          10,545
        ADMINISTRATION
 18500 DEPARTMENT OF DEFENSE DEPENDENTS              1,321,196       1,325,196       1,321,496       1,332,496
        EDUCATION
 18550 FEDERAL ENERGY MANAGEMENT PROGRAM        ..............          15,000  ..............          15,000
 18600 JOINT CHIEFS OF STAFF                           128,561         126,561         113,661         117,561
 18650 OFFICE OF ECONOMIC ADJUSTMENT                     40217          49,217          40,217         114,217
 18700 OFFICE OF THE SECRETARY OF DEFENSE              406,894         343,127         399,056         316,489
 18755 CIVIL-MILITARY PROGRAMS                  ..............  ..............          72,000          72,000
 18800 ON SITE INSPECTION AGENCY                       109,226          98,026          95,626          95,626
 18850 SPECIAL OPERATIONS COMMAND                       45,532          45,532          45,532          45,532
 18900 WASHINGTON HEADQUARTERS SERVICE                 213,147         198,847         213,147         210,147
 18905 CANADIAN CLEANUP                         ..............  ..............         -10,400  ..............
 18920 REPAIRS TO FEDERALLY-FUNDED SCHOOLS      ..............  ..............          10,000          10,000
                                               -----------------------------------------------------------------

[[Page H7679]]

 
 18950       TOTAL, BUDGET ACTIVITY 4                8,585,427       8,371,145       8,569,037       8,586,839
                                               =================================================================
 18951 BUDGET ACTIVITY 5: SPECIAL OPERATIONS
 18952 SPECIAL OPERATIONS COMMAND               ..............       1,123,527  ..............
 18960 LEGACY                                   ..............  ..............          10,000          10,000
 18965 PENTAGON RENOVATION TRANSFERS            ..............  ..............         137,652         137,652
 18970 CIVILIAN PERSONNEL UNDERSTRENGTH         ..............         -33,900         -42,000          -8,000
 18975 FOREIGN CURRENCY FLUCTUATION/BUDGET             -13,000         -13,000         -10,000         -16,000
        AMEND
 18980 MPACT AID                                ..............          35,000  ..............  ..............
 18982 ECONOMIC ASSUMPTIONS                     ..............  ..............         -29,000         -29,000
 19010 INFORMATION RESOURCE MANAGEMENT          ..............         -15,000  ..............         -15,000
 19030 PENTAGON RENOVATION SWING SPACE          ..............          -9,500  ..............          -9,500
 19045 DEFENSE AUTOMATED PRINTING SERVICE       ..............         -15,000  ..............          -8,000
 19065 CENTER FOR THE STUDY OF THE CHINESE      ..............           5,000  ..............  ..............
        MILITARY
 19085 CONTINGENCY OPERATIONS TRANSFER--SWA     ..............          -9,500  ..............  ..............
 19090 QDR--6% REDUCTION                        ..............         -72,000  ..............         -37,000
 19095 QDR--RESTRUCTURING RESERVE               ..............          18,000  ..............  ..............
 19100 GENERAL REDUCTION                        ..............         -15,000  ..............  ..............
                                               =================================================================
 19350       TOTAL, OPERATION AND MAINTENANCE,      10,390,938      10,053,956      10,399,638      10,369,740
              DEFENSE-WIDE
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  17050  JCS Exercises..........................................-50,000
  17050  Partnership for Peace..................................-44,162
  17050  Exercise Northern Edge...................................5,000
  17100  SOCOM--Readiness OPTEMPO................................28,530
  17100  SOCOM--CP/WMD...........................................11,270
  17100  SOCOM--GORTEX/NOMEX Flight Suits.........................3,300
  17100  Contingency Operations Transfer--SOCOM/SWA..............-3,200
  17100  SOCOM--JCS Exercises....................................-6,500
Budget Activity 3: Training and Recruiting:
  17400  DAU--Continuing Acquisition Education...................-5,000
Budget Activity 4: Administration and Servicewide Activities:
  17800  Contingency Operations Transfer.........................-2,700
  17800  Classified and Intelligence............................-36,731
  17900  DCAA--Within Grade Increases............................-2,500
  17950  DFAS--Executive and Professional Training...............-4,500
  17950  DFAS--Property Accountability System...................-16,500
  18000  DHRFA--Operations.......................................-2,000
  18050  DISA--White House Communications Agency.................-8,200
  18050  DISA--Contingency Operations Transfer..................-28,600
  18150  Defense Legal Services Agency.............................-752
  18200  DLA--Security Locks.....................................25,000
  18200  DLA--Automated Document Conversion......................20,000
  18200  DLA--Procurement Technical Assist. Program..............17,000
  18200  DLA--DPSC Demolition....................................10,000
  18200  DLA--Cargo Methods and Technologies......................3,000
  18200  DLA--Blankets...........................................-2,400
  18200  DLA--Housing Improvement Fund Management................-7,000
  18200  DLA--DWCF Transfer.....................................-26,000
  18500  DoDDS--Guam Schools.....................................18,000
  18500  DoDDS--Family Counseling and Crisis Services.............3,000
  18500  DoDDS--Math Teacher Leadership Development Project.........300
  18500  DoDDS--Unobligated Balances............................-10,000
  18550  Federal Energy Management Program.......................15,000
  18600  JCS--Travel and Administrative Costs...................-11,000
  18650  Monterey Institute Counter-Proliferation Analysis........9,000
  18650  Industrial Modernization................................50,000
  18650  Ford Ord Defense Conversion Center.......................7,500
  18650  San Diego Conversion Center..............................7,500
  18700  OSD--Partnership for Peace Transfer.....................44,162
  18700  OSD--Military Personnel Information System...............5,000
  18700  OSD--First Responder Training............................1,300
  18700  OSD--C3I Mission and Analysis Fund......................-5,000
  18700  OSD--Funding Transfer..................................-17,000
  18700  OSD--Administrative Savings............................-20,000
  18700  OSD--Civil Military Programs Transfer..................-40,000
  18700  OSD--Civil Military Programs...........................-58,867
  18755  Civil Military Programs.................................72,000
  18800  OSIA--Treaty Requirements..............................-10,000
  18800  OSIA--Transfer to Contingency Operations................-3,600
  18900  WHS--TDY and Administrative Expenses....................-3,000
  18920  Repairs to Federally Funded Schools.....................10,000
Undistributed:
  18960  Legacy..................................................10,000
  18965  Pentagon Reservation Transfer..........................137,652
  18970  Civilian Personnel Understrength........................-8,000
  18975  Foreign Currency Fluctuation............................-3,000
  18982  Revised Economic Assumptions...........................-29,000
  19010  High Risk Automation Systems...........................-15,000
  19030  Pentagon Renovation Fund--Swing Space Costs.............-9,500
  19045  Defense Automated Printing Service......................-8,000
  19090  QDR Defense Agency Reductions..........................-37,000


                 defense finance and accounting service

       The Department requested $91,654,000 for activities that 
     the conferees believe are more properly funded through the 
     Defense Working Capital Fund. The conferees therefore agree 
     to a reduction of $21,000,000 and direct DFAS to budget for 
     these activities within the Defense Working Capital Fund in 
     future budget submissions.


                 defense human resources field activity

       The conferees agree to provide $138,935,000 for the Defense 
     Human Resources Field Activity, a reduction of $2,000,000 
     from the President's Budget. The conferees direct that none 
     of this reduction be taken against the Department's very 
     successful efforts with Operation Mongoose.


                        defense logistics agency

       The Defense Logistics Agency (DLA) budget included 
     $42,900,000 for expenses that were in the Defense Working 
     Capital Fund (DWCF). Of these the conferees believe that 
     $36,000,000, as identified in House Report 105-206, should 
     have stayed within the DWCF and directs DLA to budget for 
     these expenses within the DWCF in the future.


                  national imagery and mapping agency

       The conferees agree to delete House language, but expect 
     the National Imagery and Mapping Agency (NIMA) to abide by 
     its commitment and recent Policy Directive 8600R1 that a 
     qualifications based selection (QBS) process for mapping, 
     charting and geodesy service contracts will be used and that 
     NIMA will seek a revision to the Federal Acquisition 
     Regulations to this effect.


                       new parent support program

       The conferees agree that the New Parent Support Program 
     complements and works in concert with all programs associated 
     with violence prevention, child development and family 
     advocacy. In recent years, funds have been provided for 
     expansion of this program within all the Services. The 
     conferees encourage the Department to continue funding this 
     program at current levels during fiscal year 1998, and to 
     budget sufficient resources in future budget submissions.


                        industrial modernization

       The conference report includes $50,000,000 only for 
     projects or programs to assist in the commercial 
     reutilization and modernization of government industrial 
     complexes no longer in service. The conferees direct that 
     such funds be used to support no more than 10 percent of the 
     total project cost, and be committed only for projects that 
     are determined by the Secretary (1) to be financially self-
     sustaining over the long-term, and (2) to enhance the 
     national defense. The conferees intend that these funds be 
     used for grants for operational transition, planning, and 
     training costs.


    reserve peacetime support to active duty and civilian activities

       The conferees agree to provide $10,000,000 for Reserve 
     peacetime support to active duty and civilian activities. The 
     conferees direct the Department of Defense to report to the 
     Committees on Appropriations on how the fiscal year 1997 
     funding was allocated by theater, activities or exercises 
     supported by this program, and the number of reservists by 
     service who participated under this initiative. This report 
     is to be provided not later than January 15, 1998.


                        Civil Military Programs

       The conferees recommend a total of $72,000,000 for civil/
     military programs for fiscal year 1998 as follows:

                       [In thousands of dollars]

Youth Challenge program..........................................48,000
Innovative Readiness Training....................................20,000
Starbase youth program............................................4,000
                                                             __________
                                                             
    Total........................................................72,000

[[Page H7680]]

                       on-site inspection agency

       The conferees have agreed to reduce funding for the On-Site 
     Inspection Agency. If additional funds prove necessary to 
     meet emergent requirements stemming from valid treaty 
     obligations, the conferees expect the Department of Defense 
     to submit a reprogramming request subject to normal, prior 
     approval reprogramming procedures.


                          travel reengineering

       The Department of Defense report on Travel Reengineering 
     states that the Department spends approximately 
     $3,000,000,000 annually on temporary duty travel. Of this 
     amount, 15 to 30 percent is for management overhead costs. 
     The Department believes that, through reengineering, they can 
     reduce these costs by more than half, a savings of over 
     $300,000,000 per year. The conferees are supportive of these 
     goals, but remain concerned about how DoD will identify and 
     capture these savings. The conferees therefore direct the 
     Department to provide a detailed report, no later than 
     January 1, 1998, of what savings it expects to result from 
     implementing this program in Travel Region 6, where those 
     savings will come from and how DoD intends to capture those 
     savings in its future budget requests. The conferees also 
     direct the Department to provide a similar report with 
     respect to full implementation prior to expanding this 
     program beyond Travel Region 6.


                                 legacy

       Of the funds appropriated for the Legacy program, the 
     Committee directs that $100,000 be utilized to develop a 
     management plan, in cooperation with the appropriate state 
     and local entities, to preserve and protect the Revolutionary 
     War gunboat that was recently discovered on the bottom of 
     Lake Champlain.


                         job placement program

       The Conferees direct the Department of Defense to provide 
     at least $6,000,000 from within available funds for the 
     implementation of a combined job placement and community 
     outreach services program. This program should market and 
     coordinate involvement of existing qualified service 
     providers through the Job Training Partnership Act, 
     facilitate municipal offering of community outreach services 
     and provide data for the evaluation of federal job placement 
     programs. This program should be implemented in communities 
     where military bases have undergone downsizing.

                Operation and Maintenance, Army Reserve

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
 19500 OPERATION AND MAINTENANCE, ARMY RESERVE
 19550 BUDGET ACTIVITY 1: OPERATING FORCES
 19600 MISSION OPERATIONS
 19650 BASE SUPPORT                                             309,446      309,446      309,446      309,446
 19700 MAINTENANCE OF REAL PROPERTY                              85,255       90,255       85,255       90,255
 19750 DEPOT MAINTENANCE                                         41,366       41,366       41,366       41,366
 19850 TRAINING OPERATIONS                                      620,827      630,827      640,827      630,827
                                                           -----------------------------------------------------
 19900       TOTAL, BUDGET ACTIVITY 1                         1,056,894    1,071,894    1,076,894    1,071,894
                                                           =====================================================
 19950 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES
 20000 ADMINISTRATION AND SERVICEWIDE ACTIVITIES
 20050 INFORMATION MANAGEMENT                                    20,033       20,033       20,033       20,033
 20100 PUBLIC AFFAIRS                                               489          489          489          489
 20150 PERSONNEL ADMINISTRATION                                  50,196       50,196       50,196       50,196
 20200 STAFF MANAGEMENT                                          27,405       27,405       27,405       27,405
 20250 RECRUITING AND ADVERTISING                                37,874       37,874       37,874       37,874
                                                           -----------------------------------------------------
 20300       TOTAL, BUDGET ACTIVITY 4                           135,997      135,997      135,997      135,997
                                                           =====================================================
 20700       TOTAL, OPERATION AND MAINTENANCE, ARMY           1,192,891    1,207,891    1,212,891    1,207,891
              RESERVE
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  19700  Maintenance of Real Property.............................5,000
  19850  Training Operations/Ground OPTEMPO......................10,000
                                                             __________
                                                             
    Total adjustments...........................................+15,000

                Operation and Maintenance, Navy Reserve

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
 20850 OPERATION AND MAINTENANCE, NAVY RESERVE
 20900 BUDGET ACTIVITY 1: OPERATING FORCES
 20950 RESERVE AIR OPERATIONS
 21000 MISSION AND OTHER FLIGHT OPERATIONS                      302,531      302,531      302,531      319,531
 21050 FLEET AIR TRAINING                                           200          200          200          200
 21100 INTERMEDIATE MAINTENANCE                                  17,528       17,528       17,528       17,528
 21150 AIR OPERATION AND SAFETY SUPPORT                           2,574        3,074        2,574        3,074
 21200 AIRCRAFT DEPOT MAINTENANCE                                58,053       68,053       58,053       65,053
 21250 AIRCRAFT DEPOT OPS SUPPORT                                   315          315          315          315
 21300 BASE SUPPORT                                              99,563       99,563       99,563       99,563
 21350 MAINTENANCE OF REAL PROPERTY                              24,512       24,512       24,512       24,512
 21400 RESERVE SHIP OPERATIONS
 21450 MISSION AND OTHER SHIP OPERATIONS                         59,509       59,509       59,509       59,509
 21500 SHIP OPERATIONAL SUPPORT AND TRAINING                        638          638          638          638
 21550 INTERMEDIATE MAINTENANCE                                  10,326       10,326       10,326       10,326
 21600 SHIP DEPOT MAINTENANCE                                    68,324       68,324       68,324       68,324
 21650 SHIP DEPOT OPERATIONS SUPPORT                              1,487        1,487        1,487        1,487
 21700 RESERVE COMBAT OPERATIONS SUPPORT
 21800 COMBAT SUPPORT FORCES                                     25,632       25,632       25,632       25,632
 21850 BASE SUPPORT                                              38,503       38,503       38,503       38,503
 21900 MAINTENANCE OF REAL PROPERTY                               9,220        9,220        9,220        9,220
 21950 RESERVE WEAPONS SUPPORT
 22000 WEAPONS MAINTENANCE                                        4,136        4,136        4,136        4,136
                                                           -----------------------------------------------------
 22050       TOTAL, BUDGET ACTIVITY 1                           723,551      733,551      723,051      747,551
                                                           =====================================================
 22100 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES
 22150 ADMINISTRATION AND SERVICEWIDE ACTIVITIES
 22200 ADMINISTRATION                                             6,209        6,209        6,209        6,209
 22250 CIVILIAN MANPOWER AND PERSONNEL MANAGEMENT                 2,012        2,012        2,012        2,012
 22300 MILITARY MANPOWER AND PERSONNEL MANAGEMENT                32,102       32,102       32,102       32,102
 22400 SERVICEWIDE COMMUNICATIONS                                33,155       33,155       33,155       33,155
 22450 BASE SUPPORT                                              26,692       26,692       26,692       26,692
 22500 MAINTENANCE OF REAL PROPERTY                               5,051        5,051        5,051        5,051
 22550 COMBAT/WEAPONS SYSTEMS                                     2,723        2,723        2,723        2,723
 22600 GENERAL DEFENSE INTELLIGENCE PROGRAM                         511          511          511          511
 22605 LOGISTICS OPERATIONS AND TECHNICAL SUPPORT
 22610 AIR SYSTEMS SUPPORT                                        2,705        2,705        2,705        2,705
                                                           -----------------------------------------------------
 22750       TOTAL, BUDGET ACTIVITY 4                           111,160      111,160      111,160      111,160
                                                           =====================================================
 22760 NSIPS                                                ...........       43,500  ...........       43,500

[[Page H7681]]

 
 22765 CONTINGENCY OPERATIONS TRANSFER--SWA                 ...........         -500  ...........         -500
 22770 MAINTENANCE OF REAL PROPERTY                         ...........       37,000  ...........       20,000
                                                           -----------------------------------------------------
 23150       TOTAL, OPERATION AND MAINTENANCE, NAVY             834,711      924,711      834,211      921,711
              RESERVE
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  21000 Mission and Other Flight Operations/Flying Hours.........17,000
  21200 Aircraft Depot Maintenance................................7,000
Other Adjustments:
  22760 NSIPS....................................................43,500
  22765 Contingency Operations Transfer--SWA.......................-500
  22770 Maintenance of Real Property.............................20,000
                                                             __________
                                                             
    Total adjustments...........................................+87,000


                 military personnel information systems

       The conferees have agreed to provide $69,000,000 only for 
     Military Personnel Information Systems and support the 
     direction in House Report 105-206 on management control and 
     use of these programs and funds by the Commander, Naval 
     Reserve Forces. Of the funds identified in the House report, 
     only $11,500,000 is specifically for the Navy Standard 
     Integrated Personnel System (NSIPS) and $5,000,000 is for the 
     Joint Requirements and Integration Office. These funds are in 
     addition to those already budgeted for these programs. The 
     remaining funds are for all the related activities described 
     in the House report, such as continuing the Navy central 
     design activity consolidation and providing initial 
     outfitting equipment and infrastructure support for 
     information system facilities. The conferees direct the Navy 
     and DoD to ensure that no other military personnel 
     information system initiatives duplicate NSIPS or the DoD 
     objective personnel system, now known as the Defense 
     Integrated Military Human Resources System (DIMHRS). The 
     conferees also direct DoD and the services to identify and 
     allocate acquisition certified personnel for the DIMHRS Joint 
     Program Management Office no later than November 1, 1997 and 
     to fully fund and budget for NSIPS and DIMHRS.

            Operation and Maintenance, Marine Corps Reserve

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
 23300 OPERATION AND MAINTENANCE, MARINE CORPS
        RESERVE
 23350 BUDGET ACTIVITY 1: OPERATING FORCES
 23400 MISSION FORCES
 23450 TRAINING                                         14,559          18,459          14,559          17,559
 23500 OPERATING FORCES                                 30,174          35,174          30,174          33,174
 23550 BASE SUPPORT                                     16,309          16,309          16,309          16,309
 23600 MAINTENANCE OF REAL PROPERTY                      6,898           6,898           6,898           6,898
 23650 DEPOT MAINTENANCE                                 2,555           2,555           2,555           2,555
      ----------------------------------------------------------------------------------------------------------
 23700       TOTAL, BUDGET ACTIVITY 1                   70,495          79,395          70,495          76,495
      ==========================================================================================================
 23750 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
        ACTIVITIES
 23800 ADMINISTRATION AND SERVICEWIDE
        ACTIVITIES
 23850 RECRUITING AND ADVERTISING                        7,726           7,726           7,726           7,726
 23900 SPECIAL SUPPORT                                  11,199          11,199          11,199          11,199
 23950 SERVICEWIDE TRANSPORTATION                        5,161           5,161           5,161           5,161
 24000 ADMINISTRATION                                    7,039           7,039           7,039           7,039
 24050 BASE SUPPORT                                      8,746           8,746           8,746           8,746
      ----------------------------------------------------------------------------------------------------------
 24200       TOTAL, BUDGET ACTIVITY 4                   39,871          39,871          39,871          39,871
      ==========================================================================================================
 24600       TOTAL, O&M, MARINE CORPS RESERVE          110,366         119,266         110,366         116,366
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  23450  Training/M1A1 Tank Training..............................3,000
  23500  Operating Forces/Initial Issue...........................3,000
                                                             __________
                                                             
    Total adjustments............................................+6,000

              Operation and Maintenance, Air Force Reserve

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                             Budget         House        Senate      Conference
----------------------------------------------------------------------------------------------------------------
24750  OPERATION AND MAINTENANCE, AIR FORCE RESERVE
24800  BUDGET ACTIVITY 1: OPERATING FORCES
24850  AIR OPERATIONS
24900  AIRCRAFT OPERATIONS..............................     1,227,609     1,227,609     1,234,389     1,234,389
24950  MISSION SUPPORT OPERATIONS.......................        39,482        39,482        39,482        39,482
25000  BASE SUPPORT.....................................       216,573       216,573       216,573       216,573
25050  MAINTENANCE OF REAL PROPERTY.....................        60,314        70,314        60,314        60,314
                                                         -------------------------------------------------------
25150        TOTAL, BUDGET ACTIVITY 1...................     1,543,978     1,543,978     1,550,758     1,550,758
                                                         =======================================================
25200  BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES
25250  ADMINISTRATION AND SERVICEWIDE ACTIVITIES
25300  ADMINISTRATION...................................        46,363        46,363        46,363        46,363
25350  MILITARY MANPOWER AND PERSONNEL MANAGEMENT.......        19,262        19,262        19,262        19,262
25400  RECRUITING AND ADVERTISING.......................         7,966         7,966         7,966         7,966
25450  OTHER PERSONNEL SUPPORT..........................         6,310         6,310         6,310         6,310
25500  AUDIOVISUAL......................................           541           541           541           541
25510  WC-130 WEATHER RECONN............................  ............           830  ............           830
                                                         -------------------------------------------------------
25550        TOTAL, BUDGET ACTIVITY 4...................        80,442        81,272        80,442        81,272
                                                         =======================================================
25950        TOTAL, O&M, AIR FORCE RESERVE..............     1,624,420     1,635,250     1,631,200     1,632,030
----------------------------------------------------------------------------------------------------------------


[[Page H7682]]

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  24900 Aircraft Operations/C-130 Force Structure.................6,780
Budget Activity 4: Administration and Servicewide Activities:
  25510 WC-130 Weather Reconnasissance..............................830
                                                             __________
                                                             
    Total adjustments............................................+7,610

             Operation and Maintenance, Army National Guard

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                             Budget         House        Senate      Conference
----------------------------------------------------------------------------------------------------------------
 26100 OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD
 26150 BUDGET ACTIVITY 1: OPERATING FORCES
 26200 MISSION OPERATIONS
 26250 TRAINING OPERATIONS                                 1,704,250     1,728,950     1,749,250     1,728,950
 26350 MEDICAL SUPPORT                                        26,701        26,701        26,701        26,701
 26400 DEPOT MAINTENANCE                                      53,824        58,824        63,824        61,324
 26450 BASE SUPPORT                                          250,700       250,700       250,700       250,700
 26500 MAINTENANCE OF REAL PROPERTY                           50,618        60,618       150,618       135,618
                                                       ---------------------------------------------------------
 26550       TOTAL, BUDGET ACTIVITY 1                      2,086,093     2,125,793     2,241,093     2,203,293
                                                       =========================================================
 26600 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
        ACTIVITIES
 26650 ADMINISTRATION AND SERVICEWIDE ACTIVITIES
 26700 INFORMATION MANAGEMENT                                 32,376        32,376        53,376        53,376
 26800 PERSONNEL ADMINISTRATION                               62,082        62,082        62,082        62,082
 26850 STAFF MANAGEMENT                                       45,190        45,190        45,190        45,190
 26900 RECRUITING AND ADVERTISING                             33,191        33,191        33,191        33,191
 26910 CHEM/BIO MISSION STUDIES                         ............        10,000  ............        10,000
 26912 STOCK FUND SECONDARY ITEMS                       ............  ............        15,000         7,500
 26915 SOFTWARE ACQUISITION AND SECURITY TRAINING       ............         5,000  ............         5,000
                                                       ---------------------------------------------------------
 26950       TOTAL, BUDGET ACTIVITY 4                        172,839       187,839       208,839       216,339
                                                       =========================================================
 27350       TOTAL, OPERATION AND MAINTENANCE, ARMY        2,258,932     2,313,632     2,449,932     2,419,632
              NAT. GUARD
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  26250  Training Operations/Ground Optempo......................20,000
  26250  Training Operations/Angel Gate Academy...................4,200
  26250  Training Operations/Laser Leveling.........................500
  26400  Depot Maintenance........................................7,500
  26500  Maintenance of Real Property............................85,000
Budget Activity 4: Administration and Servicewide Activities:
  26700  Information Management..................................21,000
  26910  Chem/Bio Mission Studies................................10,000
  26912  Stock Fund Secondary Items...............................7,500
  26915  Software Acquisition and Security Training...............5,000
                                                             __________
                                                             
    Total adjustments..........................................+160,700


                      maintenance of real property

       The conferees recommend $85,000,000 above the budget 
     request for maintenance of real property for Army National 
     Guard facilities. The conferees direct that these funds be 
     used to reduce the growing backlog within the 54 Army 
     National Guard organizations, not for studies or other 
     administrative functions.


   chemical/biological defense and counter terrorism mission planning

       The conferees recommend $10,000,000 only to support efforts 
     to develop the National Guard's domestic chemical/biological 
     counter terrorism mission. The conferees reiterate the 
     directive in the House report and strongly endorse efforts to 
     accelerate implementation of this important mission. The 
     conferees expect the National Guard to develop a mission plan 
     that is fully coordinated with all related plans and programs 
     of the Office of the Secretary of Defense, the active forces, 
     and all other Reserve Components so as to leverage existing 
     capabilities to the maximum extent possible. A mechanism for 
     review and input from all relevant organizations must be an 
     integral part of this planning effort. The conferees also 
     intend that a portion of these funds may be used to conduct 
     joint, interagency training for federal, state, and local 
     responders with respect to counter terrorism operations and 
     the defense against weapons of mass destruction and for 
     testing and evaluating equipment related to the support of 
     the chemical/biological defense mission.


                       home station mobilization

       The conferees support the expansion of Home Station 
     Mobilization during fiscal year 1998, as a way to reduce 
     mobilization costs and increase the availability of the 
     Reserve Components. The conferees direct the Department of 
     the Army to report to the congressional defense committees on 
     how this program can be expanded in both the Army National 
     Guard and the Army Reserve not later than January 15, 1998. 
     The report should also provide a timetable to implement the 
     results of this review during fiscal year 1998. It should 
     address costs (both personnel and resources) associated with 
     deploying from home station versus a mobilization station and 
     recommendations regarding mission transfers to the Reserve 
     Components.

             Operation and Maintenance, Air National Guard

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
 27500 OPERATION AND MAINTENANCE, AIR NATIONAL GUARD
 27550 BUDGET ACTIVITY 1: OPERATING FORCES
 27600 AIR OPERATIONS
 27650 AIRCRAFT OPERATIONS                                    2,243,510    2,245,010    2,262,573    2,262,573
 22770 MISSION SUPPORT OPERATIONS                               334,314      334,314      334,314      334,314
 27750 BASE SUPPORT                                             296,196      296,196      296,196      296,196
 27800 MAINTENANCE OF REAL PROPERTY                              77,879       77,879       77,879       77,879
 27850 DEPOT MAINTENANCE                                         30,048       30,048       30,048       30,048
                                                           -----------------------------------------------------
 27900       TOTAL, BUDGET ACTIVITY 1                         2,981,947    2,986,447    3,001,010    3,004,010
                                                           =====================================================
 27950 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES
 28000 SERVICEWIDE ACTIVITIES
 28050 ADMINISTRATION                                             3,073        3,073        3,073        3,073
 28100 RECRUITING AND ADVERTISING                                 6,199        6,199        6,199        6,199
                                                           -----------------------------------------------------
 28150       TOTAL, BUDGET ACTIVITY 4                             9,272        9,272        9,272        9,272
                                                           =====================================================
 28550       TOTAL, O&M, AIR NATIONAL GUARD                   2,991,219    2,995,719    3,010,282    3,013,282
----------------------------------------------------------------------------------------------------------------


[[Page H7683]]

                    adjustment to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  27650  Aircraft Operations/159th Fighter Group..................1,500
  527650  Aircraft Operations/C-130 Force Structure              13,063
  27650  Aircraft Operations/C-130 Operations.....................4,500
  27850  Depot Maintenance........................................3,000
                                                             __________
                                                             
      Total adjustments.........................................+22,063

             Overseas Contingency Operations Transfer Fund

       The conferees agree to provide $1,884,000,000 for the 
     Overseas Contingency Operations Transfer Fund. The conferees 
     agree to realign funding for operations in Southwest Asia 
     from the services' Operation and maintenance accounts into 
     the Overseas Contingency Operations Transfer Fund. 
     Accordingly, the conferees agree to transfer $416,500,000 
     into this account.

          United States Court of Appeals for the Armed Forces

       The conference agreement provides $6,952,000 for the United 
     States Court of Appeals of the Armed Forces as requested in 
     the budget.

                    Environmental Restoration, Army

       The conferees agree to provide $375,337,000 for 
     Environmental Restoration, Army.

                    Environmental Restoration, Navy

       The conferees agree to provide $275,500,000 for 
     Environmental Restoration, Navy.

                  Environmental Restoration, Air Force

       The conferees agree to provide $376,900,000 for 
     Environmental Restoration, Air Force.

                Environmental Restoration, Defense-Wide

       The conferees agree to provide $26,900,000 for 
     Environmental Restoration, Defense-Wide.

         Environmental Restoration, Formerly Used Defense Sites

       The conferees agree to provide $242,300,000 for 
     Environmental Restoration, Formerly Used Defense Sites.


                                newmark

       The conferees understand that both the Environmental 
     Protection Agency (EPA) and the City of San Bernardino 
     believe that the Newmark and Muscoy plume contamination in 
     San Bernardino, CA is a direct result of industrial waste 
     from a World War II depot and maintenance facility (Camp 
     Ono). The report accompanying the fiscal year 1997 DoD 
     Appropriations Act highlighted the urgency of this problem 
     and requested prompt action by the Department of Defense. 
     Because the Department has not adequately responded to last 
     year's report language concerning this important issue, the 
     conferees direct the DoD, within 90 days of enactment of this 
     Act, to provide a report to the congressional defense 
     committees which fully explains the Department's current and 
     future plans relating to its role in the cleanup of the 
     Newmark/Muscoy site.

             Overseas Humanitarian, Disaster, and Civic Aid

       The conferees agree to provide $47,130,000 for Overseas 
     Humanitarian, Disaster and Civic Aid. The conferees direct 
     that none of the reduction should be taken against the 
     Department's demining efforts. In addition, the conferees 
     expect the Department of Defense to coordinate its efforts on 
     the rehabilitation of land mine victims with other U.S. 
     Government agencies performing similar activities, including 
     any center devoted to these efforts within the Department of 
     Education.

                  Former Soviet Union Threat Reduction

       The conferees agree to provide $382,200,000, for the Former 
     Soviet Union Threat Reduction program.

                 Quality of Life Enhancements, Defense

       The conferees agree to provide a total of $360,000,000 for 
     Quality of Life Enhancements, Defense. Given the substantial 
     backlog of real property maintenance in the areas of 
     barracks, dormitories and related facilities, the conferees 
     direct that these funds be applied to workload for such 
     projects. The conferees further direct the Secretaries of 
     each of the Military Services to provide the congressional 
     defense committees with a report on each additional project 
     to be funded from funds available in this account prior to 
     solicitation for these projects. This report shall include 
     the location, estimated cost and projected commencement and 
     completion dates for each project.

                         TITLE III--PROCUREMENT

  The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
                     SUMMARY
ARMY:
    AIRCRAFT....................................       1,029,459       1,541,217       1,356,959       1,346,317
        TRANSFER................................       (133,000)  ..............  ..............  ..............
    MISSILES....................................       1,178,151         771,942       1,173,081         762,409
    WEAPONS, TRACKED COMBAT VEHICLES............       1,065,707       1,332,907       1,156,506       1,298,707
    AMMUNITION..................................         890,902       1,062,802       1,042,602       1,037,202
    OTHER.......................................       2,455,030       2,502,886       2,783,735       2,679,130
                                                 ---------------------------------------------------------------
      TOTAL, ARMY...............................       6,619,249       7,211,754       7,512,883       7,123,765
                                                 ===============================================================
NAVY:
    AIRCRAFT....................................       5,951,965       6,753,465       6,312,937       6,535,444
        TRANSFER................................       (134,000)  ..............  ..............  ..............
    WEAPONS.....................................       1,136,293       1,175,393       1,138,393       1,102,193
    AMMUNITION..................................         336,797         423,797         344,797         397,547
    SHIPS.......................................       7,438,158       7,628,158       8,510,458       8,235,591
    OTHER.......................................       2,825,500       3,084,485       2,832,800       3,144,205
    MARINE CORPS................................         374,306         491,198         440,106         482,398
                                                 ---------------------------------------------------------------
      TOTAL, NAVY...............................      18,063,019      19,556,496      19,579,491      19,897,378
                                                 ===============================================================
AIR FORCE:
    AIRCRAFT....................................       5,684,847       6,386,479       6,390,847       6,480,983
        TRANSFER................................       (133,000)  ..............  ..............  ..............
    MISSILES....................................       2,557,741       2,320,741       2,411,741       2,394,202
    AMMUNITION..................................         403,984         414,884         400,984         398,534
    OTHER.......................................       6,561,253       6,588,939       6,653,053       6,592,909
                                                 ---------------------------------------------------------------
      TOTAL, AIR FORCE..........................      15,207,825      15,711,043      15,856,625      15,866,628
                                                 ===============================================================
DEFENSE-WIDE....................................       1,695,085       2,186,669       1,753,285       2,106,444
NATIONAL GUARD AND RESERVE EQUIPMENT............  ..............         850,000         653,000         653,000
                                                 ===============================================================
      TOTAL PROCUREMENT.........................      41,585,178      45,515.962      45,355,284      45,647,215
        TRANSFER................................       (400,000)  ..............  ..............  ..............
----------------------------------------------------------------------------------------------------------------

                       Aircraft Procurement, Army

  The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, ARMY:
    C-XX (MEDIUM RANGE) AIRCRAFT...............  ...........  ...........       23,000  ...........       23,000
    GUARDRAIL COMMON SENSOR (TIARA)............        3,388       13,046        3,388  ...........       13,046
    SHORT RANGE UAV............................  ...........       20,000  ...........  ...........  ...........
    UH-60 BLACKHAWK (MYP)......................      183,231      309,231      310,531           28      272,231
    UH-1 MODS..................................        4,679        4,679        2,679  ...........        2,679
    UH-60 MODS.................................       14,353       14,353       23,853  ...........       26,853
    KIOWA WARRIOR..............................       38,822      213,822       53,822  ...........       53,822
    EH-60 QUICKFIX MODS........................       38,140       44,640       38,140  ...........       44,640
    ASE MODS...................................        4,578       19,078       12,678  ...........       19,078

[[Page H7684]]

 
    AIRCRAFT SURVIVABILITY EQUIPMENT...........          905       15,705          905  ...........        8,305
    TRAINING DEVICES...........................  ...........        9,300       18,600  ...........       13,300
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........       -8,000  ...........       -8,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
U-H60 Blackhawk (MYP)...........................         183,231         309,231         310,531         272,231
    Aircraft....................................  ..............        +120,000        +127,300         +83,000
    Q-kits for Active Army......................  ..............          +6,000  ..............          +6,000
    (Note: Additional funds are to procure at
     least 10 additional aircraft. Procurement
     of the 28 new aircraft are to result in the
     fielding of 28 aircraft from the Army to
     the Army National Guard.)
UH-60 MODS......................................          14,353          14,353          23,853          26,853
    Senate add..................................  ..............  ..............          +9,500          +9,500
    UH-60L Blackhawk Fire Hawk kits.............  ..............  ..............  ..............          +3,000
    (Note: UH-60L Fire Hawk kits are to be
     transferred to the Army National Guard.)
Kiowa Warrior...................................          38,822         213,822          53,822          53,822
    Aircraft....................................  ..............        +157,177  ..............               0
    Safety modifications........................  ..............         +23,300         +15,000         +15,000
ASE Mods........................................           4,578          19,078          12,678          19,078
    Laser detection sets........................  ..............          +7,000  ..............          +7,000
    Advanced threat infrared countermeasures....  ..............          +7,500          +8,100          +7,500
Aircraft Survivability Equipment................             905          15,705             905           8,305
    ASET IV.....................................  ..............         +14,800  ..............          +7,400
Common Ground Equipment.........................              +0         +18,600          +9,300         +13,300
    Geographic databases........................  ..............         +18,600          +9,300         +13,300
----------------------------------------------------------------------------------------------------------------

                       Missile Procurement, Army

  The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
MISSILE PROCUREMENT, ARMY:
    PATRIOT SYSTEM SUMMARY (MYP)...............      349,109  ...........      349,109  ...........  ...........
    AVENGER SYSTEM SUMMARY.....................  ...........  ...........       13,000  ...........        7,400
    HELLFIRE SYS SUMMARY.......................      279,687      228,287      268,987        1,200      248,987
    MLRS ROCKET................................        2,863       14,863       19,863  ...........       19,863
    MLRS LAUNCHER SYSTEMS......................      102,649      105,649      127,749           35      125,749
    ARMY TACTICAL MSL SYS (ATACMS) (MYP).......       97,814       97,814       87,044          153       97,814
    BAT........................................       85,208       45,208       45,208           40  ...........
    EFOG-M.....................................  ...........  ...........  ...........  ...........       13,300
    PATRIOT MODS...............................       20,825       30,825       20,825  ...........        8,000
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........       -8,000  ...........       -8,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                    Budget       House      Senate    Conference
----------------------------------------------------------------------------------------------------------------
Patriot System Summary..........................................     349,109           0     349,109           0
    Transfer to Procurement, Defense Wide.......................  ..........    -349,109  ..........    -349,109
Avenger System Summary..........................................           0           0      13,000       7,400
    Slew-to-cue.................................................  ..........  ..........      13,000       7,400
Hellfire System Summary.........................................     279,687     228,287     268,987     248,987
    Unused prior year ECO funding...............................  ..........      -5,400  ..........           0
    Reduce Longbow Hellfire production ramp-up..................  ..........     -38,300  ..........     -20,000
    Reduce Longbow ramp-up tooling..............................  ..........      -7,700  ..........           0
    Unobligated prior year funds................................  ..........  ..........     -10,700     -10,700
MLRS Rocket.....................................................       2,863      14,863      19,863      19,863
    MLRS-ER.....................................................  ..........      12,000      17,000      17,000
MLRS Launcher System............................................     102,649     105,649     127,749     125,749
    Transfer to MLRS-ER rockets.................................  ..........     -12,000  ..........     -12,000
    Vehicular Intercommunication System (VIS) upgrades..........  ..........      15,000  ..........      10,000
    Launcher upgrades...........................................  ..........  ..........      25,100      25,100
Army Tactical Missile System (ATACMS)...........................      97,814      97,814      87,044      97,814
    Contract savings............................................  ..........  ..........     -10,770           0
EFOG-M..........................................................  ..........  ..........  ..........      13,300
    Transfer from research and development......................  ..........  ..........  ..........      13,300
Patriot Modifications...........................................      20,825      30,825      20,825      30,825
    GEM +/-.....................................................  ..........      10,000  ..........       8,000
----------------------------------------------------------------------------------------------------------------

        Procurement of Weapons and Tracked Combat Vehicles, Army

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF W&TCV, ARMY.....................
BRADLEY BASE SUSTAINMENT.......................      125,591      240,591      187,991  ...........      220,591
FIELD ARTILLERY AMMUNITION SUPPORT VEH.........  ...........       40,000  ...........           36       40,000
CARRIER, MOD...................................       20,244       28,644       40,244  ...........       40,244
HOWITZER, MED SP FT 155MM M109A6 (MOD).........       18,706       74,706       18,706           36       74,706
IMPROVED RECOVERY VEHICLE (M88 MOD)............       28,601       56,401       14,000           12       32,601
ARMOR MACHINE GUN, 7.62MM M240 SERIES..........  ...........       20,000  ...........  ...........       15,000
GRENADE LAUNCHER, AUTO, 40MM, MK19-3...........  ...........  ...........       13,000  ...........        8,000
MEDIUM MACHINE GUNS (MODS).....................  ...........  ...........       15,000  ...........  ...........
ECONOMIC ASSUMPTIONS...........................  ...........  ...........       -5,000  ...........       -5,000
----------------------------------------------------------------------------------------------------------------


[[Page H7685]]


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Bradley Base Sustainment....................................      125,591      240,591      187,991      220,591
    A0 to ODS variant for the National Guard................  ...........     +115,000  ...........      +95,000
    Bradley base upgrades...................................  ...........  ...........      +62,400           +0
Carrier, mod................................................       20,244       28,644       40,244       40,244
    M113 night vision driver viewers........................  ...........       +8,400  ...........       +5,000
    Carrier modifications...................................  ...........  ...........      +20,000      +15,000
    (Note: $15,000,000 is only for the competitive            ...........  ...........  ...........  ...........
     procurement of reactive armor).........................
Improved Recovery Vehicle...................................       28,601       56,401       14,000       32,601
    IRV production..........................................  ...........      +27,800  ...........            0
    Program slip............................................  ...........  ...........      -14,601            0
    Engineering change proposals............................  ...........  ...........  ...........       +4,000
    (Note: Senate provided additional funds for ECP's in
     RDT&E, A)..............................................
----------------------------------------------------------------------------------------------------------------

                    Procurement of Ammunition, Army

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, ARMY:
    CTG, 5.56MM, ALL TYPES.....................       63,588       65,988       63,588  ...........       64,988
    CTG, 7.62MM, ALL TYPES.....................        1,136        7,136        1,136  ...........        4,136
    CTG, .50 CAL. ALL TYPES....................       19,977       20,177       19,977  ...........       20,177
    CTG, 40MM, ALL TYPES.......................       26,203       26,203       33,203  ...........       31,203
    CTG MORTAR 120MM FULL RANGE PRACTICE M931..       24,432       34,432       24,432           59       32,432
    CTG MORTAR 120MM HE M934 W/MO FUZE.........       29,908       38,908       44,908           32       38,908
    CTG MORTAR 120MM ILLUM XM930 W/MTSQ FZ.....  ...........        3,000  ...........  ...........        3,000
    CTG 120MM HEAT-MP-T M830A1.................  ...........       10,000  ...........  ...........        8,000
    CTG TANK 120MM TPCSDS-T M865...............      111,653      124,453      124,353          184      119,353
    CTG ARTY 105MM DPICM XM915.................  ...........       20,000       10,000  ...........       10,000
    PROJ ARTY 155MM HE M795....................  ...........       55,000  ...........  ...........       36,000
    FUZE MULTI OPTION..........................  ...........       20,000       20,000  ...........       15,000
    MINE AT/AP M87 (VOLCANO)...................  ...........  ...........       20,000  ...........       17,000
    BUNKER DEFEATING MUNITION (BDM)............  ...........        8,000  ...........  ...........        8,000
    ROCKET, HYDRA 70, ALL TYPES................       12,067       48,267       48,267  ...........       37,267
    SIMULATORS, ALL TYPES......................        4,573        5,073        4,573  ...........        4,573
    PROVISION OF INDUSTRIAL FACILITIES.........       45,857       24,857       45,857  ...........       24,857
    CONVENTIONAL AMMO DEMILITARIZATION.........      106,118       96,118       93,118  ...........       93,118
    ARMS INITIATIVE............................        5,000        5,000       45,000  ...........       25,000
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........       -6,000  ...........       -6,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                               Budget        House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Fuze, multi option........................................            0       20,000        20,000       15,000
    Electronic timed M767 fuze............................  ...........      +20,000       +20,000      +15,000
Provision of Industrial Facilities........................       45,857       24,857        45,857       24,857
    Excess funds..........................................  ...........      -21,000   ...........      -21,000
    Large caliber deep drawn cartridge....................  ...........       (3,000)  ...........       (3,000)
----------------------------------------------------------------------------------------------------------------

                     Kinetic Energy Tank Ammunition

       The conferees are concerned that there may be a break in 
     production between the current 120mm kinetic energy round, 
     the M829A2, and the follow-on round, the M829E3. The 
     conferees direct the Army to maintain M829A2 future annual 
     production at minimum sustaining levels and accelerate the 
     development of the M829E3. The conferees direct the Army 
     submit to the congressional defense committees their plan for 
     funding M829A2 production and maintaining the capability to 
     produce kinetic energy rounds no later than December 15, 
     1997.

                        Other Procurement, Army

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget       House        Senate       Qty      Conference
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, ARMY
    TACTICAL TRAILERS/DOLLY SETS.................        8,053        8,053       18,053  .........       13,053
    SEMITRAILER FB BB/CONT TRANS 22\1/2\ T.......        9,361  ...........        9,361        350        2,000
    SEMITRAILER, TANK, 5000G.....................        7,581        3,000        7,581         74        3,000
    SEMITRAILER, TANK, 7500G, BULKHAUL...........       10,408        2,000       10,408        231        3,000
    HI MOB MULTI-PURP WHLD VEH (HMMWV) (MYP).....       66,233      104,933      141,233        774      131,233
    FAMILY OF MEDIUM TACTICAL VEH (MYP)..........      209,446      209,446      253,446      1,506      209,446
    FAMILY OF HEAVY TACTICAL VEHICLES (MYP)......        9,071       87,071      137,071  .........      114,071
    ARMORED SECURITY VEHICLES (COMBAT SPT) TACTIC        9,470       10,970        9,470         25       10,970
    DEFENSE SATELLITE COMMUNICATIONS SYSTEM             87,643       83,143       87,643  .........       85,643
     (SPAC)......................................
    SAT TERM, EMUT (SPACE).......................        7,264        6,064        7,264        207        6,064
    NAVSTAR GLOBAL POSITIONING SYSTEM (SPACE)....        6,796        5,596        6,796         17        5,596
    SCAMP (SPACE)................................        4,305       10,405       16,605  .........       16,605
    GLOBAL BRDCST SVC--GBS.......................        4,967  ...........        4,967  .........        4,967
    ARMY DATA DISTRIBUTION SYSTEM (ADDS).........       57,165       57,065       94,465  .........       67,465
    SINCGARS FAMILY..............................      290,164      302,164      290,164  .........      296,164
    ACUS MOD PROGRAM (WIN-T/T)...................       82,391       82,391      115,391  .........      105,391
    COMBAT SURVIVOR EVADER LOCATOR (CSEL)........        5,677  ...........        5,677  .........        5,677
    INFORMATION SYSTEM SECURITY PROGRAM--ISSP....       10,208       10,208       10,208  .........       13,708
    INFORMATION SYSTEMS..........................       20,498       20,498       51,498  .........       51,498
    GENERAL DEFENSE INTELL PROG (GDIP)...........       18,856       19,756       18,856  .........       19,356
    ITEMS LESS THAN $2.0M (INTEL SPT)--TIARA.....  ...........        2,800  ...........  .........        2,800
    ALL SOURCE ANALYSIS SYS (ASAS) (TIARA).......        7,772       26,959        7,772  .........       23,459
    JTT/CIBS-M (TIARA)...........................       11,438       11,438        6,438         56       11,438
    SHORTSTOP....................................  ...........        6,000  ...........  .........        6,000
    SENTINEL.....................................       41,014       51,014       61,214         12       61,214
    NIGHT VISION DEVICES.........................       85,312       99,712      121,312  .........      111,712
    LOGTECH......................................        3,358        3,358        3,358  .........       13,358
    STANDARD INTEGRATED CMD POST SYSTEM..........       26,551       36,551       26,551  .........       33,551
    AUTOMATED DATA PROCESSING EQUIP..............      125,099      151,899      125,099  .........      132,099
    RESERVE COMPONENT AUTOMATION SYS (RCAS)......      114,323      114,323       84,323  .........      114,323
    CALIBRATION SETS EQUIPMENT...................  ...........  ...........       25,000  .........       15,000
    INTEGRATED FAMILY OF TEST EQUIP (IFTE).......  ...........       29,000  ...........  .........       20,000
    COMBAT SUPPORT MEDICAL.......................       11,808       11,808       18,808  .........       18,808
    ITEMS LESS THAN $2.0 MILLION (MAINT EQ)......        1,167        5,167        1,167  .........        4,167
    CRANE, WHEEL MTD, 25T, \3/4\ CU YD, RT.......        6,055        6,055        6,055         22       14,055
    RAILWAY CAR, FLAT, 100 TON...................       17,755  ...........       17,755  .........  ...........

[[Page H7686]]

 
    TRAINING DEVICES, NONSYSTEM..................       49,668       53,668       59,668  .........       53,668
    SIMNET/CLOSE COMBAT TACTICAL TRAINING........       92,968  ...........       71,468  .........       54,600
    BASE LEVEL COM'L EQUIPMENT...................        4,283        4,283       17,283  .........        4,283
    DEPOT MAINTENANCE OF OTHER END ITEMS.........       24,819  ...........       24,819  .........  ...........
    GUN LAYING POSITIONING SYSTEM................  ...........        6,000  ...........  .........        6,000
    RADIO FREQUENCY TECHNOLOGY...................  ...........        2,900  ...........  .........        1,200
    LIGHTWEIGHT LASER DESIGNATOR/RANGE FINDER....  ...........        2,800  ...........  .........  ...........
    COMBAT SYNTHETIC TRAINING ASSESSMENT RANGE...  ...........        5,400  ...........  .........  ...........
    ARMY AIRBORNE COMMAND & CONTROL SYSTEM.......  ...........       11,100  ...........  .........  ...........
    AVENGER SLEW TO CLUE.........................  ...........        7,400  ...........  .........  ...........
    PALLETIZED LOADING SYSTEM ENHANCED...........  ...........        3,000  ...........  .........        3,000
    ECONOMIC ASSUMPTIONS.........................  ...........  ...........      -18,000  .........      -18,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Army Data Distribution System...............................       57,165       57,065       94,465       67,465
    EPLRS...................................................  ...........      +20,000      +37,400      +30,400
    JTIDS--transfer to BMDO.................................  ...........      -20,100  ...........      -20,100
Information Systems Security System.........................       10,208       10,208       10,208       15,780
    KY-100 device...........................................  ...........            0            0       +3,500
    (Note: Earmarked in Senate bill for $5,500,000)
All Source Analysis System..................................        7,772       26,959        7,772       23,459
    ASAS RWS................................................  ...........      +13,500  ...........      +10,000
    CHATS...................................................  ...........       +5,687  ...........       +5,687
Night Vision Devices........................................       85,312       99,712      131,312      111,712
    AN/PAS-13 thermal weapon sights.........................  ...........      +11,400      +10,000       +6,900
    Lightweight video system................................  ...........       +3,000  ...........       +2,000
    Infrared Aiming Lights (AN/PEQ-2).......................  ...........  ...........       +8,000       +5,500
    AN/PVS-70 systems.......................................  ...........  ...........      +17,000      +11,000
    Bore lights.............................................  ...........  ...........       +1,000       +1,000
    MELIOS..................................................  ...........  ...........  ...........      (5,000)
    (Note: Funds are only to procure MELIOS for the Army
     National Guard)
LOGTECH.....................................................        3,358        3,358        3,358       13,358
    Army Logistic Automation................................  ...........  ...........  ...........      +10,000
    (Note: Funds transferred from Automated Data Processing
     Equipment)
Automated Data Processing Equipment.........................      125,099      151,899      125,099      132,099
    SBIS....................................................  ...........      +13,000  ...........       +7,000
    (Note: Funds transferred to O&M, Army)
    Army Logistics Automation...............................  ...........      +13,800  ...........            0
    (Note: Funds transferred to LOGTECH)
Crane, Wheel Mtd, 25T,\3/4\ CU YD, RT.......................        6,055        6,055        6,055       14,055
    All terrain cranes......................................  ...........  ...........  ...........       +8,000
    (Note: Funds are only to procure all all-terrain cranes
     for the Army Reserve)
Radio Frequency Technology..................................            0        2,900            0        1,200
    (Note: $1,700,000 transferred to Research, Development,
     Test and Evaluation, Army)
Lightweight designator/range finder.........................            0        2,800            0            0
    (Note: Funds transferred to Research, Development, Test
     and Evaluation, Army)
Combat synthetic training assessment range..................            0        5,400            0            0
    (Note: Funds transferred to Research, Development, Test
     and Evaluation, Army)
Army Airborne Command & Control System......................            0       11,100            0            0
    (Note: Funds transferred to Research, Development, Test
     and Evaluation, Army)
Avenger Slew to Cue.........................................            0        7,400            0            0
    (Note: Funds transferred to Missile Procurement, Army)
----------------------------------------------------------------------------------------------------------------

                   family of medium tactical vehicles

       The conferees strongly support the Army's Family of Medium 
     Tactical Vehicle (FMTV) acquisition strategy. The conferees 
     endorse the Army's plan to continue procuring FMTV's from the 
     current producer while qualifying a second source in fiscal 
     year 1998 and 1999. The conferees agree to provide the 
     authority in Section 8008 to enter into a multiyear contract 
     for the FMTV.


         commander's tactical terminal/joint tactical terminal

       The conferees agree that the amounts appropriated in fiscal 
     year 1998 and prior year funds be used to re-award the Joint 
     Tactical Terminal (JTT) contract and to procure only urgently 
     needed Commander's Tactical Terminals (CTT) in fiscal year 
     1998 until the production under a new contract progresses 
     sufficiently to minimize the fielding gap between these two 
     terminals.


          direct support electrical systems test sets (dsests)

       The conferees encourage the Department of Defense to 
     include DSESTS in the automatic test equipment family.

                       Aircraft Procurement, Navy

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget       House        Senate       Qty      Conference
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, NAVY:
    AV-8B (V/STOL) HARRIER.......................      277,648      310,648      283,890         12      283,890
    AV-8B (V/STOL) HARRIER (AP-CY)...............       18,914       18,914       17,900  .........       17,900
    V-22 (MEDIUM LIFT)...........................      472,007      661,307      627,007          7      627,007
    V-22 (MEDIUM LIFT) (AP-CY)...................       69,659       69,659       62,124  .........       62,124
    E-2C (EARLY WARNING) HAWKEYE.................      236,474      304,474      236,474          4      304,474
    CH-60 HELICOPTER.............................  ...........  ...........  ...........          2       30,400
    CH-60 HELICOPTER (AP-CY).....................       31,837       31,837  ...........  .........  ...........
    T-45TS (TRAINER) GOSHAWK.....................      243,960      243,960      291,899         15      289,383
    KS-130J......................................  ...........      179,700  ...........          2      120,000
    EA-6 SERIES..................................       86,783      169,783      126,783  .........      116,783
    F-14 SERIES..................................      290,500      290,500      275,200  .........      287,200
    F-18 SERIES..................................      156,213      156,213      140,713  .........      164,713
    H-53 SERIES..................................       35,704       35,704       45,704  .........       45,704
    H-1 SERIES...................................       18,489       16,389       18,489  .........       18,389
    P-3 SERIES...................................      164,907      293,907      226,307  .........      238,207
    E-2 SERIES...................................       49,073       50,673       85,210  .........       49,073
    CARGO/TRANSPORT A/C SERIES...................       29,911       29,911       20,911  .........       25,911
    SPECIAL PROJECT AIRCRAFT.....................       16,527       16,527       23,527  .........       23,527
    POWER PLANT CHANGES..........................       13,972       13,972       15,572  .........       15,572
    COMMON AVIONICS CHANGES......................      131,599      130,599      117,439  .........      130,399
    COMMON GROUND EQUIPMENT......................      287,114      274,114      287,114  .........      274,114
    ECONOMIC ASSUMPTIONS.........................  ...........  ...........      -44,000  .........      -44,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
T-45........................................................      243,960      243,960      291,899      289,383

[[Page H7687]]

 
    Additional aircraft.....................................  ...........  ...........      +96,600      +53,000
    Multiyear procurement savings...........................  ...........  ...........      -51,084            0
    Peculiar training equipment.............................  ...........  ...........      +10,000            0
    Engineering change orders...............................  ...........  ...........       -3,728       -3,728
    Engine contract award savings...........................  ...........  ...........       -3,849       -3,849
EA-6B Series................................................       86,783      169,783      126,783      116,783
    Center wing sections....................................  ...........      +50,000      +25,000      +25,000
    Late obligations........................................  ...........  ...........      -10,000      -10,000
    Engine turbine blade....................................  ...........      +18,000            0            0
    USQ-113 receiver........................................  ...........      +15,000            0      +15,000
    Support jamming upgrade.................................  ...........            0      +25,000            0
F-14 Series.................................................      290,500      290,500      275,200      287,200
    Critical systems mod....................................  ...........  ...........       -3,300       -3,300
    LANTIRN.................................................  ...........  ...........      -12,000            0
F-18 Series.................................................      156,213      156,213      140,713      164,713
    Late obligations........................................  ...........  ...........      -15,500      -15,500
    Mods for Naval Reserve..................................  ...........  ...........  ...........      +24,000
H-1 Series..................................................       18,489       16,389       18,489       18,389
    Transfer to R&D.........................................  ...........       -5,600  ...........       -5,600
    Internal rescue hoist...................................  ...........       +3,500  ...........       +3,500
    AN/AAQ-22...............................................  ...........  ...........  ...........       +2,000
P-3 Series..................................................      164,907      293,907      226,307      238,207
    SRP.....................................................  ...........      +35,100      +25,100      +25,000
    AIP.....................................................  ...........      +56,600      +17,300      +17,300
    SEI.....................................................  ...........      +18,500            0      +13,000
    LESPA...................................................  ...........       +6,000      +11,000       +8,000
    Replacement data storage system.........................  ...........      +12,800       +8,000      +10,000
Common Avionics Changes.....................................      131,599      130,599      117,439      130,399
    AAW-13..................................................  ...........       +9,000  ...........       +6,000
    Authorization reduction.................................  ...........      -10,000  ...........            0
    Late obligations........................................  ...........  ...........      -10,000      -10,000
    Ground proximity warning system.........................  ...........  ...........  ...........       +4,000
    Systems engineering growth..............................  ...........  ...........       -1,200       -1,200
----------------------------------------------------------------------------------------------------------------

                           CH-60 Helicopters

       The conferees agree to provide $30,400,000 only to procure 
     2 CH-60 helicopters for the Naval Reserve.


                         AV-8B Harrier Engines

       The conferees recognize the need to replace engines in AV-
     8B Harrier trainer aircraft, and would welcome a 
     reprogramming request from the Department of Defense should 
     it elect to address this requirement in fiscal year 1998.


                                  P-3

       The conferees are disturbed by the Navy's approach to 
     budgeting for the P-3 Sustained Readiness Program (SRP). The 
     conferees direct the Navy to budget for the purchase of no 
     less than 20 SRP kits and for the installation of 15 SRP kits 
     in fiscal year 1999, in order to obtain best value for the 
     Department of Defense in accordance with the Variation in 
     Quantity contract signed by the Navy.

                       Weapons Procurement, Navy

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                          Budget       House      Senate      Qty.    Conference
----------------------------------------------------------------------------------------------------------------
WEAPONS PROCURMENT, NAVY
TRIDENT II............................................     292,248     292,248     227,248         5     227,248
TRIDENT II (AP-CY)....................................      47,021      32,021      47,021        --      47,021
TOMAHAWK..............................................      51,820      51,820      71,820        65      51,820
ESSM..................................................      15,529       5,529      15,529        --      10,529
JSOC..................................................      58,665      68,665      58,665       113      63,665
STANDARD MISSILE......................................     196,492     181,092     196,492       127     181,092
PENGUIN...............................................          --          --      15,000        --       7,500
AERIAL TARGETS........................................      72,923      65,923      66,723        --      65,923
HELLFIRE..............................................          --      37,500          --        --      20,000
STANDARD MISSILES MODS................................      35,601      68,601      50,901        --      50,901
WEAPONS INDUSTRIAL FACILITIES.........................      34,923      25,932      34,932        --      30,432
CIWS MODS.............................................       9,990      29,990      24,990        --      24,990
5/54 GUN MOUNT MODS...................................         241         241      13,241        --      10,241
PIONEER...............................................       3,962       3,962       6,962        --       6,962
SPARES AND REPAIR PARTS...............................      26,943      21,943      26,943        --      21,943
ECONOMIC ASSUMPTIONS..................................          --          --      -8,000        --      -8,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousand of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Trident II......................................         292,248         292,248         227,248         227,248
    Missile reduction...........................  ..............  ..............         -65,000         -65,000
Trident II (AP-CY)..............................          47,021          32,021          47,021          47,021
    Excess long lead funding....................  ..............         -15,000  ..............               0
ESSM............................................          15,529           5,529          15,529          10,526
    Premature tooling...........................  ..............         -10,000  ..............          -5,000
JSOW............................................          58,665          68,665          58,665          63.665
    Additonal weapons...........................  ..............          10,000  ..............           5,000
Standard Missile................................         196,492         181,092         196,492         181,092
    Transfer Navy Lower Tier to Procurement, DW.  ..............         -15,400  ..............         -15,400
Aerial Targets..................................          72,923          65,923          66,723          65,923
    Reduced requirements........................  ..............          -7,000  ..............          -7,000
    Reduction...................................  ..............  ..............          -6,200               0
Standard Missile Mods...........................          35,601          68,601          50,901          50,901
    SM-2 Block IIIB.............................  ..............          33,000          15,300          15,300
CIWS Mods.......................................           9,990          29,990          24,990          24,990
    Surface mode IB.............................  ..............          20,000  ..............          15,000
    Block I upgrade.............................  ..............  ..............          15,000               0
5/54 Gun Mount Mods.............................             241             241          13,241          10,241
    Ordalt kits.................................  ..............  ..............          13,000          10,000
Pioneer.........................................           3,962           3,962           6,962           6,962
    CARS........................................  ..............  ..............           3,000           3,000
    [Funds provided for logistics are intended
     to support all Common Automatic Recovery
     Systems (CARS) throughout DoD.]
Spares and Repair Parts.........................          26,943          21,943          26,943          21,943
    Unobligated prior year funds................  ..............          -5,000  ..............          -5,000
----------------------------------------------------------------------------------------------------------------

                                tomahawk

       The budget request includes $51,820,000 to procure 65 Block 
     III Tomahawk missiles in fiscal year 1998. The Navy has 
     recently informed the conferees that it is working on a 
     proposal to develop and produce a new variant of this 
     missile, to be known as the Tactical Tomahawk or the Block 
     IV+. It would

[[Page H7688]]

     be the Navy intention to forgo the procurement of the 65 
     Block III Tomahawk's in fiscal year 1998 and use these funds, 
     in part, for the accelerated development of the new Block 
     IV+. While the conferees support a program to upgrade the 
     capabilities of the Tomahawk missile and reducing the 
     missile's unit cost, there remains many acquisition and 
     funding issues to be resolved before favorable consideration 
     of the proposed funding realignment can be granted. The 
     conferees encourage the Navy to submit a reprogramming action 
     once these issues are resolved.


                      5/54 gun mount modifications

       The conferees agree to provide $13,241,000 for the 
     procurement of gun safety, shock hardening, and fire support 
     Ordalts kits for the 5 inch MK-45 and MK-75 gun mounts.


                     weapons industrial facilities

       The conferees agree to provide $30,432,000 for capital 
     rehabilitation projects at government-owned, contractor 
     operated plants for Navy missile systems, a reduction of 
     $4,500,000 from the budget request. The conferees direct that 
     none of the reduction may be applied to the amounts requested 
     in the budget for facilities restoration at the Allegheny 
     Ballistics Laboratory.

            Procuerment of Ammunition, Navy and Marine Corps

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate           Qty.         Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, NAVY
 & MARINE CORPS
PRACTICE BOMBS..................          41,766          56,766          41,766  ..............          51,766
5 INCH/54 GUN AMMUNITION........          27,669          60,169          27,669  ..............          50,169
20MM PGU-28.....................  ..............           3,500  ..............  ..............           1,750
5.56 MM, ALL TYPES..............          33,000          36,000          33,000  ..............          36,000
7.62 MM, ALL TYPES..............           2,900           8,900           2,900  ..............           5,900
LINEAR CHARGES, ALL TYPES.......           2,290          17,290           2,290  ..............           9,790
40 MM, ALL TYPES................           5,701          10,701           5,701  ..............           7,201
FUZE, ET. XM762.................  ..............           7,000  ..............  ..............           3,500
ROCKETS, ALL TYPES..............          15,047          15,047          25,047  ..............          25,047
ECONOMIC ASSUMPTIONS............  ..............  ..............          -2,000  ..............          -2,000
----------------------------------------------------------------------------------------------------------------

                   Shipbuilding and Conversion, Navy

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                      Budget           House          Senate           Qty.         Conference
----------------------------------------------------------------------------------------------------------------
SHIPBUILDING & CONVERSION, NAVY
ADVANCED PROCUREMENT/             ..............  ..............         345,000  ..............          50,000
 CONSTRUCTION CVN-77............
CVN REFUELING OVERHAULS.........       1,615,003       1,628,403       1,615,003               1       1,615,003
CVN REFUELING OVERHAULS (AP-CY).         92,8553          46,855          92,855  ..............          46,855
DDG-51..........................       2,665,767       2,695,367       3,385,767               4       3,411,200
LPD-17 (AP-CY)..................  ..............         185,000  ..............  ..............         100,000
OCEANOGRAPHIC SIPS (AP-CY)......  ..............  ..............          73,000  ..............          16,000
LCAC LANDING CRAFT..............  ..............          24,000          73,300  ..............          20,000
OUTFITTING......................          28,140          21,140          24,140  ..............          21,140
POST DELIVERY...................          90,177          81,177          83,177  ..............          81,177
ECONOMIC ASSUMPTIONS............  ..............  ..............         -72,000  ..............         -72,000
----------------------------------------------------------------------------------------------------------------

                        cvn refueling overhauls

       The conferees agree to provide $1,615,003,000 for complex 
     overhaul of the U.S.S. Nimitz (CVN-68). Within that amount, 
     $20,000,000 is only for installation of the ship self-defense 
     system. The conferees do not agree to bill language proposed 
     by the House concerning overhaul of CVN-69, which is no 
     longer necessary since the Navy has committed to include ship 
     self-defense and cooperative engagement capability as part of 
     the overhaul of the ship.


                                 ddg-51

       The conferees agree to provide $3,411,200,000 for 4 ships. 
     This includes: increases of $720,000,000 for another ship, 
     $15,233,000 for acceleration of baseline 6 hardware and 
     software for theater ballistic missile defense, and 
     $14,000,000 only for installation of cooperative engagement 
     capability on 1 ship; and a decrease of $3,800,000 resulting 
     from saving due to foreign military sale of Aegis equipment. 
     The conferees do not agree to bill language proposed by the 
     House concerning theater ballistic missile defense, but 
     direct the Navy to include cooperative engagement capability 
     and theater ballistic missile defense capability on a 
     significant number of the DDG-51 ships to be procured under a 
     14 ship multiyear contract.


                           cruiser conversion

       The conferees agree to the House report language endorsing 
     the Navy plan to compete conversion of its 27 Aegis cruisers. 
     This direction does not supersede current Navy policy 
     concerning homeport overhauls.


                      lcac service life extension

       The conferees agree to provide $20,000,000 and concur with 
     the House report language. Since this program will extend the 
     original capital investment in these craft in lieu of 
     replacement, the conferees direct the Navy to use 
     Shipbuilding and Conversion for all elements of the service 
     life extension program.

                        Other Procurement, Navy

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                            Budget     House      Senate      Qty     Conference
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, NAVY
LM-2500 GAS TURBINE.....................................      7,548      5,548      7,548  .........       5,548
OTHER NAVIGATION EQUIPMENT..............................     31,552     39,052     49,552  .........      42,052
FIREFIGHTING EQUIPMENT..................................     14,081     27,081     14,081  .........      19,081
POLLUTION CONTROL EQUIPMENT.............................    156,775    147,775    135,775  .........     135,775
SUBMARINE BATTERIES.....................................      9,043      8,443      9,043  .........       8,443
STRATEGIC PLATFORM SUPPORT EQUIP........................      6,435     21,435      6,435  .........      21,435
REACTOR COMPONENTS......................................    193,880    180,880    193,880  .........     180,880
RADAR SUPPORT...........................................      1,708     23,708     10,708  .........      23,708
AN/SQQ-89 SURF ASW COMBAT SYSTEM........................     16,628     16,228     16,628  .........      16,228
SSN ACOUSTICS...........................................     77,953     46,453     85,953  .........      85,953
SURFACE SONAR WINDOWS AND DOME..........................  .........      6,000  .........  .........       6,000
C-3 COUNTERMEASURES.....................................      6,891      6,591      6,891  .........       6,591
COMBAT DF...............................................     10,473      5,873     10,473  .........       5,873
BATTLE GROUP PASSIVE HORIZON EXTEN......................     50,221     47,421     50,221  .........      47,421
NAVY TACTICAL DATA SYSTEM...............................     14,335     24,335     26,335  .........      25,335
COOPERATIVE ENGAGEMENT CAPABILITY.......................  .........    114,800  .........  .........      75,000
JMCIS AFLOAT............................................     22,403     22,403     34,403  .........      28,403
NAVAL TACTICAL COMMAND SUPPORT SYSTEM (NTCSS)...........     49,710     49,710     92,910  .........      80,710
ATDLS...................................................     16,991     15,391     16,991  .........      15,391
SHALLOW WATER MCM.......................................  .........  .........     10,000  .........      10,000
AUTOMATIC CARRIER LANDING SYSTEM........................     13,200     12,200     13,200  .........      12,200
ID SYSTEMS..............................................     11,293      9,193     11,293  .........       9,193
JMCIS TACTICAL/MOBILE...................................      2,888     47,888      2,888  .........      37,888
CALIBRATION STANDARDS...................................      2,075      2,075     20,075  .........      12,075
SHIP COMMUNICATIONS AUTOMATION..........................     25,799     25,799     49,799  .........      29,799
SUBMARINE COMMUNICATIONS EQUIPMENT......................     37,239     47,239     37,239  .........      45,239
SATCOM SHIP TERMINALS (SPACE)...........................    107,608    107,608    122,808  .........     109,608
NSIPS...................................................  .........     20,500  .........  .........      20,500
JEDMICS.................................................  .........      5,000  .........  .........       5,000
NAVAL SHORE COMMUNICATIONS..............................     72,465     72,465     96,465  .........     101,465

[[Page H7689]]

 
INFO SYSTEMS SECURITY PROGRAM (ISSP)....................     31,667     31,667     39,667  .........      34,667
AN/SSQ-36 (BT)..........................................      1,402      2,902      1,402  .........       1,752
AN/SSQ-53 (DIFAR).......................................     28,382     49,382     47,382  .........      47,382
AN/SSQ-57...............................................  .........      4,500  .........  .........         500
AN/SSQ-62 (DISCASS).....................................     24,291     32,291     31,291  .........      31,291
WEAPONS RANGE SUPPORT EQUIPMENT.........................      4,858     14,358      4,858  .........      10,858
AVIATION LIFE SUPPORT...................................     15,345     12,645     15,345  .........      12,645
AIRBORNE MINE COUNTERMEASURES...........................     20,192     27,692     20,192  .........      27,692
LAMPS MK III SHIPBOARD EQUIPMENT........................      5,805      4,560      5,805  .........       4,560
NATO SEASPARROW.........................................      6,866     10,866     14,866  .........      12,866
SHIP SELF DEFENSE SYSTEM................................      5,841     17,841      5,841  .........      17,841
AEGIS SUPPORT EQUIPMENT.................................     26,813     21,113     26,813  .........      21,113
SURFACE TOMAHAWK SUPPORT EQUIPMENT......................     65,502     65,302     65,502  .........      65,302
STRATEGIC MISSILE SYSTEMS EQUIP.........................    231,528    228,728     61,528  .........     228,728
ANTI-SHIP MISSILE DECOY SYSTEM..........................     24,696     24,696     33,696  .........      33.696
SURFACE TRAINING DEVICE MODS............................      4,829     13,329      4,829  .........       8,829
CONSTRUCTION & MAINTENANCE EQUIP........................      3,700      5,200      3,700  .........       5,200
AMPHIBIOUS EQUIPMENT....................................      6,233     11,233      6,233  .........       9,233
POLLUTION CONTROL EQUIPMENT.............................     28,650     25,080     25,050  .........      25,050
COMMAND SUPPORT EQUIPMENT...............................     15,915     17,915     15,915  .........      17,915
PORT SECURITY UNIT EQUIPMENT............................  .........  .........     13,500  .........      13,500
INTELLIGENCE SUPPORT EQUIPMENT..........................     22,449     22,749     22,449  .........      22,449
ENVIRONMENTAL SUPPORT EQUIPMENT.........................     15,678     15,678     21,678  .........      21,678
ECONOMIC ASSUMPTIONS....................................  .........  .........    -19,000  .........     -19,000
UNDISTRIBUTED REDUCTION.................................  .........  .........    -33,000  .........  ..........
----------------------------------------------------------------------------------------------------------------

                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                       Budget     House      Senate   Conference
----------------------------------------------------------------------------------------------------------------
Other Navigation Equipment.........................................     31,552     39,052     49,552      42,052
    WSN-7..........................................................  .........     +9,000    +18,000     +12,000
    Contract savings...............................................  .........     -1,500  .........      -1,500
Navy Tactical Data System..........................................     14,335     24,335     26,335      25,335
    Emulators......................................................  .........  .........    +12,000      +6,000
    UYQ-70/cruisers................................................  .........    +10,000  .........      +5,000
----------------------------------------------------------------------------------------------------------------

                      Port Security Unit Equipment

       The conferees agree to provide $13,500,000 only for port 
     security unit equipment for the Coast Guard.


                      Joint U.S./U.K. SSTD Program

       The conferees note that the Department of Defense has 
     commissioned an independent study to review the Surface Ship 
     Torpedo Defense (SSTD) program. The conferees note that a 
     joint U.S./U.K. collaborative SSTD program has been under way 
     since 1988 on a 50/50 cost share basis. until the findings of 
     the independent study are reported and acted upon, the 
     conferees direct the Department of Defense to continue the 
     joint U.S./U.K. collaborative program.


                    Choke Point Surveillance System

       The conferees understand that the Choke Point Surveillance 
     System (CPSS), in conjunction with forces ashore and land 
     attack missile capable ships, can provide a real-time 
     integrated surveillance and targeting system. The conferees 
     direct the Navy to investigate the possible funding and 
     incorporation of CPSS into future weapon system plans and to 
     provide a report to the Appropriations Committees of the 
     House and Senate prior to submission of the fiscal year 1999 
     budget on its recommendations regarding the CPSS program.


                       Navy Tactical Data System

       The conferees agree to provide $25,000,000 for the Navy 
     Tactical Data System. Within that amount $5,000,000 is only 
     to install AN/UYQ-70 full production workstations on Aegis 
     cruisers for execution only by the navy's Tactical Embedded 
     Computer Resources office.


                                 IT-21

       The Secretary of the Navy shall report to the Committees on 
     Appropriations that funds allocated for IT-21 implementation 
     will be spent in accordance with the letter and spirit of the 
     Federal Acquisition Regulation and meet the requirements for 
     security, scalability, network management, real time 
     processing, and reliability as outlined in the Joint 
     Technical Architecture.


                                JEDMICS

       The Joint Engineering Data Management Information and 
     Control System (JEDMICS) requires the incorporation of a 
     security solution in order to prevent unauthorized access, as 
     required by National Security Policy and federal regulations. 
     To meet near term and future requirements the security system 
     must be a Ratings and Maintenance Phase derivative of a 
     product evaluated at the National Security Agency (NSA) B2 
     level for Information Security; meet NSA's Communications 
     Security requirements for encryption of information from user 
     desktop to JEDMICS servers; provide true multilevel security 
     at the network level; and be a product of US origin. 
     Therefore, the conferees provide $5,000,000 in Other 
     Procurement, Navy to be used only to procure and integrate 
     into JEDMICS a security system meeting the above 
     requirements. Due to the critical nature of JEDMICS, the 
     conferees expect the Department to execute a contract as soon 
     as practicable.

                       Procurement, Marine Corps

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                            Budget     House      Senate      Qty     Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT, MARINE CORPS
ITEMS UNDER $2.0 MILLION (TRKD VEH).....................         99      1,999         99  .........       1,999
INTELLIGENCE SUPPORT EQUIPMENT..........................     16,413     21,805     16,413  .........      21,805
GENERAL PURPOSE MECHANICAL TMDE.........................      2,179      2,179     22,179  .........      17,179
NIGHT VISION EQUIPMENT..................................  .........  .........      7,000  .........       7,000
COMM & ELEC INFRASTRUCTURE SUPPORT......................     41,809     84,409     66,609  .........      66,609
\5/4\T TRUCK HMMWV (MYP)................................        696     40,696        696  .........      30,696
FIELD MEDICAL EQUIPMENT.................................      1,081     11,081      1,081  .........      11,081
ECONOMIC ASSUMPTIONS....................................  .........  .........     -3,000  .........      -3,000
----------------------------------------------------------------------------------------------------------------

                    Aircraft Procurement, Air Force

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, AIR FORCE
B-2A................................................     174,086     505,286     157,786  ..........     331,000
ADVANCED TACTICAL FIGHTER (AP-CY)...................      80,864      74,864  ..........  ..........      74,864
F-15A...............................................     159,000     159,000     259,800           5     226,300

[[Page H7690]]

 
F-16 C/D (MYP)......................................  ..........      82,500  ..........           3      82,500
C-17 (MYP)..........................................   1,923,311   1,914,211   2,341,811           9   1,901,611
C-17 (MYP) (AP-CY)..................................     278,200     265,600     278,200  ..........     278,200
EC-130J.............................................  ..........      49,900  ..........           1      49,900
C-130J..............................................      49,928      49,928      48,000  ..........      24,000
WC-130J.............................................  ..........  ..........     177,000           2     132,850
CIVIL AIR PATROL A/C................................       2,645       4,498       2,645          27       3,045
SMALL VCX (C-37)....................................  ..........  ..........       6,000           1       6,000
LARGE VCX (C-32A)...................................     190,116     190,116  ..........           2     190,116
E-8C................................................     313,991     317,991     309,291           1     313,291
PREDATOR UAV........................................     116,506     146,506     116,506          15     141,506
B-1B MOBS...........................................     114,245     138,245      96,845  ..........     114,245
B-52 MODS...........................................      28,907      31,807      39,307  ..........      39,307
F-15 MODS...........................................     169,568     157,068     197,568  ..........     181,368
F-16 MODS...........................................     216,158     199,358     232,058  ..........     220,158
C-130 MODS..........................................      94,511     119,211      94,511  ..........     119,211
E-3 MODS............................................     134,659     134,659     123,559  ..........     132,159
PASSENGER SAFETY MODIFICATIONS......................  ..........  ..........      75,000  ..........      50,000
DARP MODS...........................................      67,136     139,136     163,736  ..........     150,136
F-15 POST PROD SUPP.................................       8,089       6,289       8,089  ..........       6,289
F-16 POST PROD SUPP.................................      22,402      22,402      22,402  ..........      38,402
WAR CONSUMABLES.....................................      67,565      60,165      67,565  ..........      63,565
MISC PRODUCTION CHARGES.............................     275,804     269,583     267,012  ..........     275,804
DARP................................................     141,493     146,493     141,493  ..........     170,493
ECONOMIC ASSUMPTIONS................................  ..........  ..........     -37,000  ..........     -37,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                           Budget         House        Senate       Conference
----------------------------------------------------------------------------------------------------------------
B-2A..................................................       174,086       505,286       157,786        331,000
    Restart B-2 production............................  ............       331,200  ............  ..............
    Increased other Government costs..................  ............  ............       -10,100  ..............
    Engineering Change Order growth...................  ............  ............        -6,200  ..............
    Increase..........................................  ............  ............  ............        156,914
F-22 Advanced Tactical Fighter (AP-CY)................        80,864        74,864             0         74,864
    Transfer OPP funds to RDTEAF......................  ............        -6,000  ............         -6,000
    Delay F-22 production.............................  ............  ............       -80,864              0
F-15A.................................................       159,000       159,000       259,800        226,300
    Attrition reserve aircraft........................  ............  ............       100,800         67,300
F-16 C/D (MYP)........................................             0        82,500             0         82,500
    Attrition reserve aircraft........................  ............        82,500  ............         82,500
C-17 (MYP)............................................     1,923,311     1,914,211     2,341,811      1,901,611
    Expiring funds....................................  ............        -9,100  ............              0
    Additional aircraft...............................  ............  ............       440,200              0
    Late obligations and favorable contract             ............  ............       -21,700        -21,700
     negotiation......................................
C-17 (MYP)(AP-CY).....................................       278,200       265,600       278,200        278,200
    Contract savings..................................  ............       -12,600  ............              0
C-130J................................................        49,928        49,928        48,000         24,000
    One C-130J (shifted to NGRE account)..............  ............  ............       -49,928        -49,928
    C-130J spares and logistics.......................  ............  ............        48,000         24,000
WC-130J...............................................  ............  ............       177,000        132,850
    Additional Aircraft...............................  ............  ............       177,000        118,000
    Spares/Support Equipment..........................  ............  ............  ............         14,850
Large VCX (C-32A).....................................       190,116       190,116             0        190,116
    Convert 2 aircraft purchase to lease..............  ............  ............      -190,116              0
E-8C..................................................       313,991       317,991       309,291        313,291
    Rephased prior year requirements..................  ............        16,000  ............         16,000
    Improved Data Modem...............................  ............         1,000  ............          1,000
    Excess Engineering Change Order funding...........  ............       -13,000  ............        -13,000
    Systems engineering growth........................  ............  ............        -4,700         -4,700
PREDATOR UAV..........................................       116,506       146,506       116,506        141,506
    Additional funding to purchase attrition vehicles   ............        30,000  ............         25,000
     and spare parts..................................
B-1B Mods.............................................       114,245       138,245        96,845        114,245
    Link 16...........................................  ............        24,000  ............              0
    Block D modification concurrency..................  ............  ............       -17,400              0
B-52 Mods.............................................        28,907        31,807        39,307         39,307
    Electro-optical viewing system....................  ............         2,900  ............              0
    Increase..........................................  ............  ............        10,400         10,400
F-15 Mods.............................................       169,568       157,068       197,568        181,368
    Terminated upgrades...............................  ............       -11,800  ............         -5,000
    APG-63 radar upgrade pricing......................  ............       -13,500  ............              0
    [APG-63 radar funds provided without restriction
     or reporting requirements]
    Radar support equipment...........................  ............       -10,000  ............              0
    F-100-220E engine upgrade.........................  ............        22,800        22,800         12,800
    MIDS fighter data link terminals..................  ............  ............         5,200          4,000
F-16 Mods.............................................       216,158       199,358       232,058        220,158
    GPS...............................................  ............       -13,000  ............        -13,000
    Block 40 night vision imaging system..............  ............        -3,800  ............              0
    HARM targeting system upgrades....................  ............  ............         3,500          3,000
    600 gallon fuel tanks.............................  ............  ............        10,000          8,000
    Late obligations..................................  ............  ............       -12,600         -6,000
    Digital Terrain System............................  ............  ............        15,000         12,000
    OBOGS.............................................  ............  ............  ............         (1,080)
C-130 Mods............................................        94,511       119,211        94,511        119,211
    EC-130 mod........................................  ............        24,700  ............         24,700
E-3 Mods..............................................       134,659       134,659       123,559        132,159
    Extend sentry computers and display concurrency...  ............  ............        -8,600              0
    Offensive counter air change orders...............  ............  ............        -2,500         -2,500
Passenger Safety Modifications........................             0             0        75,000         50,000
    Navigation safety.................................  ............  ............        75,000         32,500
    GATM..............................................  ............  ............  ............         17,500
    [Conferees encourage use of COTS/NDI equipment to
     satisfy GATM requirements]
H-1 Mods..............................................         2,778         3,578         3,578          3,578
    Oil debris detection system.......................  ............           800           800            800
DARP MODS.............................................        67,136       139,136       163,736        150,136
    MWIR Trf..........................................  ............        20,000  ............          5,600
    RJ Sensors........................................  ............             0  ............         35,000
    RJ Reengining.....................................  ............        52,000        52,600         27,400
    RJ Heaters........................................  ............  ............         6,000          6,000
    SR-71 Mods........................................  ............  ............         9,000          9,000
    U-2 Senior Glass..................................  ............  ............        24,000              0
    U-2 SYERS.........................................  ............  ............         5,000              0
F-16 Post Production Supp.............................        22,402        22,402        22,402         38,402
    F-16 Improved Avionics Intermediate Shop for Air    ............  ............  ............         16,000
     National Guard...................................
F-15 Post Prod Supp...................................         8,089         6,289         8,089          6,289
    F-15 tooling disposition..........................  ............        -1,800  ............         -1,800
War Consumables.......................................        67,565        60,165        67,565         63,565
    Towed decoy engineering change orders.............  ............        -7,400  ............         -4,000

[[Page H7691]]

 
Misc Production Charges...............................       275,804       269,583       267,012        275,804
    Podded electro-optical camera systems.............  ............        -6,221  ............              0
    Reduction.........................................  ............  ............        -8,792              0
DARP..................................................       141,493       146,493       141,493        170,493
    U-2 Senior Glass..................................  ............  ............  ............         24,000
    U-2 SYERS.........................................  ............  ............  ............          5,000
----------------------------------------------------------------------------------------------------------------

                                  B-2

       The conferees provide $331,000,000 for B-2 procurement for 
     long-lead activities related to the procurement of additional 
     B-2s or for upgrades to the existing B-2 force to improve 
     mission capabilities, deployability, and maintainability.
       The conferees recognize that significant disagreement 
     exists on the question of continued low-rate production of 
     additional B-2 stealth bombers. The conferees believe the 
     question over whether to continue with low-rate B-2 
     production is a critical national security matter which must 
     be decided on the basis of future national security 
     requirements, projected threats, and affordability. 
     Therefore, the conferees have included a general provision 
     (Section 8131) establishing a panel to review and make 
     recommendations on this matter. The panel shall report to the 
     President and Congress no later than March 1, 1998 its 
     conclusions and recommendations, including whether additional 
     funds for the B-2 should be used for continued low-rate 
     production of the B-2 or for upgrades to improve 
     deployability, survivability and maintainability.


                                  F-22

       The conferees agree with the House direction regarding F-22 
     Out Of Production Parts (OPPs). The conferees further agree 
     that the authority provided in that direction applies only to 
     the F-22. The conferees direct the military departments to 
     seek the prior approval of the congressional defense 
     committees to gain similar authority for other programs.


                           F-16 modifications

       The conferees direct that all new production F-16 aircraft 
     shall include On-Board Oxygen Generating Systems (OBOGS), 
     including the six aircraft approved in fiscal year (FY) 1997. 
     The conferees further direct that $1,080,000 within the F-16 
     Modifications line shall be available only to make the 
     necessary production changes to incorporate OBOGS in new 
     production F-16's.
       The conferees support the Air Force's planned four-year 
     OBOGS installation program for F-16's scheduled to start no 
     later than fiscal year 2001, and the plan should include 
     field installation.


                 air combat training--rangeless (act-r)

                 kadena interim training system (kits)

       The conferees are aware of a new air combat training 
     capability recently delivered to Kadena Air Base, Okinawa. 
     The Kadena Interim Training System (KITS) provides a new 
     rangeless or untethered capability allowing it to be used on 
     aircraft for air combat training anywhere there is available 
     training airspace over land or sea. The conferees believe 
     that systems like KITS can provide improvements to the 
     readiness of our forward deployed forces. The conferees 
     direct the Air Force to review and evaluate KITS as it 
     applies to immediate air combat training requirements 
     throughout the active and reserve component air forces and to 
     submit a report to the Appropriations Committees on its 
     procurement and fielding plans for this system.

                     Missile Procurement, Air Force

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty.      Conference
----------------------------------------------------------------------------------------------------------------
MISSILE PROCEDURE, AIR FORCE
    HAVE NAP...................................  ...........  ...........       39,000  ...........       25,000
    JOINT STANDOFF WEAPON......................        1,139       30,139        1,139  ...........       20,139
    AMRAAM.....................................      117,768      107,168       76,668          173      107,168
    AGM-130 POWERED GBU-15.....................        1,539       42,539        1,539  ...........       25,000
    CONVENTIONAL ALCM..........................  ...........       15,300  ...........  ...........  ...........
    AGM-88A HARM...............................  ...........  ...........        9,600  ...........        9,600
    AGM-65 MAVERICK............................  ...........       11,000  ...........  ...........        8,000
    GLOBAL POSITIONING (MYP) SPACE.............      163,837      122,137      163,837            3      163,837
    TITAN SPACE BOOSTERS SPACE.................      555,304      473,304      455,304  ...........      464,304
    MEDIUM LAUNCH VEHICLE SPACE................      165,783      147,783      165,783            4      156,783
    DEFENSE SUPPORT PROGRAM (MYP) SPACE........      113,708      108,708      113,708  ...........      108,708
    SPECIAL PROGRAMS...........................      773,400      597,400      737,900  ...........      658,400
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........      -18,000  ...........      -18,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
AMRAAM......................................................      117,768      107,168       76,668      107,168
    Excess engineering change order funding.................  ...........      -10,600  ...........      -10,600
    Contractor overcharging.................................  ...........  ...........      -41,100            0
----------------------------------------------------------------------------------------------------------------

                    global positioning system (gps)

       The conferees agree to provide $163,837,000 for the 
     acquisition of three satellites in fiscal year 1998. The 
     conferees agree that while the Air Force is procuring GPS 
     satellites well in advance of their actual need, the total 
     costs of modifying the present GPS multiyear contract are 
     greater than the short term saving to be derived from 
     deferring the acquisition of one GPS satellite. The conferees 
     direct the Department of the Air Force to submit an 
     acquisition plan to the Appropriations Committees for the 
     next multiyear procurement of GPS satellites which more 
     closely aligns the acquisition of satellites with actual 
     launch need dates. The Air Force is also directed to submit a 
     report which compares the total costs of procuring the next 
     block of GPS satellites under the terms of a multiyear 
     contract with the alternative of procuring the satellites 
     under a base year contract with variable quantity options. 
     These reports shall be submitted no later than March 31, 
     1998.

                  Procurement of Ammunition, Air Force

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, AIR FORCE:
    20MM PGU-28................................  ...........        3,500  ...........  ...........        1,750
    GBU-29 HARD TARGET PENETRATOR..............  ...........       16,800  ...........  ...........        8,400
    JOINT DIRECT ATTACK MUNITION...............       61,307       61,307       61,307        2,673       56,307
    WIND CORRECTED MUNITIONS DISPENSER.........       19,871       10,471       19,871          280       12,271
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........       -3,000  ...........       -3,000
----------------------------------------------------------------------------------------------------------------

                      Other Procurement, Air Force

       The conference agreement is as follows:

[[Page H7692]]


                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, AIR FORCE:
    ITEMS LESS THAN $2,000,000.................        5,025        3,625        5,025         ----        3,625
    HMMWV, ARMORED.............................       24,181        7,781       24,181          125       24,181
    ITEMS LESS THAN $2,000,000.................        6,738        6,194        6,738         ----        6,194
    60K A/C LOADER.............................       83,143       51,143       83,143           45       83,143
    INTELLIGENCE DATA HANDLING SYS.............       20,739       24,339       20,739         ----       24,339
    WEATHER OBSERV/FORCAST.....................       18,013       22,013       18,013         ----       22,013
    STRATEGIC COMMAND AND CONTROL..............       20,505       19,005       20,505         ----       20,505
    TAC SIGINT SUPPORT.........................        4,114        9,114        4,114         ----        6,114
    MINIMUM ESSENTIAL EMERGENCY COMM NET.......        3,488        3,488        3,488         ----       11,988
    C3 COUNTERMEASURES.........................       14,904       13,004       14,904         ----       13,004
    BASE LEVEL DATA AUTO PROGRAM...............       46,778       46,778       55,678         ----       46,778
    BASE INFORMATION INFRASTRUCTURE............       88,945      136,945       88,945         ----      112,945
    AF SATELLITE CONTROL NETWORK SPACE.........       32,197       23,097       32,197         ----       23,097
    TACTICAL C-E EQUIPMENT.....................       16,968       16,968       54,968         ----       34,968
    RADIO EQUIPMENT............................       12,844       19,344       12,844         ----       19,344
    ITEMS LESS THAN $2,000,000.................        8,960        6,160        8,960         ----        8,960
    NIGHT VISION GOGGLES.......................        2,371       13,271        2,371         ----        2,371
    FLOODLIGHTS SET TYPE NF2D..................        7,696        4,696        7,696         ----        6,196
    MEDICAL/DENTAL EQUIPMENT...................       13,295        8,095       13,295         ----       10,695
    PRODUCTIVITY INVESTMENTS...................        5,980        5,980       10,980         ----       10,980
    INTELLIGENCE PRODUCTION ACTIVITY...........       60,572       58,572       49,272         ----       50,072
    DARP RC135.................................       12,778       47,778       12,778         ----       12,778
    SELECTED ACTIVITIES........................    5,003,960    4,994,490    5,080,160         ----    5,016,060
    ECONOMIC ASSUMPTIONS.......................         ----         ----      -25,000         ----      -25,000
    CIVIL AIR PATROL...........................         ----         ----         ----         ----          500
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
ITEMS LESS THAN $2,000,000..................................        5,025        3,625        5,025        3,625
    Minor replacement items.................................  ...........       -1,400  ...........       -1,400
HMMWV, Armored..............................................       24,181        7,781       24,181       24,181
    Duplicative force protection/anti-terrorist items.......  ...........      -16,400  ...........            0
Items less than $2,000,000..................................        6,738        6,194        6,738        6,194
    Contract savings and contingency funding................  ...........         -544  ...........         -544
60K A/C Loader..............................................       83,143       51,143       83,143       83,143
    Production ramp-up......................................  ...........      -32,000  ...........            0
Intelligence Data Handling Sys..............................       20,739       24,339       20,739       24,334
    JSAS....................................................  ...........        3,600  ...........        3,600
Weather Observ/Forcast......................................       18,013       22,013       18,013       22,013
    ASOS....................................................  ...........        4,000  ...........        4,000
Strategic Command and Control...............................       20,505       19,005       20,505       20,505
    Improved Technical Data System..........................  ...........      -10,000  ...........            0
    DIRECT (transfer to MEECN)..............................  ...........        8,500  ...........            0
Tac Sigint Support..........................................        4,114        9,114        4,114        6,114
    Integrated Broadcast Service............................  ...........        5,000  ...........        2,000
MEECN.......................................................        3,488        3,488        3,488       11,988
    DIRECT (transfer from Strategic Command and Control)....  ...........  ...........  ...........        8,500
C3 Countermeasures..........................................       14,904       13,004       14,904       13,004
    Excess prior year funds.................................  ...........       -1,900  ...........       -1,900
BASE LEVEL DATA AUTO PROGRAM................................       46,778       46,778       55,678       46,778
    REMIS...................................................  ...........  ...........        8,900  ...........
    [Conferees agree to provide $8,900,000 in O&M,AF for
     this purpose.]
Base Information Infrastructure.............................       88,945      136,945       88,945      112,945
    Security enhancements to base information systems.......  ...........       48,000  ...........       24,000
AF Satellite Control Network Space..........................       32,197       23,097       32,197       23,097
    Cancellation of Military Satellite Communications system  ...........       -9,100  ...........       -9,100
Tactical C-E Equipment......................................       16,968       16,968       54,968       34,968
    Theater deployable communications.......................  ...........  ...........       38,000       18,000
Radio Equipment.............................................       12,844       19,344       12,844       19,344
    Scope Command...........................................  ...........        6,500  ...........        6,500
ITEMS LESS THAN $2,000,000..................................        8,960        6,160        8,960        8,960
    Contract award delays...................................  ...........       -2,800  ...........            0
Night Vision Goggles........................................        2,371       13,271        2,371        2,371
    Accelerate procurement..................................  ...........       10,900  ...........            0
Floodlights Set Type NF2D...................................        7,696        4,696        7,696        6,196
    Contract award delays...................................  ...........       -3,000  ...........       -1,500
Medical/Dental Equipment....................................       13,295        8,095       13,295       10,695
    Prior year program savings..............................  ...........       -5,200  ...........       -2,600
Productivity Investments....................................        5,980        5,980       10,980       10,980
    Supply asset tracking systems...........................  ...........  ...........        5,000        5,000
Civil Air Patrol............................................  ...........  ...........  ...........          500
    [Transfer from Aircraft Procurement, Air Force]
----------------------------------------------------------------------------------------------------------------

                       Procurement, Defense-Wide

  The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT, DEFENSE-WIDE:
    MAJOR EQUIPMENT, OSD.......................      104,601      114,601      104,601  ...........      114,601
    DEFENSE AIRBORNE RECONNAISSANCE PROGRAM....       14,380       44,955       14,380  ...........       14,380
    ITEMS LESS THAN $2.0 MILLION...............        7,461       14,661       14,461  ...........       14,661
    AUTOMATIC DOCUMENT CONVERSION SYSTEM.......  ...........       10,000       20,000  ...........       20,000
    MAJOR EQUIPMENT, DSPO......................       19,334       14,334       19,334  ...........       19,334
    MAJOR EQUIPMENT, TJS.......................       46,847       46,847       36,847  ...........       36,847
    PATRIOT PAC-3..............................  ...........      349,109  ...........           52      349,109
    NAVY AREA TBDM PROGRAM.....................  ...........       15,400  ...........  ...........       15,400
    BMC3.......................................  ...........       20,100  ...........  ...........       20,100
    SOF ROTARY WING UPGRADES...................       36,042       36,042       76,542  ...........       36,042
    PC, CYCLONE CLASS..........................  ...........       10,700  ...........  ...........       10,700
    ADVANCED SEAL DELIVERY SYSTEM (ASDS).......       38,800       38,800       38,800  ...........        4,500
    ADVANCED SEAL DELIVERY SYSTEM (ASDS) (AP-          2,465        2,465        2,465  ...........          365
     CY).......................................
    REMOTE ACTIVATION MUNITION SYSTEM..........  ...........  ...........        2,000  ...........        1,000
    SOF INTELLIGENCE SYSTEM....................       21,175       25,475       23,175  ...........       24,175
    SOF SMALL ARMS & WEAPONS...................       10,269       10,269       12,669  ...........       11,269
    SOLDIER ENHANCEMENT PROGRAM................  ...........  ...........        2,300  ...........        2,300
    CLASSIFIED PROGRAMS........................      108,339      112,539      108,339  ...........      112,539
    CLASSIFIED PROTECTION......................       64,855       74,855       64,855  ...........       79,855
    COLLECTIVE PROTECTION......................       17,316       37,316       17,316  ...........       27,316

[[Page H7693]]

 
    CLASSIFIED PROGRAM.........................      354,289      359,289      358,289  ...........      355,039
    ECONOMIC ASSUMPTIONS.......................  ...........  ...........      -12,000  ...........      -12,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Special Operations Command
Other Procurement:
    SOF Intelligence Systems....................          21,175          25,475          23,175          24,175
        ISP/MATTS...............................  ..............          +1,800  ..............          +1,500
        JTWS....................................  ..............          +2,000          +2,000          +1,500
    SOF Small Arms & Weapons....................          10,269          10,269          12,669          11,269
        Night Firing Scopes for M4A1 Carbines...  ..............  ..............          +2,400          +1,000
Chemical/Biological Defense:
    Individual Protection.......................          64,855          74,855          64,855          79,855
        JSLIST suits............................  ..............         +10,000  ..............          +5,000
        JSLIST industrial production............  ..............  ..............  ..............         +10,000
    Collective Protection.......................          17,316          37,316          17,316          27,316
        Collective Protection Shortfalls in       ..............         +20,000  ..............          +5,000
         Korea..................................
        M17-LDS water sprayers..................  ..............  ..............  ..............          +2,000
        7 HMVV medical shelters.................  ..............  ..............  ..............          +3,000
----------------------------------------------------------------------------------------------------------------

                       secure terminal equipment

       The conferees direct that $17,000,000 of the funds 
     appropriated for Procurement, Defense-wide be made available 
     only for the procurement of the tactical Secure Terminal 
     Equipment program.


            socom procurement of naval special warfare boats

       The recent acquisition strategy initiated by the Special 
     Operations Command (SOCOM) to procure new Naval Special 
     Warfare 33 foot rib boat systems resulted in an initial 
     procurement of boat systems that cost about $1,000,000 each, 
     while other competitive designs being procured by other 
     federal agencies were reportedly available for less than one-
     third that amount. The high initial cost for this procurement 
     prompts the conferees to encourage SOCOM to conduct a fresh 
     review of the field of competition on the next round of 
     procurement for large (30 foot and above) rib boats. The 
     conferees request that SOCOM keep the Congressional defense 
     committees informed of its plans for future procurement of 
     this type.


                     advanced seal delivery system

       In response to a request from the Special Operations 
     Command, the conferees have reduced the Advanced Seal 
     Delivery System (ASDS) Procurement lines by $36,400,000 and 
     added the same amount to the Special Operations Tactical 
     Systems Development project in Title IV to complete the final 
     stage of ASDS development.


                           jslist production

       The conferees recommend an increase of $10,000,000 to the 
     Marine Corps, specifically to cover the nonrecurring 
     facilitation and equipment costs incurred by the three 
     National Industries for the Severely Handicapped (NISH) 
     affiliated community rehabilitation centers currently under 
     contract that form Department of Defense Joint Service 
     Lightweight Integrated Suits (JSLIST) program industrial 
     base. The Department may vest the title to the facilities and 
     equipment with these three contractors.

                  National Guard and Reserve Equipment

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate       Qty.     Conference
----------------------------------------------------------------------------------------------------------------
NATIONAL GUARD & RESERVE EQUIPMENT
RESERVE EQUIPMENT
ARMY RESERVE
MISCELLANEOUS EQUIPMENT.............................  ..........      20,000      65,000  ..........      75,000
CH-47 D CARGO (CHINOOK).............................  ..........      65,000  ..........  ..........  ..........
NAVY RESERVE
MISCELLANEOUS EQUIPMENT.............................  ..........       5,000      40,000  ..........      80,000
C-9 REPLACEMENT AIRCRAFT............................  ..........  ..........      40,000  ..........  ..........
F-14A MODS..........................................  ..........      34,000  ..........  ..........  ..........
MAGIC LANTERN.......................................  ..........       7,500  ..........  ..........  ..........
F/A-18 MODS.........................................  ..........      58,000  ..........  ..........  ..........
MARINE CORPS RESERVE
MISCELLANEOUS EQUIPMENT.............................  ..........      25,000      40,000  ..........      65,000
CH-53 HELICOPTERS...................................  ..........      64,000  ..........  ..........  ..........
T-39 REPLACEMENT AIRCRAFT...........................  ..........      10,000  ..........  ..........      10,000
AIR FORCE RESERVE
MISCELLANEOUS EQUIPMENT.............................  ..........      45,000      40,000  ..........      50,000
LOGISTIC SUPPORT FOR WC-130J........................  ..........  ..........      29,700  ..........  ..........
C-5 SIMULATOR.......................................  ..........      27,000  ..........  ..........  ..........
MATIONAL GUARD EQUIPMENT
ARMY NATIONAL GUARD
MISCELLANEOUS EQUIPMENT.............................  ..........      43,000      140,00  ..........      70,000
VIBRATION MANAGEMENT ENHANCEMENT PROGRAM............  ..........       3,000  ..........  ..........  ..........
UH-60L..............................................  ..........       3,000  ..........  ..........  ..........
LASER LEVELING......................................  ..........       1,000  ..........  ..........  ..........
ENGAGEMENT SKILLS TRAINERS..........................  ..........       3,000  ..........  ..........  ..........
MELIOS, AN-PVS-6....................................  ..........       5,000  ..........  ..........  ..........
AIR NATIONAL GUARD
MISCELLANEOUS EQUIPMENT.............................  ..........       5,000      40,000  ..........      25,000
C-130J..............................................  ..........     293,000      95,800           4     226,000
EC-130J.............................................  ..........  ..........      70,500  ..........  ..........
KC-135R ENGINE KITS.................................  ..........     100,000      52,000           2      52,000
F-16 IMPROVED AVIONICS INTERMEDIATE SHOP............  ..........      32,000  ..........  ..........  ..........
ULTIMATE BUILDING MACHINES..........................  ..........       1,500  ..........  ..........  ..........
----------------------------------------------------------------------------------------------------------------

                        miscellaneous equipment

       The conferees agree that each of the Chiefs of the Reserve 
     and National Guard components should exercise control of 
     modernization funds provided in this account including 
     aircraft and aircraft modernization. The conferees further 
     agree that separate submissions of a detailed assessment of 
     its modernization priorities by each of the Guard and Reserve 
     component commanders is required to be submitted to the 
     defense committees. The conferees expect the component 
     commanders to give priority consideration to the following 
     items: CH-47D helicopters, F-14A modifications, magic 
     lantern, F/A-18 modifications, C-9 replacement aircraft, CH-
     53 helicopters, C-5 simulators, vibration management 
     enhancement program, UH-60L, laser leveling equipment, 
     engagement skills trainers, MELIOS night vision devices, F-16 
     improved avionics intermediate shops, ultimate building 
     machines, air defense alerting devices (ADAD), A-2 bradley 
     upgrades, ALR-56 radar warning receiver, AN/TQM-41 MMS, 
     avengers, theater deployable communication packages, dragon 
     missile upgrades, multiple launch rocket system (MLRS), magic 
     lantern spares, small arms simulators, senior scout 
     modifications, field artillery ammunition support vehicles 
     (FAASVs), KC-135R reengining, night vision devices and 
     driver's night viewers, heavy equipment transport system 
     (HETS), paladin, M-1A2 tanks, CH-47 FADEC, medium truck 
     extended service programs (ESP), F-16 C/D onboard oxygen 
     generating system field installation and evaluation by the 
     Air National Guard, M-270 launcher mechanical systems (ILMS), 
     high mobility multipurpose wheeled vehicles, LITENING 
     targeting and navigation pods, all-terrain cranes, modular 
     airborne fire fighting system units, CH-47 internal crash

[[Page H7694]]

     worthy fuel cells, back scatter truck inspection systems, 
     night vision equipment, CH-47 ICH aircraft, commercial 
     industrial equipment, high speed dirt compactors, AH-64 
     combat mission simulators, high mobility trailers for HMMWVs, 
     palletized loading systems, heavy expanded mobility tactical 
     truck wreckers, M109A6, automatic building machines, air 
     defense alerting device systems, interactive simulators, 
     master cranes, deployable universal combat earth movers, 
     HEMTT wreckers, and AN/VRC-102 Radios.


                  national guard and reserve aircraft

       The conferees agree to provide $288,000,000 specifically 
     for the acquisition and modernization of the following 
     aircraft to support Reserve and National Guard missions:

T-39 replacement aircraft for the Marine Corps Reserves.....$10,000,000
C-130J aircraft for the Air National Guard (4)..............226,000,000
KC-135R engine kits for the Air National Guard...............52,000,000

          TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
RDTE, ARMY......................................       4,510,843       4,686,427       4,984,083       5,156,507
RDTE, NAVY......................................       7,611,022       7,907,837       7,532,846       8,115,686
RDTE, AIR FORCE.................................      14,451,379      14,313,456      14,127,873      14,507,804
RDTE, DEFENSE-WIDE..............................       9,069,680       9,509,337       9,608,689       9,821,760
DEVELOPMENTAL TEST AND EVALUATION...............         268,183         268,183         251,183         258,183
OPERATIONAL TEST AND EVALUATION.................          23,384          32,684          31,384          31,384
                                                 ---------------------------------------------------------------
      GRAND TOTAL, RDTE.........................      35,934,491      36,717,924      36,536,058      37,891,324
----------------------------------------------------------------------------------------------------------------

            Research, Development, Test and Evaluation, Army

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL ARMY:
    IN-HOUSE LABORATORY INDEPENDENT RESEARCH....          15,113          14,113          15,113          14,113
    DEFENSE RESEARCH SCIENCES...................         138,165         120,165         136,798         125,798
    UNIVERSITY AND INDUSTRY RESEARCH CENTERS....          45,576          45,576          52,876          46,576
    MATERIALS TECHNOLOGY........................           9,811           9,811          13,811          12,811
    SENSORS AND ELECTRONIC SURVIVABILITY........          19,294          24,294          21,794          26,794
    AVIATION TECHNOLOGY.........................          27,282          22,282          25,982          22,982
    EW TECHNOLOGY...............................          16,528          16,528          19,528          19,528
    MISSILE TECHNOLOGY..........................          22,335          22,335          26,335          25,335
    COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY....          33,112          40,112          58,112          62,112
    BALLISTICS TECHNOLOGY.......................          33,317          38,317          33,317          41,317
    CHEMICAL, SMOKE AND EQUIPMENT DEFEATING                4,739           2,739           4,739           3,739
     TECHNOLOGY.................................
    JOINT SERVICE SMALL ARMS PROGRAM............           4,786           9,286           7,786           9,286
    WEAPONS AND MUNITIONS TECHNOLOGY............          26,980          26,980          30,876          30,876
    ELECTRONICS AND ELECTRONIC DEVICES..........          20,192          22,692          26,042          26,792
    HUMAN FACTORS ENGINEERING TECHNOLOGY........          14,256          18,256          19,356          17,256
    ENVIRONMENTAL QUALITY TECHNOLOGY............          17,519          42,219          58,419          61,919
    MILITARY ENGINEERING TECHNOLOGY.............          36,422          43,922          47,422          58,422
    LOGISTICS TECHNOLOGY........................          17,689          19,689          17,689          18,689
    MEDICAL TECHNOLOGY..........................          74,684         142,484          74,684         165,484
    MEDICAL ADVANCED TECHNOLOGY.................          10,677         142,177         196,277         190,177
    AVIATION ADVANCED TECHNOLOGY................          31,330          53,830          34,330          92,330
    WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY...          18,255          25,255          30,255          26,255
    COMBAT VEHICLE AND AUTOMOTIVE ADVANCED                32,685          35,685          35,285          42,242
     TECHNOLOGY.................................
    COMMAND, CONTROL, COMMUNICATIONS ADVANCED             19,688          19,688          28,688          26,688
     TECHNOLOGY.................................
    TRACTOR HIKE................................          14,350  ..............          14,350          14,350
    TRACTOR ROSE................................           9,204           9,204          11,204          11,204
    MISSILE AND ROCKET ADVANCED TECHNOLOGY......         117,139          59,439         120,139          93,839
    LANDMINE WARFARE AND BARRIER ADVANCED                 19,332          25,932          32,932          32,932
     TECHNOLOGY.................................
    JOINT SERVICE SMALL ARMS PROGRAM............           4,754          11,754           7,754           9,254
    LINE-OF-SIGHT TECHNOLOGY DEMONSTRATION......          13,000  ..............          13,000           5,000
    MILITARY ENGINEERING ADVANCED TECHNOLOGY....          12,231          12,231          24,331          20,331
    ARMY MISSILE DEFENSE SYSTEMS INTEGRATION              24,138          55,638          87,638          75,638
     (DEM/VAL)..................................
    ARMAMENT ENHANCEMENT INITIATIVE.............          40,313          60,313          33,313          38,313
    NATO RESEARCH AND DEVELOPMENT...............          13,168  ..............          13,168           9,168
    AVIATION--ADV DEV...........................           7,132          15,132          12,132          14,132
    ARTILLERY SYSTEMS--DEM/VAL..................         324,380         324,380         301,321         324,380
    EW DEVELOPMENT..............................          66,212          86,524          67,712          87,024
    ALL SOURCE ANALYSIS SYSTEM..................          24,045          27,545          27,245          27,245
    FAMILY OF HEAVY TACTICAL VEHICLES...........  ..............           5,000  ..............           5,000
    ADVANCED COMMAND AND CONTROL VEHICLE (AC2V).           8,867           8,867          11,867          10,867
    ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.....          56,196          56,196          50,196          52,196
    COMBAT FEEDING, CLOTHING, AND EQUIPMENT.....          55,964          65,264          55,964          61,964
    NON-SYSTEM TRAINING DEVICES--ENG DEV........          76,749          76,749          81,749          80,249
    AIR DEFENSE COMMAND, CONTROL AND                      18,350          18,350          22,350          22,350
     INTELLIGENCE--ENG DE.......................
    AUTOMATIC TEST EQUIPMENT DEVELOPMENT........           2,582          11,582           2,582           8,582
    BRILLIANT ANTI-ARMOR SUBMUNITION (BAT)......         202,302         202,302         187,302         237,302
    COMBINED ARMS TACTICAL TRAINER (CATT).......           2,823          13,323           2,823          13,323
    WEAPONS AND MUNITIONS--ENG DEV..............           3,577           3,577           5,077           5,077
    LANDMINE WARFARE/BARRIER--ENG DEV...........          22,605           8,905           8,732           8,732
    SENSE AND DESTROY ARMAMENT MISSILE--ENG DEV.          22,372           5,494          22,372          11,494
    THREAT SIMULATOR DEVELOPMENT................          14,004          14,004          18,004          17,004
    ARMY KWAJALEIN ATOLL........................         138,769         138,769         124,769         124,769
    DOD HIGH ENERGY LASER TEST FACILITY.........          14,952          30,952          29,952          29,952
    MATERIAL SYSTEMS ANALYSIS...................          29,707          14,707          29,707          29,707
    SUPPORT OF OPERATIONAL TESTING..............          81,672          51,672          81,672          81,672
    PROGRAMWIDE ACTIVITIES......................          86,208          66,208          82,208          82,208
    INTERNATIONAL COOPERATIVE RESEARCH AND                 1,581           1,581              --              --
     DEVELOPMENT................................
    MUNITIONS STANDARDIZATION, EFFECTIVENESS AND           6,317           9,317           6,317          11,417
     SAFETY.....................................
    ENVIRONMENTAL COMPLIANCE....................          51,378          56,378          58,378          58,378
    MAINTENANCE AND REPAIR (RPM)--RDT&E.........          85,119          85,119          86,419          86,419
    MANAGEMENT HEADQUARTERS (RESEARCH AND                  4,837           4,837          31,337          25,837
     DEVELOPMENT)...............................
    MLRS PRODUCT IMPROVEMENT PROGRAM............          26,678          26,678          40,378          37,678
    AEROSTAT JOINT PROJECT OFFICE...............          86,193              --          96,193          35,000
    COMBAT VEHICLE IMPROVEMENT PROGRAMS.........         136,520         152,520         176,720         167,020
    AIRCRAFT MODIFICATIONS/PRODUCT IMPROVEMENT             2,609          22,609          32,609          22,609
     PROGRAMS...................................
    DIGITIZATION................................         156,960          75,560         120,043          71,560
    MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT               17,412          27,412          31,412          31,412
     PROGRAM....................................
    JOINT TACTICAL GROUND SYSTEM................           3,195           6,195           3,195           5,195
    SPECIAL ARMY PROGRAM........................           5,547           7,417           5,547           7,547
    INFORMATION SYSTEMS SECURITY PROGRAM........           9,647          12,147           9,647          12,147
    SATCOM GROUND ENVIRONMENT (SPACE)...........          57,827          57,827          56,227          56,227
    END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.          44,326          54,326          57,326          66,326
    FORCE XXI INITIATIVE........................              --          38,900              --          38,900
    STRIKER.....................................              --           3,900              --           3,900
    MORTAR FIRE CONTROL.........................              --          10,000              --          10,000
    ECONOMIC ASSUMPTIONS........................              --              --         -17,000         -17,000

[[Page H7695]]

 
    COUNTER MRL--TSPO...........................              --           5,000              --           2,000
    RADIO FREQUENCY.............................              --              --              --           1,700
    LIGHTWEIGHT LASER DESIGNATOR/RANGE FINDER...              --              --              --           2,800
    COMBAT SYNTHETIC TRAINING ASSESSMENT RANGE..              --              --              --           5,400
    ARMY AIRBORNE COMMAND & CONTROL SYSTEM......              --              --              --          11,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OR PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences.......................         138,165         120,165         136,798         125,798
    Program growth..............................  ..............         -18,000  ..............         -10,000
    Defense Information Warfare Initiative......  ..............         (1,000)          +3,500          +2,500
    Scientific problems with military             ..............  ..............          -4,867          -4,867
     applications...............................
University and Industry Research Centers........          45,576          45,576          52,876          46,576
    Federated Labs..............................  ..............  ..............          +2,300         (2,300)
    (Note: The conferees direct that within
     funds available, an additional $2,300,000
     is to be used for the federated labs.)
    Hypervelocity physics project...............  ..............  ..............          +1,000          +1,000
    Electric Rail Gun...........................  ..............  ..............          +4,000               0
    (Note: Transferred to Ballistics
     Technology.)
Sensors and Electronic Survivability............          19,294          24,294          21,794          26,794
    PDCUE.......................................  ..............  ..............          +2,500          +2,500
    Passive millimeter wave camera..............  ..............          +5,000  ..............          +5,000
Aviation Technology.............................          27,282          22,282          25,982          22,982
    FY 1997 Freeze..............................  ..............          -5,000  ..............          -3,000
    Budget correction...........................  ..............  ..............          -1,300          -1,300
Combat vehicle and automotive technology........          33,112          40,112          58,112          62,112
    Voice Instructional Device..................  ..............          +3,000  ..............          +3,000
    Tank and Vehicle Simulation Laboratory......  ..............          +6,000  ..............          +6,000
    National Automotive Center..................  ..............  ..............          +4,000          +4,000
    Joint Robotics Development Program on Ground  ..............  ..............          +6,000          +4,500
     vehicle survivability......................
    Air Defense Alerting Device integration--     ..............  ..............          +5,000          +4,000
     Bradley Stinger Vehicle....................
    High-output diesel engine testing...........  ..............         (1,000)          +1,000          +1,000
    HMMWV 6.2L engine rebuild program...........  ..............  ..............          +4,000          +4,000
    Alternative vehicle propulsion systems......  ..............  ..............          +5,000          +2,500
    Program termination.........................  ..............          -2,000  ..............               0
Ballistics technology...........................          33,317          38,317          33,317          41,317
    Liquid propellant...........................  ..............          +5,000  ..............          +4,000
    Electric Rail Gun...........................               0               0               0          +4,000
    (Note: Transferred from University &
     Research Centers.)
Weapons and Munitions Technology................          26,980          26,980          30,876          30,876
    Budget correction...........................  ..............  ..............          -1,104          -1,104
    Plastic-cased ammunition....................  ..............  ..............          +5,000          +5,000
Electronics and electronic Devices..............          20,192          22,692          26,042         +26,792
    Thermophotovoltaic generators...............  ..............          +2,500  ..............          +1,500
    ``AA'' zinc battery.........................  ..............  ..............          +1,500          +1,500
    Low-cost reusable alkaline manganese zinc...  ..............  ..............          +1,000          +1,000
    Enzyme-based chemical & biological detection  ..............  ..............          +2,250          +1,500
     technology.................................
    Advanced nonmetallic rechargeable battery     ..............  ..............            +600            +600
     system.....................................
    Rechargeable coin cells.....................  ..............  ..............            +500            +500
Environmental Quality Technology................          17,519          42,219          58,419          61,919
    Gallo Center................................  ..............          +5,000  ..............          +4,000
    Natural Gas boiler demonstration--CERL......  ..............          +2,000  ..............               0
    Commercialization of Technologies to Lower    ..............          +5,000  ..............          +5,000
     Defense Cost Init..........................
    Bioremediation Education, Science, &          ..............          +4,000          +4,000          +4,000
     Technology Center..........................
    Plasma Energy Pyrolysis System..............  ..............          +8,700          +8,700          +6,000
    Radford Environmental Development &           ..............  ..............          +6,000          +5,000
     Management Program.........................
    Environmental projects at the WETO facility.  ..............  ..............          +8,800          +7,000
    Small Business development program..........  ..............  ..............          +5,400          +5,400
    Agriculturally based remediation in Pacific   ..............  ..............          +4,000          +4,000
     Island ecosystems..........................
    Resource Recovery Technology Center.........  ..............  ..............          +4,000               0
    Computer based land management..............  ..............  ..............  ..............          +4,000
Military Engineering Technology.................          36,422          43,922          47,422          58,422
    Cold Regions Research and Engineering Lab...  ..............  ..............          +1,000          +1,000
    Climate change fuel cells--U.S. Army........  ..............          +7,500  ..............          +7,500
    Center for Geosciences Atmospheric Research.  ..............  ..............         +10,000          +7,500
    Molten carbonate fuel cells technology......  ..............  ..............  ..............          +6,000
Medical Technology..............................          74,684         142,484          74,684         165,484
    Neurotoxin Exposure Treatment research......  ..............         +25,000  ..............         +25,000
    Neurofibromatosis...........................  ..............          +9,800  ..............          +9,800
    Army nutrition research.....................  ..............          +3,500  ..............          +3,500
    Orthopedic implant research (Volumetrically   ..............          +3,500  ..............          +2,500
     controlled manufacturing)..................
    LSTAT.......................................  ..............          +6,000  ..............               0
    Ovarian cancer..............................  ..............         +10,000  ..............         +10,000
    Prostate cancer research....................  ..............         +10,000  ..............         +40,000
Medical Advanced Technology.....................          10,677         142,177         196,277         190,177
    Army-managed peer-reviewed breast cancer      ..............        +100,000        +175,000        +135,000
     research...................................
    MRE nutrition research......................  ..............  ..............          +3,600               0
    Prostate cancer diagnostic imaging..........  ..............  ..............          +5,000          +5,000
    National Medical Testbed....................  ..............          +8,000  ..............          +8,000
    Intravenous membrane oxygenator tech........  ..............  ..............          +1,000               0
    Mustard gas research........................  ..............  ..............          +1,000          +1,000
    Walter Reed Lab upgrades....................  ..............          +6,000  ..............          +6,000
    Advanced cancer detection...................  ..............          +3,500  ..............          +3,500
    Cooperative teleradiology...................  ..............          +3,000  ..............          +3,000
    Advanced trauma care........................  ..............          +6,000  ..............          +3,000
    Artificial lung research....................  ..............          +1,500  ..............          +1,500
    Emergency telemedicine......................  ..............          +3,500  ..............          +2,500
    Volume Angiocat (VAC).......................  ..............  ..............  ..............          +4,000
    Periscopic minimally-invasive surgery.......  ..............  ..............  ..............          +3,000
    Proton beam.................................  ..............  ..............  ..............          +4,000
Aviation Advanced Technology....................          31,330          53,830          34,330          92,330
    Short range UAV.............................  ..............          +5,000  ..............               0
    Integrated manned and unmanned aerial         ..............          +2,500  ..............          +1,000
     vehicle study..............................
    Stinger Universal launcher..................  ..............         +11,600  ..............         +11,600
    Starstreak..................................  ..............          +3,400          +3,000          +3,400
    Outrider UAV................................  ..............  ..............  ..............         +45,000
Weapons and Munitions Advanced Tech.............          18,255          25,255          30,255          26,255
    Trajectory correctable munition.............  ..............          +5,000          +8,000          +6,000
    Precision guided mortar munition............  ..............          +2,000          +4,000          +2,000
Combat Vehicle and Automotive Adv Tech..........          32,685          35,685          35,285          42,242
    Composite armored vehicle technology          ..............          +3,000  ..............          +2,000
     transfer...................................
    Aluminum metal matrix composites............  ..............  ..............          +9,000          +6,500
    Commercial derivative engine for the          ..............  ..............          +3,600          +3,600
     palletized load system.....................
    Program adjustment..........................  ..............  ..............         -10,000          -2,543
Command, Control, Communications--Adv Tech......          19,688          19,688          28,688          26,688
    Wavenet technology..........................  ..............  ..............          +4,000          +2,000
    Field Laser Radar Demo (FLD) Data Analysis    ..............  ..............          +5,000          +5,000
     Center.....................................
Missile and Rocket Advanced Technology..........         117,139          59,439         120,139          93,839

[[Page H7696]]

 
    EFOG-M......................................  ..............         -57,700  ..............         -26,300
    Future missile technology integration.......  ..............  ..............          +3,000          +3,000
Landmine Warfare and Barrier Adv. Tech..........          19,332          25,932          32,932          32,932
    Vehicular Mounted Mine Detection............  ..............          +2,700          +2,700          +2,700
    Stand off ground penetrating radar..........  ..............          +3,900          +3,900          +3,900
    Airborne standoff minefield detection system  ..............  ..............          +7,000          +7,000
Joint Service Small Arms Program................           4,754          11,754           7,754           9,254
    OICW........................................  ..............          +5,500          +3,000          +3,000
    Adv. light antiarmor weapons system.........  ..............          +1,500  ..............          +1,500
Military Engineering Advanced Technology........          12,231          12,231          24,331          20,331
    Rapidly installed breakwater technology.....  ..............  ..............          +2,000          +2,000
    Civil engineer assistance to forward          ..............  ..............          +2,000          +2,000
     deployed engineer forces...................
    Combat engineering systems logistics over     ..............  ..............          +8,100          +4,100
     shore......................................
    Advanced light anti-armor weapons system....  ..............  ..............         (4,500)               0
Army Missile Defense Systems Integration........          24,138          55,638          87,638          75,638
    Battlefield Integration Center..............  ..............  ..............         +22,000         +17,000
    THEL........................................  ..............         +31,500         +41,500         +34,500
Armament Enhancement Initiative.................          40,313          60,313          33,313          38,313
    TERM-KE-seeker development, lethality         ..............         +20,000         +10,000         +15,000
     testing, & associated-hardware.............
    Smart-top attack............................  ..............  ..............         -17,000         -17,000
    (Note: The conferees expect the Army to
     submit a reprogramming for appropriate
     close out and termination costs.)
Aviation Adv Dev................................           7,132          15,132          12,132          14,132
    Integrated aircrew common helmet............  ..............          +3,000  ..............          +2,000
    Retinal display technologies-integrated crew  ..............          +5,000          +5,000          +5,000
     helmet.....................................
EW Development..................................          66,212          86,524          67,712          87,024
    Force XXI lessons learned (GBCS)............  ..............         +20,312  ..............         +15,312
    Suite of integrated countermeasures.........  ..............  ..............          -6,000               0
    ATIRCM......................................  ..............  ..............          +7,500          +5,500
Brilliant Anti-armor submunition................         202,302         202,302         187,302         237,302
    BAT P31.....................................  ..............  ..............         -15,000               0
    Transfer from procurement...................  ..............  ..............  ..............         +35,000
DoD High Energy Laser Test Facility.............          14,952          30,952          29,952          29,952
    THEL testing at HELSTF......................  ..............         +10,000         +10,000         +10,000
    High energy solid state laser development...  ..............          +6,000          +5,000          +5,000
Munitions Standardization, Effectiveness &                 6,317           9,317           6,317          11,417
 Safety.........................................
    Blast chamber--Blue Grass Army Depot........  ..............          +3,000  ..............          +2,000
    Blast chamber--Anniston Army Depot..........  ..............  ..............  ..............          +2,000
    (Note: Added by Senate in RDT&E, Defense-
     wide).
    Explosive waste incinerator.................  ..............  ..............  ..............          +1,100
Environmental compliance........................          51,378          56,378          58,378          58,378
    Climate Change Fuel Cell-CERL...............  ..............          +5,000          +5,000          +5,000
    Natural gas boiler demonstration-CERL.......  ..............  ..............          +2,000          +2,000
MLRS Product Improvement Program................          26,678          26,678          40,378          37,678
    Guided MLRS.................................  ..............  ..............          +8,100          +7,000
    MLRS improved launcher mechanical system      ..............  ..............          +5,600          +4,000
     (ILMS).....................................
Aerostate Joint Project Office..................          86,193               0          96,193          35,000
    Program reduction...........................  ..............         -86,193  ..............         -51,193
    Aerostat development........................  ..............  ..............         +10,000               0
Combat Vehicle Improvement Programs.............         136,520         152,520         176,720         167,020
    M1 flat panel displays......................  ..............         +12,000         +12,000         +12,000
    AN/VVR-1 laser warming receiver.............  ..............          +4,000          +4,000          +4,000
    Abrams SEP..................................  ..............  ..............          +8,000          +6,500
    ADAD for Bradley Stinger fighting vehicle...  ..............  ..............          +4,000          +4,000
    M-7 Bradley fire support team (BFIST)         ..............  ..............          +3,000          +2,000
     vehicle test program sets..................
    Bradley A3 Test Program sets................  ..............  ..............          +3,500          +2,000
    Heavy recovery vehicle traction control       ..............  ..............          +5,700               0
     system.....................................
Digitization....................................         156,960          75,560         120,043          71,560
    Force XXI...................................  ..............        -100,000         -36,917        -100,000
    Tactical Personal Communications............  ..............         +10,000  ..............          +6,000
    Applique....................................  ..............          +2,600  ..............          +2,600
    Tactical Internet...........................  ..............          +6,000  ..............          +6,000
    (Note: The conferees do not agree with the
     House direction requiring the Army to
     establish a Battlefield Acquisition Program
     Office.)
Missile/Air Defense Product Improvement.........          17,412          27,412          31,412          31,412
    Patriot upgrade.............................  ..............         +10,000         +10,000         +10,000
    Stinger target acquisition sensor study and   ..............  ..............          +4,000          +4,000
     Stinger Blk II pre-EMD efforts.............
Joint Tactical Ground System....................           3,195           6,195           3,195           5,195
    Phase II P31................................  ..............  ..............  ..............  ..............
End Item Industrial Preparedness................          44,326          54,326          57,326          66,326
    M829E3 munitions development................  ..............          +5,000  ..............          +5,000
    Munitions manufacturing technology..........  ..............          +5,000  ..............          +3,000
    Instrumented Factory for Gears (INFAC)......  ..............  ..............          +4,000          +3,000
    Total integration munitions engineering.....  ..............  ..............          +5,000          +8,000
    Electronic Circuit Board Manufacturing        ..............  ..............          +4,000          +3,000
     Development Center.........................
Radio Frequency.................................               0               0               0           1,700
    (Note: Funds have been transferred from
     Other Procurement, Army.)
Lightweight laser designator range finder.......               0               0               0           2,800
    (Note: Funds have been transferred from
     Other Procurement, Army.)
Combat synthetic training assessment range......               0               0               0           5,400
    (Note: Funds have been transferred from
     Other Procurement, Army.)
Army Airborne Command & Control.................               0               0               0          11,000
    (Note: Funds have been transferred from
     Other Procurement, Army.)
----------------------------------------------------------------------------------------------------------------

                army high performance computing research

       The conferees urge the Army to provide within the defense 
     research sciences program element, $750,000 to hook up four 
     historically-black colleges with the Army High Performance 
     Computing Center in Minneapolis and $500,000 for work 
     stations at these colleges to optimize the use of the new 
     computing facilities which were made available through the 
     fiscal year 1997 defense appropriations act.


                    environmental quality technology

       The conferees agree to provide $4,000,000 in the Army 
     Environmental Quality Technology line only to develop 
     computer-based land management modeling projects designed to 
     help reduce time and costs associated with recovery of 
     military training areas. The conferees expect the U.S. Army 
     Construction Engineering Research Laboratory to prudently 
     manage this additional funding to achieve maximum results.


                           medical technology

                volumetrically controlled manufacturing

       The conferees have provided $2,500,000 only for the 
     development of a prototype artificial hip using 
     multidimensional volumetrically controlled manufacturing of 
     synthetic materials.


                      medical advanced technology

                 collaborative efforts in telemedicine

       The conferees recognize the need to continue establishment 
     of collaborative efforts for design of a telemedicine trauma/
     emergency medical services system to provide necessary 
     diagnostic and treatment interventions and improve medical 
     outcomes. This effort should include participation by 
     appropriate DoD agencies and public/institutions.


                      prostate diagnostic imaging

       The conferees are concerned about the quality and efficacy 
     of prostate diagnostic imaging, and believe that prostate 
     cancer detection and treatment would greatly benefit from 
     more accurate and refined equipment and procedures. The 
     conferees direct the Army to establish a public/private 
     research project in coordination with appropriate Government 
     agencies and private institutions to explore promising 
     technologies for improvement of prostate diagnostic imaging. 
     The conferees provide $5,000,000 only for this purpose in the 
     Medical Advanced Technology

[[Page H7697]]

     line. The conferees expect funding management to be 
     accomplished by Walter Reed Army Medical Center.


                     diagnostic imaging technology

       The conferees recognize the excellent work being conducted 
     at Walter Reed in diagnostic imaging technology and direct 
     that a Diagnostic Imaging Technology Center of Excellence be 
     established at Walter Reed Army Hospital and that the Army be 
     the lead agent in this endeavor. All DoD efforts in this area 
     should be coordinated with the center. In this vein, the 
     conferees are extremely encouraged with the potential 
     benefits of the Volume Angio CAT (VAC) and have provided an 
     additional $4,000,000 to continue efforts on this promising 
     imaging technology.


                 periscopic minimally-invasive surgery

       The conferees agree to provide $3,000,000 in the Army 
     Medical Technology line only to pursue further development of 
     minimally-invasive surgery techniques. The conferees believe 
     greater understanding of this cutting-edge technology could 
     result in significant benefits for US armed forces.


                      aviation advanced technology

                             outrider tuav

       The conferees agree to provide $45,000,000 to continue the 
     development, testing and evaluation of the Outrider tactical 
     unmanned aerial vehicle (TUAV). The conferees direct the 
     Secretary of the Army submit an acquisition strategy to the 
     Committees on Appropriations of the House and Senate after 
     the user-testing and evaluation are completed.


          munitions standardization, effectiveness and safety

       The conferees are aware of the need to close and clean up 
     the open pit burning ground currently being used to dispose 
     of explosive waste at Picatinny Arsenal. The Army has 
     concluded that additional funds are needed to complete the 
     construction of the Explosive Waste Incinerator and the 
     conferees agree to provide $1,100,000 only to finish this 
     project.


                               mattracks

       The conferees urge the Army to begin development testing of 
     the MATTRACKS track system within available research, 
     development, test and evaluation funding. The MATTRACKS track 
     system, which has been control tested by the Army and Marine 
     Corps with excellent results, appears to have great value for 
     military uses particularly mine clearing efforts.

            Research, Development, Test and Evaluation, Navy

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                       Budget     House      Senate   Conference
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL NAVY:
IN-HOUSE INDEPENDENT LABORATORY RESEARCH...........................     15,834     14,683     15,834      14,683
DEFENSE RESEARCH SCIENCES..........................................    366,283    336,463    366,283     334,463
SURFACE/AEROSPACE SURVEILLANCE AND WEAPONS TECHNOLOGY..............     32,273     29,273     32,273      29,273
SURFACE SHIP TECHNOLOGY............................................     46,859     53,859     52,859      50,359
AIRCRAFT TECHNOLOGY................................................     23,590     25,390     23,590      25,390
COMMAND, CONTROL, AND COMMUNICATIONS TECHNOLOGY....................     65,566     59,566     56,566      56,566
READINESS, TRAINING, AND ENVIRONMENTAL QUALITY TECHNOLOGY..........     31,762     47,362     31,762      39,362
MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY.....................     76,653     73,653     80,153      75,503
ELECTRONIC WARFARE TECHNOLOGY......................................     22,810     21,810     22,810      21,810
UNDERSEA SURVEILLANCE WEAPON TECHNOLOGY............................     51,033     46,033     51,033      46,033
MINE COUNTERMEASURES, MINING AND SPECIAL WARFARE...................     42,737     42,737     21,600      42,737
OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY...........................     48,211     77,711     66,961      73,711
UNDERSEA WARFARE WEAPONRY TECHNOLOGY...............................     35,736     31,736     43,736      37,736
AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY........................     35,093     41,193     27,693      35,693
PRECISION STRIKE AND AIR DEFENSE...................................     43,320     44,320     43,320      44,320
ADVANCED ELECTRONIC WARFARE TECHNOLOGY.............................     18,144     17,144     18,144      17,144
SHIP PROPULSION SYSTEM.............................................     39,737     34,737     49,737      49,737
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD)...............     34,178     63,478     51,178      61,678
MEDICAL DEVELOPMENT................................................     18,332     72,732     19,632      70,232
MANPOWER, PERSONNEL AND TRAINING ADV TECH DEV......................     18,812     20,502     20,042      22,502
ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECHNOLOGY............     18,249     18,999     28,249      26,249
UNDERSEA WARFARE ADVANCED TECHNOLOGY...............................     54,785     46,385     46,385      49,385
SHALLOW WATER MCM DEMOS............................................     41,602     38,352     41,602      38,352
ADVANCED TECHNOLOGY TRANSITION.....................................     87,285     75,052     72,285      76,285
C3 ADVANCED TECHNOLOGY.............................................     23,768     22,368     23,768      22,368
AVIATION SURVIVABILITY.............................................      7,859     16,959      7,859      16,959
ASW SYSTEMS DEVELOPMENT............................................     22,869     26,669     22,869      24,869
SURFACE AND SHALLOW WATER MINE COUNTERMEASURES.....................     58,231     71,131     76,431      73,631
ADVANCED SUBMARINE COMBAT SYSTEMS DEVELOPMENT......................     61,122     62,422     61,122      62,422
CARRIER SYSTEMS DEVELOPMENT........................................     98,587     10,187    115,587      20,587
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT.............................     19,194     22,694     19,194      22,694
ADVANCED SUBMARINE SYSTEM DEVELOPMENT..............................     59,067    162,067     59,067     114,000
SHIP PRELIMINARY DESIGN & FEASIBILITY STUDIES......................     38,682     38,682     63,682      53,682
ADVANCED SURFACE MACHINERY SYSTEMS.................................     49,741     44,741     49,741      47,741
CONVENTIONAL MUNITIONS.............................................     34,190     38,190     34,190      38,390
ADVANCED WARHEAD DEVELOPMENT (MK-50)...............................      2,012  .........      2,012  ..........
MARINE CORPS ASSAULT VEHICLES......................................     60,134     70,134     60,134      68,134
MARINE CORPS GROUND COMBAT/SUPPORT SYSTEM..........................     36,464     40,064     36,464      40,064
COOPERATIVE ENGAGEMENT.............................................    139,229    223,229    149,229     213,229
ENVIRONMENTAL PROTECTION...........................................     52,401     56,401     54,401      58,401
FACILITIES IMPROVEMENT.............................................      1,720      6,720      1,720       6,720
RETRACT ELM........................................................     21,822     24,522     21,822      24,522
NATO RESEARCH AND DEVELOPMENT......................................     13,330  .........     13,330      10,000
LAND ATTACK TECHNOLOGY.............................................     37,809     81,909     37,809      60,809
JOINT STRIKE FIGHTER (JSF)--DEM/VAL................................    448,855    448,855    476,855     463,855
SPACE AND ELECTRONIC WARFARE (SEW) ARCHITECTURE/ENGINE.............      4,705      4,705      9,705       7,705
OTHER HELO DEVELOPMENT.............................................     73,354     85,354    113,304     130,191
STANDARDS DEVELOPMENT..............................................     36,297     40,297     38,297      38,297
S-3 WEAPON SYSTEM IMPROVEMENT......................................      4,735      4,735        930         930
P-3 MODERNIZATION PROGRAM..........................................      3,191      3,191     15,191      13,191
TACTICAL COMMAND SYSTEM............................................     31,518     41,518     31,518      36,518
H-1 UPGRADES.......................................................     80,735     86,335     80,735      86,335
ACOUSTIC SEARCH SENSORS............................................     16,947     20,947     16,947      18,947
AIR CREW SYSTEMS DEVELOPMENT.......................................     12,111     18,111     12,111      18,111
EW DEVELOPMENT.....................................................    101,803    104,603     91,127      99,127
SURFACE COMBATANT COMBAT SYSTEM ENGINEERING........................     87,934    142,134    122,934     148,134
ARSENAL SHIP.......................................................    102,994  .........     75,994      35,000
LPD-17 CLASS SYSTEMS INTEGRATION...................................        471     13,471        471      13,471
TRI-SERVICE STANDOFF ATTACK MISSILE................................      9,644  .........      5,456       5,456
VLA UPGRADE........................................................  .........     12,000  .........       9,000
AIRBORNE MCM.......................................................     16,503     19,503     16,503      18,503
SSN-688 AND TRIDENT MODERNIZATION..................................     42,294     52,294     67,294      57,294
SUBMARINE COMBAT SYSTEM............................................     23,701      2,366     23,701      18,701
NEW DESIGN SSN.....................................................    311,076    331,076    316,076     323,076
SSN-21 DEVELOPMENTS................................................     49,542     12,332     49,542      49,542
SHIP CONTRACT DESIGN/LIVE FIRE T&E.................................     75,713     64,713    100,713      92,713
NAVY TACTICAL COMPUTER RESOURCES...................................      4,794     39,294      4,794      35,294

[[Page H7698]]

 
LIGHTWEIGHT TORPEDO DEVELOPMENT....................................     17,290     19,302     17,290      19,302
NAVY ENERGY PROGRAM................................................      2,088      2,088      4,588       2,088
JOINT STANDOFF WEAPON SYSTEMS......................................     71,526     71,526     71,526      80,526
SHIP SELF DEFENSE--EMD.............................................    132,270    190,870    134,270     163,270
MEDICAL DEVELOPMENT................................................      3,620     16,920      3,620      16,920
DISTRIBUTED SURVEILLANCE SYSTEM....................................     33,048     43,448     23,048      43,448
TARGET SYSTEMS DEVELOPMENT.........................................     48,308     45,408     45,308      45,408
MAJOR T&E INVESTMENT...............................................     33,236     39,236     33,236      36,236
STUDIES AND ANALYSIS SUPPORT--NAVY.................................      8,755      6,679      8,755       6,679
TECHNICAL INFORMATION SERVICES.....................................      8,763        763      8,763       3,263
RDT&E SCIENCE AND TECHNOLOGY MANAGEMENT............................     57,591     55,961     57,591      55,961
TEST AND EVALUATION SUPPORT........................................    263,934    235,908    251,934     246,934
MARINE CORPS PROGRAM WIDE SUPPORT..................................      8,207     12,707      8,207      12,707
F/A-18 SQUADRONS...................................................    316,976    207,776    290,976     293,976
TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER (TMPC)...............     93,359     91,500     93,359      91,500
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT..........................     58,956     36,456     63,956      68,956
HARM IMPROVEMENT...................................................      6,169     41,169      6,169      41,169
AVIATION IMPROVEMENTS..............................................     60,025     51,025     60,025      51,025
NAVY SCIENCE ASSISTANCE PROGRAM....................................  .........  .........     12,000      12,000
MARINE CORPS COMMUNICATIONS SYSTEMS................................     38,296     45,296     40,296      45,296
MARINE CORPS GROUND COMBAT/SUPPORTING ARMS SYSTEMS.................     12,568     14,668     12,568      14,668
DEFENSE METEOROLOGICAL SATELLITE PROGRAM (SPACE)...................      3,165      1,198      3,165       1,198
INDUSTRIAL PREPAREDNESS............................................  .........     55,000     54,000      55,000
CLASSIFIED PROGRAM.................................................    488,489    531,489    188,489     494,989
ECONOMIC ASSUMPTIONS...............................................  .........  .........    -18,000     -18,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  FY 98
                                                                 budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES....................................     336,283     336,463      366,283      334,463
    General reduction........................................  ..........     -39,820   ...........     -39,820
    Molecular Design Institute...............................  ..........      10,000   ...........       8,000
SURFACE SHIP TECHNOLOGY......................................      46,859      53,859       52,859       50,359
    General reduction........................................  ..........      -5,000   ...........      -5,000
    Power electronic building blocks.........................  ..........       6,000        6,000        6,000
    Power node control centers...............................  ..........       1,500   ...........       1,500
    Micromechanical systems/damage tolerant networks.........  ..........       2,500   ...........           0
    Underwater vehicle derived control technology............  ..........       2,000   ...........       1,000
READINESS, TRAINING, AND ENVIRONMENTAL QUALITY TECH..........      31,762      47,362       31,762       39,362
    General reduction........................................  ..........      -3,000   ...........      -3,000
    JMLS ACTD for sea-state 3 lighterage.....................  ..........      16,000   ...........       8,000
    Smart aircrew integrated life support system.............  ..........       2,600   ...........       2,600
MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY...............      76,653      73,653       80,153       75,503
    General reduction........................................  ..........      -7,000   ...........     -10,000
    Resin transfer molding/carbon fibers.....................  ..........       2,000        2,000        2,000
    Composite storage capsule................................  ..........       2,000   ...........       2,000
    Vacuum electronics.......................................  ..........  ...........      -4,000       -3,000
    Photomagnetic research...................................  ..........  ...........         350          350
    Plasma quench technology.................................  ..........  ...........       3,000        2,000
    Advanced Material Intelligent Processing Center..........  ..........  ...........       2,500        2,500
    Terfenol-D...............................................  ..........  ...........  ...........       3,000
OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY.....................      48,211      77,711       66,961       73,711
    Autonomous underwater vehicle/sensor development.........  ..........      10,000   ...........      10,000
    Ocean partnerships.......................................  ..........      16,000       16,000       12,000
    Naval Surface Warfare Center South Florida Test Facility.  ..........       2,750        2,750        2,750
    PM-10....................................................  ..........         750          750          750
    Arctic research..........................................  ..........      (2,000)  ...........      (2,000)
UNDERSEA WARFARE WEAPONRY TECHNOLOGY.........................      35,736      31,736       43,736       37,736
    General reduction........................................  ..........      -4,000   ...........      -4,000
    COTS airgun as an acoustic source........................  ..........      (5,000)  ...........           0
    6.25'' torpedo project...................................  ..........  ...........       4,000   ...........
    Undersea warfare and weapons technology..................  ..........  ...........       4,000        3,000
AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY..................      35,093      41,193       27,693       35,693
    Maritime avionics subsystems and technology..............  ..........      11,500   ...........       7,000
    Integrated high payoff rocket technology.................  ..........       2,000   ...........       1,000
    General reduction........................................  ..........      -7,400   ...........      -7,400
    Integrated HP turbine engine technology..................  ..........  ...........      -7,400   ...........
SHIP PROPULSION SYSTEM.......................................      39,737      34,737       49,737       49,737
    Active control of machinery rafts........................  ..........       5,000   ...........       5,000
    General reduction........................................  ..........     -10,000   ...........      -5,000
    Composite helicopter hanger..............................  ..........  ...........      10,000       10,000
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD).........      34,178      63,478       51,178       61,678
    Commandant's Warfighting Lab.............................  ..........      20,300       15,000       17,500
    SMAW-CS product improvement program......................  ..........       5,000   ...........       5,000
    2 KW proton exchange membrane fuel cell..................  ..........       4,000   ...........       3,000
    CARS.....................................................  ..........  ...........       2,000        2,000
    Modeling/simulation......................................  ..........  ...........      (2,450)      (2,450)
MEDICAL DEVELOPMENT..........................................      18,332      72,732       19,632       70,232
    Bone marrow..............................................  ..........      34,000   ...........      34,000
    National Biodynamics Lab.................................  ..........       2,600   ...........       2,600
    Biocide materials research...............................  ..........       5,500   ...........       5,500
    Freeze dried blood.......................................  ..........       2,500        2,500        1,500
    Dental research..........................................  ..........       4,000   ...........       2,000
    Mobile medical monitor...................................  ..........       4,000   ...........       2,000
    Rural health.............................................  ..........       3,000   ...........       3,000
    Natural gas cooling/desiccant demonstration..............  ..........  ...........  ...........       2,500
    Fleet health.............................................  ..........      -1,200       -1,200       -1,200
MANPOWER, PERSONNEL AND TRAINING ADV TECH DEV................      18,812      20,502       20,042       22,502
    Virtual reality environment/training research............  ..........       3,690        1,230        3,690
    Center for integrated Manufacturing Studies..............  ..........  ...........  ...........       2,000
    General reduction........................................  ..........      -2,000   ...........      -2,000
ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECH............      18,249      18,999       28,249       26,249
    250KW proton exchange membrane fuel cell.................  ..........       1,750        1,750        1,750
    Visualization of technical information...................  ..........       1,000        2,000        2,000
    General reduction........................................  ..........      -2,000   ...........      -2,000
    Smart base...............................................  ..........  ...........       6,250        6,250
UNDERSEA WARFARE ADVANCED TECHNOLOGY.........................      54,785      46,385       46,385       49,385
    General reduction........................................  ..........      -8,400   ...........           0
    Shallow water surveillance technology....................  ..........  ...........      -3,000       -3,000
    Beartrap advanced technology.............................  ..........  ...........      -5,400       -5,400
    COTS airgun as an acoustic source........................  ..........  ...........  ...........       3,000
ADVANCED TECHNOLOGY TRANSITION...............................      87,285      73,052       72,285       76,285

[[Page H7699]]

 
    General reduction........................................  ..........     -18,233      -20,000      -20,000
    High frequency surface wave radar........................  ..........       4,000       (4,000)       4,000
    SWATH technology development.............................  ..........  ...........       5,000        5,000
    Affordable array.........................................  ..........  ...........      (4,900)      (4,900)
ASW SYSTEMS DEVELOPMENT......................................      22,869      26,669       22,869       24,869
    Geopositioning for the air deployable low frequency        ..........       3,800   ...........       2,000
     projector...............................................
SURFACE AND SHALLOW WATER MINE COUNTERMEASURES...............      58,231      71,131       76,431       73,631
    Remote minehunting system................................  ..........       7,900        7,900        7,900
    Integrated combat weapon system..........................  ..........       5,000       10,300        7,500
ADVANCED SUBMARINE COMBAT SYSTEMS DEVELOPMENT................      61,122      62,422       61,122       62,422
    Lightweight wide aperture advanced array, fiber optic....  ..........       4,000   ...........       4,000
    Savings identified by GAO................................  ..........      -2,700   ...........      -2,700
CARRIER SYSTEMS DEVELOPMENT..................................      98,587      10,187      115,587       20,587
    CVX......................................................  ..........     -88,400   ...........     -78,000
    CVN-77...................................................  ..........  ...........      17,000            0
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT.......................      19,194      22,694       19,194       22,694
    Direct carbonate fuel cell powerplant/ship electric        ..........       3,500        1,000        3,500
     service.................................................
COOPERATIVE ENGAGEMENT.......................................     139,229     223,229      149,229      213,229
    E-2/CEC integration......................................  ..........      20,000   ...........      10,000
    TBMD/CEC integration.....................................  ..........      15,000   ...........      15,000
    Low cost common equipment set............................  ..........      15,000   ...........      15,000
    Reduced schedule risk/logistics support..................  ..........      13,000   ...........      13,000
    SSDE/CEC integration.....................................  ..........       5,000   ...........       5,000
    Hawk/CEC integration.....................................  ..........       5,000   ...........       3,000
    Design agent transfer....................................  ..........       5,000   ...........           0
    Fleet exercises..........................................  ..........       3,000   ...........       3,000
    LAMPS data link..........................................  ..........       3,000   ...........           0
    Space....................................................  ..........  ...........      10,000       10,000
ENVIRONMENTAL PROTECTION.....................................      52,401      56,401       54,401       58,401
    Resource recovery technology center......................  ..........       4,000   ...........       4,000
    Asbestos removal.........................................  ..........  ...........       2,000        2,000
    Hospital desiccant demonstration.........................  ..........  ...........      (1,500)           0
FACILITIES IMPROVEMENT.......................................       1,720       6,720        1,720        6,720
    Engineered lumber development............................  ..........       5,000   ...........       5,000
    (NOTE: Funds for engineered lumber develoopment are only
     to complete the ongoing effort already under contract by
     the Navy for cost-shared development and deployment of
     carbon fiber-reinforced, recycled thermoplastic
     engineered lumber which incorporates chemically treated
     waste-wood materials.)
LAND ATTACK TECHNOLOGY.......................................      37,809      81,909       37,809       60,809
    Extended range guided munition...........................  ..........      15,100   ...........       8,000
    MEMS guidance and control................................  ..........       5,000   ...........       2,000
    Land attack Standard Missile.............................  ..........       4,000   ...........       3,000
    Navy ATACMS..............................................  ..........      20,000   ...........      10,000
JOINT STRIKE FIGHTER (JSF)--DEM/VAL..........................     448,855     448,855      476,855      463,855
    Eddy current sensor/eddy current array sensor............  ..........      (6,000)  ...........      (6,000)
    Engine turbine fan improvement...........................  ..........      (1,000)  ...........      (1,000)
    Alternative engine.......................................  ..........  ...........      28,000       15,000
    (NOTE: Projects which are directed to be funded from
     within available funds may not be financed by decrements
     to DARPA programs.)
OTHER HELO DEVELOPMENT.......................................      73,354      85,354      113,304      130,191
    SH-60R block II..........................................  ..........       7,000       25,000       15,000
    Air interoperability center..............................  ..........       5,000        5,000        5,000
    Parametric airborne dipping sonar........................  ..........  ...........      10,000        5,000
    CH-60 development........................................
    (NOTE: CH-60 funds are transferred form Aircraft
     Procurement, Navy)......................................
STANDARDS DEVELOPMENT........................................      36,297      40,297       38,297       38,297
    Ground Proximity Warning System..........................  ..........       4,000   ...........           0
    ICAS.....................................................  ..........  ...........       2,000        2,000
    (NOTE: Funds for ground proximity warning system ar
     funded in Aircraft Procurement, Navy)...................
S-3 WEAPON SYSTEM IMPROVEMENT................................       4,735       4,735          930          930
    Common support aircraft..................................  ..........  ...........      -3,805       -3,805
    (NOTE: Reduction to common support aircraft is made
     without prejudice.).....................................
EW DEVELOPMENT...............................................     101,803     104,603       91,127       99,127
    Precision targeting......................................  ..........       2,800   ...........       2,000
    Joint emitter targeting system...........................  ..........  ...........      -2,000       -2,000
    Common missile warning system............................  ..........  ...........      -6,000            0
    ICAP III.................................................  ..........  ...........      -2,676       -2,676
SURFACE COMBATANT COMBAT SYSTEM ENGINEERING..................      87,934     142,134      122,934      148,134
    TBMD/UYQ-70 architecture.................................  ..........      43,000   ...........      38,000
    Program shortfalls.......................................  ..........      14,000   ...........           0
    Postponed sea test.......................................  ..........      -2,800   ...........      -2,800
    High power discriminator.................................  ..........  ...........      35,000       25,000
NEW DESIGN SSN...............................................     311,076     331,076      316,076      323,076
    ASTECS/integrated mast...................................  ..........      17,000   ...........       8,000
    Sonar domes..............................................  ..........       3,000        5,000        4,000
SHIP CONTRACT DESIGN/LIVE FIRE T8E...........................      75,713      64,713      100,713       92,713
    CVN-77...................................................  ..........      17,000   ...........      17,000
    DD-21....................................................  ..........     -28,000       25,000            0
NAVY TACTICAL COMPUTER RESOURCES.............................       4,794      39,294        4,794       35,294
    UYQ-70 for submarines....................................  ..........      17,500   ...........      17,500
    Virtual prototyping of electronic circuits...............  ..........      10,000   ...........       6,000
    UYQ-70 for USMC expeditionary force......................  ..........       7,000   ...........       7,000
NAVY ENERGY PROGRAM..........................................       2,088       2,088        4,588        2,088
    Natural gas colling/desiccant demonstration..............  ..........  ...........       2,500            0
    (NOTE: Funds for natural gas cooling/desiccant
     demonstration are provided in Medical Development)......
SHIP SELF DEFENSE--EMD.......................................     132,270     190,870      134,270      163,270
    QRCC.....................................................  ..........      19,000   ...........      10,000
    Test ship................................................  ..........      12,000   ...........       6,000
    Wallps Island test operatIons............................  ..........       8,600   ...........       4,000
    SPQ-9B...................................................  ..........       9,000   ...........       5,000
    IRST.....................................................  ..........      10,000   ...........       4,000
    Nulka....................................................  ..........  ...........       2,000        2,000
DISTRIBUTED SURVEILLANCE SYSTEM..............................      33,048      43,448       23,048       43,448
    AODS integration into ADS................................  ..........       7,800   ...........       7,800
    ADS algorithms...........................................  ..........       2,600   ...........       2,600
    General reduction........................................  ..........  ...........     -10,000            0
TARGET SYSTEMS DEVELOPMENT...................................      48,308      45,408       45,308       45,408
    Non-cooperative airborne vector scorer...................  ..........      -2,900   ...........      -2,900
    General reduction........................................  ..........  ...........      -3,000            0
TEST AND EVALUATION SUPPORT..................................     263,934     235,908      251,934      246,934
    General reduction........................................  ..........     -30,026      -12,000      -18,000
    Safety items.............................................  ..........       2,000   ...........       1,000
F/A-18 SQUADRONS.............................................     316,976     207,776      290,976      293,976
    Management reserves......................................  ..........    -114,200      -26,000      -26,000
    TARPS....................................................  ..........       5,000   ...........       3,000
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT....................      58,956      36,456       63,956       68,956
    JTCTS....................................................  ..........     -27,500   ...........           0
    BFTT.....................................................  ..........       5,000   ...........       5,000
    PMRF sensors.............................................  ..........  ...........       5,000        5,000
INDUSTRIAL PREPAREDNESS......................................           0      55,000       54,000       55,000
    General increase.........................................  ..........      55,000       50,000   ...........
    Center for Integrated Manufacturing Studies..............  ..........  ...........       4,000            0
    (NOTE: Funds for the Center for Integrated Manufacturing
     Studies is provided in Manpower, Personnel, and Training
     Advanced Technology Development.).......................
----------------------------------------------------------------------------------------------------------------


[[Page H7700]]

                          aircraft technology

       The conferees direct that the Navy Vectored Thrust Ducted 
     Propeller (VTDP) compound helicopter program focus the 
     current VTDP technology development program on utilization of 
     the H-60 helicopter as the demonstration platform. The 
     conferees further direct that from within available funds 
     $200,000 is only for the Navy's H-60 program office (PMA-299) 
     to manage the VTDP program and all current and prior year 
     funds appropriated for this program.


            materials, electronics, and computer technology

       The conferees agree to provide $3,000,000 for Terfenol-D, 
     which is used in Navy sonar programs. The conferees direct 
     that this amount shall be available only to allow the Navy to 
     achieve further cost reductions in the application of a 
     magnetostrictive, iron/terbium/dysprosium alloy for new high 
     performance sonar systems. The conferees further direct that 
     such effort shall be undertaken through a partnership between 
     any entity which has made a financial commitment and has 
     experience in the production of such an alloy and the 
     National Center for Excellence in Metal Working Technology.


                      navy aircrew ejection seats

       The conferees believe the Navy must place greater emphasis 
     on aircrew protection and safety, a problem that is of 
     growing concern with the introduction of lighter-weight crew 
     members. In fiscal year 1997, the Congress appropriated an 
     additional $5,000,000 to initiate Phase II of the Navy 
     Aircrew Escape System (NACES) P3I program. The conferees are 
     disappointed that this effort has not yet begun, particularly 
     in light of technological advancements in propulsive 
     stabilization and sensors that could substantially decrease 
     the technical risk of resolving the safety shortcomings of 
     the NACES. These same advances may also be applicable to 
     making needed safety improvements in the GRU-7 seat flying in 
     the EA-6B aircraft.
       The conferees are aware of Navy plans to restructure the 
     NACES P3I program. While voicing no objection at this time, 
     the conferees expect that the restructured effort be 
     conducted in a manner to include a flight demonstration of 
     the life-saving benefits of these technologies to existing 
     ejection seats, and that EMD planning for introduction to the 
     fleet be completed. The conference agreement includes an 
     additional $6,000,000 only to accelerate the NACES P3I 
     program to include demonstrated propulsive stabilization 
     solutions.


   non-magnetic, stainless steel advanced double hull warship design

       The conferees note the technical challenge that the Navy 
     faces in the design and manufacture of very large and complex 
     structural systems that have historically been made of 
     traditional steel materials but are now incorporating the use 
     of more advanced materials like non-magnetic steels. The 
     joining of the advanced double hull concept with non-magnetic 
     steel offers the potential to reduce acquisition and 
     operation costs and to improve survivability. The conferees 
     direct the Navy to study this design on the DD-21 and to 
     explore the opportunities available with existing Centers of 
     Excellence that have capability in non-magnetic, stainless 
     steel advanced double hull warship design.


                    distributed surveillance system

       The conferees agree to provide $43,448,000, of which 
     $7,800,000 shall be for the testing and packaging of the all-
     optical deployable system into an advanced deployable system 
     (ADS) and at least $7,000,000 shall be for the development of 
     signal processing and detection algorithms for the ADS.

         Research, Development, Test and Evaluation, Air Force

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                             Budget         House        Senate      Conference
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL AF
DEFENSE RESEARCH SCIENCES...............................       226,832       183,332       222,249       207,249
MATERIALS...............................................        70,224        73,224        71,224        73,224
ARMSTRONG LAB EXPLORATORY DEVELOPMENT...................        76,102        76,102        79,102        76,102
AEROSPACE PROPULSION....................................        69,303        69,303        60,577        60,577
AEROSPACE AVIONICS......................................        69,401        68,061        66,484        64,144
HYPERSONIC TECHNOLOGY PROGRAM...........................         9,840         9,840        12,840         9,840
PHILLIPS LAB EXPLORATORY DEVELOPMENT....................       111,136       131,636       112,009       127,259
COMMAND CONTROL AND COMMUNICATIONS......................        86,067        89,067        86,067        88,567
ADVANCED MATERIALS FOR WEAPON SYSTEMS...................        20,596        26,596        30,096        28,096
AEROSPACE PROPULSION SUBSYSTEMS INTEGRATION.............        30,564        28,318        27,031        24,785
AEROSPACE STRUCTURES....................................        15,032        10,423        15,032        10,423
AEROSPACE PROPULSION AND POWER TECHNOLOGY...............        37,014        37,014        35,183        35,183
CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY........        17,204        26,204        17,204        26,204
FLIGHT VEHICLE TECHNOLOGY INTEGRATION...................         7,795         6,423         7,795         6,423
ELECTRONIC COMBAT TECHNOLOGY............................        25,621        30,871        24,121        34,371
SPACE AND MISSILE ROCKET PROPULSION.....................        16,247        30,047        16,247        18,147
BALLISTIC MISSILE TECHNOLOGY............................  ............         8,000  ............         8,000
ADVANCED SPACECRAFT TECHNOLOGY..........................        40,846        72,846       100,846        98,346
CONVENTIONAL WEAPONS TECHNOLOGY.........................        26,227        28,227        23,187        24,687
ADVANCED WEAPONS TECHNOLOGY.............................        41,238        56,238        59,238        55,238
C3 ADVANCED DEVELOPMENT.................................        12,897        12,897        13,897        13,647
ADVANCED MILSATCOM (SPACE)..............................        41,448        41,000        41,448        41,000
POLAR ADJUNCT (SPACE)...................................        29,585  ............        29,585        15,000
NATIONAL POLAR-ORBITING OPERATIONAL ENVIRONMENTAL SAT...        51,504        26,504        51,504        34,004
SPACE BASED INFRARED ARCHITECTURE (SPACE)--DEM/VAL......       222,401       217,401       222,401       217,401
NATO RESEARCH AND DEVELOPMENT...........................        13,433  ............        13,433        11,000
INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.............        32,837        49,337        32,837        49,337
GLOBAL BROADCAST SERVICE................................        56,977        46,977        56,977        56,977
VARIABLE STABILITY IN-FLIGHT SIMULATOR TEST AIRCRAFT....  ............  ............         8,000         6,000
INTEGRATED AVIONICS PLANNING AND DEVELOPMENT............        16,494        12,994        16,494        16,494
B-1B....................................................       216,886       222,886       216,886       220,886
SPECIALIZED UNDERGRADUATE PILOT TRAINING................        80,238        77,238        80,238        72,238
F-22 EMD................................................     2,071,234     2,077,234     1,858,234     2,077,234
EW DEVELOPMENT..........................................        78,465        65,965        82,308        80,465
MUNITIONS DISPENSER DEVELOPMENT.........................        18,076        15,900        18,076        19,676
JOINT DIRECT ATTACK MUNITION............................        19,553        15,353        19,553        24,553
LIFE SUPPORT SYSTEMS....................................         3,726         5,726         3,726         4,726
COMPUTER RESOURCE TECHNOLOGY TRANSITION (CRTT)..........         1,459         6,459         1,459         4,459
JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM)...........       203,321  ............       107,021       128,000
JSLAM...................................................  ............        63,000  ............        43,021
THREAT SIMULATOR DEVELOPMENT............................        51,846        50,346        56,746        54,346
MAJOR T&E INVESTMENT....................................        47,336        62,136        41,336        56,336
TEST AND EVALUATION SUPPORT.............................       389,348       386,348       389,348       387,848
DEVELOPMENT PLANNING....................................         6,049         6,049         4,549         4,549
POLLUTION PREVENTION....................................         5,880         5,880        10,880         9,880
ROCKET SYSTEMS LAUNCH PROGRAM (SPACE)...................         8,013        33,013         8,013        28,013
MAINTENANCE AND REPAIR (RPM)--RDT&E.....................        55,200        55,200        58,000        56,000
ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM).......        50,781        33,781        50,781        43,781
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...........        93,122       115,122        93,122       103,122
AGM-86C CONVENTIONAL AIR-LAUNCHED CRUISE MISSILE SYS....  ............         3,500         3,500  ............
AIRBORNE WARNING AND CONTROL SYSTEM (AWACS).............        46,807        47,807        46,807        46,807
ADVANCED PROGRAM TECHNOLOGY.............................        95,056        95,056        71,556       100,056
THEATER BATTLE MANAGEMENT (TBM) C4I.....................        24,013        24,013        28,013        27,013
JOINT SURVEILLANCE AND TARGET ATTACK RADAR SYSTEM.......       119,189       123,189       124,189       126,189
ADVANCED PROGRAM EVALUATION.............................       214,011       224,011       205,219       223,019
WORLD-WIDE MILITARY COMMAND AND CONTROL SYSTEMS.........         6,820         7,820         6,820         7,820
AIR TRAFFIC CONTROL, APPROACH, AND LANDING SYSTEM.......         6,571         6,571        13,471        13,471
SECURITY AND INVESTIGATIVE ACTIVITIES...................           530         1,530           530         3,530
TITAN SPACE VEHICLES (SPACE)............................        82,384        67,384        82,384        74,884
DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.................  ............        14,990  ............        14,990
SPACETRACK (SPACE)......................................        28,573        28,573        36,073        43,073
C-17 AIRCRAFT...........................................       113,605       113,605       113,605       110,605
AIR CARGO MATERIAL HANDLING (463-L) (NON-IF)............         7,947         3,447         7,947         5,947
PRODUCTIVITY, RELIABILITY, AVAILABILITY, MAINTAIN PRO...         1,032        12,032        11,032        19,032
NATO JOINT STARS........................................        36,061        18,061        23,061        26,061
COBRA BALL (FLD)........................................  ............  ............        12,000        12,000
CLASSIFIED PROGRAM......................................     4,684,348     4,633,315     4,640,248     4,648,415
ECONOMIC ASSUMPTIONS....................................  ............  ............       -76,000       -76,000
GENERAL REDUCTION.......................................  ............        -2,000  ............  ............
----------------------------------------------------------------------------------------------------------------


[[Page H7701]]


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                              Budget        House        Senate      Conference
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences................................      226,832      183,332       222,249       207,249
    Reduction............................................  ...........      -48,500   ............      -18,000
    Center for Adaptive Optics...........................  ...........        5,000   ............        3,000
    Sacramento Peak Observatory..........................  ...........         (650)         (650)         (650)
    Math and computer science............................  ...........  ............       -2,755        -2,755
    Electronics..........................................  ...........  ............       -1,828        -1,828
Materials................................................       70,224       73,224        71,224        73,224
    Composite shelters...................................  ...........        3,000   ............        2,000
    Inorganic/organic optical limiters...................  ...........  ............        1,000         1,000
Aerospace Propulsion.....................................       69,303       69,303        60,577        60,577
    Turbine engine technology............................  ...........  ............       -6,861        -6,861
    High thermal stability hydrocarbon fuel..............  ...........  ............       -1,865        -1,865
Aerospace Avionics.......................................       69,401       68,061        66,484        64,144
    Reduction............................................  ...........       -1,340   ............       -1,340
    Photonic and A-to-D Technology.......................  ...........  ............       -2,701        -2,701
    Intertial navigation unit components.................  ...........  ............       -3,216        -3,216
    Environmental laser mapping..........................  ...........  ............        3,000         2,000
Hypersonic Technology Program............................        9,840        9,840        12,840         9,840
    Hypersonic wind tunnel design study..................  ...........  ............        3,000             0
Phillips Lab Exploratory Development.....................      111,136      131,636       112,009       127,259
    Phase III terabit fiber optic technology.............  ...........        8,000   ............        6,000
    Mightysat............................................  ...........       10,000   ............        5,000
    IHPRPT...............................................  ...........        7,500         2,000         4,750
    Tactical missile propulsion..........................  ...........  ............       -3,127        -3,127
    Coherent laser diode arrays..........................  ...........  ............       -3,000        -1,500
    HAARP................................................  ...........  ............        5,000         5,000
Command Control and Communications.......................       86,067       89,067        86,067        88,567
    Protein memory.......................................  ...........        3,000   ............        2,500
Advanced Materials for Weapon Systems....................       20,596       26,596        30,096        28,096
    IR signature suppresion coatings.....................  ...........        6,000         6,000         5,000
    Electrochemical fatigue sensing with mechanical        ...........  ............        3,500         2,500
     stimulation for turbines............................
Aerospace Propulsion Subsystems Integration..............       30,564       28,318        27,031        24,785
    Reduction............................................  ...........       -2,246   ............       -2,246
    Aircraft propulsion subsystem........................  ...........  ............       -3,533        -3,533
Aerospace Structures.....................................       15,032       10,423        15,032        10,423
    Reduction............................................  ...........       -4,609   ............       -4,609
Aerospace Propulsion and Power Technology................       37,014       37,014        35,183        35,183
    Advanced turbine engine gas generator................  ...........  ............       -1,831        -1,831
Crew Systems and Personnel Protection Technology.........       17,204       26,204        17,204        26,204
    Ejection seat technology.............................  ...........        5,000   ............        5,000
    Helmet display technology............................  ...........        3,000   ............        3,000
    Laser eye protection.................................  ...........        1,000   ............        1,000
Flight Vehicle Technology Integration....................        7,795        6,423         7,795         6,423
    Reduction............................................  ...........       -1,372   ............       -1,372
Electronic Combat Technology.............................       25,621       30,871        24,121        34,371
    CLIRCM...............................................  ...........        5,250   ............        3,750
    Laser based IR countermeasures.......................  ...........  ............       -1,500             0
    ALR-69 PLAID.........................................  ...........  ............  ............        5,000
Space and Missile Rocket Propulsion......................       16,247       30,047        16,247        18,847
    IHPRPT...............................................  ...........        3,800   ............        1,900
    Scorpius.............................................  ...........       10,000   ............            0
Ballistic Missile Technology.............................            0        8,000             0         8,000
    Radiation hardened electronics.......................  ...........        8,000   ............        3,200
    Missile Technology Demonstration (MTD) flight testing  ...........  ............  ............        4,800
Advanced Spacecraft Technology...........................       40,846       72,846       100,846        98,346
    Military spaceplane..................................  ...........       15,000   ............       10,000
    Solar thermionics orbital transfer vehicle...........  ...........       10,000        10,000         7,500
    Miniature threat satellite reporting system..........  ...........        7,000   ............        5,000
    Clementine...........................................  ...........  ............       50,000        30,000
    Scorpius (transfer from Space and Missile Rocket       ...........  ............  ............        5,000
     Propulsion).........................................
Conventional Weapons Technology..........................       26,227       28,227        23,187        24,687
    Optical correlator technology........................  ...........        2,000   ............        1,500
    Next generation air to air threats...................  ...........  ............       -3,040        -3,040
Advanced Weaons Technology...............................       41,238       56,238        59,238        55,238
    Geo space object imaging.............................  ...........       10,000        15,000        10,000
    LIME.................................................  ...........        5,000   ............            0
    High energy laser technology.........................  ...........  ............       -3,000        -2,000
    Field LADAR Demonstrator (FLD) upgrades..............  ...........  ............        6,000         6,000
C3 Advanced Development..................................       12,897       12,897        13,897        13,647
    Survivable asynchronous transfer mode................  ...........  ............        1,000           750
Advanced MILSATCOM (SPACE)...............................       41,448       41,000        41,448        41,000
    Program management...................................  ...........         -448   ............         -448
National Polar-Orbiting Operational Environment..........       51,504       26,504        51,504        34,004
    Schedule delays......................................  ...........      -25,000   ............      -17,500
Space and Missile Rocket Propulsion......................      222,401      217,401       222,401       217,401
    Program management and FFRDC.........................  ...........       -5,000   ............       -5,000
NATO Research and Development............................       13,433            0        13,433        11,000
    Reduction............................................  ...........      -13,433   ............       -2,433
Intercontinental Ballistic Missile--DEMVAL...............       32,837       49,337        32,837        49,337
    Conventional ballistic missle........................  ...........       16,500   ............       16,500
Global Broadcast Service.................................       56,977       46,977        56,977        56,977
    Schedule delays......................................  ...........      -10,000   ............            0
Integrated Avionics Planning and Development.............       16,494       12,994        16,494        16,494
    JHMCS EMD Award......................................  ...........       -3,500   ............            0
B-1B.....................................................      216,886      222,886       216,886       220,886
    ECOs.................................................  ...........       -7,000   ............       -4,000
    JSOW/JSLAM Integration...............................  ...........       13,000   ............        8,000
Specialized Undergraduate Pilot Training.................       80,238       77,238        80,238        72,238
    T-38 schedule delays.................................  ...........       -3,000   ............       -3,000
    JPATS GBTS contract savings..........................  ...........  ............  ............       -5,000
F-22 EMD.................................................    2,071,234    2,077,234     1,858,234     2,077,234
    Out of Production Parts (OPP) redesign...............  ...........        6,000   ............        6,000
    Termination liability................................  ...........  ............     -213,000             0
EW Development...........................................       78,465       65,965        82,308        80,465
    F-15 IDECM delay.....................................  ...........       -6,000   ............       -3,000
    F-15 CMWS............................................  ...........       -6,500   ............       -2,000
    CMWS.................................................  ...........  ............       -6,157             0
    Advanced flares for the C-17 and B-1.................  ...........  ............       10,000         7,000
Munitions Dispenser Development..........................       18,076       15,900        18,076        19,676
    WCMD Contract Savings................................  ...........       -1,300   ............       -1,300
    WCMD operational assets..............................  ...........         -862   ............         -862
    Transfer savings from procurement account............  ...........  ............  ............        3,762
Joint Direct Attack Munition.............................       19,553       15,353        19,553        24,553
    Excess funds.........................................  ...........       -4,200   ............            0
    Transfer from procurement............................  ...........  ............  ............        5,000
Life Support Systems.....................................        3,726        5,726         3,726         4,726
    Ejection seats.......................................  ...........        2,000   ............        1,000
Computer Resource Technology Transition (CRTT)...........        1,459        6,459         1,459         4,459
    NPLACE/PLAS..........................................  ...........        5,000   ............        3,000
Intercontinental Ballistic Missile--EMD..................      137,944      152,944       152,944       152,944

[[Page H7702]]

 
    MK-21 Guidance Replacement Program...................  ...........       15,000        15,000        15,000
Joint Air-to-Surface Standoff Missile (JASSM)............      203,321            0       107,021       128,000
    Cancel program.......................................  ...........     -203,321   ............            0
    Weapon system development............................  ...........  ............      -18,200             0
    Test support.........................................  ...........  ............      -49,400             0
    Program office/mission support.......................  ...........  ............      -10,900             0
    Aircraft integration costs...........................  ...........  ............      -17,800             0
    Alternate engine source study........................  ...........  ............        (5000)        1,000
    Reduction pending AOA decision.......................  ...........  ............  ............      -76,321
JSLAM....................................................            0       63,000             0        43,021
Threat Simulator Development.............................       51,846       50,346        56,746        54,346
    SADS-2b/f............................................  ...........       -1,500   ............       -1,500
    Digital integrated air defense system................  ...........  ............        2,400         2,000
    Digital IADS integration with ECIT...................  ...........  ............        2,000         1,500
    Airborne radar maintenance...........................  ...........  ............          500           500
Major T&E Investment.....................................       47,336       62,136        41,336        56,336
    Modernization of Eglin range C4I capabilities........  ...........       14,800   ............       10,000
    Reduction............................................  ...........  ............       -6,000        -3,000
    Hypersonic wind tunnel design study (transfer from     ...........  ............  ............        2,000
     0602269F)...........................................
Test and Evaluation Support..............................      389,348      386,348       389,348       387,848
    Unjustified aircraft support growth..................  ...........       -3,000   ............       -1,000
    Prior year unobligated funds.........................  ...........       -8,000   ............       -6,500
    South Base Birk flight test facility.................  ...........        8,000   ............        6,000
Development Planning.....................................        6,049        6,049         4,549         4,549
    Reduction............................................  ...........  ............       -1,500        -1,500
Pollution Prevention.....................................        5,880        5,880        10,880         9,880
    E-SMART..............................................  ...........  ............        5,000         4,000
Maintenance and Repair (RPM)--RDT&E......................       55,200       55,200        58,000        56,000
    Landing gear life extension..........................  ...........  ............        6,000         4,000
    Infrastructure support...............................  ...........  ............       -3,200        -3,200
Advanced Medium Range Air-to-Air Missile (AMRAAM)........       50,781       33,781        50,781        43,781
    Rephased upgrade efforts.............................  ...........      -14,000   ............       -4,000
    P3I Phase III........................................  ...........       -3,000   ............       -3,000
AGM-86C Conventional Air Launched Cruise Missile.........            0        3,500         3,500             0
    Hard target penetrator variant.......................  ...........        3,500         3,500             0
Airborne Warning and Control System (AWACS)..............       46,807       47,807        46,807        46,807
    Extend Sentry........................................  ...........        1,000   ............            0
Theater Battle Management (TBM) C4I......................       24,013       24,013        28.013        27,013
    Theater Battle Management Core Systems (TBMCS).......  ...........  ............        4,000         3,000
Joint Surveillance and Target Attack Radar System........      119,189      123,189       124,189       126,189
    Improved Data Modem..................................  ...........        4,000   ............        4,000
    Cruise missile defense technology....................  ...........  ............        5,000         3,000
World-Wide Military Command and Control Systems..........        6,820        7,820         6,820         7,820
    Integration of JSAS into GCCS........................  ...........        1,000   ............        1,000
Air Traffic Control, Approach, and Landing System........        6,571        6,571        13,471        13,471
    Air traffic control simulators.......................  ...........  ............        6,900         6,900
Security and Investigative Activities....................          530        1,530           530         3,530
    AFOSI computer crime investigations program..........  ...........        1,000   ............        1,000
    Defensive Information Warfare and Critical             ...........  ............  ............        2,000
     Infrastructure Protection...........................
SPACETRACK (SPACE).......................................       28,573       28,573        36,073        43,073
    AEOS development and integration with MSSS...........  ...........  ............        7,500         7,500
    Have Stare upgrade to support missile defense testing  ...........  ............  ............        7,000
Air Cargo Material Handling..............................        7,947        3,447         7,947         5,947
    Next Generation Small Loader test funding              ...........       -4,500   ............       -2,000
     requirements........................................
Industrial Preparedness..................................       48,429       48,429        48,429        48,429
    National Technology Transfer Center..................  ...........        (1000)  ............            0
Productivity, Reliability, Availability, Maintainability         1,032       12,032        11,032        19,032
 Program.................................................
    Aging aircraft improvements..........................  ...........       11,000   ............       10,000
    Blade repair facility................................  ...........  ............       10,000         8,000
NATO JSTARS..............................................       36,061       18,061        23,061        26,061
    Lack of NATO decision................................  ...........      -18,000   ............            0
    Phase II proposal preparation........................  ...........  ............       -3,000        -3,000
    Interim logistics support long lead..................  ...........  ............      -10,000        -7,000
COBRA BALL (FLD).........................................            0            0        12,000        12,000
    Advanced Airborne Sensor.............................  ...........  ............       12,000        12,000
----------------------------------------------------------------------------------------------------------------

                     advanced spacecraft technology

       The conferees recommend a Solar Thermionic Orbital Transfer 
     Vehicle program that balances designing the flight 
     demonstrator with further development of key technologies 
     including thermionics, high temperature materials for power 
     and propulsion, and direct gain propulsion utilizing 
     lightweight inflatable collectors.


   national polar-orbiting operations environmental satellite system

                                (npoess)

       The conferees agree to provide $34,004,000 for the National 
     Polar-Orbiting Operational Environmental Satellite System 
     (NPOESS), a decrease of $17,500,000. The conferees direct the 
     Deputy Under Secretary of Defense for Space (DUSD (Space)) to 
     conduct an architectural review of the defense space-based 
     meteorological mission area as part of the fiscal year 1998 
     program plan. DUSD (Space) is further directed to submit to 
     the conferees a report detailing its plans to conduct the 
     review no later than January 1, 1998.


                  space based infrared system (SBIRS)

       The conferees are concerned that the Air Force has retained 
     the present developer of the SBIRS high component as the 
     overall system of systems engineer for the entire program. 
     The conferees believe that the potential exists for conflict 
     of interest since the SBIRS high component developer will 
     compete for the SBIRS low component of the program.
       While the Air Force has taken certain measures to attempt 
     to ensure the fairness of the SBIRS low competition, the 
     conferees believe that it would be appropriate for the Under 
     Secretary of Defense for Acquisition and Technology to review 
     any Air Force implementation plan formulated to avoid 
     conflicts of interest in the SBIRS low component competition. 
     The conferees therefore, direct the USD (A&T) to certify to 
     the congressional defense committees that tha Air Force's 
     ``SBIRS Organizational Conflict of Interest Mitigation Plan 
     for the SBIR Low Component Program'' adequately safeguards 
     the objectivity of the competition for the SBIR Low program. 
     If it is determined that the Air Force's risk mitigation plan 
     does not ensure a fair competition, the congressional defense 
     committees shall be notified and provided such 
     recommendations as the USD (A&T) determines are necessary to 
     ensure a fair competition, protect proprietary data, and 
     mitigate potential SBIR high component program developer 
     bias. The certification shall be provided no later than March 
     31, 1998.
       The conferees further direct that the Deputy Under 
     Secretary of Defense for Space, DUSD (Space), review any 
     final allocation of requirements between the SBIRS high and 
     low component to determine whether such allocations are 
     justified on the basis of cost and performance. The conferees 
     direct that the results of this review be provided to the 
     congressional defense committees.


                evolved expendable launch vehicle (eelv)

       The conferees note that the Evolved Expendable Launch 
     Vehicle (EELV) program is an important step in reducing the 
     Department of Defense's space launch costs, and that two 
     industry teams are now competing for a contract to develop an 
     EELV. The conferees believe that the Air Force should require 
     that a successful bidder share in the development cost of the 
     EELV, system. In addition the conferees expect that the Air 
     Force will recognize the commercial requirements of the EELV 
     and allow industry to develop system solutions to meet these 
     needs. Therefore, the conferees agree to the House language 
     which directs the Air Force to include as significant factors 
     in the EELV acquisition the degree to which the competitive 
     proposals include the commercial needs of the U.S. launch 
     vehicle industry as well as government compensation and cost 
     recoupment offers from the EELV competitors. The Under 
     Secretary of Defense for Acquisition and Technology is also 
     directed to provide the congressional defense committees not 
     later than June 1, 1998, a revised

[[Page H7703]]

     EELV Single Acquisition and Management Plan (SAMP) that 
     addresses these concerns.


                 joint air-to-surface standoff missile

                   joint standoff land attack missile

       The conferees have provided a total of $171,021,000 for the 
     Joint Air-to-Surface Standoff Missile (JASSM)/Joint Standoff 
     Land Attack Missile (JSLAM) program. Within the JASSM program 
     element, the conferees direct that the first priority for the 
     available funds shall be to maintain competition on the 
     program and to avoid an early decision to select a single 
     contractor. The funds within this program element are 
     provided to continue the JASSM program through completion of 
     the Analysis of Alternatives (AOA).
       The conferees have also provided $43,021,000 in a JSLAM 
     program element. The conferees direct that none of the JSLAM 
     funds may be obligated until the Secretary of Defense 
     notifies the congressional defense committees regarding the 
     acquisition strategy the Defense Department chooses to pursue 
     based on the results of the JASSM AOA. The conferees direct 
     that the JSLAM program element funds shall be available for 
     the option recommended by the Secretary of Defense.


                         cruise missile defense

       The conferees are concerned about the growing threat posed 
     by advanced air-launched and surface-launched cruise missiles 
     and urge the Department to pursue an enhanced capability on 
     the AWACS to detect, track, and identify cruise missiles. The 
     conferees direct the Air Force to provide a report on their 
     specific schedule and funding plans for continued development 
     of this needed capability.


                              nato jstars

       The conferees agree that none of the funds can be 
     reprogrammed out of the NATO JOINT STARS program element 
     without the prior approval of the congressional defense 
     committees. The conferees agree to place no further 
     restrictions on these funds.

        Research, Development, Test and Evaluation, Defense-wide

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL DEFWIDE
    IN-HOUSE LABORATORY INDEPENDENT RESEARCH....           2,169  ..............           2,169           1,569
    DEFENSE RESEARCH SCIENCES...................          76,009          70,000          76,009          70,000
    UNIVERSITY RESEARCH INITIATIVES.............         237,788         215,212         251,788         230,788
    GOVERNMENT/INDUSTRY COSPONSORSHIP OF UNIV             14,713  ..............           9,713           7,713
     RESEARCH...................................
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....          25,190          28,690          25,190          27,190
    NEXT GENERATION INTERNET....................          40,000          50,000          10,000          42,000
    SUPPORT TECHNOLOGIES--APPLIED RESEARCH......         101,932         141,932         115,932         113,932
    LINCOLN LABORATORY RESEARCH PROGRAM.........          20,474          13,730          20,474          18,474
    COMPUTING SYSTEMS AND COMMUNICATIONS                 341,752         325,057         344,252         327,557
     TECHNOLOGY.................................
    BIOLOGICAL WARFARE DEFENSE..................          61,600          61,600          55,100          59,600
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....          60,023          75,323          66,023          73,023
    TACTICAL TECHNOLOGY.........................         157,329         126,244         158,329         151,329
    INTEGRATED COMMAND AND CONTROL TECHOLOGY....          37,000          39,000          55,000          49,000
    MATERIALS AND ELECTRONICS TECHNOLOGY........         192,192         208,192         224,692         237,692
    DEFENSE SPECIAL WEAPONS AGENCY..............         211,971         200,593         226,971         212,593
    DEMINING....................................           7,663           7,663          18,063          16,663
    COUNTERROR TECHNICAL SUPPORT................          34,863          34,863          40,863          40,863
    COUNTERPROLIFERATION SUPPORT--ADV DEV.......          58,264          67,264          61,264          68,264
    SUPPORT TECHNOLOGIES--ADVANCED TECHNOLOGY            147,557         147,557         351,957         311,557
     DEVELOPMENT................................
    JOINT DOD-DOE MUNITION TECHNOLOGY                     16,141          16,141          17,700          17,700
     DEVELOPMENT................................
    AUTOMATIC TARGET RECOGNITION................           4,789           5,989           4,789           6,789
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--             41,223          50,773          41,233          41,223
     ADVANCED DEV...............................
    SPECIAL TECHNICAL SUPPORT...................          11,750           9,750          14,750          11,750
    VERIFICATION TECHNOLOGY DEMONSTRATION.......          83,370          69,070          73,370          84,370
    GENERIC LOGISTICS R&D TECHNOLOGY                      17,267          23,867          24,867          22,267
     DEMONSTRATIONS.............................
    STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM....          54,874          61,874          57,874          61,874
    JOINT WARFIGHTING PROGRAM...................          14,172          14,172           9,172           9,172
    AGILE PORT DEMONSTRATION....................  ..............  ..............          10,000           5,000
    ADVANCED ELECTRONICS TECHNOLOGIES...........         277,044         285,044         295,044         299,044
    ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS..         121,076          61,076         101,076          81,076
    COMMERCIAL TECHNOLOGY INSERTION PROGRAM.....          47,889  ..............          20,000          20,000
    ELECTRONIC COMMERCE RESOURCE CENTERS........          14,972          47,972          14,972          47,972
    HIGH PERFORMANCE COMPUTING MODERNIZATION             126,211         124,880         151,211         149,880
     PROGRAM....................................
    COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS.         163,800         163,800         153,800         157,800
    SENSOR AND GUIDANCE TECHNOLOGY..............         166,855         154,855         162,855         169,555
    LAND WARFARE TECHNOLOGY.....................          82,580          89,180          81,980          82,980
    DUAL USE APPLICATIONS PROGRAMS..............         225,000         100,000         125,000         125,000
    JOINT WARGAMING SIMULATION MANAGEMENT OFFICE          71,338          59,968          66,338          64,338
    PHYSICAL SECURITY EQUIPMENT.................          31,553          18,676          31,553          18,676
    JOINT ROBOTICS PROGRAM......................          23,196          23,196          32,196          28,196
    ADVANCED SENSOR APPLICATIONS PROGRAM........          15,379          15,379          18,379          18,379
    CALS INITIATIVE.............................           1,916           5,916           5,916           9,916
    NATO RESEARCH AND DEVELOPMENT...............          13,584  ..............          13,584           8,584
    ENVIRONMENTAL SECURITY TECHNICAL                      15,164          15,164          20,164          15,164
     CERTIFICATION PROGRAM......................
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--          294,647         238,647         353,427         406,127
     TMD--DEM/..................................
    NAVY THEATER WIDE MISSILE DEFENSE--DEM/VAL..         194,898         444,898         274,898         409,898
    BOOST PHASE INTERCEPT THEATER MISSILE                 12,885  ..............          17,885          16,385
     DEFENSE ACQUISIT...........................
    JOINT THEATER MISSILE DEFENSE--DEM/VAL......         542,619         542,619         612,619         605,419
    ASAT........................................  ..............  ..............          50,000          37,500
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--EMD         120,535         138,535         120,535         130,535
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--          261,480         261,480  ..............  ..............
     TMD--EMD...................................
    NAVY AREA THEATER MISSILE DEFENSE--EMD......         267,822         289,822         267,822         289,822
    TECHNICAL STUDIES, SUPPORT AND ANALYSIS.....          38,376          31,248          30,376          30,376
    JOINT THEATER AIR AND MISSILE DEFENSE                 23,100          23,100          12,900          16,100
     ORGANIZATION...............................
    CLASSIFIED PROGRAM USD(P)...................           5,979           5,979           5,979           9,079
    DEFENSE SUPPORT ACTIVITIES..................           5,992           7,492           8,992           8,992
    MANAGEMENT HEADQUARTERS (RESEARCH AND                 39,193          34,469          39,193          36,193
     DEVELOPMENT)...............................
    INFORMATION SYSTEMS SECURITY PROGRAM........         258,593         258,593         258,593         253,593
    DEFENSE IMAGERY AND MAPPING PROGRAM.........         109,430         134,430         109,430         119,430
    DEFENSE RECONNAISSANCE SUPPORT ACTIVITIES             49,403          41,003          57,403          52,503
     (SPACE)....................................
    TACTICAL UAVS...............................         122,004          60,007          34,507          54,507
    ENDURANCE UAVS..............................         216,712         192,812         216,712         192,722
    AIRBORNE RECONNAISSANCE SYSTEMS.............         212,961         193,961         201,790         196,961
    MANNED RECONNAISSANCE SYSTEMS...............          27,784          51,784          27,784          27,784
    DARP MANAGEMENT SUPPORT.....................          21,543           7,543          21,543           7,543
    COUNTERDRUG INTELLIGENCE SUPPORT............  ..............           2,500  ..............  ..............
    MANAGEMENT HEADQUARTERS (AUXILIARY FORCES)..           1,926           1,926           7,626           1,926
    PARTNERSHIP FOR PEACE ACTIVITIES............           1,993           1,993  ..............  ..............
    SPECIAL OPERATIONS ADVANCED TECHNOLOGY                 8,009           9,009           8,009           9,009
     DEVELOPMENT................................
    SPECIAL OPERATIONS TACTICAL SYSTEMS                   73,073          73,073          75,773         109,473
     DEVELOPMENT................................
    SPECIAL OPERATIONS INTELLIGENCE SYSTEMS                4,914          13,914           8,914          10,914
     DEVELOPMENT................................
    SOF OPERATIONAL ENHANCEMENTS................          26,357          32,937          17,757          23,937
    CERP........................................  ..............          12,000  ..............          10,000
    CLASSIFIED PROGRAM..........................         995,689       1,054,970       1,036,689       1,068,589
    ECONOMIC ASSUMPTIONS........................  ..............  ..............         -49,000         -49,000
----------------------------------------------------------------------------------------------------------------


                                      EXPLANATION PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                       Budget          House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
University Research Initiatives...................       237,788        215,212         251,788         230,788
    DEPSCOR.......................................  ............        +10,000         +10,000         +10,000
    Program reduction.............................  ............        -32,576              --         -20,000
    Southern Observatory for Astronomical Research  ............             --          +4,000          +3,000

[[Page H7704]]

 
    CARE..........................................  ............         (3,000)             --          (3,000)
Chemical and Biological Defense Program...........        25,190         28,690          25,190          27,190
    Non-antibiotic therapies......................  ............         +1,500              --              --
    Novel agent research..........................  ............         +2,000              --          +2,000
Support Technologies--Applied Research............       101,932        141,932         115,932         113,932
    AIT...........................................  ............        +30,000              --              --
    Wide bandgap electronics......................  ............        +10,000         +14,000         +12,000
Computing Systems and Communications Technology...       341,752        325,057         344,252         327,557
    Program reduction.............................  ............        -16,695              --         -16,695
    Reuse Technology Adoption Program (RTAP)......  ............         (7,500)         +2,500          +2,500
Chemical and Biological Defense Program...........        60,023         75,323          66,023         +73,023
    Medical Biological Research...................  ............         +9,500              --              --
    SAFEGUARD.....................................  ............         +5,800          +6,000          +3,000
    Joint Service Chem/Bio Point Detection Sensor.  ............             --          (1,500)         (1,500)
    Chemical agent sensor technology..............  ............             --              --         +10,000
Tactical Technology...............................       157,329        126,244         158,329         151,329
    Simulation based design (Gulf Coast Region      ............         +3,000              --          +3,000
     Maritime Ctr)................................
    Program reduction.............................  ............        -34,085              --         -10,000
    Compact lasers................................  ............             --          -3,000          -3,000
    Chemically specific detection.................  ............             --          -3,000          -3,000
    Center of Excellence for Researching in Ocean   ............             --          +7,000          +7,000
     Sciences.....................................
    Facial recognition technology.................  ............             --          (3,000)         (3,000)
Integrated Command and Control Technology.........        37,000         39,000          55,000          49,000
    High definition camera........................  ............         +2,000              --              --
    High definition display systems...............  ............         (4,000)             --          (4,000)
    Flat Panel Display............................  ............             --         +18,000         +12,000
    High-definition optoelectric digital camera...  ............             --          (2,000)         (2,000)
Materials and Electronics Technology..............       192,192        208,192         224,692         237,692
    Defense Microelectronics Activity.............  ............        +10,000              --         +10,000
    Nanofabrication Laboratory....................  ............         +6,000              --          +6,000
    Seamless high-off chip connectivity...........  ............             --          +7,500          +6,000
    Hard carbon based coatings....................  ............             --          +1,000          +1,000
    Multitechnology integration in mixed mode       ............             --          +9,000          +7,500
     electronics..................................
    Life support trauma and transport.............  ............             --          +4,000          +4,000
    3-D multi-chip module electronics.............  ............             --          +5,000          +5,000
    Cryogenic electronics.........................  ............             --          +6,000          +6,000
Defense Special Weapons Agency....................       211,971        200,593         226,971         212,593
    Bioenvironmental research.....................  ............         +5,000   ..............         +5,000
    Program reduction.............................  ............        -16,378   ..............        -16,378
    Nuclear weapons effects core competencies.....  ............  ..............        +15,000         +12,000
Explosive Demilitarization........................        12,259         12,259          12,259          12,259
    Cryogenic washout program.....................  ............         (2,000)  ..............         (2,000)
Demining..........................................         7,663          7,663          18,063          16,663
    Humanitarian demining technologies............  ............  ..............        +10,400          +9,000
    Mechanical clearance support..................  ............  ..............         (1,000)         (1,000)
    Remote area disassembly vehicle...............  ............  ..............         (3,000)         (2,000)
Counterterror Technical Support...................        34,863         34,863          40,863          40,863
    PFNA..........................................  ............  ..............         +3,000          +3,000
    Antibiological device (ABD)...................  ............  ..............         +3,000          +3,000
Counterproliferation Support......................        58,264         67,264          61,264          68,264
    Countrproliferation Analysis and Planning       ............         +9,000   ..............         +7,000
     Systems (CAPS)...............................
    HAARP.........................................  ............  ..............         +3,000          +3,000
Support Technologies--Advanced Technology                147,557        147,557         341,957         311,557
 Development......................................
    Advanced intercept technology.................  ............  ..............        +40,000         +30,000
    Space-based laser.............................  ............  ..............       +118,000         +98,000
    Midcourse space experiment....................  ............  ..............         +6,400          +5,000
    APEX Program..................................  ............  ..............        +10,000          +8,000
    Russian-American observational satellites       ............  ..............        +15,000         +13,000
     (RAMOS)......................................
    Photo conduction on active pixel sensor         ............  ..............         +5,000          +5,000
     technology...................................
    Scorpius......................................  ............  ..............        +10,000          +5,000
Automatic Target Recognition......................         4,789          5,989           4,789           6,789
    Optical correlators...........................  ............         +1,200   ..............  ..............
    Hyperspectral IPT.............................  ............  ..............  ..............         +2,000
Chemical and Biological Defense Program...........        41,223         50,773          41,223          41,223
    Medical biological programs...................  ............         +6,700   ..............  ..............
    Joint Service Integrated Suit (JSLIST)........  ............         +2,850   ..............  ..............
Special Technical Support.........................        11,750          9,750          14,750         +11,750
    Program reduction.............................  ............         -2,000   ..............         -2,000
    Evaluate maritime combatant craft.............  ............  ..............         +3,000          +2,000
Verification Technology...........................        83,370         69,070          73,370          84,370
    Industry-based program to accelerate nuclear    ............         +5,000   ..............         +5,000
     detection....................................
    Enhanced segregated-surface solid state         ............         +3,000   ..............         +3,000
     detectors....................................
    Russian monitoring technologies...............  ............         +3,000   ..............         +3,000
    Program reduction.............................  ............        -25,300   ..............        -10,000
    Nuclear monitoring technologies (explosion      ............         (7,100)  ..............         (7,100)
     seismology)..................................
    Hydroacoustics................................  ............           (700)  ..............           (700)
    Program reduction.............................  ............  ..............        -10,000   ..............
    Caribbean radiation early warning system        ............  ..............         (3,000)  ..............
     (CREWS)......................................
Strategic Environmental Research Program..........        54,874         61,874          57,874          61,874
    Environmental clean-up workers health and       ............         +2,000   ..............         +2,000
     safety program...............................
    Risk-based toxic chemicals research...........  ............         +2,000   ..............         +2,000
    Green energetics..............................  ............         +3,000          +3,000          +3,000
Advanced Electronics Technologies.................       277,044        285,044         295,044         299,044
    Center for Advanced Microstructures Devices     ............         +3,000   ..............  ..............
     (CAMD).......................................
    Cryoelectronics...............................  ............         +5,000   ..............  ..............
    Flat Panel Displays...........................  ............        (18,000)  ..............  ..............
    Lithographic & Alternative Semiconductor        ............  ..............        +23,000         +18,000
     Processing (LAST)............................
    Point Source x-ray lithography................  ............  ..............         +3,000          +3,000
    MT-06 program reduction.......................  ............  ..............         -3,000   ..............
    Defense Techlink rural technology transfer....  ............  ..............         +1,000          +1,000
    Center for Advanced Microstructures Devices     ............  ..............         +4,000          +4,000
     (CAMD).......................................
    MAFET.........................................  ............  ..............        -10,000          -4,000
    Institute for Advanced Flexible Manufacturing.  ............  ..............         (4,000)         (4,000)
    Laser plasma x-ray source technology..........  ............  ..............  ..............         (5,000)
High Performance Computing Modernization Program..       126,211        124,880         151,211         149,880
    Program reduction.............................  ............         -1,331   ..............         -1,331
    Operation, maintenance, and upgrade of          ............  ..............        +25,000         +25,000
     supercomputers purchased with DoD RDT&E funds
Sensor and Guidance Technology....................       166,855        154,855         162,855         169,555
    GEOSAR........................................  ............        +13,000   ..............        +10,700
    GPS Guidance Package..........................  ............         (6,000)  ..............         (6,000)
    Program reduction.............................  ............        -25,000   ..............         -5,000
    Large Millimeter Wave Telescope...............  ............  ..............         +3,000          +3,000
    Tactical Radar Program........................  ............  ..............         -7,000          -6,000
Marine Technology.................................        69,143         21,943          21,943          21,943
    Arsenal Ship..................................  ............        -47,200         -47,200         -47,200
    Smart anti-submarine warfare and sonar STAP...  ............         (6,000)  ..............         (4,000)
Land Warfare Technology...........................        82,580         89,180          81,980          82,980
    Active structural control.....................  ............         +6,600          +4,400          +5,400
    Small unit operations.........................  ............  ..............         -5,000          -5,000
CALS Initiative...................................         1,916          5,916           5,916           9,916

[[Page H7705]]

 
    Integrated Data Environment (IDE).............  ............         +4,000          +4,000          +4,000
    RAMP..........................................  ............  ..............  ..............         +4,000
Joint Theater Missile Defense--Dem/Val............       542,619        542,619         612,619         605,419
    Extended air defense testbed..................  ............  ..............         +9,600          +7,800
    Advanced Research Center (ARC)................  ............  ..............         +7,000          +7,000
    ARROW.........................................  ............  ..............        +15,000         +12,000
    Kauai test facility...........................  ............  ..............         +5,000          +5,000
    Upgrades for theater missile defense (PMRF)...  ............  ..............        +33,400         +31,000
Chemical and Biological Defense Program--EMD......       120,535        138,535         120,535         130,535
    Joint vaccine program.........................  ............         +8,000   ..............         +5,000
    Decontamination technology....................  ............        +10,000   ..............         +5,000
Defense Imagery and Mapping Program...............       109,430        134,430         109,430         119,430
    SAR imagery...................................  ............        +25,000   ..............         +5,000
    USIGS Improv..................................  ............  ..............  ..............         +5,000
Defense Reconnaissance Support Activities (Space).        49,403         41,003          57,403          52,503
    Program reduction.............................  ............         -8,400   ..............         -4,900
    Pacific Disaster Center.......................  ............  ..............         +8,000          +8,000
Tactical UAVS.....................................       122,004         60,007          34,507          54,507
    Outrider......................................  ............        -87,497         -87,497         -87,497
    TCS for the Predator..........................  ............        +11,500   ..............         +8,000
    MSAG..........................................  ............         +4,000   ..............         +4,000
    Vertical takeoff and landing..................  ............        +10,000   ..............         +8,000
Endurance UAVS....................................       216,712        192,812         216,712         192,722
    Predator transfer.............................  ............        -14,900   ..............        -14,900
    HAE Ground Support............................  ............         -9,000   ..............         -9,000
Airborne Reconnaissance Systems...................       212,961        193,961         201,790         196,961
    JMTE Advanced Technology......................  ............         +8,000   ..............  ..............
    E-O Framing technology........................  ............        +15,000   ..............         +7,000
    ABIT System Test and Evaluation...............  ............         +3,000   ..............         +1,000
    JASA Standards................................  ............         -3,000   ..............         -3,000
    HFE Development...............................  ............         -3,000   ..............         -3,000
    Global Hawk SIGINT............................  ............        -16,200         -16,200         -16,200
    JSAF high band subsystem......................  ............        -25,800          +5,000          -1,800
    High Data Rate Lasercom Sys...................  ............         +3,000   ..............  ..............
Special Operations Tactical Systems Development...        73,073         73,073          75,773         109,473
    Remote act munitions..........................  ............  ..............         +1,000   ..............
    Helmet........................................  ............  ..............         +1,700   ..............
    Advanced Seal Delivery System.................  ............  ..............              ,        +,36,400
Special Operations Intelligence Systems                    4,914         13,914           8,914          10,914
 Development......................................
    Enhancements for Special Ops Intelligence       ............         +5,000   ..............         +3,000
     Vehicle......................................
    Joint Threat Warning System (JTWS)............  ............         +4,000          +4,000          +3,000
SOF Operational Enhancements......................        26,357         32,937          17,757          23,937
    Special Tech Assault Craft....................  ............         +5,800   ..............         +5,800
    Classified....................................  ............           +780   ..............           +780
    .50 calibre ball ammo.........................  ............  ..............           +400   ..............
    Program reduction.............................  ............  ..............         -9,000          -9,000
----------------------------------------------------------------------------------------------------------------

                    missile feasibility assessments

       The conferees note the past success achieved by the 
     Countermeasures Hands-On Program (CHOP) and Hands-On Threat 
     Demonstration (HTD) programs in assessing the feasibility of 
     countermeasures to ballistic missile defense programs and 
     cruise missile threats to the United States. The conferees 
     believe a similar program to assess the feasibility of the 
     development of long-range ballistic missile capabilities by 
     rouge or other states will be useful in assessing potential 
     missile threats to the United States. Accordingly, the 
     conferees provide $2,400,000 to the CHOP program from the 
     amount provided for National Missile Defense for the 
     initiation of an effort to demonstrate the feasibility of 
     building and testing a long-range ballistic missile using 
     open source literature and materials likely to be available 
     to potential rouge nations. The effort shall be conducted 
     using the same approach employed by the CHOP and HTD 
     programs.
       Furthermore, of the amount provide for National Missile 
     Defense Demonstration and Validation (Program Element 
     0603871C), not less than $150,000 shall be provided to the 
     HTD Program for completion of cruise missile flight testing.


             electronic commerce resource centers (ecrc's)

       The conferees direct that the establishment of additional 
     ECRC sites shall be based on a Department of Defense analysis 
     of regional needs, with priority given to States not 
     currently having such a facility already established.


                       ecrc performance measures

       The conferees believe that significant cost saving benefits 
     will be derived from the government adopting and using 
     electronic commerce (EC) and electronic data interchange 
     (EDI) in its business functions. The conferees view 
     Electronic Commerce Resource Centers as a key element in 
     advancing the Department's process of transferring its 
     business process from a paper to electronic medium, 
     especially as this process is implemented with small and 
     medium size businesses. The conferees are aware that it has 
     proven difficult to assess how effective the ECRC concept has 
     been given the many variables that affect the pace and 
     efficiency at which DoD and the rest of the federal 
     government convert from paper-based management functions to 
     EC/EDI. Nevertheless, the conferees believe better program 
     performance measures must be established for the ECRC program 
     to help implement a policy of making the ECRC's essentially 
     self-sustaining over a five-year period to measure their 
     comparative value to DoD, and to evaluate methods to improve 
     EC outreach, education and training, and technical support to 
     both government and industry. The Department is directed to 
     work with the ECRC integrators to develop a set of 
     performance indicators (metrics) for the ECRCs that (1) focus 
     on their ability to become self-sustaining, (2) prove their 
     value in the market place, (3) encourage them to support and 
     aid the government effort to develop FACENET or other forms 
     of electronic commerce, (4) measure their value to DoD 
     relative to one another, (5) keep their operating costs low, 
     (6) track the number of instances in which a customer adopts 
     or expands use of EC/EDI, and (7) measure customer 
     satisfaction.


                          atmospheric research

       The conferees understand that the Ballistic Missile Defense 
     Organization has expressed interest in the development of a 
     pan-oceanic environmental and atmospheric research 
     laboratory. The conferees would encourage the Defense 
     Department to allocate funding within BMDO to initiate this 
     program during fiscal year 1998. The conferees expect to 
     address additional funding for this program in fiscal year 
     1999.


                  materials and electronics technology

       The conferees have provided $5,000,000 to be used only for 
     3-D multi-chip module (MCM) electronics. Thee funds will be 
     used to develop and demonstrate key technologies behind a 
     packaging concept that uses a stacked MCM approach to reduce 
     interconnect length and increase physical connectivity 
     between layers of electronics.


                       support technologies--bmdo

       The conferees direct that the $13,000,000 provided for the 
     Russian-American Observational Satellites (RAMOS) program 
     shall be available only for the RAMOS program.


                          vtol uav technology

       The conferees agree to provide $8,000,000 to continue the 
     development of a Vertical Takeoff and Landing (VTOL) unmanned 
     aerial vehicle (UAV) and to initiate a demonstration program 
     of future VTOL UAV technology, which should include 
     demonstrating a stopped rotor, high speed, and reaction 
     driven concept. The development and acquisition strategy for 
     this demonstration program should be coordinated with the 
     Navy Science and Technology Requirements Office.


                             endurance UAVS

       The conferees agree to a $9,000,000 reduction for HAE 
     support. This reduction shall not be applied against the 
     development and testing for the two HAE common ground 
     segments.


             university affiliated research centers (UARCS)

       The conferees believe that a UARC should be defined as a 
     university receiving more than $10,000,000 in sole source 
     non-competitive contracts.


                     institute for defense analyses

       The conferees do not agree to place restrictions on funds 
     for the Institute for Defense Analyses proposed by the House, 
     since the Defense Department has recently indicated

[[Page H7706]]

     its willingness to provide classified tactical aircraft IDA 
     studies to the Appropriations Committees.

               Developmental Test and Evaluation, Defense

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DEVELOPMENTAL TEST & EVAL. DEFENSE:
    CENTRAL TEST AND EVALUATION INVESTMENT DEVELOPMENT (CT..      131,353      131,353      116,353      123,353
    ECONOMIC ASSUMPTIONS....................................  ...........  ...........       -2,000       -2,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DEVELOPMENTAL TEST AND EVALUATION, DEFENSE:
    CENTRAL TEST AND EVALUATION INVESTMENT..................      131,353      131,353      116,353      123,353
        PROGRAM REDUCTION...................................  ...........  ...........      -15,000       -8,000
        ECONOMIC ASSUMPTIONS................................  ...........  ...........       -2,000       -2,000
----------------------------------------------------------------------------------------------------------------

                    national assessment group (nag)

       The conferees recognize the critical requirement for this 
     activity and its mission as outlined in its charter, and 
     direct that, at the beginning of fiscal year 1998, $4,654,973 
     in Defense, Test and Evaluation Program Element 0605804D be 
     transferred to Assessment and Evaluation Program Element 
     0604942D. This transfer is required to establish the National 
     Assessment Group as a fully operational and autonomous 
     organization. It is directed that outyear funding for NAG be 
     included in PE 0604942D.

                Operational Test and Evaluation, Defense

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
OPERATIONAL TEST & EVALUATION, DEFENSE:
    OPERATIONAL TEST AND EVALUATION.........................       13,187       13,187       21,187       17,187
    LIVE FIRE TESTING.......................................       10,197       19,497       10,197       14,197
----------------------------------------------------------------------------------------------------------------


                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Operational Test and Evaluation.............................       13,187       13,187       21,187       17,187
    Operational field testing...............................  ...........  ...........       +8,000       +4,000
Live fire testing...........................................       10,197       19,497       10,197       14,197
    Simulation and modeling.................................  ...........       +9,300  ...........       +4,000
----------------------------------------------------------------------------------------------------------------

                    operational test and evaluation

       The conferees agree to provide $4,000,000 for operational 
     field assessments. However, the conferees are concerned about 
     the widely differing views within the Department of Defense 
     on this issue. To clarify this situation, the conferees 
     direct the Joint Staff Director for Force Structure, 
     Resources and Assessment (J-8) to conduct a thorough review 
     of all aspects of operational field assessments. The review 
     should assess past and current efforts, potential duplication 
     of existing assessment capabilities, users of the assessment 
     program, and the roles of possible participants, to include 
     OT&E, the Services, NRO, DIA, and others as appropriate.
       The report is to be provided to the Committees on 
     Appropriations by March 30, 1998. The conferees direct that 
     the funds provided for operational field assessments shall 
     not be obligated until the required report is provided to 
     Congress.

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

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

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Defense Working Capital Funds...................          33,400         971,942         871,952         971,952
Military Commissary Fund, Defense...............         938,552  ..............  ..............  ..............
National Defense Sealift Fund...................       1,191,426       1,199,926         516,126       1,074,948
                                                 ---------------------------------------------------------------
      Total, Revolving and Management Funds.....       2,163,378       2,171,878       1,388,078       2,046,900
----------------------------------------------------------------------------------------------------------------

                     Defense Working Capital Funds

       The conferees agree to provide $971,952,000 for the Defense 
     Working Capital Fund. The conferees agree to merge funding 
     for operations of the Defense Commissary Agency into the 
     Defense working capital fund rather than including such 
     funding in a separate account.

                     National Defense Sealift Fund

       The conferees agree to provide $1,074,948,000. This 
     includes reductions of $131,000,000 for cost adjustments on 
     previous LMSR conversion ships which can be deferred until 
     fiscal year 1999 and $478,000 of excess advance procurement 
     funds for new LMSR construction. The agreement also includes 
     $15,000,000 only for procurement of lighterage.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Defense Health..................................      10,301,650      10,309,750      10,317,675      10,369,075
Chemical Agents and Munitions Destruction,               620,700         595,700         609,700         600,700
 Defense........................................
Drug Interdiction and Counter-Drug Activities,           652,582         713,082         691,482         712,882
 Defense........................................
Office of the Inspector General.................         138,380         142,980         135,380         138,380
                                                 ---------------------------------------------------------------
      Total, Other Department of Defense              11,713,312      11,761,512      11,754,237      11,821,037
       Programs.................................
----------------------------------------------------------------------------------------------------------------

                         defense health program

                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Medical Programs, O&M.......................................  ...........       +8,100      +16,025      +67,425
Breast Cancer (military programs)...........................  ...........      +25,000  ...........      +25,000
Head Injury.................................................  ...........       +1,000  ...........       +1,000

[[Page H7707]]

 
Air Force Neuroscience......................................  ...........       +4,900  ...........       +4,900
Diabetes Research...........................................  ...........       +4,000  ...........       +4,000
Epidermolysis Bullosa.......................................  ...........       +1,000  ...........       +1,000
Medical Imaging.............................................  ...........       +4,700  ...........       +3,500
Tissue Engineering..........................................  ...........       +4,700  ...........       +3,500
HIV.........................................................  ...........      +15,000  ...........      +15,000
Minimally Invasive Research.................................  ...........      +13,000  ...........      +13,000
Lab Upgrades................................................  ...........       +8,000  ...........       +8,000
Nervous System Studies......................................  ...........       +4,500  ...........       +4,500
Gulf War Illness............................................  ...........       +4,500  ...........       +4,500
PACMEDNET...................................................  ...........      +10,000  ...........      +10,000
High risk automation systems................................  ...........      -20,000  ...........      -20,000
HPSP Tax Liability..........................................  ...........      -70,800      -70,800      -70,800
Economic adjustment.........................................  ...........       -1,400  ...........  ...........
Hepatitis A Vaccine.........................................  ...........  ...........      +25,000      +17,000
Military Health Information Services........................  ...........  ...........      +10,000       +7,000
USUHS.......................................................  ...........  ...........      +13,000      +13,000
Pacific Island Health Care Program..........................  ...........  ...........       +5,000       +5,000
Brown Tree Snakes...........................................  ...........  ...........       +1,000       +1,000
Cancer Control Program......................................  ...........  ...........       +8,925       +8,925
Army Research Institute.....................................  ...........  ...........       +5,400       +5,400
Committee Increase..........................................  ...........  ...........       +1,500  ...........
Military Nursing Research...................................  ...........  ...........       +5,000       +5,000
Disaster Management Training................................  ...........  ...........       +5,000       +5,000
Holloman Air Force Base.....................................  ...........  ...........       +7,000       +5,000
Restoration of Army O&M (VAC)...............................  ...........  ...........  ...........       +8,000
Economic Adjustment.........................................  ...........  ...........  ...........      -20,000
----------------------------------------------------------------------------------------------------------------

                             breast cancer

       The conferees have provided a total of $160,000,000 only 
     for breast cancer research and related treatment. Of that 
     amount $135,000,000 is for the Army's peer-reviewed research 
     program. The conferees are very encouraged with the 
     administration of this program and with the composition of, 
     and strategy developed by the program's peer review panel and 
     believe this should be maintained. The remaining $25,000,000 
     is to be used to improve access to care for military members 
     and their families.


                              telemedicine

       The conferees agree that pursuant to the GAO report 
     ``Telemedicine: Federal Strategy is Needed to Guide 
     Investments'', DoD Health Affairs should contract with an 
     outside organization, which has previously demonstrated the 
     ability to assess and plan strategic telehealth initiatives, 
     to enumerate current telehealth efforts and recommend 
     coordination activities among the tri-services to prevent 
     duplication and enhance ``dual use'' telecommunications for 
     health care delivery, education and related public sector 
     applications. This assessment should also include the 
     worldwide computer-based patient record as a necessary 
     component of telehealth. The resulting report and 
     recommendations shall be provided to the congressional 
     defense committees by April 1, 1998.


                    national rehabilitation hospital

       The conferees are pleased with the success of the 
     cooperative effort between the Department of the Army and the 
     National Rehabilitation Hospital at the Assistive Technology 
     Research Center. Through its efforts, individuals with 
     disabilities are benefiting from technology advances 
     previously limited to the military. The conferees urge that 
     this effort be continued.


                      military retiree health care

       The conferees are encouraged by the recent decision to 
     implement the Medicare subvention demonstration, to provide 
     health care for Medicare-eligible military retirees who are 
     not currently covered under TRICARE. The conferees believe a 
     properly tailored subvention demonstration, coupled with 
     continued assessment of the TRICARE program, is essential to 
     develop the data needed to evaluate the success, and 
     adequacy, of military managed care programs. The conferees 
     understand the Department is focusing its efforts in the 
     first phase of the Medicare subvention demonstration on rapid 
     implementation. However, this emphasis may not provide a true 
     picture of the relative merits of the subvention program, as 
     it may preclude analysis of a representative sampling of 
     beneficiary populations (such as those in rural areas, or in 
     regions with a high density retiree population).
       The conferees believe the Department should rapidly move 
     towards a second phase Medicare subvention demonstration, 
     which takes into account such factors and will give the 
     Department a more diverse sampling of data and one more 
     representative of the actual challenges facing the military 
     heath care delivery system. The Department is directed to 
     submit a report to the congressional defense committees not 
     later than March 1, 1998, on its plans for phase one of the 
     Medicare subvention demonstration as well as its plans 
     regarding subsequent demonstration phases.
       While encouraged by the advent of the subvention effort, 
     the conferees note that alternative options, such as 
     providing the Federal Employees Health Benefits Plan (FEHBP) 
     to Medicare-eligible military retirees, exist and could serve 
     to further ameliorate the problems caused by TRICARE ``lock-
     out.'' In response to a directive in last year's Defense 
     Appropriations Act to assess the FEHBP option, the Department 
     indicated there may be some merit in conducting a limited 
     FEHBP demonstration program. The conferees believe such an 
     effort, if analyzed in conjunction with TRICARE and the 
     Medicare subvention options, would provide the Department of 
     Defense, other affected Federal agencies, and Congress with a 
     more complete picture of the potentially available means for 
     providing health care for the over-65 military beneficiary 
     population. Therefore, the conferees direct the Secretary of 
     Defense, in consultation with the Director of the Office of 
     Personnel management, to submit a legislative proposal for 
     Congressional consideration next year to implement a limited 
     FEHBP demonstration program. The program plan should cover 
     only Medicare-eligible beneficiaries and include cost 
     estimates that are based on current beneficiary participation 
     data.


                             dna data bank

       The conferees strongly support Department of Defense 
     policies that protect information in its ``DNA Data Bank'' 
     for soldiers, as outlined in its April 2, 1996 policy 
     memorandum. Because this pool of genetic data is one of the 
     largest in the country, the conferees are concerned about the 
     possibility for health, life, and disability insurers to use 
     this data for inappropriate and discriminator purposes. The 
     conferees direct the Department of Defense to continue to 
     promote policies that provide the utmost protection of the 
     genetic information in the ``Armed Forces Repository of 
     Specimen Samples for the Identification of Remains.''

           Chemical Agents and Munitions Destruction, Defense

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
CHEM AGENTS & MUNITION DESTRUCTION, DEF........
CHEM DEMILITARIZATION--O&M.....................      472,200      472,200      467,200  ...........      462,200
CHEM DEMILITARIZATION--PROC....................       82,200       67,200       77,200  ...........       72,200
CHEM DEMILITARIZATION-- RDTE...................       66,300       56,300       70,300  ...........       66,300
ECONOMIC ASSUMPTIONS...........................  ...........  ...........       -5,000  ...........  ...........
----------------------------------------------------------------------------------------------------------------

         Drug Interdiction and Counter-Drug Activities, Defense

       The conference agreement is as follows:

[[Page H7708]]


                                            [In thousand of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Dismantling Cartels.........................................       54,306  ...........  ...........       54,306
Source Nation Support.......................................      166,763  ...........  ...........      174,963
    National Imagery & Mapping Agency.......................        8,374        7,574        8,374        7,574
    LEA Support (1004)......................................        3,585       18,585        3,585        3,585
    Riverine Interdiction Initiative........................  ...........  ...........        4,200        9,000
Detection and Monitoring....................................      124,686  ...........  ...........      124,686
Law Enforcement Agency Support..............................      223,589  ...........  ...........      275,189
    Gulf States Counterdrug Initiative......................        3,366       16,166       10,066       16,166
    Multi-Jurisdictional Task Force.........................        2,047        6,047        2,047        6,047
    Southwest Border Information System.....................  ...........        5,000  ...........        4,000
    Civil Air Patrol........................................        1,175        3,975        1,175        1,175
    National Interagency Counter-drug Institute.............  ...........        3,000  ...........  ...........
    Southwest Border Fence..................................  ...........        7,000  ...........        4,000
    Optionally Piloted Air Vehicle..........................  ...........        2,500  ...........  ...........
    HIDTA Crack House Demolition............................  ...........        2,300  ...........        2,300
    C-26 Aircraft Photo Reconnaissance Upgrade..............  ...........       11,000  ...........        4,500
    Non-Intrusive Inspection Systems RDT&E..................       16,013       11,413       16,013       16,013
    National Guard..........................................      132,358      132,358      157,358      149,358
    Regional Police Information System......................  ...........  ...........        3,000        3,000
Demand Reduction............................................       83,238  ...........  ...........       83,738
    Young Marines Program...................................          500        1,000          500        1,000
                                                             ---------------------------------------------------
      Total.................................................      652,582      713,082      691,482      712,882
----------------------------------------------------------------------------------------------------------------

                         gulf states initiative

       The conferees agree with the direction contained in House 
     report 105-206 and provide $16,166,000 for the Gulf States 
     Initiative (GSI). The conferees have funded this program in 
     the Drug Interdiction account, but direct that management of 
     this program, with the exception of the Regional Counter-drug 
     Training Academy, be transferred to the Joint Military 
     Intelligence Program (JMIP). The conferees direct the 
     Coordinator for Drug Enforcement Policy and Support to 
     provide $13,135,000 to the JMIP to manage and operate the GSI 
     in fiscal year 1998.


                            civil air patrol

       The conferees agree to provide $2,800,000 above the budget 
     request for the Civil Air Patrol, but have provided those 
     funds in the Operation and Maintenance Title.


                      hidta crack house demolition

       The conferees agree to provide $2,300,000 as recommended by 
     the House for Crack House Demolition and related missions. 
     The conferees are concerned about the physical protection of 
     National Guard personnel during demolition missions and 
     expect the Guard and local law enforcement agencies to 
     arrange for protection prior to the execution of these 
     missions. The conferees are also concerned about the status 
     of the properties to be demolished. The conferees understand 
     that the National Guard intends to require legal 
     certification from the lead public agency that titles to the 
     structures to be demolished are controlled by the public 
     agency, that hazardous materials are not present and that the 
     appropriate law enforcement agency has certified the sites as 
     drug distribution centers.

                    Office of the Inspector General

       The conferees agree to provide $138,380,000 for the Office 
     of the Inspector General. Of this amount, $136,580,000 shall 
     be for operation and maintenance activities and $1,800,000 
     shall be for procurement.

                      TITLE VII--RELATED AGENCIES

       The conferees agree to the following amounts for Related 
     Agencies:

                                            [In Thousands of Dollars]
----------------------------------------------------------------------------------------------------------------
                                                                Request       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Intelligence Community Management Account...................      122,580      125,580      122,580      121,080
National Security Education Trust Fund......................        2,000        2,000        2,000        2,000
Central Intelligence Agency Retirement and Disability System      196,900      196,900      196,900      196,900
 Fund.......................................................
Payment to Kaho'olawe Island Conveyance, Remediation, and          10,000       10,000       10,000       35,000
 Environmental Restoration Fund.............................
----------------------------------------------------------------------------------------------------------------

               intelligence community management account

       Details of the adjustments to this account are addressed in 
     the classified annex accompanying this report.

                     TITLE VIII--GENERAL PROVISIONS

       The conference agreement incorporates general provisions of 
     the House and Senate versions of the bill which were not 
     amended. Those general provisions that were amended in 
     conference follow:
       The conferees included a general provision (Section 8005) 
     which amends Senate language concerning transfer authority 
     and which provides $65,000,000 for termination costs of the 
     Reserve Mobilization Income Insurance Program.
       The conferees included a general provision (Section 8008) 
     providing multiyear procurement authority for certain 
     programs.
       The conferees included a general provision (Section 8024) 
     which amends Senate language earmarking funds for Indian 
     Financing Act Incentives and extends eligibility to 
     contractors participating in the test program established by 
     Section 854 of Public Law 101-89.
       The conferees included a general provision (Section 8034) 
     earmarking funds for the Civil Air Patrol.
       The conferees included a general provision (Section 8035) 
     governing the activities of defense federally funded research 
     and development centers (FFRDCs).
       The conferees included a general provision (Section 8043) 
     which amends a Senate provision offsetting funds provided to 
     meet flying hour shortfalls. The conference agreement 
     contains significant increases over the budget request to 
     meet shortfalls in flying hour and spare parts funding, depot 
     maintenance, and other readiness requirements of both the 
     Active and Reserve components. Section 8043 provides offsets 
     for these critical readiness programs through reductions, on 
     a pro-rata basis, to each activity funded in titles III and 
     IV of the conference agreement.
       The conferees included a new general provision (Section 
     8048) which offsets funding provided for National Missile 
     Defense (NMD). In title IV, the conference agreement includes 
     an additional $474,000,000 over the President's request for 
     NMD, responding to a request from the Secretary of Defense 
     after significant shortfalls were discovered in programmed 
     funding. Section 8048 offsets the additional funds provided 
     in the conference agreement for NMD by a like reduction, on a 
     pro-rata basis, to each activity funded in title IV.
       The conferees included a general provision (Section 8056) 
     which amends Senate language regarding the mitigation of 
     environmental impact of DoD activities on Indian lands.
       The conferees included a general provision (Section 8061) 
     which amends House language concerning the increase or 
     transfer of DoD personnel assigned to headquarters activities 
     and field operating agencies.
       The conferees included a general provision (Section 8062) 
     which amends Senate language authorizing intelligence 
     activities.
       The conferees included a general provision (Section 8064) 
     which amends House and Senate language recommending 
     rescissions.

 
----------------------------------------------------------------------------------------------------------------
                                                                  House            Senate          Conference
----------------------------------------------------------------------------------------------------------------
                     FISCAL YEAR 1996
SHIPBUILDING AND CONVERSION, NAVY:
    AFS Ship..............................................       -35,600,000                 0       -35,600,000
                                                           -----------------------------------------------------
      Subtotal............................................       -35,600,000                 0       -35,600,000
                                                           =====================================================
OTHER PROCUREMENT, NAVY:
    SHINCOM...............................................        -3,300,000  ................        -3,300,000
                                                           -----------------------------------------------------
      Subtotal............................................        -3,300,000                 0        -3,300,000
                                                           =====================================================

[[Page H7709]]

 
      Total fiscal year 1996..............................       -38,900,000                 0       -38,900,000
                                                           =====================================================
                     FISCAL YEAR 1997
AIRCRAFT PROCUREMENT, ARMY:
    Blackhawk Advance Procurement.........................        -5,000,000                 0        -5,000,000
                                                           -----------------------------------------------------
      Subtotal............................................        -5,000,000                 0        -5,000,000
                                                           =====================================================
PROCUREMENT OF AMMUNITION, ARMY:
Armament Retooling and Manufacturing
    Support...............................................        -5,000,000                 0        -5,000,000
                                                           -----------------------------------------------------
      Subtotal............................................        -5,000,000                 0        -5,000,000
                                                           =====================================================
OTHER PROCUREMENT, ARMY:
    Maneuver Control System...............................        -6,000,000                 0        -6,000,000
                                                           -----------------------------------------------------
      Subtotal............................................        -6,000,000                 0        -6,000,000
                                                           =====================================================
AIRCRAFT PROCUREMENT, NAVY:
    F/A-18E/F (Fighter) Hornet (AP-CY)....................       -24,000,000                 0       -24,000,000
                                                           -----------------------------------------------------
      Subtotal............................................       -24,000,000                 0       -24,000,000
                                                           =====================================================
OTHER PROCUREMENT, NAVY:
    SHINCOM...............................................        -2,200,000                 0        -2,200,000
                                                           -----------------------------------------------------
      Subtotal............................................        -2,200,000                 0        -2,200,000
                                                           =====================================================
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY:
    Armored System Modernization-Adv Development..........                 0                 0        -6,000,000
                                                           -----------------------------------------------------
      Subtotal............................................                 0                 0        -6,000,000
                                                           =====================================================
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY:
    Classified programs...................................                 0                 0       -40,000,000
                                                           -----------------------------------------------------
      Subtotal............................................                 0                 0       -40,000,000
                                                           =====================================================
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE:
    Classified programs...................................                 0       -25,000,000       -25,000,000
                                                           -----------------------------------------------------
      Subtotal............................................                 0       -25,000,000       -25,000,000
                                                           =====================================================
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE:
    Tactical UAV Outrider.................................                 0       -20,000,000       -20,000,000
                                                           -----------------------------------------------------
    Follow-on-TMD Airborne sensors for ballistic missile                   0        -9,700,000        -4,000,000
     tracking.............................................
                                                           -----------------------------------------------------
      Subtotal............................................                 0       -29,700,000       -24,000,000
                                                           =====================================================
      Total fiscal year 1997..............................        -2,200,000       -54,700,000      -137,200,000
                                                           =====================================================
      Grand total.........................................       -81,000,000       -54,700,000      -176,100,000
                                                           =====================================================
----------------------------------------------------------------------------------------------------------------

       The conferees have rescinded a portion of the fiscal year 
     1997 funds provided for the Airborne Sensors for Ballistic 
     Missile Tracking project. The conferees direct that the first 
     priority for the remaining funds shall be to accomplish any 
     valid technology transfer to Airborne Laser (ABL) program.
       The conferees included a general provision (Section 8086) 
     which amends Senate language making funds available for 
     Reserve peacetime support to active duty and civilian 
     activities.
       The conferees included a general provision (Section 8090) 
     which amends House language for ship cost adjustments 
     requested by the Navy and program adjustments for the F-22. 
     It also includes transfer of funds formerly for prior year 
     ship construction projects to the RDT&E appropriation. The 
     conferees direct that $9,500,000 within the Research, 
     Development, Test and Evaluation, Navy appropriation be used 
     only in the Advanced Transition Technology program for the 
     integration of advanced propulsion technology within a 
     composite structure and mission capable communications to be 
     used for multi-mission patrol craft.
       The conferees included a new general provision (Section 
     8097) to provide funding for the refurbishment of the USS 
     Intrepid.
       The conferees included a general provision (Section 8105) 
     which amends House language reducing funding provided to the 
     Operation and Maintenance accounts of the Army, Navy, and Air 
     Force to compensate for excess inventory.
       The conferees included a general provision (Section 8106) 
     which amends House language concerning savings from changes 
     to law proposed by the House National Security Committee and 
     the Senate Armed Services Committees on warranties in 
     contracts for the acquisition of defense weapon systems. The 
     conferees agree to a reduction of $75,000,000 rather than 
     $50,000,000 as proposed by the House.
       The conferees included a general provision (Section 8109) 
     which amends Senate language concerning a pilot project 
     within the Maritime Technology Program to make technical 
     corrections.
       The conferees included a general provision (Section 8114) 
     which amends House language restricting the use of Research 
     and Development funding for the procurement of end-items.
       The conferees included a general provision (Section 8117) 
     which prohibits the Department from entering into or renewing 
     a contract with an entity unless the contractor has submitted 
     an annual report to the Department of Labor concerning the 
     employment of veterans. The conferees express their 
     understanding that under current regulations, the annual 
     report for 1997 must be submitted not later than September 
     30, 1998.
       The conferees included a general provision (Section 8121) 
     which amends Senate language earmarking funds to demonstrate 
     expanded use of multi-technology automated reader cards.
       The conferees included a general provision (Section 8122) 
     which amends Senate language requiring a report on all 
     anticipated costs to the United States for the admission of 
     the Czech Republic, Poland and Hungary to NATO.
       The conferees included a general provision (Section 8123) 
     which amends Senate language concerning reciprocal trade 
     agreements and the conditions under which the Secretary of 
     Defense may issue waivers to the Buy America Act.
       The conferees included a new general provision (Section 
     8127) which rescinds $100,000,000 from funds appropriated in 
     previous Defense Department Appropriations Acts which are 
     expected to expire at the end of fiscal year 1998.
       The conferees included a new general provision (Section 
     8128) which allows the Secretary of Defense to provide funds 
     for operational costs associated with the Lexington Bluegrass 
     facility.
       The conferees included a new general provision (Section 
     8129) to facilitate contractor teaming for construction of 
     submarines. It is required by the Navy in order to implement 
     the President's budget request and appropriation in this Act 
     for funding for the New Attack Submarine.
       The conferees included a new general provision (Section 
     8130) establishing the National Security Strategy Study 
     Group.
       The conferees included a new general provision (Section 
     8131) establishing a panel to review the need for continued 
     production of the B-2 bomber.
       The conferees included a general provision (Section 8132) 
     which amends House language restricting the use of funds for 
     the U.S. military deployment in Bosnia after June 30, 1998. 
     The amended provision denies the use of funds in the Defense 
     Appropriations Act, 1998, for the deployment of U.S. armed 
     forces in the Republic of Bosnia and Herzegovina after June 
     30, 1998, unless the President, after consultation with the 
     bipartisan leadership of the Senate and House of 
     Representatives, transmits to the Congress not later

[[Page H7710]]

     than May 15, 1998 a certification that the continued presence 
     of United States armed forces is required in order to meet 
     the national security interests of the United States. Any 
     such certification shall specify the following aspects of any 
     deployment beyond June 30, 1998:
       (1) The reasons why such deployment is in the national 
     interest;
       (2) The number of United States military personnel to be 
     deployed in and around the Republic of Bosnia and Herzegovina 
     and the former Yugoslavia;
       (3) The expected duration of any such deployment;
       (4) The mission and objectives of United States military 
     forces deployed in and around the Republic of Bosnia and 
     Herzegovina and the former Yugoslavia; and
       (5) The exit strategy for United States forces engaged in 
     such deployment;
       (6) The costs associated with any deployment beyond June 
     30, 1998; and
       (7) The impact of such deployment on the morale, retention, 
     and effectiveness of U.S. forces:
       Pursuant to Section 8132, concurrent with the submission of 
     any such certification, the President shall submit to the 
     Congress a fiscal year 1998 supplemental appropriations 
     request for such amounts as are necessary for any continued 
     deployment beyond June 30, 1998.

                   Conference Total--With Comparisons

       The total new budget (obligational) authority for the 
     fiscal year 1998 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 1997 amount, the 1998 
     budget estimates, and the House and Senate bills for 1998 
     follow:
New budget (obligational) authority, fiscal year 1997..$242,389,726,000
Budget estimates of new (obligational) authority, fiscal243,923,541,000
House bill, fiscal year 1998............................248,335,303,000
Senate bill, fiscal year 1998...........................247,184,859,000
Conference agreement, fiscal year 1998..................247,708,522,000
Conference agreement compared with:....................................
    New budget (obligational) authority, fiscal year 1997+5,318,796,000
    Budget estimates of new (obligational) authority, fis+3,784,981,000
    House bill, fiscal year 1998...........................-626,781,000
    Senate bill, fiscal year 1998..........................+523,663,000
     Bill Young,
     Joseph M. McDade,
     Jerry Lewis,
     Joe Skeen,
     David L. Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Ernest Istook,
     Randy ``Duke'' Cunningham,
     Bob Livingston,
     John P. Murtha,
     Norm Dicks,
       (Except on amendment dealing with the B-2 bomber),
     W.G. Bill Hefner,
     Martin Olav Sabo,
     Julian C. Dixon,
     Peter J. Visclosky,
                                Managers on the Part of the House.

     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete Domenici,
     Christopher S. Bond,
     Mitch McConnell,
     Richard Shelby,
     Judd Gregg,
     Kay Bailey Hutchison,
     Daniel K. Inouye,
     Robert Byrd,
     Patrick J. Leahy,
     Dale Bumpers,
     Frank R. Lautenberg,
     Byron L. Dorgan,
     Managers of the Part of the Senate.

                          ____________________