[Congressional Record Volume 143, Number 144 (Thursday, October 23, 1997)]
[House]
[Pages H9076-H9464]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




CONFERENCE REPORT ON H.R. 1119, NATIONAL DEFENSE AUTHORIZATION ACT FOR 
                            FISCAL YEAR 1998

  Mr. SPENCE submitted the following conference report and statement on 
the bill (H.R. 1119) to authorize appropriations for fiscal year 1998 
for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes:

                  Conference Report (H. Rept. 105-340)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendments of the Senate to the bill (H.R. 
     1119) to authorize appropriations for fiscal year 1998 for 
     military activities of the Department of Defense, for 
     military construction, and for defense activities of the 
     Department of Energy, to prescribe personnel strengths for 
     such fiscal year for the Armed Forces, 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 to the text of the bill and agree to 
     the same with an amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Defense 
     Authorization Act for Fiscal Year 1998''.

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

       (a) Divisions.--This Act is organized into three divisions 
     as follows:
       (1) Division A--Department of Defense Authorizations.
       (2) Division B--Military Construction Authorizations.
       (3) Division C--Department of Energy National Security 
     Authorizations and Other Authorizations.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.
Sec. 109. Defense Export Loan Guarantee Program.

                       Subtitle B--Army Programs

Sec. 111. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for specified Army programs.
Sec. 113. M113 vehicle modifications.

                       Subtitle C--Navy Programs

Sec. 121. New Attack Submarine program.
Sec. 122. CVN-77 nuclear aircraft carrier program.
Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

                     Subtitle D--Air Force Programs

Sec. 131. Authorization for B-2 bomber program.
Sec. 132. ALR radar warning receivers.
Sec. 133. Analysis of requirements for replacement of engines on 
              military aircraft derived from Boeing 707 aircraft.

                       Subtitle E--Other Matters

Sec. 141. Pilot program on sales of manufactured articles and services 
              of certain Army industrial facilities without regard to 
              availability from domestic sources.
Sec. 142. NATO Joint Surveillance/Target Attack Radar System.

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
Sec. 204. Reduction in amount for Federally Funded Research and 
              Development Centers.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Manufacturing technology program.
Sec. 212. Report on operational field assessments program.
Sec. 213. Joint Strike Fighter program.
Sec. 214. Kinetic energy tactical anti-satellite technology program.
Sec. 215. Micro-satellite technology development program.
Sec. 216. High altitude endurance unmanned vehicle program.
Sec. 217. F-22 aircraft program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 231. National Missile Defense Program.
Sec. 232. Budgetary treatment of amounts for procurement for ballistic 
              missile defense programs.
Sec. 233. Cooperative Ballistic Missile Defense program.
Sec. 234. Annual report on threat posed to the United States by weapons 
              of mass destruction, ballistic missiles, and cruise 
              missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Repeal of required deployment dates for core theater missile 
              defense programs

                       Subtitle D--Other Matters

Sec. 241. Restructuring of National Oceanographic Partnership Program 
              organizations.
Sec. 242. Maintenance and repair of real property at Air Force 
              installations.
Sec. 243. Expansion of eligibility for the Defense Experimental Program 
              to Stimulate Competitive Research.
Sec. 244. Bioassay testing of veterans exposed to ionizing radiation 
              during military service.
Sec. 245. Sense of Congress regarding Comanche program.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Fisher House Trust Funds.
Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
Sec. 306. Refurbishment of M1-A1 tanks.
Sec. 307. Operation of prepositioned fleet, National Training Center, 
              Fort Irwin, California.
Sec. 308. Refurbishment and installation of air search radar.
Sec. 309. Contracted training flight services.
Sec. 310. Procurement technical assistance programs.
Sec. 311. Operation of Fort Chaffee, Arkansas.

                 Subtitle B--Military Readiness Issues

Sec. 321. Monthly reports on allocation of funds within operation and 
              maintenance budget subactivities.
Sec. 322. Expansion of scope of quarterly readiness reports.
Sec. 323. Semiannual reports on transfers from high-priority readiness 
              appropriations.
Sec. 324. Annual report on aircraft inventory.
Sec. 325. Administrative actions adversely affecting military training 
              or other readiness activities.
Sec. 326. Common measurement of operations tempo and personnel tempo.
Sec. 327. Inclusion of Air Force depot maintenance as operation and 
              maintenance budget line items.

[[Page H9077]]

Sec. 328. Prohibition of implementation of tiered readiness system.
Sec. 329. Report on military readiness requirements of the Armed 
              Forces.
Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
Sec. 331. Report on military exercises conducted under certain training 
              exercises programs
Sec. 332. Report on overseas deployments.

                  Subtitle C--Environmental Provisions

Sec. 341. Revision of membership terms for Strategic Environmental 
              Research and Development Program Scientific Advisory 
              Board.
Sec. 342. Amendments to authority to enter into agreements with other 
              agencies in support of environmental technology 
              certification.
Sec. 343. Modifications of authority to store and dispose of nondefense 
              toxic and hazardous materials.
Sec. 344. Annual report on payments and activities in response to fines 
              and penalties assessed under environmental laws.
Sec. 345. Annual report on environmental activities of the Department 
              of Defense overseas.
Sec. 346. Review of existing environmental consequences of the presence 
              of the Armed Forces in Bermuda.
Sec. 347. Sense of Congress on deployment of United States Armed Forces 
              abroad for environmental preservation activities.
Sec. 348. Recovery and sharing of costs of environmental restoration at 
              Department of Defense sites.
Sec. 349. Partnerships for investment in innovative environmental 
              technologies.
Sec. 350. Procurement of recycled copier paper.
Sec. 351. Pilot program for the sale of air pollution emission 
              reduction incentives.

                   Subtitle D--Depot-Level Activities

Sec. 355. Definition of depot-level maintenance and repair.
Sec. 356. Core logistics capabilities of Department of Defense.
Sec. 357. Increase in percentage of depot-level maintenance and repair 
              that may be contracted for performance by non-government 
              personnel.
Sec. 358. Annual report on depot-level maintenance and repair.
Sec. 359. Requirement for use of competitive procedures in contracting 
              for performance of depot-level maintenance and repair 
              workloads formerly performed at closed or realigned 
              military installations.
Sec. 360. Clarification of prohibition on management of depot employees 
              by constraints on personnel levels.
Sec. 361. Centers of Industrial and Technical Excellence.
Sec. 362. Extension of authority for aviation depots and naval 
              shipyards to engage in defense-related production and 
              services.
Sec. 363. Repeal of a conditional repeal of certain depot-level 
              maintenance and repair laws and a related reporting 
              requirement.
Sec. 364. Personnel reductions, Army depots participating in Army 
              Workload and Performance System.
Sec. 365. Report on allocation of core logistics activities among 
              Department of Defense facilities and private sector 
              facilities.
Sec. 366. Review of use of temporary duty assignments for ship repair 
              and maintenance.
Sec. 367. Sense of Congress regarding realignment of performance of 
              ground communication-electronic workload.

  Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 371. Reorganization of laws regarding commissaries and exchanges 
              and other morale, welfare, and recreation activities.
Sec. 372. Merchandise and pricing requirements for commissary stores.
Sec. 373. Limitation on noncompetitive procurement of brand-name 
              commercial items for resale in commissary stores.
Sec. 374. Treatment of revenues derived from commissary store 
              activities.
Sec. 375. Maintenance, repair, and renovation of Armed Forces 
              Recreation Center, Europe.
Sec. 376. Plan for use of public and private partnerships to benefit 
              morale, welfare, and recreation activities.

                       Subtitle F--Other Matters

Sec. 381. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 382. Center for Excellence in Disaster Management and Humanitarian 
              Assistance.
Sec. 383. Applicability of Federal printing requirements to Defense 
              Automated Printing Service.
Sec. 384. Study and notification requirements for conversion of 
              commercial and industrial type functions to contractor 
              performance.
Sec. 385. Collection and retention of cost information data on 
              converted services and functions.
Sec. 386. Financial assistance to support additional duties assigned to 
              Army National Guard.
Sec. 387. Competitive procurement of printing and duplication services.
Sec. 388. Continuation and expansion of demonstration program to 
              identify overpayments made to vendors.
Sec. 389. Development of standard forms regarding performance work 
              statement and request for proposal for conversion of 
              certain operational functions of military installations.
Sec. 390. Base operations support for military installations on Guam.
Sec. 391. Warranty claims recovery pilot program.
Sec. 392. Program to investigate fraud, waste, and abuse within 
              Department of Defense.
Sec. 393. Multitechnology automated reader card demonstration program.
Sec. 394. Reduction in overhead costs of Inventory Control Points.
Sec. 395. Inventory management.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
              contingencies.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              Reserves.
Sec. 413. End strengths for military technicians (dual status).

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Limitation on number of general and flag officers who may 
              serve in positions outside their own service.
Sec. 502. Exclusion of certain retired officers from limitation on 
              period of recall to active duty.
Sec. 503. Clarification of officers eligible for consideration by 
              promotion boards.
Sec. 504. Authority to defer mandatory retirement for age of officers 
              serving as chaplains.
Sec. 505. Increase in number of officers allowed to be frocked to 
              grades of colonel and Navy captain.
Sec. 506. Increased years of commissioned service for mandatory 
              retirement of regular generals and admirals in grades 
              above major general and rear admiral.
Sec. 507. Uniform policy for requirement of exemplary conduct by 
              commanding officers and others in authority.
Sec. 508. Report on the command selection process for District 
              Engineers of the Army Corps of Engineers.

                 Subtitle B--Reserve Component Matters

Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513.Correction of inequities in medical and dental care and death 
              and disability benefits for reserve members who incur or 
              aggravate an illness in the line of duty.
Sec. 514. Authority to permit non-unit assigned officers to be 
              considered by vacancy promotion board to general officer 
              grades.
Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air 
              Force base security functions.
Sec. 516. Involuntary separation of reserve officers in an inactive 
              status.
Sec. 517. Federal status of service by National Guard members as honor 
              guards at funerals of veterans.

                    Subtitle C--Military Technicians

Sec. 521. Authority to retain on the reserve active-status list until 
              age 60 military technicians in the grade of brigadier 
              general.
Sec. 522. Military technicians (dual status).
Sec. 523. Non-dual status military technicians.
Sec. 524. Report on feasibility and desirability of conversion of AGR 
              personnel to military technicians (dual status).

  Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                               Attrition

Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for 
              military service.
Sec. 533. Improvements in physical fitness of recruits.

              Subtitle E--Military Education and Training

                   Part I--Officer Education Programs

Sec. 541. Requirement for candidates for admission to United States 
              Naval Academy to take oath of allegiance.
Sec. 542. Service academy foreign exchange program.
Sec. 543. Reimbursement of expenses incurred for instruction at service 
              academies of persons from foreign countries.
Sec. 544. Continuation of support to senior military colleges.
Sec. 545. Report on making United States nationals eligible for 
              participation in Senior Reserve Officers' Training Corps.
Sec. 546. Coordination of establishment and maintenance of Junior 
              Reserve Officers' Training Corps units to maximize 
              enrollment and enhance efficiency.

                    Part II--Other Education Matters

Sec. 551. United States Naval Postgraduate School.

[[Page H9078]]

Sec. 552. Community College of the Air Force.
Sec. 553. Preservation of entitlement to educational assistance of 
              members of the Selected Reserve serving on active duty in 
              support of a contingency operation.

               Part III--Training of Army Drill Sergeants

Sec. 556. Reform of Army drill sergeant selection and training process.
Sec. 557. Training in human relations matters for Army drill sergeant 
              trainees.

 Subtitle F--Commission on Military Training and Gender-Related Issues

Sec. 561. Establishment and composition of Commission.
Sec. 562. Duties.
Sec. 563. Administrative matters.
Sec. 564. Termination of Commission.
Sec. 565. Funding.
Sec. 566. Subsequent consideration by Congress.

              Subtitle G--Military Decorations and Awards

Sec. 571. Purple Heart to be awarded only to members of the Armed 
              Forces.
Sec. 572. Eligibility for Armed Forces Expeditionary Medal for 
              participation in Operation Joint Endeavor or Operation 
              Joint Guard.
Sec. 573. Waiver of time limitations for award of certain decorations 
              to specified persons.
Sec. 574. Clarification of eligibility of members of Ready Reserve for 
              award of service medal for heroism.
Sec. 575. One-year extension of period for receipt of recommendations 
              for decorations and awards for certain military 
              intelligence personnel.
Sec. 576. Eligibility of certain World War II military organizations 
              for award of unit decorations.
Sec. 577. Retroactivity of Medal of Honor special pension.

                  Subtitle H--Military Justice Matters

Sec. 581. Establishment of sentence of confinement for life without 
              eligibility for parole.
Sec. 582. Limitation on appeal of denial of parole for offenders 
              serving life sentence.

                       Subtitle I--Other Matters

Sec. 591. Sexual harassment investigations and reports.
Sec. 592. Sense of the Senate regarding study of matters relating to 
              gender equity in the Armed Forces.
Sec. 593. Authority for personnel to participate in management of 
              certain non-Federal entities.
Sec. 594. Treatment of participation of members in Department of 
              Defense civil military programs.
Sec. 595. Comptroller General study of Department of Defense civil 
              military programs.
Sec. 596. Establishment of public affairs specialty in the Army.
Sec. 597. Grade of defense attache in France.
Sec. 598. Report on crew requirements of WC-130J aircraft.
Sec. 599. Improvement of missing persons authorities applicable to 
              Department of Defense.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Reform of basic allowance for subsistence.
Sec. 603. Consolidation of basic allowance for quarters, variable 
              housing allowance, and overseas housing allowances.
Sec. 604. Revision of authority to adjust compensation necessitated by 
              reform of subsistence and housing allowances.
Sec. 605. Protection of total compensation of members while performing 
              certain duty.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
              authorities for nurse officer candidates, registered 
              nurses, and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of 
              other bonuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive 
              pay for certain members.
Sec. 615. Increase in aviation career incentive pay.
Sec. 616. Modification of aviation officer retention bonus.
Sec. 617. Availability of multiyear retention bonus for dental 
              officers.
Sec. 618. Increase in variable and additional special pays for certain 
              dental officers.
Sec. 619. Availability of special pay for duty at designated hardship 
              duty locations.
Sec. 620. Definition of sea duty for purposes of career sea pay.
Sec. 621. Modification of Selected Reserve reenlistment bonus.
Sec. 622. Modification of Selected Reserve enlistment bonus for former 
              enlisted members.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard 
              Reserve.
Sec. 624. Increase in special pay and bonuses for nuclear-qualified 
              officers.
Sec. 625. Provision of bonuses in lieu of special pay for enlisted 
              members extending tours of duty at designated locations 
              overseas.
Sec. 626. Increase in amount of family separation allowance.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for dependents before 
              approval of member's court-martial sentence.
Sec. 632. Dislocation allowance.

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

Sec. 641. One-year opportunity to discontinue participation in Survivor 
              Benefit Plan.
Sec. 642. Time in which change in survivor benefit coverage from former 
              spouse to spouse may be made.
Sec. 643. Review of Federal former spouse protection laws.
Sec. 644. Annuities for certain military surviving spouses.
Sec. 645. Administration of benefits for so-called minimum income 
              widows.

                       Subtitle E--Other Matters

Sec. 651. Loan repayment program for commissioned officers in certain 
              health professions.
Sec. 652. Conformance of NOAA commissioned officers separation pay to 
              separation pay for members of other uniformed services.
Sec. 653. Eligibility of Public Health Service officers and NOAA 
              commissioned corps officers for reimbursement of adoption 
              expenses.
Sec. 654. Payment of back quarters and subsistence allowances to World 
              War II veterans who served as guerrilla fighters in the 
              Philippines.
Sec. 655. Subsistence of members of the Armed Forces above the poverty 
              level.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Expansion of retiree dental insurance plan to include 
              surviving spouse and child dependents of certain deceased 
              members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
Sec. 703. Study concerning the provision of comparative information.

                      Subtitle B--TRICARE Program

Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.

          Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Implementation of designated provider agreements for 
              Uniformed Services Treatment Facilities.
Sec. 722. Continued acquisition of reduced-cost drugs.
Sec. 723. Limitation on total payments.

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

Sec. 731. Improvements in health care coverage and access for members 
              assigned to certain duty locations far from sources of 
              care.
Sec. 732. Waiver or reduction of copayments under overseas dental 
              program.
Sec. 733. Premium collection requirements for medical and dental 
              insurance programs; extension of deadline for 
              implementation of dental insurance program for military 
              retirees.
Sec. 734. Dental insurance plan coverage for retirees of the Public 
              Health Service and NOAA.
Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for 
              services.
Sec. 736. Use of personal services contracts for provision of health 
              care services and legal protection for providers.
Sec. 737. Portability of State licenses for Department of Defense 
              health care professionals.
Sec. 738. Standard form and requirements regarding claims for payment 
              for services.
Sec. 739. Chiropractic health care demonstration program.

                       Subtitle E--Other Matters

Sec. 741. Continued admission of civilians as students in physician 
              assistant training program of Army Medical Department.
Sec. 742. Payment for emergency health care overseas for military and 
              civilian personnel of the On-Site Inspection Agency.
Sec. 743. Authority for agreement for use of medical resource facility, 
              Alamogordo, New Mexico.
Sec. 744. Disclosures of cautionary information on prescription 
              medications.
Sec. 745. Competitive procurement of certain ophthalmic services.
Sec. 746. Comptroller General study of adequacy and effect of maximum 
              allowable charges for physicians under CHAMPUS.
Sec. 747. Comptroller General study of Department of Defense pharmacy 
              programs.
Sec. 748. Comptroller General study of Navy graduate medical education 
              program.

[[Page H9079]]

Sec. 749. Study of expansion of pharmaceuticals by mail program to 
              include additional Medicare-eligible covered 
              beneficiaries.
Sec. 750. Comptroller General study of requirement for military medical 
              facilities in National Capital Region.
Sec. 751. Report on policies and programs to promote healthy lifestyles 
              for members of the Armed Forces and their dependents.
Sec. 752. Sense of Congress regarding quality health care for retirees.

                    Subtitle F--Persian Gulf Illness

Sec. 761. Definitions.
Sec. 762. Plan for health care services for Persian Gulf veterans.
Sec. 763. Comptroller General study of revised disability criteria for 
              physical evaluation boards.
Sec. 764. Medical care for certain reserves who served in Southwest 
              Asia during the Persian Gulf War.
Sec. 765. Improved medical tracking system for members deployed 
              overseas in contingency or combat operations.
Sec. 766. Notice of use of investigational new drugs or drugs 
              unapproved for their applied use.
Sec. 767. Report on plans to track location of members in a theater of 
              operations.
Sec. 768. Sense of Congress regarding the deployment of specialized 
              units for detecting and monitoring chemical, biological, 
              and similar hazards in a theater of operations.
Sec. 769. Report on effectiveness of research efforts regarding Gulf 
              War illnesses.
Sec. 770. Persian Gulf illness clinical trials program.
Sec. 771. Sense of Congress concerning Gulf War illness.

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

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 801. Expansion of authority to enter into contracts crossing 
              fiscal years to all severable service contracts not 
              exceeding a year.
Sec. 802. Vesting of title in the United States under contracts paid 
              under progress payment arrangements or similar 
              arrangements.
Sec. 803. Restriction on undefinitized contract actions.
Sec. 804. Limitation and report on payment of restructuring costs under 
              defense contracts.
Sec. 805. Increased price limitation on purchases of right-hand drive 
              vehicles.
Sec. 806. Multiyear procurement contracts.
Sec. 807. Audit of procurement of military clothing and clothing-
              related items by military installations in the United 
              States.
Sec. 808. Limitation on allowability of compensation for certain 
              contractor personnel.
Sec. 809. Elimination of certification requirement for grants.
Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
Sec. 811. Item-by-item and country-by-country waivers of domestic 
              source limitations.

              Subtitle B--Acquisition Assistance Programs

Sec. 821. One-year extension of pilot mentor-protege program.
Sec. 822. Test program for negotiation of comprehensive subcontracting 
              plans.

                 Subtitle C--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract 
              litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Unit cost reports.
Sec. 834. Plan for providing contracting information to general public 
              and small businesses.
Sec. 835. Two-year extension of crediting of certain purchases toward 
              meeting subcontracting goals.

                       Subtitle D--Other Matters

Sec. 841. Repeal of certain acquisition requirements and reports
Sec. 842. Use of major range and test facility installations by 
              commercial entities.
Sec. 843. Requirement to develop and maintain list of firms not 
              eligible for defense contracts.
Sec. 844. Sense of Congress regarding allowability of costs of employee 
              stock ownership plans.
Sec. 845. Expansion of personnel eligible to participate in 
              demonstration project relating to acquisition workforce.
Sec. 846. Time for submission of annual report relating to Buy American 
              Act.
Sec. 847. Repeal of requirement for contractor guarantees on major 
              weapon systems.
Sec. 848. Requirements relating to micro-purchases.
Sec. 849. Promotion rate for officers in an acquisition corps.
Sec. 850. Use of electronic commerce in Federal procurement.
Sec. 851. Conformance of policy on performance based management of 
              civilian acquisition programs with policy established for 
              defense acquisition programs.
Sec. 852. Modification of process requirements for the solutions-based 
              contracting pilot program.
Sec. 853. Guidance and standards for defense acquisition workforce 
              training requirements.
Sec. 854. Study and report to Congress assessing dependence on foreign 
              sources for resistors and capacitors.
Sec. 855. Department of Defense and Federal Prison Industries joint 
              study.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Positions and Organizations and Other 
                            General Matters

Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff for 
              National Guard matters and for Reserve matters.
Sec. 902. Use of CINC Initiative Fund for force protection.
Sec. 903. Revision to required frequency for provision of policy 
              guidance for contingency plans.
Sec. 904. Annual justification for Department of Defense advisory 
              committees.
Sec. 905. Airborne reconnaissance management.
Sec. 906. Termination of the Armed Services Patent Advisory Board.
Sec. 907. Coordination of Department of Defense criminal investigations 
              and audits.

         Subtitle B--Department of Defense Personnel Management

Sec. 911. Reduction in personnel assigned to management headquarters 
              and headquarters support activities.
Sec. 912. Defense acquisition workforce.

         Subtitle C--Department of Defense Schools and Centers

Sec. 921. Professional military education schools.
Sec. 922. Center for Hemispheric Defense Studies.
Sec. 923. Correction to reference to George C. Marshall European Center 
              for Security Studies.

     Subtitle D--Department of Defense Intelligence-Related Matters

Sec. 931. Transfer of certain military department programs from TIARA 
              budget aggregation.
Sec. 932. Report on coordination of access of commanders and deployed 
              units to intelligence collected and analyzed by the 
              intelligence community.
Sec. 933. Protection of imagery, imagery intelligence, and geospatial 
              information and data.
Sec. 934. POW/MIA intelligence analysis.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001 Transfer authority.
Sec. 1002 Incorporation of classified annex.
Sec. 1003 Authority for obligation of unauthorized fiscal year 1997 
              defense appropriations.
Sec. 1004 Authorization of prior emergency supplemental appropriations 
              for fiscal year 1997.
Sec. 1005 Increase in fiscal year 1996 transfer authority.
Sec. 1006 Revision of authority for Fisher House trust funds.
Sec. 1007 Flexibility in financing closure of certain outstanding 
              contracts for which a small final payment is due.
Sec. 1008 Biennial financial management improvement plan.
Sec. 1009 Estimates and requests for procurement and military 
              construction for the reserve components.
Sec. 1010 Sense of Congress regarding funding for reserve component 
              modernization not requested in President's budget.
Sec. 1011 Management of working-capital funds.
Sec. 1012 Authority of Secretary of Defense to settle claims relating 
              to pay, allowances, and other benefits.
Sec. 1013 Payment of claims by members for loss of personal property 
              due to flooding in Red River Basin.
Sec. 1014. Advances for payment of public services.
Sec. 1015 United States Man and the Biosphere Program limitation.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Procedures for sale of vessels stricken from the Naval 
              Vessel Register.
Sec. 1022. Authority to enter into a long-term charter for a vessel in 
              support of the Surveillance Towed-Array Sensor (SURTASS) 
              program.
Sec. 1023. Transfer of two specified obsolete tugboats of the Army.
Sec. 1024. Congressional review period with respect to transfer of ex-
              U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
Sec. 1025. Transfers of naval vessels to certain foreign countries.
Sec. 1026. Reports relating to export of vessels that may contain 
              polychlorinated biphenyls.
Sec. 1027. Conversion of defense capability preservation authority to 
              Navy shipbuilding capability preservation authority.

                  Subtitle C--Counter-Drug Activities

Sec. 1031. Use of National Guard for State drug interdiction and 
              counter-drug activities.
Sec. 1032. Authority to provide additional support for counter-drug 
              activities of Mexico.
Sec. 1033. Authority to provide additional support for counter-drug 
              activities of Peru and Colombia.
Sec. 1034. Annual report on development and deployment of narcotics 
              detection technologies.

[[Page H9080]]

       Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1041. Repeal of miscellaneous reporting requirements.
Sec. 1042. Study of transfer of modular airborne fire fighting system.
Sec. 1043. Overseas infrastructure requirements.
Sec. 1044. Additional matters for annual report on activities of the 
              General Accounting Office.
Sec. 1045. Eye safety at small arms firing ranges.
Sec. 1046. Reports on Department of Defense procedures for 
              investigating military aviation accidents and for 
              notifying and assisting families of victims.

               Subtitle E--Matters Relating to Terrorism

Sec. 1051. Oversight of counterterrorism and antiterrorism activities; 
              report.
Sec. 1052. Provision of adequate troop protection equipment for Armed 
              Forces personnel engaged in peace operations; report on 
              antiterrorism activities and protection of personnel.

            Subtitle F--Matters Relating to Defense Property

Sec. 1061. Lease of nonexcess personal property of military 
              departments.
Sec. 1062. Lease of nonexcess property of Defense Agencies.
Sec. 1063. Donation of excess chapel property to churches damaged or 
              destroyed by arson or other acts of terrorism.
Sec. 1064. Authority of the Secretary of Defense concerning disposal of 
              assets under cooperative agreements on air defense in 
              Central Europe.
Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition and 
              ammunition components.
Sec. 1066. Transfer of B-17 aircraft to museum.
Sec. 1067. Report on disposal of excess and surplus materials.

                       Subtitle G--Other Matters

Sec. 1071. Authority for special agents of the Defense Criminal 
              Investigative Service to execute warrants and make 
              arrests.
Sec. 1072. Study of investigative practices of military criminal 
              investigative organizations relating to sex crimes.
Sec. 1073. Technical and clerical amendments.
Sec. 1074. Sustainment and operation of the Global Positioning System.
Sec. 1075. Protection of safety-related information voluntarily 
              provided by air carriers.
Sec. 1076. National Guard Challenge Program to create opportunities for 
              civilian youth.
Sec. 1077. Disqualification from certain burial-related benefits for 
              persons convicted of capital crimes.
Sec. 1078. Restrictions on the use of human subjects for testing of 
              chemical or biological agents.
Sec. 1079. Treatment of military flight operations.
Sec. 1080. Naturalization of certain foreign nationals who serve 
              honorably in the Armed Forces during a period of 
              conflict.
Sec. 1081. Applicability of certain pay authorities to members of 
              specified independent study organizations.
Sec. 1082. Display of POW/MIA flag.
Sec. 1083. Program to commemorate 50th anniversary of the Korean 
              conflict.
Sec. 1084. Commendation of members of the Armed Forces and Government 
              civilian personnel who served during the Cold War; 
              certificate of recognition.
Sec. 1085. Sense of Congress on granting of statutory Federal charters.
Sec. 1086. Sense of Congress regarding military voting rights.
Sec. 1087. Designation of Bob Hope as an honorary veteran of the Armed 
              Forces of the United States.
Sec. 1088. Five-year extension of aviation insurance program.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Use of prohibited constraints to manage Department of 
              Defense personnel.
Sec. 1102. Veterans' preference status for certain veterans who served 
              on active duty during the Persian Gulf War.
Sec. 1103. Repeal of deadline for placement consideration of 
              involuntarily separated military reserve technicians.
Sec. 1104. Rate of pay of Department of Defense overseas teachers upon 
              transfer to General Schedule position.
Sec. 1105. Garnishment and involuntary allotment.
Sec. 1106. Extension and revision of voluntary separation incentive pay 
              authority.
Sec. 1107. Use of approved fire-safe accommodations by Government 
              employees on official business.
Sec. 1108. Navy higher education pilot program regarding administration 
              of business relationships between Government and private 
              sector.
Sec. 1109. Authority for Marine Corps University to employ civilian 
              faculty members.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Withdrawal of United States ground forces from Republic of 
              Bosnia and Herzegovina.
Sec. 1204. Secretary of Defense reports on tasks carried out by United 
              States forces.
Sec. 1205. Presidential report on situation in Republic of Bosnia and 
              Herzegovina.
Sec. 1206. Definitions.

       Subtitle B--Export Controls on High Performance Computers

Sec. 1211. Export approvals for high performance computers.
Sec. 1212. Report on exports of high performance computers.
Sec. 1213. Post-shipment verification of export of high performance 
              computers.
Sec. 1214. GAO study on certain computers; end user information 
              assistance.
Sec. 1215. Congressional committees.

                       Subtitle C--Other Matters

Sec. 1221. Defense burdensharing.
Sec. 1222. Temporary use of general purpose vehicles and nonlethal 
              military equipment under acquisition and cross servicing 
              agreements.
Sec. 1223. Sense of Congress and reports regarding financial costs of 
              enlargement of the North Atlantic Treaty Organization.
Sec. 1224. Sense of Congress regarding enlargement of the North 
              Atlantic Treaty Organization.
Sec. 1225. Sense of the Congress relating to level of United States 
              military personnel in the East Asia and Pacific region.
Sec. 1226. Report on future military capabilities and strategy of the 
              People's Republic of China.
Sec. 1227. Sense of Congress on need for Russian openness on the 
              Yamantau Mountain project.
Sec. 1228. Assessment of the Cuban threat to United States national 
              security.
Sec. 1229. Report on Helsinki Joint statement.
Sec. 1230. Commendation of Mexico on free and fair elections.
Sec. 1231. Sense of Congress regarding Cambodia.
Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Sec. 1301. Presidential report concerning detargeting of Russian 
              strategic missiles.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
              nuclear delivery systems.
Sec. 1303. Assistance for facilities subject to inspection under the 
              Chemical Weapons Convention.
Sec. 1304. Transfers of authorizations for high-priority 
              counterproliferation programs.
Sec. 1305. Advice to the President and Congress regarding the safety, 
              security, and reliability of United States nuclear 
              weapons stockpile.
Sec. 1306. Reconstitution of commission to assess the ballistic missile 
              threat to the United States.
Sec. 1307. Sense of Congress regarding the relationship between United 
              States obligations under the Chemical Weapons Convention 
              and environmental laws.
Sec. 1308. Extension of counterproliferation authorities for support of 
              United Nations Special Commission on Iraq.
Sec. 1309. Annual report on moratorium on use by Armed Forces of 
              antipersonnel landmines.

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

Sec. 1401. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1402. Funding allocations.
Sec. 1403. Prohibition on use of funds for specified purposes.
Sec. 1404. Limitation on use of funds for projects related to START II 
              Treaty until submission of certification.
Sec. 1405. Limitation on use of funds for chemical weapons destruction 
              facility.
Sec. 1406. Limitation on use of funds for destruction of chemical 
              weapons.
Sec. 1407. Limitation on use of funds for storage facility for Russian 
              fissile material.
Sec. 1408. Limitation on use of funds for weapons storage security.
Sec. 1409. Report on issues regarding payment of taxes, duties, and 
              other assessments on assistance provided to Russia under 
              Cooperative Threat Reduction programs.
Sec. 1410. Availability of funds.

   TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION

Sec. 1501. Recognition and grant of Federal charter.
Sec. 1502. Powers.
Sec. 1503. Purposes.
Sec. 1504. Service of process.
Sec. 1505. Membership.
Sec. 1506. Board of directors.
Sec. 1507. Officers.
Sec. 1508. Restrictions.
Sec. 1509. Liability.
Sec. 1510. Maintenance and inspection of books and records.
Sec. 1511. Audit of financial transactions.
Sec. 1512. Annual report.
Sec. 1513. Reservation of right to alter, amend, or repeal charter.

[[Page H9081]]

Sec. 1514. Tax-exempt status required as condition of charter.
Sec. 1515. Termination.
Sec. 1516. Definition of State.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Correction in authorized uses of funds, Fort Irwin, 
              California.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization of military construction project at Naval 
              Station, Pascagoula, Mississippi, for which funds have 
              been appropriated.
Sec. 2206. Increase in authorization for military construction projects 
              at Naval Station Roosevelt Roads, Puerto Rico.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authorization of military construction project at McConnell 
              Air Force Base, Kansas, for which funds have been 
              appropriated.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Clarification of authority relating to fiscal year 1997 
              project at Naval Station, Pearl Harbor, Hawaii.
Sec. 2407. Correction in authorized uses of funds, McClellan Air Force 
              Base, California.
Sec. 2408. Modification of authority to carry out certain fiscal year 
              1995 projects.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
              acquisition projects.
Sec. 2602. Authorization of military construction projects for which 
              funds have been appropriated.
Sec. 2603. Army Reserve construction project, Camp Williams, Utah.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
              specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1995 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1994 
              projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1993 
              projects.
Sec. 2705. Extension of authorizations of certain fiscal year 1992 
              projects.
Sec. 2706. Extension of availability of funds for construction of 
              relocatable over-the-horizon radar, Naval Station 
              Roosevelt Roads, Puerto Rico.
Sec. 2707. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

Sec. 2801. Use of mobility enhancement funds for unspecified minor 
              construction.
Sec. 2802. Limitation on use of operation and maintenance funds for 
              facility repair projects.
Sec. 2803. Leasing of military family housing, United States Southern 
              Command, Miami, Florida.
Sec. 2804. Use of financial incentives provided as part of energy 
              savings and water conservation activities.
Sec. 2805. Congressional notification requirements regarding use of 
              Department of Defense housing funds for investments in 
              nongovernmental entities.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in ceiling for minor land acquisition projects.
Sec. 2812. Permanent authority regarding conveyance of utility systems.
Sec. 2813. Administrative expenses for certain real property 
              transactions.
Sec. 2814. Screening of real property to be conveyed by Department of 
              Defense.
Sec. 2815. Disposition of proceeds from sale of Air Force Plant 78, 
              Brigham City, Utah.
Sec. 2816. Fire protection and hazardous materials protection at Fort 
              Meade, Maryland.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Consideration of military installations as sites for new 
              Federal facilities.
Sec. 2822. Adjustment and diversification assistance to enhance 
              performance of military family support services by 
              private sector sources.
Sec. 2823. Security, fire protection, and other services at property 
              formerly associated with Red River Army Depot, Texas.
Sec. 2824. Report on closure and realignment of military installations.
Sec. 2825. Sense of Senate regarding utilization of savings derived 
              from base closure process.
Sec. 2826. Prohibition against certain conveyances of property at Naval 
              Station, Long Beach, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Land conveyance, Army Reserve Center, Greensboro, Alabama.
Sec. 2832. Land conveyance, James T. Coker Army Reserve Center, Durant, 
              Oklahoma.
Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago, 
              Illinois.
Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.
Sec. 2835. Land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyances, Fort Bragg, North Carolina.
Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot, Mineral 
              County, Nevada.
Sec. 2838. Expansion of land conveyance authority, Indiana Army 
              Ammunition Plant, Charlestown, Indiana.
Sec. 2839. Modification of land conveyance, Lompoc, California.
Sec. 2840. Modification of land conveyance, Rocky Mountain Arsenal, 
              Colorado.
Sec. 2841. Correction of land conveyance authority, Army Reserve 
              Center, Anderson, South Carolina.

                       Part II--Navy Conveyances

Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station, 
              Brunswick, Maine.
Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant No. 
              464, Oyster Bay, New York.
Sec. 2853. Correction of lease authority, Naval Air Station, Meridian, 
              Mississippi.

                    Part III--Air Force Conveyances

Sec. 2861. Land transfer, Eglin Air Force Base, Florida.
Sec. 2862. Land conveyance, March Air Force Base, California.
Sec. 2863. Land conveyance, Ellsworth Air Force Base, South Dakota.
Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.
Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and Havre 
              Training Site, Montana.
Sec. 2866. Land conveyance, Charleston Family Housing Complex, Bangor, 
              Maine.
Sec. 2867. Study of land exchange options, Shaw Air Force Base, South 
              Carolina.

                       Subtitle E--Other Matters

Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.
Sec. 2872. Long-term lease of property, Naples, Italy.
Sec. 2873. Designation of military family housing at Lackland Air Force 
              Base, Texas, in honor of Frank Tejeda, a former Member of 
              the House of Representatives.
Sec. 2874. Fiber-optics based telecommunications linkage of military 
              installations.

                   TITLE XXIX--SIKES ACT IMPROVEMENT

Sec. 2901. Short title.
Sec. 2902. Definition of Sikes Act for purposes of amendments.
Sec. 2903. Codification of short title of Act.
Sec. 2904. Preparation of integrated natural resources management 
              plans.
Sec. 2905. Review for preparation of integrated natural resources 
              management plans.
Sec. 2906. Transfer of wildlife conservation fees from closed military 
              installations.
Sec. 2907. Annual reviews and reports.
Sec. 2908. Cooperative agreements.
Sec. 2909. Federal enforcement.
Sec. 2910. Natural resources management services.
Sec. 2911. Definitions.
Sec. 2912. Repeal of superseded provision.
Sec. 2913. Technical amendments.
Sec. 2914. Authorizations of appropriations.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.

[[Page H9082]]

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

                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
              activities.
Sec. 3127. Funds available for all national security programs of the 
              Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfers of defense environmental management funds.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Memorandum of understanding for use of national laboratories 
              for ballistic missile defense programs.
Sec. 3132. Defense environmental management privatization projects.
Sec. 3133. International cooperative stockpile stewardship.
Sec. 3134. Modernization of enduring nuclear weapons complex.
Sec. 3135. Tritium production.
Sec. 3136. Processing, treatment, and disposition of spent nuclear fuel 
              rods and other legacy nuclear materials at the Savannah 
              River Site.
Sec. 3137. Limitations on use of funds for laboratory directed research 
              and development purposes.
Sec. 3138. Pilot program relating to use of proceeds of disposal or 
              utilization of certain Department of Energy assets.
Sec. 3139. Modification and extension of authority relating to 
              appointment of certain scientific, engineering, and 
              technical personnel.
Sec. 3140. Limitation on use of funds for subcritical nuclear weapons 
              tests.
Sec. 3141. Limitation on use of certain funds until future use plans 
              are submitted.

                       Subtitle D--Other Matters

Sec. 3151. Plan for stewardship, management, and certification of 
              warheads in the nuclear weapons stockpile.
Sec. 3152. Repeal of obsolete reporting requirements.
Sec. 3153. Study and funding relating to implementation of workforce 
              restructuring plans.
Sec. 3154. Report and plan for external oversight of national 
              laboratories.
Sec. 3155. University-based research collaboration program.
Sec. 3156. Stockpile stewardship program.
Sec. 3157. Reports on advanced supercomputer sales to certain foreign 
              nations.
Sec. 3158. Transfers of real property at certain Department of Energy 
              facilities.
Sec. 3159. Requirement to delegate certain authorities to site manager 
              of Hanford Reservation.
Sec. 3160. Submittal of biennial waste management reports.
Sec. 3161. Department of Energy Security Management Board.
Sec. 3162. Submittal of annual report on status of security functions 
              at nuclear weapons facilities.
Sec. 3163. Modification of authority on Commission on Maintaining 
              United States Nuclear Weapons Expertise.
Sec. 3164. Land transfer, Bandelier National Monument.
Sec. 3165. Final settlement of Department of Energy community 
              assistance obligations with respect to Los Alamos 
              National Laboratory, New Mexico.
Sec. 3166. Sense of Congress regarding the Y-12 Plant in Oak Ridge, 
              Tennessee.
Sec. 3167. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.
Sec. 3168. Improvements to Greenville Road, Livermore, California.
Sec. 3169. Report on alternative system for availability of funds.
Sec. 3170. Report on remediation under the Formerly Utilized Sites 
              Remedial Action Program.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
Sec. 3202. Report on external regulation of defense nuclear facilities.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of beryllium copper master alloy in National 
              Defense Stockpile.
Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.
Sec. 3305. Disposal of cobalt in National Defense Stockpile.
Sec. 3306. Required procedures for disposal of strategic and critical 
              materials.
Sec. 3307. Return of surplus platinum from the Department of the 
              Treasury.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
              year 1998.
Sec. 3403. Repeal of requirement to assign Navy officers to Office of 
              Naval Petroleum and Oil Shale Reserves.
Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 
              1 and 3.

                  TITLE XXXV--PANAMA CANAL COMMISSION

     Subtitle A--Authorization of Expenditures From Revolving Fund

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.

          Subtitle B--Facilitation of Panama Canal Transition

Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to canal transition.

    Part I--Transition Matters Relating to Commission Officers and 
                               Employees

Sec. 3521. Authority for the Administrator of the Commission to accept 
              appointment as the Administrator of the Panama Canal 
              Authority.
Sec. 3522. Post-Canal transfer personnel authorities.
Sec. 3523. Enhanced authority of Commission to establish compensation 
              of Commission officers and employees.
Sec. 3524. Travel, transportation, and subsistence expenses for 
              Commission personnel no longer subject to Federal travel 
              regulation.
Sec. 3525. Enhanced recruitment and retention authorities.
Sec. 3526. Transition separation incentive payments.
Sec. 3527. Labor-management relations.
Sec. 3528. Availability of Panama Canal Revolving Fund for severance 
              pay for certain employees separated by Panama Canal 
              Authority after Canal Transfer Date.

Part II--Transition Matters Relating to Operation and Administration of 
                                 Canal

Sec. 3541. Establishment of procurement system and Board of Contract 
              Appeals.
Sec. 3542. Transactions with the Panama Canal Authority.
Sec. 3543. Time limitations on filing of claims for damages.
Sec. 3544. Tolls for small vessels.
Sec. 3545. Date of actuarial evaluation of FECA liability.
Sec. 3546. Appointment of notaries public.
Sec. 3547. Commercial services.
Sec. 3548. Transfer from President to Commission of certain regulatory 
              functions relating to employment classification appeals.
Sec. 3549. Enhanced printing authority.
Sec. 3550. Technical and conforming amendments.

                  TITLE XXXVI--MARITIME ADMINISTRATION

Sec. 3601. Authorization of appropriations for fiscal year 1998.
Sec. 3602. Repeal of obsolete annual report requirement concerning 
              relative cost of shipbuilding in the various coastal 
              districts of the United States.
Sec. 3603. Provisions relating to maritime security fleet program.
Sec. 3604. Authority to utilize replacement vessels and capacity.
Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.
Sec. 3606. Determination of gross tonnage for purposes of tank vessel 
              double hull requirements.

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

       For purposes of this Act, the term ``congressional defense 
     committees'' means--
       (1) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on National Security and the Committee on 
     Appropriations of the House of Representatives.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.
Sec. 109. Defense Export Loan Guarantee Program.

                       Subtitle B--Army Programs

Sec. 111. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for specified Army programs.
Sec. 113. M113 vehicle modifications.

                       Subtitle C--Navy Programs

Sec. 121. New Attack Submarine program.
Sec. 122. CVN-77 nuclear aircraft carrier program.
Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

                     Subtitle D--Air Force Programs

Sec. 131. Authorization for B-2 bomber program.
Sec. 132. ALR radar warning receivers.
Sec. 133. Analysis of requirements for replacement of engines on 
              military aircraft derived from Boeing 707 aircraft.

                       Subtitle E--Other Matters

Sec. 141. Pilot program on sales of manufactured articles and services 
              of certain Army industrial facilities without regard to 
              availability from domestic sources.

[[Page H9083]]

Sec. 142. NATO Joint Surveillance/Target Attack Radar System.
              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for procurement for the Army as follows:
       (1) For aircraft, $1,316,233,000.
       (2) For missiles, $742,639,000.
       (3) For weapons and tracked combat vehicles, 
     $1,297,641,000.
       (4) For ammunition, $1,011,193,000.
       (5) For other procurement, $2,566,208,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 1998 for procurement for the Navy as follows:
       (1) For aircraft, $6,437,330,000.
       (2) For weapons, including missiles and torpedoes, 
     $1,089,443,000.
       (3) For shipbuilding and conversion, $8,195,269,000.
       (5) For other procurement, $2,970,867,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 1998 for procurement for the 
     Marine Corps in the amount of $460,081,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for procurement of ammunition 
     for the Navy and the Marine Corps in the amount of 
     $364,744,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for procurement for the Air Force as follows:
       (1) For aircraft, $6,425,749,000.
       (2) For missiles, $2,376,301,000.
       (3) For ammunition, $398,534,000.
       (4) For other procurement, $6,543,580,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for Defense-wide procurement in the amount of 
     $2,057,150,000.

     SEC. 105. RESERVE COMPONENTS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for procurement of aircraft, vehicles, 
     communications equipment, and other equipment for the reserve 
     components of the Armed Forces as follows:
       (1) For the Army National Guard, $70,000,000.
       (2) For the Air National Guard, $303,000,000.
       (3) For the Army Reserve, $75,000,000.
       (4) For the Naval Reserve, $80,000,000.
       (5) For the Air Force Reserve, $50,000,000.
       (6) For the Marine Corps Reserve, $65,000,000.

     SEC. 106. DEFENSE INSPECTOR GENERAL.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for procurement for the Inspector General of the 
     Department of Defense in the amount of $1,800,000.

     SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

       There is hereby authorized to be appropriated for fiscal 
     year 1998 the amount of $600,700,000 for--
       (1) the destruction of lethal chemical agents and munitions 
     in accordance with section 1412 of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521); and
       (2) the destruction of chemical warfare materiel of the 
     United States that is not covered by section 1412 of such 
     Act.

     SEC. 108. DEFENSE HEALTH PROGRAMS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for the Department of Defense for procurement for 
     carrying out health care programs, projects, and activities 
     of the Department of Defense in the total amount of 
     $274,068,000.

     SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for the Department of Defense for carrying out the 
     Defense Export Loan Guarantee Program under section 2540 of 
     title 10, United States Code, in the total amount of 
     $1,231,000.
                       Subtitle B--Army Programs

     SEC. 111. ARMY HELICOPTER MODERNIZATION PLAN.

       (a) Limitation.--Not more than 80 percent of the total of 
     the amounts authorized to be appropriated pursuant to section 
     101(1), 105(1), and 105(3) for modifications or upgrades of 
     helicopters may be obligated before the date that is 30 days 
     after the date on which the Secretary of the Army submits to 
     the congressional defense committees a comprehensive plan for 
     the modernization of the Army's helicopter fleet.
       (b) Content of Plan.--The plan required by subsection (a) 
     shall include the following:
       (1) A detailed assessment of the Army's present and future 
     helicopter requirements and present and future helicopter 
     inventory, including number of aircraft, age of aircraft, 
     availability of spare parts, flight hour costs, roles and 
     functions assigned to the fleet as a whole and to its 
     individual types of aircraft, and the mix of active component 
     aircraft and reserve component aircraft in the fleet.
       (2) Estimates and analysis of requirements and funding 
     proposed for procurement of new aircraft.
       (3) An analysis of the requirements for and funding 
     proposed for extended service plans or service life extension 
     plans for fleet aircraft.
       (4) A plan for retiring aircraft no longer required or 
     capable of performing assigned functions, including a 
     discussion of opportunities to eliminate older aircraft 
     models and to focus future funding on current or future 
     generation aircraft.
       (5) The implications of the plan for the defense industrial 
     base.
       (c) Relationship to Future-Years Defense Program.--The 
     Secretary of the Army shall design the plan under subsection 
     (a) so that the plan could be implemented within the funding 
     levels expected to be available for Army aircraft programs in 
     the next future-years defense program to be submitted to 
     Congress pursuant to section 221(a) of title 10, United 
     States Code. The Secretary shall include in the plan a 
     certification that the program of the Army prepared for 
     inclusion in the future-years defense program submitted to 
     Congress in 1998 pursuant to section 221(a) of title 10, 
     United States Code, included full funding for implementation 
     of the plan.

     SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR SPECIFIED ARMY 
                   PROGRAMS.

       (a) AH-64D Longbow Apache Fire Control Radar.--Beginning 
     with the fiscal year 1998 program year, the Secretary of the 
     Army may, in accordance with section 2306b of title 10, 
     United States Code, enter into a multiyear procurement 
     contract for procurement of the AH-64D Longbow Apache fire 
     control radar.
       (b) Medium Tactical Vehicles.--Beginning with the fiscal 
     year 1998 program year, the Secretary of the Army may, in 
     accordance with section 2306b of title 10, United States 
     Code, enter into a multiyear procurement contract for 
     procurement of vehicles of the Family of Medium Tactical 
     Vehicles. The contract may be for a term of four years and 
     may include an option to extend the contract for one 
     additional year.

     SEC. 113. M113 VEHICLE MODIFICATIONS.

       Of the amount made available for the Army pursuant to 
     section 101(3), $35,244,000 shall be available only for the 
     procurement and installation of A3 upgrade kits for the M113 
     vehicle.
                       Subtitle C--Navy Programs

     SEC. 121. NEW ATTACK SUBMARINE PROGRAM.

       (a) Amounts Authorized From SCN Account.--Of the amounts 
     authorized to be appropriated by section 102(a)(3) for fiscal 
     year 1998, $2,599,800,000 is available for the New Attack 
     Submarine Program.
       (b) Contract Authority.--(1) The Secretary of the Navy may 
     enter into a contract for the procurement of four submarines 
     under the New Attack Submarine program.
       (2) Any contract entered into under paragraph (1)--
       (A) shall, notwithstanding section 2304(k) of title 10, 
     United States Code, be awarded to one of the two eligible 
     shipbuilders as the prime contractor on the condition that 
     the prime contractor enter into one or more subcontracts 
     (under such prime contract) with the other of the two 
     eligible shipbuilders as contemplated in the New Attack 
     Submarine Team Agreement; and
       (B) shall provide for--
       (i) construction of the first submarine in fiscal year 
     1998; and
       (ii) advance construction and advance procurement of 
     materiel for the second, third, and fourth submarines in 
     fiscal year 1998.
       (3) The following shipbuilders are eligible for a contract 
     under this subsection:
       (A) The Electric Boat Corporation.
       (B) The Newport News Shipbuilding and Drydock Company.
       (4) In paragraph (2)(A), the term ``New Attack Submarine 
     Team Agreement'' means the agreement known as the Team 
     Agreement between Electric Boat Corporation and Newport News 
     Shipbuilding and Drydock Company, dated February 25, 1997, 
     that was submitted to Congress by the Secretary of the Navy 
     on March 31, 1997.
       (c) Limitation of Liability.--If a contract entered into 
     under this section 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.
       (d) Repeals of Superseded Provisions of Previous Defense 
     Authorization Laws.--(1) Section 131 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 206) is amended--
       (A) in subsection (a)(1)(B)--
       (i) in clause (i), by striking out ``, which shall be built 
     by Electric Boat Division''; and
       (ii) in clause (ii), by striking out ``, which shall be 
     built by Newport News Shipbuilding''; and
       (B) in subsection (b), by striking out paragraph (1).
       (2) Section 121 of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2441) is 
     amended--
       (A) in subsection (a)--
       (i) in paragraph (1)(B), by striking out ``to be built by 
     Electric Boat Division''; and
       (ii) in paragraph (1)(C), by striking out ``to be built by 
     Newport News Shipbuilding'';
       (B) in subsection (d), by striking out paragraph (2);
       (C) in subsection (e), by striking out paragraph (1); and
       (D) in subsection (g), by striking out ``the committees 
     specified in subsection (e)(1)'' in paragraphs (3) and (4) 
     and inserting in lieu thereof ``the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives''.
       (e) Inapplicability of Superseded Aspects of Attack 
     Submarine Development Plan.--The Secretary of Defense and the 
     Secretary of the Navy are not required to carry out the 
     portions of the program plan submitted under subsection (c) 
     of section 131 of the National Defense Authorization Act for 
     Fiscal Year 1996 that are included in the plan pursuant to 
     subparagraphs (A), (B), and (E) of paragraph (2) of such 
     subsection.

     SEC. 122. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

       (a) Authorization of Ship.--The Secretary of the Navy is 
     authorized to procure the aircraft carrier to be designated 
     CVN-77, subject to the availability of appropriations for 
     that purpose.
       (b) Amount Authorized From SCN Account.--Of the amount 
     authorized to be appropriated by section 102(a)(3) for fiscal 
     year 1998, $50,000,000 is available for the advance 
     procurement and advance construction of components

[[Page H9084]]

     (including nuclear components) for the CVN-77 aircraft 
     carrier program. The Secretary of the Navy may enter into a 
     contract or contracts with the shipbuilder and other entities 
     for the advance procurement and advance construction of those 
     components.
       (c) Other Funds.--Of the funds authorized to be 
     appropriated under this Act for programs, projects, and 
     activities of the military departments and Defense Agencies, 
     other than the CVN-77 aircraft carrier program, up to 
     $295,000,000 may be made available, as the Secretary of 
     Defense may direct, for the CVN-77 aircraft carrier program. 
     Authority to make transfers under this subsection is in 
     addition to the transfer authority provided in section 1001.
       (d) Management of Funds.--The Secretary of the Navy shall 
     obligate and expend the funds available for advance 
     procurement and advance construction of components for the 
     CVN-77 aircraft carrier program for fiscal year 1998 in a 
     manner that is designed to result in such cost savings as may 
     be required in order to meet the cost limitation specified in 
     subsection (f).
       (e) Adjustments to Future-Years Defense Program.--The 
     Secretary of Defense shall make such plans for the CVN-77 
     aircraft carrier program as are necessary to attain for the 
     program the cost savings that are contemplated for the 
     procurement of the CVN-77 aircraft carrier in the March 1997 
     procurement plan.
       (f) Limitation on Total Cost of Procurement.--(1) The 
     Secretary of the Navy shall structure the program for the 
     procurement of the CVN-77 aircraft carrier, and shall manage 
     that program, so that the total cost of the procurement of 
     the CVN-77 aircraft carrier does not exceed $4,600,000,000 
     (such amount being the estimated cost for the procurement of 
     the CVN-77 aircraft carrier in the March 1997 procurement 
     plan).
       (2) The Secretary of the Navy may adjust the amount set 
     forth in paragraph (1) for the CVN-77 aircraft carrier 
     program by the following:
       (A) The amounts of outfitting costs and post-delivery costs 
     incurred for the program.
       (B) The amounts of increases or decreases in costs 
     attributable to economic inflation after September 30, 1997.
       (C) The amounts of increases or decreases in costs 
     attributable to compliance with changes in Federal, State, or 
     local laws enacted after September 30, 1997.
       (D) The amounts of increases or decreases in costs of the 
     program that are attributable to new technology built into 
     the CVN-77 aircraft carrier, as compared to the technology 
     built into the baseline design of the CVN-76 aircraft 
     carrier.
       (E) The amounts of increases or decreases in costs 
     resulting from changes the Secretary proposes in the funding 
     plan (as contemplated in the March 1997 procurement plan) on 
     which the projected savings are based.
       (3) The Secretary of the Navy shall annually submit to 
     Congress, at the same time as the budget is submitted under 
     section 1105(a) of title 31, United States Code, written 
     notice of any change in the amount set forth in paragraph (1) 
     during the preceding fiscal year that the Secretary has 
     determined to be associated with a cost referred to in 
     paragraph (2).
       (g) March 1997 Procurement Plan Defined.--In this section, 
     the term ``March 1997 procurement plan'' means the 
     procurement plan for the CVN-77 aircraft carrier that was 
     submitted to the Navy and Congress by the shipbuilder in 
     March 1997.

     SEC. 123. EXCLUSION FROM COST LIMITATION FOR SEAWOLF 
                   SUBMARINE PROGRAM.

       (a) Authority To Exclude Amounts Appropriated for Canceled 
     Vessels.--(1) The Secretary of the Navy may exclude from the 
     application of the cost limitation for the Seawolf submarine 
     program such amounts, not in excess of $272,400,000, as were 
     appropriated for fiscal years 1990, 1991, and 1992 for 
     procurement of Seawolf-class submarines that have been 
     canceled.
       (2) For the purposes of this subsection, the term ``cost 
     limitation for the Seawolf submarine program'' means the 
     limitation in section 133(a) of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 211).
       (b) Determination and Report by Inspector General.--(1) Not 
     later than March 30, 1998, the Inspector General of the 
     Department of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report containing the 
     Inspector General's determination as to whether any further 
     exclusion from, adjustment to exclusion from, or increase in 
     the dollar amount of the cost limitation referred to in 
     subsection (a) will be required.
       (2) The Inspector General shall include in the report the 
     following:
       (A) A thorough and comprehensive accounting for the amount 
     of $745,400,000 identified by the Secretary of the Navy as 
     having been obligated or expended for the detailed design for 
     Seawolf-class submarines that have been canceled and for the 
     procurement of nuclear components and construction spare 
     parts for those canceled submarines, including a statement of 
     the current disposition of items specifically purchased using 
     those funds.
       (B) Cost growth, if any, in the cost of construction of the 
     SSN-21, SSN-22, and SSN-23 Seawolf-class submarines that has 
     not been reported to Congress before the date of the report 
     of the Inspector General.
       (C) The current cost estimate of the Secretary of the Navy 
     for completion of the SSN-21, SSN-22, and SSN-23 Seawolf-
     class submarines.
       (3) The Inspector General shall include in the report such 
     supporting information and analyses as the Inspector General 
     considers appropriate for aiding in understanding the 
     determination and findings of the Inspector General.
                     Subtitle D--Air Force Programs

     SEC. 131. AUTHORIZATION FOR B-2 BOMBER PROGRAM.

       (a) Funding Availability.--Of the funds made available for 
     procurement of aircraft for the Air Force for fiscal year 
     1998, the amount of $331,000,000 is available for long-lead 
     activities related to the procurement of additional B-2 
     bomber aircraft. However, if the President determines that no 
     additional B-2 bombers should be procured during fiscal year 
     1998 and certifies that decision to Congress, the funding 
     authorized in the preceding sentence shall be made available 
     to modify and repair the existing fleet of B-2 bomber 
     aircraft.
       (b) Secretary of Defense To Preserve Options of 
     President.--The Secretary of Defense shall ensure that all 
     appropriate actions are taken to preserve the options of the 
     President until the panel to review long-range airpower 
     established by section 8131 of the Department of Defense 
     Appropriations Act, 1998 (Public Law 105-56; 111 Stat.1249), 
     submits its report.

     SEC. 132. ALR RADAR WARNING RECEIVERS.

       (a) Cost and Operation Effectiveness Analysis.--The 
     Secretary of the Air Force shall conduct a cost and operation 
     effectiveness analysis of upgrading the ALR69 radar warning 
     receiver as compared with the further acquisition of the 
     ALR56M radar warning receiver.
       (b) Submission to Congress.--The Secretary shall submit the 
     cost and operation effectiveness analysis to the 
     congressional defense committees not later than April 2, 
     1998.

     SEC. 133. ANALYSIS OF REQUIREMENTS FOR REPLACEMENT OF ENGINES 
                   ON MILITARY AIRCRAFT DERIVED FROM BOEING 707 
                   AIRCRAFT.

       (a) Analysis Required.--The Secretary of Defense shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives an analysis, to be carried out by the Under 
     Secretary of Defense for Acquisition and Technology, of the 
     requirements of the Department of Defense for replacing 
     engines on the aircraft of the Department of Defense that are 
     derived from the Boeing 707 aircraft and the costs of meeting 
     those requirements.
       (b) Content.--The analysis shall include the following:
       (1) The number of aircraft described in subsection (a) that 
     are in the inventory of the Department of Defense as of 
     October 1, 1997, and the number of such aircraft that are 
     projected to be in the inventory of the Department as of 
     October 1, 2002, as of October 1, 2007, and as of October 1, 
     2012.
       (2) For each type of such aircraft, the estimated cost of 
     operating the aircraft for each fiscal year beginning with 
     fiscal year 1998 and ending with fiscal year 2014, taking 
     into account historical patterns of usage and projected 
     support costs.
       (3) For each type of such aircraft, the estimated costs and 
     the benefits of replacing the engines on the aircraft, 
     analyzed on the basis of the experience under the limited 
     program for replacing the engines on RC-135 aircraft that was 
     undertaken during fiscal years 1995, 1996, and 1997.
       (4) Various plans for replacement of engines that the Under 
     Secretary considers best on the basis of costs and benefits.
       (c) Submission Deadline.--The analysis under subsection (a) 
     shall be submitted not later than March 1, 1998.
                       Subtitle E--Other Matters

     SEC. 141. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND 
                   SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES 
                   WITHOUT REGARD TO AVAILABILITY FROM DOMESTIC 
                   SOURCES.

       (a) Pilot Program Required.--During fiscal years 1998 and 
     1999, the Secretary of the Army shall carry out a pilot 
     program to test the efficacy and appropriateness of selling 
     manufactured articles and services of Army industrial 
     facilities under section 4543 of title 10, United States 
     Code, without regard to the availability of the articles and 
     services from United States commercial sources. In carrying 
     out the pilot program, the Secretary may use articles 
     manufactured at, and services provided by, not more than 
     three Army industrial facilities.
       (b) Temporary Waiver of Requirement for Determination of 
     Unavailability From Domestic Source.--Under the pilot 
     program, the Secretary of the Army is not required under 
     section 4543(a)(5) of title 10, United States Code, to 
     determine whether an article or service is available from a 
     commercial source located in the United States in the case of 
     any of the following sales for which a solicitation of offers 
     is issued during fiscal year 1998 or 1999:
       (1) A sale of articles to be incorporated into a weapon 
     system being procured by the Department of Defense.
       (2) A sale of services to be used in the manufacture of a 
     weapon system being procured by the Department of Defense.
       (c) Review by Inspector General.--The Inspector General of 
     the Department of Defense shall review the experience under 
     the pilot program under this section and, not later than July 
     1, 1999, submit to Congress a report on the results of the 
     review. The report shall contain the following:
       (1) The Inspector General's views regarding the extent to 
     which the waiver under subsection (b) enhances the 
     opportunity for United States manufacturers, assemblers, 
     developers, and other concerns to enter into or participate 
     in contracts and teaming arrangements with Army industrial 
     facilities under weapon system programs of the Department of 
     Defense.
       (2) The Inspector General's views regarding the extent to 
     which the waiver under subsection (b) enhances the 
     opportunity for Army industrial facilities referred to in 
     section 4543(a) of

[[Page H9085]]

     title 10, United States Code, to enter into or participate in 
     contracts and teaming arrangements with United States 
     manufacturers, assemblers, developers, and other concerns 
     under weapon system programs of the Department of Defense.
       (3) The Inspector General's views regarding the effect of 
     the waiver under subsection (b) on the ability of small 
     businesses to compete for the sale of manufactured articles 
     or services in the United States in competitions to enter 
     into or participate in contracts and teaming arrangements 
     under weapon system programs of the Department of Defense.
       (4) Specific examples under the pilot program that support 
     the Inspector General's views.
       (5) Any other information that the Inspector General 
     considers pertinent regarding the effects of the waiver of 
     section 4543(a)(5) of title 10, United States Code, under the 
     pilot program on opportunities for United States 
     manufacturers, assemblers, developers, or other concerns, and 
     for Army industrial facilities, to enter into or participate 
     in contracts and teaming arrangements under weapon system 
     programs of the Department of Defense.
       (6) Any recommendations that the Inspector General 
     considers appropriate regarding continuation or modification 
     of the policy set forth in section 4543(a)(5) of title 10, 
     United States Code.

     SEC. 142. NATO JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM.

       (a) Funding.--Amounts authorized to be appropriated under 
     this title and title II are available for a NATO alliance 
     ground surveillance capability that is based on the Joint 
     Surveillance/Target Attack Radar System of the United States, 
     as follows:
       (1) Of the amount authorized to be appropriated under 
     section 101(5), $26,153,000.
       (2) Of the amount authorized to be appropriated under 
     section 103(1), $10,000,000.
       (3) Of the amount authorized to be appropriated under 
     section 201(1), $13,500,000.
       (4) Of the amount authorized to be appropriated under 
     section 201(3), $26,061,000.
       (b) Authority.--(1) Subject to paragraph (2), the Secretary 
     of Defense may utilize authority under section 2350b of title 
     10, United States Code, for contracting for the purposes of 
     Phase I of a NATO Alliance Ground Surveillance capability 
     that is based on the Joint Surveillance/Target Attack Radar 
     System of the United States, notwithstanding the condition in 
     such section that the authority be utilized for carrying out 
     contracts or obligations incurred under section 27(d) of the 
     Arms Export Control Act (22 U.S.C. 2767(d)).
       (2) The authority under paragraph (1) applies during the 
     period that the conclusion of a cooperative project agreement 
     for a NATO Alliance Ground Surveillance capability under 
     section 27(d) of the Arms Export control Act is pending, as 
     determined by the Secretary of Defense.
       (c) Modification of Air Force Aircraft.--Amounts available 
     pursuant to paragraphs (2) and (4) of subsection (a) may be 
     used to provide for modifying two Air Force Joint 
     Surveillance/Target Attack Radar System production aircraft 
     to have a NATO Alliance Ground Surveillance capability that 
     is based on the Joint Surveillance/Target Attack Radar System 
     of the United States.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
Sec. 204. Reduction in amount for Federally Funded Research and 
              Development Centers.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Manufacturing technology program.
Sec. 212. Report on operational field assessments program.
Sec. 213. Joint Strike Fighter program.
Sec. 214. Kinetic energy tactical anti-satellite technology program.
Sec. 215. Micro-satellite technology development program.
Sec. 216. High altitude endurance unmanned vehicle program.
Sec. 217. F-22 aircraft program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 231. National Missile Defense Program.
Sec. 232. Budgetary treatment of amounts for procurement for ballistic 
              missile defense programs.
Sec. 233. Cooperative Ballistic Missile Defense program.
Sec. 234. Annual report on threat posed to the United States by weapons 
              of mass destruction, ballistic missiles, and cruise 
              missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Repeal of required deployment dates for core theater missile 
              defense programs

                       Subtitle D--Other Matters

Sec. 241. Restructuring of National Oceanographic Partnership Program 
              organizations.
Sec. 242. Maintenance and repair of real property at Air Force 
              installations.
Sec. 243. Expansion of eligibility for the Defense Experimental Program 
              to Stimulate Competitive Research.
Sec. 244. Bioassay testing of veterans exposed to ionizing radiation 
              during military service.
Sec. 245. Sense of Congress regarding Comanche program.
              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $4,633,495,000.
       (2) For the Navy, $7,774,877,000.
       (3) For the Air Force, $14,338,934,000.
       (4) For Defense-wide activities, $9,831,646,000, of which--
       (A) $258,183,000 is authorized for the activities of the 
     Director, Test and Evaluation; and
       (B) $27,384,000 is authorized for the Director of 
     Operational Test and Evaluation.

     SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

       (a) Fiscal Year 1998.--Of the amounts authorized to be 
     appropriated by section 201, $3,935,390,000 shall be 
     available for basic research and applied research projects.
       (b) Basic Research and Applied Research Defined.--For 
     purposes of this section, the term ``basic research and 
     applied research'' means work funded in program elements for 
     defense research and development under Department of Defense 
     category 6.1 or 6.2.

     SEC. 203. DUAL-USE SCIENCE AND TECHNOLOGY PROGRAM.

       (a) Funding 1998.--Of the amounts authorized to be 
     appropriated by section 201, $75,000,000 is authorized for 
     dual-use projects.
       (b) Goals.--(1) Subject to paragraph (3), it shall be the 
     objective of the Secretary of each military department to 
     obligate for dual-use projects in each fiscal year referred 
     to in paragraph (2), out of the total amount authorized to be 
     appropriated for such fiscal year for the applied research 
     programs of the military department, the percent of such 
     amount that is specified for that fiscal year in paragraph 
     (2).
       (2) The objectives for fiscal years under paragraph (1) are 
     as follows:
       (A) For fiscal year 1998, 5 percent.
       (B) For fiscal year 1999, 7 percent.
       (C) For fiscal year 2000, 10 percent.
       (D) For fiscal year 2001, 15 percent.
       (3) The Secretary of Defense may establish for a military 
     department for a fiscal year an objective different from the 
     objective set forth in paragraph (2) if the Secretary--
       (A) determines that compelling national security 
     considerations require the establishment of the different 
     objective; and
       (2) notifies Congress of the determination and the reasons 
     for the determination.
       (c) Designation of Official for Dual-Use Programs.--(1) The 
     Secretary of Defense shall designate a senior official in the 
     Office of the Secretary of Defense to carry out 
     responsibilities for dual-use projects under this subsection. 
     The designated official shall report directly to the Under 
     Secretary of Defense for Acquisition and Technology.
       (2) The primary responsibilities of the designated official 
     shall include developing policy and overseeing the 
     establishment of, and adherence to, procedures for ensuring 
     that dual-use projects are initiated and administered 
     effectively and that applicable commercial technologies are 
     integrated into current and future military systems.
       (3) In carrying out the responsibilities, the designated 
     official shall ensure that--
       (A) dual-use projects are consistent with the joint 
     warfighting science and technology plan referred to in 
     section 270 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 2501 note); 
     and
       (B) the dual-use projects of the military departments and 
     defense agencies of the Department of Defense are coordinated 
     and avoid unnecessary duplication.
       (d) Financial Commitment of Non-Federal Government 
     Participants.--The total amount of funds provided by a 
     military department for a dual-use project entered into by 
     the Secretary of that department shall not exceed 50 percent 
     of the total cost of the project. In the case of a dual-use 
     project initiated after the date of the enactment of this 
     Act, the Secretary may consider in-kind contributions by non-
     Federal participants only to the extent such contributions 
     constitute 50 percent or less of the share of the project 
     costs by such participants.
       (e) Use of Competitive Procedures.--Funds obligated for a 
     dual-use project may be counted toward meeting an objective 
     under subsection (a) only if the funds are obligated for a 
     contract, grant, cooperative agreement, or other transaction 
     that was entered into through the use of competitive 
     procedures.
       (f) Report.--(1) Not later than March 1 of each of 1998, 
     1999, and 2000, the Secretary of Defense shall submit a 
     report to the congressional defense committees on the 
     progress made by the Department of Defense in meeting the 
     objectives set forth in subsection (b) during the preceding 
     fiscal year.
       (2) The report for a fiscal year shall contain, at a 
     minimum, the following:
       (A) The aggregate value of all contracts, grants, 
     cooperative agreements, or other transactions entered into 
     during the fiscal year for which funding is counted toward 
     meeting an objective under this section, expressed in 
     relationship to the total amount appropriated for the applied 
     research programs in the Department of Defense for that 
     fiscal year.
       (B) For each military department, the value of all 
     contracts, grants, cooperative agreements, or other 
     transactions entered into during the fiscal year for which 
     funding is counted toward meeting an objective under this 
     section, expressed in relationship to the total amount 
     appropriated for the applied research program of the military 
     department for that fiscal year.
       (C) A summary of the cost-sharing arrangements in dual-use 
     projects that were initiated during the fiscal year and are 
     counted toward reaching an objective under this section.
       (D) A description of the regulations, directives, or other 
     procedures that have been issued

[[Page H9086]]

     by the Secretary of Defense or the Secretary of a military 
     department to increase the percentage of the total value of 
     the dual-use projects undertaken to meet or exceed an 
     objective under this section.
       (E) Any recommended legislation to facilitate achievement 
     of objectives under this section.
       (g) Commercial Operations and Support Savings Initiative.--
     (1) The Secretary of Defense shall establish a Commercial 
     Operations and Support Savings Initiative (in this subsection 
     referred to as the ``Initiative'') to develop commercial 
     products and processes that the military departments can 
     incorporate into operational military systems to reduce costs 
     of operations and support.
       (2) Of the amounts authorized to be appropriated by section 
     201, $50,000,000 is authorized for the Initiative.
       (3) Projects and participants in the Initiative shall be 
     selected through the use of competitive procedures.
       (4) The budget submitted to Congress by the President for 
     fiscal year 1999 and each fiscal year thereafter pursuant to 
     section 1105(a) of title 31, United States Code, shall set 
     forth separately the funding request for the Initiative.
       (h) Repeal of Superseded Authority.--Section 203 of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2451) is repealed.
       (i) Definitions.--In this section:
       (1) The term ``applied research program'' means a program 
     of a military department which is funded under the 6.2 
     Research, Development, Test and Evaluation account of that 
     department.
       (2) The term ``dual-use project'' means a project under a 
     program of a military department or a defense agency under 
     which research or development of a dual-use technology is 
     carried out and the costs of which are shared by the 
     Department of Defense and non-Government entities.

     SEC. 204. REDUCTION IN AMOUNT FOR FEDERALLY FUNDED RESEARCH 
                   AND DEVELOPMENT CENTERS.

       The total of the amounts authorized to be appropriated in 
     section 201 that are available for Federally Funded 
     Research and Development Centers (other than amounts for 
     capital equipment investment) is hereby reduced by 
     $42,000,000.
    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. MANUFACTURING TECHNOLOGY PROGRAM.

       (a) Participation of Manufacturers.--Section 2525(c)(2) of 
     title 10, United States Code, is amended to read as follows:
       ``(2) In order to promote increased dissemination and use 
     of manufacturing technology throughout the national defense 
     technology and industrial base, the Secretary shall seek, to 
     the maximum extent practicable, the participation of 
     manufacturers of manufacturing equipment in the projects 
     under the program.''.
       (b) Five-Year Plan.--Section 2525 of such title is amended 
     by adding at the end the following new subsection:
       ``(e) Five-Year Plan.--(1) The Secretary of Defense shall 
     prepare a five-year plan for the program which establishes--
       ``(A) the overall manufacturing technology goals, 
     milestones, priorities, and investment strategy for the 
     program; and
       ``(B) for each of the five fiscal years covered by the 
     plan, the objectives of, and funding for the program by, each 
     military department and each Defense Agency participating in 
     the program.
       ``(2) The plan shall include an assessment of the 
     effectiveness of the program.
       ``(3) The plan shall be updated annually and shall be 
     included in the budget justification documents submitted in 
     support of the budget of the Department of Defense for a 
     fiscal year (as included in the budget of the President 
     submitted to Congress under section 1105 of title 31).''.
       (c) Deadline for First Plan.--The Secretary of Defense 
     shall prepare the first five-year plan required under section 
     2525(e) of such title, as added by subsection (b), within 60 
     days after the date of the enactment of this Act.

     SEC. 212. REPORT ON OPERATIONAL FIELD ASSESSMENTS PROGRAM.

       (a) Finding.--Congress recognizes the potential value that 
     the Department of Defense Operational Field Assessments 
     program, which is managed by the Director of Operational Test 
     and Evaluation, provides to the commanders of the Unified 
     Combatant Commands with respect to assessment of the 
     effectiveness of near-term operational concepts and critical 
     operational issues in quick-response operational tests and 
     evaluations.
       (b) Report.--Not later than March 30, 1998, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report on the Operational Field Assessments 
     program.
       (c) Content of Report.--The report shall contain the 
     following:
       (1) A review of the Operational Field Assessments program 
     which describes the goals and objectives of the program, 
     assessments by the program conducted as of the date of the 
     submission of the report, and the results of those 
     assessments.
       (2) A description of the current management and support 
     structure of the program within the Department of Defense, 
     including a description of how program responsibilities are 
     assigned within the Office of the Secretary of Defense and a 
     description of the roles of the Joint Staff, the commanders 
     of the Unified Combatant Commands, and the military 
     departments.
       (3) An analysis of and recommendations regarding the 
     management structure required within the Office of the 
     Secretary of Defense to ensure that the program is responsive 
     to the mission needs of the commanders of the Unified 
     Combatant Commands.
       (4) The funding plan for the program.
       (5) A description of future plans for the program and 
     funding requirements for those plans.
       (6) Recommendations regarding additional statutory 
     authority that may be required for the program.

     SEC. 213. JOINT STRIKE FIGHTER PROGRAM.

       (a) Report.--Not later than February 15, 1998, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the options for the sequence 
     in which the variants of the joint strike fighter are to be 
     produced and fielded.
       (b) Content of Report.--The report shall contain the 
     following:
       (1) A review of the plan for production under the Joint 
     Strike Fighter program that was used by the Department of 
     Defense for developing the funding estimates for the fiscal 
     year 1999 budget request for the Department of Defense.
       (2) An estimate of the costs, and an analysis of the costs 
     and benefits, of producing the joint strike fighter variants 
     in a sequence that provides for fielding of the naval variant 
     of the aircraft first.
       (3) A comparison of the costs and benefits of the various 
     options for the sequence for fielding the variants of the 
     joint strike fighter that the Secretary of Defense considers 
     likely to be the options from among which a sequence for 
     fielding is selected, including a discussion of the effects 
     that selection of each such option would have on the costs 
     and rates of production of the units of F/A-18E/F and F-22 
     aircraft that are in production when the Joint Strike Fighter 
     Program proceeds into production.
       (4) A certification that the Joint Strike Fighter Program 
     contains sufficient funding to carry out an alternate engine 
     development program that includes flight qualification of an 
     alternate engine in a joint strike fighter airframe.
       (c) Limitation on Use of Funds Pending Submission of 
     Report.--Not more than 90 percent of the total amount 
     authorized to be appropriated under this Act for the Joint 
     Strike Fighter Program may be obligated until the date that 
     is 30 days after the date on which the congressional defense 
     committees receive the report required under this section.
       (d) Fiscal Year 1998 Budget Defined.--In this section, the 
     term ``fiscal year 1999 budget request for the Department of 
     Defense'' means the budget estimates for the Department of 
     Defense for fiscal year 1999 that were submitted to Congress 
     by the Secretary of Defense in connection with the submission 
     of the budget for fiscal year 1998 to Congress under section 
     1105 of title 31, United States Code.

     SEC. 214. KINETIC ENERGY TACTICAL ANTI-SATELLITE TECHNOLOGY 
                   PROGRAM.

       Of the funds authorized to be appropriated under section 
     201(4), $37,500,000 shall be available for the kinetic energy 
     tactical anti-satellite technology program.

     SEC. 215. MICRO-SATELLITE TECHNOLOGY DEVELOPMENT PROGRAM.

       (a) Establishment of Micro-Satellite Technology Development 
     Program.--The Secretary of Defense shall restructure the 
     Clementine 2 micro-satellite development program into a 
     micro-satellite technology development program that supports 
     a range of space mission areas.
       (b) Report.--Not later than February 15, 1998, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report describing the structure and 
     objectives of the micro-satellite technology development 
     program established under subsection (a) and how the program 
     can benefit existing or future space systems or 
     architectures.

     SEC. 216. HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE PROGRAM.

       (a) Limitation on Total Cost of Advanced Concept Technology 
     Demonstration.--The total amount obligated or expended for 
     advanced concept technology demonstration under the High 
     Altitude Endurance Unmanned Vehicle Program for fiscal year 
     1998 through fiscal year 2003 may not exceed $476,826,000.
       (b) Limitation on Procurement.--The Secretary of Defense 
     may not procure any high altitude endurance unmanned 
     vehicles, other than the currently planned vehicles, until 
     the completion of the testing identified in phase II of the 
     test and demonstration plan for the advanced concept 
     technology demonstration for the vehicles.
       (c) Limitation on Proceeding.--The High Altitude Endurance 
     Unmanned Vehicle Program may not proceed beyond advanced 
     concept technology demonstration until the Secretary of 
     Defense--
       (1) provides to Congress a firm unit cost (referred to in 
     this section as the ``fly away cost'') for each of the 
     currently planned vehicles; and
       (2) certifies to Congress the military suitability and the 
     worth of each such vehicle.
       (d) GAO Review.--(1) The Comptroller General shall review 
     the High Altitude Endurance Unmanned Vehicle Program for 
     purposes of determining whether the average fly away cost for 
     each vehicle is within the cost goal under the program of 
     $10,000,000.
       (2) The Secretary of Defense and the prime contractors 
     under the High Altitude Endurance Unmanned Vehicle Program 
     shall provide the Comptroller General with such information 
     on the program as the Comptroller considers necessary to make 
     the determination under paragraph (1).
       (e) Currently Planned Vehicles.--In this section, the term 
     ``currently planned vehicles'' means the four Dark Star air 
     vehicles and the five Global Hawk air vehicles that have been 
     approved for procurement by the Secretary of Defense as of 
     the date of the enactment of this Act.

     SEC. 217. F-22 AIRCRAFT PROGRAM.

       (a) Limitation on Total Cost of Engineering and 
     Manufacturing Development.--The

[[Page H9087]]

     total amount obligated or expended for engineering and 
     manufacturing development under the F-22 aircraft program may 
     not exceed $18,688,000,000.
       (b) Limitation on Total Cost of Production.--The total 
     amount obligated or expended for the F-22 production program 
     may not exceed $43,400,000,000.
       (c) Adjustment of Limitation Amounts.--The Secretary of the 
     Air Force shall adjust the amounts of the limitations set 
     forth in subsections (a) and (b) by the following amounts:
       (1) The amounts of increases or decreases in costs 
     attributable to economic inflation after September 30, 1997.
       (2) The amounts of increases or decreases in costs 
     attributable to compliance with changes in Federal, State, or 
     local laws enacted after September 30, 1997.
       (d) Annual GAO Review.--(1) Not later than March 15 of each 
     year, the Comptroller General shall review the F-22 aircraft 
     program and submit to Congress a report on the results of the 
     review. The Comptroller General shall also submit to Congress 
     for each report a certification regarding whether the 
     Comptroller General has had access to sufficient information 
     to make informed judgments on the matters covered by the 
     report.
       (2) The report submitted on the program each year shall 
     include the following:
       (A) The extent to which engineering and manufacturing 
     development under the program is meeting the goals 
     established for engineering and manufacturing development 
     under the program, including the performance, cost, and 
     schedule goals.
       (B) The status of modifications expected to have a 
     significant effect on cost or performance of F-22 aircraft.
       (C) The plan for engineering and manufacturing development 
     (leading to production) under the program for the fiscal year 
     that begins in the following year.
       (D) A conclusion regarding whether the plan referred to in 
     subparagraph (C) is consistent with the limitation in 
     subsection (a).
       (E) A conclusion regarding whether engineering and 
     manufacturing development (leading to production) under the 
     program is likely to be completed at a total cost not in 
     excess of the amount specified in subsection (a).
       (3) The Comptroller General shall submit the first report 
     under this subsection not later than March 15, 1998. No 
     report is required under this subsection after engineering 
     and manufacturing development under the program has been 
     completed.
       (e) Requirement To Support Annual GAO Review.--The 
     Secretary of Defense and the prime contractors under the F-22 
     aircraft program shall provide the Comptroller General with 
     such information on the program as the Comptroller General 
     considers necessary to carry out the responsibilities under 
     subsection (d).
       (f) Limitation on Obligation of Funds.--Of the total amount 
     authorized to be appropriated for the F-22 aircraft program 
     for a fiscal year, not more than 90 percent of the amount may 
     be obligated until the Comptroller General submits to 
     Congress--
       (1) the report required to be submitted in that fiscal year 
     under subsection (d); and
       (2) a certification regarding whether the Comptroller 
     General has had access to sufficient information to make 
     informed judgments on the matters covered by the report.
             Subtitle C--Ballistic Missile Defense Programs

     SEC. 231. NATIONAL MISSILE DEFENSE PROGRAM.

       (a) Program Structure.--To preserve the option of achieving 
     an initial operational capability in fiscal year 2003, the 
     Secretary of Defense shall ensure that the National Missile 
     Defense Program is structured and programmed for funding so 
     as to support a test, in fiscal year 1999, of an integrated 
     national missile defense system that is representative of the 
     national missile defense system architecture that could 
     achieve initial operational capability in fiscal year 2003.
       (b) Elements of NMD System.--The national missile defense 
     system architecture specified in subsection (a) shall consist 
     of the following elements:
       (1) An interceptor system that optimizes defensive coverage 
     of the continental United States, Alaska, and Hawaii against 
     limited ballistic missile attack (whether accidental, 
     unauthorized, or deliberate).
       (2) Ground-based radars.
       (3) Space-based sensors.
       (4) Battle management, command, control, and communications 
     (BM/C3).
       (c) Plan for NMD System Development and Deployment.--Not 
     later than February 15, 1998, the Secretary of Defense shall 
     submit to the congressional defense committees a plan for the 
     development and deployment of a national missile defense 
     system that could achieve initial operational capability in 
     fiscal year 2003. The plan shall include the following 
     matters:
       (1) A detailed description of the system architecture 
     selected for development.
       (2) A discussion of the justification for the selection of 
     that particular architecture.
       (3) The Secretary's estimate of the amounts of the 
     appropriations that would be necessary for research, 
     development, test, evaluation, and for procurement for each 
     of fiscal years 1999 through 2003 in order to achieve an 
     initial operational capability of the system architecture in 
     fiscal year 2003.
       (4) For each activity necessary for the development and 
     deployment of the national missile defense system 
     architecture selected by the Secretary that would at some 
     point conflict with the terms of the ABM Treaty, if any--
       (A) a description of the activity;
       (B) a description of the point at which the activity would 
     conflict with the terms of the ABM Treaty;
       (C) the legal analysis justifying the Secretary's 
     determination regarding the point at which the activity would 
     conflict with the terms of the ABM Treaty; and
       (D) an estimate of the time at which such point would be 
     reached in order to achieve a test of an integrated missile 
     defense system in fiscal year 1999 and initial operational 
     capability of such a system in fiscal year 2003.
       (d) Funding for Fiscal Year 1998.--Of the funds authorized 
     to be appropriated under section 201(4), $978,091,000 shall 
     be available for the National Missile Defense Program.
       (e) ABM Treaty Defined.--In this section, the term ``ABM 
     Treaty'' means the Treaty Between the United States of 
     America and the Union of Soviet Socialist Republics on the 
     Limitation of Anti-Ballistic Missile Systems, signed at 
     Moscow on May 26, 1972, and includes the Protocol to that 
     treaty, signed at Moscow on July 3, 1974.

     SEC. 232. BUDGETARY TREATMENT OF AMOUNTS FOR PROCUREMENT FOR 
                   BALLISTIC MISSILE DEFENSE PROGRAMS.

       (a) Requirement for Inclusion in Budget of BMDO.--(1) 
     Chapter 9 of title 10, United States Code, is amended by 
     inserting after section 222 the following new section:

     ``Sec. 224. Ballistic missile defense programs: display of 
       amounts for procurement

       ``(a) Requirement.--Any amount in the budget submitted to 
     Congress under section 1105 of title 31 for any fiscal year 
     for procurement for a Department of Defense missile defense 
     program described in subsection (b) shall be set forth under 
     the account of the Department of Defense for Defense-wide 
     procurement and, within that account, under the subaccount 
     (or other budget activity level) for the Ballistic Missile 
     Defense Organization.
       ``(b) Covered Programs.--Subsection (a) applies to the 
     following missile defense programs of the Department of 
     Defense:
       ``(1) The National Missile Defense program.
       ``(2) Any system that is part of the core theater missile 
     defense program.
       ``(3) Any other ballistic missile defense program that 
     enters production after the date of the enactment of this 
     section and for which research, development, test, and 
     evaluation was carried out by the Ballistic Missile Defense 
     Organization.
       ``(c) Core Theater Ballistic Missile Defense Program.--For 
     purposes of this section, the core theater missile defense 
     program consists of the systems specified in section 234 of 
     the Ballistic Missile Defense Act of 1995 (10 U.S.C. 2431 
     note).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     222 the following new item:
``224. Ballistic missile defense programs: display of amounts for 
              procurement.''.

       (b) Fiscal Year 1998 Funds.--(1) The Secretary of Defense 
     shall transfer to appropriations available to the Ballistic 
     Missile Defense Organization for procurement for fiscal year 
     1998 any amounts that are appropriated for procurement for 
     that fiscal year for any of the Armed Forces by reason of the 
     transference of certain programs to accounts of the Army, 
     Navy, Air Force, and Marine Corps pursuant to Program Budget 
     Decision 224C3, signed by the Under Secretary of Defense 
     (Comptroller) on December 23, 1996.
       (2) Any transfer pursuant to paragraph (1) shall not be 
     counted for purposes of section 1001.

     SEC. 233. COOPERATIVE BALLISTIC MISSILE DEFENSE PROGRAM.

       (a) Requirement for New Program Element.--The Secretary of 
     Defense shall establish a program element for the Ballistic 
     Missile Defense Organization, to be referred to as the 
     ``Cooperative Ballistic Missile Defense Program'', to support 
     technical and analytical cooperative efforts between the 
     United States and other nations that contribute to United 
     States ballistic missile defense capabilities. Except as 
     provided in subsection (b), all international cooperative 
     ballistic missile defense programs of the Department of 
     Defense shall be budgeted and administered through that 
     program element.
       (b) Authority for Exceptions.--The Secretary of Defense may 
     exclude from the program element established pursuant to 
     subsection (a) any international cooperative ballistic 
     missile defense program of the Department of Defense that 
     after the date of the enactment of this Act is designated by 
     the Secretary of Defense (pursuant to applicable Department 
     of Defense acquisition regulations and policy) to be managed 
     as a separate acquisition program.
       (c) Relationship to Other Program Elements.--The program 
     element established pursuant to subsection (a) is in addition 
     to the program elements for activities of the Ballistic 
     Missile Defense Organization required under section 251 of 
     the National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 233; 10 U.S.C. 221 note).

     SEC. 234. ANNUAL REPORT ON THREAT POSED TO THE UNITED STATES 
                   BY WEAPONS OF MASS DESTRUCTION, BALLISTIC 
                   MISSILES, AND CRUISE MISSILES.

       (a) Annual Report.--The Secretary of Defense shall submit 
     to Congress by January 30 of each year a report on the 
     threats posed to the United States and allies of the United 
     States--
       (1) by weapons of mass destruction, ballistic missiles, and 
     cruise missiles; and
       (2) by the proliferation of weapons of mass destruction, 
     ballistic missiles, and cruise missiles.
       (b) Consultation.--Each report submitted under subsection 
     (a) shall be prepared in consultation with the Director of 
     Central Intelligence.
       (c) Matters To Be Included.--Each report submitted under 
     subsection (a) shall include the following:

[[Page H9088]]

       (1) Identification of each foreign country and non-State 
     organization that possesses weapons of mass destruction, 
     ballistic missiles, or cruise missiles, and a description of 
     such weapons and missiles with respect to each such 
     foreign country and non-State organization.
       (2) A description of the means by which any foreign country 
     and non-State organization that has achieved capability with 
     respect to weapons of mass destruction, ballistic missiles, 
     or cruise missiles has achieved that capability, including a 
     description of the international network of foreign countries 
     and private entities that provide assistance to foreign 
     countries and non-State organizations in achieving that 
     capability.
       (3) An examination of the doctrines that guide the use of 
     weapons of mass destruction in each foreign country that 
     possesses such weapons.
       (4) An examination of the existence and implementation of 
     the control mechanisms that exist with respect to nuclear 
     weapons in each foreign country that possesses such weapons.
       (5) Identification of each foreign country and non-State 
     organization that seeks to acquire or develop (indigenously 
     or with foreign assistance) weapons of mass destruction, 
     ballistic missiles, or cruise missiles, and a description of 
     such weapons and missiles with respect to each such foreign 
     country and non-State organization.
       (6) An assessment of various possible timelines for the 
     achievement by foreign countries and non-State organizations 
     of capability with respect to weapons of mass destruction, 
     ballistic missiles, and cruise missiles, taking into account 
     the probability of whether the Russian Federation and the 
     People's Republic of China will comply with the Missile 
     Technology Control Regime, the potential availability of 
     assistance from foreign technical specialists, and the 
     potential for independent sales by foreign private entities 
     without authorization from their national Governments.
       (7) For each foreign country or non-State organization that 
     has not achieved the capability to target the United States 
     or its territories with weapons of mass destruction, 
     ballistic missiles, or cruise missiles as of the date of the 
     enactment of this Act, an estimate of how far in advance the 
     United States is likely to be warned before such foreign 
     country or non-State organization achieves that capability.
       (8) For each foreign country or non-State organization that 
     has not achieved the capability to target members of the 
     United States Armed Forces deployed abroad with weapons of 
     mass destruction, ballistic missiles, or cruise missiles as 
     of the date of the enactment of this Act, an estimate of how 
     far in advance the United States is likely to be warned 
     before such foreign country or non-State organization 
     achieves that capability.
       (d) Classification.--Each report under subsection (a) shall 
     be submitted in classified and unclassified form.

     SEC. 235. DIRECTOR OF BALLISTIC MISSILE DEFENSE ORGANIZATION.

       (a) In General.--Subchapter II of chapter 8 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 203. Director of Ballistic Missile Defense 
       Organization

       ``If an officer of the armed forces on active duty is 
     appointed to the position of Director of the Ballistic 
     Missile Defense Organization, the position shall be treated 
     as having been designated by the President as a position of 
     importance and responsibility for purposes of section 601 of 
     this title and shall carry the grade of lieutenant general or 
     general or, in the case of an officer of the Navy, vice 
     admiral or admiral.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by adding at the end 
     the following new item:

``203. Director of Ballistic Missile Defense Organization.''.

     SEC. 236. REPEAL OF REQUIRED DEPLOYMENT DATES FOR CORE 
                   THEATER MISSILE DEFENSE PROGRAMS.

       Section 234(a) of the Ballistic Missile Defense Act of 1995 
     (subtitle C of title II of Public Law 104-106; 110 Stat. 229; 
     10 U.S.C. 2431 note) is amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``, to be carried out so as to achieve the specified 
     capabilities'';
       (2) in paragraph (1), by striking out ``, with a first unit 
     equipped (FUE) during fiscal year 1998'';
       (3) in paragraph (2), by striking out ``Navy Lower Tier 
     (Area) system'' and all that follows through ``fiscal year 
     1999'' and inserting in lieu thereof ``Navy Area Defense 
     system'';
       (4) in paragraph (3), by striking out ``, with a'' and all 
     that follows through ``fiscal year 2000''; and
       (5) in paragraph (4), by striking out ``Navy Upper Tier'' 
     and all that follows through ``fiscal year 2001'' and 
     inserting in lieu thereof ``Navy Theater Wide system''.
                       Subtitle D--Other Matters

     SEC. 241. RESTRUCTURING OF NATIONAL OCEANOGRAPHIC PARTNERSHIP 
                   PROGRAM ORGANIZATIONS.

       (a) National Ocean Research Leadership Council.--Section 
     7902 of title 10, United States Code, is amended--
       (1) in subsection (b)--
       (A) by striking out paragraphs (11), (14), (15), (16) and 
     (17); and
       (B) by redesignating paragraphs (12) and (13) as paragraphs 
     (11) and (12), respectively;
       (2) by striking out subsection (d); and
       (3) by redesignating subsections (e), (f), (g), (h), and 
     (i) as subsections (d), (e), (f), (g), and (h), respectively.
       (b) Ocean Research Advisory Panel.--(1) The text of section 
     7903 of such title is amended to read as follows:
       ``(a) Establishment.--The Council shall establish an Ocean 
     Research Advisory Panel consisting of not less than 10 and 
     not more than 18 members appointed by the chairman, including 
     the following:
       ``(1) One member who will represent the National Academy of 
     Sciences.
       ``(2) One member who will represent the National Academy of 
     Engineering
       ``(3) One member who will represent the Institute of 
     Medicine.
       ``(4) Members selected from among individuals who will 
     represent the views of ocean industries, State governments, 
     academia, and such other views as the chairman considers 
     appropriate.
       ``(5) Members selected from among individuals eminent in 
     the fields of marine science or marine policy, or related 
     fields.
       ``(b) Responsibilities.--The Council shall assign the 
     following responsibilities to the Advisory Panel:
       ``(1) To advise the Council on policies and procedures to 
     implement the National Oceanographic Partnership Program.
       ``(2) To advise the Council on selection of partnership 
     projects and allocation of funds for partnership projects for 
     implementation under the program.
       ``(3) To advise the Council on matters relating to national 
     oceanographic data requirements.
       ``(4) Any additional responsibilities that the Council 
     considers appropriate.
       ``(c) Funding.--The Secretary of the Navy annually shall 
     make funds available to support the activities of the 
     Advisory Panel.''.
       (2) Section 282(c) of the National Defense Authorization 
     Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2473) 
     is amended by striking out ``January 1, 1997'' and inserting 
     in lieu thereof ``January 1, 1998''.
       (c) Conforming Amendments.--Section 282 of the National 
     Defense Authorization Act for Fiscal Year 1997 is amended--
       (1) by striking out subsection (b); and
       (2) by redesignating subsections (c), (d), (e), and (f) as 
     subsections (b), (c), (d), and (e), respectively.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall be effective as of September 23, 1996, as if 
     included in section 282 of Public Law 104-201.

     SEC. 242. MAINTENANCE AND REPAIR OF REAL PROPERTY AT AIR 
                   FORCE INSTALLATIONS.

       (a) In General.--Chapter 949 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 9782. Maintenance and repair of real property

       ``(a) Allocation of Funds.--The Secretary of the Air Force 
     shall allocate funds authorized to be appropriated by a 
     provision described in subsection (c) and a provision 
     described in subsection (d) for maintenance and repair of 
     real property at military installations of the Department of 
     the Air Force without regard to whether the installation is 
     supported with funds authorized by a provision described in 
     subsection (c) or (d).
       ``(b) Mixing of Funds Prohibited on Individual Projects.--
     The Secretary of the Air Force may not combine funds 
     authorized to be appropriated by a provision described in 
     subsection (c) and funds authorized to be appropriated by a 
     provision described in subsection (d) for an individual 
     project for maintenance and repair of real property at a 
     military installation of the Department of the Air Force.
       ``(c) Research, Development, Test, and Evaluation Funds.--
     The provision described in this subsection is a provision of 
     a national defense authorization Act that authorizes funds to 
     be appropriated for a fiscal year to the Air Force for 
     research, development, test, and evaluation.
       ``(d) Operation and Maintenance Funds.--The provision 
     described in this subsection is a provision of a national 
     defense authorization Act that authorizes funds to be 
     appropriated for a fiscal year to the Air Force for operation 
     and maintenance.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``9782. Maintenance and repair of real property.''.

     SEC. 243. EXPANSION OF ELIGIBILITY FOR THE DEFENSE 
                   EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE 
                   RESEARCH.

       Section 257 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; U.S.C. 2358 note) is 
     amended by adding at the end ( the following new subsection:
       ``(f) State Defined.--In this section, the term `State' 
     means a State of the United States, the District of Columbia, 
     the Commonwealth of Puerto Rico, Guam, the Virgin Islands, 
     American Samoa, and the Commonwealth of the Northern Mariana 
     Islands.''.

     SEC. 244. BIOASSAY TESTING OF VETERANS EXPOSED TO IONIZING 
                   RADIATION DURING MILITARY SERVICE.

       (a) Nuclear Test Personnel Program.--Of the amount provided 
     in section 201(4), $300,000 shall be available for testing 
     described in subsection (b) in support of the Nuclear Test 
     Personnel Program conducted by the Defense Special Weapons 
     Agency.
       (b) Covered Testing.--Subsection (a) applies to the third 
     phase of bioassay testing of individuals who are radiation-
     exposed veterans (as defined in section 1112(c)(3)(A) of 
     title 38, United States Code) who participated in radiation-
     risk activities (as defined in section 1112(c)(3)(B) of such 
     title).

     SEC. 245. SENSE OF CONGRESS REGARDING COMANCHE PROGRAM.

       It is the sense of Congress that the Department of Defense 
     should--
       (1) evaluate technology transfer and acquisition 
     initiatives within the Army Comanche program that have the 
     potential to increase the efficiency or reduce the risk of 
     the Comanche program; and

[[Page H9089]]

       (2) include adequate funding for those initiatives that the 
     Department deems to be meritorious in the future-years 
     defense program (as submitted to Congress under section 221 
     of title 10, United States Code).
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Fisher House Trust Funds.
Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
Sec. 306. Refurbishment of M1-A1 tanks.
Sec. 307. Operation of prepositioned fleet, National Training Center, 
              Fort Irwin, California.
Sec. 308. Refurbishment and installation of air search radar.
Sec. 309. Contracted training flight services.
Sec. 310. Procurement technical assistance programs.
Sec. 311. Operation of Fort Chaffee, Arkansas.

                 Subtitle B--Military Readiness Issues

Sec. 321. Monthly reports on allocation of funds within operation and 
              maintenance budget subactivities.
Sec. 322. Expansion of scope of quarterly readiness reports.
Sec. 323. Semiannual reports on transfers from high-priority readiness 
              appropriations.
Sec. 324. Annual report on aircraft inventory.
Sec. 325. Administrative actions adversely affecting military training 
              or other readiness activities.
Sec. 326. Common measurement of operations tempo and personnel tempo.
Sec. 327. Inclusion of Air Force depot maintenance as operation and 
              maintenance budget line items.
Sec. 328. Prohibition of implementation of tiered readiness system.
Sec. 329. Report on military readiness requirements of the Armed 
              Forces.
Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
Sec. 331. Report on military exercises conducted under certain training 
              exercises programs
Sec. 332. Report on overseas deployments.

                  Subtitle C--Environmental Provisions

Sec. 341. Revision of membership terms for Strategic Environmental 
              Research and Development Program Scientific Advisory 
              Board.
Sec. 342. Amendments to authority to enter into agreements with other 
              agencies in support of environmental technology 
              certification.
Sec. 343. Modifications of authority to store and dispose of nondefense 
              toxic and hazardous materials.
Sec. 344. Annual report on payments and activities in response to fines 
              and penalties assessed under environmental laws.
Sec. 345. Annual report on environmental activities of the Department 
              of Defense overseas.
Sec. 346. Review of existing environmental consequences of the presence 
              of the Armed Forces in Bermuda.
Sec. 347. Sense of Congress on deployment of United States Armed Forces 
              abroad for environmental preservation activities.
Sec. 348. Recovery and sharing of costs of environmental restoration at 
              Department of Defense sites.
Sec. 349. Partnerships for investment in innovative environmental 
              technologies.
Sec. 350. Procurement of recycled copier paper.
Sec. 351. Pilot program for the sale of air pollution emission 
              reduction incentives.

                   Subtitle D--Depot-Level Activities

Sec. 355. Definition of depot-level maintenance and repair.
Sec. 356. Core logistics capabilities of Department of Defense.
Sec. 357. Increase in percentage of depot-level maintenance and repair 
              that may be contracted for performance by non-government 
              personnel.
Sec. 358. Annual report on depot-level maintenance and repair.
Sec. 359. Requirement for use of competitive procedures in contracting 
              for performance of depot-level maintenance and repair 
              workloads formerly performed at closed or realigned 
              military installations.
Sec. 360. Clarification of prohibition on management of depot employees 
              by constraints on personnel levels.
Sec. 361. Centers of Industrial and Technical Excellence.
Sec. 362. Extension of authority for aviation depots and naval 
              shipyards to engage in defense-related production and 
              services.
Sec. 363. Repeal of a conditional repeal of certain depot-level 
              maintenance and repair laws and a related reporting 
              requirement.
Sec. 364. Personnel reductions, Army depots participating in Army 
              Workload and Performance System.
Sec. 365. Report on allocation of core logistics activities among 
              Department of Defense facilities and private sector 
              facilities.
Sec. 366. Review of use of temporary duty assignments for ship repair 
              and maintenance.
Sec. 367. Sense of Congress regarding realignment of performance of 
              ground communication-electronic workload.

  Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 371. Reorganization of laws regarding commissaries and exchanges 
              and other morale, welfare, and recreation activities.
Sec. 372. Merchandise and pricing requirements for commissary stores.
Sec. 373. Limitation on noncompetitive procurement of brand-name 
              commercial items for resale in commissary stores.
Sec. 374. Treatment of revenues derived from commissary store 
              activities.
Sec. 375. Maintenance, repair, and renovation of Armed Forces 
              Recreation Center, Europe.
Sec. 376. Plan for use of public and private partnerships to benefit 
              morale, welfare, and recreation activities.

                       Subtitle F--Other Matters

Sec. 381. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 382. Center for Excellence in Disaster Management and Humanitarian 
              Assistance.
Sec. 383. Applicability of Federal printing requirements to Defense 
              Automated Printing Service.
Sec. 384. Study and notification requirements for conversion of 
              commercial and industrial type functions to contractor 
              performance.
Sec. 385. Collection and retention of cost information data on 
              converted services and functions.
Sec. 386. Financial assistance to support additional duties assigned to 
              Army National Guard.
Sec. 387. Competitive procurement of printing and duplication services.
Sec. 388. Continuation and expansion of demonstration program to 
              identify overpayments made to vendors.
Sec. 389. Development of standard forms regarding performance work 
              statement and request for proposal for conversion of 
              certain operational functions of military installations.
Sec. 390. Base operations support for military installations on Guam.
Sec. 391. Warranty claims recovery pilot program.
Sec. 392. Program to investigate fraud, waste, and abuse within 
              Department of Defense.
Sec. 393. Multitechnology automated reader card demonstration program.
Sec. 394. Reduction in overhead costs of Inventory Control Points.
Sec. 395. Inventory management.
              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     expenses, not otherwise provided for, for operation and 
     maintenance, in amounts as follows:
       (1) For the Army, $17,174,589,000.
       (2) For the Navy, $21,947,656,000.
       (3) For the Marine Corps, $2,424,645,000.
       (4) For the Air Force, $19,172,985,000.
       (5) For Defense-wide activities, $10,242,607,000.
       (6) For the Army Reserve, $1,207,981,000.
       (7) For the Naval Reserve, $846,711,000.
       (8) For the Marine Corps Reserve, $116,366,000.
       (9) For the Air Force Reserve, $1,631,200,000.
       (10) For the Army National Guard, $2,311,432,000.
       (11) For the Air National Guard, $2,999,782,000.
       (12) For the Defense Inspector General, $136,580,000.
       (13) For the United States Court of Appeals for the Armed 
     Forces, $6,952,000.
       (14) For Environmental Restoration, Army, $375,337,000.
       (15) For Environmental Restoration, Navy, $275,500,000.
       (16) For Environmental Restoration, Air Force, 
     $376,900,000.
       (17) For Environmental Restoration, Defense-wide, 
     $26,900,000.
       (18) For Environmental Restoration, Formerly Used Defense 
     Sites, $202,300,000.
       (19) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $47,130,000.
       (20) For Drug Interdiction and Counter-drug Activities, 
     Defense-wide, $666,882,000.
       (21) For the Kaho'olawe Island Conveyance, Remediation, and 
     Environmental Restoration Trust Fund, $10,000,000.
       (22) For Medical Programs, Defense, $9,957,782,000.
       (23) For Cooperative Threat Reduction programs, 
     $382,200,000.
       (24) For Overseas Contingency Operations Transfer Fund, 
     $1,253,900,000.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     providing capital for working capital and revolving funds in 
     amounts as follows:
       (1) For the Defense Working Capital Funds, $971,952,000.
       (2) For the National Defense Sealift Fund, $1,059,948,000.

     SEC. 303. ARMED FORCES RETIREMENT HOME.

       There is hereby authorized to be appropriated for fiscal 
     year 1998 from the Armed Forces Retirement Home Trust Fund 
     the sum of

[[Page H9090]]

     $79,977,000 for the operation of the Armed Forces Retirement 
     Home, including the United States Soldiers' and Airmen's Home 
     and the Naval Home.

     SEC. 304. FISHER HOUSE TRUST FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998, out of funds in Fisher House Trust Funds not 
     otherwise appropriated, for the operation of Fisher houses 
     described in section 2221(d) of title 10, United States Code, 
     as follows:
       (1) From the Fisher House Trust Fund, Department of the 
     Army, $250,000 for Fisher houses that are located in 
     proximity to medical treatment facilities of the Army.
       (2) From the Fisher House Trust Fund, Department of the 
     Navy, $150,000 for Fisher houses that are located in 
     proximity to medical treatment facilities of the Navy.

     SEC. 305. TRANSFER FROM NATIONAL DEFENSE STOCKPILE 
                   TRANSACTION FUND.

       (a) Transfer Authority.--To the extent provided in 
     appropriations Acts, not more than $150,000,000 is authorized 
     to be transferred from the National Defense Stockpile 
     Transaction Fund to operation and maintenance accounts for 
     fiscal year 1998 in amounts as follows:
       (1) For the Army, $50,000,000.
       (2) For the Navy, $50,000,000.
       (3) For the Air Force, $50,000,000.
       (b) Treatment of Transfers.--Amounts transferred under this 
     section--
       (1) shall be merged with, and be available for the same 
     purposes and the same period as, the amounts in the accounts 
     to which transferred; and
       (2) may not be expended for an item that has been denied 
     authorization of appropriations by Congress.
       (c) Relationship to Other Transfer Authority.--The transfer 
     authority provided in this section is in addition to the 
     transfer authority provided in section 1001.

     SEC. 306. REFURBISHMENT OF M1-A1 TANKS.

       Of the amount authorized to be appropriated pursuant to 
     section 301(1) for operation and maintenance for the Army, 
     $35,000,000 shall be available only for refurbishment of M1-
     A1 tanks under the AIM-XXI program if the Secretary of 
     Defense determines that the cost effectiveness of the pilot 
     AIM-XXI program is validated through user trials conducted at 
     the National Training Center, Fort Irwin, California.

     SEC. 307. OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING 
                   CENTER, FORT IRWIN, CALIFORNIA.

       Of the amount authorized to be appropriated pursuant to 
     section 301(1) for operation and maintenance for the Army, 
     $60,200,000 shall be available only to pay costs associated 
     with the operation of the prepositioned fleet of equipment 
     during training rotations at the National Training Center, 
     Fort Irwin, California.

     SEC. 308. REFURBISHMENT AND INSTALLATION OF AIR SEARCH RADAR.

       Of the amount authorized to be appropriated pursuant to 
     section 301(2) for operation and maintenance for the Navy, 
     $6,000,000 may be available for the refurbishment and 
     installation of the AN/SPS-48E air search radar for the Ship 
     Self Defense System at the Integrated Ship Defense Systems 
     Engineering Center, Naval Surface Warfare Center, Wallops 
     Islands, Virginia.

     SEC. 309. CONTRACTED TRAINING FLIGHT SERVICES.

       Of the amount authorized to be appropriated pursuant to 
     section 301(4) for operation and maintenance for the Air 
     Force, $12,000,000 may be used for contracted training flight 
     services.

     SEC. 310. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

       (a) Funding.--Of the amount authorized to be appropriated 
     under section 301(5), $12,000,000 shall be available for 
     carrying out the provisions of chapter 142 of title 10, 
     United States Code.
       (b) Specific Programs.--Of the amounts made available 
     pursuant to subsection (a), $600,000 shall be available for 
     fiscal year 1998 for the purpose of carrying out programs 
     sponsored by eligible entities referred to in subparagraph 
     (D) of section 2411(1) of title 10, United States Code, that 
     provide procurement technical assistance in distressed areas 
     referred to in subparagraph (B) of section 2411(2) of such 
     title. If there is an insufficient number of satisfactory 
     proposals for cooperative agreements in such distressed 
     areas to allow effective use of the funds made available 
     in accordance with this subsection in such areas, the 
     funds shall be allocated among the Defense Contract 
     Administration Services regions in accordance with section 
     2415 of such title.

     SEC. 311. OPERATION OF FORT CHAFFEE, ARKANSAS.

       Of the amount authorized to be appropriated pursuant to 
     section 301(10) for operation and maintenance for the Army 
     National Guard, $6,854,000 may be available for the operation 
     of Fort Chaffee, Arkansas.
                 Subtitle B--Military Readiness Issues

     SEC. 321. MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN 
                   OPERATION AND MAINTENANCE BUDGET SUBACTIVITIES.

       (a) In General.--(1) Chapter 9 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 228. Monthly reports on allocation of funds within 
       operation and maintenance budget subactivities

       ``(a) Monthly Report.--The Secretary of Defense shall 
     submit to Congress a monthly report on the allocation of 
     appropriations to O&M budget activities and to the 
     subactivities of those budget activities. Each such report 
     shall be submitted not later than 60 days after the end of 
     the month to which the report pertains.
       ``(b) Matters To Be Included.--Each such report shall set 
     forth the following for each subactivity of the O&M budget 
     activities:
       ``(1) The amount of budget authority appropriated for that 
     subactivity in the most recent regular Department of Defense 
     Appropriations Act.
       ``(2) The amount of budget authority actually made 
     available for that subactivity, taking into consideration 
     supplemental appropriations, rescissions, and other 
     adjustments required by law or made pursuant to law.
       ``(3) The amount programmed to be expended from such 
     subactivity.
       ``(c) Identification of Certain Fluctuations.--(1) If, in 
     the report under this section for a month of a fiscal year 
     after the first month of that fiscal year, an amount shown 
     under subsection (b) for a subactivity is different by more 
     than $15,000,000 from the corresponding amount for that 
     subactivity in the report for the first month of that fiscal 
     year, the Secretary shall include in the report notice of 
     that difference.
       ``(2) If, in the report under this section for a month of a 
     fiscal year after a month for which the report under this 
     section includes a notice under paragraph (1), an amount 
     shown under subsection (b) for a subactivity is different by 
     more than $15,000,000 from the corresponding amount for that 
     subactivity in the most recent report that includes a notice 
     under paragraph (1) or this paragraph, the Secretary shall 
     include in the report notice of that difference.
       ``(d) Report on Fluctuations.--If a report under this 
     section includes a notice under subsection (c), the Secretary 
     shall include in the report with each such notice the 
     following:
       ``(1) The reasons for the reallocations of funds resulting 
     in the inclusion of that notice in the report.
       ``(2) Each budget subactivity involved in those 
     reallocations.
       ``(3) The effect of those reallocations on the operation 
     and maintenance activities funded through the subactivity 
     with respect to which the notice is included in the report.
       ``(e) O&M Budget Activity Defined.--For purposes of this 
     section, the term `O&M budget activity' means a budget 
     activity within an operation and maintenance appropriation of 
     the Department of Defense for a fiscal year.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``228. Monthly reports on allocation of funds within operation and 
              maintenance budget subactivities.''.

       (b) Effective Date.--The first report under section 228 of 
     title 10, United States Code, as added by subsection (a), 
     shall be for the month of December 1997.

     SEC. 322. EXPANSION OF SCOPE OF QUARTERLY READINESS REPORTS.

       (a) Expanded Reports Required.--(1) Section 482 of title 
     10, United States Code, is amended to read as follows:

     ``Sec. 482. Quarterly reports: personnel and unit readiness

       ``(a) Quarterly Reports Required.--Not later than 30 days 
     after the end of each calendar-year quarter, the Secretary of 
     Defense shall submit to Congress a report regarding military 
     readiness. The report for a quarter shall contain the 
     information required by subsections (b), (d), and (e).
       ``(b) Readiness Problems and Remedial Actions.--Each report 
     shall specifically describe--
       ``(1) each readiness problem and deficiency identified 
     using the assessments considered under subsection (c);
       ``(2) planned remedial actions; and
       ``(3) the key indicators and other relevant information 
     related to each identified problem and deficiency.
       ``(c) Consideration of Readiness Assessments.--The 
     information required under subsection (b) to be included in 
     the report for a quarter shall be based on readiness 
     assessments that are provided during that quarter--
       ``(1) to any council, committee, or other body of the 
     Department of Defense--
       ``(A) that has responsibility for readiness oversight; and
       ``(B) whose membership includes at least one civilian 
     officer in the Office of the Secretary of Defense at the 
     level of Assistant Secretary of Defense or higher;
       ``(2) by senior civilian and military officers of the 
     military departments and the commanders of the unified and 
     specified commands; and
       ``(3) as part of any regularly established process of 
     periodic readiness reviews for the Department of Defense as a 
     whole.
       ``(d) Comprehensive Readiness Indicators for Active 
     Components.--Each report shall also include information 
     regarding each of the active components of the armed forces 
     (and an evaluation of such information) with respect to each 
     of the following readiness indicators:
       ``(1) Personnel strength.--
       ``(A) Personnel status, including the extent to which 
     members of the armed forces are serving in positions outside 
     of their military occupational specialty, serving in grades 
     other than the grades for which they are qualified, or both.
       ``(B) Historical data and projected trends in personnel 
     strength and status.
       ``(2) Personnel turbulence.--
       ``(A) Recruit quality.
       ``(B) Borrowed manpower.
       ``(C) Personnel stability.
       ``(3) Other personnel matters.--
       ``(A) Personnel morale.
       ``(B) Recruiting status.
       ``(4) Training.--
       ``(A) Training unit readiness and proficiency.
       ``(B) Operations tempo.
       ``(C) Training funding.
       ``(D) Training commitments and deployments.
       ``(5) Logistics--equipment fill.--
       ``(A) Deployed equipment.
       ``(B) Equipment availability.
       ``(C) Equipment that is not mission capable.
       ``(D) Age of equipment.
       ``(E) Condition of nonpacing items.

[[Page H9091]]

       ``(6) Logistics--equipment maintenance.--
       ``(A) Maintenance backlog.
       ``(7) Logistics--supply.--
       ``(A) Availability of ordnance and spares.
       ``(B) Status of prepositioned equipment.
       ``(e) Unit Readiness Indicators.--Each report shall also 
     include information regarding the readiness of each active 
     component unit of the armed forces at the battalion, 
     squadron, or an equivalent level (or a higher level) that 
     received a readiness rating of C-3 (or below) for any month 
     of the calendar-year quarter covered by the report. With 
     respect to each such unit, the report shall separately 
     provide the following information:
       ``(1) The unit designation and level of organization.
       ``(2) The overall readiness rating for the unit for the 
     quarter and each month of the quarter.
       ``(3) The resource area or areas (personnel, equipment and 
     supplies on hand, equipment condition, or training) that 
     adversely affected the unit's readiness rating for the 
     quarter.
       ``(4) The reasons why the unit received a readiness rating 
     of C-3 (or below).
       ``(f) Classification of Reports.--A report under this 
     section shall be submitted in unclassified form. To the 
     extent the Secretary of Defense determines necessary, the 
     report may also be submitted in classified form.''.
       (2) The item relating to section 482 in the table of 
     sections at the beginning of chapter 23 of such title is 
     amended to read as follows:

``482. Quarterly reports: personnel and unit readiness.''.

       (b) Implementation Plan To Examine Readiness Indicators.--
     Not later than January 15, 1998, the Secretary of Defense 
     shall submit to the congressional defense committees a plan--
       (1) specifying the manner in which the Secretary will 
     implement the additional reporting requirement of subsection 
     (d) of section 482 of title 10, United States Code, as added 
     by this section; and
       (2) specifying the criteria proposed to be used to evaluate 
     the readiness indicators identified in such subsection (d).
       (c) Limitation Pending Receipt of Implementation Plan.--Of 
     the amount available for fiscal year 1998 for operation and 
     support activities of the Office of the Secretary of Defense, 
     10 percent may not be obligated until after the date on which 
     the implementation plan required by subsection (b) is 
     submitted.
       (d) Transition to Complete Report.--Until the report under 
     section 482 of title 10, United States Code, as amended by 
     subsection (a), for the third quarter of 1998 is submitted, 
     the Secretary of Defense may omit the information required by 
     subsection (d) of such section if the Secretary determines 
     that it is impracticable to comply with such subsection with 
     regard to the preceding reports.

     SEC. 323. SEMIANNUAL REPORTS ON TRANSFERS FROM HIGH-PRIORITY 
                   READINESS APPROPRIATIONS.

       (a) Reports Required.--Chapter 23 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 483. Reports on transfers from high-priority readiness 
       appropriations

       ``(a) Annual Reports.--Not later than the date on which the 
     President submits the budget for a fiscal year to Congress 
     pursuant to section 1105 of title 31, the Secretary of 
     Defense shall submit to the Committee on Armed Services and 
     the Committee on Appropriations of the Senate and the 
     Committee on National Security and the Committee on 
     Appropriations of the House of Representatives a report on 
     transfers during the preceding fiscal year from funds 
     available for each covered budget activity.
       ``(b) Midyear Reports.--Not later than June 1 of each 
     fiscal year, the Secretary of Defense shall submit to the 
     congressional committees specified in subsection (a) a report 
     on transfers, during the first six months of that fiscal 
     year, from funds available for each covered budget 
     activity.
       ``(c) Matters To Be Included.--In each report under 
     subsection (a) or (b), the Secretary of Defense shall include 
     for each covered budget activity the following:
       ``(1) A statement, for the period covered by the report, 
     of--
       ``(A) the total amount of transfers into funds available 
     for that activity;
       ``(B) the total amount of transfers from funds available 
     for that activity; and
       ``(C) the net amount of transfers into, or out of, funds 
     available for that activity.
       ``(2) A detailed explanation of the transfers into, and out 
     of, funds available for that activity during the period 
     covered by the report.
       ``(d) Covered Budget Activity Defined.--In this section, 
     the term `covered budget activity' means each of the 
     following:
       ``(1) The budget activity groups (known as `subactivities') 
     within the Operating Forces budget activity of the annual 
     Operation and Maintenance, Army, appropriation that are 
     designated as follows:
       ``(A) All subactivities under the category of Land Forces.
       ``(B) Land Forces Depot Maintenance.
       ``(C) Base Support.
       ``(D) Maintenance of Real Property.
       ``(2) The Air Operations budget activity groups (known as 
     `subactivities') within the Operating Forces budget activity 
     of the annual Operation and Maintenance, Navy, appropriation 
     that are designated as follows:
       ``(A) Mission and Other Flight Operations.
       ``(B) Fleet Air Training.
       ``(C) Aircraft Depot Maintenance.
       ``(D) Base Support.
       ``(E) Maintenance of Real Property.
       ``(3) The Ship Operations budget activity groups (known as 
     `subactivities') within the Operating Forces budget activity 
     of the annual Operation and Maintenance, Navy, appropriation 
     that are designated as follows:
       ``(A) Mission and Other Ship Operations.
       ``(B) Ship Operational Support and Training.
       ``(C) Ship Depot Maintenance.
       ``(D) Base Support.
       ``(E) Maintenance of Real Property.
       ``(4) The Expeditionary Forces budget activity groups 
     (known as `subactivities') within the Operating Forces budget 
     activity of the annual Operation and Maintenance, Marine 
     Corps, appropriation that are designated as follows:
       ``(A) Operational Forces.
       ``(B) Depot Maintenance.
       ``(C) Base Support.
       ``(D) Maintenance of Real Property.
       ``(5) The Air Operations and Combat Related Operations 
     budget activity groups (known as `subactivities') within the 
     Operating Forces budget activity of the annual Operation and 
     Maintenance, Air Force, appropriation that are designated as 
     follows:
       ``(A) Primary Combat Forces.
       ``(B) Primary Combat Weapons.
       ``(C) Air Operations Training.
       ``(D) Depot Maintenance.
       ``(E) Base Support.
       ``(F) Maintenance of Real Property.
       ``(6) The Mobility Operations budget activity group (known 
     as a `subactivity') within the Mobilization budget activity 
     of the annual Operation and Maintenance, Air Force, 
     appropriation that is designated as Airlift Operations.
       ``(e) Termination.--The requirements specified in 
     subsections (a) and (b) shall terminate upon the submission 
     of the annual report under subsection (a) covering fiscal 
     year 2000.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``483. Reports on transfers from high-priority readiness 
              appropriations.''.

     SEC. 324. ANNUAL REPORT ON AIRCRAFT INVENTORY.

       (a) Annual Report Required.--(1) Chapter 23 of title 10, 
     United States Code, is amended by inserting after section 
     483, as added by section 323, the following new section:

     ``Sec. 484. Annual report on aircraft inventory

       ``(a) Annual Report.--The Under Secretary of Defense 
     (Comptroller) shall submit to Congress each year a report on 
     the aircraft in the inventory of the Department of Defense. 
     The Under Secretary shall submit the report when the 
     President submits the budget to Congress under section 
     1105(a) of title 31.
       ``(b) Content.--The report shall set forth, in accordance 
     with subsection (c), the following information:
       ``(1) The total number of aircraft in the inventory.
       ``(2) The total number of the aircraft in the inventory 
     that are active, stated in the following categories (with 
     appropriate subcategories for mission aircraft, training 
     aircraft, dedicated test aircraft, and other aircraft):
       ``(A) Primary aircraft.
       ``(B) Backup aircraft.
       ``(C) Attrition and reconstitution reserve aircraft.
       ``(3) The total number of the aircraft in the inventory 
     that are inactive, stated in the following categories:
       ``(A) Bailment aircraft.
       ``(B) Drone aircraft.
       ``(C) Aircraft for sale or other transfer to foreign 
     governments.
       ``(D) Leased or loaned aircraft.
       ``(E) Aircraft for maintenance training.
       ``(F) Aircraft for reclamation.
       ``(G) Aircraft in storage.
       ``(4) The aircraft inventory requirements approved by the 
     Joint Chiefs of Staff.
       ``(c) Display of Information.--The report shall specify the 
     information required by subsection (b) separately for the 
     active component of each armed force and for each reserve 
     component of each armed force and, within the information set 
     forth for each such component, shall specify the information 
     separately for each type, model, and series of aircraft 
     provided for in the future-years defense program submitted to 
     Congress.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     483, as added by section 323, the following new item:

``484. Report on aircraft inventory.''.

       (b) Special Submission Date for First Report.--The Under 
     Secretary of Defense (Comptroller) shall submit the first 
     report required under section 484 of title 10, United States 
     Code (as added by subsection (a)), not later than January 30, 
     1998.
       (c) Modification of Budget Data Exhibits.--The Under 
     Secretary of Defense (Comptroller) shall ensure that aircraft 
     budget data exhibits of the Department of Defense that are 
     submitted to Congress display total numbers of active 
     aircraft where numbers of primary aircraft or primary 
     authorized aircraft are displayed in those exhibits.

     SEC. 325. ADMINISTRATIVE ACTIONS ADVERSELY AFFECTING MILITARY 
                   TRAINING OR OTHER READINESS ACTIVITIES.

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

     ``Sec. 2014. Administrative actions adversely affecting 
       military training or other readiness activities

       ``(a) Congressional Notification.--Whenever an official of 
     an Executive agency takes or proposes to take an 
     administrative action that, as determined by the Secretary of 
     Defense in consultation with the Chairman of the Joint Chiefs 
     of Staff, affects training or any other readiness activity 
     in a manner that has or would have a significant adverse 
     effect on the military readiness of any of the armed 
     forces or a critical component thereof, the Secretary 
     shall submit a written notification of the action and

[[Page H9092]]

     each significant adverse effect to the head of the 
     Executive agency taking or proposing to take the 
     administrative action. At the same time, the Secretary 
     shall transmit a copy of the notification to the 
     President, the Committee on Armed Services of the Senate, 
     and the Committee on National Security of the House of 
     Representatives.
       ``(b) Notification To Be Prompt.--(1) Subject to paragraph 
     (2), the Secretary shall submit a written notification of an 
     administrative action or proposed administrative action 
     required by subsection (a) as soon as possible after the 
     Secretary becomes aware of the action or proposed action.
       ``(2) The Secretary shall prescribe policies and procedures 
     to ensure that the Secretary receives information on an 
     administrative action or proposed administrative action 
     described in subsection (a) promptly after Department of 
     Defense personnel receive notice of such an action or 
     proposed action.
       ``(c) Consultation Between Secretary and Head of Executive 
     Agency.--Upon notification with respect to an administrative 
     action or proposed administrative action under subsection 
     (a), the head of the Executive agency concerned shall--
       ``(1) respond promptly to the Secretary; and
       ``(2) consistent with the urgency of the training or 
     readiness activity involved and the provisions of law under 
     which the administrative action or proposed administrative 
     action is being taken, seek to reach an agreement with the 
     Secretary on immediate actions to attain the objective of the 
     administrative action or proposed administrative action in a 
     manner which eliminates or mitigates the adverse effects of 
     the administrative action or proposed administrative action 
     upon the training or readiness activity.
       ``(d) Moratorium.--(1) Subject to paragraph (2), upon 
     notification with respect to an administrative action or 
     proposed administrative action under subsection (a), the 
     administrative action or proposed administrative action shall 
     cease to be effective with respect to the Department of 
     Defense until the earlier of--
       ``(A) the end of the five-day period beginning on the date 
     of the notification; or
       ``(B) the date of an agreement between the head of the 
     Executive agency concerned and the Secretary as a result of 
     the consultations under subsection (c).
       ``(2) Paragraph (1) shall not apply with respect to an 
     administrative action or proposed administrative action if 
     the head of the Executive agency concerned determines that 
     the delay in enforcement of the administrative action or 
     proposed administrative action will pose an actual threat of 
     an imminent and substantial endangerment to public health or 
     the environment.
       ``(e) Effect of Lack of Agreement.--(1) If the head of an 
     Executive agency and the Secretary do not enter into an 
     agreement under subsection (c)(2), the Secretary shall submit 
     a written notification to the President who shall take final 
     action on the matter.
       ``(2) Not later than 30 days after the date on which the 
     President takes final action on a matter under paragraph (1), 
     the President shall submit to the committees referred to in 
     subsection (a) a notification of the action.
       ``(f) Limitation on Delegation of Authority.--The head of 
     an Executive agency may not delegate any responsibility under 
     this section.
       ``(g) Definition.--In this section, the term `Executive 
     agency' has the meaning given such term in section 105 of 
     title 5, except that the term does not include the General 
     Accounting Office.''.
       (b) Clerical Amendment.--The table of sections of the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2014. Administrative actions adversely affecting military training or 
              other readiness activities.''.

     SEC. 326. COMMON MEASUREMENT OF OPERATIONS TEMPO AND 
                   PERSONNEL TEMPO.

       (a) Means for Measurement.--The Chairman of the Joint 
     Chiefs of Staff shall, to the maximum extent practicable, 
     develop (1) a common means of measuring the operations tempo 
     (OPTEMPO) of each of the Armed Forces, and (2) a common means 
     of measuring the personnel tempo (PERSTEMPO) of each of the 
     Armed Forces. The Chairman shall consult with the other 
     members of the Joint Chiefs of Staff in developing those 
     common means of measurement.
       (b) Perstempo Measurement.--The measurement of personnel 
     tempo developed by the Chairman shall include a means of 
     identifying the rate of deployment for individual members of 
     the Armed Forces in addition to the rate of deployment for 
     units.

     SEC. 327. INCLUSION OF AIR FORCE DEPOT MAINTENANCE AS 
                   OPERATION AND MAINTENANCE BUDGET LINE ITEMS.

       For fiscal year 1999 and each fiscal year thereafter, Air 
     Force depot-level maintenance of materiel shall be displayed 
     as one or more separate line items under each subactivity 
     within the authorization request for operation and 
     maintenance, Air Force, in the proposed budget for that 
     fiscal year submitted to Congress pursuant to section 1105 of 
     title 31, United States Code.

     SEC. 328. PROHIBITION OF IMPLEMENTATION OF TIERED READINESS 
                   SYSTEM.

       (a) Prohibition.--The Secretary of a military department 
     may not implement, or be required to implement, a new 
     readiness system for units of the Armed Forces (as outlined 
     in sections 329 and 330), under which a military unit would 
     be categorized into one of several categories (known as 
     ``tiers'') according to the likelihood that the unit will be 
     required to respond to a military conflict and the time in 
     which the unit will be required to respond, if that system 
     would have the effect of changing the methods used as of 
     October 1, 1996, by the Armed Forces under the jurisdiction 
     of that Secretary for determining the priorities for 
     allocating to such military units funding, personnel, 
     equipment, equipment maintenance, and training resources, 
     and the associated levels of readiness of those units that 
     result from those priorities.
       (b) Report to Congress Requesting Waiver.--If the Secretary 
     of Defense determines, following the review required by 
     sections 329 and 330 (or any similar review), that 
     implementation for one or more of the Armed Forces of a 
     tiered readiness system that is prohibited by subsection (a) 
     would be in the national security interests of the United 
     States, the Secretary shall submit to Congress a report 
     setting forth that determination, together with the rationale 
     for that determination, and a request for the enactment of 
     legislation to allow implementation of such a system.
       (c) Rule of Construction.--Nothing in subsection (a) is 
     intended to preclude the Secretary of Defense from taking 
     necessary actions to maintain the combat preparedness of the 
     active and reserve components of the Armed Forces.

     SEC. 329. REPORT ON MILITARY READINESS REQUIREMENTS OF THE 
                   ARMED FORCES.

       (a) Requirement for Report.--Not later than January 31, 
     1998, the Chairman of the Joint Chiefs of Staff shall submit 
     to the congressional defense committees a report on the 
     military readiness requirements of the active and reserve 
     components of the Armed Forces (including combat units, 
     combat support units, and combat service support units). The 
     report shall assess such requirements under a tiered 
     readiness and response system that categorizes a given unit 
     according to the likelihood that it will be required to 
     respond to a military conflict and the time within which it 
     will be required to respond.
       (b) Preparation by JCS and Commanders of Unified 
     Commands.--The report required by subsection (a) shall be 
     prepared jointly by the Chairman of the Joint Chiefs of 
     Staff, the Chief of Staff of the Army, the Chief of Naval 
     Operations, the Chief of Staff of the Air Force, the 
     Commandant of the Marine Corps, the commander of the Special 
     Operations Command, and the commanders of the other unified 
     commands.
       (c) Assessment Scenario.--The report shall assess readiness 
     requirements in a scenario that is based on the following 
     assumptions:
       (1) That the Armed Forces of the United States must be 
     capable of--
       (A) fighting and winning, in concert with allies, two major 
     theater wars nearly simultaneously; and
       (B) deterring or defeating a strategic attack on the United 
     States.
       (2) That the forces available for deployment are the forces 
     included in the force structure recommended in the 
     Quadrennial Defense Review, including all other planned force 
     enhancements.
       (d) Assessment Elements.--(1) The report shall identify, by 
     unit type, all major units of the active and reserve 
     components of the Armed Forces and assess the readiness 
     requirements of the units. Each identified unit shall be 
     categorized within one of the following classifications:
       (A) Forward-deployed and crisis response forces, or ``Tier 
     I'' forces, that possess limited internal sustainment 
     capability and do not require immediate access to regional 
     air bases or ports or overflight rights, including the 
     following:
       (i) Force units that are deployed in rotation at sea or on 
     land outside the United States.
       (ii) Combat-ready crises response forces that are capable 
     of mobilizing and deploying within 10 days after receipt of 
     orders.
       (iii) Forces that are supported by prepositioning equipment 
     afloat or are capable of being inserted into a theater upon 
     the capture of a port or airfield by forcible entry forces.
       (B) Combat-ready follow-on forces, or ``Tier II'' forces, 
     that can be mobilized and deployed to a theater within 
     approximately 60 days after receipt of orders.
       (C) Combat-ready conflict resolution forces, or ``Tier 
     III'' forces, that can be mobilized and deployed to a theater 
     within approximately 180 days after receipt of orders.
       (D) All other active and reserve component force units 
     which are not categorized within a classification described 
     in subparagraph (A), (B), or (C).
       (2) For the purposes of paragraph (1), the following units 
     are major units:
       (A) In the case of the Army or Marine Corps, a brigade and 
     a battalion.
       (B) In the case of the Navy, a squadron of aircraft, a 
     ship, and a squadron of ships.
       (C) In the case of the Air Force, a squadron of aircraft.
       (e) Projection of Savings for Use for Modernization.--The 
     report shall include a projection for fiscal years 1998 
     through 2003 of the amounts of the savings in operation and 
     maintenance funding that--
       (1) could be derived by each of the Armed Forces by placing 
     as many units as is practicable into the lower readiness 
     categories among the tiers; and
       (2) could be made available for force modernization.
       (f) Form of Report.--The report under this section shall be 
     submitted in unclassified form, but may contain a classified 
     annex.
       (g) Planned Force Enhancement Defined.--In this section, 
     the term ``planned force enhancement'', with respect to the 
     force structure recommended in the Quadrennial Defense 
     Review, means any future improvement in the capability of the 
     force (including current strategic and future improvement in 
     strategic lift capability) that is assumed in the development 
     of the recommendation for the force structure set forth in 
     the Quadrennial Defense Review.

[[Page H9093]]

     SEC. 330. ASSESSMENT OF CYCLICAL READINESS POSTURE OF THE 
                   ARMED FORCES.

       (a) Requirement.--(1) Not later than 120 days after the 
     date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a report on the readiness 
     posture of the Armed Forces described in subsection (b).
       (2) The Secretary shall prepare the report required under 
     paragraph (1) with the assistance of the Joint Chiefs of 
     Staff. In providing such assistance, the Chairman of the 
     Joint Chiefs of Staff shall consult with the Chief of the 
     National Guard Bureau.
       (b) Readiness Posture.--(1) The readiness posture to be 
     covered by the report under subsection (a) is a readiness 
     posture for units of the Armed Forces, or for designated 
     units of the Armed Forces, that provides for a rotation of 
     such units between a state of high readiness and a state of 
     low readiness.
       (2) As part of the evaluation of the readiness posture 
     described in paragraph (1), the report shall address in 
     particular a readiness posture that--
       (A) establishes within the Armed Forces two equivalent 
     forces each structured so as to be capable of fighting and 
     winning a major theater war; and
       (B) provides for an alternating rotation of such forces 
     between a state of high readiness and a state of low 
     readiness.
       (3) The evaluation of the readiness posture described in 
     paragraph (2) shall be based upon assumptions permitting 
     comparison with the existing force structure as follows:
       (A) That there are assembled from among the units of the 
     Armed Forces two equivalent forces each structured so as to 
     be capable of fighting and winning a major theater war.
       (B) That each force referred to in subparagraph (A) 
     includes--
       (i) four active Army divisions, including one mechanized 
     division, one armored division, one light infantry division, 
     and one division combining airborne units and air assault 
     units, and appropriate support and service support units for 
     such divisions;
       (ii) six divisions (or division equivalents) of the Army 
     National Guard or the Army Reserve that are essentially 
     equivalent in structure, and appropriate support and service 
     support units for such divisions;
       (iii) six aircraft carrier battle groups;
       (iv) six active Air Force fighter wings (or fighter wing 
     equivalents);
       (v) four Air Force reserve fighter wings (or fighter wing 
     equivalents); and
       (vi) one active Marine Corps expeditionary force.
       (C) That each force may be supplemented by critical units 
     or units in short supply, including heavy bomber units, 
     strategic lift units, and aerial reconnaissance units, that 
     are not subject to the readiness rotation otherwise assumed 
     for purposes of the evaluation or are subject to the rotation 
     on a modified basis.
       (D) That units of the Armed Forces not assigned to a force 
     are available for operations other than those essential to 
     fight and win a major theater war, including peace 
     operations.
       (E) That the state of readiness of each force alternates 
     between a state of high readiness and a state of low 
     readiness on a frequency determined by the Secretary (but not 
     more often than once every six months) and with only one 
     force at a given state of readiness at any one time.
       (F) That, during the period of state of high readiness of a 
     force, any operations or activities (including leave and 
     education and training of personnel) that detract from the 
     near-term wartime readiness of the force are temporary and 
     their effects on such state of readiness minimized.
       (G) That units are assigned overseas during the period of 
     state of high readiness of the force to which the units are 
     assigned primarily on a temporary duty basis.
       (H) That, during the period of high readiness of a force, 
     the operational war plans for the force incorporate the 
     divisions (or division equivalents) of the Army Reserve or 
     Army National Guard assigned to the force in a manner such 
     that one such division (or division equivalent) is, on a 
     rotating basis for such divisions (or division 
     equivalents) during the period, maintained in a high state 
     of readiness and dedicated as the first reserve combat 
     division to be transferred overseas in the event of a 
     major theater war.
       (c) Report Elements.--The report under this section shall 
     include the following elements for the readiness posture 
     described in subsection (b)(2):
       (1) An estimate of the range of cost savings achievable 
     over the long term as a result of implementing the readiness 
     posture, including--
       (A) the savings achievable from reduced training levels and 
     readiness levels during periods in which a force referred to 
     in subsection (b)(3)(A) is in a state of low readiness; and
       (B) the savings achievable from reductions in costs of 
     infrastructure overseas as a result of reduced permanent 
     change of station rotations.
       (2) An assessment of the potential risks associated with a 
     lower readiness status for units assigned to a force in a 
     state of low readiness under the readiness posture, including 
     the risks associated with the delayed availability of such 
     units overseas in the event of two nearly simultaneous major 
     theater wars.
       (3) An assessment of the potential risks associated with 
     requiring the forces under the readiness posture to fight a 
     major war in any theater worldwide.
       (4) An assessment of the modifications of the current force 
     structure of the Armed Forces that are necessary to achieve 
     the range of cost savings estimated under paragraph (1), 
     including the extent of the diminishment, if any, of the 
     military capabilities of the Armed Forces as a result of the 
     modifications.
       (5) An assessment whether or not the risks of diminished 
     military capability associated with implementation of the 
     readiness posture exceed the risks of diminished military 
     capability associated with the modifications of the current 
     force structure necessary to achieve cost savings equivalent 
     to the best case for cost savings resulting from the 
     implementation of the readiness posture.
       (d) Form of Report.--The report under this section shall be 
     submitted in unclassified form, but may contain a classified 
     annex.
       (e) Definitions.--In this section:
       (1) The term ``state of high readiness'', in the case of a 
     military force, means the capability to mobilize first-to-
     arrive units of the force within 18 hours and last-to-arrive 
     units within 120 days of a particular event.
       (2) The term ``state of low readiness'', in the case of a 
     military force, means the capability to mobilize first-to-
     arrive units within 90 days and last-to-arrive units within 
     180 days of a particular event.

     SEC. 331. REPORT ON MILITARY EXERCISES CONDUCTED UNDER 
                   CERTAIN TRAINING EXERCISES PROGRAMS

       (a) Report.--Not later than February 16, 1998, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report on the military 
     exercises conducted by the Department of Defense during 
     fiscal years 1995, 1996, and 1997 and the military exercises 
     planned to be conducted during fiscal years 1998, 1999, and 
     2000, under the following training exercises programs:
       (1) The program known as the ``CJCS Exercise Program''.
       (2) The program known as the ``Partnership for Peace 
     program``.
       (3) The Cooperative Threat Reduction programs.
       (b) Information on Exercises Conducted or To Be 
     Conducted.--The report under subsection (a) shall include the 
     following information for each exercise included in the 
     report, which shall be set forth by fiscal year and shown 
     within the fiscal year by the sponsoring command:
       (1) Name of the exercise.
       (2) Type, description, duration, and objectives of the 
     exercise.
       (3) Participating units, including the number of personnel 
     participating in each unit.
       (4) For each participating unit, the percentage of the 
     tasks on that unit's specification of tasks (known as a 
     mission essential task list) or a comparable specification 
     (in the case of any of the Armed Forces not maintaining a 
     mission essential task list designation) that were performed 
     or are scheduled to be performed as part of the exercise.
       (5) The cost of the exercise paid or to be paid out of 
     funds available to the Chairman of the Joint Chiefs of Staff 
     and the cost to each of the Armed Forces participating in the 
     exercise, with a description of the categories of activities 
     for which those costs are incurred in each such case.
       (6) In the case of each planned exercise, the priority of 
     the exercise in relation to all other exercises planned by 
     the sponsoring command to be conducted during that fiscal 
     year.
       (7) In the case of an exercise conducted or to be conducted 
     in a foreign country or with military personnel of a foreign 
     country, the military forces of the foreign country that 
     participated or will participate in the exercise.
       (c) Assessment.--The report under subsection (a) shall 
     include--
       (1) an assessment of the ability of each of the Armed 
     Forces to meet requirements of the training exercises 
     programs specified in subsection (a);
       (2) an assessment of the training value of each exercise 
     covered in the report to each unit of the Armed Forces 
     participating in the exercise, including for each such unit 
     an assessment of the value of the percentage under subsection 
     (b)(4) as an indicator of the training value of the exercise 
     for that unit;
       (3) options to minimize the negative effects on operational 
     and personnel tempo resulting from the training exercises 
     programs; and
       (4) in the case of exercises to be conducted in a foreign 
     country or with military personnel of a foreign country--
       (A) an assessment of the training value of each exercise 
     covered in the report to the foreign countries involved and 
     the extent to which the exercise enhances the readiness 
     capabilities of all military forces involved in the exercise 
     (both United States and foreign); and
       (B) an assessment of the benefits to be derived through 
     enhanced military-to-military relationships between the 
     United States and foreign countries.
       (d) Funding Limitation Pending Receipt of Report.--Of the 
     funds available for fiscal year 1998 for the conduct of the 
     CJCS Exercise Program, not more than 90 percent may be 
     expended before the date on which the report required under 
     subsection (a) is submitted.

     SEC. 332. REPORT ON OVERSEAS DEPLOYMENTS.

       (a) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to Congress a report on the deployments overseas of members 
     of the Armed Forces (other than the Coast Guard). The report 
     shall describe the deployments as of June 30, 1996, and as of 
     June 30, 1997.
       (b) Elements.--The report shall include the following, 
     shown as of each date specified in subsection (a) and shown 
     for the Armed Forces in the aggregate and separately for each 
     of the Armed Forces:
       (1) The number of military personnel deployed overseas 
     pursuant to a permanent duty assignment, shown in the 
     aggregate and by country or ocean to which deployed.
       (2) The number of military personnel deployed overseas 
     pursuant to a temporary duty assignment, including--

[[Page H9094]]

       (A) the number engaged in training with units of a single 
     military department;
       (B) the number engaged in United States military joint 
     exercises; and
       (C) the number engaged in training with allied units.
       (3) The number of military personnel deployed overseas who 
     were engaged in contingency operations (including 
     peacekeeping or humanitarian assistance missions) or other 
     activities (other than those personnel covered by paragraphs 
     (1) and (2)).
                  Subtitle C--Environmental Provisions

     SEC. 341. REVISION OF MEMBERSHIP TERMS FOR STRATEGIC 
                   ENVIRONMENTAL RESEARCH AND DEVELOPMENT PROGRAM 
                   SCIENTIFIC ADVISORY BOARD.

       Section 2904(b)(4) of title 10, United States Code, is 
     amended by striking out ``three'' and inserting in lieu 
     thereof ``not less than two and not more than four''.

     SEC. 342. AMENDMENTS TO AUTHORITY TO ENTER INTO AGREEMENTS 
                   WITH OTHER AGENCIES IN SUPPORT OF ENVIRONMENTAL 
                   TECHNOLOGY CERTIFICATION.

       (a) Authority To Enter Into Agreements With Indian 
     Tribes.--Section 327 of the National Defense Authorization 
     Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2483; 
     10 U.S.C. 2702 note) is amended--
       (1) in subsection (a), by inserting ``, or with an Indian 
     tribe,'' after ``with an agency of a State or local 
     government'';
       (2) by redesignating subsection (e) as subsection (f); and
       (3) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Definition.--In this section, the term `Indian tribe' 
     has the meaning given that term by section 101(36) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601(36)).''.
       (b) Elimination of Certain Limitation on Authority.--
     Subsection (b)(1) of such section is amended by striking out 
     ``in carrying out its environmental restoration activities''.
       (c) Additional Report Information.--Subsection (d) of such 
     section is amended by adding at the end the following:
       ``(5) A statement of the funding that will be required to 
     meet commitments made to State and local governments and 
     Indian tribes under such agreements entered into during the 
     fiscal year preceding the fiscal year in which the report is 
     submitted.
       ``(6) A description of any cost-sharing arrangement under 
     any such agreements.''.
       (d) Guidelines for Reimbursement and Cost-Sharing.--Not 
     later than 90 days after the date of enactment of this Act, 
     the Secretary of Defense shall submit to Congress a report 
     setting forth the guidelines established by the Secretary for 
     reimbursement of State and local governments, and for cost-
     sharing between the Department of Defense, such governments, 
     and vendors, under cooperative agreements entered into under 
     such section 327.
       (e) Effective Date.--The amendments made by this section 
     shall take effect 30 days after the date on which the report 
     required by subsection (d) is submitted to Congress.

     SEC. 343. MODIFICATIONS OF AUTHORITY TO STORE AND DISPOSE OF 
                   NONDEFENSE TOXIC AND HAZARDOUS MATERIALS.

       (a) Storage of Materials Owned by Members and Dependents.--
     Subsection (a)(1) of section 2692 of title 10, United States 
     Code, is amended by striking out ``by the Department of 
     Defense.'' and inserting in lieu thereof the following: 
     ``either by the Department of Defense or by a member of the 
     armed forces (or a dependent of the member) assigned to or 
     provided military housing on the installation.''.
       (b) Additional Authority.--Subsection (b) of such section 
     is amended--
       (1) by redesignating paragraphs (1) through (9) as 
     paragraphs (2) through (10), respectively; and
       (2) by inserting before paragraph (2) (as so redesignated) 
     the following new paragraph (1):
       ``(1) the storage, treatment, or disposal of materials that 
     will be or have been used in connection with an activity of 
     the Department of Defense or in connection with a service to 
     be performed on an installation of the Department for the 
     benefit of the Department;''.
       (c) Storage and Disposal of Explosives To Assist Law 
     Enforcement Agencies.--Subsection (b) of such section is 
     amended in paragraph (3) (as redesignated by subsection 
     (b))--
       (1) by striking out ``Federal law enforcement'' and 
     inserting in lieu thereof ``Federal, State, or local law 
     enforcement''; and
       (2) by striking out ``Federal agency'' and inserting in 
     lieu thereof ``Federal, State, or local agency''.
       (d) Storage of Material in Connection With Authorized and 
     Compatible Use of a Defense Facility.--Subsection (b) of such 
     section is amended in paragraph (9) (as redesignated by 
     subsection (b))--
       (1) by striking out ``by a private person in connection 
     with the authorized and compatible use by that person of an 
     industrial-type'' and inserting in lieu thereof ``in 
     connection with the authorized and compatible use of a''; and
       (2) by striking out ``; and'' at the end and inserting in 
     lieu thereof the following: ``, including the use of such a 
     facility for testing materiel or training personnel;''.
       (e) Treatment and Disposal of Material in Connection With 
     Authorized and Compatible Use of a Defense Facility.--
     Subsection (b) of such section is amended in paragraph (10) 
     (as redesignated by subsection (b))--
       (1) by striking out ``by a private person in connection 
     with the authorized and compatible commercial use by that 
     person of an industrial-type'' and inserting in lieu thereof 
     ``in connection with the authorized and compatible use of 
     a'';
       (2) by striking out ``with that person'' and inserting in 
     lieu thereof ``or agreement with the prospective user'';
       (3) by striking out ``for that person's'' in subparagraph 
     (B) and inserting in lieu thereof ``for the prospective 
     user's''; and
       (4) by striking out the period at the end and inserting in 
     lieu thereof ``; and''.
       (f) Storage of Material in Connection With Space Launch 
     Facilities.--Subsection (b) of such section is further 
     amended by adding at the end the following new paragraph:
       ``(11) the storage of any material that is not owned by the 
     Department of Defense if the Secretary of the military 
     department concerned determines that the material is required 
     or generated in connection with the use of a space launch 
     facility located on an installation of the Department of 
     Defense or on other land controlled by the United States.''.
       (g) Technical Amendments.--(1) Subsection (a)(1) of such 
     section is further amended by striking out ``storage'' and 
     inserting in lieu thereof ``storage, treatment,''.
       (2) The heading for such section is amended to read as 
     follows:

     ``Sec. 2692. Storage, treatment, and disposal of nondefense 
       toxic and hazardous materials''.

       (3) The item relating to such section in the table of 
     sections at the beginning of chapter 159 of such title is 
     amended to read as follows:

``2692. Storage, treatment, and disposal of nondefense toxic and 
              hazardous materials.''.
       (h) Savings Clause.--Nothing in the amendments made by this 
     section is intended to modify environmental laws or laws 
     relating to the siting of facilities.

     SEC. 344. ANNUAL REPORT ON PAYMENTS AND ACTIVITIES IN 
                   RESPONSE TO FINES AND PENALTIES ASSESSED UNDER 
                   ENVIRONMENTAL LAWS.

       (a) Annual Reports.--Section 2706(b)(2) of title 10, United 
     States Code, is amended by adding at the end the following:
       ``(H) A statement of the fines and penalties imposed or 
     assessed against the Department of Defense under Federal, 
     State, or local environmental law during the fiscal year 
     preceding the fiscal year in which the report is submitted, 
     setting forth each Federal environmental statute under which 
     a fine or penalty was imposed or assessed during the fiscal 
     year, and, with respect to each such statute--
       ``(i) the aggregate amount of fines and penalties imposed 
     or assessed during the fiscal year;
       ``(ii) the aggregate amount of fines and penalties paid 
     during the fiscal year;
       ``(iii) the total amount required for environmental 
     projects to be carried out by the Department of Defense in 
     lieu of the payment of fines or penalties; and
       ``(iv) the number of fines and penalties imposed or 
     assessed during the fiscal year that were--
       ``(I) $100,000 or less; and
       ``(II) more than $100,000.''.
       (b) Report in Fiscal Year 1998.--The statement submitted by 
     the Secretary of Defense under subparagraph (H) of section 
     2706(b)(2) of title 10, United States Code, as added by 
     subsection (a), in 1998 shall, to the maximum extent 
     practicable, include the information required by that 
     subparagraph for each of fiscal years 1994 through 1997.

     SEC. 345. ANNUAL REPORT ON ENVIRONMENTAL ACTIVITIES OF THE 
                   DEPARTMENT OF DEFENSE OVERSEAS.

       Section 2706 of title 10, United States Code, is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Report on Environmental Activities Overseas.--(1) The 
     Secretary of Defense shall submit to Congress each year, not 
     later than 30 days after the date on which the President 
     submits to Congress the budget for a fiscal year, a report on 
     the environmental activities of the Department of Defense 
     overseas.
       ``(2) Each such report shall include a statement of the 
     funding levels during such fiscal year for each of the 
     following categories:
       ``(A) Compliance by the Department of Defense with 
     requirements under a treaty, law, contract, or other 
     agreement for environmental restoration or compliance 
     activities.
       ``(B) Performance by the Department of Defense of other 
     environmental restoration and compliance activities overseas.
       ``(C) Performance by the Department of Defense of any other 
     overseas activities related to the environment, including 
     conferences, meetings, and studies for pilot programs, and 
     travel related to such activities.''.

     SEC. 346. REVIEW OF EXISTING ENVIRONMENTAL CONSEQUENCES OF 
                   THE PRESENCE OF THE ARMED FORCES IN BERMUDA.

       Not later than 120 days after the date of enactment of this 
     Act, the Secretary of Defense shall submit to the 
     congressional defense committees a report on any remaining 
     environmental effects of the presence of the Armed Forces of 
     the United States in Bermuda.

     SEC. 347. SENSE OF CONGRESS ON DEPLOYMENT OF UNITED STATES 
                   ARMED FORCES ABROAD FOR ENVIRONMENTAL 
                   PRESERVATION ACTIVITIES.

       (a) Sense of Congress.--It is the sense of Congress that 
     members of the Army, Navy, Air Force, and Marine Corps should 
     not be deployed outside the United States to provide 
     assistance to another nation in connection with environmental 
     preservation activities in that nation, unless the Secretary 
     of Defense determines that such activities are necessary for 
     national security purposes.
       (b) Scope of Section.--For purposes of this section, 
     environmental preservation activities do not include any of 
     the following:
       (1) Activities undertaken for humanitarian purposes, 
     disaster relief activities, peacekeeping activities, or 
     operational training activities.

[[Page H9095]]

       (2) Environmental compliance and restoration activities 
     associated with military installations and deployments 
     outside the United States.

     SEC. 348. RECOVERY AND SHARING OF COSTS OF ENVIRONMENTAL 
                   RESTORATION AT DEPARTMENT OF DEFENSE SITES.

       (a) Regulations.--Not later than March 1, 1998, the 
     Secretary of Defense shall prescribe regulations containing 
     the guidelines and requirements described in subsections (b) 
     and (c).
       (b) Guidelines.--(1) The regulations prescribed under 
     subsection (a) shall contain uniform guidelines for the 
     military departments and defense agencies concerning the 
     cost-recovery and cost-sharing activities of those 
     departments and agencies.
       (2) The Secretary shall take appropriate actions to ensure 
     the implementation of the guidelines.
       (c) Requirements.--The regulations prescribed under 
     subsection (a) shall contain requirements for the Secretaries 
     of the military departments and the heads of defense agencies 
     to--
       (1) obtain all data that is relevant for purposes of cost-
     recovery and cost-sharing activities; and
       (2) identify any negligence or other misconduct that may 
     preclude indemnification or reimbursement by the Department 
     of Defense for the costs of environmental restoration at a 
     Department site or justify the recovery or sharing of costs 
     associated with such restoration.
       (d) Definition.--In this section, the term ``cost-recovery 
     and-cost sharing activities'' means activities concerning--
       (1) the recovery of the costs of environmental restoration 
     at Department of Defense sites from contractors of the 
     Department and other private parties that contribute to 
     environmental contamination at such sites; and
       (2) the sharing of the costs of such restoration with such 
     contractors and parties.

     SEC. 349. PARTNERSHIPS FOR INVESTMENT IN INNOVATIVE 
                   ENVIRONMENTAL TECHNOLOGIES.

       (a) Authority.--Subject to subsection (b), the Secretary of 
     Defense may enter into a partnership with one or more private 
     entities to demonstrate and validate innovative environmental 
     technologies.
       (b) Limitations.--The Secretary of Defense may enter into a 
     partnership with respect to an environmental technology under 
     subsection (a) only if--
       (1) any private entities participating in the partnership 
     are selected through the use of competitive procedures;
       (2) the partnership provides for parties other than the 
     Department of Defense to provide at least 50 percent of the 
     funding required (not including in-kind contributions or 
     preexisting investments); and
       (3) the Secretary determines that--
       (A) the technology has clear potential to be of significant 
     value to the Department of Defense in its environmental 
     remediation activities at a substantial number of Department 
     of Defense sites; and
       (B) the technology would not be developed without the 
     commitment of Department of Defense funds.
       (c) Evaluation Guidelines.--Before entering into a 
     partnership with respect to an environmental technology under 
     subsection (a), the Secretary of Defense shall give 
     consideration to the following:
       (1) The potential for the technology to be used by the 
     Department of Defense for environmental remediation.
       (2) The technical feasibility and maturity of the 
     technology.
       (3) The adequacy of financial and management plans to 
     demonstrate and validate the technology.
       (4) The costs and benefits to the Department of Defense of 
     developing and using the technology.
       (5) The potential for commercialization of the technology.
       (6) The proposed arrangements for sharing the costs of the 
     partnership through the use of resources outside the 
     Department of Defense.
       (d) Funding.--Under a partnership entered into under 
     subsection (a), the Secretary of Defense may provide funds to 
     the partner or partners from appropriations available to the 
     Department of Defense for environmental activities, for a 
     period of up to five years.
       (e) Report.--In the annual report required under section 
     2706(a) of title 10, United States Code, the Secretary of 
     Defense shall include the following information with respect 
     to partnerships entered into under this section:
       (1) The number of such partnerships.
       (2) A description of the nature of the technology involved 
     in each such partnership.
       (3) A list of all partners in such partnerships.
       (f) Coordination.--The Secretary of Defense shall ensure 
     that the Department of Defense coordinates with the 
     Administrator of the Environmental Protection Agency in any 
     verification sponsored by the Department of technologies 
     demonstrated and validated by a partnership entered into 
     under this section.
       (g) Procedures.--The Secretary of Defense shall develop 
     appropriate procedures to ensure that all Department of 
     Defense funds committed to a partnership entered into under 
     this section are expended for the purpose authorized in the 
     partnership agreement. The Secretary may not enter into a 
     partnership under this section until 30 days after the date 
     on which a copy of such procedures is provided to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives.
       (h) Termination of Authority.--The authority to enter into 
     agreements under subsection (a) shall terminate three years 
     after the date of the enactment of this Act.

     SEC. 350. PROCUREMENT OF RECYCLED COPIER PAPER.

       (a) Procurement Requirements.--Chapter 140 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2378. Procurement of copier paper containing specified 
       percentages of post-consumer recycled content

       ``(a) Procurement Requirement.--(1) Except as provided in 
     subsections (b) and (c), a department or agency of the 
     Department of Defense may not procure copying machine paper 
     after the applicable date specified in paragraph (2) unless 
     the percentage of post-consumer recycled content of the paper 
     meets the percentage then in effect under such paragraph.
       ``(2) The percentage of post-consumer recycled content of 
     paper required under paragraph (1) is as follows:
       ``(A) 20 percent as of January 1, 1998.
       ``(B) 30 percent as of January 1, 1999.
       ``(C) 50 percent as of January 1, 2004.
       ``(b) Exceptions.--A department or agency of the Department 
     of Defense is not required to procure copying machine paper 
     containing a percentage of post-consumer recycled content 
     that meets the applicable requirement in subsection (a) if 
     the Secretary concerned determines that one or more of the 
     following circumstances apply with respect to that 
     procurement:
       ``(1) The cost of procuring copying machine paper 
     satisfying the applicable requirement significantly exceeds 
     the cost of procuring copying machine paper containing a 
     percentage of post-consumer recycled content that does not 
     meet such requirement. The Secretary concerned shall 
     establish the cost differential to be applied under this 
     paragraph.
       ``(2) Copying machine paper containing a percentage of 
     post-consumer recycled content meeting such requirement is 
     not reasonably available within a reasonable period of time.
       ``(3) Copying machine paper containing a percentage of 
     post-consumer recycled content meeting such requirement does 
     not meet performance standards of the department or agency 
     for copying machine paper.
       ``(c) Effect of Inability To Meet Goal in 2004.--(1) In the 
     case of the requirement that will take effect on January 1, 
     2004, pursuant to subsection (a)(2)(C), the requirement shall 
     not take effect with respect to a military department or 
     Defense Agency if the Secretary of Defense determines that 
     the department or agency will be unable to meet such 
     requirement by that date.
       ``(2) The Secretary shall submit to Congress written notice 
     of any determination made under paragraph (1) and the reasons 
     for the determination. The Secretary shall submit such 
     notice, if at all, not later than January 1, 2003.
       ``(d) Secretary Concerned Defined.--In this section, the 
     term `Secretary concerned' means the Secretary of each 
     military department and the Secretary of Defense with respect 
     to the Defense Agencies.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2378. Procurement of copier paper containing specified percentages of 
              post-consumer recycled content.''.

     SEC. 351. PILOT PROGRAM FOR THE SALE OF AIR POLLUTION 
                   EMISSION REDUCTION INCENTIVES.

       (a) Authority.--(1) The Secretary of Defense may, in 
     consultation with the Administrator of General Services, 
     carry out a pilot program to assess the feasibility and 
     advisability of the sale of economic incentives for the 
     reduction of emission of air pollutants attributable to a 
     facility of a military department.
       (2) The Secretary may carry out the pilot program during 
     the period beginning on the date of the enactment of this Act 
     and ending two years after such date.
       (b) Incentives Available for Sale.--(1) Under the pilot 
     program, the Secretary may sell economic incentives for the 
     reduction of emission of air pollutants attributable to a 
     facility of a military department only if such incentives are 
     not otherwise required for the activities or operations of 
     the military department.
       (2) The Secretary may not, under the pilot program, sell 
     economic incentives attributable to the closure or 
     realignment of a military installation under a base closure 
     law.
       (3) If the Secretary determines that additional sales of 
     economic incentives are likely to result in amounts available 
     for allocation under subsection (c)(2) in a fiscal year in 
     excess of the limitation set forth in subparagraph (B) of 
     that subsection, the Secretary shall not carry out such 
     additional sales in that fiscal year.
       (c) Use of Proceeds.--(1) The proceeds of sale of economic 
     incentives attributable to a facility of a military 
     department shall be credited to the funds available to the 
     facility for the costs of identifying, quantifying, or 
     valuing economic incentives for the reduction of emission of 
     air pollutants. The amount credited shall be equal to the 
     cost incurred in identifying, quantifying, or valuing the 
     economic incentives sold.
       (2)(A)(i) If after crediting under paragraph (1) a balance 
     remains, the amount of such balance shall be available to the 
     Department of Defense for allocation by the Secretary to the 
     military departments for programs, projects, and activities 
     necessary for compliance with Federal environmental laws, 
     including the purchase of economic incentives for the 
     reduction of emission of air pollutants.
       (ii) To the extent practicable, amounts allocated to the 
     military departments under this subparagraph shall be made 
     available to the facilities that generated the economic 
     incentives providing the basis for the amounts.
       (B) The total amount allocated under this paragraph in a 
     fiscal year from sales of economic incentives may not equal 
     or exceed $500,000.

[[Page H9096]]

       (3) If after crediting under paragraph (1) a balance 
     remains in excess of an amount equal to the limitation set 
     forth in paragraph (2)(B), the amount of the excess shall be 
     covered over into the Treasury as miscellaneous receipts.
       (4) Funds credited under paragraph (1) or allocated under 
     paragraph (2) shall be merged with the funds to which 
     credited or allocated, as the case may be, and shall be 
     available for the same purposes and for the same period as 
     the funds with which merged.
       (d) Definitions.--In this section:
       (1) The term ``base closure law'' means the following:
       (A) Section 2687 of title 10, United States Code.
       (B) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).
       (C) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).
       (2) The term ``economic incentives for the reduction of 
     emission of air pollutants'' means any transferable economic 
     incentives (including marketable permits and emission rights) 
     necessary or appropriate to meet air quality requirements 
     under the Clean Air Act (42 U.S.C. 7401 et seq.).
                   Subtitle D--Depot-Level Activities

     SEC. 355. DEFINITION OF DEPOT-LEVEL MAINTENANCE AND REPAIR.

       (a) Depot-Level Maintenance and Repair Defined.--Chapter 
     146 of title 10, United States Code, is amended by inserting 
     before section 2461 the following new section:

     ``Sec. 2460. Definition of depot-level maintenance and repair

       ``(a) In General.--In this chapter, the term `depot-level 
     maintenance and repair' means (except as provided in 
     subsection (b)) material maintenance or repair requiring the 
     overhaul, upgrading, or rebuilding of parts, assemblies, or 
     subassemblies, and the testing and reclamation of equipment 
     as necessary, regardless of the source of funds for the 
     maintenance or repair. The term includes (1) all aspects of 
     software maintenance classified by the Department of Defense 
     as of July 1, 1995, as depot-level maintenance and repair, 
     and (2) interim contractor support or contractor logistics 
     support (or any similar contractor support), to the extent 
     that such support is for the performance of services 
     described in the preceding sentence.
       ``(b) Exceptions.--(1) The term does not include the 
     procurement of major modifications or upgrades of weapon 
     systems that are designed to improve program performance or 
     the nuclear refueling of an aircraft carrier. A major upgrade 
     program covered by this exception could continue to be 
     performed by private or public sector activities.
       ``(2) The term also does not include the procurement of 
     parts for safety modifications. However, the term does 
     include the installation of parts for that purpose.''.
       (b) Conforming Amendment.--Section 2469 of title 10, United 
     States Code, is amended in subsections (a) and (b), by 
     striking out ``or repair'' and inserting in lieu thereof 
     ``and repair''.
       (c) Clerical Amendments.--(1) The table of sections at the 
     beginning of chapter 146 of title 10, United States Code, is 
     amended by inserting before the item relating to section 2461 
     the following new item:

``2460. Definition of depot-level maintenance and repair.''.

       (2) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part IV of subtitle A, of such title 
     are amended by striking out the item relating to chapter 146 
     and inserting in lieu thereof the following new item:

``146. Contracting for Performance of Civilian Commercial or Industrial 
    Type Functions..........................................2460''.....

     SEC. 356. CORE LOGISTICS CAPABILITIES OF DEPARTMENT OF 
                   DEFENSE.

       (a) In General.--Section 2464 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 2464. Core logistics capabilities

       ``(a) Necessity for Core Logistics Capabilities.--(1) It is 
     essential for the national defense that the Department of 
     Defense maintain a core logistics capability that is 
     Government-owned and Government-operated (including 
     Government personnel and Government-owned and Government-
     operated equipment and facilities) to ensure a ready and 
     controlled source of technical competence and resources 
     necessary to ensure effective and timely response to a 
     mobilization, national defense contingency situations, and 
     other emergency requirements.
       ``(2) The Secretary of Defense shall identify the core 
     logistics capabilities described in paragraph (1) and the 
     workload required to maintain those capabilities.
       ``(3) The core logistics capabilities identified under 
     paragraphs (1) and (2) shall include those capabilities that 
     are necessary to maintain and repair the weapon systems and 
     other military equipment (including mission-essential weapon 
     systems or materiel not later than four years after achieving 
     initial operational capability, but excluding systems and 
     equipment under special access programs, nuclear aircraft 
     carriers, and commercial items described in paragraph (5)) 
     that are identified by the Secretary, in consultation with 
     the Chairman of the Joint Chiefs of Staff, as necessary to 
     enable the armed forces to fulfill the strategic and 
     contingency plans prepared by the Chairman of the Joint 
     Chiefs of Staff under section 153(a) of this title.
       ``(4) The Secretary of Defense shall require the 
     performance of core logistics workloads necessary to maintain 
     the core logistics capabilities identified under paragraphs 
     (1), (2), and (3) at Government-owned, Government-operated 
     facilities of the Department of Defense (including 
     Government-owned, Government-operated facilities of a 
     military department) and shall assign such facilities 
     sufficient workload to ensure cost efficiency and technical 
     competence in peacetime while preserving the surge capacity 
     and reconstitution capabilities necessary to support fully 
     the strategic and contingency plans referred to in paragraph 
     (3).
       ``(5) The commercial items covered by paragraph (3) are 
     commercial items that have been sold or leased in substantial 
     quantities to the general public and are purchased without 
     modification in the same form that they are sold in the 
     commercial marketplace, or with minor modifications to meet 
     Federal Government requirements.
       ``(b) Limitation on Contracting.--(1) Except as provided in 
     paragraph (2), performance of workload needed to maintain a 
     logistics capability identified by the Secretary under 
     subsection (a)(2) may not be contracted for performance by 
     non-Government personnel under the procedures and 
     requirements of Office of Management and Budget Circular A-76 
     or any successor administrative regulation or policy 
     (hereinafter in this section referred to as OMB Circular A-
     76).
       ``(2) The Secretary of Defense may waive paragraph (1) in 
     the case of any such logistics capability and provide that 
     performance of the workload needed to maintain that 
     capability shall be considered for conversion to contractor 
     performance in accordance with OMB Circular A-76. Any such 
     waiver shall be made under regulations prescribed by the 
     Secretary and shall be based on a determination by the 
     Secretary that Government performance of the workload is no 
     longer required for national defense reasons. Such 
     regulations shall include criteria for determining whether 
     Government performance of any such workload is no longer 
     required for national defense reasons.
       ``(3)(A) A waiver under paragraph (2) may not take effect 
     until the expiration of the first period of 30 days of 
     continuous session of Congress that begins on or after the 
     date on which the Secretary submits a report on the waiver to 
     the Committee on Armed Services and the Committee on 
     Appropriations of the Senate and the Committee on National 
     Security and the Committee on Appropriations of the House of 
     Representatives.
       ``(B) For the purposes of subparagraph (A)--
       ``(i) continuity of session is broken only by an 
     adjournment of Congress sine die; and
       ``(ii) the days on which either House is not in session 
     because of an adjournment of more than three days to a day 
     certain are excluded in the computation of any period of time 
     in which Congress is in continuous session.''.
       (b) Clerical Amendment.--The item relating to such section 
     at the beginning of chapter 146 of such title is amended to 
     read as follows:

``2464. Core logistics capabilities.''.

     SEC. 357. INCREASE IN PERCENTAGE OF DEPOT-LEVEL MAINTENANCE 
                   AND REPAIR THAT MAY BE CONTRACTED FOR 
                   PERFORMANCE BY NON-GOVERNMENT PERSONNEL.

       Section 2466(a) of title 10, United States Code, is amended 
     by striking out ``40 percent'' and inserting in lieu thereof 
     ``50 percent''.

     SEC. 358. ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND 
                   REPAIR.

       Subsection (e) of section 2466 of title 10, United States 
     Code, is amended to read as follows:
       ``(e) Report.--(1) Not later than February 1 of each year, 
     the Secretary of Defense shall submit to Congress a report 
     identifying, for each military department and Defense Agency, 
     the percentage of the funds referred to in subsection (a) 
     that were expended during the preceding fiscal year for 
     performance of depot-level maintenance and repair 
     workloads by the public and private sectors as required by 
     section 2466 of this title.
       ``(2) Not later than 90 days after the date on which the 
     Secretary submits the annual report under paragraph (1), the 
     Comptroller General shall submit to Congress the Comptroller 
     General's views on whether the Department of Defense has 
     complied with the requirements of subsection (a) for the 
     fiscal year covered by the report.''.

     SEC. 359. REQUIREMENT FOR USE OF COMPETITIVE PROCEDURES IN 
                   CONTRACTING FOR PERFORMANCE OF DEPOT-LEVEL 
                   MAINTENANCE AND REPAIR WORKLOADS FORMERLY 
                   PERFORMED AT CLOSED OR REALIGNED MILITARY 
                   INSTALLATIONS.

       (a) Application to certain Workloads.--(1) Chapter 146 of 
     title 10, United States Code, is amended by inserting after 
     section 2469 the following new section:

     ``Sec. 2469a. Use of competitive procedures in contracting 
       for performance of depot-level maintenance and repair 
       workloads formerly performed at certain military 
       installations

       ``(a) Definitions.--In this section:
       ``(1) The term `closed or realigned military installation' 
     means a military installation where a depot-level maintenance 
     and repair facility was approved in 1995 for closure or 
     realignment under the Defense Base Closure and Realignment 
     Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
     U.S.C. 2687 note).
       ``(2) The term `military installation' includes a former 
     military installation that was a military installation when 
     it was approved in 1995 for closure or realignment under the 
     Defense Base Closure and Realignment Act of 1990 and that has 
     been closed or realigned under the Act.
       ``(3) The terms `realignment' and `realigned' mean a 
     decision under the Defense Base Closure and Realignment Act 
     of 1990 that results in both a reduction and relocation of 
     functions and civilian personnel positions.
       ``(b) Covered Depot-Level Maintenance and Repair 
     Workloads.--Except as provided

[[Page H9097]]

     in subsection (c), this section applies with respect to any 
     depot-level maintenance and repair workload that--
       ``(1) was performed as of January 1, 1997, at a military 
     installation that was approved in 1995 for closure or 
     realignment under the Defense Base Closure and Realignment 
     Act of 1990 and that has been closed or realigned under the 
     Act; and
       ``(2) is proposed to be converted from performance by 
     Department of Defense personnel to performance by a private 
     sector source.
       ``(c) Exceptions.--This section shall not apply with 
     respect to--
       ``(1) a depot-level maintenance and repair workload that is 
     to be consolidated to another military installation (other 
     than a closed or realigned military installation) as a result 
     of a base closure or realignment action or a decision made by 
     the Secretary concerned or the Defense Depot Maintenance 
     Council;
       ``(2) a workload necessary to maintain a core logistics 
     capability identified under section 2464 of this title; or
       ``(3) any contract originally entered into before the date 
     of the enactment of the National Defense Authorization Act 
     for Fiscal Year 1998.
       ``(d) Conditions and Solicitation.--A solicitation of 
     offers for the performance of any depot-level maintenance and 
     repair workload described in subsection (b) may be issued, 
     and a contract may be awarded pursuant to such a 
     solicitation, only if the following conditions are met with 
     respect to the contract and the solicitation specifically 
     states the conditions:
       ``(1) The source selection process used in the case of the 
     solicitation and contract permits the consideration of offers 
     submitted by private sector sources and offers submitted by 
     public sector sources.
       ``(2) The source selection process used in the case of the 
     solicitation and contract requires that, in the comparison of 
     offers, there be taken into account--
       ``(A) the fair market value (or if fair market value cannot 
     be determined, the estimated book value) of any land, plant, 
     or equipment from a military installation that is proposed by 
     a private offeror to be used to meet a specific workload 
     (whether these assets are provided to the offeror by a local 
     redevelopment authority or by any other source approved by an 
     official of the Department of Defense); and
       ``(B) the total estimated direct and indirect costs that 
     will be incurred by the Department of Defense and the total 
     estimated direct and indirect savings (including overhead) 
     that will be derived by the Department of Defense.
       ``(3) The cost standards used to determine the depreciation 
     of facilities and equipment shall, to the maximum extent 
     practicable, provide identical treatment to all public and 
     private sector offerors.
       ``(4) Any offeror, whether public or private, may offer to 
     perform the workload at any location or locations selected by 
     the offeror and to team with any other public or private 
     entity to perform that workload at one or more locations, 
     including a Center of Industrial and Technical Excellence 
     designated under section 2474 of this title.
       ``(5) No offeror may be given any preferential 
     consideration for, or in any way be limited to, performing 
     the workload in-place or at any other single location.
       ``(e) Contracts for Multiple Workloads.--(1) A solicitation 
     may be issued for a single contract for the performance of 
     multiple depot-level maintenance and repair workloads 
     described in subsection (b) only if--
       ``(A) the Secretary of Defense determines in writing that 
     the individual workloads cannot as logically and economically 
     be performed without combination by sources that are 
     potentially qualified to submit an offer and to be awarded a 
     contract to perform those individual workloads;
       ``(B) the Secretary submits to Congress a report setting 
     forth the determination together with the reasons for the 
     determination; and
       ``(C) the solicitation of offers for the contract is issued 
     more than 60 days after the date on which the Secretary 
     submits the report.
       ``(2) The Comptroller General shall review each report 
     submitted under paragraph (1)(B) and, not later than 30 days 
     after the report is submitted to Congress, shall submit to 
     Congress the Comptroller General's views regarding the 
     determination of the Secretary that is set forth in the 
     report, together with any other findings that the Comptroller 
     General considers appropriate.
       ``(f) Competitive Procedures Required.--Section 2304(c)(7) 
     of this title shall not be used as the basis for an exception 
     to the requirement to use competitive procedures for any 
     contract for a depot-level maintenance and repair workload 
     described in subsection (b).
       ``(g) Reviews of Competitive Procedures.--If a solicitation 
     of offers for a contract for, or award of, any depot-level 
     maintenance and repair workload described in subsection (b) 
     is issued, the Comptroller General shall--
       ``(1) within 45 days after the issuance of the 
     solicitation, review the solicitation and report to Congress 
     on whether the solicitation--
       ``(A) provides substantially equal opportunity for public 
     and private offerors to compete for the contract without 
     regard to the location at which the workload is to be 
     performed; and
       ``(B) is in compliance with the requirements of this 
     section and all applicable provisions of law and regulations; 
     and
       ``(2) within 45 days after any contract or award resulting 
     from the solicitation is entered into or made, review the 
     contract or award, including the contracting or award 
     process, and report to Congress on whether--
       ``(A) the procedures used to conduct the competition--
       ``(i) provided substantially equal opportunity for public 
     and private offerors to compete for the contract without 
     regard to the location at which the workload is to be 
     performed; and
       ``(ii) were in compliance with the requirements of this 
     section and all applicable provisions of law and regulations;
       ``(B) appropriate consideration was given to factors other 
     than cost in the selection of the source for performance of 
     the workload; and
       ``(C) the contract or award resulted in the lowest total 
     cost to the Department of Defense for performance of the 
     workload.
       ``(h) Resolution of Workload Award Objections.--Any public 
     or private entity may, pursuant to procedures established by 
     the Secretary, object to a solicitation of offers under this 
     section for the performance of any depot-level maintenance 
     and repair workload, or the award or proposed award of any 
     workload pursuant to such a solicitation. The Secretary may 
     designate a qualified individual or entity to review the 
     objection; however, the Secretary shall not designate the 
     Source Selection Authority or any individual from the same 
     military department as the Source Selection Authority to 
     review the objection. The Secretary shall take appropriate 
     action to address any defect in the solicitation or award in 
     the event that the objection is sustained.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2469 the following new item:

``2469a. Use of competitive procedures in contracting for performance 
              of depot-level maintenance and repair workloads formerly 
              performed at certain military installations.''.

       (b) Limitation Relating to Timing of Solicitation.--The 
     first solicitation of offers from private sector sources for 
     the performance of a depot-level maintenance and repair 
     workload described in subsection (b) of section 2469a of 
     title 10, United States Code, as added by subsection (a), may 
     be issued pursuant to such section only after the date that 
     is 30 days after the latest of the following:
       (1) The date on which the Secretary of Defense publishes 
     and submits to Congress a plan or Department of Defense 
     directive that sets forth the specific procedures for the 
     conduct of competitions among private and public sector 
     entities for such depot-level maintenance and repair 
     workloads.
       (2) The date on which the Secretary of Defense submits to 
     Congress the report on allocation of workloads required under 
     subsection (c).
       (3) The date on which the Comptroller General is required 
     to submit the report to Congress under subsection (d).
       (c) Report of Allocation of Workload.--Before any 
     solicitation of offers for the performance by a private 
     sector source of a depot-level maintenance and repair 
     workload at a closed or realigned installation described in 
     subsection (b) of section 2469a of title 10, United States 
     Code, as added by subsection (a), is to be issued, the 
     Secretary of Defense shall submit to Congress a report 
     describing the allocation proposed by the Secretary of all 
     workloads that were performed at that closed or realigned 
     military installation (as defined in subsection (a) of such 
     section) as of July 1, 1995, including--
       (1) the workloads that are considered to be core logistics 
     functions under section 2464 of such title;
       (2) the workloads that are proposed to be transferred to a 
     military installation other than a closed or realigned 
     military installation;
       (3) the workloads that are proposed to be included in the 
     public-private competitions carried out under section 2469a 
     of such title, and, if any of such workloads are to be 
     combined for purposes of such a competition, the reasons for 
     combining the workloads, together with a description of how 
     the workloads are to be combined;
       (4) any workload that has been determined within the 
     Department of Defense as no longer being necessary;
       (5) the proposed schedule for implementing the allocations 
     covered by the report; and
       (6) the anticipated capacity utilization of the military 
     installations and former military installations to which 
     workloads are to be transferred, based on the maximum 
     potential capacity certified to the 1995 Defense Base Closure 
     and Realignment Commission, after the transfers are completed 
     (not taking into account any workloads that may be 
     transferred as a result of a public-private competition 
     carried out under section 2469a of such title, as described 
     in paragraph (3)).
       (d) Review Regarding Award for C-5 Aircraft Workload.--(1) 
     The Comptroller General shall conduct a review of the award 
     for the performance of the C-5 aircraft workload that was 
     made to Warner Robins Air Logistics Center. As part of the 
     review, the Comptroller General shall--
       (A) determine whether the procedures used to conduct the 
     competition--
       (i) provided substantially equal opportunity for public and 
     private offerors to compete for the award without regard to 
     the location at which the workload is to be performed; and
       (ii) are in compliance with the requirements of all 
     applicable provisions of law and the Federal Acquisition 
     Regulation; and
       (B) determine whether that award results in the lowest 
     total cost to the Department of Defense for performance of 
     the workload.
       (2) Not later than 60 days after the date of the enactment 
     of this Act, the Comptroller General shall submit to Congress 
     a report containing the results of the review.

     SEC. 360. CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT 
                   EMPLOYEES BY CONSTRAINTS ON PERSONNEL LEVELS.

       Section 2472(a) of title 10, United States Code, is amended 
     by striking out the first sentence

[[Page H9098]]

     and inserting in lieu thereof the following: ``The civilian 
     employees of the Department of Defense, including the 
     civilian employees of the military departments and the 
     Defense Agencies, who perform, or are involved in the 
     performance of, depot-level maintenance and repair workloads 
     may not be managed on the basis of any constraint or 
     limitation in terms of man years, end strength, full-time 
     equivalent positions, or maximum number of employees.''.

     SEC. 361. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

       (a) Designation and Purpose.--(1) Chapter 146 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2474. Centers of Industrial and Technical Excellence: 
       designation; public-private partnerships

       ``(a) Designation.--(1) The Secretary of Defense shall 
     designate each depot-level activity of the military 
     departments and the Defense Agencies (other than facilities 
     approved for closure or major realignment under the Defense 
     Base Closure and Realignment Act of 1990 (part A of title 
     XXIX of Public Law 101-510; 10 U.S.C. 2687 note)) as a Center 
     of Industrial and Technical Excellence in the recognized core 
     competencies of the activity.
       ``(2) The Secretary shall establish a policy to encourage 
     the Secretary of each military department and the head of 
     each Defense Agency to reengineer industrial processes and 
     adopt best-business practices at their depot-level activities 
     in connection with their core competency requirements, so as 
     to serve as recognized leaders in their core competencies 
     throughout the Department of Defense and in the national 
     technology and industrial base (as defined in section 2500(1) 
     of this title).
       ``(3) The Secretary of a military department may conduct a 
     pilot program, consistent with applicable requirements of 
     law, to test any practices referred to in paragraph (2) that 
     the Secretary determines could improve the efficiency and 
     effectiveness of depot-level operations, improve the support 
     provided by depot-level activities for the armed forces user 
     of the services of such activities, and enhance readiness by 
     reducing the time that it takes to repair equipment.
       ``(b) Public-Private Partnerships.--The Secretary of 
     Defense shall enable Centers of Industrial and Technical 
     Excellence to enter into public-private cooperative 
     arrangements for the performance of depot-level maintenance 
     and repair at such Centers and shall encourage the use of 
     such arrangements to maximize the utilization of the capacity 
     at such Centers. A public-private cooperative arrangement 
     under this subsection shall be known as a `public-private 
     partnership'.
       ``(c) Crediting of Amounts for Performance.--Amounts 
     received by a Center for work performed under a public-
     private partnership shall be credited to the appropriation or 
     fund, including a working-capital fund, that incurs the cost 
     of performing the work.
       ``(d) Additional Work.--The policy required under 
     subsection (a) shall include measures to enable a private 
     sector entity that enters into a partnership arrangement 
     under subsection (b) or leases excess equipment and 
     facilities at a Center of Industrial and Technical Excellence 
     pursuant to section 2471 of this title to perform additional 
     work at the Center, subject to the limitations outlined in 
     subsection (b) of such section, outside of the types of work 
     normally assigned to the Center.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2474. Centers of Industrial and Technical Excellence: designation; 
              public-private partnerships.''.

       (b) Lease of Excess Depot-Level Equipment and Facilities.--
     (1) Section 2471(c) of such title is amended to read as 
     follows:
       ``(c) Conformance With Authority Under Section 2667.--The 
     provisions of subsection (d) of section 2667 of this title 
     shall apply to this section in the same manner as such 
     provisions are applicable under that section.''.
       (2) Section 2667(d)(2) of such title is amended by 
     inserting ``or working capital fund'' before ``from which''.
       (c) Reporting Requirement.--Not later than March 1, 1999, 
     the Secretary of Defense shall submit to Congress a report on 
     the policies established by the Secretary pursuant to section 
     2474 of title 10, United States Code, to implement the 
     requirements of such section. The report shall include--
       (1) the details of any public-private partnerships entered 
     into as of that date under subsection (b) of such section;
       (2) the details of any leases entered into as of that date 
     under section 2471 of such title with authorized entities for 
     dual-use (military and nonmilitary) purposes; and
       (3) the effect that the partnerships and leases had on 
     capacity utilization, depot rate structures, and readiness.

     SEC. 362. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND 
                   NAVAL SHIPYARDS TO ENGAGE IN DEFENSE-RELATED 
                   PRODUCTION AND SERVICES.

       Section 1425(e) of the National Defense Authorization Act 
     for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is 
     amended by striking out ``September 30, 1997'' and inserting 
     in lieu thereof ``September 30, 1999''.

     SEC. 363. REPEAL OF A CONDITIONAL REPEAL OF CERTAIN DEPOT-
                   LEVEL MAINTENANCE AND REPAIR LAWS AND A RELATED 
                   REPORTING REQUIREMENT.

       Section 311 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 247; 10 
     U.S.C. 2464 note) is amended by striking out subsections (f) 
     and (g).

     SEC. 364. PERSONNEL REDUCTIONS, ARMY DEPOTS PARTICIPATING IN 
                   ARMY WORKLOAD AND PERFORMANCE SYSTEM.

       (a) Limitation.--Except as necessary to implement BRAC 1995 
     decisions at Red River Army Depot, Texas, and Letterkenny 
     Army Depot, Pennsylvania, the Secretary of the Army may not 
     initiate a reduction in force of civilian employees at the 
     five Army depots participating in the demonstration and 
     testing of the Army Workload and Performance System until 
     after the date on which the Secretary submits to Congress a 
     report certifying that the Army Workload and Performance 
     System is fully operational.
       (b) BRAC 1995 Decisions Defined.--The term ``BRAC 1995 
     decisions'' means the decisions to close or realign certain 
     military installations resulting from the recommendations 
     approved in 1995 under the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note).

     SEC. 365. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES 
                   AMONG DEPARTMENT OF DEFENSE FACILITIES AND 
                   PRIVATE SECTOR FACILITIES.

       (a) Report.--Not later than May 31, 1998, the Secretary of 
     Defense shall submit to Congress a report on the allocation 
     among facilities of the Department of Defense and facilities 
     in the private sector of the logistics activities that are 
     necessary to maintain and repair the weapon systems and other 
     military equipment identified by the Secretary, in 
     consultation with the Chairman of the Joint Chiefs of Staff, 
     as being necessary to enable the Armed Forces to conduct a 
     strategic or major theater war.
       (b) Elements.--The report under subsection (a) shall set 
     forth the following:
       (1) The systems or equipment identified under subsection 
     (a) that must be maintained and repaired in Government-owned, 
     Government-operated facilities, using personnel and equipment 
     of the Department, as a result of the Secretary's 
     determination that--
       (A) the work involves unique or valuable workforce skills 
     that should be maintained in the public sector in the 
     national interest;
       (B) the base of private sector sources having the 
     capability to perform the workloads includes industry sectors 
     that are vulnerable to work stoppages;
       (C) the private sector sources having the capability to 
     perform the workloads have insufficient workforce levels or 
     skills to perform the depot-level maintenance and repair 
     workloads--
       (i) in the quantity necessary, or as rapidly as the 
     Secretary considers necessary, to enable the armed forces to 
     fulfill the national military strategy; or
       (ii) without a significant disruption or delay in the 
     maintenance and repair of equipment;
       (D) the need for performance of workloads is too 
     infrequent, cyclical, or variable to sustain a reliable base 
     of private sector sources having the workforce levels or 
     skills to perform the workloads;
       (E) the market conditions or workloads are insufficient to 
     ensure that the price of private sector performance of the 
     workloads can be controlled through competition or other 
     means;
       (F) private sector sources are not adequately responsive to 
     the requirements of the Department for rapid, cost-effective, 
     and flexible response to surge requirements or other 
     contingency situations, including changes in the mix or 
     priority of previously scheduled workloads and reassignment 
     of employees to different workloads without the requirement 
     for additional contractual negotiations;
       (G) private sector sources are less willing to assume 
     responsibility for performing the workload as a result of the 
     possibility of direct military or terrorist attack; or
       (H) private sector sources cannot maintain continuity of 
     workforce expertise as a result of high rates of employee 
     turnover.
       (2) The systems or equipment identified under subsection 
     (a) that must be maintained and repaired in Government-owned 
     facilities, whether Government operated or contractor-
     operated, as a result of the Secretary's determination that--
       (A) the work involves facilities, technologies, or 
     equipment that are unique and sufficiently valuable that the 
     facilities, technologies, or equipment must be maintained in 
     the public sector in the national interest;
       (B) the private sector sources having the capability to 
     perform the workloads have insufficient facilities, 
     technology, or equipment to perform the depot-level 
     maintenance and repair workloads--
       (i) in the quantity necessary, or as rapidly as the 
     Secretary considers necessary, to enable the armed forces to 
     fulfill the national military strategy; or
       (ii) without a significant disruption or delay in the 
     maintenance and repair of equipment; or
       (C) the need for performance of workloads is too 
     infrequent, cyclical, or variable to sustain a reliable base 
     of private sector sources having the facilities, technology, 
     or equipment to perform the workloads.
       (3) The systems or equipment identified under subsection 
     (a) that may be maintained and repaired in private sector 
     facilities.
       (4) The approximate percentage of the total maintenance and 
     repair workload of the Department of Defense necessary for 
     the systems and equipment identified under subsection (a) 
     that would be performed at Department of Defense facilities, 
     and at private sector facilities, as a result of the 
     determinations made for purposes of paragraphs (1), (2), and 
     (3).

     SEC. 366. REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR 
                   SHIP REPAIR AND MAINTENANCE.

       (a) Findings.--Congress makes the following findings:
       (1) In order to reduce the time that the crew of a naval 
     vessel is away from the homeport of the vessel, the Navy 
     seeks to perform ship repair and maintenance of the vessel at 
     the homeport of the vessel whenever it takes six months or 
     less to accomplish the work involved.
       (2) At the same time, the Navy seeks to distribute ship 
     repair and maintenance work among

[[Page H9099]]

     the Navy shipyards (known as to ``level load'') in order to 
     more fully utilize personnel resources.
       (3) During periods when a Navy shipyard is not utilized to 
     its capacity, the Navy sometimes sends workers at the 
     shipyard, on a temporary duty basis, to perform ship repairs 
     and maintenance at a homeport not having a Navy shipyard.
       (4) This practice is a more efficient use of civilian 
     employees who might otherwise not be fully employed on work 
     assigned to Navy shipyards.
       (b) Comptroller General Review and Report.--(1) The 
     Comptroller General shall review the Navy's practice of using 
     temporary duty assignments of personnel to perform ship 
     maintenance and repair work at homeports not having Navy 
     shipyards. The review shall include the following:
       (A) An assessment of the rationale, conditions, and factors 
     supporting the Navy's practice.
       (B) A determination of whether the practice is cost-
     effective.
       (C) The factors affecting future requirements for, and the 
     adherence to, the practice, together with an assessment of 
     the factors.
       (2) Not later than May 1, 1998, the Comptroller General 
     shall submit a report on the review to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives.

     SEC. 367. SENSE OF CONGRESS REGARDING REALIGNMENT OF 
                   PERFORMANCE OF GROUND COMMUNICATION-ELECTRONIC 
                   WORKLOAD.

       It is the sense of Congress that the transfer of the ground 
     communication-electronic workload to Tobyhanna Army Depot, 
     Pennsylvania, in the realignment of the performance of such 
     function should be carried out in adherence to the schedule 
     prescribed for that transfer by the Defense Depot Maintenance 
     Council on March 13, 1997, as follows:
       (1) Transfer of 20 percent of the workload in fiscal year 
     1998.
       (2) Transfer of 40 percent of the workload in fiscal year 
     1999.
       (3) Transfer of 40 percent of the workload in fiscal year 
     2000.
  Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

     SEC. 371. REORGANIZATION OF LAWS REGARDING COMMISSARIES AND 
                   EXCHANGES AND OTHER MORALE, WELFARE, AND 
                   RECREATION ACTIVITIES.

       (a) Description of Chapter.--(1) The heading of chapter 147 
     of title 10, United States Code, is amended to read as 
     follows:

 ``CHAPTER 147--COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, 
                      AND RECREATION ACTIVITIES''.

       (2) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part IV of subtitle A, of such title 
     are amended by striking out the item relating to chapter 147 
     and inserting in lieu thereof the following new item:

``147. Commissaries and Exchanges and Other Morale, Welfare, and 
    Recreation Activities...................................2481''.....

       (b) Transfer and Redesignation of Unrelated Provisions.--
     (1) Section 2481 of title 10, United States Code, is 
     transferred to chapter 159 of such title, inserted after 
     section 2685, and redesignated as section 2686.
       (2) Sections 2483 and 2490 of such title are transferred to 
     the end of subchapter III of chapter 169 of such title and 
     redesignated as sections 2867 and 2868, respectively.
       (3) Section 2491 of such title is redesignated as section 
     2500.
       (c) Clerical Amendments.--(1) The table of sections at the 
     beginning of chapter 147 of title 10, United States Code, is 
     amended by striking out the items relating to sections 2481, 
     2483, and 2490.
       (2) The table of sections at the beginning of chapter 159 
     of such title is amended by inserting after the item relating 
     to section 2685 the following new item:

``2686. Utilities and services: sale; expansion and extension of 
              systems and facilities.''.

       (3) The table of sections at the beginning of subchapter 
     III of chapter 169 of such title is amended by adding at the 
     end the following new items:

``2867. Sale of electricity from alternate energy and cogeneration 
              production facilities.
``2868. Utility services: furnishing for certain buildings.''.

       (4) The table of sections at the beginning of subchapter I 
     of chapter 148 of such title is amended by striking out the 
     item relating to section 2491 and inserting in lieu thereof 
     the following new item:

``2500. Definitions.''.

       (5) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part IV of subtitle A, of such title 
     are amended by striking out the item relating to chapter 148 
     and inserting in lieu thereof the following new item:

``148. National Defense Technology and Industrial Base, Defense 
    Reinvestment, and Defense Conversion....................2500''.....

       (d) Conforming Amendments.--(1) Section 2534(d) of title 
     10, United States Code, is amended by striking out ``section 
     2491(1)'' both places it appears and inserting in lieu 
     thereof ``section 2500(1)''.
       (2) Section 2865(b)(2) of such title is amended by striking 
     out ``section 2483(b)(2)'' and inserting in lieu thereof 
     ``section 2867(b)(2)''.

     SEC. 372. MERCHANDISE AND PRICING REQUIREMENTS FOR COMMISSARY 
                   STORES.

       (a) Authorized Commissary Merchandise Categories.--
     Subsection (b) of section 2486 of title 10, United States 
     Code, is amended--
       (1) by striking out the matter preceding paragraph (1) and 
     inserting in lieu thereof the following: ``(b) Authorized 
     Commissary Merchandise Categories.--Merchandise sold in, at, 
     or by commissary stores may include items only in the 
     following categories:''; and
       (2) by striking out paragraph (11) and inserting in lieu 
     thereof the following new paragraph:
       ``(11) Such other merchandise categories as the Secretary 
     of Defense may prescribe, except that the Secretary shall 
     submit to Congress, not later than March 1 of each year, a 
     report describing--
       ``(A) any addition of, or change in, a merchandise category 
     proposed to be made under this paragraph during the one-year 
     period beginning on that date; and
       ``(B) those additions and changes in merchandise categories 
     actually made during the preceding one-year period.''.
       (b) Codification of Uniform Sales Price Surcharge or 
     Adjustment.--Subsection (c) of such section is amended--
       (1) by inserting ``Uniform Sales Price Surcharge or 
     Adjustment.--'' after ``(c)'';
       (2) by striking out ``in commissary stores.'' and inserting 
     in lieu thereof ``in, at, or by commissary stores.''; and
       (3) by adding at the end the following new sentence: 
     ``Effective on the date of the enactment of the National 
     Defense Authorization Act for Fiscal Year 1998, the uniform 
     percentage shall be equal to five percent and may not be 
     changed except by a law enacted after such date.''.
       (c) Establishment of Sales Price; Congressional 
     Notification.--Subsection (d) of such section is amended to 
     read as follows:
       ``(d) Sales Price Establishment.--(1) The Secretary of 
     Defense shall establish the sales price of each item of 
     merchandise sold in, at, or by commissary stores at the level 
     that will recoup the actual product cost of the item 
     (consistent with this section and sections 2484 and 2685 of 
     this title).
       ``(2) Any change in the pricing policies for merchandise 
     sold in, at, or by commissary stores shall not take effect 
     until the Secretary of Defense submits written notice of the 
     proposed change to Congress and a period of 90 days of 
     continuous session of Congress expires following the date on 
     which notice was received For purposes of this paragraph, the 
     continuity of a session of Congress is broken only by an 
     adjournment of the Congress sine die, and the days on which 
     either House is not in session because of an adjournment or 
     recess of more than three days to a day certain are excluded 
     in a computation of such 90-day period.''.
       (d) Special Rules for Certain Merchandise.--Such section is 
     further amended by adding at the end the following new 
     subsection:
       ``(f) Special Rules for Certain Merchandise.--(1) 
     Notwithstanding the general requirement that merchandise sold 
     in, at, or by commissary stores be commissary store 
     inventory, the Secretary of Defense may authorize the sale of 
     items in the merchandise categories specified in paragraph 
     (2) as noncommissary store inventory. Subsections (c) and (d) 
     shall not apply to the pricing of such merchandise items.
       ``(2) The merchandise categories referred to in paragraph 
     (1) are as follows:
       ``(A) Magazines and other periodicals.
       ``(B) Tobacco products.''.
       (e) Clerical and Conforming Amendments.--Such section is 
     further amended--
       (1) in subsection (a), by inserting ``In General.--'' after 
     ``(a)''; and
       (2) in subsection (e)--
       (A) by inserting ``Special Rule for Brand-Name Commercial 
     Items.--'' after ``(e)''; and
       (B) by striking out ``in commissary stores'' both places it 
     appears and inserting in lieu thereof ``in, at, or by 
     commissary stores''.
       (f) Report on Merchandise Categories.--Not later than 30 
     days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to Congress a report 
     specifying the merchandise categories authorized for sale 
     sold in, at, or by commissary stores pursuant to regulations 
     prescribed under subsection (b)(11) of section 2486 of title 
     10, United States Code, as in effect before such date.

     SEC. 373. LIMITATION ON NONCOMPETITIVE PROCUREMENT OF BRAND-
                   NAME COMMERCIAL ITEMS FOR RESALE IN COMMISSARY 
                   STORES.

       Section 2486(e) of title 10, United States Code, as amended 
     by section 372(e)(2), is further amended by adding at the end 
     the following new sentence: ``In determining whether a brand 
     name commercial item is regularly sold outside of commissary 
     stores, the Secretary shall consider only sales of the item 
     on a regional or national basis by commercial grocery or 
     other retail operations consisting of multiple stores.''.

     SEC. 374. TREATMENT OF REVENUES DERIVED FROM COMMISSARY STORE 
                   ACTIVITIES.

       (a) Treatment of Revenues.--Section 2685 of title 10, 
     United States Code, is amended by adding at the end the 
     following new subsection:
       ``(e) Other Sources of Funds for Construction and 
     Improvements.--Revenues received by the Secretary of Defense 
     from the following sources or activities of commissary store 
     facilities shall be available for the purposes set forth in 
     subsections (b), (c), and (d):
       ``(1) Sale of recyclable materials.
       ``(2) Sale of excess and surplus property.
       ``(3) License fees.
       ``(4) Royalties.
       ``(5) Fees paid by sources of products in order to obtain 
     favorable display of the products for resale, known as 
     business related management fees.''.
       (b) Clerical Amendments.--Such section is further amended--
       (1) in subsection (a), by inserting ``Adjustment or 
     Surcharge Authorized.--'' after ``(a)'';

[[Page H9100]]

       (2) in subsection (b), by inserting ``Use for Construction 
     and Improvement of Facilities.--'' after ``(b)'';
       (3) in subsection (c), by inserting ``Advance Obligation.--
     '' after ``(c)''; and
       (4) in subsection (d), by inserting ``Cooperation With 
     Nonappropriated Fund Instrumentalities.--'' after ``(d)''.

     SEC. 375. MAINTENANCE, REPAIR, AND RENOVATION OF ARMED FORCES 
                   RECREATION CENTER, EUROPE.

       Section 2247(b) of title 10, United States Code, is amended 
     by striking out ``real property maintenance, and'' and 
     inserting in lieu thereof ``the maintenance, repair, or 
     renovation of real property, and the''.

     SEC. 376. PLAN FOR USE OF PUBLIC AND PRIVATE PARTNERSHIPS TO 
                   BENEFIT MORALE, WELFARE, AND RECREATION 
                   ACTIVITIES.

       (a) Plan Required.--The Secretary of Defense shall prepare 
     a plan containing a proposal regarding the advisability and 
     feasibility of permitting nonappropriated fund 
     instrumentalities of the Department of Defense to enter into 
     leases, licensing agreements, concession agreements, and 
     other contracts with private persons and State or local 
     governments to facilitate the provision of facilities, goods, 
     or services to authorized patrons of nonappropriated fund 
     instrumentalities and to generate revenues for the Department 
     of Defense to be used solely for the benefit of 
     nonappropriated fund instrumentalities.
       (b) Recommendations for Scope of Plan.--In developing the 
     proposal under subsection (a), the Secretary shall include 
     recommendations regarding the following:
       (1) The proposed criteria to be used to select goods or 
     services suitable for provision to patrons of nonappropriated 
     fund instrumentalities through a lease or other contractual 
     arrangement.
       (2) The proposed mechanism to be used to assess the likely 
     impact of such a lease or other contractual arrangement on 
     private businesses in the locality that provide the same 
     goods or services proposed to be provided under such a lease 
     or other contractual arrangement.
       (3) The feasibility and desirability of authorizing persons 
     who are not authorized patrons of nonappropriated fund 
     instrumentalities to receive goods and services provided 
     through such a lease or other contractual arrangement.
       (4) The proposed mechanism to be used to ensure that such a 
     lease or contract will not be inconsistent with and will not 
     adversely affect the mission of the Department of Defense or 
     the nonappropriated fund instrumentality involved.
       (c) Submission of Plan.--Not later than March 1, 1998, the 
     Secretary shall submit to Congress the plan required under 
     subsection (a).
                       Subtitle F--Other Matters

     SEC. 381. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
                   BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
                   FORCES AND DEPARTMENT OF DEFENSE CIVILIAN 
                   EMPLOYEES.

       (a) Continuation of Department of Defense Program for 
     Fiscal Year 1998.--Of the amount authorized to be 
     appropriated pursuant to section 301(5) for operation and 
     maintenance for Defense-wide activities--
       (1) $30,000,000 shall be available for providing 
     educational agencies assistance (as defined in subsection 
     (d)(1)) to local educational agencies; and
       (2) $5,000,000 shall be available for making educational 
     agencies payments (as defined in subsection (d)(2)) to local 
     educational agencies.
       (b) Notification.--Not later than June 30, 1998, the 
     Secretary of Defense shall--
       (1) notify each local educational agency that is eligible 
     for educational agencies assistance for fiscal year 1998 of 
     that agency's eligibility for such assistance and the amount 
     of such assistance for which that agency is eligible; and
       (2) notify each local educational agency that is eligible 
     for an educational agencies payment for fiscal year 1998 of 
     that agency's eligibility for such payment and the amount of 
     the payment for which that agency is eligible.
       (c) Disbursement of Funds.--The Secretary of Defense shall 
     disburse funds made available under paragraphs (1) and (2) of 
     subsection (a) not later than 30 days after the date on 
     which notification to the eligible local educational 
     agencies is provided pursuant to subsection (b).
       (d) Definitions.--In this section:
       (1) The term ``educational agencies assistance'' means 
     assistance authorized under section 386(b) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 20 U.S.C. 7703 note).
       (2) The term ``educational agencies payments'' means 
     payments authorized under section 386(d) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 20 U.S.C. 7703 note).
       (3) The term ``local educational agency'' has the meaning 
     given that term in section 8013(9) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
       (e) Technical Correction Relating to Original Assistance 
     Authority.--Section 386(c)(1) of the National Defense 
     Authorization Act for Fiscal Year 1993 (Public Law 102-484; 
     20 U.S.C. 7703 note) is amended--
       (1) by striking out ``section 8003(a)'' and inserting in 
     lieu thereof ``section 8003(a)(1)''; and
       (2) by striking out ``(20 U.S.C. 7703(a))'' and inserting 
     in lieu thereof ``(20 U.S.C. 7703(a)(1))''.

     SEC. 382. CENTER FOR EXCELLENCE IN DISASTER MANAGEMENT AND 
                   HUMANITARIAN ASSISTANCE.

       (a) Establishment and Operation of Center.--(1) Chapter 7 
     of title 10, United States Code, is amended by adding at the 
     end the following new section:

     ``Sec. 182. Center for Excellence in Disaster Management and 
       Humanitarian Assistance

       ``(a) Establishment.--The Secretary of Defense may operate 
     a Center for Excellence in Disaster Management and 
     Humanitarian Assistance (in this section referred to as the 
     `Center').
       ``(b) Missions.--(1) The Center shall be used to provide 
     and facilitate education, training, and research in civil-
     military operations, particularly operations that require 
     international disaster management and humanitarian assistance 
     and operations that require coordination between the 
     Department of Defense and other agencies.
       ``(2) The Center shall be used to make available high-
     quality disaster management and humanitarian assistance in 
     response to disasters.
       ``(3) The Center shall be used to provide and facilitate 
     education, training, interagency coordination, and research 
     on the following additional matters:
       ``(A) Management of the consequences of nuclear, 
     biological, and chemical events.
       ``(B) Management of the consequences of terrorism.
       ``(C) Appropriate roles for the reserve components in the 
     management of such consequences and in disaster management 
     and humanitarian assistance in response to natural disasters.
       ``(D) Meeting requirements for information in connection 
     with regional and global disasters, including the use of 
     advanced communications technology as a virtual library.
       ``(E) Tropical medicine, particularly in relation to the 
     medical readiness requirements of the Department of Defense.
       ``(4) The Center shall develop a repository of disaster 
     risk indicators for the Asia-Pacific region.
       ``(5) The Center shall perform such other missions as the 
     Secretary of Defense may specify.
       ``(c) Joint Operation With Educational Institution 
     Authorized.--The Secretary of Defense may enter into an 
     agreement with appropriate officials of an institution of 
     higher education to provide for joint operation of the 
     Center. Any such agreement shall provide for the institution 
     to furnish necessary administrative services for the Center, 
     including administration and allocation of funds.
       ``(d) Acceptance of Donations.--(1) Except as provided in 
     paragraph (2), the Secretary of Defense may accept, on behalf 
     of the Center, donations to be used to defray the costs of 
     the Center or to enhance the operation of the Center. Such 
     donations may be accepted from any agency of the Federal 
     Government, any State or local government, any foreign 
     government, any foundation or other charitable 
     organization (including any that is organized or operates 
     under the laws of a foreign country), or any other private 
     source in the United States or a foreign country.
       ``(2) The Secretary may not accept a donation under 
     paragraph (1) if the acceptance of the donation would 
     compromise or appear to compromise--
       ``(A) the ability of the Department of Defense, any 
     employee of the Department, or members of the armed forces, 
     to carry out any responsibility or duty of the Department in 
     a fair and objective manner; or
       ``(B) the integrity of any program of the Department of 
     Defense or of any person involved in such a program.
       ``(3) The Secretary shall prescribe written guidance 
     setting forth the criteria to be used in determining whether 
     or not the acceptance of a foreign donation would have a 
     result described in paragraph (2).
       ``(4) Funds accepted by the Secretary under paragraph (1) 
     as a donation on behalf of the Center shall be credited to 
     appropriations available to the Department of Defense for the 
     Center. Funds so credited shall be merged with the 
     appropriations to which credited and shall be available for 
     the Center for the same purposes and the same period as the 
     appropriations with which merged.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``182. Center for Excellence in Disaster Management and Humanitarian 
              Assistance.''.

       (b) Funding for Fiscal Year 1998.--Of the funds authorized 
     to be appropriated pursuant to section 301(5) for operation 
     and maintenance for Defense-wide activities, $5,000,000 shall 
     be available for the operation of the Center for Excellence 
     in Disaster Management and Humanitarian Assistance 
     established under section 182 of title 10, United States 
     Code, as added by subsection (a).

     SEC. 383. APPLICABILITY OF FEDERAL PRINTING REQUIREMENTS TO 
                   DEFENSE AUTOMATED PRINTING SERVICE.

       (a) In General.--Subchapter I of chapter 8 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 195. Defense Automated Printing Service: applicability 
       of Federal printing requirements

       ``The Defense Automated Printing Service shall comply fully 
     with the requirements of section 501 of title 44 relating to 
     the production and procurement of printing, binding, and 
     blank-book work.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by adding at the end 
     the following new item:

``195. Defense Automated Printing Service: applicability of Federal 
              printing requirements.''.

     SEC. 384. STUDY AND NOTIFICATION REQUIREMENTS FOR CONVERSION 
                   OF COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO 
                   CONTRACTOR PERFORMANCE.

       (a) Additional Notification Requirement.--Subsection (a)(1) 
     of section 2461 of title 10, United States Code, is amended 
     by inserting before the semicolon the following: ``and the 
     anticipated length and cost of the study''.

[[Page H9101]]

       (b) Notification of Conversion Decision.--Subsection (b) of 
     such section amended by adding at the end the following new 
     sentence: ``The notification shall include the timetable for 
     completing conversion of the function to contractor 
     performance.''.
       (c) Waiver for Small Functions.--Subsection (d) of such 
     section is amended by striking out ``45 or fewer'' and 
     inserting in lieu thereof ``20 or fewer''.

     SEC. 385. COLLECTION AND RETENTION OF COST INFORMATION DATA 
                   ON CONVERTED SERVICES AND FUNCTIONS.

       (a) Collection and Retention Required.--Section 2463 of 
     title 10, United States Code, is amended to read as follows:

     ``Sec. 2463. Collection and retention of cost information 
       data on converted services and functions

       ``(a) Requirements In Connection With Conversion to 
     Contractor Performance.--With respect to each contract 
     converting the performance of a service or function of the 
     Department of Defense to contractor performance (and any 
     extension of such a contract), the Secretary of Defense shall 
     collect, during the term of the contract or extension, but 
     not to exceed five years, cost information data regarding 
     performance of the service or function by private contractor 
     employees.
       ``(b) Requirements In Connection With Return to Employee 
     Performance.--Whenever the performance of a commercial or 
     industrial type activity of the Department of Defense that is 
     being performed by 50 or more employees of a private 
     contractor is changed to performance by civilian employees of 
     the Department of Defense, the Secretary of Defense shall 
     collect, for a five-year period, cost information data 
     comparing--
       ``(1) the estimated costs of continued performance of such 
     activity by private contractor employees; and
       ``(2) the costs of performance of such activity by civilian 
     employees of the Department of Defense.
       ``(c) Retention of Information.--With regard to the 
     conversion to or from contractor performance of a particular 
     service or function of the Department of Defense, the 
     Secretary of Defense shall provide for the retention of 
     information collected under this section for at least a 10-
     year period beginning at the end of the final year in which 
     the information is collected.''.
       (b) Clerical Amendment.--The item relating to such section 
     in the table of sections at the beginning of chapter 146 of 
     title 10, United States Code, is amended to read as follows:

``2463. Collection and retention of cost information data on converted 
              services and functions.''.

     SEC. 386. FINANCIAL ASSISTANCE TO SUPPORT ADDITIONAL DUTIES 
                   ASSIGNED TO ARMY NATIONAL GUARD.

       (a) Authority.--Chapter 1 of title 32, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 113. Federal financial assistance for support of 
       additional duties assigned to the Army National Guard

       ``(a) Authority.--The Secretary of the Army may provide 
     financial assistance to a State to support activities carried 
     out by the Army National Guard of the State in the 
     performance of duties that the Secretary has assigned, with 
     the consent of the Chief of the National Guard Bureau, to the 
     Army National Guard of the State. The Secretary shall 
     determine the amount of the assistance that is appropriate 
     for the purpose.
       ``(b) Covered Activities.--Activities supported under this 
     section may include only those activities that are carried 
     out by the Army National Guard in the performance of 
     responsibilities of the Secretary of the Army under 
     paragraphs (6), (10), and (11) of section 3013(b) of title 
     10.
       ``(c) Disbursement Through National Guard Bureau.--The 
     Secretary of the Army shall disburse any contribution under 
     this section through the Chief of the National Guard Bureau.
       ``(d) Availability of Funds.--Funds appropriated for the 
     Army for a fiscal year are available for providing financial 
     assistance under this section in support of activities 
     carried out by the Army National Guard during that fiscal 
     year.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``113. Federal financial assistance for support of additional duties 
              assigned to the Army National Guard.''.

     SEC. 387. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION 
                   SERVICES.

       (a) Extension of Requirement to Use Private-Sector 
     Sources.--Subsection (a) of section 351 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106; 110 Stat. 266) is amended--
       (1) by striking out ``and 1997'' and inserting in lieu 
     thereof ``through 1998''; and
       (2) by striking out ``Defense Printing Service'' and 
     inserting in lieu thereof ``Defense Automated Printing 
     Service''.
       (b) Surcharge for Services.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(d) Conditions on Imposition of Surcharge.--(1) Any 
     surcharge imposed by the Defense Automated Printing Service 
     on printing and duplication services for the Department of 
     Defense shall be based on direct services provided by the 
     Defense Automated Printing Service and reflect the costs 
     incurred by the Defense Automated Printing Service, as 
     described in its annual budget.
       ``(2) The Defense Automated Printing Service may not impose 
     a surcharge on any printing and duplication service for the 
     Department of Defense that is procured from a source outside 
     of the Department.''.
       (c) Authority to Procure Services From Government Printing 
     Office.--Consistent with section 501 of title 44, United 
     States Code, the Secretary of a military department or head 
     of a Defense Agency may contract directly with the Government 
     Printing Office for printing and duplication services 
     otherwise available through the Defense Automated Printing 
     Service.

     SEC. 388. CONTINUATION AND EXPANSION OF DEMONSTRATION PROGRAM 
                   TO IDENTIFY OVERPAYMENTS MADE TO VENDORS.

       (a) Scope of Program.--Section 354 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 268; 10 U.S.C. 2461 note) is amended--
       (1) in subsection (a), by striking out the second sentence; 
     and
       (2) in subsection (b)(1), by striking out ``of the Defense 
     Logistics Agency that relate to (at least) fiscal years 1993, 
     1994, and 1995'' and inserting in lieu thereof ``relating to 
     fiscal years after fiscal year 1993 of the working-capital 
     funds and industrial, commercial, and support type activities 
     managed through the Defense Business Operations Fund, except 
     the Defense Logistics Agency to the extent such records have 
     already been audited''.
       (b) Collection Method; Contractor Payments.--Such section 
     is further amended by striking out subsections (d) and (e) 
     and inserting in lieu thereof the following new subsections:
       ``(d) Collection Method.--(1) In the case of an overpayment 
     to a vendor identified under the demonstration program, the 
     Secretary shall consider the use of the procedures specified 
     in section 32.611 of the Federal Acquisition Regulation, 
     regarding a setoff against existing invoices for payment to 
     the vendor, as the first method by which the Department seeks 
     to recover the amount of the overpayment (and any applicable 
     interest and penalties) from the vendor.
       ``(2) The Secretary of Defense shall be solely responsible 
     for notifying a vendor of an overpayment made to the vendor 
     and identified under the demonstration program and for 
     recovering the amount of the overpayment (and any applicable 
     interest and penalties) from the vendor.
       ``(e) Fees for Contractor.--The Secretary shall pay to the 
     contractor under the contract entered into under the 
     demonstration program an amount not to exceed 25 percent of 
     the total amount recovered by the Department (through the 
     collection of overpayments and the use of setoffs) solely on 
     the basis of information obtained as a result of the audits 
     performed by the contractor under the program. When an 
     overpayment is recovered through the use of a setoff, amounts 
     for the required payment to the contractor shall be derived 
     from funds available to the working-capital fund or 
     industrial, commercial, or support type activity for which 
     the overpayment is recovered.''.
       (c) GAO Review.--Not later than December 31, 1998, the 
     Comptroller General shall submit to Congress a report 
     containing the results of a review by the Comptroller General 
     of the demonstration program conducted under section 354 of 
     the National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 10 U.S.C. 2461 note). In the review, the 
     Comptroller General shall--
       (1) assess the success of the methods used in the 
     demonstration program to identify overpayments made to 
     vendors;
       (2) consider the types of overpayments identified and the 
     feasibility of avoiding such overpayments through contract 
     adjustments;
       (3) determine the total amount of overpayments recovered 
     under the demonstration program; and
       (4) develop recommendations for improving the process by 
     which overpayments are recovered by the Department of 
     Defense.

     SEC. 389. DEVELOPMENT OF STANDARD FORMS REGARDING PERFORMANCE 
                   WORK STATEMENT AND REQUEST FOR PROPOSAL FOR 
                   CONVERSION OF CERTAIN OPERATIONAL FUNCTIONS OF 
                   MILITARY INSTALLATIONS.

       (a) Standardization of Requirements.--The Secretary of 
     Defense is authorized and encouraged to develop standard 
     forms (to be known as a ``standard performance work 
     statement'' and a ``standard request for proposal'') for use 
     in the consideration for conversion to contractor performance 
     of commercial services and functions at military 
     installations. A separate standard form shall be developed 
     for each service and function.
       (b) Relationship to OMB Requirements.--A standard 
     performance work statement or a standard request for proposal 
     developed under subsection (a) must fulfill the basic 
     requirements of the performance work statement or request for 
     proposal otherwise required under the procedures and 
     requirements of Office of Management and Budget Circular A-76 
     (or any successor administrative regulation or policy) in 
     effect at the time the standard form will be used.
       (c) Priority Development of Certain Forms.--In developing 
     standard performance work statements and standard requests 
     for proposal, the Secretary shall give first priority to 
     those commercial services and functions that the Secretary 
     determines have been successfully converted to contractor 
     performance on a repeated basis.
       (d) Incentive for Use.--Beginning not later than October 1, 
     1998, if a standard performance work statement or a standard 
     request for proposal is developed under subsection (a) for a 
     particular service and function, the standard form may be 
     used in lieu of the performance work statement or request for 
     proposal otherwise required under the procedures and 
     requirements of Office of Management and Budget Circular

[[Page H9102]]

     A-76 in connection with the consideration for conversion to 
     contractor performance of that service or function at a 
     military installation.
       (e) Exclusion of Multi-Function Conversion.--If a 
     commercial service or function for which a standard form is 
     developed under subsection (a) is combined with another 
     service or function (for which such a form has not yet been 
     developed) for purposes of considering the services and 
     functions at the military installation for conversion to 
     contractor performance, a standard performance work statement 
     or a standard request for proposal developed under subsection 
     (a) may not be used in the conversion process in lieu of the 
     procedures and requirements of Office of Management and 
     Budget Circular A-76.
       (f) Effect on Other Laws.--Nothing in this section shall be 
     construed to supersede any other requirements or limitations, 
     specifically contained in chapter 146 of title 10, United 
     States Code, on the conversion to contractor performance of 
     activities performed by civilian employees of the Department 
     of Defense.
       (g) GAO Report.--Not later than June 1, 1999, the Secretary 
     of Defense shall submit to Congress a report reviewing the 
     implementation of this section.
       (h) Military Installation Defined.--For purposes of this 
     section, the term ``military installation'' means a base, 
     camp, post, station, yard, center, homeport facility for any 
     ship, or other activity under the jurisdiction of the 
     Department of Defense, including any leased facility.

     SEC. 390. BASE OPERATIONS SUPPORT FOR MILITARY INSTALLATIONS 
                   ON GUAM.

       (a) Contractor Use of Nonimmigrant Aliens.--Each contract 
     for base operations support to be performed on Guam shall 
     contain a condition that work under the contract may not be 
     performed by any alien who is issued a visa or otherwise 
     provided nonimmigrant status under section 101(a)(15)(H)(ii) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(15)(H)(ii)).
       (b) Application of Section.--This section shall apply to 
     contracts entered into, amended, or otherwise modified on or 
     after the date of the enactment of this Act.

     SEC. 391. WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

       (a) Pilot Program Required.--The Secretary of Defense may 
     carry out a pilot program to use commercial sources of 
     services to improve the collection of Department of Defense 
     claims under aircraft engine warranties.
       (b) Contracts.--Exercising the authority provided in 
     section 3718 of title 31, United States Code, the Secretary 
     of Defense may enter into contracts under the pilot program 
     to provide for the following services:
       (1) Collection services.
       (2) Determination of amounts owed the Department of Defense 
     for repair of aircraft engines for conditions covered by 
     warranties.
       (3) Identification and location of the sources of 
     information that are relevant to collection of Department of 
     Defense claims under aircraft engine warranties, including 
     electronic data bases and document filing systems maintained 
     by the Department of Defense or by the manufacturers and 
     suppliers of the aircraft engines.
       (4) Services to define the elements necessary for an 
     effective training program to enhance and improve the 
     performance of Department of Defense personnel in collecting 
     and organizing documents and other information that are 
     necessary for efficient filing, processing, and collection of 
     Department of Defense claims under aircraft engine 
     warranties.
       (c) Contractor Fee.--Under the authority provided in 
     section 3718(d) of title 31, United States Code, a contract 
     entered into under the pilot program shall provide for the 
     contractor to be paid, out of the amount recovered by the 
     contractor under the program, such percentages of the amount 
     recovered as the Secretary of Defense determines appropriate.
       (d) Retention of Recovered Funds.--Subject to any 
     obligation to pay a fee under subsection (c), any amount 
     collected for the Department of Defense under the pilot 
     program for a repair of an aircraft engine for a condition 
     covered by a warranty shall be credited to an appropriation 
     available for repair of aircraft engines for the fiscal year 
     in which collected and shall be available for the same 
     purposes and same period as the appropriation to which 
     credited.
       (e) Regulations.--The Secretary of Defense shall prescribe 
     regulations to carry out this section.
       (f) Termination of Authority.--The pilot program shall 
     terminate on September 30, 1999, and contracts entered into 
     under this section shall terminate not later than that date.
       (g) Reporting Requirements.--(1) Not later than January 1, 
     2000, the Secretary of Defense shall submit to Congress a 
     report on the pilot program. The report shall include the 
     following:
       (A) The number of contracts entered into under the program.
       (B) The extent to which the services provided under the 
     contracts resulted in financial benefits for the Federal 
     Government.
       (C) Any additional comments and recommendations that the 
     Secretary considers appropriate regarding use of commercial 
     sources of services for collection of Department of Defense 
     claims under aircraft engine warranties.
       (2) Not later than March 1, 2000, the Comptroller General 
     shall submit to Congress a report containing the results of a 
     review by the Comptroller General of the pilot program. In 
     the review, the Comptroller General shall--
       (A) assess the success of the methods used in the 
     demonstration program to identify and recover Department of 
     Defense claims under aircraft engine warranties;
       (B) determine the total amount recovered by the Department 
     of Defense under the pilot program;
       (C) evaluate the report prepared by the Secretary under 
     paragraph (1); and
       (D) develop recommendations for improving the process by 
     which warranty claims are recovered by the Department of 
     Defense.

     SEC. 392. PROGRAM TO INVESTIGATE FRAUD, WASTE, AND ABUSE 
                   WITHIN DEPARTMENT OF DEFENSE.

       The Secretary of Defense shall maintain a specific 
     coordinated program for the investigation of evidence of 
     fraud, waste, and abuse within the Department of Defense, 
     particularly fraud, waste, and abuse regarding finance and 
     accounting matters.

     SEC. 393. MULTITECHNOLOGY AUTOMATED READER CARD DEMONSTRATION 
                   PROGRAM.

       (a) Program Required.--The Secretary of the Navy shall 
     carry out a program to demonstrate expanded use of 
     multitechnology automated reader cards throughout the Navy 
     and the Marine Corps. The demonstration program shall include 
     demonstration of the use of the so-called ``smartship'' 
     technology of the ship-to-shore work load / off load program 
     of the Navy.
       (b) Period of Program.--The Secretary shall carry out the 
     demonstration program for two years beginning not later than 
     January 1, 1998.
       (c) Report.--Not later than 90 days after termination of 
     the demonstration program, the Secretary shall submit to 
     Congress a report on the results of the program.
       (d) Funding.--Of the amount authorized to be appropriated 
     pursuant to section 301(2) for operation and maintenance for 
     the Navy, $36,000,000 shall be available for the 
     demonstration program under this section, of which $6,300,000 
     shall be available for demonstration of the use of the so-
     called ``smartship'' technology of the ship-to-shore work 
     load / off load program of the Navy.

     SEC. 394. REDUCTION IN OVERHEAD COSTS OF INVENTORY CONTROL 
                   POINTS.

       (a) Report and Plan Required.--Not later than March 1, 
     1998, the Secretary of Defense shall submit to Congress a 
     report containing a plan to reduce overhead costs of the 
     supply management activities of the Defense Logistics Agency 
     and the military departments (known as Inventory Control 
     Points) so that the overhead costs for each fiscal year after 
     fiscal year 2000 do not exceed eight percent of net sales at 
     standard price by Inventory Control Points during that year.
       (b) Additional Report Requirement.--In addition to the 
     plan, the report shall include the following:
       (1) An identification of inherently governmental, core and 
     noncore functions in Inventory Control Points and 
     Distribution Depots.
       (2) A description of efforts, other than prime vendor and 
     virtual prime vendor, underway or proposed to improve the 
     efficiency, incentives, and accountability in Department of 
     Defense supply, inventory and warehousing services and rates.
       (3) An identification and description of the benchmarks 
     established in the warehousing, distribution, and supply 
     functions of the Department and the relationship of the 
     benchmarks to performance measurement methods used in the 
     private sector.
       (4) A description of the outcome-oriented performance 
     measures that are currently being used to evaluate Inventory 
     Control Points and Distribution Depots.
       (5) A specification of any legislative, regulatory, or 
     operational impediments to achieving the requirement in 
     subsection (a) and implementing best business practices in 
     the warehousing, distribution, and supply functions of the 
     Department.
       (c) Definitions.--For purposes of this section:
       (1) The term ``overhead costs'' means the total expenses of 
     the Inventory Control Points, excluding--
       (A) annual materiel costs; and
       (B) military and civilian personnel related costs, defined 
     as personnel compensation and benefits under the March 1996 
     Department of Defense Financial Management Regulations, 
     Volume 2A, Chapter 1, Budget Account Title File (Object 
     Classification Name/Code), object classifications 200, 211, 
     220, 221, 222, and 301.
       (2) The term ``net sales at standard price'' has the 
     meaning given that term in the March 1996 Department of 
     Defense Financial Management Regulations, Volume 2B, Chapter 
     9, and displayed in ``Exhibit Fund--14 Revenue and Expenses'' 
     for the supply management business areas.

     SEC. 395. INVENTORY MANAGEMENT.

       (a) Development and Submission of Schedule.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Director of the Defense Logistics Agency shall develop and 
     submit to Congress a schedule for implementing within the 
     agency, for the supplies and equipment described in 
     subsection (b), inventory practices identified by the 
     Director as being the best commercial inventory practices for 
     the acquisition and distribution of such supplies and 
     equipment consistent with military requirements. The schedule 
     shall provide for the implementation of such practices to be 
     completed not later than three years after date of the 
     enactment of this Act.
       (b) Covered Supplies and Equipment.--Subsection (a) shall 
     apply to the following types of supplies and equipment for 
     the Department of Defense:
       (1) Medical and pharmaceutical.
       (2) Subsistence.
       (3) Clothing and textiles.
       (4) Commercially available electronics.
       (5) Construction.
       (6) Industrial.
       (7) Automotive.
       (8) Fuel.
       (9) Facilities maintenance.
       (c) Definition.--For purposes of this section, the term 
     ``best commercial inventory practice''

[[Page H9103]]

     includes a so-called prime vendor arrangement and any other 
     practice that the Director determines will enable the Defense 
     Logistics Agency to reduce inventory levels and holding costs 
     while improving the responsiveness of the supply system to 
     user needs.
       (d) Report on Expansion of Covered Supplies and 
     Equipment.--Not later than March 1, 1998, the Comptroller 
     General shall submit to Congress a report evaluating the 
     feasibility of expanding the list of covered supplies and 
     equipment under subsection (b) to include repairable items.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
              contingencies.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              Reserves.
Sec. 413. End strengths for military technicians (dual status).

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       The Armed Forces are authorized strengths for active duty 
     personnel as of September 30, 1998, as follows:
       (1) The Army, 495,000.
       (2) The Navy, 390,802.
       (3) The Marine Corps, 174,000.
       (4) The Air Force, 371,577.

     SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT TWO MAJOR 
                   REGIONAL CONTINGENCIES.

       (a) Change in Permanent End Strengths.--Subsection (b) of 
     section 691 of title 10, United States Code, is amended--
       (1) in paragraph (2), by striking out ``395,000'' and 
     inserting in lieu thereof ``390,802''; and
       (2) in paragraph (4), by striking out ``381,000'' and 
     inserting in lieu thereof ``371,577''.
       (b) Increased Flexibility for the Army.--Subsection (e) of 
     such section is amended by inserting ``or, in the case of the 
     Army, by not more than 1.5 percent'' before the period at the 
     end.
                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

       (a) In General.--The Armed Forces are authorized strengths 
     for Selected Reserve personnel of the reserve components as 
     of September 30, 1998, as follows:
       (1) The Army National Guard of the United States, 361,516.
       (2) The Army Reserve, 208,000.
       (3) The Naval Reserve, 94,294.
       (4) The Marine Corps Reserve, 42,000.
       (5) The Air National Guard of the United States, 108,002.
       (6) The Air Force Reserve, 73,447.
       (7) The Coast Guard Reserve, 8,000.
       (b) Adjustments.--The end strengths prescribed by 
     subsection (a) for the Selected Reserve of any reserve 
     component shall be proportionately reduced by--
       (1) the total authorized strength of units organized to 
     serve as units of the Selected Reserve of such component 
     which are on active duty (other than for training) at the end 
     of the fiscal year, and
       (2) the total number of individual members not in units 
     organized to serve as units of the Selected Reserve of such 
     component who are on active duty (other than for training or 
     for unsatisfactory participation in training) without their 
     consent at the end of the fiscal year.

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

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

       Within the end strengths prescribed in section 411(a), the 
     reserve components of the Armed Forces are authorized, as of 
     September 30, 1998, the following number of Reserves to 
     be serving on full-time active duty or full-time duty, in 
     the case of members of the National Guard, for the purpose 
     of organizing, administering, recruiting, instructing, or 
     training the reserve components:
       (1) The Army National Guard of the United States, 22,310.
       (2) The Army Reserve, 11,500.
       (3) The Naval Reserve, 16,136.
       (4) The Marine Corps Reserve, 2,559.
       (5) The Air National Guard of the United States, 10,671.
       (6) The Air Force Reserve, 867.

     SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL 
                   STATUS).

       (a) Authorization for Fiscal Year 1998.--The minimum number 
     of military technicians (dual status) as of the last day of 
     fiscal year 1998 for the reserve components of the Army and 
     the Air Force (notwithstanding section 129 of title 10, 
     United States Code) shall be the following:
       (1) For the Army Reserve, 5,503.
       (2) For the Army National Guard of the United States, 
     23,125.
       (3) For the Air Force Reserve, 9,802.
       (4) For the Air National Guard of the United States, 
     22,853.
       (b) Requests for Future Fiscal Years.--Section 115(g) of 
     title 10, United States Code, is amended by adding at the end 
     the following new sentence: ``In each budget submitted by the 
     President to Congress under section 1105 of title 31, the end 
     strength requested for military technicians (dual status) for 
     each reserve component of the Army and Air Force shall be 
     specifically set forth.''.
              Subtitle C--Authorization of Appropriations

     SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY 
                   PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     1998 a total of $69,470,505,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 1998.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Limitation on number of general and flag officers who may 
              serve in positions outside their own service.
Sec. 502. Exclusion of certain retired officers from limitation on 
              period of recall to active duty.
Sec. 503. Clarification of officers eligible for consideration by 
              promotion boards.
Sec. 504. Authority to defer mandatory retirement for age of officers 
              serving as chaplains.
Sec. 505. Increase in number of officers allowed to be frocked to 
              grades of colonel and Navy captain.
Sec. 506. Increased years of commissioned service for mandatory 
              retirement of regular generals and admirals in grades 
              above major general and rear admiral.
Sec. 507. Uniform policy for requirement of exemplary conduct by 
              commanding officers and others in authority.
Sec. 508. Report on the command selection process for District 
              Engineers of the Army Corps of Engineers.

                 Subtitle B--Reserve Component Matters

Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513. Correction of inequities in medical and dental care and death 
              and disability benefits for reserve members who incur or 
              aggravate an illness in the line of duty.
Sec. 514. Authority to permit non-unit assigned officers to be 
              considered by vacancy promotion board to general officer 
              grades.
Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air 
              Force base security functions.
Sec. 516. Involuntary separation of reserve officers in an inactive 
              status.
Sec. 517. Federal status of service by National Guard members as honor 
              guards at funerals of veterans.

                    Subtitle C--Military Technicians

Sec. 521. Authority to retain on the reserve active-status list until 
              age 60 military technicians in the grade of brigadier 
              general.
Sec. 522. Military technicians (dual status).
Sec. 523. Non-dual status military technicians.
Sec. 524. Report on feasibility and desirability of conversion of AGR 
              personnel to military technicians (dual status).

  Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                               Attrition

Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for 
              military service.
Sec. 533. Improvements in physical fitness of recruits.

              Subtitle E--Military Education and Training

                   Part I--Officer Education Programs

Sec. 541. Requirement for candidates for admission to United States 
              Naval Academy to take oath of allegiance.
Sec. 542. Service academy foreign exchange program.
Sec. 543. Reimbursement of expenses incurred for instruction at service 
              academies of persons from foreign countries.
Sec. 544. Continuation of support to senior military colleges.
Sec. 545. Report on making United States nationals eligible for 
              participation in Senior Reserve Officers' Training Corps.
Sec. 546. Coordination of establishment and maintenance of Junior 
              Reserve Officers' Training Corps units to maximize 
              enrollment and enhance efficiency.

                    Part II--Other Education Matters

Sec. 551. United States Naval Postgraduate School.
Sec. 552. Community College of the Air Force.
Sec. 553. Preservation of entitlement to educational assistance of 
              members of the Selected Reserve serving on active duty in 
              support of a contingency operation.

               Part III--Training of Army Drill Sergeants

Sec. 556. Reform of Army drill sergeant selection and training process.
Sec. 557. Training in human relations matters for Army drill sergeant 
              trainees.

 Subtitle F--Commission on Military Training and Gender-Related Issues

Sec. 561. Establishment and composition of Commission.
Sec. 562. Duties.
Sec. 563. Administrative matters.
Sec. 564. Termination of Commission.
Sec. 565. Funding.
Sec. 566. Subsequent consideration by Congress.

[[Page H9104]]

              Subtitle G--Military Decorations and Awards

Sec. 571. Purple Heart to be awarded only to members of the Armed 
              Forces.
Sec. 572. Eligibility for Armed Forces Expeditionary Medal for 
              participation in Operation Joint Endeavor or Operation 
              Joint Guard.
Sec. 573. Waiver of time limitations for award of certain decorations 
              to specified persons.
Sec. 574. Clarification of eligibility of members of Ready Reserve for 
              award of service medal for heroism.
Sec. 575. One-year extension of period for receipt of recommendations 
              for decorations and awards for certain military 
              intelligence personnel.
Sec. 576. Eligibility of certain World War II military organizations 
              for award of unit decorations.
Sec. 577. Retroactivity of Medal of Honor special pension.

                  Subtitle H--Military Justice Matters

Sec. 581. Establishment of sentence of confinement for life without 
              eligibility for parole.
Sec. 582. Limitation on appeal of denial of parole for offenders 
              serving life sentence.

                       Subtitle I--Other Matters

Sec. 591. Sexual harassment investigations and reports.
Sec. 592. Sense of the Senate regarding study of matters relating to 
              gender equity in the Armed Forces.
Sec. 593. Authority for personnel to participate in management of 
              certain non-Federal entities.
Sec. 594. Treatment of participation of members in Department of 
              Defense civil military programs.
Sec. 595. Comptroller General study of Department of Defense civil 
              military programs.
Sec. 596. Establishment of public affairs specialty in the Army.
Sec. 597. Grade of defense attache in France.
Sec. 598. Report on crew requirements of WC-130J aircraft.
Sec. 599. Improvement of missing persons authorities applicable to 
              Department of Defense.
                  Subtitle A--Officer Personnel Policy

     SEC. 501. LIMITATION ON NUMBER OF GENERAL AND FLAG OFFICERS 
                   WHO MAY SERVE IN POSITIONS OUTSIDE THEIR OWN 
                   SERVICE.

       (a) In General.--Chapter 41 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 721. General and flag officers: limitation on 
       appointments, assignments, details, and duties outside an 
       officer's own service

       ``(a) Limitation.--An officer described in subsection (b) 
     may not be appointed, assigned, or detailed for a period in 
     excess of 180 days to a position external to that officer's 
     armed force if, immediately following such appointment, 
     assignment, or detail, the number of officers described in 
     subsection (b) serving in positions external to such 
     officers' armed force would be in excess of 26.5 percent of 
     the total number of the officers described in subsection (b).
       ``(b) Covered Officers.--The officers covered by subsection 
     (a), and to be counted for the purposes of the limitation in 
     that subsection, are the following:
       ``(1) Any general or flag officer counted for purposes of 
     section 526(a) of this title.
       ``(2) Any general or flag officer serving in a joint duty 
     assignment position designated by the Chairman of the Joint 
     Chiefs of Staff under section 526(b) of this title.
       ``(3) Any colonel or Navy captain counted for purposes of 
     section 777(d)(1) of this title.
       ``(c) External Positions.--For purposes of this section, 
     the following positions shall be considered to be external to 
     an officer's armed force:
       ``(1) Any position (including a position in joint 
     education) that is a joint duty assignment for purposes of 
     chapter 38 of this title.
       ``(2) Any position in the Office of the Secretary of 
     Defense, a Defense Agency, or a Department of Defense Field 
     Activity.
       ``(3) Any position in the Joint Chiefs of Staff, the Joint 
     Staff, or the headquarters of a combatant command (as defined 
     in chapter 6 of this title).
       ``(4) Any position in the National Guard Bureau.
       ``(5) Any position outside the Department of Defense, 
     including any position in the headquarters of the North 
     Atlantic Treaty Organization or any other international 
     military command, any combined or multinational command, or 
     military mission.
       ``(d) Treatment of Officers Holding Multiple Positions.--
     (1) If an officer described in subsection (b) simultaneously 
     holds both a position external to that officer's armed force 
     and another position not external to that officer's armed 
     force, the Secretary of Defense shall determine whether that 
     officer shall be counted for the purposes of this section.
       ``(2) The Secretary of Defense shall submit to Congress an 
     annual report on the number of officers to whom paragraph (1) 
     was applicable during the year covered by the report. The 
     report shall set forth the determination made by the 
     Secretary under that paragraph in each such case.
       ``(e) Assignments, Etc., For Periods in Excess of 180 
     Days.--For purposes of this section, the appointment, 
     assignment, or detail of an officer to a position shall be 
     considered to be for a period in excess of 180 days unless 
     the appointment, assignment, or detail specifies that it is 
     made for a period of 180 days or less.
       ``(f) Waiver During Period of War or National Emergency.--
     The President may suspend the operation of this section 
     during any period of war or of national emergency declared by 
     Congress or the President.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``721. General and flag officers: limitation on appointments, 
              assignments, details, and duties outside an officer's own 
              service.''.

     SEC. 502. EXCLUSION OF CERTAIN RETIRED OFFICERS FROM 
                   LIMITATION ON PERIOD OF RECALL TO ACTIVE DUTY.

       Section 688(e) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(1)'' before ``A member''; and
       (2) by adding at the end the following:
       ``(2) Paragraph (1) does not apply to the following 
     officers:
       ``(A) A chaplain who is assigned to duty as a chaplain for 
     the period of active duty to which ordered.
       ``(B) A health care professional (as characterized by the 
     Secretary concerned) who is assigned to duty as a health care 
     professional for the period of active duty to which ordered.
       ``(C) An officer assigned to duty with the American Battle 
     Monuments Commission for the period of active duty to which 
     ordered.''.

     SEC. 503. CLARIFICATION OF OFFICERS ELIGIBLE FOR 
                   CONSIDERATION BY PROMOTION BOARDS.

       (a) Officers on the Active-Duty List.--Section 619(d) of 
     title 10, United States Code, is amended--
       (1) by striking out ``grade--'' in the matter preceding 
     paragraph (1) and inserting in lieu thereof ``grade any of 
     the following officers:'';
       (2) in paragraph (1)--
       (A) by striking out ``an officer'' and inserting in lieu 
     thereof ``An officer''; and
       (B) by striking out ``; or'' at the end and inserting in 
     lieu thereof a period;
       (3) by redesignating paragraph (2) as paragraph (3) and in 
     that paragraph striking out ``an officer'' and inserting in 
     lieu thereof ``An officer''; and
       (4) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) An officer who is recommended for promotion to that 
     grade in the report of an earlier selection board convened 
     under that section, in the case of such a report that has not 
     yet been approved by the President.''.
       (b) Officers on the Reserve Active-Status List.--Section 
     14301(c) of such title is amended--
       (1) by striking out ``grade--'' in the matter preceding 
     paragraph (1) and inserting in lieu thereof ``grade any of 
     the following officers:'';
       (2) by striking out ``an officer'' in each of paragraphs 
     (1), (2), and (3) and inserting in lieu thereof ``An 
     officer'';
       (3) by striking out the semicolon at the end of paragraph 
     (1) and inserting in lieu thereof a period;
       (4) by striking out ``; or'' at the end of paragraph (2) 
     and inserting in lieu thereof a period;
       (5) by redesignating paragraphs (2) and (3), as so amended, 
     as paragraphs (3) and (4), respectively, and in each such 
     paragraph striking out ``the next higher grade'' and 
     inserting in lieu thereof ``that grade''; and
       (6) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) An officer who is recommended for promotion to that 
     grade in the report of an earlier selection board convened 
     under a provision referred to in paragraph (1), in the case 
     of such a report that has not yet been approved by the 
     President.''.
       (c) Clarifying Amendments.--Paragraphs (3) and (4) of 
     section 14301(c) of such title, as redesignated and amended 
     by subsection (b), are each amended by inserting before the 
     period at the end the following: ``, if that nomination is 
     pending before the Senate''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act 
     and shall apply with respect to selection boards that are 
     convened under section 611(a), 14101(a), or 14502 of title 
     10, United States Code, on or after that date.

     SEC. 504. AUTHORITY TO DEFER MANDATORY RETIREMENT FOR AGE OF 
                   OFFICERS SERVING AS CHAPLAINS.

       (a) Authority for Deferral of Retirement for Chaplains.--
     Subsection (c) of section 1251 of title 10, United States 
     Code, is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The Secretary concerned may defer the retirement 
     under subsection (a) of an officer who is appointed or 
     designated as a chaplain if the Secretary determines that 
     such deferral is in the best interest of the military 
     department concerned.''.
       (b) Authority for Deferral of Retirement for Chief and 
     Deputy Chief of Chaplains.--Such section is further amended 
     by adding at the end the following new subsection:
       ``(d) The Secretary concerned may defer the retirement 
     under subsection (a) of an officer who is the Chief of 
     Chaplains or Deputy Chief of Chaplains of that officer's 
     armed force. Such a deferment may not extend beyond the first 
     day of the month following the month in which the officer 
     becomes 68 years of age.''.
       (c) Qualification for Service as Navy Chief of Chaplains or 
     Deputy Chief of Chaplains.--(1) Section 5142(b) of such title 
     is amended by striking out ``, who are not on the retired 
     list,''.
       (2) Section 5142a of such title is amended by striking out 
     ``, who is not on the retired list,''.

[[Page H9105]]

     SEC. 505. INCREASE IN NUMBER OF OFFICERS ALLOWED TO BE 
                   FROCKED TO GRADES OF COLONEL AND NAVY CAPTAIN.

       Section 777(d)(2) of title 10, United States Code, is 
     amended by inserting after ``1 percent'' the following: ``, 
     or, for the grades of colonel and Navy captain, 2 percent,''.

     SEC. 506. INCREASED YEARS OF COMMISSIONED SERVICE FOR 
                   MANDATORY RETIREMENT OF REGULAR GENERALS AND 
                   ADMIRALS IN GRADES ABOVE MAJOR GENERAL AND REAR 
                   ADMIRAL.

       (a) Years of Service.--Section 636 of title 10, United 
     States Code, is amended--
       (1) by striking out ``Except as provided'' and inserting in 
     lieu thereof ``(a) Major Generals and Rear Admirals Serving 
     in Grade.--Except as provided in subsection (b) or (c) and''; 
     and
       (2) by adding at the end the following:
       ``(b) Lieutenant Generals and Vice Admirals.--In the 
     administration of subsection (a) in the case of an officer 
     who is serving in the grade of lieutenant general or vice 
     admiral, the number of years of active commissioned service 
     applicable to the officer is 38 years.
       ``(c) Generals and Admirals.--In the administration of 
     subsection (a) in the case of an officer who is serving in 
     the grade of general or admiral, the number of years of 
     active commissioned service applicable to the officer is 40 
     years.''.
       (b) Section Heading.--The heading of such section is 
     amended to read as follows:

     ``Sec. 636. Retirement for years of service: regular officers 
       in grades above brigadier general and rear admiral (lower 
       half)''.

       (c) Clerical Amendment.--The item relating to such section 
     in the table of sections at the beginning of subchapter III 
     of chapter 36 of such title is amended to read as follows:

``636. Retirement for years of service: regular officers in grades 
              above brigadier general and rear admiral (lower half).''.

     SEC. 507. UNIFORM POLICY FOR REQUIREMENT OF EXEMPLARY CONDUCT 
                   BY COMMANDING OFFICERS AND OTHERS IN AUTHORITY.

       (a) Army.--(1) Chapter 345 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 3583. Requirement of exemplary conduct

       ``All commanding officers and others in authority in the 
     Army are required--
       ``(1) to show in themselves a good example of virtue, 
     honor, patriotism, and subordination;
       ``(2) to be vigilant in inspecting the conduct of all 
     persons who are placed under their command;
       ``(3) to guard against and suppress all dissolute and 
     immoral practices, and to correct, according to the laws and 
     regulations of the Army, all persons who are guilty of them; 
     and
       ``(4) to take all necessary and proper measures, under the 
     laws, regulations, and customs of the Army, to promote and 
     safeguard the morale, the physical well-being, and the 
     general welfare of the officers and enlisted persons under 
     their command or charge.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``3583. Requirement of exemplary conduct.''.

       (b) Air Force.--(1) Chapter 845 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 8583. Requirement of exemplary conduct

       ``All commanding officers and others in authority in the 
     Air Force are required--
       ``(1) to show in themselves a good example of virtue, 
     honor, patriotism, and subordination;
       ``(2) to be vigilant in inspecting the conduct of all 
     persons who are placed under their command;
       ``(3) to guard against and suppress all dissolute and 
     immoral practices, and to correct, according to the laws and 
     regulations of the Air Force, all persons who are guilty 
     of them; and
       ``(4) to take all necessary and proper measures, under the 
     laws, regulations, and customs of the Air Force, to promote 
     and safeguard the morale, the physical well-being, and the 
     general welfare of the officers and enlisted persons under 
     their command or charge.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``8583. Requirement of exemplary conduct.''.

     SEC. 508. REPORT ON THE COMMAND SELECTION PROCESS FOR 
                   DISTRICT ENGINEERS OF THE ARMY CORPS OF 
                   ENGINEERS.

       Not later than March 31, 1998, the Secretary of the Army 
     shall submit to Congress a report on the command selection 
     process for officers serving as District Engineers of the 
     Corps of Engineers. The report shall include the following:
       (1) An identification of each major Corps of Engineers 
     project that--
       (A) is being carried out by each District Engineer as of 
     the date of the report; or
       (B) is being planned by each District Engineer to be 
     carried out during the five-year period beginning on the date 
     of the report.
       (2) The expected start and completion dates, during that 
     period, for each major phase of each project identified under 
     paragraph (1).
       (3) The expected dates for changes in the District Engineer 
     in each Corps of Engineers District during that period.
       (4) A plan for optimizing the timing of changes in the 
     District Engineer in each such District so that there is 
     minimal disruption to major phases of major Corps of 
     Engineers projects.
       (5) A review of the effect on the Corps of Engineers, and 
     on the mission of each District of the Corps of Engineers, of 
     allowing major command tours of District Engineers to be of 
     two-to-four years in duration, with the selection of the 
     exact timing of the change of command to be at the discretion 
     of the Chief of Engineers, who shall act with the goal of 
     optimizing the timing of each change so that it has minimal 
     disruption on the mission of the District Engineer.
                 Subtitle B--Reserve Component Matters

     SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AUTHORITY.

       (a) IRR Members Subject To Order to Active Duty Other Than 
     During War or National Emergency.--Section 10144 of title 10, 
     United States Code, is amended--
       (1) by inserting ``(a)'' before ``Within the Ready 
     Reserve''; and
       (2) by adding at the end the following new subsection:
       ``(b)(1) Within the Individual Ready Reserve of each 
     reserve component there is a category of members, as 
     designated by the Secretary concerned, who are subject to 
     being ordered to active duty involuntarily in accordance with 
     section 12304 of this title. A member may not be placed in 
     that mobilization category unless--
       ``(A) the member volunteers for that category; and
       ``(B) the member is selected for that category by the 
     Secretary concerned, based upon the needs of the service and 
     the grade and military skills of that member.
       ``(2) A member of the Individual Ready Reserve may not be 
     carried in such mobilization category of members after the 
     end of the 24-month period beginning on the date of the 
     separation of the member from active service.
       ``(3) The Secretary shall designate the grades and military 
     skills or specialities of members to be eligible for 
     placement in such mobilization category.
       ``(4) A member in such mobilization category shall be 
     eligible for benefits (other than pay and training) as are 
     normally available to members of the Selected Reserve, as 
     determined by the Secretary of Defense.''.
       (b) Criteria for Ordering to Active Duty.--Subsection (a) 
     of section 12304 of title 10, United States Code, is amended 
     by inserting after ``of this title),'' the following: ``or 
     any member in the Individual Ready Reserve mobilization 
     category and designated as essential under regulations 
     prescribed by the Secretary concerned,''.
       (c) Maximum Number.--Subsection (c) of such section is 
     amended--
       (1) by inserting ``and the Individual Ready Reserve'' after 
     ``Selected Reserve''; and
       (2) by inserting ``, of whom not more than 30,000 may be 
     members of the Individual Ready Reserve'' before the period 
     at the end.
       (d) Conforming Amendments.--Such section is further 
     amended--
       (1) in subsection (f), by inserting ``or Individual Ready 
     Reserve'' after ``Selected Reserve'';
       (2) in subsection (g), by inserting ``, or any member of 
     the Individual Ready Reserve,'' after ``to serve as a unit''; 
     and
       (3) by adding at the end the following new subsection:
       ``(i) For purposes of this section, the term `Individual 
     Ready Reserve mobilization category' means, in the case of 
     any reserve component, the category of the Individual Ready 
     Reserve described in section 10144(b) of this title.''.
       (e) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 12304. Selected Reserve and certain Individual Ready 
       Reserve members; order to active duty other than during war 
       or national emergency''.

       (2) The item relating to section 12304 in the table of 
     sections at the beginning of chapter 1209 of such title is 
     amended to read as follows:

``12304. Selected Reserve and certain Individual Ready Reserve members; 
              order to active duty other than during war or national 
              emergency.''.

     SEC. 512. TERMINATION OF MOBILIZATION INCOME INSURANCE 
                   PROGRAM.

       (a) In General.--Chapter 1214 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 12533. Termination of program

       ``(a) In General.--The Secretary shall terminate the 
     insurance program in accordance with this section.
       ``(b) Termination of New Enrollments.--The Secretary may 
     not enroll a member of the Ready Reserve for coverage under 
     the insurance program after the date of the enactment of this 
     section.
       ``(c) Termination of Coverage.--(1) The enrollment under 
     the insurance program of insured members other than insured 
     members described in paragraph (2) is terminated as of the 
     date of the enactment of this section. The enrollment of an 
     insured member described in paragraph (2) is terminated as of 
     the date of the termination of the period of covered service 
     of that member described in that paragraph.
       ``(2) An insured member described in this paragraph is an 
     insured member who on the date of the enactment of this 
     section is serving on covered service for a period of 
     service, or has been issued an order directing the 
     performance of covered service, that satisfies or would 
     satisfy the entitlement-to-benefits provisions of this 
     chapter.
       ``(d) Termination of Payment of Benefits.--The Secretary 
     may not make any benefit payment under the insurance program 
     after the date of the enactment of this section other than to 
     an insured member who on that date (1) is serving on an order 
     to covered service, (2) has been issued an order directing 
     performance of covered service, or (3) has served on covered 
     service before that date for which benefits under the program 
     have not been paid to the member.
       ``(e) Termination of Insurance Fund.--The Secretary shall 
     close the Fund not later than 60 days after the date on which 
     the last benefit

[[Page H9106]]

     payment from the Fund is made. Any amount remaining in the 
     Fund when closed shall be covered into the Treasury as 
     miscellaneous receipts.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``12533. Termination of program.''.

     SEC. 513. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE 
                   AND DEATH AND DISABILITY BENEFITS FOR RESERVE 
                   MEMBERS WHO INCUR OR AGGRAVATE AN ILLNESS IN 
                   THE LINE OF DUTY.

       (a) Medical and Dental Care for Members.--Section 1074a of 
     title 10, United States Code, is amended--
       (1) in subsection (a)(3), by inserting ``while remaining 
     overnight immediately before the commencement of inactive-
     duty training, or'' after ``in the line of duty''; and
       (2) by adding at the end the following new subsection:
       ``(e) A member of a uniformed service described in 
     paragraph (1)(A) or (2)(A) of subsection (a) whose orders are 
     modified or extended, while the member is being treated for 
     (or recovering from) the injury, illness, or disease incurred 
     or aggravated in the line of duty, so as to result in active 
     duty for a period of more than 30 days shall be entitled, 
     while the member remains on active duty, to medical and 
     dental care on the same basis and to the same extent as 
     members covered by section 1074(a) of this title.''.
       (b) Medical and Dental Care for Dependents.--Section 
     1076(a) of such title is amended by striking out paragraph 
     (2) and inserting in lieu thereof the following new 
     paragraph:
       ``(2) A dependent referred to in paragraph (1) is a 
     dependent of a member of a uniformed service described in one 
     of the following subparagraphs:
       ``(A) A member who is on active duty for a period of more 
     than 30 days or died while on that duty.
       ``(B) A member who died from an injury, illness, or disease 
     incurred or aggravated--
       ``(i) while the member was on active duty under a call or 
     order to active duty of 30 days or less, on active duty for 
     training, or on inactive-duty training; or
       ``(ii) while the member was traveling to or from the place 
     at which the member was to perform, or had performed, such 
     active duty, active duty for training, or inactive-duty 
     training.
       ``(C) A member who died from an injury, illness, or disease 
     incurred or aggravated in the line of duty while the member 
     remained overnight immediately before the commencement of 
     inactive-duty training, or while the member remained 
     overnight between successive periods of inactive-duty 
     training, at or in the vicinity of the site of the inactive-
     duty training, if the site was outside reasonable commuting 
     distance from the member's residence.
       ``(D) A member who incurred or aggravated an injury, 
     illness, or disease in the line of duty while serving on 
     active duty for a period of 30 days or less (or while 
     traveling to or from the place of such duty) and the member's 
     orders are modified or extended, while the member is being 
     treated for (or recovering from) the injury, illness, or 
     disease, so as to result in active duty for a period of more 
     than 30 days. However, this subparagraph entitles the 
     dependent to medical and dental care only while the member 
     remains on active duty.''.
       (c) Eligibility for Disability Retirement or Separation.--
     (1) Section 1204(2) of such title is amended to read as 
     follows:
       ``(2) the disability--
       ``(A) was incurred before September 24, 1996, as the 
     proximate result of--
       ``(i) performing active duty or inactive-duty training;
       ``(ii) traveling directly to or from the place at which 
     such duty is performed; or
       ``(iii) an injury, illness, or disease incurred or 
     aggravated while remaining overnight, immediately before the 
     commencement of inactive-duty training, or while remaining 
     overnight between successive periods of inactive-duty 
     training, at or in the vicinity of the site of the 
     inactive-duty training, if the site of the inactive-duty 
     training is outside reasonable commuting distance of the 
     member's residence; or
       ``(B) is a result of an injury, illness, or disease 
     incurred or aggravated in line of duty after September 23, 
     1996--
       ``(i) while performing active duty or inactive-duty 
     training;
       ``(ii) while traveling directly to or from the place at 
     which such duty is performed; or
       ``(iii) while remaining overnight, immediately before the 
     commencement of inactive-duty training, or while remaining 
     overnight between successive periods of inactive-duty 
     training, at or in the vicinity of the site of the inactive-
     duty training, if the site of the inactive-duty training is 
     outside reasonable commuting distance of the member's 
     residence;''.
       (2) Section 1206 of such title is amended--
       (A) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively, and
       (B) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) the disability is a result of an injury, illness, or 
     disease incurred or aggravated in line of duty while--
       ``(A) performing active duty or inactive-duty training;
       ``(B) traveling directly to or from the place at which such 
     duty is performed; or
       ``(C) while remaining overnight immediately before the 
     commencement of inactive-duty training, or while remaining 
     overnight between successive periods of inactive-duty 
     training, at or in the vicinity of the site of the inactive-
     duty training, if the site is outside reasonable commuting 
     distance of the member's residence;''.
       (d) Conforming Amendments and Related Clerical 
     Amendments.--(1) The heading of section 1204 of title 10, 
     United States Code, is amended to read as follows:

     ``Sec. 1204. Members on active duty for 30 days or less or on 
       inactive-duty training: retirement''.

       (2) The heading of section 1206 of such title is amended to 
     read as follows:

     ``Sec. 1206. Members on active duty for 30 days or less or on 
       inactive-duty training: separation''.

       (3) The table of sections at the beginning of chapter 61 of 
     such title is amended--
       (A) by striking out the item relating to section 1204 and 
     inserting in lieu thereof the following:

``1204. Members on active duty for 30 days or less or on inactive-duty 
              training: retirement.'';

     and
       (B) by striking out the item relating to section 1206 and 
     inserting in lieu thereof the following:

``1206. Members on active duty for 30 days or less or on inactive-duty 
              training: separation.''.

       (e) Recovery, Care, and Disposition of Remains.--Section 
     1481(a)(2)(D) of such title is amended by inserting 
     ``remaining overnight immediately before the commencement of 
     inactive-duty training, or'' after ``(D)''.
       (f) Entitlement to Basic Pay.--Section 204 of title 37, 
     United States Code, is amended by inserting ``while remaining 
     overnight immediately before the commencement of inactive-
     duty training, or'' in subsections (g)(1)(D) and (h)(1)(D) 
     after ``in line of duty''.
       (g) Compensation for Inactive-Duty Training.--Section 
     206(a)(3)(C) of title 37, United States Code, is amended by 
     inserting ``while remaining overnight immediately before the 
     commencement of inactive-duty training, or'' after ``in line 
     of duty''.

     SEC. 514. AUTHORITY TO PERMIT NON-UNIT ASSIGNED OFFICERS TO 
                   BE CONSIDERED BY VACANCY PROMOTION BOARD TO 
                   GENERAL OFFICER GRADES.

       (a) Convening of Selection Boards.--Section 14101(a)(2) of 
     title 10, United States Code, is amended by striking out 
     ``(except in the case of a board convened to consider 
     officers as provided in section 14301(e) of this title)''.
       (b) Eligibility for Consideration of Certain Army 
     Officers.--Section 14301 of such title is amended--
       (1) by striking out subsection (e); and
       (2) by redesignating subsections (f) and (g) as subsections 
     (e) and (f), respectively.
       (c) General Officer Promotions.--Section 14308 of such 
     title is amended--
       (1) in subsection (e)(2), by inserting ``a grade below 
     colonel in'' after ``(2) an officer in''; and
       (2) in subsection (g)--
       (A) by inserting ``or the Air Force'' in the first sentence 
     after ``of the Army'' the first place it appears;
       (B) by striking out ``in that grade'' in the first sentence 
     and all that follows through ``Secretary of the Army'' and 
     inserting in lieu thereof ``in the Army Reserve or the Air 
     Force Reserve, as the case may be, in that grade''; and
       (C) by striking out the second sentence.
       (d) Vacancy Promotions.--Section 14315(b)(1) of such title 
     is amended by striking out ``duties'' in clause (A) and all 
     that follows through ``as a unit,'' and inserting in lieu 
     thereof ``duties of a general officer of the next higher 
     reserve grade in the Army Reserve,''.

     SEC. 515. PROHIBITION ON USE OF AIR FORCE RESERVE AGR 
                   PERSONNEL FOR AIR FORCE BASE SECURITY 
                   FUNCTIONS.

       (a) In General.--Chapter 1215 of title 10, United States 
     Code, is amended by striking out

                       ``[No present sections]''

     and inserting in lieu thereof the following:

``Sec.
12551. Prohibition of use of Air Force Reserve AGR personnel for Air 
              Force base security functions.

     ``Sec. 12551. Prohibition of use of Air Force Reserve AGR 
       personnel for Air Force base security functions

       ``(a) Limitation.--The Secretary of the Air Force may not 
     use members of the Air Force Reserve who are AGR personnel 
     for the performance of force protection, base security, or 
     security police functions at an Air Force facility in the 
     United States.
       ``(b) AGR Personnel Defined.--In this section, the term 
     `AGR personnel' means members of the Air Force Reserve who 
     are on active duty (other than for training) in connection 
     with organizing, administering, recruiting, instructing, or 
     training the Air Force Reserve.''.
       (b) Clerical Amendment.--The items relating to chapter 1215 
     in the tables of chapters at the beginning of subtitle E, and 
     at the beginning of part II of subtitle E, are amended to 
     read as follows:
``1215. Miscellaneous Prohibitions and Penalties...........12551''.....

     SEC. 516. INVOLUNTARY SEPARATION OF RESERVE OFFICERS IN AN 
                   INACTIVE STATUS.

       (a) Authority for Involuntary Separation of Certain 
     Inactive Status Officers.--Section 12683(b) of title 10, 
     United States Code, is amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``apply--'' and inserting in lieu thereof ``apply to any of 
     the following:''; and
       (2) by adding at the end the following new paragraph:
       ``(4) a separation of an officer who is in an inactive 
     status in the Standby Reserve and who is not qualified for 
     transfer to the Retired Reserve or is qualified for transfer 
     to the Retired Reserve and does not apply for such a 
     transfer.''.
       (b) Stylistic Amendments.--Such section is further 
     amended--

[[Page H9107]]

       (1) in paragraphs (1), (2), and (3), by striking out ``to 
     a'' and inserting in lieu thereof ``A'';
       (2) by striking out the semicolon at the end of paragraph 
     (1) and inserting in lieu thereof a period; and
       (3) by striking out ``; and'' at the end of paragraph (2) 
     and inserting in lieu thereof a period.

     SEC. 517. FEDERAL STATUS OF SERVICE BY NATIONAL GUARD MEMBERS 
                   AS HONOR GUARDS AT FUNERALS OF VETERANS.

       (a) In General.--(1) Chapter 1 of title 32, United States 
     Code, is amended by adding after section 113, as added by 
     section 386(a), the following new section:

     ``Sec. 114. Honor guard functions at funerals for veterans

       ``(a) Subject to such regulations and restrictions as may 
     be prescribed by the Secretary concerned, the performance of 
     honor guard functions by members of the National Guard at 
     funerals for veterans of the armed forces may be treated by 
     the Secretary concerned as a Federal function for which 
     appropriated funds may be used. Any such performance of honor 
     guard functions at such a funeral may not be considered to be 
     a period of drill or training otherwise required.
       ``(b) This section does not authorize additional 
     appropriations for any fiscal year. Any expense of the 
     National Guard that is incurred by reason of this section 
     shall be paid from appropriations otherwise available for the 
     National Guard.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the item 
     relating to section 113, as added by section 386(b), the 
     following new item:

``114. Honor guard functions at funerals for veterans.''.
                    Subtitle C--Military Technicians

     SEC. 521. AUTHORITY TO RETAIN ON THE RESERVE ACTIVE-STATUS 
                   LIST UNTIL AGE 60 MILITARY TECHNICIANS IN THE 
                   GRADE OF BRIGADIER GENERAL.

       (a) Retention.--Section 14702(a) of title 10, United States 
     Code, is amended--
       (1) by striking out ``section 14506 or 14507'' and 
     inserting in lieu thereof ``section 14506, 14507, or 14508''; 
     and
       (2) by striking out ``or colonel'' and inserting in lieu 
     thereof ``colonel, or brigadier general''.
       (b) Technical Amendment.--Section 14508(c) of such title is 
     amended by striking out ``not later than the date on which 
     the officer becomes 60 years of age'' and inserting in lieu 
     thereof ``not later than the last day of the month in which 
     the officer becomes 60 years of age''.

     SEC. 522. MILITARY TECHNICIANS (DUAL STATUS).

       (a) Definition.--Subsection (a) of section 10216 of title 
     10, United States Code, is amended to read as follows:
       ``(a) In General.--(1) For purposes of this section and any 
     other provision of law, a military technician (dual status) 
     is a Federal civilian employee who--
       ``(A) is employed under section 3101 of title 5 or section 
     709 of title 32;
       ``(B) is required as a condition of that employment to 
     maintain membership in the Selected Reserve; and
       ``(C) is assigned to a position as a technician in the 
     administration and training of the Selected Reserve or in the 
     maintenance and repair of supplies or equipment issued to the 
     Selected Reserve or the armed forces.
       ``(2) Military technicians (dual status) shall be 
     authorized and accounted for as a separate category of 
     civilian employees.''.
       (b) Unit Membership and Dual Status Requirement.--Such 
     section is further amended by striking out subsection (d) and 
     inserting in lieu thereof the following:
       ``(d) Unit Membership Requirement.--(1) Unless specifically 
     exempted by law, each individual who is hired as a military 
     technician (dual status) after December 1, 1995, shall be 
     required as a condition of that employment to maintain 
     membership in--
       ``(A) the unit of the Selected Reserve by which the 
     individual is employed as a military technician; or
       ``(B) a unit of the Selected Reserve that the individual is 
     employed as a military technician to support.
       ``(2) Paragraph (1) does not apply to a military technician 
     (dual status) who is employed by the Army Reserve in an area 
     other than Army Reserve troop program units.
       ``(e) Dual Status Requirement.--(1) Funds appropriated for 
     the Department of Defense may not (except as provided in 
     paragraph (2)) be used for compensation as a military 
     technician of any individual hired as a military technician 
     after February 10, 1996, who is no longer a member of the 
     Selected Reserve.
       ``(2) The Secretary concerned may pay compensation 
     described in paragraph (1) to an individual described in that 
     paragraph who is no longer a member of the Selected Reserve 
     for a period not to exceed six months following the 
     individual's loss of membership in the Selected Reserve if 
     the Secretary determines that such loss of membership was not 
     due to the failure of that individual to meet military 
     standards.''.
       (c) National Guard Dual Status Requirement.--Section 709(b) 
     of title 32, United States Code, is amended by striking out 
     ``Except as prescribed by the Secretary concerned, a 
     technician'' and inserting in lieu thereof ``A technician''.
       (d) Plan for Clarification of Statutory Authority of 
     Military Technicians.--(1) The Secretary of Defense shall 
     submit to Congress, as part of the budget justification 
     materials submitted in support of the budget for the 
     Department of Defense for fiscal year 1999, a legislative 
     proposal to provide statutory authority and clarification 
     under title 5, United States Code--
       (A) for the hiring, management, promotion, separation, and 
     retirement of military technicians who are employed in 
     support of units of the Army Reserve or Air Force Reserve; 
     and
       (B) for the transition to the competitive service of an 
     individual who is hired as a military technician in support 
     of a unit of the Army Reserve or Air Force Reserve and who 
     (as determined by the Secretary concerned) fails to maintain 
     membership in the Selected Reserve through no fault of the 
     individual.
       (2) The legislative proposal under paragraph (1) shall be 
     developed in consultation with the Director of the Office of 
     Personnel Management.
       (e) Conforming Repeal.--Section 8016 of Public Law 104-61 
     (109 Stat. 654; 10 U.S.C. 10101 note) is repealed.
       (f) Cross-Reference Corrections.--Section 10216(c)(1) of 
     title 10, United States Code, is amended by striking out 
     ``subsection (a)(1)'' in subparagraphs (A), (B), (C), and (D) 
     and inserting in lieu thereof ``subsection (b)(1)''.
       (g) Conforming Amendments to Section 10216.--Section 10216 
     of title 10, United States Code, is further amended as 
     follows:
       (1) The heading of subsection (b) is amended by inserting 
     ``(Dual Status)'' after ``Military Technicians''.
       (2) Subsection (b)(1) is amended--
       (A) by inserting ``(dual status)'' after ``for military 
     technicians'';
       (B) by striking out ``dual status military technicians'' 
     and inserting in lieu thereof ``military technicians (dual 
     status)''; and
       (C) by inserting ``(dual status)'' after ``military 
     technicians'' in subparagraph (C).
       (3) Subsection (b)(2) is amended by inserting ``(dual 
     status)'' after ``military technicians'' both places it 
     appears.
       (4) Subsection (b)(3) is amended by inserting ``(dual 
     status)'' after ``Military technician''.
       (5) Subsection (c) is amended--
       (A) in the matter preceding paragraph (1)(A), by inserting 
     ``(dual status)'' after ``military technicians'';
       (B) in paragraph (1), by striking out ``dual-status 
     technicians'' in subparagraphs (A), (B), (C), and (D) and 
     inserting in lieu thereof ``military technicians (dual 
     status)'';
       (C) in paragraph (2)(A), by inserting ``(dual status)'' 
     after ``military technician''; and
       (D) in paragraph (2)(B), by striking out ``delineate--'' 
     and all that follows through ``or other reasons'' in clause 
     (ii) and inserting in lieu thereof ``delineate the specific 
     force structure reductions''.
       (h) Clerical Amendments.--(1) The heading of section 10216 
     of such title is amended to read as follows:

     ``Sec. 10216. Military technicians (dual status)''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 1007 of such title is 
     amended to read as follows:

``10216. Military technicians (dual status).''.
       (i) Other Conforming Amendments.--(1) Section 115(g) of 
     such title is amended by inserting ``(dual status)'' in the 
     first sentence after ``military technicians'' and in the 
     second sentence after ``military technician''.
       (2) Section 115a(h) of such title is amended--
       (A) by inserting ``(displayed in the aggregate and 
     separately for military technicians (dual status) and non-
     dual status military technicians)'' in the matter preceding 
     paragraph (1) after ``of the following''; and
       (B) by striking out paragraph (3).

     SEC. 523. NON-DUAL STATUS MILITARY TECHNICIANS.

       (a) In General.--(1) Chapter 1007 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 10217. Non-dual status military technicians

       ``(a) Definition.--For the purposes of this section and any 
     other provision of law, a non-dual status military technician 
     is a civilian employee of the Department of Defense serving 
     in a military technician position who--
       ``(1) was hired as a military technician before the date of 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 1998 under any of the authorities specified in 
     subsection (c); and
       ``(2) as of the date of the enactment of that Act is not a 
     member of the Selected Reserve or after such date ceased to 
     be a member of the Selected Reserve.
       ``(b) Employment Authorities.--The authorities referred to 
     in subsection (a) are the following:
       ``(1) Section 10216 of this title.
       ``(2) Section 709 of title 32.
       ``(3) The requirements referred to in section 8401 of title 
     5.
       ``(4) Section 8016 of the Department of Defense 
     Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 654), 
     and any comparable provision of law enacted on an annual 
     basis in the Department of Defense Appropriations Acts for 
     fiscal years 1984 through 1995.
       ``(5) Any memorandum of agreement between the Department of 
     Defense and the Office of Personnel Management providing for 
     the hiring of military technicians.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``10217. Non-dual status military technicians.''.

       (b) Limitation.--The number of civilian employees of a 
     military department who are non-dual status military 
     technicians as of September 30, 1998, may not exceed the 
     following:
       (1) For the Army Reserve, 1,500.
       (2) For the Army National Guard of the United States, 
     2,400.
       (3) For the Air Force Reserve, 0.
       (4) For the Air National Guard of the United States, 450.
       (c) Report Required.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     submit to Congress a report containing the number of military

[[Page H9108]]

     technician positions that are held by non-dual status 
     military technicians as of September 30, 1997, shown 
     separately for each of the following:
       (1) The Army Reserve.
       (2) The Army National Guard of the United States.
       (3) The Air Force Reserve.
       (4) The Air National Guard of the United States.
       (d) Plan for Full Utilization of Military Technicians (Dual 
     Status).--(1) Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to Congress a plan for ensuring that, on and after September 
     30, 2007, all military technician positions are held only by 
     military technicians (dual status).
       (2) The plan shall provide for achieving, by September 30, 
     2002, a 50 percent reduction, by conversion of positions or 
     otherwise, in the number of non-dual status military 
     technicians that are holding military technicians positions, 
     as compared with the number of non-dual status technicians 
     that held military technician positions as of September 30, 
     1997, as specified in the report under subsection (c).
       (3) Among the alternative actions to be considered in 
     developing the plan, the Secretary shall consider the 
     feasibility and cost of each of the following:
       (A) Eliminating or consolidating technician functions and 
     positions.
       (B) Contracting with private sector sources for the 
     performance of functions performed by military technicians.
       (C) Converting non-dual status military technician 
     positions to military technician (dual status) positions or 
     to positions in the competitive service or, in the case of 
     positions of the Army National Guard of the United States or 
     the Air National Guard of the United States, to positions of 
     State employment.
       (D) Use of incentives to facilitate attainment of the 
     objectives specified for the plan in paragraphs (1) and (2).
       (4) The Secretary shall submit with the plan any 
     recommendations for legislation that the Secretary considers 
     necessary to carry out the plan.
       (e) Definitions for Categories of Military Technicians.--In 
     this section:
       (1) The term ``non-dual status military technician'' has 
     the meaning given that term in section 10217 of title 10, 
     United States Code, as added by subsection (a).
       (2) The term ``military technician (dual status)'' has the 
     meaning given the term in section 10216(a) of such title.

     SEC. 524. REPORT ON FEASIBILITY AND DESIRABILITY OF 
                   CONVERSION OF AGR PERSONNEL TO MILITARY 
                   TECHNICIANS (DUAL STATUS).

       (a) Report Required.--Not later than January 1, 1998, the 
     Secretary of Defense shall submit to Congress a report on the 
     feasibility and desirability of conversion of AGR personnel 
     to military technicians (dual status). The report shall--
       (1) identify advantages and disadvantages of such a 
     conversion;
       (2) identify possible savings if such a conversion were to 
     be carried out; and
       (3) set forth the recommendation of the Secretary as to 
     whether such a conversion should be made.
       (b) AGR Personnel Defined.--For purposes of subsection (a), 
     the term ``AGR personnel'' means members of the Army or Air 
     Force reserve components who are on active duty (other than 
     for training) in connection with organizing, administering, 
     recruiting, instructing, or training their respective reserve 
     components.
  Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                               Attrition

     SEC. 531. REFORM OF MILITARY RECRUITING SYSTEMS.

       (a) In General.--The Secretary of Defense shall carry out 
     reforms in the recruiting systems of the Army, Navy, Air 
     Force, and Marine Corps in order to improve the quality of 
     new recruits and to reduce attrition among recruits.
       (b) Specific Reforms.--As part of the reforms in military 
     recruiting systems to be undertaken under subsection (a), the 
     Secretary shall take the following steps:
       (1) Improve the system of pre-enlistment waivers and 
     separation codes used for recruits by (A) revising and 
     updating those waivers and codes to allow more accurate and 
     useful data collection about those separations, and (B) 
     prescribing regulations to ensure that those waivers and 
     codes are interpreted in a uniform manner by the military 
     services.
       (2) Develop a reliable database for (A) analyzing (at both 
     the Department of Defense and service-level) data on reasons 
     for attrition of new recruits, and (B) undertaking Department 
     of Defense or service-specific measures (or both) to control 
     and manage such attrition.
       (3) Require that the Secretary of each military department 
     (A) adopt or strengthen incentives for recruiters to 
     thoroughly prescreen potential candidates for recruitment, 
     and (B) link incentives for recruiters, in part, to the 
     ability of a recruiter to screen out unqualified candidates 
     before enlistment.
       (4) Require that the Secretary of each military department 
     include as a measurement of recruiter performance the 
     percentage of persons enlisted by a recruiter who complete 
     initial combat training or basic training.
       (5) Assess trends in the number and use of waivers over the 
     1991-1997 period that were issued to permit applicants to 
     enlist with medical or other conditions that would 
     otherwise be disqualifying.
       (6) Require the Secretary of each military department to 
     implement policies and procedures (A) to ensure the prompt 
     separation of recruits who are unable to successfully 
     complete basic training, and (B) to remove those recruits 
     from the training environment while separation proceedings 
     are pending.
       (c) Report.--Not later than March 31, 1998, the Secretary 
     shall submit to Congress a report of the trends assessed 
     under subsection (b)(5). The information on those trends 
     provided in the report shall be shown by armed force and by 
     category of waiver. The report shall include recommendations 
     of the Secretary for changing, revising, or limiting the use 
     of waivers referred to in that subsection.

     SEC. 532. IMPROVEMENTS IN MEDICAL PRESCREENING OF APPLICANTS 
                   FOR MILITARY SERVICE.

       (a) In General.--The Secretary of Defense shall improve the 
     medical prescreening of applicants for entrance into the 
     Army, Navy, Air Force, or Marine Corps.
       (b) Specific Steps.--As part of those improvements, the 
     Secretary shall take the following steps:
       (1) Require that each applicant for service in the Army, 
     Navy, Air Force, or Marine Corps (A) provide to the Secretary 
     the name of the applicant's medical insurer and the names of 
     past medical providers, and (B) sign a release allowing the 
     Secretary to request and obtain medical records of the 
     applicant.
       (2) Require that the forms and procedures for medical 
     prescreening of applicants that are used by recruiters and by 
     Military Entrance Processing Commands be revised so as to 
     ensure that medical questions are specific, unambiguous, and 
     tied directly to the types of medical separations most common 
     for recruits during basic training and follow-on training.
       (3) Add medical screening tests to the examinations of 
     recruits carried out by Military Entrance Processing 
     Stations, provide more thorough medical examinations to 
     selected groups of applicants, or both, to the extent that 
     the Secretary determines that to do so could be cost 
     effective in reducing attrition at basic training.
       (4) Provide for an annual quality control assessment of the 
     effectiveness of the Military Entrance Processing Commands in 
     identifying medical conditions in recruits that existed 
     before enlistment in the Armed Forces, each such assessment 
     to be performed by an agency or contractor other than the 
     Military Entrance Processing Commands.

     SEC. 533. IMPROVEMENTS IN PHYSICAL FITNESS OF RECRUITS.

       (a) In General.--The Secretary of Defense shall take steps 
     to improve the physical fitness of recruits before they enter 
     basic training.
       (b) Specific Steps.--As part of those improvements, the 
     Secretary shall take the following steps:
       (1) Direct the Secretary of each military department to 
     implement programs under which new recruits who are in the 
     Delayed Entry Program are encouraged to participate in 
     physical fitness activities before reporting to basic 
     training.
       (2) Develop a range of incentives for new recruits to 
     participate in physical fitness programs, as well as for 
     those recruits who improve their level of fitness while in 
     the Delayed Entry Program, which may include access to 
     Department of Defense military fitness facilities, and access 
     to military medical facilities in the case of a recruit who 
     is injured while participating in physical activities with 
     recruiters or other military personnel.
       (3) Evaluate whether partnerships between recruiters and 
     reserve components, or other innovative arrangements, could 
     provide a pool of qualified personnel to assist in the 
     conduct of physical training programs for new recruits in the 
     Delayed Entry Program.
              Subtitle E--Military Education and Training

                   PART I--OFFICER EDUCATION PROGRAMS

     SEC. 541. REQUIREMENT FOR CANDIDATES FOR ADMISSION TO UNITED 
                   STATES NAVAL ACADEMY TO TAKE OATH OF 
                   ALLEGIANCE.

       (a) Requirement.--Section 6958 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(d) To be admitted to the Naval Academy, an appointee 
     must take and subscribe to an oath prescribed by the 
     Secretary of the Navy. If a candidate for admission refuses 
     to take and subscribe to the prescribed oath, the candidate's 
     appointment is terminated.''.
       (b) Exception for Midshipmen From Foreign Countries.--
     Section 6957 of such title is amended by adding at the end 
     the following new subsection:
       ``(d) A person receiving instruction under this section is 
     not subject to section 6958(d) of this title.''.

     SEC. 542. SERVICE ACADEMY FOREIGN EXCHANGE PROGRAM.

       (a) United States Military Academy.--(1) Chapter 403 of 
     title 10, United States Code, is amended by inserting after 
     section 4344 the following new section:

     ``Sec. 4345. Exchange program with foreign military academies

       ``(a) Exchange Program Authorized.--The Secretary of the 
     Army may permit a student enrolled at a military academy of a 
     foreign country to receive instruction at the Academy in 
     exchange for a cadet receiving instruction at that foreign 
     military academy pursuant to an exchange agreement entered 
     into between the Secretary and appropriate officials of the 
     foreign country. Students receiving instruction at the 
     Academy under the exchange program shall be in addition to 
     persons receiving instruction at the Academy under section 
     4344 of this title.
       ``(b) Limitations on Number and Duration of Exchanges.--An 
     exchange agreement under this section between the Secretary 
     and a foreign country shall provide for the exchange of 
     students on a one-for-one basis each fiscal year. Not more 
     than 10 cadets and a comparable number of students from all 
     foreign military academies participating in the exchange 
     program

[[Page H9109]]

     may be exchanged during any fiscal year. The duration of an 
     exchange may not exceed the equivalent of one academic 
     semester at the Academy.
       ``(c) Costs and Expenses.--(1) A student from a military 
     academy of a foreign country is not entitled to the pay, 
     allowances, and emoluments of a cadet by reason of attendance 
     at the Academy under the exchange program, and the Department 
     of Defense may not incur any cost of international travel 
     required for transportation of such a student to and from the 
     sponsoring foreign country.
       ``(2) The Secretary may provide a student from a foreign 
     country under the exchange program, during the period of the 
     exchange, with subsistence, transportation within the 
     continental United States, clothing, health care, and other 
     services to the same extent that the foreign country provides 
     comparable support and services to the exchanged cadet in 
     that foreign country.
       ``(3) The Academy shall bear all costs of the exchange 
     program from funds appropriated for the Academy. Expenditures 
     in support of the exchange program may not exceed $50,000 
     during any fiscal year.
       ``(d) Application of Other Laws.--Subsections (c) and (d) 
     of section 4344 of this title shall apply with respect to a 
     student enrolled at a military academy of a foreign country 
     while attending the Academy under the exchange program.
       ``(e) Regulations.--The Secretary shall prescribe 
     regulations to implement this section. Such regulations may 
     include qualification criteria and methods of selection for 
     students of foreign military academies to participate in the 
     exchange program.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     4344 the following new item:

``4345. Exchange program with foreign military academies.''.

       (b) Naval Academy.--(1) Chapter 603 of title 10, United 
     States Code, is amended by inserting after section 6957 the 
     following new section:

     ``Sec. 6957a. Exchange program with foreign military 
       academies

       ``(a) Exchange Program Authorized.--The Secretary of the 
     Navy may permit a student enrolled at a military academy of a 
     foreign country to receive instruction at the Naval Academy 
     in exchange for a midshipman receiving instruction at that 
     foreign military academy pursuant to an exchange agreement 
     entered into between the Secretary and appropriate officials 
     of the foreign country. Students receiving instruction at the 
     Naval Academy under the exchange program shall be in addition 
     to persons receiving instruction at the Academy under section 
     6957 of this title.
       ``(b) Limitations on Number and Duration of Exchanges.--An 
     exchange agreement under this section between the Secretary 
     and a foreign country shall provide for the exchange of 
     students on a one-for-one basis each fiscal year. Not more 
     than 10 midshipmen and a comparable number of students from 
     all foreign military academies participating in the exchange 
     program may be exchanged during any fiscal year. The duration 
     of an exchange may not exceed the equivalent of one academic 
     semester at the Naval Academy.
       ``(c) Costs and Expenses.--(1) A student from a military 
     academy of a foreign country is not entitled to the pay, 
     allowances, and emoluments of a midshipman by reason of 
     attendance at the Naval Academy under the exchange program, 
     and the Department of Defense may not incur any cost of 
     international travel required for transportation of such a 
     student to and from the sponsoring foreign country.
       ``(2) The Secretary may provide a student from a foreign 
     country under the exchange program, during the period of the 
     exchange, with subsistence, transportation within the 
     continental United States, clothing, health care, and other 
     services to the same extent that the foreign country provides 
     comparable support and services to the exchanged midshipman 
     in that foreign country.
       ``(3) The Naval Academy shall bear all costs of the 
     exchange program from funds appropriated for the Academy. 
     Expenditures in support of the exchange program may not 
     exceed $50,000 during any fiscal year.
       ``(d) Application of Other Laws.--Subsections (c) and (d) 
     of section 6957 of this title shall apply with respect to a 
     student enrolled at a military academy of a foreign country 
     while attending the Naval Academy under the exchange program.
       ``(e) Regulations.--The Secretary shall prescribe 
     regulations to implement this section. Such regulations may 
     include qualification criteria and methods of selection for 
     students of foreign military academies to participate in the 
     exchange program.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     6957 the following new item:

``6957a. Exchange program with foreign military academies.''.

       (c) Air Force Academy.--(1) Chapter 903 of title 10, United 
     States Code, is amended by inserting after section 9344 the 
     following new section:

     ``Sec. 9345. Exchange program with foreign military academies

       ``(a) Exchange Program Authorized.--The Secretary of the 
     Air Force may permit a student enrolled at a military academy 
     of a foreign country to receive instruction at the Air Force 
     Academy in exchange for an Air Force cadet receiving 
     instruction at that foreign military academy pursuant to an 
     exchange agreement entered into between the Secretary and 
     appropriate officials of the foreign country. Students 
     receiving instruction at the Academy under the exchange 
     program shall be in addition to persons receiving instruction 
     at the Academy under section 9344 of this title.
       ``(b) Limitations on Number and Duration of Exchanges.--An 
     exchange agreement under this section between the Secretary 
     and a foreign country shall provide for the exchange of 
     students on a one-for-one basis each fiscal year. Not more 
     than 10 Air Force cadets and a comparable number of students 
     from all foreign military academies participating in the 
     exchange program may be exchanged during any fiscal year. The 
     duration of an exchange may not exceed the equivalent of one 
     academic semester at the Air Force Academy.
       ``(c) Costs and Expenses.--(1) A student from a military 
     academy of a foreign country is not entitled to the pay, 
     allowances, and emoluments of an Air Force cadet by reason of 
     attendance at the Air Force Academy under the exchange 
     program, and the Department of Defense may not incur any cost 
     of international travel required for transportation of such a 
     student to and from the sponsoring foreign country.
       ``(2) The Secretary may provide a student from a foreign 
     country under the exchange program, during the period of the 
     exchange, with subsistence, transportation within the 
     continental United States, clothing, health care, and other 
     services to the same extent that the foreign country provides 
     comparable support and services to the exchanged Air Force 
     cadet in that foreign country.
       ``(3) The Air Force Academy shall bear all costs of the 
     exchange program from funds appropriated for the Academy. 
     Expenditures in support of the exchange program may not 
     exceed $50,000 during any fiscal year.
       ``(d) Application of Other Laws.--Subsections (c) and (d) 
     of section 9344 of this title shall apply with respect to a 
     student enrolled at a military academy of a foreign country 
     while attending the Air Force Academy under the exchange 
     program.
       ``(e) Regulations.--The Secretary shall prescribe 
     regulations to implement this section. Such regulations may 
     include qualification criteria and methods of selection for 
     students of foreign military academies to participate in the 
     exchange program.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     9344 the following new item:

``9345. Exchange program with foreign military academies.''.

       (d) Repeal of Obsolete Limitation.--Section 9353(a) of such 
     title is amended by striking out ``After the date of the 
     accrediting of the Academy, the'' and inserting in lieu 
     thereof ``The''.

     SEC. 543. REIMBURSEMENT OF EXPENSES INCURRED FOR INSTRUCTION 
                   AT SERVICE ACADEMIES OF PERSONS FROM FOREIGN 
                   COUNTRIES.

       (a) United States Military Academy.--Section 4344(b) of 
     title 10, United States Code, is amended--
       (1) in paragraph (2), by striking out the period at the end 
     and inserting in lieu thereof the following: ``, except that 
     the reimbursement rates may not be less than the cost to the 
     United States of providing such instruction, including pay, 
     allowances, and emoluments, to a cadet appointed from the 
     United States.''; and
       (2) by adding at the end the following new paragraph:
       ``(3) The amount of reimbursement waived under paragraph 
     (2) may not exceed 35 percent of the per-person reimbursement 
     amount otherwise required to be paid by a foreign country 
     under such paragraph, except in the case of not more than 
     five persons receiving instruction at the Academy under this 
     section at any one time.''.
       (b) Naval Academy.--Section 6957(b) of such title is 
     amended--
       (1) in paragraph (2), by striking out the period at the end 
     and inserting in lieu thereof the following: ``, except that 
     the reimbursement rates may not be less than the cost to the 
     United States of providing such instruction, including pay, 
     allowances, and emoluments, to a midshipman appointed from 
     the United States.''; and
       (2) by adding at the end the following new paragraph:
       ``(3) The amount of reimbursement waived under paragraph 
     (2) may not exceed 35 percent of the per-person reimbursement 
     amount otherwise required to be paid by a foreign country 
     under such paragraph, except in the case of not more than 
     five persons receiving instruction at the Naval Academy under 
     this section at any one time.''.
       (c) Air Force Academy.--Section 9344(b) of such title is 
     amended--
       (1) in paragraph (2), by striking out the period at the end 
     and inserting in lieu thereof the following: ``, except that 
     the reimbursement rates may not be less than the cost to the 
     United States of providing such instruction, including pay, 
     allowances, and emoluments, to a cadet appointed from the 
     United States.''; and
       (2) by adding at the end the following new paragraph:
       ``(3) The amount of reimbursement waived under paragraph 
     (2) may not exceed 35 percent of the per-person reimbursement 
     amount otherwise required to be paid by a foreign country 
     under such paragraph, except in the case of not more than 
     five persons receiving instruction at the Academy under this 
     section at any one time.''.
       (d) Effective Date.--The amendments made by this section 
     apply with respect to students from a foreign country 
     entering the United States Military Academy, the United 
     States Naval Academy, or the United States Air Force Academy 
     on or after May 1, 1998.

[[Page H9110]]

     SEC. 544. CONTINUATION OF SUPPORT TO SENIOR MILITARY 
                   COLLEGES.

       (a) Definition of Senior Military Colleges.--For purposes 
     of this section, the term ``senior military colleges'' means 
     the following:
       (1) Texas A&M University.
       (2) Norwich University.
       (3) The Virginia Military Institute.
       (4) The Citadel.
       (5) Virginia Polytechnic Institute and State University.
       (6) North Georgia College and State University.
       (b) Findings.--Congress finds the following:
       (1) The senior military colleges consistently have provided 
     substantial numbers of highly qualified, long-serving leaders 
     to the Armed Forces.
       (2) The quality of the military leaders produced by the 
     senior military colleges is, in part, the result of the 
     rigorous military environment imposed on students attending 
     the senior military colleges by the colleges, as well as the 
     result of the long-standing close support relationship 
     between the Corps of Cadets at each college and the Reserve 
     Officer Training Corps personnel at the colleges who serve as 
     effective leadership role models and mentors.
       (3) In recognition of the quality of the young leaders 
     produced by the senior military colleges, the Department of 
     Defense and the military services have traditionally 
     maintained special relationships with the colleges, including 
     the policy to grant active duty service in the Army to 
     graduates of the colleges who desire such service and who are 
     recommended for such service by their ROTC professors of 
     military science.
       (4) Each of the senior military colleges has demonstrated 
     an ability to adapt its systems and operations to changing 
     conditions in, and requirements of, the Armed Forces without 
     compromising the quality of leaders produced and without 
     interruption of the close relationship between the colleges 
     and the Department of Defense.
       (c) Sense of Congress.--In light of the findings in 
     subsection (b), it is the sense of Congress that--
       (1) the proposed initiative of the Secretary of the Army to 
     end the commitment to active duty service for all graduates 
     of senior military colleges who desire such service and who 
     are recommended for such service by their ROTC professors of 
     military science is short-sighted and contrary to the long-
     term interests of the Army;
       (2) as they have in the past, the senior military colleges 
     can and will continue to accommodate to changing military 
     requirements to ensure that future graduates entering 
     military service continue to be officers of superb quality 
     who are quickly assimilated by the Armed Forces and fully 
     prepared to make significant contributions to the Armed 
     Forces through extended military careers; and
       (3) decisions of the Secretary of Defense or the Secretary 
     of a military department that fundamentally and unilaterally 
     change the long-standing relationship of the Armed Forces 
     with the senior military colleges are not in the best 
     interests of the Department of Defense or the Armed Forces 
     and are patently unfair to students who made decisions to 
     enroll in the senior military colleges on the basis of 
     existing Department and Armed Forces policy.
       (d) Continuation of Support for Senior Military Colleges.--
     Section 2111a of title 10, United States Code, is amended--
       (1) by redesignating subsection (d) as subsection (f); and
       (2) by inserting after subsection (c) the following new 
     subsections:
       ``(d) Termination or Reduction of Program Prohibited.--The 
     Secretary of Defense and the Secretaries of the military 
     departments may not take or authorize any action to terminate 
     or reduce a unit of the Senior Reserve Officers' Training 
     Corps at a senior military college unless the termination or 
     reduction is specifically requested by the college.
       ``(e) Assignment to Active Duty.--(1) The Secretary of the 
     Army shall ensure that a graduate of a senior military 
     college who desires to serve as a commissioned officer on 
     active duty upon graduation from the college, who is 
     medically and physically qualified for active duty, and who 
     is recommended for such duty by the professor of military 
     science at the college, shall be assigned to active duty. 
     This paragraph shall apply to a member of the program at a 
     senior military college who graduates from the college 
     after March 31, 1997.
       ``(2) Nothing in this section shall be construed to 
     prohibit the Secretary of the Army from requiring a member of 
     the program who graduates from a senior military college to 
     serve on active duty.''.
       (e) Technical Corrections.--Subsection (f) of such section, 
     as redesignated by subsection (d)(1), is amended--
       (1) in paragraph (2), by striking out ``College'' and 
     inserting in lieu thereof ``University''; and
       (2) in paragraph (6), by inserting before the period the 
     following: ``and State University''.
       (f) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 2111a. Support for senior military colleges''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 103 of title 10, United 
     States Code, is amended to read as follows:

``2111a. Support for senior military colleges.''.

     SEC. 545. REPORT ON MAKING UNITED STATES NATIONALS ELIGIBLE 
                   FOR PARTICIPATION IN SENIOR RESERVE OFFICERS' 
                   TRAINING CORPS.

       (a) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the Committee on National Security of the House of 
     Representatives and the Committee on Armed Services of the 
     Senate a report on the utility of permitting United States 
     nationals to participate in the Senior Reserve Officers' 
     Training Corps program.
       (b) Required Information.--The Secretary shall include in 
     the report the following information:
       (1) A brief history of the prior admission of United States 
     nationals to the Senior Reserve Officers' Training Corps, 
     including the success rate of these cadets and midshipmen and 
     how that rate compared to the average success rate of cadets 
     and midshipmen during that same period.
       (2) The advantages of permitting United States nationals to 
     participate in the Senior Reserve Officers' Training Corps 
     program.
       (3) The disadvantages of permitting United States nationals 
     to participate in the Senior Reserve Officers' Training Corps 
     program.
       (4) The incremental cost of including United States 
     nationals in the Senior Reserve Officers' Training Corps.
       (5) Methods of minimizing the risk that United States 
     nationals admitted to the Senior Reserve Officers' Training 
     Corps would be later disqualified because of ineligibility 
     for United States citizenship.
       (6) The recommendations of the Secretary on whether United 
     States nationals should be eligible to participate in the 
     Senior Reserve Officers' Training Corps program, and if so, a 
     legislative proposal which would, if enacted, achieve that 
     result.

     SEC. 546. COORDINATION OF ESTABLISHMENT AND MAINTENANCE OF 
                   JUNIOR RESERVE OFFICERS' TRAINING CORPS UNITS 
                   TO MAXIMIZE ENROLLMENT AND ENHANCE EFFICIENCY.

       (a) Requirement.--Chapter 102 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2032. Responsibility of the Secretaries of the 
       military departments to maximize enrollment and enhance 
       efficiency

       ``(a) Coordination.--The Secretary of each military 
     department, in establishing, maintaining, transferring, and 
     terminating Junior Reserve Officers' Training Corps units 
     under section 2031 of this title, shall do so in a 
     coordinated manner that is designed to maximize enrollment in 
     the Corps and to enhance administrative efficiency in the 
     management of the Corps.
       ``(b) Consideration of New School Openings and 
     Consolidations.--In carrying out subsection (a), the 
     Secretary of a military department shall take into 
     consideration--
       ``(1) openings of new schools;
       ``(2) consolidations of schools; and
       ``(3) the desirability of continuing the opportunity for 
     participation in the Corps by participants whose continued 
     participation would otherwise be adversely affected by new 
     school openings and consolidations of schools.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2032. Responsibility of the Secretaries of the military departments 
              to maximize enrollment and enhance efficiency.''.

                    PART II--OTHER EDUCATION MATTERS

     SEC. 551. UNITED STATES NAVAL POSTGRADUATE SCHOOL.

       (a) Authority to Admit Enlisted Members as Students.--
     Section 7045 of title 10, United States Code, is amended--
       (1) in subsection (a)--
       (A) by inserting ``(1)'' after ``(a)''; and
       (B) by adding at the end the following new paragraph:
       ``(2) The Secretary may permit an enlisted member of the 
     armed forces who is assigned to the Naval Postgraduate School 
     or to a nearby command to receive instruction at the Naval 
     Postgraduate School. Admission of enlisted members for 
     instruction under this paragraph shall be on a space-
     available basis.'';
       (2) in subsection (b)--
       (A) by striking out ``the students'' and inserting in lieu 
     thereof ``officers''; and
       (B) by adding at the end the following new sentence: ``In 
     the case of an enlisted member permitted to receive 
     instruction at the Postgraduate School, the Secretary of the 
     Navy shall charge that member only for such costs and fees as 
     the Secretary considers appropriate (taking into 
     consideration the admission of enlisted members on a space-
     available basis).''; and
       (3) in subsection (c)--
       (A) by striking out ``officers'' both places it appears and 
     inserting in lieu thereof ``members''; and
       (B) by striking out ``same regulations'' and inserting in 
     lieu thereof ``such regulations, as determined appropriate by 
     the Secretary of the Navy,''.
       (b) Clerical Amendments.--(1) The heading of section 7045 
     of such title is amended to read as follows:

     ``Sec. 7045. Officers of the other armed forces; enlisted 
       members: admission''.

       (2) The item relating to section 7045 in the table of 
     sections at the beginning of chapter 605 of such title is 
     amended to read as follows:

``7045. Officers of the other armed forces; enlisted members: 
              admission.''.

       (c) Amendment To Reflect Revised Civil Service Grade 
     Structure.--Section 7043(b) of such title is amended by 
     striking out ``grade GS-18 of the General Schedule under 
     section 5332 of title 5'' and inserting in lieu thereof 
     ``level IV of the Executive Schedule''.

     SEC. 552. COMMUNITY COLLEGE OF THE AIR FORCE.

       (a) Expansion of Members Eligible for Program To Include 
     Instructors at Air Force Training Schools.--Section 9315 of 
     title 10, United States Code, is amended--
       (1) in subsection (a)(1), by striking out ``enlisted 
     members of the Air Force'' and inserting in lieu thereof 
     ``enlisted members described in subsection (b)'';

[[Page H9111]]

       (2) by striking out ``(b) Subject to subsection (c),'' and 
     inserting in lieu thereof ``(c)(1) Subject to paragraph 
     (2),'';
       (3) by redesignating subsection (c) as paragraph (2) and in 
     that paragraph redesignating clauses (1) and (2) as clauses 
     (A) and (B), respectively; and
       (4) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Members Eligible for Programs.--Subject to such other 
     eligibility requirements as the Secretary concerned may 
     prescribe, the following members of the armed forces are 
     eligible to participate in programs of higher education under 
     subsection (a)(1):
       ``(1) Enlisted members of the Air Force.
       ``(2) Enlisted members of the armed forces other than the 
     Air Force who are serving as instructors at Air Force 
     training schools.''.
       (b) Clerical Amendments.--Such section is further amended--
       (1) in subsection (a), by inserting ``Establishment and 
     Mission.--'' after ``(a)''; and
       (2) in subsection (c), as redesignated by subsection 
     (a)(2), by inserting ``Conferral of Degrees.--'' after 
     ``(c)''.
       (c) Effective Date.--Subsection (b) of section 9315 of such 
     title, as added by subsection (a)(4), applies with respect to 
     enrollments in the Community College of the Air Force after 
     March 31, 1996.

     SEC. 553. PRESERVATION OF ENTITLEMENT TO EDUCATIONAL 
                   ASSISTANCE OF MEMBERS OF THE SELECTED RESERVE 
                   SERVING ON ACTIVE DUTY IN SUPPORT OF A 
                   CONTINGENCY OPERATION.

       (a) Preservation of Educational Assistance.--Section 
     16131(c)(3)(B)(i) of title 10, United States Code, is amended 
     by striking out ``, in connection with the Persian Gulf 
     War,''.
       (b) Extension of 10-Year Period of Availability.--Section 
     16133(b)(4) of such title is amended--
       (1) by striking out ``(A)'';
       (2) by striking out ``, during the Persian Gulf War,'';
       (3) by redesignating clauses (i) and (ii) as subparagraphs 
     (A) and (B), respectively; and
       (4) by striking out ``(B) For the purposes'' and all that 
     follows through ``title 38.''.

               PART III--TRAINING OF ARMY DRILL SERGEANTS

     SEC. 556. REFORM OF ARMY DRILL SERGEANT SELECTION AND 
                   TRAINING PROCESS.

       (a) In General.--The Secretary of the Army shall reform the 
     process for selection and training of drill sergeants for the 
     Army.
       (b) Measures To Be Taken.--As part of such reform, the 
     Secretary shall undertake the following measures (unless, in 
     the case of any such measure, the Secretary determines that 
     that measure would not result in improved effectiveness and 
     efficiency in the drill sergeant selection and training 
     process):
       (1) Review the overall process used by the Department of 
     the Army for selection of drill sergeants to determine--
       (A) whether that process is providing drill sergeant 
     candidates in sufficient quantity and quality to meet the 
     needs of the training system; and
       (B) whether duty as a drill sergeant is a career-enhancing 
     assignment (or is seen by potential drill sergeant candidates 
     as a career-enhancing assignment) and what steps could be 
     taken to ensure that such duty is in fact a career-enhancing 
     assignment.
       (2) Incorporate into the selection process for all drill 
     sergeants the views and recommendations of the officers and 
     senior noncommissioned officers in the chain of command of 
     each candidate for selection (particularly those of senior 
     noncommissioned officers) regarding the candidate's 
     suitability and qualifications to be a drill sergeant.
       (3) Establish a requirement for psychological screening for 
     each drill sergeant candidate.
       (4) Reform the psychological screening process for drill 
     sergeant candidates to improve the quality, depth, and rigor 
     of that screening process.
       (5) Revise the evaluation system for drill sergeants in 
     training to provide for a so-called ``whole person'' 
     assessment that gives insight into the qualifications and 
     suitability of a drill sergeant candidate beyond the 
     candidate's ability to accomplish required performance tasks.
       (6) Revise the Army military personnel records system so 
     that, under conditions and circumstances to be specified in 
     regulations prescribed by the Secretary, a drill sergeant 
     trainee who fails to complete the training to be a drill 
     sergeant and is denied graduation will not have the fact of 
     that failure recorded in those personnel records.
       (7) Provide each drill sergeant in training with the 
     opportunity, before or during that training, to work with new 
     recruits in initial entry training and to be evaluated on 
     that opportunity.
       (c) Report.--Not later than March 31, 1998, the Secretary 
     shall submit to the Committee on National Security of the 
     House of Representatives and the Committee on Armed Services 
     of the Senate a report of the reforms adopted pursuant to 
     this section or, in the case of any measure specified in any 
     of paragraphs (1) through (7) of subsection (b) that was not 
     adopted, the rationale why that measure was not adopted.

     SEC. 557. TRAINING IN HUMAN RELATIONS MATTERS FOR ARMY DRILL 
                   SERGEANT TRAINEES.

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

     ``Sec. 4318. Drill sergeant trainees: human relations 
       training

       ``(a) Human Relations Training Required.--The Secretary of 
     the Army shall include as part of the training program for 
     drill sergeants a course in human relations. The course shall 
     be a minimum of two days in duration.
       ``(b) Resources.--In developing a human relations course 
     under this section, the Secretary shall use the capabilities 
     and expertise of the Defense Equal Opportunity Management 
     Institute (DEOMI).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``4318. Drill sergeant trainees: human relations training.''.

       (b) Effective Date.--Section 4318 of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect drill sergeant trainee classes that begin after the 
     end of the 90-day period beginning on the date of the 
     enactment of this Act.
 Subtitle F--Commission on Military Training and Gender-Related Issues

     SEC. 561. ESTABLISHMENT AND COMPOSITION OF COMMISSION.

       (a) Establishment.--There is established a Commission on 
     Military Training and Gender-Related Issues to review 
     requirements and restrictions regarding cross-gender 
     relationships of members of the Armed Forces, to review the 
     basic training programs of the Army, Navy, Air Force, and 
     Marine Corps, and to make recommendations on improvements to 
     those programs, requirements, and restrictions.
       (b) Composition.--(1) The commission shall be composed of 
     10 members, appointed as follows:
       (A) Five members shall be appointed jointly by the chairman 
     and ranking minority party member of the Committee on 
     National Security of the House of Representatives.
       (B) Five members shall be appointed jointly by the chairman 
     and ranking minority party member of the Committee on Armed 
     Services of the Senate.
       (2) The members of the commission shall choose one of the 
     members to serve as chairman.
       (3) All members of the commission shall be appointed not 
     later than 45 days after the date of the enactment of this 
     Act.
       (c) Qualifications.--Members of the commission shall be 
     appointed from among private United States citizens with 
     knowledge and expertise in one or more of the following:
       (1) Training of military personnel.
       (2) Social and cultural matters affecting entrance into the 
     Armed Forces and affecting military service, military 
     training, and military readiness, such knowledge and 
     expertise to have been gained through recognized research, 
     policy making and practical experience, as demonstrated by 
     retired military personnel, members of the reserve components 
     of the Armed Forces, representatives from educational 
     organizations, and leaders from civilian industry and other 
     Government agencies.
       (3) Factors that define appropriate military job 
     qualifications, including physical, mental, and educational 
     factors.
       (4) Combat or other theater of war operations.
       (5) Organizational matters.
       (6) Legal matters.
       (7) Management.
       (8) Gender integration matters.
       (d) Appointments.--(1) Members of the commission shall be 
     appointed for the life of the commission.
       (2) A vacancy in the membership shall not affect the 
     commission's powers, but shall be filled in the same manner 
     as the original appointment.

     SEC. 562. DUTIES.

       (a) Functions Relating to Requirements and Restrictions 
     Regarding Cross-Gender Relationships.--The commission shall 
     consider issues relating to personal relationships of members 
     of the Armed Forces as follows:
       (1) Review the laws, regulations, policies, directives, and 
     practices that govern personal relationships between men and 
     women in the Armed Forces and personal relationships between 
     members of the Armed Forces and non-military personnel of the 
     opposite sex.
       (2) Assess the extent to which the laws, regulations, 
     policies, and directives have been applied consistently 
     throughout the Armed Forces without regard to the armed 
     force, grade, rank, or gender of the individuals involved.
       (3) Assess the reports of the independent panel, the 
     Department of Defense task force, and the review of existing 
     guidance on fraternization and adultery that have been 
     required by the Secretary of Defense.
       (b) Functions Relating to Gender-Integrated and Gender-
     Segregated Basic Training.--(1) The commission shall review 
     the parts of the initial entry training programs of the Army, 
     Navy, Air Force, and Marine Corps that constitute the basic 
     training of new recruits (in this subtitle referred to as 
     ``basic training''). The review shall include a review of the 
     basic training policies and practices of each of those 
     services with regard to gender-integrated and gender-
     segregated basic training and, for each of the services, the 
     effectiveness of gender-integrated and gender-segregated 
     basic training.
       (2) As part of the review under paragraph (1), the 
     commission shall (with respect to each of the services) take 
     the following measures:
       (A) Determine how each service defines gender-integration 
     and gender-segregation in the context of basic training.
       (B) Determine the historical rationales for the 
     establishment and disestablishment of gender-integrated or 
     gender-segregated basic training.
       (C) Examine, with respect to each service, the current 
     rationale for the use of gender-integrated or gender-
     segregated basic training and the rationale that was current 
     as of the time the service made a decision to integrate, or 
     to segregate, basic training by gender (or as of the time of 
     the most recent decision to continue to use a gender-
     integrated format or a gender-segregated format for basic 
     training), and, as part

[[Page H9112]]

     of the examination, evaluate whether at the time of that 
     decision, the Secretary of the military department with 
     jurisdiction over that service had substantive reason to 
     believe, or has since developed data to support, that gender-
     integrated basic training, or gender-segregated basic 
     training, improves the readiness or performance of 
     operational units.
       (D) Assess whether the concept of ``training as you will 
     fight'' is a valid rationale for gender-integrated basic 
     training or whether the training requirements and objectives 
     for basic training are sufficiently different from those of 
     operational units so that such concept, when balanced 
     against other factors relating to basic training, might 
     not be a sufficient rationale for gender-integrated basic 
     training.
       (E) Identify the requirements unique to each service that 
     could affect a decision by the Secretary concerned to adopt a 
     gender-integrated or gender-segregated format for basic 
     training and assess whether the format in use by each service 
     has been successful in meeting those requirements.
       (F) Assess, with respect to each service, the degree to 
     which different standards have been established, or if not 
     established are in fact being implemented, for males and 
     females in basic training for matters such as physical 
     fitness, physical performance (such as confidence and 
     obstacle courses), military skills (such as marksmanship and 
     hand-grenade qualifications), and nonphysical tasks required 
     of individuals and, to the degree that differing standards 
     exist or are in fact being implemented, assess the effect of 
     the use of those differing standards.
       (G) Identify the goals that each service has set forth in 
     regard to readiness, in light of the gender-integrated or 
     gender-segregated format that such service has adopted for 
     basic training, and whether that format contributes to the 
     readiness of operational units.
       (H) Assess the degree to which performance standards in 
     basic training are based on military readiness.
       (I) Evaluate the policies of each of the services regarding 
     the assignment of adequate numbers of female drill 
     instructors in gender-integrated training units who can serve 
     as role models and mentors for female trainees.
       (J) Review Department of Defense and military department 
     efforts to objectively measure or evaluate the effectiveness 
     of gender-integrated basic training, as compared to gender-
     segregated basic training, particularly with regard to the 
     adequacy and scope of the efforts and with regard to the 
     relevancy of findings to operational unit requirements, and 
     determine whether the Department of Defense and the military 
     departments are capable of measuring or evaluating the 
     effectiveness of that training format objectively.
       (K) Compare the pattern of attrition in gender-integrated 
     basic training units with the pattern of attrition in gender-
     segregated basic training units and assess the relevancy of 
     the findings of such comparison.
       (L) Compare the level of readiness and morale of gender-
     integrated basic training units with the level of readiness 
     and morale of gender-segregated units, and assess the 
     relevancy of the findings of such comparison and the 
     implications, for readiness, of any differences found.
       (M) Compare the experiences, policies, and practices of the 
     armed forces of other industrialized nations regarding 
     gender-integrated training with those of the Army, Navy, Air 
     Force, and Marine Corps.
       (N) Review, and take into consideration, the current 
     practices, relevant studies, and private sector training 
     concepts pertaining to gender-integrated training.
       (O) Assess the feasibility and implications of conducting 
     basic training (or equivalent training) at the company level 
     and below through separate units for male and female 
     recruits, including the costs and other resource commitments 
     required to implement and conduct basic training in such a 
     manner and the implications for readiness and unit cohesion.
       (P) Assess the feasibility and implications of requiring 
     drill instructors for basic training units to be of the same 
     sex as the recruits in those units if the basic training were 
     to be conducted as described in subparagraph (O).
       (c) Functions Relating to Basic Training Programs 
     Generally.--The commission shall review the course 
     objectives, structure, and length of the basic training 
     programs of the Army, Navy, Air Force, and Marine Corps. The 
     commission shall also review the relationship between those 
     basic training objectives and the advanced training provided 
     in the initial entry training programs of each of those 
     services. As part of that review, the commission shall (with 
     respect to each of those services) take the following 
     measures:
       (1) Determine the current end-state objectives established 
     for graduates of basic training, particularly in regard to--
       (A) physical conditioning;
       (B) technical and physical skills proficiency;
       (C) knowledge;
       (D) military socialization, including the inculcation of 
     service values and attitudes; and
       (E) basic combat operational requirements.
       (2) Assess whether those current end-state objectives, and 
     basic training itself, should be modified (in structure, 
     length, focus, program of instruction, training methods or 
     otherwise) based, in part, on the following:
       (A) An assessment of the perspectives of operational units 
     on the quality and qualifications of the initial entry 
     training graduates being assigned to those units, considering 
     in particular whether the basic training system produces 
     graduates who arrive in operational units with an appropriate 
     level of skills, physical conditioning, and degree of 
     military socialization to meet unit requirements and needs.
       (B) An assessment of the demographics, backgrounds, 
     attitudes, experience, and physical fitness of new recruits 
     entering basic training, considering in particular the 
     question of whether, given the entry level demographics, 
     education, and background of new recruits, the basic training 
     systems and objectives are most efficiently and effectively 
     structured and conducted to produce graduates who meet 
     service needs.
       (C) An assessment of the perspectives of personnel who 
     conduct basic training with regard to measures required to 
     improve basic training.
       (3) Assess the extent to which the initial entry training 
     programs of each of the services continue, after the basic 
     training phases of the programs, effectively to reinforce and 
     advance the military socialization (including the inculcation 
     of service values and attitudes), the physical conditioning, 
     and the attainment and improvement of knowledge and 
     proficiency in fundamental military skills that are begun in 
     basic training.
       (d) Recommendations.--The commission shall prepare--
       (1) with respect to each of the Army, Navy, Air Force, and 
     Marine Corps, an evaluation of gender-integrated and gender-
     segregated basic training programs, based upon the review 
     under subsection (b);
       (2) recommendations for such changes to the current system 
     of basic training as the commission considers warranted; and
       (3) recommendations for such changes to laws, regulations, 
     policies, directives, and practices referred to in subsection 
     (a)(1) as the commission considers warranted.
       (e) Reports.--(1) Not later than April 15, 1998, the 
     commission shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report setting forth a strategic 
     plan for the work of the commission and the activities and 
     initial findings of the commission.
       (2) Not later than September 16, 1998, the commission shall 
     submit a final report to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives. The final report shall set forth 
     the activities, findings, and recommendations of the 
     commission, including any recommendations for congressional 
     action and administrative action that the commission 
     considers appropriate. The report shall specifically set 
     forth the views of the Secretaries of the military 
     departments regarding the matters described in subparagraphs 
     (O) and (P) of subsection (b)(2).

     SEC. 563. ADMINISTRATIVE MATTERS.

       (a) Meetings.--(1) The commission shall hold its first 
     meeting not later than 30 days after the date on which all 
     members have been appointed.
       (2) The commission shall meet upon the call of the 
     chairman.
       (3) A majority of the members of the commission shall 
     constitute a quorum, but a lesser number may hold meetings.
       (b) Authority of Individuals To Act for Commission.--Any 
     member or agent of the commission may, if authorized by the 
     commission, take any action which the commission is 
     authorized to take under this title.
       (c) Powers.--(1) The commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the commission considers advisable 
     to carry out its duties.
       (2) The commission may secure directly from the Department 
     of Defense and any other department or agency of the Federal 
     Government such information as the commission considers 
     necessary to carry out its duties. Upon the request of the 
     chairman of the commission, the head of a department or 
     agency shall furnish the requested information expeditiously 
     to the commission.
       (3) The commission may use the United States mails in the 
     same manner and under the same conditions as other 
     departments and agencies of the Federal Government.
       (d) Pay and Expenses of Commission Members.--(1) Each 
     member of the commission who is not an employee of the 
     Government shall be paid at a rate equal to the daily 
     equivalent of the annual rate of basic pay prescribed for 
     level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code, for each day (including travel 
     time) during which such member is engaged in performing the 
     duties of the commission.
       (2) Members and personnel of the commission may travel on 
     aircraft, vehicles, or other conveyances of the Armed Forces 
     when travel is necessary in the performance of a duty of the 
     commission except when the cost of commercial transportation 
     is less expensive.
       (3) The members of the commission may 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 commission.
       (4)(A) A member of the commission who is an annuitant 
     otherwise covered by section 8344 or 8468 of title 5, United 
     States Code, by reason of membership on the commission shall 
     not be subject to the provisions of such section with respect 
     to such membership.
       (B) A member of the commission who is a member or former 
     member of a uniformed service shall not be subject to the 
     provisions of subsections (b) and (c) of section 5532 of such 
     title with respect to membership on the commission.
       (e) Staff and Administrative Support.--(1) The chairman of 
     the commission may, without regard to civil service laws and 
     regulations, appoint and terminate an executive director and 
     up to three additional staff members as necessary to enable 
     the commission to perform its duties. The chairman of the 
     commission may fix the compensation of the executive director 
     and other personnel without regard to the provisions of 
     chapter 51, and subchapter III of chapter 53,

[[Page H9113]]

     of title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates, except that the 
     rate of pay may not exceed the maximum rate of pay for grade 
     GS-15 under the General Schedule.
       (2) Upon the request of the chairman of the commission, the 
     head of any department or agency of the Federal Government 
     may detail, without reimbursement, any personnel of the 
     department or agency to the commission to assist in carrying 
     out its duties. A detail of an employee shall be without 
     interruption or loss of civil service status or privilege.
       (3) The chairman of the commission may procure temporary 
     and intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals that do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level IV of the Executive Schedule under 
     section 5315 of such title.
       (4) The Secretary of Defense shall furnish to the 
     commission such administrative and support services as may be 
     requested by the chairman of the commission.

     SEC. 564. TERMINATION OF COMMISSION.

       The commission shall terminate 60 days after the date on 
     which it submits the final report under section 562(e)(2).

     SEC. 565. FUNDING.

       (a) From Department of Defense Appropriations.--Upon the 
     request of the chairman of the commission, the Secretary of 
     Defense shall make available to the commission, out of funds 
     appropriated for the Department of Defense, such amounts as 
     the commission may require to carry out its duties.
       (b) Period of Availability.--Funds made available to the 
     commission shall remain available, without fiscal year 
     limitation, until the date on which the commission 
     terminates.

     SEC. 566. SUBSEQUENT CONSIDERATION BY CONGRESS.

       After receipt of each report of the commission under 
     section 562(e), Congress shall consider the report and, based 
     upon the results of the review (and such other matters as 
     Congress considers appropriate), consider whether to require 
     by law that the Secretaries of the military departments 
     conduct basic training on a gender-segregated or gender-
     integrated basis.
              Subtitle G--Military Decorations and Awards

     SEC. 571. PURPLE HEART TO BE AWARDED ONLY TO MEMBERS OF THE 
                   ARMED FORCES.

       (a) In General.--(1) Chapter 57 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1131. Purple Heart: limitation to members of the armed 
       forces

       ``The decoration known as the Purple Heart (authorized to 
     be awarded pursuant to Executive Order 11016) may only be 
     awarded to a person who is a member of the armed forces at 
     the time the person is killed or wounded under circumstances 
     otherwise qualifying that person for award of the Purple 
     Heart.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1131. Purple Heart: limitation to members of the armed forces.''.

       (b) Effective Date.--Section 1131 of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to persons who are killed or wounded after the end of 
     the 180-day period beginning on the date of the enactment of 
     this Act.

     SEC. 572. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL 
                   FOR PARTICIPATION IN OPERATION JOINT ENDEAVOR 
                   OR OPERATION JOINT GUARD.

       (a) Inclusion of Operations.--For the purpose of 
     determining the eligibility of members and former members of 
     the Armed Forces for the Armed Forces Expeditionary Medal, 
     the Secretary of Defense shall designate participation in 
     Operation Joint Endeavor or Operation Joint Guard in the 
     Republic of Bosnia and Herzegovina, and in such other areas 
     in the region as the Secretary considers appropriate, as 
     service in an area that meets the general requirements for 
     the award of that medal.
       (b) Individual Determination.--The Secretary of the 
     military department concerned shall determine whether 
     individual members or former members of the Armed Forces who 
     participated in Operation Joint Endeavor or Operation Joint 
     Guard meet the individual service requirements for award of 
     the Armed Forces Expeditionary Medal as established in 
     applicable regulations. A member or former member shall be 
     considered to have participated in Operation Joint Endeavor 
     or Operation Joint Guard if the member--
       (1) was deployed in the Republic of Bosnia and Herzegovina, 
     or in such other area in the region as the Secretary of 
     Defense considers appropriate, in direct support of one or 
     both of the operations;
       (2) served on board a United States naval vessel operating 
     in the Adriatic Sea in direct support of one or both of the 
     operations; or
       (3) operated in airspace above the Republic of Bosnia and 
     Herzegovina, or in such other area in the region as the 
     Secretary of Defense considers appropriate, while the 
     operations were in effect.
       (c) Operations Defined.--For purposes of this section:
       (1) The term ``Operation Joint Endeavor'' means operations 
     of the United States Armed Forces conducted in the Republic 
     of Bosnia and Herzegovina during the period beginning on 
     November 20, 1995, and ending on December 20, 1996, to assist 
     in implementing the General Framework Agreement and 
     Associated Annexes, initialed on November 21, 1995, in 
     Dayton, Ohio.
       (2) The term ``Operation Joint Guard'' means operations of 
     the United States Armed Forces conducted in the Republic of 
     Bosnia and Herzegovina as a successor to Operation Joint 
     Endeavor during the period beginning on December 20, 1996, 
     and ending on such date as the Secretary of Defense may 
     designate.

     SEC. 573. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN 
                   DECORATIONS TO SPECIFIED PERSONS.

       (a) Waiver of Time Limitation.--Any limitation established 
     by law or policy for the time within which a recommendation 
     for the award of a military decoration or award must be 
     submitted shall not apply in the case of awards of 
     decorations described in subsections (b), (c), and (d), the 
     award of each such decoration having been determined by the 
     Secretary of the military department concerned to be 
     warranted in accordance with section 1130 of title 10, United 
     States Code.
       (b) Silver Star Medal.--Subsection (a) applies to the award 
     of the Silver Star Medal as follows:
       (1) To Joseph M. Moll, Jr. of Milford, New Jersey, for 
     service during World War II.
       (2) To Philip Yolinsky of Hollywood, Florida, for service 
     during the Korean Conflict.
       (3) To Robert Norman of Reno, Nevada, for service during 
     World War II.
       (c) Navy and Marine Corps Medal.--Subsection (a) applies to 
     the award of the Navy and Marine Corps Medal to Gary A. 
     Gruenwald of Damascus, Maryland, for service in Tunisia in 
     October 1977.
       (d) Distinguished Flying Cross.--Subsection (a) applies to 
     awards of the Distinguished Flying Cross for service during 
     World War II or Korea (including multiple awards to the same 
     individual) in the case of each individual concerning whom 
     the Secretary of the Navy (or an officer of the Navy acting 
     on behalf of the Secretary) submitted to the Committee on 
     National Security of the House of Representatives and the 
     Committee on Armed Services of the Senate, before the date of 
     the enactment of this Act, a notice as provided in section 
     1130(b) of title 10, United States Code, that the award of 
     the Distinguished Flying Cross to that individual is 
     warranted and that a waiver of time restrictions prescribed 
     by law for recommendation for such award is recommended.

     SEC. 574. CLARIFICATION OF ELIGIBILITY OF MEMBERS OF READY 
                   RESERVE FOR AWARD OF SERVICE MEDAL FOR HEROISM.

       (a) Soldier's Medal.--Section 3750(a) of title 10, United 
     States Code, is amended--
       (1) by inserting ``(1)'' after ``(a)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The authority in paragraph (1) includes authority to 
     award the medal to a member of the Ready Reserve who was not 
     in a duty status defined in section 101(d) of this title when 
     the member distinguished himself by heroism.''.
       (b) Navy and Marine Corps Medal.--Section 6246 of such 
     title is amended--
       (1) by designating the text of the section as subsection 
     (a); and
       (2) by adding at the end the following new subsection:
       ``(b) The authority in subsection (a) includes authority to 
     award the medal to a member of the Ready Reserve who was not 
     in a duty status defined in section 101(d) of this title when 
     the member distinguished himself by heroism.''.
       (c) Airman's Medal.--Section 8750(a) of such title is 
     amended--
       (1) by inserting ``(1)'' after ``(a)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The authority in paragraph (1) includes authority to 
     award the medal to a member of the Ready Reserve who was not 
     in a duty status defined in section 101(d) of this title when 
     the member distinguished himself by heroism.''.

     SEC. 575. ONE-YEAR EXTENSION OF PERIOD FOR RECEIPT OF 
                   RECOMMENDATIONS FOR DECORATIONS AND AWARDS FOR 
                   CERTAIN MILITARY INTELLIGENCE PERSONNEL.

       Section 523(b)(1) of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 311; 10 
     U.S.C. 1130 note) is amended by striking out ``during the 
     one-year period beginning on the date of the enactment of 
     this Act'' and inserting in lieu thereof ``during the period 
     beginning on February 10, 1996, and ending on February 9, 
     1998''.

     SEC. 576. ELIGIBILITY OF CERTAIN WORLD WAR II MILITARY 
                   ORGANIZATIONS FOR AWARD OF UNIT DECORATIONS.

       (a) Authority.--A unit decoration may be awarded for any 
     unit or other organization of the Armed Forces (such as the 
     Military Intelligence Service of the Army) that (1) supported 
     the planning or execution of combat operations during World 
     War II primarily through unit personnel who were attached to 
     other units of the Armed Forces or of other allied armed 
     forces, and (2) is not otherwise eligible for award of the 
     decoration by reason of not usually having been deployed as a 
     unit in support of such operations.
       (b) Time for Submission of Recommendation.--Any 
     recommendation for award of a unit decoration under 
     subsection (a) shall be submitted to the Secretary concerned 
     (as defined in section 101(a)(9) of title 10, United States 
     Code), or to such other official as the Secretary concerned 
     may designate, not later than two years after the date of the 
     enactment of this Act.

     SEC. 577. RETROACTIVITY OF MEDAL OF HONOR SPECIAL PENSION.

       (a) Entitlement.--In the case of Vernon J. Baker, Edward A. 
     Carter, Junior, and Charles L. Thomas, who were awarded the 
     Medal of Honor pursuant to section 561 of Public Law 104-201 
     (110 Stat. 2529) and whose names have been entered and 
     recorded on the Army, Navy, Air Force, and Coast Guard Medal 
     of Honor Roll, the entitlement of those persons to the 
     special pension provided under section 1562 of title 38, 
     United States Code (and antecedent provisions of law), shall 
     be effective as follows:

[[Page H9114]]

       (1) In the case of Vernon J. Baker, for months that begin 
     after April 1945.
       (2) In the case of Edward A. Carter, Junior, for months 
     that begin after March 1945.
       (3) In the case of Charles L. Thomas, for months that begin 
     after December 1944.
       (b) Amount.--The amount of the special pension payable 
     under subsection (a) for a month beginning before the date of 
     the enactment of this Act shall be the amount of the special 
     pension provided by law for that month for persons entered 
     and recorded on the Army, Navy, Air Force, and Coast Guard 
     Medal of Honor Roll (or an antecedent Medal of Honor Roll 
     required by law).
       (c) Payment to Next of Kin.--In the case of a person 
     referred to in subsection (a) who died before receiving full 
     payment of the pension pursuant to this section, the 
     Secretary of Veterans Affairs shall pay the total amount of 
     the accrued pension, upon receipt of application for payment 
     within one year after the date of the enactment of this Act, 
     to the deceased person's spouse or, if there is no surviving 
     spouse, then to the deceased person's children, per stirpes, 
     in equal shares.
                  Subtitle H--Military Justice Matters

     SEC. 581. ESTABLISHMENT OF SENTENCE OF CONFINEMENT FOR LIFE 
                   WITHOUT ELIGIBILITY FOR PAROLE.

       (a) Establishment of Sentence.--(1) Chapter 47 of title 10, 
     United States Code (the Uniform Code of Military Justice), is 
     amended by inserting after section 856 (article 56) the 
     following new section (article):

     ``Sec. 856a. Art. 56a. Sentence of confinement for life 
       without eligibility for parole

       ``(a) For any offense for which a sentence of confinement 
     for life may be adjudged, a court-martial may adjudge a 
     sentence of confinement for life without eligibility for 
     parole.
       ``(b) An accused who is sentenced to confinement for life 
     without eligibility for parole shall be confined for the 
     remainder of the accused's life unless--
       ``(1) the sentence is set aside or otherwise modified as a 
     result of--
       ``(A) action taken by the convening authority, the 
     Secretary concerned, or another person authorized to act 
     under section 860 of this title (article 60); or
       ``(B) any other action taken during post-trial procedure 
     and review under any other provision of subchapter IX;
       ``(2) the sentence is set aside or otherwise modified as a 
     result of action taken by a Court of Criminal Appeals, the 
     Court of Appeals for the Armed Forces, or the Supreme Court; 
     or
       ``(3) the accused is pardoned.''.
       (2) The table of sections at the beginning of subchapter 
     VIII of such chapter is amended by inserting after the item 
     relating to section 856 (article 56) the following new item:

``856a. 56a. Sentence of confinement for life without eligibility for 
              parole.''.
       (b) Effective Date.--Section 856a of title 10, United 
     States Code (article 56a of the Uniform Code of Military 
     Justice), as added by subsection (a), shall be applicable 
     only with respect to an offense committed after the date of 
     the enactment of this Act.

     SEC. 582. LIMITATION ON APPEAL OF DENIAL OF PAROLE FOR 
                   OFFENDERS SERVING LIFE SENTENCE.

       (a) Exclusive Authority To Grant Parole on Appeal of 
     Denial.--Section 952 of title 10, United States Code, is 
     amended--
       (1) by inserting ``(a)'' before ``The Secretary''; and
       (2) by adding at the end the following new subsection:
       ``(b) In a case in which parole for an offender serving a 
     sentence of confinement for life is denied, only the 
     President or the Secretary concerned may grant the offender 
     parole on appeal of that denial. The authority to grant 
     parole on appeal in such a case may not be delegated.''.
       (b) Effective Date.--Subsection (b) of section 952 of title 
     10, United States Code (as added by subsection (a)), shall 
     apply only with respect to any decision to deny parole made 
     after the date of the enactment of this Act.
                       Subtitle I--Other Matters

     SEC. 591. SEXUAL HARASSMENT INVESTIGATIONS AND REPORTS.

       (a) Investigations.--(1) Part II of subtitle A of title 10, 
     United States Code, is amended by inserting after chapter 79 
     the following new chapter:

``CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES

``Sec.
``1561. Complaints of sexual harassment: investigation by commanding 
              officers.

     ``Sec. 1561. Complaints of sexual harassment: investigation 
       by commanding officers

       ``(a) Action on Complaints Alleging Sexual Harassment.--A 
     commanding officer or officer in charge of a unit, vessel, 
     facility, or area of the Army, Navy, Air Force, or Marine 
     Corps who receives from a member of the command or a civilian 
     employee under the supervision of the officer a complaint 
     alleging sexual harassment by a member of the armed forces or 
     a civilian employee of the Department of Defense shall 
     carry out an investigation of the matter in accordance 
     with this section.
       ``(b) Commencement of Investigation.--To the extent 
     practicable, a commanding officer or officer in charge 
     receiving such a complaint shall, within 72 hours after 
     receipt of the complaint--
       ``(1) forward the complaint or a detailed description of 
     the allegation to the next superior officer in the chain of 
     command who is authorized to convene a general court-martial;
       ``(2) commence, or cause the commencement of, an 
     investigation of the complaint; and
       ``(3) advise the complainant of the commencement of the 
     investigation.
       ``(c) Duration of Investigation.--To the extent 
     practicable, a commanding officer or officer in charge 
     receiving such a complaint shall ensure that the 
     investigation of the complaint is completed not later than 14 
     days after the date on which the investigation is commenced.
       ``(d) Report on Investigation.--To the extent practicable, 
     a commanding officer or officer in charge receiving such a 
     complaint shall--
       ``(1) submit a final report on the results of the 
     investigation, including any action taken as a result of the 
     investigation, to the next superior officer referred to in 
     subsection (b)(1) within 20 days after the date on which the 
     investigation is commenced; or
       ``(2) submit a report on the progress made in completing 
     the investigation to the next superior officer referred to in 
     subsection (b)(1) within 20 days after the date on which the 
     investigation is commenced and every 14 days thereafter until 
     the investigation is completed and, upon completion of the 
     investigation, then submit a final report on the results of 
     the investigation, including any action taken as a result of 
     the investigation, to that next superior officer.
       ``(e) Sexual Harassment Defined.--In this section, the term 
     `sexual harassment' means any of the following:
       ``(1) Conduct (constituting a form of sex discrimination) 
     that--
       ``(A) involves unwelcome sexual advances, requests for 
     sexual favors, and deliberate or repeated offensive comments 
     or gestures of a sexual nature when--
       ``(i) submission to such conduct is made either explicitly 
     or implicitly a term or condition of a person's job, pay, or 
     career;
       ``(ii) submission to or rejection of such conduct by a 
     person is used as a basis for career or employment decisions 
     affecting that person; or
       ``(iii) such conduct has the purpose or effect of 
     unreasonably interfering with an individual's work 
     performance or creates an intimidating, hostile, or offensive 
     working environment; and
       ``(B) is so severe or pervasive that a reasonable person 
     would perceive, and the victim does perceive, the work 
     environment as hostile or offensive.
       ``(2) Any use or condonation, by any person in a 
     supervisory or command position, of any form of sexual 
     behavior to control, influence, or affect the career, pay, or 
     job of a member of the armed forces or a civilian employee of 
     the Department of Defense.
       ``(3) Any deliberate or repeated unwelcome verbal comment 
     or gesture of a sexual nature in the workplace by any member 
     of the armed forces or civilian employee of the Department of 
     Defense.''.
       (2) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part II of subtitle A, of such title 
     are amended by inserting after the item relating to chapter 
     79 the following new item:

``80. Miscellaneous Investigation Requirements and Other Dut1561''.....

       (b) Reports.--(1) Not later than January 1 of each of 1998 
     and 1999, each officer receiving a complaint forwarded in 
     accordance with section 1561(b) of title 10, United States 
     Code, as added by subsection (a), during the preceding year 
     shall submit to the Secretary of the military department 
     concerned a report on all such complaints and the 
     investigations of such complaints (including the results of 
     the investigations, in cases of investigations completed 
     during such preceding year).
       (2)(A) Not later than March 1 of each of 1998 and 1999, 
     each Secretary receiving a report under paragraph (1) for a 
     year shall submit to the Secretary of Defense a report on all 
     such reports so received.
       (B) Not later than the April 1 following receipt of a 
     report for a year under subparagraph (A), the Secretary of 
     Defense shall transmit to Congress all such reports received 
     for the year under subparagraph (A) together with the 
     Secretary's assessment of each such report.

     SEC. 592. SENSE OF THE SENATE REGARDING STUDY OF MATTERS 
                   RELATING TO GENDER EQUITY IN THE ARMED FORCES.

       (a) Findings.--The Senate makes the following findings:
       (1) In the all-volunteer force, women play an integral role 
     in the Armed Forces.
       (2) With increasing numbers of women in the Armed Forces, 
     questions arise concerning inequalities, and perceived 
     inequalities, between the treatment of men and women in the 
     Armed Forces.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Comptroller General should--
       (1) conduct a study on any inequality, or perception of 
     inequality, in the treatment of men and women in the Armed 
     Forces that arises out of the statutes and regulations 
     governing the Armed Forces; and
       (2) submit to the Senate a report on the study not later 
     than one year after the date of the enactment of this Act.

     SEC. 593. AUTHORITY FOR PERSONNEL TO PARTICIPATE IN 
                   MANAGEMENT OF CERTAIN NON-FEDERAL ENTITIES.

       (a) Military Personnel.--(1) Chapter 53 of title 10, United 
     States Code, is amended by inserting after section 1032 the 
     following new section:

     ``Sec. 1033. Participation in management of specified non-
       Federal entities: authorized activities

       ``(a) Authorization.--The Secretary concerned may authorize 
     a member of the armed forces under the Secretary's 
     jurisdiction to serve without compensation as a director, 
     officer, or trustee, or to otherwise participate, in the 
     management of an entity designated under subsection (b). Any 
     such authorization shall be

[[Page H9115]]

     made on a case-by-case basis, for a particular member to 
     participate in a specific capacity with a specific designated 
     entity. Such authorization may be made only for the purpose 
     of providing oversight and advice to, and coordination with, 
     the designated entity, and participation of the member in the 
     activities of the designated entity may not extend to 
     participation in the day-to-day operations of the entity.
       ``(b) Designated Entities.--(1) The Secretary of Defense, 
     and the Secretary of Transportation in the case of the Coast 
     Guard when it is not operating as a service in the Navy, 
     shall designate those entities for which authorization under 
     subsection (a) may be provided. The list of entities so 
     designated may not be revised more frequently than 
     semiannually. In making such designations, the Secretary 
     shall designate each military welfare society and may 
     designate any other entity described in paragraph (3). No 
     other entities may be designated.
       ``(2) In this section, the term `military welfare society' 
     means the following:
       ``(A) Army Emergency Relief.
       ``(B) Air Force Aid Society, Inc.
       ``(C) Navy-Marine Corps Relief Society.
       ``(D) Coast Guard Mutual Assistance.
       ``(3) An entity described in this paragraph is an entity 
     that is not operated for profit and is any of the following:
       ``(A) An entity that regulates and supports the athletic 
     programs of the service academies (including athletic 
     conferences).
       ``(B) An entity that regulates international athletic 
     competitions.
       ``(C) An entity that accredits service academies and other 
     schools of the armed forces (including regional accrediting 
     agencies).
       ``(D) An entity that (i) regulates the performance, 
     standards, and policies of military health care (including 
     health care associations and professional societies), and 
     (ii) has designated the position or capacity in that entity 
     in which a member of the armed forces may serve if authorized 
     under subsection (a).
       ``(c) Publication of Designated Entities and of Authorized 
     Persons.--A designation of an entity under subsection (b), 
     and an authorization under subsection (a) of a member of the 
     armed forces to participate in the management of such an 
     entity, shall be published in the Federal Register.
       ``(d) Regulations.--The Secretary of Defense, and the 
     Secretary of Transportation in the case of the Coast Guard 
     when it is not operating as a service in the Navy, shall 
     prescribe regulations to carry out this section.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1032 the following new item:

``1033. Participation in management of specified non-Federal entities: 
              authorized activities.''.

       (b) Civilian Personnel.--(1) Chapter 81 of such title is 
     amended by inserting after section 1588 the following new 
     section:

     ``Sec. 1589. Participation in management of specified non-
       Federal entities: authorized activities

       ``(a) Authorization.--(1) The Secretary concerned may 
     authorize an employee described in paragraph (2) to serve 
     without compensation as a director, officer, or trustee, or 
     to otherwise participate, in the management of an entity 
     designated under subsection (b). Any such authorization shall 
     be made on a case-by-case basis, for a particular employee to 
     participate in a specific capacity with a specific designated 
     entity. Such authorization may be made only for the purpose 
     of providing oversight and advice to, and coordination with, 
     the designated entity, and participation of the employee in 
     the activities of the designated entity may not extend to 
     participation in the day-to-day operations of the entity.
       ``(2) Paragraph (1) applies to any employee of the 
     Department of Defense or, in the case of the Coast Guard when 
     not operating as a service in the Navy, of the Department of 
     Transportation. For purposes of this section, the term 
     `employee' includes a civilian officer.
       ``(b) Designated Entities.--The Secretary of Defense, and 
     the Secretary of Transportation in the case of the Coast 
     Guard when it is not operating as a service in the Navy, 
     shall designate those entities for which authorization under 
     subsection (a) may be provided. The list of entities so 
     designated may not be revised more frequently than 
     semiannually. In making such designations, the Secretary 
     shall designate each military welfare society named in 
     paragraph (2) of section 1033(b) of this title and may 
     designate any other entity described in paragraph (3) of such 
     section. No other entities may be designated.
       ``(c) Publication of Designated Entities and of Authorized 
     Persons.--A designation of an entity under subsection (b), 
     and an authorization under subsection (a) of an employee to 
     participate in the management of such an entity, shall be 
     published in the Federal Register.
       ``(d) Civilians Outside the Military Departments.--In this 
     section, the term `Secretary concerned' includes the 
     Secretary of Defense with respect to employees of the 
     Department of Defense who are not employees of a military 
     department.
       ``(e) Regulations.--The Secretary of Defense, and the 
     Secretary of Transportation in the case of the Coast 
     Guard when it is not operating as a service in the Navy, 
     shall prescribe regulations to carry out this section.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1588 the following new item:

``1589. Participation in management of specified non-Federal entities: 
              authorized activities.''.

     SEC. 594. TREATMENT OF PARTICIPATION OF MEMBERS IN DEPARTMENT 
                   OF DEFENSE CIVIL MILITARY PROGRAMS.

       Section 2012 of title 10, United States Code, is amended--
       (1) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively; and
       (2) by inserting after subsection (f) the following new 
     subsection:
       ``(g) Treatment of Member's Participation in Provision of 
     Support or Services.--(1) The Secretary of a military 
     department may not require or request a member of the armed 
     forces to submit for consideration by a selection board 
     (including a promotion board, command selection board, or any 
     other kind of selection board) evidence of the member's 
     participation in the provision of support and services to 
     non-Department of Defense organizations and activities under 
     this section or the member's involvement in, or support of, 
     other community relations and public affairs activities of 
     the armed forces.
       ``(2) Paragraph (1) does not prevent a selection board from 
     considering material submitted voluntarily by a member of the 
     armed forces which provides evidence of the participation of 
     that member or another member in activities described in that 
     paragraph.''.

     SEC. 595. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE 
                   CIVIL MILITARY PROGRAMS.

       (a) Study Required.--The Comptroller General shall conduct 
     a study to evaluate the following:
       (1) The nature, extent, and cost to the Department of 
     Defense of the support and services being provided by units 
     and members of the Armed Forces to non-Department of Defense 
     organizations and activities under the authority of section 
     2012 of title 10, United States Code.
       (2) The degree to which the Armed Forces are in compliance 
     with the requirements of such section in the provision of 
     such support and services, especially the requirements that 
     the assistance meet specific requirements relative to 
     military training and that the assistance provided be 
     incidental to military training.
       (3) The degree to which the regulations and procedures for 
     implementing such section, as required by subsection (f) of 
     such section, are consistent with the requirements of such 
     section.
       (4) The effectiveness of the Secretary of Defense and the 
     Secretaries of the military departments in conducting 
     oversight of the implementation of such section, and the 
     provision of such support and services under such section, to 
     ensure compliance with the requirements of such section.
       (b) Submission of Report.--Not later than March 31, 1998, 
     the Comptroller General shall submit to Congress a report 
     containing the results of the study required by subsection 
     (a).

     SEC. 596. ESTABLISHMENT OF PUBLIC AFFAIRS SPECIALTY IN THE 
                   ARMY.

       (a) New Specialty.--Chapter 307 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 3083. Public Affairs Specialty

       ``There is a career field in the Army known as the Public 
     Affairs Specialty. Members of the Army with the Public 
     Affairs Specialty are--
       ``(1) the Chief of Public Affairs;
       ``(2) commissioned officers of the Army in the grade of 
     major or above who are selected and specifically educated, 
     trained, and experienced to perform as professional public 
     affairs officers for the remainder of their careers; and
       ``(3) other members of the Army assigned to public affairs 
     positions by the Secretary of the Army.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``3083. Public Affairs Specialty.''.

     SEC. 597. GRADE OF DEFENSE ATTACHE IN FRANCE.

       (a) In General.--Chapter 41 of title 10, United States 
     Code, is amended by inserting after section 713 the following 
     new section:

     ``Sec. 714. Defense attache in France: required grade

       ``An officer may not be selected for assignment to the 
     position of defense attache to the United States embassy in 
     France unless the officer holds (or is on a promotion list 
     for promotion to) the grade of brigadier general or, in the 
     case of the Navy, rear admiral (lower half).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 713 the following new item:

``714. Defense attache in France: required grade.''.

     SEC. 598. REPORT ON CREW REQUIREMENTS OF WC-130J AIRCRAFT.

       (a) Study.--The Secretary of the Air Force shall conduct a 
     study of the crew requirements for WC-130J aircraft to be 
     procured for assignment to the aerial weather reconnaissance 
     mission involving the eyewall penetration of tropical 
     cyclones. The study shall include study of the anticipated 
     operation of WC-130J aircraft in weather reconnaissance 
     missions configured to carry five crewmembers, including a 
     navigator. In carrying out the study, the Secretary shall 
     provide for participation by members of the Armed Forces 
     currently assigned to units engaged in weather reconnaissance 
     operations.
       (b) Report.--The Secretary shall submit to Congress a 
     report on the results of the study. The Secretary shall 
     include in the report the views of members of the Armed 
     Forces currently assigned to units engaged in weather 
     reconnaissance operations who participated in the study. 
     If as a result of the study the Secretary determines that 
     there are crewmembers assigned to weather reconnaissance 
     duties in excess of the crew requirements that will be 
     applicable for WC-130J aircraft, the Secretary shall 
     include in the report a plan for retraining or 
     reassignment of those crewmembers. The study shall be 
     submitted not later than September 30, 1998.

[[Page H9116]]

     SEC. 599. IMPROVEMENT OF MISSING PERSONS AUTHORITIES 
                   APPLICABLE TO DEPARTMENT OF DEFENSE.

       (a) Applicability to Department of Defense Civilian 
     Employees and Contractor Employees.--(1) Section 1501 of 
     title 10, United States Code, is amended--
       (A) by striking out subsection (c) and inserting in lieu 
     thereof the following:
       ``(c) Covered Persons.--(1) Section 1502 of this title 
     applies in the case of any member of the armed forces on 
     active duty--
       ``(A) who becomes involuntarily absent as a result of a 
     hostile action or under circumstances suggesting that the 
     involuntary absence is a result of a hostile action; and
       ``(B) whose status is undetermined or who is unaccounted 
     for.
       ``(2) Section 1502 of this title applies in the case of any 
     other person who is a citizen of the United States and a 
     civilian officer or employee of the Department of Defense or 
     (subject to paragraph (3)) an employee of a contractor of the 
     Department of Defense--
       ``(A) who serves in direct support of, or accompanies, the 
     armed forces in the field under orders and becomes 
     involuntarily absent as a result of a hostile action or under 
     circumstances suggesting that the involuntary absence is a 
     result of a hostile action; and
       ``(B) whose status is undetermined or who is unaccounted 
     for.
       ``(3) The Secretary of Defense shall determine, with regard 
     to a pending or ongoing military operation, the specific 
     employees, or groups of employees, of contractors of the 
     Department of Defense to be considered to be covered by this 
     subsection.''; and
       (B) by adding at the end the following new subsection:
       ``(f) Secretary Concerned.--In this chapter, the term 
     `Secretary concerned' includes, in the case of a civilian 
     officer or employee of the Department of Defense or an 
     employee of a contractor of the Department of Defense, the 
     Secretary of the military department or head of the element 
     of the Department of Defense employing the officer or 
     employee or contracting with the contractor, as the case may 
     be.''.
       (2) Section 1503(c) of such title is amended--
       (A) in paragraph (1), by striking out ``one military 
     officer'' and inserting in lieu thereof ``one individual 
     described in paragraph (2)'';
       (B) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (C) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) An individual referred to in paragraph (1) is the 
     following:
       ``(A) A military officer, in the case of an inquiry with 
     respect to a member of the armed forces.
       ``(B) A civilian, in the case of an inquiry with respect to 
     a civilian employee of the Department of Defense or of a 
     contractor of the Department of Defense.''.
       (3) Section 1504(d) of such title is amended--
       (A) in paragraph (1), by striking out ``who are'' and all 
     that follows in that paragraph and inserting in lieu thereof 
     ``as follows:
       ``(A) In the case of a board that will inquire into the 
     whereabouts and status of one or more members of the armed 
     forces (and no civilians described in subparagraph (B)), the 
     board shall be composed of officers having the grade of major 
     or lieutenant commander or above.
       ``(B) In the case of a board that will inquire into the 
     whereabouts and status of one or more civilian employees of 
     the Department of Defense or contractors of the Department of 
     Defense (and no members of the armed forces), the board shall 
     be composed of--
       ``(i) not less than three employees of the Department of 
     Defense whose rate of annual pay is equal to or greater than 
     the rate of annual pay payable for grade GS-13 of the General 
     Schedule under section 5332 of title 5; and
       ``(ii) such members of the armed forces as the Secretary 
     considers advisable.
       ``(C) In the case of a board that will inquire into the 
     whereabouts and status of both one or more members of the 
     armed forces and one or more civilians described in 
     subparagraph (B)--
       ``(i) the board shall include at least one officer 
     described in subparagraph (A) and at least one employee of 
     the Department of Defense described in subparagraph (B)(i); 
     and
       ``(ii) the ratio of such officers to such employees on the 
     board shall be roughly proportional to the ratio of the 
     number of members of the armed forces who are subjects of the 
     board's inquiry to the number of civilians who are subjects 
     of the board's inquiry.''; and
       (B) in paragraph (4), by striking out ``section 
     1503(c)(3)'' and inserting in lieu thereof ``section 
     1503(c)(4)''.
       (4) Paragraph (1) of section 1513 of such title is amended 
     to read as follows:
       ``(1) The term `missing person' means--
       ``(A) a member of the armed forces on active duty who is in 
     a missing status; or
       ``(B) a civilian employee of the Department of Defense or 
     an employee of a contractor of the Department of Defense who 
     serves in direct support of, or accompanies, the armed forces 
     in the field under orders and who is in a missing status.

     Such term includes an unaccounted for person described in 
     section 1509(b) of this title, under the circumstances 
     specified in the last sentence of section 1509(a) of this 
     title.''.
       (b) Transmission to Theater Component Commander of Advisory 
     Copy of Missing Person Report.--(1) Section 1502 of such 
     title is amended--
       (A) by redesignating subsection (b) as subsection (c); and
       (B) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Transmission of Advisory Copy to Theater Component 
     Commander.--When transmitting a report under subsection 
     (a)(2) recommending that a person be placed in a missing 
     status, the commander transmitting that report shall transmit 
     an advisory copy of the report to the theater component 
     commander with jurisdiction over the missing person.''.
       (2) Section 1513 of such title is amended by adding at the 
     end the following new paragraph:
       ``(8) The term `theater component commander' means, with 
     respect to any of the combatant commands, an officer of any 
     of the armed forces who (A) is commander of all forces of 
     that armed force assigned to that combatant command, and (B) 
     is directly subordinate to the commander of the combatant 
     command.''.
       (c) Information To Accompany Recommendation of Status of 
     Death.--Section 1507(b) of such title is amended adding at 
     the end the following new paragraphs:
       ``(3) A description of the location of the body, if 
     recovered.
       ``(4) If the body has been recovered and is not 
     identifiable through visual means, a certification by a 
     forensic pathologist that the body recovered is that of the 
     missing person. In determining whether to make such a 
     certification, the forensic pathologist shall consider, as 
     determined necessary by the Secretary of the military 
     department concerned, additional evidence and information 
     provided by appropriate specialists in forensic medicine or 
     other appropriate medical sciences.''.
       (d) Missing Person's Counsel.--(1) Sections 1503(f)(1) and 
     1504(f)(1) of such title are amended by adding at the end the 
     following: ``The identity of counsel appointed under this 
     paragraph for a missing person shall be made known to the 
     missing person's primary next of kin and any other previously 
     designated person of the person.''.
       (2) Section 1503(f)(4) of such title is amended by adding 
     at the end the following: ``The primary next of kin of a 
     missing person and any other previously designated person of 
     the missing person shall have the right to submit information 
     to the missing person's counsel relative to the disappearance 
     or status of the missing person.''.
       (e) Scope of Preenactment Review.--(1) Section 1509 of such 
     title is amended by striking out subsection (a) and inserting 
     in lieu thereof the following:
       ``(a) Review of Status.--(1) If new information (as defined 
     in paragraph (2)) is found or received that may be related to 
     one or more unaccounted for persons described in subsection 
     (b) (whether or not such information specifically relates (or 
     may specifically relate) to any particular such unaccounted 
     for person), that information shall be provided to the 
     Secretary of Defense. Upon receipt of such information, the 
     Secretary shall ensure that the information is treated under 
     paragraphs (2) and (3) of section 1505(c) of this title and 
     under section 1505(d) of this title in the same manner as 
     information received under paragraph (1) of section 1505(c) 
     of this title. For purposes of the applicability of other 
     provisions of this chapter in such a case, each such 
     unaccounted for person to whom the new information may be 
     related shall be considered to be a missing person.
       ``(2) For purposes of this subsection, new information is 
     information that is credible and that--
       ``(A) is found or received after the date of the enactment 
     of the the National Defense Authorization Act for Fiscal Year 
     1998 by a United States intelligence agency, by a 
     Department of Defense agency, or by a person specified in 
     section 1504(g) of this title; or
       ``(B) is identified after the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 1998 in 
     records of the United States as information that could be 
     relevant to the case of one or more unaccounted for persons 
     described in subsection (b).''.
       (2) Such section is further amended by adding at the end 
     the following new subsection:
       ``(d) Establishment of Personnel Files for Korean Conflict 
     Cases.--The Secretary of Defense shall ensure that a 
     personnel file is established for each unaccounted for person 
     who is described in subsection (b)(1) if the Secretary 
     possesses information relevant to that person's status. In 
     the case of a person described in subsection (b)(1) for whom 
     a personnel file does not exist, the Secretary shall create a 
     personnel file for such person upon receipt of new 
     information as provided in subsection (a). Each such file 
     shall be handled in accordance with, and subject to the 
     provisions of, section 1506 of this title in the same manner 
     as applies to the file of a missing person.''.
       (f) Withholding of Classified Information.--Section 1506(b) 
     of such title is amended--
       (1) by inserting ``(1)'' before ``The Secretary'';
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively; and
       (3) by adding at the end the following:
       ``(2) If classified information withheld under this 
     subsection refers to one or more unnamed missing persons, the 
     Secretary shall ensure that notice of that withheld 
     information, and notice of the date of the most recent review 
     of the classification of that withheld information, is made 
     reasonably accessible to the primary next of kin, members of 
     the immediate family, and the previously designated 
     person.''.
       (g) Withholding of Privileged Information.--Section 1506(d) 
     of such title is amended--
       (1) in paragraph (2)--
       (A) by inserting ``or about unnamed missing persons'' in 
     the first sentence after ``the debriefing report'';
       (B) by striking out ``the missing person'' in the second 
     sentence and inserting in lieu thereof ``each missing person 
     named in the debriefing report''; and
       (C) by adding at the end the following new sentence: ``Any 
     information contained in the extract of the debriefing report 
     that pertains to

[[Page H9117]]

     unnamed missing persons shall be made reasonably accessible 
     to the primary next of kin, members of the immediate family, 
     and the previously designated person.''; and
       (2) in paragraph (3), by inserting ``, or part of a 
     debriefing report,'' after ``a debriefing report''.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Reform of basic allowance for subsistence.
Sec. 603. Consolidation of basic allowance for quarters, variable 
              housing allowance, and overseas housing allowances.
Sec. 604. Revision of authority to adjust compensation necessitated by 
              reform of subsistence and housing allowances.
Sec. 605. Protection of total compensation of members while performing 
              certain duty.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
              authorities for nurse officer candidates, registered 
              nurses, and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of 
              other bonuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive 
              pay for certain members.
Sec. 615. Increase in aviation career incentive pay.
Sec. 616. Modification of aviation officer retention bonus.
Sec. 617. Availability of multiyear retention bonus for dental 
              officers.
Sec. 618. Increase in variable and additional special pays for certain 
              dental officers.
Sec. 619. Availability of special pay for duty at designated hardship 
              duty locations.
Sec. 620. Definition of sea duty for purposes of career sea pay.
Sec. 621. Modification of Selected Reserve reenlistment bonus.
Sec. 622. Modification of Selected Reserve enlistment bonus for former 
              enlisted members.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard 
              Reserve.
Sec. 624. Increase in special pay and bonuses for nuclear-qualified 
              officers.
Sec. 625. Provision of bonuses in lieu of special pay for enlisted 
              members extending tours of duty at designated locations 
              overseas.
Sec. 626. Increase in amount of family separation allowance.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for dependents before 
              approval of member's court-martial sentence.
Sec. 632. Dislocation allowance.

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

Sec. 641. One-year opportunity to discontinue participation in Survivor 
              Benefit Plan.
Sec. 642. Time in which change in survivor benefit coverage from former 
              spouse to spouse may be made.
Sec. 643. Review of Federal former spouse protection laws.
Sec. 644. Annuities for certain military surviving spouses.
       Sec. 645. Administration of benefits for so-called minimum 
           income widows.

                       Subtitle E--Other Matters

       Sec. 651. Loan repayment program for commissioned officers 
           in certain health professions.
       Sec. 652. Conformance of NOAA commissioned officers 
           separation pay to separation pay for members of other 
           uniformed services.
       Sec. 653. Eligibility of Public Health Service officers and 
           NOAA commissioned corps officers for reimbursement of 
           adoption expenses.
       Sec. 654. Payment of back quarters and subsistence 
           allowances to World War II veterans who served as 
           guerrilla fighters in the Philippines.
       Sec. 655. Subsistence of members of the Armed Forces above 
           the poverty level.
                     Subtitle A--Pay and Allowances

     SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1998.

       (a) Waiver of Section 1009 Adjustment.--The adjustment, to 
     become effective during fiscal year 1998, required by section 
     1009 of title 37, United States Code (as amended by section 
     604), in the rate of monthly basic pay authorized members of 
     the uniformed services by section 203(a) of such title shall 
     not be made.
       (b) Increase in Basic Pay.--Effective on January 1, 1998, 
     the rates of basic pay of members of the uniformed services 
     are increased by 2.8 percent.

     SEC. 602. REFORM OF BASIC ALLOWANCE FOR SUBSISTENCE.

       (a) Entitlement to Allowance.--Section 402 of title 37, 
     United States Code, is amended to read as follows:

     ``Sec. 402. Basic allowance for subsistence

       ``(a) Entitlement to Allowance.--(1) Except as provided in 
     paragraph (2) or otherwise provided by law, each member of a 
     uniformed service who is entitled to basic pay is entitled to 
     a basic allowance for subsistence as set forth in this 
     section.
       ``(2) An enlisted member is not entitled to the basic 
     allowance for subsistence during basic training.
       ``(b) Rates of Allowance Based on Food Costs.--(1) The 
     monthly rate of basic allowance for subsistence to be in 
     effect for an enlisted member for a year (beginning on 
     January 1 of that year) shall be the amount that is halfway 
     between the following amounts, which are determined by the 
     Secretary of Agriculture as of October 1 of the preceding 
     year:
       ``(A) The amount equal to the monthly cost of a moderate-
     cost food plan for a male in the United States who is between 
     20 and 50 years of age.
       ``(B) The amount equal to the monthly cost of a liberal 
     food plan for a male in the United States who is between 20 
     and 50 years of age.
       ``(2) The monthly rate of basic allowance for subsistence 
     to be in effect for an officer for a year (beginning on 
     January 1 of that year) shall be the amount equal to the 
     monthly rate of basic allowance for subsistence in effect for 
     officers for the preceding year, increased by the same 
     percentage by which the rate of basic allowance for 
     subsistence for enlisted members for the preceding year is 
     increased effective on such January 1.
       ``(c) Advance Payment.--The allowance to an enlisted member 
     may be paid in advance for a period of not more than three 
     months.
       ``(d) Special Rule for Members Authorized to Mess 
     Separately.--(1) In areas prescribed by the Secretary of 
     Defense, and the Secretary of Transportation with respect to 
     the Coast Guard when it is not operating as a service in the 
     Navy, an enlisted member described in paragraph (2) is 
     entitled to not more than the pro rata allowance established 
     under subsection (b)(1) for each meal the member buys from a 
     source other than a messing facility of the United States.
       ``(2) An enlisted member referred to in paragraph (1) is a 
     member who is granted permission to mess separately and whose 
     duties require the member to buy at least one meal from a 
     source other than a messing facility of the United States.
       ``(e) Policies on Use of Dining and Messing Facilities.--
     The Secretary of Defense, in consultation with the 
     Secretaries concerned, shall prescribe policies regarding use 
     of dining and field messing facilities of the uniformed 
     services.
       ``(f) Regulations.--(1) The Secretary of Defense shall 
     prescribe regulations for the administration of this section. 
     Before prescribing the regulations, the Secretary shall 
     consult with each Secretary concerned.
       ``(2) The regulations shall include the specific rates of 
     basic allowance for subsistence required by subsection 
     (b).''.
       (b) Conforming Amendments.--(1) Section 404 of title 37, 
     United States Code, is amended--
       (A) by striking out subsection (g); and
       (B) by redesignating subsections (h), (i), (j), and (k) as 
     subsections (g), (h), (i), and (j), respectively.
       (2) Section 6081(a) of title 10, United States Code, is 
     amended by striking out ``Except'' and all that follows 
     through ``subsistence, each'' and inserting in lieu thereof 
     ``Each''.
       (c) Transitional Authority to Provide Basic Allowance for 
     Subsistence.--
       (1) Transitional authority.--Notwithstanding section 402 of 
     title 37, United States Code, as amended by subsection (a), 
     during the period beginning on January 1, 1998, and ending on 
     the date determined under paragraph (2)--
       (A) the basic allowance for subsistence shall not be paid 
     under such section 402;
       (B) a member of the uniformed services is entitled to the 
     basic allowance for subsistence only as provided in 
     subsection (d);
       (C) an enlisted member of the uniformed services may be 
     paid a partial basic allowance for subsistence as provided in 
     subsection (e); and
       (D) the rates of the basic allowance for subsistence are 
     those rates determined under subsection (f).
       (2) Termination of transitional authority.--The 
     transitional authority provided under paragraph (1) shall 
     terminate on the first day of the month immediately following 
     the first month for which the monthly equivalent of the rate 
     of basic allowance for subsistence payable to enlisted 
     members of the uniformed services (when permission to mess 
     separately is granted), as determined under subsection 
     (f)(2), is equal to or is exceeded by the amount that, except 
     for paragraph (1)(A), would otherwise be the monthly rate 
     of basic allowance for subsistence for enlisted members 
     under section 402(b)(1) of title 37, United States Code, 
     as amended by subsection (a).
       (d) Transitional Entitlement to Allowance.--
       (1) Enlisted members.--
       (A) Types of entitlement.--An enlisted member is entitled 
     to the basic allowance for subsistence, on a daily basis, of 
     under one or more of the following circumstances:
       (i) When rations in kind are not available
       (ii) When permission to mess separately is granted.
       (iii) When assigned to duty under emergency conditions 
     where no messing facilities of the United States are 
     available.
       (B) Other entitlement circumstances.--An enlisted member is 
     entitled to the allowance while on an authorized leave of 
     absence, while confined in a hospital, or while performing 
     travel under orders away from the member's designated post of 
     duty other than field duty or sea duty (as defined in 
     regulations prescribed by the

[[Page H9118]]

     Secretary of Defense). For purposes of the preceding 
     sentence, a member shall not be considered to be performing 
     travel under orders away from his designated post of duty if 
     such member--
       (i) is an enlisted member serving the member's first tour 
     of active duty;
       (ii) has not actually reported to a permanent duty station 
     pursuant to orders directing such assignment; and
       (iii) is not actually traveling between stations pursuant 
     to orders directing a change of station.
       (C) Advance payment.--The allowance to an enlisted member, 
     when authorized, may be paid in advance for a period of not 
     more than three months.
       (2) Officers.--An officer of a uniformed service who is 
     entitled to basic pay is, at all times, entitled to the basic 
     allowances for subsistence. An aviation cadet of the Navy, 
     Air Force, Marine Corps, or Coast Guard is entitled to the 
     same basic allowance for subsistence as is provided for an 
     officer of the Navy, Air Force, Marine Corps, or Coast Guard, 
     respectively.
       (e) Transitional Authority for Partial Allowance.--
       (1) Enlisted members furnished subsistence in kind.--The 
     Secretary of Defense may provide in regulations for an 
     enlisted member of a uniformed service to be paid a partial 
     basic allowance for subsistence when--
       (A) rations in kind are available to the member;
       (B) the member is not granted permission to mess 
     separately; or
       (C) the member is assigned to duty under emergency 
     conditions where messing facilities of the United States are 
     available.
       (2) Monthly payment.--Any partial basic allowance for 
     subsistence authorized under paragraph (1) shall be 
     calculated on a daily basis and paid on a monthly basis.
       (f) Transitional Rates.--
       (1) Allowance for officers.--The monthly rate of basic 
     allowance for subsistence for a year (beginning on January 1 
     of that year) that is payable to officers of the uniformed 
     services shall be the amount that is equal to 101 percent of 
     the rate of basic allowance for subsistence that was payable 
     to officers of the uniformed services for the preceding year.
       (2) Allowance for enlisted member with permission to mess 
     separately.--The monthly rate of basic allowance for 
     subsistence for a year (beginning on January 1 of that year) 
     that is payable to an enlisted member of the uniformed 
     services entitled to the allowance under subsection (d)(1) 
     shall be the amount that is equal to 101 percent of the rate 
     of basic allowance for subsistence that was in effect for 
     similarly situated enlisted members of the uniformed 
     services for the preceding year.
       (3) Partial allowance for other enlisted members.--The 
     monthly rate of any partial basic allowance for subsistence 
     for a year (beginning on January 1 of that year) payable to 
     an enlisted member of the uniformed services eligible for the 
     allowance under the regulations prescribed under subsection 
     (e)(1) shall be the amount equal to the lesser of the 
     following:
       (A) The sum of--
       (i) the partial basic allowance for subsistence in effect 
     for the preceding year; and
       (ii) the amount equal to the difference, if any, between--

       (I) the monthly equivalent of the rate of basic allowance 
     for subsistence that was in effect for the preceding year for 
     members of the uniformed services above grade E-1 (when 
     permission to mess separately is granted), increased by the 
     same percentage by which the rates of basic pay for members 
     of the uniformed services is increased for the current year; 
     and
       (II) the amount equal to 101 percent of the monthly 
     equivalent of the rate of basic allowance for subsistence 
     that was in effect for the previous year for members of the 
     uniformed services above grade E-1 (when permission to mess 
     separately is granted),

     with the amount so determined under this clause multiplied by 
     the number of members estimated to be entitled to receive 
     basic allowance for subsistence under subsection (d) for the 
     current year and then divided by the number of members 
     estimated to be eligible for the partial allowance under the 
     regulations prescribed under subsection (e)(1) for that year.
       (B) The amount equal to the difference between--
       (i) the amount that, except for subsection (c)(1)(A), would 
     otherwise be the monthly rate of basic allowance for 
     subsistence for enlisted members under section 402(b)(1) of 
     title 37, United States Code; and
       (ii) the amount equal to the monthly equivalent of the 
     value of a daily ration, as determined by the Under Secretary 
     of Defense (Comptroller) as of October 1 of the preceding 
     year.
       (g) Effective Date.--This section and the amendments made 
     by this section shall take effect on January 1, 1998.

     SEC. 603. CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS, 
                   VARIABLE HOUSING ALLOWANCE, AND OVERSEAS 
                   HOUSING ALLOWANCES.

       (a) Consolidation of Allowances.--Section 403 of title 37, 
     United States Code, is amended to read as follows:

     ``Sec. 403. Basic allowance for housing

       ``(a) General Entitlement.--(1) Except as otherwise 
     provided by law, a member of a uniformed service who is 
     entitled to basic pay is entitled to a basic allowance for 
     housing at the monthly rates prescribed under this section or 
     another provision of law with regard to the applicable 
     component of the basic allowance for housing. The amount of 
     the basic allowance for housing for a member will vary 
     according to the pay grade in which the member is assigned or 
     distributed for basic pay purposes, the dependency status of 
     the member, and the geographic location of the member. The 
     basic allowance for housing may be paid in advance.
       ``(2) A member of a uniformed service with dependents is 
     not entitled to a basic allowance for housing as a member 
     with dependents unless the member makes a certification to 
     the Secretary concerned indicating the status of each 
     dependent of the member. The certification shall be made in 
     accordance with regulations prescribed by the Secretary of 
     Defense.
       ``(b) Basic Allowance for Housing Inside the United 
     States.--(1) The Secretary of Defense shall determine the 
     costs of adequate housing in a military housing area in the 
     United States for all members of the uniformed services 
     entitled to a basic allowance for housing in that area. The 
     Secretary shall base the determination upon the costs of 
     adequate housing for civilians with comparable income levels 
     in the same area.
       ``(2) Subject to paragraph (3), the monthly amount of a 
     basic allowance for housing for an area of the United States 
     for a member of a uniformed service is equal to the 
     difference between--
       ``(A) the monthly cost of adequate housing in that area, as 
     determined by the Secretary of Defense, for members of the 
     uniformed services serving in the same pay grade and with the 
     same dependency status as the member; and
       ``(B) 15 percent of the national average monthly cost of 
     adequate housing in the United States, as determined by the 
     Secretary, for members of the uniformed services serving in 
     the same pay grade and with the same dependency status as the 
     member.
       ``(3) The rates of basic allowance for housing shall be 
     reduced as necessary to comply with this paragraph. The total 
     amount that may be paid for a fiscal year for the basic 
     allowance for housing under this subsection is the product 
     of--
       ``(A) the total amount authorized to be paid for such 
     allowance for the preceding fiscal year (as adjusted under 
     paragraph (5)); and
       ``(B) a fraction--
       ``(i) the numerator of which is the index of the national 
     average monthly cost of housing for June of the preceding 
     fiscal year; and
       ``(ii) the denominator of which is the index of the 
     national average monthly cost of housing for June of the 
     fiscal year before the preceding fiscal year.
       ``(4) An adjustment in the rates of the basic allowance for 
     housing under this subsection as a result of the Secretary's 
     redetermination of housing costs in an area shall take effect 
     on the same date as the effective date of the next increase 
     in basic pay under section 1009 of this title or other 
     provision of law.
       ``(5) In making a determination under paragraph (3) for a 
     fiscal year, the amount authorized to be paid for the 
     preceding fiscal year for the basic allowance for housing 
     shall be adjusted to reflect changes during the year for 
     which the determination is made in the number, grade 
     distribution, geographic distribution in the United States, 
     and dependency status of members of the uniformed services 
     entitled to the allowance from the number of such members 
     during the preceding fiscal year.
       ``(6) So long as a member of a uniformed service retains 
     uninterrupted eligibility to receive a basic allowance for 
     housing within an area of the United States, the monthly 
     amount of the allowance for the member may not be reduced as 
     a result of changes in housing costs in the area, changes in 
     the national average monthly cost of housing, or the 
     promotion of the member.
       ``(7) In the case of a member without dependents who is 
     assigned to duty inside the United States, the location or 
     the circumstances of which make it necessary that the member 
     be reassigned under the conditions of low cost or no cost 
     permanent change of station or permanent change of 
     assignment, the member may be treated as if the member were 
     not reassigned if the Secretary concerned determines that it 
     would be inequitable to base the member's entitlement to, and 
     amount of, a basic allowance for housing on the cost of 
     housing in the area to which the member is reassigned.
       ``(c) Basic Allowance for Housing Outside the United 
     States.--(1) The Secretary of Defense may prescribe an 
     overseas basic allowance for housing for a member of a 
     uniformed service who is on duty outside of the United 
     States. The Secretary shall establish the basic allowance for 
     housing under this subsection on the basis of housing costs 
     in the overseas area in which the member is assigned.
       ``(2) So long as a member of a uniformed service retains 
     uninterrupted eligibility to receive a basic allowance for 
     housing in an overseas area and the actual monthly cost of 
     housing for the member is not reduced, the monthly amount of 
     the allowance in an area outside the United States may not be 
     reduced as a result of changes in housing costs in the area 
     or the promotion of the member. The monthly amount of the 
     allowance may be adjusted to reflect changes in currency 
     rates.
       ``(d) Basic Allowance for Housing When Dependents Are 
     Unable To Accompany Member.--(1) A member of a uniformed 
     service with dependents who is on permanent duty at a 
     location described in paragraph (2) is entitled to a family 
     separation basic allowance for housing under this subsection 
     at a monthly rate equal to the rate of the basic allowance 
     for housing established under subsection (b) or the overseas 
     basic allowance for housing established under subsection (c), 
     whichever applies to that location, for members in the same 
     grade at that location without dependents.
       ``(2) A permanent duty location referred to in paragraph 
     (1) is a location--
       ``(A) to which the movement of the member's dependents is 
     not authorized at the expense of the United States under 
     section 406 of this title, and the member's dependents do not 
     reside at or near the location; and
       ``(B) at which quarters of the United States are not 
     available for assignment to the member.

[[Page H9119]]

       ``(3) In the case of a member with dependents who is 
     assigned to duty at a location or under circumstances that, 
     as determined by the Secretary concerned, require the 
     member's dependents to reside at a different location, the 
     member shall receive a basic allowance for housing, as 
     provided in subsection (a) or (b), as if the member were 
     assigned to duty in the area in which the dependents reside, 
     regardless of whether the member resides in quarters of the 
     United States or is also entitled to a family separation 
     basic allowance for housing by reason of paragraph (1).
       ``(4) The family separation basic allowance for housing 
     under this subsection shall be in addition to any other 
     allowance or per diem that the member is otherwise entitled 
     to receive under this title. A member may receive a basic 
     allowance for housing under both paragraphs (1) and (3).
       ``(e) Effect of Assignment to Quarters.--(1) Except as 
     otherwise provided by law, a member of a uniformed service 
     who is assigned to quarters of the United States or a housing 
     facility under the jurisdiction of a uniformed service 
     appropriate to the grade, rank, or rating of the member and 
     adequate for the member and dependents of the member, if with 
     dependents, is not entitled to a basic allowance for housing.
       ``(2) A member without dependents who is in a pay grade 
     above pay grade E-6 and who is assigned to quarters in the 
     United States or a housing facility under the jurisdiction of 
     a uniformed service, appropriate to the grade or rank of the 
     member and adequate for the member, may elect not to occupy 
     those quarters and instead to receive the basic allowance for 
     housing prescribed for the member's pay grade by this 
     section.
       ``(3) A member without dependents who is in pay grade E-6 
     and who is assigned to quarters of the United States that do 
     not meet the minimum adequacy standards established by the 
     Secretary of Defense for members in such pay grade, or to a 
     housing facility under the jurisdiction of a uniformed 
     service that does not meet such standards, may elect not to 
     occupy such quarters or facility and instead to receive the 
     basic allowance for housing prescribed for the member's pay 
     grade under this section.
       ``(4) The Secretary concerned may deny the right to make an 
     election under paragraph (2) or (3) if the Secretary 
     determines that the exercise of such an election would 
     adversely affect a training mission, military discipline, or 
     military readiness.
       ``(5) A member with dependents who is assigned to quarters 
     of the United States or a housing facility under the 
     jurisdiction of a uniformed service may be paid the basic 
     allowance for housing if, because of orders of competent 
     authority, the dependents are prevented from occupying those 
     quarters.
       ``(f) Ineligibility During Initial Field Duty or Sea 
     Duty.--(1) A member of a uniformed service without dependents 
     who makes a permanent change of station for assignment to a 
     unit conducting field operations is not entitled to a basic 
     allowance for housing while on that initial field duty unless 
     the commanding officer of the member certifies that the 
     member was necessarily required to procure quarters at the 
     member's expense.
       ``(2)(A) Except as provided in subparagraphs (B) and (C), a 
     member of a uniformed service without dependents who is in a 
     pay grade below pay grade E-6 is not entitled to a basic 
     allowance for housing while the member is on sea duty.
       ``(B) Under regulations prescribed by the Secretary 
     concerned, the Secretary may authorize the payment of a basic 
     allowance for housing to a member of a uniformed service 
     without dependents who is serving in pay grade E-5 and is 
     assigned to sea duty. In prescribing regulations under this 
     subparagraph, the Secretary concerned shall consider the 
     availability of quarters for members serving in pay grade E-
     5.
       ``(C) Notwithstanding section 421 of this title, two 
     members of the uniformed services in a pay grade below pay 
     grade E-6 who are married to each other, have no other 
     dependents, and are simultaneously assigned to sea duty are 
     jointly entitled to one basic allowance for housing during 
     the period of such simultaneous sea duty. The amount of the 
     allowance shall be based on the without dependents rate for 
     the pay grade of the senior member of the couple. However, 
     this subparagraph shall not apply to a couple if one or both 
     of the members are entitled to a basic allowance for housing 
     under subparagraph (B).
       ``(3) The Secretary of Defense, and the Secretary of 
     Transportation with respect to the Coast Guard when it is not 
     operating as a service in the Department of the Navy, shall 
     prescribe regulation defining the terms `field duty' and `sea 
     duty' for purposes of this section.
       ``(g) Reserve Members.--(1) A member of a reserve component 
     without dependents who is called or ordered to active duty in 
     support of a contingency operation, or a retired member 
     without dependents who is ordered to active duty under 
     section 688(a) of title 10 in support of a contingency 
     operation, may not be denied a basic allowance for housing 
     if, because of that call or order, the member is unable to 
     continue to occupy a residence--
       ``(A) which is maintained as the primary residence of the 
     member at the time of the call or order; and
       ``(B) which is owned by the member or for which the member 
     is responsible for rental payments.
       ``(2) Paragraph (1) shall not apply if the member is 
     authorized transportation of household goods under section 
     406 of this title as part of the call or order to active duty 
     described in such paragraph.
       ``(3) The Secretary of Defense shall establish a rate of 
     basic allowance for housing to be paid to a member of a 
     reserve component while the member serves on active duty 
     under a call or order to active duty specifying a period of 
     less than 140 days, unless the call or order to active duty 
     is in support of a contingency operation.
       ``(h) Rental of Public Quarters.--Notwithstanding any other 
     law (including those restricting the occupancy of housing 
     facilities under the jurisdiction of a department or agency 
     of the United States by members, and their dependents, of the 
     armed forces above specified grades, or by members, and their 
     dependents, of the National Oceanic and Atmospheric 
     Administration and the Public Health Service), a member of a 
     uniformed service, and the dependents of the member, may be 
     accepted as tenants in, and may occupy on a rental basis, any 
     of those housing facilities, other than public quarters 
     constructed or designated for assignment to an occupancy 
     without charge by such a member and the dependents of the 
     member, if any. Such a member may not, because of occupancy 
     under this subsection, be deprived of any money allowance to 
     which the member is otherwise entitled for the rental of 
     quarters.
       ``(i) Temporary Housing Allowance While in Travel or Leave 
     Status.--A member of a uniformed service who is in a pay 
     grade E-4 (4 or more years of service) or above is entitled 
     to a temporary basic allowance for housing (at a rate 
     determined by the Secretary of Defense) while the member is 
     in a travel or leave status between permanent duty stations, 
     including time granted as delay en route or proceed time, 
     when the member is not assigned to quarters of the United 
     States.
       ``(j) Aviation Cadets.--The eligibility of an aviation 
     cadet of the Navy, Air Force, Marine Corps, or Coast Guard 
     for a basic allowance for housing shall be determined as if 
     the aviation cadet were a member of the uniformed services in 
     pay grade E-4.
       ``(k) Administration.--(1) The Secretary of Defense shall 
     prescribe regulations for the administration of this section.
       ``(2) The Secretary concerned may make such determinations 
     as may be necessary to administer this section, including 
     determinations of dependency and relationship. When warranted 
     by the circumstances, the Secretary concerned may reconsider 
     and change or modify any such determination. The authority of 
     the Secretary concerned under this subsection may be 
     delegated. Any determination made under this section with 
     regard to a member of the uniformed services is final and is 
     not subject to review by any accounting officer of the United 
     States or a court, unless there is fraud or gross negligence.
       ``(3) Parking facilities (including utility connections) 
     provided members of the uniformed services for house trailers 
     and mobile homes not owned by the Government shall not be 
     considered to be quarters for the purposes of this section or 
     any other provision of law. Any fees established by the 
     Government for the use of such a facility shall be 
     established in an amount sufficient to cover the cost of 
     maintenance, services, and utilities and to amortize the cost 
     of construction of the facility over the 25-year period 
     beginning with the completion of such construction.
       ``(l) Temporary Continuation of Allowance for Dependents of 
     Members Dying on Active Duty.--(1) The Secretary of Defense, 
     or the Secretary of Transportation in the case of the Coast 
     Guard when not operating as a service in the Navy, may allow 
     the dependents of a member of the armed forces who dies on 
     active duty and whose dependents are occupying family housing 
     provided by the Department of Defense, or by the Department 
     of Transportation in the case of the Coast Guard, other than 
     on a rental basis on the date of the member's death to 
     continue to occupy such housing without charge for a period 
     of 180 days.
       ``(2) The Secretary concerned may pay a basic allowance for 
     housing (at the rate that is payable for members of the same 
     grade and dependency status as the deceased member for the 
     area where the dependents are residing) to the dependents of 
     a member of the uniformed services who dies while on active 
     duty and whose dependents--
       ``(A) are not occupying a housing facility under the 
     jurisdiction of a uniformed service on the date of the 
     member's death;
       ``(B) are occupying such housing on a rental basis on such 
     date; or
       ``(C) vacate such housing sooner than 180 days after the 
     date of the member's death.
       ``(3) The payment of the allowance under paragraph (2) 
     shall terminate 180 days after the date of the member's 
     death.
       ``(m) Members Paying Child Support.--(1) A member of a 
     uniformed service with dependents may not be paid a basic 
     allowance for housing at the with dependents rate solely by 
     reason of the payment of child support by the member if--
       ``(A) the member is assigned to a housing facility under 
     the jurisdiction of a uniformed service; or
       ``(B) the member is assigned to sea duty, and elects not to 
     occupy assigned quarters for unaccompanied personnel, unless 
     the member is in a pay grade above E-4.
       ``(2) A member of a uniformed service assigned to quarters 
     of the United States or a housing facility under the 
     jurisdiction of a uniformed service who is not otherwise 
     authorized a basic allowance for housing and who pays child 
     support is entitled to the basic allowance for housing 
     differential, except for months for which the amount payable 
     for the child support is less than the rate of the 
     differential. Payment of a basic allowance for housing 
     differential does not affect any entitlement of the member to 
     a partial allowance for quarters under subsection (n).
       ``(3) The basic allowance for housing differential to which 
     a member is entitled under paragraph (2) is the amount equal 
     to the difference between--
       ``(A) the rate of the basic allowance for quarters (with 
     dependents) for the member's pay

[[Page H9120]]

     grade, as such rate was in effect on December 31, 1997, under 
     this section (as in effect on that date); and
       ``(B) the rate of the basic allowance for quarters (without 
     dependents) for the member's pay grade, as such rate was in 
     effect on December 31, 1997, under this section (as in effect 
     on that date).
       ``(4) Whenever the rates of basic pay for members of the 
     uniformed services are increased, the monthly amount of the 
     basic allowance for housing differential computed under 
     paragraph (3) shall be increased by the average percentage 
     increase in the rates of basic pay. The effective date of the 
     increase shall be the same date as the effective date of the 
     increase in the rates of basic pay.
       ``(5) In the case of two members, who have one or more 
     common dependents (and no others), who are not married to 
     each other, and one of whom pays child support to the other, 
     the amount of the basic allowance for housing paid to each 
     member under this section shall be reduced in accordance with 
     regulations prescribed by the Secretary of Defense. The total 
     amount of the basic allowances for housing paid to the two 
     members may not exceed the sum of the amounts of the 
     allowance to which each member would be otherwise entitled 
     under this section.
       ``(n) Partial Allowance for Members Without Dependents.--
     (1) A member of a uniformed service without dependents who is 
     not entitled to receive a basic allowance for housing under 
     subsection (b), (c), or (d) is entitled to a partial basic 
     allowance for housing at a rate determined by the Secretary 
     of Defense under paragraph (2).
       ``(2) The rate of the partial basic allowance for housing 
     is the partial rate of the basic allowance for quarters for 
     the member's pay grade as such partial rate was in effect on 
     December 31, 1997, under section 1009(c)(2) of this title (as 
     such section was in effect on such date).''.
       (b) Transition to Basic Allowance for Housing.--The 
     Secretary of Defense shall develop and implement a plan to 
     incrementally manage the rate of growth of the various 
     components of the basic allowance for housing authorized by 
     section 403 of title 37, United States Code (as amended by 
     subsection (a)), during a transition period of not more than 
     six years. During the transition period, the Secretary may 
     continue to use the authorities provided under sections 403, 
     403a, 405(b), and 427(a) of title 37, United States Code (as 
     in effect on the day before the date of the enactment of this 
     Act), but subject to such modifications as the Secretary 
     considers necessary, to provide allowances for members of the 
     uniformed services.
       (c) Repeal of Superseded Authorities.--(1) Section 403a of 
     title 37, United States Code, is repealed.
       (2) Section 405 of such title is amended--
       (A) by striking out subsection (b); and
       (B) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.
       (3) Section 427 of such title is amended--
       (A) by striking out subsection (a); and
       (B) in subsection (b)--
       (i) by striking out ``(b) Additional Separation 
     Allowance.--'' and inserting in lieu thereof ``(a) 
     Entitlement to Allowance.--'';
       (ii) in paragraph (1)--
       (I) by striking out ``, including subsection (a),'' in the 
     matter preceding the subparagraphs;
       (II) by inserting ``or'' at the end of subparagraph (B);
       (III) by striking out ``; or'' at the end of subparagraph 
     (C) and inserting in lieu thereof a period; and
       (IV) by striking out subparagraph (D);
       (iii) in paragraph (3)--
       (I) by striking out ``(3) An allowance'' and inserting in 
     lieu thereof ``(b) Entitlement When No Residence or Household 
     Maintained for Dependents.--An allowance''; and
       (II) by striking out ``this subsection'' and inserting in 
     lieu thereof ``subsection (a)'';
       (iv) in paragraph (4)--
       (I) by striking out ``(4) A member'' and inserting in lieu 
     thereof ``(c) Effect of Election to Serve Unaccompanied Tour 
     of Duty.--A member''; and
       (II) by striking out ``paragraph (1)(A) of this 
     subsection'' and inserting in lieu thereof ``subsection 
     (a)(1)(A)''; and
       (v) by striking out paragraph (5) and inserting in lieu 
     thereof the following new subsection:
       ``(d) Entitlement While Spouse Entitled to Basic Pay.--A 
     member married to another member of the uniformed services 
     becomes entitled, regardless of any other dependency status, 
     to an allowance under subsection (a) by virtue of duty 
     prescribed in subparagraph (A), (B), or (C) of paragraph (1) 
     of such subsection if the members were residing together 
     immediately before being separated by reasons of execution of 
     military orders. Section 421 of this title does not apply to 
     bar the entitlement to an allowance under this section. 
     However, not more than one monthly allowance may be paid with 
     respect to a married couple under this section.''.
       (4) The table of sections at the beginning of chapter 7 of 
     title 37, United States Code, is amended by striking out the 
     items relating to sections 403 and 403a and inserting in lieu 
     thereof the following new item:

``403. Basic allowance for housing.''.

       (d) Conforming Amendments.--(1) Title 37, United States 
     Code, is amended--
       (A) in section 101(25), by striking out ``basic allowance 
     for quarters (including any variable housing allowance or 
     station housing allowance)'' and inserting in lieu thereof 
     ``basic allowance for housing'';
       (B) in section 406(c), by striking out ``sections 404 and 
     405'' and inserting in lieu thereof ``sections 403(c), 404, 
     and 405'';
       (C) in section 420(c), by striking out ``quarters'' and 
     inserting in lieu thereof ``housing'';
       (D) in section 551(3)(D), by striking out ``basic allowance 
     for quarters'' and inserting in lieu thereof ``basic 
     allowance for housing''; and
       (E) in section 1014(a), by striking out ``basic allowance 
     for quarters'' and inserting in lieu thereof ``basic 
     allowance for housing''.
       (2) Title 10, United States Code, is amended--
       (A) in section 708(c)(1), by striking out ``basic allowance 
     for quarters or basic allowance for subsistence'' and 
     inserting in lieu thereof ``basic allowance for housing under 
     section 403 of title 37, basic allowance for subsistence 
     under section 402 of such title,'';
       (B) in section 2830(a)--
       (i) in paragraph (1), by striking out ``basic allowance for 
     quarters'' and inserting in lieu thereof ``basic allowance 
     for housing under section 403 of title 37''; and
       (ii) in paragraph (2), by striking out ``basic allowance 
     for quarters'' and inserting in lieu thereof ``basic 
     allowance for housing'';
       (C) in section 2882(b)--
       (i) in paragraph (1), by striking out ``section 403(b)'' 
     and inserting in lieu thereof ``section 403''; and
       (ii) in paragraph (2), by striking out ``basic allowance 
     for quarters'' and all that follows through the end of the 
     paragraph and inserting in lieu thereof ``basic allowance for 
     housing under section 403 of title 37.'';
       (D) in section 7572(b)--
       (i) in paragraph (1), by striking out ``the total of--'' 
     and all that follows through the end of the paragraph and 
     inserting in lieu thereof ``the basic allowance for housing 
     payable under section 403 of title 37 to a member of the same 
     pay grade without dependents for the period during which the 
     member is deprived of quarters on board ship.''; and
       (ii) in paragraph (2), by striking out ``basic allowance 
     for quarters'' and inserting in lieu thereof ``basic 
     allowance for housing''; and
       (E) in section 7573, by striking out ``basic allowance for 
     quarters'' and inserting in lieu thereof ``basic allowance 
     for housing under section 403 of title 37''.
       (3) Section 5561(6)(D) of title 5, United States Code, is 
     amended by striking out ``basic allowance for quarters'' and 
     inserting in lieu thereof ``basic allowance for housing''.
       (4) Section 107(b) of title 32, United States Code, is 
     amended by striking out ``and quarters'' and inserting in 
     lieu thereof ``and housing''.
       (5) Section 4(k)(10) of the Military Selective Service Act 
     (50 U.S.C. App. 454(k)(10)) is amended by striking out ``as 
     such terms'' and all that follows through ``extended or 
     amended'' and inserting in lieu thereof ``shall be entitled 
     to receive a dependency allowance equal to the basic 
     allowance for housing provided for persons in pay grade E-1 
     under section 403 of title 37, United States Code,''.
       (e) Effective Date.--This section and the amendments made 
     by this section shall take effect on January 1, 1998.

     SEC. 604. REVISION OF AUTHORITY TO ADJUST COMPENSATION 
                   NECESSITATED BY REFORM OF SUBSISTENCE AND 
                   HOUSING ALLOWANCES.

       (a) Removal of References to BAS and BAQ.--(1) Section 1009 
     of title 37, United States Code, is amended to read as 
     follows:

     ``Sec. 1009. Adjustments of monthly basic pay

       ``(a) Adjustment Required.--Whenever the General Schedule 
     of compensation for Federal classified employees, as 
     contained in section 5332 of title 5, is adjusted upward as 
     provided in section 5303 of such title, the President shall 
     immediately make an upward adjustment in the monthly basic 
     pay authorized members of the uniformed services by section 
     203(a) of this title.
       ``(b) Effectiveness of Adjustment.--An adjustment under 
     this section shall--
       ``(1) have the force and effect of law; and
       ``(2) carry the same effective date as that applying to the 
     compensation adjustments provided General Schedule employees.
       ``(c) Equal Percentage Increase for All Members.--Subject 
     to subsection (d), an adjustment under this section shall 
     provide all eligible members with an increase in the monthly 
     basic pay which is of the same percentage as the overall 
     average percentage increase in the General Schedule rates of 
     both basic pay and locality pay for civilian employees.
       ``(d) Allocation of Increase Among Pay Grades and Years-of-
     Service.--(1) Subject to paragraph (2), whenever the 
     President determines such action to be in the best interest 
     of the Government, he may allocate the overall percentage 
     increase in the monthly basic pay under subsection (a) among 
     such pay grade and years-of-service categories as he 
     considers appropriate.
       ``(2) In making any allocation of an overall percentage 
     increase in basic pay under paragraph (1)--
       ``(A) the amount of the increase in basic pay for any given 
     pay grade and years-of-service category after any allocation 
     made under this subsection may not be less than 75 percent of 
     the amount of the increase in the monthly basic pay that 
     would otherwise have been effective with respect to such pay 
     grade and years-of-service category under subsection (c); and
       ``(B) the percentage increase in the monthly basic pay in 
     the case of any member of the uniformed services with four 
     years or less service may not exceed the overall percentage 
     increase in the General Schedule rates of basic pay for 
     civilian employees.
       ``(e) Notice of Allocations.--Whenever the President plans 
     to exercise the authority of the President under subsection 
     (d) with respect to any anticipated increase in the monthly 
     basic pay of members of the uniformed services, the President 
     shall advise Congress, at the earliest practicable time prior 
     to the effective date of such increase, regarding the 
     proposed allocation of such increase.
       ``(f) Quadrennial Assessment of Allocations.--The 
     allocations of increases made under

[[Page H9121]]

     this section shall be assessed in conjunction with the 
     quadrennial review of military compensation required by 
     section 1008(b) of this title.''.
       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 19 of such title is 
     amended to read as follows:

``1009. Adjustments of monthly basic pay.''.

       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on January 1, 1998.

     SEC. 605. PROTECTION OF TOTAL COMPENSATION OF MEMBERS WHILE 
                   PERFORMING CERTAIN DUTY.

       Section 1009 of title 37, United States Code, as amended by 
     section 604, is further amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Protection of Member's Total Compensation While 
     Performing Certain Duty.--(1) The total daily equivalent 
     amount of the elements of compensation described in paragraph 
     (3), together with other pay and allowances under this title, 
     to be paid to a member of the uniformed services who is 
     temporarily assigned to duty away from the member's permanent 
     duty station or to duty under field conditions at the 
     member's permanent duty station shall not be less, for any 
     day during the assignment period, than the total amount, for 
     the day immediately preceding the date of the assignment, of 
     the elements of compensation and other pay and allowances of 
     the member.
       ``(2) Paragraph (1) shall not apply with respect to an 
     element of compensation or other pay or allowance of a member 
     during an assignment described in such paragraph to the 
     extent that the element of compensation or other pay or 
     allowance is reduced or terminated due to circumstances 
     unrelated to the assignment.
       ``(3) The elements of compensation referred to in this 
     subsection mean--
       ``(A) the monthly basic pay authorized members of the 
     uniformed services by section 203(a) of this title;
       ``(B) the basic allowance for subsistence authorized 
     members of the uniformed services by section 402 of this 
     title; and
       ``(C) the basic allowance for housing authorized members of 
     the uniformed services by section 403 of this title.''
           Subtitle B--Bonuses and Special and Incentive Pays

     SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL 
                   PAY AUTHORITIES FOR RESERVE FORCES.

       (a) Special Pay for Health Professionals in Critically 
     Short Wartime Specialties.--Section 302g(f) of title 37, 
     United States Code, is amended by striking out ``September 
     30, 1998'' and inserting in lieu thereof ``September 30, 
     1999''.
       (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) 
     of title 37, United States Code, is amended by striking out 
     ``September 30, 1998'' and inserting in lieu thereof 
     ``September 30, 1999''.
       (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1998'' and inserting in lieu thereof 
     ``September 30, 1999''.
       (d) Special Pay for Enlisted Members Assigned to Certain 
     High Priority Units.--Section 308d(c) of title 37, United 
     States Code, is amended by striking out ``September 30, 
     1998'' and inserting in lieu thereof ``September 30, 1999''.
       (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1998'' and inserting in lieu thereof 
     ``September 30, 1999''.
       (f) Ready Reserve Enlistment and Reenlistment Bonus.--
     Section 308h(g) of title 37, United States Code, is amended 
     by striking out ``September 30, 1998'' and inserting in lieu 
     thereof ``September 30, 1999''.
       (g) Prior Service Enlistment Bonus.--Section 308i(f) of 
     title 37, United States Code, as redesignated by section 622, 
     is amended by striking out ``September 30, 1998'' and 
     inserting in lieu thereof ``September 30, 1999''.
       (h) Repayment of Education Loans for Certain Health 
     Professionals Who Serve in the Selected Reserve.--Section 
     16302(d) of title 10, United States Code, is amended by 
     striking out ``October 1, 1998'' and inserting in lieu 
     thereof ``October 1, 1999''.

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

       (a) Nurse Officer Candidate Accession Program.--Section 
     2130a(a)(1) of title 10, United States Code, is amended by 
     striking out ``September 30, 1998'' and inserting in lieu 
     thereof ``September 30, 1999''.
       (b) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of title 37, United States Code, is amended by 
     striking out ``September 30, 1998'' and inserting in lieu 
     thereof ``September 30, 1999''.
       (c) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of title 37, United States Code, is amended by 
     striking out ``September 30, 1998'' and inserting in lieu 
     thereof ``September 30, 1999''.

     SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO 
                   PAYMENT OF OTHER BONUSES AND SPECIAL PAYS.

       (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1998,'' and inserting in lieu thereof 
     ``September 30, 1999,''.
       (b) Reenlistment Bonus for Active Members.--Section 308(g) 
     of title 37, United States Code, is amended by striking out 
     ``September 30, 1998'' and inserting in lieu thereof 
     ``September 30, 1999''.
       (c) Enlistment Bonuses for Members With Critical Skills.--
     Sections 308a(c) and 308f(c) of title 37, United States Code, 
     are each amended by striking out ``September 30, 1998'' and 
     inserting in lieu thereof ``September 30, 1999''.
       (d) Special Pay for Nuclear Qualified Officers Extending 
     Period of Active Service.--Section 312(e) of title 37, United 
     States Code, is amended by striking out ``September 30, 
     1998'' and inserting in lieu thereof ``September 30, 1999''.
       (e) Nuclear Career Accession Bonus.--Section 312b(c) of 
     title 37, United States Code, is amended by striking out 
     ``September 30, 1998'' and inserting in lieu thereof 
     ``September 30, 1999''.
       (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
     of title 37, United States Code, is amended by striking out 
     ``October 1, 1998'' and inserting in lieu thereof ``October 
     1, 1999''.

     SEC. 614. INCREASE IN MINIMUM MONTHLY RATE OF HAZARDOUS DUTY 
                   INCENTIVE PAY FOR CERTAIN MEMBERS.

       (a) Aerial Flight Crewmembers.--The table in subsection (b) 
     of section 301 of title 37, United States Code, is amended--
       (1) by striking out ``110'' each place it appears and 
     inserting in lieu thereof ``150''; and
       (2) by striking out ``125'' each place it appears and 
     inserting in lieu thereof ``150''.
       (b) Air Weapons Controller Aircrew.--The table in 
     subsection (c)(2)(A) of such section is amended--
       (1) by striking out ``100'' in the first column of amounts 
     and inserting in lieu thereof ``150'';
       (2) by striking out ``110'' in the last column of amounts 
     and inserting in lieu thereof ``150''; and
       (3) by striking out ``125'' each place it appears and 
     inserting in lieu thereof ``150''.
       (c) Other Members.--Subsection (c)(1) of such section is 
     amended--
       (1) by striking out ``$110'' and inserting in lieu thereof 
     ``$150''; and
       (2) by striking out ``$165'' and inserting in lieu thereof 
     ``$225''.

     SEC. 615. INCREASE IN AVIATION CAREER INCENTIVE PAY.

       (a) Amounts.--The table in subsection (b)(1) of section 
     301a of title 37, United States Code, is amended--
       (1) by inserting at the end of phase I of the table the 
     following:

  ``Over 14......................................................840'';

     and
       (2) by striking out phase II of the table and inserting in 
     lieu thereof the following:

                               ``Phase II

                                                              ``Monthly
``Years of service as an officer:                                  rate
  ``Over 22.......................................................$585 
  ``Over 23........................................................495 
  ``Over 24........................................................385 
  ``Over 25......................................................250''.

       (b) Conforming Amendments.--Such subsection is further 
     amended in the matter after the table by striking out ``18 
     years'' both places it appears and inserting in lieu thereof 
     ``22 years''.
       (c) Effective Date and Applicability.--The amendments made 
     by subsection (a) shall take effect on January 1, 1999, and 
     shall apply with respect to months beginning on or after that 
     date.

     SEC. 616. MODIFICATION OF AVIATION OFFICER RETENTION BONUS.

       (a) Increase in Bonus Amounts.--Subsection (c) of section 
     301b of title 37, United States Code, is amended--
       (1) in paragraph (1), by striking out ``$12,000'' and 
     inserting in lieu thereof ``$25,000''; and
       (2) in paragraph (2), by striking out ``$6,000'' and 
     inserting in lieu thereof ``$12,000''.
       (b) Duration of Agreement.--Paragraph (2) of such 
     subsection is further amended by striking out ``one or two 
     years'' and inserting in lieu thereof ``one, two, or three 
     years''.
       (c) Content of Annual Report.--Subsection (i)(1) of such 
     section is amended--
       (1) by inserting ``and'' at the end of subparagraph (A);
       (2) by striking out ``; and'' at the end of subparagraph 
     (B) and inserting in lieu thereof a period; and
       (3) by striking out subparagraph (C).
       (d) Definition of Aviation Specialty.--Subsection (j)(2) of 
     such section is amended by inserting ``specific'' before 
     ``community'' both places it appears.
       (e) Effective Dates and Applicability.--The amendments made 
     by this section shall take effect as of October 1, 1996, and 
     shall apply with respect to agreements accepted under section 
     301b of title 37, United States Code, on or after that 
     date.

     SEC. 617. AVAILABILITY OF MULTIYEAR RETENTION BONUS FOR 
                   DENTAL OFFICERS.

       (a) Availability of Retention Bonus.--Chapter 5 of title 
     37, United States Code, is amended by inserting after section 
     301d the following new section:

     ``Sec. 301e. Multiyear retention bonus: dental officers of 
       the armed forces

       ``(a) Bonus Authorized.--(1) A dental officer described in 
     subsection (b) who executes a written agreement to remain on 
     active duty for two, three, or four years after completion of 
     any other active-duty service commitment may, upon acceptance 
     of the written agreement by the Secretary of the military 
     department concerned, be paid a retention bonus as provided 
     in this section.
       ``(2) The amount of a retention bonus under paragraph (1) 
     may not exceed $14,000 for each year covered by a four-year 
     agreement. The

[[Page H9122]]

     maximum yearly retention bonus for two-year and three-year 
     agreements shall be reduced to reflect the shorter service 
     commitment.
       ``(b) Officers Automatically Eligible.--Subsection (a) 
     applies to an officer of the armed forces who--
       ``(1) is an officer of the Dental Corps of the Army or the 
     Navy or an officer of the Air Force designated as a dental 
     officer;
       ``(2) has a dental specialty in oral and maxillofacial 
     surgery;
       ``(3) is in a pay grade below pay grade 0-7;
       ``(4) has at least eight years of creditable service 
     (computed as described in section 302b(g) of this title) or 
     has completed any active-duty service commitment incurred for 
     dental education and training; and
       ``(5) has completed initial residency training (or will 
     complete such training before September 30 of the fiscal year 
     in which the officer enters into an agreement under 
     subsection (a)).
       ``(c) Extension of Bonus to Other Dental Officers.--At the 
     discretion of the Secretary of the military department 
     concerned, the Secretary may enter into a written agreement 
     described in subsection (a)(1) with a dental officer who does 
     not have the dental specialty specified in subsection (b)(2), 
     and pay a retention bonus to such an officer as provided in 
     this section, if the officer otherwise satisfies the 
     eligibility requirements specified in subsection (b). The 
     Secretaries shall exercise the authority provided in this 
     section in a manner consistent with regulations prescribed by 
     the Secretary of Defense.
       ``(d) Refunds.--(1) Refunds shall be required, on a pro 
     rata basis, of sums paid under this section if the officer 
     who has received the payment fails to complete the total 
     period of active duty specified in the agreement, as 
     conditions and circumstances warrant.
       ``(2) An obligation to reimburse the United States imposed 
     under paragraph (1) is for all purposes a debt owed to the 
     United States.
       ``(3) A discharge in bankruptcy under title 11, United 
     States Code, that is entered less than five years after the 
     termination of an agreement under this section does not 
     discharge the member signing such agreement from a debt 
     arising under such agreement or under paragraph (1). This 
     paragraph applies to any case commenced under title 11 after 
     the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 1998.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 301d the following new item:

``301e. Multiyear retention bonus: dental officers of the armed 
              forces.''.

     SEC. 618. INCREASE IN VARIABLE AND ADDITIONAL SPECIAL PAYS 
                   FOR CERTAIN DENTAL OFFICERS.

       (a) Variable Special Pay for Junior Officers.--Paragraph 
     (2) of section 302b(a) of title 37, United States Code, is 
     amended by striking out subparagraphs (C), (D), (E), and (F) 
     and inserting in lieu thereof the following new 
     subparagraphs:
       ``(C) $7,000 per year, if the officer has at least six but 
     less than eight years of creditable service.
       ``(D) $12,000 per year, if the officer has at least eight 
     but less than 12 years of creditable service.
       ``(E) $10,000 per year, if the officer has at least 12 but 
     less than 14 years of creditable service.
       ``(F) $9,000 per year, if the officer has at least 14 but 
     less than 18 years of creditable service.
       ``(G) $8,000 per year, if the officer has 18 or more years 
     of creditable service.''.
       (b) Variable Special Pay for Senior Officers.--Paragraph 
     (3) of such section is amended by striking out ``$1,000'' and 
     inserting in lieu thereof ``$7,000''.
       (c) Additional Special Pay.--Paragraph (4) of such section 
     is amended by striking out subparagraphs (B), (C), and (D) 
     and inserting in lieu thereof the following new 
     subparagraphs:
       ``(B) $6,000 per year, if the officer has at least three 
     but less than 10 years of creditable service.
       ``(C) $15,000 per year, if the officer has 10 or more years 
     of creditable service.''.

     SEC. 619. AVAILABILITY OF SPECIAL PAY FOR DUTY AT DESIGNATED 
                   HARDSHIP DUTY LOCATIONS.

       (a) Special Pay Authorized.--Subsection (a) of section 305 
     of title 37, United States Code, is amended to read as 
     follows:
       ``(a) Special Pay Authorized.--A member of a uniformed 
     service who is entitled to basic pay may be paid special pay 
     under this section at a monthly rate not to exceed $300 while 
     the member is on duty at a location in the United States or 
     outside the United States designated by the Secretary of 
     Defense as a hardship duty location.''.
       (b) Cross References and Regulations.--Such section is 
     further amended--
       (1) in subsection (b)--
       (A) by inserting ``Exception for Certain Members Serving in 
     Certain Locations.--'' after ``(b)''; and
       (B) by striking out ``as foreign duty pay'' and inserting 
     in lieu thereof ``as hardship duty location pay'';
       (2) in subsection (c)--
       (A) by inserting ``Exception for Members Receiving Career 
     Sea Pay.--'' after ``(c)''; and
       (B) by striking out ``special pay under this section'' and 
     inserting in lieu thereof ``hardship duty location pay under 
     subsection (a)''; and
       (3) by adding at the end the following new subsection:
       ``(d) Regulations.--The Secretary of Defense shall 
     prescribe regulations for the provision of hardship duty 
     location pay under subsection (a), including the specific 
     monthly rates at which the special pay will be available.''.
       (c) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 305. Special pay: hardship duty location pay''.

       (2) The table of sections at the beginning of chapter 5 of 
     title 37, United States Code, is amended by striking out the 
     item relating to section 305 and inserting in lieu thereof 
     the following new item:

``305. Special pay: hardship duty location pay.''.
       (d) Conforming Amendment.--Section 907(d) of title 37, 
     United States Code, is amended by striking out ``duty at 
     certain places'' and inserting in lieu thereof ``duty at a 
     hardship duty location''.
       (e) Transition.--Until such time as the Secretary of 
     Defense prescribes regulations regarding the provision of 
     hardship duty location pay under section 305 of title 37, 
     United States Code, as amended by this section, the Secretary 
     may continue to use the authority provided by such section 
     305, as in effect on the day before the date of the enactment 
     of this Act, to provide special pay to enlisted members of 
     the uniformed services on duty at certain places.

     SEC. 620. DEFINITION OF SEA DUTY FOR PURPOSES OF CAREER SEA 
                   PAY.

       Section 305a(d) of title 37, United States Code, is 
     amended--
       (1) in paragraph (1)(A), by striking out ``, ship-based 
     staff, or ship-based aviation unit'';
       (2) in paragraph (1)(B), by striking out ``or ship-based 
     staff'';
       (3) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (4) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) The Secretary concerned may designate duty performed 
     by a member while serving on a ship the primary mission of 
     which is accomplished either while under way or in port as 
     `sea duty' for purposes of this section, even though the duty 
     is performed while the member is permanently or temporarily 
     assigned to a ship-based staff or other unit not covered by 
     paragraph (1).''.

     SEC. 621. MODIFICATION OF SELECTED RESERVE REENLISTMENT 
                   BONUS.

       (a) Eligible Members.--Subsection (a)(1) of section 308b of 
     title 37, United States Code, is amended by striking out 
     ``ten years'' and inserting in lieu thereof ``14 years''.
       (b) Bonus Amounts; Payment.--Subsection (b) of such section 
     is amended to read as follows:
       ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus 
     under this section may not exceed--
       ``(A) $5,000, in the case of a member who reenlists or 
     extends an enlistment for a period of six years;
       ``(B) $2,500, in the case of a member who, having never 
     received a bonus under this section, reenlists or extends an 
     enlistment for a period of three years; and
       ``(C) $2,000, in the case of a member who, having received 
     a bonus under this section for a previous three-year 
     reenlistment or extension of an enlistment, reenlists or 
     extends the enlistment for an additional period of three 
     years.
       ``(2) Any bonus payable under this section shall be 
     disbursed in one initial payment of an amount not to exceed 
     one-half of the total amount of the bonus and subsequent 
     periodic partial payments of the balance of the bonus. The 
     Secretary concerned shall prescribe the amount of each 
     partial payment and the schedule for making the partial 
     payments.''.
       (c) Special Eligibility Requirements; Number of Individual 
     Bonuses.--Subsection (c) of such section is amended to read 
     as follows:
       ``(c) Condition on Eligibility; Limitation on Number of 
     Bonuses.--(1) To be eligible for a second bonus under this 
     section in the amount specified in subsection (b)(1)(C), a 
     member must--
       ``(A) enter into the subsequent reenlistment or extension 
     of an enlistment for a period of three years not later than 
     the date on which the enlistment or extension for which the 
     first bonus was paid would expire; and
       ``(B) still satisfy the designated skill or unit 
     requirements required under subsection (a)(2).
       ``(2) A member may not be paid more than one six-year bonus 
     or two three-year bonuses under this section.''.
       (d) Effect of Failure to Serve Satisfactorily.--Subsection 
     (d) of such section is amended to read as follows:
       ``(d) Repayment of Bonus.--A member who receives a bonus 
     under this section and who fails, during the period for which 
     the bonus was paid, to serve satisfactorily in the element of 
     the Selected Reserve of the Ready Reserve with respect to 
     which the bonus was paid shall refund to the United States an 
     amount that bears the same ratio to the amount of the bonus 
     paid to the member as the period that the member failed to 
     serve satisfactorily bears to the total period for which the 
     bonus was paid.''.
       (e) Clerical Amendments.--Such section is further amended--
       (1) in subsection (a), by inserting ``Authority and 
     Eligibility Requirements.--'' after ``(a)'';
       (2) in subsection (e), by inserting ``Regulations.--'' 
     after ``(e)''; and
       (3) in subsection (f), by inserting ``Termination of 
     Authority.--'' after ``(f)''.

     SEC. 622. MODIFICATION OF SELECTED RESERVE ENLISTMENT BONUS 
                   FOR FORMER ENLISTED MEMBERS.

       (a) Eligible Persons.--Subsection (a)(2) of section 308i of 
     title 37, United States Code, is amended--
       (1) in subparagraph (A), by striking out ``10 years'' and 
     inserting in lieu thereof ``14 years'';
       (2) in subparagraph (C), by striking out ``and'';
       (3) by redesignating subparagraph (D) as subparagraph (E);
       (4) in subparagraph (E) (as so redesignated), by inserting 
     ``(except under this section)'' after ``bonus''; and
       (5) by inserting after subparagraph (C) the following new 
     subparagraph:

[[Page H9123]]

       ``(D) is projected to occupy a position as a member of the 
     Selected Reserve in a specialty in which--
       ``(i) the person successfully served while a member on 
     active duty; and
       ``(ii) the person attained a level of qualification while a 
     member on active duty commensurate with the grade and years 
     of service of the member; and''.
       (b) Bonus Amounts; Payment.--Subsection (b) of such section 
     is amended to read as follows:
       ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus 
     under this section may not exceed--
       ``(A) $5,000, in the case of a person who enlists for a 
     period of six years;
       ``(B) $2,500, in the case of a person who, having never 
     received a bonus under this section, enlists for a period of 
     three years; and
       ``(C) $2,000, in the case of a person who, having received 
     a bonus under this section for a previous three-year 
     enlistment, reenlists or extends the enlistment for an 
     additional period of three years.
       ``(2) Any bonus payable under this section shall be 
     disbursed in one initial payment of an amount not to exceed 
     one-half of the total amount of the bonus and subsequent 
     periodic partial payments of the balance of the bonus. The 
     Secretary concerned shall prescribe the amount of each 
     partial payment and the schedule for making the partial 
     payments.''.
       (c) Special Eligibility Requirements; Number of Individual 
     Bonuses.--Subsection (c) of such section is amended to read 
     as follows:
       ``(c) Condition on Eligibility; Limitation on Number of 
     Bonuses.--(1) To be eligible for a second bonus under this 
     section in the amount specified in subsection (b)(1)(C), a 
     person must--
       ``(A) enter into a reenlistment or extension of an 
     enlistment for a period of three years not later than the 
     date on which the enlistment for which the first bonus was 
     paid would expire; and
       ``(B) still satisfy the eligibility requirements under 
     subsection (a).
       ``(2) A person may not be paid more than one six-year bonus 
     or two three-year bonuses under this section.
       (d) Reorganization of Section.--Such section is further 
     amended--
       (1) by redesignating subsections (e), (f), and (g) as 
     paragraphs (2), (3), and (4), respectively, of subsection 
     (d); and
       (2) by redesignating subsections (h) and (i) as subsections 
     (e) and (f), respectively.
       (e) Conforming and Clerical Amendments.--Such section is 
     further amended--
       (1) in subsection (a), by inserting ``Authority and 
     Eligibility Requirements.--'' after ``(a)'';
       (2) in subsection (d)--
       (A) by inserting ``Repayment of Bonus.--(1)'' after 
     ``(d)'';
       (B) in paragraphs (2) and (4), as redesignated by 
     subsection (d)(1), by striking out ``subsection (d)'' and 
     inserting in lieu thereof ``paragraph (1)''; and
       (C) in paragraph (3), as redesignated by subsection 
     (d)(1)--
       (i) by striking out ``subsection (h)'' and inserting in 
     lieu thereof ``subsection (e)''; and
       (ii) by striking out ``subsection (d)'' and inserting in 
     lieu thereof ``paragraph (1)'';
       (3) in subsection (e), as redesignated by subsection 
     (d)(2), by inserting ``Regulations.--'' after ``(e)''; and
       (4) in subsection (f), as redesignated by subsection 
     (d)(2), by inserting ``Termination of Authority.--'' after 
     ``(f)''.

     SEC. 623. EXPANSION OF RESERVE AFFILIATION BONUS TO INCLUDE 
                   COAST GUARD RESERVE.

       Section 308e of title 37, United States Code, is amended--
       (1) in subsection (a), by striking out ``Under regulations 
     prescribed by the Secretary of Defense, the Secretary of a 
     military department'' and inserting in lieu thereof ``The 
     Secretary concerned'';
       (2) in subsection (b)(3), by striking out ``designated by 
     the Secretary of Defense for the purposes of this section'' 
     and inserting in lieu thereof ``designated for purposes of 
     this section in the regulations prescribed under subsection 
     (f)'';
       (3) in subsection (c)(3), by striking out ``regulations 
     prescribed by the Secretary of Defense'' and inserting in 
     lieu thereof ``the regulations prescribed under subsection 
     (f)''; and
       (4) by adding at the end the following new subsections:
       ``(f) This section shall be administered under regulations 
     prescribed by the Secretary of Defense for the armed forces 
     under the jurisdiction of the Secretary of Defense and by the 
     Secretary of Transportation for the Coast Guard when the 
     Coast Guard is not operating as a service in the Navy.
       ``(g) The authority in subsection (a) does not apply to the 
     Secretary of Commerce and the Secretary of Health and Human 
     Services.''.

     SEC. 624. INCREASE IN SPECIAL PAY AND BONUSES FOR NUCLEAR-
                   QUALIFIED OFFICERS.

       (a) Special Pay for Officers Extending Period of Active 
     Service.--Section 312(a) of title 37, United States Code, is 
     amended by striking out ``$12,000'' and inserting in lieu 
     thereof ``$15,000''.
       (b) Nuclear Career Accession Bonus.--Section 312b(a)(1) of 
     title 37, United States Code, is amended by striking out 
     ``$8,000'' and inserting in lieu thereof ``$10,000''.
       (c) Nuclear Career Annual Incentive Bonuses.--Section 312c 
     of title 37, United States Code, is amended--
       (1) in subsection (a)(1), by striking out ``$10,000'' and 
     inserting in lieu thereof ``$12,000''; and
       (2) in subsection (b)(1), by striking out ``$4,500'' and 
     inserting in lieu thereof ``$5,500''.
       (d) Effective Date.--(1) The amendments made by this 
     section shall take effect as of October 1, 1997.
       (2) The amendments made by subsections (a) and (b) shall 
     apply with respect to agreements accepted under sections 
     312(a) and 312b(a), respectively, of title 37, United States 
     Code, on or after October 1, 1997.

     SEC. 625. PROVISION OF BONUSES IN LIEU OF SPECIAL PAY FOR 
                   ENLISTED MEMBERS EXTENDING TOURS OF DUTY AT 
                   DESIGNATED LOCATIONS OVERSEAS.

       (a) Inclusion of Bonus Incentive.--(1) Section 314 of title 
     37, United States Code, is amended to read as follows:

     ``Sec. 314. Special pay or bonus: qualified enlisted members 
       extending duty at designated locations overseas

       ``(a) Covered Members.--This section applies with respect 
     to an enlisted member of an armed force who--
       ``(1) is entitled to basic pay;
       ``(2) has a specialty that is designated by the Secretary 
     concerned for the purposes of this section;
       ``(3) has completed a tour of duty (as defined in 
     accordance with regulations prescribed by the Secretary 
     concerned) at a location outside the 48 contiguous States and 
     the District of Columbia that is designated by the Secretary 
     concerned for the purposes of this section; and
       ``(4) at the end of that tour of duty executes an agreement 
     to extend that tour for a period of not less than one year.
       ``(b) Special Pay or Bonus Authorized.--Upon the acceptance 
     by the Secretary concerned of the agreement providing for an 
     extension of the tour of duty of an enlisted member described 
     in subsection (a), the member is entitled, at the election of 
     the Secretary concerned, to either--
       ``(1) special pay in monthly installments in an amount 
     prescribed by the Secretary, but not to exceed $80 per month; 
     or
       ``(2) an annual bonus in an amount prescribed by the 
     Secretary, but not to exceed $2,000 per year.
       ``(c) Selection and Payment of Special Pay or Bonus.--Not 
     later than the date on which the Secretary concerned accepts 
     an agreement described in subsection (a)(4) providing for the 
     extension of a member's tour of duty, the Secretary concerned 
     shall notify the member regarding whether the member will 
     receive special pay or a bonus under this section. The 
     payment rate for the special pay or bonus shall be fixed at 
     the time of the agreement and may not be changed during the 
     period of the extended tour of duty. The Secretary concerned 
     may pay a bonus under this section either in a lump sum or 
     installments.
       ``(d) Repayment of Bonus.--(1) A member who, having entered 
     into a written agreement to extend a tour of duty for a 
     period under subsection (a), receives a bonus payment under 
     subsection (b)(2) for a 12-month period covered by the 
     agreement and ceases during that 12-month period to perform 
     the agreed tour of duty shall refund to the United States the 
     unearned portion of the bonus. The unearned portion of the 
     bonus is the amount by which the amount of the bonus paid to 
     the member exceeds the amount determined by multiplying the 
     amount of the bonus paid by the percent determined by 
     dividing 12 into the number of full months during which the 
     member performed the duty in the 12-month period.
       ``(2) The Secretary concerned may waive the obligation of a 
     member to reimburse the United States under paragraph (1) if 
     the Secretary determines that conditions and circumstances 
     warrant the waiver.
       ``(3) An obligation to repay the United States imposed 
     under paragraph (1) is for all purposes a debt owed to the 
     United States.
       ``(4) A discharge in bankruptcy under title 11 that is 
     entered less than five years after the termination of the 
     agreement does not discharge the member signing the agreement 
     from a debt arising under the agreement or under paragraph 
     (1). This paragraph applies to any case commenced under title 
     11 on or after the date of the enactment of the National 
     Defense Authorization Act for Fiscal Year 1998.
       ``(e) Effect of Rest and Recuperative Absence.--A member 
     who elects to receive one of the benefits specified in 
     section 705(b) of title 10 as part of the extension of a tour 
     of duty is not entitled to the special pay authorized by 
     subsection (b)(1) for the period of the extension of duty for 
     which the benefit under such section is provided.''.
       (2) The item relating to section 314 in the table of 
     sections at the beginning of chapter 5 of such title is 
     amended to read as follows:

``314. Special pay or bonus: qualified enlisted members extending duty 
              at designated locations overseas.''.
       (b) Application of Amendment.--Section 314 of title 37, 
     United States Code, as amended by subsection (a), shall apply 
     with respect to an agreement to extend a tour of duty as 
     provided in such section executed on or after October 1, 
     1997.

     SEC. 626. INCREASE IN AMOUNT OF FAMILY SEPARATION ALLOWANCE.

       Section 427 of title 37, United States Code (as amended by 
     section 603), is further amended in subsection (a)(1) by 
     striking out ``$75'' and inserting in lieu thereof ``$100''.

     SEC. 627. DEADLINE FOR PAYMENT OF READY RESERVE MUSTER DUTY 
                   ALLOWANCE.

       Section 433(c) of title 37, United States Code, is 
     amended--
       (1) in the first sentence, by striking out ``and shall be'' 
     and all that follows through ``is performed''; and
       (2) by inserting after the first sentence the following new 
     sentence: ``The allowance may be paid to the member before, 
     on, or after the date on which the muster duty is performed, 
     but not later than 30 days after that date.''.

[[Page H9124]]

            Subtitle C--Travel and Transportation Allowances

     SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS 
                   BEFORE APPROVAL OF MEMBER'S COURT-MARTIAL 
                   SENTENCE.

       Section 406(h)(2)(C) of title 37, United States Code, is 
     amended by striking out the comma at the end of clause (iii) 
     and all that follows through ``title 10.'' and inserting in 
     lieu thereof a period.

     SEC. 632. DISLOCATION ALLOWANCE.

       (a) In General.--Section 407 of title 37, United States 
     Code, is amended to read as follows:

     ``Sec. 407. Travel and transportation allowances: dislocation 
       allowance

       ``(a) Eligibility for Primary Dislocation Allowance.--(1) 
     Under regulations prescribed by the Secretary concerned, a 
     member of a uniformed service described in paragraph (2) is 
     entitled to a primary dislocation allowance at the rate 
     determined under subsection (c) for the member's pay grade 
     and dependency status.
       ``(2) A member of the uniformed services referred to in 
     paragraph (1) is any of the following:
       ``(A) A member who makes a change of permanent station and 
     the member's dependents actually make an authorized move in 
     connection with the change, including a move by the 
     dependents--
       ``(i) to join the member at the member's duty station after 
     an unaccompanied tour of duty when the member's next tour of 
     duty is an accompanied tour at the same station; and
       ``(ii) to a location designated by the member after an 
     accompanied tour of duty when the member's next tour of duty 
     is an unaccompanied tour at the same duty station.
       ``(B) A member whose dependents actually move pursuant to 
     section 405a(a), 406(e), 406(h), or 554 of this title.
       ``(C) A member whose dependents actually move from their 
     place of residence under circumstances described in section 
     406a of this title.
       ``(D) A member who is without dependents and--
       ``(i) actually moves to a new permanent station where the 
     member is not assigned to quarters of the United States; or
       ``(ii) actually moves from a place of residence under 
     circumstances described in section 406a of this title.
       ``(E) A member who is ordered to move in connection with 
     the closure or realignment of a military installation and, as 
     a result, the member's dependents actually move or, in the 
     case of a member without dependents, the member actually 
     moves.
       ``(3) If a primary dislocation allowance is paid under this 
     subsection to a member described in subparagraph (C) or 
     (D)(ii) of paragraph (2), the member is not entitled to 
     another dislocation allowance as a member described in 
     subparagraph (A) or (E) of such paragraph in connection with 
     the same move.
       ``(b) Secondary Allowance Authorized Under Certain 
     Circumstances.--(1) Under regulations prescribed by the 
     Secretary concerned, whenever a member is entitled to a 
     primary dislocation allowance under subsection (a) as a 
     member described in paragraph (2)(C) or (2)(D)(ii) of such 
     subsection, the member is also entitled to a secondary 
     dislocation allowance at the rate determined under subsection 
     (c) for the member's pay grade and dependency status if, 
     subsequent to the member or the member's dependents actually 
     moving from their place of residence under circumstances 
     described in section 406a of this title, the member or 
     member's dependents complete that move to a new location and 
     then actually move from that new location to another location 
     also under circumstances described in section 406a of this 
     title.
       ``(2) If a secondary dislocation allowance is paid under 
     this subsection, the member is not entitled to a dislocation 
     allowance as a member described in paragraph (2)(A) or (2)(E) 
     of subsection (a) in connection with those moves.
       ``(c) Dislocation Allowance Rates.--(1) The amount of the 
     dislocation allowance to be paid under this section to a 
     member shall be based on the member's pay grade and 
     dependency status at the time the member becomes entitled to 
     the allowance.
       ``(2) The initial rate for the dislocation allowance, for 
     each pay grade and dependency status, shall be equal to the 
     rate in effect for that pay grade and dependency status on 
     December 31, 1997, as adjusted by the average percentage 
     increase in the rates of basic pay for calendar year 1998. 
     Effective on the same date that the monthly rates of basic 
     pay for members are increased for a subsequent calendar year, 
     the Secretary of Defense shall adjust the rates for the 
     dislocation allowance for that calendar year by the 
     percentage equal to the average percentage increase in the 
     rates of basic pay for that calendar year.
       ``(d) Fiscal Year Limitation; Exceptions.--(1) A member is 
     not entitled to more than one dislocation allowance under 
     this section during a fiscal year unless--
       ``(A) the Secretary concerned finds that the exigencies of 
     the service require the member to make more than one change 
     of permanent station during the fiscal year;
       ``(B) the member is ordered to a service school as a change 
     of permanent station;
       ``(C) the member's dependents are covered by section 
     405a(a), 406(e), 406(h), or 554 of this title; or
       ``(D) subparagraph (C) or (D)(ii) of subsection (a)(2) or 
     subsection (b) apply with respect to the member or the 
     member's dependents.
       ``(2) This subsection does not apply in time of national 
     emergency or in time of war.
       ``(e) First or Last Duty.--A member is not entitled to 
     payment of a dislocation allowance under this section when 
     the member is ordered from the member's home to the member's 
     first duty station or from the member's last duty station to 
     the member's home.
       ``(f) Rule of Construction.--For purposes of this section, 
     a member whose dependents may not make an authorized move in 
     connection with a change of permanent station is considered a 
     member without dependents.
       ``(g) Advance Payment.--A dislocation allowance payable 
     under this section may be paid in advance.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 1998.
    Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

     SEC. 641. ONE-YEAR OPPORTUNITY TO DISCONTINUE PARTICIPATION 
                   IN SURVIVOR BENEFIT PLAN.

       (a) Election To Discontinue Within One Year After Second 
     Anniversary of Commencement of Payment of Retired Pay.--(1) 
     Subchapter II of chapter 73 of title 10, United States Code, 
     is amended by inserting after section 1448 the following new 
     section:

     ``Sec. 1448a. Election to discontinue participation: one-year 
       opportunity after second anniversary of commencement of 
       payment of retired pay

       ``(a) Authority.--A participant in the Plan may, subject to 
     the provisions of this section, elect to discontinue 
     participation in the Plan at any time during the one-year 
     period beginning on the second anniversary of the date on 
     which payment of retired pay to the participant commences.
       ``(b) Concurrence of Spouse.--
       ``(1) Concurrence required.--A married participant may not 
     (except as provided in paragraph (2)) make an election under 
     subsection (a) without the concurrence of the participant's 
     spouse.
       ``(2) Exceptions.--A participant may make such an election 
     without the concurrence of the participant's spouse by 
     establishing to the satisfaction of the Secretary concerned 
     that one of the conditions specified in section 1448(a)(3)(C) 
     of this title exists.
       ``(3) Form of concurrence.--The concurrence of a spouse 
     under paragraph (1) shall be made in such written form and 
     shall contain such information as may be required under 
     regulations prescribed by the Secretary of Defense.
       ``(c) Limitation on Election When Former Spouse Coverage in 
     Effect.--The limitation set forth in section 1450(f)(2) of 
     this title applies to an election to discontinue 
     participation in the Plan under subsection (a).
       ``(d) Withdrawal of Election To Discontinue.--Section 
     1448(b)(1)(D) of this title applies to an election under 
     subsection (a).
       ``(e) Consequences of Discontinuation.--Section 
     1448(b)(1)(E) of this title applies to an election under 
     subsection (a).
       ``(f) Notice to Affected Beneficiaries.--The Secretary 
     concerned shall notify any former spouse or other natural 
     person previously designated under section 1448(b) of this 
     title of an election to discontinue participation under 
     subsection (a).
       ``(g) Effective Date of Election.--An election under 
     subsection (a) is effective as of the first day of the first 
     calendar month following the month in which the election is 
     received by the Secretary concerned.
       ``(h) Inapplicability of Irrevocability Provisions.--
     Paragraphs (4)(B) and (5)(C) of section 1448(a) of this title 
     do not apply to prevent an election under subsection (a).''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by inserting after the item relating to 
     section 1448 the following new item:

``1448a. Election to discontinue participation: one-year opportunity 
              after second anniversary of commencement of payment of 
              retired pay.''.
       (b) Transition Provision for Current Participants.--
     Notwithstanding the limitation on the time for making an 
     election under section 1448a of title 10, United States Code 
     (as added by subsection (a)), that is specified in subsection 
     (a) of such section, a participant in the Survivor Benefit 
     Plan under subchapter II of chapter 73 of such title may make 
     an election in accordance with that section within one year 
     after the effective date of that section under subsection (c) 
     if the second anniversary of the commencement of payment of 
     retired pay to the participant precedes that effective date.
       (c) Effective Date.--Section 1448a of title 10, United 
     States Code, as added by subsection (a), shall take effect 
     180 days after the date of the enactment of this Act.

     SEC. 642. TIME IN WHICH CHANGE IN SURVIVOR BENEFIT COVERAGE 
                   FROM FORMER SPOUSE TO SPOUSE MAY BE MADE.

       (a) Extension of Time for Change.--Section 1450(f)(1)(C) of 
     title 10, United States Code, is amended by adding at the end 
     the following new sentence: ``Notwithstanding the preceding 
     sentence, a change of election under this subsection to 
     provide an annuity to a spouse instead of a former spouse may 
     (subject to paragraph (2)) be made at any time after the 
     person providing the annuity remarries without regard to 
     the time limitation in section 1448(a)(5)(B) of this 
     title.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to marriages occurring before, on, 
     or after the date of the enactment of this Act.

     SEC. 643. REVIEW OF FEDERAL FORMER SPOUSE PROTECTION LAWS.

       (a) Review Required.--The Secretary of Defense shall carry 
     out a comprehensive review (including a comparison) of--
       (1) the protections, benefits, and treatment afforded under 
     Federal law to members and former members of the uniformed 
     services and former spouses of such persons; and

[[Page H9125]]

       (2) the protections, benefits, and treatment afforded under 
     Federal law to employees and former employees of the 
     Government and former spouses of such persons.
       (b) Military Personnel Matters To Be Reviewed.--In the case 
     of members and former members of the uniformed services and 
     former spouses of such persons, the review under subsection 
     (a) shall include the following:
       (1) All provisions of law (principally those originally 
     enacted in the Uniformed Services Former Spouses' Protection 
     Act (title X of Public Law 97-252)) that--
       (A) establish, provide for the enforcement of, or otherwise 
     protect interests of members and former members of the 
     uniformed services and former spouses of such persons in 
     retired or retainer pay of members and former members; or
       (B) provide other benefits for members and former members 
     of the uniformed services and former spouses of such persons.
       (2) The experience of the uniformed services in 
     administering those provisions of law, including the adequacy 
     and effectiveness of the legal assistance provided by the 
     Department of Defense in matters related to the Uniformed 
     Services Former Spouses' Protection Act.
       (3) The experience of members and former members of the 
     uniformed services and former spouses of such persons in the 
     administration of those provisions of law.
       (4) The experience of members and former members of the 
     uniformed services and former spouses of such persons in the 
     application of those provisions of law by State courts.
       (5) The history of State statutes and State court 
     interpretations of the Uniformed Services Former Spouses' 
     Protection Act and other provisions of Federal law described 
     in paragraph (1)(A) and the extent to which those 
     interpretations follow those laws.
       (c) Civilian Personnel Matters To Be Reviewed.--In the case 
     of former spouses of employees and former employees of the 
     Government, the review under subsection (a) shall include the 
     following:
       (1) All provisions of law that--
       (A) establish, provide for the enforcement of, or otherwise 
     protect interests of employees and former employees of the 
     Government and former spouses of such persons in annuities of 
     employees and former employees under Federal employees' 
     retirement systems; or
       (B) provide other benefits for employees and former 
     employees of the Government and former spouses of such 
     persons.
       (2) The experience of the Office of Personnel Management 
     and other agencies of the Government in administering those 
     provisions of law.
       (3) The experience of employees and former employees of the 
     Government and former spouses of such persons in the 
     administration of those provisions of law.
       (4) The experience of employees and former employees of the 
     Government and former spouses of such persons in the 
     application of those provisions of law by State courts.
       (d) Sampling Authorized.--The Secretary may use sampling in 
     carrying out the review under this section.
       (e) Report.--Not later than September 30, 1999, the 
     Secretary shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report on the results of the 
     review under subsection (a). The report shall include any 
     recommendations for legislation that the Secretary considers 
     appropriate.

     SEC. 644. ANNUITIES FOR CERTAIN MILITARY SURVIVING SPOUSES.

       (a) Survivor Annuity.--(1) The Secretary concerned shall 
     pay an annuity to the qualified surviving spouse of each 
     member of the uniformed services who--
       (A) died before March 21, 1974, and was entitled to retired 
     or retainer pay on the date of death; or
       (B) was a member of a reserve component of the Armed Forces 
     during the period beginning on September 21, 1972, and ending 
     on October 1, 1978, and at the time of his death would have 
     been entitled to retired pay under chapter 67 of title 10, 
     United States Code (as in effect before December 1, 1994), 
     but for the fact that he was under 60 years of age.
       (2) A qualified surviving spouse for purposes of this 
     section is a surviving spouse who has not remarried and who 
     is not eligible for an annuity under section 4 of Public Law 
     92-425 (10 U.S.C. 1448 note).
       (b) Amount of Annuity.--(1) An annuity under this section 
     shall be paid at the rate of $165 per month, as adjusted from 
     time to time under paragraph (3).
       (2) An annuity paid to a surviving spouse under this 
     section shall be reduced by the amount of any dependency and 
     indemnity compensation (DIC) to which the surviving spouse is 
     entitled under section 1311(a) of title 38, United States 
     Code.
       (3) Whenever after the date of the enactment of this Act 
     retired or retainer pay is increased under section 
     1401a(b)(2) of title 10, United States Code, each annuity 
     that is payable under this section shall be increased at the 
     same time and by the same total percent. The amount of the 
     increase shall be based on the amount of the monthly annuity 
     payable before any reduction under this section.
       (c) Application Required.--No benefit shall be paid to any 
     person under this section unless an application for such 
     benefit is filed with the Secretary concerned by or on behalf 
     of such person.
       (d) Definitions.--For purposes of this section:
       (1) The terms ``uniformed services'' and ``Secretary 
     concerned'' have the meanings given such terms in section 101 
     of title 37, United States Code.
       (2) The term ``surviving spouse'' has the meaning given the 
     terms ``widow'' and ``widower'' in paragraphs (3) and (4) of 
     section 1447 of title 10, United States Code.
       (e) Prospective Applicability.--(1) Annuities under this 
     section shall be paid for months beginning after the month in 
     which this Act is enacted.
       (2) No benefit shall accrue to any person by reason of the 
     enactment of this section for any period before the first 
     month that begins after the month in which this Act is 
     enacted.
       (f) Expiration of Authority.--The authority to pay 
     annuities under this section shall expire on September 30, 
     2001.

     SEC. 645. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM 
                   INCOME WIDOWS.

       (a) Payments To Be Made by Secretary of Veterans Affairs.--
     Section 653(d) of the National Defense Authorization Act, 
     Fiscal Year 1989 (10 U.S.C. 1448 note) is amended--
       (1) by inserting ``(1)'' before ``An annuity'' the first 
     place it appears; and
       (2) by adding at the end the following new paragraph:
       ``(2) Payment of annuities under this section shall be made 
     by the Secretary of Veterans Affairs. In making such 
     payments, the Secretary shall combine the payment under this 
     section with the payment of any amount due the same person 
     under section 4 of Public Law 92-425 (10 U.S.C. 1448 note), 
     as provided in subsection (e)(1) of that section. The 
     Secretary concerned shall transfer amounts for payments under 
     this section to the Secretary of Veterans Affairs in the 
     same manner as is provided under subsection (e)(2) of 
     section 4 of Public Law 92-425 for payments under that 
     section.''.
       (b) Combination With Other Benefits.--Section 4(e)(1) of 
     Public Law 92-425 (10 U.S.C. 1448 note) is amended--
       (1) by inserting after the first sentence the following new 
     sentence: ``In making such payments, the Secretary shall 
     combine with the payment under this section payment of any 
     amount due the same person under section 653(d) of the 
     National Defense Authorization Act, Fiscal Year 1989 (10 
     U.S.C. 1448 note).''; and
       (2) by inserting ``(and, if applicable, under section 
     653(d) of the National Defense Authorization Act, Fiscal Year 
     1989)'' after ``under this section''.
       (c) Effective Date.--The amendments made by this section 
     take effect on the first day of the first month beginning 
     after the date of the enactment of this Act and shall apply 
     with respect to payments of benefits for months beginning on 
     or after that date, except that the Secretary of Veterans 
     Affairs may provide, if necessary for administrative 
     implementation, that such amendments shall apply beginning 
     with a later month, not later than the first month beginning 
     more than 180 days after the date of the enactment of this 
     Act.
                       Subtitle E--Other Matters

     SEC. 651. LOAN REPAYMENT PROGRAM FOR COMMISSIONED OFFICERS IN 
                   CERTAIN HEALTH PROFESSIONS.

       (a) Chapter 109 of title 10, United States Code, is amended 
     by adding at the end the following new section:

     ``Sec. 2173. Education loan repayment program: commissioned 
       officers in specified health professions

       ``(a) Authority To Repay Education Loans.--For the purpose 
     of maintaining adequate numbers of commissioned officers of 
     the armed forces on active duty who are qualified in the 
     various health professions, the Secretary of a military 
     department may repay, in the case of a person described in 
     subsection (b), a loan that--
       ``(1) was used by the person to finance education regarding 
     a health profession; and
       ``(2) was obtained from a governmental entity, private 
     financial institution, school, or other authorized entity.
       ``(b) Eligible Persons.--To be eligible to obtain a loan 
     repayment under this section, a person must--
       ``(1) satisfy one of the requirements specified in 
     subsection (c);
       ``(2) be fully qualified for, or hold, an appointment as a 
     commissioned officer in one of the health professions; and
       ``(3) sign a written agreement to serve on active duty, or, 
     if on active duty, to remain on active duty for a period in 
     addition to any other incurred active duty obligation.
       ``(c) Academic and Professional Requirements.--One of the 
     following academic requirements must be satisfied for 
     purposes of determining the eligibility of a person for a 
     loan repayment under this section:
       ``(1) The person is fully qualified in a health care 
     profession that the Secretary of the military department 
     concerned has determined to be necessary to meet identified 
     skill shortages.
       ``(2) The person is enrolled as a full-time student in the 
     final year of a course of study at an accredited educational 
     institution leading to a degree in a health profession other 
     than medicine or osteopathic medicine.
       ``(3) The person is enrolled in the final year of an 
     approved graduate program leading to specialty qualification 
     in medicine, dentistry, osteopathic medicine, or other health 
     profession.
       ``(d) Certain Persons Ineligible.--Participants of the 
     Armed Forces Health Professions Scholarship and Financial 
     Assistance program under subchapter I of chapter 105 of this 
     title and students of the Uniformed Services University of 
     the Health Sciences established under section 2112 of this 
     title are not eligible for the repayment of an education loan 
     under this section.
       ``(e) Loan Repayments.--(1) Subject to the limits 
     established by paragraph (2), a loan repayment under this 
     section may consist of payment of the principal, interest, 
     and related expenses of a loan obtained by a person described 
     in subsection (b) for--
       ``(A) all educational expenses, comparable to all 
     educational expenses recognized under section 2127(a) of this 
     title for participants in the

[[Page H9126]]

     Armed Forces Health Professions Scholarship and Financial 
     Assistance program; and
       ``(B) reasonable living expenses, not to exceed expenses 
     comparable to the stipend paid under section 2121(d) of this 
     title for participants in the Armed Forces Health Professions 
     Scholarship and Financial Assistance program.
       ``(2) For each year of obligated service that a person 
     agrees to serve in an agreement described in subsection 
     (b)(3), the Secretary of the military department concerned 
     may pay not more than $22,000 on behalf of the person. This 
     maximum amount shall be increased annually by the Secretary 
     of Defense effective October 1 of each year by the percentage 
     equal to the percent increase in the average annual cost of 
     educational expenses and stipend costs of a single 
     scholarship under the Armed Forces Health Professions 
     Scholarship and Financial Assistance program. The total 
     amount that may be repaid on behalf of any person may not 
     exceed an amount determined on the basis of a four-year 
     active duty service obligation.
       ``(f) Active Duty Service Obligation.--(1) A person 
     entering into an agreement described in subsection (b)(3) 
     incurs an active duty service obligation. The length of this 
     obligation shall be determined under regulations prescribed 
     by the Secretary of Defense, but those regulations may not 
     provide for a period of obligation of less than one year for 
     each maximum annual amount, or portion thereof, paid on 
     behalf of the person for qualified loans.
       ``(2) For persons on active duty before entering into the 
     agreement, the active duty service obligation shall be served 
     consecutively to any other obligation incurred under the 
     agreement.
       ``(g) Effect of Failure To Complete Obligation.--A 
     commissioned officer who is relieved of the officer's active 
     duty obligation under this section before the completion of 
     that obligation may be given, with or without the consent of 
     the officer, any alternative obligation comparable to any of 
     the alternative obligations authorized by section 2123(e) of 
     this title for participants in the Armed Forces Health 
     Professions Scholarship and Financial Assistance program.
       ``(h) Regulations.--The Secretary of Defense shall 
     prescribe regulations to carry out this section, including 
     standards for qualified loans and authorized payees and other 
     terms and conditions for the making of loan repayments.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2173. Education loan repayment program: commissioned officers in 
              specified health professions.''.

     SEC. 652. CONFORMANCE OF NOAA COMMISSIONED OFFICERS 
                   SEPARATION PAY TO SEPARATION PAY FOR MEMBERS OF 
                   OTHER UNIFORMED SERVICES.

       (a) Elimination of Limitations on Amount of Separation 
     Pay.--Section 9 of the Coast and Geodetic Survey Commissioned 
     Officers' Act of 1948 (33 U.S.C. 853h) is amended--
       (1) in subsection (b)(1), by striking out ``, or $30,000, 
     whichever is less'';
       (2) in subsection (b)(2), by striking out ``, but in no 
     event more than $15,000''; and
       (3) in subsection (d), by striking out ``(1)'', and by 
     striking out paragraph (2).
       (b) Waiver of Recoupment of Amounts Withheld for Tax 
     Purposes From Certain Separation Pay.--Section 9(e)(2) of the 
     Coast and Geodetic Survey Commissioned Officers' Act of 1948 
     (33 U.S.C. 853h(e)(2)) is amended in the first sentence by 
     inserting before the period at the end the following: ``, 
     less the amount of Federal income tax withheld from such pay 
     (such withholding being at the flat withholding rate for 
     Federal income tax withholding, as in effect pursuant to 
     regulations prescribed under chapter 24 of the Internal 
     Revenue Code of 1986)''.
       (c) Effective Date and Application.--The amendments made by 
     this section shall take effect as of October 1, 1997, and 
     shall apply to payments of separation pay that are made after 
     September 30, 1997.

     SEC. 653. ELIGIBILITY OF PUBLIC HEALTH SERVICE OFFICERS AND 
                   NOAA COMMISSIONED CORPS OFFICERS FOR 
                   REIMBURSEMENT OF ADOPTION EXPENSES.

       (a) Public Health Service.--Section 221(a) of the Public 
     Health Service Act (42 U.S.C. 213a(a)) is amended by adding 
     at the end the following new paragraph:
       ``(16) Section 1052, Reimbursement for adoption 
     expenses.''.
       (b) National Oceanic and Atmospheric Administration.--
     Section 3(a) of the Act of August 10, 1956 (33 U.S.C. 
     857a(a)), is amended by adding at the end the following new 
     paragraph:
       ``(16) Section 1052, Reimbursement for adoption 
     expenses.''.
       (c) Prospective Applicability.--The amendments made by this 
     section shall apply only to adoptions that are completed on 
     or after the date of the enactment of this Act.

     SEC. 654. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES 
                   TO WORLD WAR II VETERANS WHO SERVED AS 
                   GUERRILLA FIGHTERS IN THE PHILIPPINES.

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

     SEC. 655. SUBSISTENCE OF MEMBERS OF THE ARMED FORCES ABOVE 
                   THE POVERTY LEVEL.

       (a) Study and Report.--(1) The Secretary of Defense shall 
     conduct a study of members of the Armed Forces and their 
     families who subsist at, near, or below the poverty level. 
     The study shall include the following:
       (A) An analysis of potential solutions for ensuring that 
     members of the Armed Forces and their families do not have to 
     subsist at, near, or below the poverty level, including 
     potential solutions involving changes in the system of 
     allowances for members.
       (B) Identification of the military populations most likely 
     to need income support under Federal Government programs, 
     including--
       (i) the populations living in areas of the United States 
     where housing costs are notably high;
       (ii) the populations living outside the United States; and
       (iii) the number of persons in each identified population.
       (C) The desirability of increasing rates of basic pay and 
     allowances for members over a defined period of years by a 
     range of percentages that provides for higher percentage 
     increases for lower ranking members than for higher ranking 
     members.
       (2) Not later than 180 days after the date of the enactment 
     of this Act, the Secretary of Defense shall submit to 
     Congress a report containing the results of the study and 
     such recommendations as the Secretary considers to be 
     appropriate.
       (b) Implementation of Department of Defense Special 
     Supplemental Food Program for Personnel Outside the United 
     States.--(1) Subsection (b) of section 1060a of title 10, 
     United States Code, is amended to read as follows:
       ``(b) Federal Payments and Commodities.--For the purpose of 
     obtaining Federal payments and commodities in order to carry 
     out the program referred to in subsection (a), the Secretary 
     of Agriculture shall make available to the Secretary of 
     Defense the same payments and commodities as are made for the 
     special supplemental food program in the United States under 
     section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1786). The Secretary of Defense may use funds available for 
     the Department of Defense to carry out the program under 
     subsection (a).''.
       (2) Not later than 90 days after the date of the enactment 
     of this Act, the Secretary of Defense shall submit to 
     Congress a report regarding the intentions of the Secretary 
     regarding implementation of the program authorized under 
     section 1060a of title 10, United States Code, including any 
     plans to implement the program.
                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Expansion of retiree dental insurance plan to include 
              surviving spouse and child dependents of certain deceased 
              members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
Sec. 703. Study concerning the provision of comparative information.

                      Subtitle B--TRICARE Program

Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.

          Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Implementation of designated provider agreements for 
              Uniformed Services Treatment Facilities.
Sec. 722. Continued acquisition of reduced-cost drugs.
Sec. 723. Limitation on total payments.

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

Sec. 731. Improvements in health care coverage and access for members 
              assigned to certain duty locations far from sources of 
              care.
Sec. 732. Waiver or reduction of copayments under overseas dental 
              program.
Sec. 733. Premium collection requirements for medical and dental 
              insurance programs; extension of deadline for 
              implementation of dental insurance program for military 
              retirees.
Sec. 734. Dental insurance plan coverage for retirees of the Public 
              Health Service and NOAA.
Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for 
              services.
Sec. 736. Use of personal services contracts for provision of health 
              care services and legal protection for providers.
Sec. 737. Portability of State licenses for Department of Defense 
              health care professionals.

[[Page H9127]]

Sec. 738. Standard form and requirements regarding claims for payment 
              for services.
Sec. 739. Chiropractic health care demonstration program.

                       Subtitle E--Other Matters

Sec. 741. Continued admission of civilians as students in physician 
              assistant training program of Army Medical Department.
Sec. 742. Payment for emergency health care overseas for military and 
              civilian personnel of the On-Site Inspection Agency.
Sec. 743. Authority for agreement for use of medical resource facility, 
              Alamogordo, New Mexico.
Sec. 744. Disclosures of cautionary information on prescription 
              medications.
Sec. 745. Competitive procurement of certain ophthalmic services.
Sec. 746. Comptroller General study of adequacy and effect of maximum 
              allowable charges for physicians under CHAMPUS.
Sec. 747. Comptroller General study of Department of Defense pharmacy 
              programs.
Sec. 748. Comptroller General study of Navy graduate medical education 
              program.
Sec. 749. Study of expansion of pharmaceuticals by mail program to 
              include additional Medicare-eligible covered 
              beneficiaries.
Sec. 750. Comptroller General study of requirement for military medical 
              facilities in National Capital Region.
Sec. 751. Report on policies and programs to promote healthy lifestyles 
              for members of the Armed Forces and their dependents.
Sec. 752. Sense of Congress regarding quality health care for retirees.

                    Subtitle F--Persian Gulf Illness

Sec. 761. Definitions.
Sec. 762. Plan for health care services for Persian Gulf veterans.
Sec. 763. Comptroller General study of revised disability criteria for 
              physical evaluation boards.
Sec. 764. Medical care for certain reserves who served in Southwest 
              Asia during the Persian Gulf War.
Sec. 765. Improved medical tracking system for members deployed 
              overseas in contingency or combat operations.
Sec. 766. Notice of use of investigational new drugs or drugs 
              unapproved for their applied use.
Sec. 767. Report on plans to track location of members in a theater of 
              operations.
Sec. 768. Sense of Congress regarding the deployment of specialized 
              units for detecting and monitoring chemical, biological, 
              and similar hazards in a theater of operations.
Sec. 769. Report on effectiveness of research efforts regarding Gulf 
              War illnesses.
Sec. 770. Persian Gulf illness clinical trials program.
Sec. 771. Sense of Congress concerning Gulf War illness.
                    Subtitle A--Health Care Services

     SEC. 701. EXPANSION OF RETIREE DENTAL INSURANCE PLAN TO 
                   INCLUDE SURVIVING SPOUSE AND CHILD DEPENDENTS 
                   OF CERTAIN DECEASED MEMBERS.

       Section 1076c(b)(4) of title 10, United States Code, is 
     amended--
       (1) in subparagraph (A)--
       (A) by striking out ``dies'' and inserting in lieu thereof 
     ``died''; and
       (B) by striking out ``or'' at the end of the subparagraph;
       (2) by striking out the period at the end of subparagraph 
     (B) and inserting in lieu thereof ``; or''; and
       (3) by adding at the end the following new subparagraph:
       ``(C) who died while on active duty for a period of more 
     than 30 days and whose eligible dependents are not eligible, 
     or no longer eligible, for dental benefits under section 
     1076a of this title pursuant to subsection (i)(2) of such 
     section.''.

     SEC. 702. PROVISION OF PROSTHETIC DEVICES TO COVERED 
                   BENEFICIARIES.

       (a) Inclusion Among Authorized Care.--Subsection (a) of 
     section 1077 of title 10, United States Code, is amended by 
     adding at the end the following new paragraph:
       ``(15) Prosthetic devices, as determined by the Secretary 
     of Defense to be necessary because of significant conditions 
     resulting from trauma, congenital anomalies, or disease.''.
       (b) Conforming Amendment.--Subsection (b) of such section 
     is amended by striking out paragraph (2) and inserting in 
     lieu thereof the following new paragraph:
       ``(2) Hearing aids, orthopedic footwear, and spectacles, 
     except that, outside of the United States and at stations 
     inside the United States where adequate civilian facilities 
     are unavailable, such items may be sold to dependents at cost 
     to the United States.''.

     SEC. 703. STUDY CONCERNING THE PROVISION OF COMPARATIVE 
                   INFORMATION.

       (a) Study.--The Secretary of Defense shall conduct a study 
     concerning the provision of the information described in 
     subsection (b) to beneficiaries under the TRICARE program 
     established under the authority of chapter 55 of title 10, 
     United States Code, and prepare and submit to Congress a 
     report concerning such study.
       (b) Provision of Comparative Information.--Information 
     described in this subsection, with respect to a managed care 
     entity that contracts with the Secretary of Defense to 
     provide medical assistance under the program described in 
     subsection (a), shall include the following:
       (1) The benefits covered by the entity involved, 
     including--
       (A) covered items and services beyond those provided under 
     a traditional fee-for-service program;
       (B) any beneficiary cost sharing; and
       (C) any maximum limitations on out-of-pocket expenses.
       (2) The net monthly premium, if any, under the entity.
       (3) The service area of the entity.
       (4) To the extent available, quality and performance 
     indicators for the benefits under the entity (and how they 
     compare to such indicators under the traditional fee-for-
     service programs in the area involved), including--
       (A) disenrollment rates for enrollees electing to receive 
     benefits through the entity for the previous two years 
     (excluding disenrollment due to death or moving outside the 
     service area of the entity);
       (B) information on enrollee satisfaction;
       (C) information on health process and outcomes;
       (D) grievance procedures;
       (E) the extent to which an enrollee may select the health 
     care provider of their choice, including health care 
     providers within the network of the entity and out-of-network 
     health care providers (if the entity covers out-of-network 
     items and services); and
       (F) an indication of enrollee exposure to balance billing 
     and the restrictions on coverage of items and services 
     provided to such enrollee by an out-of-network health care 
     provider.
       (5) Whether the entity offers optional supplemental 
     benefits and the terms and conditions (including premiums) 
     for such coverage.
       (6) An overall summary description as to the method of 
     compensation of participating physicians.
                      Subtitle B--Tricare Program

     SEC. 711. ADDITION OF DEFINITION OF TRICARE PROGRAM TO TITLE 
                   10.

       Section 1072 of title 10, United States Code, is amended by 
     adding at the end the following new paragraph:
       ``(7) The term `TRICARE program' means the managed health 
     care program that is established by the Department of Defense 
     under the authority of this chapter, principally section 1097 
     of this title, and includes the competitive selection of 
     contractors to financially underwrite the delivery of health 
     care services under the Civilian Health and Medical Program 
     of the Uniformed Services.''.

     SEC. 712. PLAN FOR EXPANSION OF MANAGED CARE OPTION OF 
                   TRICARE PROGRAM.

       (a) Plan For Expansion of TRICARE Prime.--The Secretary of 
     Defense shall prepare a plan for the expansion of the managed 
     care option of the TRICARE Program, known as TRICARE Prime, 
     into areas of the United States located outside of the 
     catchment areas of medical treatment facilities of the 
     uniformed services, but in which the managed care option is a 
     cost-effective alternative because of--
       (1) the significant number of members of the uniformed 
     services and covered beneficiaries under chapter 55 of title 
     10, United States Code (including retired members of the 
     Armed Forces and their dependents), who reside in the areas; 
     and
       (2) the presence in the areas of sufficient nonmilitary 
     health care provider networks.
       (b) Alternatives.--As an alternative to expansion of 
     TRICARE Prime to areas of the United States in which there 
     are few or no nonmilitary health care provider networks, the 
     Secretary shall include in the plan required under subsection 
     (a) an evaluation of the feasibility and cost-effectiveness 
     of providing a member of the Armed Forces on active duty who 
     is stationed in such an area, or whose dependents reside in 
     such an area, with one or both of the following:
       (1) A monetary stipend to assist the member in obtaining 
     health care services for the member or the member's 
     dependents.
       (2) A reduction in the cost-sharing requirements applicable 
     to the TRICARE program options otherwise available to the 
     member to match the reduced cost-sharing responsibilities of 
     the managed care option of the TRICARE program.
       (c) Submission of Plan.--Not later than March 1, 1998, the 
     Secretary shall submit to Congress the plan required under 
     subsection (a).
          Subtitle C--Uniformed Services Treatment Facilities

     SEC. 721. IMPLEMENTATION OF DESIGNATED PROVIDER AGREEMENTS 
                   FOR UNIFORMED SERVICES TREATMENT FACILITIES.

       (a) Commencement of Health Care Services Under Agreement.--
     Subsection (c) of section 722 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201, 
     10 U.S.C. 1073 note) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B);
       (2) by inserting ``(1)'' before ``Unless''; and
       (3) by adding at the end the following new paragraph:
       ``(2) The Secretary may modify the effective date 
     established under paragraph (1) for an agreement to permit a 
     transition period of not more than six months between the 
     date on which the agreement is executed by the parties and 
     the date on which the designated provider commences the 
     delivery of health care services under the agreement.''.
       (b) Temporary Continuation of Existing Participation 
     Agreements.--Subsection (d) of such section is amended by 
     inserting before the period at the end the following: ``, 
     including any transitional period provided by the Secretary 
     under paragraph (2) of such subsection''.

[[Page H9128]]

     SEC. 722. CONTINUED ACQUISITION OF REDUCED-COST DRUGS.

       Section 722 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is 
     amended by adding at the end the following new subsection:
       ``(g) Continued Acquisition of Reduced-Cost Drugs.--A 
     designated provider shall be treated as part of the 
     Department of Defense for purposes of section 8126 of title 
     38, United States Code, in connection with the provision by 
     the designated provider of health care services to covered 
     beneficiaries pursuant to the participation agreement of the 
     designated provider under section 718(c) of the National 
     Defense Authorization Act for Fiscal Year 1991 (Public Law 
     101-510; 42 U.S.C. 248c note) or pursuant to the agreement 
     entered into under subsection (b).''.

     SEC. 723. LIMITATION ON TOTAL PAYMENTS.

       Section 726(b) of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 1073 
     note) is amended by adding at the end the following new 
     sentence: ``In establishing the ceiling rate for enrollees 
     with the designated providers who are also eligible for the 
     Civilian Health and Medical Program of the Uniformed 
     Services, the Secretary of Defense shall take into account 
     the health status of the enrollees.''.
   Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

     SEC. 731. IMPROVEMENTS IN HEALTH CARE COVERAGE AND ACCESS FOR 
                   MEMBERS ASSIGNED TO CERTAIN DUTY LOCATIONS FAR 
                   FROM SOURCES OF CARE.

       (a) Supplemental Care Program.--(1) Section 1074(c) of 
     title 10, United States Code, is amended--
       (A) by inserting ``(1)'' after ``(c)''; and
       (B) by adding at the end the following new paragraphs:
       ``(2)(A) Subject to such exceptions as the Secretary of 
     Defense considers necessary, coverage for medical care for 
     members of the armed forces under this subsection, and 
     standards with respect to timely access to such care, shall 
     be comparable to coverage for medical care and standards for 
     timely access to such care under the managed care option of 
     the TRICARE program known as TRICARE Prime.
       ``(B) The Secretary of Defense shall enter into 
     arrangements with contractors under the TRICARE program or 
     with other appropriate contractors for the timely and 
     efficient processing of claims under this subsection.
       ``(3)(A) The Secretary of Defense may not require a member 
     of the armed forces described in subparagraph (B) to receive 
     routine primary medical care at a military medical treatment 
     facility.
       ``(B) A member referred to in subparagraph (A) is a member 
     of the armed forces on active duty who is entitled to medical 
     care under this subsection and who--
       ``(i) receives a duty assignment described in subparagraph 
     (C); and
       ``(ii) pursuant to the assignment of such duty, resides at 
     a location that is more than 50 miles, or approximately one 
     hour of driving time, from the nearest military medical 
     treatment facility adequate to provide the needed care.
       ``(C) A duty assignment referred to in subparagraph (B) 
     means any of the following:
       ``(i) Permanent duty as a recruiter.
       ``(ii) Permanent duty at an educational institution to 
     instruct, administer a program of instruction, or provide 
     administrative services in support of a program of 
     instruction for the Reserve Officers' Training Corps.
       ``(iii) Permanent duty as a full-time adviser to a unit of 
     a reserve component.
       ``(iv) Any other permanent duty designated by the Secretary 
     concerned for purposes of this paragraph.''.
       (2) The amendments made by paragraph (1) shall apply with 
     respect to coverage of medical care for, and the provision of 
     such care to, a member of the Armed Forces under section 
     1074(c) of title 10, United States Code, on and after the 
     later of the following:
       (A) April 1, 1998.
       (B) The date on which the TRICARE program is in place in 
     the service area of the member.
       (b) Temporary Authority for Managed Care Expansion to 
     Members on Active Duty at Certain Remote Locations.--(1) A 
     member of the Armed Forces described in subsection (c) is 
     entitled to receive care under the Civilian Health and 
     Medical Program of the Uniformed Services. In connection with 
     such care, the Secretary of Defense shall waive the 
     obligation of the member to pay a deductible, copayment, or 
     annual fee that would otherwise be applicable under that 
     program for care provided to the members under the program.
       (2) A member who is entitled under paragraph (1) to receive 
     health care services under CHAMPUS shall receive such care 
     from a network provider under the TRICARE program if such a 
     provider is available in the service area of the member.
       (3) Paragraph (1) shall take effect on the date of the 
     enactment of this Act and shall expire with respect to a 
     member upon the later of the following:
       (A) The date that is one year after the date of the 
     enactment of this Act.
       (B) The date on which the amendments made by subsection (a) 
     apply with respect to the coverage of medical care for, and 
     provision of such care to, the member.
       (c) Eligible Members.--A member referred to in subsection 
     (b) is a member of the Armed Forces on active duty who--
       (1) receives a duty assignment described in subsection (d); 
     and
       (2) pursuant to the assignment of such duty, resides at a 
     location that is more than 50 miles, or approximately one 
     hour of driving time, from--
       (A) the nearest health care facility of the uniformed 
     services adequate to provide the needed care under chapter 55 
     of title 10, United States Code; and
       (B) the nearest source of the needed care that is available 
     to the member under the TRICARE Prime plan.
       (d) Duty Assignments Covered.--A duty assignment referred 
     to in subsection (c)(1) means any of the following:
       (1) Permanent duty as a recruiter.
       (2) Permanent duty at an educational institution to 
     instruct, administer a program of instruction, or provide 
     administrative services in support of a program of 
     instruction for the Reserve Officers' Training Corps.
       (3) Permanent duty as a full-time adviser to a unit of a 
     reserve component of the Armed Forces.
       (4) Any other permanent duty designated by the Secretary 
     concerned for purposes of this subsection.
       (e) Payment of Costs.--Deductibles, copayments, and annual 
     fees not payable by a member by reason of a waiver granted 
     under the regulations prescribed pursuant to subsection (b) 
     shall be paid out of funds available to the Department of 
     Defense for the Defense Health Program.
       (f) Definitions.--In this section:
       (1) The term ``TRICARE program'' has the meaning given that 
     term in section 1072(7) of title 10, United States Code.
       (2) The term ``TRICARE Prime plan'' means a plan under the 
     TRICARE program that provides for the voluntary enrollment of 
     persons for the receipt of health care services to be 
     furnished in a manner similar to the manner in which health 
     care services are furnished by health maintenance 
     organizations.

     SEC. 732. WAIVER OR REDUCTION OF COPAYMENTS UNDER OVERSEAS 
                   DENTAL PROGRAM.

       Section 1076a(h) of title 10, United States Code, is 
     amended--
       (1) in the first sentence, by striking out ``Secretary'' 
     and inserting in lieu thereof ``Secretary of Defense''; and
       (2) by adding at the end the following new sentence: ``In 
     the case of such an overseas dental plan, the Secretary may 
     waive or reduce the copayments otherwise required by 
     subsection (e) to the extent the Secretary determines 
     appropriate for the effective and efficient operation of the 
     plan.''.

     SEC. 733. PREMIUM COLLECTION REQUIREMENTS FOR MEDICAL AND 
                   DENTAL INSURANCE PROGRAMS; EXTENSION OF 
                   DEADLINE FOR IMPLEMENTATION OF DENTAL INSURANCE 
                   PROGRAM FOR MILITARY RETIREES.

       (a) Premium Collection For Selected Reserve Dental 
     Insurance.--Paragraph (3) of section 1076b(b) of title 10, 
     United States Code, is amended to read as follows:
       ``(3) The Secretary of Defense shall establish procedures 
     for the collection of the member's share of the premium for 
     coverage by the dental insurance plan. To the maximum extent 
     practicable, a member's share shall be deducted and withheld 
     from the basic pay payable to the member for inactive duty 
     training or basic pay payable to the member for active duty 
     (if pay is available to the member). Such share shall be used 
     to pay the premium for coverage by the dental insurance 
     plan.''.
       (b) Premium Collection For Retiree Dental Insurance Plan.--
     Paragraph (2) of section 1076c(c) of such title is amended to 
     read as follows:
       ``(2) The Secretary of Defense shall establish procedures 
     for the collection of the premiums charged for coverage by 
     the dental insurance plan. To the maximum extent practicable, 
     the premiums payable by a member entitled to retired pay 
     shall be deducted and withheld from the retired pay of the 
     member (if pay is available to the member).''.
       (c) Report to Congress.--Not later than March 1, 1998, the 
     Secretary of Defense shall submit to Congress a report on the 
     premium collection procedures established pursuant to 
     paragraph (3) of section 1076b(b) of title 10, United States 
     Code, and paragraph (2) of section 1076c(c) of such title. 
     The report shall describe the extent to which premium 
     collections are made under such paragraphs through deductions 
     and withholding from pay.
       (d) Limitation on Implementation of Alternative Collection 
     Procedures.--The Secretary of Defense may not implement 
     procedures for collecting premiums under section 1076b(b)(3) 
     of title 10, United States Code, or section 1076c(c)(2) of 
     such title other than by deductions and withholding from pay 
     until 120 days after the date that the Secretary submits a 
     report to Congress describing the justifications for 
     implementing such alternative procedures.
       (e) Extension of Deadline For Implementation of Dental 
     Insurance Plan For Military Retirees.--Section 703(b) of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2590) is amended by striking 
     ``October 1, 1997'' and inserting ``April 1, 1998''.

     SEC. 734. DENTAL INSURANCE PLAN COVERAGE FOR RETIREES OF THE 
                   PUBLIC HEALTH SERVICE AND NOAA.

       (a) Eligibility.--(1) Subsection (a) of section 1076c of 
     title 10, United States Code, is amended by striking out 
     ``military retirees'' and inserting in lieu thereof 
     ``retirees of the uniformed services''.
       (2) Subsection (b)(1) of such section is amended by 
     striking out ``Armed Forces'' and inserting in lieu thereof 
     ``uniformed services''.
       (b) Officials Responsible.--(1) Subsection (a) of such 
     section (as amended by subsection (a)) is further amended by 
     inserting ``, in consultation with the other administering 
     Secretaries,'' after ``Secretary of Defense''.
       (2) Subsection (h) of such section is amended by striking 
     out ``Secretary of Transportation''

[[Page H9129]]

     and inserting in lieu thereof ``other administering 
     Secretaries''.

     SEC. 735. CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT 
                   RATES FOR SERVICES.

       (a) Conformity Between Rates.--Section 1079(h) of title 10, 
     United States Code, is amended by striking out paragraphs 
     (1), (2), and (3) and inserting in lieu thereof the following 
     new paragraph:
       ``(1) Except as provided in paragraphs (2) and (3), payment 
     for a charge for services by an individual health care 
     professional (or other noninstitutional health care provider) 
     for which a claim is submitted under a plan contracted for 
     under subsection (a) shall be equal to an amount determined 
     to be appropriate, to the extent practicable, in accordance 
     with the same reimbursement rules as apply to payments for 
     similar services under title XVIII of the Social Security Act 
     (42 U.S.C. 1395 et seq.). The Secretary of Defense shall 
     determine the appropriate payment amount under this paragraph 
     in consultation with the other administering Secretaries.''.
       (b) Reduced Rates Authorized.--Paragraph (5) of such 
     section is amended by adding at the end the following new 
     sentence: ``With the consent of the health care provider, the 
     Secretary is also authorized to reduce the authorized payment 
     for certain health care services below the amount otherwise 
     required by the payment limitations under paragraph (1).''.
       (c) Conforming Amendments.--Such section is further 
     amended--
       (1) in paragraph (5), by striking out ``paragraph (4), the 
     Secretary'' and inserting in lieu thereof ``paragraph (2), 
     the Secretary of Defense''; and
       (2) by redesignating paragraphs (4), (5), and (6) as 
     paragraphs (2), (3), and (4), respectively.

     SEC. 736. USE OF PERSONAL SERVICES CONTRACTS FOR PROVISION OF 
                   HEALTH CARE SERVICES AND LEGAL PROTECTION FOR 
                   PROVIDERS.

       (a) Use of Contracts Outside Medical Treatment 
     Facilities.--Section 1091(a) of title 10, United States Code, 
     is amended--
       (1) by inserting ``(1)'' before ``The Secretary of 
     Defense''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary of Defense, and the Secretary of 
     Transportation with respect to the Coast Guard when it is not 
     operating as a service in the Navy, may also enter into 
     personal services contracts to carry out other health care 
     responsibilities of the Secretary (such as the provision of 
     medical screening examinations at Military Entrance 
     Processing Stations) at locations outside medical treatment 
     facilities, as determined necessary pursuant to regulations 
     prescribed by the Secretary. The Secretary may not enter into 
     a contract under this paragraph after the end of the one-year 
     period beginning on the date of the enactment of this 
     paragraph.''.
       (b) Defense of Suits.--Section 1089 of such title is 
     amended--
       (1) in subsection (a), by adding at the end the following 
     new sentence: ``This subsection shall also apply if the 
     physician, dentist, nurse, pharmacist, or paramedical or 
     other supporting personnel (or the estate of such person) 
     involved is serving under a personal services contract 
     entered into under section 1091 of this title.''; and
       (2) in subsection (f)--
       (A) by inserting ``(1)'' after ``(f)''; and
       (B) by adding at the end the following new paragraph:
       ``(2) With respect to the Secretary of Defense and the 
     Armed Forces Retirement Home Board, the authority provided by 
     paragraph (1) also includes the authority to provide for 
     reasonable attorney's fees for persons described in 
     subsection (a), as determined necessary pursuant to 
     regulations prescribed by the head of the agency 
     concerned.''.
       (c) Report.--Not later than March 31, 1998, the Secretary 
     of Defense shall submit to Congress a report on the feasible 
     alternative means for performing the medical screening 
     examinations that are routinely performed at Military 
     Entrance Processing Stations. The report shall contain a 
     discussion of the feasibility and cost of the use of--
       (1) the TRICARE system for the performance of the 
     examinations; and
       (2) each other alternative identified in the report.

     SEC. 737. PORTABILITY OF STATE LICENSES FOR DEPARTMENT OF 
                   DEFENSE HEALTH CARE PROFESSIONALS.

       Section 1094 of title 10, United States Code, is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following new 
     subsection:
       ``(d)(1) Notwithstanding any law regarding the licensure of 
     health care providers, a health-care professional described 
     in paragraph (2) may practice the health profession or 
     professions of the health-care professional in any State, the 
     District of Columbia, or a Commonwealth, territory, or 
     possession of the United States, regardless of whether the 
     practice occurs in a health care facility of the Department 
     of Defense, a civilian facility affiliated with the 
     Department of Defense, or any other location authorized by 
     the Secretary of Defense .
       ``(2) A health-care professional referred to in paragraph 
     (1) is a member of the armed forces who--
       ``(A) has a current license to practice medicine, 
     osteopathic medicine, dentistry, or another health 
     profession; and
       ``(B) is performing authorized duties for the Department of 
     Defense.''.

     SEC. 738. STANDARD FORM AND REQUIREMENTS REGARDING CLAIMS FOR 
                   PAYMENT FOR SERVICES.

       (a) Clarification of Existing Requirements.--Section 1106 
     of title 10, United States Code, is amended to read as 
     follows:

     ``Sec. 1106. Submittal of claims: standard form; time limits

       ``(a) Standard Form.--The Secretary of Defense, after 
     consultation with the other administering Secretaries, shall 
     prescribe by regulation a standard form for the submission of 
     claims for the payment of health care services provided under 
     this chapter.
       ``(b) Time for Submission.--A claim for payment for 
     services provided under this chapter shall be submitted as 
     provided in such regulations not later than one year after 
     the services are provided.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 55 of title 10, United States Code, is 
     amended by striking out the item relating to section 1106 and 
     inserting in lieu thereof the following new item:

``1106. Submittal of claims: standard form; time limits.''.

     SEC. 739. CHIROPRACTIC HEALTH CARE DEMONSTRATION PROGRAM.

       (a) Two-Year Extension.--Subsection (b) of section 731 of 
     the National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 10 U.S.C. 1092 note) is amended by 
     striking out ``1997'' and inserting in lieu thereof ``1999''.
       (b) Expansion to at Least Three Additional Treatment 
     Facilities.--Subsection (a)(2)(A) of such section is amended 
     by striking out ``not less than 10'' and inserting in lieu 
     thereof ``the National Naval Medical Center, the Walter Reed 
     Army Medical Center, and not less than 11 other''.
       (c) Reports.--Subsection (c) of such section is amended--
       (1) by striking paragraph (3); and
       (2) by adding at the end the following new paragraphs:
       ``(3) Not later than January 30, 1998, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report that identifies the 
     additional treatment facilities designated to furnish 
     chiropractic care under the program that were not so 
     designated before the report required by paragraph (1) was 
     prepared, together with the plan for the conduct of the 
     program at the additional treatment facilities.
       ``(4) Not later than May 1, 1998, the Secretary of Defense 
     shall modify the plan for evaluating the program submitted 
     pursuant to paragraph (2) in order to provide for the 
     evaluation of the program at all of the designated treatment 
     facilities under the program, including the treatment 
     facilities referred to in paragraph (3).
       ``(5) Not later than May 1, 2000, the Secretary shall 
     submit to the committees referred to in paragraph (3) a final 
     report in accordance with the plan submitted pursuant to 
     paragraph (2).''.
                       Subtitle E--Other Matters

     SEC. 741. CONTINUED ADMISSION OF CIVILIANS AS STUDENTS IN 
                   PHYSICIAN ASSISTANT TRAINING PROGRAM OF ARMY 
                   MEDICAL DEPARTMENT.

       (a) Civilian Attendance.--(1) Chapter 407 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 4416. Academy of Health Sciences: admission of 
       civilians in physician assistant training program

       ``(a) In General.--The Secretary of the Army may, pursuant 
     to an agreement entered into with an accredited institution 
     of higher education--
       ``(1) permit students of the institution to attend the 
     didactic portion of the physician assistant training program 
     conducted by the Army Medical Department at the Academy of 
     Health Sciences at Fort Sam Houston, Texas; and
       ``(2) accept from the institution academic services to 
     support the physician assistant training program at the 
     Academy.
       ``(b) Agreement for Exchange of Services.--An agreement 
     entered into with an institution of higher education under 
     this section shall require the institution, in exchange for 
     services provided under paragraph (1) of subsection (a), to 
     provide academic services described in paragraph (2) of such 
     subsection that the Secretary and authorized representatives 
     of the institution consider appropriate.
       ``(c) Selection of Students.--In consultation with the 
     authorized representatives of the institution of higher 
     education concerned, the Secretary shall prescribe the 
     qualifications and methods of selection for students of the 
     institution to receive instruction at the Academy under this 
     section. The qualifications shall be comparable to those 
     generally required for admission to the physician assistant 
     training program at the Academy.
       ``(d) Rules of Attendance.--Except as the Secretary 
     determines necessary, a student who receives instruction at 
     the Academy under this section shall be subject to the same 
     regulations governing attendance, discipline, discharge, and 
     dismissal as apply to other persons attending the Academy.
       ``(e) Limitations.--The Secretary shall ensure the 
     following:
       ``(1) That the Army Medical Department, in carrying out an 
     agreement under this section, does not incur costs in excess 
     of the costs that the department would incur to obtain, by 
     means other than the agreement, academic services that are 
     comparable to those provided by the institution pursuant to 
     the agreement.
       ``(2) That attendance of civilian students at the Academy 
     under this section does not cause a decrease in the number of 
     members of the armed forces enrolled in the physician 
     assistant training program at the Academy.
       ``(f) Annual Report.--(1) Each year, the Secretary shall 
     submit to Congress a report on the exchange of services under 
     this section during the year. The report shall contain the 
     following:
       ``(A) The number of civilian students who receive 
     instruction at the Academy under this section.

[[Page H9130]]

       ``(B) An assessment of the benefits derived by the United 
     States.
       ``(2) Reports are required under paragraph (1) only for 
     years during which an agreement is in effect under this 
     section.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``4416. Academy of Health Sciences: admission of civilians in physician 
              assistant training program.''.
       (b) Effect on Existing Demonstration Program.--An agreement 
     entered into under the demonstration program for the 
     admission of civilians as physician assistant students at the 
     Academy of Health Sciences, Fort Sam Houston, Texas, 
     established pursuant to section 732 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
     108 Stat. 2810) shall be treated as an agreement entered into 
     under section 4416 of title 10, United States Code (as added 
     by subsection (a)). The agreement may be extended in such 
     manner and for such period as the parties to the agreement 
     consider appropriate consistent with section 4416.

     SEC. 742. PAYMENT FOR EMERGENCY HEALTH CARE OVERSEAS FOR 
                   MILITARY AND CIVILIAN PERSONNEL OF THE ON-SITE 
                   INSPECTION AGENCY.

       (a) Payment of Costs.--The Secretary of Defense may pay the 
     costs of any emergency health care that--
       (1) is needed by a member of the Armed Forces, civilian 
     employee of the Department of Defense, or civilian employee 
     of a contractor operating under a contract with the 
     Department of Defense while the member or employee is 
     performing temporary or permanent duty with the On-Site 
     Inspection Agency outside the United States; and
       (2) is furnished to such person during fiscal year 1998 by 
     a source outside the United States.
       (b) Funding.--Funds authorized to be appropriated for the 
     expenses of the On-Site Inspection Agency for fiscal year 
     1998 by this Act shall be available to cover payments for 
     emergency health care provided under subsection (a).

     SEC. 743. AUTHORITY FOR AGREEMENT FOR USE OF MEDICAL RESOURCE 
                   FACILITY, ALAMOGORDO, NEW MEXICO.

       (a) Authority.--(1) The Secretary of the Air Force may 
     enter into an agreement with Gerald Champion Hospital, 
     Alamogordo, New Mexico, under which the Secretary may furnish 
     health care services to eligible individuals in a medical 
     resource facility in Alamogordo, New Mexico, that is 
     constructed and equipped, in part, using funds provided by 
     the Secretary under the agreement.
       (2) For purposes of this section:
       (A) The term ``eligible individual'' means any individual 
     eligible for medical and dental care under chapter 55 of 
     title 10, United States Code, including any member of the 
     uniformed services entitled to such care under section 
     1074(a) of that title.
       (B) The terms ``medical resource facility'' and 
     ``facility'' mean the medical resource facility to be 
     constructed and equipped pursuant to the agreement authorized 
     by paragraph (1).
       (C) The term ``Hospital'' means Gerald Champion Hospital, 
     Alamogordo, New Mexico.
       (b) Content of Agreement.--Any agreement entered into under 
     subsection (a) shall specify, at a minimum, the following:
       (1) The relationship between the Hospital and the Secretary 
     of the Air Force in the provision of health care services to 
     eligible individuals in the medical resource facility, 
     including--
       (A) whether or not the Secretary and the Hospital are to 
     use and administer the facility jointly or independently; and
       (B) under what circumstances the Hospital is to act as a 
     provider of health care services under the managed care 
     option of the TRICARE program known as TRICARE Prime.
       (2) Matters relating to the administration of the 
     agreement, including--
       (A) the duration of the agreement;
       (B) the rights and obligations of the Secretary and the 
     Hospital under the agreement, including any contracting or 
     grievance procedures applicable under the agreement;
       (C) the types of care to be provided to eligible 
     individuals under the agreement, including the cost to the 
     Department of the Air Force of providing the care to eligible 
     individuals during the term of the agreement;
       (D) the access of Air Force medical personnel to the 
     facility under the agreement;
       (E) the rights and responsibilities of the Secretary and 
     the Hospital upon termination of the agreement; and
       (F) any other matters jointly identified by the Secretary 
     and the Hospital.
       (3) The nature of the arrangement between the Secretary and 
     the Hospital with respect to the ownership of the facility 
     and any property under the agreement, including--
       (A) the nature of that arrangement while the agreement is 
     in force;
       (B) the nature of that arrangement upon termination of the 
     agreement; and
       (C) any requirement for reimbursement of the Secretary by 
     the Hospital as a result of the arrangement upon termination 
     of the agreement.
       (4) The amount of the funds made available under subsection 
     (c) that the Secretary will contribute for the construction 
     and equipping of the facility.
       (5) Any conditions or restrictions relating to the 
     construction, equipping, or use of the facility.
       (c) Availability of Funds for Construction and Equipping of 
     Facility.--(1) Of the amount authorized to be appropriated 
     pursuant to section 301(4) for operation and maintenance for 
     the Air Force, not more than $7,000,000 may be used by the 
     Secretary of the Air Force to make a contribution toward 
     the construction and equipping of the medical resource 
     facility in the event that the Secretary enters into the 
     agreement authorized by subsection (a). Notwithstanding 
     any other provision of law, the Secretary may not use 
     other sources of funds to make a contribution toward the 
     construction or equipping of the facility.
       (2) Notwithstanding subsection (b)(3) regarding the 
     ownership and reimbursement issues to be addressed in the 
     agreement authorized by subsection (a), the Secretary may not 
     contribute funds made available under paragraph (1) toward 
     the construction and equipping of the facility unless the 
     agreement requires, in exchange for the contribution, that 
     the Hospital provide health care services to eligible 
     individuals without charge to the Secretary or at a reduced 
     rate. The value of the services provided by the Hospital 
     shall be at least equal to the amount of the contribution 
     made by the Secretary, and the Hospital shall complete the 
     provision of services equal in value to the Secretary's 
     contribution within seven years after the facility becomes 
     operational. The provision of additional discounted services 
     to be provided by the Hospital shall be included in the 
     agreement. The value and types of services to be provided by 
     the Hospital shall be negotiated in accordance with 
     principles of resource-sharing agreements under the TRICARE 
     program.
       (d) Notice and Wait.--The Secretary of the Air Force may 
     not enter into the agreement authorized by subsection (a) 
     until 90 days after the Secretary of Defense submits to the 
     congressional defense committees the report required by 
     subsection (e).
       (e) Report on Proposed Agreement.--The Secretary of Defense 
     shall submit to Congress a report containing an analysis of, 
     and recommendations regarding, the agreement proposed to be 
     entered into under subsection (a), in particular, the 
     implications of the agreement on regional health care costs 
     and its effect on implementation of the TRICARE program 
     in the region. The report shall also include a copy of the 
     agreement, the results of a cost-benefit analysis 
     conducted by the Secretary of the Air Force with respect 
     to the agreement, and such other information with respect 
     to the agreement as the Secretary of Defense and the 
     Secretary of the Air Force considers appropriate. The 
     cost-benefit analysis shall consider the effects of the 
     agreement on operation and maintenance and military 
     construction requirements at Holloman Air Force Base, New 
     Mexico.
       (f) Subsequent Reports.--If the Secretary of the Air Force 
     enters into the agreement authorized by subsection (a), the 
     Secretary shall submit to Congress an annual report 
     containing a revised cost-benefit analysis of the 
     consequences of the agreement as in effect during the year 
     covered by the report, including a full accounting of any 
     cost savings realized by the Department of the Air Force as a 
     result of the agreement. A report shall be submitted for each 
     year in which the agreement is in effect or until the 
     Hospital provides the full value of health care services 
     required under subsection (c)(2), whichever occurs first.

     SEC. 744. DISCLOSURES OF CAUTIONARY INFORMATION ON 
                   PRESCRIPTION MEDICATIONS.

       (a) Regulations Required.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense, in consultation with the administering Secretaries 
     referred to in section 1073 of title 10, United States Code, 
     shall prescribe regulations to require each source described 
     in subsection (d) that dispenses a prescription medication to 
     a beneficiary under chapter 55 of such title to include with 
     the medication the written cautionary information required by 
     subsection (b).
       (b) Information To Be Disclosed.--Information required to 
     be disclosed about a medication under the regulations shall 
     include appropriate cautions about usage of the medication, 
     including possible side effects and potentially hazardous 
     interactions with foods.
       (c) Form of Information.--The regulations shall require 
     that information be furnished in a form that, to the maximum 
     extent practicable, is easily read and understood.
       (d) Covered Sources.--The regulations shall apply to the 
     following:
       (1) Pharmacies and any other dispensers of prescription 
     medications in medical facilities of the uniformed services.
       (2) Sources of prescription medications under any mail 
     order pharmaceuticals program provided by any of the 
     administering Secretaries under chapter 55 of title 10, 
     United States Code.
       (3) Pharmacies paid under the Civilian Health and Medical 
     Program of the Uniformed Services (including the TRICARE 
     program).
       (4) Pharmacies, and any other pharmaceutical dispensers, of 
     designated providers referred to in section 721(5) of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2593; 10 U.S.C. 1073 note).

     SEC. 745. COMPETITIVE PROCUREMENT OF CERTAIN OPHTHALMIC 
                   SERVICES.

       (a) Competitive Procurement Required.--Beginning not later 
     than October 1, 1998, the Secretary of Defense shall 
     competitively procure from private-sector sources, or other 
     sources outside of the Department of Defense, all ophthalmic 
     services related to the provision of single vision and 
     multivision eyeware for members of the Armed Forces, retired 
     members, and certain covered beneficiaries under chapter 55 
     of title 10, United States Code, who would otherwise receive 
     such ophthalmic services through the Department of Defense.
       (b) Exception.--Subsection (a) shall not apply to the 
     extent that the Secretary of Defense determines that the use 
     of sources within the Department of Defense to provide such 
     ophthalmic services--
       (1) is necessary to meet the readiness requirements of the 
     Armed Forces; or
       (2) is more cost effective.

[[Page H9131]]

       (c) Completion of Existing Orders.--Subsection (a) shall 
     not apply to orders for ophthalmic services received on or 
     before September 30, 1998.

     SEC. 746. COMPTROLLER GENERAL STUDY OF ADEQUACY AND EFFECT OF 
                   MAXIMUM ALLOWABLE CHARGES FOR PHYSICIANS UNDER 
                   CHAMPUS.

       (a) Study Required.--The Comptroller General shall conduct 
     a study regarding the adequacy of the maximum allowable 
     charges for physicians established under the Civilian Health 
     and Medical Program of the Uniformed Services (CHAMPUS) and 
     the effect of such charges on the participation of physicians 
     in CHAMPUS. The study shall include an evaluation of the 
     following:
       (1) The methodology used by the Secretary of Defense to 
     establish maximum allowable charges for physicians under 
     CHAMPUS, and whether such methodology conforms to the 
     requirements of section 1079(h) of title 10, United States 
     Code.
       (2) The differences between the established charges under 
     CHAMPUS and reimbursement rates for similar services under 
     title XVIII of the Social Security Act and other health care 
     programs.
       (3) The basis for physician complaints that the CHAMPUS 
     established charges are too low.
       (4) The difficultly of CHAMPUS in ensuring physician 
     compliance with the CHAMPUS established charges in the 
     absence of legal mechanisms to enforce compliance, and the 
     effect of noncompliance on patient out-of-pocket expenses.
       (5) The effect of the established charges under CHAMPUS on 
     the participation of physicians in CHAMPUS, and the extent 
     and success of Department of Defense efforts to increase 
     physician participation in areas with low participation 
     rates.
       (b) Submission of Report.--Not later than March 1, 1998, 
     the Comptroller General shall submit to Congress a report 
     containing the results of the study required by subsection 
     (a).

     SEC. 747. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE 
                   PHARMACY PROGRAMS.

       (a) Study.--Not later than March 31, 1998, the Comptroller 
     General shall submit to Congress a study evaluating the 
     pharmacy programs of the Department of Defense. The study 
     shall examine the impact of such pharmacy programs on the 
     aggregate cost, quality, and accessibility of health care 
     provided to covered beneficiaries under chapter 55 of title 
     10, United States Code, and shall include an examination of 
     the following:
       (1) The merits and feasibility of establishing a uniform 
     formulary for military treatment facility pharmacies and 
     civilian contractor pharmacy benefit administrators.
       (2) The reasons that military treatment facilities deny 
     covered beneficiaries access to pharmacy care and shift such 
     beneficiaries to other sources of pharmacy care.
       (3) The merits and feasibility of using private sector cost 
     control mechanisms implemented by authorized civilian 
     contractors in the Department of Defense medical programs, 
     and the existence of any barriers to the use of such 
     mechanisms, including factors that may undermine the 
     incentives of such contractors to optimize treatment outcomes 
     in managing the care of covered beneficiaries without 
     exceeding budgeted resources.
       (4) The cost impacts, if any, of the use of commercial 
     managed care methods of furnishing pharmaceuticals to covered 
     beneficiaries by TRICARE program contractors instead of 
     procuring pharmaceuticals at discounted prices pursuant to 
     section 8126 of title 38, United States Code.
       (5) The existence of options for increasing the discounts 
     available to TRICARE program contractors without undermining 
     controls for preventing diversion of items procured by the 
     Department of Defense to nonmilitary populations.
       (b) Response to Study.--Not later than 90 days after the 
     Comptroller General submits to Congress the study required by 
     subsection (a), the Secretary of Defense shall submit to 
     Congress a report on the feasibility and advisability of 
     implementing changes to the pharmacy programs of the 
     Department of Defense based on the findings and conclusions 
     of the study.

     SEC. 748. COMPTROLLER GENERAL STUDY OF NAVY GRADUATE MEDICAL 
                   EDUCATION PROGRAM.

       (a) Study Required.--The Comptroller General shall conduct 
     a study to evaluate the validity of the recommendations made 
     by the Medical Education Policy Council of the Bureau of 
     Medicine and Surgery of the Navy regarding restructuring the 
     graduate medical education program of the Department of the 
     Navy. The study shall specifically address the Council's 
     recommendations relating to residency training conducted at 
     Naval Medical Center, Portsmouth, Virginia, and National 
     Naval Medical Center, Bethesda, Maryland.
       (b) Submission of Report.--Not later than March 1, 1998, 
     the Comptroller General shall submit to Congress and the 
     Secretary of the Navy a report containing the results of the 
     study required by subsection (a).
       (c) Moratorium on Restructuring.--Until the report required 
     by subsection (b) is submitted to Congress, the Secretary of 
     the Navy may not make any change in the types of residency 
     programs conducted under the Navy graduate medical education 
     program or the locations at which such residency programs are 
     conducted or otherwise restructure the Navy graduate medical 
     education program.

     SEC. 749. STUDY OF EXPANSION OF PHARMACEUTICALS BY MAIL 
                   PROGRAM TO INCLUDE ADDITIONAL MEDICARE-ELIGIBLE 
                   COVERED BENEFICIARIES.

       Not later than six months after the date of the enactment 
     of this Act, the Secretary of Defense shall submit to 
     Congress a report regarding the feasibility and advisability 
     of expanding the category of persons eligible to participate 
     in the demonstration project for the purchase of prescription 
     pharmaceuticals by mail, as required by section 702(a) of the 
     National Defense Authorization Act for Fiscal Year 1993 
     (Public Law 102-484; 10 U.S.C. 1079 note), to include persons 
     referred to in subsection (c) of section 1086 of title 10, 
     United States Code, who are covered by subsection (d)(1) of 
     such section and reside in the United States outside of the 
     catchment area of a medical treatment facility of the 
     uniformed services.

     SEC. 750. COMPTROLLER GENERAL STUDY OF REQUIREMENT FOR 
                   MILITARY MEDICAL FACILITIES IN NATIONAL CAPITAL 
                   REGION.

       (a) Study Required.--The Comptroller General shall conduct 
     a study to evaluate the requirements for Army, Navy, and Air 
     Force medical facilities in the National Capital Region (as 
     defined in section 2674(f)(2) of title 10, United States 
     Code). The study shall--
       (1) specifically address requirements with respect to 
     geography, facilities, integrated residencies, and medical 
     environments; and
       (2) provide specific recommendations with respect to how 
     medical and health care provided by these facilities may be 
     better coordinated to more efficiently serve, throughout the 
     National Capital Region, members of the Armed Forces on 
     active duty and covered beneficiaries under chapter 55 of 
     title 10, United States Code.
       (b) Submission of Report.--Not later than six months after 
     the date of the enactment of this Act, the Comptroller 
     General shall submit to Congress and the Secretary of Defense 
     a report containing the results of the study required by 
     subsection (a).

     SEC. 751. REPORT ON POLICIES AND PROGRAMS TO PROMOTE HEALTHY 
                   LIFESTYLES FOR MEMBERS OF THE ARMED FORCES AND 
                   THEIR DEPENDENTS.

       (a) Report.--Not later than March 30, 1998, the Secretary 
     of Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report on the effectiveness of the 
     policies and programs of the Department of Defense intended 
     to promote healthy lifestyles for members of the Armed Forces 
     and their dependents.
       (b) Policies and Programs To Be Assessed.--The report under 
     subsection (a) shall include an assessment of the 
     effectiveness of the following:
       (1) Programs intended to educate members of the Armed 
     Forces and their dependents about the potential health 
     consequences of the use of alcohol and tobacco.
       (2) Policies of the commissaries, post exchanges, and 
     service clubs, and for entertainment activities of the 
     Department of Defense, relating to the sale and use of 
     alcohol and tobacco.
       (3) Programs intended to provide support to members of the 
     Armed Forces and their dependents who choose to reduce or 
     eliminate their use of alcohol or tobacco.
       (4) Any other policies or programs intended to promote 
     healthy lifestyles for members of the Armed Forces and their 
     dependents.

     SEC. 752. SENSE OF CONGRESS REGARDING QUALITY HEALTH CARE FOR 
                   RETIREES.

       (a) Findings.--Congress makes the following findings:
       (1) Many retired military personnel believe that they were 
     promised lifetime health care in exchange for 20 or more 
     years of service.
       (2) Military retirees are the only Federal Government 
     personnel who have been prevented from using their employer-
     provided health care at or after 65 years of age.
       (3) Military health care has become increasingly difficult 
     to obtain for military retirees as the Department of Defense 
     reduces its health care infrastructure.
       (4) Military retirees deserve to have a health care program 
     that is at least comparable with that of retirees from 
     civilian employment by the Federal Government.
       (5) The availability of quality, lifetime health care is a 
     critical recruiting incentive for the Armed Forces.
       (6) Quality health care is a critical aspect of the quality 
     of life of the men and women serving in the Armed Forces.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the United States has incurred a moral obligation to 
     provide health care to members and former members of the 
     Armed Forces who are entitled to retired or retainer pay (or 
     its equivalent);
       (2) it is, therefore, necessary to provide quality, 
     affordable health care to such retirees; and
       (3) Congress and the President should take steps to address 
     the problems associated with the availability of health care 
     for such retirees within two years after the date of the 
     enactment of this Act.
                    Subtitle F--Persian Gulf Illness

     SEC. 761. DEFINITIONS.

       For purposes of this subtitle:
       (1) The term ``Gulf War illness'' means any one of the 
     complex of illnesses and symptoms that might have been 
     contracted by members of the Armed Forces as a result of 
     service in the Southwest Asia theater of operations during 
     the Persian Gulf War.
       (2) The term ``Persian Gulf War'' has the meaning given 
     that term in section 101 of title 38, United States Code.
       (3) The term ``Persian Gulf veteran'' means an individual 
     who served on active duty in the Armed Forces in the 
     Southwest Asia theater of operations during the Persian Gulf 
     War.
       (4) The term ``contingency operation'' has the meaning 
     given that term in section 101(a) of title 10, United States 
     Code, and includes a humanitarian operation, peacekeeping 
     operation, or similar operation.

[[Page H9132]]

     SEC. 762. PLAN FOR HEALTH CARE SERVICES FOR PERSIAN GULF 
                   VETERANS.

       (a) Plan Required.--The Secretary of Defense and the 
     Secretary of Veterans Affairs, acting jointly, shall prepare 
     a plan to provide appropriate health care to Persian Gulf 
     veterans (and dependents eligible by law) who suffer from a 
     Gulf War illness.
       (b) Contents of Plan.--In preparing the plan, the 
     Secretaries shall--
       (1) use the presumptions of service connection and illness 
     specified in paragraphs (1) and (2) of section 721(d) of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 10 U.S.C. 1074 note) to determine the 
     Persian Gulf veterans (and dependents eligible by law) who 
     should be covered by the plan;
       (2) consider the need and methods available to provide 
     health care services to Persian Gulf veterans who are no 
     longer on active duty in the Armed Forces, such as Persian 
     Gulf veterans who are members of the reserve components and 
     Persian Gulf veterans who have been separated from the Armed 
     Forces; and
       (3) estimate the costs to the Government of providing full 
     or partial health care services under the plan to covered 
     Persian Gulf veterans (and covered dependents eligible by 
     law).
       (c) Follow-up Treatment.--The plan required by subsection 
     (a) shall specifically address the measures to be used to 
     monitor the quality, appropriateness, and effectiveness of, 
     and patient satisfaction with, health care services provided 
     to Persian Gulf veterans after their initial medical 
     examination as part of registration in the Persian Gulf War 
     Veterans Health Registry or the Comprehensive Clinical 
     Evaluation Program.
       (d) Submission of Plan.--Not later than March 1, 1998, the 
     Secretaries shall submit to Congress the plan required by 
     subsection (a).

     SEC. 763. COMPTROLLER GENERAL STUDY OF REVISED DISABILITY 
                   CRITERIA FOR PHYSICAL EVALUATION BOARDS.

       Not later than March 1, 1998, the Comptroller General shall 
     submit to Congress a study evaluating the revisions made by 
     the Secretary of Defense (as required by section 721(e) of 
     the National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 10 U.S.C. 1074 note)) to the Physical 
     Evaluation Board criteria used to set disability ratings for 
     members of the Armed Forces who are no longer medically 
     qualified for continuation on active duty so as to ensure 
     accurate disability ratings related to a diagnosis of a Gulf 
     War illness.

     SEC. 764. MEDICAL CARE FOR CERTAIN RESERVES WHO SERVED IN 
                   SOUTHWEST ASIA DURING THE PERSIAN GULF WAR.

       (a) In General.--Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1074d the 
     following new section:

     ``Sec. 1074e. Medical care: certain Reserves who served in 
       Southwest Asia during the Persian Gulf Conflict

       ``(a) Entitlement to Medical Care.--A member of the armed 
     forces described in subsection (b) is entitled to medical 
     care for a qualifying Persian Gulf symptom or illness to the 
     same extent and under the same conditions (other than the 
     requirement that the member be on active duty) as a member of 
     a uniformed service who is entitled to such care under 
     section 1074(a) of this title.
       ``(b) Covered Members.--Subsection (a) applies to a member 
     of a reserve component who--
       ``(1) is a Persian Gulf veteran;
       ``(2) has a qualifying Persian Gulf symptom or illness; and
       ``(3) is not otherwise entitled to medical care for such 
     symptom or illness under this chapter and is not otherwise 
     eligible for hospital care and medical services for such 
     symptom or illness under section 1710 of title 38.
       ``(c) Definitions.--In this section:
       ``(1) The term `Persian Gulf veteran' means a member of the 
     armed forces who served on active duty in the Southwest Asia 
     theater of operations during the Persian Gulf Conflict.
       ``(2) The term `qualifying Persian Gulf symptom or illness' 
     means, with respect to a member described in subsection (b), 
     a symptom or illness--
       ``(A) that the member registered before September 1, 1997, 
     in the Comprehensive Clinical Evaluation Program of the 
     Department of Defense and that is presumed under section 
     721(d) of the National Defense Authorization Act for Fiscal 
     Year 1995 (10 U.S.C. 1074 note) to be a result of service in 
     the Southwest Asia theater of operations during the Persian 
     Gulf Conflict; or
       ``(B) that the member registered before September 1, 1997, 
     in the Persian Gulf War Veterans Health Registry maintained 
     by the Department of Veterans Affairs pursuant to section 702 
     of the Persian Gulf War Veterans' Health Status Act (38 
     U.S.C. 527 note).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1074d the following new item:

``1074e. Medical care: certain Reserves who served in Southwest Asia 
              during the Persian Gulf Conflict.''.

     SEC. 765. IMPROVED MEDICAL TRACKING SYSTEM FOR MEMBERS 
                   DEPLOYED OVERSEAS IN CONTINGENCY OR COMBAT 
                   OPERATIONS.

       (a) System Required.--(1) Chapter 55 of title 10, United 
     States Code, is amended by inserting after section 1074e (as 
     added by section 764) the following new section:

     ``Sec. 1074f. Medical tracking system for members deployed 
       overseas

       ``(a) System Required.--The Secretary of Defense shall 
     establish a system to assess the medical condition of members 
     of the armed forces (including members of the reserve 
     components) who are deployed outside the United States or its 
     territories or possessions as part of a contingency operation 
     (including a humanitarian operation, peacekeeping operation, 
     or similar operation) or combat operation.
       ``(b) Elements of System.--The system described in 
     subsection (a) shall include the use of predeployment medical 
     examinations and postdeployment medical examinations 
     (including an assessment of mental health and the drawing of 
     blood samples) to accurately record the medical condition of 
     members before their deployment and any changes in their 
     medical condition during the course of their deployment. The 
     postdeployment examination shall be conducted when the member 
     is redeployed or otherwise leaves an area in which the system 
     is in operation (or as soon as possible thereafter).
       ``(c) Recordkeeping.--The results of all medical 
     examinations conducted under the system, records of all 
     health care services (including immunizations) received by 
     members described in subsection (a) in anticipation of their 
     deployment or during the course of their deployment, and 
     records of events occurring in the deployment area that may 
     affect the health of such members shall be retained and 
     maintained in a centralized location to improve future access 
     to the records.
       ``(d) Quality Assurance.--The Secretary of Defense shall 
     establish a quality assurance program to evaluate the success 
     of the system in ensuring that members described in 
     subsection (a) receive predeployment medical examinations and 
     postdeployment medical examinations and that the 
     recordkeeping requirements with respect to the system are 
     met.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1074e (as added by section 764) the following new item:

``1074f. Medical tracking system for members deployed overseas.''.
       (b) Report.--Not later than March 1, 1998, the Secretary of 
     Defense shall submit to Congress an analysis of the 
     administrative implications of establishing and administering 
     the medical tracking system required by section 1074f of 
     title 10, United States Code, as added by subsection (a). The 
     report shall include, for fiscal year 1999 and the 5 
     successive fiscal years, a separate analysis and 
     specification of the projected costs and operational 
     considerations for each of the following required aspects 
     of the system:
       (1) Predeployment medical examinations.
       (2) Postdeployment medical examinations.
       (3) Recordkeeping.

     SEC. 766. NOTICE OF USE OF INVESTIGATIONAL NEW DRUGS OR DRUGS 
                   UNAPPROVED FOR THEIR APPLIED USE.

       (a) Notice Requirements.--Chapter 55 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 1107. Notice of use of an investigational new drug or 
       a drug unapproved for its applied use

       ``(a) Notice Required.--(1) Whenever the Secretary of 
     Defense requests or requires a member of the armed forces to 
     receive an investigational new drug or a drug unapproved for 
     its applied use, the Secretary shall provide the member with 
     notice containing the information specified in subsection 
     (d).
       ``(2) The Secretary shall also ensure that health care 
     providers who administer an investigational new drug or a 
     drug unapproved for its applied use, or who are likely to 
     treat members who receive such a drug, receive the 
     information required to be provided under paragraphs (3) and 
     (4) of subsection (d).
       ``(b) Time of Notice.--The notice required to be provided 
     to a member under subsection (a)(1) shall be provided before 
     the investigational new drug or drug unapproved for its 
     applied use is first administered to the member, if 
     practicable, but in no case later than 30 days after the drug 
     is first administered to the member.
       ``(c) Form of Notice.--The notice required under subsection 
     (a)(1) shall be provided in writing unless the Secretary of 
     Defense determines that the use of written notice is 
     impractical because of the number of members receiving the 
     investigational new drug or drug unapproved for its applied 
     use, time constraints, or similar reasons. If the Secretary 
     provides notice under subsection (a)(1) in a form other than 
     in writing, the Secretary shall submit to Congress a report 
     describing the notification method used and the reasons for 
     the use of the alternative method.
       ``(d) Content of Notice.--The notice required under 
     subsection (a)(1) shall include the following:
       ``(1) Clear notice that the drug being administered is an 
     investigational new drug or a drug unapproved for its applied 
     use.
       ``(2) The reasons why the investigational new drug or drug 
     unapproved for its applied use is being administered.
       ``(3) Information regarding the possible side effects of 
     the investigational new drug or drug unapproved for its 
     applied use, including any known side effects possible as a 
     result of the interaction of such drug with other drugs or 
     treatments being administered to the members receiving such 
     drug.
       ``(4) Such other information that, as a condition of 
     authorizing the use of the investigational new drug or drug 
     unapproved for its applied use, the Secretary of Health and 
     Human Services may require to be disclosed.
       ``(e) Records of Use.--The Secretary of Defense shall 
     ensure that the medical records of members accurately 
     document--
       ``(1) the receipt by members of any investigational new 
     drug or drug unapproved for its applied use; and
       ``(2) the notice required by subsection (a)(1).
       ``(f) Definitions.--In this section:
       ``(1) The term `investigational new drug' means a drug 
     covered by section 505(i) of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 355(i)).

[[Page H9133]]

       ``(2) The term `drug unapproved for its applied use' means 
     a drug administered for a use not described in the approved 
     labeling of the drug under section 505 of the Federal Food, 
     Drug, and Cosmetic Act (21 U.S.C. 355).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1107. Notice of use of an investigational new drug or a drug 
              unapproved for its applied use.''.

     SEC. 767. REPORT ON PLANS TO TRACK LOCATION OF MEMBERS IN A 
                   THEATER OF OPERATIONS.

       Not later than March 1, 1998, the Secretary of Defense 
     shall submit to Congress a report containing a plan for 
     collecting and maintaining information regarding the daily 
     location of units of the Armed Forces, and to the extent 
     practicable individual members of such units, serving in a 
     theater of operations during a contingency operation or 
     combat operation.

     SEC. 768. SENSE OF CONGRESS REGARDING THE DEPLOYMENT OF 
                   SPECIALIZED UNITS FOR DETECTING AND MONITORING 
                   CHEMICAL, BIOLOGICAL, AND SIMILAR HAZARDS IN A 
                   THEATER OF OPERATIONS.

       It is the sense of Congress that the Secretary of Defense, 
     in conjunction with the Chairman of the Joint Chiefs of 
     Staff, should take such actions as are necessary to ensure 
     that the units of the Armed Forces deployed in the theater of 
     operations for each contingency operation or combat operation 
     include specialized units with sufficient capability 
     (including personnel with the appropriate training and 
     expertise, and the appropriate equipment) to detect and 
     monitor the presence of chemical, biological, and similar 
     hazards to which members of the Armed Forces could be exposed 
     in that theater during the operation.

     SEC. 769. REPORT ON EFFECTIVENESS OF RESEARCH EFFORTS 
                   REGARDING GULF WAR ILLNESSES.

       Not later than March 1, 1998, the Secretary of Defense 
     shall submit to Congress a report evaluating the 
     effectiveness of medical research initiatives regarding Gulf 
     War illnesses. The report shall address the following:
       (1) The type and effectiveness of previous research 
     efforts, including the activities undertaken pursuant to 
     section 743 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 1074 note), 
     section 722 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 1074 note), 
     and sections 270 and 271 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     107 Stat. 1613).
       (2) Recommendations regarding additional research regarding 
     Gulf War illnesses, including research regarding the nature 
     and causes of Gulf War illnesses and appropriate treatments 
     for such illnesses.
       (3) The adequacy of Federal funding and the need for 
     additional funding for medical research initiatives regarding 
     Gulf War illnesses.

     SEC. 770. PERSIAN GULF ILLNESS CLINICAL TRIALS PROGRAM.

       (a) Findings.--Congress finds the following:
       (1) There are many ongoing studies that investigate risk 
     factors which may be associated with the health problems 
     experienced by Persian Gulf veterans; however, there have 
     been no studies that examine health outcomes and the 
     effectiveness of the treatment received by such veterans.
       (2) The medical literature and testimony presented in 
     hearings on Gulf War illnesses indicate that there are 
     therapies, such as cognitive behavioral therapy, that have 
     been effective in treating patients with symptoms similar to 
     those seen in many Persian Gulf veterans.
       (b) Establishment of Program.--The Secretary of Defense and 
     the Secretary of Veterans Affairs, acting jointly, shall 
     establish a program of cooperative clinical trials at 
     multiple sites to assess the effectiveness of protocols for 
     treating Persian Gulf veterans who suffer from ill-defined or 
     undiagnosed conditions. Such protocols shall include a 
     multidisciplinary treatment model, of which cognitive 
     behavioral therapy is a component.
       (c) Funding.--Of the funds authorized to be appropriated in 
     section 201(1) for research, development, test, and 
     evaluation for the Army, the sum of $4,500,000 shall be 
     available for program element 62787A (medical technology) in 
     the budget of the Department of Defense for fiscal year 1998 
     to carry out the clinical trials program established pursuant 
     to subsection (b).

     SEC. 771. SENSE OF CONGRESS CONCERNING GULF WAR ILLNESS.

       (a) Findings.--Congress makes the following findings:
       (1) Americans served in the Persian Gulf Conflict of 1991 
     in defense of vital national security interests of the United 
     States.
       (2) It was known to United States intelligence and military 
     commanders that biological and chemical agents were in 
     theater throughout the conflict.
       (3) An undetermined amount of these agents were released 
     into theater.
       (4) A large number of United States military veterans and 
     allied veterans who served in the Southwest Asia theater of 
     operations have been stricken with a variety of severe 
     illnesses.
       (5) Previous efforts to discern the causes of those 
     illnesses have been inadequate, and those illnesses are 
     affecting the health of both veterans and their families.
       (b) Sense of Congress.--It is the sense of Congress that 
     all promising technology and treatments relating to Gulf War 
     illnesses should be fully explored and tested to facilitate 
     treatment for members of the Armed Forces and veterans who 
     served the United States in the Persian Gulf conflict and are 
     stricken with unexplainable illness.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 801. Expansion of authority to enter into contracts crossing 
              fiscal years to all severable service contracts not 
              exceeding a year.
Sec. 802. Vesting of title in the United States under contracts paid 
              under progress payment arrangements or similar 
              arrangements.
Sec. 803. Restriction on undefinitized contract actions.
Sec. 804. Limitation and report on payment of restructuring costs under 
              defense contracts.
Sec. 805. Increased price limitation on purchases of right-hand drive 
              vehicles.
Sec. 806. Multiyear procurement contracts.
Sec. 807. Audit of procurement of military clothing and clothing-
              related items by military installations in the United 
              States.
Sec. 808. Limitation on allowability of compensation for certain 
              contractor personnel.
Sec. 809. Elimination of certification requirement for grants.
Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
Sec. 811. Item-by-item and country-by-country waivers of domestic 
              source limitations.

              Subtitle B--Acquisition Assistance Programs

Sec. 821. One-year extension of pilot mentor-protege program.
Sec. 822. Test program for negotiation of comprehensive subcontracting 
              plans.

                 Subtitle C--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract 
              litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Unit cost reports.
Sec. 834. Plan for providing contracting information to general public 
              and small businesses.
Sec. 835. Two-year extension of crediting of certain purchases toward 
              meeting subcontracting goals.

                       Subtitle D--Other Matters

Sec. 841. Repeal of certain acquisition requirements and reports
Sec. 842. Use of major range and test facility installations by 
              commercial entities.
Sec. 843. Requirement to develop and maintain list of firms not 
              eligible for defense contracts.
Sec. 844. Sense of Congress regarding allowability of costs of employee 
              stock ownership plans.
Sec. 845. Expansion of personnel eligible to participate in 
              demonstration project relating to acquisition workforce.
Sec. 846. Time for submission of annual report relating to Buy American 
              Act.
Sec. 847. Repeal of requirement for contractor guarantees on major 
              weapon systems.
Sec. 848. Requirements relating to micro-purchases.
Sec. 849. Promotion rate for officers in an acquisition corps.
Sec. 850. Use of electronic commerce in Federal procurement.
Sec. 851. Conformance of policy on performance based management of 
              civilian acquisition programs with policy established for 
              defense acquisition programs.
Sec. 852. Modification of process requirements for the solutions-based 
              contracting pilot program.
Sec. 853. Guidance and standards for defense acquisition workforce 
              training requirements.
Sec. 854. Study and report to Congress assessing dependence on foreign 
              sources for resistors and capacitors.
Sec. 855. Department of Defense and Federal Prison Industries joint 
              study.
Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

     SEC. 801. EXPANSION OF AUTHORITY TO ENTER INTO CONTRACTS 
                   CROSSING FISCAL YEARS TO ALL SEVERABLE SERVICE 
                   CONTRACTS NOT EXCEEDING A YEAR.

       (a) Expanded Authority.--Section 2410a of title 10, United 
     States Code, is amended to read as follows:

     ``Sec. 2410a. Severable service contracts for periods 
       crossing fiscal years

       ``(a) Authority.--The Secretary of Defense, the Secretary 
     of a military department, or the Secretary of Transportation 
     with respect to the Coast Guard when it is not operating as a 
     service in the Navy, may enter into a contract for 
     procurement of severable services for a period that begins in 
     one fiscal year and ends in the next fiscal year if (without 
     regard to any option to extend the period of the contract) 
     the contract period does not exceed one year.
       ``(b) Obligation of Funds.--Funds made available for a 
     fiscal year may be obligated for the total amount of a 
     contract entered into under the authority of subsection 
     (a).''.
       (b) Clerical Amendment.--The item relating to such section 
     in the table of sections at the beginning of chapter 141 of 
     such title is amended to read as follows:

``2410a. Severable service contracts for periods crossing fiscal 
              years.''.

[[Page H9134]]

     SEC. 802. VESTING OF TITLE IN THE UNITED STATES UNDER 
                   CONTRACTS PAID UNDER PROGRESS PAYMENT 
                   ARRANGEMENTS OR SIMILAR ARRANGEMENTS.

       Section 2307 of title 10, United States Code, is amended--
       (1) by redesignating subsection (h) as subsection (i); and
       (2) by inserting after subsection (g) the following new 
     subsection (h):
       ``(h) Vesting of Title in the United States.--If a contract 
     paid by a method authorized under subsection (a)(1) provides 
     for title to property to vest in the United States, the title 
     to the property shall vest in accordance with the terms of 
     the contract, regardless of any security interest in the 
     property that is asserted before or after the contract is 
     entered into.''.

     SEC. 803. RESTRICTION ON UNDEFINITIZED CONTRACT ACTIONS.

       (a) Applicability of Waiver Authority to Humanitarian or 
     Peacekeeping Operations.--Section 2326(b)(4) of title 10, 
     United States Code, is amended to read as follows:
       ``(4) The head of an agency may waive the provisions of 
     this subsection with respect to a contract of that agency if 
     that head of an agency determines that the waiver is 
     necessary in order to support any of the following 
     operations:
       ``(A) A contingency operation.
       ``(B) A humanitarian or peacekeeping operation.''.
       (b) Humanitarian or Peacekeeping Operation Defined.--
     Section 2302(7) of such title is amended--
       (1) by striking out ``(7)(A)'' and inserting in lieu 
     thereof ``(7)''; and
       (2) by striking out ``(B) In subparagraph (A), the'' and 
     inserting in lieu thereof ``(8) The''.

     SEC. 804. LIMITATION AND REPORT ON PAYMENT OF RESTRUCTURING 
                   COSTS UNDER DEFENSE CONTRACTS.

       (a) In General.--(1) Chapter 137 of title 10, United States 
     Code, is amended by inserting after section 2324 the 
     following new section:

     ``Sec. 2325. Restructuring costs

       ``(a) Limitation on Payment of Restructuring Costs.--(1) 
     The Secretary of Defense may not pay, under section 2324 of 
     this title, a defense contractor for restructuring costs 
     associated with a business combination of the contractor 
     unless the Secretary determines in writing either--
       ``(A) that the amount of projected savings for the 
     Department of Defense associated with the restructuring will 
     be at least twice the amount of the costs allowed; or
       ``(B) that the amount of projected savings for the 
     Department of Defense associated with the restructuring will 
     exceed the amount of the costs allowed and that the business 
     combination will result in the preservation of a critical 
     capability that otherwise might be lost to the Department.
       ``(2) The Secretary may not delegate the authority to make 
     a determination under paragraph (1) to an official of the 
     Department of Defense below the level of an Assistant 
     Secretary of Defense.
       ``(b) Report.--Not later than March 1 in each of 1998, 
     1999, 2000, 2001, and 2002, the Secretary of Defense shall 
     submit to Congress a report that contains, with respect to 
     business combinations occurring on or after August 15, 1994, 
     the following:
       ``(1) For each defense contractor to which the Secretary 
     has paid, under section 2324 of this title, restructuring 
     costs associated with a business combination, a summary of 
     the following:
       ``(A) An estimate of the amount of savings for the 
     Department of Defense associated with the restructuring that 
     has been realized as of the end of the preceding calendar 
     year.
       ``(B) An estimate of the amount of savings for the 
     Department of Defense associated with the restructuring that 
     is expected to be achieved on defense contracts.
       ``(2) An identification of any business combination for 
     which the Secretary has paid restructuring costs under 
     section 2324 of this title during the preceding calendar year 
     and, for each such business combination--
       ``(A) the supporting rationale for allowing such costs;
       ``(B) factual information associated with the determination 
     made under subsection (a) with respect to such costs; and
       ``(C) a discussion of whether the business combination 
     would have proceeded without the payment of restructuring 
     costs by the Secretary.
       ``(3) For business combinations of major defense 
     contractors that took place during the year preceding the 
     year of the report--
       ``(A) an assessment of any potentially adverse effects that 
     the business combinations could have on competition for 
     Department of Defense contracts (including potential 
     horizontal effects, vertical effects, and organizational 
     conflicts of interest), the national technology and 
     industrial base, or innovation in the defense industry; and
       ``(B) the actions taken to mitigate the potentially adverse 
     effects.
       ``(c) Definition.--In this section, the term `business 
     combination' includes a merger or acquisition.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2324 the following new item:

``2325. Restructuring costs.''.
       (b) GAO Reports.--(1) Not later than April 1, 1998, the 
     Comptroller General shall--
       (A) in consultation with appropriate officials in the 
     Department of Defense--
       (i) identify major market areas affected by business 
     combinations of defense contractors since January 1, 1990; 
     and
       (ii) develop a methodology for determining the savings from 
     business combinations of defense contractors on the prices 
     paid on particular defense contracts; and
       (B) submit to the congressional defense committees a report 
     describing, for each major market area identified pursuant to 
     subparagraph (A)(i), the changes in numbers of businesses 
     competing for major defense contracts since January 1, 1990.
       (2) Not later than December 1, 1998, the Comptroller 
     General shall submit to the congressional defense committees 
     a report containing the following:
       (A) Updated information on--
       (i) restructuring costs of business combinations paid by 
     the Department of Defense pursuant to certifications under 
     section 818 of the National Defense Authorization Act for 
     Fiscal Year 1995, and
       (ii) savings realized by the Department of Defense as a 
     result of the business combinations for which the payment of 
     restructuring costs was so certified.
       (B) An assessment of the savings from business combinations 
     of defense contractors on the prices paid on a meaningful 
     sample of defense contracts, determined in accordance with 
     the methodology developed pursuant to paragraph (1)(A)(ii), 
     as well as a description of the methodology.
       (C) Any recommendations that the Comptroller General 
     considers appropriate.
       (3) In this subsection, the term ``business combination'' 
     has the meaning given that term in section 2325(c) of title 
     10, United States Code, as added by subsection (a).
       (c) Effective Date.--Section 2325(a) of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to business combinations that occur after the date of 
     the enactment of this Act.
       (d) Repeal of Superseded Provisions.--Subsections (a) and 
     (g)(3) of section 818 of the National Defense Authorization 
     Act for Fiscal Year 1995 (10 U.S.C. 2324 note) are repealed.

     SEC. 805. INCREASED PRICE LIMITATION ON PURCHASES OF RIGHT-
                   HAND DRIVE VEHICLES.

       Section 2253(a)(2) of title 10, United States Code, is 
     amended by striking out ``$12,000'' and inserting in lieu 
     thereof ``$30,000''.

     SEC. 806. MULTIYEAR PROCUREMENT CONTRACTS.

       (a) Requirement for Authorization by Law in Acts Other Than 
     Appropriations Acts.--(1) Subsection (i) of section 2306b of 
     title 10, United States Code, is amended by adding at the end 
     the following new paragraph:
       ``(3) In the case of the Department of Defense, a multiyear 
     contract in an amount equal to or greater than $500,000,000 
     may not be entered into for any fiscal year under this 
     section unless the contract is specifically authorized by law 
     in an Act other than an appropriations Act.''.
       (2) Paragraph (3) of section 2306b(i) of title 10, United 
     States Code, as added by paragraph (1), shall not apply with 
     respect to a contract authorized by law before the date of 
     the enactment of this Act.
       (b) Codification of Annual Recurring Multiyear Procurement 
     Requirements.--(1) Such section is further amended by adding 
     at the end the following new subsection:
       ``(l) Various Additional Requirements With Respect to 
     Multiyear Defense Contracts.--(1)(A) The head of an agency 
     may not initiate a contract described in subparagraph (B) 
     unless the congressional defense committees are notified of 
     the proposed contract at least 30 days in advance of the 
     award of the proposed contract.
       ``(B) Subparagraph (A) applies to the following contracts:
       ``(i) A multiyear contract--
       ``(I) that employs economic order quantity procurement in 
     excess of $20,000,000 in any one year of the contract; or
       ``(II) that includes an unfunded contingent liability in 
     excess of $20,000,000.
       ``(ii) Any 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.
       ``(2) The head of an agency may not 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.
       ``(3) The head of an agency may not initiate a multiyear 
     procurement contract for any system (or component thereof) if 
     the value of the multiyear contract would exceed $500,000,000 
     unless authority for the contract is specifically provided in 
     an appropriations Act.
       ``(4) The head of an agency may not terminate a multiyear 
     procurement contract until 10 days after the date on which 
     notice of the proposed termination is provided to the 
     congressional defense committees.
       ``(5) The execution of multiyear contracting authority 
     shall require the use of a present value analysis to 
     determine lowest cost compared to an annual procurement.
       ``(6) This subsection does not apply to the National 
     Aeronautics and Space Administration or to the Coast Guard.
       ``(7) In this subsection, the term `congressional defense 
     committees' means the following:
       ``(A) The Committee on Armed Services of the Senate and the 
     Subcommittee on Defense of the Committee on Appropriations of 
     the Senate.
       ``(B) The Committee on National Security of the House of 
     Representatives and the Subcommittee on National Security of 
     the Committee on Appropriations of the House of 
     Representatives.''.
       (2) The amendment made by paragraph (1) shall take effect 
     on October 1, 1998.
       (c) Technical and Conforming Amendments.--Such section is 
     further amended as follows:
       (1) Subsection (a) is amended--
       (A) by striking out ``finds--'' in the matter preceding 
     paragraph (1) and inserting in lieu thereof ``finds each of 
     the following:'';

[[Page H9135]]

       (B) by capitalizing the initial letter of the first word in 
     each of paragraphs (1) through (6);
       (C) by striking out the semicolon at the end of paragraphs 
     (1) through (4) and inserting in lieu thereof a period; and
       (D) by striking out ``; and'' at the end of paragraph (5) 
     and inserting in lieu thereof a period.
       (2) Subsection (d)(1) is amended by striking out 
     ``paragraph (1)'' and inserting in lieu thereof ``subsection 
     (a)''.
       (3) Subsection (i)(1) is amended by striking ``five-year'' 
     and inserting in lieu thereof ``future-years''.

     SEC. 807. AUDIT OF PROCUREMENT OF MILITARY CLOTHING AND 
                   CLOTHING-RELATED ITEMS BY MILITARY 
                   INSTALLATIONS IN THE UNITED STATES.

       (a) Audit Requirement.--Not later than September 30, 1998, 
     the Inspector General of the Department of Defense shall 
     perform an audit of purchases of military clothing and 
     clothing-related items in excess of the micro-purchase 
     threshold by military installations during fiscal years 1996 
     and 1997 to determine the extent to which such installations 
     procured military clothing and clothing-related items in 
     violation of the Buy American Act (41 U.S.C. 10a et seq.) 
     during those fiscal years.
       (b) Installations To Be Audited.--The audit under 
     subsection (a)--
       (1) shall include an audit of the procurement of military 
     clothing and clothing-related items by a military 
     installation of each of the Army, Navy, Air Force, and Marine 
     Corps; and
       (2) shall not cover procurements of clothing and clothing-
     related items by the Defense Logistics Agency.
       (c) Definition.--The term ``micro-purchase threshold'' has 
     the meaning provided by section 32(f) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 428(f)).
       (d) Report.--Not later than October 31, 1998, the Inspector 
     General of the Department of Defense shall submit to Congress 
     a report on the results of the audit performed under 
     subsection (a).

     SEC. 808. LIMITATION ON ALLOWABILITY OF COMPENSATION FOR 
                   CERTAIN CONTRACTOR PERSONNEL.

       (a) Certain Compensation Not Allowable as Costs Under 
     Defense Contracts.--(1) Subsection (e)(1) of section 2324 of 
     title 10, United States Code, is amended by adding at the end 
     the following:
       ``(P) Costs of compensation of senior executives of 
     contractors for a fiscal year, regardless of the contract 
     funding source, to the extent that such compensation exceeds 
     the benchmark compensation amount determined applicable for 
     the fiscal year by the Administrator for Federal Procurement 
     Policy under section 39 of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 435).''.
       (2) Subsection (l) of such section is amended by adding at 
     the end the following:
       ``(4) The term `compensation', for a year, means the total 
     amount of wages, salary, bonuses and deferred compensation 
     for the year, whether paid, earned, or otherwise accruing, as 
     recorded in an employer's cost accounting records for the 
     year.
       ``(5) The term `senior executive', with respect to a 
     contractor, means--
       ``(A) the chief executive officer of the contractor or any 
     individual acting in a similar capacity for the contractor;
       ``(B) the four most highly compensated employees in 
     management positions of the contractor other than the chief 
     executive officer; and
       ``(C) in the case of a contractor that has components which 
     report directly to the contractor's headquarters, the five 
     most highly compensated employees in management positions at 
     each such component.
       ``(6) The term `fiscal year' means a fiscal year 
     established by a contractor for accounting purposes.''.
       (b) Certain Compensation Not Allowable as Costs Under Non-
     Defense Contracts.--(1) Subsection (e)(1) of section 306 of 
     the Federal Property and Administrative Services Act of 1949 
     (41 U.S.C. 256) is amended by adding at the end the 
     following:
       ``(P) Costs of compensation of senior executives of 
     contractors for a fiscal year, regardless of the contract 
     funding source, to the extent that such compensation exceeds 
     the benchmark compensation amount determined applicable for 
     the fiscal year by the Administrator for Federal Procurement 
     Policy under section 39 of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 435).''.
       (2) Such section is further amended by adding at the end 
     the following:
       ``(m) Other Definitions.--In this section:
       ``(1) The term `compensation', for a fiscal year, means the 
     total amount of wages, salary, bonuses and deferred 
     compensation for the fiscal year, whether paid, earned, or 
     otherwise accruing, as recorded in an employer's cost 
     accounting records for the fiscal year.
       ``(2) The term `senior executive', with respect to a 
     contractor, means--
       ``(A) the chief executive officer of the contractor or any 
     individual acting in a similar capacity for the contractor;
       ``(B) the four most highly compensated employees in 
     management positions of the contractor other than the chief 
     executive officer; and
       ``(C) in the case of a corporation that has components 
     which report directly to the corporate headquarters, the five 
     most highly compensated individuals in management positions 
     at each such component.
       ``(3) The term `benchmark corporation', with respect to a 
     fiscal year, means a publicly-owned United States corporation 
     that has annual sales in excess of $50,000,000 for the fiscal 
     year.
       ``(4) The term `publicly-owned United States corporation' 
     means a corporation organized under the laws of a State of 
     the United States, the District of Columbia, the Commonwealth 
     of Puerto Rico, or a possession of the United States the 
     voting stock of which is publicly traded.
       ``(5) The term `fiscal year' means a fiscal year 
     established by a contractor for accounting purposes.''.
       (2) The table of sections in section 1(b) of such Act is 
     amended by adding at the end the following:

``Sec. 39. Levels of compensation of certain contractor personnel not 
              allowable as costs under certain contracts.''.

       (d) Regulations.--Regulations implementing the amendments 
     made by this section shall be published in the Federal 
     Register not later than the effective date of the amendments 
     under subsection (e).
       (e) Effective Date.--The amendments made by this section 
     shall--
       (1) take effect on the date that is 90 days after the date 
     of the enactment of this Act; and
       (2) apply with respect to costs of compensation incurred 
     after January 1, 1998, under covered contracts entered into 
     before, on, or after the date of the enactment of this Act.
       (f) Exclusive Applicability.--Notwithstanding any other 
     provision of law, no other limitation in law on the 
     allowability of costs of compensation of senior executives 
     under covered contracts shall apply to such costs of 
     compensation incurred after January 1, 1998.
       (g) Definitions.--In this section:
       (1) The term ``covered contract'' has the meaning given 
     such term in section 2324(l) of title 10, United States Code, 
     and section 306(l) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 256(l)).
       (2) The terms ``compensation'' and ``senior executive'' 
     have the meanings given such terms in section 2324(l) of 
     title 10, United States Code, and section 306(m) of the 
     Federal Property and Administrative Services Act of 1949.

     SEC. 809. ELIMINATION OF CERTIFICATION REQUIREMENT FOR 
                   GRANTS.

       Section 5153 of the Drug-Free Workplace Act of 1988 (Public 
     Law 100-690; 102 Stat. 4306; 41 U.S.C. 702) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking out ``has certified to 
     the granting agency that it will'' and inserting in lieu 
     thereof ``agrees to''; and
       (B) in paragraph (2), by striking out ``certifies to the 
     agency'' and inserting in lieu thereof ``agrees''; and
       (2) in subsection (b)(1)--
       (A) by striking out subparagraph (A);
       (B) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively; and
       (C) in subparagraph (A), as so redesignated, by striking 
     out ``such certification by failing to carry out''.

     SEC. 810. REPEAL OF LIMITATION ON ADJUSTMENT OF SHIPBUILDING 
                   CONTRACTS.

       (a) Repeal.--(1) Section 2405 of title 10, United States 
     Code, is repealed.
       (2) The table of sections at the beginning of chapter 141 
     of such title is amended by striking out the item relating to 
     section 2405.
       (b) Applicability.--(1) Except as provided in paragraph 
     (2), the repeal made by subsection (a) shall be effective 
     with respect to claims, requests for equitable adjustment, 
     and demands for payment under shipbuilding contracts that 
     have been or are submitted before, on, or after the date of 
     the enactment of this Act.
       (2) Section 2405 of title 10, United States Code, as in 
     effect immediately before the date of the enactment of this 
     Act, shall continue to apply to a contractor's claim, request 
     for equitable adjustment, or demand for payment under a 
     shipbuilding contract that was submitted before such date 
     if--
       (A) a contracting officer denied the claim, request, or 
     demand, and the period for appealing the decision to a court 
     or board under the Contract Disputes Act of 1978 expired 
     before such date;
       (B) a court or board of contract appeals considering the 
     claim, request, or demand (including any appeal of a decision 
     of a contracting officer to deny the claim, request, or 
     demand) denied or dismissed the claim, request, or demand (or 
     the appeal), and the action of the court or board became 
     final and unappealable before such date; or
       (C) the contractor released or releases the claim, request, 
     or demand.

     SEC. 811. ITEM-BY-ITEM AND COUNTRY-BY-COUNTRY WAIVERS OF 
                   DOMESTIC SOURCE LIMITATIONS.  

       (a) Item-by-Item and Country-by-Country Implementation of 
     Certain Waiver Authority.--Section 2534 of title 10, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(i) Implementation of Certain Waiver Authority.--(1) The 
     Secretary of Defense may exercise the waiver authority 
     described in paragraph (2) only if the waiver is made for a 
     particular item listed in subsection (a) and for a particular 
     foreign country.
       ``(2) This subsection applies to the waiver authority 
     provided by subsection (d) on the basis of the applicability 
     of paragraph (2) or (3) of that subsection.
       ``(3) The waiver authority described in paragraph (2) may 
     not be delegated below the Under Secretary of Defense for 
     Acquisition and Technology.
       ``(4) At least 15 days before the effective date of any 
     waiver made under the waiver authority described in paragraph 
     (2), the Secretary shall publish in the Federal Register and 
     submit to the congressional defense committees a notice of 
     the determination to exercise the waiver authority.
       ``(5) Any waiver made by the Secretary under the waiver 
     authority described in paragraph (2) shall be in effect for a 
     period not greater than one year, as determined by the 
     Secretary.''.
       (b) Effective Date.--Subsection (i) of section 2534 of such 
     title, as added by subsection (a), shall apply 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 (d) of such section 2534, on the basis of the 
     applicability of paragraph (2) or (3) of that subsection.
              Subtitle B--Acquisition Assistance Programs

     SEC. 821. ONE-YEAR EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

       (a) One-Year Extension of Pilot Mentor-Protege Program.--
     Section 831(j) of the National Defense Authorization Act for 
     Fiscal Year 1991 (10 U.S.C. 2302 note) is amended--
       (1) in paragraph (1), by striking out ``1998'' and 
     inserting in lieu thereof ``1999'';
       (2) in paragraph (2), by striking out ``1999'' and 
     inserting in lieu thereof ``2000''; and
       (3) in paragraph (3), by striking out ``1999'' and 
     inserting in lieu thereof ``2000''.
       (b) Study on Implementation of Pilot Mentor-Protege 
     Program.--(1) The Comptroller General shall conduct a study 
     on the implementation of the Mentor-Protege Program 
     established under section 831 of the National Defense 
     Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note) 
     and the extent to which the program is achieving the purposes 
     established under that section.
       (2) The study also shall include the following:
       (A) A review of the manner in which funds for the program 
     have been obligated.

[[Page H9136]]

       (B) An identification and assessment of the average amount 
     spent by the Department of Defense on individual mentor-
     protege agreements and the correlation between levels of 
     funding and the business development of the protege firms.
       (C) An evaluation of the effectiveness of the incentives 
     provided to mentor firms to participate in the program.
       (D) An assessment of the success of the mentor-protege 
     program in enhancing the business competitiveness and 
     financial independence of protege firms.
       (3) The Comptroller General shall submit to the Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a report on the 
     results of the study not later than March 31, 1998.

     SEC. 822. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE 
                   SUBCONTRACTING PLANS.

       (a) Content of Subcontracting Plans.--Subsection (b)(2) of 
     section 834 of the National Defense Authorization Act for 
     Fiscal Years 1990 and 1991 (Public Law 101-189; 15 U.S.C. 637 
     note) is amended--
       (1) by striking out ``plan--'' and inserting in lieu 
     thereof ``plan of a contractor--'';
       (2) by striking out subparagraph (A);
       (3) by redesignating subparagraph (B) as subparagraph (A) 
     and by striking out the period at the end of such 
     subparagraph and inserting in lieu thereof ``; and''; and
       (4) by adding at the end the following:
       ``(B) shall cover each Department of Defense contract that 
     is entered into by the contractor and each subcontract that 
     is entered into by the contractor as the subcontractor under 
     a Department of Defense contract.''.
       (b) Extension of Program.--Subsection (e) of such section 
     is amended by striking out ``September 30, 1998'' in the 
     second sentence and inserting in lieu thereof ``September 30, 
     2000.''.
                 Subtitle C--Administrative Provisions

     SEC. 831. RETENTION OF EXPIRED FUNDS DURING THE PENDENCY OF 
                   CONTRACT LITIGATION.

       (a) In General.--Chapter 141 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2410m. Retention of amounts collected from contractor 
       during the pendency of contract dispute

       ``(a) Retention of Funds.--Notwithstanding sections 1552(a) 
     and 3302(b) of title 31, any amount, including interest, 
     collected from a contractor as a result of a claim made by a 
     military department or Defense Agency under the Contract 
     Disputes Act of 1978 (41 U.S.C. 601 et seq.), shall remain 
     available in accordance with this section to pay--
       ``(1) any settlement of the claim by the parties;
       ``(2) any judgment rendered in the contractor's favor on an 
     appeal of the decision on that claim to the Armed Services 
     Board of Contract Appeals under section 7 of such Act (41 
     U.S.C. 606); or
       ``(3) any judgment rendered in the contractor's favor in an 
     action on that claim in a court of the United States.
       ``(b) Period of Availability.--(1) The period of 
     availability of an amount under subsection (a), in connection 
     with a claim--
       ``(A) expires 180 days after the expiration of the period 
     for bringing an action on that claim in the United States 
     Court of Federal Claims under section 10(a) of the Contract 
     Disputes Act of 1978 (41 U.S.C. 609(a)) if, within that 180-
     day period--
       ``(i) no appeal on the claim is commenced at the Armed 
     Services Board of Contract Appeals under section 7 of such 
     Act; and
       ``(ii) no action on the claim is commenced in a court of 
     the United States; or
       ``(B) if not expiring under subparagraph (A), expires--
       ``(i) in the case of a settlement of the claim, 180 days 
     after the date of the settlement; or
       ``(ii) in the case of a judgment rendered on the claim in 
     an appeal to the Armed Services Board of Contract Appeals 
     under section 7 of the Contract Disputes Act of 1978 or an 
     action in a court of the United States, 180 days after the 
     date on which the judgment becomes final and not appealable.
       ``(2) While available under this section, an amount may be 
     obligated or expended only for a purpose described in 
     subsection (a).
       ``(3) Upon the expiration of the period of availability of 
     an amount under paragraph (1), the amount shall be covered 
     into the Treasury as miscellaneous receipts.
       ``(c) Reporting Requirement.--Each year, the Under 
     Secretary of Defense (Comptroller) shall submit to Congress a 
     report on the amounts, if any, that are available for 
     obligation pursuant to this section. The report shall 
     include, at a minimum, the following:
       ``(1) The total amount available for obligation.
       ``(2) The total amount collected from contractors during 
     the year preceding the year in which the report is submitted.
       ``(3) The total amount disbursed in such preceding year and 
     a description of the purpose for each disbursement.
       ``(4) The total amount returned to the Treasury in such 
     preceding year.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 141 of title 10, United States Code, is 
     amended by adding at the end the following new item:

``2410m. Retention of amounts collected from contractor during the 
              pendency of contract dispute.''.

     SEC. 832. PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

       Section 2371 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(i) Protection of Certain Information From Disclosure.--
     (1) Disclosure of information described in paragraph (2) is 
     not required, and may not be compelled, under section 552 of 
     title 5 for five years after the date on which the 
     information is received by the Department of Defense.
       ``(2)(A) Paragraph (1) applies to information described in 
     subparagraph (B) that is in the records of the Department of 
     Defense if the information was submitted to the Department in 
     a competitive or noncompetitive process having the potential 
     for resulting in an award, to the party submitting the 
     information, of a cooperative agreement that includes a 
     clause described in subsection (d) or another transaction 
     authorized by subsection (a).
       ``(B) The information referred to in subparagraph (A) is 
     the following:
       ``(i) A proposal, proposal abstract, and supporting 
     documents.
       ``(ii) A business plan submitted on a confidential basis.
       ``(iii) Technical information submitted on a confidential 
     basis.''.

     SEC. 833. UNIT COST REPORTS.

       (a) Immediate Report Required Only for Previously 
     Unreported Increased Costs.--Subsection (c) of section 2433 
     of title 10, United States Code, is amended by striking out 
     ``during the current fiscal year (other than the last 
     quarterly unit cost report under subsection (b) for the 
     preceding fiscal year)'' in the matter following paragraph 
     (3).
       (b) Immediate Report Not Required for Cost Variances or 
     Schedule Variances of Major Contracts.--Subsection (c) of 
     such section is further amended--
       (1) by inserting ``or'' at the end of paragraph (1);
       (2) by striking out ``or'' at the end of paragraph (2); and
       (3) by striking out paragraph (3).
       (c) Congressional Notification of Increased Cost Not 
     Conditioned on Discovery Since Beginning of Fiscal Year.--
     Subsection (d)(3) of such section is amended by striking out 
     ``(for the first time since the beginning of the current 
     fiscal year)'' in the first sentence.

     SEC. 834. PLAN FOR PROVIDING CONTRACTING INFORMATION TO 
                   GENERAL PUBLIC AND SMALL BUSINESSES.

       (a) Requirement for Plan.--The Secretary of Defense shall 
     develop a plan for improving the responsiveness of the 
     Department of Defense to persons from the general public and 
     small businesses seeking information on how to pursue 
     contracting and technology development opportunities with the 
     department. The plan shall include an assessment and 
     recommendation on the designation of a central point of 
     contact in the department to provide such information.
       (b) Submission.--Not later than March 31, 1998, the 
     Secretary shall submit the plan developed under subsection 
     (a) to the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives.

     SEC. 835. TWO-YEAR EXTENSION OF CREDITING OF CERTAIN 
                   PURCHASES TOWARD MEETING SUBCONTRACTING GOALS.

       Section 2410d(c) of title 10, United States Code, is 
     amended, effective as of September 30, 1997, by striking out 
     ``September 30, 1997'' and inserting in lieu thereof 
     ``September 30, 1999''.
                       Subtitle D--Other Matters

     SEC. 841. REPEAL OF CERTAIN ACQUISITION REQUIREMENTS AND 
                   REPORTS

       (a) Repeal of Reporting Requirement for Nonmajor 
     Acquisition Programs.--Section 2220(b) of title 10, United 
     States Code, is amended by striking out ``and nonmajor'' in 
     the first sentence.
       (b) Repeal of Additional Approval Requirement Under 
     Competition Exception for International Agreements.--Section 
     2304(f)(2)(E) of title 10, United States Code, is amended by 
     striking out ``and such document is approved by the 
     competition advocate for the procuring activity''.
       (c) Content of Limited Selected Acquisition Reports.--
     Section 2432(h)(2) of title 10, United States Code, is 
     amended--
       (1) by striking out subparagraph (D); and
       (2) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (D) and (E), respectively.
       (d) Repeal of Report Relating to Procurement Regulations.--
     Section 25 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 421) is amended by striking out subsection (g).

     SEC. 842. USE OF MAJOR RANGE AND TEST FACILITY INSTALLATIONS 
                   BY COMMERCIAL ENTITIES.

       (a) Extension of Authority.--Subsection (g) of section 2681 
     of title 10, United States Code, is amended by striking out 
     ``1998'' and inserting in lieu thereof ``2002''.
       (b) Revised Reporting Requirement.--Subsection (h) of such 
     section is amended to read as follows:
       ``(h) Report.--Not later than March 1, 1998, the Secretary 
     of Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report identifying existing and 
     proposed procedures to ensure that the use of Major Range and 
     Test Facility Installations by commercial entities does not 
     compete with private sector test and evaluation services.''.

     SEC. 843. REQUIREMENT TO DEVELOP AND MAINTAIN LIST OF FIRMS 
                   NOT ELIGIBLE FOR DEFENSE CONTRACTS.

       Section 2327 of title 10, United States Code, is amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (f) and (g), respectively; and
       (2) by inserting after subsection (c) the following new 
     subsections:

[[Page H9137]]

       ``(d) List of Firms Subject to Prohibition.--(1) The 
     Secretary of Defense shall develop and maintain a list of all 
     firms and subsidiaries of firms that the Secretary has 
     identified as being subject to the prohibition in subsection 
     (b).
       ``(2)(A) A person may request the Secretary to include on 
     the list maintained under paragraph (1) any firm or 
     subsidiary of a firm that the person believes to be owned or 
     controlled by a foreign government described in subsection 
     (b)(2). Upon receipt of such a request, the Secretary shall 
     determine whether the conditions in paragraphs (1) and (2) of 
     subsection (b) exist in the case of that firm or subsidiary. 
     If the Secretary determines that such conditions do exist, 
     the Secretary shall include the firm or subsidiary on the 
     list.
       ``(B) A firm or subsidiary of a firm included on the list 
     may request the Secretary to remove such firm or subsidiary 
     from the list on the basis that it has been erroneously 
     included on the list or its ownership circumstances have 
     significantly changed. Upon receipt of such a request, the 
     Secretary shall determine whether the conditions in 
     paragraphs (1) and (2) of subsection (b) exist in the case of 
     that firm or subsidiary. If the Secretary determines that 
     such conditions do not exist, the Secretary shall remove the 
     firm or subsidiary from the list.
       ``(C) The Secretary shall establish procedures to carry out 
     this paragraph.
       ``(3) The head of an agency shall prohibit each firm or 
     subsidiary of a firm awarded a contract by the agency from 
     entering into a subcontract under that contract in an amount 
     in excess of $25,000 with a firm or subsidiary included on 
     the list maintained under paragraph (1) unless there is a 
     compelling reason to do so. In the case of any subcontract 
     requiring consent by the head of an agency, the head of the 
     agency shall not consent to the award of the subcontract to a 
     firm or subsidiary included on such list unless there is a 
     compelling reason for such approval.
       ``(e) Distribution of List.--The Administrator of General 
     Services shall ensure that the list developed and maintained 
     under subsection (d) is made available to Federal agencies 
     and the public in the same manner and to the same extent as 
     the list of suspended and debarred contractors compiled 
     pursuant to subpart 9.4 of the Federal Acquisition 
     Regulation.''.

     SEC. 844. SENSE OF CONGRESS REGARDING ALLOWABILITY OF COSTS 
                   OF EMPLOYEE STOCK OWNERSHIP PLANS.

       It is the sense of Congress that the Secretary of Defense 
     should not disallow, under Department of Defense contracts, 
     the following costs:
       (1) Interest costs associated with deferred compensation 
     employee stock ownership plans that were incurred before 
     January 1, 1994.
       (2) Costs related to employee stock ownership plan (ESOP) 
     debt, control premiums, or marketability discounts associated 
     with the valuation of ESOP stock of closely held companies 
     that were incurred before January 1, 1995.

     SEC. 845. EXPANSION OF PERSONNEL ELIGIBLE TO PARTICIPATE IN 
                   DEMONSTRATION PROJECT RELATING TO ACQUISITION 
                   WORKFORCE.

       (a) Covered Personnel.--(1) Subsection (a) of section 4308 
     of the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106; 10 U.S.C. 1701 note) is amended 
     by adding before the period at the end the following: 
     ``and supporting personnel assigned to work directly with 
     the acquisition workforce''.
       (2) Subsection (b)(3)(A) of such section is amended by 
     inserting before the semicolon the following: ``or involves a 
     team of personnel more than half of which consists of members 
     of the acquisition workforce and the remainder of which 
     consists of supporting personnel assigned to work directly 
     with the acquisition workforce''.
       (b) Commencement of Project.--Subsection (b)(3)(B) of such 
     section is amended by striking out ``this Act'' and inserting 
     in lieu thereof ``the National Defense Authorization Act for 
     Fiscal Year 1998''.
       (c) Limitation on Number of Participants.--Such section is 
     further amended by adding at the end the following:
       ``(d) Limitation on Number of Participants.--The total 
     number of persons who may participate in the demonstration 
     project under this section may not exceed 95,000.''.

     SEC. 846. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO 
                   BUY AMERICAN ACT.

       Section 827 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2611; 41 
     U.S.C. 10b-3) is amended by striking out ``120 days'' and 
     inserting in lieu thereof ``90 days''.

     SEC. 847. REPEAL OF REQUIREMENT FOR CONTRACTOR GUARANTEES ON 
                   MAJOR WEAPON SYSTEMS.

       (a) Repeal.--Section 2403 of title 10, United States Code, 
     is repealed.
       (b) Clerical and Conforming Amendments.--(1) The table of 
     sections at the beginning of chapter 141 of such title is 
     amended by striking out the item relating to section 2403.
       (2) Section 803 of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2604; 10 
     U.S.C. 2430 note) is amended--
       (A) in subsection (a), by striking out ``2403,'';
       (B) by striking out subsection (c); and
       (C) by redesignating subsection (d) as subsection (c).

     SEC. 848. REQUIREMENTS RELATING TO MICRO-PURCHASES.

       (a) Requirement.--(1) Not later than October 1, 1998, at 
     least 60 percent of all eligible purchases made by the 
     Department of Defense for an amount less than the micro-
     purchase threshold shall be made through streamlined micro-
     purchase procedures.
       (2) Not later than October 1, 2000, at least 90 percent of 
     all eligible purchases made by the Department of Defense for 
     an amount less than the micro-purchase threshold shall be 
     made through streamlined micro-purchase procedures.
       (b) Eligible Purchases.--The Secretary of Defense shall 
     establish which purchases are eligible for purposes of 
     subsection (a). In establishing which purchases are eligible, 
     the Secretary may exclude those categories of purchases 
     determined not to be appropriate or practicable for 
     streamlined micro-purchase procedures.
       (c) Plan.--Not later than March 1, 1998, the Secretary of 
     Defense shall provide to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a plan to implement this section.
       (d) Report.--Not later than March 1 in each of the years 
     1999, 2000, and 2001, the Secretary of Defense shall submit 
     to the congressional defense committees a report on the 
     implementation of this section. Each report shall include--
       (A) the total dollar amount of all Department of Defense 
     purchases for an amount less than the micro-purchase 
     threshold in the fiscal year preceding the year in which the 
     report is submitted;
       (B) the total dollar amount of such purchases that were 
     considered to be eligible purchases;
       (C) the total amount of such eligible purchases that were 
     made through a streamlined micro-purchase method; and
       (D) a description of the categories of purchases excluded 
     from the definition of eligible purchases established under 
     subsection (b).
       (e) Definitions.--In this section:
       (1) The term ``micro-purchase threshold'' has the meaning 
     provided in section 32 of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 428).
       (2) The term ``streamlined micro-purchase procedures'' 
     means procedures providing for the use of the Government-wide 
     commercial purchase card or any other method for carrying out 
     micro-purchases that the Secretary of Defense prescribes in 
     the regulations implementing this subsection.

     SEC. 849. PROMOTION RATE FOR OFFICERS IN AN ACQUISITION 
                   CORPS.

       (a) Review of Acquisition Corps Promotion Selections.--Upon 
     the approval of the President or his designee of the report 
     of a selection board convened under section 611(a) of title 
     10, United States Code, which considered members of an 
     Acquisition Corps of a military department for promotion to a 
     grade above O-4, the Secretary of the military department 
     shall submit a copy of the report to the Under Secretary of 
     Defense for Acquisition and Technology for review.
       (b) Reporting Requirement.--Not later than January 31 of 
     each year, the Under Secretary of Defense for Acquisition and 
     Technology shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report containing the Under 
     Secretary's assessment of the extent to which each military 
     department is complying with the requirement set forth in 
     section 1731(b) of title 10, United States Code.
       (c) Termination of Requirements.--This section shall cease 
     to be effective on October 1, 2000.

     SEC. 850. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

       (a) Policy.--Section 30 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 426) is amended to read as 
     follows:

     ``SEC. 30. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

       ``(a) In General.--The head of each executive agency, after 
     consulting with the Administrator, shall establish, maintain, 
     and use, to the maximum extent that is practicable and cost-
     effective, procedures and processes that employ electronic 
     commerce in the conduct and administration of its procurement 
     system.
       ``(b) Applicable Standards.--In conducting electronic 
     commerce, the head of an agency shall apply nationally and 
     internationally recognized standards that broaden 
     interoperability and ease the electronic interchange of 
     information.
       ``(c) Agency Procedures.--The head of each executive agency 
     shall ensure that systems, technologies, procedures, and 
     processes established pursuant to this section--
       ``(1) are implemented with uniformity throughout the 
     agency, to the extent practicable;
       ``(2) are implemented only after granting due consideration 
     to the use or partial use, as appropriate, of existing 
     electronic commerce and electronic data interchange systems 
     and infrastructures such as the Federal acquisition computer 
     network architecture known as FACNET;
       ``(3) facilitate access to Federal Government procurement 
     opportunities, including opportunities for small business 
     concerns, socially and economically disadvantaged small 
     business concerns, and business concerns owned predominantly 
     by women; and
       ``(4) ensure that any notice of agency requirements or 
     agency solicitation for contract opportunities is provided in 
     a form that allows convenient and universal user access 
     through a single, Government-wide point of entry.
       ``(d) Implementation.--The Administrator shall, in carrying 
     out the requirements of this section--
       ``(1) issue policies to promote, to the maximum extent 
     practicable, uniform implementation of this section by 
     executive agencies, with due regard for differences in 
     program requirements among agencies that may require 
     departures from uniform procedures and processes in 
     appropriate cases, when warranted because of the agency 
     mission;
       ``(2) ensure that the head of each executive agency 
     complies with the requirements of subsection (c) with respect 
     to the agency systems, technologies, procedures, and 
     processes established pursuant to this section; and

[[Page H9138]]

       ``(3) consult with the heads of appropriate Federal 
     agencies with applicable technical and functional expertise, 
     including the Office of Information and Regulatory Affairs, 
     the National Institute of Standards and Technology, the 
     General Services Administration, and the Department of 
     Defense.
       ``(e) Report.--Not later than March 1, 1998, and every year 
     afterward through 2003, the Administrator shall submit to 
     Congress a report setting forth in detail the progress made 
     in implementing the requirements of this section. The report 
     shall include the following:
       ``(1) A strategic plan for the implementation of a 
     Government-wide electronic commerce capability.
       ``(2) An agency-by-agency summary of implementation of the 
     requirements of subsection (c), including timetables, as 
     appropriate, addressing when individual agencies will come 
     into full compliance.
       ``(3) A specific assessment of compliance with the 
     requirement in subsection (c) to provide universal public 
     access through a single, Government-wide point of entry.
       ``(4) Beginning with the report submitted on March 1, 1999, 
     an agency-by-agency summary of the volume and dollar value of 
     transactions that were conducted using electronic commerce 
     methods during the previous calendar year.
       ``(5) A discussion of possible incremental changes to the 
     electronic commerce capability referred to in subsection 
     (c)(4) to increase the level of government contract 
     information available to the private sector, including an 
     assessment of the advisability of including contract award 
     information in the electronic commerce functional standard.
       ``(f) Electronic Commerce Defined.--For the purposes of 
     this section, the term `electronic commerce' means electronic 
     techniques for accomplishing business transactions, including 
     electronic mail or messaging, World Wide Web technology, 
     electronic bulletin boards, purchase cards, electronic funds 
     transfers, and electronic data interchange.''.
       (b) Repeal of Requirements for Implementation of FACNET 
     Capability.--Section 30A of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 426a) is repealed.
       (c) Repeal of Requirement for GAO Report.--Section 9004 of 
     the Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 
     426a note) is repealed.
       (d) Repeal of Condition for Use of Simplified Acquisition 
     Procedures.--Section 31 of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 427) is amended--
       (1) by striking out subsection (e); and
       (2) by redesignating subsections (f) and (g) as subsections 
     (e) and (f), respectively.
       (e) Amendments to Procurement Notice Requirements.--(1) 
     Section 8(g)(1) of the Small Business Act (15 U.S.C. 
     637(g)(1)) is amended--
       (A) by striking out subparagraphs (A) and (B);
       (B) by redesignating subparagraphs (C), (D), (E), (F), (G), 
     and (H) as subparagraphs (B), (C), (D), (E), (F), and (G), 
     respectively; and
       (C) by inserting before subparagraph (B), as so 
     redesignated, the following new subparagraph (A):
       ``(A) the proposed procurement is for an amount not greater 
     than the simplified acquisition threshold and is to be 
     conducted by--
       ``(i) using widespread electronic public notice of the 
     solicitation in a form that allows convenient and universal 
     user access through a single, Government-wide point of entry; 
     and
       ``(ii) permitting the public to respond to the solicitation 
     electronically.''.
       (2) Section 18(c)(1) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 416(c)(1)) is amended--
       (A) by striking out subparagraphs (A) and (B);
       (B) by redesignating subparagraphs (C), (D), (E), (F), (G), 
     and (H) as subparagraphs (B), (C), (D), (E), (F), and (G), 
     respectively; and
       (C) by inserting before subparagraph (B), as so 
     redesignated, the following new subparagraph (A):
       ``(A) the proposed procurement is for an amount not greater 
     than the simplified acquisition threshold and is to be 
     conducted by--
       ``(i) using widespread electronic public notice of the 
     solicitation in a form that allows convenient and universal 
     user access through a single, Government-wide point of entry; 
     and
       ``(ii) permitting the public to respond to the solicitation 
     electronically.''.
       (3) The amendments made by paragraphs (1) and (2) shall be 
     implemented in a manner consistent with any applicable 
     international agreements.
       (f) Conforming and Technical Amendments.--(1) Section 5061 
     of the Federal Acquisition Streamlining Act of 1994 (41 
     U.S.C. 413 note) is amended--
       (A) in subsection (c)(4)--
       (i) by striking out ``the Federal acquisition computer 
     network (`FACNET')'' and inserting in lieu thereof ``the 
     electronic commerce''; and
       (ii) by striking out ``(as added by section 9001)''; and
       (B) in subsection (e)(9)(A), by striking out ``,  or by 
     dissemination through FACNET,''.
       (2) Section 5401 of the Clinger-Cohen Act of 1996 
     (divisions D and E of Public Law 104-106; 40 U.S.C. 1501) is 
     amended--
       (A) in subsection (a)--
       (i) by striking out ``through the Federal Acquisition 
     Computer Network (in this section referred to as `FACNET')''; 
     and
       (ii) by striking out the last sentence;
       (B) in subsection (b)--
       (i) by striking out ``Additional FACNET Functions.--'' and 
     all that follows through ``(41 U.S.C. 426(b)), the FACNET 
     architecture'' and inserting in lieu thereof ``Functions.--
     (1) The system for providing on-line computer access''; and
       (ii) in paragraph (2), by striking out ``The FACNET 
     architecture'' and inserting in lieu there for ``The system 
     for providing on-line computer access'';
       (C) in subsection (c)(1), by striking out ``the FACNET 
     architecture'' and inserting in lieu thereof ``the system for 
     providing on-line computer access''; and
       (D) by striking out subsection (d).
       (3)(A) Section 2302c of title 10, United States Code, is 
     amended to read as follows:

     ``Sec. 2302c. Implementation of electronic commerce 
       capability

       ``(a) Implementation of Electronic Commerce Capability.--
     (1) The head of each agency named in paragraphs (1), (5) and 
     (6) shall implement the electronic commerce capability 
     required by section 30 of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 426).
       ``(2) The Secretary of Defense shall act through the Under 
     Secretary of Defense for Acquisition and Technology to 
     implement the capability within the Department of Defense.
       ``(3) In implementing the electronic commerce capability 
     pursuant to paragraph (1), the head of an agency referred to 
     in paragraph (1) shall consult with the Administrator for 
     Federal Procurement Policy.
       ``(b) Designation of Agency Official.--The head of each 
     agency named in paragraph (5) or (6) of section 2303 of this 
     title shall designate a program manager to implement the 
     electronic commerce capability for that agency. The program 
     manager shall report directly to an official at a level not 
     lower than the senior procurement executive designated for 
     the agency under section 16(3) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 414(3)).''.
       (B) Section 2304(g)(4) of such title 10 is amended by 
     striking out ``31(g)'' and inserting in lieu thereof 
     ``31(f)''.
       (4)(A) Section 302C of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 252c) is 
     amended to read as follows:

     ``SEC. 302C. IMPLEMENTATION OF ELECTRONIC COMMERCE 
                   CAPABILITY.

       ``(a) Implementation of Electronic Commerce Capability.--
     (1) The head of each executive agency shall implement the 
     electronic commerce capability required by section 30 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 426).
       ``(2) In implementing the electronic commerce capability 
     pursuant to paragraph (1), the head of an executive agency 
     shall consult with the Administrator for Federal Procurement 
     Policy.
       ``(b) Designation of Agency Official.--The head of each 
     executive agency shall designate a program manager to 
     implement the electronic commerce capability for that agency. 
     The program manager shall report directly to an official at a 
     level not lower than the senior procurement executive 
     designated for the executive agency under section 16(3) of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 
     414(3)).''.
       (B) Section 303(g)(5) of the Federal Property and 
     Administrative Services Act (41 U.S.C. 253(g)(5)) is amended 
     by striking out ``31(g)'' and inserting in lieu thereof 
     ``31(f)''.
       (g) Effective Date.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall take effect 
     180 days after the date of the enactment of this Act.
       (2) The repeal made by subsection (c) of this section shall 
     take effect on the date of the enactment of this Act.

     SEC. 851. CONFORMANCE OF POLICY ON PERFORMANCE BASED 
                   MANAGEMENT OF CIVILIAN ACQUISITION PROGRAMS 
                   WITH POLICY ESTABLISHED FOR DEFENSE ACQUISITION 
                   PROGRAMS.

       (a) Performance Goals.--Section 313(a) of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     263(a)) is amended to read as follows:
       ``(a) Congressional Policy.--It is the policy of Congress 
     that the head of each executive agency should achieve, on 
     average, 90 percent of the cost, performance, and schedule 
     goals established for major acquisition programs of the 
     agency.''.
       (b) Conforming Amendment to Reporting Requirement.--Section 
     6(k) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 405(k)) is amended by inserting ``regarding major 
     acquisitions that is'' in the first sentence after 
     ``policy''.

     SEC. 852. MODIFICATION OF PROCESS REQUIREMENTS FOR THE 
                   SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.

       (a) Source Selection.--Paragraph (9) of section 5312(c) of 
     the Clinger-Cohen Act of 1996 (divisions D and E of Public 
     Law 104-106; 40 U.S.C. 1492(c)) is amended--
       (1) in subparagraph (A), by striking out ``, and ranking of 
     alternative sources,'' and inserting in lieu thereof ``or 
     sources,'';
       (2) in subparagraph (B)--
       (A) in the matter preceding clause (i), by inserting ``(or 
     a longer period, if approved by the Administrator)'' after 
     ``30 to 60 days'';
       (B) in clause (i), by inserting ``or sources'' after 
     ``source''; and
       (C) in clause (ii), by striking out ``that source'' and 
     inserting in lieu thereof ``the source whose offer is 
     determined to be most advantageous to the Government''; and
       (3) in subparagraph (C), by striking out ``with alternative 
     sources (in the order ranked)''.
       (b) Time Management Discipline.--Paragraph (12) of such 
     section is amended by inserting before the period at the end 
     the following: ``, except that the Administrator may approve 
     the application of a longer standard period''.

[[Page H9139]]

     SEC. 853. GUIDANCE AND STANDARDS FOR DEFENSE ACQUISITION 
                   WORKFORCE TRAINING REQUIREMENTS.

       The Secretary of Defense shall develop appropriate guidance 
     and standards to ensure that the Department of Defense will 
     continue, where appropriate and cost-effective, to enter into 
     contracts for the training requirements of sections 1723, 
     1724, and 1735 of title 10, United States Code, while 
     maintaining appropriate control over the content and quality 
     of such training.

     SEC. 854. STUDY AND REPORT TO CONGRESS ASSESSING DEPENDENCE 
                   ON FOREIGN SOURCES FOR RESISTORS AND 
                   CAPACITORS.

       (a) Study.--The Secretary of Defense shall conduct a study 
     of the capacitor and resistor industries in the United States 
     and the degree of United States dependence on foreign sources 
     for resistors and capacitors.
       (b) Report.--Not later than May 1, 1998, the Secretary 
     shall submit to Congress a report on the results of the study 
     under subsection (a). The report shall include the following:
       (1) An assessment of the industrial base for the production 
     of resistors and capacitors within the United States and a 
     projection of any changes in that base that are likely to 
     occur after the implementation of relevant tariff reductions 
     required by the Information Technology Agreement entered into 
     at the World Trade Organization Ministerial in Singapore in 
     December 1996.
       (2) An assessment of the level of dependence on foreign 
     sources for procurement of resistors and capacitors and a 
     projection of the level of dependence on foreign sources that 
     is likely to occur after the implementation of relevant 
     tariff reductions required by the Information Technology 
     Agreement.
       (3) The implications for the national security of the 
     United States of the projections reported under paragraphs 
     (1) and (2).
       (4) Recommendations for appropriate changes, if any, in 
     defense procurement policies or other Federal policies based 
     on such implications.

     SEC. 855. DEPARTMENT OF DEFENSE AND FEDERAL PRISON INDUSTRIES 
                   JOINT STUDY.

       (a) Study of Existing Procurement Procedures.--The 
     Secretary of Defense and the Director of Federal Prison 
     Industries shall jointly conduct a study of the procurement 
     procedures, regulations, and statutes that govern procurement 
     transactions between the Department of Defense and Federal 
     Prison Industries.
       (b) Report.--(1) The Secretary and the Director shall, not 
     later than 180 days after the date of the enactment of this 
     Act, submit to the committees listed in paragraph (2) a 
     report containing the findings of the study and 
     recommendations on the means to improve the efficiency and 
     reduce the cost of transactions described in subsection (a).
       (2) The committees referred to in paragraph (1) are the 
     following:
       (A) The Committee on Armed Services and the Committee on 
     the Judiciary of the Senate.
       (B) The Committee on National Security and the Committee on 
     the Judiciary of the House of Representatives.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Positions and Organizations and Other 
                            General Matters

Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff for 
              National Guard matters and for Reserve matters.
Sec. 902. Use of CINC Initiative Fund for force protection.
Sec. 903. Revision to required frequency for provision of policy 
              guidance for contingency plans.
Sec. 904. Annual justification for Department of Defense advisory 
              committees.
Sec. 905. Airborne reconnaissance management.
Sec. 906. Termination of the Armed Services Patent Advisory Board.
Sec. 907. Coordination of Department of Defense criminal investigations 
              and audits.

         Subtitle B--Department of Defense Personnel Management

Sec. 911. Reduction in personnel assigned to management headquarters 
              and headquarters support activities.
Sec. 912. Defense acquisition workforce.

         Subtitle C--Department of Defense Schools and Centers

Sec. 921. Professional military education schools.
Sec. 922. Center for Hemispheric Defense Studies.
Sec. 923. Correction to reference to George C. Marshall European Center 
              for Security Studies.

     Subtitle D--Department of Defense Intelligence-Related Matters

Sec. 931. Transfer of certain military department programs from TIARA 
              budget aggregation.
Sec. 932. Report on coordination of access of commanders and deployed 
              units to intelligence collected and analyzed by the 
              intelligence community.
Sec. 933. Protection of imagery, imagery intelligence, and geospatial 
              information and data.
Sec. 934. POW/MIA intelligence analysis.
Subtitle A--Department of Defense Positions and Organizations and Other 
                            General Matters

     SEC. 901. ASSISTANTS TO THE CHAIRMAN OF THE JOINT CHIEFS OF 
                   STAFF FOR NATIONAL GUARD MATTERS AND FOR 
                   RESERVE MATTERS.

       (a) Establishment of Positions.--The Secretary of Defense 
     shall establish the following positions within the Joint 
     Staff:
       (1) Assistant to the Chairman of the Joint Chiefs of Staff 
     for National Guard Matters.
       (2) Assistant to the Chairman of the Joint Chiefs of Staff 
     for Reserve Matters.
       (b) Selection.--(1) The Assistant to the Chairman of the 
     Joint Chiefs of Staff for National Guard Matters shall be 
     selected by the Chairman from officers of the Army National 
     Guard of the United States or the Air Guard of the United 
     States who--
       (A) are recommended for such selection by their respective 
     Governors or, in the case of the District of Columbia, the 
     commanding general of the District of Columbia National 
     Guard;
       (B) have had at least 10 years of federally recognized 
     commissioned service in the National Guard; and
       (C) are in a grade above the grade of colonel.
       (2) The Assistant to the Chairman of the Joint Chiefs of 
     Staff for Reserve Matters shall be selected by the Chairman 
     from officers of the Army Reserve, the Naval Reserve, the 
     Marine Corps Reserve or the Air Force Reserve who--
       (A) are recommended for such selection by the Secretary of 
     the military department concerned;
       (B) have had at least 10 years of commissioned service in 
     their reserve component; and
       (C) are in a grade above the grade of colonel or, in the 
     case of the Naval Reserve, captain.
       (c) Term of Office.--Each Assistant to the Chairman under 
     subsection (a) serves at the pleasure of the Chairman for a 
     term of two years and may be continued in that assignment in 
     the same manner for one additional term. However, in time of 
     war there is no limit on the number of terms.
       (d) Grade.--Each Assistant to the Chairman, while so 
     serving, holds the grade of major general or, in the case of 
     the Naval Reserve, rear admiral. Each such officer shall be 
     considered to be serving in a position external to that 
     officer's Armed Force for purposes of section 721 of title 
     10, United States Code, as added by section 501(a).
       (e) Duties.--The Assistant to the Chairman for National 
     Guard Matters is an adviser to the Chairman on matters 
     relating to the National Guard and performs the duties 
     prescribed for that position by the Chairman. The Assistant 
     to the Chairman for Reserve Matters is an adviser to the 
     Chairman on matters relating to the reserves and performs the 
     duties prescribed for that position by the Chairman.
       (f) Other Reserve Component Representation on Joint 
     Staff.--(1) The Secretary of Defense, in consultation with 
     the Chairman of the Joint Chiefs, shall develop appropriate 
     policy guidance to ensure that, to the maximum extent 
     practicable, the level of reserve component officer 
     representation within the Joint Staff is commensurate with 
     the significant role of the reserve components within the 
     Total Force.
       (2) Not later than March 1, 1998, the Secretary shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives a report describing the steps taken and being 
     taken to implement this subsection.
       (g) Effective Date.--The positions specified in subsection 
     (a) shall be established by the Secretary of Defense not 
     later than 60 days after the date of the enactment of this 
     Act.

     SEC. 902. USE OF CINC INITIATIVE FUND FOR FORCE PROTECTION.

       Section 166a(b) of title 10, United States Code, is amended 
     by adding at the end the following:
       ``(9) Force protection.''.

     SEC. 903. REVISION TO REQUIRED FREQUENCY FOR PROVISION OF 
                   POLICY GUIDANCE FOR CONTINGENCY PLANS.

       Section 113(g)(2) of title 10, United States Code, is 
     amended--
       (1) in the first sentence, by striking out ``annually''; 
     and
       (2) in the second sentence, by inserting ``be provided 
     every two years or more frequently as needed and shall'' 
     after ``Such guidance shall''.

     SEC. 904. ANNUAL JUSTIFICATION FOR DEPARTMENT OF DEFENSE 
                   ADVISORY COMMITTEES.

       (a) Annual Justification Required.--Chapter 7 of title 10, 
     United States Code, is amended by adding after section 182, 
     as added by section 382(a)(1), the following new section:

     ``Sec. 183. Advisory committees: annual justification 
       required

       ``(a) Annual Report.--The Secretary of Defense shall 
     include in the annual report of the Secretary under section 
     113(c) of this title a report on advisory committees of the 
     Department of Defense. In each such report, the Secretary 
     shall--
       ``(1) identify each advisory committee that the Secretary 
     proposes to support, or that the Secretary is required by law 
     or direction from the President to support, during the next 
     fiscal year; and
       ``(2) for each committee identified under paragraph (1), 
     set forth--
       ``(A) the justification or requirement for that committee; 
     and
       ``(B) the projected cost to the Department of Defense to 
     support that committee during the next fiscal year.
       ``(b) Advisory Committee Defined.--In this section, the 
     term `advisory committee' means an

[[Page H9140]]

     entity that is subject to the provisions of the Federal 
     Advisory Committee Act (5 U.S.C. App.).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the item 
     relating to section 182, as added by section 382(a)(2), the 
     following new item:

``183. Advisory committees: annual justification required.''.

     SEC. 905. AIRBORNE RECONNAISSANCE MANAGEMENT.

       (a) Reorganization of Defense Airborne Reconnaissance 
     Management.--Not later than September 30, 1998, the Secretary 
     of Defense shall reorganize the management of defense 
     airborne reconnaissance within the Department Defense in 
     accordance with the plan developed under subsection (b).
       (b) Plan and Report.--(1) The Secretary of Defense shall 
     develop a plan to reorganize the following organizations by 
     transferring functions as required under subsections (c) and 
     (d):
       (A) The organization within the Department of Defense that 
     is subordinate to the Under Secretary of Defense for 
     Acquisition and Technology and known as the Defense Airborne 
     Reconnaissance Office.
       (B) The organization within the Department of Defense that 
     is subordinate to the Secretary of the Navy and known as the 
     Unmanned Aerial Vehicle Joint Program Office
       (2) The Secretary shall submit to the congressional defense 
     committees a report containing--
       (A) the plan developed under paragraph (1); and
       (B) an explanation of how the plan addresses the findings 
     and recommendations in the final report of the Task Force on 
     Defense Reform (established by the Secretary of Defense on 
     May 14, 1997, and headed by the Deputy Secretary of Defense).
       (3) The plan under paragraph (1) shall be developed, and 
     the report under paragraph (2) shall be submitted, not later 
     than March 1, 1998.
       (c) Transfer of Certain Functions to Secretaries of 
     Military Departments.--(1) Not later than September 30, 1998, 
     the Secretary of Defense shall transfer to the Secretaries of 
     the military departments those functions specified in 
     paragraph (2) that were performed on the day before the date 
     of the enactment this Act by the Defense Airborne 
     Reconnaissance Office and the Unmanned Aerial Vehicle Joint 
     Program Office.
       (2) The functions referred to in paragraph (1) are the 
     functions of the Defense Airborne Reconnaissance Office and 
     the Unmanned Aerial Vehicle Joint Program Office relating to 
     their responsibilities for acquisition of systems, budgeting, 
     program management (for research, development, test, and 
     evaluation, for procurement, for life-cycle support, and for 
     operations), and related responsibilities for individual 
     airborne reconnaissance programs.
       (d) Transfer of Certain Functions to Defense Airborne 
     Reconnaissance Office.--(1) Not later than September 30, 
     1998, the Secretary of Defense shall transfer to the Defense 
     Airborne Reconnaissance Office those functions specified in 
     paragraph (2) that were performed on the day before the date 
     of the enactment of this Act by the Unmanned Aerial Vehicle 
     Joint Program Office.
       (2) The functions referred to in paragraph (1) are the 
     functions of the Unmanned Aerial Vehicle Joint Program Office 
     relating to its responsibilities for management and oversight 
     of defense airborne reconnaissance architecture, 
     requirements, and system interfaces (other than the 
     responsibilities specified in subsection (c)(2)).

     SEC. 906. TERMINATION OF THE ARMED SERVICES PATENT ADVISORY 
                   BOARD.

       (a) Termination of Board.--The organization within the 
     Department of Defense known as the Armed Services Patent 
     Advisory Board is terminated. No funds available for the 
     Department of Defense may be used for the operation of that 
     Board after the effective date specified in subsection (c).
       (b) Transfer of Functions.--All functions performed on the 
     day before the date of the enactment of this Act by the Armed 
     Services Patent Advisory Board (including performance of the 
     responsibilities of the Department of Defense for security 
     review of patent applications under chapter 17 of title 35, 
     United States Code) shall be transferred to the Defense 
     Technology Security Administration.
       (c) Effective Date.--Subsection (a) shall take effect at 
     the end of the 120-day period beginning on the date of the 
     enactment of this Act.

     SEC. 907. COORDINATION OF DEPARTMENT OF DEFENSE CRIMINAL 
                   INVESTIGATIONS AND AUDITS.

       (a) Military Department Criminal Investigative 
     Organizations.--(1) The heads of the military department 
     criminal investigative organizations shall take such action 
     as may be practicable to conserve the limited resources 
     available to the military department criminal investigative 
     organizations by sharing personnel, expertise, 
     infrastructure, training, equipment, software, and other 
     resources.
       (2) The heads of the military department criminal 
     investigative organizations shall meet on a regular basis to 
     determine the manner in which and the extent to which the 
     military department criminal investigative organizations will 
     be able to share resources.
       (b) Defense Auditing Organizations.--(1) The heads of the 
     defense auditing organizations shall take such action as may 
     be practicable to conserve the limited resources available to 
     the defense auditing organizations by sharing personnel, 
     expertise, infrastructure, training, equipment, software, and 
     other resources.
       (2) The heads of the defense auditing organizations shall 
     meet on a regular basis to determine the manner in which and 
     the extent to which the defense auditing organizations will 
     be able to share resources.
       (c) Implementation Plan.--Not later than December 31, 1997, 
     the Secretary of Defense shall submit to Congress a plan 
     designed to maximize the resources available to the military 
     department criminal investigative organizations and the 
     defense auditing organizations, as required by this section.
       (d) Definitions.--For purposes of this section:
       (1) The term ``military department criminal investigative 
     organizations'' means--
       (A) the Army Criminal Investigation Command;
       (B) the Naval Criminal Investigative Service; and
       (C) the Air Force Office of Special Investigations.
       (2) The term ``defense auditing organizations'' means--
       (A) the Office of the Inspector General of the Department 
     of Defense;
       (B) the Defense Contract Audit Agency;
       (C) the Army Audit Agency;
       (D) the Naval Audit Service; and
       (E) the Air Force Audit Agency.
         Subtitle B--Department of Defense Personnel Management

     SEC. 911. REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT 
                   HEADQUARTERS AND HEADQUARTERS SUPPORT 
                   ACTIVITIES.

       (a) In General.--(1) Chapter 3 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 130a. Management headquarters and headquarters support 
       activities personnel: limitation

       ``(a) Limitation.--Effective October 1, 2002, the number of 
     management headquarters and headquarters support activities 
     personnel in the Department of Defense may not exceed 75 
     percent of the baseline number.
       ``(b) Phased Reduction.--The number of management 
     headquarters and headquarters support activities personnel in 
     the Department of Defense--
       ``(1) as of October 1, 1998, may not exceed 95 percent of 
     the baseline number;
       ``(2) as of October 1, 1999, may not exceed 90 percent of 
     the baseline number;
       ``(3) as of October 1, 2000, may not exceed 85 percent of 
     the baseline number; and
       ``(4) as of October 1, 2001, may not exceed 80 percent of 
     the baseline number.
       ``(c) Baseline Number.--In this section, the term `baseline 
     number' means the number of management headquarters and 
     headquarters support activities personnel in the 
     Department of Defense as of October 1, 1997.
       ``(d) Limitation on Management Headquarters and 
     Headquarters Support Personnel Assigned to the United States 
     Transportation Command.--(1) Effective October 1, 1998, the 
     number of management headquarters activities and management 
     headquarters support activities personnel assigned to, or 
     employed in, the United States Transportation Command may not 
     exceed the number equal to 95 percent of the number of such 
     personnel as of October 1, 1997.
       ``(2) For purposes of paragraph (1), the United States 
     Transportation Command shall be considered to include the 
     following:
       ``(A) The United States Transportation Command 
     Headquarters.
       ``(B) The Air Mobility Command of the Air Force.
       ``(C) The Military Sealift Command of the Navy.
       ``(D) The Military Traffic Management Command of the Army.
       ``(E) The Defense Courier Service.
       ``(F) Any other element of the Department of Defense 
     assigned to the United States Transportation Command.
       ``(3) The Secretary of Defense may waive or suspend 
     operation of paragraph (1) in the event of a war or national 
     emergency.
       ``(e) Management Headquarters and Headquarters Support 
     Activities Personnel Defined.--In this section:
       ``(1) The term `management headquarters and headquarters 
     support activities personnel' means military and civilian 
     personnel of the Department of Defense who are assigned to, 
     or employed in, functions in management headquarters 
     activities or in management headquarters support activities.
       ``(2) The terms `management headquarters activities' and 
     `management headquarters support activities' have the 
     meanings given those terms in Department of Defense Directive 
     5100.73, entitled `Department of Defense Management 
     Headquarters and Headquarters Support Activities', as in 
     effect on November 12, 1996.
       ``(f) Limitation on Reassignment of Functions.--In carrying 
     out reductions in the number of personnel assigned to, or 
     employed in, management headquarters and headquarters support 
     activities in order to comply with this section, the 
     Secretary of Defense and the Secretaries of the military 
     departments may not reassign functions in order to evade the 
     requirements of this section.
       ``(g) Flexibility.--If the Secretary of Defense determines, 
     and certifies to Congress, that the limitation in subsection 
     (b) with respect to any fiscal year would adversely affect 
     United States national security, the Secretary may waive the 
     limitation under that subsection with respect to that fiscal 
     year. If the Secretary of Defense determines, and certifies 
     to Congress, that the limitation in subsection (a) during 
     fiscal year 2001 would adversely affect United States 
     national security, the Secretary may waive the limitation 
     under that subsection with respect to that fiscal year. The 
     authority under this subsection may be used only once, with 
     respect to a single fiscal year.''.

[[Page H9141]]

       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``130a. Management headquarters and headquarters support activities 
              personnel: limitation.''.

       (b) Implementation Report.--Not later than January 15, 
     1998, the Secretary of Defense shall submit to Congress a 
     report--
       (1) containing a plan to achieve the personnel reductions 
     required by section 130a of title 10, United States Code, as 
     added by subsection (a); and
       (2) including the recommendations of the Secretary 
     regarding--
       (A) the revision, replacement, or augmentation of 
     Department of Defense Directive 5100.73, entitled 
     ``Department of Defense Management Headquarters and 
     Headquarters Support Activities'', as in effect on 
     November 12, 1996; and
       (B) the revision of the definitions of the terms 
     ``management headquarters activities'' and ``management 
     headquarters support activities'' under that Directive so 
     that those terms apply uniformly throughout the Department of 
     Defense.
       (c)  Duties of Task Force on Defense Reform to Include 
     Consideration Of Management Headquarters Activities.--(1) The 
     Secretary of Defense shall require that the areas of study of 
     the Task Force on Defense Reform (established by the 
     Secretary of Defense on May 14, 1997, and headed by the 
     Deputy Secretary of Defense) include an examination of the 
     missions, functions, and responsibilities of the various 
     management headquarters activities and management 
     headquarters support activities of the Department of Defense. 
     In carrying out that examination of those activities, the 
     Task Force shall identify areas of duplication in those 
     activities and recommend to the Secretary options to 
     streamline, reduce, and eliminate redundancies.
       (2) The examination of the missions, functions, and 
     responsibilities of the various management headquarters 
     activities and management headquarters support activities of 
     the Department of Defense under paragraph (1) shall include 
     the following:
       (A) An assessment of benefits of consolidation or selected 
     elimination of Department of Defense management headquarters 
     activities and management headquarters support activities.
       (B) An assessment of the opportunities to streamline the 
     management headquarters and management headquarters support 
     infrastructure that were realized as a result of the 
     enactment of the Federal Acquisition Streamlining Act of 1994 
     (Public Law 103-355) and the Clinger-Cohen Act of 1996 
     (divisions D and E of Public Law 104-106) or as result of 
     other management reform initiatives implemented 
     administratively during the period from 1993 through 1997.
       (C) An assessment of such other options for streamlining or 
     restructuring the management headquarters and management 
     headquarters support infrastructure as the Task Force 
     considers appropriate and as can be carried out under 
     existing provisions of law.
       (3) Not later than March 1, 1998, the Secretary of Defense 
     shall submit to Congress a report on the results of the 
     examination by the Task Force under this subsection. The 
     Secretary shall include in the report any report to the 
     Secretary from the Task Force with respect to the matters 
     described in paragraphs (1) and (2).
       (d) Codification of Prior Permanent Limitation on OSD 
     Personnel.--(1) Chapter 4 of title 10, United States Code, is 
     amended by adding at the end a new section 143 consisting 
     of--
       (A) a heading as follows:

     ``Sec. 143. Office of the Secretary of Defense personnel: 
       limitation'';

       and
       (B) a text consisting of the text of subsections (a) 
     through (f) of section 903 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2617).
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``143. Office of the Secretary of Defense personnel: limitation.''.

       (3) Section 903 of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2617) is 
     repealed.

     SEC. 912. DEFENSE ACQUISITION WORKFORCE.

       (a) Reduction of Defense Acquisition Workforce.--(1) The 
     Secretary of Defense shall accomplish reductions in defense 
     acquisition personnel positions during fiscal year 1998 so 
     that the total number of such personnel as of October 1, 
     1998, is less than the total number of such personnel as 
     of October 1, 1997, by at least the applicable number 
     determined under paragraph (2).
       (2)(A) The applicable number for purposes of paragraph (1) 
     is 25,000. However, the Secretary of Defense may specify a 
     lower number, which may not be less than 10,000, as the 
     applicable number for purposes of paragraph (1) if the 
     Secretary determines, and certifies to Congress not later 
     than June 1, 1998, that an applicable number greater than the 
     number specified by the Secretary would be inconsistent with 
     the cost-effective management of the defense acquisition 
     system to obtain best value equipment and would adversely 
     affect military readiness.
       (B) The Secretary shall include with such a certification a 
     detailed explanation of each of the matters certified.
       (C) The authority of the Secretary under subparagraph (A) 
     may only be delegated to the Deputy Secretary of Defense.
       (3) For purposes of this subsection, the term ``defense 
     acquisition personnel'' means military and civilian personnel 
     (other than civilian personnel who are employed at a 
     maintenance depot) who are assigned to, or employed in, 
     acquisition organizations of the Department of Defense (as 
     specified in Department of Defense Instruction numbered 
     5000.58 dated January 14, 1992).
       (b) Report on Specific Acquisition Positions Previously 
     Eliminated.--Not later than 30 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to Congress a report on reductions in the defense acquisition 
     workforce made since fiscal year 1989. The report shall show 
     aggregate reductions by fiscal year and shall show for each 
     fiscal year reductions identified by specific job title, 
     classification, or position. The report shall also identify 
     those reductions carried out pursuant to law (and how the 
     Secretary implemented any statutory requirement for such 
     reductions, including definition of the workforce subject to 
     the reduction) and those reductions carried out as a result 
     of base closures and realignments under the so-called BRAC 
     process. The Secretary shall include in the report a 
     definition of the term ``defense acquisition workforce'' that 
     is to be applied uniformly throughout the Department of 
     Defense.
       (c) Implementation Plan To Streamline and Improve 
     Acquisition Organizations.--(1) Not later than April 1, 1998, 
     the Secretary of Defense shall submit to Congress a report 
     containing a plan to streamline the acquisition 
     organizations, workforce, and infrastructure of the 
     Department of Defense. The Secretary shall include with the 
     report a detailed discussion of the recommendations of the 
     Secretary based on the review under subsection (d) and the 
     assessment of the Task Force on Defense Reform pursuant to 
     subsection (e), together with a request for the enactment of 
     any legislative changes necessary for implementation of the 
     plan. The Secretary shall include in the report the results 
     of the review under subsection (d) and the independent 
     assessment of the Task Force on Defense Reform pursuant to 
     subsection (e).
       (2) In carrying out this subsection and subsection (d), the 
     Secretary of Defense shall formally consult with the Chairman 
     of the Joint Chiefs of Staff, the Director of Program 
     Analysis and Evaluation, the Under Secretary of Defense 
     (Comptroller), and the Under Secretary for Acquisition and 
     Technology.
       (d) Review of Acquisition Organizations and Functions.--The 
     Secretary of Defense shall conduct a review of the 
     organizations and functions of the Department of Defense 
     acquisition activities and of the personnel required to carry 
     out those functions. The review shall identify the following:
       (1) Opportunities for cross-service, cross-functional 
     arrangements within the military services and defense 
     agencies.
       (2) Specific areas of overlap, duplication, and redundancy 
     among the various acquisition organizations.
       (3) Opportunities to further streamline acquisition 
     processes.
       (4) Benefits of an enhanced Joint Requirements Oversight 
     Council in the acquisition process.
       (5) Alternative consolidation options for acquisition 
     organizations.
       (6) Alternative methods for performing industry oversight 
     and quality assurance.
       (7) Alternative options to shorten the procurement cycle.
       (8) Alternative acquisition infrastructure reduction 
     options within current authorities.
       (9) Alternative organizational arrangements that capitalize 
     on core acquisition competencies among the military services 
     and defense agencies.
       (10) Future acquisition personnel requirements of the 
     Department.
       (11) Adequacy of the Program, Plans, and Budgeting System 
     in fulfilling current and future acquisition needs of the 
     Department.
       (12) Effect of technology and advanced management tools in 
     the future acquisition system.
       (13) Applicability of more flexible alternative approaches 
     to the current civil service system for the acquisition 
     workforce.
       (14) Adequacy of Department of Defense Instruction numbered 
     5000.58 dated January 14, 1992.
       (e)  Duties of Task Force on Defense Reform to Include 
     Consideration Of Acquisition Organizations.--(1) The 
     Secretary of Defense shall require that the areas of study of 
     the Task Force on Defense Reform (established by the 
     Secretary of Defense on May 14, 1997, and headed by the 
     Deputy Secretary of Defense) include an examination of the 
     missions, functions, and responsibilities of the various 
     acquisition organizations of the Department of Defense, 
     including the acquisition workforce of the Department. In 
     carrying out that examination of those organizations and that 
     workforce, the Task Force shall identify areas of duplication 
     in defense acquisition organization and recommend to the 
     Secretary options to streamline, reduce, and eliminate 
     redundancies.
       (2) The examination of the missions, functions, and 
     responsibilities of the various acquisition organizations of 
     the Department of Defense under paragraph (1) shall include 
     the following:
       (A) An assessment of benefits of consolidation or selected 
     elimination of Department of Defense acquisition 
     organizations.
       (B) An assessment of the opportunities to streamline the 
     defense acquisition infrastructure that were realized as a 
     result of the enactment of the Federal Acquisition 
     Streamlining Act of 1994 (Public Law 103-355) and the 
     Clinger-Cohen Act of 1996 (divisions D and E of Public Law 
     104-106) or as result of other acquisition reform initiatives 
     implemented administratively during the period from 1993 
     through 1997.
       (C) An assessment of such other options for streamlining or 
     restructuring the defense acquisition infrastructure as the 
     Task Force considers appropriate and as can be carried out 
     under existing provisions of law.
       (3) Not later than March 1, 1998, the Task Force shall 
     submit to the Secretary a report on

[[Page H9142]]

     the results of its review of the acquisition organizations of 
     the Department of Defense, including any recommendations of 
     the Task Force for improvements to those organizations.
       (f) Technical Reference Correction.--Section 1721(c) of 
     title 10, United States Code, is amended by striking out 
     ``November 25, 1988'' and inserting in lieu thereof 
     ``November 12, 1996''.
         Subtitle C--Department of Defense Schools and Centers

     SEC. 921. PROFESSIONAL MILITARY EDUCATION SCHOOLS.

       (a) Component Institutions of the National Defense 
     University.--(1) Chapter 108 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 2165. National Defense University: component 
       institutions

       ``(a) In General.--There is a National Defense University 
     in the Department of Defense.
       ``(b) Component Institutions.--The National Defense 
     University consists of the following institutions:
       ``(1) The National War College.
       ``(2) The Industrial College of the Armed Forces.
       ``(3) The Armed Forces Staff College.
       ``(4) The Institute for National Strategic Studies.
       ``(5) The Information Resources Management College.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2165. National Defense University: component institutions.''.

       (b) Marine Corps University as Professional Military 
     Education School.--Subsection (d) of section 2162 of such 
     title is amended to read as follows:
       ``(d) Professional Military Education Schools.--This 
     section applies to each of the following professional 
     military education schools:
       ``(1) The National Defense University.
       ``(2) The Army War College.
       ``(3) The College of Naval Warfare.
       ``(4) The Air War College.
       ``(5) The United States Army Command and General Staff 
     College.
       ``(6) The College of Naval Command and Staff.
       ``(7) The Air Command and Staff College.
       ``(8) The Marine Corps University.''.
       (c) Repeal of Duplicative Definition.--Section 1595(d) of 
     such title is amended--
       (1) by striking out ``(1)'' before ``In the case of''; and
       (2) by striking out paragraph (2).

     SEC. 922. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

       (a) Institution of the National Defense University.--
     Subsection (b) of section 2165 of title 10, United States 
     Code, as added by section 921(a)(1), is amended by adding at 
     the end the following new paragraph:
       ``(6) The Center for Hemispheric Defense Studies.''.
       (b) Civilian Faculty Members.--Section 1595 of title 10, 
     United States Code, is amended by striking out subsections 
     (e) and (f) and inserting in lieu thereof the following:
       ``(e) Applicability to Director and Deputy Director at 
     Certain Institutions.--In addition to the persons specified 
     in subsection (a), this section also applies with respect to 
     the Director and the Deputy Director of the following:
       ``(1) The George C. Marshall European Center for Security 
     Studies.
       ``(2) The Asia-Pacific Center for Security Studies.
       ``(3) The Center for Hemispheric Defense Studies.''.

     SEC. 923. CORRECTION TO REFERENCE TO GEORGE C. MARSHALL 
                   EUROPEAN CENTER FOR SECURITY STUDIES.

       (a) Correction to Reference to Name of Center.--Subsection 
     (a) of section 506 of the Intelligence Authorization Act, 
     Fiscal Year 1990 (Public Law 101-193; 8 U.S.C. 1430 note), is 
     amended by striking out ``the United States Army Russian 
     Institute'' and inserting in lieu thereof ``the George C. 
     Marshall European Center for Security Studies''.
       (b) Section Heading.--The heading of such section is 
     amended to read as follows:


``requirements for citizenship for staff of george c. marshall european 
                     center for security studies''.

         Subtitle D--Department of Defense Intelligence Matters

     SEC. 931. TRANSFER OF CERTAIN MILITARY DEPARTMENT PROGRAMS 
                   FROM TIARA BUDGET AGGREGATION.

       (a) Transfer.--Effective March 1, 1998, the Secretary of 
     Defense shall, for each program identified by the Secretary 
     under subsection (c)(2), transfer the management and 
     budgeting of funds for that program from the TIARA budget 
     aggregation to a nonintelligence budget activity of the 
     military department responsible for that program.
       (b) Assessment.--The Secretary of Defense shall conduct an 
     assessment of the policy of the Department of Defense that is 
     used for determining the programs of the Department that are 
     included within the TIARA budget aggregation. In conducting 
     the assessment, the Secretary--
       (1) shall consider whether the current policy is in need of 
     revision to reflect changes in technology and battlefield use 
     of TIARA systems;
       (2) shall specifically consider the appropriateness of the 
     continued inclusion in the TIARA budget aggregation of each 
     of the programs described in subsection (e); and
       (3) may consider the appropriateness of the continued 
     inclusion in the TIARA budget aggregation of any other 
     program (in addition to the programs described to in 
     subsection (e)) that as of the date of the enactment of this 
     Act is managed and budgeted as part of the TIARA budget 
     aggregation.
       (c) Report.--Not later than March 1, 1998, the Secretary of 
     Defense shall submit to Congress a report on the assessment 
     carried out under section (b). The Secretary shall include in 
     the report--
       (1) a description of any proposed changes to Department of 
     Defense policies for determining which programs are included 
     in the TIARA budget aggregation; and
       (2) identification of each program (among the programs 
     considered pursuant to paragraphs (2) and (3) of subsection 
     (b)) for which the management and budgeting of funds is to be 
     transferred under subsection (a).
       (d) Identification of Programs.--(1) In specifying the 
     programs to be included on the list under subsection (c)(2), 
     the Secretary--
       (A) shall (except as otherwise provided pursuant to a 
     waiver under paragraph (2)) include each program described in 
     subsection (e); and
       (B) may include such additional programs considered in the 
     assessment pursuant to subsection (b)(3) as the Secretary 
     determines appropriate.
       (2) The Secretary, after considering the results of the 
     assessment under subsection (c), may waive the applicability 
     of paragraph (1)(A) to any program described in subsection 
     (e). The Secretary shall include in the report under 
     subsection (c) identification of each such program for which 
     the Secretary has granted such a waiver and supporting 
     rationale for each waiver.
       (e) Covered Programs.--The programs described in this 
     subsection are the following (each of which, as of the date 
     of the enactment of this Act, is managed and budgeted as part 
     of the TIARA budget aggregation):
       (1) Each targeting or target acquisition program of the 
     Department of Defense, including the Joint Surveillance and 
     Target Attack Radar System (JSTARS) and the Advanced 
     Deployable System.
       (2) Each Tactical Warning and Attack Assessment program of 
     the Department of Defense, including the Defense Support 
     Program, the Space-Based Infrared Program, and early warning 
     radars.
       (3) Each tactical communications system of the Department 
     of Defense, including the Joint Tactical Terminal.
       (f) TIARA Budget Aggregation Defined.--For purposes of this 
     section, the term ``TIARA budget aggregation'' means the 
     aggregation of programs of the Department of Defense for 
     which funds are managed and budgeted through a common 
     designation as Tactical Intelligence and Related Activities 
     (TIARA) of the Department of Defense.

     SEC. 932. REPORT ON COORDINATION OF ACCESS OF COMMANDERS AND 
                   DEPLOYED UNITS TO INTELLIGENCE COLLECTED AND 
                   ANALYZED BY THE INTELLIGENCE COMMUNITY.

       (a) Findings.--Congress makes the following findings:
       (1) Coordination of operational intelligence support for 
     the commanders of the combatant commands and deployed units 
     of the Armed Forces has proven to be inadequate.
       (2) Procedures used to reconcile information among various 
     intelligence community and Department of Defense data bases 
     have proven to be inadequate and, being inadequate, have 
     diminished the usefulness of that information and have 
     precluded commanders and planners within the Armed Forces 
     from fully benefiting from key information that should have 
     been available to them.
       (3) Excessive compartmentalization of responsibilities and 
     information within the Department of Defense and the other 
     elements of the intelligence community has resulted in 
     inaccurate analysis of important intelligence material.
       (4) Excessive restrictions on the distribution of 
     information within the executive branch have disadvantaged 
     units of the Armed Forces that would have benefited most from 
     the information.
       (5) Procedures used in the Department of Defense to ensure 
     that critical intelligence information is provided to the 
     right combat units in a timely manner failed during the 
     Persian Gulf War and, as a result, information about 
     potential chemical weapons storage locations did not reach 
     the units that eventually destroyed those storage areas.
       (6) A recent, detailed review of the events leading to and 
     following the destruction of chemical weapons by members of 
     the Armed Forces at Khamisiyah, Iraq, during the Persian Gulf 
     War has revealed a number of inadequacies in the way the 
     Department of Defense and the other elements of the 
     intelligence community handled, distributed, recorded, and 
     stored intelligence information about the threat of exposure 
     of United States forces to chemical weapons and the toxic 
     agents in those weapons.
       (7) The inadequacy of procedures for recording the receipt 
     of, and reaction to, intelligence reports provided by the 
     intelligence community to combat units of the Armed Forces 
     during the Persian Gulf War has caused it to be impossible to 
     analyze the failures in transmission of intelligence-related 
     information on the location of chemical weapons at 
     Khamisiyah, Iraq, that resulted in the demolition of chemical 
     weapons by members of the Armed Forces unaware of the hazards 
     to which they were exposed.
       (b) Report Requirement.--Not later than March 1, 1998, the 
     Secretary of Defense shall submit to Congress a report that 
     identifies the specific actions that have been taken or are 
     being taken to ensure that there is adequate coordination of 
     access of commanders of the combatant commands and deployed 
     units of the Armed Forced to intelligence collected and 
     analyzed by the intelligence community.

     SEC. 933. PROTECTION OF IMAGERY, IMAGERY INTELLIGENCE, AND 
                   GEOSPATIAL INFORMATION AND DATA.

       (a) Protection of Information on Capabilities.--Paragraph 
     (1)(B) of section 455(b) of

[[Page H9143]]

     title 10, United States Code, is amended by inserting ``, or 
     capabilities,'' after ``methods''.
       (b) Products Protected.--(1) Paragraph (2) of such section 
     is amended to read as follows:
       ``(2) In this subsection, the term `geodetic product' means 
     imagery, imagery intelligence, or geospatial information.''.
       (2) Section 467(4) of title 10, United States Code, is 
     amended--
       (A) by inserting ``and'' at the end of subparagraph (A);
       (B) in subparagraph (B), by striking out ``and geodetic 
     data; and'' and inserting in lieu thereof ``geodetic data, 
     and related products.''; and
       (C) by striking out subparagraph (C).

     SEC. 934. POW/MIA INTELLIGENCE ANALYSIS.

       (a) Intelligence Analysis.--The Director of Central 
     Intelligence, in consultation with the Secretary of Defense, 
     shall provide intelligence analysis on matters concerning 
     prisoners of war and missing persons (as defined in chapter 
     76 of title 10, United States Code) to all departments and 
     agencies of the Federal Government involved in such matters.
       (b) Use of Intelligence in Analysis of POW/MIA Cases in 
     Department of Defense.--The Secretary of Defense shall ensure 
     that the Defense Prisoner of War/Missing Personnel Office of 
     the Department of Defense takes into full account all 
     intelligence regarding matters concering of prisoners of war 
     and missing persons (as defined in chapter 76 of title 10, 
     United States Code) in analyzing cases involving such 
     persons.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of unauthorized fiscal year 1997 
              defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
              for fiscal year 1997.
Sec. 1005. Increase in fiscal year 1996 transfer authority.
Sec. 1006. Revision of authority for Fisher House trust funds.
Sec. 1007. Flexibility in financing closure of certain outstanding 
              contracts for which a small final payment is due.
Sec. 1008. Biennial financial management improvement plan.
Sec. 1009. Estimates and requests for procurement and military 
              construction for the reserve components.
Sec. 1010. Sense of Congress regarding funding for reserve component 
              modernization not requested in President's budget.
Sec. 1011. Management of working-capital funds.
Sec. 1012. Authority of Secretary of Defense to settle claims relating 
              to pay, allowances, and other benefits.
Sec. 1013. Payment of claims by members for loss of personal property 
              due to flooding in Red River Basin.
Sec. 1014. Advances for payment of public services.
Sec. 1015. United States Man and the Biosphere Program limitation.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Procedures for sale of vessels stricken from the Naval 
              Vessel Register.
Sec. 1022. Authority to enter into a long-term charter for a vessel in 
              support of the Surveillance Towed-Array Sensor (SURTASS) 
              program.
Sec. 1023. Transfer of two specified obsolete tugboats of the Army.
Sec. 1024. Congressional review period with respect to transfer of ex-
              U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
Sec. 1025. Transfers of naval vessels to certain foreign countries.
Sec. 1026. Reports relating to export of vessels that may contain 
              polychlorinated biphenyls.
Sec. 1027. Conversion of defense capability preservation authority to 
              Navy shipbuilding capability preservation authority.

                  Subtitle C--Counter-Drug Activities

Sec. 1031. Use of National Guard for State drug interdiction and 
              counter-drug activities.
Sec. 1032. Authority to provide additional support for counter-drug 
              activities of Mexico.
Sec. 1033. Authority to provide additional support for counter-drug 
              activities of Peru and Colombia.
Sec. 1034. Annual report on development and deployment of narcotics 
              detection technologies.

       Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1041. Repeal of miscellaneous reporting requirements.
Sec. 1042. Study of transfer of modular airborne fire fighting system.
Sec. 1043. Overseas infrastructure requirements.
Sec. 1044. Additional matters for annual report on activities of the 
              General Accounting Office.
Sec. 1045. Eye safety at small arms firing ranges.
Sec. 1046. Reports on Department of Defense procedures for 
              investigating military aviation accidents and for 
              notifying and assisting families of victims.

               Subtitle E--Matters Relating to Terrorism

Sec. 1051. Oversight of counterterrorism and antiterrorism activities; 
              report.
Sec. 1052. Provision of adequate troop protection equipment for Armed 
              Forces personnel engaged in peace operations; report on 
              antiterrorism activities and protection of personnel.

            Subtitle F--Matters Relating to Defense Property

Sec. 1061. Lease of nonexcess personal property of military 
              departments.
Sec. 1062. Lease of nonexcess property of Defense Agencies.
Sec. 1063. Donation of excess chapel property to churches damaged or 
              destroyed by arson or other acts of terrorism.
Sec. 1064. Authority of the Secretary of Defense concerning disposal of 
              assets under cooperative agreements on air defense in 
              Central Europe.
Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition and 
              ammunition components.
Sec. 1066. Transfer of B-17 aircraft to museum.
Sec. 1067. Report on disposal of excess and surplus materials.

                       Subtitle G--Other Matters

Sec. 1071. Authority for special agents of the Defense Criminal 
              Investigative Service to execute warrants and make 
              arrests.
Sec. 1072. Study of investigative practices of military criminal 
              investigative organizations relating to sex crimes.
Sec. 1073. Technical and clerical amendments.
Sec. 1074. Sustainment and operation of the Global Positioning System.
Sec. 1075. Protection of safety-related information voluntarily 
              provided by air carriers.
Sec. 1076. National Guard Challenge Program to create opportunities for 
              civilian youth.
Sec. 1077. Disqualification from certain burial-related benefits for 
              persons convicted of capital crimes.
Sec. 1078. Restrictions on the use of human subjects for testing of 
              chemical or biological agents.
Sec. 1079. Treatment of military flight operations.
Sec. 1080. Naturalization of certain foreign nationals who serve 
              honorably in the Armed Forces during a period of 
              conflict.
Sec. 1081. Applicability of certain pay authorities to members of 
              specified independent study organizations.
Sec. 1082. Display of POW/MIA flag.
Sec. 1083. Program to commemorate 50th anniversary of the Korean 
              conflict.
Sec. 1084. Commendation of members of the Armed Forces and Government 
              civilian personnel who served during the Cold War; 
              certificate of recognition.
Sec. 1085. Sense of Congress on granting of statutory Federal charters.
Sec. 1086. Sense of Congress regarding military voting rights.
Sec. 1087. Designation of Bob Hope as an honorary veteran of the Armed 
              Forces of the United States.
Sec. 1088. Five-year extension of aviation insurance program.
                     Subtitle A--Financial Matters

     SEC. 1001. TRANSFER AUTHORITY.

       (a) Authority To Transfer Authorizations.--(1) Upon 
     determination by the Secretary of Defense that such action is 
     necessary in the national interest, the Secretary may 
     transfer amounts of authorizations made available to the 
     Department of Defense in this division for fiscal year 1998 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     of Defense may transfer under the authority of this section 
     may not exceed $2,000,000,000.
       (b) Limitations.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide authority for items that 
     have a higher priority than the items from which authority is 
     transferred; and
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress.
       (c) Effect on Authorization Amounts.--A transfer made from 
     one account to another under the authority of this section 
     shall be deemed to increase the amount authorized for the 
     account to which the amount is transferred by an amount equal 
     to the amount transferred.
       (d) Notice to Congress.--The Secretary shall promptly 
     notify Congress of each transfer made under subsection (a).

     SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

       (a) Status of Classified Annex.--The Classified Annex 
     prepared by the committee of conference to accompany the 
     conference report on the bill H.R. 1119 of the One Hundred 
     Fifth Congress and transmitted to the President is hereby 
     incorporated into this Act.
       (b) Construction With Other Provisions of Act.--The amounts 
     specified in the Classified Annex are not in addition to 
     amounts authorized to be appropriated by other provisions of 
     this Act.
       (c) Limitation on Use of Funds.--Funds appropriated 
     pursuant to an authorization contained in this Act that are 
     made available for a program, project, or activity referred 
     to in the Classified Annex may only be expended for such 
     program, project, or activity in accordance with such terms, 
     conditions, limitations, restrictions, and requirements as 
     are set out for that program, project, or activity in the 
     Classified Annex.

[[Page H9144]]

       (d) Distribution of Classified Annex.--The President shall 
     provide for appropriate distribution of the Classified Annex, 
     or of appropriate portions of the annex, within the executive 
     branch of the Government.

     SEC. 1003. AUTHORITY FOR OBLIGATION OF UNAUTHORIZED FISCAL 
                   YEAR 1997 DEFENSE APPROPRIATIONS.

       (a) Authority.--The amounts described in subsection (b) may 
     be obligated and expended for programs, projects, and 
     activities of the Department of Defense in accordance with 
     fiscal year 1997 defense appropriations.
       (b) Covered Amounts.--The amounts referred to in subsection 
     (a) are the amounts provided for programs, projects, and 
     activities of the Department of Defense in fiscal year 1997 
     defense appropriations that are in excess of the amounts 
     provided for such programs, projects, and activities in 
     fiscal year 1997 defense authorizations.
       (c) Definitions.--For the purposes of this section:
       (1) Fiscal year 1997 defense appropriations.--The term 
     ``fiscal year 1997 defense appropriations'' means amounts 
     appropriated or otherwise made available to the Department of 
     Defense for fiscal year 1997 in the Department of Defense 
     Appropriations Act, 1997 (as contained in section 101(b) of 
     Public Law 104-208).
       (2) Fiscal year 1997 defense authorizations.--The term 
     ``fiscal year 1997 defense authorizations'' means amounts 
     authorized to be appropriated for the Department of Defense 
     for fiscal year 1997 in the National Defense Authorization 
     Act for Fiscal Year 1997 (Public Law 104-201).

     SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL 
                   APPROPRIATIONS FOR FISCAL YEAR 1997.

       Amounts authorized to be appropriated to the Department of 
     Defense for fiscal year 1997 in the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201) 
     are hereby adjusted, with respect to any such authorized 
     amount, by the amount by which appropriations pursuant to 
     such authorization were increased (by a supplemental 
     appropriation) or decreased (by a rescission), or both, in 
     the 1997 Emergency Supplemental Appropriations Act for 
     Recovery from Natural Disasters, and for Overseas 
     Peacekeeping Efforts, Including Those in Bosnia (Public Law 
     105-18).

     SEC. 1005. INCREASE IN FISCAL YEAR 1996 TRANSFER AUTHORITY.

       Section 1001(a)(2) of the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106; 100 Stat. 414) 
     is amended by striking out ``$2,000,000,000'' and inserting 
     in lieu thereof ``$3,100,000,000''.

     SEC. 1006. REVISION OF AUTHORITY FOR FISHER HOUSE TRUST 
                   FUNDS.

       (a) Correction To Eliminate Use of Term Associated With 
     Funding Authorities.--Section 2221(c) of title 10, United 
     States Code, is amended by striking out ``or maintenance'' 
     each place it appears.
       (b) Corpus of Air Force Trust Fund.--The Secretary of the 
     Air Force shall deposit in the Fisher House Trust Fund, 
     Department of the Air Force, an amount that the Secretary 
     determines appropriate to establish the corpus of the fund.

     SEC. 1007. FLEXIBILITY IN FINANCING CLOSURE OF CERTAIN 
                   OUTSTANDING CONTRACTS FOR WHICH A SMALL FINAL 
                   PAYMENT IS DUE.

       (a) Closure of Outstanding Contracts.--The Secretary of 
     Defense may make the final payment on a contract to which 
     this section applies from the account established pursuant 
     to subsection (d).
       (b) Covered Contracts.--This section applies to any 
     contract of the Department of Defense--
       (1) that was entered into before December 5, 1990; and
       (2) for which an unobligated balance of an appropriation 
     that had been initially applied to the contract was canceled 
     before December 5, 1990, pursuant to section 1552 of title 
     31, United States Code, as in effect before that date.
       (c) Authority Limited to Small Final Payments.--The 
     Secretary may use the authority provided by this section only 
     for a contract for which the amount of the final payment due 
     is not greater than the micro-purchase threshold (as defined 
     in section 32 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 428)).
       (d) Account.--The Secretary may establish an account for 
     the purposes of this section. The Secretary may from time to 
     time transfer into the account, from funds made available to 
     the Department of Defense for procurement or for research, 
     development, test, and evaluation, such amounts as the 
     Secretary determines to be needed for the purposes of the 
     account, except that the total of such transfers may not 
     exceed $1,000,000. Amounts in the account may be used only 
     for the purposes of this section.
       (e) Closure of Account.--When the Secretary determines that 
     all contracts to which this section applies have been closed 
     and there is no further need for the account established 
     under subsection (d), the Secretary shall close the account. 
     Any amounts remaining in the account shall be covered into 
     the Treasury as miscellaneous receipts.

     SEC. 1008. BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN.

       (a) Biennial Plan.--(1) Chapter 131 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 2222. Biennial financial management improvement plan

       ``(a) Biennial Plan Required.--The Secretary of Defense 
     shall submit to Congress a biennial strategic plan for the 
     improvement of financial management within the Department of 
     Defense. The plan shall be submitted not later than September 
     30 of each even-numbered year.
       ``(b) Concept of Operations.--Each plan under subsection 
     (a) shall include a statement of the Secretary of Defense's 
     concept of operations for the financial management of the 
     Department of Defense. Each such statement shall be a clear 
     description of the manner in which the Department's financial 
     management operations are carried out or will be carried out 
     under the improvements set forth in the plan under subsection 
     (a), including identification of operations that must be 
     performed.
       ``(c) Matters To Be Addressed in Plan.--(1) Each plan under 
     subsection (a) shall address all aspects of financial 
     management within the Department of Defense, including the 
     finance systems, accounting systems, and data feeder systems 
     of the Department that support financial functions of the 
     Department.
       ``(2) For the purposes of paragraph (1), a data feeder 
     system is an automated or manual system from which 
     information is derived for a financial management system or 
     an accounting system.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2222. Biennial financial management improvement plan.''.

       (b) Additional Content of First Plan.--The first financial 
     management improvement plan submitted under section 2222 of 
     title 10, United States Code (as added by subsection (a)), 
     shall include the following:
       (1) A description of the costs and benefits of integrating 
     the various finance and accounting systems of the Department 
     of Defense and reducing the total number of such systems, 
     together with the Secretary's assessment of the feasibility 
     of implementing such an integration.
       (2) Identification of problems with the accuracy of data 
     included in the finance systems, accounting systems, and data 
     feeder systems that support financial functions of the 
     Department of Defense, together with a description of the 
     actions that the Secretary can take to address those 
     problems.
       (3) Identification of weaknesses in the internal controls 
     of the systems referred to in paragraph (2), together with a 
     description of the actions that the Secretary can take to 
     address those weaknesses.
       (4) A description of actions that the Secretary can take to 
     eliminate negative unliquidated obligations, unmatched 
     disbursements, and in-transit disbursements and to avoid such 
     obligations and disbursements in the future.
       (5) A description of the status of the efforts being 
     undertaken in the Department to consolidate and eliminate--
       (A) redundant or unneeded finance systems; and
       (B) redundant or unneeded accounting systems.
       (6) A description of efforts being undertaken to 
     consolidate or eliminate redundant personnel data systems, 
     acquisition data systems, asset accounting systems, time and 
     attendance systems, and other data feeder systems of the 
     Department.
       (7) A description of efforts being undertaken to integrate 
     the data feeder systems of the Department with the finance 
     and accounting systems of the Department.
       (8) A description of problems with the organization or 
     performance of the Operating Locations and Service Centers of 
     the Defense Finance and Accounting Service, together with a 
     description of the actions the Secretary can take to address 
     those problems.
       (9) A description of the costs and benefits of reorganizing 
     the Operating Locations and Service Centers of the Defense 
     Finance and Accounting Service according to function, 
     together with the Secretary's assessment of the 
     feasibility of carrying out such a reorganization.
       (10) A description of the costs and benefits of contracting 
     for private-sector performance of specific functions 
     currently performed by the Defense Finance and Accounting 
     Service, together with the Secretary's assessment of the 
     feasibility of contracting for such performance.
       (11) A description of actions that can be taken to ensure 
     that each comptroller position (and comparable position) in 
     the Department of Defense, whether filled by a member of the 
     Armed Forces or by a civilian employee, is held by a person 
     who, by reason of education, technical competence, and 
     experience, has the core competencies for financial 
     management.
       (12) A description of any other change in the financial 
     management structure of the Department or revision of the 
     financial processes and business practices of the Department 
     that the Secretary considers necessary to improve financial 
     management in the Department.
       (c) Additional Matters.--For each of the problems and 
     actions identified pursuant to paragraphs (1) through (12) of 
     subsection (b) or in any other part of the plan covered by 
     that subsection, the Secretary shall include statements of 
     objectives, performance measures, and schedules and shall 
     specify the individual and organizational responsibilities.
       (d) Definition.--In subsection (b), the term ``data feeder 
     system'' has the meaning given that term in subsection (c)(2) 
     of section 2222 of title 10, United States Code, as added by 
     subsection (a).

     SEC. 1009. ESTIMATES AND REQUESTS FOR PROCUREMENT AND 
                   MILITARY CONSTRUCTION FOR THE RESERVE 
                   COMPONENTS.

       (a) Detailed Presentation in Future-Years Defense 
     Program.--Section 10543 of title 10, United States Code, is 
     amended--
       (1) by inserting ``(a) In General.--'' before ``The 
     Secretary of Defense''; and
       (2) by adding at the end the following:
       ``(b) Associated Annexes.--The associated annexes of the 
     future-years defense program shall specify, at the same level 
     of detail as is set forth in the annexes for the active 
     components, the amount requested for--
       ``(1) procurement of each item of equipment to be procured 
     for each reserve component; and

[[Page H9145]]

       ``(2) each military construction project to be carried out 
     for each reserve component, together with the location of the 
     project.
       ``(c) Report.--(1) If the aggregate of the amounts 
     specified in paragraphs (1) and (2) of subsection (b) for a 
     fiscal year is less than the amount equal to 90 percent of 
     the average authorized amount applicable for that fiscal year 
     under paragraph (2), the Secretary of Defense shall submit to 
     Congress a report specifying for each reserve component the 
     additional items of equipment that would be procured, and the 
     additional military construction projects that would be 
     carried out, if that aggregate amount were an amount equal to 
     such average authorized amount. The report shall be at the 
     same level of detail as is required by subsection (b).
       ``(2) In this subsection, the term `average authorized 
     amount', with respect to a fiscal year, means the average 
     of--
       ``(A) the aggregate of the amounts authorized to be 
     appropriated for the preceding fiscal year for the 
     procurement of items of equipment, and for military 
     construction, for the reserve components; and
       ``(B) the aggregate of the amounts authorized to be 
     appropriated for the fiscal year preceding the fiscal year 
     referred to in subparagraph (A) for the procurement of items 
     of equipment, and for military construction, for the reserve 
     components.''.
       (b) Prohibition.--The level of detail provided for 
     procurement and military construction in the future-years 
     defense programs for fiscal years after fiscal year 1998 may 
     not be less than the level of detail provided for procurement 
     and military construction in the future-years defense program 
     for fiscal year 1998.

     SEC. 1010. SENSE OF CONGRESS REGARDING FUNDING FOR RESERVE 
                   COMPONENT MODERNIZATION NOT REQUESTED IN 
                   PRESIDENT'S BUDGET.

       (a) Criteria.--It is the sense of Congress that, to the 
     maximum extent practicable, Congress should authorize 
     appropriations for procurement of reserve component 
     modernization equipment for a fiscal year for equipment that 
     is not included in the budget of the President for that 
     fiscal year only if--
       (1) there is a requirement for that equipment that has been 
     validated by the Joint Requirements Oversight Council;
       (2) procurement of that equipment is included for reserve 
     component modernization in the modernization plan of the 
     military department concerned and is incorporated into the 
     current future-years defense program;
       (3) procurement of that equipment is consistent with 
     planned use of reserve component forces under Department of 
     Defense war plans; and
       (4) funds for that procurement, if authorized and 
     appropriated for that fiscal year, could be obligated during 
     that fiscal year.
       (b) Consideration of Views of Chairman of Joint Chiefs of 
     Staff.--It is further the sense of Congress that, in applying 
     the criteria set forth in subsection (a) with respect to 
     procurement of reserve component modernization equipment, 
     Congress should obtain the views of the Chairman of the Joint 
     Chiefs of Staff on whether, under Department of Defense war 
     plans, that equipment is appropriate for procurement for, and 
     assignment to, reserve component forces.

     SEC. 1011. MANAGEMENT OF WORKING-CAPITAL FUNDS.

       (a) Contracting for Capital Assets Procurement in Advance 
     of Funds.--Section 2208 of title 10, United States Code, is 
     amended by striking out subsection (k) and inserting in lieu 
     thereof the following new subsection:
       ``(k)(1) Subject to paragraph (2), a contract for the 
     procurement of a capital asset financed by a working-capital 
     fund may be awarded in advance of the availability of funds 
     in the working-capital fund for the procurement.
       ``(2) Paragraph (1) applies to any of the following capital 
     assets that have a development or acquisition cost of not 
     less than $100,000:
       ``(A) An unspecified minor military construction project 
     under section 2805(c)(1) of this title.
       ``(B) Automatic data processing equipment or software.
       ``(C) Any other equipment.
       ``(D) Any other capital improvement.''.
       (b) Use of Advance Billing.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(l)(1) An advance billing of a customer of a working-
     capital fund may be made if the Secretary of the military 
     department concerned submits to Congress written notification 
     of the advance billing within 30 days after the end of the 
     month in which the advanced billing was made. The 
     notification shall include the following:
       ``(A) The reasons for the advance billing.
       ``(B) An analysis of the effects of the advance billing on 
     military readiness.
       ``(C) An analysis of the effects of the advance billing on 
     the customer.
       ``(2) The Secretary of Defense may waive the notification 
     requirements of paragraph (1)--
       ``(A) during a period war or national emergency; or
       ``(B) to the extent that the Secretary determines necessary 
     to support a contingency operation.
       ``(3) In this subsection:
       ``(A) The term `advance billing', with respect to a 
     working-capital fund, means a billing of a customer by the 
     fund, or a requirement for a customer to reimburse or 
     otherwise credit the fund, for the cost of goods or services 
     provided (or for other expenses incurred) on behalf of the 
     customer that is rendered or imposed before the customer 
     receives the goods or before the services have been 
     performed.
       ``(B) The term `customer' means a requisitioning component 
     or agency.''.
       (c) Fiscal Year Limitations.--(1) The total amount of 
     advance billings for Department of the Navy working-capital 
     funds and the Defense Business Operations Fund may not 
     exceed--
       (A) $1,000,000,000 for fiscal year 1998; and
       (B) $800,000,000 for fiscal year 1999.
       (2) For purposes of paragraph (1), the term ``advance 
     billing'' has the meaning given such term in section 
     2208(l)(3) of title 10, United States Code, as added by 
     subsection (b).

     SEC. 1012. AUTHORITY OF SECRETARY OF DEFENSE TO SETTLE CLAIMS 
                   RELATING TO PAY, ALLOWANCES, AND OTHER 
                   BENEFITS.

       Section 3702(e) of title 31, United States Code, is 
     amended--
       (1) in paragraph (1), by striking out ``Comptroller 
     General'' and inserting in lieu thereof ``Secretary of 
     Defense''; and
       (2) by striking out paragraph (2) and inserting in lieu 
     thereof the following new paragraph:
       ``(2) Payment of a claim settled under paragraph (1) shall 
     be made from an appropriation that is available, for the 
     fiscal year in which the payment is made, for the same 
     purpose as the appropriation to which the obligation claimed 
     would have been charged if the obligation had been timely 
     paid.''.

     SEC. 1013. PAYMENT OF CLAIMS BY MEMBERS FOR LOSS OF PERSONAL 
                   PROPERTY DUE TO FLOODING IN RED RIVER BASIN.

       (a) Payment Authorized.--Notwithstanding section 3721(e) of 
     title 31, United States Code, the Secretary of a military 
     department may pay the claim of a member of the Armed Forces 
     who resided (or whose dependents resided) in the vicinity of 
     Grand Forks Air Force Base, North Dakota, during April and 
     May 1997 for loss and damage to personal property incurred by 
     the member as a direct result of the flooding in the Red 
     River Basin during such months.
       (b) Report on Department Policy.--The Secretary of Defense 
     shall submit to Congress a report describing the Department 
     of Defense policy regarding the payment of a claim by a 
     member of the Armed Forces who is not assigned to quarters of 
     the United States for losses and damage to personal property 
     of the member incurred at the member's residence as a result 
     of a natural disaster. The report shall include a description 
     of the number of such claims received over the past 10 years, 
     the number of claims paid, and the number of claims rejected. 
     If the Secretary determines the Department of Defense should 
     modify its policy in order to accept additional claims by 
     members who are not assigned to quarters of the United States 
     for losses and damage to personal property, the Secretary 
     shall also include in the report any legislative changes that 
     the Secretary considers necessary to enable the Secretary to 
     implement the policy change.

     SEC. 1014. ADVANCES FOR PAYMENT OF PUBLIC SERVICES.

       (a) In General.--Subsection (a) of section 2396 of title 
     10, United States Code, is amended--
       (1) by striking out ``and'' at the end of paragraph (2);
       (2) by striking out the period at the end of paragraph (3) 
     and inserting in lieu thereof ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(4) public service utilities.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 2396. Advances for payments for compliance with 
       foreign laws, rent in foreign countries, tuition, public 
       utility services, and pay and supplies of armed forces of 
       friendly foreign countries''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 141 of such title is 
     amended to read as follows:

``2396. Advances for payments for compliance with foreign laws, rent in 
              foreign countries, tuition, public utility services, and 
              pay and supplies of armed forces of friendly foreign 
              countries.''.

     SEC. 1015. UNITED STATES MAN AND THE BIOSPHERE PROGRAM 
                   LIMITATION.

       During fiscal year 1998, the Secretary of Defense may not 
     take any steps to carry out or support the United States Man 
     and the Biosphere Program or any related project.
                Subtitle B--Naval Vessels and Shipyards

     SEC. 1021. PROCEDURES FOR SALE OF VESSELS STRICKEN FROM THE 
                   NAVAL VESSEL REGISTER.

       Section 7305(c) of title 10, United States Code, is amended 
     to read as follows:
       ``(c) Procedures for Sale.--(1) A vessel stricken from the 
     Naval Vessel Register and not subject to disposal under any 
     other law may be sold under this section.
       ``(2) In such a case, the Secretary may--
       ``(A) sell the vessel to the highest acceptable bidder, 
     regardless of the appraised value of the vessel, after 
     publicly advertising the sale of the vessel for a period of 
     not less than 30 days; or
       ``(B) subject to paragraph (3), sell the vessel by 
     competitive negotiation to the acceptable offeror who submits 
     the offer that is most advantageous to the United States 
     (taking into account price and such other factors as the 
     Secretary determines appropriate).
       ``(3) Before entering into negotiations to sell a vessel 
     under paragraph (2)(B), the Secretary shall publish notice of 
     the intention to do so in the Commerce Business Daily 
     sufficiently in advance of initiating the negotiations that 
     all interested parties are given a reasonable opportunity to 
     prepare and submit proposals. The Secretary shall afford an 
     opportunity to participate in the negotiations to all 
     acceptable offerors submitting proposals that the Secretary 
     considers as having the potential to be the most

[[Page H9146]]

     advantageous to the United States (taking into account price 
     and such other factors as the Secretary determines 
     appropriate).''.

     SEC. 1022. AUTHORITY TO ENTER INTO A LONG-TERM CHARTER FOR A 
                   VESSEL IN SUPPORT OF THE SURVEILLANCE TOWED-
                   ARRAY SENSOR (SURTASS) PROGRAM.

       The Secretary of the Navy is authorized to enter into a 
     contract in accordance with section 2401 of title 10, United 
     States Code, for the charter, for a period through fiscal 
     year 2003, of the vessel RV CORY CHOUEST (United States 
     official number 933435) in support of the Surveillance Towed-
     Array Sensor (SURTASS) program.

     SEC. 1023. TRANSFER OF TWO SPECIFIED OBSOLETE TUGBOATS OF THE 
                   ARMY.

       (a) Authority To Transfer Vessels.--The Secretary of the 
     Army may transfer the two obsolete tugboats of the Army 
     described in subsection (b) to the Brownsville Navigation 
     District, Brownsville, Texas.
       (b) Vessels Covered.--Subsection (a) applies to the 
     following two decommissioned tugboats of the Army, each of 
     which is listed as of the date of the enactment of this Act 
     as being surplus to the needs of the Army: the Normandy (LT-
     1971) and the Salerno (LT-1953).
       (c) Transfers To Be at No Cost to United States.--A 
     transfer authorized by this section shall be made at no cost 
     to the United States.
       (d) Terms and Conditions.--The Secretary may require such 
     additional terms and conditions in connection with the 
     transfers authorized by this section as the Secretary 
     considers appropriate.

     SEC. 1024. CONGRESSIONAL REVIEW PERIOD WITH RESPECT TO 
                   TRANSFER OF EX-U.S.S. HORNET (CV-12) AND EX-
                   U.S.S. MIDWAY (CV-41).

       (a) Reduction in Congressional Review Period.--In applying 
     section 7306 of title 10, United States Code, with respect to 
     the transfer of a vessel specified in subsection (c), 
     subsection (d)(1)(B) of that section shall be applied by 
     substituting ``30 days'' for ``60 days''.
       (b) Waiver if Only One Qualified Entity Applies for 
     Transfer of Vessel.--If in the case of a vessel specified in 
     subsection (c) only a single qualified entity, as determined 
     by the Secretary of the Navy, applies for transfer of the 
     vessel, the Secretary may carry out the transfer of the 
     vessel under section 7306 of title 10, United States Code, 
     without regard to subsection (d)(1)(B) of that section. In 
     such a case, the transfer may be made only after 10 days of 
     continuous session of Congress (determined in the manner 
     specified in section 7306(d)(2) of title 10, United States 
     Code) have expired following the date on which the Secretary 
     submits to Congress a certification that only a single 
     qualified entity applied for transfer of the vessel.
       (c) Covered Vessels.--This section applies to the following 
     vessels (each of which is a decommissioned aircraft carrier):
       (1) Ex-U.S.S. HORNET (CV-12).
       (2) Ex-U.S.S. MIDWAY (CV-41).

     SEC. 1025. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN 
                   COUNTRIES.

       (a) Authority.--The Secretary of the Navy is authorized to 
     transfer vessels to foreign countries on a sales basis under 
     section 21 of the Arms Export Control Act (22 U.S.C. 2761) as 
     follows:
       (1) To the Government of Brazil, the HUNLEY class submarine 
     tender HOLLAND (AS 32).
       (2) To the Government of Chile, the KAISER class oiler 
     ISHERWOOD (T-AO 191).
       (3) To the Government of Egypt:
       (A) The following frigates of the KNOX class:
       (i) The PAUL (FF 1080).
       (ii) The MILLER (FF 1091).
       (iii) The JESSE L. BROWN (FFT 1089).
       (iv) The MOINESTER (FFT 1097).
       (B) The following frigates of the OLIVER HAZARD PERRY 
     class:
       (i) The FAHRION (FFG 22).
       (ii) The LEWIS B. PULLER (FFG 23).
       (4) To the Government of Israel, the NEWPORT class tank 
     landing ship PEORIA (LST 1183).
       (5) To the Government of Malaysia, the NEWPORT class tank 
     landing ship BARBOUR COUNTY (LST 1195).
       (6) To the Government of Mexico, the KNOX class frigate 
     ROARK (FF 1053).
       (7) To the Taipei Economic and Cultural Representative 
     Office in the United States (the Taiwan instrumentality that 
     is designated pursuant to section 10(a) of the Taiwan 
     Relations Act), the following frigates of the KNOX class:
       (A) The WHIPPLE (FF 1062).
       (B) The DOWNES (FF 1070).
       (8) To the Government of Thailand, the NEWPORT class tank 
     landing ship SCHENECTADY (LST 1185).
       (b) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by subsection 
     (a) shall be charged to the recipient.
       (c) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the Secretary of the Navy 
     shall require, as a condition of the transfer of a vessel 
     under this section, that the country to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that country, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.
       (d) Expiration of Authority.--The authority to transfer a 
     vessel under subsection (a) shall expire at the end of the 
     two-year period beginning on the date of the enactment of 
     this Act.

     SEC. 1026. REPORTS RELATING TO EXPORT OF VESSELS THAT MAY 
                   CONTAIN POLYCHLORINATED BIPHENYLS.

       (a) Reports Required.--Not later than March 1, 1998, the 
     Secretary of the Navy (with respect to the Navy), the 
     Administrator of the Maritime Administration (with respect to 
     the Maritime Administration), and the Administrator of the 
     Environmental Protection Agency (with respect to the 
     Environmental Protection Agency) shall each submit to 
     Congress a report on the implementation of the agreement 
     between the Department of the Navy and the Environmental 
     Protection Agency that became effective August 6, 1997, and 
     that is titled ``Export of Naval Vessels that May Contain 
     Polychlorinated Biphenyls for Scrapping Outside the United 
     States''.
       (b) Contents of Reports.--The reports required by 
     subsection (a) shall address, at a minimum, the following:
       (1) An assessment of the effects of the notification 
     requirements regarding the export of vessels for scrapping, 
     any impediments that those requirements may create for the 
     export of vessels, and any changes to the agreement that may 
     be required to address those impediments.
       (2) An explanation of the process by which it is determined 
     which solid items containing polychlorinated biphenyls are 
     readily removable and must be removed before the export of a 
     vessel for scrapping, what types of polychlorinated biphenyls 
     have been determined to be readily removable pursuant to this 
     process, any impediments that such determinations may create 
     for the export of vessels, and any changes to the agreement 
     that may be required to address those impediments or to 
     ensure protection of human health and the environment.
       (c) Amendments Relating to Disposal of Obsolete Vessels 
     From the National Defense Reserve Fleet.--Section 6 of the 
     National Maritime Heritage Act of 1994 (Public Law 103-451; 
     108 Stat. 4776; 16 U.S.C. 5405) is amended--
       (1) in subsections (a)(1) and (b)(2)--
       (A) by inserting ``or 510(i)'' after ``508''; and
       (B) by inserting ``or 1160(i)'' after ``1158'';
       (2) in subsection (b)(2), by striking out ``first 6'' and 
     inserting in lieu thereof ``first 8''; and
       (3) in subsection (c)(1)(A), by striking out ``1999'' and 
     inserting in lieu thereof ``2001''.

     SEC. 1027. CONVERSION OF DEFENSE CAPABILITY PRESERVATION 
                   AUTHORITY TO NAVY SHIPBUILDING CAPABILITY 
                   PRESERVATION AUTHORITY.

       (a) In General.--(1) Chapter 633 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 7315. Preservation of Navy shipbuilding capability

       ``(a) Shipbuilding Capability Preservation Agreements.--The 
     Secretary of the Navy may enter into an agreement, to be 
     known as a `shipbuilding capability preservation agreement', 
     with a shipbuilder under which the cost reimbursement rules 
     described in subsection (b) shall be applied to the 
     shipbuilder under a Navy contract for the construction of a 
     ship. Such an agreement may be entered into in any case in 
     which the Secretary determines that the application of such 
     cost reimbursement rules would facilitate the achievement of 
     the policy objectives set forth in section 2501(b) of this 
     title.
       ``(b) Cost Reimbursement Rules.--The cost reimbursement 
     rules applicable under an agreement entered into under 
     subsection (a) are as follows:
       ``(1) The Secretary of the Navy shall, in determining the 
     reimbursement due a shipbuilder for its indirect costs of 
     performing a contract for the construction of a ship for the 
     Navy, allow the shipbuilder to allocate indirect costs to its 
     private sector work only to the extent of the shipbuilder's 
     allocable indirect private sector costs, subject to paragraph 
     (3).
       ``(2) For purposes of paragraph (1), the allocable indirect 
     private sector costs of a shipbuilder are those costs of the 
     shipbuilder that are equal to the sum of the following:
       ``(A) The incremental indirect costs attributable to such 
     work.
       ``(B) The amount by which the revenue attributable to such 
     private sector work exceeds the sum of--
       ``(i) the direct costs attributable to such private sector 
     work; and
       ``(ii) the incremental indirect costs attributable to such 
     private sector work.
       ``(3) The total amount of allocable indirect private sector 
     costs for a contract covered by the agreement may not exceed 
     the amount of indirect costs that a shipbuilder would have 
     allocated to its private sector work during the period 
     covered by the agreement in accordance with the shipbuilder's 
     established accounting practices.
       ``(c) Authority To Modify Cost Reimbursement Rules.--The 
     cost reimbursement rules set forth in subsection (b) may be 
     modified by the Secretary of the Navy for a particular 
     agreement if the Secretary determines that modifications are 
     appropriate to the particular situation to facilitate 
     achievement of the policy set forth in section 2501(b) of 
     this title.
       ``(d) Applicability.--(1) An agreement entered into with a 
     shipbuilder under subsection (a) shall apply to each of the 
     following Navy contracts with the shipbuilder:
       ``(A) A contract that is in effect on the date on which the 
     agreement is entered into.
       ``(B) A contract that is awarded during the term of the 
     agreement.
       ``(2) In a shipbuilding capability preservation agreement 
     applicable to a shipbuilder, the Secretary may agree to apply 
     the cost reimbursement rules set forth in subsection (b) to 
     allocations of indirect costs to private sector work 
     performed by the shipbuilder only with respect to costs that 
     the shipbuilder incurred on or after the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 1998 under a contract between the shipbuilder and 
     a private sector customer of the shipbuilder that became 
     effective on or after January 26, 1996.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:


[[Page H9147]]


``7315. Preservation of Navy shipbuilding capability.''.

       (b) Implementation.--Not later than 30 days after the date 
     of the enactment of this Act, the Secretary of the Navy shall 
     establish application procedures and procedures for 
     expeditious consideration of shipbuilding capability 
     preservation agreements as authorized by section 7315 of 
     title 10, United States Code, as added by subsection (a).
       (c) Report.--Not later than February 15, 1998, the 
     Secretary of the Navy shall submit to Congress a report on 
     applications for shipbuilding capability preservation 
     agreements under section 7315 of title 10, United States 
     Code, as added by subsection (a). The report shall specify 
     the number of the applications received, the number of the 
     applications approved, and a discussion of the reasons for 
     disapproval of any application disapproved.
       (d) Repeal of Superseded Provision.--Section 808 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 393; 10 U.S.C. 2501 note) is 
     repealed.
                  Subtitle C--Counter-Drug Activities

     SEC. 1031. USE OF NATIONAL GUARD FOR STATE DRUG INTERDICTION 
                   AND COUNTER-DRUG ACTIVITIES.

       (a) Relationship to Training and Readiness.--Subsection (b) 
     of section 112 of title 32, United States Code, is amended--
       (1) by inserting ``(1)'' before ``Under regulations''; and
       (2) by adding at the end the following new paragraphs:
       ``(2) To ensure that the use of units and personnel of the 
     National Guard of a State pursuant to a State drug 
     interdiction and counter-drug activities plan is not 
     detrimental to the training and readiness of such units and 
     personnel, the requirements of section 2012(d) of title 10 
     shall apply in determining the drug interdiction and counter-
     drug activities that units and personnel of the National 
     Guard of a State may perform.
       ``(3) Section 508 of this title, regarding the provision of 
     assistance to certain specified youth and charitable 
     organizations, shall apply in any case in which a unit or 
     member of the National Guard of a State is proposed to be 
     used pursuant to a State drug interdiction and counter-drug 
     activities plan to provide to an organization specified in 
     subsection (d) of such section any of the services described 
     in subsection (b) of such section or services regarding 
     counter-drug education.''.
       (b) Engineer-Type Activities.--Subsection (c) of such 
     section is amended--
       (1) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively; and
       (2) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) certify that any engineer-type activities (as defined 
     by the Secretary of Defense) under the plan will be performed 
     only by units and members of the National Guard;''.
       (c) Annual Report.--Such section is further amended--
       (1) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively; and
       (2) by inserting after subsection (f) the following new 
     subsection:
       ``(g) Annual Report.--The Secretary of Defense shall submit 
     to Congress an annual report regarding assistance provided 
     and activities carried out under this section during the 
     preceding fiscal year. The report shall include the 
     following:
       ``(1) The number of members of the National Guard excluded 
     under subsection (e) from the computation of end strengths.
       ``(2) A description of the drug interdiction and counter-
     drug activities conducted under State drug interdiction and 
     counter-drug activities plans referred to in subsection (c) 
     with funds provided under this section.
       ``(3) An accounting of the amount of funds provided to each 
     State.
       ``(4) A description of the effect on military training and 
     readiness of using units and personnel of the National Guard 
     to perform activities under the State drug interdiction and 
     counter-drug activities plans.''.
       (d) Conforming Amendments.--Subsection (e) of such section 
     is amended--
       (1) by striking out ``(1)'' before ``Members''; and
       (2) by striking out paragraph (2).

     SEC. 1032. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR 
                   COUNTER-DRUG ACTIVITIES OF MEXICO.

       (a) Extension of Authority; Consultation of Secretary of 
     State.--Subsection (a) of section 1031 of the National 
     Defense Authorization Act for Fiscal Year 1997 (Public Law 
     104-201; 110 Stat. 2637), is amended--
       (1) by striking out ``fiscal year 1997'' and inserting in 
     lieu thereof ``fiscal years 1997 and 1998''; and
       (2) by inserting after the first sentence the following new 
     sentence: ``In providing support to the Government of Mexico 
     under this section, the Secretary of Defense shall consult 
     with the Secretary of State.''.
       (b) Extension of Availability of Funds.--Subsection (d) of 
     such section is amended--
       (1) by striking out ``not more than'' and inserting in lieu 
     thereof ``an amount not to exceed''; and
       (2) by adding at the end the following new sentences: 
     ``Funds made available for fiscal year 1997 under this 
     subsection and unobligated by September 30, 1997, may be 
     obligated during fiscal year 1998. No funds are authorized to 
     be appropriated for fiscal year 1998 for the provision of 
     support under this section.''.

     SEC. 1033. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR 
                   COUNTER-DRUG ACTIVITIES OF PERU AND COLOMBIA.

       (a) Authority To Provide Support.--Subject to subsection 
     (f), during fiscal years 1998 through 2002, the Secretary of 
     Defense may provide either or both of the foreign governments 
     named in subsection (b) with the support described in 
     subsection (c) for the counter-drug activities of that 
     government. In providing support to a government under this 
     section, the Secretary of Defense shall consult with the 
     Secretary of State. The support provided under the authority 
     of this section shall be in addition to support provided to 
     the governments under any other provision of law.
       (b) Governments Eligible To Receive Support.--The foreign 
     governments eligible to receive counter-drug support under 
     this section are as follows:
       (1) The Government of Peru.
       (2) The Government of Colombia.
       (c) Types of Support.--The authority under subsection (a) 
     is limited to the provision of the following types of support 
     to a government named in subsection (b):
       (1) The types of support specified in paragraphs (1), (2), 
     and (3) of section 1031(b) of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2637).
       (2) The transfer of riverine patrol boats.
       (3) The maintenance and repair of equipment of the 
     government that is used for counter-drug activities.
       (d) Applicability of Other Support Authorities.--Except as 
     otherwise provided in this section, the provisions of section 
     1004 of the National Defense Authorization Act for Fiscal 
     Year 1991 (Public Law 101-510; 10 U.S.C. 374 note) shall 
     apply to the provision of support under this section.
       (e) Fiscal Year 1998 Funding; Limitation on Obligations.--
     (1) Of the amount authorized to be appropriated under section 
     301(20) for drug interdiction and counter-drug activities, an 
     amount not to exceed $9,000,000 shall be available for the 
     provision of support under this section.
       (2) Amounts made available to carry out this section shall 
     remain available until expended, except that the total amount 
     obligated and expended under this section may not exceed 
     $20,000,000 during any of the fiscal years 1999 through 2002.
       (f) Condition on Provision of Support.--(1) The Secretary 
     of Defense may not obligate or expend funds during a fiscal 
     year to provide support under this section to a government 
     named in subsection (b) until the end of the 15-day period 
     beginning on the date on which the Secretary submits to the 
     congressional committees the written certification described 
     in subsection (g) for that fiscal year.
       (2) In the case of the first fiscal year in which support 
     is to be provided under this section to a government named in 
     subsection (b), the obligation or expenditure of funds under 
     this section to provide support to that government shall also 
     be subject to the condition that--
       (A) the Secretary submit to the congressional committees 
     the riverine counter-drug plan described in subsection (h); 
     and
       (B) a period of 60 days expires after the date on which the 
     report is submitted.
       (3) In the case of subsequent fiscal years in which support 
     is to be provided under this section to a government named in 
     subsection (b), the obligation or expenditure of funds under 
     this section to provide support to that government shall also 
     be subject to the condition that the Secretary submit to the 
     congressional committees any revision of the counter-drug 
     plan described in subsection (h) applicable to that 
     government.
       (4) For purposes of this subsection, the term 
     ``congressional committees'' means the following:
       (A) The Committee on Armed Services and the Committee on 
     Foreign Relations of the Senate.
       (B) The Committee on National Security and the Committee on 
     International Relations of the House of Representatives.
       (g) Required Certification.--The written certification 
     required by subsection (f)(1) for a fiscal year is a 
     certification of the following with respect to each 
     government to receive support under this section:
       (1) That the provision of the support to the government 
     will not adversely affect the military preparedness of the 
     United States Armed Forces.
       (2) That the equipment and materiel provided as support 
     will be used only by officials and employees of the 
     government who have undergone background investigations by 
     that government and have been approved by that government to 
     perform counter-drug activities on the basis of the 
     background investigations.
       (3) That the government has certified to the Secretary of 
     Defense that--
       (A) the equipment and material provided as support will be 
     used only by the officials and employees referred to in 
     paragraph (2);
       (B) none of the equipment or materiel will be transferred 
     (by sale, gift, or otherwise) to any person or entity not 
     authorized by the United States to receive the equipment or 
     materiel; and
       (C) the equipment and materiel will be used only for the 
     purposes intended by the United States Government.
       (4) That the government has implemented, to the 
     satisfaction of the Secretary of Defense, a system that will 
     provide an accounting and inventory of the equipment and 
     materiel provided as support.
       (5) That the departments, agencies, and instrumentalities 
     of the government will grant United States Government 
     personnel access to any of the equipment or materiel provided 
     as support, or to any of the records relating to such 
     equipment or materiel, under terms and conditions similar to 
     the terms and conditions imposed with respect to such access 
     under section 505(a)(3) of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2314(a)(3)).
       (6) That the government will provide security with respect 
     to the equipment and materiel provided as support that is 
     substantially the same

[[Page H9148]]

     degree of security that the United States Government would 
     provide with respect to such equipment and materiel.
       (7) That the government will permit continuous observation 
     and review by United States Government personnel of the use 
     of the equipment and materiel provided as support under terms 
     and conditions similar to the terms and conditions imposed 
     with respect to such observation and review under section 
     505(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2314(a)(3)).
       (h) Riverine Counter-Drug Plan.--The Secretary of Defense, 
     in consultation with the Secretary of State, shall prepare 
     for fiscal year 1998 (and revise as necessary for subsequent 
     fiscal years) a riverine counter-drug plan involving the 
     governments named in subsection (b) to which support will be 
     provided under this section. The plan for a fiscal year shall 
     include the following with respect to each government to 
     receive support under this section:
       (1) A detailed security assessment, including a discussion 
     of the threat posed by illicit drug traffickers in the 
     foreign country.
       (2) An evaluation of previous and ongoing riverine counter-
     drug operations by the government.
       (3) An assessment of the monitoring of past and current 
     assistance provided by the United States under this section 
     to the government to ensure the appropriate use of such 
     assistance.
       (4) A description of the centralized management and 
     coordination among Federal agencies involved in the 
     development and implementation of the plan.
       (5) A description of the roles and missions and 
     coordination among agencies of the government involved in the 
     development and implementation of the plan.
       (6) A description of the resources to be contributed by the 
     Department of Defense and the Department of State for the 
     fiscal year or years covered by the plan and the manner in 
     which such resources will be utilized under the plan.
       (7) For the first fiscal year in which support is to be 
     provided under this section, a schedule for establishing a 
     riverine counter-drug program that can be sustained by the 
     government within five years, and for subsequent fiscal 
     years, a description of the progress made in establishing and 
     carrying out the program.
       (8) A reporting system to measure the effectiveness of the 
     riverine counter-drug program.
       (9) A detailed discussion of how the riverine counter-drug 
     program supports the national drug control strategy of the 
     United States.

     SEC. 1034. ANNUAL REPORT ON DEVELOPMENT AND DEPLOYMENT OF 
                   NARCOTICS DETECTION TECHNOLOGIES.

       (a) Report Requirement.--Not later than December 1st of 
     each year, the Director of the Office of National Drug 
     Control Policy shall submit to Congress and the President a 
     report on the development and deployment of narcotics 
     detection technologies by Federal agencies. Each such report 
     shall be prepared in consultation with the Secretary of 
     Defense, the Secretary of State, the Secretary of 
     Transportation, and the Secretary of the Treasury.
       (b) Matters To Be Included.--Each report under subsection 
     (a) shall include--
       (1) a description of each project implemented by a Federal 
     agency relating to the development or deployment of narcotics 
     detection technology;
       (2) the agency responsible for each project described in 
     paragraph (1);
       (3) the amount of funds obligated or expended to carry out 
     each project described in paragraph (1) during the fiscal 
     year in which the report is submitted or during any fiscal 
     year preceding the fiscal year in which the report is 
     submitted;
       (4) the amount of funds estimated to be obligated or 
     expended for each project described in paragraph (1) during 
     any fiscal year after the fiscal year in which the report is 
     submitted to Congress; and
       (5) a detailed timeline for implementation of each project 
     described in paragraph (1).
       Subtitle D--Miscellaneous Report Requirements and Repeals

     SEC. 1041. REPEAL OF MISCELLANEOUS REPORTING REQUIREMENTS.

       (a) Requirement for Notice of Conversion of Certain Heating 
     Systems at Installations in Europe.--Section 2690(b) of title 
     10, United States Code, is amended by striking out ``unless 
     the Secretary--'' and all that follows and inserting in lieu 
     thereof the following: ``unless the Secretary determines that 
     the conversion--
       ``(1) is required by the government of the country in which 
     the facility is located; or
       ``(2) is cost-effective over the life cycle of the 
     facility.''.
       (b) Report on Availability of Suitable Alternative 
     Housing.--Section 2823 of title 10, United States Code, is 
     amended--
       (1) by striking out subsection (b); and
       (2) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.
       (c) Report on Stretchout of Major Defense Acquisition 
     Programs.--Section 117 of the National Defense Authorization 
     Act, Fiscal Year 1989 (Public Law 100-456; 102 Stat. 1933; 10 
     U.S.C. 2431 note), is repealed.
       (d) Elimination of Requirement for Quarterly Report 
     Concerning Travel Funding for Chemical Demilitarization 
     Citizens' Advisory Commissioners.--(1) Section 1412(g) of the 
     National Defense Authorization Act for Fiscal Year 1986 (50 
     U.S.C. 1521(g)) is amended--
       (A) by striking out paragraph (3);
       (B) by striking out the last sentence of paragraph (4); and
       (C) by redesignating paragraph (4) (as so amended) as 
     paragraph (3).
       (2) Section 153(b) of the National Defense Authorization 
     Act for Fiscal Year 1996 (50 U.S.C. 1521 note) is amended--
       (A) by striking out ``Quarterly'' in the heading; and
       (B) by striking out paragraphs (4) and (5).

     SEC. 1042. STUDY OF TRANSFER OF MODULAR AIRBORNE FIRE 
                   FIGHTING SYSTEM.

       Not later than six months after the date of the enactment 
     of this Act, the Secretary of Defense, in consultation with 
     the Secretary of Agriculture, shall submit to Congress a 
     report evaluating the feasibility of transferring 
     jurisdiction over units of the Modular Airborne Fire Fighting 
     System from the Department of Agriculture to the Department 
     of Defense.

     SEC. 1043. OVERSEAS INFRASTRUCTURE REQUIREMENTS.

       (a) Findings.--Congress makes the following findings:
       (1) United States military forces have been withdrawn from 
     the Philippines.
       (2) United States military forces are to be withdrawn from 
     Panama by 2000.
       (3) There continues to be local opposition to the continued 
     presence of United States military forces in Okinawa.
       (4) The Quadrennial Defense Review lists ``the loss of U.S. 
     access to critical facilities and lines of communication in 
     key regions'' as one of the so-called ``wild card'' scenarios 
     covered in the review.
       (5) The National Defense Panel states that ``U.S. forces' 
     long-term access to forward bases, to include air bases, 
     ports, and logistics facilities, cannot be assumed''.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the President should develop alternatives to the 
     current arrangement for forward basing of the Armed Forces 
     outside the United States, including alternatives to the 
     existing infrastructure for forward basing of forces and 
     alternatives to the existing international agreements that 
     provide for basing of United States forces in foreign 
     countries; and
       (2) because the Pacific Rim continues to emerge as a region 
     of significant economic and military importance to the United 
     States, a continued presence of the Armed Forces in that 
     region is vital to the capability of the United States to 
     timely protect its interests in the region.
       (c) Report Required.--Not later than March 31, 1998, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report on the overseas 
     infrastructure requirements of the Armed Forces.
       (d) Content.--The report shall contain the following:
       (1) The quantity and types of forces that the United States 
     must station in each region of the world in order to support 
     the current national military strategy of the United States.
       (2) The quantity and types of forces that the United States 
     will need to station in each region of the world in order to 
     meet the expected or potential future threats to the national 
     security interests of the United States.
       (3) The requirements for access to, and use of, air space 
     and ground maneuver areas in each such region for training 
     for the quantity and types of forces identified for the 
     region pursuant to paragraphs (1) and (2).
       (4) A list of the international agreements, currently in 
     force, that the United States has entered into with foreign 
     countries regarding the basing of United States forces in 
     those countries and the dates on which the agreements expire.
       (5) A discussion of any anticipated political opposition or 
     other opposition to the renewal of any of those international 
     agreements.
       (6) A discussion of future overseas basing requirements for 
     United States forces, taking into account expected changes in 
     national security strategy, national security environment, 
     and weapons systems.
       (7) The expected costs of maintaining the overseas 
     infrastructure for foreign based forces of the United States, 
     including the costs of constructing any new facilities that 
     will be necessary overseas to meet emerging requirements 
     relating to the national security interests of the United 
     States.
       (e) Form of Report.--The report may be submitted in a 
     classified or unclassified form.

     SEC. 1044. ADDITIONAL MATTERS FOR ANNUAL REPORT ON ACTIVITIES 
                   OF THE GENERAL ACCOUNTING OFFICE.

       Section 719(b) of title 31, United States Code, is amended 
     by adding at the end the following:
       ``(3) The report under subsection (a) shall also include a 
     statement of the staff hours and estimated cost of work 
     performed on audits, evaluations, investigations, and related 
     work during each of the three fiscal years preceding the 
     fiscal year in which the report is submitted, stated 
     separately for each division of the General Accounting Office 
     by category as follows:
       ``(A) A category for work requested by the chairman of a 
     committee of Congress, the chairman of a subcommittee of such 
     a committee, or any other Member of Congress.
       ``(B) A category for work required by law to be performed 
     by the Comptroller General.
       ``(C) A category for work initiated by the Comptroller 
     General in the performance of the Comptroller General's 
     general responsibilities.''.

     SEC. 1045. EYE SAFETY AT SMALL ARMS FIRING RANGES.

       (a) Actions Required.--The Secretary of the Defense shall--
       (1) conduct a study of eye safety at small arms firing 
     ranges of the Armed Forces; and
       (2) develop for the use of the Armed Forces a protocol for 
     reporting eye injuries incurred in small arms firing 
     activities at the ranges.
       (b) Agency Tasking.--The Secretary may delegate authority 
     to carry out the responsibilities set forth in subsection (a) 
     to the United States Army Center for Health Promotion and 
     Preventive Medicine or any other element of the Department of 
     Defense that the Secretary considers well qualified to carry 
     out those responsibilities.
       (c) Content of Study.--The study under subsection (a)(1) 
     shall include the following:

[[Page H9149]]

       (1) An evaluation of the existing policies, procedures, and 
     practices of the Armed Forces regarding medical surveillance 
     of eye injuries resulting from weapons fire at the small arms 
     ranges.
       (2) An examination of the existing policies, procedures, 
     and practices of the Armed Forces regarding reporting on 
     vision safety issues resulting from weapons fire at the small 
     arms ranges.
       (3) Determination of rates of eye injuries, and trends in 
     eye injuries, resulting from weapons fire at the small arms 
     ranges.
       (4) An evaluation of the costs and benefits of a 
     requirement for use of eye protection devices by all 
     personnel firing small arms at the ranges.
       (d) Report.--The Secretary shall submit a report on the 
     activities required under this section to the Committees on 
     Armed Services and on Veterans' Affairs of the Senate and the 
     Committees on National Security and on Veterans' Affairs of 
     the House of Representatives. The report shall include--
       (1) the findings resulting from the study under paragraph 
     (1) of subsection (a); and
       (2) the protocol developed under paragraph (2) of such 
     subsection.
       (e) Schedule.--(1) The Secretary shall ensure that the 
     study is commenced not later than January 1, 1998, and is 
     completed not later than six months after the date on which 
     it is commenced.
       (2) The Secretary shall submit the report required under 
     subsection (d) not later than 30 days after the completion of 
     the study.

     SEC. 1046. REPORTS ON DEPARTMENT OF DEFENSE PROCEDURES FOR 
                   INVESTIGATING MILITARY AVIATION ACCIDENTS AND 
                   FOR NOTIFYING AND ASSISTING FAMILIES OF 
                   VICTIMS.

       (a) Report on Aviation Accident Investigation Procedures.--
     Not later than February 1, 1998, the Secretary of Defense 
     shall submit to Congress a report on the advisability of 
     establishing a process for investigating Department of 
     Defense aviation accidents that combines accident 
     investigation with safety investigation into a single, public 
     investigation process, similar to the accident investigation 
     process of the National Transportation Safety Board. The 
     report shall include a discussion of the advantages and 
     disadvantages of adopting such an investigation process.
       (b) Report on Family Assistance.--Not later than April 2, 
     1998, the Secretary of Defense shall submit to Congress a 
     report on assistance provided by the Department of Defense to 
     families of casualties among military and civilian personnel 
     of the department in the case of aviation accidents involving 
     such personnel. The report shall include--
       (1) a discussion of the adequacy and effectiveness of the 
     family notification procedures of the Department of Defense, 
     including the procedures of the military departments; and
       (2) a description of the assistance provided to members of 
     the families of such personnel.
       (c) Report by Department of Defense Inspector General.--Not 
     later than December 1, 1997, the Inspector General of the 
     Department of Defense shall review the procedures of the 
     Federal Aviation Administration and the National 
     Transportation Safety Board for providing information and 
     assistance to members of families of casualties of 
     nonmilitary aviation accidents and shall submit to Congress a 
     report on the review. The report shall include a discussion 
     of the following:
       (1) Designation of an experienced non-profit organization 
     to provide assistance in meeting the needs of families of 
     accident casualties.
       (2) An assessment of the system and procedures for 
     providing families with information on accidents and accident 
     investigations.
       (3) Protection of members of families from unwanted 
     solicitations relating to the accident.
       (4) A recommendation regarding whether the procedures 
     reviewed (including the matters discussed under paragraphs 
     (1), (2), and (3)) or similar procedures should be adopted by 
     the Department of Defense for use by the Department in 
     providing information and assistance to members of families 
     of casualties of military aviation accidents and, if the 
     recommendation is not to adopt such procedures, a detailed 
     justification for the recommendation.
       (d) Unclassified Form of Reports.--The reports under this 
     section shall be submitted in unclassified form.
               Subtitle E--Matters Relating to Terrorism

     SEC. 1051. OVERSIGHT OF COUNTERTERRORISM AND ANTITERRORISM 
                   ACTIVITIES; REPORT.

       (a) Oversight of Counterterrorism and Antiterrorism 
     Activities.--Not later than 120 days after the date of the 
     enactment of this Act, the Director of the Office of 
     Management and Budget shall--
       (1) establish a reporting system for executive agencies 
     with respect to the budget and expenditure of funds by such 
     agencies for the purpose of carrying out counterterrorism and 
     antiterrorism programs and activities; and
       (2) using such reporting system, collect information on--
       (A) the budget and expenditure of funds by executive 
     agencies during the current fiscal year for purposes of 
     carrying out counterterrorism and antiterrorism programs and 
     activities; and
       (B) the specific programs and activities for which such 
     funds were expended.
       (b) Report.--Not later that March 1 of each year, the 
     President shall submit to Congress a report in classified and 
     unclassified form (using the information described in 
     subsection (a)(2)) describing, for each executive agency and 
     for the executive branch as a whole, the following:
       (1) The amounts proposed to be expended for 
     counterterrorism and antiterrorism programs and activities 
     for the fiscal year beginning in the calendar year in which 
     the report is submitted.
       (2) The amounts proposed to be expended for 
     counterterrorism and antiterrorism programs and activities 
     for the fiscal year in which the report is submitted and the 
     amounts that have already been expended for such programs and 
     activities for that fiscal year.
       (3) The specific counterterrorism and antiterrorism 
     programs and activities being implemented, any priorities 
     with respect to such programs and activities, and whether 
     there has been any duplication of efforts in implementing 
     such programs and activities.

     SEC. 1052. PROVISION OF ADEQUATE TROOP PROTECTION EQUIPMENT 
                   FOR ARMED FORCES PERSONNEL ENGAGED IN PEACE 
                   OPERATIONS; REPORT ON ANTITERRORISM ACTIVITIES 
                   AND PROTECTION OF PERSONNEL.

       (a) Protection of Personnel.--The Secretary of Defense 
     shall take appropriate actions to ensure that units of the 
     Armed Forces engaged in a peace operation are provided 
     adequate troop protection equipment for that operation.
       (b) Specific Actions.--In taking actions under subsection 
     (a), the Secretary shall--
       (1) identify the additional troop protection equipment, if 
     any, required to equip a division (or the equivalent of a 
     division) with adequate troop protection equipment for peace 
     operations; and
       (2) establish procedures to facilitate the exchange or 
     transfer of troop protection equipment among units of the 
     Armed Forces.
       (c) Designation of Responsible Official.--The Secretary of 
     Defense shall designate an official within the Department of 
     Defense to be responsible for--
       (1) ensuring the appropriate allocation of troop protection 
     equipment among the units of the Armed Forces engaged in 
     peace operations; and
       (2) monitoring the availability, status or condition, and 
     location of such equipment.
       (d) Troop Protection Equipment Defined.--In this section, 
     the term ``troop protection equipment'' means the equipment 
     required by units of the Armed Forces to defend against any 
     hostile threat that is likely during a peace operation, 
     including an attack by a hostile crowd, small arms fire, 
     mines, and a terrorist bombing attack.
       (e) Report on Antiterrorism Activities of the Department of 
     Defense and Protection of Personnel.--Not later than 120 days 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a report, in classified and 
     unclassified form, on antiterrorism activities of the 
     Department of Defense and the actions taken by the Secretary 
     under subsections (a), (b) and (c). The report shall include 
     the following:
       (1) A description of the programs designed to carry out 
     antiterrorism activities of the Department of Defense, any 
     deficiencies in those programs, and any actions taken by the 
     Secretary to improve implementation of such programs.
       (2) An assessment of the current policies and practices of 
     the Department of Defense with respect to the protection of 
     members of the Armed Forces overseas against terrorist 
     attack, including any modifications to such policies or 
     practices that are proposed or implemented as a result of the 
     assessment.
       (3) An assessment of the procedures of the Department of 
     Defense for determining accountability, if any, in the 
     command structure of the Armed Forces in instances in which a 
     terrorist attack results in the loss of life at an overseas 
     military installation or facility.
       (4) A detailed description of the roles of the Office of 
     the Secretary of Defense, the Chairman of the Joint Chiefs of 
     Staff, the Secretaries of the military departments, and the 
     combatant commanders in providing guidance and support with 
     respect to the protection of members of the Armed Forces 
     deployed overseas against terrorist attack (both before and 
     after the November, 1995 bombing in Riyadh, Saudi Arabia) and 
     how these roles have changed since the June 25, 1996, 
     terrorist bombing at Khobar Towers in Dhahran, Saudi Arabia.
       (5) A description of the actions taken by the Secretary of 
     Defense under subsections (a), (b), and (c) to provide 
     adequate troop protection equipment for units of the Armed 
     Forces engaged in a peace operation.
            Subtitle F--Matters Relating to Defense Property

     SEC. 1061. LEASE OF NONEXCESS PERSONAL PROPERTY OF MILITARY 
                   DEPARTMENTS.

       (a) Receipt of Fair Market Value.--Subsection (b)(4) of 
     section 2667 of title 10, United States Code, is amended by 
     striking out ``, in the case of the lease of real 
     property,''.
       (b) Competitive Selection.--Such section is further 
     amended--
       (1) by redesignating subsection (g) as subsection (h); and
       (2) by inserting after subsection (f) the following new 
     subsection:
       ``(g)(1) If a proposed lease under subsection (a) involves 
     only personal property, the lease term exceeds one year, and 
     the fair market value of the lease interest exceeds $100,000, 
     as determined by the Secretary concerned, the Secretary shall 
     use competitive procedures to select the lessee.
       ``(2) Not later than 45 days before entering into a lease 
     described in paragraph (1), the Secretary concerned shall 
     submit to Congress written notice describing the terms of the 
     proposed lease and the competitive procedures used to select 
     the lessee.''.
       (c) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 2667. Leases: non-excess property of military 
       departments''.

       (2) The table of sections at the beginning of chapter 159 
     of title 10, United States Code, is amended by striking out 
     the item relating to section 2667 and inserting in lieu 
     thereof the following new item:


[[Page H9150]]


``2667. Leases: non-excess property of military departments.''.
       (d) Conforming Amendment.--Section 2490a(f)(2) of title 10, 
     United States Code, is amended by striking out ``section 
     2667(g)'' and inserting in lieu thereof ``section 2667(h)''.

     SEC. 1062. LEASE OF NONEXCESS PROPERTY OF DEFENSE AGENCIES.

       (a) Lease Authority.--Chapter 159 of title 10, United 
     States Code, is amended by inserting after section 2667 the 
     following new section:

     ``Sec. 2667a. Leases: non-excess property of Defense Agencies

       ``(a) Lease Authority.--Whenever the Secretary of Defense 
     considers it advantageous to the United States, the Secretary 
     may lease to such lessee and upon such terms as the Secretary 
     considers will promote the national defense or to be in the 
     public interest, personal property that is--
       ``(1) under the control of a Defense Agency;
       ``(2) not for the time needed for public use; and
       ``(3) not excess property, as defined by section 3 of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 472).
       ``(b) Limitation, Terms, and Conditions.--A lease under 
     subsection (a)--
       ``(1) may not be for more than five years unless the 
     Secretary of Defense determines that a lease for a longer 
     period will promote the national defense or be in the public 
     interest;
       ``(2) may give the lessee the first right to buy the 
     property if the lease is revoked to allow the United States 
     to sell the property under any other provision of law;
       ``(3) shall permit the Secretary to revoke the lease at any 
     time, unless the Secretary determines that the omission of 
     such a provision will promote the national defense or be in 
     the public interest;
       ``(4) shall provide for the payment (in cash or in kind) by 
     the lessee of consideration in an amount that is not less 
     than the fair market value of the lease interest, as 
     determined by the Secretary; and
       ``(5) may provide, notwithstanding any other provision of 
     law, for the improvement, maintenance, protection, repair, 
     restoration, or replacement by the lessee, of the property 
     leased as the payment of part or all of the consideration for 
     the lease.
       ``(c) Competitive Selection.--(1) If the term of a proposed 
     lease under subsection (a) exceeds one year and the fair 
     market value of the lease interest exceeds $100,000, as 
     determined by the Secretary of Defense, the Secretary shall 
     use competitive procedures to select the lessee.
       ``(2) Not later than 45 days before entering into a lease 
     described in paragraph (1), the Secretary shall submit to 
     Congress a written notice describing the terms of the 
     proposed lease and the competitive procedures used to select 
     the lessee.
       ``(d) Disposition of Money Rent.--Money rentals received 
     pursuant to a lease entered into by the Secretary of Defense 
     under subsection (a) shall be deposited in a special account 
     in the Treasury established for the Defense Agency whose 
     property is subject to the lease. Amounts in a Defense 
     Agency's special account shall be available, to the extent 
     provided in appropriations Acts, solely for the maintenance, 
     repair, restoration, or replacement of the leased 
     property.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2667 the following new item:

``2667a. Leases: non-excess property of Defense Agencies.''.

     SEC. 1063. DONATION OF EXCESS CHAPEL PROPERTY TO CHURCHES 
                   DAMAGED OR DESTROYED BY ARSON OR OTHER ACTS OF 
                   TERRORISM.

       (a) Authority to Donate.--Chapter 153 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 2580. Donation of excess chapel property

       ``(a) Authority to Donate.--The Secretary of a military 
     department may donate personal property specified in 
     subsection (b) to an organization described in section 
     501(c)(3) of the Internal Revenue Code of 1986 that is a 
     religious organization in order to assist the organization in 
     restoring or replacing property of the organization that has 
     been damaged or destroyed as a result of an act of arson or 
     terrorism, as determined pursuant to procedures prescribed by 
     the Secretary of Defense.
       ``(b) Property Covered.--(1) The property authorized to be 
     donated under subsection (a) is furniture and other personal 
     property that--
       ``(A) is in, or was formerly in, a chapel under the 
     jurisdiction of the Secretary of a military department and 
     closed or being closed; and
       ``(B) is determined by the Secretary to be excess to the 
     requirements of the armed forces.
       ``(2) No real property may be donated under this section.
       ``(c) Donees Not To Be Charged.--No charge may be imposed 
     by the Secretary of a military department on a donee of 
     property under this section in connection with the donation. 
     However, the donee shall agree to defray any expense for 
     shipping or other transportation of property donated under 
     this section from the location of the property when donated 
     to any other location.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2580. Donation of excess chapel property.''.

     SEC. 1064. AUTHORITY OF THE SECRETARY OF DEFENSE CONCERNING 
                   DISPOSAL OF ASSETS UNDER COOPERATIVE AGREEMENTS 
                   ON AIR DEFENSE IN CENTRAL EUROPE.

       (a) General Authorities.--The Secretary of Defense, 
     pursuant to an amendment or amendments to the European air 
     defense agreements, may dispose of any defense articles owned 
     by the United States and acquired to carry out such 
     agreements by providing such articles to the Federal Republic 
     of Germany. In carrying out such disposal, the Secretary--
       (1) may provide without monetary charge to the Federal 
     Republic of Germany articles specified in the agreements; and
       (2) may accept from the Federal Republic of Germany (in 
     exchange for the articles provided under paragraph (1)) 
     articles, services, or any other consideration, as determined 
     appropriate by the Secretary.
       (b) Definition of European Air Defense Agreements.--For the 
     purposes of this section, the term ``European air defense 
     agreements'' means--
       (1) the agreement entitled ``Agreement between the 
     Secretary of Defense of the United States of America and the 
     Minister of Defense of the Federal Republic of Germany on 
     Cooperative Measures for Enhancing Air Defense for Central 
     Europe'', signed on December 6, 1983; and
       (2) the agreement entitled ``Agreement between the 
     Secretary of Defense of the United States of America and the 
     Minister of Defense of the Federal Republic of Germany in 
     implementation of the 6 December 1983 Agreement on 
     Cooperative Measures for Enhancing Air Defense for Central 
     Europe'', signed on July 12, 1984.

     SEC. 1065. SALE OF EXCESS, OBSOLETE, OR UNSERVICEABLE 
                   AMMUNITION AND AMMUNITION COMPONENTS.

       (a) Authority.--(1) Chapter 443 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 4687. Sale of excess, obsolete, or unserviceable 
       ammunition and ammunition components

       ``(a) Authority To Sell Outside DoD.--The Secretary of the 
     Army may sell to an eligible purchaser described in 
     subsection (c) ammunition or ammunition components that are 
     excess, obsolete, or unserviceable and have not been 
     demilitarized if--
       ``(1) the purchaser enters into an agreement, in advance, 
     with the Secretary--
       ``(A) to demilitarize the ammunition or components; and
       ``(B) to reclaim, recycle, or reuse the component parts or 
     materials; or
       ``(2) the Secretary, or an official of the Department of 
     the Army designated by the Secretary, approves the use of the 
     ammunition or components proposed by the purchaser as being 
     consistent with the public interest.
       ``(b) Method of Sale.--The Secretary shall use competitive 
     procedures to sell ammunition and ammunition components under 
     this section, except that the Secretary may use procedures 
     other than competitive procedures in any case in which the 
     Secretary determines that there is only one potential buyer 
     of the items being offered for sale.
       ``(c) Eligible Purchasers.--To be eligible to purchase 
     excess, obsolete, or unserviceable ammunition or ammunition 
     components under this section, the purchaser shall be a 
     licensed manufacturer (as defined in section 921(10) of title 
     18) that, as determined by the Secretary, has a capability to 
     modify, reclaim, transport, and either store or sell the 
     ammunition or ammunition components sought to be purchased.
       ``(d) Hold Harmless Agreement.--The Secretary shall require 
     a purchaser of ammunition or ammunition components under this 
     section to agree to hold harmless and indemnify the United 
     States from any claim for damages for death, injury, or other 
     loss resulting from a use of the ammunition or ammunition 
     components, except in a case of willful misconduct or gross 
     negligence of a representative of the United States.
       ``(e) Verification of Demilitarization.--The Secretary 
     shall establish procedures for ensuring that a purchaser of 
     ammunition or ammunition components under this section 
     demilitarizes the ammunition or ammunition components in 
     accordance with any agreement to do so under subsection 
     (a)(1). The procedures shall include on-site verification of 
     demilitarization activities.
       ``(f) Consideration.--The Secretary may accept ammunition, 
     ammunition components, or ammunition 
     demilitarization services as consideration for ammunition 
     or ammunition components sold under this section. The fair 
     market value of any such consideration shall be equal to 
     or exceed the fair market value or, if higher, the sale 
     price of the ammunition or ammunition components sold.
       ``(g) Relationship to Arms Export Control Act.--Nothing in 
     this section shall be construed to affect the applicability 
     of section 38 of the Arms Export Control Act (22 U.S.C. 2778) 
     to sales of ammunition or ammunition components on the United 
     States Munitions List.
       ``(h) Definitions.--In this section:
       ``(1) The term `excess, obsolete, or unserviceable', with 
     respect to ammunition or ammunition components, means that 
     the ammunition or ammunition components are no longer 
     necessary for war reserves or for support of training of the 
     Army or production of ammunition or ammunition components.
       ``(2) The term `demilitarize', with respect to ammunition 
     or ammunition components--
       ``(A) means to destroy the military offensive or defensive 
     advantages inherent in the ammunition or ammunition 
     components; and
       ``(B) includes any mutilation, scrapping, melting, burning, 
     or alteration that prevents the use of the ammunition or 
     ammunition components for the military purposes for which the 
     ammunition or ammunition components was designed or for a 
     lethal purpose.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``4687. Sale of excess, obsolete, or unserviceable ammunition and 
              ammunition components.''.


[[Page H9151]]


       (b) Review of Initial Sales.--(1) For each of the first 
     three fiscal years during which the Secretary of the Army 
     sells ammunition or ammunition components under the authority 
     of section 4687 of title 10, United States Code, as added by 
     subsection (a), the Director of the Army Audit Agency shall 
     conduct a review of sales under such section to ensure that--
       (A) purchasers that enter into an agreement under 
     subsection (a)(1) of such section to demilitarize the 
     purchased ammunition or ammunition components fully comply 
     with the agreement; and
       (B) purchasers that are authorized under subsection (a)(2) 
     of such section to use the purchased ammunition or ammunition 
     components actually use the ammunition or ammunition 
     components in the manner proposed.
       (2) Not later than 180 days after the end of each fiscal 
     year in which the review is conducted, the Secretary of the 
     Army shall submit to Congress a report containing the results 
     of the review for the fiscal year covered by the report.

     SEC. 1066. TRANSFER OF B-17 AIRCRAFT TO MUSEUM.

       (a) Authority.--The Secretary of the Air Force may convey, 
     without consideration to the Planes of Fame Museum, Chino, 
     California (in this section referred to as the ``museum''), 
     all right, title, and interest of the United States in and to 
     the B-17 aircraft known as the ``Picadilly Lilly'', an 
     aircraft that has been in the possession of the museum since 
     1959. Such a conveyance shall be made by means of a 
     conditional deed of gift.
       (b) Condition of Aircraft.--The Secretary may not convey 
     ownership of the aircraft under subsection (a) until the 
     Secretary determines that the museum has altered the aircraft 
     in such manner as the Secretary determines necessary to 
     ensure that the aircraft does not have any capability for use 
     as a platform for launching or releasing munitions or any 
     other combat capability that it was designed to have. The 
     Secretary is not required to repair or alter the condition of 
     the aircraft before conveying ownership of the aircraft.
       (c) Reverter Upon Transfer of Ownership or Possession.--The 
     Secretary shall include in the instrument of conveyance of 
     the aircraft--
       (1) a condition that the museum not convey any ownership 
     interest in, or transfer possession of, the aircraft to any 
     other party without the prior approval of the Secretary of 
     the Air Force; and
       (2) a condition that if the Secretary of the Air Force 
     determines at any time that the museum has conveyed an 
     ownership interest in, or transferred possession of, the 
     aircraft to any other party without the prior approval of the 
     Secretary, all right, title, and interest in and to the 
     aircraft, including any repair or alteration of the aircraft, 
     shall revert to the United States, and the United States 
     shall have the right of immediate possession of the aircraft.
       (d) Conveyance at No Cost to the United States.--The 
     conveyance authorized by this section shall be made at no 
     cost to the United States. Any costs associated with such 
     conveyance, including costs of determining compliance with 
     subsection (b), shall be borne by the museum.
       (e) Additional Terms and Conditions.--The Secretary of the 
     Air Force may require such additional terms and conditions in 
     connection with the conveyance under this section as the 
     Secretary considers appropriate to protect the interests of 
     the United States.
       (f) Clarification of Liability.--Notwithstanding any other 
     provision of law, upon conveyance of ownership of the B-17 
     aircraft specified in subsection (a) to the museum, the 
     United States shall not be liable for any death, injury, 
     loss, or damage that results from any use of that aircraft by 
     any person other than the United States.

     SEC. 1067. REPORT ON DISPOSAL OF EXCESS AND SURPLUS 
                   MATERIALS.

       (a) Report Required.--Not later than January 31, 1998, the 
     Secretary of Defense shall submit to Congress a report on the 
     actions that have been taken or are planned to be taken 
     within the Department of Defense to address problems with the 
     sale or other disposal of materials that are excess or 
     surplus to the needs of the Department of Defense.
       (b) Required Content.-- At a minimum, the report shall 
     address the following issues:
       (1) The effort to standardize the coding of military 
     equipment for demilitarization at all stages of the process, 
     from initial acquisition through disposal.
       (2) The changes underway to improve the methods used for 
     the demilitarization of military equipment.
       (3) Recent efforts to improve the accuracy of coding 
     performed by Government employees and contractor employees.
       (4) Recent efforts to improve the enforcement of the 
     penalties that are applicable to Government employees and 
     contractor employees who fail to comply with rules or 
     procedures applicable to the demilitarization of military 
     equipment.
       (5) The methods of oversight and enforcement used by the 
     Department of Defense to review the demilitarization of 
     military equipment by the purchasers of the equipment.
       (6) The current and planned controls designed to prevent 
     the inappropriate transfer of excess military equipment 
     outside the United States.
       (7) The current procedures used by the Department, 
     including repurchase, to recover military equipment that is 
     sold or otherwise disposed of without appropriate action 
     having been taken to demilitarize the equipment or to provide 
     for demilitarization of the equipment.
       (8) The legislative changes, if any, that would be 
     necessary to improve the recovery rate under the procedures 
     identified under paragraph (7).
       (c) Identification of Frequent Errors and Misuse.--Based on 
     fiscal year 1997 findings, the Secretary of Defense shall 
     identify in the report--
       (1) the 50 categories of military equipment that most 
     frequently received an erroneous demilitarization code; and
       (2) the categories of military equipment that are 
     particularly vulnerable to improper use after disposal.
                       Subtitle G--Other Matters

     SEC. 1071. AUTHORITY FOR SPECIAL AGENTS OF THE DEFENSE 
                   CRIMINAL INVESTIGATIVE SERVICE TO EXECUTE 
                   WARRANTS AND MAKE ARRESTS.

       (a) Authority.--Chapter 81 of title 10, United States Code, 
     is amended by inserting after section 1585 the following new 
     section:

     ``Sec. 1585a. Special agents of the Defense Criminal 
       Investigative Service: authority to execute warrants and 
       make arrests

       ``(a) Authority.--The Secretary of Defense may authorize 
     any DCIS special agent described in subsection (b)--
       ``(1) to execute and serve any warrant or other process 
     issued under the authority of the United States; and
       ``(2) to make arrests without a warrant--
       ``(A) for any offense against the United States committed 
     in the presence of that agent; and
       ``(B) for any felony cognizable under the laws of the 
     United States if the agent has probable cause to believe that 
     the person to be arrested has committed or is committing the 
     felony.
       ``(b) Agents To Have Authority.--Subsection (a) applies to 
     any DCIS special agent whose duties include conducting, 
     supervising, or coordinating investigations of criminal 
     activity in programs and operations of the Department of 
     Defense.
       ``(c) Guidelines on Exercise of Authority.--The authority 
     provided under subsection (a) shall be exercised in 
     accordance with guidelines prescribed by the Inspector 
     General of the Department of Defense and approved by the 
     Attorney General and any other applicable guidelines 
     prescribed by the Secretary of Defense or the Attorney 
     General.
       ``(d) DCIS Special Agent Defined.--In this section, the 
     term `DCIS special agent' means an employee of the Department 
     of Defense who is a special agent of the Defense Criminal 
     Investigative Service (or any successor to that 
     service).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1585 the following new item:

``1585a. Special agents of the Defense Criminal Investigative Service: 
              authority to execute warrants and make arrests.''.

     SEC. 1072. STUDY OF INVESTIGATIVE PRACTICES OF MILITARY 
                   CRIMINAL INVESTIGATIVE ORGANIZATIONS RELATING 
                   TO SEX CRIMES.

       (a) Independent Study Required.--(1) The Secretary of 
     Defense shall provide for an independent study of the 
     policies, procedures, and practices of the military criminal 
     investigative organizations for the conduct of investigations 
     of complaints of sex crimes and other criminal sexual 
     misconduct arising in the Armed Forces.
       (2) The Secretary shall provide for the study to be 
     conducted by the National Academy of Public Administration. 
     The amount of a contract for the study may not exceed 
     $2,000,000.
       (3) The Secretary shall require that all components of the 
     Department of Defense cooperate fully with the organization 
     carrying out the study.
       (b) Matters To Be Included in Study.--The Secretary shall 
     require that the organization conducting the study under this 
     section specifically consider each of the following matters:
       (1) The need (if any) for greater organizational 
     independence and autonomy for the military criminal 
     investigative organizations than exists under current chain-
     of-command structures within the military departments.
       (2) The authority of each of the military criminal 
     investigative organizations to investigate allegations of sex 
     crimes and other criminal sexual misconduct and the policies 
     of those organizations for carrying out such investigations.
       (3) The training (including training in skills and 
     techniques related to the conduct of interviews) provided 
     by each of those organizations to agents or prospective 
     agents responsible for conducting or providing support to 
     investigations of alleged sex crimes and other criminal 
     sexual misconduct, including--
       (A) the extent to which that training is comparable to the 
     training provided by the Federal Bureau of Investigation and 
     other civilian law enforcement agencies; and
       (B) the coordination of training and investigative policies 
     related to alleged sex crimes and other criminal sexual 
     misconduct of each of those organizations with the Federal 
     Bureau of Investigation and other civilian Federal law 
     enforcement agencies.
       (4) The procedures and relevant professional standards of 
     each military criminal investigative organization with regard 
     to recruitment and hiring of agents, including an evaluation 
     of the extent to which those procedures and standards provide 
     for--
       (A) sufficient screening of prospective agents based on 
     background investigations; and
       (B) obtaining sufficient information about the 
     qualifications and relevant experience of prospective agents.
       (5) The advantages and disadvantages of establishing, 
     within each of the military criminal investigative 
     organizations or within the Defense Criminal Investigative 
     Service only, a special unit for the investigation of alleged 
     sex crimes and other criminal sexual misconduct.
       (6) The clarity of guidance for, and consistency of 
     investigative tactics used by, each of the military criminal 
     investigative organizations for

[[Page H9152]]

     the investigation of alleged sex crimes and other criminal 
     sexual misconduct, together with a comparison with the 
     guidance and tactics used by the Federal Bureau of 
     Investigation and other civilian law enforcement agencies for 
     such investigations.
       (7) The number of allegations of agent misconduct in the 
     investigation of sex crimes and other criminal 
     sexual misconduct for each of those organizations, 
     together with a comparison with the number of such 
     allegations concerning agents of the Federal Bureau of 
     Investigation and other civilian law enforcement agencies 
     for such investigations.
       (8) The procedures of each of the military criminal 
     investigative organizations for administrative identification 
     (known as ``titling'') of persons suspected of committing sex 
     crimes or other criminal sexual misconduct, together with a 
     comparison with the comparable procedures of the Federal 
     Bureau of Investigation and other civilian Federal law 
     enforcement agencies for such investigations.
       (9) The accuracy, timeliness, and completeness of reporting 
     of sex crimes and other criminal sexual misconduct by each of 
     the military criminal investigative organizations to the 
     National Crime Information Center maintained by the 
     Department of Justice.
       (10) Any recommendation for legislation or administrative 
     action to revise the organizational or operational 
     arrangements of the military criminal investigative 
     organizations or to alter recruitment, training, or 
     operational procedures, as they pertain to the investigation 
     of sex crimes and other criminal sexual misconduct.
       (c) Report.--(1) The Secretary of Defense shall require the 
     organization conducting the study under this section to 
     submit to the Secretary a report on the study not later than 
     one year after the date of the enactment of this Act. The 
     organization shall include in the report its findings and 
     conclusions concerning each of the matters specified in 
     subsection (b).
       (2) The Secretary shall submit the report under paragraph 
     (1), together with the Secretary's comments on the report, to 
     Congress not later than 30 days after the date on which the 
     report is submitted to the Secretary under paragraph (1).
       (d) Military Criminal Investigative Organization Defined.--
     For the purposes of this section, the term ``military 
     criminal investigative organization'' means any of the 
     following:
       (1) The Army Criminal Investigation Command.
       (2) The Naval Criminal Investigative Service.
       (3) The Air Force Office of Special Investigations.
       (4) The Defense Criminal Investigative Service.
       (e) Criminal Sexual Misconduct Defined.--For the purposes 
     of this section, the term ``criminal sexual misconduct'' 
     means conduct by a member of the Armed Forces involving 
     sexual abuse, sexual harassment, or other sexual misconduct 
     that constitutes an offense under the Uniform Code of 
     Military Justice.

     SEC. 1073. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part I of subtitle A, are each 
     amended by striking out ``471'' in the item relating to 
     chapter 23 and inserting in lieu thereof ``481''.
       (2) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part IV of subtitle A, are each 
     amended by striking out ``2540'' in the item relating to 
     chapter 152 and inserting in lieu thereof ``2541''.
       (3) Section 116(b)(2) is amended by striking out ``such 
     subsection'' and inserting in lieu thereof ``subsection 
     (a)''.
       (4) Section 129c(e)(1) is amended by striking out ``section 
     115a(g)(2)'' and inserting in lieu thereof ``section 
     115a(e)(2)''.
       (5) Section 193(d)(1) is amended by striking out 
     ``performs'' and inserting in lieu thereof ``perform''.
       (6) Section 382(g) is amended by striking out ``the date of 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 1997'' and inserting in lieu thereof ``September 
     23, 1996''.
       (7) Section 443(b)(1) is amended by striking out the period 
     at the end and inserting in lieu thereof a semicolon.
       (8) Section 445 is amended--
       (A) by striking out ``(1)'' before ``Except with'';
       (B) by redesignating subparagraphs (A), (B), and (C) as 
     paragraphs (1), (2), and (3), respectively;
       (C) by striking out ``(2)'' before ``Whenever it appears'' 
     and inserting in lieu thereof ``(b) Injunctive Relief.--''; 
     and
       (D) by striking out ``paragraph (1)'' and inserting in lieu 
     thereof ``subsection (a)''.
       (9) Section 858b(a)(1) is amended in the first sentence by 
     striking out ``forfeiture'' and all that follows through 
     ``due that member'' and inserting in lieu thereof 
     ``forfeiture of pay, or of pay and allowances, due that 
     member''.
       (10) The item relating to section 895 (article 95) in the 
     table of sections at the beginning of subchapter X of chapter 
     47 is amended by striking out ``Art.''.
       (11) Section 943(c) is amended--
       (A) by capitalizing the initial letter of the third word of 
     the subsection heading;
       (B) in the second sentence, by striking out ``Court'' and 
     inserting in lieu thereof ``court''; and
       (C) in the third sentence, by striking out ``such 
     positions'' and inserting in lieu thereof ``positions 
     referred to in the preceding sentences''.
       (12) Section 954 is amended by striking out ``this'' and 
     inserting in lieu thereof ``his''.
       (13) Section 971(b)(4) is amended by capitalizing the first 
     letter of the fifth and sixth words.
       (14) Section 972(b) is amended by striking out ``the date 
     of the enactment of the National Defense Authorization Act 
     for Fiscal Year 1996'' in the matter preceding paragraph (1) 
     and inserting in lieu thereof ``February 10, 1996''.
       (15) Section 976(f) is amended by striking out ``shall,'' 
     and all that follows and inserting in lieu thereof ``shall be 
     fined under title 18 or imprisoned not more than 5 years, or 
     both, except that, in the case of an organization (as defined 
     in section 18 of such title), the fine shall not be less than 
     $25,000.''.
       (16) Section 977 is amended--
       (A) in subsection (c), by striking out ``Beginning on 
     October 1, 1996, not more than'' and inserting in lieu 
     thereof ``Not more than''; and
       (B) in subsection (d)(2), by striking out ``before October 
     1, 1996,'' and all that follows through ``so assigned'' the 
     second place it appears.
       (17) Section 1078a(g)(4)(B)(iii)(II) is amended by striking 
     out ``section 1447(8)'' and inserting in lieu thereof 
     ``section 1447(13)''.
       (18) Section 1129(c) is amended--
       (A) by striking out ``the date of the enactment of this 
     section,'' and inserting in lieu thereof ``November 30, 
     1993,''; and
       (B) by striking out ``before the date of the enactment of 
     this section or'' and inserting in lieu thereof ``before such 
     date or''.
       (19) Section 1151(b) is amended by capitalizing the first 
     letter of the second word in the subsection heading.
       (20) Section 1152(g) is amended by inserting ``(1)'' before 
     ``The Secretary may''.
       (21) Section 1143(d) is amended by striking out ``section 
     806(a)(2) of the Military Family Act of 1985'' and inserting 
     in lieu thereof ``section 1784(a)(2) of this title''.
       (22) Section 1174(a)(1) is amended by striking out ``, 
     1177,''.
       (23) Section 1406 is amended--
       (A) by striking out ``3962(b)'' in footnote number 3 in the 
     table in subsection (b)(1) and in footnote number 1 in the 
     table in subsection (c)(1) and inserting in lieu thereof 
     ``3962''; and
       (B) by striking out ``8962(b)'' in footnote number 3 in the 
     table in subsection (b)(1) and in footnote number 1 in the 
     table in subsection (e)(1) and inserting in lieu thereof 
     ``8962''.
       (24) Section 1408(d) is amended--
       (A) by decapitalizing the first letter of the fifth word in 
     the subsection heading;
       (B) by redesignating the second paragraph (6) as paragraph 
     (7); and
       (C) in paragraph (7), as so redesignated, by striking out 
     ``out-of State'' in subparagraph (A) and inserting in lieu 
     thereof ``out-of-State''.
       (25) Section 1408(g) is amended by decapitalizing the first 
     letter of the second and ninth words in the subsection 
     heading.
       (26) Section 1444a(b) is amended by striking out ``section 
     1455(c)'' and inserting in lieu thereof ``section 
     1455(d)(2)''.
       (27) Section 1448 is amended by capitalizing the first 
     letter of the third word of the section heading.
       (28) Section 1451(a)(2) is amended by inserting a period in 
     the paragraph heading before the one-em dash.
       (29) Section 1452 is amended--
       (A) in subsection (a)(1)(A), by striking out ``providing'' 
     in the matter preceding clause (i) and inserting in lieu 
     thereof ``provided''; and
       (B) in subsection (e), by striking out ``section 8339(i)'' 
     and ``section 8331(b)'' and inserting in lieu thereof 
     ``section 8339(j)'' and ``section 8341(b)'', respectively.
       (30) Section 1504(i)(1) is amended by striking out ``this 
     subsection'' and inserting in lieu thereof ``this section''.
       (31) Section 1599c(c)(1)(F) is amended by striking out 
     ``Sections 106(f)'' and inserting in lieu thereof ``Sections 
     106(e)''.
       (32) Section 1613(a) is amended by striking out ``1604'' 
     and inserting in lieu thereof ``1603''.
       (33) Section 1763 is amended--
       (A) by striking out ``On and after October 1, 1993, the 
     Secretary of Defense'' and inserting in lieu thereof ``The 
     Secretary of Defense''; and
       (B) by striking out ``secretaries'' and inserting in lieu 
     thereof ``Secretaries''.
       (34) Section 1792 is amended--
       (A) in subsection (a)(1), by striking out the comma after 
     ``implementing''; and
       (B) in subsection (d)(2), by striking out ``section 1794'' 
     and inserting in lieu thereof ``section 1784''.
       (35) Section 2010(e) is repealed.
       (36) Section 2107a(g) is amended by inserting ``the'' after 
     ``August 1, 1979, as a member of''.
       (37) Section 2109(c)(1)(A) is amended by striking out 
     ``section 2106(b)(6)'' and inserting in lieu thereof 
     ``section 2104(b)(6)''.
       (38) Section 2114(h) is amended by striking out ``section 
     2123(e)(1)'' and inserting in lieu thereof ``section 
     2123(e)''.
       (39) Section 2198(c) is amended by striking out 
     ``identified in'' and all that follows through the period at 
     the end and inserting in lieu thereof ``that is identified 
     under section 2505 of this title as critical for attaining 
     the national security objectives set forth in section 2501(a) 
     of this title.''.
       (40) Section 2249a(a)(1) is amended by striking out ``50 
     App. 2405(j)'' and inserting in lieu thereof ``50 U.S.C. App. 
     2405(j)(1)(A)''.
       (41) Section 2302d(a)(2) is amended by striking out 
     ``procurement of'' and inserting in lieu thereof 
     ``procurement for the system is estimated to be''.
       (42) Section 2304(c)(5) is amended by striking out 
     ``subsection (j)'' and inserting in lieu thereof ``subsection 
     (k)''.
       (43) Section 2304(f) is amended--
       (A) in paragraph (1)(B)(iii), by striking out ``(6)(C)'' 
     and inserting in lieu thereof ``(6)(B)''; and
       (B) in paragraph (6)--
       (i) by striking out subparagraph (B); and
       (ii) by redesignating subparagraph (C) as subparagraph (B) 
     and in that subparagraph by striking out ``paragraph 
     (1)(B)(iv)'' and inserting in lieu thereof ``paragraph 
     (1)(B)(iii)''.

[[Page H9153]]

       (44) Section 2305a(a) is amended by striking out ``(41 
     U.S.C.'' and inserting in lieu thereof ``(40 U.S.C.''.
       (45) Section 2306(h) is amended by inserting ``for the 
     purchase of property'' after ``Multiyear contracting 
     authority''.
       (46) Section 2306a(a)(5) is amended by striking out 
     ``subsection (b)(1)(B)'' and inserting in lieu thereof 
     ``subsection (b)(1)(C)''.
       (47) Section 2306b is amended by striking out ``this 
     subsection'' in the first sentence of subsection (k) and 
     inserting in lieu thereof ``this section''.
       (48)(A) The heading of section 2306b is amended to read as 
     follows:

     ``Sec. 2306b. Multiyear contracts: acquisition of property''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 137 is amended to read 
     as follows:

``2306b. Multiyear contracts: acquisition of property.''.
       (49) Section 2315(a) is amended by striking out ``the 
     Information Technology Management Reform Act of 1996'' and 
     inserting in lieu thereof ``division E of the Clinger-Cohen 
     Act of 1996 (40 U.S.C. 1401 et seq.)''.
       (50) Section 2371a is amended by inserting ``Defense'' 
     before ``Advanced Research Projects Agency''.
       (51) Section 2375(c) is amended--
       (A) by striking out ``provisions relating to exceptions'' 
     and inserting in lieu thereof ``a provision relating to an 
     exception''; and
       (B) by striking out ``section 2306a(d)'' and inserting in 
     lieu thereof ``section 2306a(b)''.
       (52) Section 2401a(a) is amended by striking out ``leasing 
     of such vehicles'' and inserting in lieu thereof ``such 
     leasing''.
       (53) Section 2491(8) is amended by striking out ``that 
     appears'' and all that follows through the period at the end 
     and inserting in lieu thereof ``that is identified under 
     section 2505 of this title as critical for attaining the 
     national security objectives set forth in section 2501(a) of 
     this title.''.
       (54) Section 2533(a) is amended by striking out the first 
     closing parenthesis after ``41 U.S.C. 10a''.
       (55) Section 2534(b)(3) is amended by striking out 
     ``(a)(3)(A)(ii)'' and inserting in lieu thereof 
     ``(a)(3)(A)(iii)''.
       (56) Section 2554(c)(1) is amended by striking out ``the 
     date of the enactment of this Act'' and inserting in lieu 
     thereof ``September 23, 1996''.
       (57) Section 2645(a)(1)(B) is amended by striking out ``on 
     which'' after ``the date on which''.
       (58) Section 2684(b) is amended by striking out ``, United 
     States Code,''.
       (59) Section 2694(b)(1)(D) is amended by striking out 
     ``executive ageny'' and inserting in lieu thereof ``executive 
     agency''.
       (60) Section 2878(d)(4) is amended by striking out 
     ``11401'' and inserting in lieu thereof ``11411''.
       (61) Section 2885 is amended by striking out ``five years 
     after the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 1996'' and inserting in 
     lieu thereof ``on February 10, 2001''.
       (62) Sections 4342(a)(10), 6954(a)(10), and 9342(a)(10) are 
     amended by striking out ``Marianas'' and inserting in lieu 
     thereof ``Mariana''.
       (63) Section 7606(e) is amended by striking out 
     ``sections'' and inserting in lieu thereof ``section''.
       (64) Section 7902(b)(8) is amended by inserting ``United 
     States'' before ``Geological Survey''.
       (65) Section 8038(e) is amended by striking out ``(1)''.
       (66) The item relating to section 8069 in the table of 
     sections at the beginning of chapter 807 is amended by 
     striking out ``Nurse Corps'' and inserting in lieu thereof 
     ``nurses''.
       (67) Section 12733(3) is amended--
       (A) by inserting a comma after ``(B)''; and
       (B) by striking out ``in which the date of the enactment of 
     the National Defense Authorization Act for Fiscal Year 1997 
     occurs'' and inserting in lieu thereof ``that includes 
     September 23, 1996,''.
       (68) Section 14317(d) is amended by striking out ``section 
     14314'' in the first sentence and inserting in lieu thereof 
     ``section 14315''.
       (b) Title 37, United States Code.--Section 205(d) of title 
     37, United States Code, is amended by striking out the period 
     after ``August 1, 1979'' and inserting in lieu thereof a 
     comma.
       (c) Public Law 104-201.--Effective as of September 23, 
     1996, and as if included therein as enacted, the National 
     Defense Authorization Act for Fiscal Year 1997 (Public Law 
     104-201) is amended as follows:
       (1) Section 324(b)(2) (110 Stat. 2480) is amended by 
     inserting after ``In this subsection'' the following: ``and 
     subsection (c)''.
       (2) Section 367 (110 Stat. 2496) is amended--
       (A) in subsection (a), by striking out ``Subchapter II of 
     chapter'' and inserting in lieu thereof ``Chapter''; and
       (B) in subsection (b), by striking out ``subchapter'' and 
     inserting in lieu thereof ``chapter''.
       (3) Section 371(a) (110 Stat. 2499) is amended by striking 
     out ``Section 559(a)(1)'' and inserting in lieu thereof 
     ``Section 559''.
       (4) Section 531(a) (110 Stat. 2517) is amended by inserting 
     ``of title 10, United States Code,'' before ``is amended''.
       (5) Section 614(b)(2)(B) (110 Stat. 2544) is amended by 
     striking out ``the period'' and inserting in lieu thereof 
     ``the semicolon''.
       (6) Section 802(1) (110 Stat. 2604) is amended by striking 
     out ``1995'' in the first quoted matter therein and inserting 
     in lieu thereof ``1996''.
       (7) Section 829(c) (110 Stat. 2612) is amended--
       (A) in paragraph (2), by striking out ``Section 2502(b)'' 
     and inserting in lieu thereof ``Section 2502(c)''; and
       (B) by redesignating paragraph (3) as subparagraph (C) of 
     paragraph (2).
       (8) Section 1116(b) (110 Stat. 2686) is amended by striking 
     out ``section 1122'' and inserting in lieu thereof ``section 
     1111''.
       (9) Section 1606 (110 Stat. 2737) is amended--
       (A) in subsection (a)(1)--
       (i) by striking out the comma before ``or are''; and
       (ii) by inserting a semicolon after ``Secretary of 
     Defense'';
       (B) in subsection (b)(1)(A), by striking out ``Secretary of 
     each'' and inserting in lieu thereof ``secretary of each''; 
     and
       (C) in subsection (b)(2)(B), by inserting a semicolon after 
     ``Defense''.
       (d) Other Annual Defense Authorization Acts.--
       (1) Effective as of February 10, 1996, and as if included 
     therein as enacted, the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106) is amended as 
     follows:
       (A) Section 321(a)(2)(A) (110 Stat. 251) is amended by 
     striking out ``2710(d)'' and inserting in lieu thereof 
     ``2701(d)''.
       (B) Section 356(d)(3) (110 Stat. 271) is amended by 
     striking out ``or'' after ``to any provision'' and inserting 
     in lieu thereof ``of''.
       (C) Section 533(b) (110 Stat. 315) is amended by inserting 
     before the period at the end the following: ``and the 
     amendments made by subsection (b), effective as of October 5, 
     1994''.
       (D) Section 703(b) (110 Stat. 372) is amended by striking 
     out ``Such paragraph'' and inserting in lieu thereof ``Such 
     section''.
       (E) Section 1501 (110 Stat. 500) is amended--
       (i) in subsection (d)(1), by striking out ``337(b)'' and 
     ``2717'' and inserting in lieu thereof ``377(b)'' and 
     ``2737'', respectively; and
       (ii) in subsection (f)(2), by inserting ``of the Reserve 
     Officer Personnel Management Act'' before ``shall take''.
       (2) The National Defense Authorization Act for Fiscal Year 
     1993 (Public Law 102-484) is amended as follows:
       (A) Section 812(c) (10 U.S.C. 1723 note) is amended by 
     inserting ``and Technology'' after ``for Acquisition''.
       (B) Section 1091(l)(3) (32 U.S.C. 501 note) is amended by 
     striking out ``the day preceding the date of the enactment of 
     this Act'' and inserting in lieu thereof ``October 19, 
     1994''.
       (C) Section 4471 (10 U.S.C. 2501 note) is amended by 
     realigning subsection (e) so as to be flush to the left 
     margin.
       (3) Section 807(b)(2)(A) of the National Defense 
     Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
     102-190; 10 U.S.C. 2320 note) is amended by inserting before 
     the period the following: ``and Technology''.
       (4) The National Defense Authorization Act for Fiscal Year 
     1991 (Public Law 101-510) is amended as follows:
       (A) Section 1205 (10 U.S.C. 1746 note) is amended by 
     striking out ``Under Secretary of Defense for Acquisition'' 
     each place it appears and inserting in lieu thereof ``Under 
     Secretary of Defense for Acquisition and Technology''.
       (B) Section 2905 (10 U.S.C. 2687 note) is amended--
       (i) in subsection (b)(7), by striking out ``4331'' in 
     subparagraphs (K)(iii) and (L)(iv)(III) and inserting in lieu 
     thereof ``4321''; and
       (ii) in subsection (f)(3), by striking out ``section 
     2873(a)'' and inserting in lieu thereof ``section 2883(a)''.
       (C) Section 2921 (10 U.S.C. 2687 note) is amended--
       (i) in subsection (e)(3)(B), by striking out ``Defense 
     Subcommittees'' and inserting in lieu thereof ``Subcommittee 
     on Defense''; and
       (ii) in subsection (f)(2), by striking out ``the Committees 
     on Armed Services of the Senate and House of 
     Representatives'' and inserting in lieu thereof ``the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives''.
       (5) Section 1121(c) of the National Defense Authorization 
     Act for Fiscal Years 1988 and 1989 (Public Law 100-180; 10 
     U.S.C. 113 note) is amended by striking out ``under this 
     section--'' and all that follow through ``fiscal year 1990'' 
     and inserting in lieu thereof ``under this section may not 
     exceed 5,000 during any fiscal year''.
       (6) Section 204(e)(3) of the Defense Authorization 
     Amendments and Base Closure and Realignment Act (Public Law 
     100-526; 10 U.S.C. 2687 note) is amended by striking out 
     ``section 2873(a)'' and inserting in lieu thereof ``section 
     2883(a)''.
       (e) Title 5, United States Code.--Title 5, United States 
     Code, is amended as follows:
       (1) Section 5315 is amended--
       (A) in the item relating to the Chief Information Officer 
     of the Department of the Interior, by inserting ``the'' 
     before ``Interior''; and
       (B) in the item relating to the Chief Information Officer 
     of the Department of the Treasury, by inserting ``the'' 
     before ``Treasury''.
       (2) Section 5316 is amended by striking out ``Atomic 
     Energy'' after ``Assistant to the Secretary of Defense for'' 
     and inserting in lieu thereof ``Nuclear and Chemical and 
     Biological Defense Programs''.
       (f) Act of August 10, 1956.--Section 3(a)(3) of the Act of 
     August 10, 1956 (33 U.S.C. 857a) is amended by striking out 
     ``1374,''.
       (g) Acquisition Policy Statutes.--
       (1) Section 309 of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 259) is amended by striking 
     out ``and'' at the end of subsection (b)(2).
       (2) The Office of Federal Procurement Policy Act is amended 
     as follows:
       (A) The item relating to section 27 in the table of 
     contents in section 1(b) is amended to read as follows:

``Sec. 27. Restrictions on disclosing and obtaining contractor bid or 
              proposal information or source selection information.''.

       (B) Section 6(d) (41 U.S.C. 405(d)) is amended--
       (i) by striking out the period at the end of paragraph 
     (5)(J) and inserting in lieu thereof a semicolon;

[[Page H9154]]

       (ii) by moving paragraph (6) two ems to the left; and
       (iii) in paragraph (12), by striking out ``small business'' 
     and inserting in lieu thereof ``small businesses''.
       (C) Section 35(b)(2) (41 U.S.C. 431(b)(2)) is amended by 
     striking out ``commercial'' and inserting in lieu thereof 
     ``commercially available''.
       (3) Section 6 of the Contract Disputes Act of 1978 (41 
     U.S.C. 605) is amended in subsections (d) and (e) by striking 
     out ``(as in effect on September 30, 1995)'' each place it 
     appears.
       (4) Subsections (d)(1) and (e) of section 16 of the Small 
     Business Act (15 U.S.C. 645) are each amended by striking out 
     ``concerns'' and inserting in lieu thereof ``concern''.
       (h) Amendments To Conform Change in Short Title of 
     Information Technology Management Reform Act of 1996.--
       (1) Section 20 of the National Institute of Standards and 
     Technology Act (15 U.S.C. 278g-3) is amended in subsections 
     (a)(4) and (b)(2) by striking out ``Information Technology 
     Management Reform Act of 1996'' and inserting in lieu thereof 
     ``Clinger-Cohen Act of 1996 (40 U.S.C. 1441)''.
       (2) Section 612(f) of title 28, United States Code, is 
     amended by striking out ``the Information Technology 
     Management Reform Act of 1996'' and inserting in lieu thereof 
     ``division E of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 
     et seq.)''.
       (3) Section 310(b) of title 38, United States Code, is 
     amended by striking out ``the Information Technology 
     Management Reform Act of 1996'' and inserting in lieu thereof 
     ``division E of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 
     et seq.)''.
       (4) Section 6(b) of the Computer Security Act of 1987 (40 
     U.S.C. 1441 note) is amended by striking out ``Information 
     Technology Management Reform Act of 1996'' and inserting in 
     lieu thereof ``Clinger-Cohen Act of 1996 (40 U.S.C. 1441)''.
       (5) Chapter 35 of title 44, United States Code, is 
     amended--
       (A) in section 3502(9)--
       (i) by striking out ``the Information Technology Management 
     Reform Act of 1996'' and inserting in lieu thereof ``the 
     Clinger-Cohen Act of 1996 (40 U.S.C. 1401)''; and
       (ii) by inserting ``(40 U.S.C. 1452)'' after ``that Act'';
       (B) in section 3504(h)(2), by striking out ``the 
     Information Technology Management Reform Act of 1996'' and 
     inserting in lieu thereof ``division E of the Clinger-Cohen 
     Act of 1996 (40 U.S.C. 1401 et seq.)''; and
       (C) in sections 3504(g)(2), 3504(g)(3), 3504(h)(1)(B), and 
     3518(d) by striking out ``Information Technology Management 
     Reform Act of 1996'' and inserting in lieu thereof ``Clinger-
     Cohen Act of 1996 (40 U.S.C. 1441)''.
       (i) Coordination With Other Amendments.--For purposes of 
     applying amendments made by provisions of this Act other than 
     provisions of this section, this section shall be treated as 
     having been enacted immediately before the other provisions 
     of this Act.

     SEC. 1074. SUSTAINMENT AND OPERATION OF THE GLOBAL 
                   POSITIONING SYSTEM.

       (a) Findings.--Congress makes the following findings:
       (1) The Global Positioning System (consisting of a 
     constellation of satellites and associated facilities capable 
     of providing users on earth with a highly precise statement 
     of their location on earth) makes significant contributions 
     to the attainment of the national security and foreign policy 
     goals of the United States, the safety and efficiency of 
     international transportation, and the economic growth, trade, 
     and productivity of the United States.
       (2) The infrastructure for the Global Positioning System 
     (including both space and ground segments of the 
     infrastructure) is vital to the effectiveness of United 
     States and allied military forces and to the protection of 
     the national security interests of the United States.
       (3) In addition to having military uses, the Global 
     Positioning System has essential civil, commercial, and 
     scientific uses.
       (4) As a result of the increasing demand of civil, 
     commercial, and scientific users of the Global Positioning 
     System--
       (A) there has emerged in the United States a new commercial 
     industry to provide Global Positioning System equipment and 
     related services to the many and varied users of the system; 
     and
       (B) there have been rapid technical advancements in Global 
     Positioning System equipment and services that have 
     contributed significantly to reductions in the cost of the 
     Global Positioning System and increases in the technical 
     capabilities and availability of the system for military 
     uses.
       (5) It is in the national interest of the United States for 
     the United States--
       (A) to support continuation of the multiple-use character 
     of the Global Positioning System;
       (B) to promote broader acceptance and use of the Global 
     Positioning System and the technological standards that 
     facilitate expanded use of the system for civil purposes;
       (C) to coordinate with other countries to ensure (i) 
     efficient management of the electromagnetic spectrum used by 
     the Global Positioning System, and (ii) protection of that 
     spectrum in order to prevent disruption of signals from the 
     system and interference with that portion of the 
     electromagnetic spectrum used by the system; and
       (D) to encourage open access in all international markets 
     to the Global Positioning System and supporting equipment, 
     services, and techniques.
       (b) International Cooperation.--Congress urges the 
     President to promote the security of the United States and 
     its allies, the public safety, and commercial interests by 
     taking the following steps:
       (1) Undertaking a coordinated effort within the executive 
     branch to seek to establish the Global Positioning System, 
     and augmentations to the system, as a worldwide resource.
       (2) Seeking to enter into international agreements to 
     establish signal and service standards that protect the 
     Global Positioning System from disruption and interference.
       (3) Undertaking efforts to eliminate any barriers to, and 
     other restrictions of foreign governments on, peaceful uses 
     of the Global Positioning System.
       (4) Requiring that any proposed international agreement 
     involving nonmilitary use of the Global Positioning System or 
     any augmentation to the system not be agreed to by the United 
     States unless the proposed agreement has been reviewed by the 
     Secretary of State, the Secretary of Defense, the Secretary 
     of Transportation, and the Secretary of Commerce (acting as 
     the Interagency Global Positioning System Executive Board 
     established by Presidential Decision Directive NSTC-6, dated 
     March 28, 1996).
       (c) Fiscal Year 1998 Prohibition of Support of Foreign 
     System.--None of the funds authorized to be appropriated 
     under this Act may be used to support the operation and 
     maintenance or enhancement of a satellite navigation system 
     operated by a foreign country.
       (d) In General.--(1) Part IV of subtitle A of title 10, 
     United States Code, is amended by inserting after chapter 134 
     the following new chapter:

        ``CHAPTER 136--PROVISIONS RELATING TO SPECIFIC PROGRAMS

``Sec.
``2281. Global Positioning System.

     ``Sec. 2281. Global Positioning System

       ``(a) Sustainment and Operation for Military Purposes.--The 
     Secretary of Defense shall provide for the sustainment of the 
     capabilities of the Global Positioning System (hereinafter in 
     this section referred to as the `GPS'), and the operation of 
     basic GPS services, that are beneficial for the national 
     security interests of the United States. In doing so, the 
     Secretary shall--
       ``(1) develop appropriate measures for preventing hostile 
     use of the GPS so as to make it unnecessary for the Secretary 
     to use the selective availability feature of the system 
     continuously while not hindering the use of the GPS by the 
     United States and its allies for military purposes; and
       ``(2) ensure that United States armed forces have the 
     capability to use the GPS effectively despite hostile 
     attempts to prevent the use of the system by such forces.
       ``(b) Sustainment and Operation for Civilian Purposes.--The 
     Secretary of Defense shall provide for the sustainment and 
     operation of the GPS Standard Positioning Service for 
     peaceful civil, commercial, and scientific uses on a 
     continuous worldwide basis free of direct user fees. In doing 
     so, the Secretary--
       ``(1) shall provide for the sustainment and operation of 
     the GPS Standard Positioning Service in order to meet the 
     performance requirements of the Federal Radionavigation Plan 
     prepared jointly by the Secretary of Defense and the 
     Secretary of Transportation pursuant to subsection (c);
       ``(2) shall coordinate with the Secretary of Transportation 
     regarding the development and implementation by the 
     Government of augmentations to the basic GPS that achieve or 
     enhance uses of the system in support of transportation;
       ``(3) shall coordinate with the Secretary of Commerce, the 
     United States Trade Representative, and other appropriate 
     officials to facilitate the development of new and expanded 
     civil and commercial uses for the GPS;
       ``(4) shall develop measures for preventing hostile use of 
     the GPS in a particular area without hindering peaceful civil 
     use of the system elsewhere; and
       ``(5) may not agree to any restriction on the Global 
     Positioning System proposed by the head of a department or 
     agency of the United States outside the Department of Defense 
     in the exercise of that official's regulatory authority that 
     would adversely affect the military potential of the Global 
     Positioning System.
       ``(c) Federal Radionavigation Plan.--The Secretary of 
     Defense and the Secretary of Transportation shall jointly 
     prepare the Federal Radionavigation Plan. The plan shall be 
     revised and updated not less often than every two years. The 
     plan shall be prepared in accordance with the requirements 
     applicable to such plan as first prepared pursuant to section 
     507 of the International Maritime Satellite 
     Telecommunications Act (47 U.S.C. 756). The plan, and any 
     amendment to the plan, shall be published in the Federal 
     Register.
       ``(d) Biennial Report.--(1) Not later than 30 days after 
     the end of each even-numbered fiscal year, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report on the Global Positioning 
     System. The report shall include a discussion of the 
     following matters:
       ``(A) The operational status of the system.
       ``(B) The capability of the system to satisfy effectively 
     (i) the military requirements for the system that are current 
     as of the date of the report, and (ii) the performance 
     requirements of the Federal Radionavigation Plan.
       ``(C) The most recent determination by the President 
     regarding continued use of the selective availability feature 
     of the system and the expected date of any change or 
     elimination of the use of that feature.
       ``(D) The status of cooperative activities undertaken by 
     the United States with the governments of other countries 
     concerning the capability of the system or any augmentation 
     of the system to satisfy civil, commercial, scientific, and 
     military requirements, including a discussion of the status 
     and results of activities undertaken under any regional 
     international agreement.

[[Page H9155]]

       ``(E) Any progress made toward establishing GPS as an 
     international standard for consistency of navigational 
     service.
       ``(F) Any progress made toward protecting GPS from 
     disruption and interference.
       ``(G) The effects of use of the system on national 
     security, regional security, and the economic competitiveness 
     of United States industry, including the Global Positioning 
     System equipment and service industry and user industries.
       ``(2) In preparing the parts of each such report required 
     under subparagraphs (D), (E), (F), and (G) of paragraph (1), 
     the Secretary of Defense shall consult with the Secretary of 
     State, the Secretary of Commerce, and the Secretary of 
     Transportation.
       ``(e) Definitions.--In this section:
       ``(1) The term `basic GPS services' means the following 
     components of the Global Positioning System that are operated 
     and maintained by the Department of Defense:
       ``(A) The constellation of satellites.
       ``(B) The navigation payloads that produce the Global 
     Positioning System signals.
       ``(C) The ground stations, data links, and associated 
     command and control facilities.
       ``(2) The term `GPS Standard Positioning Service' means the 
     civil and commercial service provided by the basic Global 
     Positioning System as defined in the 1996 Federal 
     Radionavigation Plan (published jointly by the Secretary of 
     Defense and the Secretary of Transportation in July 1997).''.
       (2) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part IV of subtitle A, of such title 
     are amended by inserting after the item relating to chapter 
     134 the following new item:

``136. Provisions Relating to Specific Programs.............2281''.....

     SEC. 1075. PROTECTION OF SAFETY-RELATED INFORMATION 
                   VOLUNTARILY PROVIDED BY AIR CARRIERS.

       (a) Authority To Protect Information.--Section 2640 of 
     title 10, United States Code, is amended--
       (1) by redesignating subsections (h) and (i) as subsections 
     (i) and (j), respectively; and
       (2) by inserting after subsection (g) the following new 
     subsection (h):
       ``(h) Authority to Protect Safety-Related Information 
     Voluntarily Provided by an Air Carrier.--(1) Subject to 
     paragraph (2), the Secretary of Defense may (notwithstanding 
     any other provision of law) withhold from public disclosure 
     safety-related information that is provided to the Secretary 
     voluntarily by an air carrier for the purposes of this 
     section.
       ``(2) Information may be withheld under paragraph (1) from 
     public disclosure only if the Secretary determines that--
       ``(A) the disclosure of the information would inhibit an 
     air carrier from voluntarily providing, in the future, 
     safety-related information for the purposes of this section 
     or for other air safety purposes involving the Department of 
     Defense or another Federal agency; and
       ``(B) the receipt of such information generally enhances 
     the fulfillment of responsibilities under this section or 
     other air safety responsibilities involving the Department of 
     Defense or another Federal agency.
       ``(3) If the Secretary provides to the head of another 
     agency safety-related information described in paragraph (1) 
     with respect to which the Secretary has made a determination 
     described in paragraph (2), the head of that agency shall 
     (notwithstanding any other provision of law) withhold the 
     information from public disclosure unless the disclosure is 
     specifically authorized by the Secretary.''.
       (b) Applicability.--Subsection (h) of section 2640 of title 
     10, United States Code, as added by subsection (a), 
     shall apply with respect to requests for information made 
     on or after the date of the enactment of this Act.

     SEC. 1076. NATIONAL GUARD CHALLENGE PROGRAM TO CREATE 
                   OPPORTUNITIES FOR CIVILIAN YOUTH.

       (a) Program Authority.--Chapter 5 of title 32, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 509. National Guard Challenge Program of opportunities 
       for civilian youth

       ``(a) Program Authority and Purpose.--The Secretary of 
     Defense, acting through the Chief of the National Guard 
     Bureau, may conduct a National Guard civilian youth 
     opportunities program (to be known as the `National Guard 
     Challenge Program') to use the National Guard to provide 
     military-based training, including supervised work experience 
     in community service and conservation projects, to civilian 
     youth who cease to attend secondary school before graduating 
     so as to improve the life skills and employment potential of 
     such youth.
       ``(b) Conduct of the Program.--The Secretary of Defense 
     shall provide for the conduct of the National Guard Challenge 
     Program in such States as the Secretary considers to be 
     appropriate, except that Federal expenditures under the 
     program may not exceed $50,000,000 for any fiscal year.
       ``(c) Program Agreements.--(1) To carry out the National 
     Guard Challenge Program in a State, the Secretary of Defense 
     shall enter into an agreement with the Governor of the State 
     or, in the case of the District of Columbia, with the 
     commanding general of the District of Columbia National 
     Guard, under which the Governor or the commanding general 
     will establish, organize, and administer the National Guard 
     Challenge Program in the State.
       ``(2) The agreement may provide for the Secretary to 
     provide funds to the State for civilian personnel costs 
     attributable to the use of civilian employees of the National 
     Guard in the conduct of the National Guard Challenge Program.
       ``(d) Matching Funds Required.--The amount of assistance 
     provided under this section to a State program of the 
     National Guard Challenge Program may not exceed--
       ``(1) for fiscal year 1998, 75 percent of the costs of 
     operating the State program during that year;
       ``(2) for fiscal year 1999, 70 percent of the costs of 
     operating the State program during that year;
       ``(3) for fiscal year 2000, 65 percent of the costs of 
     operating the State program during that year; and
       ``(4) for fiscal year 2001 and each subsequent fiscal year, 
     60 percent of the costs of operating the State program during 
     that year.
       ``(e) Persons Eligible to Participate in Program.--A school 
     dropout from secondary school shall be eligible to 
     participate in the National Guard Challenge Program. The 
     Secretary of Defense shall prescribe the standards and 
     procedures for selecting participants from among school 
     dropouts.
       ``(f) Authorized Benefits for Participants.--(1) To the 
     extent provided in an agreement entered into in accordance 
     with subsection (c) and subject to the approval of the 
     Secretary of Defense, a person selected for training in the 
     National Guard Challenge Program may receive the following 
     benefits in connection with that training:
       ``(A) Allowances for travel expenses, personal expenses, 
     and other expenses.
       ``(B) Quarters.
       ``(C) Subsistence.
       ``(D) Transportation.
       ``(E) Equipment.
       ``(F) Clothing.
       ``(G) Recreational services and supplies.
       ``(H) Other services.
       ``(I) Subject to paragraph (2), a temporary stipend upon 
     the successful completion of the training, as characterized 
     in accordance with procedures provided in the agreement.
       ``(2) In the case of a person selected for training in the 
     National Guard Challenge Program who afterwards becomes a 
     member of the Civilian Community Corps under subtitle E of 
     title I of the National and Community Service Act of 1990 (42 
     U.S.C. 12611 et seq.), the person may not receive a temporary 
     stipend under paragraph (1)(I) while the person is a member 
     of that Corps. The person may receive the temporary stipend 
     after completing service in the Corps unless the person 
     elects to receive benefits provided under subsection (f) or 
     (g) of section 158 of such Act (42 U.S.C. 12618).
       ``(g) Program Personnel.--(1) Personnel of the National 
     Guard of a State in which the National Guard Challenge 
     Program is conducted may serve on full-time National Guard 
     duty for the purpose of providing command, administrative, 
     training, or supporting services for the program. For the 
     performance of those services, any such personnel may be 
     ordered to duty under section 502(f) of this title for not 
     longer than the period of the program.
       ``(2) A Governor participating in the National Guard 
     Challenge Program and the commanding general of the District 
     of Columbia National Guard (if the District of Columbia 
     National Guard is participating in the program) may procure 
     by contract the temporary full time services of such civilian 
     personnel as may be necessary to augment National Guard 
     personnel in carrying out the National Guard Challenge 
     Program in that State.
       ``(3) Civilian employees of the National Guard performing 
     services for the National Guard Challenge Program and 
     contractor personnel performing such services may be 
     required, when appropriate to achieve the purposes of the 
     program, to be members of the National Guard and to wear the 
     military uniform.
       ``(h) Equipment and Facilities.--(1) Equipment and 
     facilities of the National Guard, including military property 
     of the United States issued to the National Guard, may be 
     used in carrying out the National Guard Challenge Program.
       ``(2) Activities under the National Guard Challenge Program 
     shall be considered noncombat activities of the National 
     Guard for purposes of section 710 of this title.
       ``(i) Status of Participants.--(1) A person receiving 
     training under the National Guard Challenge Program shall be 
     considered an employee of the United States for the purposes 
     of the following provisions of law:
       ``(A) Subchapter I of chapter 81 of title 5 (relating to 
     compensation of Federal employees for work injuries).
       ``(B) Section 1346(b) and chapter 171 of title 28 and any 
     other provision of law relating to the liability of the 
     United States for tortious conduct of employees of the United 
     States.
       ``(2) In the application of the provisions of law referred 
     to in paragraph (1)(A) to a person referred to in paragraph 
     (1)--
       ``(A) the person shall not be considered to be in the 
     performance of duty while the person is not at the assigned 
     location of training or other activity or duty authorized in 
     accordance with a program agreement referred to in subsection 
     (c), except when the person is traveling to or from that 
     location or is on pass from that training or other activity 
     or duty;
       ``(B) the person's monthly rate of pay shall be deemed to 
     be the minimum rate of pay provided for grade GS-2 of the 
     General Schedule under section 5332 of title 5; and
       ``(C) the entitlement of a person to receive compensation 
     for a disability shall begin on the day following the date on 
     which the person's participation in the National Guard 
     Challenge Program is terminated.
       ``(3) A person referred to in paragraph (1) may not be 
     considered an employee of the United States for any purpose 
     other than a purpose set forth in that paragraph.
       ``(j) Supplemental Resources.--To carry out the National 
     Guard Challenge Program in a State, the Governor of the State 
     or, in the case of the District of Columbia, the commanding 
     general of the District of Columbia National

[[Page H9156]]

     Guard may supplement funds made available under the program 
     out of other resources (including gifts) available to the 
     Governor or the commanding general. The Governor or the 
     commanding general may accept, use, and dispose of gifts or 
     donations of money, other property, or services for the 
     National Guard Challenge Program.
       ``(k) Report.--Within 90 days after the end of each fiscal 
     year, the Secretary of Defense shall submit to Congress a 
     report on the design, conduct, and effectiveness of the 
     National Guard Challenge Program during the preceding fiscal 
     year. In preparing the report, the Secretary shall coordinate 
     with the Governor of each State in which the National Guard 
     Challenge Program is carried out and, if the program is 
     carried out in the District of Columbia, with the commanding 
     general of the District of Columbia National Guard.
       ``(l) Definitions.--In this section:
       ``(1) The term `State' includes the Commonwealth of Puerto 
     Rico, the territories, and the District of Columbia.
       ``(2) The term `school dropout' means an individual who is 
     no longer attending any school and who has not received a 
     secondary school diploma or a certificate from a program of 
     equivalency for such a diploma.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``509. National Guard Challenge Program of opportunities for civilian 
              youth.''.

     SEC. 1077. DISQUALIFICATION FROM CERTAIN BURIAL-RELATED 
                   BENEFITS FOR PERSONS CONVICTED OF CAPITAL 
                   CRIMES.

       (a) In General.--(1) Chapter 49 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 985. Persons convicted of capital crimes: denial of 
       certain burial-related benefits

       ``(a) Prohibition of Performance of Military Honors.--The 
     Secretary of a military department and the Secretary of 
     Transportation, with respect to the Coast Guard when it is 
     not operating as a service in the Navy, may not provide 
     military honors at the funeral or burial of a person who 
     has been convicted of a capital offense under Federal or 
     State law for which the person was sentenced to death or 
     life imprisonment without parole.
       ``(b) Disqualification From Burial in Military 
     Cemeteries.--A person convicted of a capital offense under 
     Federal law is not entitled to or eligible for, and may not 
     be provided, burial in--
       ``(1) Arlington National Cemetery;
       ``(2) the Soldiers' and Airmen's National Cemetery; or
       ``(3) any other cemetery administered by the Secretary of a 
     military department or the Secretary of Defense.
       ``(c) Definitions.--In this section:
       ``(1) The term `capital offense' means an offense for which 
     the death penalty may be imposed.
       ``(2) The term `burial' includes inurnment.
       ``(3) The term `State' includes the District of Columbia 
     and any commonwealth or territory of the United States.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``985. Persons convicted of capital crimes: denial of certain burial-
              related benefits.''.
       (b) Applicability.--Section 985 of title 10, United States 
     Code, as added by subsection (a), applies with respect to 
     persons dying after January 1, 1997.

     SEC. 1078. RESTRICTIONS ON THE USE OF HUMAN SUBJECTS FOR 
                   TESTING OF CHEMICAL OR BIOLOGICAL AGENTS.

       (a) Prohibited Activities.--The Secretary of Defense may 
     not conduct (directly or by contract)--
       (1) any test or experiment involving the use of a chemical 
     agent or biological agent on a civilian population; or
       (2) any other testing of a chemical agent or biological 
     agent on human subjects.
       (b) Exceptions.--Subject to subsections (c), (d), and (e), 
     the prohibition in subsection (a) does not apply to a test or 
     experiment carried out for any of the following purposes:
       (1) Any peaceful purpose that is related to a medical, 
     therapeutic, pharmaceutical, agricultural, industrial, or 
     research activity.
       (2) Any purpose that is directly related to protection 
     against toxic chemicals or biological weapons and agents.
       (3) Any law enforcement purpose, including any purpose 
     related to riot control.
       (c) Informed Consent Required.--The Secretary of Defense 
     may conduct a test or experiment described in subsection (b) 
     only if informed consent to the testing was obtained from 
     each human subject in advance of the testing on that subject.
       (d) Prior Notice to Congress.--Not later than 30 days after 
     the date of final approval within the Department of Defense 
     of plans for any experiment or study to be conducted by the 
     Department of Defense (whether directly or under contract) 
     involving the use of human subjects for the testing of a 
     chemical agent or a biological agent, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report setting forth a full 
     accounting of those plans, and the experiment or study may 
     then be conducted only after the end of the 30-day period 
     beginning on the date such report is received by those 
     committees.
       (e) Biological Agent Defined.--In this section, the term 
     ``biological agent'' means any micro-organism (including 
     bacteria, viruses, fungi, rickettsiac, or protozoa), 
     pathogen, or infectious substance, and any naturally 
     occurring, bioengineered, or synthesized component of any 
     such micro-organism, pathogen, or infectious substance, 
     whatever its origin or method of production, that is capable 
     of causing--
       (1) death, disease, or other biological malfunction in a 
     human, an animal, a plant, or another living organism;
       (2) deterioration of food, water, equipment, supplies, or 
     materials of any kind; or
       (3) deleterious alteration of the environment.
       (f) Report and Certification.--Section 1703(b) of the 
     National Defense Authorization Act for Fiscal Year 1994 (50 
     U.S.C. 1523(b)) is amended by adding at the end the following 
     new paragraph:
       ``(9) A description of any program involving the testing of 
     biological or chemical agents on human subjects that was 
     carried out by the Department of Defense during the period 
     covered by the report, together with--
       ``(A) a detailed justification for the testing;
       ``(B) a detailed explanation of the purposes of the 
     testing;
       ``(C) a description of each chemical or biological agent 
     tested; and
       ``(D) the Secretary's certification that informed consent 
     to the testing was obtained from each human subject in 
     advance of the testing on that subject.''.
       (g) Repeal of Superseded Provision of Law.--Section 808 of 
     the Department of Defense Appropriation Authorization Act, 
     1978 (50 U.S.C. 1520), is repealed.

     SEC. 1079. TREATMENT OF MILITARY FLIGHT OPERATIONS.

       No military flight operation (including a military training 
     flight), or designation of airspace for such an operation, 
     may be treated as a transportation program or project for 
     purposes of section 303(c) of title 49, United States Code.

     SEC. 1080. NATURALIZATION OF CERTAIN FOREIGN NATIONALS WHO 
                   SERVE HONORABLY IN THE ARMED FORCES DURING A 
                   PERIOD OF CONFLICT.

       (a) In General.--Section 329(a)(1) of the Immigration and 
     Nationality Act (8 U.S.C. 1440(a)(1)) is amended--
       (1) by inserting ``, reenlistment, extension of 
     enlistment,'' after ``at the time of enlistment''; and
       (2) by inserting ``or on board a public vessel owned or 
     operated by the United States for noncommercial 
     service,'' after ``United States, the Canal Zone, American 
     Samoa, or Swains Island,''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to enlistments, reenlistments, 
     extensions of enlistment, and inductions of persons occurring 
     on or after the date of the enactment of this Act.

     SEC. 1081. APPLICABILITY OF CERTAIN PAY AUTHORITIES TO 
                   MEMBERS OF SPECIFIED INDEPENDENT STUDY 
                   ORGANIZATIONS.

       (a) Applicability of Certain Pay Authorities.--(1) An 
     individual who is a member of a commission or panel specified 
     in subsection (b) and is an annuitant otherwise covered by 
     section 8344 or 8468 of title 5, United States Code, by 
     reason of membership on the commission or panel is not 
     subject to the provisions of that section with respect to 
     such membership.
       (2) An individual who is a member of a commission or panel 
     specified in subsection (b) and is a member or former member 
     of a uniformed service is not subject to the provisions of 
     subsections (b) and (c) of section 5532 of such title with 
     respect to membership on the commission or panel.
       (b) Specified Entities.--Subsection (a) applies--
       (1) effective as of September 23, 1996, to members of the 
     National Defense Panel established by section 924 of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2626); and
       (2) effective as of October 9, 1996, to members of the 
     Commission on Servicemembers and Veterans Transition 
     Assistance established by section 701 of the Veterans' 
     Benefits Improvements Act of 1996 (Public Law 104-275; 110 
     Stat. 3346; 38 U.S.C. 545 note).

     SEC. 1082. DISPLAY OF POW/MIA FLAG.

       (a) Required Display.--The POW/MIA flag shall be displayed 
     at the locations specified in subsection (c) on POW/MIA flag 
     display days. Such display shall serve (1) as the symbol of 
     the Nation's concern and commitment to achieving the fullest 
     possible accounting of Americans who, having been prisoners 
     of war or missing in action, still remain unaccounted for, 
     and (2) as the symbol of the Nation's commitment to achieving 
     the fullest possible accounting for Americans who in the 
     future may become prisoners of war, missing in action, or 
     otherwise unaccounted for as a result of hostile action.
       (b) Days for Flag Display.--(1) For purposes of this 
     section, POW/MIA flag display days are the following:
       (A) Armed Forces Day, the third Saturday in May.
       (B) Memorial Day, the last Monday in May.
       (C) Flag Day, June 14.
       (D) Independence Day, July 4.
       (E) National POW/MIA Recognition Day.
       (F) Veterans Day, November 11.
       (2) In addition to the days specified in paragraph (1), 
     POW/MIA flag display days include--
       (A) in the case of display at medical centers of the 
     Department of Veterans Affairs (required by subsection 
     (c)(7)), any day on which the flag of the United States is 
     displayed; and
       (B) in the case of display at United States Postal Service 
     post offices (required by subsection (c)(8)), the last 
     business day before a day specified in paragraph (1) that in 
     any year is not itself a business day.
       (c) Locations for Flag Display.--The locations for the 
     display of the POW/MIA flag under subsection (a) are the 
     following:

[[Page H9157]]

       (1) The Capitol.
       (2) The White House.
       (3) The Korean War Veterans Memorial and the Vietnam 
     Veterans Memorial.
       (4) Each national cemetery.
       (5) The buildings containing the official office of--
       (A) the Secretary of State;
       (B) the Secretary of Defense;
       (C) the Secretary of Veterans Affairs; and
       (D) the Director of the Selective Service System.
       (6) Each major military installation, as designated by the 
     Secretary of Defense.
       (7) Each medical center of the Department of Veterans 
     Affairs.
       (8) Each United States Postal Service post office.
       (d) Coordination With Other Display Requirement.--Display 
     of the POW/MIA flag at the Capitol pursuant to paragraph (1) 
     of subsection (c) is in addition to the display of that flag 
     in the Rotunda of the Capitol pursuant to Senate Concurrent 
     Resolution 5 of the 101st Congress, agreed to on February 22, 
     1989 (103 Stat. 2533).
       (e) Display To Be in a Manner Visible to the Public.--
     Display of the POW/MIA flag pursuant to this section shall be 
     in a manner designed to ensure visibility to the public.
       (f) Limitation.--This section may not be construed or 
     applied so as to require any employee to report to work 
     solely for the purpose of providing for the display of the 
     POW/MIA flag.
       (g) POW/MIA Flag Defined.--As used in this section, the 
     term ``POW/MIA flag'' means the National League of Families 
     POW/MIA flag recognized officially and designated by section 
     2 of Public Law 101-355 (36 U.S.C. 189).
       (h) Regulations for Implementation.--Not later than 180 
     days after the date of the enactment of this Act, the head of 
     each department, agency, or other establishment responsible 
     for a location specified in subsection (c) (other than the 
     Capitol) shall prescribe such regulations as necessary to 
     carry out this section.
       (i) Procurement and Distribution of Flags.--Not later than 
     30 days after the date of the enactment of this Act, the 
     Administrator of General Services shall procure POW/MIA flags 
     and distribute them as necessary to carry out this section.
       (j) Repeal of Superseded Law.--Section 1084 of Public Law 
     102-190 (36 U.S.C. 189 note) is repealed.

     SEC. 1083. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE 
                   KOREAN CONFLICT.

       (a) Commemorative Program.--The Secretary of Defense may 
     conduct a program to commemorate the 50th anniversary of the 
     Korean conflict. In conducting the commemorative program, the 
     Secretary may coordinate, support, and facilitate other 
     programs and activities of the Federal Government, State and 
     local governments, and other persons in commemoration of the 
     Korean conflict.
       (b) Commemorative Activities.--The commemorative program 
     may include activities and ceremonies--
       (1) to provide the people of the United States with a clear 
     understanding and appreciation of the lessons and history of 
     the Korean conflict;
       (2) to thank and honor veterans of the Korean conflict and 
     their families;
       (3) to pay tribute to the sacrifices and contributions made 
     on the home front by the people of the United States during 
     the Korean conflict;
       (4) to highlight advances in technology, science, and 
     medicine related to military research conducted during the 
     Korean conflict;
       (5) to recognize the contributions and sacrifices made by 
     the allies of the United States in the Korean conflict; and
       (6) to highlight the role of the Armed Forces of the United 
     States, then and now, in maintaining world peace through 
     strength.
       (c) Names and Symbols.--The Secretary of Defense shall have 
     the sole and exclusive right to use the names ``The 
     Department of Defense Korean Conflict Commemoration'', and 
     such seal, emblems, and badges incorporating such name as the 
     Secretary may lawfully adopt. Nothing in this section may be 
     construed to supersede rights that are established or vested 
     before the date of the enactment of this Act.
       (d) Commemorative Account.--(1) There is established in the 
     Treasury an account to be known as the ``Department of 
     Defense Korean Conflict Commemoration Account'', which shall 
     be administered by the Secretary of Defense. There shall be 
     deposited into the account all proceeds derived from the 
     Secretary's use of the exclusive rights described in 
     subsection (c). The Secretary may use funds in the account 
     only for the purpose of conducting the commemorative 
     program.
       (2) Not later than 60 days after completion of all 
     activities and ceremonies conducted as part of the 
     commemorative program, the Secretary shall submit to Congress 
     a report containing an accounting of all of the funds 
     deposited into and expended from the account or otherwise 
     expended under this section, and of any funds remaining in 
     the account. Unobligated funds remaining in the account on 
     that date shall be held in the account until transferred by 
     law.
       (e) Acceptance of Voluntary Services.--(1) Notwithstanding 
     section 1342 of title 31, United States Code, the Secretary 
     of Defense may accept from any person voluntary services to 
     be provided in furtherance of the commemorative program.
       (2) A person providing voluntary services under this 
     subsection shall be considered to be a Federal employee for 
     purposes of chapter 81 of title 5, United States Code, 
     relating to compensation for work-related injuries. The 
     person shall also be considered a special governmental 
     employee for purposes of standards of conduct and sections 
     202, 203, 205, 207, 208, and 209 of title 18, United States 
     Code. A person who is not otherwise employed by the Federal 
     Government shall not be considered to be a Federal employee 
     for any other purpose by reason of the provision of voluntary 
     services under this subsection.
       (3) The Secretary may provide for reimbursement of 
     incidental expenses incurred by a person providing voluntary 
     services under this subsection. The Secretary shall determine 
     which expenses are eligible for reimbursement under this 
     paragraph.
       (f) Limitation on Expenditures.--Total expenditures to 
     carry out the commemorative program may not exceed $100,000.

     SEC. 1084. COMMENDATION OF MEMBERS OF THE ARMED FORCES AND 
                   GOVERNMENT CIVILIAN PERSONNEL WHO SERVED DURING 
                   THE COLD WAR; CERTIFICATE OF RECOGNITION.

       (a) Findings.--The Congress finds the following:
       (1) During the period of the Cold War, from the end of 
     World War II until the collapse of the Soviet Union in 1991, 
     the United States and the Soviet Union engaged in a global 
     military rivalry.
       (2) This rivalry, potentially the most dangerous military 
     confrontation in the history of mankind, has come to a close 
     without a direct superpower military conflict.
       (3) Military and civilian personnel of the Department of 
     Defense, personnel in the intelligence community, members of 
     the foreign service, and other officers and employees of the 
     United States faithfully performed their duties during the 
     Cold War.
       (4) Many such personnel performed their duties while 
     isolated from family and friends and served overseas under 
     frequently arduous conditions in order to protect the United 
     States and achieve a lasting peace.
       (5) The discipline and dedication of those personnel were 
     fundamental to the prevention of a superpower military 
     conflict.
       (b) Congressional Commendation.--The Congress hereby 
     commends the members of the Armed Forces and civilian 
     personnel of the Government who contributed to the historic 
     victory in the Cold War and expresses its gratitude and 
     appreciation for their service and sacrifices of .
       (c) Certificates of Recognition.--The Secretary of Defense 
     shall prepare a certificate recognizing the Cold War service 
     of qualifying members of the Armed Forces and civilian 
     personnel of the Department of Defense and other Government 
     agencies contributing to national security, as determined by 
     the Secretary, and shall provide the certificate to such 
     members and civilian personnel upon request.

     SEC. 1085. SENSE OF CONGRESS ON GRANTING OF STATUTORY FEDERAL 
                   CHARTERS.

       (a) Findings.--Congress finds that the practice of 
     providing by statute Federal charters to certain nonprofit 
     organizations--
       (1) may be perceived as implying a Government imprimatur of 
     approval of those organizations; and
       (2) may mistakenly lead to public perception that the 
     United States ensures the integrity and worthiness of those 
     organizations.
       (b) Sense of Congress.--It is the sense of Congress--
       (1) that because of the perceived implicit Government 
     imprimatur of approval conveyed by enactment of a Federal 
     charter for an organization, such a charter should be granted 
     only in the rarest and most extraordinary cases; and
       (2) that no statutory Federal charter should be enacted 
     after the enactment of this Act unless the charter is 
     approved by Congress upon favorable report by the committees 
     of jurisdiction of the respective Houses.

     SEC. 1086. SENSE OF CONGRESS REGARDING MILITARY VOTING 
                   RIGHTS.

       (a) Findings.--Congress finds that--
       (1) members of the Armed Forces have a fundamental right to 
     vote in Federal, State, and local elections; and
       (2) an extended absense of a member of the Armed Forces 
     from the place of the member's residency or domicile due to 
     military or naval orders is not of itself grounds to consider 
     the member's residency or domicile as lost or changed.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense, in consultation with the Attorney 
     General, should review how best to protect the right of 
     members of the Armed Forces to vote in Federal, State, and 
     local elections while taking into account the right of States 
     to prescribe requirements for voter registration. Such a 
     review should include an assessment of challenges to military 
     voting rights and consideration of possible legislative 
     remedies to ensure that, for purposes of voting in Federal, 
     State, and local elections, a member of the Armed Forces who 
     is absent from a State in compliance with military or naval 
     orders is not, solely by reason of that absence, considered 
     to have lost or changed residency or domicile.

     SEC. 1087. DESIGNATION OF BOB HOPE AS AN HONORARY VETERAN OF 
                   THE ARMED FORCES OF THE UNITED STATES.

       (a) Findings.--Congress makes the following findings:
       (1) In its more than 200 years of existence as a nation, 
     the United States has never conferred on any person the 
     status of being an honorary veteran of the Armed Forces of 
     the United States.
       (2) Status as an honorary veteran of the Armed Forces of 
     the United States is and should remain an extraordinary honor 
     not lightly conferred nor frequently granted.
       (3) The lifetime of accomplishments and service of Leslie 
     Townes (Bob) Hope on behalf of members of the Armed Forces of 
     the United States fully justifies the conferring of that 
     status.
       (4) Bob Hope attempted to enlist in the Armed Forces to 
     serve his country during World War II but was informed that 
     the greatest service he could provide his country was as a 
     civilian entertainer for the troops.

[[Page H9158]]

       (5) During World War II, the Korean Conflict, the Vietnam 
     War, the Persian Gulf War, and the Cold War, Bob Hope 
     travelled to visit and entertain millions of members of the 
     Armed Forces in numerous countries, on ships at sea, and in 
     combat zones ashore.
       (6) Bob Hope has been awarded the Congressional Gold Medal, 
     the Presidential Medal of Freedom, the Distinguished Service 
     Medal of each of the branches of the Armed Forces and more 
     than 100 other citations and awards from national veterans 
     service organizations and civic and humanitarian 
     organizations.
       (7) Bob Hope has given unselfishly of himself for over half 
     a century to be with American service members on foreign 
     shores, working tirelessly to bring a spirit of humor and 
     cheer to millions of service members during their loneliest 
     moments, and has, thereby, extended to them for the American 
     people a touch of home away from home.
       (b) Designation of Bob Hope as Honorary Veteran.--
     Congress--
       (1) extends its gratitude, on behalf of the American 
     people, to Leslie Townes (Bob) Hope, of the State of 
     California, for his lifetime of accomplishments and service 
     on behalf of members of the Armed Forces of the United 
     States; and
       (2) hereby confers upon him the status of being an honorary 
     veteran of the Armed Forces of the United States.

     SEC. 1088. FIVE-YEAR EXTENSION OF AVIATION INSURANCE PROGRAM.

       (a) Extension.--Section 44310 of title 49, United States 
     Code, is amended by striking out ``September 30, 1997'' and 
     inserting in lieu thereof ``September 30, 2002''.
       (b) Effective Date.--This section shall take effect as of 
     September 30, 1997.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL
Sec. 1101. Use of prohibited constraints to manage Department of 
              Defense personnel.
Sec. 1102. Veterans' preference status for certain veterans who served 
              on active duty during the Persian Gulf War.
Sec. 1103. Repeal of deadline for placement consideration of 
              involuntarily separated military reserve technicians.
Sec. 1104. Rate of pay of Department of Defense overseas teachers upon 
              transfer to General Schedule position.
Sec. 1105. Garnishment and involuntary allotment.
Sec. 1106. Extension and revision of voluntary separation incentive pay 
              authority.
Sec. 1107. Use of approved fire-safe accommodations by Government 
              employees on official business.
Sec. 1108. Navy higher education pilot program regarding administration 
              of business relationships between Government and private 
              sector.
Sec. 1109. Authority for Marine Corps University to employ civilian 
              faculty members.

     SEC. 1101. USE OF PROHIBITED CONSTRAINTS TO MANAGE DEPARTMENT 
                   OF DEFENSE PERSONNEL.

       Section 129 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(f)(1) Not later than February 1 of each year, the 
     Secretary of each military department and the head of each 
     Defense Agency shall submit to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives a report on the management of 
     the civilian workforce under the jurisdiction of that 
     official.
       ``(2) Each report of an official under paragraph (1) shall 
     contain the following:
       ``(A) The official's certification (i) that the civilian 
     workforce under the jurisdiction of the official is not 
     subject to any constraint or limitation in terms of man 
     years, end strength, full-time equivalent positions, or 
     maximum number of employees, and (ii) that, during the 12 
     months preceding the date on which the report is due, such 
     workforce has not been subject to any such constraint or 
     limitation.
       ``(B) A description of how the civilian workforce is 
     managed.
       ``(C) A detailed description of the analytical tools used 
     to determine civilian workforce requirements during the 12-
     month period referred to in subparagraph (A).''.

     SEC. 1102. VETERANS' PREFERENCE STATUS FOR CERTAIN VETERANS 
                   WHO SERVED ON ACTIVE DUTY DURING THE PERSIAN 
                   GULF WAR.

       (a) Definition of Veteran for Purposes of Preference 
     Eligible Status.--Section 2108 of title 5, United States 
     Code, is amended--
       (1) in paragraph (1)--
       (A) by striking ``or'' at the end of subparagraph (A);
       (B) by inserting ``or'' at the end of subparagraph (B); and
       (C) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) served on active duty as defined by section 101(21) 
     of title 38 in the armed forces during the period beginning 
     on August 2, 1990, and ending on January 2, 1992;''; and
       (2) in paragraph (3)(B), by inserting ``or (C)'' after 
     ``paragraph (1)(B)''.
       (b) Additional Points.--Section 3309(2) of such title is 
     amended by striking ``2108(3)(A)'' and inserting 
     ``2108(3)(A)-(B)''.
       (c) Technical Amendments.--Section 2108(1)(B) of such title 
     is further amended--
       (1) by striking ``the date of enactment of the Veterans' 
     Education and Employment Assistance Act of 1976,'' and 
     inserting ``October 15, 1976,''; and
       (2) by striking ``511(d) of title 10'' and inserting 
     ``12103(d) of title 10''.

     SEC. 1103. REPEAL OF DEADLINE FOR PLACEMENT CONSIDERATION OF 
                   INVOLUNTARILY SEPARATED MILITARY RESERVE 
                   TECHNICIANS.

       (a) Repeal of Deadline.--Section 3329(b) of title 5, United 
     States Code, is amended by striking out ``not later than 6 
     months after the date of the application''.
       (b) Technical Correction.--Such section is further amended 
     by striking out ``a position described in subsection (c)'' 
     the second place it appears.

     SEC. 1104. RATE OF PAY OF DEPARTMENT OF DEFENSE OVERSEAS 
                   TEACHERS UPON TRANSFER TO GENERAL SCHEDULE 
                   POSITION.

       (a) Prevention of Excessive Increases.--Section 5334(d) of 
     title 5, United States Code, is amended by striking out ``20 
     percent'' and all that follows and inserting in lieu thereof 
     ``an amount determined under regulations which the Secretary 
     of Defense shall prescribe for the determination of the 
     yearly rate of pay of the position. The amount by which a 
     rate of pay is increased under the regulations may not exceed 
     the amount equal to 20 percent of that rate of pay.''.
       (b) Effective Date and Savings Provision.--(1) The 
     amendment made by subsection (a) shall take effect 180 days 
     after the date of the enactment of this Act.
       (2) In the case of a person who is employed in a teaching 
     position referred to in section 5334(d) of title 5, United 
     States Code, on the day before the effective date under 
     paragraph (1), the rate of pay of that person determined 
     under that section (as in effect on that day) may not be 
     reduced by reason of the amendment made by subsection (a) for 
     so long as the person continues to serve in that position or 
     another such position without a break in service of more than 
     three days on or after that day.

     SEC. 1105. GARNISHMENT AND INVOLUNTARY ALLOTMENT.

       Section 5520a of title 5, United States Code, is amended--
       (1) in subsection (j), by striking out paragraph (2) and 
     inserting in lieu thereof the following new paragraph:
       ``(2) Such regulations shall provide that an agency's 
     administrative costs in executing a garnishment action may be 
     added to the garnishment, and that the agency may retain 
     costs recovered as offsetting collections.'';
       (2) in subsection (k)--
       (A) by striking out paragraph (3); and
       (B) by redesignating paragraph (4) as paragraph (3); and
       (3) by striking out subsection (l).

     SEC. 1106. EXTENSION AND REVISION OF VOLUNTARY SEPARATION 
                   INCENTIVE PAY AUTHORITY.

       (a) Remittance to CSRS Fund.--Section 5597 of title 5, 
     United States Code, is amended by adding at the end the 
     following new subsection:
       ``(h)(1)(A) In addition to any other payment that it is 
     required to make under subchapter III of chapter 83 or 
     chapter 84, the Department of Defense shall remit to the 
     Office of Personnel Management an amount equal to 15 percent 
     of the final basic pay of each covered employee.
       ``(B) If the employee is one with respect to whom a 
     remittance would otherwise be required under section 4(a) of 
     the Federal Workforce Restructuring Act of 1994 based on the 
     separation involved, the remittance under this subsection 
     shall be instead of the remittance otherwise required under 
     such section 4(a).
       ``(2) Amounts remitted under paragraph (1) shall be 
     deposited in the Treasury of the United States to the credit 
     of the Civil Service Retirement and Disability Fund.
       ``(3) For the purposes of this subsection--
       ``(A) the term `covered employee' means an employee who is 
     subject to subchapter III of chapter 83 or chapter 84 and to 
     whom a voluntary separation incentive has been paid under 
     this section on the basis of a separation occurring on or 
     after October 1, 1997; and
       ``(B) the term `final basic pay' has the meaning given such 
     term in section 4(a)(2) of the Federal Workforce 
     Restructuring Act of 1994.''.
       (b) Extension of Authority.--(1) Subsection (e) of section 
     5597 of title 5, United States Code, is amended by striking 
     out ``September 30, 1999'' and inserting in lieu thereof 
     ``September 30, 2001''.
       (2) Section 4436(d)(2) of the Defense Conversion, 
     Reinvestment, and Transition Assistance Act of 1992 (5 U.S.C. 
     8348 note) is amended by striking out ``January 1, 2000'' and 
     inserting in lieu thereof ``January 1, 2002''.

     SEC. 1107. USE OF APPROVED FIRE-SAFE ACCOMMODATIONS BY 
                   GOVERNMENT EMPLOYEES ON OFFICIAL BUSINESS.

       (a) Percentage Use Requirement.--Section 5707a of title 5, 
     United States Code, is amended--
       (1) by redesignating subsections (a) through (d) as 
     subsections (b) through (e), respectively; and
       (2) by inserting after the section heading the following 
     new subsection:
       ``(a)(1) For the purpose of making payments under this 
     chapter for lodging expenses incurred in a State, each agency 
     shall ensure that not less than 90 percent of the commercial-
     lodging room nights for employees of that agency for a fiscal 
     year are booked in approved places of public accommodation.
       ``(2) Each agency shall establish explicit procedures to 
     satisfy the percentage requirement of paragraph (1).
       ``(3) An agency shall be considered to be in compliance 
     with the percentage requirement of paragraph (1) until 
     September 30, 2002, and after that date if travel 
     arrangements of the agency, whether made for civilian 
     employees, members of the uniformed services, or foreign 
     service personnel, are made through travel management 
     processes designed to book commercial lodging in approved 
     places of public accommodation, whenever available.''.
       (b) Definitions.--Such section is further amended by adding 
     at the end the following new subsection:

[[Page H9159]]

       ``(f) For purposes of this section:
       ``(1) The term `agency' does not include the government of 
     the District of Columbia.
       ``(2) The term `approved places of public accommodation' 
     means hotels, motels, and other places of public 
     accommodation that are listed by the Director of the Federal 
     Emergency Management Agency as meeting the requirements of 
     the fire prevention and control guidelines described in 
     section 29 of the Federal Fire Prevention and Control Act of 
     1974 (15 U.S.C. 2225).
       ``(3) The term `State' means any State, the District of 
     Columbia, the Commonwealth of Puerto Rico, the Commonwealth 
     of the Northern Mariana Islands, the Trust Territory of the 
     Pacific Islands, the Virgin Islands, Guam, American Samoa, or 
     any other territory or possession of the United States.''.
       (c) Conforming Amendments.--Such section is further 
     amended--
       (1) in subsection (b), as redesignated by subsection 
     (a)(1)--
       (A) by striking out ``places of public accommodation that 
     meet the requirements of the fire prevention and control 
     guidelines described in section 29 of the Federal Fire 
     Prevention and Control Act of 1974'' and inserting in lieu 
     thereof ``approved places of public accommodation''; and
       (B) by striking out ``as defined in section 4 of the 
     Federal Fire Prevention and Control Act of 1974'';
       (2) in subsection (c), as redesignated by subsection 
     (a)(1), by striking out ``does not meet the requirements of 
     the fire prevention and control guidelines described in 
     section 29 of the Federal Fire Prevention and Control Act of 
     1974'' and inserting in lieu thereof ``is not an approved 
     place of public accommodation''; and
       (3) in subsection (e), as redesignated by subsection 
     (a)(1)--
       (A) by striking out ``encourage'' and inserting in lieu 
     thereof ``facilitate the ability of ''; and
       (B) by striking out ``places of public accommodation that 
     meet the requirements of the fire prevention and control 
     guidelines described in section 29 of the Federal Fire 
     Prevention and Control Act of 1974'' and inserting in lieu 
     thereof ``approved places of public accommodation''.
       (d) Report by Federal Emergency Management Agency.--Not 
     later than six months after the date of the enactment of this 
     Act, the Director of the Federal Emergency Management Agency 
     shall submit to Congress a report describing the procedures 
     to be used to ensure that all approved places of public 
     accommodation (within the meaning of section 5707a(f)(2) of 
     title 5, United States Code, as added by subsection (b)) 
     appear on the national master list maintained by the Director 
     under section 28(b) of the Federal Fire Prevention and 
     Control Act of 1974 (15 U.S.C. 2224(b)) of all of the places 
     of public accommodation affecting commerce located in each 
     State that meet the requirements of the fire prevention and 
     control guidelines described in section 29 of such Act (15 
     U.S.C. 2225).
       (e) Report on Implementation.--Not later than one year 
     after the date of the enactment of this Act, the 
     Administrator of General Services shall submit to Congress a 
     report describing the measures that have been taken and will 
     be taken by Federal agencies to comply with the requirement 
     that not less than 90 percent of the commercial-lodging room 
     nights for employees of each Federal agency for a fiscal year 
     are booked in approved places of public accommodation, as 
     specified in section 5707a(a) of title 5, United States Code, 
     as added by subsection (a). Measures to satisfy such 
     requirement may include the use of contract travel agents, 
     automated booking systems, and data developed from travel 
     payment systems. The Administrator shall prepare the report 
     in consultation with the heads of the Federal agencies 
     subject to such requirement.

     SEC. 1108. NAVY HIGHER EDUCATION PILOT PROGRAM REGARDING 
                   ADMINISTRATION OF BUSINESS RELATIONSHIPS 
                   BETWEEN GOVERNMENT AND PRIVATE SECTOR.

       (a) Pilot Project Authorized.--During fiscal years 1998 
     through 2002, the Secretary of the Navy may establish and 
     conduct a pilot program of graduate-level higher education 
     regarding the administration of business relationships 
     between the Government and the private sector.
       (b) Purpose.--The purpose of the pilot program is to make 
     available to employees of the Naval Undersea Warfare Center, 
     employees of the Naval Sea Systems Command, and employees of 
     the Acquisition Center for Excellence of the Navy (upon 
     establishment of such Acquisition Center), a curriculum of 
     graduate-level higher education leading to the award of a 
     graduate degree designed to prepare participants effectively 
     to meet the challenges of administering Government 
     contracting and other business relationships between the 
     United States and private sector businesses in the context of 
     constantly changing or newly emerging industries, 
     technologies, governmental organizations, policies, and 
     procedures (including governmental organizations, policies, 
     and procedures recommended in the National Performance 
     Review).
       (c) Partnership With Institution of Higher Education.--(1) 
     The Secretary of the Navy may enter into an agreement with an 
     institution of higher education to assist the Naval Undersea 
     Warfare Center with the development of the curriculum for the 
     pilot program, to offer courses and provide instruction and 
     materials to participants to the extent provided for in the 
     agreement, to provide such other assistance in support of the 
     program as may be provided for in the agreement, and to award 
     a graduate degree under the program.
       (2) To be eligible to enter into an agreement under 
     paragraph (1), an institution of higher education must have 
     an established program of graduate-level education that is 
     relevant to the purpose of the pilot program.
       (d) Curriculum.--The curriculum offered under the pilot 
     program shall--
       (1) be designed specifically to achieve the purpose of the 
     pilot program; and
       (2) include courses that are--
       (A) typically offered under curricula leading to award of 
     the degree of Masters of Business Administration by 
     institutions of higher education; and
       (B) necessary for meeting educational qualification 
     requirements for certification as an acquisition program 
     manager.
       (e) Distance Learning Option.--The Secretary of the Navy 
     may include as part of the pilot program policies and 
     procedures for offering distance learning instruction by 
     means of telecommunications, correspondence, or other methods 
     for off-site receipt of instruction.
       (f) Report.--Not later than 90 days after the termination 
     of the pilot program, the Secretary of the Navy shall submit 
     to Congress a report containing--
       (1) an assessment by the Secretary of the value of the 
     program for meeting the purpose of the program and the 
     desirability of permanently establishing a similar program 
     for other employees of the Department of Defense; and
       (2) such other information and recommendations regarding 
     the program as the Secretary considers appropriate.
       (g) Limitation on Funding Source.--Any funds required for 
     the pilot program for a fiscal year shall be derived only 
     from the appropriation ``Operation and Maintenance, Navy'' 
     for that fiscal year.

     SEC. 1109. AUTHORITY FOR MARINE CORPS UNIVERSITY TO EMPLOY 
                   CIVILIAN FACULTY MEMBERS.

       (a) Expanded Authority.--Subsections (a) and (c) of section 
     7478 of title 10, United States Code, are amended by striking 
     out ``at the Marine Corps Command and Staff College'' and 
     inserting in lieu thereof ``of the Marine Corps University''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 7478. Naval War College and Marine Corps University: 
       civilian faculty members''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 643 of such title is 
     amended to read as follows:

``7478. Naval War College and Marine Corps University: civilian faculty 
              members.''.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Withdrawal of United States ground forces from Republic of 
              Bosnia and Herzegovina.
Sec. 1204. Secretary of Defense reports on tasks carried out by United 
              States forces.
Sec. 1205. Presidential report on situation in Republic of Bosnia and 
              Herzegovina.
Sec. 1206. Definitions.

       Subtitle B--Export Controls on High Performance Computers

Sec. 1211. Export approvals for high performance computers.
Sec. 1212. Report on exports of high performance computers.
Sec. 1213. Post-shipment verification of export of high performance 
              computers.
Sec. 1214. GAO study on certain computers; end user information 
              assistance.
Sec. 1215. Congressional committees.

                       Subtitle C--Other Matters

Sec. 1221. Defense burdensharing.
Sec. 1222. Temporary use of general purpose vehicles and nonlethal 
              military equipment under acquisition and cross servicing 
              agreements.
Sec. 1223. Sense of Congress and reports regarding financial costs of 
              enlargement of the North Atlantic Treaty Organization.
Sec. 1224. Sense of Congress regarding enlargement of the North 
              Atlantic Treaty Organization.
Sec. 1225. Sense of the Congress relating to level of United States 
              military personnel in the East Asia and Pacific region.
Sec. 1226. Report on future military capabilities and strategy of the 
              People's Republic of China.
Sec. 1227. Sense of Congress on need for Russian openness on the 
              Yamantau Mountain project.
Sec. 1228. Assessment of the Cuban threat to United States national 
              security.
Sec. 1229. Report on Helsinki Joint statement.
Sec. 1230. Commendation of Mexico on free and fair elections.
Sec. 1231. Sense of Congress regarding Cambodia.
Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.
    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

     SEC. 1201. FINDINGS.

       The Congress finds the following:
       (1) United States Armed Forces were deployed to the 
     Republic of Bosnia and Herzegovina as part of the North 
     Atlantic Treaty Organization (NATO) Implementation Force 
     (IFOR) to implement the military aspects of the Dayton Peace 
     Agreement.
       (2) The military aspects of the Dayton Peace Agreement have 
     been successfully implemented to date with the military 
     forces of the warring

[[Page H9160]]

     factions successfully separated and a cessation in the 
     hostilities that resulted in the deaths of hundreds of 
     thousands of Bosnians.
       (3) Implementation of the civil aspects of the Dayton Peace 
     Agreement has lagged far behind the schedule for such 
     implementation envisioned in the Agreement with the result 
     that United States Armed Forces have undertaken a prolonged 
     engagement in the Republic of Bosnia and Herzegovina.
       (4) On December 13, 1995, the President stated in a letter 
     to Congress, ``NATO and U.S. military commanders believe, and 
     I expect, that the military mission can be accomplished in 
     about a year. Twelve months will allow IFOR time to complete 
     the military tasks assigned in the Dayton agreement and to 
     establish a secure environment, in which political and 
     economic reconstruction efforts by the parties and 
     international civilian agencies can take hold. Within one 
     year, we expect that the military provisions of the Dayton 
     agreement will have been carried out, implementation of the 
     civilian aspects and economic reconstruction will have been 
     firmly launched, free elections will have been held under 
     international supervision and a stable military balance will 
     have been established.''
       (5) Notwithstanding a number of assurances relating to the 
     accomplishment of the military mission in the Republic of 
     Bosnia and Herzegovina by December 1996, the President, on 
     November 15, 1996, announced his decision to extend the 
     presence of United States forces in the Republic of Bosnia 
     and Herzegovina to participate in the NATO Stabilization 
     Force (SFOR) until June 1998.
       (6) Despite initial projections by the Department of 
     Defense that the costs of United States operations in the 
     Republic of Bosnia and Herzegovina would total 
     $1,500,000,000, the projected cost of United States 
     operations in the Republic of Bosnia and Herzegovina through 
     June 1998 is estimated to exceed $7,000,000,000.
       (7) The fiscal year 1998 estimate of the Department of 
     Defense for operations in the Republic of Bosnia and 
     Herzegovina assumes that the level of military forces 
     participating in SFOR will be reduced soon after the start of 
     the fiscal year.
       (8) The President and the Secretary of Defense have stated 
     that United States forces are to be withdrawn from the 
     Republic of Bosnia and Herzegovina by the end of June 1998.

     SEC. 1202. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) United States ground combat forces should not 
     participate in a follow-on force in the Republic of Bosnia 
     and Herzegovina after June 1998;
       (2) the European Security and Defense Identity, which, as 
     facilitated by the Combined Joint Task Forces concept, 
     enables the Western European Union, with the consent of the 
     North Atlantic Alliance, to assume political control and 
     strategic direction of NATO assets made available for the 
     Alliance, may be an ideal instrument for a follow-on force 
     for the Republic of Bosnia and Herzegovina;
       (3) a NATO-led force without the participation of United 
     States ground combat forces in the Republic of Bosnia and 
     Herzegovina may be suitable for a follow-on force for the 
     Republic of Bosnia and Herzegovina if the European Security 
     and Defense Identity is not sufficiently developed or is 
     otherwise considered inappropriate for such a mission;
       (4) the United States may decide to provide appropriate 
     support to a Western European Union-led or NATO-led follow-on 
     force, including command and control, intelligence, 
     logistics, and, if necessary, a ready reserve force in the 
     region;
       (5) the President should inform our European NATO allies of 
     this expression of the sense of Congress and should urge them 
     strongly to undertake preparations for a Western European 
     Union-led or NATO-led force as a follow-on force to the NATO-
     led SFOR if needed to maintain peace and stability in the 
     Republic of Bosnia and Herzegovina; and
       (6) the President should consult with the Congress with 
     respect to any support to be provided to a Western European 
     Union-led or NATO-led follow-on force in the Republic of 
     Bosnia and Herzegovina after June 30, 1998.

     SEC. 1203. WITHDRAWAL OF UNITED STATES GROUND FORCES FROM 
                   REPUBLIC OF BOSNIA AND HERZEGOVINA .

       (a) Limitation.--No funds appropriated or otherwise made 
     available for the Department of Defense for fiscal year 1998 
     or any subsequent fiscal year may be used for the deployment 
     of any United States ground combat forces in the Republic of 
     Bosnia and Herzegovina after June 30, 1998, unless the 
     President, not later than May 15, 1998, and after 
     consultation with the bipartisan leadership of the two Houses 
     of Congress, transmits to Congress a certification--
       (1) that the continued presence of United States ground 
     combat forces, after June 30, 1998, in the Republic of Bosnia 
     and Herzegovina is required in order to meet the national 
     security interests of the United States; and
       (2) that after June 30, 1998, it will remain United States 
     policy that United States ground forces will not serve as, or 
     be used as, civil police in the Republic of Bosnia and 
     Herzegovina.
       (b) Report.--The President shall submit with the 
     certification under subsection (a) a report that includes the 
     following:
       (1) The reasons why that presence is in the national 
     security interest of the United States.
       (2) The number of United States military personnel to be 
     deployed in and around the Republic of Bosnia and Herzegovina 
     and other areas of the former Yugoslavia after that date.
       (3) The expected duration of any such deployment.
       (4) The mission and objectives of the United States Armed 
     Forces to be deployed in and around the Republic of Bosnia 
     and Herzegovina and other areas of the former Yugoslavia 
     after June 30, 1998.
       (5) The exit strategy of such forces.
       (6) The incremental costs associated with any such 
     deployment.
       (7) The effect of such deployment on the morale, retention, 
     and effectiveness of United States armed forces.
       (8) A description of the forces from other nations involved 
     in a follow-on mission, shown on a nation-by-nation basis.
       (9) A description of the command and control arrangement 
     established for United States forces involved in a follow-on 
     mission.
       (10) An assessment of the expected threats to United States 
     forces involved in a follow-on mission.
       (11) The plan for rotating units and personnel to and from 
     the Republic of Bosnia and Herzegovina during a follow-on 
     mission, including the level of participation by reserve 
     component units and personnel.
       (12) The mission statement and operational goals of the 
     United States forces involved in a follow-on mission.
       (c) Request for Supplemental Appropriations.--The President 
     shall transmit to Congress with a certification under 
     subsection (a) a supplemental appropriations request for the 
     Department of Defense for such amounts as are necessary for 
     the costs of any continued deployment beyond June 30, 1998.
       (d) Construction With President's Constitutional 
     Authority.--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.
       (e) Construction With Appropriations Provision.--The 
     provisions of this section are enacted, and shall be applied, 
     as supplemental to (and not in lieu of) the provisions of 
     section 8132 of the Department of Defense Appropriations Act, 
     1998 (Public Law 105-56).

     SEC. 1204. SECRETARY OF DEFENSE REPORTS ON TASKS CARRIED OUT 
                   BY UNITED STATES FORCES.

       (a) Requirement for Two Reports.--The Secretary of Defense 
     shall submit to the congressional defense committees--
       (1) not later than December 15, 1997, a report identifying 
     each activity being carried out, as of December 1, 1997, by 
     covered United States forces in the Republic of Bosnia and 
     Herzegovina; and
       (2) not later than April 15, 1998, a report identifying 
     each activity being carried out, as of April 1, 1998, by 
     covered United States forces in the Republic of Bosnia and 
     Herzegovina.
       (b) Covered United States Forces.--For purposes of this 
     section, covered United States forces in the Republic of 
     Bosnia and Herzegovina are United States ground forces in the 
     Republic of Bosnia and Herzegovina that are assigned to the 
     multinational peacekeeping force known as the Stabilization 
     Force (SFOR) or any other multinational peacekeeping force 
     that is the successor to the SFOR.
       (c) Matters To Be Included.--The Secretary shall include in 
     each report under subsection (a), for each activity 
     identified under that subsection, the following:
       (1) The number of United States military personnel involved 
     in the performance of that activity.
       (2) Whether forces assigned to the SFOR (or successor 
     multinational peacekeeping force) from other nations also 
     participated in that activity.
       (3) The justification for using military forces rather than 
     civilian organizations to perform that activity.
       (4) In the case of activities that (as determined by the 
     Secretary) are considered to be supporting tasks, as that 
     term is used in paragraph 3 of Article VI of Annex 1-A to the 
     General Framework Agreement for Peace in Bosnia and 
     Herzegovina, the justification for using military forces.
       (5) The likelihood that each such activity will have to be 
     carried out by United States military forces after June 30, 
     1998.

     SEC. 1205. PRESIDENTIAL REPORT ON SITUATION IN REPUBLIC OF 
                   BOSNIA AND HERZEGOVINA.

       (a) Requirement.--Not later than February 1, 1998, the 
     President shall submit to Congress a report on the political 
     and military conditions in the Republic of Bosnia and 
     Herzegovina. The report shall be submitted in both classified 
     and unclassified form.
       (b) Matters To Be Included.--The report under subsection 
     (a) shall include a discussion of the following:
       (1) An assessment of the progress made in implementing the 
     civil, economic, and political aspects of the Dayton Peace 
     Agreement.
       (2) An identification of the specific steps taken to 
     transfer the United States portion of the peacekeeping 
     mission in the Republic of Bosnia and Herzegovina to forces 
     of the member-states of the Western European Union or to a 
     NATO-led force without the participation of United States 
     ground combat forces in the Republic of Bosnia and 
     Herzegovina.
       (3) A detailed discussion of the proposed role and 
     involvement of the United States in supporting peacekeeping 
     activities in the Republic of Bosnia and Herzegovina 
     following the withdrawal of United States ground combat 
     forces from the Republic of Bosnia and Herzegovina.
       (4) A detailed explanation and timetable for carrying out 
     the commitment to withdraw all United States ground forces 
     from the Republic of Bosnia and Herzegovina by June 30, 1998, 
     including the planned date of commencement and completion of 
     the withdrawal.
       (5) The military and political considerations that will 
     affect the decision to carry out such a transition.
       (6) Any plan to maintain or expand other Bosnia-related 
     operations (such as the operations designated as Operation 
     Deliberate

[[Page H9161]]

     Guard) if tensions in the Republic of Bosnia and Herzegovina 
     remain sufficient to delay reductions of United States 
     military forces participating in the Stabilization Force and 
     the estimated cost associated with each such operation.

     SEC. 1206. DEFINITIONS.

       As used in this subtitle:
       (1) Dayton peace agreement.--The term ``Dayton Peace 
     Agreement'' means the General Framework Agreement for Peace 
     in Bosnia and Herzegovina, initialed by the parties in 
     Dayton, Ohio, on November 21, 1995, and signed in Paris on 
     December 14, 1995.
       (2) Implementation force.--The term ``Implementation 
     Force'' means the NATO-led multinational military force in 
     the Republic of Bosnia and Herzegovina (commonly referred to 
     as ``IFOR''), authorized under the Dayton Peace Agreement.
       (3) Stabilization force.--The term ``Stabilization Force'' 
     means the NATO-led follow-on force to the Implementation 
     Force in the Republic of Bosnia and Herzegovina and other 
     countries in the region (commonly referred to as ``SFOR''), 
     authorized under United Nations Security Council Resolution 
     1088 (December 12, 1996).
       (4) Follow-on mission.--The term ``follow-on mission'' 
     means a mission involving the deployment of ground elements 
     of the United States Armed Forces in the Republic of Bosnia 
     and Herzegovina after June 30, 1998 (other than as described 
     in section 1203(b)).
       (5) NATO.--The term ``NATO'' means the North Atlantic 
     Treaty Organization.
       Subtitle B--Export Controls on High Performance Computers

     SEC. 1211. EXPORT APPROVALS FOR HIGH PERFORMANCE COMPUTERS.

       (a) Prior Approval of Exports and Reexports.--The President 
     shall require that no digital computer with a composite 
     theoretical performance level of more than 2,000 millions of 
     theoretical operations per second (MTOPS) or with such other 
     composite theoretical performance level as may be established 
     subsequently by the President under subsection (d), may be 
     exported or reexported without a license to a country 
     specified in subsection (b) if the Secretary of Commerce, the 
     Secretary of Defense, the Secretary of Energy, the Secretary 
     of State, or the Director of the Arms Control and Disarmament 
     Agency objects, in writing, to such export or reexport. Any 
     person proposing to export or reexport such a digital 
     computer shall so notify the Secretary of Commerce, who, 
     within 24 hours after receiving the notification, shall 
     transmit the notification to the Secretary of Defense, the 
     Secretary of Energy, the Secretary of State, and the Director 
     of the Arms Control and Disarmament Agency.
       (b) Covered Countries.--For purposes of subsection (a), the 
     countries specified in this subsection are the countries 
     listed as ``Computer Tier 3'' eligible countries in section 
     740.7(d) of title 15 of the Code of Federal Regulations, as 
     in effect on June 10, 1997, subject to modification by the 
     President under subsection (e).
       (c) Time Limit.--Written objections under subsection (a) to 
     an export or reexport shall be raised within 10 days after 
     the notification is received under subsection (a). If such a 
     written objection to the export or reexport of a computer is 
     raised, the computer may be exported or reexported only 
     pursuant to a license issued by the Secretary of Commerce 
     under the Export Administration Regulations of the Department 
     of Commerce, without regard to the licensing exceptions 
     otherwise authorized under section 740.7 of title 15 of the 
     Code of Federal Regulations, as in effect on June 10, 1997. 
     If no objection is raised within the 10-day period, the 
     export or reexport is authorized.
       (d) Adjustment of Composite Theoretical Performance.--The 
     President, in consultation with the Secretary of Commerce, 
     the Secretary of Defense, the Secretary of Energy, the 
     Secretary of State, and the Director of the Arms Control and 
     Disarmament Agency, may establish a new composite theoretical 
     performance level for purposes of subsection (a). Such new 
     level shall not take effect until 180 days after the 
     President submits to the congressional committees designated 
     in section 1215 a report setting forth the new composite 
     theoretical performance level and the justification for such 
     new level. Each report shall, at a minimum--
       (1) address the extent to which high performance computers 
     of a composite theoretical level between the level 
     established in subsection (a) or such level as has been 
     previously adjusted pursuant to this section and the new 
     level, are available from other countries;
       (2) address all potential uses of military significance to 
     which high performance computers at the new level could be 
     applied; and
       (3) assess the impact of such uses on the national security 
     interests of the United States.
       (e) Adjustment of Covered Countries.--
       (1) In general.--The President, in consultation with the 
     Secretary of Commerce, the Secretary of Defense, the 
     Secretary of Energy, the Secretary of State, and the Director 
     of the Arms Control and Disarmament Agency, may add a country 
     to or remove a country from the list of covered countries in 
     subsection (b), except that a country may be removed from the 
     list only in accordance with paragraph (2).
       (2) Deletions from list of covered countries.--The removal 
     of a country from the list of covered countries under 
     subsection (b) shall not take effect until 120 days after the 
     President submits to the congressional committees designated 
     in section 1215 a report setting forth the justification for 
     the deletion.
       (3) Excluded countries.--A country may not be removed from 
     the list of covered countries under subsection (b) if--
       (A) the country is a ``nuclear-weapon state'' (as defined 
     by Article IX of the Treaty on the Non-Proliferation of 
     Nuclear Weapons) and the country is not a member of the North 
     Atlantic Treaty Organization; or
       (B) the country is not a signatory of the Treaty on the 
     Non-Proliferation of Nuclear Weapons and the country is 
     listed on Annex 2 to the Comprehensive Nuclear Test-Ban 
     Treaty.
       (f) Classification.--Each report under subsections (d) and 
     (e) shall be submitted in an unclassified form and may, if 
     necessary, have a classified supplement.

     SEC. 1212. REPORT ON EXPORTS OF HIGH PERFORMANCE COMPUTERS.

       (a) Report.--Not later than 60 days after the date of the 
     enactment of this Act, the President shall provide to the 
     congressional committees specified in section 1215 a report 
     identifying all exports of digital computers with a composite 
     theoretical performance of more than 2,000 millions of 
     theoretical operations per second (MTOPS) to all countries 
     since January 25, 1996. For each export, the report shall 
     identify--
       (1) whether an export license was applied for and whether 
     one was granted;
       (2) the date of the transfer of the computer;
       (3) the United States manufacturer and exporter of the 
     computer;
       (4) the MTOPS level of the computer; and
       (5) the recipient country and end user.
       (b) Additional Information on Exports to Certain 
     Countries.--In the case of exports to countries specified in 
     subsection (c), the report under subsection (a) shall 
     identify the intended end use for the exported computer and 
     the assessment by the executive branch of whether the end 
     user is a military end user or an end user involved in 
     activities relating to nuclear, chemical, or biological 
     weapons or missile technology. Information provided under 
     this subsection may be submitted in classified form if 
     necessary.
       (c) Covered Countries.--For purposes of subsection (b), the 
     countries specified in this subsection are--
       (1) the countries listed as ``Computer Tier 3'' eligible 
     countries in section 740.7(d) of title 15 of the Code of 
     Federal Regulations, as in effect on June 10, 1997; and
       (2) the countries listed in section 740.7(e) of title 15 of 
     the Code of Federal Regulations, as in effect on June 10, 
     1997.

     SEC. 1213. POST-SHIPMENT VERIFICATION OF EXPORT OF HIGH 
                   PERFORMANCE COMPUTERS.

       (a) Required Post-Shipment Verification.--The Secretary of 
     Commerce shall conduct post-shipment verification of each 
     digital computer with a composite theoretical performance of 
     more than 2,000 millions of theoretical operations per second 
     (MTOPS) that is exported from the United States, on or after 
     the date of the enactment of this Act, to a country specified 
     in subsection (b).
       (b) Covered Countries.--For purposes of subsection (a), the 
     countries specified in this subsection are the countries 
     listed as ``Computer Tier 3'' eligible countries in section 
     740.7 of title 15 of the Code of Federal Regulations, as in 
     effect on June 10, 1997, subject to modification by the 
     President under section 1211(e).
       (c) Annual Report.--The Secretary of Commerce shall submit 
     to the congressional committees specified in section 1215 an 
     annual report on the results of post-shipment verifications 
     conducted under this section during the preceding year. Each 
     such report shall include a list of all such items exported 
     from the United States to such countries during the previous 
     year and, with respect to each such export, the following:
       (1) The destination country.
       (2) The date of export.
       (3) The intended end use and intended end user.
       (4) The results of the post-shipment verification.
       (d) Explanation When Verification Not Conducted.--If a 
     post-shipment verification has not been conducted in 
     accordance with subsection (a) with respect to any such 
     export during the period covered by a report, the Secretary 
     shall include in the report for that period a detailed 
     explanation of the reasons why such a post-shipment 
     verification was not conducted.

     SEC. 1214. GAO STUDY ON CERTAIN COMPUTERS; END USER 
                   INFORMATION ASSISTANCE.

       (a) In General.--The Comptroller General of the United 
     States shall submit to the congressional committees specified 
     in section 1215 a study of the national security risks 
     relating to the sale of computers with a composite 
     theoretical performance of between 2,000 and 7,000 millions 
     of theoretical operations per second (MTOPS) to end users in 
     countries specified in subsection (c). The study shall also 
     analyze any foreign availability of computers described in 
     the preceding sentence and the impact of such sales on United 
     States exporters.
       (b) End User Information Assistance to Exporters.--The 
     Secretary of Commerce shall establish a procedure by which 
     exporters may seek information on questionable end users in 
     countries specified in subsection (c) who are seeking to 
     obtain computers described in subsection (a).
       (c) Covered Countries.--For purposes of subsections (a) and 
     (b), the countries specified in this subsection are the 
     countries listed as ``Computer Tier 3'' eligible countries in 
     section 740.7(d) of title 15 of the Code of Federal 
     Regulations, as in effect on June 10, 1997.

     SEC. 1215. CONGRESSIONAL COMMITTEES.

       For purposes of sections 1211(d), 1212(a), 1213(c), and 
     1214(a) the congressional committees specified in those 
     sections are the following:
       (1) The Committee on Banking, Housing, and Urban Affairs 
     and the Committee on Armed Services of the Senate.
       (2) The Committee on International Relations and the 
     Committee on National Security of the House of 
     Representatives.
                       Subtitle C--Other Matters

     SEC. 1221. DEFENSE BURDENSHARING.

       (a) Efforts To Increase Allied Burdensharing.--The 
     President shall seek to

[[Page H9162]]

     have each nation that has cooperative military relations with 
     the United States (including security agreements, basing 
     arrangements, or mutual participation in multinational 
     military organizations or operations) take one or more of the 
     following actions:
       (1) For any nation in which United States military 
     personnel are assigned to permanent duty ashore, increase its 
     financial contributions to the payment of the nonpersonnel 
     costs incurred by the United States Government for stationing 
     United States military personnel in that nation, with a goal 
     of achieving by September 30, 2000, 75 percent of such costs. 
     An increase in financial contributions by any nation under 
     this paragraph may include the elimination of taxes, fees, or 
     other charges levied on United States military personnel, 
     equipment, or facilities stationed in that nation.
       (2) Increase its annual budgetary outlays for national 
     defense as a percentage of its gross domestic product by 10 
     percent or at least to a level commensurate that of the 
     United States by September 30, 1998.
       (3) Increase its annual budgetary outlays for foreign 
     assistance (to promote democratization, economic 
     stabilization, transparency arrangements, defense economic 
     conversion, respect for the rule of law, and internationally 
     recognized human rights) by 10 percent or at least to a level 
     commensurate to that of the United States by September 30, 
     1998.
       (4) Increase the amount of military assets (including 
     personnel, equipment, logistics, support and other resources) 
     that it contributes, or would be prepared to contribute, to 
     multinational military activities worldwide.
       (b) Authorities To Encourage Actions by United States 
     Allies.--In seeking the actions described in subsection (a) 
     with respect to any nation, or in response to a failure by 
     any nation to undertake one or more of such actions, the 
     President may take any of the following measures to the 
     extent otherwise authorized by law:
       (1) Reduce the end strength level of members of the Armed 
     Forces assigned to permanent duty ashore in that nation.
       (2) Impose on that nation fees or other charges similar to 
     those that such nation imposes on United States forces 
     stationed in that nation.
       (3) Reduce (through rescission, impoundment, or other 
     appropriate procedures as authorized by law) the amount the 
     United States contributes to the NATO Civil Budget, Military 
     Budget, or Security Investment Program.
       (4) Suspend, modify, or terminate any bilateral security 
     agreement the United States has with that nation, consistent 
     with the terms of such agreement.
       (5) Reduce (through rescission, impoundment or other 
     appropriate procedures as authorized by law) any United 
     States bilateral assistance appropriated for that nation.
       (6) Take any other action the President determines to be 
     appropriate as authorized by law.
       (c) Report on Progress in Increasing Allied 
     Burdensharing.--Not later than March 1, 1998, the Secretary 
     of Defense shall submit to Congress a report on--
       (1) steps taken by other nations to complete the actions 
     described in subsection (a);
       (2) all measures taken by the President, including those 
     authorized in subsection (b), to achieve the actions 
     described in subsection (a);
       (3) the difference between the amount allocated by other 
     nations for each of the actions described in subsection (a) 
     during the period beginning on March 1, 1996, and ending on 
     February 28, 1997, and during the period beginning on 
     March 1, 1997, and ending on February 28, 1998; and
       (4) the budgetary savings to the United States that are 
     expected to accrue as a result of the steps described under 
     paragraph (1).
       (d) Report on National Security Bases for Forward 
     Deployment and Burdensharing Relationships.--(1) In order to 
     ensure the best allocation of budgetary resources, the 
     President shall undertake a review of the status of elements 
     of the United States Armed Forces that are permanently 
     stationed outside the United States. The review shall include 
     an assessment of the following:
       (A) The alliance requirements that are to be found in 
     agreements between the United States and other countries.
       (B) The national security interests that support 
     permanently stationing elements of the United States Armed 
     Forces outside the United States.
       (C) The stationing costs associated with the forward 
     deployment of elements of the United States Armed Forces.
       (D) The alternatives available to forward deployment (such 
     as material prepositioning, enhanced airlift and sealift, or 
     joint training operations) to meet such alliance requirements 
     or national security interests, with such alternatives 
     identified and described in detail.
       (E) The costs and force structure configurations associated 
     with such alternatives to forward deployment.
       (F) The financial contributions that allies of the United 
     States make to common defense efforts (to promote 
     democratization, economic stabilization, transparency 
     arrangements, defense economic conversion, respect for the 
     rule of law, and internationally recognized human rights).
       (G) The contributions that allies of the United States make 
     to meeting the stationing costs associated with the forward 
     deployment of elements of the United States Armed Forces.
       (H) The annual expenditures of the United States and its 
     allies on national defense, and the relative percentages of 
     each nation's gross domestic product constituted by those 
     expenditures.
       (2) The President shall submit to Congress a report on the 
     review under paragraph (1). The report shall be submitted not 
     later than March 1, 1998, in classified and unclassified 
     form.

     SEC. 1222. TEMPORARY USE OF GENERAL PURPOSE VEHICLES AND 
                   NONLETHAL MILITARY EQUIPMENT UNDER ACQUISITION 
                   AND CROSS SERVICING AGREEMENTS.

       Section 2350(1) of title 10, United States Code, is amended 
     by striking out ``other items'' in the second sentence and 
     all that follows through ``United States Munitions List'' and 
     inserting in lieu thereof ``other nonlethal items of military 
     equipment which are not designated as significant military 
     equipment on the United States Munitions List promulgated''.

     SEC. 1223. SENSE OF CONGRESS AND REPORTS REGARDING FINANCIAL 
                   COSTS OF ENLARGEMENT OF THE NORTH ATLANTIC 
                   TREATY ORGANIZATION.

       (a) Findings.--Congress finds the following:
       (1) In a report to Congress in February 1997 on the 
     rationale, benefits, costs, and implications of North 
     Atlantic Treaty Organization enlargement the Secretary of 
     Defense estimated that the financial cost to the United 
     States of such enlargement will be modest, totaling between 
     $2,000,000,000 and $2,600,000,000 for the period from 1997 
     through 2009.
       (2) A study by the RAND Corporation published in 1996 
     calculated that the total financial cost to the United States 
     of such enlargement will be between $5,000,000,000 and 
     $6,000,000,000 over the same period.
       (3) A March 1996 report by the Congressional Budget Office 
     on the financial costs of enlarging the North Atlantic Treaty 
     Organization alliance estimated the United States share of 
     alliance enlargement costs to be between $4,800,000,000 and 
     $18,900,000,000 through 2010, depending upon political 
     developments in Europe.
       (4) An August 1997 report by the General Accounting Office 
     reviewing the financial cost estimates of the Secretary of 
     Defense concluded that North Atlantic Treaty Organization 
     enlargement could entail additional costs beyond those 
     included in the Secretary's estimate and questioned the 
     validity of the Secretary's estimate due to the lack of 
     supporting cost documentation and the inclusion of cost 
     elements not related to NATO enlargement.
       (5) The North Atlantic Alliance is scheduled to complete 
     its analysis of the military requirements for the integration 
     of Poland, the Czech Republic, and Hungary into the Alliance 
     in December 1997.
       (6) The North Atlantic Alliance is also scheduled to 
     complete in December 1997 its financial cost estimate of the 
     military requirements related to the integration of those 
     nations.
       (b) Sense of Congress.--It is the sense of Congress that 
     the analysis of the North Atlantic Alliance of the military 
     requirements relating to NATO enlargement and of the 
     financial costs to the Alliance of NATO enlargement will be 
     one of the major factors in the consideration by the Senate 
     of the ratification of instruments to approve the admission 
     of new member nations to the Alliance and by Congress for the 
     authorization and appropriation of the funding for the costs 
     associated with such enlargement.
       (c) Report Assessing NATO Cost Analysis.--Not later than 
     March 31, 1998, the Secretary of Defense shall submit to 
     Congress a report providing--
       (1) an assessment of the analysis by the North Atlantic 
     Alliance of the military requirements related to NATO 
     enlargement and of the estimate of the financial costs to the 
     NATO Alliance for the integration of Poland, the Czech 
     Republic, and Hungary into the Alliance;
       (2) a description of the analytical means used to determine 
     such requirements and costs; and
       (3) a general assessment of the additional military 
     requirements and costs that would result from a significantly 
     increased threat.
       (b) Report on Department of Defense Costs.--(1) The 
     Secretary of Defense shall submit to Congress, in conjunction 
     with the submission of the President's budget for fiscal year 
     1999, a report on Department of Defense costs for NATO 
     enlargement. The report shall include a detailed estimate of 
     such costs for fiscal year 1998 that identifies all 
     appropriations, by budget activity, for the military 
     departments and other elements of the Department of Defense 
     to support NATO enlargement.
       (2) The Secretary of Defense shall include in the budget 
     justification materials submitted to Congress by the 
     Secretary in support of the budget of Department of Defense 
     for fiscal year 1999 complete and detailed descriptions and 
     estimates of the amounts provided in that budget for the 
     costs of NATO enlargement.

     SEC. 1224. SENSE OF CONGRESS REGARDING ENLARGEMENT OF THE 
                   NORTH ATLANTIC TREATY ORGANIZATION.

       (a) Findings.--Congress makes the following findings:
       (1) The North Atlantic Treaty Organization (NATO) met on 
     July 8 and 9, 1997, in Madrid, Spain, and issued invitations 
     to the Czech Republic, Hungary, and Poland to begin accession 
     talks to join NATO.
       (2) Congress has expressed its support for the process of 
     NATO enlargement by approving the NATO Enlargement 
     Facilitation Act of 1996 (title VI of the matter enacted in 
     section 101(c) of division A of Public Law 104-208; 22 U.S.C. 
     1928 note).
       (3) The United States has supported the position that the 
     process of enlarging NATO will continue after the first round 
     of invitations in July 1997.
       (4) Romania and Slovenia are to be commended for their 
     progress toward political and economic reform and appear to 
     be striving to meet the guidelines for prospective 
     membership in NATO.
       (5) In furthering the purpose and objective of NATO in 
     promoting stability and well-being in the North Atlantic 
     area, NATO should invite Romania and Slovenia to accession 
     negotiations to become NATO members as expeditiously as

[[Page H9163]]

     possible upon the satisfaction of all relevant membership 
     criteria and consistent with NATO security objectives.
       (b) Sense of Congress.--It is the sense of Congress that 
     North Atlantic Treaty Organization should be commended--
       (1) for having committed to review the process of enlarging 
     the Organization in 1999; and
       (2) for singling out the positive developments toward 
     democracy and rule of law in Romania and Slovenia.

     SEC. 1225. SENSE OF CONGRESS RELATING TO LEVEL OF UNITED 
                   STATES MILITARY PERSONNEL IN THE EAST ASIA AND 
                   PACIFIC REGION.

       (a) Findings.--Congress finds the following:
       (1) The stability of the Asia-Pacific region is a matter of 
     vital national interest affecting the well-being of all 
     Americans.
       (2) The nations of the Pacific Rim collectively represent 
     the United States largest trading partner and are expected to 
     account for almost one-third of the world's economic activity 
     by the start of the next century.
       (3) The increased reliance by the United States on trade 
     and Middle East oil sources has reinforced United States 
     security interests in the Southeast Asia shipping lanes 
     through the South China Sea and the key straits of Malacca, 
     Sunda, Lombok, and Makassar.
       (4) The South China Sea is an important area for United 
     States Navy ships passing from the Pacific to the Indian 
     Ocean and the Persian Gulf.
       (5) Maintaining freedom of navigation in the South China 
     Sea is an important interest of the United States.
       (6) The threats of proliferation of weapons of mass 
     destruction, the emerging nationalism amidst long-standing 
     ethnic and national rivalries, and the unresolved territorial 
     disputes combine to create a political landscape of potential 
     instability and conflict in this region that could jeopardize 
     the interests of the United States and the safety of United 
     States nationals.
       (7) A critical component of the East Asia strategy of the 
     United States is maintaining forward deployed forces in Asia 
     to ensure broad regional stability, to help to deter 
     aggression, to lessen the pressure for arms races, and to 
     contribute to the political and economic advances of the 
     region from which the United States benefits.
       (8) The forward presence of the United States in Northeast 
     Asia enables the United States to respond to regional 
     contingencies, to protect sea lines of communication, to 
     sustain influence, and to support operations as distant as 
     operations in the Persian Gulf.
       (9) The military forces of the United States serve to 
     prevent the political or economic control of the Asia-Pacific 
     region by a rival, hostile power or coalition of such powers, 
     thus preventing any such group from obtaining control over 
     the vast resources, enormous wealth, and advanced technology 
     of the region.
       (10) Allies of the United States in the region can base 
     their defense planning on a reliable American security 
     commitment, a reduction of which could stimulate an arms 
     buildup in the region.
       (11) The Joint Announcement of the United States-Japan 
     Security Consultative Committee of December 1996, 
     acknowledged that ``the forward presence of U.S. forces 
     continues to be an essential element for pursuing our common 
     security objectives''.
       (12) The United States and Japan signed the United States-
     Japan Security Declaration in April 1996, in which the United 
     States reaffirmed its commitment to maintain this level of 
     100,000 United States military personnel in the region.
       (13) The United States military presence is recognized by 
     the nations of the region as serving stability and enabling 
     United States engagement.
       (14) The nations of East Asia and the Pacific consider the 
     commitment of the forces of the United States to be so vital 
     to their future that they scrutinize actions of the United 
     States for any sign of weakened commitment to the security of 
     the region.
       (15) The reduction of forward-based military forces could 
     negatively affect the ability of the United States to 
     contribute to the maintenance of peace and stability of the 
     Asia and Pacific region.
       (16) Recognizing that while the United States must consider 
     the overall capabilities of its forces in its decisions to 
     deploy troops, nevertheless any reduction in the number of 
     forward-based troops may reduce the perception of American 
     capability and commitment in the region that cannot be 
     completely offset by modernization of the remaining forces.
       (17) During time of crisis, deployment of forces to East 
     Asia, even though such forces were previously removed from 
     the area, might be deemed to be an act of provocation that 
     could be used as a pretext by a hostile power for armed 
     aggression within the region, and the existence of that 
     possibility might hinder such a deployment.
       (18) Proposals to reduce the forward presence of the United 
     States in the East Asia region or subordinate security 
     interests to United States domestic budgetary concerns can 
     erode the perception of the commitment of the United States 
     to its alliances and interests in the region.
       (b) Sense of Congress.--It is the sense of Congress that 
     the United States should maintain at least approximately 
     100,000 United States military personnel in the East Asia and 
     Pacific region until such time as there is a peaceful and 
     permanent resolution to the major security and political 
     conflicts in the region.

     SEC. 1226. REPORT ON FUTURE MILITARY CAPABILITIES AND 
                   STRATEGY OF THE PEOPLE'S REPUBLIC OF CHINA.

       (a) Report.--The Secretary of Defense shall prepare a 
     report, in both classified and unclassified form, on the 
     pattern of military modernization of the People's Republic of 
     China. The report shall address the probable course of 
     military-technological development in the People's Liberation 
     Army and the development of Chinese security strategy and 
     military strategy, and of military organizations and 
     operational concepts, through 2015.
       (b) Matters To Be Included.--The report shall include 
     analyses and forecasts of the following:
       (1) The goals of Chinese security strategy and military 
     strategy.
       (2) Trends in Chinese strategy regarding the political 
     goals of the People's Republic of China in the Asia-Pacific 
     region and its political and military presence in other 
     regions of the world, including Central Asia, Southwest Asia, 
     Europe, and Latin America.
       (3) Developments in Chinese military doctrine, focusing on 
     (but not limited to) efforts to exploit an emerging 
     Revolution in Military Affairs or to conduct preemptive 
     strikes.
       (4) Efforts by the People's Republic of China to enhance 
     its capabilities in the area of nuclear weapons development.
       (5) Efforts by the People's Republic of China to develop 
     long-range air-to-air or air defense missiles that would 
     provide the capability to target special support aircraft 
     such as Airborne Warning and Control System (AWACS) aircraft, 
     Joint Surveillance and Target Attack Radar System (JSTARS) 
     aircraft, or other command and control, intelligence, 
     airborne early warning, or electronic warfare aircraft.
       (6) Efforts by the People's Republic of China to develop a 
     capability to conduct ``information warfare'' at the 
     strategic, operational, and tactical levels of war.
       (7) Development by the People's Republic of China of 
     capabilities in the area of electronic warfare.
       (8) Efforts by the People's Republic of China to develop a 
     capability to establish control of space or to deny access 
     and use of military and commercial space systems in times of 
     crisis or war, including programs to place weapons in space 
     or to develop earth-based weapons capable of attacking space-
     based systems.
       (9) Trends that would lead the People's Republic of China 
     toward the development of advanced intelligence, 
     surveillance, and reconnaissance capabilities, including 
     gaining access to commercial or third-party systems with 
     military significance.
       (10) Efforts by the People's Republic of China to develop 
     highly accurate and stealthy ballistic and cruise missiles, 
     including sea-launched cruise missiles, particularly in 
     numbers sufficient to conduct attacks capable of overwhelming 
     projected defense capabilities in the Asia-Pacific region.
       (11) Development by the People's Republic of China of 
     command and control networks, particularly those capable of 
     battle management of long-range precision strikes.
       (12) Efforts by the People's Republic of China in the area 
     of telecommunications, including common channel signaling and 
     synchronous digital hierarchy technologies.
       (13) Development by People's Republic of China of advanced 
     aerospace technologies with military applications (including 
     gas turbine ``hot section'' technologies).
       (14) Programs of the People's Republic of China involving 
     unmanned aerial vehicles, particularly those with extended 
     ranges or loitering times or potential strike capabilities.
       (15) Exploitation by the People's Republic of China for 
     military purposes of the Global Positioning System or other 
     similar systems (including commercial land surveillance 
     satellites), with such analysis and forecasts focusing 
     particularly on indications of an attempt to increase the 
     accuracy of weapons or situational awareness of operating 
     forces.
       (16) Development by the People's Republic of China of 
     capabilities for denial of sea control, including such 
     systems as advanced sea mines, improved submarine 
     capabilities, or land-based sea-denial systems.
       (17) Efforts by the People's Republic of China to develop 
     its anti-submarine warfare capabilities.
       (18) Continued development by the People's Republic of 
     China of follow-on forces, particularly forces capable of 
     rapid air or amphibious assault.
       (19) Efforts by the People's Republic of China to enhance 
     its capabilities in such additional areas of strategic 
     concern as the Secretary identifies.
       (c) Analysis of Implications of Sales of Products and 
     Technologies to Entities in China.--The report under 
     subsection (a) shall include, with respect to each area for 
     analyses and forecasts specified in subsection (b)--
       (1) an assessment of the military effects of sales of 
     United States and foreign products and technologies to 
     entities in the People's Republic of China; and
       (2) the potential threat of developments related to such 
     effects to United States strategic interests.
       (d) Submission of Report.--The report shall be submitted to 
     Congress not later than March 15, 1998.

     SEC. 1227. SENSE OF CONGRESS ON NEED FOR RUSSIAN OPENNESS ON 
                   THE YAMANTAU MOUNTAIN PROJECT.

       (a) Findings.--Congress finds as follows:
       (1) The United States and Russia have been working since 
     the end of the Cold War to achieve a strategic relationship 
     based on cooperation and openness between the two nations.
       (2) This effort to establish a new strategic relationship 
     between the two nations has resulted in the conclusion or 
     agreement in principle on a number of far-reaching 
     agreements, including START I, II, and III, a revision in the 
     Conventional Forces in Europe Treaty, and a series of other 
     agreements (such as the Comprehensive Test Ban Treaty and the 
     Chemical Weapons

[[Page H9164]]

     Convention), designed to further reduce bilateral threats and 
     limit the proliferation of weapons of mass destruction.
       (3) These far-reaching agreements were based on the 
     understanding between the United States and Russia that there 
     would be a good faith effort on both sides to comply with the 
     letter and spirit of the agreements.
       (4) Reports indicate that Russia has been pursuing 
     construction of a massive underground facility of unknown 
     purpose at Yamantau Mountain and the city of Mezhgorye 
     (formerly the settlements of Beloretsk-15 and Beloretsk-16) 
     that is designed to survive a nuclear war and appears to 
     exceed reasonable defense requirements.
       (5) The Yamantau Mountain project does not appear to be 
     consistent with the lowering of strategic threats, openness, 
     and cooperation that is the basis of the post-Cold War 
     strategic partnership between the United States and Russia.
       (6) The United States has allowed senior Russian military 
     and government officials to have access to key strategic 
     facilities of the United States by providing tours of the 
     North American Air Defense (NORAD) command at Cheyenne 
     Mountain and the United States Strategic Command (STRATCOM) 
     headquarters in Omaha, Nebraska, among other sites, and by 
     providing extensive briefings on the operations of those 
     facilities.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Russian government--
       (1) should provide to the United States Government a 
     written explanation with sufficient detail (including 
     drawings and diagrams) of the purpose and operational concept 
     of the completed and planned facilities at Yamantau Mountain 
     to support a high confidence judgment by the United States 
     that the design of the Yamantau facility is consistent with 
     official Russian government explanations; and
       (2) should allow a United States delegation, to include 
     officials of the executive branch and Members of Congress, to 
     have access to the Yamantau Mountain project and buildings 
     and facilities surrounding the project.

     SEC. 1228. ASSESSMENT OF THE CUBAN THREAT TO UNITED STATES 
                   NATIONAL SECURITY.

       (a) Findings.--Congress makes the following findings:
       (1) Cuba has maintained a hostile policy in its relations 
     with the United States for over 35 years.
       (2) The United States, as a sovereign nation, must be able 
     to respond to any Cuban provocation and defend the people and 
     territory of the United States against any attack.
       (3) In 1994, the Government of Cuba callously encouraged a 
     massive exodus of Cubans, by boat and raft, toward the United 
     States during which countless numbers of those Cubans lost 
     their lives on the high seas.
       (4) The humanitarian response of the United States to 
     rescue, shelter, and provide emergency care to those Cubans, 
     together with the actions taken to absorb some 30,000 of 
     those Cubans into the United States, required significant 
     efforts and the expenditure of hundreds of millions of 
     dollars for the costs incurred by the United States and State 
     and local governments in connection with those efforts.
       (5) On February 24, 1996, Cuban MiG aircraft attacked and 
     destroyed, in international airspace, two unarmed civilian 
     aircraft flying from the United States, and the four persons 
     in those unarmed civilian aircraft were killed.
       (6) Since that attack, the Cuban government has issued no 
     apology for the attack, nor has it indicated any intention to 
     conform its conduct to international law that is applicable 
     to civilian aircraft operating in international airspace.
       (b) Review and Assessment.--The Secretary of Defense shall 
     carry out a comprehensive review and assessment of--
       (1) Cuban military capabilities; and
       (2) the threats to the national security of the United 
     States that may be posed by Cuba, including--
       (A) such unconventional threats as (i) encouragement of 
     massive and dangerous migration, and (ii) attacks on citizens 
     and residents of the United States while they are engaged in 
     peaceful protest in international waters or airspace;
       (B) the potential for development and delivery of chemical 
     or biological weapons; and
       (C) the potential for internal strife in Cuba that could 
     involve citizens or residents of the United States or the 
     Armed Forces of the United States.
       (c) Report.--Not later than March 31, 1998, the Secretary 
     of Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report on the review and 
     assessment. The report shall include the following:
       (1) The Secretary's assessment of the capabilities and 
     threats referred to in subsection (b), including each of the 
     threats described in paragraph (2) of that subsection.
       (2) A discussion of the results of the review and 
     assessment, including an assessment of the contingency plans 
     developed by the Secretary to counter any threat posed by 
     Cuba to the United States.
       (d) Consultation on Review and Assessment.--In performing 
     the review and assessment and in preparing the report, the 
     Secretary of Defense shall consult with the Chairman of the 
     Joint Chiefs of Staff, the commander of the United States 
     Southern Command, and the heads of other appropriate 
     departments and agencies of the United States.

     SEC. 1229. REPORT ON HELSINKI JOINT STATEMENT.

       (a) Requirement.--Not later than March 31, 1998, the 
     President shall submit to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives a report on the Helsinki Joint 
     Statement on future reductions in nuclear forces. The report 
     shall address the United States approach (including 
     verification implications) to implementing the Helsinki Joint 
     Statement, in particular, as that Statement relates to the 
     following:
       (1) Lower aggregate levels of strategic nuclear warheads.
       (2) Measures relating to the transparency of strategic 
     nuclear warhead inventories and the destruction of strategic 
     nuclear warheads.
       (3) Deactivation of strategic nuclear delivery vehicles.
       (4) Measures relating to nuclear long-range sea-launched 
     cruise missiles and tactical nuclear systems.
       (5) Issues related to transparency in nuclear materials.
       (b) Definition.--For purposes of this section, the term 
     ``Helsinki Joint Statement'' means the agreements between the 
     President of the United States and the President of the 
     Russian Federation as contained in the Joint Statement on 
     Parameters on Future Reductions in Nuclear Forces issued at 
     Helsinki in March 1997.

     SEC. 1230. COMMENDATION OF MEXICO ON FREE AND FAIR ELECTIONS.

       (a) Findings.--Congress makes the following findings:
       (1) On July 6, 1997, elections were conducted in Mexico in 
     order to fill 500 seats in the Chamber of Deputies, 32 seats 
     in the 128 seat Senate, the office of the Mayor of Mexico 
     City, and local elections in a number of Mexican States.
       (2) For the first time, the federal elections were 
     organized by the Federal Electoral Institute, an autonomous 
     and independent organization established under the Mexican 
     Constitution.
       (3) More than 52,000,000 Mexican citizens registered to 
     vote.
       (4) Eight political parties registered to participate in 
     the those elections, including the Institutional 
     Revolutionary Party (PRI), the National Action Party (PAN), 
     and the Democratic Revolutionary Party (PRD).
       (5) Since 1993, Mexican citizens have had the exclusive 
     right to participate as observers in activities related to 
     the preparation and the conduct of elections.
       (6) Since 1994, Mexican law has permitted international 
     observers to be a part of the election process.
       (7) With 84 percent of the ballots counted, PRI candidates 
     received 38 percent of the vote for seats in the Chamber of 
     Deputies, while PRD and PAN candidates received 52 percent of 
     the combined vote.
       (8) PRD candidate Cuauhtemoc Cardenas Solorzano has become 
     the first elected Mayor of Mexico City, a post previously 
     appointed by the President.
       (9) PAN members will now serve as governors in seven of 
     Mexico's 31 States.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the recent elections in Mexico were conducted in a 
     free, fair, and impartial manner;
       (2) the will of the Mexican people, as expressed through 
     the ballot box, has been respected by President Ernesto 
     Zedillo and officials throughout his administration; and
       (3) President Zedillo, the Mexican Government, the Federal 
     Electoral Institute of Mexico, the political parties and 
     candidates, and most importantly the citizens of Mexico 
     should all be congratulated for their support and 
     participation in these very historic elections.

     SEC. 1231. SENSE OF CONGRESS REGARDING CAMBODIA.

       (a) Findings.--Congress makes the following findings:
       (1) During the 1970s and 1980s, Cambodia was wracked by 
     political conflict, war, and violence, including genocide 
     perpetrated by the Khmer Rouge from 1975 to 1979.
       (2) The 1991 Paris Agreements on a Comprehensive Political 
     Settlement of the Cambodia Conflict set the stage for a 
     process of political accommodation and national 
     reconciliation among Cambodia's warring parties.
       (3) The international community engaged in a massive effort 
     involving more than $2,000,000,000 to ensure peace, 
     democracy, and prosperity in Cambodia following the Paris 
     Accords.
       (4) The Cambodian people clearly demonstrated their support 
     for democracy when 90 percent of eligible Cambodian voters 
     participated in United Nations-sponsored elections in 1993.
       (5) Since the 1993 elections, Cambodia has made economic 
     progress, as shown by the recent decision of the Association 
     of Southeast Asian Nations (ASEAN) to extend membership in 
     the Association to Cambodia.
       (6) Tensions within the ruling Cambodian coalition have 
     erupted into violence.
       (7) In March 1997, 19 Cambodians were killed and more than 
     100 were wounded in a grenade attack on political 
     demonstrators supportive of the Funcinpec and the Khmer 
     Nation Party.
       (8) During June 1997, fighting erupted in Phnom Penh 
     between forces loyal to First Prime Minister Prince Ranariddh 
     and Second Prime Minister Hun Sen.
       (9) On July 5, 1997, Second Prime Minister Hun Sen deposed 
     the First Prime Minister in a violent coup d'etat.
       (10) Forces loyal to Hun Sen have executed former Interior 
     Minister Ho Sok and approximately 40 other political 
     opponents loyal to Prince Ranariddh.

[[Page H9165]]

       (11) Democracy and stability in Cambodia are threatened by 
     the continued use of violence and other extralegal means to 
     resolve political tensions.
       (12) In response to the July 1997 coup in Cambodia referred 
     to in paragraph (9)--
       (A) the President has suspended all direct assistance to 
     the Cambodian Government; and
       (B) the Association of Southeast Asian Nations (ASEAN) has 
     decided to delay indefinitely admission of Cambodia to 
     membership in the Association.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the parties in Cambodia should immediately cease the 
     use of violence;
       (2) the United States should take all necessary steps to 
     ensure the safety of United States citizens in Cambodia;
       (3) the United States should call an emergency meeting of 
     the United Nations Security Council to consider all options 
     to restore peace and democratic governance in Cambodia;
       (4) the United States and the Association of Southeast 
     Asian Nations should work together to take immediate steps to 
     restore democracy and the rule of law in Cambodia;
       (5) United States assistance to the Government of Cambodia 
     should remain suspended until violence ends, the 
     democratically elected Government is restored to power, and 
     the necessary steps have been taken to ensure that the 
     elections scheduled for 1998 take place; and
       (6) the United States should take all necessary steps to 
     encourage other donor nations to suspend assistance as part 
     of a multilateral effort.

     SEC. 1232. CONGRATULATING GOVERNOR CHRISTOPHER PATTEN OF HONG 
                   KONG.

       (a) Findings.--Congress makes the following findings:
       (1) His Excellency Christopher F. Patten, the former 
     Governor of Hong Kong, was the twenty-eighth and last British 
     Governor of the dependent territory of Hong Kong before that 
     territory reverted back to the People's Republic of China on 
     July 1, 1997.
       (2) Christopher Patten was a superb administrator and an 
     inspiration to the people whom he governed.
       (3) During Christopher Patten's five years as Governor of 
     Hong Kong, the economy flourished under his stewardship, 
     growing by more than 30 percent in real terms.
       (4) Christopher Patten presided over a capable and honest 
     civil service.
       (5) During the tenure of Christopher Patten as Governor of 
     Hong Kong, common crime declined and the political climate 
     was positive and stable.
       (6) The legacy of Christopher Patten to Hong Kong is the 
     expansion of democracy in Hong Kong's legislative council and 
     a tireless devotion to the rights, freedoms, and welfare of 
     the people of Hong Kong.
       (7) Christopher Patten fulfilled the commitment of the 
     British Government to ``put in place a solidly based 
     democratic administration'' in Hong Kong before July 1, 1997.
       (b) Sense of Congress.--It is the sense of the Congress 
     that Christopher F. Patten, the last British Governor of the 
     dependent territory of Hong Kong--
       (1) served his country with great honor and distinction in 
     that capacity; and
       (2) deserves special thanks and recognition from the United 
     States for his tireless efforts to develop and nurture 
     democracy in Hong Kong.
              TITLE XIII--ARMS CONTROL AND RELATED MATTERS
Sec. 1301. Presidential report concerning detargeting of Russian 
              strategic missiles.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
              nuclear delivery systems.
Sec. 1303. Assistance for facilities subject to inspection under the 
              Chemical Weapons Convention.
Sec. 1304. Transfers of authorizations for high-priority 
              counterproliferation programs.
Sec. 1305. Advice to the President and Congress regarding the safety, 
              security, and reliability of United States nuclear 
              weapons stockpile.
Sec. 1306. Reconstitution of commission to assess the ballistic missile 
              threat to the United States.
Sec. 1307. Sense of Congress regarding the relationship between United 
              States obligations under the Chemical Weapons Convention 
              and environmental laws.
Sec. 1308. Extension of counterproliferation authorities for support of 
              United Nations Special Commission on Iraq.
Sec. 1309. Annual report on moratorium on use by Armed Forces of 
              antipersonnel landmines.

     SEC. 1301. PRESIDENTIAL REPORT CONCERNING DETARGETING OF 
                   RUSSIAN STRATEGIC MISSILES.

       (a) Required Report.--Not later than January 1, 1998, the 
     President shall submit to Congress a report concerning 
     detargeting of Russian strategic missiles. The report shall 
     address each of the following:
       (1) Whether a Russian ICBM that was formerly, but is no 
     longer, targeted at a site in the United States would be 
     automatically retargeted at a site in the United States in 
     the event of the accidental launch of the missile.
       (2) Whether missile detargeting would prevent or 
     significantly reduce the possibility of an unauthorized 
     missile launch carried out by the Russian General Staff and 
     prevent or significantly reduce the consequences to the 
     United States of such a launch.
       (3) Whether missile detargeting would pose a significant 
     obstacle to an unauthorized launch carried out by an 
     operational level below the Russian General Staff if missile 
     operators at such an operational level acquired missile 
     launch codes or had the technical expertise to override 
     missile launch codes.
       (4) The plausibility of an accidental launch of a Russian 
     ICBM, compared to the possibility of a deliberate missile 
     launch, authorized or unauthorized, resulting from Russian 
     miscalculation, overreaction, or aggression.
       (5) The national security benefits derived from detargeting 
     United States and Russian ICBMs.
       (6) The relative consequences to the United States of an 
     unauthorized or accidental launch of a Russian ICBM that has 
     been detargeted and one that has not been detargeted.
       (b) Definitions.--For purposes of subsection (a):
       (1) The term ``Russian ICBM'' means an intercontinental 
     ballistic missile of the Russian Federation.
       (2) The term ``accidental launch'' means a missile launch 
     resulting from mechanical failure.

     SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF 
                   STRATEGIC NUCLEAR DELIVERY SYSTEMS.

       (a) Funding Limitation.--Funds available to the Department 
     of Defense may not be obligated or expended during fiscal 
     year 1998 for retiring or dismantling, or for preparing to 
     retire or dismantle, any of the following strategic nuclear 
     delivery systems below the specified levels:
       (1) 71 B-52H bomber aircraft.
       (2) 18 Trident ballistic missile submarines.
       (3) 500 Minuteman III intercontinental ballistic missiles.
       (4) 50 Peacekeeper intercontinental ballistic missiles.
       (b) Waiver Authority.--If the START II Treaty enters into 
     force during fiscal year 1998, the Secretary of Defense may 
     waive the application of the limitation under subsection (a) 
     to the extent that the Secretary determines necessary in 
     order to implement the treaty.
       (c) Funding Limitation on Early Deactivation.--(1) If the 
     limitation under subsection (a) ceases to apply by reason of 
     a waiver under subsection (b), funds available to the 
     Department of Defense may nevertheless not be obligated or 
     expended during fiscal year 1998 to implement any 
     agreement or understanding to undertake substantial early 
     deactivation of a strategic nuclear delivery system 
     specified in subsection (a) until 30 days after the date 
     on which the President submits to Congress a report 
     concerning such actions.
       (2) For purposes of this subsection and subsection (d), a 
     substantial early deactivation is an action during fiscal 
     year 1998 to deactivate a substantial number of strategic 
     nuclear delivery systems specified in subsection (a) by--
       (A) removing nuclear warheads from those systems; or
       (B) taking other steps to remove those systems from combat 
     status.
       (3) A report under this subsection shall include the 
     following:
       (A) The text of any understanding or agreement between the 
     United States and the Russian Federation concerning 
     substantial early deactivation of strategic nuclear delivery 
     systems under the START II Treaty.
       (B) The plan of the Department of Defense for implementing 
     the agreement.
       (C) An assessment of the Secretary of Defense of the 
     adequacy of the provisions contained in the agreement for 
     monitoring and verifying compliance of Russia with the terms 
     of the agreement and, based upon that assessment, the 
     determination of the President specifically as to whether the 
     procedures for monitoring and verification of compliance by 
     Russia with the terms of the agreement are adequate or 
     inadequate.
       (D) A determination by the President as to whether the 
     deactivations to occur under the agreement will be carried 
     out in a symmetrical, reciprocal, or equivalent manner and 
     whether the agreement will require early deactivations of 
     strategic forces by the United States to be carried out 
     substantially more rapidly than deactivations of strategic 
     forces by Russia.
       (E) An assessment by the President of the effect of the 
     proposed early deactivation on the stability of the strategic 
     balance and relative strategic nuclear capabilities of the 
     United States and the Russian Federation at various stages 
     during deactivation and upon completion, including a 
     determination by the President specifically as to whether the 
     proposed early deactivations will adversely affect strategic 
     stability.
       (d) Further Limitation on Strategic Force Reductions.--(1) 
     Amounts available to the Department of Defense for fiscal 
     year 1998 to implement an agreement that results in a 
     substantial early deactivation during fiscal year 1998 of 
     strategic forces may not be obligated for that purpose if in 
     the report under subsection (c)(3) the President determines 
     any of the following:
       (A) That procedures for monitoring and verification of 
     compliance by Russia with the terms of the agreement are 
     inadequate.
       (B) That the agreement will require early deactivations of 
     strategic forces by the United States to be carried out 
     substantially more rapidly than deactivations of strategic 
     forces by Russia.
       (C) That the proposed early deactivations will adversely 
     affect strategic stability.
       (2) The limitation in paragraph (1), if effective by reason 
     of a determination by the President described in paragraph 
     (1)(B), shall cease to apply 30 days after the date on which 
     the President notifies Congress that the early deactivations 
     under the agreement are in the national interest of the 
     United States.
       (e) Contingency Plan for Sustainment of Systems.--(1) Not 
     later then February 15, 1998, the Secretary of Defense shall 
     submit to Congress a plan for the sustainment beyond October 
     1, 1999, of United States strategic nuclear delivery systems 
     and alternative Strategic Arms Reduction Treaty force 
     structures in the event that a strategic arms reduction 
     agreement subsequent

[[Page H9166]]

     to the Strategic Arms Reduction Treaty does not enter into 
     force before 2004.
       (2) The plan shall include a discussion of the following 
     matters:
       (A) The actions that are necessary to sustain the United 
     States strategic nuclear delivery systems, distinguishing 
     between the actions that are planned for and funded in the 
     future-years defense program and the actions that are not 
     planned for and funded in the future-years defense program.
       (B) The funding necessary to implement the plan, indicating 
     the extent to which the necessary funding is provided for in 
     the future-years defense program and the extent to which the 
     necessary funding is not provided for in the future-years 
     defense program.
       (f) START Treaties Defined.--In this section:
       (1) The term ``Strategic Arms Reduction Treaty'' means the 
     Treaty Between the United States of America and the United 
     Soviet Socialist Republics on the Reduction and Limitation of 
     Strategic Offensive Arms (START), signed at Moscow on July 
     31, 1991, including related annexes on agreed statements and 
     definitions, protocols, and memorandum of understanding.
       (2) The term ``START II Treaty'' means the Treaty Between 
     the United States of America and the Russian Federation on 
     Further Reduction and Limitation of Strategic Offensive Arms, 
     signed at Moscow on January 3, 1993, including the following 
     protocols and memorandum of understanding, all such documents 
     being integral parts of and collectively referred to as the 
     ``START II Treaty'' (contained in Treaty Document 103-1):
       (A) The Protocol on Procedures Governing Elimination of 
     Heavy ICBMs and on Procedures Governing Conversion of Silo 
     Launchers of Heavy ICBMs Relating to the Treaty Between the 
     United States of America and the Russian Federation on 
     Further Reduction and Limitation of Strategic Offensive Arms 
     (also known as the ``Elimination and Conversion 
     Protocol'').
       (B) The Protocol on Exhibitions and Inspections of Heavy 
     Bombers Relating to the Treaty Between the United States and 
     the Russian Federation on Further Reduction and Limitation of 
     Strategic Offensive Arms (also known as the ``Exhibitions and 
     Inspections Protocol'').
       (C) The Memorandum of Understanding on Warhead Attribution 
     and Heavy Bomber Data Relating to the Treaty Between the 
     United States of America and the Russian Federation on 
     Further Reduction and Limitation of Strategic Offensive Arms 
     (also known as the ``Memorandum on Attribution'').

     SEC. 1303. ASSISTANCE FOR FACILITIES SUBJECT TO INSPECTION 
                   UNDER THE CHEMICAL WEAPONS CONVENTION.

       (a) Assistance Authorized.--Upon the request of the owner 
     or operator of a facility that is subject to a routine 
     inspection or a challenge inspection under the Chemical 
     Weapons Convention, the Secretary of Defense may provide 
     technical assistance to that owner or operator related to 
     compliance of that facility with the Convention. Any such 
     assistance shall be provided through the On-Site Inspection 
     Agency of the Department of Defense.
       (b) Reimbursement Requirement.--The Secretary may provide 
     assistance under subsection (a) only to the extent that the 
     Secretary determines that the Department of Defense will be 
     reimbursed for costs incurred in providing the assistance. 
     The United States National Authority may provide such 
     reimbursement from amounts available to it. Any such 
     reimbursement shall be credited to amounts available for the 
     On-Site Inspection Agency.
       (c) Definitions.--In this section:
       (1) The terms ``Chemical Weapons Convention'' and 
     ``Convention'' mean the Convention on the Prohibition of the 
     Development, Production, Stockpiling and Use of Chemical 
     Weapons and on Their Destruction, ratified by the United 
     States on April 25, 1997, and entered into force on April 29, 
     1997.
       (2) The term ``facility that is subject to a routine 
     inspection'' means a declared facility, as defined in 
     paragraph 15 of part X of the Annex on Implementation and 
     Verification of the Convention.
       (3) The term ``challenge inspection'' means an inspection 
     conducted under Article IX of the Convention.
       (4) The term ``United States National Authority'' means the 
     United States National Authority established or designated 
     pursuant to Article VII, paragraph 4, of the Convention.

     SEC. 1304. TRANSFERS OF AUTHORIZATIONS FOR HIGH-PRIORITY 
                   COUNTERPROLIFERATION PROGRAMS.

       (a) Authority.--(1) Subject to paragraph (2), the Secretary 
     of Defense may transfer amounts of authorizations made 
     available to the Department of Defense in this division for 
     fiscal year 1998 to any counterproliferation program, 
     project, or activity described in subsection (b).
       (2) A transfer of authorizations may be made under this 
     section only upon determination by the Secretary of Defense 
     that such action is necessary in the national interest.
       (3) Amounts of authorizations so transferred shall be 
     merged with and be available for the same purposes as the 
     authorization to which transferred.
       (b) Programs to Which Tranfers May Be Made.--The authority 
     under subsection (a) applies to any counterproliferation 
     program, project, or activity of the Department of Defense 
     identified as an area for progress in the most recent annual 
     report of the Counterproliferation Program Review Committee 
     established by section 1605 of the National Defense 
     Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note).
       (c) Limitation on Total Amount.--The total amount of 
     authorizations transferred under the authority of this 
     section may not exceed $50,000,000.
       (d) Other Limitations and Requirements.--The provisions of 
     subsection (b), (c), and (d) of section 1001 shall apply to a 
     transfer under this section in the same manner as they apply 
     to a transfer under subsection (a) of that section.
       (e) Construction With General Transfer Authority.--The 
     authority provided by this section is in addition to the 
     transfer authority provided in section 1001.

     SEC. 1305. ADVICE TO THE PRESIDENT AND CONGRESS REGARDING THE 
                   SAFETY, SECURITY, AND RELIABILITY OF UNITED 
                   STATES NUCLEAR WEAPONS STOCKPILE.

       (a) Findings.--Congress makes the following findings:
       (1) Nuclear weapons are the most destructive weapons on 
     earth. The United States and its allies continue to rely on 
     nuclear weapons to deter potential adversaries from using 
     weapons of mass destruction. The safety and reliability of 
     the nuclear weapons stockpile are essential to ensure its 
     credibility as a deterrent.
       (2) On September 24, 1996, President Clinton signed the 
     Comprehensive Test Ban Treaty.
       (3) Effective as of September 30, 1996, the United States 
     is prohibited by section 507 of the Energy and Water 
     Development Appropriations Act, 1993 (Public Law 102-377; 42 
     U.S.C. 2121 note) from conducting underground nuclear tests 
     ``unless a foreign state conducts a nuclear test after this 
     date, at which time the prohibition on United States nuclear 
     testing is lifted''.
       (4) Section 1436(b) of the National Defense Authorization 
     Act, Fiscal Year 1989 (Public Law 100-456; 42 U.S.C. 2121 
     note) requires the Secretary of Energy to ``establish and 
     support a program to assure that the United States is in a 
     position to maintain the reliability, safety, and continued 
     deterrent effect of its stockpile of existing nuclear weapons 
     designs in the event that a low-threshold or comprehensive 
     test ban on nuclear explosive testing is negotiated and 
     ratified.''.
       (5) Section 3138(d) of the National Defense Authorization 
     Act for Fiscal Year 1994 (Public Law 103-160; 42 U.S.C. 2121 
     note) required the President to submit an annual report to 
     Congress which sets forth ``any concerns with respect to the 
     safety, security, effectiveness, or reliability of existing 
     United States nuclear weapons raised by the Stockpile 
     Stewardship Program of the Department of Energy''.
       (6) President Clinton declared in July 1993 that ``to 
     assure that our nuclear deterrent remains unquestioned under 
     a test ban, we will explore other means of maintaining our 
     confidence in the safety, reliability, and the performance of 
     our weapons''. This decision was incorporated in a 
     Presidential Directive.
       (7) Section 3138 of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160; 42 U.S.C. 2121 
     note) also requires that the Secretary of Energy establish a 
     ``stewardship program to ensure the preservation of the core 
     intellectual and technical competencies of the United States 
     in nuclear weapons''.
       (8) The plan of the Department of Energy to maintain the 
     safety and reliability of the United States nuclear weapons 
     stockpile is known as the Stockpile Stewardship and 
     Management Program. The ability of the United States to 
     maintain and certify the safety, security, effectiveness, and 
     reliability of the nuclear weapons stockpile without testing 
     will require utilization of new and sophisticated 
     computational capabilities and diagnostic technologies, 
     methods, and procedures. Current diagnostic technologies and 
     laboratory testing techniques are insufficient to certify the 
     safety and reliability of the United States nuclear weapons 
     stockpile into the future. Whereas in the past laboratory and 
     diagnostic tools were used in conjunction with nuclear 
     testing, in the future they will provide, under the 
     Department of Energy's stockpile stewardship plan, the sole 
     basis for assessing past test data and for making 
     judgments on phenomena observed in connection with the 
     aging of the stockpile.
       (9) Section 3159 of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 42 U.S.C. 7274o) 
     requires that the directors of the nuclear weapons 
     laboratories and the nuclear weapons production plants submit 
     a report to the Assistant Secretary of Energy for Defense 
     Programs if they identify a problem that has significant 
     bearing on confidence in the safety or reliability of a 
     nuclear weapon or nuclear weapon type, that the Assistant 
     Secretary must transmit that report, along with any comments, 
     to the congressional defense committees and to the Secretary 
     of Energy and the Secretary of Defense, and that the Joint 
     Nuclear Weapons Council advise Congress regarding its 
     analysis of any such problems.
       (10) On August 11, 1995, President Clinton directed ``the 
     establishment of a new annual reporting and certification 
     requirement [to] ensure that our nuclear weapons remain safe 
     and reliable under a comprehensive test ban''.
       (11) On the same day, the President noted that the 
     Secretary of Defense and the Secretary of Energy have the 
     responsibility, after being ``advised by the Nuclear Weapons 
     Council, the Directors of DOE's nuclear weapons laboratories, 
     and the Commander of United States Strategic Command'', to 
     provide the President with the information regarding the 
     certification referred to in paragraph (10).
       (12) The Joint Nuclear Weapons Council established by 
     section 179 of title 10, United States Code, is responsible 
     for providing advice to the Secretary of Energy and Secretary 
     of Defense regarding nuclear weapons issues, including 
     ``considering safety, security, and control issues for 
     existing weapons''. The Council plays a critical role in 
     advising Congress in matters relating to nuclear weapons.
       (13) It is essential that the President receive well-
     informed, objective, and honest opinions, including 
     dissenting views, from his advisers and technical experts 
     regarding the safety, security, effectiveness, and 
     reliability of the nuclear weapons stockpile.

[[Page H9167]]

       (b) Policy.--
       (1) In general.--It is the policy of the United States--
       (A) to maintain a safe, secure, effective, and reliable 
     nuclear weapons stockpile; and
       (B) as long as other nations control or actively seek to 
     acquire nuclear weapons, to retain a credible nuclear 
     deterrent.
       (2) Nuclear weapons stockpile.--It is in the security 
     interest of the United States to sustain the United States 
     nuclear weapons stockpile through a program of stockpile 
     stewardship, carried out at the nuclear weapons laboratories 
     and nuclear weapons production plants.
       (3) Sense of Congress.--It is the sense of Congress that--
       (A) the United States should retain a triad of strategic 
     nuclear forces sufficient to deter any future hostile foreign 
     leadership with access to strategic nuclear forces from 
     acting against the vital interests of the United States;
       (B) the United States should continue to maintain nuclear 
     forces of sufficient size and capability to implement an 
     effective and robust deterrent strategy; and
       (C) the advice of the persons required to provide the 
     President and Congress with assurances of the safety, 
     security, effectiveness, and reliability of the nuclear 
     weapons force should be scientifically based, without regard 
     for politics, and of the highest quality and integrity.
       (c) Addition of President to Recipients of Reports by Heads 
     of Laboratories and Plants.--Section 3159(b) of the National 
     Defense Authorization Act for Fiscal Year 1997 (Public Law 
     104-201; 42 U.S.C. 7274o) is amended--
       (1) by striking out ``committees and'' and inserting in 
     lieu thereof ``committees,''; and
       (2) by inserting before the period at the end the 
     following: ``, and to the President''.
       (d) Ten-Day Time Limit for Transmittal of Report.--Section 
     3159(b) of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 42 U.S.C. 7274o) is amended by 
     striking out ``As soon as practicable'' and inserting in lieu 
     thereof ``Not later than 10 days''.
       (e) Advice and Opinions Regarding Nuclear Weapons 
     Stockpile.--In addition to a director of a nuclear weapons 
     laboratory or a nuclear weapons production plant (under 
     section 3159 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 42 U.S.C. 7274o)), any 
     member of the Joint Nuclear Weapons Council or the commander 
     of the United States Strategic Command may also submit to the 
     President, the Secretary of Defense, the Secretary of Energy, 
     or the congressional defense committees advice or opinion 
     regarding the safety, security, effectiveness, and 
     reliability of the nuclear weapons stockpile.
       (f) Expression of Individual Views.--A representative of 
     the President may not take any action against, or otherwise 
     constrain, a director of a nuclear weapons laboratory or a 
     nuclear weapons production plant, a member of the Joint 
     Nuclear Weapons Council, or the Commander of United States 
     Strategic Command for presenting individual views to the 
     President, the National Security Council, or Congress 
     regarding the safety, security, effectiveness, and 
     reliability of the nuclear weapons stockpile.
       (g) Definitions.--In this section:
       (1) The term ``representative of the President'' means the 
     following:
       (A) Any official of the Department of Defense or the 
     Department of Energy who is appointed by the President and 
     confirmed by the Senate.
       (B) Any member of the National Security Council.
       (C) Any member of the Joint Chiefs of Staff.
       (D) Any official of the Office of Management and Budget.
       (2) The term ``nuclear weapons laboratory'' means any of 
     the following:
       (A) Lawrence Livermore National Laboratory, California.
       (B) Los Alamos National Laboratory, New Mexico.
       (C) Sandia National Laboratories.
       (3) The term ``nuclear weapons production plant'' means any 
     of the following:
       (A) The Pantex Plant, Texas.
       (B) The Savannah River Site, South Carolina.
       (C) The Kansas City Plant, Missouri.
       (D) The Y-12 Plant, Oak Ridge, Tennessee.

     SEC. 1306. RECONSTITUTION OF COMMISSION TO ASSESS THE 
                   BALLISTIC MISSILE THREAT TO THE UNITED STATES.

       (a) Initial Organization Requirements.--Section 1321(g) of 
     the National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2712) is amended--
       (1) in paragraph (1), by striking out ``not later than 45 
     days after the date of the enactment of this Act'' and 
     inserting in lieu thereof ``not later than 30 days after the 
     date of the enactment of the National Defense Authorization 
     Act for Fiscal Year 1998''; and
       (2) in paragraph (2)--
       (A) by striking out ``30 days'' and inserting in lieu 
     thereof ``60 days''; and
       (B) by striking out ``, but not earlier than October 15, 
     1996''.
       (b) Funding.--Section 1328 of such Act (110 Stat. 2714) is 
     amended by inserting ``and fiscal year 1998'' after ``for 
     fiscal year 1997''.

     SEC. 1307. SENSE OF CONGRESS REGARDING THE RELATIONSHIP 
                   BETWEEN UNITED STATES OBLIGATIONS UNDER THE 
                   CHEMICAL WEAPONS CONVENTION AND ENVIRONMENTAL 
                   LAWS.

       (a) Findings.--Congress makes the following findings:
       (1) The Chemical Weapons Convention requires the 
     destruction of the United States stockpile of lethal chemical 
     agents and munitions by April 29, 2007 (not later than 10 
     years after the Convention's entry into force).
       (2) The President has substantial authority under existing 
     law to ensure that--
       (A) the technologies necessary to destroy the stockpile are 
     developed;
       (B) the facilities necessary to destroy the stockpile are 
     constructed; and
       (C) Federal, State, and local environmental laws and 
     regulations do not impair the ability of the United States to 
     comply with its obligations under the Convention.
       (3) The Comptroller General has concluded (in GAO Report 
     NSIAD 97018 of February 1997) that--
       (A) obtaining the necessary Federal and State permits that 
     are required under Federal environmental laws and regulations 
     for building and operating the chemical agents and munitions 
     destruction facilities is among the most unpredictable 
     factors in the chemical demilitarization program; and
       (B) program cost and schedule are largely driven by the 
     degree to which States and local communities are in agreement 
     with proposed disposal methods and whether those methods meet 
     environmental concerns.
       (b) Sense of Congress.--It is the sense of Congress that 
     the President--
       (1) should use the authority of the President under 
     existing law to ensure that the United States is able to 
     construct and operate the facilities necessary to destroy the 
     United States stockpile of lethal chemical agents and 
     munitions within the time allowed by the Chemical Weapons 
     Convention; and
       (2) while carrying out the obligations of the United States 
     under the Convention, should encourage negotiations between 
     appropriate Federal officials and officials of the State and 
     local governments concerned to attempt to meet their concerns 
     regarding compliance with Federal and State environmental 
     laws and regulations and other concerns about the actions 
     being taken to carry out those obligations.
       (c) Chemical Weapons Convention Defined.--For the purposes 
     of this section, the terms ``Chemical Weapons Convention'' 
     and ``Convention'' mean the Convention on the Prohibition of 
     the Development, Production, Stockpiling and Use of Chemical 
     Weapons and on Their Destruction, ratified by the United 
     States on April 25, 1997, and entered into force on April 29, 
     1997.

     SEC. 1308. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR 
                   SUPPORT OF UNITED NATIONS SPECIAL COMMISSION ON 
                   IRAQ.

       Section 1505 of the Weapons of Mass Destruction Control Act 
     of 1992 (title XV of Public Law 102-484; 22 U.S.C. 5859a) is 
     amended--
       (1) in subsection (d)(3), by striking out ``or'' after 
     ``fiscal year 1996,'' and by inserting ``, or $15,000,000 for 
     fiscal year 1998'' before the period at the end; and
       (2) in subsection (f), by striking out ``1997'' and 
     inserting in lieu thereof ``1998''.

     SEC. 1309. ANNUAL REPORT ON MORATORIUM ON USE BY ARMED FORCES 
                   OF ANTIPERSONNEL LANDMINES.

       (a) Findings.--Congress makes the following findings:
       (1) The United States has stated its support for a ban on 
     antipersonnel landmines that is global in scope and 
     verifiable.
       (2) On May 16, 1996, the President announced that the 
     United States, as a matter of policy, would eliminate its 
     stockpile of non-self-destructing antipersonnel landmines, 
     except those used for training purposes and in Korea, and 
     that the United States would reserve the right to use self-
     destructing antipersonnel landmines in the event of conflict.
       (3) On May 16, 1996, the President also announced that the 
     United States would lead an effort to negotiate an 
     international treaty permanently banning the use of all 
     antipersonnel landmines.
       (4) The United States is currently participating at the 
     United Nations Conference on Disarmament in negotiations 
     aimed at achieving a global ban on the use of antipersonnel 
     landmines.
       (5) On August 18, 1997, the administration agreed to 
     participate in international negotiations sponsored by Canada 
     (the so-called ``Ottawa process'') designed to achieve a 
     treaty that would outlaw the production, use, and sale of 
     antipersonnel landmines.
       (6) On September 17, 1997, the President announced that the 
     United States would not sign the antipersonnel landmine 
     treaty concluded in Oslo, Norway, by participants in the 
     Ottawa process because the treaty would not provide a 
     geographic exception to allow the United States to stockpile 
     and use antipersonnel landmines in Korea or an exemption that 
     would preserve the ability of the United States to use mixed 
     antitank mine systems which could be used to deter an armored 
     assault against United States forces.
       (7) The President also announced a change in United States 
     policy whereby the United States--
       (A) would no longer deploy antipersonnel landmines, 
     including self-destructing antipersonnel landmines, by 2003, 
     except in Korea;
       (B) would seek to field alternatives by that date, or by 
     2006 in the case of Korea;
       (C) would undertake a new initiative in the United Nations 
     Conference on Disarmament to establish a global ban on the 
     transfer of antipersonnel landmines; and
       (D) would increase its current humanitarian demining 
     activities around the world.
       (8) The President's decision would allow the continued use 
     by United States forces of self-destructing antipersonnel 
     landmines that are used as part of a mixed antitank mine 
     system.
       (9) Under existing law (as provided in section 580 of 
     Public Law 104-107; 110 Sat 751), on February 12, 1999, the 
     United States will implement a one-year moratorium on the use 
     of antipersonnel landmines by United States forces except 
     along internationally recognized national borders or in 
     demilitarized zones within a perimeter marked area that is 
     monitored by military

[[Page H9168]]

     personnel and protected by adequate means to ensure the 
     exclusion of civilians.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the United States should not implement a moratorium on 
     the use of antipersonnel landmines by United States Armed 
     Forces in a manner that would endanger United States 
     personnel or undermine the military effectiveness of United 
     States Armed Forces in executing their missions; and
       (2) the United States should pursue the development of 
     alternatives to self-destructing antipersonnel landmines.
       (c) Annual Report.--Not later than December 31 each year, 
     the Secretary of Defense shall submit to the congressional 
     defense committees a report concerning antipersonnel 
     landmines. Each such report shall include the Secretary's 
     description of the following:
       (1) The military utility of the continued deployment and 
     use by the United States of antipersonnel landmines.
       (2) The effect of a moratorium on the production, 
     stockpiling, and use of antipersonnel landmines on the 
     ability of United States forces to deter and defend against 
     attack on land by hostile forces, including on the Korean 
     peninsula.
       (3) Progress in developing and fielding systems that are 
     effective substitutes for antipersonnel landmines, including 
     an identification and description of the types of systems 
     that are being developed and fielded, the costs associated 
     with those systems, and the estimated timetable for 
     developing and fielding those systems.
       (4) The effect of a moratorium on the use of antipersonnel 
     landmines on the military effectiveness of current antitank 
     mine systems.
       (5) The number and type of pure antipersonnel landmines 
     that remain in the United States inventory and that are 
     subject to elimination under the President's September 17, 
     1997, declaration on United States antipersonnel landmine 
     policy.
       (6) The number and type of mixed antitank mine systems that 
     are in the United States inventory, the locations where they 
     are deployed, and their effect on the deterrence and 
     warfighting ability of United States Armed Forces.
       (7) The effect of the elimination of pure antipersonnel 
     landmines on the warfighting effectiveness of the United 
     States Armed Forces.
       (8) The costs already incurred and anticipated of 
     eliminating antipersonnel landmines from the United States 
     inventory in accordance with the policy enunciated by the 
     President on September 17, 1997.
       (9) The benefits that would result to United States 
     military and civilian personnel from an international treaty 
     banning the production, use, transfer, and stockpiling of 
     antipersonnel landmines.
 TITLE XIV--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET 
                                 UNION
Sec. 1401. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1402. Funding allocations.
Sec. 1403. Prohibition on use of funds for specified purposes.
Sec. 1404. Limitation on use of funds for projects related to START II 
              Treaty until submission of certification.
Sec. 1405. Limitation on use of funds for chemical weapons destruction 
              facility.
Sec. 1406. Limitation on use of funds for destruction of chemical 
              weapons.
Sec. 1407. Limitation on use of funds for storage facility for Russian 
              fissile material.
Sec. 1408. Limitation on use of funds for weapons storage security.
Sec. 1409. Report on issues regarding payment of taxes, duties, and 
              other assessments on assistance provided to Russia under 
              Cooperative Threat Reduction programs.
Sec. 1410. Availability of funds.

     SEC. 1401. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS AND FUNDS.

       (a) Specification of CTR Programs.--For purposes of section 
     301 and other provisions of this Act, Cooperative Threat 
     Reduction programs are the programs specified in section 
     1501(b) of the National Defense Authorization Act for fiscal 
     year 1997 (Public Law 104-201: 110 Stat. 2731; 50 U.S.C. 2362 
     note).
       (b) Fiscal Year 1998 Cooperative Threat Reduction Funds 
     Defined.--As used in this title, the term ``fiscal year 1998 
     Cooperative Threat Reduction funds'' means the funds 
     appropriated pursuant to the authorization of appropriations 
     in section 301 for Cooperative Threat Reduction programs.

     SEC. 1402. FUNDING ALLOCATIONS.

       (a) In General.--Of the fiscal year 1998 Cooperative Threat 
     Reduction funds, not more than the following amounts may be 
     obligated for the purposes specified:
       (1) For strategic offensive arms elimination in Russia, 
     $77,900,000.
       (2) For strategic nuclear arms elimination in Ukraine, 
     $76,700,000.
       (3) For fissile material containers in Russia, $7,000,000.
       (4) For planning and design of a chemical weapons 
     destruction facility in Russia, $35,400,000.
       (5) For dismantlement of biological and chemical weapons 
     facilities in the former Soviet Union, $20,000,000.
       (6) For planning, design, and construction of a storage 
     facility for Russian fissile material, $57,700,000.
       (7) For weapons storage security in Russia, $36,000,000.
       (8) For development of a cooperative program with the 
     Government of Russia to eliminate the production of weapons 
     grade plutonium at Russian reactors, $41,000,000.
       (9) For activities designated as Defense and Military-to-
     Military Contacts in Russia, Ukraine, and Kazakhstan, 
     $8,000,000.
       (10) For military-to-military programs of the United States 
     that focus on countering the threat of proliferation of 
     weapons of mass destruction and that include the security 
     forces of the independent states of the former Soviet Union 
     other than Russia, Ukraine, Belarus, and Kazakstan, 
     $2,000,000.
       (11) For activities designated as Other Assessments/
     Administrative Support $20,500,000.
       (b) Limited Authority To Vary Individual Amounts.--(1) If 
     the Secretary of Defense determines that it is necessary to 
     do so in the national interest, the Secretary may, subject to 
     paragraphs (2) and (3), obligate amounts for the purposes 
     stated in any of the paragraphs of subsection (a) in excess 
     of the amount specified for those purposes in that paragraph. 
     However, the total amount obligated for the purposes stated 
     in the paragraphs in subsection (a) may not by reason of the 
     use of the authority provided in the preceding sentence 
     exceed the sum of the amounts specified in those paragraphs.
       (2) An obligation for the purposes stated in any of the 
     paragraphs in subsection (a) in excess of the amount 
     specified in that paragraph may be made using the authority 
     provided in paragraph (1) only after--
       (A) the Secretary submits to Congress notification of the 
     intent to do so together with a complete discussion of the 
     justification for doing so; and
       (B) 15 days have elapsed following the date of the 
     notification.
       (3) The Secretary may not, under the authority provided in 
     paragraph (1), obligate amounts appropriated for the purposes 
     stated in any of paragraphs (3) through (11) of subsection 
     (a) in excess of 115 percent of the amount stated in those 
     paragraphs.
       (c) Limited Waiver of 115 Percent Cap on Obligation in 
     Excess of Amounts Authorized for Fiscal Years 1996 and 
     1997.--(1) The limitation in subsection (b)(1) of section 
     1202 of the National Defense Authorization Act For Fiscal 
     Year 1996 (Public Law 104-106; 110 Stat. 469), that provides 
     that the authority provided in that sentence to obligate 
     amounts specified for Cooperative Threat Reduction purposes 
     in excess of the amount specified for each such purpose in 
     subsection (a) of that section may not exceed 115 percent of 
     the amounts specified, shall not apply with respect to 
     subsection (a)(1) of such section for purposes of strategic 
     offensive weapons elimination in Russia or the Ukraine.
       (2) The limitation in subsection (b)(1) of section 1502 of 
     the National Defense Authorization Act For Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2732), that provides that the 
     authority provided in that sentence to obligate amounts 
     specified for Cooperative Threat Reduction purposes in excess 
     of the amount specified for each such purpose in subsection 
     (a) of that section may not exceed 115 percent of the amounts 
     specified, shall not apply with respect to subsections (a)(2) 
     and (a)(3) of such section.

     SEC. 1403. PROHIBITION ON USE OF FUNDS FOR SPECIFIED 
                   PURPOSES.

       (a) In General.--No fiscal year 1998 Cooperative Threat 
     Reduction funds, and no funds appropriated for Cooperative 
     Threat Reduction programs for any prior fiscal year and 
     remaining available for obligation, may be obligated or 
     expended for any of the following purposes:
       (1) Conducting with Russia any peacekeeping exercise or 
     other peacekeeping-related activity.
       (2) Provision of housing.
       (3) Provision of assistance to promote environmental 
     restoration.
       (4) Provision of assistance to promote job retraining.
       (b) Limitation With Respect to Defense Conversion 
     Assistance.--None of the funds appropriated pursuant to this 
     Act may be obligated or expended for the provision of 
     assistance to Russia or any other state of the former Soviet 
     Union to promote defense conversion.

     SEC. 1404. LIMITATION ON USE OF FUNDS FOR PROJECTS RELATED TO 
                   START II TREATY UNTIL SUBMISSION OF 
                   CERTIFICATION.

       No fiscal year 1998 Cooperative Threat Reduction funds may 
     be obligated or expended for strategic offensive arms 
     elimination projects in Russia related to the START II Treaty 
     (as defined in section 1302(f)) until 30 days after the date 
     on which the Secretary of Defense submits to Congress a 
     certification in writing that--
       (1) implementation of the projects would benefit the 
     national security interest of the United States; and
       (2) Russia has agreed in an implementing agreement to share 
     the cost for the projects.

     SEC. 1405. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS 
                   DESTRUCTION FACILITY.

       (a) Limitation on Use of Funds Until Submission of 
     Notifications to Congress.--No fiscal year 1998 Cooperative 
     Threat Reduction funds may be obligated or expended for 
     planning and design of a chemical weapons destruction 
     facility until 15 days after the date that is the later of 
     the following:
       (1) The date on which the Secretary of Defense submits to 
     Congress notification of an agreement between the United 
     States and Russia with respect to such chemical weapons 
     destruction facility that includes--
       (A) an agreement providing for a limitation on the 
     financial contribution by the United States for the facility;
       (B) an agreement that the United States will not pay the 
     costs for infrastructure determined

[[Page H9169]]

     by Russia to be necessary to support the facility; and
       (C) an agreement on the location of the facility.
       (2) The date on which the Secretary of Defense submits to 
     Congress notification that the Government of Russia has 
     formally approved a plan--
       (A) that allows for the destruction of chemical weapons in 
     Russia; and
       (B) that commits Russia to pay a portion of the cost for 
     the facility.
       (b) Prohibition on Use of Funds for Facility 
     Construction.--No fiscal year 1998 Cooperative Threat 
     Reduction funds authorized to be obligated in section 
     1402(a)(4) for planning and design of a chemical weapons 
     destruction facility in Russia may be used for construction 
     of such facility.

     SEC. 1406. LIMITATION ON USE OF FUNDS FOR DESTRUCTION OF 
                   CHEMICAL WEAPONS.

       (a) Limitation.--No funds authorized to be appropriated 
     under this or any other Act for fiscal year 1998 for 
     Cooperative Threat Reduction programs may be obligated or 
     expended for chemical weapons destruction activities 
     (including activities for the planning, design, or 
     construction of a chemical weapons destruction facility or 
     for the dismantlement of an existing chemical weapons 
     production facility) until the President submits to Congress 
     a written certification under subsection (b).
       (b) Presidential Certification.--A certification under this 
     subsection is either of the following certifications by the 
     President:
       (1) A certification that--
       (A) Russia is making reasonable progress toward the 
     implementation of the Bilateral Destruction Agreement;
       (B) the United States and Russia have made substantial 
     progress toward the resolution, to the satisfaction of the 
     United States, of outstanding compliance issues under the 
     Wyoming Memorandum of Understanding and the Bilateral 
     Destruction Agreement; and
       (C) Russia has fully and accurately declared all 
     information regarding its unitary and binary chemical 
     weapons, chemical weapons facilities, and other facilities 
     associated with chemical weapons.
       (2) A certification that the national security interests of 
     the United States could be undermined by a United States 
     policy not to carry out chemical weapons destruction 
     activities under the Cooperative Threat Reduction programs 
     for which funds are authorized to be appropriated under this 
     or any other Act for fiscal year 1998.
       (c) Definitions.--For the purposes of this section:
       (1) The term ``Bilateral Destruction Agreement'' means the 
     Agreement Between the United States of America and the Union 
     of Soviet Socialist Republics on Destruction and 
     Nonproduction of Chemical Weapons and on Measures to 
     Facilitate the Multilateral Convention on Banning Chemical 
     Weapons, signed on June 1, 1990.
       (2) The term ``Wyoming Memorandum of Understanding'' means 
     the Memorandum of Understanding Between the Government of the 
     United States of America and the Government of the Union of 
     Soviet Socialist Republics Regarding a Bilateral Verification 
     Experiment and Data Exchange Related to Prohibition on 
     Chemical Weapons, signed at Jackson Hole, Wyoming, on 
     September 23, 1989.

     SEC. 1407. LIMITATION ON USE OF FUNDS FOR STORAGE FACILITY 
                   FOR RUSSIAN FISSILE MATERIAL.

       No fiscal year 1998 Cooperative Threat Reduction funds may 
     be obligated or expended for planning, design, or 
     construction of a storage facility for Russian fissile 
     material until 15 days after the date that is the later of 
     the following:
       (1) The date on which the Secretary of Defense submits to 
     Congress notification that an implementing agreement between 
     the United States and Russia has been entered into that 
     specifies the total cost to the United States for the 
     facility.
       (2) The date on which the Secretary submits to Congress 
     notification that an agreement has been entered into between 
     the United States and Russia incorporating the principle of 
     transparency with respect to the use of the facility.

     SEC. 1408. LIMITATION ON USE OF FUNDS FOR WEAPONS STORAGE 
                   SECURITY.

       No fiscal year 1998 Cooperative Threat Reduction funds 
     intended for weapons storage security activities in Russia 
     may be obligated or expended until--
       (1) the Secretary of Defense submits to Congress a report 
     on the status of negotiations between the United States and 
     Russia on audits and examinations with respect to weapons 
     storage security; and
       (2) 15 days have elapsed following the date that the report 
     is submitted.

     SEC. 1409. REPORT ON ISSUES REGARDING PAYMENT OF TAXES, 
                   DUTIES, AND OTHER ASSESSMENTS ON ASSISTANCE 
                   PROVIDED TO RUSSIA UNDER COOPERATIVE THREAT 
                   REDUCTION PROGRAMS.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to Congress a 
     report on issues regarding payment of taxes, duties, and 
     other assessments on assistance provided to Russia under 
     Cooperative Threat Reduction programs. The report shall 
     include the following:
       (1) A description of any disputes between the United States 
     and Russia with respect to payment by the United States of 
     taxes, duties and other assessments on assistance provided to 
     Russia under a Cooperative Threat Reduction program, 
     including a description of the nature of each dispute, the 
     amount of payment disputed, whether the dispute was 
     resolved, and if the dispute was resolved, the means by 
     which the dispute was resolved.
       (2) A description of the actions taken by the Secretary to 
     prevent disputes in the future between the United States and 
     Russia with respect to payment by the United States of taxes, 
     duties, and other assessments on assistance provided to 
     Russia under a Cooperative Threat Reduction program.
       (3) A description of any agreement between the United 
     States and Russia with respect to payment by the United 
     States of taxes, duties, or other assessments on assistance 
     provided to Russia under a Cooperative Threat Reduction 
     program.
       (4) Any proposals of the Secretary for actions that should 
     be taken to prevent disputes between the United States and 
     Russia with respect to payment by the United States of taxes, 
     duties, or other assessments on assistance provided to Russia 
     under a Cooperative Threat Reduction program.

     SEC. 1410. AVAILABILITY OF FUNDS.

       Funds appropriated pursuant to the authorization of 
     appropriations in section 301 for Cooperative Threat 
     Reduction programs shall be available for obligation for 
     three fiscal years.
   TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION
Sec. 1501. Recognition and grant of Federal charter.
Sec. 1502. Powers.
Sec. 1503. Purposes.
Sec. 1504. Service of process.
Sec. 1505. Membership.
Sec. 1506. Board of directors.
Sec. 1507. Officers.
Sec. 1508. Restrictions.
Sec. 1509. Liability.
Sec. 1510. Maintenance and inspection of books and records.
Sec. 1511. Audit of financial transactions.
Sec. 1512. Annual report.
Sec. 1513. Reservation of right to alter, amend, or repeal charter.
Sec. 1514. Tax-exempt status required as condition of charter.
Sec. 1515. Termination.
Sec. 1516. Definition of State.

     SEC. 1501. RECOGNITION AND GRANT OF FEDERAL CHARTER.

       The Air Force Sergeants Association, a nonprofit 
     corporation organized under the laws of the District of 
     Columbia, is recognized as such and granted a Federal 
     charter.

     SEC. 1502. POWERS.

       The Air Force Sergeants Association (in this title referred 
     to as the ``association'') shall have only those powers 
     granted to it through its bylaws and articles of 
     incorporation filed in the District of Columbia and subject 
     to the laws of the District of Columbia.

     SEC. 1503. PURPOSES.

       The purposes of the association are those provided in its 
     bylaws and articles of incorporation and shall include the 
     following:
       (1) To help maintain a highly dedicated and professional 
     corps of enlisted personnel within the United States Air 
     Force, including the United States Air Force Reserve, and the 
     Air National Guard.
       (2) To support fair and equitable legislation and 
     Department of the Air Force policies and to influence by 
     lawful means departmental plans, programs, policies, and 
     legislative proposals that affect enlisted personnel of the 
     Regular Air Force, the Air Force Reserve, and the Air 
     National Guard, its retirees, and other veterans of enlisted 
     service in the Air Force.
       (3) To actively publicize the roles of enlisted personnel 
     in the United States Air Force.
       (4) To participate in civil and military activities, youth 
     programs, and fundraising campaigns that benefit the United 
     States Air Force.
       (5) To provide for the mutual welfare of members of the 
     association and their families.
       (6) To assist in recruiting for the United States Air 
     Force.
       (7) To assemble together for social activities.
       (8) To maintain an adequate Air Force for our beloved 
     country.
       (9) To foster among the members of the association a 
     devotion to fellow airmen.
       (10) To serve the United States and the United States Air 
     Force loyally, and to do all else necessary to uphold and 
     defend the Constitution of the United States.

     SEC. 1504. SERVICE OF PROCESS.

       With respect to service of process, the association shall 
     comply with the laws of the District of Columbia and those 
     States in which it carries on its activities in furtherance 
     of its corporate purposes.

     SEC. 1505. MEMBERSHIP.

       Except as provided in section 1508(g), eligibility for 
     membership in the association and the rights and privileges 
     of members shall be as provided in the bylaws and articles of 
     incorporation of the association.

     SEC. 1506. BOARD OF DIRECTORS.

       Except as provided in section 1508(g), the composition of 
     the board of directors of the association and the 
     responsibilities of the board shall be as provided in the 
     bylaws and articles of incorporation of the association and 
     in conformity with the laws of the District of Columbia.

     SEC. 1507. OFFICERS.

       Except as provided in section 1508(g), the positions of 
     officers of the association and the election of members to 
     such positions shall be as provided in the bylaws and 
     articles of incorporation of the association and in 
     conformity with the laws of the District of Columbia.

     SEC. 1508. RESTRICTIONS.

       (a) Income and Compensation.--No part of the income or 
     assets of the association may inure to the benefit of any 
     member, officer, or director of the association or be 
     distributed to any such individual during the life of this 
     charter. Nothing in this subsection may be construed to 
     prevent the payment of reasonable compensation to the 
     officers and employees of the association or reimbursement 
     for actual and necessary

[[Page H9170]]

     expenses in amounts approved by the board of directors.
       (b) Loans.--The association may not make any loan to any 
     member, officer, director, or employee of the association.
       (c) Issuance of Stock and Payment of Dividends.--The 
     association may not issue any shares of stock or declare or 
     pay any dividends.
       (d) Disclaimer of Congressional or Federal Approval.--The 
     association may not claim the approval of the Congress or the 
     authorization of the Federal Government for any of its 
     activities by virtue of this title.
       (e) Corporate Status.--The association shall maintain its 
     status as a corporation organized and incorporated under the 
     laws of the District of Columbia.
       (f) Corporate Function.--The association shall function as 
     an educational, patriotic, civic, historical, and research 
     organization under the laws of the District of Columbia.
       (g) Nondiscrimination.--In establishing the conditions of 
     membership in the association and in determining the 
     requirements for serving on the board of directors or as an 
     officer of the association, the association may not 
     discriminate on the basis of race, color, religion, sex, 
     handicap, age, or national origin.

     SEC. 1509. LIABILITY.

       The association shall be liable for the acts of its 
     officers, directors, employees, and agents whenever such 
     individuals act within the scope of their authority.

     SEC. 1510. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.

       (a) Books and Records of Account.--The association shall 
     keep correct and complete books and records of account and 
     minutes of any proceeding of the association involving any of 
     its members, the board of directors, or any committee having 
     authority under the board of directors.
       (b) Names and Addresses of Members.--The association shall 
     keep at its principal office a record of the names and 
     addresses of all members having the right to vote in any 
     proceeding of the association.
       (c) Right to Inspect Books and Records.--All books and 
     records of the association may be inspected by any member 
     having the right to vote in any proceeding of the 
     association, or by any agent or attorney of such member, for 
     any proper purpose at any reasonable time.
       (d) Application of State Law.--This section may not be 
     construed to contravene any applicable State law.

     SEC. 1511. AUDIT OF FINANCIAL TRANSACTIONS.

       The first section of the Act entitled ``An Act to provide 
     for audit of accounts of private corporations established 
     under Federal law'', approved August 30, 1964 (36 U.S.C. 
     1101), is amended--
       (1) by redesignating the paragraph (77) added by section 
     1811 of Public Law 104-201 (110 Stat. 2762) as paragraph 
     (78); and
       (2) by adding at the end the following:
       ``(79) Air Force Sergeants Association.''.

     SEC. 1512. ANNUAL REPORT.

       The association shall annually submit to Congress a report 
     concerning the activities of the association during the 
     preceding fiscal year. The annual report shall be submitted 
     on the same date as the report of the audit required by 
     reason of the amendment made in section 1511. The annual 
     report shall not be printed as a public document.

     SEC. 1513. RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL 
                   CHARTER.

       The right to alter, amend, or repeal this title is 
     expressly reserved to Congress.

     SEC. 1514. TAX-EXEMPT STATUS REQUIRED AS CONDITION OF 
                   CHARTER.

       If the association fails to maintain its status as an 
     organization exempt from taxation as provided in the Internal 
     Revenue Code of 1986 the charter granted in this title shall 
     terminate.

     SEC. 1515. TERMINATION.

       The charter granted in this title shall expire if the 
     association fails to comply with any of the provisions of 
     this title.

     SEC. 1516. DEFINITION OF STATE.

       For purposes of this title, the term ``State'' includes the 
     District of Columbia, the Commonwealth of Puerto Rico, the 
     Commonwealth of the Northern Mariana Islands, and the 
     territories and possessions of the United States.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

       This division may be cited as the ``Military Construction 
     Authorization Act for Fiscal Year 1998''.
                            TITLE XXI--ARMY
Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Correction in authorized uses of funds, Fort Irwin, 
              California.

     SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(1), the Secretary of the Army may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:


                     Army: Inside the United States                     
------------------------------------------------------------------------
                                     Installation or                    
             State                       Location             Amount    
------------------------------------------------------------------------
Alabama........................  Redstone Arsenal.......     $27,000,000
Arizona........................  Fort Huachuca..........     $20,000,000
California.....................  Fort Irwin.............     $11,150,000
                                 Naval Weapons Station,      $23,000,000
                                  Concord.                              
Colorado.......................  Fort Carson............     $47,300,000
Georgia........................  Fort Gordon............     $22,000,000
                                 Hunter Army Air Field,                 
                                  Fort Stewart..........     $54,000,000
Hawaii.........................  Schofield Barracks.....     $44,000,000
Indiana........................  Crane Army Ammunition        $7,700,000
                                  Activity.                             
Kansas.........................  Fort Leavenworth.......     $63,000,000
                                 Fort Riley.............     $25,800,000
Kentucky.......................  Fort Campbell..........     $53,600,000
                                 Fort Knox..............      $7,200,000
Missouri.......................  Fort Leonard Wood......      $3,200,000
New Jersey.....................  Fort Monmouth..........      $2,050,000
New Mexico.....................  White Sands Missile          $6,900,000
                                  Range.                                
New York.......................  Fort Drum..............     $24,400,000
North Carolina.................  Fort Bragg.............     $17,700,000
Oklahoma.......................  Fort Sill..............     $25,000,000
South Carolina.................  Naval Weapons Station,       $7,700,000
                                  Charleston.                           
Texas..........................  Fort Bliss.............      $7,700,000
                                 Fort Hood..............     $27,200,000
                                 Fort Sam Houston.......     $16,000,000
Virginia.......................  Fort A.P. Hill.........      $5,400,000
                                 Fort Myer..............      $8,200,000
                                 Fort Story.............      $2,050,000
Washington.....................  Fort Lewis.............     $33,000,000
CONUS Classified...............  Classified Location....      $6,500,000
                                                         ---------------
                                   Total................    $598,750,000
------------------------------------------------------------------------

       
       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(2), the Secretary of the Army may acquire real 
     property and carry out military construction projects for the 
     locations outside the United States, and in the amounts, set 
     forth in the following table:


                     Army: Outside the United States                    
------------------------------------------------------------------------
                                     Installation or                    
            Country                      Location             Amount    
------------------------------------------------------------------------
Germany........................  Ansbach................     $22,000,000

[[Page H9171]]

                                                                        
                                 Heidelberg.............      $8,800,000
                                 Mannheim...............      $6,200,000
                                 Military Support Group,                
                                  Kaiserslautern........      $6,000,000
Korea..........................  Camp Casey.............      $5,100,000
                                 Camp Castle............      $8,400,000
                                 Camp Humphreys.........     $32,000,000
                                 Camp Red Cloud.........     $23,600,000
                                 Camp Stanley...........      $7,000,000
Overseas Classified............  Overseas Classified....     $37,000,000
                                                         ---------------
                                   Total................    $156,100,000
------------------------------------------------------------------------

     SEC. 2102. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to authorization of appropriations in 
     section 2104(a)(5)(A), the Secretary of the Army may 
     construct or acquire family housing units (including land 
     acquisition) at the installations, for the purposes, and in 
     the amounts set forth in the following table:


                                              Army: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Purpose                 Amount    
----------------------------------------------------------------------------------------------------------------
Arizona...............................  Fort Huachuca............  55 Units.....................      $8,000,000
Hawaii................................  Schofield Barracks.......  132 Units....................     $26,600,000
Maryland..............................  Fort Meade...............  56 Units.....................      $7,900,000
New Jersey............................  Picatinny Arsenal........  35 Units.....................      $7,300,000
North Carolina........................  Fort Bragg...............  174 Units....................     $20,150,000
Texas.................................  Fort Bliss...............  91 Units.....................     $12,900,000
                                        Fort Hood................  130 Units....................     $18,800,000
                                                                                                 ---------------
                                                                     Total......................    $101,650,000
----------------------------------------------------------------------------------------------------------------

       
       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(5)(A), the Secretary of the Army may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of family housing units in an amount not to 
     exceed $9,550,000.

     SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in sections 2104(a)(5)(A), the Secretary of 
     the Army may improve existing military family housing units 
     in an amount not to exceed $86,100,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1997, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Army in the total amount of $2,010,466,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $435,350,000.
       (2) For the military construction projects outside the 
     United States authorized by section 2101(b), $156,100,000.
       (3) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $7,400,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $65,577,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $197,300,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $1,145,339,000.
       (6) For the construction of the National Range Control 
     Center, White Sands Missile Range, New Mexico, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 1997 (division B of Public Law 104-201; 
     110 Stat. 2763), $18,000,000.
       (7) For the construction of the whole barracks complex 
     renewal, Fort Knox, Kentucky, authorized by section 2101(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 1997 (division B of Public Law 104-201; 110 Stat. 2763), 
     $22,000,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2101 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a);
       (2) $14,400,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of the Force XXI Soldier 
     Development School at Fort Hood, Texas);
       (3) $24,000,000 (the balance of the amount authorized under 
     section 2101(a) for rail yard expansion at Fort Carson, 
     Colorado);
       (4) $43,000,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of a disciplinary 
     barracks at Fort Leavenworth, Kansas);
       (5) $42,500,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of a barracks at Hunter 
     Army Airfield, Fort Stewart, Georgia);
       (6) $17,000,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of a barracks at Fort 
     Sill, Oklahoma);
       (7) $14,000,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of a missile software 
     engineering facility at Redstone Arsenal, Alabama); and
       (8) $8,500,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of an aerial gunnery 
     range at Fort Drum, New York).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (7) of 
     subsection (a) is the sum of the amounts authorized in such 
     paragraphs, reduced by $36,600,000, which represents the 
     combination of savings resulting from adjustments to foreign 
     currency exchange rates for military construction projects 
     and the support of military family housing outside the United 
     States.

     SEC. 2105. CORRECTION IN AUTHORIZED USES OF FUNDS, FORT 
                   IRWIN, CALIFORNIA.

       The Secretary of the Army may carry out a military 
     construction project at Fort Irwin, California, to construct 
     a heliport for the National Training Center at Barstow-
     Daggett, California, using the following amounts:
       (1) Amounts appropriated pursuant to the authorization of 
     appropriations in section 2104(a)(1) of the Military 
     Construction Authorization Act for Fiscal Year 1995 (division 
     B of Public Law 103-337; 108 Stat. 3029) for a military 
     construction project involving the construction of an air 
     field at Fort Irwin, as authorized by section 2101(a) of such 
     Act (108 Stat. 3027).
       (2) Amounts appropriated pursuant to the authorization of 
     appropriations in section 2104(a)(1) of the Military 
     Construction Authorization Act for Fiscal Year 1996 (division 
     B of Public Law 104-106; 110 Stat. 524) for a military 
     construction project involving the construction of an air 
     field at Fort Irwin, as authorized by section 2101(a) of such 
     Act (110 Stat. 523).
                            TITLE XXII--NAVY
Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization of military construction project at Naval 
              Station, Pascagoula, Mississippi, for which funds have 
              been appropriated.
Sec. 2206. Increase in authorization for military construction projects 
              at Naval Station Roosevelt Roads, Puerto Rico.

     SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(1), the Secretary of the Navy may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:


[[Page H9172]]



                     Navy: Inside the United States                     
------------------------------------------------------------------------
                                     Installation or                    
             State                       Location             Amount    
------------------------------------------------------------------------
Arizona........................  Marine Corps Air                       
                                  Station, Yuma.........     $12,250,000
                                 Navy Detachment, Camp                  
                                  Navajo................     $11,426,000
California.....................  Marine Corps Air                       
                                  Station, Camp                         
                                  Pendleton.............     $14,020,000
                                 Marine Corps Air                       
                                  Station, Miramar......      $8,700,000
                                 Marine Corps Air-Ground                
                                  Combat Center,                        
                                  Twentynine Palms......      $3,810,000
                                 Marine Corps Base, Camp                
                                  Pendleton.............     $60,069,000
                                 Naval Air Facility, El                 
                                  Centro................     $11,000,000
                                 Naval Air Station,                     
                                  North Island..........     $19,600,000
                                 Naval Amphibious Base,                 
                                  Coronado..............     $10,100,000
                                 Naval Construction                     
                                  Battalion Center, Port                
                                  Hueneme...............      $3,200,000
Connecticut....................  Naval Submarine Base,                  
                                  New London............     $21,960,000
Florida........................  Naval Air Station,                     
                                  Jacksonville..........      $3,480,000
                                 Naval Air Station,           $1,300,000
                                  Whiting Field.                        
                                 Naval Station, Mayport.     $17,940,000
Hawaii.........................  Fort DeRussey..........      $9,500,000
                                 Marine Corps Air                       
                                  Station, Kaneohe Bay..     $19,000,000
                                 Naval Communications                   
                                  and Telecommunications                
                                  Area Master Station                   
                                  Eastern Pacific,                      
                                  Honolulu..............      $3,900,000
                                 Naval Station, Pearl        $25,000,000
                                  Harbor.                               
Illinois.......................  Naval Training Center,                 
                                  Great Lakes...........     $41,220,000
Indiana........................  Naval Surface Warfare                  
                                  Center, Crane.........      $4,120,000
Maryland.......................  Naval Electronics                      
                                  System Command, St.                   
                                  Ingoes................      $2,610,000
Mississippi....................  Naval Air Station,                     
                                  Meridian..............      $7,050,000
North Carolina.................  Marine Corps Air                       
                                  Station, Cherry Point.      $8,800,000
                                 Marine Corps Air                       
                                  Station, New River....     $19,900,000
Rhode Island...................  Naval Undersea Warfare                 
                                  Center Division,                      
                                  Newport...............      $8,900,000
South Carolina.................  Marine Corps Air                       
                                  Station, Beaufort.....     $17,730,000
                                 Marine Corps Reserve                   
                                  Detachment Parris                     
                                  Island................      $3,200,000
Texas..........................  Naval Air Station,                     
                                  Corpus Christi........        $800,000
Virginia.......................  AEGIS Training Center,       $6,600,000
                                  Dahlgren.                             
                                 Fleet Combat Training                  
                                  Center, Dam Neck......      $7,000,000
                                 Naval Air Station,                     
                                  Norfolk...............     $18,240,000
                                 Naval Air Station,          $28,000,000
                                  Oceana.                               
                                 Naval Amphibious Base,                 
                                  Little Creek..........      $8,685,000
                                 Naval Shipyard,                        
                                  Norfolk, Portsmouth...     $29,410,000
                                 Naval Station, Norfolk.     $18,850,000
                                 Naval Surface Warfare                  
                                  Center, Dahlgren......     $13,880,000
                                 Naval Weapons Station,                 
                                  Yorktown..............     $14,547,000
Washington.....................  Naval Air Station,           $1,100,000
                                  Whidbey Island.                       
                                 Puget Sound Naval                      
                                  Shipyard, Bremerton...      $4,400,000
                                                         ---------------
                                   Total................    $521,297,000
------------------------------------------------------------------------

       
       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2204(a)(2), the Secretary of the Navy may acquire real 
     property and carry out military construction projects for the 
     installations and locations outside the United States, and in 
     the amounts, set forth in the following table:


                     Navy: Outside the United States                    
------------------------------------------------------------------------
                                     Installation or                    
            Country                      Location             Amount    
------------------------------------------------------------------------
Bahrain........................  Administrative Support                 
                                  Unit, Bahrain.........     $30,100,000
Guam...........................  Naval Communications                   
                                  and Telecommunications                
                                  Area Master Station                   
                                  Western Pacific, Guam.      $4,050,000
Italy..........................  Naval Air Station,          $21,440,000
                                  Sigonella.                            
                                 Naval Support Activity,      $8,200,000
                                  Naples.                               
United Kingdom.................  Joint Maritime                         
                                  Communications Center,                
                                  St. Mawgan............      $2,330,000
                                                         ---------------
                                   Total................     $66,120,000
------------------------------------------------------------------------

     SEC. 2202. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2204(a)(5)(A), the Secretary of the Navy may 
     construct or acquire family housing units (including land 
     acquisition) at the installations, for the purposes, and in 
     the amounts set forth in the following table:


                                              Navy: Family Housing                                              
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Purpose                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Marine Corps Air Station,                                               
                                         Miramar.................  166 Units....................     $28,881,000
                                        Marine Corps Air-Ground                                                 
                                         Combat Center,                                                         
                                         Twentynine Palms........  132 Units....................     $23,891,000
                                        Marine Corps Base, Camp                                                 
                                         Pendleton...............  171 Units....................     $22,518,000
                                        Naval Air Station,                                                      
                                         Lemoore.................  128 Units....................     $23,226,000
                                        Naval Complex, San Diego.  94 Units.....................     $13,500,000
Hawaii................................  Naval Complex, Pearl                                                    
                                         Harbor..................  72 Units.....................     $13,000,000
Louisiana.............................  Naval Complex, New                                                      
                                         Orleans.................  100 Units....................     $11,930,000
Texas.................................  Naval Complex, Kingsville                                               
                                         and Corpus Christi......  212 Units....................     $22,250,000
Washington............................  Naval Air Station,                                                      
                                         Whidbey Island..........  102 Units....................     $16,000,000
                                                                                                 ---------------
                                                                     Total......................    $175,196,000
----------------------------------------------------------------------------------------------------------------


[[Page H9173]]

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriation in section 
     2204(a)(5)(A), the Secretary of the Navy may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $15,100,000.

     SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2204(a)(5)(A), the Secretary of 
     the Navy may improve existing military family housing units 
     in an amount not to exceed $203,536,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1997, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Navy in the total amount of $2,027,339,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $521,297,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $66,120,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $11,460,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $46,489,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $393,832,000.
       (B) For support of military housing (including functions 
     described in section 2833 of title 10, United States Code), 
     $976,504,000.
       (6) For construction of a bachelor enlisted quarters at 
     Naval Hospital, Great Lakes, Illinois, authorized by section 
     2201(a) of the Military Construction Authorization Act for 
     Fiscal Year 1997 (division B of Public Law 104-201; 110 Stat. 
     2766), $5,200,000.
       (7) For construction of a bachelor enlisted quarters at 
     Naval Station, Roosevelt Roads, Puerto Rico, authorized by 
     section 2201(a) of the Military Construction Authorization 
     Act for Fiscal Year 1997 (division B of Public Law 104-201; 
     110 Stat. 2767), $14,600,000.
       (8) For construction of a large anecohic chamber facility 
     at Patuxent River Naval Air Warfare Center, Maryland, 
     authorized by section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 1993 (division B of Public 
     Law 102-484; 106 Stat. 2590), $9,000,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2201 of this Act may not exceed the 
     total amount authorized to be appropriated under paragraphs 
     (1) and (2) of subsection (a).
       (c) Adjustments.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (8) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by--
       (1) $8,463,000, which represents the combination of project 
     savings in military family housing construction resulting 
     from favorable bids, reduced overhead costs, and 
     cancellations due to force structure changes; and
       (2) $8,700,000, which represents the combination of savings 
     resulting from adjustments to foreign currency exchange rates 
     for military construction projects and the support of 
     military family housing outside the United States.

     SEC. 2205. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT 
                   NAVAL STATION, PASCAGOULA, MISSISSIPPI, FOR 
                   WHICH FUNDS HAVE BEEN APPROPRIATED.

       (a) Authorization.--The table in section 2201(a) of the 
     Military Construction Authorization Act for Fiscal Year 1997 
     (division B of Public Law 104-201; 110 Stat. 2766) is 
     amended--
       (1) by striking out the amount identified as the total and 
     inserting in lieu thereof ``$594,982,000''; and
       (2) by inserting after the item relating to Stennis Space 
     Center, Mississippi, the following new item:


------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                 ``Naval Station,          $4,990,000''.
                                  Pascagoula.                           
------------------------------------------------------------------------

       
       (b) Conforming Amendments.--Section 2204(a) of such Act 
     (110 Stat. 2769) is amended--
       (1) in the matter preceding the paragraphs, by striking out 
     ``$2,213,731,000'' and inserting in lieu thereof 
     ``$2,218,721,000''; and
       (2) in paragraph (1), by striking out ``$579,312,000'' and 
     inserting in lieu thereof ``$584,302,000''.

     SEC. 2206. INCREASE IN AUTHORIZATION FOR MILITARY 
                   CONSTRUCTION PROJECTS AT NAVAL STATION 
                   ROOSEVELT ROADS, PUERTO RICO.

       (a) Increase.--The table in section 2201(b) of the Military 
     Construction Authorization Act for Fiscal Year 1997 (division 
     B of Public Law 104-201; 110 Stat. 2767) is amended--
       (1) by striking out the amount identified as the total and 
     inserting in lieu thereof ``$66,150,000''; and
       (2) in the amount column of the item relating to Naval 
     Station, Roosevelt Roads, Puerto Rico, by striking out 
     ``$23,600,000'' and inserting in lieu thereof 
     ``$24,100,000''.
       (b) Conforming Amendment.--Section 2204(b)(4) of such Act 
     (110 Stat. 2770) is amended by striking out ``$14,100,000'' 
     and inserting in lieu thereof ``$14,600,000''.
                         TITLE XXIII--AIR FORCE
Sec. 2301. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authorization of military construction project at McConnell 
              Air Force Base, Kansas, for which funds have been 
              appropriated.

     SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(1), the Secretary of the Air Force may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:

                   Air Force: Inside the United States                  
------------------------------------------------------------------------
                                     Installation or                    
             State                       Location             Amount    
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $14,874,000
Alaska.........................  Clear Air Station......     $67,069,000
                                 Eielson Air Force Base.     $13,764,000
                                 Elmendorf Air Force          $6,100,000
                                  Base.                                 
                                 Indian Mountain........      $1,991,000
Arizona........................  Luke Air Force Base....     $10,000,000
Arkansas.......................  Little Rock Air Force        $3,400,000
                                  Base.                                 
California.....................  Edwards Air Force Base.      $2,887,000
                                 Vandenberg Air Force        $26,876,000
                                  Base.                                 
Colorado.......................  Buckley Air National         $6,718,000
                                  Guard Base.                           
                                 Falcon Air Force            $10,551,000
                                  Station.                              
                                 Peterson Air Force Base      $4,081,000
                                 United States Air Force     $15,229,000
                                  Academy.                              
Florida........................  Eglin Auxiliary Field 9      $6,470,000
                                 MacDill Air Force Base.      $9,643,000
Georgia........................  Moody Air Force Base...      $6,800,000
                                 Robins Air Force Base..     $27,763,000
Idaho..........................  Mountain Home Air Force     $30,669,000
                                  Base.                                 
Kansas.........................  McConnell Air Force         $14,519,000
                                  Base.                                 
Louisiana......................  Barksdale Air Force         $19,410,000
                                  Base.                                 
Mississippi....................  Keesler Air Force Base.     $30,855,000
Missouri.......................  Whiteman Air Force Base     $17,419,000
Montana........................  Malmstrom Air Force          $4,500,000
                                  Base.                                 
Nevada.........................  Nellis Air Force Base..      $1,950,000
New Jersey.....................  McGuire Air Force Base.     $18,754,000
New Mexico.....................  Kirtland Air Force Base     $20,300,000

[[Page H9174]]

                                                                        
North Carolina.................  Pope Air Force Base....     $10,956,000
North Dakota...................  Grand Forks Air Force        $8,560,000
                                  Base.                                 
                                 Minot Air Force Base...      $5,200,000
Ohio...........................  Wright-Patterson Air        $19,350,000
                                  Force Base.                           
Oklahoma.......................  Altus Air Force Base...     $11,000,000
                                 Tinker Air Force Base..      $9,655,000
                                 Vance Air Force Base...      $7,700,000
South Carolina.................  Shaw Air Force Base....      $6,072,000
South Dakota...................  Ellsworth Air Force          $6,600,000
                                  Base.                                 
Tennessee......................  Arnold Air Force Base..     $20,650,000
Texas..........................  Dyess Air Force Base...     $10,000,000
                                 Laughlin Air Force Base      $4,800,000
                                 Randolph Air Force Base      $2,488,000
Utah...........................  Hill Air Force Base....      $6,470,000
Virginia.......................  Langley Air Force Base.      $4,031,000
Washington.....................  Fairchild Air Force         $20,316,000
                                  Base.                                 
                                 McChord Air Force Base.      $6,470,000
CONUS Classified...............  Classified Location....      $6,175,000
                                                         ---------------
                                   Total................    $559,085,000
------------------------------------------------------------------------

       
       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(2), the Secretary of the Air Force may acquire real 
     property and carry out military construction projects for the 
     installations and locations outside the United States, and in 
     the amounts, set forth in the following table:

                  Air Force: Outside the United States                  
------------------------------------------------------------------------
                                     Installation or                    
            Country                      Location             Amount    
------------------------------------------------------------------------
Germany........................  Spangdahlem Air Base...     $18,500,000
Italy..........................  Aviano Air Base........     $15,220,000
Korea..........................  Kunsan Air Base........     $10,325,000
Portugal.......................  Lajes Field, Azores....      $4,800,000
United Kingdom.................  Royal Air Force,            $11,400,000
                                  Lakenheath.                           
Overseas Classified............  Classified Location....     $29,100,000
                                                         ---------------
                                   Total................     $89,345,000
------------------------------------------------------------------------

     SEC. 2302. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2304(a)(5)(A), the Secretary of the Air Force may 
     construct or acquire family housing units (including land 
     acquisition) at the installations, for the purposes, and in 
     the amounts set forth in the following table:

                                            Air Force: Family Housing                                           
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Purpose                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Edwards Air Force Base...  51 Units.....................      $8,500,000
                                        Travis Air Force Base....  70 Units.....................      $9,714,000
                                        Vandenberg Air Force Base  108 Units....................     $17,100,000
Delaware..............................  Dover Air Force Base.....  Ancillary Facility...........        $831,000
District of Columbia..................  Bolling Air Force Base...  46 Units.....................      $5,100,000
Florida...............................  MacDill Air Force Base...  58 Units.....................     $10,000,000
                                        Tyndall Air Force Base...  32 Units.....................      $4,200,000
Georgia...............................  Robins Air Force Base....  60 Units.....................      $6,800,000
Idaho.................................  Mountain Home Air Force                                                 
                                         Base....................  60 Units.....................     $11,032,000
Kansas................................  McConnell Air Force Base.  19 Units.....................      $2,951,000
                                        McConnell Air Force Base.  Ancillary Facility...........        $581,000
Mississippi...........................  Columbus Air Force Base..  50 Units.....................      $6,200,000
                                        Keesler Air Force Base...  40 Units.....................      $5,000,000
Montana...............................  Malmstrom Air Force Base.  100 Units....................     $17,842,000
New Mexico............................  Kirtland Air Force Base..  180 Units....................     $20,900,000
North Dakota..........................  Grand Forks Air Force                                                   
                                         Base....................  42 Units.....................      $7,936,000
Texas.................................  Dyess Air Force Base.....  70 Units.....................     $10,503,000
                                        Goodfellow Air Force Base  3 Units......................        $500,000
                                        Lackland Air Force Base..  50 Units.....................      $7,400,000
Wyoming...............................  F. E. Warren Air Force                                                  
                                         Base....................  52 Units.....................      $6,853,000
                                                                                                 ---------------
                                                                     Total......................    $159,943,000
----------------------------------------------------------------------------------------------------------------

       
       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(5)(A), the Secretary of the Air Force may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $11,971,000.

     SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2304(a)(5)(A), the Secretary of 
     the Air Force may improve existing military family housing 
     units in an amount not to exceed $123,795,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1997, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Air Force in the total amount of $1,791,640,000 as follows:

[[Page H9175]]

       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $559,085,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $89,345,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $8,545,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $44,880,000.
       (5) For military housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $295,709,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $830,234,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2301 of this Act may not exceed the 
     total amount authorized to be appropriated under paragraphs 
     (1) and (2) of subsection (a).
       (c) Adjustments.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (5) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by--
       (1) $23,858,000, which represents the combination of 
     project savings in military construction resulting from 
     favorable bids, reduced overhead costs, and cancellations due 
     to force structure changes; and
       (2) $12,300,000, which represents the combination of 
     savings resulting from adjustments to foreign currency 
     exchange rates for military construction projects and the 
     support of military family housing outside the United States.

     SEC. 2305. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT 
                   MCCONNELL AIR FORCE BASE, KANSAS, FOR WHICH 
                   FUNDS HAVE BEEN APPROPRIATED.

       (a) Authorization.--The table in section 2301(a) of the 
     Military Construction Authorization Act for Fiscal Year 1997 
     (division B of Public Law 104-201; 110 Stat. 2771) is 
     amended--
       (1) by striking out the amount identified as the total and 
     inserting in lieu thereof ``$610,534,000''; and
       (2) in the amount column of the item relating to McConnell 
     Air Force Base, Kansas, by striking out ``$19,130,000'' and 
     inserting in lieu thereof ``$25,830,000''.
       (b) Conforming Amendments.--Section 2304(a) of such Act 
     (110 Stat. 2774) is amended--
       (1) in the matter preceding paragraph (1), by striking out 
     ``$1,894,594,000'' and inserting in lieu thereof 
     ``$1,901,294,000'' and
       (2) in paragraph (1), by striking out ``$603,834,000'' and 
     inserting in lieu thereof ``$610,534,000''.
                      TITLE XXIV--DEFENSE AGENCIES
Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Clarification of authority relating to fiscal year 1997 
              project at Naval Station, Pearl Harbor, Hawaii.
Sec. 2407. Correction in authorized uses of funds, McClellan Air Force 
              Base, California.
Sec. 2408. Modification of authority to carry out certain fiscal year 
              1995 projects.

     SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2405(a)(1), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations and locations inside the United States, and in 
     the amounts, set forth in the following table:

               Defense Agencies: Inside the United States               
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      Location             Amount    
------------------------------------------------------------------------
Defense Commissary Agency......  Fort Lee, Virginia.....      $9,300,000
Defense Finance and Accounting                                          
 Service.......................  Columbus Center, Ohio..      $9,722,000
                                 Naval Air Station,                     
                                  Millington, Tennessee.      $6,906,000
                                 Naval Station, Norfolk,                
                                  Virginia..............     $12,800,000
                                 Naval Station, Pearl                   
                                  Harbor, Hawaii........     $10,000,000
Defense Intelligence Agency....  Bolling Air Force Base,                
                                  District of Columbia..      $7,000,000
                                 Redstone Arsenal,           $32,700,000
                                  Alabama.                              
Defense Logistics Agency.......  Defense Distribution                   
                                  Depot--DDNV, Virginia.     $16,656,000
                                 Defense Distribution                   
                                  New Cumberland--DDSP,                 
                                  Pennsylvania..........     $15,500,000
                                 Defense Fuel Support                   
                                  Point, Craney Island,                 
                                  Virginia..............     $22,100,000
                                 Defense General Supply                 
                                  Center, Richmond                      
                                  (DLA), Virginia.......      $5,200,000
                                 Elmendorf Air Force                    
                                  Base, Alaska..........     $21,700,000
                                 Naval Air Station,                     
                                  Jacksonville, Florida.      $9,800,000
                                 Truax Field, Wisconsin.      $4,500,000
                                 Westover Air Reserve                   
                                  Base, Massachusetts...      $4,700,000
                                 CONUS Various, CONUS                   
                                  Various...............     $11,275,000
Defense Medical Facilities                                              
 Office........................  Fort Campbell, Kentucky     $13,600,000
                                 Fort Detrick, Maryland.      $4,650,000
                                 Fort Lewis, Washington.      $5,000,000
                                 Hill Air Force Base,         $3,100,000
                                  Utah.                                 
                                 Holloman Air Force                     
                                  Base, New Mexico......      $3,000,000
                                 Lackland Air Force                     
                                  Base, Texas...........      $3,000,000
                                 Marine Corps Combat                    
                                  Development Command,                  
                                  Quantico, Virginia....     $19,000,000
                                 McGuire Air Force Base,                
                                  New Jersey............     $35,217,000
                                 Naval Air Station,                     
                                  Pensacola, Florida....      $2,750,000
                                 Naval Station, Everett,                
                                  Washington............      $7,500,000
                                 Naval Station, San                     
                                  Diego, California.....      $2,100,000
                                 Naval Submarine Base,                  
                                  New London,                           
                                  Connecticut...........      $2,300,000
                                 Robins Air Force Base,                 
                                  Georgia...............     $19,000,000
                                 Wright-Patterson Air                   
                                  Force Base, Ohio......      $2,750,000
National Security Agency.......  Fort Meade, Maryland...     $29,700,000
Special Operations Command.....  Eglin Auxiliary Field        $8,550,000
                                  9, Florida.                           
                                 Fort Benning, Georgia..     $12,314,000
                                 Fort Bragg, North            $9,800,000
                                  Carolina.                             
                                 Mississippi Army                       
                                  Ammunition Plant,                     
                                  Mississippi...........      $9,900,000
                                 Naval Station, Pearl                   
                                  Harbor, Hawaii........      $7,400,000
                                 Naval Amphibious Base,                 
                                  Coronado, California..      $7,400,000
                                                         ---------------
                                   Total................    $407,890,000
------------------------------------------------------------------------

       
       (b) Outside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2405(a)(2), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installation and location outside the United States, and in 
     the amount, set forth in the following table:


[[Page H9176]]



               Defense Agencies: Outside the United States              
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      Location             Amount    
------------------------------------------------------------------------
Defense Logistics Agency.......  Defense Fuel Support                   
                                  Point, Guam...........     $16,000,000
                                                         ---------------
                                   Total................     $16,000,000
------------------------------------------------------------------------

     SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2405(a)(13)(A), the Secretary of 
     Defense may carry out architectural and engineering services 
     and construction design activities with respect to the 
     construction or improvement of military family housing units 
     in an amount not to exceed $50,000.

     SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriation in section 2405(a)(13)(A), the Secretary of 
     Defense may improve existing military family housing units in 
     an amount not to exceed $4,900,000.

     SEC. 2404. ENERGY CONSERVATION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2405(a)(11), the Secretary of 
     Defense may carry out energy conservation projects under 
     section 2865 of title 10, United States Code.

     SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     1997, for military construction, land acquisition, and 
     military family housing functions of the Department of 
     Defense (other than the military departments), in the total 
     amount of $2,743,670,000 as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $407,890,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $16,000,000.
       (3) For military construction projects at Anniston Army 
     Depot, Alabama, ammunition demilitarization facility, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 1993 (division B of the 
     Public Law 102-484; 106 Stat. 2587), which was originally 
     authorized as an Army construction project, but which became 
     a Defense Agencies construction project by reason of the 
     amendments made by section 142 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
     108 Stat. 2689), $9,900,000.
       (4) For military construction projects at Walter Reed Army 
     Institute of Research, Maryland, hospital replacement, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1993 (division B of Public 
     Law 102-484; 106 Stat. 2599), $20,000,000.
       (5) For military construction projects at Umatilla Army 
     Depot, Oregon, authorized by section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Year 1995 (division 
     B of the Public Law 103-337; 108 Stat. 3040), as amended by 
     section 2407 of the Military Construction Authorization Act 
     for Fiscal Year 1996 (division B of Public Law 104-106; 110 
     Stat. 539) and section 2408(2) of this Act, $57,427,000.
       (6) For military construction projects at Defense Finance 
     and Accounting Service, Columbus, Ohio, authorized by section 
     2401(a) of the Military Construction Authorization Act of 
     Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 
     535), $14,200,000.
       (7) For military construction projects at Naval Hospital, 
     Portsmouth, Virginia, hospital replacement, authorized by 
     section 2401(a) of the Military Construction Authorization 
     Act for Fiscal Years 1990 and 1991 (division B of Public Law 
     101-189; 103 Stat. 1640), $17,000,000.
       (8) For contingency construction projects of the Secretary 
     of Defense under section 2804 of title 10, United States 
     Code, $4,000,000.
       (9) For unspecified minor construction projects under 
     section 2805 of title 10, United States Code, $26,075,000.
       (10) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $48,850,000.
       (11) For energy conservation projects authorized by section 
     2404, $25,000,000.
       (12) For base closure and realignment activities as 
     authorized by the Defense Base Closure and Realignment Act of 
     1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
     2687 note), $2,060,854,000.
       (13) For military family housing functions:
       (A) For improvement and planning of military family housing 
     and facilities, $4,950,000.
       (B) For support of military housing (including functions 
     described in section 2833 of title 10, United States Code), 
     $32,724,000 of which not more than $27,673,000 may be 
     obligated or expended for the leasing of military family 
     housing units worldwide.
       (b) Limitation of Total Cost of Construction Projects.--
     Notwithstanding the cost variation authorized by section 2853 
     of title 10, United States Code, and any other cost 
     variations authorized by law, the total cost of all projects 
     carried out under section 2401 of this Act may not exceed the 
     total amount authorized to be appropriated under paragraphs 
     (1) and (2) of subsection (a).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (13) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $1,200,000, which 
     represents the combination of savings resulting from 
     adjustments to foreign currency exchange rates for military 
     construction projects and the support of military family 
     housing outside the United States.

     SEC. 2406. CLARIFICATION OF AUTHORITY RELATING TO FISCAL YEAR 
                   1997 PROJECT AT NAVAL STATION, PEARL HARBOR, 
                   HAWAII.

       The table in section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1997 (division B of Public 
     Law 104-201; 110 Stat. 2775) is amended in the item relating 
     to Special Operations Command, Naval Station, Ford Island, 
     Pearl Harbor, Hawaii, in the installation or location column 
     by striking out ``Naval Station, Ford Island, Pearl Harbor, 
     Hawaii'' and inserting in lieu thereof ``Naval Station, Pearl 
     Harbor, Hawaii''.

     SEC. 2407. CORRECTION IN AUTHORIZED USES OF FUNDS, MCCLELLAN 
                   AIR FORCE BASE, CALIFORNIA.

       (a) Authority To Use Prior Year Funds.--The Secretary of 
     Defense may carry out the military construction projects 
     referred to in subsection (b), in the amounts specified in 
     that subsection, using amounts appropriated pursuant to the 
     authorization of appropriations in section 2405(a)(1) of the 
     Military Construction Authorization Act for Fiscal Year 1995 
     (division B of Public Law 103-337; 108 Stat. 3042) for a 
     military construction project involving the upgrade of the 
     hospital facility at McClellan Air Force Base, California, as 
     authorized by section 2401 of such Act (108 Stat. 3040).
       (b) Covered Projects.--Funds available under subsection (a) 
     may be used for military construction projects as follows:
       (1) Construction of an addition to the Aeromedical Clinic 
     at Anderson Air Base, Guam, $3,700,000.
       (2) Construction of an occupational health clinic facility 
     at Tinker Air Force Base, Oklahoma, $6,500,000.

     SEC. 2408. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 1995 PROJECTS.

       The table in section 2401 of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337; 108 Stat. 3040), as amended by section 2407 of 
     the Military Construction Authorization Act for Fiscal Year 
     1996 (division B of Public Law 104-106; 110 Stat. 539), under 
     the agency heading relating to Chemical Weapons and Munitions 
     Destruction, is amended--
       (1) in the item relating to Pine Bluff Arsenal, Arkansas, 
     by striking out ``$115,000,000'' in the amount column and 
     inserting in lieu thereof ``$134,000,000''; and
       (2) in the item relating to Umatilla Army Depot, Oregon, by 
     striking out ``$186,000,000'' in the amount column and 
     inserting in lieu thereof ``$187,000,000''.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM
Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

     SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       The Secretary of Defense may make contributions for the 
     North Atlantic Treaty Organization Security Investment 
     program as provided in section 2806 of title 10, United 
     States Code, in an amount not to exceed the sum of the amount 
     authorized to be appropriated for this purpose in section 
     2502 and the amount collected from the North Atlantic Treaty 
     Organization as a result of construction previously financed 
     by the United States.

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 1997, for contributions 
     by the Secretary of Defense under section 2806 of title 10, 
     United States Code, for the share of the United States of the 
     cost of projects for the North Atlantic Treaty Organization 
     Security Investment program authorized by section 2501, in 
     the amount of $152,600,000.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES
Sec. 2601. Authorized Guard and Reserve construction and land 
              acquisition projects.
Sec. 2602. Authorization of military construction projects for which 
              funds have been appropriated.
Sec. 2603. Army Reserve construction project, Camp Williams, Utah.

     SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
                   ACQUISITION PROJECTS.

       (a) In General.--There are authorized to be appropriated 
     for fiscal years beginning after September 30, 1997, for the 
     costs of acquisition, architectural and engineering services, 
     and construction of facilities for the Guard and Reserve 
     Forces, and for contributions therefor, under chapter 1803 of 
     title 10, United States Code (including the cost of 
     acquisition of land for those facilities), the following 
     amounts:
       (1) For the Department of the Army--
       (A) for the Army National Guard of the United States, 
     $113,750,000; and

[[Page H9177]]

       (B) for the Army Reserve, $66,267,000.
       (2) For the Department of the Navy, for the Naval and 
     Marine Corps Reserve, $47,329,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $190,444,000; and
       (B) for the Air Force Reserve, $30,243,000.
       (b) Adjustment.--The amount authorized to be appropriated 
     pursuant to subsection (a)(1)(B) is reduced by $7,900,000, 
     which represents the combination of project savings in 
     military construction resulting from favorable bids, reduced 
     overhead costs, and cancellations due to force structure 
     changes.

     SEC. 2602. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECTS 
                   FOR WHICH FUNDS HAVE BEEN APPROPRIATED.

       (a) Army National Guard, Hilo, Hawaii.--Paragraph (1)(A) of 
     section 2601 of the Military Construction Authorization Act 
     for Fiscal Year 1997 (division B of Public Law 104-201; 110 
     Stat. 2780) is amended by striking out ``$59,194,000'' and 
     inserting in lieu thereof ``$65,094,000'' to account for a 
     project involving additions and alterations to an Army 
     aviation support facility in Hilo, Hawaii.
       (b) Naval and Marine Corps Reserve, New Orleans.--Paragraph 
     (2) of such section is amended by striking out 
     ``$32,779,000'' and inserting in lieu thereof ``$37,579,000'' 
     to account for a project for the construction of a bachelor 
     enlisted quarters at Naval Air Station, New Orleans, 
     Louisiana.

     SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, CAMP WILLIAMS, 
                   UTAH.

       With regard to the military construction project for the 
     Army Reserve concerning construction of a reserve center and 
     organizational maintenance shop at Camp Williams, Utah, to be 
     carried out using funds appropriated pursuant to the 
     authorization of appropriations in section 2601(a)(1)(B), the 
     Secretary of the Army shall enter into an agreement with the 
     State of Utah under which the State agrees to provide 
     financial or in-kind contributions toward land acquisition, 
     site preparation, and relocation costs in connection with the 
     project.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS
Sec. 2701. Expiration of authorizations and amounts required to be 
              specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1995 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1994 
              projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1993 
              projects.
Sec. 2705. Extension of authorizations of certain fiscal year 1992 
              projects.
Sec. 2706. Extension of availability of funds for construction of 
              relocatable over-the-horizon radar, Naval Station 
              Roosevelt Roads, Puerto Rico.
Sec. 2707. Effective date.

     SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED 
                   TO BE SPECIFIED BY LAW.

       (a) Expiration of Authorizations After Three Years.--Except 
     as provided in subsection (b), all authorizations contained 
     in titles XXI through XXVI for military construction 
     projects, land acquisition, family housing projects and 
     facilities, and contributions to the North Atlantic Treaty 
     Organization Security Investment program (and authorizations 
     of appropriations therefor) shall expire on the later of--
       (1) October 1, 2000; or
       (2) the date of the enactment of an Act authorizing funds 
     for military construction for fiscal year 2001.
       (b) Exception.--Subsection (a) shall not apply to 
     authorizations for military construction projects, land 
     acquisition, family housing projects and facilities, and 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program (and authorizations of 
     appropriations therefor), for which appropriated funds have 
     been obligated before the later of--
       (1) October 1, 2000; or
       (2) the date of the enactment of an Act authorizing funds 
     for fiscal year 2001 for military construction projects, land 
     acquisition, family housing projects and facilities, or 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program.

     SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1995 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1995 
     (division B of Public Law 103-337; 108 Stat. 3046), 
     authorizations for the projects set forth in the tables in 
     subsection (b), as provided in section 2101, 2201, 2202, 
     2301, 2302, 2401, or 2601 of such Act, shall remain in effect 
     until October 1, 1998, or the date of the enactment of an Act 
     authorizing funds for military construction for fiscal year 
     1999, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:


                                  Army: Extension of 1995 Project Authorization                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Fort Irwin...............  National Training Center                     
                                                                    Airfield Phase I............     $10,000,000
----------------------------------------------------------------------------------------------------------------



                                 Navy: Extension of 1995 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Maryland..............................  Indian Head Naval Surface                                               
                                         Warfare Center..........  Upgrade Power Plant..........      $4,000,000
                                        Indian Head Naval Surface                                               
                                         Warfare Center..........  Denitrification/Acid Mixing                  
                                                                    Facility....................      $6,400,000
Virginia..............................  Norfolk Marine Corps                                                    
                                         Security Force Battalion                                               
                                         Atlantic................  Bachelor Enlisted Quarters...      $6,480,000
Washington............................  Naval Station, Everett...  New Construction (Housing                    
                                                                    Office).....................        $780,000
CONUS Classified......................  Classified Location......  Aircraft Fire and Rescue and                 
                                                                    Vehicle Maintenance                         
                                                                    Facilities..................      $2,200,000
----------------------------------------------------------------------------------------------------------------



                               Air Force: Extension of 1995 Project Authorizations                              
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Beale Air Force Base.....  Consolidated Support Center..     $10,400,000
                                        Los Angeles Air Force                                                   
                                         Station.................  Family Housing (50 units)....      $8,962,000
North Carolina........................  Pope Air Force Base......  Combat Control Team Facility.      $2,450,000
                                        Pope Air Force Base......  Fire Training Facility.......      $1,100,000
----------------------------------------------------------------------------------------------------------------



                           Defense Agencies: Extension of 1995 Project Authorizations                           
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Alabama...............................  Anniston Army Depot......  Carbon Filtration System.....      $5,000,000
Arkansas..............................  Pine Bluff Arsenal.......  Ammunition Demilitarization                  
                                                                    Facility....................    $115,000,000
California............................  Defense Contract                                                        
                                         Management Area Office,                                                
                                         El Segundo..............  Administrative Building......      $5,100,000
Oregon................................  Umatilla Army Depot......  Ammunition Demilitarization                  
                                                                    Facility....................    $186,000,000
----------------------------------------------------------------------------------------------------------------



[[Page H9178]]


                          Army National Guard: Extension of 1995 Project Authorizations                         
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Camp Roberts.............  Modify Record Fire/                          
                                                                    Maintenance Shop............      $3,910,000
                                        Camp Roberts.............  Combat Pistol Range..........        $952,000
Pennsylvania..........................  Fort Indiantown Gap......  Barracks.....................      $6,200,000
----------------------------------------------------------------------------------------------------------------



                             Naval Reserve: Extension of 1995 Project Authorization                             
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
Georgia...............................  Naval Air Station                                                       
                                         Marietta................  Training Center..............      $2,650,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1994 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1994 
     (division B of Public Law 103-160, 107 Stat. 1880), 
     authorizations for the projects set forth in the tables in 
     subsection (b), as provided in section 2201 or 2601 of such 
     Act and extended by section 2702 of the Military Construction 
     Authorization Act for Fiscal Year 1997 (division B of Public 
     Law 104-201; 110 Stat. 2783), shall remain in effect until 
     October 1, 1998, or the date of the enactment of an Act 
     authorizing funds for military construction for fiscal year 
     1999, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:


                                 Navy: Extension of 1994 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or Location             Project                 Amount    
----------------------------------------------------------------------------------------------------------------
California............................  Camp Pendleton Marine                                                   
                                         Corps Base..............  Sewage Facility..............      $7,930,000
Connecticut...........................  New London Naval                                                        
                                         Submarine Base..........  Hazardous Waste Transfer                     
                                                                    Facility....................      $1,450,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1994 Project Authorization                          
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
New Mexico..............................  White Sands Missile Range.  MATES.....................      $3,570,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2704. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1993 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1993 
     (division B of Public Law 102-484; 106 Stat. 2602), the 
     authorizations for the projects set forth in the tables in 
     subsection (b), as provided in section 2101 or 2601 of such 
     Act and extended by section 2702 of the Military Construction 
     Authorization Act for Fiscal Year 1996 (division B of Public 
     Law 104-106; 110 Stat. 541) and section 2703 of the Military 
     Construction Authorization Act for Fiscal Year 1997 (division 
     B of Public Law 104-201; 110 Stat. 2784), shall remain in 
     effect until October 1, 1998, or the date of the enactment of 
     an Act authorizing funds for military construction for fiscal 
     year 1999, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:


                                  Army: Extension of 1993 Project Authorization                                 
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Arkansas................................  Pine Bluff Arsenal........  Ammunition                                
                                                                       Demilitarization Support                 
                                                                       Facility.................     $15,000,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1993 Project Authorization                          
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Alabama.................................  Union Springs.............  Armory....................        $813,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2705. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1992 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1992 
     (division B of Public Law 102-190; 105 Stat. 1535), 
     authorizations for the projects set forth in the table in 
     subsection (b), as provided in section 2101 of such Act and 
     extended by section 2702 of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337; 108 Stat. 3047), section 2703 of the Military 
     Construction Authorization Act for Fiscal Year 1996 (division 
     B of Public Law 104-106; 110 Stat. 543), and section 2704 of 
     the Military Construction Authorization Act for Fiscal Year 
     1997 (division B of Public Law 104-201; 110 Stat. 2785), 
     shall remain in effect until October 1, 1998, or the date of 
     the enactment of an Act authorizing funds for military 
     construction for fiscal year 1999, whichever is later.
       (b) Table.--The table referred to in subsection (a) is as 
     follows:


                                 Army: Extension of 1992 Project Authorizations                                 
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Oregon..................................  Umatilla Army Depot.......  Ammunition                                
                                                                       Demilitarization Support                 
                                                                       Facility.................      $3,600,000
                                          Umatilla Army Depot.......  Ammunition                                
                                                                       Demilitarization                         
                                                                       Utilities................      $7,500,000
----------------------------------------------------------------------------------------------------------------

     SEC. 2706. EXTENSION OF AVAILABILITY OF FUNDS FOR 
                   CONSTRUCTION OF RELOCATABLE OVER-THE-HORIZON 
                   RADAR, NAVAL STATION ROOSEVELT ROADS, PUERTO 
                   RICO.

       Amounts appropriated under the heading ``Drug Interdiction 
     and Counter-Drug Activities, Defense'' in title VI of the 
     Department of Defense Appropriations Act, 1995 (Public Law 
     103-335; 108 Stat. 2615), and transferred to the ``Military 
     Construction, Navy'' appropriation for construction of a 
     relocatable over-the-horizon radar at Naval Station Roosevelt 
     Roads, Puerto Rico, shall remain available for that purpose 
     until the later of--
       (1) October 1, 1998; or
       (2) the date of enactment of an Act authorizing funds for 
     military construction for fiscal year 1999.

[[Page H9179]]

     SEC. 2707. EFFECTIVE DATE.

       Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take 
     effect on the later of--
       (1) October 1, 1997; or
       (2) the date of the enactment of this Act.
                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

Sec. 2801. Use of mobility enhancement funds for unspecified minor 
              construction.
Sec. 2802. Limitation on use of operation and maintenance funds for 
              facility repair projects.
Sec. 2803. Leasing of military family housing, United States Southern 
              Command, Miami, Florida.
Sec. 2804. Use of financial incentives provided as part of energy 
              savings and water conservation activities.
Sec. 2805. Congressional notification requirements regarding use of 
              Department of Defense housing funds for investments in 
              nongovernmental entities.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in ceiling for minor land acquisition projects.
Sec. 2812. Permanent authority regarding conveyance of utility systems.
Sec. 2813. Administrative expenses for certain real property 
              transactions.
Sec. 2814. Screening of real property to be conveyed by Department of 
              Defense.
Sec. 2815. Disposition of proceeds from sale of Air Force Plant 78, 
              Brigham City, Utah.
Sec. 2816. Fire protection and hazardous materials protection at Fort 
              Meade, Maryland.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Consideration of military installations as sites for new 
              Federal facilities.
Sec. 2822. Adjustment and diversification assistance to enhance 
              performance of military family support services by 
              private sector sources.
Sec. 2823. Security, fire protection, and other services at property 
              formerly associated with Red River Army Depot, Texas.
Sec. 2824. Report on closure and realignment of military installations.
Sec. 2825. Sense of Senate regarding utilization of savings derived 
              from base closure process.
Sec. 2826. Prohibition against certain conveyances of property at Naval 
              Station, Long Beach, California.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. [S2820. Land conveyance, Army Reserve Center, Greensboro, 
              Alabama.
Sec. 2832. [H2831. Land conveyance, James T. Coker Army Reserve Center, 
              Durant, Oklahoma.
Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago, 
              Illinois.
Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.
Sec. 2835. Land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyances, Fort Bragg, North Carolina.
Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot, Mineral 
              County, Nevada.
Sec. 2838. Expansion of land conveyance authority, Indiana Army 
              Ammunition Plant, Charlestown, Indiana.
Sec. 2839. Modification of land conveyance, Lompoc, California.
Sec. 2840. Modification of land conveyance, Rocky Mountain Arsenal, 
              Colorado.
Sec. 2841. Correction of land conveyance authority, Army Reserve 
              Center, Anderson, South Carolina.

                       Part II--Navy Conveyances

Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station, 
              Brunswick, Maine.
Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant No. 
              464, Oyster Bay, New York.
Sec. 2853. Correction of lease authority, Naval Air Station, Meridian, 
              Mississippi.

                    Part III--Air Force Conveyances

Sec. 2861. [H2861. Land transfer, Eglin Air Force Base, Florida.
Sec. 2862. [H2863. Land conveyance, March Air Force Base, California.
Sec. 2863. [H2864/S2818. Land conveyance, Ellsworth Air Force Base, 
              South Dakota.
Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.
Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and Havre 
              Training Site, Montana.
Sec. 2866. Land conveyance, Charleston Family Housing Complex, Bangor, 
              Maine.
Sec. 2867. Study of land exchange options, Shaw Air Force Base, South 
              Carolina.

                       Subtitle E--Other Matters

Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.
Sec. 2872. Long-term lease of property, Naples, Italy.
Sec. 2873. [H2883. Designation of military family housing at Lackland 
              Air Force Base, Texas, in honor of Frank Tejeda, a former 
              Member of the House of Representatives.
Sec. 2874. Fiber-optics based telecommunications linkage of military 
              installations.
 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

     SEC. 2801. USE OF MOBILITY ENHANCEMENT FUNDS FOR UNSPECIFIED 
                   MINOR CONSTRUCTION.

       (a) Congressional Notification.--Subsection (b)(1) of 
     section 2805 of title 10, United States Code, is amended by 
     adding at the end the following new sentence: ``This 
     paragraph shall apply even though the project is to be 
     carried out using funds made available to enhance the 
     deployment and mobility of military forces and supplies.''.
       (b) Restriction on Use of Operation and Maintenance 
     Funds.--Subsection (c) of such section is amended--
       (1) in paragraph (1), by striking out ``paragraph (2)'' and 
     inserting in lieu thereof ``paragraphs (2) and (3)''; and
       (2) by adding at the end the following new paragraph:
       ``(3) The limitations specified in paragraph (1) shall not 
     apply to an unspecified minor military construction project 
     if the project is to be carried out using funds made 
     available to enhance the deployment and mobility of military 
     forces and supplies.''.
       (c) Technical Amendments.--Such section is further 
     amended--
       (1) in subsection (a)(1)--
       (A) by striking out ``minor military construction 
     projects'' in the first sentence and inserting in lieu 
     thereof ``unspecified minor military construction projects'';
       (B) by striking out ``A minor'' in the second sentence and 
     inserting in lieu thereof ``An unspecified minor''; and
       (C) by striking out ``a minor'' in the last sentence and 
     inserting in lieu thereof ``an unspecified minor'';
       (2) in subsection (b)(1), by striking out ``A minor'' and 
     inserting in lieu thereof ``An unspecified minor'';
       (3) in subsection (b)(2), by striking out ``a minor'' and 
     inserting in lieu thereof ``an unspecified minor''; and
       (4) in subsection (c), by striking out ``unspecified 
     military'' each place it appears and inserting in lieu 
     thereof ``unspecified minor military''.

     SEC. 2802. LIMITATION ON USE OF OPERATION AND MAINTENANCE 
                   FUNDS FOR FACILITY REPAIR PROJECTS.

       Section 2811 of title 10, United States Code, is amended by 
     adding at the end the following new subsections:
       ``(d) Congressional Notification.--When a decision is made 
     to carry out a repair project under this section with an 
     estimated cost in excess of $10,000,000, the Secretary 
     concerned shall submit to the appropriate committees of 
     Congress a report containing--
       ``(1) the justification for the repair project and the 
     current estimate of the cost of the project; and
       ``(2) the justification for carrying out the project under 
     this section.
       ``(e) Repair Project Defined.--In this section, the term 
     `repair project' means a project to restore a real property 
     facility, system, or component to such a condition that it 
     may effectively be used for its designated functional 
     purpose.''.

     SEC. 2803. LEASING OF MILITARY FAMILY HOUSING, UNITED STATES 
                   SOUTHERN COMMAND, MIAMI, FLORIDA.

       (a) Leases to Exceed Maximum Rental.--Section 2828(b) of 
     title 10, United States Code, is amended--
       (1) in paragraph (2), by striking out ``paragraph (3)'' and 
     inserting in lieu thereof ``paragraphs (3) and (4)'';
       (2) by redesignating paragraph (4) as paragraph (5); and
       (3) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) The Secretary of the Army may lease not more than 
     eight housing units in the vicinity of Miami, Florida, for 
     key and essential personnel, as designated by the Secretary, 
     for the United States Southern Command for which the 
     expenditure for the rental of such units (including the cost 
     of utilities, maintenance, and operation, including security 
     enhancements) exceeds the expenditure limitations in 
     paragraphs (2) and (3). The total amount for all leases under 
     this paragraph may not exceed $280,000 per year, and no lease 
     on any individual housing unit may exceed $60,000 per 
     year.''.
       (b) Conforming Amendment.--Paragraph (5) of such section, 
     as redesignated by subsection (a)(2), is amended by striking 
     out ``paragraphs (2) and (3)'' and inserting in lieu thereof 
     ``paragraphs (2), (3), and (4)''.

     SEC. 2804. USE OF FINANCIAL INCENTIVES PROVIDED AS PART OF 
                   ENERGY SAVINGS AND WATER CONSERVATION 
                   ACTIVITIES.

       (a) Energy Savings.--Section 2865 of title 10, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking out ``and financial 
     incentives described in subsection (d)(2)'';
       (B) in paragraph (2), by striking out ``section 2866(b)'' 
     both places it appears and inserting in lieu thereof 
     ``section 2866(a)(3)''; and
       (C) by adding at the end the following new paragraph:
       ``(3) Financial incentives received from gas or electric 
     utilities under subsection (d)(2), and from utilities for 
     management of water demand or water conservation under 
     section 2866(a)(2) of this title, shall be credited to an 
     appropriation designated by the Secretary of Defense. Amounts 
     so credited shall be merged with the appropriation to which 
     credited and shall be available for the same purposes and the 
     same period as the appropriation with which merged.''; and

[[Page H9180]]

       (2) in subsection (f), by adding at the end the following 
     new sentence: ``The Secretary shall also include in each 
     report the types and amount of financial incentives received 
     under subsection (d)(2) and section 2866(a)(2) of this title 
     during the period covered by the report and the appropriation 
     account or accounts to which the incentives were credited.''.
       (b) Water Conservation.--Section 2866(b) of such title is 
     amended to read as follows:
       ``(b) Use of Financial Incentives and Water Cost Savings.--
     (1) Financial incentives received under subsection (a)(2) 
     shall be used as provided in section 2865(b)(3) of this 
     title.
       ``(2) Water cost savings realized under subsection (a)(3) 
     shall be used as provided in section 2865(b)(2) of this 
     title.''.

     SEC. 2805. CONGRESSIONAL NOTIFICATION REQUIREMENTS REGARDING 
                   USE OF DEPARTMENT OF DEFENSE HOUSING FUNDS FOR 
                   INVESTMENTS IN NONGOVERNMENTAL ENTITIES.

       Section 2875 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(e) Congressional Notification Required.--Amounts in the 
     Department of Defense Family Housing Improvement Fund or the 
     Department of Defense Military Unaccompanied Housing 
     Improvement Fund may be used to make a cash investment under 
     this section in a nongovernmental entity only after the end 
     of the 30-day period beginning on the date the Secretary of 
     Defense submits written notice of, and justification for, the 
     investment to the appropriate committees of Congress.''.
        Subtitle B--Real Property And Facilities Administration

     SEC. 2811. INCREASE IN CEILING FOR MINOR LAND ACQUISITION 
                   PROJECTS.

       (a) Increase.--Section 2672 of title 10, United States 
     Code, is amended by striking out ``$200,000'' both places it 
     appears in subsection (a) and inserting in lieu thereof 
     ``$500,000''.
       (b) Clerical Amendments.--(1) The section heading for such 
     section is amended to read as follows:

     ``Sec. 2672. Acquisition: interests in land when cost is not 
       more than $500,000''.

       (2) The table of sections at the beginning of chapter 159 
     of such title is amended by striking out the item relating to 
     section 2672 and inserting in lieu thereof the following new 
     item:

``2672. Acquisition: interests in land when cost is not more than 
              $500,000.''.

     SEC. 2812. PERMANENT AUTHORITY REGARDING CONVEYANCE OF 
                   UTILITY SYSTEMS.

       (a) In General.--Chapter 159 of title 10, United States 
     Code, is amended by inserting after section 2687 the 
     following new section:

     ``Sec. 2688. Utility systems: conveyance authority

       ``(a) Conveyance Authority.--The Secretary of a military 
     department may convey a utility system, or part of a utility 
     system, under the jurisdiction of the Secretary to a 
     municipal, private, regional, district, or cooperative 
     utility company or other entity. The conveyance may consist 
     of all right, title, and interest of the United States in 
     the utility system or such lesser estate as the Secretary 
     considers appropriate to serve the interests of the United 
     States.
       ``(b) Selection of Conveyee.--If more than one utility or 
     entity referred to in subsection (a) notifies the Secretary 
     concerned of an interest in a conveyance under such 
     subsection, the Secretary shall carry out the conveyance 
     through the use of competitive procedures.
       ``(c) Consideration.--(1) The Secretary concerned shall 
     require as consideration for a conveyance under subsection 
     (a) an amount equal to the fair market value (as determined 
     by the Secretary) of the right, title, or interest of the 
     United States conveyed. The consideration may take the form 
     of--
       ``(A) a lump sum payment; or
       ``(B) a reduction in charges for utility services provided 
     by the utility or entity concerned to the military 
     installation at which the utility system is located.
       ``(2) If the utility services proposed to be provided as 
     consideration under paragraph (1) are subject to regulation 
     by a Federal or State agency, any reduction in the rate 
     charged for the utility services shall be subject to 
     establishment or approval by that agency.
       ``(d) Treatment of Payments.--(1) A lump sum payment 
     received under subsection (c) shall be credited, at the 
     election of the Secretary concerned--
       ``(A) to an appropriation of the military department 
     concerned available for the procurement of the same utility 
     services as are provided by the utility system conveyed under 
     this section;
       ``(B) to an appropriation of the military department 
     available for carrying out energy savings projects or water 
     conservation projects; or
       ``(C) to an appropriation of the military department 
     available for improvements to other utility systems.
       ``(2) Amounts so credited shall be merged with funds in the 
     appropriation to which credited and shall be available for 
     the same purposes, and subject to the same conditions and 
     limitations, as the appropriation with which merged.
       ``(e) Notice-and-Wait Requirement.--The Secretary concerned 
     may not make a conveyance under subsection (a) until--
       ``(1) the Secretary submits to the Committee on Armed 
     Services and the Committee on Appropriations of the Senate 
     and the Committee on National Security and the Committee on 
     Appropriations of the House of Representatives an economic 
     analysis (based upon accepted life-cycle costing procedures 
     approved by the Secretary of Defense) demonstrating that--
       ``(A) the long-term economic benefit of the conveyance to 
     the United States exceeds the long-term economic cost of the 
     conveyance to the United States; and
       ``(B) the conveyance will reduce the long-term costs of the 
     United States for utility services provided by the utility 
     system concerned; and
       ``(2) a period of 21 days has elapsed after the date on 
     which the economic analysis is received by the committees.
       ``(f) Additional Terms and Conditions.--The Secretary 
     concerned may require such additional terms and conditions in 
     connection with a conveyance under subsection (a) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.
       ``(g) Utility System Defined.--(1) In this section, the 
     term `utility system' means any of the following:
       ``(A) A system for the generation and supply of electric 
     power.
       ``(B) A system for the treatment or supply of water.
       ``(C) A system for the collection or treatment of 
     wastewater.
       ``(D) A system for the generation or supply of steam, hot 
     water, and chilled water.
       ``(E) A system for the supply of natural gas.
       ``(F) A system for the transmission of telecommunications.
       ``(2) The term `utility system' includes the following:
       ``(A) Equipment, fixtures, structures, and other 
     improvements utilized in connection with a system referred to 
     in paragraph (1).
       ``(B) Easements and rights-of-ways associated with a system 
     referred to in that paragraph.
       ``(h) Limitation.--This section shall not apply to projects 
     constructed or operated by the Army Corps of Engineers under 
     its civil works authorities.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2687 the following new item:

``2688. Utility systems: conveyance authority.''.

     SEC. 2813. ADMINISTRATIVE EXPENSES FOR CERTAIN REAL PROPERTY 
                   TRANSACTIONS.

       (a) Acceptance Authorized.--Chapter 159 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 2695. Acceptance of funds to cover administrative 
       expenses relating to certain real property transactions

       ``(a) Authority To Accept.--In connection with a real 
     property transaction referred to in subsection (b) with a 
     non-Federal person or entity, the Secretary of a military 
     department may accept amounts provided by the person or 
     entity to cover administrative expenses incurred by the 
     Secretary in entering into the transaction.
       ``(b) Covered Transactions.--Subsection (a) applies to the 
     following transactions:
       ``(1) The exchange of real property.
       ``(2) The grant of an easement over, in, or upon real 
     property of the United States.
       ``(3) The lease or license of real property of the United 
     States.
       ``(c) Use of Amounts Collected.--Amounts collected under 
     subsection (a) for administrative expenses shall be credited 
     to the appropriation, fund, or account from which the 
     expenses were paid. Amounts so credited shall be merged with 
     funds in such appropriation, fund, or account and shall be 
     available for the same purposes and subject to the same 
     limitations as the funds with which merged.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 159 of such title is amended by adding 
     at the end the following new item:

``2695. Acceptance of funds to cover administrative expenses relating 
              to certain real property transactions.''.

     SEC. 2814. SCREENING OF REAL PROPERTY TO BE CONVEYED BY 
                   DEPARTMENT OF DEFENSE.

       (a) Requirement.--(1) Chapter 159 of title 10, United 
     States Code, is amended by inserting after section 2695, as 
     added by section 2813, the following new section:

     ``Sec. 2696. Screening of real property for further Federal 
       use before conveyance

       ``(a) Screening Requirement.--The Secretary concerned may 
     not convey real property that is authorized or required to be 
     conveyed, whether for or without consideration, by any 
     provision of law unless the Administrator of General Services 
     has screened the property for further Federal use in 
     accordance with the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 471 et seq.).
       ``(b) Time for Screening.--(1) Before the end of the 30-day 
     period beginning on the date of the enactment of a provision 
     of law authorizing or requiring the conveyance of a parcel of 
     real property by the Secretary concerned, the Administrator 
     of General Services shall complete the screening required by 
     paragraph (1) with regard to the real property and notify the 
     Secretary concerned of the results of the screening. The 
     notice shall include--
       ``(A) the name of the Federal agency requesting transfer of 
     the property;
       ``(B) the proposed use to be made of the property by the 
     Federal agency; and
       ``(C) the fair market value of the property, including any 
     improvements thereon, as estimated by the Administrator.
       ``(2) If the Administrator fails to complete the screening 
     and notify the Secretary concerned within such period, the 
     Secretary concerned shall proceed with the conveyance of the 
     real property as provided in the provision of law authorizing 
     or requiring the conveyance.
       ``(c) Notice of Further Federal Use.--If the Administrator 
     of General Services notifies the Secretary concerned under 
     subsection (b) that further Federal use of a parcel of real 
     property authorized or required to be conveyed by any 
     provision of law is requested by a Federal agency, the 
     Secretary concerned shall submit a copy of the notice to 
     Congress.

[[Page H9181]]

       ``(d) Congressional Disapproval.--If the Secretary 
     concerned submits a notice under subsection (c) with regard 
     to a parcel of real property, the Secretary concerned may not 
     proceed with the conveyance of the real property as provided 
     in the provision of law authorizing or requiring the 
     conveyance if Congress enacts a law rescinding the conveyance 
     authority or requirement before the end of the 180-day period 
     beginning on the date on which the Secretary concerned 
     submits the notice.
       ``(e) Excepted Conveyance Authorities.--The screening 
     requirements of this section shall not apply to real property 
     authorized or required to be conveyed under any of the 
     following provisions of law:
       ``(1) Section 2687 of this title.
       ``(2) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).
       ``(3) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).
       ``(4) Any provision of law authorizing the closure or 
     realignment of a military installation that is enacted after 
     the date of enactment of the National Defense Authorization 
     Act for Fiscal Year 1998.
       ``(5) Title II of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 481 et seq.).
       ``(6) Any specific provision of law authorizing or 
     requiring the transfer of administrative jurisdiction over a 
     parcel of real property between Federal agencies.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2695, as added by section 2813, the following new item:

``2696. Screening of real property for further Federal use before 
              conveyance.''.

       (b) Applicability.--Section 2696 of title 10, United States 
     Code, as added by subsection (a) of this section, shall apply 
     with respect to any real property authorized or required to 
     be conveyed under a provision of law covered by such section 
     that is enacted after December 31, 1997.

     SEC. 2815. DISPOSITION OF PROCEEDS OF SALE OF AIR FORCE PLANT 
                   NO. 78, BRIGHAM CITY, UTAH.

       Notwithstanding section 204(h)(2)(A) of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     485(h)(2)(A)), the entire amount deposited by the 
     Administrator of General Services in the special account in 
     the Treasury (established under section 204(h)(2) of such 
     Act) as a result of the sale of Air Force Plant No. 78, 
     Brigham City, Utah, shall be available, to the extent 
     provided in appropriations Acts, to the Secretary of the Air 
     Force for facility maintenance, facility repair, and 
     environmental restoration at other industrial plants of the 
     Air Force.

     SEC. 2816. FIRE PROTECTION AND HAZARDOUS MATERIALS PROTECTION 
                   AT FORT MEADE, MARYLAND.

       (a) Plan.--Not later than 120 days after the date of the 
     enactment of this Act, the Secretary of the Army shall submit 
     to the congressional defense committees a plan to address the 
     requirements for fire protection services and hazardous 
     materials protection services at Fort Meade, Maryland, 
     including the National Security Agency at Fort Meade, as 
     identified in the preparedness evaluation report of the Army 
     Corps of Engineers regarding Fort Meade.
       (b) Elements.--The plan shall include the following:
       (1) A schedule for the implementation of the plan.
       (2) A detailed list of funding options available to provide 
     centrally located, modern facilities and equipment to meet 
     current requirements for fire protection services and 
     hazardous materials protection services at Fort Meade.
            Subtitle C--Defense Base Closure and Realignment

     SEC. 2821. CONSIDERATION OF MILITARY INSTALLATIONS AS SITES 
                   FOR NEW FEDERAL FACILITIES.

       (a) 1988 Law.--Section 204(b)(5) of the Defense 
     Authorization Amendments and Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note) is amended--
       (1) in subparagraph (A), by striking out ``subparagraph 
     (B)'' and inserting in lieu thereof ``subparagraphs (B) and 
     (C)''; and
       (2) by adding at the end the following new subparagraph:
       ``(C)(i) Before acquiring non-Federal real property as the 
     location for a new or replacement Federal facility of any 
     type, the head of the Federal agency acquiring the property 
     shall consult with the Secretary regarding the feasibility 
     and cost advantages of using Federal property or facilities 
     at a military installation closed or realigned or to be 
     closed or realigned under this title as the location for the 
     new or replacement facility. In considering the availability 
     and suitability of a specific military installation, the 
     Secretary and the head of the Federal agency involved shall 
     obtain the concurrence of the redevelopment authority with 
     respect to the installation and comply with the redevelopment 
     plan for the installation.
       ``(ii) Not later than 30 days after acquiring non-Federal 
     real property as the location for a new or replacement 
     Federal facility, the head of the Federal agency acquiring 
     the property shall submit to Congress a report containing the 
     results of the consultation under clause (i) and the reasons 
     why military installations referred to in such clause that 
     are located within the area to be served by the new or 
     replacement Federal facility or within a 200-mile radius 
     of the new or replacement facility, whichever area is 
     greater, were considered to be unsuitable or unavailable 
     for the site of the new or replacement facility.
       ``(iii) This subparagraph shall apply during the period 
     beginning on the date of the enactment of the National 
     Defense Authorization Act for Fiscal Year 1998 and ending on 
     July 31, 2001.''.
       (b) 1990 Law.--Section 2905(b)(5) of the Defense Base 
     Closure and Realignment Act of 1990 (Public Law 101-510; 10 
     U.S.C. 2687 note) is amended--
       (1) in subparagraph (A), by striking out ``subparagraph 
     (B)'' and inserting in lieu thereof ``subparagraphs (B) and 
     (C)''; and
       (2) by adding at the end the following new subparagraph:
       ``(C)(i) Before acquiring non-Federal real property as the 
     location for a new or replacement Federal facility of any 
     type, the head of the Federal agency acquiring the property 
     shall consult with the Secretary regarding the feasibility 
     and cost advantages of using Federal property or facilities 
     at a military installation closed or realigned or to be 
     closed or realigned under this part as the location for the 
     new or replacement facility. In considering the availability 
     and suitability of a specific military installation, the 
     Secretary and the head of the Federal agency involved shall 
     obtain the concurrence of the redevelopment authority with 
     respect to the installation and comply with the redevelopment 
     plan for the installation.
       ``(ii) Not later than 30 days after acquiring non-Federal 
     real property as the location for a new or replacement 
     Federal facility, the head of the Federal agency acquiring 
     the property shall submit to Congress a report containing the 
     results of the consultation under clause (i) and the reasons 
     why military installations referred to in such clause that 
     are located within the area to be served by the new or 
     replacement Federal facility or within a 200-mile radius of 
     the new or replacement facility, whichever area is greater, 
     were considered to be unsuitable or unavailable for the site 
     of the new or replacement facility.
       ``(iii) This subparagraph shall apply during the period 
     beginning on the date of the enactment of the National 
     Defense Authorization Act for Fiscal Year 1998 and ending on 
     July 31, 2001.''.

     SEC. 2822. ADJUSTMENT AND DIVERSIFICATION ASSISTANCE TO 
                   ENHANCE PERFORMANCE OF MILITARY FAMILY SUPPORT 
                   SERVICES BY PRIVATE SECTOR SOURCES.

       Section 2391(b)(5) of title 10, United States Code, is 
     amended by adding at the end the following new subparagraph:
       ``(C) The Secretary of Defense may also make grants, 
     conclude cooperative agreements, and supplement other Federal 
     funds in order to assist a State or local government in 
     enhancing the capabilities of the government to support 
     efforts of the Department of Defense to privatize, contract 
     for, or diversify the performance of military family support 
     services in cases in which the capability of the Department 
     to provide such services is adversely affected by an action 
     described in paragraph (1).''.

     SEC. 2823. SECURITY, FIRE PROTECTION, AND OTHER SERVICES AT 
                   PROPERTY FORMERLY ASSOCIATED WITH RED RIVER 
                   ARMY DEPOT, TEXAS.

       (a) Authority To Enter into Agreement.--(1) The Secretary 
     of the Army may enter into an agreement with the local 
     redevelopment authority for Red River Army Depot, Texas, 
     under which agreement the Secretary provides security 
     services, fire protection services, or hazardous material 
     response services for the authority with respect to the 
     property at the depot that is under the jurisdiction of the 
     authority as a result of the realignment of the depot under 
     the base closure laws.
       (2) The Secretary may not enter into the agreement unless 
     the Secretary determines that the provision of services under 
     the agreement is in the best interests of the United States.
       (b) Reimbursement.--The agreement under subsection (a) 
     shall provide for reimbursing the Secretary for the services 
     provided by the Secretary under the agreement.
       (c) Treatment of Reimbursement.--Any amounts received by 
     the Secretary under subsection (b) as reimbursement for 
     services provided under the agreement entered into under 
     subsection (a) shall be credited to the appropriations 
     providing funds for the services. Amounts so credited shall 
     be merged with the appropriations to which credited and shall 
     be available for the purposes, and subject to the conditions 
     and limitations, for which such appropriations are available.

     SEC. 2824. REPORT ON CLOSURE AND REALIGNMENT OF MILITARY 
                   INSTALLATIONS.

       (a) Report.--(1) The Secretary of Defense shall prepare and 
     submit to the congressional defense committees a report on 
     the costs and savings attributable to the rounds of base 
     closures and realignments conducted under the base closure 
     laws and on the need, if any, for additional rounds of base 
     closures and realignments.
       (2) For purposes of this section, the term ``base closure 
     laws'' means--
       (A) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note); and
       (B) the Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).
       (b) Elements.--The report under subsection (a) shall 
     include the following:
       (1) A statement, using data consistent with budget data, of 
     the actual costs and savings (to the extent available for 
     prior fiscal years) and the estimated costs and savings (in 
     the case of future fiscal years) attributable to the closure 
     and realignment of military installations as a result of the 
     base closure laws.
       (2) A comparison, set forth by base closure round, of the 
     actual costs and savings stated

[[Page H9182]]

     under paragraph (1) to the estimates of costs and savings 
     submitted to the Defense Base Closure and Realignment 
     Commission as part of the base closure process.
       (3) A comparison, set forth by base closure round, of the 
     actual costs and savings stated under paragraph (1) to the 
     annual estimates of costs and savings previously submitted to 
     Congress.
       (4) A list of each military installation at which there is 
     authorized to be employed 300 or more civilian personnel, set 
     forth by Armed Force.
       (5) An estimate of current excess capacity at military 
     installations, set forth--
       (A) as a percentage of the total capacity of the military 
     installations of the Armed Forces with respect to all 
     military installations of the Armed Forces;
       (B) as a percentage of the total capacity of the military 
     installations of each Armed Force with respect to the 
     military installations of such Armed Force; and
       (C) as a percentage of the total capacity of a type of 
     military installations with respect to military installations 
     of such type.
       (6) An assessment of the effect of the previous base 
     closure rounds on military capabilities and the ability of 
     the Armed Forces to fulfill the National Military Strategy.
       (7) A description of the types of military installations 
     that would be recommended for closure or realignment in the 
     event of one or more additional base closure rounds, set 
     forth by Armed Force.
       (8) The criteria to be used by the Secretary in evaluating 
     military installations for closure or realignment in such 
     event.
       (9) The methodologies to be used by the Secretary in 
     identifying military installations for closure or realignment 
     in such event.
       (10) An estimate of the costs and savings that the 
     Secretary believes will be achieved as a result of the 
     closure or realignment of military installations in such 
     event, set forth by Armed Force and by year.
       (11) An assessment of whether the costs and estimated 
     savings from one or more future rounds of base closures and 
     realignments, currently unauthorized, are already contained 
     in the current Future Years Defense Plan, and, if not, 
     whether the Secretary will recommend modifications in future 
     defense spending in order to accommodate such costs and 
     savings.
       (c) Method of Presenting Information.--The statement and 
     comparison required by paragraphs (1) and (2) of subsection 
     (b) shall be set forth by Armed Force, type of facility, and 
     fiscal year, and include the following:
       (1) Operation and maintenance costs, including costs 
     associated with expanded operations and support, maintenance 
     of property, administrative support, and allowances for 
     housing at military installations to which functions are 
     transferred as a result of the closure or realignment of 
     other installations.
       (2) Military construction costs, including costs associated 
     with rehabilitating, expanding, and constructing facilities 
     to receive personnel and equipment that are transferred to 
     military installations as a result of the closure or 
     realignment of other installations.
       (3) Environmental cleanup costs, including costs associated 
     with assessments and restoration.
       (4) Economic assistance costs, including--
       (A) expenditures on Department of Defense demonstration 
     projects relating to economic assistance;
       (B) expenditures by the Office of Economic Adjustment; and
       (C) to the extent available, expenditures by the Economic 
     Development Administration, the Federal Aviation 
     Administration, and the Department of Labor relating to 
     economic assistance.
       (5) To the extent information is available, unemployment 
     compensation costs, early retirement benefits (including 
     benefits paid under section 5597 of title 5, United States 
     Code), and worker retraining expenses under the Priority 
     Placement Program, the Job Training Partnership Act, and any 
     other Federally-funded job training program.
       (6) Costs associated with military health care.
       (7) Savings attributable to changes in military force 
     structure.
       (8) Savings due to lower support costs with respect to 
     military installations that are closed or realigned.
       (d) Deadline.--The Secretary shall submit the report under 
     subsection (a) not later than the date on which the President 
     submits to Congress the budget for fiscal year 2000 under 
     section 1105(a) of title 31, United States Code.
       (e) Review.--The Congressional Budget Office and the 
     Comptroller General shall conduct a review of the report 
     prepared under subsection (a).
       (f) Prohibition on Use of Funds.--Except as necessary to 
     prepare the report required subsection (a), no funds 
     authorized to be appropriated or otherwise made available to 
     the Department of Defense by this Act or any other Act may be 
     used for the purposes of planning for, or collecting data in 
     anticipation of, an authorization providing for procedures 
     under which the closure and realignment of military 
     installations may be accomplished, until the later of--
       (1) the date on which the Secretary submits the report 
     required by subsection (a); and
       (2) the date on which the Congressional Budget Office and 
     the Comptroller General complete a review of the report under 
     subsection (e).
       (g) Sense of Congress.--It is the sense of the Congress 
     that--
       (1) the Secretary should develop a system having the 
     capacity to quantify the actual costs and savings 
     attributable to the closure and realignment of military 
     installations pursuant to the base closure process; and
       (2) the Secretary should develop the system in expedient 
     fashion, so that the system may be used to quantify costs and 
     savings attributable to the 1995 base closure round.

     SEC. 2825. SENSE OF SENATE REGARDING UTILIZATION OF SAVINGS 
                   DERIVED FROM BASE CLOSURE PROCESS.

       (a) Findings.--The Senate makes the following findings:
       (1) Since 1988, the Department of Defense has conducted 
     four rounds of closures and realignments of military 
     installations in the United States, resulting in the closure 
     of 97 installations.
       (2) The cost of carrying out the closure or realignment of 
     installations covered by such rounds is estimated by the 
     Secretary of Defense to be $23,000,000,000.
       (3) The savings expected as a result of the closure or 
     realignment of such installations are estimated by the 
     Secretary to be $10,300,000,000 through fiscal year 1996 and 
     $36,600,000,000 through 2001.
       (4) In addition to such savings, the Secretary has 
     estimated recurring savings as a result of the closure or 
     realignment of such installations of approximately 
     $5,600,000,000 annually.
       (5) The fiscal year 1997 budget request for the Department 
     assumed a savings of between $2,000,000,000 and 
     $3,000,000,000 as a result of the closure or realignment of 
     such installations, which savings were to be dedicated to the 
     modernization of the Armed Forces. The savings assumed in the 
     budget request were not realized.
       (6) The fiscal year 1998 budget request for the Department 
     assumes a savings of $5,000,000,000 as a result of the 
     closure or realignment of such installations, which savings 
     are to be dedicated to the modernization of the Armed Forces.
       (b) Sense of Senate on Use of Savings Resulting from Base 
     Closure Process.--It is the sense of the Senate that the 
     savings identified in the report under section 2824 should be 
     made available to the Department of Defense solely for 
     purposes of the modernization of new weapon systems 
     (including research, development, test, and evaluation 
     relating to such modernization) and should be used by the 
     Department solely for such purposes.

     SEC. 2826. PROHIBITION AGAINST CERTAIN CONVEYANCES OF 
                   PROPERTY AT NAVAL STATION, LONG BEACH, 
                   CALIFORNIA.

       (a) Prohibition Against Direct Conveyance.--In disposing of 
     real property in connection with the closure of Naval 
     Station, Long Beach, California, under the Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510; 10 U.S.C. 2687 note), the Secretary of 
     the Navy may not convey any portion of the property (by sale, 
     lease, or other method) to the China Ocean Shipping Company 
     or any legal successor or subsidiary of that Company (in this 
     section referred to as ``COSCO'').
       (b) Prohibition Against Indirect Conveyance.--The Secretary 
     of the Navy shall impose as a condition on each conveyance of 
     real property located at Naval Station, Long Beach, 
     California, the requirement that the property may not be 
     subsequently conveyed (by sale, lease, or other method) to 
     COSCO.
       (c) Reversionary Interest.--If the Secretary of the Navy 
     determines at any time that real property located at Naval 
     Station, Long Beach, California, and conveyed under the 
     Defense Base Closure and Realignment Act of 1990 has been 
     conveyed to COSCO in violation of subsection (b) or is 
     otherwise being used by COSCO in violation of such 
     subsection, all right, title, and interest in and to the 
     property shall revert to the United States, and the United 
     States shall have immediate right of entry thereon.
       (d) National Security Report and Determination.--Not later 
     than 30 days after the date of the enactment of this Act, the 
     Secretary of Defense and the Director of the Federal Bureau 
     of Investigation shall separately submit to the President and 
     the congressional defense committees a report regarding the 
     potential national security implications of conveying 
     property described in subsection (a) to COSCO. Each report 
     shall specifically identify any increased risk of 
     espionage, arms smuggling, or other illegal activities 
     that could result from a conveyance to COSCO and recommend 
     appropriate action to address any such risk.
       (e) Waiver Authority.--(1) The President may waive the 
     prohibitions contained in this section with respect to a 
     conveyance of property described in subsection (a) to COSCO 
     if the President determines that--
       (A) appropriate action has been taken to address any 
     increased national security risk identified in the reports 
     required by subsection (d); and
       (B) the conveyance would not adversely affect national 
     security or significantly increase the counter-intelligence 
     burden on the intelligence community.
       (2) Any waiver under paragraph (1) shall take effect 30 
     days after the date on which the President notifies the 
     Speaker of the House of Representatives and the President of 
     the Senate of the President's determination to use the waiver 
     authority provided under this subsection.
                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

     SEC. 2831. LAND CONVEYANCE, ARMY RESERVE CENTER, GREENSBORO, 
                   ALABAMA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to Hale County, Alabama, all 
     right, title, and interest of the United States in and to a 
     parcel of real property consisting of approximately 5.17 
     acres and located at the Army Reserve Center, Greensboro, 
     Alabama, that was conveyed by Hale County, Alabama, to the 
     United States by warranty deed dated September 12, 1988.
       (b) Description of Property.--The exact acreage and legal 
     description of the property to

[[Page H9183]]

     be conveyed under subsection (a) shall be as described in the 
     deed referred to in that subsection.
       (c) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2832. LAND CONVEYANCE, JAMES T. COKER ARMY RESERVE 
                   CENTER, DURANT, OKLAHOMA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to Big Five Community 
     Services, Incorporated, a nonprofit organization operating in 
     Durant, Oklahoma, all right, title, and interest of the 
     United States in and to a parcel of real property located at 
     1500 North First Street in Durant, Oklahoma, and containing 
     the James T. Coker Army Reserve Center, if the Secretary 
     determines that the Reserve Center is excess to the needs of 
     the Armed Forces.
       (b) Condition of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the condition that 
     Big Five Community Services, Incorporated, retain the 
     conveyed property for educational purposes.
       (c) Reversion.--If the Secretary determines at any time 
     that the real property conveyed under subsection (a) is not 
     being used for the purpose specified in subsection (b), all 
     right, title, and interest in and to the real property, 
     including any improvements thereon, shall revert to the 
     United States, and the United States shall have the right of 
     immediate entry thereon.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     Big Five Community Services, Incorporated.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2833. LAND CONVEYANCE, GIBSON ARMY RESERVE CENTER, 
                   CHICAGO, ILLINOIS.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Lawndale Business and 
     Local Development Corporation (in this section referred to 
     as the ``Corporation''), a nonprofit organization 
     organized in the State of Illinois, all right, title, and 
     interest of the United States in and to a parcel of real 
     property, including improvements thereon, that is located 
     at 4454 West Cermak Road in Chicago, Illinois, and 
     contains the Gibson Army Reserve Center.
       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     Corporation--
       (1) use the conveyed property, directly or through an 
     agreement with a public or private entity, for economic 
     redevelopment purposes; or
       (2) convey the property to an appropriate public or private 
     entity for use for such purposes.
       (c) Reversion.--If the Secretary determines at any time 
     that the real property conveyed under subsection (a) is not 
     being used for economic redevelopment purposes, as required 
     by subsection (b), all right, title, and interest in and to 
     the property, including any improvements thereon, shall 
     revert to the United States, and the United States shall have 
     the right of immediate entry onto the property.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Corporation.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2834. LAND CONVEYANCE, FORT A. P. HILL, VIRGINIA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to Caroline County, Virginia (in this section referred 
     to as the ``County''), all right, title, and interest of 
     the United States in and to a parcel of unimproved real 
     property consisting of approximately 10 acres located at 
     Fort A. P. Hill, Virginia. The purpose of the conveyance 
     is to permit the County to establish a solid waste 
     transfer and recycling facility on the property.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the County shall permit the Army, at no 
     cost to the Army, to dispose of not less than 1,800 tons of 
     solid waste annually at the facility established on the 
     conveyed property. The obligation of the County to accept 
     solid waste under this subsection shall not commerce until 
     after the solid waste transfer and recycling facility on the 
     conveyed property becomes operational, and the establishment 
     of a solid waste collection and transfer site on the .36-acre 
     parcel described in subsection (d)(2) shall not be construed 
     to impose the obligation.
       (c) Disclaimer.--The United States shall not be responsible 
     for the provision or cost of utilities or any other 
     improvements necessary to carry out the conveyance under 
     subsection (a) or to establish or operate the solid waste 
     transfer and recycling facility intended for the property.
       (d) Reversion.--(1) Except as provided in paragraph (2), if 
     the Secretary determines that a solid waste transfer and 
     recycling facility is not operational, before December 31, 
     1999, on the real property conveyed under subsection (a), all 
     right, title, and interest in and to such real property, 
     including any improvements thereon, shall revert to the 
     United States, and the United States shall have the right of 
     immediate entry thereon.
       (2) Paragraph (1) shall not apply with respect to a parcel 
     of approximately .36 acres of the approximately 10-acre 
     parcel to be conveyed under subsection (a), which is included 
     in the larger conveyance to permit the County to establish a 
     solid waste collection and transfer site for residential 
     waste.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2835. LAND CONVEYANCES, FORT DIX, NEW JERSEY.

       (a) Conveyances Authorized.--(1) The Secretary of the Army 
     may convey, without consideration, to the Borough of 
     Wrightstown, New Jersey (in this section referred to as the 
     ``Borough''), all right, title, and interest of the United 
     States in and to a parcel of real property (including 
     improvements thereon) consisting of approximately 39.69 acres 
     located at Fort Dix, New Jersey, for the purpose of 
     permitting the Borough to develop the parcel for economic 
     purposes.
       (2) The Secretary may convey, without consideration, to the 
     New Hanover Board of Education (in this section referred to 
     as the ``Board''), all right, title, and interest of the 
     United States in and to an additional parcel of real property 
     (including improvements thereon) at Fort Dix consisting of 
     approximately five acres for the purpose of permitting the 
     Board to develop the parcel for educational purposes.
       (b) Conditions of Conveyance.--(1) The conveyance under 
     subsection (a)(1) shall be subject to the condition that the 
     Borough--
       (A) use the conveyed property, directly or through an 
     agreement with a public or private entity, for economic 
     development purposes; or
       (B) convey the property to an appropriate public or private 
     entity for use for such purposes.
       (2) The conveyance under subsection (a)(2) shall be subject 
     to the condition that Board develop and use the conveyed 
     property for educational purposes.
       (c) Reversion.--(1) If the Secretary determines at any time 
     that the real property conveyed under subsection (a)(1) is 
     not being used for economic development purposes, as required 
     by subsection (b)(1), all right, title, and interest in and 
     to the property conveyed under subsection (a)(1), including 
     any improvements thereon, shall revert to the United States, 
     and the United States shall have the right of immediate entry 
     thereon.
       (2) If the Secretary determines at any time that the real 
     property conveyed under subsection (a)(2) is not being used 
     for educational purposes, as required by subsection (b)(2), 
     all right, title, and interest in and to the property 
     conveyed under subsection (a)(2), including any improvements 
     thereon, shall revert to the United States, and the United 
     States shall have the right of immediate entry thereon.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by surveys satisfactory to 
     the Secretary. The cost of the survey in connection with the 
     conveyance under subsection (a)(1) shall be borne by the 
     Borough, and the cost of the survey in connection with the 
     conveyance under subsection (a)(2) shall be borne by the 
     Board.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2836. LAND CONVEYANCES, FORT BRAGG, NORTH CAROLINA.

       (a) Conveyances Authorized.--(1) The Secretary of the Army 
     may convey, without consideration, to the Town of Spring 
     Lake, North Carolina (in this section referred to as the 
     ``Town''), all right, title, and interest of the United 
     States in and to a parcel of unimproved real property 
     consisting of approximately 50 acres located at Fort Bragg, 
     North Carolina.
       (2) The Secretary may convey, without consideration, to 
     Harnett County, North Carolina (in this section referred to 
     as the ``County''), all right, title, and interest of the 
     United States in and to a parcel of real property (including 
     improvements thereon), known as Tract No. 404-2, consisting 
     of approximately 157 acres located at Fort Bragg.
       (3) The Secretary may convey, at fair market value, to the 
     County all right, title, and interest of the United States in 
     and to a parcel of real property (including improvements 
     thereon), known as Tract No. 404-1, consisting of 
     approximately 137 acres located at Fort Bragg.
       (b) Conditions of Conveyance.--(1) The conveyance under 
     subsection (a)(1) shall be subject to the condition that the 
     Town use the conveyed property for access to a waste 
     treatment facility and for economic development purposes.
       (2) The conveyance under subsection (a)(2) shall be subject 
     to the condition that County develop and use the conveyed 
     property for educational purposes.
       (c) Reversion.--(1) If the Secretary determines at any time 
     that the real property conveyed under subsection (a)(1) is 
     not being used in accordance with subsection (b)(1), all 
     right, title, and interest in and to the property conveyed 
     under subsection (a)(1), including any improvements thereon, 
     shall revert to the United States, and the United States 
     shall have the right of immediate entry thereon.
       (2) If the Secretary determines at any time that the real 
     property conveyed under subsection (a)(2) is not being used 
     in accordance with subsection (b)(2), all right, title, and 
     interest in and to the property conveyed under subsection 
     (a)(2), including any improvements thereon, shall revert to 
     the United States, and

[[Page H9184]]

     the United States shall have the right of immediate entry 
     thereon.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by surveys satisfactory to 
     the Secretary. The cost of the survey in connection with the 
     conveyance under subsection (a)(1) shall be borne by the 
     Town, and the cost of the survey in connection with the 
     conveyances under paragraphs (2) and (3) of subsection (a) 
     shall be borne by the County.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2837. LAND CONVEYANCE, HAWTHORNE ARMY AMMUNITION DEPOT, 
                   MINERAL COUNTY, NEVADA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to Mineral County, Nevada (in 
     this section referred to as the ``County''), all right, 
     title, and interest of the United States in and to a parcel 
     of excess real property, including improvements thereon, 
     consisting of approximately 33.1 acres located at Hawthorne 
     Army Ammunition Depot, Mineral County, Nevada, and commonly 
     referred to as the Schweer Drive Housing Area, for the 
     purpose of permitting the County to develop the parcel for 
     economic purposes.
       (b) Conditions of Conveyance.--The conveyance authorized by 
     subsection (a) shall be subject to the following conditions:
       (1) That the County accept the conveyed property subject to 
     such easements and rights of way in favor of the United 
     States as the Secretary considers appropriate.
       (2) That the County, if the County sells any portion of the 
     property conveyed under subsection (a) before the end of the 
     10-year period beginning on the date of enactment of this 
     Act, pay to the United States an amount equal to the lesser 
     of--
       (A) the amount of sale of the property sold; or
       (B) the fair market value of the property sold as 
     determined without taking into account any improvements to 
     such property by the County.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a), and of any easement or right of way granted 
     under subsection (b)(1), shall be determined by a survey 
     satisfactory to the Secretary. The cost of the survey shall 
     be borne by the County.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a), and any easement or 
     right of way granted under subsection (b)(1), as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2838. EXPANSION OF LAND CONVEYANCE AUTHORITY, INDIANA 
                   ARMY AMMUNITION PLANT, CHARLESTOWN, INDIANA.

       (a) Additional Conveyance.--Subsection (a) of section 2858 
     of the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106; 110 Stat. 571) is amended--
       (1) by inserting ``(1)'' before ``The Secretary of the 
     Army''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary may also convey to the State, without 
     consideration, an additional parcel of real property at the 
     Indiana Army Ammunition Plant consisting of approximately 500 
     acres located along the Ohio River.''.
       (b) Conforming Amendments.--Such section is further amended 
     by striking out ``conveyance'' both places it appears in 
     subsections (b) and (d) and inserting in lieu thereof 
     ``conveyances''.

     SEC. 2839. MODIFICATION OF LAND CONVEYANCE, LOMPOC, 
                   CALIFORNIA.

       (a) Change in Authorized Uses of Land.--Section 834(b)(1) 
     of the Military Construction Authorization Act, 1985 (Public 
     Law 98-407; 98 Stat. 1526), is amended by striking out 
     subparagraphs (A) and (B) and inserting in lieu thereof the 
     following new subparagraphs:
       ``(A) for educational and recreational purposes;
       ``(B) for open space; or''.
       (b) Conforming Deed Changes.--With respect to the land 
     conveyance made pursuant to section 834 of the Military 
     Construction Authorization Act, 1985, the Secretary of the 
     Army shall execute and file in the appropriate office or 
     offices an amended deed or other appropriate instrument 
     effectuating the changes to the authorized uses of the 
     conveyed property resulting from the amendment made by 
     subsection (a).

     SEC. 2840. MODIFICATION OF LAND CONVEYANCE, ROCKY MOUNTAIN 
                   ARSENAL, COLORADO.

       Section 5(c)(1) of Public Law 102-402 (106 Stat. 1966; 16 
     U.S.C. 668dd note) is amended by striking out the second 
     sentence and inserting in lieu thereof the following new 
     sentence: ``The Administrator shall convey the transferred 
     property to Commerce City, Colorado, for consideration in an 
     amount equal to the fair market value of the property (as 
     determined jointly by the Administrator and the City).''.

     SEC. 2841. CORRECTION OF LAND CONVEYANCE AUTHORITY, ARMY 
                   RESERVE CENTER, ANDERSON, SOUTH CAROLINA.

       (a) Correction of Conveyee.--Subsection (a) of section 2824 
     of the Military Construction Authorization Act for Fiscal 
     Year 1997 (division B of Public Law 104-201; 110 Stat. 2793) 
     is amended by striking out ``County of Anderson, South 
     Carolina (in this section referred to as the `County')'' and 
     inserting in lieu thereof ``Board of Education, Anderson 
     County, South Carolina (in this section referred to as the 
     `Board')''.
       (b) Conforming Amendments.--Subsections (b) and (c) of such 
     section are each amended by striking out ``the County'' and 
     inserting in lieu thereof ``the Board''.

                       PART II--NAVY CONVEYANCES

     SEC. 2851. LAND CONVEYANCE, TOPSHAM ANNEX, NAVAL AIR STATION, 
                   BRUNSWICK, MAINE.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey, without consideration, to the Maine School 
     Administrative District No. 75, Topsham, Maine (in this 
     section referred to as the ``District''), all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including improvements thereon, consisting of 
     approximately 40 acres located at the Topsham Annex, Naval 
     Air Station, Brunswick, Maine.
       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     District use the conveyed property for educational purposes.
       (c) Reversion.--If the Secretary determines at any time 
     that the real property conveyed under subsection (a) is not 
     being used for the purpose specified in subsection (b), all 
     right, title, and interest in and to the property, including 
     any improvements thereon, shall revert to the United States, 
     and the United States shall have the right of immediate entry 
     thereon.
       (d) Interim Lease.--(1) Until such time as the real 
     property described in subsection (a) is conveyed by deed, the 
     Secretary may lease the property, together with the 
     improvements thereon, to the District.
       (2) As consideration for the lease under this subsection, 
     the District shall provide such security services for the 
     property covered by the lease, and carry out such maintenance 
     work with respect to the property, as the Secretary shall 
     specify in the lease.
       (e) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the 
     District.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a), and the lease, if 
     any, under subsection (d), as the Secretary considers 
     appropriate to protect the interests of the United States.

     SEC. 2852. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE 
                   PLANT NO. 464, OYSTER BAY, NEW YORK.

       (a) Conveyance Authorized.--(1) The Secretary of the Navy 
     may convey, without consideration, to the County of Nassau, 
     New York (in this section referred to as the ``County''), all 
     right, title, and interest of the United States in and to 
     parcels of real property consisting of approximately 110 
     acres and comprising the Naval Weapons Industrial Reserve 
     Plant No. 464, Oyster Bay, New York.
       (2)(A) As part of the conveyance authorized in paragraph 
     (1), the Secretary may convey to the County such 
     improvements, equipment, fixtures, and other personal 
     property (including special tooling equipment and special 
     test equipment) located on the parcels as the Secretary 
     determines to be not required by the Navy for other purposes.
       (B) The Secretary may permit the County to review and 
     inspect the improvements, equipment, fixtures, and other 
     personal property located on the parcels for purposes of the 
     conveyance authorized by this paragraph.
       (b) Condition of Conveyance.--The conveyance of the parcels 
     authorized in subsection (a) shall be subject to the 
     condition that the County--
       (1) use the parcels, directly or through an agreement with 
     a public or private entity, for economic redevelopment 
     purposes or such other public purposes as the County 
     determines appropriate; or
       (2) convey the parcels to an appropriate public or private 
     entity for use for such purposes.
       (c) Reversion.--If, during the five-year period beginning 
     on the date the Secretary makes the conveyance authorized 
     under subsection (a), the Secretary determines that the 
     conveyed real property is not being used for a purpose 
     specified in subsection (b), all right, title, and interest 
     in and to the property, including any improvements thereon, 
     shall revert to the United States, and the United States 
     shall have the right of immediate entry onto the property.
       (d) Interim Lease.--(1) Until such time as the real 
     property described in subsection (a) is conveyed by deed, the 
     Secretary may lease the property, together with improvements 
     thereon, to the County.
       (2) As consideration for the lease under this subsection, 
     the County shall provide such security services and fire 
     protection services for the property covered by the lease, 
     and carry out such maintenance work with respect to the 
     property, as the Secretary shall specify in the lease.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the County.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a), and the lease, if 
     any, under subsection (d), as the Secretary considers 
     appropriate to protect the interests of the United States.

     SEC. 2853. CORRECTION OF LEASE AUTHORITY, NAVAL AIR STATION, 
                   MERIDIAN, MISSISSIPPI.

       (a) Correction of Lessee.--Subsection (a) of section 2837 
     of the Military Construction Authorization Act for Fiscal 
     Year 1997 (division B of Public Law 104-201; 110 Stat. 2798) 
     is amended--
       (1) by striking out ``State of Mississippi (in this section 
     referred to as the `State')'' and inserting in lieu thereof 
     ``County of Lauderdale,

[[Page H9185]]

     Mississippi (in this section referred to as the `County')''; 
     and
       (2) by striking out ``The State'' and inserting in lieu 
     thereof ``The County''.
       (b) Conforming Amendments.--Subsections (b) and (c) of such 
     section are amended by striking out ``State'' each place it 
     appears and inserting in lieu thereof ``County''.

                    PART III--AIR FORCE CONVEYANCES

     SEC. 2861. LAND TRANSFER, EGLIN AIR FORCE BASE, FLORIDA.

       (a) Transfer.--The real property withdrawn by Executive 
     Order 4525, dated October 1, 1826, which consists of 
     approximately 440 acres of land at Cape San Blas, Gulf 
     County, Florida, and any improvements thereon, is transferred 
     from the administrative jurisdiction of the Secretary of 
     Transportation to the administrative jurisdiction of the 
     Secretary of the Air Force, without reimbursement. Executive 
     Order 4525 is revoked, and the transferred real property 
     shall be administered by the Secretary of the Air Force 
     pursuant to the Federal Property and Administrative Services 
     Act of 1949 (40 U.S.C. 471 et seq.) and such other laws as 
     may be applicable to Federal real property.
       (b) Use of Property.--The real property transferred under 
     subsection (a) may be used in conjunction with operations at 
     Eglin Air Force Base, Florida.
       (c) Legal Description.--The exact acreage and legal 
     description of the real property to be transferred under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary of the Air Force. The cost of the survey 
     shall be borne by the Secretary of the Air Force.

     SEC. 2862. LAND CONVEYANCE, MARCH AIR FORCE BASE, CALIFORNIA.

       (a) Conveyance Authorized.--(1) The Secretary of the Air 
     Force may convey to Air Force Village West, Incorporated (in 
     this section referred to as the ``Corporation''), of 
     Riverside, California, all right, title, and interest of the 
     United States in and to a parcel of real property located at 
     March Air Force Base, California, and consisting of 
     approximately 75 acres, as more fully described in subsection 
     (c).
       (2) If the Secretary does not make the conveyance 
     authorized by paragraph (1) to the Corporation on or before 
     January 1, 2006, the Secretary shall convey the real property 
     instead to the March Joint Powers Authority, the 
     redevelopment authority established for March Air Force Base.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a)(1), the Corporation shall pay to the 
     United States an amount equal to the fair market value of the 
     real property, as determined by the Secretary.
       (c) Land Description.--The real property to be conveyed 
     under subsection (a) is contiguous to land conveyed to the 
     Corporation pursuant to section 835 of the Military 
     Construction Authorization Act, 1985 (Public Law 98-407; 98 
     Stat. 1527), and lies within sections 27, 28, 33, and 34 of 
     Township 3 South, Range 4 West, San Bernardino Base and 
     Meridian, County of Riverside, California. The exact acreage 
     and legal description of the real property shall be 
     determined by a survey satisfactory to the Secretary. The 
     cost of the survey shall be borne by the party receiving the 
     property.
       (d) Technical Corrections Regarding Previous Conveyance.--
     Section 835 of the Military Construction Authorization Act, 
     1985 (Public Law 98-407; 98 Stat. 1527), is amended--
       (1) in subsection (b), by striking out ``subsection (b)'' 
     and inserting in lieu thereof ``subsection (a)''; and
       (2) in subsection (c), by striking out ``Clark Street,'' 
     and all that follows through the period and inserting in lieu 
     thereof ``Village West Drive, on the west by Allen Avenue, on 
     the south by 8th Street, and the north is an extension of 
     11th Street between Allen Avenue and Clark Street.''.

     SEC. 2863. LAND CONVEYANCE, ELLSWORTH AIR FORCE BASE, SOUTH 
                   DAKOTA.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to the Greater Box Elder 
     Area Economic Development Corporation, Box Elder, South 
     Dakota (in this section referred to as the ``Corporation''), 
     all right, title, and interest of the United States in and to 
     the parcels of real property located at Ellsworth Air Force 
     Base, South Dakota, referred to in subsection (b).
       (b) Covered Property.--(1) Subject to paragraph (2), the 
     real property referred to in subsection (a) is the following:
       (A) A parcel of real property, together with any 
     improvements thereon, consisting of approximately 53.32 acres 
     and comprising the Skyway Military Family Housing Area.
       (B) A parcel of real property, together with any 
     improvements thereon, consisting of approximately 137.56 
     acres and comprising the Renal Heights Military Family 
     Housing Area.
       (C) A parcel of real property, together with any 
     improvements thereon, consisting of approximately 14.92 acres 
     and comprising the East Nike Military Family Housing Area.
       (D) A parcel of real property, together with any 
     improvements thereon, consisting of approximately 14.69 acres 
     and comprising the South Nike Military Family Housing Area.
       (E) A parcel of real property, together with any 
     improvements thereon, consisting of approximately 14.85 acres 
     and comprising the West Nike Military Family Housing Area.
       (2) The real property referred to in subsection (a) does 
     not include the portion of real property referred to in 
     paragraph (1)(B) that the Secretary determines to be required 
     for the construction of an access road between the main gate 
     of Ellsworth Air Force Base and an interchange on Interstate 
     Route 90 located in the vicinity of mile marker 67 in South 
     Dakota.
       (c) Conditions of Conveyance.--The conveyance of the real 
     property referred to in subsection (b) shall be subject to 
     the following conditions:
       (1) That the Corporation, and any person or entity to which 
     the Corporation transfers the property, comply in the use of 
     the property with the applicable provisions of the Ellsworth 
     Air Force Base Air Installation Compatible Use Zone Study.
       (2) That the Corporation convey a portion of the real 
     property referred to in subsection (b)(1)(A), together with 
     any improvements thereon, consisting of approximately 20 
     acres to the Douglas School District, South Dakota, for use 
     for education purposes.
       (d) Reversion.--If the Secretary determines that any 
     portion of the real property conveyed under subsection (a) is 
     not being used in accordance with the applicable provision of 
     subsection (c), all right, title, and interest in and to that 
     portion of the real property (including any improvements 
     thereon, shall revert to the United States, and the United 
     States shall have the right of immediate entry thereon.
       (e) Legal Description.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the 
     Corporation.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2864. LAND CONVEYANCE, HANCOCK FIELD, SYRACUSE, NEW 
                   YORK.

       (a) Conveyance Authorized.--(1) The Secretary of the Air 
     Force may convey, without consideration, to Onondaga County, 
     New York (in this section referred to as the ``County''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including any improvements thereon, 
     consisting of approximately 14.9 acres and located at Hancock 
     Field, Syracuse, New York, the site of facilities no longer 
     required for use by the 152nd Air Control Group of the New 
     York Air National Guard.
       (2) If, at the time of the conveyance authorized by 
     paragraph (1), the property to be conveyed is under the 
     jurisdiction of the Administrator of General Services rather 
     than the Secretary, the Administrator shall make the 
     conveyance.
       (b) Condition of Conveyance.--The conveyance authorized by 
     subsection (a) shall be subject to the condition that the 
     County use the property conveyed for economic development 
     purposes.
       (c) Reversion.--If the Secretary (or the Administrator in 
     the event the conveyance is made by the Administrator) 
     determines at any time that the property conveyed pursuant to 
     this section is not being used for the purposes specified in 
     subsection (b), all right, title, and interest in and to the 
     property, including any improvements thereon, shall revert to 
     the United States, and the United States shall have the right 
     of immediate entry thereon.
       (d) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary (or the Administrator in the event the conveyance 
     is made by the Administrator). The cost of the survey shall 
     be borne by the County.
       (e) Additional Terms and Conditions.--The Secretary (or the 
     Administrator in the event the conveyance is made by the 
     Administrator) may require such additional terms and 
     conditions in connection with the conveyance under subsection 
     (a) as the Secretary or the Administrator, as the case may 
     be, considers appropriate to protect the interests of the 
     United States.

     SEC. 2865. LAND CONVEYANCE, HAVRE AIR FORCE STATION, MONTANA, 
                   AND HAVRE TRAINING SITE, MONTANA.

       (a) Conveyance Authorized.--(1) The Secretary of the Air 
     Force may convey, without consideration, to the Bear Paw 
     Development Corporation, Havre, Montana (in this section 
     referred to as the ``Corporation''), all, right, title, and 
     interest of the United States in and to the real property 
     described in paragraph (2).
       (2) The authority in paragraph (1) applies to the following 
     real property:
       (A) A parcel of real property, including any improvements 
     thereon, consisting of approximately 85 acres and comprising 
     the Havre Air Force Station, Montana.
       (B) A parcel of real property, including any improvements 
     thereon, consisting of approximately 9 acres and comprising 
     the Havre Training Site, Montana.
       (b) Conditions of Conveyance.--The conveyance authorized by 
     subsection (a) shall be subject to the following conditions:
       (1) That the Corporation--
       (A) convey to the Box Elder School District 13G, Montana, 
     10 single-family homes located on the property to be conveyed 
     under that subsection as jointly agreed upon by the 
     Corporation and the school district; and
       (B) grant the school district access to the property for 
     purposes of removing the homes from the property.
       (2) That the Corporation--
       (A) convey to the Hays/Lodgepole School District 50, 
     Montana--
       (i) 27 single-family homes located on the property to be 
     conveyed under that subsection as jointly agreed upon by the 
     Corporation and the school district;
       (ii) one barracks housing unit located on the property;
       (iii) two steel buildings (nos. 7 and 8) located on the 
     property;
       (iv) two tin buildings (nos. 37 and 44) located on the 
     property; and
       (v) miscellaneous personal property located on the property 
     that is associated with the buildings conveyed under this 
     subparagraph; and

[[Page H9186]]

       (B) grant the school district access to the property for 
     purposes of removing such homes and buildings, the housing 
     unit, and such personal property from the property.
       (3) That the Corporation--
       (A) convey to the District 4 Human Resources Development 
     Council, Montana, eight single-family homes located on the 
     property to be conveyed under that subsection as jointly 
     agreed upon by the Corporation and the council; and
       (B) grant the council access to the property for purposes 
     of removing such homes from the property.
       (4) That any property conveyed under subsection (a) that is 
     not conveyed under this subsection be used for economic 
     development purposes or housing purposes.
       (c) Reversion.--If the Secretary determines at any time 
     that the portion of the property conveyed under subsection 
     (a) which is covered by the condition specified in subsection 
     (b)(4) is not being used for the purposes specified in that 
     subsection, all right, title, and interest in and to such 
     property, including any improvements thereon, shall revert to 
     the United States, and the United States shall have the right 
     of immediate entry thereon.
       (d) Description of Property.--The exact acreages and legal 
     description of the parcels of property to be conveyed under 
     subsection (a) shall be determined by surveys satisfactory to 
     the Secretary. The cost of the surveys shall be borne by the 
     Corporation.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2866. LAND CONVEYANCE, CHARLESTON FAMILY HOUSING 
                   COMPLEX, BANGOR, MAINE.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to the City of Bangor, 
     Maine (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property consisting of approximately 19.8 
     acres, including improvements thereon, located in Bangor, 
     Maine, and known as the Charleston Family Housing Complex.
       (b) Purpose of Conveyance.--The purpose of the conveyance 
     under subsection (a) is to facilitate the reuse of the real 
     property, currently unoccupied, which the City proposes to 
     use to provide housing opportunities for first-time home 
     buyers.
       (c) Condition of Conveyance.--The conveyance authorized by 
     subsection (a) shall be subject to the condition that the 
     City, if the City sells any portion of the property conveyed 
     under subsection (a) before the end of the 10-year period 
     beginning on the date of enactment of this Act, pay to the 
     United States an amount equal to the lesser of--
       (1) the amount of sale of the property sold; or
       (2) the fair market value of the property sold as 
     determined without taking into account any improvements to 
     such property by the City.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the City.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2867. STUDY OF LAND EXCHANGE OPTIONS, SHAW AIR FORCE 
                   BASE, SOUTH CAROLINA.

       Section 2874 of the Military Construction Authorization Act 
     for Fiscal Year 1996 (division B of Public Law 104-106; 110 
     Stat. 583) is amended by adding at the end the following new 
     subsection:
       ``(g) Study of Exchange Options.--To facilitate the use of 
     a land exchange to acquire the real property described in 
     subsection (a), the Secretary shall conduct a study to 
     identify real property in the possession of the Air Force 
     (located in the State of South Carolina or elsewhere) that 
     satisfies the requirements of subsection (b)(2), is 
     acceptable to the party holding the property to be acquired, 
     and is otherwise suitable for exchange under this section. 
     Not later than three months after the date of the enactment 
     of the National Defense Authorization Act for Fiscal Year 
     1998, the Secretary shall submit to Congress a report 
     containing the results of the study.''.
                       Subtitle E--Other Matters

     SEC. 2871. REPEAL OF REQUIREMENT TO OPERATE NAVAL ACADEMY 
                   DAIRY FARM.

       (a) Operation.--(1) Chapter 603 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 6976. Operation of Naval Academy dairy farm

       ``(a) Discretion Regarding Continued Operation.--(1) 
     Subject to paragraph (2), the Secretary of the Navy may 
     terminate or reduce the dairy or other operations conducted 
     at the Naval Academy dairy farm located in Gambrills, 
     Maryland.
       ``(2) Notwithstanding the termination or reduction of 
     operations at the Naval Academy dairy farm under 
     paragraph (1), the real property containing the dairy farm 
     (consisting of approximately 875 acres)--
       ``(A) may not be declared to be excess real property to the 
     needs of the Navy or transferred or otherwise disposed of by 
     the Navy or any Federal agency; and
       ``(B) shall be maintained in its rural and agricultural 
     nature.
       ``(b) Lease Authority.--(1) Subject to paragraph (2), to 
     the extent that the termination or reduction of operations at 
     the Naval Academy dairy farm permit, the Secretary of the 
     Navy may lease the real property containing the dairy farm, 
     and any improvements and personal property thereon, to such 
     persons and under such terms as the Secretary considers 
     appropriate. In leasing any of the property, the Secretary 
     may give a preference to persons who will continue dairy 
     operations on the property.
       ``(2) Any lease of property at the Naval Academy dairy farm 
     shall be subject to a condition that the lessee maintain the 
     rural and agricultural nature of the leased property.
       ``(c) Effect of Other Laws.--Nothing in section 6971 of 
     this title shall be construed to require the Secretary of the 
     Navy or the Superintendent of the Naval Academy to operate a 
     dairy farm for the Naval Academy in Gambrills, Maryland, or 
     any other location.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``6976. Operation of Naval Academy dairy farm.''.

       (b) Conforming Repeal of Existing Requirements.--Section 
     810 of the Military Construction Authorization Act, 1968 
     (Public Law 90-110; 81 Stat. 309), is repealed.
       (c) Other Conforming Amendments.--(1) Section 6971(b)(5) of 
     title 10, United States Code, is amended by inserting ``(if 
     any)'' before the period at the end.
       (2) Section 2105(b) of title 5, United States Code, is 
     amended by inserting ``(if any)'' after ``Academy dairy''.

     SEC. 2872. LONG-TERM LEASE OF PROPERTY, NAPLES ITALY.

       (a) Authority.--Subject to subsection (d), the Secretary of 
     the Navy may acquire by long-term lease structures and real 
     property relating to a regional hospital complex in Naples, 
     Italy, that the Secretary determines to be necessary for 
     purposes of the Naples Improvement Initiative.
       (b) Lease Term.--Notwithstanding section 2675 of title 10, 
     United States Code, the lease authorized by subsection (a) 
     shall be for a term of not more than 20 years.
       (c) Expiration of Authority.--The authority of the 
     Secretary to enter into a lease under subsection (a) shall 
     expire on September 30, 2002.
       (d) Authority Contingent on Appropriations Acts.--The 
     authority of the Secretary to enter into a lease under 
     subsection (a) is available only to the extent or in the 
     amount provided in advance in appropriations Acts.

     SEC. 2873. DESIGNATION OF MILITARY FAMILY HOUSING AT LACKLAND 
                   AIR FORCE BASE, TEXAS, IN HONOR OF FRANK 
                   TEJEDA, A FORMER MEMBER OF THE HOUSE OF 
                   REPRESENTATIVES.

       The military family housing developments to be constructed 
     at two locations on Government property at Lackland Air Force 
     Base, Texas, under the authority of subchapter IV of chapter 
     169 of title 10, United States Code, shall be designated by 
     the Secretary of the Air Force, at an appropriate time, as 
     follows:
       (1) The eastern development shall be designated as ``Frank 
     Tejeda Estates East''.
       (2) The western development shall be designated as ``Frank 
     Tejeda Estates West''.

     SEC. 2874. FIBER-OPTICS BASED TELECOMMUNICATIONS LINKAGE OF 
                   MILITARY INSTALLATIONS.

       (a) Installation Required.--In at least one metropolitan 
     area of the United States containing multiple military 
     installations of one or more military departments or Defense 
     Agencies, the Secretary of Defense shall provide for the 
     installation of fiber-optics based telecommunications 
     technology to link as many of the installations in the area 
     as practicable in a telecommunications network. The Secretary 
     shall use a full and open competitive process, consistent 
     with section 2304 of title 10, United States Code, to provide 
     for the installation of the telecommunications network 
     through one or more new contracts.
       (b) Features of Network.--The telecommunications network 
     shall provide direct access to local and long distance 
     telephone carriers, allow for transmission of both classified 
     and unclassified information, and take advantage of the 
     various capabilities of fiber-optics based telecommunications 
     technology.
       (c) Time for Request for Bids or Proposals.--Not later than 
     March 30, 1998, the Secretary of Defense shall release a 
     final request for bids or proposals to provide the 
     telecommunications network or networks described in 
     subsection (a).
       (d) Report on Implementation.--Not later than December 31, 
     1998, the Secretary of Defense shall submit to the 
     congressional defense committees a report on the 
     implementation of subsection (c), including the metropolitan 
     area or areas selected for the installation of a fiber-optics 
     based telecommunications network, the current 
     telecommunication costs for the Department of Defense in the 
     selected area or areas, the estimated cost of the fiber-
     optics based network, and potential areas for the future use 
     of fiber-optics based networks.
                   TITLE XXIX--SIKES ACT IMPROVEMENT
Sec. 2901. Short title.
Sec. 2902. Definition of Sikes Act for purposes of amendments.
Sec. 2903. Codification of short title of Act.
Sec. 2904. Preparation of integrated natural resources management 
              plans.
Sec. 2905. Review for preparation of integrated natural resources 
              management plans.
Sec. 2906. Transfer of wildlife conservation fees from closed military 
              installations.
Sec. 2907. Annual reviews and reports.
Sec. 2908. Cooperative agreements.
Sec. 2909. Federal enforcement.
Sec. 2910. Natural resources management services.
Sec. 2911. Definitions.
Sec. 2912. Repeal of superseded provision.

[[Page H9187]]

Sec. 2913. Technical amendments.
Sec. 2914. Authorizations of appropriations.

     SEC. 2901. SHORT TITLE.

       This title may be cited as the ``Sikes Act Improvement Act 
     of 1997''.

     SEC. 2902. DEFINITION OF SIKES ACT FOR PURPOSES OF 
                   AMENDMENTS.

       In this title, the term ``Sikes Act'' means the Act 
     entitled ``An Act to promote effectual planning, development, 
     maintenance, and coordination of wildlife, fish, and game 
     conservation and rehabilitation in military reservations'', 
     approved September 15, 1960 (16 U.S.C. 670a et seq.), 
     commonly referred to as the ``Sikes Act''.

     SEC. 2903. CODIFICATION OF SHORT TITLE OF ACT.

       The Sikes Act (16 U.S.C. 670a et seq.) is amended by 
     inserting before title I the following new section:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Sikes Act'.''.

     SEC. 2904. PREPARATION OF INTEGRATED NATURAL RESOURCES 
                   MANAGEMENT PLANS.

       (a) In General.--Section 101 of the Sikes Act (16 U.S.C. 
     670a(a)) is amended by striking out subsection (a) and 
     inserting in lieu thereof the following new subsection:
       ``(a) Authority of Secretary of Defense.--
       ``(1) Program.--
       ``(A) In general.--The Secretary of Defense shall carry out 
     a program to provide for the conservation and rehabilitation 
     of natural resources on military installations.
       ``(B) Integrated natural resources management plan.--To 
     facilitate the program, the Secretary of each military 
     department shall prepare and implement an integrated natural 
     resources management plan for each military installation in 
     the United States under the jurisdiction of the Secretary, 
     unless the Secretary determines that the absence of 
     significant natural resources on a particular installation 
     makes preparation of such a plan inappropriate.
       ``(2) Cooperative preparation.--The Secretary of a military 
     department shall prepare each integrated natural resources 
     management plan for which the Secretary is responsible in 
     cooperation with the Secretary of the Interior, acting 
     through the Director of the United States Fish and Wildlife 
     Service, and the head of each appropriate State fish and 
     wildlife agency for the State in which the military 
     installation concerned is located. Consistent with paragraph 
     (4), the resulting plan for the military installation shall 
     reflect the mutual agreement of the parties concerning 
     conservation, protection, and management of fish and wildlife 
     resources.
       ``(3) Purposes of program.--Consistent with the use of 
     military installations to ensure the preparedness of the 
     Armed Forces, the Secretaries of the military departments 
     shall carry out the program required by this subsection to 
     provide for--
       ``(A) the conservation and rehabilitation of natural 
     resources on military installations;
       ``(B) the sustainable multipurpose use of the resources, 
     which shall include hunting, fishing, trapping, and 
     nonconsumptive uses; and
       ``(C) subject to safety requirements and military security, 
     public access to military installations to facilitate the 
     use.
       ``(4) Effect on other law.--Nothing in this title--
       ``(A)(i) affects any provision of a Federal law governing 
     the conservation or protection of fish and wildlife 
     resources; or
       ``(ii) enlarges or diminishes the responsibility and 
     authority of any State for the protection and management of 
     fish and resident wildlife; or
       ``(B) except as specifically provided in the other 
     provisions of this section and in section 102, authorizes the 
     Secretary of a military department to require a Federal 
     license or permit to hunt, fish, or trap on a military 
     installation.''.
       (b) Conforming Amendments.--Title I of the Sikes Act is 
     amended--
       (1) in section 101(b)(4) (16 U.S.C. 670a(b)(4)), by 
     striking out ``cooperative plan'' each place it appears and 
     inserting in lieu thereof ``integrated natural resources 
     management plan'';
       (2) in section 101(c) (16 U.S.C. 670a(c)), in the matter 
     preceding paragraph (1), by striking out ``a cooperative 
     plan'' and inserting in lieu thereof ``an integrated natural 
     resources management plan'';
       (3) in section 101(d) (16 U.S.C. 670a(d)), in the matter 
     preceding paragraph (1), by striking out ``cooperative 
     plans'' and inserting in lieu thereof ``integrated natural 
     resources management plans'';
       (4) in section 101(e) (16 U.S.C. 670a(e)), by striking out 
     ``Cooperative plans'' and inserting in lieu thereof 
     ``Integrated natural resources management plans'';
       (5) in section 102 (16 U.S.C. 670b), by striking out ``a 
     cooperative plan'' and inserting in lieu thereof ``an 
     integrated natural resources management plan'';
       (6) in section 103 (16 U.S.C. 670c), by striking out ``a 
     cooperative plan'' and inserting in lieu thereof ``an 
     integrated natural resources management plan'';
       (7) in section 106(a) (16 U.S.C. 670f(a)), by striking out 
     ``cooperative plans'' and inserting in lieu thereof 
     ``integrated natural resources management plans''; and
       (8) in section 106(c) (16 U.S.C. 670f(c)), by striking out 
     ``cooperative plans'' and inserting in lieu thereof 
     ``integrated natural resources management plans''.
       (c) Required Elements of Plans.--Section 101(b) of the 
     Sikes Act (16 U.S.C. 670a(b)) is amended--
       (1) by striking out ``(b) Each cooperative'' and all that 
     follows through the end of paragraph (1) and inserting in 
     lieu thereof the following:
       ``(b) Required Elements of Plans.--Consistent with the use 
     of military installations to ensure the preparedness of the 
     Armed Forces, each integrated natural resources management 
     plan prepared under subsection (a)--
       ``(1) shall, to the extent appropriate and applicable, 
     provide for--
       ``(A) fish and wildlife management, land management, forest 
     management, and fish- and wildlife-oriented recreation;
       ``(B) fish and wildlife habitat enhancement or 
     modifications;
       ``(C) wetland protection, enhancement, and restoration, 
     where necessary for support of fish, wildlife, or plants;
       ``(D) integration of, and consistency among, the various 
     activities conducted under the plan;
       ``(E) establishment of specific natural resource management 
     goals and objectives and time frames for proposed action;
       ``(F) sustainable use by the public of natural resources to 
     the extent that the use is not inconsistent with the needs of 
     fish and wildlife resources;
       ``(G) public access to the military installation that is 
     necessary or appropriate for the use described in 
     subparagraph (F), subject to requirements necessary to ensure 
     safety and military security;
       ``(H) enforcement of applicable natural resource laws 
     (including regulations);
       ``(I) no net loss in the capability of military 
     installation lands to support the military mission of the 
     installation; and
       ``(J) such other activities as the Secretary of the 
     military department determines appropriate;'';
       (2) in paragraph (2), by adding ``and'' at the end;
       (3) by striking out paragraph (3);
       (4) by redesignating paragraph (4) as paragraph (3); and
       (5) in paragraph (3)(A) (as so redesignated), by striking 
     out ``collect the fees therefor,'' and inserting in lieu 
     thereof ``collect, spend, administer, and account for fees 
     for the permits,''.

     SEC. 2905. REVIEW FOR PREPARATION OF INTEGRATED NATURAL 
                   RESOURCES MANAGEMENT PLANS.

       (a) Definitions.--In this section, the terms ``military 
     installation'' and ``United States'' have the meanings 
     provided in section 100 of the Sikes Act (as added by section 
     2911).
       (b) Review of Military Installations.--
       (1) Review.--Not later than 270 days after the date of 
     enactment of this Act, the Secretary of each military 
     department shall--
       (A) review each military installation in the United States 
     that is under the jurisdiction of that Secretary to determine 
     the military installations for which the preparation of an 
     integrated natural resources management plan under section 
     101 of the Sikes Act (as amended by this title) is 
     appropriate; and
       (B) submit to the Secretary of Defense a report on the 
     determinations.
       (2) Report to congress.--Not later than one year after the 
     date of enactment of this Act, the Secretary of Defense shall 
     submit to Congress a report on the reviews conducted under 
     paragraph (1). The report shall include--
       (A) a list of the military installations reviewed under 
     paragraph (1) for which the Secretary of the appropriate 
     military department determines that the preparation of an 
     integrated natural resources management plan is not 
     appropriate; and
       (B) for each of the military installations listed under 
     subparagraph (A), an explanation of each reason such a plan 
     is not appropriate.
       (c) Deadline for Integrated Natural Resources Management 
     Plans.--Not later than three years after the date of the 
     submission of the report required under subsection (b)(2), 
     the Secretary of each military department shall, for each 
     military installation with respect to which the Secretary has 
     not determined under subsection (b)(2)(A) that preparation of 
     an integrated natural resources management plan is not 
     appropriate--
       (1) prepare and begin implementing such a plan in 
     accordance with section 101(a) of the Sikes Act (as amended 
     by this title); or
       (2) in the case of a military installation for which there 
     is in effect a cooperative plan under section 101(a) of the 
     Sikes Act on the day before the date of enactment of this 
     Act, complete negotiations with the Secretary of the Interior 
     and the heads of the appropriate State agencies regarding 
     changes to the plan that are necessary for the plan to 
     constitute an integrated natural resources management plan 
     that complies with that section, as amended by this title.
       (d) Public Comment.--The Secretary of each military 
     department shall provide an opportunity for the submission of 
     public comments on--
       (1) integrated natural resources management plans proposed 
     under subsection (c)(1); and
       (2) changes to cooperative plans proposed under subsection 
     (c)(2).

     SEC. 2906. TRANSFER OF WILDLIFE CONSERVATION FEES FROM CLOSED 
                   MILITARY INSTALLATIONS.

       Section 101(b)(3)(B) of the Sikes Act (16 U.S.C. 670a(b)) 
     (as redesignated by section 2904(c)(4)) is amended by 
     inserting before the period at the end the following: ``, 
     unless the military installation is subsequently closed, in 
     which case the fees may be transferred to another military 
     installation to be used for the same purposes''.

     SEC. 2907. ANNUAL REVIEWS AND REPORTS.

       Section 101 of the Sikes Act (16 U.S.C. 670a) is amended by 
     adding at the end the following new subsection:
       ``(f) Reviews and Reports.--
       ``(1) Secretary of defense.--Not later than March 1 of each 
     year, the Secretary of Defense shall review the extent to 
     which integrated natural resources management plans were 
     prepared or were in effect and implemented in accordance with 
     this title in the preceding year, and submit a report on the 
     findings of the review to the committees. Each report shall 
     include--

[[Page H9188]]

       ``(A) the number of integrated natural resources management 
     plans in effect in the year covered by the report, including 
     the date on which each plan was issued in final form or most 
     recently revised;
       ``(B) the amounts expended on conservation activities 
     conducted pursuant to the plans in the year covered by the 
     report; and
       ``(C) an assessment of the extent to which the plans comply 
     with this title.
       ``(2) Secretary of the interior.--Not later than March 1 of 
     each year and in consultation with the heads of State fish 
     and wildlife agencies, the Secretary of the Interior shall 
     submit a report to the committees on the amounts expended by 
     the Department of the Interior and the State fish and 
     wildlife agencies in the year covered by the report on 
     conservation activities conducted pursuant to integrated 
     natural resources management plans.
       ``(3) Definition of committees.--In this subsection, the 
     term `committees' means--
       ``(A) the Committee on Resources and the Committee on 
     National Security of the House of Representatives; and
       ``(B) the Committee on Armed Services and the Committee on 
     Environment and Public Works of the Senate.''.

     SEC. 2908 COOPERATIVE AGREEMENTS.

       Section 103a of the Sikes Act (16 U.S.C. 670c-1) is 
     amended--
       (1) in subsection (a), by striking out ``Secretary of 
     Defense'' and inserting in lieu thereof ``Secretary of a 
     military department'';
       (2) by striking out subsection (b) and inserting in lieu 
     thereof the following new subsection:
       ``(b) Multiyear Agreements.--Funds appropriated to the 
     Department of Defense for a fiscal year may be obligated to 
     cover the cost of goods and services provided under a 
     cooperative agreement entered into under subsection (a) or 
     through an agency agreement under section 1535 of title 31, 
     United States Code, during any 18-month period beginning in 
     that fiscal year, without regard to whether the agreement 
     crosses fiscal years.''.

     SEC. 2909. FEDERAL ENFORCEMENT.

       Title I of the Sikes Act is amended--
       (1) by redesignating section 106 (16 U.S.C. 670f) as 
     section 108; and
       (2) by inserting after section 105 (16 U.S.C. 670e) the 
     following new section:

     ``SEC. 106. FEDERAL ENFORCEMENT OF OTHER LAWS.

       ``All Federal laws relating to the management of natural 
     resources on Federal land may be enforced by the Secretary of 
     Defense with respect to violations of the laws that occur on 
     military installations within the United States.''.

     SEC. 2910. NATURAL RESOURCES MANAGEMENT SERVICES.

       Title I of the Sikes Act is amended by inserting after 
     section 106 (as added by section 2909) the following new 
     section:

     ``SEC. 107. NATURAL RESOURCES MANAGEMENT SERVICES.

       ``To the extent practicable using available resources, the 
     Secretary of each military department shall ensure that 
     sufficient numbers of professionally trained natural 
     resources management personnel and natural resources law 
     enforcement personnel are available and assigned 
     responsibility to perform tasks necessary to carry out this 
     title, including the preparation and implementation of 
     integrated natural resources management plans.''.

     SEC. 2911. DEFINITIONS.

       Title I of the Sikes Act is amended by inserting before 
     section 101 (16 U.S.C. 670a) the following new section:

     ``SEC. 100. DEFINITIONS.

       ``In this title:
       ``(1) Military installation.--The term `military 
     installation'--
       ``(A) means any land or interest in land owned by the 
     United States and administered by the Secretary of Defense or 
     the Secretary of a military department, except land under the 
     jurisdiction of the Assistant Secretary of the Army having 
     responsibility for civil works;
       ``(B) includes all public lands withdrawn from all forms of 
     appropriation under public land laws and reserved for use by 
     the Secretary of Defense or the Secretary of a military 
     department; and
       ``(C) does not include any land described in subparagraph 
     (A) or (B) that is subject to an approved recommendation for 
     closure under the Defense Base Closure and Realignment Act of 
     1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
     2687 note).
       ``(2) State fish and wildlife agency.--The term `State fish 
     and wildlife agency' means the one or more agencies of State 
     government that are responsible under State law for managing 
     fish or wildlife resources.
       ``(3) United states.--The term `United States' means the 
     States, the District of Columbia, and the territories and 
     possessions of the United States.''.

     SEC. 2912. REPEAL OF SUPERSEDED PROVISION.

       Section 2 of the Act of October 27, 1986 (Public Law 99-
     561; 16 U.S.C. 670a-1), is repealed.

     SEC. 2913. TECHNICAL AMENDMENTS.

       Title I of the Sikes Act, as amended by this title, is 
     amended--
       (1) in the heading for the title, by striking out 
     ``MILITARY RESERVATIONS'' and inserting in lieu thereof 
     ``MILITARY INSTALLATIONS'';
       (2) in section 101(b)(3) (16 U.S.C. 670a(b)(3)), as 
     redesignated by section 2904(c)(4)--
       (A) in subparagraph (A), by striking out ``the 
     reservation'' and inserting in lieu thereof ``the 
     installation''; and
       (B) in subparagraph (B), by striking out ``the military 
     reservation'' and inserting in lieu thereof ``the military 
     installation'';
       (3) in section 101(c) (16 U.S.C. 670a(c))--
       (A) in paragraph (1), by striking out ``a military 
     reservation'' and inserting in lieu thereof ``a military 
     installation''; and
       (B) in paragraph (2), by striking out ``the reservation'' 
     and inserting in lieu thereof ``the installation'';
       (4) in section 101(e) (16 U.S.C. 670a(e)), by striking 
     ``the Federal Grant and Cooperative Agreement Act of 1977 (41 
     U.S.C. 501 et seq.)'' and inserting ``chapter 63 of title 31, 
     United States Code'';
       (5) in section 102 (16 U.S.C. 670b), by striking out 
     ``military reservations'' and inserting in lieu thereof 
     ``military installations''; and
       (6) in section 103 (16 U.S.C. 670c)--
       (A) by striking out ``military reservations'' and inserting 
     in lieu thereof ``military installations''; and
       (B) by striking out ``such reservations'' and inserting in 
     lieu thereof ``the installations''.

     SEC. 2914. AUTHORIZATIONS OF APPROPRIATIONS.

       (a) Conservation Programs on Military Installations.--
     Subsections (b) and (c) of section 108 of the Sikes Act (as 
     redesignated by section 2909(1)) are each amended by striking 
     out ``1983'' and all that follows through ``1993,'' and 
     inserting in lieu thereof ``1998 through 2003,''.
       (b) Conservation Programs on Public Lands.--Section 209 of 
     the Sikes Act (16 U.S.C. 670o) is amended--
       (1) in subsection (a), by striking out ``the sum of 
     $10,000,000'' and all that follows through ``to enable the 
     Secretary of the Interior'' and inserting in lieu thereof 
     ``$4,000,000 for each of fiscal years 1998 through 2003, to 
     enable the Secretary of the Interior''; and
       (2) in subsection (b), by striking out ``the sum of 
     $12,000,000'' and all that follows through ``to enable the 
     Secretary of Agriculture'' and inserting in lieu thereof 
     ``$5,000,000 for each of fiscal years 1998 through 2003, to 
     enable the Secretary of Agriculture''.
 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS
      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
              activities.
Sec. 3127. Funds available for all national security programs of the 
              Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfers of defense environmental management funds.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Memorandum of understanding for use of national laboratories 
              for ballistic missile defense programs.
Sec. 3132. Defense environmental management privatization projects.
Sec. 3133. International cooperative stockpile stewardship.
Sec. 3134. Modernization of enduring nuclear weapons complex.
Sec. 3135. Tritium production.
Sec. 3136. Processing, treatment, and disposition of spent nuclear fuel 
              rods and other legacy nuclear materials at the Savannah 
              River Site.
Sec. 3137. Limitations on use of funds for laboratory directed research 
              and development purposes.
Sec. 3138. Pilot program relating to use of proceeds of disposal or 
              utilization of certain Department of Energy assets.
Sec. 3139. Modification and extension of authority relating to 
              appointment of certain scientific, engineering, and 
              technical personnel.
Sec. 3140. Limitation on use of funds for subcritical nuclear weapons 
              tests.
Sec. 3141. Limitation on use of certain funds until future use plans 
              are submitted.

                       Subtitle D--Other Matters

Sec. 3151. Plan for stewardship, management, and certification of 
              warheads in the nuclear weapons stockpile.
Sec. 3152. Repeal of obsolete reporting requirements.
Sec. 3153. Study and funding relating to implementation of workforce 
              restructuring plans.
Sec. 3154. Report and plan for external oversight of national 
              laboratories.
Sec. 3155. University-based research collaboration program.
Sec. 3156. Stockpile stewardship program.
Sec. 3157. Reports on advanced supercomputer sales to certain foreign 
              nations.
Sec. 3158. Transfers of real property at certain Department of Energy 
              facilities.
Sec. 3159. Requirement to delegate certain authorities to site manager 
              of Hanford Reservation.
Sec. 3160. Submittal of biennial waste management reports.
Sec. 3161. Department of Energy Security Management Board.

[[Page H9189]]

Sec. 3162. Submittal of annual report on status of security functions 
              at nuclear weapons facilities.
Sec. 3163. Modification of authority on Commission on Maintaining 
              United States Nuclear Weapons Expertise.
Sec. 3164. Land transfer, Bandelier National Monument.
Sec. 3165. Final settlement of Department of Energy community 
              assistance obligations with respect to Los Alamos 
              National Laboratory, New Mexico.
Sec. 3166. Sense of Congress regarding the Y-12 Plant in Oak Ridge, 
              Tennessee.
Sec. 3167. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.
Sec. 3168. Improvements to Greenville Road, Livermore, California.
Sec. 3169. Report on alternative system for availability of funds.
Sec. 3170. Report on remediation under the Formerly Utilized Sites 
              Remedial Action Program.
         Subtitle A--National Security Programs Authorizations

     SEC. 3101. WEAPONS ACTIVITIES.

       (a) Stockpile Stewardship.--Funds are hereby authorized to 
     be appropriated to the Department of Energy for fiscal year 
     1998 for stockpile stewardship in carrying out weapons 
     activities necessary for national security programs in the 
     amount of $1,867,150,000, to be allocated as follows:
       (1) For core stockpile stewardship, $1,387,100,000, to be 
     allocated as follows:
       (A) For operation and maintenance, $1,288,290,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $98,810,000, to be allocated as follows:
       Project 97-D-102, dual-axis radiographic hydrotest 
     facility, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $46,300,000.
       Project 96-D-102, stockpile stewardship facilities 
     revitalization, Phase VI, various locations, $19,810,000.
       Project 96-D-103, ATLAS, Los Alamos National Laboratory, 
     Los Alamos, New Mexico, $13,400,000.
       Project 96-D-105, contained firing facility addition, 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $19,300,000.
       (2) For inertial fusion, $414,800,000, to be allocated as 
     follows:
       (A) For operation and maintenance, $217,000,000.
       (B) For the following plant project (including maintenance, 
     restoration, planning, construction, acquisition, and 
     modification of facilities, and land acquisition related 
     thereto), $197,800,000, to be allocated as follows:
       Project 96-D-111, national ignition facility, location to 
     be determined, $197,800,000.
       (3) For technology transfer and education, $65,250,000, to 
     be allocated as follows:
       (A) For technology transfer, $56,250,000.
       (B) For education, $9,000,000.
       (b) Stockpile Management.--Funds are hereby authorized to 
     be appropriated to the Department of Energy for fiscal year 
     1998 for stockpile management in carrying out weapons 
     activities necessary for national security programs in the 
     amount of $2,052,150,000, to be allocated as follows:
       (1) For operation and maintenance, $1,891,265,000.
       (2) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $160,885,000, to be allocated as follows:
       Project 98-D-123, stockpile management restructuring 
     initiative, tritium factory modernization and consolidation, 
     Savannah River Site, Aiken, South Carolina, $11,000,000.
       Project 98-D-124, stockpile management restructuring 
     initiative, Y-12 Plant consolidation, Oak Ridge, Tennessee, 
     $6,450,000.
       Project 98-D-125, tritium extraction facility, Savannah 
     River Site, Aiken, South Carolina, $9,650,000.
       Project 98-D-126, accelerator production of tritium, 
     various locations, $67,865,000.
       Project 97-D-122, nuclear materials storage facility 
     renovation, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $9,200,000.
       Project 97-D-124, steam plant wastewater treatment facility 
     upgrade, Y-12 Plant, Oak Ridge, Tennessee, $1,900,000.
       Project 96-D-122, sewage treatment quality upgrade (STQU), 
     Pantex Plant, Amarillo, Texas, $6,900,000.
       Project 96-D-123, retrofit heating, ventilation, and air 
     conditioning and chillers for ozone protection, Y-12 Plant, 
     Oak Ridge, Tennessee, $2,700,000.
       Project 95-D-102, chemistry and metallurgy research (CMR) 
     upgrades project, Los Alamos National Laboratory, Los Alamos, 
     New Mexico, $5,000,000.
       Project 95-D-122, sanitary sewer upgrade, Y-12 Plant, Oak 
     Ridge, Tennessee, $12,600,000.
       Project 94-D-124, hydrogen fluoride supply system, Y-12 
     Plant, Oak Ridge, Tennessee, $1,400,000.
       Project 94-D-125, upgrade life safety, Kansas City Plant, 
     Kansas City, Missouri, $2,000,000.
       Project 93-D-122, life safety upgrades, Y-12 Plant, Oak 
     Ridge, Tennessee, $2,100,000.
       Project 92-D-126, replace emergency notification system, 
     various locations, $3,200,000.
       Project 88-D-122, facilities capability assurance program, 
     various locations, $18,920,000.
       (c) Program Direction.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1998 
     for program direction in carrying out weapons activities 
     necessary for national security programs in the amount of 
     $250,000,000.
       (d) Adjustment.--The total amount authorized to be 
     appropriated pursuant to this section is the sum of the 
     amounts authorized to be appropriated in subsections (a) 
     through (c) reduced by $22,608,000.

     SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

       (a) Environmental Restoration.--Funds are hereby authorized 
     to be appropriated to the Department of Energy for fiscal 
     year 1998 for environmental restoration in carrying out 
     environmental restoration and waste management activities 
     necessary for national security programs in the amount of 
     $1,010,973,000, of which $388,000,000 shall be allocated to 
     the uranium enrichment decontamination and decommissioning 
     fund.
       (b) Defense Environmental Management Closure Projects.--
     Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1998 for closure 
     projects in carrying out environmental restoration and waste 
     management activities necessary for national security 
     programs in the amount of $875,000,000, to be allocated as 
     follows:
       Project 98-CLR-1, Rocky Flats Closure Site, Denver, 
     Colorado, $648,400,000.
       Project 98-CLR-2, Fernald Environmental Management Project, 
     Fernald, Ohio, $226,600,000.
       (c) Waste Management.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1998 
     for waste management in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $1,571,644,000, 
     to be allocated as follows:
       (1) For operation and maintenance, $1,490,876,000.
       (2) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $80,768,000, to be allocated as follows:
       Project 98-D-401, H-tank farm storm water systems upgrade, 
     Savannah River Site, Aiken, South Carolina, $1,000,000.
       Project 97-D-402, tank farm restoration and safe 
     operations, Richland, Washington, $13,961,000.
       Project 96-D-408, waste management upgrades, various 
     locations, $8,200,000.
       Project 95-D-402, install permanent electrical service, 
     Waste Isolation Pilot Plant, Carlsbad, New Mexico, $176,000.
       Project 95-D-405, industrial landfill V and construction/
     demolition landfill VII, Y-12 Plant, Oak Ridge, Tennessee, 
     $3,800,000.
       Project 95-D-407, 219-S secondary containment upgrade, 
     Richland, Washington, $2,500,000.
       Project 94-D-404, Melton Valley storage tank capacity 
     increase, Oak Ridge National Laboratory, Oak Ridge, 
     Tennessee, $1,219,000.
       Project 94-D-407, initial tank retrieval systems, Richland, 
     Washington, $15,100,000.
       Project 93-D-187, high-level waste removal from filled 
     waste tanks, Savannah River Site, Aiken, South Carolina, 
     $17,520,000.
       Project 92-D-172, hazardous waste treatment and processing 
     facility, Pantex Plant, Amarillo, Texas, $5,000,000.
       Project 89-D-174, replacement high-level waste evaporator, 
     Savannah River Site, Aiken, South Carolina, $1,042,000.
       Project 86-D-103, decontamination and waste treatment 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $11,250,000.
       (d) Technology Development.--Funds are hereby authorized to 
     be appropriated to the Department of Energy for fiscal year 
     1998 for technology development in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $220,000,000.
       (e) Nuclear Materials and Facilities Stabilization.--Funds 
     are hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1998 for nuclear materials and 
     facilities stabilization in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $1,256,821,000, 
     to be allocated as follows:
       (1) For operation and maintenance, $1,176,114,000.
       (2) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $80,707,000, to be allocated as follows:
       Project 98-D-453, plutonium stabilization and handling 
     system for plutonium finishing plant, Richland, Washington, 
     $8,136,000.
       Project 98-D-700, road rehabilitation, Idaho National 
     Engineering Laboratory, Idaho, $500,000.
       Project 97-D-450, actinide packaging and storage facility, 
     Savannah River Site, Aiken, South Carolina, $18,000,000.
       Project 97-D-451, B-Plant safety class ventilation 
     upgrades, Richland, Washington, $2,000,000.
       Project 97-D-470, environmental monitoring laboratory/
     health physics site support facility, Savannah River Site, 
     Aiken, South Carolina, $5,600,000.
       Project 96-D-406, spent nuclear fuels canister storage and 
     stabilization facility, Richland, Washington, $16,744,000.
       Project 96-D-461, electrical distribution upgrade, Idaho 
     National Engineering Laboratory, Idaho, $2,927,000.
       Project 96-D-464, electrical and utility systems upgrade, 
     Idaho Chemical Processing Plant, Idaho National Engineering 
     Laboratory, Idaho, $14,985,000.

[[Page H9190]]

       Project 96-D-471, chlorofluorocarbon heating, ventilation, 
     and air conditioning and chiller retrofit, Savannah River 
     Site, Aiken, South Carolina, $8,500,000.
       Project 95-D-155, upgrade site road infrastructure, 
     Savannah River Site, South Carolina, $2,713,000.
       Project 95-D-456, security facilities consolidation, Idaho 
     Chemical Processing Plant, Idaho National Engineering 
     Laboratory, Idaho, $602,000.
       (f) Program Direction.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1998 
     for program direction in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $345,751,000.
       (g) Policy and Management.--Funds are hereby authorized to 
     be appropriated to the Department of Energy for fiscal year 
     1998 for policy and management in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $20,000,000.
       (h) Environmental Science Program.--Funds are hereby 
     authorized to be appropriated to the Department of Energy for 
     fiscal year 1998 for the environmental science program in 
     carrying out environmental restoration and waste management 
     activities necessary for national security programs in the 
     amount of $55,000,000.
       (i) Defense Environmental Management Privatization.--Funds 
     are hereby authorized to be appropriated to the Department of 
     Energy for fiscal year 1998 for environmental management 
     privatization projects in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $224,700,000, to 
     be allocated as follows:
       Project 98-PVT-1, contact handled transuranic waste 
     transportation, Carlsbad, New Mexico, $21,000,000.
       Project 98-PVT-2, spent nuclear fuel dry storage, Idaho 
     Falls, Idaho, $27,000,000.
       Project 98-PVT-3, waste pits remedial action, Fernald, 
     Ohio, $25,000,000.
       Project 98-PVT-4, spent nuclear fuel transfer and storage, 
     Savannah River, South Carolina, $25,000,000.
       Project 98-PVT-5, waste disposal, Oak Ridge, Tennessee, 
     $5,000,000.
       Project 98-PVT-6, Ohio silo 3 waste treatment, Fernald, 
     Ohio, $6,700,000.
       Project 97-PVT-1, tank waste remediation system phase 1, 
     Hanford, Washington, $115,000,000.
       (j) Adjustment.--The total amount authorized to be 
     appropriated pursuant to this section for subsections (a) 
     through (h) is the sum of the amounts authorized to be 
     appropriated in those subsections reduced by $50,000,000.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 1998 
     for other defense activities in carrying out programs 
     necessary for national security in the amount of 
     $1,642,310,000, to be allocated as follows:
       (1) For verification and control technology, $478,200,000, 
     to be allocated as follows:
       (A) For nonproliferation and verification research and 
     development, $210,000,000.
       (B) For arms control, $234,600,000.
       (C) For intelligence, $33,600,000.
       (2) For nuclear safeguards and security, $47,200,000.
       (3) For security investigations, $25,000,000.
       (4) For emergency management, $20,000,000.
       (5) For program direction, $78,900,000.
       (6) For worker and community transition assistance, 
     $61,159,000, to be allocated as follows:
       (A) For worker and community transition, $57,659,000.
       (B) For program direction, $3,500,000.
       (7) For fissile materials control and disposition, 
     $103,451,000, to be allocated as follows:
       (A) For operation and maintenance, $99,451,000.
       (B) For program direction, $4,000,000.
       (8) For environment, safety, and health, defense, 
     $94,000,000, to be allocated as follows:
       (A) For the Office of Environment, Safety, and Health 
     (Defense), $74,000,000.
       (B) For program direction, $20,000,000.
       (9) For the Office of Hearings and Appeals, $1,900,000.
       (10) For nuclear energy, $47,000,000, to be allocated as 
     follows:
       (A) For nuclear technology research and development 
     (electrometallurgical), $12,000,000.
       (B) For international nuclear safety (Soviet-designed 
     reactors), $35,000,000.
       (11) For naval reactors development, $670,500,000, to be 
     allocated as follows:
       (A) For operation and maintenance, $635,920,000.
       (B) For program direction, $20,080,000.
       (C) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $14,500,000, to be allocated as follows:
       Project 98-D-200, site laboratory/facility upgrade, various 
     locations, $5,700,000.
       Project 97-D-201, advanced test reactor secondary coolant 
     refurbishment, Idaho National Engineering Laboratory, Idaho, 
     $4,600,000.
       Project 95-D-200, laboratory systems and hot cell upgrades, 
     various locations, $1,100,000.
       Project 90-N-102, expended core facility dry cell project, 
     Naval Reactors Facility, Idaho, $3,100,000.
       (12) For independent assessment of Department of Energy 
     projects, $15,000,000.
       (b) Adjustment.--The total amount authorized to be 
     appropriated pursuant to this section is the sum of the 
     amounts authorized to be appropriated in paragraphs (1) 
     through (12) of subsection (a) reduced by $6,047,000.

     SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 1998 for payment to the 
     Nuclear Waste Fund established in section 302(c) of the 
     Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the 
     amount of $190,000,000.
                Subtitle B--Recurring General Provisions

     SEC. 3121. REPROGRAMMING.

       (a) In General.--Until the Secretary of Energy submits to 
     the congressional defense committees the report referred to 
     in subsection (b) and a period of 30 days has elapsed after 
     the date on which such committees receive the report, the 
     Secretary may not use amounts appropriated pursuant to this 
     title for any program--
       (1) in amounts that exceed, in a fiscal year--
       (A) 110 percent of the amount authorized for that program 
     by this title; or
       (B) $1,000,000 more than the amount authorized for that 
     program by this title; or
       (2) which has not been presented to, or requested of, 
     Congress.
       (b) Report.--(1) The report referred to in subsection (a) 
     is a report containing a full and complete statement of the 
     action proposed to be taken and the facts and circumstances 
     relied upon in support of such proposed action.
       (2) In the computation of the 30-day period under 
     subsection (a), there shall be excluded any day on which 
     either House of Congress is not in session because of an 
     adjournment of more than 3 days to a day certain.
       (c) Limitations.--(1) In no event may the total amount of 
     funds obligated pursuant to this title exceed the total 
     amount authorized to be appropriated by this title.
       (2) Funds appropriated pursuant to this title may not be 
     used for an item for which Congress has specifically denied 
     funds.

     SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

       (a) In General.--The Secretary of Energy may carry out any 
     construction project under the general plant projects 
     authorized by this title if the total estimated cost of the 
     construction project does not exceed $5,000,000.
       (b) Report to Congress.--If, at any time during the 
     construction of any general plant project authorized by this 
     title, the estimated cost of the project is revised because 
     of unforeseen cost variations and the revised cost of the 
     project exceeds $5,000,000, the Secretary shall immediately 
     furnish a complete report to the congressional defense 
     committees explaining the reasons for the cost variation.

     SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

       (a) In General.--(1) Except as provided in paragraph (2), 
     construction on a construction project may not be started or 
     additional obligations incurred in connection with the 
     project above the total estimated cost, whenever the current 
     estimated cost of the construction project, which is 
     authorized by section 3101, 3102, or 3103, or which is in 
     support of national security programs of the Department of 
     Energy and was authorized by any previous Act, exceeds by 
     more than 25 percent the higher of--
       (A) the amount authorized for the project; or
       (B) the amount of the total estimated cost for the project 
     as shown in the most recent budget justification data 
     submitted to Congress.
       (2) An action described in paragraph (1) may be taken if--
       (A) the Secretary of Energy has submitted to the 
     congressional defense committees a report on the actions and 
     the circumstances making such action necessary; and
       (B) a period of 30 days has elapsed after the date on which 
     the report is received by the committees.
       (3) In the computation of the 30-day period under paragraph 
     (2), there shall be excluded any day on which either House of 
     Congress is not in session because of an adjournment of more 
     than 3 days to a day certain.
       (b) Exception.--Subsection (a) shall not apply to any 
     construction project which has a current estimated cost of 
     less than $5,000,000.

     SEC. 3124. FUND TRANSFER AUTHORITY.

       (a) Transfer to Other Federal Agencies.--The Secretary of 
     Energy may transfer funds authorized to be appropriated to 
     the Department of Energy pursuant to this title to other 
     Federal agencies for the performance of work for which the 
     funds were authorized. Funds so transferred may be merged 
     with and be available for the same purposes and for the same 
     period as the authorizations of the Federal agency to which 
     the amounts are transferred.
       (b) Transfer Within Department of Energy.--(1) Subject to 
     paragraph (2), the Secretary of Energy may transfer funds 
     authorized to be appropriated to the Department of Energy 
     pursuant to this title between any such authorizations. 
     Amounts of authorizations so transferred may be merged with 
     and be available for the same purposes and for the same 
     period as the authorization to which the amounts are 
     transferred.
       (2) Not more than five percent of any such authorization 
     may be transferred between authorizations under paragraph 
     (1). No such authorization may be increased or decreased by 
     more than five percent by a transfer under such paragraph.
       (c) Limitation.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide funds for items relating to 
     activities necessary for national security programs that have 
     a higher priority than the items from which the funds are 
     transferred; and
       (2) may not be used to provide funds for an item for which 
     Congress has specifically denied funds.
       (d) Notice to Congress.--The Secretary of Energy shall 
     promptly notify the Committee on Armed Services of the Senate 
     and the Committee on National Security of the House of 
     Representatives of any transfer of funds to or from 
     authorizations under this title.

[[Page H9191]]

     SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

       (a) Requirement for Conceptual Design.--(1) Subject to 
     paragraph (2) and except as provided in paragraph (3), before 
     submitting to Congress a request for funds for a construction 
     project that is in support of a national security program of 
     the Department of Energy, the Secretary of Energy shall 
     complete a conceptual design for that project.
       (2) If the estimated cost of completing a conceptual design 
     for a construction project exceeds $3,000,000, the Secretary 
     shall submit to Congress a request for funds for the 
     conceptual design before submitting a request for funds for 
     the construction project.
       (3) The requirement in paragraph (1) does not apply to a 
     request for funds--
       (A) for a construction project the total estimated cost of 
     which is less than $5,000,000; or
       (B) for emergency planning, design, and construction 
     activities under section 3126.
       (b) Authority for Construction Design.--(1) Within the 
     amounts authorized by this title, the Secretary of Energy may 
     carry out construction design (including architectural and 
     engineering services) in connection with any proposed 
     construction project if the total estimated cost for such 
     design does not exceed $600,000.
       (2) If the total estimated cost for construction design in 
     connection with any construction project exceeds $600,000, 
     funds for such design must be specifically authorized by law.

     SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND 
                   CONSTRUCTION ACTIVITIES.

       (a) Authority.--The Secretary of Energy may use any funds 
     available to the Department of Energy pursuant to an 
     authorization in this title, including those funds authorized 
     to be appropriated for advance planning and construction 
     design under sections 3101, 3102, and 3103, to perform 
     planning, design, and construction activities for any 
     Department of Energy national security program construction 
     project that, as determined by the Secretary, must proceed 
     expeditiously in order to protect public health and safety, 
     to meet the needs of national defense, or to protect 
     property.
       (b) Limitation.--The Secretary may not exercise the 
     authority under subsection (a) in the case of any 
     construction project until the Secretary has submitted to the 
     congressional defense committees a report on the activities 
     that the Secretary intends to carry out under this section 
     and the circumstances making such activities necessary.
       (c) Specific Authority.--The requirement of section 
     3125(b)(2) does not apply to emergency planning, design, and 
     construction activities conducted under this section.

     SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
                   OF THE DEPARTMENT OF ENERGY.

       Subject to the provisions of appropriations Acts and 
     section 3121, amounts appropriated pursuant to this title for 
     management and support activities and for general plant 
     projects are available for use, when necessary, in connection 
     with all national security programs of the Department of 
     Energy.

     SEC. 3128. AVAILABILITY OF FUNDS.

       (a) In General.--Except as provided in subsection (b), when 
     so specified in an appropriations Act, amounts appropriated 
     for operation and maintenance or for plant projects may 
     remain available until expended.
       (b) Exception for Program Direction Funds.--Amounts 
     appropriated for program direction pursuant to an 
     authorization of appropriations in subtitle A shall remain 
     available to be expended only until the end of fiscal year 
     2000.

     SEC. 3129. TRANSFERS OF DEFENSE ENVIRONMENTAL MANAGEMENT 
                   FUNDS.

       (a) Transfer Authority for Defense Environmental Management 
     Funds.--The Secretary of Energy shall provide the manager of 
     each field office of the Department of Energy with the 
     authority to transfer defense environmental management funds 
     from a program or project under the jurisdiction of the 
     office to another such program or project.
       (b) Limitations.--(1) Only one transfer may be made to or 
     from any program or project under subsection (a) in a fiscal 
     year.
       (2) The amount transferred to or from a program or project 
     under subsection (a) may not exceed $5,000,000 in a fiscal 
     year.
       (3) A transfer may not be carried out by a manager of a 
     field office under subsection (a) unless the manager 
     determines that the transfer is necessary to address a risk 
     to health, safety, or the environment or to assure the most 
     efficient use of defense environmental management funds at 
     the field office.
       (4) Funds transferred pursuant to subsection (a) may not be 
     used for an item for which Congress has specifically denied 
     funds or for a new program or project that has not been 
     authorized by Congress.
       (c) Exemption From Reprogramming Requirements.--The 
     requirements of section 3121 shall not apply to transfers of 
     funds pursuant to subsection (a).
       (d) Notification.--The Secretary, acting through the 
     Assistant Secretary of Energy for Environmental 
     Management, shall notify Congress of any transfer of funds 
     pursuant to subsection (a) not later than 30 days after 
     such transfer occurs.
       (e) Definitions.--In this section:
       (1) The term ``program or project'' means, with respect to 
     a field office of the Department of Energy, any of the 
     following:
       (A) A project listed in subsection (c) or (e) of section 
     3102 being carried out by the office.
       (B) A program referred to in subsection (a), (c), (d), or 
     (e) of section 3102 being carried out by the office.
       (C) A project or program not described in subparagraph (A) 
     or (B) that is for environmental restoration or waste 
     management activities necessary for national security 
     programs of the Department, that is being carried out by the 
     office, and for which defense environmental management funds 
     have been authorized and appropriated before the date of 
     enactment of this Act.
       (2) The term ``defense environmental management funds'' 
     means funds appropriated to the Department of Energy pursuant 
     to an authorization for carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs.
       (f) Duration of Authority.--The managers of the field 
     offices of the Department may exercise the authority provided 
     under subsection (a) during the period beginning on October 
     1, 1997, and ending on September 30, 1998.
   Subtitle C--Program Authorizations, Restrictions, and Limitations

     SEC. 3131. MEMORANDUM OF UNDERSTANDING FOR USE OF NATIONAL 
                   LABORATORIES FOR BALLISTIC MISSILE DEFENSE 
                   PROGRAMS.

       (a) Memorandum of Understanding.--The Secretary of Energy 
     and the Secretary of Defense shall enter into a memorandum of 
     understanding for the purpose of improving and facilitating 
     the use by the Secretary of Defense of the expertise of the 
     national laboratories for the ballistic missile defense 
     programs of the Department of Defense.
       (b) Assistance.--The memorandum of understanding shall 
     provide that the Secretary of Defense shall request such 
     assistance with respect to the ballistic missile defense 
     programs of the Department of Defense as the Secretary of 
     Defense and the Secretary of Energy determine can be provided 
     through the technical skills and experience of the national 
     laboratories, using such financial arrangements as the 
     Secretaries determine are appropriate.
       (c) Activities.--The memorandum of understanding shall 
     provide that the national laboratories shall carry out those 
     activities necessary to respond to requests for assistance 
     from the Secretary of Defense referred to in subsection (b). 
     Such activities may include the identification of technical 
     modifications and test techniques, the analysis of physics 
     problems, the consolidation of range and test activities, and 
     the analysis and simulation of theater missile defense 
     deployment problems.
       (d) National Laboratories.--For purposes of this section, 
     the national laboratories are--
       (1) the Lawrence Livermore National Laboratory, Livermore, 
     California;
       (2) the Los Alamos National Laboratory, Los Alamos, New 
     Mexico; and
       (3) the Sandia National Laboratories, Albuquerque, New 
     Mexico.

     SEC. 3132. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION 
                   PROJECTS.

       (a) Authority To Enter into Contracts.--The Secretary of 
     Energy may, using funds authorized to be appropriated by 
     section 3102(i) for a project referred to in that section, 
     enter into a contract that--
       (1) is awarded on a competitive basis;
       (2) requires the contractor to construct or acquire any 
     equipment or facilities required to carry out the contract;
       (3) requires the contractor to bear any of the costs of the 
     construction, acquisition, and operation of such equipment or 
     facilities that arise before the commencement of the 
     provision of goods or services under the contract; and
       (4) provides for payment to the contractor under the 
     contract only upon the meeting of performance specifications 
     in the contract.
       (b) Notice and Wait.--(1) The Secretary may not enter into 
     a contract under subsection (a), exercise an authorization to 
     proceed with such a contract or extend any contract period 
     for such a contract by more than one year until 30 days after 
     the date on which the Secretary submits to the congressional 
     defense committees a report with respect to the contract.
       (2) Except as provided in paragraph (3), a report under 
     paragraph (1) with respect to a contract shall set forth--
       (A) the anticipated costs and fees of the Department under 
     the contract, including the anticipated maximum amount of 
     such costs and fees;
       (B) any performance specifications in the contract;
       (C) the anticipated dates of commencement and completion of 
     the provision of goods or services under the contract;
       (D) the allocation between the Department and the 
     contractor of any financial, regulatory, or environmental 
     obligations under the contract;
       (E) any activities planned or anticipated to be required 
     with respect to the project after completion of the contract;
       (F) the site services or other support to be provided the 
     contractor by the Department under the contract;
       (G) the goods or services to be provided by the Department 
     or contractor under the contract, including any additional 
     obligations to be borne by the Department or contractor with 
     respect to such goods or services;
       (H) if the contract provides for financing of the project 
     by an entity or entities other than the United States, a 
     detailed comparison of the costs of financing the project 
     through such entity or entities with the costs of financing 
     the project by the United States;
       (I) the schedule for the contract;
       (J) the costs the Department would otherwise have incurred 
     in obtaining the goods or services covered by the contract if 
     the Department had not proposed to obtain the goods or 
     services under this section;
       (K) an estimate and justification of the cost savings, if 
     any, to be realized through the contract, including the 
     assumptions underlying the estimate;
       (L) the effect of the contract on any ancillary schedules 
     applicable to the facility concerned,

[[Page H9192]]

     including milestones in site compliance agreements; and
       (M) the plans for maintaining financial and programmatic 
     accountability for activities under the contract.
       (3) In the case of a contract under subsection (a) at the 
     Hanford Reservation, the report under paragraph (1) shall set 
     forth--
       (A) the matters specified in paragraph (2); and
       (B) if the contract contemplates two pilot vitrification 
     plants--
       (i) an analysis of the basis for the selection of each of 
     the plants in lieu of a single pilot vitrification plant; and
       (ii) a detailed comparison of the costs to the United 
     States of two pilot plants with the costs to the United 
     States of a single pilot plant.
       (c) Cost Variations.--(1)(A) The Secretary may not enter 
     into a contract for a project referred to in subparagraph 
     (B), or obligate funds attributable to the capital portion of 
     the cost of such a contract, whenever the current estimated 
     cost of the project exceeds the amount of the estimated cost 
     of the project as shown in the most recent budget 
     justification data submitted to Congress.
       (B) Subparagraph (A) applies to the following:
       (i) A project authorized by section 3102(i).
       (ii) A project authorized by section 3103 of the National 
     Defense Authorization Act for Fiscal Year 1997 (Public Law 
     104-201; 110 Stat. 2824) for which a contract has not been 
     entered into as of the date of enactment of this Act.
       (2) The Secretary may not obligate funds attributable to 
     the capital portion of the cost of a contract entered into 
     before such date for a project authorized by such section 
     3103 whenever the current estimated cost of the project 
     equals or exceeds 110 percent of the amount of the estimated 
     cost of the project as shown in the most recent budget 
     justification data submitted to Congress.
       (d) Use of Funds for Termination of Contract.--Not later 
     than 15 days before the Secretary obligates funds available 
     for a project authorized by section 3102(i) to terminate the 
     contract for the project under subsection (a), the Secretary 
     shall notify the congressional defense committees of the 
     Secretary's intent to obligate the funds for that purpose.
       (e) Annual Report on Contracts.--(1) Not later than 
     February 28 of each year, the Secretary shall submit to the 
     congressional defense committees a report on the activities, 
     if any, carried out under each contract referred to in 
     paragraph (2) during the preceding year. The report shall 
     include an update with respect to each such contract of the 
     matters specified under subsection (b)(1) as of the date of 
     the report.
       (2) A contract referred to in paragraph (1) is the 
     following:
       (A) A contract under subsection (a) for a project referred 
     to in that subsection.
       (B) A contract under section 3103 of the National Defense 
     Authorization Act for Fiscal Year 1997.
       (f) Assessment of Contracting Without Sufficient 
     Appropriations.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     congressional defense committees a report assessing whether, 
     and under what circumstances, the Secretary could enter into 
     contracts for defense environmental management privatization 
     projects in the absence of sufficient appropriations to meet 
     obligations under such contracts without thereby violating 
     the provisions of section 1341 of title 31, United States 
     Code.

     SEC. 3133. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP.

       (a) Funding Prohibition.--No funds authorized to be 
     appropriated or otherwise available to the Department of 
     Energy for fiscal year 1998 may be obligated or expended to 
     conduct any activities associated with international 
     cooperative stockpile stewardship.
       (b) Exceptions.--Subsection (a) does not apply to the 
     following:
       (1) Activities conducted between the United States and the 
     United Kingdom.
       (2) Activities conducted between the United States and 
     France.
       (3) Activities carried out under title III of this Act 
     relating to cooperative threat reduction with states of the 
     former Soviet Union.

     SEC. 3134. MODERNIZATION OF ENDURING NUCLEAR WEAPONS COMPLEX.

       (a) Funding.--Subject to subsection (b), of the funds 
     authorized to be appropriated to the Department of Energy 
     pursuant to section 3101, $85,000,000 shall be available for 
     carrying out the program described in section 3137(a) of the 
     National Defense Authorization Act for Fiscal Year 1996 (42 
     U.S.C. 2121 note).
       (b) Limitation on Availability.--None of the funds 
     available under subsection (a) for carrying out the program 
     referred to in that subsection may be obligated or expended 
     until 30 days after the date of the receipt by Congress of 
     the report required under subsection (c).
       (c) Report on Allocation of Funds.--Not later than 30 days 
     after the date of enactment of this Act, the Secretary of 
     Energy shall submit to the congressional defense committees a 
     report setting forth the proposed allocation among specific 
     Department of Energy sites of the funds available under 
     subsection (a) for the program referred to in that 
     subsection.

     SEC. 3135. TRITIUM PRODUCTION.

       (a) Tritium Production Decision.--(1) Not later than 
     December 31, 1998, the Secretary of Energy shall make a final 
     decision on the technologies to be utilized, and the schedule 
     to be adopted, for tritium production in order to meet the 
     requirements in the Nuclear Weapons Stockpile Memorandum 
     relating to tritium production, including the tritium 
     production date of 2005 specified in the Nuclear Weapons 
     Stockpile Memorandum.
       (2) In making the final decision, the Secretary shall take 
     into account the following:
       (A) The requirements for tritium production specified in 
     the Nuclear Weapons Stockpile Memorandum, including, in 
     particular, the requirements for the so-called ``upload 
     hedge'' component of the nuclear weapons stockpile.
       (B) The activities of the Department of Energy relating to 
     the evaluation and demonstration of technologies under the 
     accelerator program and the commercial light water reactor 
     program.
       (C) The potential liabilities and benefits of each 
     potential technology for tritium production, including--
       (i) regulatory and other barriers that might prevent the 
     production of tritium using the technology by the production 
     date referred to in paragraph (1);
       (ii) potential difficulties, if any, in licensing the 
     technology;
       (iii) the variability, if any, in tritium production rates 
     using the technology; and
       (iv) any other benefits (including scientific or research 
     benefits or the generation of revenue) associated with the 
     technology.
       (b) Reports on Decision.--(1) Upon making a final decision 
     under paragraph (1) of subsection (a), the Secretary shall 
     submit to the congressional defense committees a report on 
     the final decision. The report shall include an assessment of 
     how the selected technology addresses the items taken into 
     account under paragraph (2) of that subsection.
       (2) If the Secretary determines that it is not possible to 
     make the final decision by the date specified in paragraph 
     (1) of subsection (a), the Secretary shall submit to the 
     congressional defense committees on that date a report that 
     explains in detail why the final decision cannot be made by 
     that date.
       (c) Limitation on Availability of Funds.--The Secretary may 
     not obligate or expend any funds authorized to be 
     appropriated or otherwise made available for the Department 
     of Energy by this Act for the purpose of evaluating or 
     utilizing any technology for the production of tritium other 
     than a commercial light water reactor or an accelerator until 
     the later of--
       (1) January 31, 1999; or
       (2) the date that is 30 days after the date on which the 
     Secretary makes a final decision under subsection (a).

     SEC. 3136. PROCESSING, TREATMENT, AND DISPOSITION OF SPENT 
                   NUCLEAR FUEL RODS AND OTHER LEGACY NUCLEAR 
                   MATERIALS AT THE SAVANNAH RIVER SITE.

       (a) Funding.--Of the funds authorized to be appropriated 
     pursuant to section 3102(e), not more than $47,000,000 shall 
     be available for the implementation of a program to 
     accelerate the receipt, processing (including the H-canyon 
     restart operations), reprocessing, separation, reduction, 
     deactivation, stabilization, isolation, and interim storage 
     of high level nuclear waste associated with Department of 
     Energy spent fuel rods, foreign spent fuel rods, and other 
     nuclear materials that are located at the Savannah River 
     Site.
       (b) Requirement for Continuing Operations at Savannah River 
     Site.--The Secretary of Energy shall continue operations and 
     maintain a high state of readiness at the F-canyon and H-
     canyon facilities at the Savannah River Site and shall 
     provide technical staff necessary to operate and maintain 
     such facilities at that state of readiness.

     SEC. 3137. LIMITATIONS ON USE OF FUNDS FOR LABORATORY 
                   DIRECTED RESEARCH AND DEVELOPMENT PURPOSES.

       (a) General Limitations.--(1) No funds authorized to be 
     appropriated or otherwise made available to the Department of 
     Energy in any fiscal year after fiscal year 1997 for weapons 
     activities may be obligated or expended for activities under 
     the Department of Energy Laboratory Directed Research and 
     Development Program, or under any Department of Energy 
     technology transfer program or cooperative research and 
     development agreement, unless such activities support the 
     national security mission of the Department of Energy.
       (2) No funds authorized to be appropriated or otherwise 
     made available to the Department of Energy in any fiscal year 
     after fiscal year 1997 for environmental restoration, waste 
     management, or nuclear materials and facilities stabilization 
     may be obligated or expended for activities under the 
     Department of Energy Laboratory Directed Research and 
     Development Program, or under any Department of Energy 
     technology transfer program or cooperative research and 
     development agreement, unless such activities support the 
     environmental restoration mission, waste management mission, 
     or materials stabilization mission, as the case may be, of 
     the Department of Energy.
       (b) Limitation in Fiscal Year 1998 Pending Submittal of 
     Annual Report.--Not more than 30 percent of the funds 
     authorized to be appropriated or otherwise made available to 
     the Department of Energy in fiscal year 1998 for laboratory 
     directed research and development may be obligated or 
     expended for such research and development until the 
     Secretary of Energy submits to the congressional defense 
     committees the report required by section 3136(b) of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2831; 42 U.S.C. 7257b) in 
     1998.
       (c) Submittal Date for Annual Report on Laboratory Directed 
     Research and Development Program.--Paragraph (1) of section 
     3136(b) of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 110 Stat. 2831; 42 U.S.C. 
     7257b) is amended by striking out ``The Secretary of Energy 
     shall annually submit'' and inserting in lieu thereof ``Not 
     later than February 1 each year, the Secretary of Energy 
     shall submit''.
       (d) Assessment of Funding Level for Laboratory Directed 
     Research and Development.--The Secretary shall include in the 
     report

[[Page H9193]]

     submitted under such section 3136(b)(1) in 1998 an assessment 
     of the funding required to carry out laboratory directed 
     research and development, including a recommendation for the 
     percentage of the funds provided to Government-owned, 
     contractor-operated laboratories for national security 
     activities that should be made available for such research 
     and development under section 3132(c) of the National Defense 
     Authorization Act for Fiscal Year 1991 (42 U.S.C. 7257a(c)).
       (e) Definition.--In this section, the term ``laboratory 
     directed research and development'' has the meaning given 
     that term in section 3132(d) of the National Defense 
     Authorization Act for Fiscal Year 1991 (42 U.S.C. 7257a(d)).

     SEC. 3138. PILOT PROGRAM RELATING TO USE OF PROCEEDS OF 
                   DISPOSAL OR UTILIZATION OF CERTAIN DEPARTMENT 
                   OF ENERGY ASSETS.

       (a) Purpose.--The purpose of this section is to encourage 
     the Secretary of Energy to dispose of or otherwise utilize 
     certain assets of the Department of Energy by making 
     available to the Secretary the proceeds of such disposal or 
     utilization for purposes of defraying the costs of such 
     disposal or utilization.
       (b) Use of Proceeds To Defray Costs.--(1) Notwithstanding 
     section 3302 of title 31, United States Code, the Secretary 
     may retain from the proceeds of the sale, lease, or disposal 
     of an asset under subsection (c) an amount equal to the cost 
     of the sale, lease, or disposal of the asset. The Secretary 
     shall utilize amounts retained under this paragraph to defray 
     the cost of the sale, lease, or disposal.
       (2) For purposes of paragraph (1), the cost of a sale, 
     lease, or disposal shall include--
       (A) the cost of administering the sale, lease, or disposal;
       (B) the cost of recovering or preparing the asset concerned 
     for the sale, lease, or disposal; and
       (C) any other cost associated with the sale, lease, or 
     disposal.
       (c) Covered Transactions.--Subsection (b) applies to the 
     following transactions:
       (1) The sale of heavy water at the Savannah River Site, 
     South Carolina, that is under the jurisdiction of the Defense 
     Environmental Management Program.
       (2) The sale of precious metals that are under the 
     jurisdiction of the Defense Environmental Management Program.
       (3) The lease of buildings and other facilities located at 
     the Hanford Reservation, Washington, that are under the 
     jurisdiction of the Defense Environmental Management Program.
       (4) The lease of buildings and other facilities located at 
     the Savannah River Site that are under the jurisdiction of 
     the Defense Environmental Management Program.
       (5) The disposal of equipment and other personal property 
     located at the Rocky Flats Defense Environmental Technology 
     Site, Colorado, that is under the jurisdiction of the Defense 
     Environmental Management Program.
       (6) The disposal of materials at the National Electronics 
     Recycling Center, Oak Ridge, Tennessee, that are under the 
     jurisdiction of the Defense Environmental Management Program.
       (d) Applicability of Disposal Authority.--Nothing in this 
     section shall be construed to limit the application of 
     sections 202 and 203(j) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 483 and 
     484(j)) to the disposal of equipment and other personal 
     property covered by this section.
       (e) Report.--Not later than January 31, 1999, the Secretary 
     shall submit to the congressional defense committees a report 
     on amounts retained by the Secretary under subsection (b) 
     during fiscal year 1998.

     SEC. 3139. MODIFICATION AND EXTENSION OF AUTHORITY RELATING 
                   TO APPOINTMENT OF CERTAIN SCIENTIFIC, 
                   ENGINEERING, AND TECHNICAL PERSONNEL.

       (a) Repeal of Requirement for EPA Study.--Section 3161 of 
     the National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 3095; 42 U.S.C. 7231 note) is 
     amended--
       (1) by striking out subsection (c); and
       (2) by redesignating subsection (d) as subsection (c).
       (b) Extension of Authority.--Paragraph (1) of subsection 
     (c) of such section, as so redesignated, is amended by 
     striking out ``September 30, 1997'' and inserting in lieu 
     thereof ``September 30, 1999''.

     SEC. 3140. LIMITATION ON USE OF FUNDS FOR SUBCRITICAL NUCLEAR 
                   WEAPONS TESTS.

       (a) Limitation.--The Secretary of Energy may not conduct 
     any subcritical nuclear weapons tests using funds 
     appropriated or otherwise available to the Secretary for 
     fiscal year 1998 until the Secretary submits to the Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a detailed report on 
     the use of the funds available to the Secretary for fiscal 
     years 1996 and 1997 to conduct such tests.
       (b) Exception.--Subsection (a) shall not apply to the use 
     of funds covered by that subsection for subcritical nuclear 
     weapons tests if the Secretary--
       (1) determines that the use of such funds for such tests is 
     urgently required to meet national security interests; and
       (2) notifies Congress of that determination before using 
     such funds for such tests.

     SEC. 3141. LIMITATION ON USE OF CERTAIN FUNDS UNTIL FUTURE 
                   USE PLANS ARE SUBMITTED.

       (a) Limitation.--(1) Subject to paragraph (2), the 
     Secretary of Energy may not use more than 80 percent of the 
     funds available to the Secretary pursuant to the 
     authorization of appropriations in section 3102(g) until the 
     Secretary submits the plans described in subsection (b).
       (2) The limitation in paragraph (1) shall cease to be in 
     effect if the Secretary submits, by March 15, 1998, the 
     report described in subsection (c).
       (b) Plans.--The plans referred to in subsection (a)(1) are 
     the draft future use plan and the final future use plan 
     required under section 3153(f) of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2840; 42 U.S.C. 7274k note).
       (c) Report.--If the Secretary is unable to submit all of 
     the plans described in subsection (b) by the deadlines set 
     forth in such section 3153(f), the Secretary shall submit to 
     Congress a report containing, for each plan that will not be 
     submitted by the applicable deadline--
       (1) the status of the plan;
       (2) the reasons why the plan cannot be submitted by the 
     applicable deadline; and
       (3) the date by which the plan will be submitted.
                       Subtitle D--Other Matters

     SEC. 3151. PLAN FOR STEWARDSHIP, MANAGEMENT, AND 
                   CERTIFICATION OF WARHEADS IN THE NUCLEAR 
                   WEAPONS STOCKPILE.

       (a) Plan Requirement.--The Secretary of Energy shall 
     develop and annually update a plan for maintaining the 
     nuclear weapons stockpile. The plan shall cover, at a 
     minimum, stockpile stewardship, stockpile management, and 
     program direction and shall be consistent with the 
     programmatic and technical requirements of the most recent 
     annual Nuclear Weapons Stockpile Memorandum.
       (b) Plan Elements.--The plan and each update of the plan 
     shall set forth the following:
       (1) The number of warheads (including active and inactive 
     warheads) for each warhead type in the nuclear weapons 
     stockpile.
       (2) The current age of each warhead type, and any plans for 
     stockpile lifetime extensions and modifications or 
     replacement of each warhead type.
       (3) The process by which the Secretary of Energy is 
     assessing the lifetime, and requirements for lifetime 
     extension or replacement, of the nuclear and nonnuclear 
     components of the warheads (including active and inactive 
     warheads) in the nuclear weapons stockpile.
       (4) The process used in recertifying the safety, security, 
     and reliability of each warhead type in the nuclear weapons 
     stockpile.
       (5) Any concerns which would affect the ability of the 
     Secretary of Energy to recertify the safety, security, or 
     reliability of warheads in the nuclear weapons stockpile 
     (including active and inactive warheads).
       (c) Annual Submission of Plan to Congress.--The Secretary 
     of Energy shall submit to Congress the plan developed under 
     subsection (a) not later than March 15, 1998, and shall 
     submit an updated version of the plan not later than March 15 
     of each year thereafter. The plan shall be submitted in both 
     classified and unclassified form.

     SEC. 3152. REPEAL OF OBSOLETE REPORTING REQUIREMENTS.

       (a) Annual Report on Activities of the Atomic Energy 
     Commission.--(1) Section 251 of the Atomic Energy Act of 1954 
     (42 U.S.C. 2016) is repealed.
       (2) The table of sections at the beginning of that Act is 
     amended by striking out the item relating to section 251.
       (b) Annual Report on Weapons Activities Budgets.--Section 
     3156 of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 110 Stat. 2841; 42 U.S.C. 
     7271c) is repealed.
       (c) Annual Update of Master Plan for Nuclear Weapons 
     Stockpile.--Section 3153 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 624; 42 U.S.C. 2121 note) is repealed.
       (d) Annual Report on Weapons Activities Budgets.--Section 
     3159 of the National Defense Authorization Act for Fiscal 
     Year 1996 (Public Law 104-106; 110 Stat. 626; 42 U.S.C. 7271b 
     note) is repealed.
       (e) Annual Report on Stockpile Stewardship Program.--
     Section 3138 of the National Defense Authorization Act for 
     Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1946; 42 
     U.S.C. 2121 note) is amended--
       (1) by striking out subsections (d) and (e);
       (2) by redesignating subsections (f), (g), and (h) as 
     subsections (d), (e), and (f), respectively; and
       (3) in subsection (e), as so redesignated, by striking out 
     ``and the 60-day period referred to in subsection 
     (e)(2)(A)(ii)''.
       (f) Annual Report on Development of Tritium Production 
     Capacity.--Section 3134 of the National Defense Authorization 
     Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2639) 
     is repealed.
       (g) Annual Report on Research Relating to Defense Waste 
     Cleanup Technology Program.--Section 3141 of the National 
     Defense Authorization Act for Fiscal Years 1990 and 1991 
     (Public Law 101-189; 103 Stat. 1679; 42 U.S.C. 7274a) is 
     amended--
       (1) by striking out subsection (c); and
       (2) by redesignating subsection (d) as subsection (c).
       (h) Quarterly Report on Major DoE National Security 
     Programs.--Section 3143 of the National Defense Authorization 
     Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 
     Stat. 1681; 42 U.S.C. 7271a) is repealed.
       (i) Annual Report on Nuclear Test Ban Readiness Program.--
     Section 1436 of the National Defense Authorization Act, 
     Fiscal Year 1989 (Public Law 100-456; 102 Stat. 2075; 42 
     U.S.C. 2121 note) is amended by striking out subsection (e).

     SEC. 3153. STUDY AND FUNDING RELATING TO IMPLEMENTATION OF 
                   WORKFORCE RESTRUCTURING PLANS.

       (a) Study Requirement.--The Secretary of Energy shall 
     conduct a study on the effects of workforce restructuring 
     plans for defense nuclear facilities developed pursuant to 
     section

[[Page H9194]]

     3161 of the National Defense Authorization Act for Fiscal 
     Year 1993 (42 U.S.C. 7274h).
       (b) Matters Covered by Study.-- The study shall cover the 
     four-year period preceding the date of the enactment of this 
     Act and shall include the following:
       (1) An analysis of the number of jobs created by any 
     employee retraining, education, and reemployment assistance 
     and any community impact assistance provided in each 
     workforce restructuring plan developed pursuant to section 
     3161 of the National Defense Authorization Act for Fiscal 
     Year 1993.
       (2) An analysis of other benefits provided pursuant to such 
     plans, including any assistance provided to community reuse 
     organizations.
       (3) A description of the funds expended, and the funds 
     obligated but not expended, pursuant to such plans as of the 
     date of the report.
       (4) A description of the criteria used since October 23, 
     1992, in providing assistance pursuant to such plans.
       (5) A comparison of any similar benefits provided--
       (A) pursuant to such a plan to employees whose employment 
     at the defense nuclear facility covered by the plan is 
     terminated; and
       (B) to employees whose employment at a facility where more 
     than 50 percent of the revenues are derived from contracts 
     with the Department of Defense has been terminated as a 
     result of cancellation, termination, or completion of 
     contracts with the Department of Defense and the employees 
     whose employment is terminated constitute more than 15 
     percent of the employees at that facility.
       (c) Conduct of Study.--(1) The study shall be conducted 
     through a contract with an independent private auditing firm.
       (2) The Secretary of Energy may not enter into any contract 
     for the conduct of the study until the Secretary submits a 
     notification of the proposed contract award to the 
     congressional defense committees.
       (3) The Secretary of Energy and the Secretary of Defense 
     shall each ensure that any firm conducting the study is 
     provided access to all documents in the possession of the 
     Department of Energy or the Department of Defense, as the 
     case may be, that are relevant to the study, including 
     documents in the possession of the Inspector General of the 
     Department of Energy or the Inspector General of the 
     Department of Defense.
       (d) Report on Study.--The Secretary of Energy shall submit 
     a report to Congress on the results of the study not later 
     than March 31, 1998.
       (e) Limitation on Use of Funds for Local Impact 
     Assistance.--(1) None of the funds authorized to be 
     appropriated to the Department of Energy pursuant to section 
     3103(6) may be used for local impact assistance pursuant to a 
     plan under section 3161(c)(6) of the National Defense 
     Authorization Act for Fiscal Year 1993 (42 U.S.C. 
     7274h(c)(6)) until--
       (A) with respect to assistance referred to in section 
     3161(c)(6)(A) of such Act, the Secretary of Energy 
     coordinates with, provides a copy of the plan to, and obtains 
     the approval of the Secretary of Labor; and
       (B) with respect to assistance referred to in section 
     3161(c)(6)(C) of such Act, the Secretary of Energy 
     coordinates with, provides a copy of the plan to, and obtains 
     the approval of the Secretary of Commerce.
       (2) For purposes of paragraph (1), if the Secretary of 
     Labor or the Secretary of Commerce does not disapprove a plan 
     within 60 days after receiving a copy of the plan, the plan 
     is deemed to be approved.
       (f) Semiannual Report to Congress of Local Impact 
     Assistance.--The Secretary of Energy shall submit to Congress 
     every six months a report setting forth a description of, and 
     the amount or value of, all local impact assistance provided 
     during the preceding six months under section 3161(c)(6) of 
     the National Defense Authorization Act of 1993 (42 U.S.C. 
     7274h(c)(6)).
       (g) Effect on USEC Privatization Act.--Nothing in this 
     section shall be construed as diminishing or affecting the 
     obligations of the Secretary of Energy under section 
     3110(a)(5) of the USEC Privatization Act (Public Law 104-134; 
     110 Stat. 1321-341; 42 U.S.C. 2297h-8(a)(5)).
       (h) Definition.--In this section, the term ``defense 
     nuclear facility'' has the meaning provided the term 
     ``Department of Energy defense nuclear facility'' in section 
     3163 of the National Defense Authorization Act for Fiscal 
     Year 1993 ( Public Law 102-484; 42 U.S.C. 7274j).

     SEC. 3154. REPORT AND PLAN FOR EXTERNAL OVERSIGHT OF NATIONAL 
                   LABORATORIES.

       (a) Report.--Not later than July 1, 1999, the Secretary of 
     Energy shall submit to Congress a report on the external 
     oversight of the national laboratories.
       (b) Matters Covered.--The report shall contain the 
     following:
       (1) A description of the external oversight practices at 
     the national laboratories and an analysis of the 
     effectiveness of such practices, including the effect of such 
     practices on the productivity of the laboratories and the 
     research conducted by the laboratories.
       (2) Recommendations regarding the continuation, 
     consolidation, or discontinuation of the external oversight 
     practices described in paragraph (1), and the rationale for 
     the recommendations.
       (3) Recommendations for any new external oversight 
     practices that should be implemented, and the rationale for 
     the recommendations.
       (4) A plan for carrying out the recommendations.
       (c) National Laboratories Covered.--For purposes of this 
     section, the national laboratories are--
       (1) the Lawrence Livermore National Laboratory, Livermore, 
     California;
       (2) the Los Alamos National Laboratory, Los Alamos, New 
     Mexico; and
       (3) the Sandia National Laboratories, Albuquerque, New 
     Mexico.

     SEC. 3155. UNIVERSITY-BASED RESEARCH COLLABORATION PROGRAM.

       (a) Findings.--Congress makes the following findings:
       (1) The maintenance of scientific and engineering 
     competence in the United States is vital to long-term 
     national security and the defense and national security 
     missions of the Department of Energy.
       (2) Engaging the universities and colleges of the Nation in 
     research on long-range problems of vital national security 
     interest will be critical to solving the technology 
     challenges faced within the defense and national security 
     programs of the Department of Energy in the next century.
       (3) Enhancing collaboration among the national 
     laboratories, universities and colleges, and industry will 
     contribute significantly to the performance of these 
     Department of Energy missions.
       (b) Program.--The Secretary of Energy shall establish a 
     university program at a location that can develop the most 
     effective collaboration among national laboratories, 
     universities and colleges, and industry in support of 
     scientific and engineering advancement in key Department of 
     Energy defense and national security program areas.
       (c) Funding.--Of the funds authorized to be appropriated in 
     this title to the Department of Energy for fiscal year 1998, 
     the Secretary shall make $5,000,000 available for the 
     establishment and operation of the program under subsection 
     (b).

     SEC. 3156. STOCKPILE STEWARDSHIP PROGRAM.

       (a) Findings.--Congress makes the following findings:
       (1) Eliminating the threat posed by nuclear weapons to the 
     United States is an important national security goal.
       (2) As long as nuclear threats remain, the nuclear 
     deterrent of the United States must be effective and 
     reliable.
       (3) A safe, secure, effective, and reliable United States 
     nuclear stockpile is central to the current nuclear 
     deterrence strategy of the United States.
       (4) The Secretary of Energy has undertaken a stockpile 
     stewardship and management program to ensure the safety, 
     security, effectiveness, and reliability of the nuclear 
     weapons stockpile of the United States, consistent with all 
     United States treaty requirements and the requirements of the 
     nuclear deterrence strategy of the United States.
       (5) It is the policy of the current administration that new 
     nuclear warhead designs are not required to effectively 
     implement the nuclear deterrence strategy of the United 
     States.
       (b) Policy.--It is the policy of the United States that--
       (1) activities of the stockpile stewardship program shall 
     be directed toward ensuring that the United States possesses 
     a safe, secure, effective, and reliable nuclear stockpile, 
     consistent with the national security requirements of the 
     United States; and
       (2) stockpile stewardship activities of the United States 
     shall be conducted in conformity with the terms of the Treaty 
     on the Non-Proliferation of Nuclear Weapons and the 
     Comprehensive Test Ban Treaty signed by the President on 
     September 24, 1996, when and if that treaty enters into 
     force.

     SEC. 3157. REPORTS ON ADVANCED SUPERCOMPUTER SALES TO CERTAIN 
                   FOREIGN NATIONS.

       (a) Reports.--The Secretary of Energy shall require that 
     any company that is a participant in the Accelerated 
     Strategic Computing Initiative (ASCI) program of the 
     Department of Energy report to the Secretary and to the 
     Secretary of Defense each sale by that company to a country 
     designated as a Tier III country of a computer capable of 
     operating at a speed in excess of 2,000 millions theoretical 
     operations per second (MTOPS). The report shall include a 
     description of the following with respect to each such sale:
       (1) The anticipated end-use of the computer sold.
       (2) The software included with the computer.
       (3) Any arrangement under the terms of the sale regarding--
       (A) upgrading the computer;
       (B) servicing the computer; or
       (C) furnishing spare parts for the computer.
       (b) Covered Countries.--For purposes of this section, the 
     countries designated as Tier III countries are the countries 
     listed as ``computer tier 3'' eligible countries in part 
     740.7 of title 15 of the Code of Federal Regulations, as in 
     effect on June 10, 1997 (or any successor list).
       (c) Quarterly Submission of Reports.--The Secretary of 
     Energy shall require that reports under subsection (a) be 
     submitted quarterly.
       (d) Annual Report.--The Secretary of Energy shall submit to 
     Congress an annual report containing all information received 
     under subsection (a) during the preceding year. The first 
     annual report shall be submitted not later than July 1, 1998.

     SEC. 3158. TRANSFERS OF REAL PROPERTY AT CERTAIN DEPARTMENT 
                   OF ENERGY FACILITIES.

       (a) Transfer Regulations.--(1) The Secretary of Energy 
     shall prescribe regulations for the transfer by sale or lease 
     of real property at Department of Energy defense nuclear 
     facilities for the purpose of permitting the economic 
     development of the property.
       (2) The Secretary of Energy may not transfer real property 
     under the regulations prescribed under paragraph (1) until--
       (A) the Secretary submits a notification of the proposed 
     transfer to the congressional defense committees; and
       (B) a period of 30 days has elapsed following the date on 
     which the notification is submitted.
       (b) Indemnification.--(1) Except as provided in paragraph 
     (3) and subject to subsection (c),

[[Page H9195]]

     in the sale or lease of real property pursuant to the 
     regulations prescribed under subsection (a), the Secretary of 
     Energy may hold harmless and indemnify a person or entity 
     described in paragraph (2) against any claim for injury to 
     person or property that results from the release or 
     threatened release of a hazardous substance or pollutant or 
     contaminant as a result of Department of Energy activities at 
     the defense nuclear facility on which the real property is 
     located. Before entering into any agreement for such a sale 
     or lease, the Secretary shall notify the person or entity 
     that the Secretary has authority to provide indemnification 
     to the person or entity under this subsection. The Secretary 
     shall include in any agreement for such a sale or lease a 
     provision stating whether indemnification is or is not 
     provided.
       (2) Paragraph (1) applies to the following persons and 
     entities:
       (A) Any State that acquires ownership or control of real 
     property of a defense nuclear facility.
       (B) Any political subdivision of a State that acquires such 
     ownership or control.
       (C) Any other person or entity that acquires such ownership 
     or control.
       (3) To the extent the persons and entities described in 
     paragraph (2) contributed to any such release or threatened 
     release, paragraph (1) shall not apply.
       (c) Conditions.--(1) No indemnification on a claim for 
     injury may be provided under this section unless the person 
     or entity making a request for the indemnification--
       (A) notifies the Secretary of Energy in writing within two 
     years after such claim accrues;
       (B) furnishes to the Secretary copies of pertinent papers 
     received by the person or entity;
       (C) furnishes evidence or proof of the claim;
       (D) provides, upon request by the Secretary, access to the 
     records and personnel of the person or entity for purposes of 
     defending or settling the claim; and
       (E) begins action within six months after the date of 
     mailing, by certified or registered mail, of notice of final 
     denial of the claim by the Secretary.
       (2) For purposes of paragraph (1)(A), the date on which a 
     claim accrues is the date on which the person asserting the 
     claim knew (or reasonably should have known) that the injury 
     to person or property referred to in subsection (b)(1) was 
     caused or contributed to by the release or threatened release 
     of a hazardous substance, pollutant, or contaminant as a 
     result of Department of Energy activities at the defense 
     nuclear facility on which the real property is located.
       (d) Authority of Secretary of Energy.--(1) In any case in 
     which the Secretary of Energy determines that the Secretary 
     may be required to indemnify a person or entity under this 
     section for any claim for injury to person or property 
     referred to in subsection (b)(1), the Secretary may settle or 
     defend the claim on behalf of that person or entity.
       (2) In any case described in paragraph (1), if the person 
     or entity that the Secretary may be required to indemnify 
     does not allow the Secretary to settle or defend the claim, 
     the person or entity may not be indemnified with respect to 
     that claim under this section.
       (e) Relationship to Other Law.--Nothing in this section 
     shall be construed as affecting or modifying in any way 
     section 120(h) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)).
       (f) Definitions.--In this section:
       (1) The term ``defense nuclear facility'' has the meaning 
     provided by the term ``Department of Energy defense nuclear 
     facility'' in section 318 of the Atomic Energy Act of 1954 
     (42 U.S.C. 2286g).
       (2) The terms ``hazardous substance'', ``release'', and 
     ``pollutant or contaminant'' have the meanings provided by 
     section 101 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601).

     SEC. 3159. REQUIREMENT TO DELEGATE CERTAIN AUTHORITIES TO 
                   SITE MANAGER OF HANFORD RESERVATION.

       Section 3173(b) of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2848; 42 
     U.S.C. 7274k) is amended--
       (1) in paragraph (1)--
       (A) by striking out ``In addition'' and inserting in lieu 
     thereof ``Except as provided in paragraph (5), in addition''; 
     and
       (B) by striking out `` Act,'' and inserting in lieu thereof 
     ``subtitle,''; and
       (2) by adding at the end the following new paragraph:
       ``(5) In the case of the Hanford Reservation, Richland, 
     Washington, the Secretary shall delegate to the Site Manager 
     the authority described in paragraph (1) for fiscal year 
     1998. The Secretary may withdraw the delegated authority if 
     the Secretary--
       ``(A) determines that the Site Manager of the Hanford 
     Reservation has misused or misapplied that authority; and
       ``(B) the Secretary submits to Congress a notification of 
     the Secretary's intent to withdraw the authority.''.

     SEC. 3160. SUBMITTAL OF BIENNIAL WASTE MANAGEMENT REPORTS.

       Section 3153(b)(2)(B) of the National Defense Authorization 
     Act for Fiscal Year 1994 (42 U.S.C. 7274k(b)(2)(B)) is 
     amended by striking out ``odd-numbered year after 1995'' and 
     inserting in lieu thereof ``odd-numbered year after 1997''.

     SEC. 3161. DEPARTMENT OF ENERGY SECURITY MANAGEMENT BOARD.

       (a) Establishment.--(1) The Secretary of Energy shall 
     establish a board to be known as the ``Department of Energy 
     Security Management Board'' (in this section referred to as 
     the ``Board'').
       (2) The Board shall advise the Secretary on policy matters, 
     operational concerns, strategic planning, personnel, budget, 
     procurement, and development of priorities relating to the 
     security functions of the Department of Energy.
       (b) Members.--The Board shall be comprised of--
       (1) the Secretary of Energy, who shall serve as chairman;
       (2) the Director of the Office of Nonproliferation and 
     National Security of the Department of Energy;
       (3) the Assistant Secretary of Energy for Environmental 
     Management;
       (4) the Assistant Secretary of Energy for Defense Programs;
       (5) the Assistant Secretary of Energy for Environment, 
     Safety, and Health;
       (6) the Associate Deputy Secretary of Energy for Field 
     Management;
       (7) three individuals selected by the Secretary of Defense 
     and appointed by the Secretary of Energy;
       (8) an individual selected by the Director of the Federal 
     Bureau of Investigation and appointed by the Secretary of 
     Energy; and
       (9) an individual selected by the Director of Central 
     Intelligence and appointed by the Secretary of Energy.
       (c) Appointments.--(1) The Secretary of Defense, the 
     Director of the Federal Bureau of Investigation, and the 
     Director of Central Intelligence shall consult with the 
     Secretary of Energy in selecting individuals for appointment 
     under paragraphs (7), (8), and (9), respectively, of 
     subsection (b).
       (2) The Secretary of Energy may not appoint as a member of 
     the Board under paragraph (7), (8), or (9) of subsection (b) 
     an officer or employee of the Department of Energy, an 
     employee of a contractor or subcontractor of the Department, 
     or an individual under contract with the Department.
       (3) The Secretary of Energy shall appoint members of the 
     Board under paragraphs (7), (8), and (9) of subsection (b) 
     not later than January 15, 1998.
       (d) Vacancies.--Any vacancy in the Board shall be filled in 
     the same manner as the original appointment.
       (e) Personnel Matters.--(1)(A) Each member of the Board who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level V of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in the performance of the duties 
     of the Board.
       (B) All members of the Board who are officers or employees 
     of the United States shall serve without compensation in 
     addition to that received for their services as officers or 
     employees of the United States.
       (2) The members of the Board 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 Board.
       (f) Applicability of FACA.--The provisions of the Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     activities of the Board under this section.
       (g) Termination.--The Board shall terminate on October 31, 
     2000.
       (h) Security Functions Defined.--In this section, the term 
     ``security functions'' means all Department of Energy 
     activities related to the safeguarding and security of 
     nuclear weapons and materials, protection of classified and 
     unclassified controlled nuclear information, and physical and 
     personnel security.

     SEC. 3162. SUBMITTAL OF ANNUAL REPORT ON STATUS OF SECURITY 
                   FUNCTIONS AT NUCLEAR WEAPONS FACILITIES.

       (a) In General.--Not later than September 1 each year, the 
     Secretary of Energy shall submit to the congressional defense 
     committees the report entitled ``Annual Report to the 
     President on the Status of Safeguards and Security of 
     Domestic Nuclear Weapons Facilities'', or any successor 
     report to such report.
       (b) Requirement Relating to Reports Through Fiscal Year 
     2000.--The Secretary shall include with each report submitted 
     under subsection (a) in fiscal years 1998 through 2000 any 
     comments on such report by the members of the Department of 
     Energy Security Management Board established under section 
     3161 that such members consider appropriate.

     SEC. 3163. MODIFICATION OF AUTHORITY ON COMMISSION ON 
                   MAINTAINING UNITED STATES NUCLEAR WEAPONS 
                   EXPERTISE.

       (a) Commencement of Activities.--Subsection (b)(1) of 
     section 3162 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2844; 42 
     U.S.C. 2121 note) is amended, effective January 1, 1998--
       (1) in subparagraph (C), by adding at the end the following 
     new sentence: ``The chairman may be designated once five 
     members of the Commission have been appointed under 
     subparagraph (A).''; and
       (2) by adding at the end the following:
       ``(E) The Commission may commence its activities under this 
     section upon the designation of the chairman of the 
     Commission under subparagraph (C).''.
       (b) Deadline for Report.--Subsection (d) of that section is 
     amended by striking out ``March 15, 1998,'' and inserting in 
     lieu thereof ``March 15, 1999,''.

     SEC. 3164. LAND TRANSFER, BANDELIER NATIONAL MONUMENT.

       (a) Transfer of Administrative Jurisdiction.--The Secretary 
     of Energy shall transfer to

[[Page H9196]]

     the Secretary of the Interior administrative jurisdiction 
     over a parcel of real property consisting of approximately 
     4.47 acres as depicted on the map entitled ``Boundary Map, 
     Bandelier National Monument'', No. 315/80,051, dated March 
     1995.
       (b) Boundary Modification.--The boundary of the Bandelier 
     National Monument established by Proclamation No. 1322 (16 
     U.S.C. 431 note) is modified to include the real property 
     transferred under subsection (a).
       (c) Public Availability of Map.--The map described in 
     subsection (a) shall be on file and available for public 
     inspection in the Lands Office at the Southwest System 
     Support Office of the National Park Service, Santa Fe, New 
     Mexico, and in the office of the Superintendent of Bandelier 
     National Monument.
       (d) Administration.--The real property and interests in 
     real property transferred under subsection (a) shall be--
       (1) administered as part of Bandelier National Monument; 
     and
       (2) subject to all laws applicable to the Bandelier 
     National Monument and all laws generally applicable to units 
     of the National Park System.

     SEC. 3165. FINAL SETTLEMENT OF DEPARTMENT OF ENERGY COMMUNITY 
                   ASSISTANCE OBLIGATIONS WITH RESPECT TO LOS 
                   ALAMOS NATIONAL LABORATORY, NEW MEXICO.

       (a) In General.--The Secretary of Energy shall--
       (1) convey, without consideration, to the Incorporated 
     County of Los Alamos, New Mexico (in this section referred to 
     as the ``County''), or to the designee of the County, fee 
     title to the parcels of land that are allocated for 
     conveyance to the County in the agreement under subsection 
     (e); and
       (2) transfer to the Secretary of the Interior, in trust for 
     the Pueblo of San Ildefonso (in this section referred to as 
     the ``Pueblo''), administrative jurisdiction over the parcels 
     that are allocated for transfer to the Secretary of the 
     Interior in such agreement.
       (b) Preliminary Identification of Parcels of Land for 
     Conveyance or Transfer.--(1) Not later than 90 days after the 
     date of enactment of this Act, the Secretary of Energy shall 
     submit to the congressional defense committees a report 
     identifying the parcels of land under the jurisdiction of the 
     Secretary at the Los Alamos National Laboratory that are 
     suitable for conveyance or transfer under this section.
       (2) A parcel is suitable for conveyance or transfer for 
     purposes of paragraph (1) if the parcel--
       (A) is not required to meet the national security mission 
     of the Department of Energy or will not be required for that 
     purpose before the end of the 10-year period beginning on the 
     date of enactment of this Act;
       (B) is likely to be conveyable or transferable, as the case 
     may be, under this section not later than the end of such 
     period; and
       (C) is suitable for use for a purpose specified in 
     subsection (h).
       (c) Review of Title.--(1) Not later than one year after the 
     date of enactment of this Act, the Secretary shall submit to 
     the congressional defense committees a report setting forth 
     the results of a title search on each parcel of land 
     identified as suitable for conveyance or transfer under 
     subsection (b), including an analysis of any claims against 
     or other impairments to the fee title to each such parcel.
       (2) In the period beginning on the date of the completion 
     of the title search with respect to a parcel under paragraph 
     (1) and ending on the date of the submittal of the report 
     under that paragraph, the Secretary shall take appropriate 
     actions to resolve the claims against or other impairments, 
     if any, to fee title that are identified with respect to the 
     parcel in the title search.
       (d) Environmental Restoration.--(1) Not later than 21 
     months after the date of enactment of this Act, the Secretary 
     shall--
       (A) identify the environmental restoration or remediation, 
     if any, that is required with respect to each parcel of land 
     identified under subsection (b) to which the United States 
     has fee title;
       (B) carry out any review of the environmental impact of the 
     conveyance or transfer of each such parcel that is required 
     under the provisions of the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.); and
       (C) submit to Congress a report setting forth the results 
     of the activities under subparagraphs (A) and (B).
       (2) If the Secretary determines under paragraph (1) that a 
     parcel described in paragraph (1)(A) requires environmental 
     restoration or remediation, the Secretary shall, to the 
     maximum extent practicable, complete the environmental 
     restoration or remediation of the parcel not later than 10 
     years after the date of enactment of this Act.
       (e) Agreement for Allocation of Parcels.--As soon as 
     practicable after completing the review of titles to parcels 
     of land under subsection (c), the Secretary of the Interior, 
     on behalf of the Pueblo and for the County, shall submit to 
     the Secretary of Energy an agreement between the Secretary of 
     the Interior and the County that allocates between the 
     Secretary of the Interior and the County the parcels to which 
     the United States has fee title.
       (f) Plan for Conveyance and Transfer.--(1) Not later than 
     90 days after the date of the submittal to the Secretary of 
     Energy of the agreement under subsection (e), the Secretary 
     shall submit to the congressional defense committees a plan 
     for conveying or transferring parcels of land under this 
     section in accordance with the allocation specified in the 
     agreement.
       (2) The plan under paragraph (1) shall provide for the 
     completion of the conveyance or transfer of parcels under 
     this section not later than 9 months after the date of the 
     submittal of the plan under that paragraph.
       (g) Conveyance or Transfer.--(1) Subject to paragraphs (2) 
     and (3), the Secretary shall convey or transfer parcels of 
     land in accordance with the allocation specified in the 
     agreement submitted to the Secretary under subsection (e).
       (2) In the case of a parcel allocated under the agreement 
     that is not available for conveyance or transfer in 
     accordance with the requirement in subsection (f)(2) by 
     reason of its requirement to meet the national security 
     mission of the Department, the Secretary shall convey or 
     transfer the parcel, as the case may be, when the parcel is 
     no longer required for that purpose.
       (3)(A) In the case of a parcel allocated under the 
     agreement that is not available for conveyance or transfer in 
     accordance with such requirement by reason of requirements 
     for environmental restoration or remediation, the Secretary 
     shall convey or transfer the parcel, as the case may be, upon 
     the completion of the environmental restoration or 
     remediation that is required with respect to the parcel.
       (B) If the Secretary determines that environmental 
     restoration or remediation cannot reasonably be expected to 
     be completed with respect to a parcel by the end of the 10-
     year period beginning on the date of enactment of this Act, 
     the Secretary shall not convey or transfer the parcel under 
     this section.
       (h) Use of Conveyed or Transferred Land.--The parcels of 
     land conveyed or transferred under this section shall be used 
     for historic, cultural, or environmental preservation 
     purposes, economic diversification purposes, or community 
     self-sufficiency purposes.
       (i) Treatment of Conveyances and Transfers.--(1) The 
     purpose of the conveyances and transfers under this section 
     is to fulfill the obligations of the United States with 
     respect to Los Alamos National Laboratory, New Mexico, under 
     sections 91 and 94 of the Atomic Energy Community Act of 1955 
     (42 U.S.C. 2391, 2394).
       (2) Upon the completion of the conveyance or transfer of 
     the parcels of land available for conveyance or transfer 
     under this section, the Secretary shall make no further 
     payments with respect to Los Alamos National Laboratory under 
     section 91 or section 94 of the Atomic Energy Community Act 
     of 1955.

     SEC. 3166. SENSE OF CONGRESS REGARDING THE Y-12 PLANT IN OAK 
                   RIDGE, TENNESSEE.

       It is the sense of Congress that the Y-12 Plant in Oak 
     Ridge, Tennessee, should be used as a national prototype 
     center and that other executive agencies should utilize this 
     center, where appropriate, to maximize their efficiency and 
     cost effectiveness.

     SEC. 3167. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF 
                   LOS ALAMOS NATIONAL LABORATORY, NEW MEXICO.

       (a) Availability of Funds.--Of the funds authorized to be 
     appropriated or otherwise made available to the Department of 
     Energy by this title, $5,000,000 shall be available for 
     payment by the Secretary of Energy to a nonprofit or not-for-
     profit educational foundation chartered to enhance 
     educational activities in the public schools in the vicinity 
     of Los Alamos National Laboratory, New Mexico (in this 
     section referred to as the ``Foundation'').
       (b) Use of Funds.--(1) The Foundation shall utilize funds 
     provided under subsection (a) the basis of, or as a 
     contribution to, an endowment fund for the Foundation.
       (2) The Foundation shall use the income generated from 
     investments in the endowment fund that are attributable to 
     the payment made under subsection (a) to fund programs to 
     support the educational needs of children in public schools 
     in the vicinity of Los Alamos National Laboratory.
       (c) Report.--Not later than March 1, 1998, the Secretary 
     shall submit to the congressional defense committees a report 
     setting forth the following:
       (1) The amount of, and a schedule for, payments to the 
     Foundation by the Secretary that are in addition to the 
     payment provided under subsection (a).
       (2) A plan to ensure that the Secretary makes no other 
     payments to support the educational activities referred to in 
     subsection (b)(2) after September 30, 2002.

     SEC. 3168. IMPROVEMENTS TO GREENVILLE ROAD, LIVERMORE, 
                   CALIFORNIA.

       From amounts authorized to be appropriated or otherwise 
     made available to the Department of Energy by this title, 
     funds shall be available for improvements to Greenville Road, 
     Livermore, California, as follows:
       (1) $3,500,000 in fiscal year 1998.
       (2) $3,300,000 in fiscal year 1999.

     SEC. 3169. REPORT ON ALTERNATIVE SYSTEM FOR AVAILABILITY OF 
                   FUNDS.

       (a) Report.--Not later than October 1, 1998, the Secretary 
     of Energy shall submit to Congress a report assessing how the 
     Department of Energy could carry out a transition from a no-
     year funding system to a limited-period funding system.
       (b) Matters Covered.--The report shall cover the following 
     matters:
       (1) A conceptual proposal on how the no-year funding system 
     could be phased out.
       (2) An estimate of the cost of making the transition to a 
     limited-period funding system.
       (3) A description of the programmatic effects that could 
     occur if the no-year funding system is eliminated.
       (4) A delineation of activities for which the no-year 
     funding system should be retained.
       (c) Definitions.--In this section:
       (1) The term ``no-year funding system'' means a funding 
     system in which funds are available to the Department of 
     Energy until expended.
       (2) The term ``limited-period funding system'' means a 
     funding system in which funds are available to the Department 
     of Energy for a limited period of time.

[[Page H9197]]

     SEC. 3170. REPORT ON REMEDIATION UNDER THE FORMERLY UTILIZED 
                   SITES REMEDIAL ACTION PROGRAM.

       Not later than March 1, 1998, the Secretary of Energy shall 
     submit to Congress a report containing information responding 
     to the following questions regarding the Formerly Utilized 
     Sites Remedial Action Program:
       (1) How many Formerly Utilized Sites remain to be 
     remediated, what portions of these remaining sites have 
     completed remediation (including any offsite contamination), 
     what portions of the sites remain to be remediated (including 
     any offsite contamination), what types of contaminants are 
     present at each site, and what are the projected timeframes 
     for completing remediation at each site?
       (2) What is the cost of the remaining response actions 
     necessary to address actual or threatened releases of 
     hazardous substances at each Formerly Utilized Site, 
     including any contamination that is present beyond the 
     perimeter of the facilities?
       (3) For each site, how much will it cost to remediate the 
     radioactive contamination, and how much will it cost to 
     remediate the non-radioactive contamination?
       (4) How many sites potentially involve private parties that 
     could be held responsible for remediation costs, including 
     remediation costs related to offsite contamination?
       (5) What type of agreements under the Formerly Utilized 
     Sites Remedial Action Program have been entered into with 
     private parties to resolve the level of liability for 
     remediation costs at these facilities, and to what extent 
     have these agreements been tied to a distinction between 
     radioactive and non-radioactive contamination present at 
     these sites?
       (6) What efforts have been undertaken by the Department to 
     ensure that the settlement agreements entered into with 
     private parties to resolve liability for remediation costs at 
     these facilities have been consistent on a program wide 
     basis?
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
Sec. 3202. Report on external regulation of defense nuclear facilities.

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     1998, $17,500,000 for the operation of the Defense Nuclear 
     Facilities Safety Board under chapter 21 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2286 et seq.).

     SEC. 3202. REPORT ON EXTERNAL REGULATION OF DEFENSE NUCLEAR 
                   FACILITIES.

       (a) Reporting Requirement.--The Defense Nuclear Facilities 
     Safety Board (in this section referred to as the ``Board'') 
     shall prepare a report and make recommendations on its role 
     in the Department of Energy's decision to establish external 
     regulation of defense nuclear facilities. The report shall 
     include the following:
       (1) An assessment of the value of and the need for the 
     Board to continue to perform the functions specified under 
     chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 
     et seq.).
       (2) An assessment of the relationship between the functions 
     of the Board and a proposal by the Department of Energy to 
     place Department of Energy defense nuclear facilities under 
     the jurisdiction of external regulatory agencies.
       (3) An assessment of the functions of the Board and whether 
     there is a need to modify or amend such functions.
       (4) An assessment of the relative advantages and 
     disadvantages to the Department and the public of continuing 
     the functions of the Board with respect to Department of 
     Energy defense nuclear facilities and replacing the 
     activities of the Board with external regulation of such 
     facilities.
       (5) A list of all existing or planned Department of Energy 
     defense nuclear facilities that are similar to facilities 
     under the regulatory jurisdiction of the Nuclear Regulatory 
     Commission.
       (6) A list of all Department of Energy defense nuclear 
     facilities that are in compliance with all applicable 
     Department of Energy orders, regulations, and requirements 
     relating to the design, construction, operation, and 
     decommissioning of defense nuclear facilities.
       (7) A list of all Department of Energy defense nuclear 
     facilities that have implemented, pursuant to an 
     implementation plan, recommendations made by the Board and 
     accepted by the Secretary of Energy.
       (8) A list of Department of Energy defense nuclear 
     facilities that have a function related to Department weapons 
     activities.
       (9)(A) A list of each existing defense nuclear facility 
     that the Board determines--
       (i) should continue to stay within the jurisdiction of the 
     Board for a period of time or indefinitely; and
       (ii) should come under the jurisdiction of an outside 
     regulatory authority.
       (B) An explanation of the determinations made under 
     subparagraph (A).
       (10) For any existing facilities that should, in the 
     opinion of the Board, come under the jurisdiction of an 
     outside regulatory authority, the date when this move would 
     occur and the period of time necessary for the transition.
       (11) A list of any proposed Department of Energy defense 
     nuclear facilities that should come under the Board's 
     jurisdiction.
       (12) An assessment of regulatory and other issues 
     associated with the design, construction, operation, and 
     decommissioning of facilities that are not owned by the 
     Department of Energy but which would provide services to the 
     Department of Energy.
       (13) An assessment of the role of the Board, if any, in 
     privatization projects undertaken by the Department.
       (14) An assessment of the role of the Board, if any, in any 
     tritium production facilities.
       (15) An assessment of the comparative advantages and 
     disadvantages to the Department of Energy in the event some 
     or all Department of Energy defense nuclear facilities were 
     no longer included in the functions of the Board and were 
     regulated by the Nuclear Regulatory Commission.
       (16) A comparison of the cost, as identified by the Nuclear 
     Regulatory Commission, that would be incurred at a gaseous 
     diffusion plant to comply with regulations issued by the 
     Nuclear Regulatory Commission, with the cost that would be 
     incurred by a gaseous diffusion plant if such a plant was 
     considered to be a Department of Energy defense nuclear 
     facility as defined by chapter 21 of the Atomic Energy Act of 
     1954 (42 U.S.C 2286 et seq.).
       (b) Comments on Report.--Before submission of the report to 
     Congress under subsection (c), the Board shall transmit the 
     report to the Secretary of Energy and the Nuclear Regulatory 
     Commission. The Secretary and the Commission shall provide 
     their comments on the report to both the Board and to 
     Congress.
       (c) Submission to Congress.--Not later than six months 
     after the date of the enactment of this Act, the Board shall 
     provide to Congress an interim report on the status of the 
     implementation of this section. Not later than one year after 
     the date of the enactment of this Act, and not earlier than 
     30 days after receipt of comments from the Secretary of 
     Energy and the Nuclear Regulatory Commission under subsection 
     (b), the Board shall submit to Congress the report required 
     under subsection (a).
       (d) Definition.--In this section, the term ``Department of 
     Energy defense nuclear facility'' has the meaning provided by 
     section 318 of the Atomic Energy Act of 1954 (42 U.S.C. 
     2286g).
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE
Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of beryllium copper master alloy in National 
              Defense Stockpile.
Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.
Sec. 3305. Disposal of cobalt in National Defense Stockpile.
Sec. 3306. Required procedures for disposal of strategic and critical 
              materials.
Sec. 3307. Return of surplus platinum from the Department of the 
              Treasury.

     SEC. 3301. DEFINITIONS.

       In this title:
       (1) The term ``National Defense Stockpile'' means the 
     stockpile provided for in section 4 of the Strategic and 
     Critical Materials Stock Piling Act (50 U.S.C. 98c).
       (2) The term ``National Defense Stockpile Transaction 
     Fund'' means the fund in the Treasury of the United States 
     established under section 9(a) of the Strategic and Critical 
     Materials Stock Piling Act (50 U.S.C. 98h(a)).
       (3) The term ``Market Impact Committee'' means the Market 
     Impact Committee established under section 10(c) of the 
     Strategic and Critical Materials Stock Piling Act (50 U.S.C. 
     98h-1(c)).

     SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

       (a) Obligation of Stockpile Funds.--During fiscal year 
     1998, the National Defense Stockpile Manager may obligate up 
     to $73,000,000 of the funds in the National Defense Stockpile 
     Transaction Fund for the authorized uses of such funds under 
     section 9(b)(2) of the Strategic and Critical Materials Stock 
     Piling Act (50 U.S.C. 98h(b)(2)).
       (b) Additional Obligations.--The National Defense Stockpile 
     Manager may obligate amounts in excess of the amount 
     specified in subsection (a) if the National Defense Stockpile 
     Manager notifies Congress that extraordinary or emergency 
     conditions necessitate the additional obligations. The 
     National Defense Stockpile Manager may make the 
     additional obligations described in the notification after 
     the end of the 45-day period beginning on the date 
     Congress receives the notification.
       (c) Limitations.--The authorities provided by this section 
     shall be subject to such limitations as may be provided in 
     appropriations Acts.

     SEC. 3303. DISPOSAL OF BERYLLIUM COPPER MASTER ALLOY IN 
                   NATIONAL DEFENSE STOCKPILE.

       (a) Disposal Authorization.--Pursuant to section 5(b) of 
     the Strategic and Critical Materials Stock Piling Act (50 
     U.S.C. 98d(b)), the National Defense Stockpile Manager may 
     dispose of all beryllium copper master alloy from the 
     National Defense Stockpile as part of continued efforts to 
     modernize the Stockpile.
       (b) Precondition for Disposal.--Before beginning the 
     disposal of beryllium copper master alloy under subsection 
     (a), the National Defense Stockpile Manager shall certify to 
     Congress that the disposal of beryllium copper master alloy 
     will not adversely affect the capability of the National 
     Defense Stockpile to supply the strategic and critical 
     material needs of the United States.
       (c) Consultation With Market Impact Committee.--In 
     disposing of beryllium copper master alloy under subsection 
     (a), the National Defense Stockpile Manager shall consult 
     with the Market Impact Committee to ensure that the disposal 
     of beryllium copper master alloy does not disrupt the 
     domestic beryllium industry.
       (d) Extended Sales Contracts.--The National Defense 
     Stockpile Manager shall provide for the use of long-term 
     sales contracts for the disposal of beryllium copper master 
     alloy under subsection (a) so that the domestic beryllium 
     industry can re-absorb this material into the market in a 
     gradual and nondisruptive manner. However, no such contract 
     shall provide for the disposal of beryllium copper master 
     alloy over a period longer than eight years, beginning on the 
     date of the commencement of the first contract under this 
     section.

[[Page H9198]]

       (e) Relationship to Other Disposal Authority.--The disposal 
     authority provided in subsection (a) is new disposal 
     authority and is in addition to, and shall not affect, any 
     other disposal authority provided by law regarding materials 
     in the National Defense Stockpile.
       (f) Beryllium Copper Master Alloy Defined.--For purposes of 
     this section, the term ``beryllium copper master alloy'' 
     means an alloy of nominally four percent beryllium in copper.

     SEC. 3304. DISPOSAL OF TITANIUM SPONGE IN NATIONAL DEFENSE 
                   STOCKPILE.

       (a) Disposal Required.--Subject to subsection (b), the 
     National Defense Stockpile Manager shall dispose of 34,800 
     short tons of titanium sponge contained in the National 
     Defense Stockpile provided for in section 4 of the Strategic 
     and Critical Materials Stock Piling Act (50 U.S.C. 98c) and 
     excess to stockpile requirements.
       (b) Consultation With Market Impact Committee.--In 
     disposing of titanium sponge under subsection (a), the 
     National Defense Stockpile Manager shall consult with the 
     Market Impact Committee to ensure that the disposal of 
     titanium sponge does not disrupt the domestic titanium 
     industry.
       (c) Relationship to Other Disposal Authority.--The disposal 
     authority provided in subsection (a) is new disposal 
     authority and is in addition to, and shall not affect, any 
     other disposal authority provided by law regarding materials 
     in the National Defense Stockpile.

     SEC. 3305. DISPOSAL OF COBALT IN NATIONAL DEFENSE STOCKPILE.

       (a) Disposal Required.--Subject to subsections (b) and (c), 
     the President shall dispose of cobalt contained in the 
     National Defense Stockpile so as to result in receipts to the 
     United States in amounts equal to--
       (1) $20,000,000 during fiscal year 2003;
       (2) $30,000,000 during fiscal year 2004;
       (3) $34,000,000 during fiscal year 2005;
       (4) $34,000,000 during fiscal year 2006; and
       (5) $34,000,000 during fiscal year 2007.
       (b) Limitation on Disposal Quantity.--The total quantity of 
     cobalt authorized for disposal by the President under 
     subsection (a) may not exceed 14,058,014 pounds.
       (c) Minimization of Disruption and Loss.--The President may 
     not dispose of cobalt under subsection (a) to the extent that 
     the disposal will result in--
       (1) undue disruption of the usual markets of producers, 
     processors, and consumers of cobalt; or
       (2) avoidable loss to the United States.
       (d) Treatment of Receipts.--Notwithstanding section 9 of 
     the Strategic and Critical Materials Stock Piling Act (50 
     U.S.C. 98h), funds received as result of the disposal of 
     cobalt under subsection (a) shall be deposited into the 
     general fund of the Treasury.
       (e) Relationship to Other Disposal Authority.--The disposal 
     authority provided in subsection (a) is new disposal 
     authority and is in addition to, and shall not affect, any 
     other disposal authority provided by law regarding materials 
     in the National Defense Stockpile.

     SEC. 3306. REQUIRED PROCEDURES FOR DISPOSAL OF STRATEGIC AND 
                   CRITICAL MATERIALS.

       Section 6(b) of the Strategic and Critical Materials Stock 
     Piling Act (50 U.S.C. 98e(b)) is amended in the first 
     sentence by striking out ``materials from the stockpile shall 
     be made by formal advertising or competitive negotiation 
     procedures.'' and inserting in lieu thereof ``strategic and 
     critical materials from the stockpile shall be made in 
     accordance with the next sentence.''.

     SEC. 3307. RETURN OF SURPLUS PLATINUM FROM THE DEPARTMENT OF 
                   THE TREASURY.

       (a) Return of Platinum to Stockpile.--Subject to subsection 
     (b), the Secretary of the Treasury, upon the request of the 
     Secretary of Defense, shall return to the Secretary of 
     Defense for sale or other disposition platinum of the 
     National Defense Stockpile that has been loaned to the 
     Department of the Treasury by the Secretary of Defense, 
     acting as the stockpile manager. The quantity requested and 
     required to be returned shall be any quantity that the 
     Secretary of Defense determines appropriate for sale or other 
     disposition.
       (b) Alternative Transfer of Funds.--The Secretary of the 
     Treasury, with the concurrence of the Secretary of Defense, 
     may transfer to the Secretary of Defense funds in a total 
     amount that is equal to the fair market value of any platinum 
     requested under subsection (a) and not returned. A transfer 
     of funds under this subsection shall be a substitute for a 
     return of platinum under subsection (a). Upon a transfer of 
     funds as a substitute for a return of platinum, the platinum 
     shall cease to be part of the National Defense Stockpile. A 
     transfer of funds under this subsection shall be charged to 
     any appropriation for the Department of the Treasury and 
     shall be credited to the National Defense Stockpile 
     Transaction Fund.
       (c) Responsibility for Costs.--The return of platinum under 
     subsection (a) by the Secretary of the Treasury shall be made 
     without the expenditure of any funds available to the 
     Department of Defense. The Secretary of the Treasury shall be 
     responsible for all costs incurred in connection with the 
     return, such as transportation, storage, testing, refining, 
     or casting costs.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES
Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
              year 1998.
Sec. 3403. Repeal of requirement to assign Navy officers to Office of 
              Naval Petroleum and Oil Shale Reserves.
Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 
              1 and 3.

     SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

       There is hereby authorized to be appropriated to the 
     Secretary of Energy $117,000,000 for fiscal year 1998 for the 
     purpose of carrying out activities under chapter 641 of title 
     10, United States Code, relating to the naval petroleum 
     reserves (as defined in section 7420(2) of such title). Funds 
     appropriated pursuant to such authorization shall remain 
     available until expended.

     SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM 
                   DURING FISCAL YEAR 1998.

       Notwithstanding section 7430(b)(2) of title 10, United 
     States Code, during fiscal year 1998, any sale of any part of 
     the United States share of petroleum produced from Naval 
     Petroleum Reserves Numbered 1, 2, and 3 shall be made at a 
     price not less than 90 percent of the current sales price, as 
     estimated by the Secretary of Energy, of comparable petroleum 
     in the same area.

     SEC. 3403. REPEAL OF REQUIREMENT TO ASSIGN NAVY OFFICERS TO 
                   OFFICE OF NAVAL PETROLEUM AND OIL SHALE 
                   RESERVES.

       Section 2 of Public Law 96-137 (42 U.S.C. 7156a) is 
     repealed.

     SEC. 3404. TRANSFER OF JURISDICTION, NAVAL OIL SHALE RESERVES 
                   NUMBERED 1 AND 3.

       (a) Transfer Required.--Chapter 641 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 7439. Certain oil shale reserves: transfer of 
       jurisdiction and petroleum exploration, development, and 
       production

       ``(a) Transfer Required.--(1) Upon the enactment of this 
     section, the Secretary of Energy shall transfer to the 
     Secretary of the Interior administrative jurisdiction over 
     all public domain lands included within Oil Shale Reserve 
     Numbered 1 and those public domain lands included within the 
     undeveloped tracts of Oil Shale Reserve Numbered 3.
       ``(2) Not later than one year after the date of the 
     enactment of this section, the Secretary of Energy shall 
     transfer to the Secretary of the Interior administrative 
     jurisdiction over those public domain lands included within 
     the developed tract of Oil Shale Reserve Numbered 3, which 
     consists of approximately 6,000 acres and 24 natural gas 
     wells, together with pipelines and associated facilities.
       ``(3) Notwithstanding the transfer of jurisdiction, the 
     Secretary of Energy shall continue to be responsible for all 
     environmental restoration, waste management, and 
     environmental compliance activities that are required under 
     Federal and State laws with respect to conditions existing on 
     the lands at the time of the transfer.
       ``(4) Upon the transfer to the Secretary of the Interior of 
     jurisdiction over public domain lands under this subsection, 
     the other provisions of this chapter shall cease to apply 
     with respect to the transferred lands.
       ``(b) Authority To Lease.--(1) Beginning on the date of the 
     enactment of this section, or as soon thereafter as 
     practicable, the Secretary of the Interior shall enter into 
     leases with one or more private entities for the purpose of 
     exploration for, and development and production of, petroleum 
     (other than in the form of oil shale) located on or in public 
     domain lands in Oil Shale Reserves Numbered 1 and 3 
     (including the developed tract of Oil Shale Reserve Numbered 
     3). Any such lease shall be made in accordance with the 
     requirements of the Mineral Leasing Act (30 U.S.C. 181 et 
     seq.) regarding the lease of oil and gas lands and shall be 
     subject to valid existing rights.
       ``(2) Notwithstanding the delayed transfer of the developed 
     tract of Oil Shale Reserve Numbered 3 under subsection 
     (a)(2), the Secretary of the Interior shall enter into a 
     lease under paragraph (1) with respect to the developed tract 
     before the end of the one-year period beginning on the date 
     of the enactment of this section.
       ``(c) Management.--The Secretary of the Interior, acting 
     through the Director of the Bureau of Land Management, shall 
     manage the lands transferred under subsection (a) in 
     accordance with the Federal Land Policy and Management Act of 
     1976 (43 U.S.C. 1701 et seq.) and other laws applicable to 
     the public lands.
       ``(d) Transfer of Existing Equipment.--The lease of lands 
     by the Secretary of the Interior under this section may 
     include the transfer, at fair market value, of any well, 
     gathering line, or related equipment owned by the United 
     States on the lands transferred under subsection (a) and 
     suitable for use in the exploration, development, or 
     production of petroleum on the lands.
       ``(e) Cost Minimization.--The cost of any environmental 
     assessment required pursuant to the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.) in connection 
     with a proposed lease under this section shall be paid out of 
     unobligated amounts available for administrative expenses of 
     the Bureau of Land Management.
       ``(f) Treatment of Receipts.--(1) Notwithstanding section 
     35 of the Mineral Leasing Act (30 U.S.C. 191), all moneys 
     received during the period specified in paragraph (2) from a 
     lease under this section (including moneys in the form of 
     sales, bonuses, royalties (including interest charges 
     collected under the Federal Oil and Gas Royalty Management 
     Act of 1982 (30 U.S.C. 1701 et seq.)), and rentals) shall be 
     covered into the Treasury of the United States and shall not 
     be subject to distribution to the States pursuant to 
     subsection (a) of such section 35. Subject to a specific 
     authorization and appropriation for this purpose, such moneys 
     may be used for reimbursement of environmental restoration, 
     waste management, and environmental compliance costs incurred 
     by the United States with respect to the lands transferred 
     under subsection (a).
       ``(2) The period referred to in this subsection is the 
     period beginning on the date of the enactment of this section 
     and ending on the date on which the Secretary of Energy and 
     the Secretary of the Interior jointly certify to Congress 
     that the sum of the moneys deposited in the

[[Page H9199]]

     Treasury under paragraph (1) is equal to the total of the 
     following:
       ``(A) The cost of all environmental restoration, waste 
     management, and environmental compliance activities incurred 
     by the United States with respect to the lands transferred 
     under subsection (a).
       ``(B) The cost to the United States to originally install 
     wells, gathering lines, and related equipment on the 
     transferred lands and any other cost incurred by the United 
     States with respect to the lands.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``7439. Certain oil shale reserves: transfer of jurisdiction and 
              petroleum exploration, development, and production.''.
                  TITLE XXXV--PANAMA CANAL COMMISSION

     Subtitle A--Authorization of Expenditures From Revolving Fund

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.

          Subtitle B--Facilitation of Panama Canal Transition

Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to canal transition.

    Part I--Transition Matters Relating to Commission Officers and 
                               Employees

Sec. 3521. Authority for the Administrator of the Commission to accept 
              appointment as the Administrator of the Panama Canal 
              Authority.
Sec. 3522. Post-Canal transfer personnel authorities.
Sec. 3523. Enhanced authority of Commission to establish compensation 
              of Commission officers and employees.
Sec. 3524. Travel, transportation, and subsistence expenses for 
              Commission personnel no longer subject to Federal travel 
              regulation.
Sec. 3525. Enhanced recruitment and retention authorities.
Sec. 3526. Transition separation incentive payments.
Sec. 3527. Labor-management relations.
Sec. 3528. Availability of Panama Canal Revolving Fund for severance 
              pay for certain employees separated by Panama Canal 
              Authority after Canal Transfer Date.

Part II--Transition Matters Relating to Operation and Administration of 
                                 Canal

Sec. 3541. Establishment of procurement system and Board of Contract 
              Appeals.
Sec. 3542. Transactions with the Panama Canal Authority.
Sec. 3543. Time limitations on filing of claims for damages.
Sec. 3544. Tolls for small vessels.
Sec. 3545. Date of actuarial evaluation of FECA liability.
Sec. 3546. Appointment of notaries public.
Sec. 3547. Commercial services.
Sec. 3548. Transfer from President to Commission of certain regulatory 
              functions relating to employment classification appeals.
Sec. 3549. Enhanced printing authority.
Sec. 3550. Technical and conforming amendments.
     Subtitle A--Authorization of Expenditures From Revolving Fund

     SEC. 3501. SHORT TITLE.

       This subtitle may be cited as the ``Panama Canal Commission 
     Authorization Act for Fiscal Year 1998''.

     SEC. 3502. AUTHORIZATION OF EXPENDITURES.

       (a) In General.--Subject to subsection (b), the Panama 
     Canal Commission is authorized to use amounts in the Panama 
     Canal Revolving Fund to make such expenditures within the 
     limits of funds and borrowing authority available to it in 
     accordance with law, and to make such contracts and 
     commitments, as may be necessary under the Panama Canal Act 
     of 1979 (22 U.S.C. 3601 et seq.) for the operation, 
     maintenance, improvement, and administration of the Panama 
     Canal for fiscal year 1998.
       (b) Limitations.--For fiscal year 1998, the Panama Canal 
     Commission may expend from funds in the Panama Canal 
     Revolving Fund not more than $85,000 for official reception 
     and representation expenses, of which--
       (1) not more than $23,000 may be used for official 
     reception and representation expenses of the Supervisory 
     Board of the Commission;
       (2) not more than $12,000 may be used for official 
     reception and representation expenses of the Secretary of the 
     Commission; and
       (3) not more than $50,000 may be used for official 
     reception and representation expenses of the Administrator of 
     the Commission.

     SEC. 3503. PURCHASE OF VEHICLES.

       Notwithstanding any other provision of law, the funds 
     available to the Commission shall be available for the 
     purchase and transportation to the Republic of Panama of 
     passenger motor vehicles, the purchase price of which shall 
     not exceed $22,000 per vehicle.

     SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

       Expenditures authorized under this subtitle may be made 
     only in accordance with the Panama Canal Treaties of 1977 and 
     any law of the United States implementing those treaties.
          Subtitle B--Facilitation of Panama Canal Transition

     SEC. 3511. SHORT TITLE; REFERENCES.

       (a) Short Title.--This subtitle may be cited as the 
     ``Panama Canal Transition Facilitation Act of 1997''.
       (b) References.--Except as otherwise expressly provided, 
     whenever in this subtitle an amendment or repeal is expressed 
     in terms of an amendment to, or repeal of, a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of the Panama Canal Act of 1979 
     (22 U.S.C. 3601 et seq.).

     SEC. 3512. DEFINITIONS RELATING TO CANAL TRANSITION.

       Section 3 (22 U.S.C. 3602) is amended by adding at the end 
     the following new subsection:
       ``(d) For purposes of this Act:
       ``(1) The term `Canal Transfer Date' means December 31, 
     1999, such date being the date specified in the Panama Canal 
     Treaty of 1977 for the transfer of the Panama Canal from the 
     United States of America to the Republic of Panama.
       ``(2) The term `Panama Canal Authority' means the entity 
     created by the Republic of Panama to succeed the Panama Canal 
     Commission as of the Canal Transfer Date.''.

    PART I--TRANSITION MATTERS RELATING TO COMMISSION OFFICERS AND 
                               EMPLOYEES

     SEC. 3521. AUTHORITY FOR THE ADMINISTRATOR OF THE COMMISSION 
                   TO ACCEPT APPOINTMENT AS THE ADMINISTRATOR OF 
                   THE PANAMA CANAL AUTHORITY.

       (a) Authority for Dual Role.--Section 1103 (22 U.S.C. 3613) 
     is amended by adding at the end the following new subsection:
       ``(c) The Congress consents, for purposes of the 8th clause 
     of article I, section 9 of the Constitution of the United 
     States, to the acceptance by the individual serving as 
     Administrator of  the Commission of appointment by the 
     Republic of Panama to the position of Administrator of the 
     Panama Canal Authority. Such consent is effective only if 
     that individual, while serving in both such positions, 
     serves as Administrator of the Panama Canal Authority 
     without compensation, except for payments by the Republic 
     of Panama of travel and entertainment expenses, including 
     per diem payments.''.
       (b) Waiver of Ethics and Reporting Requirements.--Such 
     section is further amended by adding at the end the following 
     new subsection:
       ``(d) If before the Canal Transfer Date the Republic of 
     Panama appoints as the Administrator of the Panama Canal 
     Authority the individual serving as the Administrator of the 
     Commission and if that individual accepts the appointment--
       ``(1) during any period during which that individual serves 
     as both Administrator of the Commission and the Administrator 
     of the Panama Canal Authority--
       ``(A) the Foreign Agents Registration Act of 1938, as 
     amended (22 U.S.C. 611 et seq.), shall not apply to that 
     individual with respect to service as the Administrator of 
     the Panama Canal Authority;
       ``(B) that individual, with respect to participation in any 
     particular matter as the Administrator of the Panama Canal 
     Commission, is not subject to section 208(a) of title 18, 
     United States Code, insofar as that section would otherwise 
     apply to that matter only because the matter will have a 
     direct and predictable effect on the financial interest of 
     the Panama Canal Authority;
       ``(C) that individual is not subject to sections 203 and 
     205 of title 18, United States Code, with respect to official 
     acts performed as an agent or attorney for or otherwise 
     representing the Panama Canal Authority; and
       ``(D) that individual is not subject to sections 501(a) and 
     502(a)(4) of the Ethics in Government Act of 1978 (5 U.S.C. 
     App.), with respect to compensation received for, and service 
     in, the position of Administrator of the Panama Canal 
     Authority; and
       ``(2) effective upon termination of the individual's 
     appointment as Administrator of the Panama Canal Commission 
     at noon on the Canal Transfer Date, that individual is not 
     subject to section 207 of title 18, United States Code, with 
     respect to acts done in carrying out official duties as 
     Administrator of the Panama Canal Authority.''.

     SEC. 3522. POST-CANAL TRANSFER PERSONNEL AUTHORITIES.

       (a) Waiver of Certain Post-employment Restrictions for 
     Commission Personnel Becoming Employees of the Panama Canal 
     Authority.--Section 1112 (22 U.S.C. 3622) is amended by 
     adding at the end the following new subsection:
       ``(e)(1) Section 207 of title 18, United States Code, does 
     not apply to a covered individual with respect to acts done 
     in carrying out official duties as an officer or employee of 
     the Panama Canal Authority.
       ``(2) For purposes of paragraph (1), a covered individual 
     is an officer or employee of the Panama Canal Authority who 
     was an officer or employee of the Commission (other than the 
     Administrator) and whose employment with the Commission 
     terminated at noon on the Canal Transfer Date.
       ``(3) This subsection is effective as of the Canal Transfer 
     Date.''.
       (b) Consent of Congress for Acceptance by Reserve and 
     Retired Members of the Uniformed Services of Employment by 
     Panama Canal Authority.--Such section is further amended by 
     adding after subsection (e), as added by subsection (a), the 
     following new subsection:
       ``(f)(1) The Congress consents to the following persons 
     accepting civil employment (and compensation for that 
     employment) with the Panama Canal Authority for which the 
     consent of the Congress is required by the last paragraph of 
     section 9 of article I of the Constitution of the United 
     States, relating to acceptance of emoluments, offices, or 
     titles from a foreign government:
       ``(A) Retired members of the uniformed services.

[[Page H9200]]

       ``(B) Members of a reserve component of the armed forces.
       ``(C) Members of the Commissioned Reserve Corps of the 
     Public Health Service.
       ``(2) The consent of the Congress under paragraph (1) is 
     effective without regard to subsection (b) of section 908 of 
     title 37, United States Code (relating to approval required 
     for employment of Reserve and retired members by foreign 
     governments).''.

     SEC. 3523. ENHANCED AUTHORITY OF COMMISSION TO ESTABLISH 
                   COMPENSATION OF COMMISSION OFFICERS AND 
                   EMPLOYEES.

       (a) Repeal of Limitations on Commission Authority.--The 
     following provisions are repealed:
       (1) Section 1215 (22 U.S.C. 3655), relating to basic pay.
       (2) Section 1219 (22 U.S.C. 3659), relating to salary 
     protection upon conversion of pay rate.
       (3) Section 1225 (22 U.S.C. 3665), relating to minimum 
     level of pay and minimum annual increases.
       (b) Savings Provision.--Section 1202 (22 U.S.C. 3642) is 
     amended by adding at the end the following new subsection:
       ``(c) In the case of an individual who is an officer or 
     employee of the Commission on the day before the date of the 
     enactment of the Panama Canal Transition Facilitation Act of 
     1997 and who has not had a break in service with the 
     Commission since that date, the rate of basic pay for that 
     officer or employee on or after that date may not be less 
     than the rate in effect for that officer or employee on the 
     day before that date of enactment except--
       ``(1) as provided in a collective bargaining agreement;
       ``(2) as a result of an adverse action against the officer 
     or employee; or
       ``(3) pursuant to a voluntary demotion.''.
       (c) Cross-Reference Amendments.--(1) Section 1216 (22 
     U.S.C. 3656) is amended by striking out ``1215'' and 
     inserting in lieu thereof ``1202''.
       (2) Section 1218 (22 U.S.C. 3658) is amended by striking 
     out ``1215'' and ``1217'' and inserting in lieu thereof 
     ``1202'' and ``1217(a)'', respectively.
       (d) Nonapplicability to Agencies in Panama Other Than 
     Panama Canal Commission.--Section 1212(b)(3) (22 U.S.C. 
     3652(b)(3)) is amended by striking out ``or the Panama Canal 
     Act Amendments of 1996'' and inserting in lieu thereof ``, 
     the Panama Canal Act Amendments of 1996 (subtitle B of title 
     XXXV of Public Law 104-201; 110 Stat. 2860), or the Panama 
     Canal Transition Facilitation Act of 1997''.

     SEC. 3524. TRAVEL, TRANSPORTATION, AND SUBSISTENCE EXPENSES 
                   FOR COMMISSION PERSONNEL NO LONGER SUBJECT TO 
                   FEDERAL TRAVEL REGULATION.

       (a) Repeal of Applicability of Title 5 Provisions.--(1) 
     Section 1210 (22 U.S.C. 3650) is amended by striking out 
     subsections (a), (b), and (c).
       (2) Section 1224 (22 U.S.C. 3664) is amended--
       (A) by striking out paragraph (10); and
       (B) by redesignating paragraphs (11) through (20) as 
     paragraphs (10) through (19), respectively.
       (b) Conforming Amendments.--(1) Section 1210 is further 
     amended--
       (A) by redesignating subsection (d)(1) as subsection (a) 
     and in that subsection striking out ``paragraph (2)'' and 
     inserting in lieu thereof ``subsection (b)''; and
       (B) by redesignating subsection (d)(2) as subsection (b) 
     and in that subsection--
       (i) striking out ``Notwithstanding paragraph (1), an'' and 
     inserting in lieu thereof ``An''; and
       (ii) striking out ``referred to in paragraph (1)'' and 
     inserting in lieu thereof ``who is a citizen of the Republic 
     of Panama''.
       (2) The heading of such section is amended to read as 
     follows:

                        ``air transportation''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1999.

     SEC. 3525. ENHANCED RECRUITMENT AND RETENTION AUTHORITIES.

       (a) Recruitment, Relocation, and Retention Bonuses.--
     Section 1217 (22 U.S.C. 3657) is amended--
       (1) by redesignating subsection (c) as subsection (e);
       (2) in subsection (e) (as so redesignated), by striking out 
     ``for the same or similar work performed in the United States 
     by individuals employed by the Government of the United 
     States'' and inserting in lieu thereof ``of the individual to 
     whom the compensation is paid''; and
       (3) by inserting after subsection (b) the following new 
     subsections:
       ``(c)(1) The Commission may pay a recruitment bonus to an 
     individual who is newly appointed to a position with the 
     Commission, or a relocation bonus to an employee of the 
     Commission who must relocate to accept a position, if the 
     Commission determines that the Commission would be likely, in 
     the absence of such a bonus, to have difficulty in filling 
     the position.
       ``(2) A recruitment or relocation bonus may be paid to an 
     employee under this subsection only if the employee enters 
     into an agreement with the Commission to complete a period of 
     employment established in the agreement. If the employee 
     voluntarily fails to complete such period of employment or is 
     separated from service in such employment as a result of an 
     adverse action before the completion of such period, the 
     employee shall repay the entire amount of the bonus.
       ``(3) A recruitment or relocation bonus under this 
     subsection may be paid as a lump sum. A bonus under this 
     subsection may not be considered to be part of the basic pay 
     of an employee.
       ``(d)(1) The Commission may pay a retention bonus to an 
     employee of the Commission if the Commission determines 
     that--
       ``(A) the employee has unusually high or unique 
     qualifications and those qualifications make it essential for 
     the Commission to retain the employee for a period specified 
     by the Commission ending not later than the Canal Transfer 
     Date, or the Commission otherwise has a special need for the 
     services of the employee making it essential for the 
     Commission to retain the employee for a period specified by 
     the Commission ending not later than the Canal Transfer Date; 
     and
       ``(B) the employee would be likely to leave employment with 
     the Commission before the end of that period if the retention 
     bonus is not paid.
       ``(2) A retention bonus under this subsection--
       ``(A) shall be in a fixed amount;
       ``(B) shall be paid on a pro rata basis (over the period 
     specified by the Commission as essential for the retention of 
     the employee), with such payments to be made at the same time 
     and in the same manner as basic pay; and
       ``(C) may not be considered to be part of the basic pay of 
     an employee.
       ``(3) A decision by the Commission to exercise or to not 
     exercise the authority to pay a bonus under this subsection 
     shall not be subject to review under any statutory procedure 
     or any agency or negotiated grievance procedure except under 
     any of the laws referred to in section 2302(d) of title 5, 
     United States Code.''.
       (b) Educational Services.--Section 1321(e)(2) (22 U.S.C. 
     3731(e)(2)) is amended by striking out ``and persons'' and 
     inserting in lieu thereof ``, to other Commission employees 
     when determined by the Commission to be necessary for their 
     recruitment or retention, and to other persons''.

     SEC. 3526. TRANSITION SEPARATION INCENTIVE PAYMENTS.

       Chapter 2 of title I (22 U.S.C. 3641 et seq.) is amended by 
     adding at the end of subchapter III the following new 
     section:

               ``transition separation incentive payments

       ``Sec. 1233. (a) In applying to the Commission and 
     employees of the Commission the provisions of section 663 of 
     the Treasury, Postal Service, and General Government 
     Appropriations Act, 1997 (as contained in section 101(f) of 
     division A of Public Law 104-208; 110 Stat. 3009-383), 
     relating to voluntary separation incentives for employees of 
     certain Federal agencies (in this section referred to as 
     `section 663')--
       ``(1) the term `employee' shall mean an employee of the 
     Commission who has served in the Republic of Panama in a 
     position with the Commission for a continuous period of at 
     least three years immediately before the employee's 
     separation under an appointment without time limitation and 
     who is covered under the Civil Service Retirement System or 
     the Federal Employees' Retirement System under subchapter III 
     of chapter 83 or chapter 84, respectively, of title 5, United 
     States Code, other than--
       ``(A) an employee described in any of subparagraphs (A) 
     through (F) of subsection (a)(2) of section 663; or
       ``(B) an employee of the Commission who, during the 24-
     month period preceding the date of separation, has received a 
     recruitment or relocation bonus under section 1217(c) of this 
     Act or who, within the 12-month period preceding the date of 
     separation, received a retention bonus under section 1217(d) 
     of this Act;
       ``(2) the strategic plan under subsection (b) of section 
     663 shall include (in lieu of the matter specified in 
     subsection (b)(2) of that section)--
       ``(A) the positions to be affected, identified by 
     occupational category and grade level;
       ``(B) the number and amounts of separation incentive 
     payments to be offered; and
       ``(C) a description of how such incentive payments will 
     facilitate the successful transfer of the Panama Canal to the 
     Republic of Panama;
       ``(3) a separation incentive payment under section 663 may 
     be paid to a Commission employee only to the extent necessary 
     to facilitate the successful transfer of the Panama Canal by 
     the United States of America to the Republic of Panama as 
     required by the Panama Canal Treaty of 1977;
       ``(4) such a payment--
       ``(A) may be in an amount determined by the Commission not 
     to exceed $25,000; and
       ``(B) may be made (notwithstanding the limitation specified 
     in subsection (c)(2)(D) of section 663) in the case of an 
     eligible employee who voluntarily separates (whether by 
     retirement or resignation) during the 90-day period beginning 
     on the date of the enactment of this section or during the 
     period beginning on October 1, 1998, and ending on December 
     31, 1998;
       ``(5) in the case of not more than 15 employees who (as 
     determined by the Commission) are unwilling to work for the 
     Panama Canal Authority after the Canal Transfer Date and who 
     occupy critical positions for which (as determined by the 
     Commission) at least two years of experience is necessary to 
     ensure that seasoned managers are in place on and after the 
     Canal Transfer Date, such a payment (notwithstanding 
     paragraph (4))--
       ``(A) may be in an amount determined by the Commission not 
     to exceed 50 percent of the basic pay of the employee; and
       ``(B) may be made (notwithstanding the limitation specified 
     in subsection (c)(2)(D) of section 663) in the case of such 
     an employee who voluntarily separates (whether by retirement 
     or resignation) during the 90-day period beginning on the 
     date of the enactment of this section; and
       ``(6) the provisions of subsection (f) of section 663 shall 
     not apply.
       ``(b) A decision by the Commission to exercise or to not 
     exercise the authority to pay a transition separation 
     incentive under this section shall not be subject to review 
     under any statutory procedure or any agency or negotiated 
     grievance procedure except under any of the laws referred to 
     in section 2302(d) of title 5, United States Code.''.

     SEC. 3527. LABOR-MANAGEMENT RELATIONS.

       Section 1271 (22 U.S.C. 3701) is amended by adding at the 
     end the following new subsection:
       ``(c)(1) This subsection applies to any matter that becomes 
     the subject of collective bargaining

[[Page H9201]]

     between the Commission and the exclusive representative for 
     any bargaining unit of employees of the Commission during the 
     period beginning on the date of the enactment of this 
     subsection and ending on the Canal Transfer Date.
       ``(2)(A) The resolution of impasses resulting from 
     collective bargaining between the Commission and any such 
     exclusive representative during that period shall be 
     conducted in accordance with such procedures as may be 
     mutually agreed upon between the Commission and the exclusive 
     representative (without regard to any otherwise applicable 
     provisions of chapter 71 of title 5, United States Code). 
     Such mutually agreed upon procedures shall become effective 
     upon transmittal by the Chairman of the Supervisory Board of 
     the Commission to the Congress of notice of the agreement to 
     use those procedures and a description of those procedures.
       ``(B) The Federal Services Impasses Panel shall not have 
     jurisdiction to resolve any impasse between the Commission 
     and any such exclusive representative in negotiations over a 
     procedure for resolving impasses.
       ``(3) If the Commission and such an exclusive 
     representative do not reach an agreement concerning a 
     procedure for resolving impasses with respect to a bargaining 
     unit and transmit notice of the agreement under paragraph (2) 
     on or before July 1, 1998, the following shall be the 
     procedure by which collective bargaining impasses between 
     the Commission and the exclusive representative for that 
     bargaining unit shall be resolved:
       ``(A) If bargaining efforts do not result in an agreement, 
     either party may timely request the Federal Mediation and 
     Conciliation Service to assist in achieving an agreement.
       ``(B) If an agreement is not reached within 45 days after 
     the date on which either party requests the assistance of the 
     Federal Mediation and Conciliation Service in writing (or 
     within such shorter period as may be mutually agreed upon by 
     the parties), the parties shall be considered to be at an 
     impasse and the Federal Mediation and Conciliation Service 
     shall immediately notify the Federal Services Impasses Panel 
     of the Federal Labor Relations Authority, which shall decide 
     the impasse.
       ``(C) If the Federal Services Impasses Panel fails to issue 
     a decision within 90 days after the date on which notice 
     under subparagraph (B) is received by the Panel (or within 
     such shorter period as may be mutually agreed upon by the 
     parties), the efforts of the Panel shall be terminated.
       ``(D) In such a case, the Chairman of the Panel (or another 
     member in the absence of the Chairman) shall immediately 
     determine the matter by a drawing (conducted in such manner 
     as the Chairman (or, in the absence of the Chairman, such 
     other member) determines appropriate) between the last offer 
     of the Commission and the last offer of the exclusive 
     representative, with the offer chosen through such drawing 
     becoming the binding resolution of the matter.
       ``(4) In the case of a notice of agreement described in 
     paragraph (2)(A) that is transmitted to the Congress as 
     described in the second sentence of that paragraph after July 
     1, 1998, the impasse resolution procedures covered by that 
     notice shall apply to any impasse between the Commission and 
     the other party to the agreement that is unresolved on the 
     date on which that notice is transmitted to the Congress.''.

     SEC. 3528. AVAILABILITY OF PANAMA CANAL REVOLVING FUND FOR 
                   SEVERANCE PAY FOR CERTAIN EMPLOYEES SEPARATED 
                   BY PANAMA CANAL AUTHORITY AFTER CANAL TRANSFER 
                   DATE.

       (a) Availability of Revolving Fund.--Section 1302(a) (22 
     U.S.C. 3712(a)) is amended by adding at the end the following 
     new paragraph:
       ``(10) Payment to the Panama Canal Authority, not later 
     than the Canal Transfer Date, of such amount as is computed 
     by the Commission to be the future amount of severance pay to 
     be paid by the Panama Canal Authority to employees whose 
     employment with the Authority is terminated, to the extent 
     that such severance pay is attributable to periods of service 
     performed with the Commission before the Canal Transfer Date 
     (and assuming for purposes of such computation that the 
     Panama Canal Authority, in paying severance pay to terminated 
     employees, will provide for crediting of periods of service 
     with the Commission).''.
       (b) Stylistic Amendments.--Such section is further 
     amended--
       (1) by striking out ``for--'' in the matter preceding 
     paragraph (1) and inserting in lieu thereof ``for the 
     following purposes:'';
       (2) by capitalizing the initial letter of the first word in 
     each of paragraphs (1) through (9);
       (3) by striking out the semicolon at the end of each of 
     paragraphs (1) through (7) and inserting in lieu thereof a 
     period; and
       (4) by striking out ``; and'' at the end of paragraph (8) 
     and inserting in lieu thereof a period.

PART II--TRANSITION MATTERS RELATING TO OPERATION AND ADMINISTRATION OF 
                                 CANAL

     SEC. 3541. ESTABLISHMENT OF PROCUREMENT SYSTEM AND BOARD OF 
                   CONTRACT APPEALS.

       Title III of the Panama Canal Act of 1979 (22 U.S.C. 3601 
     et seq.) is amended by inserting after the title heading the 
     following new chapter:

                        ``Chapter 1--Procurement


                          ``procurement system

       ``Sec. 3101. (a) Panama Canal Acquisition Regulation.--(1) 
     The Commission shall establish by regulation a comprehensive 
     procurement system. The regulation shall be known as the 
     `Panama Canal Acquisition Regulation' (in this section 
     referred to as the `Regulation') and shall provide for the 
     procurement of goods and services by the Commission in a 
     manner that--
       ``(A) applies the fundamental operating principles and 
     procedures in the Federal Acquisition Regulation;
       ``(B) uses efficient commercial standards of practice; and
       ``(C) is suitable for adoption and uninterrupted use by the 
     Republic of Panama after the Canal Transfer Date.
       ``(2) The Regulation shall contain provisions regarding the 
     establishment of the Panama Canal Board of Contract Appeals 
     described in section 3102.
       ``(b) Supplement to Regulation.--The Commission shall 
     develop a Supplement to the Regulation (in this section 
     referred to as the `Supplement') that identifies both the 
     provisions of Federal law applicable to procurement of goods 
     and services by the Commission and the provisions of Federal 
     law waived by the Commission under subsection (c).
       ``(c) Waiver Authority.--(1) Subject to paragraph (2), the 
     Commission shall determine which provisions of Federal law 
     should not apply to procurement by the Commission and may 
     waive those laws for purposes of the Regulation and 
     Supplement.
       ``(2) For purposes of paragraph (1), the Commission may not 
     waive--
       ``(A) section 27 of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 423);
       ``(B) the Contract Disputes Act of 1978 (41 U.S.C. 601 et 
     seq.), other than section 10(a) of such Act (41 U.S.C 
     609(a)); or
       ``(C) civil rights, environmental, or labor laws.
       ``(d) Consultation With Administrator for Federal 
     Procurement Policy.--In establishing the Regulation and 
     developing the Supplement, the Commission shall consult with 
     the Administrator for Federal Procurement Policy.
       ``(e) Effective Date.--The Regulation and the Supplement 
     shall take effect on the date of publication in the Federal 
     Register, or January 1, 1999, whichever is earlier.


                ``panama canal board of contract appeals

       ``Sec. 3102. (a) Establishment.--(1) The Secretary of 
     Defense, in consultation with the Commission, shall establish 
     a board of contract appeals, to be known as the Panama Canal 
     Board of Contract Appeals, in accordance with section 8 of 
     the Contract Disputes Act of 1978 (41 U.S.C. 607). Except as 
     otherwise provided by this section, the Panama Canal Board of 
     Contract Appeals (in this section referred to as the `Board') 
     shall be subject to the Contract Disputes Act of 1978 (41 
     U.S.C. 601 et seq.) in the same manner as any other agency 
     board of contract appeals established under that Act.
       ``(2) The Board shall consist of three members. At least 
     one member of the Board shall be licensed to practice law in 
     the Republic of Panama. Individuals appointed to the Board 
     shall take an oath of office, the form of which shall be 
     prescribed by the Secretary of Defense.
       ``(b) Exclusive Jurisdiction To Decide Appeals.--
     Notwithstanding section 10(a)(1) of the Contract Disputes Act 
     of 1978 (41 U.S.C. 609(a)(1)) or any other provision of law, 
     the Board shall have exclusive jurisdiction to decide an 
     appeal from a decision of a contracting officer under section 
     8(d) of such Act (41 U.S.C. 607(d)).
       ``(c) Exclusive Jurisdiction To Decide Protests.--The Board 
     shall decide protests submitted to it under this subsection 
     by interested parties in accordance with subchapter V of 
     title 31, United States Code. Notwithstanding section 3556 of 
     that title, section 1491(b) of title 28, United States Code, 
     and any other provision of law, the Board shall have 
     exclusive jurisdiction to decide such protests. For purposes 
     of this subsection--
       ``(1) except as provided in paragraph (2), each reference 
     to the Comptroller General in sections 3551 through 3555 of 
     title 31, United States Code, is deemed to be a reference to 
     the Board;
       ``(2) the reference to the Comptroller General in section 
     3553(d)(3)(C)(ii) of such title is deemed to be a reference 
     to both the Board and the Comptroller General;
       ``(3) the report required by paragraph (1) of section 
     3554(e) of such title shall be submitted to the Comptroller 
     General as well as the committees listed in such paragraph;
       ``(4) the report required by paragraph (2) of such section 
     shall be submitted to the Comptroller General as well as 
     Congress; and
       ``(5) section 3556 of such title shall not apply to the 
     Board, but nothing in this subsection shall affect the right 
     of an interested party to file a protest with the appropriate 
     contracting officer.
       ``(d) Procedures.--The Board shall prescribe such 
     procedures as may be necessary for the expeditious decision 
     of appeals and protests under subsections (b) and (c).
       ``(e) Commencement.--The Board shall begin to function as 
     soon as it has been established and has prescribed procedures 
     under subsection (d), but not later than January 1, 1999.
       ``(f) Transition.--The Board shall have jurisdiction under 
     subsection (b) and (c) over any appeals and protests filed on 
     or after the date on which the Board begins to function. Any 
     appeals and protests filed before such date shall remain 
     before the forum in which they were filed.
       ``(g) Other Functions.--The Board may perform functions 
     similar to those described in this section for such other 
     matters or activities of the Commission as the Commission may 
     determine and in accordance with regulations prescribed by 
     the Commission.''.

     SEC. 3542. TRANSACTIONS WITH THE PANAMA CANAL AUTHORITY.

       Section 1342 (22 U.S.C. 3752) is amended--
       (1) by designating the text of the section as subsection 
     (a); and
       (2) by adding at the end the following new subsections:
       ``(b) The Commission may provide office space, equipment, 
     supplies, personnel, and other in-kind services to the Panama 
     Canal Authority on a nonreimbursable basis.
       ``(c) Any executive department or agency of the United 
     States may, on a reimbursable basis,

[[Page H9202]]

     provide to the Panama Canal Authority materials, supplies, 
     equipment, work, or services requested by the Panama Canal 
     Authority, at such rates as may be agreed upon by that 
     department or agency and the Panama Canal Authority.''.

     SEC. 3543. TIME LIMITATIONS ON FILING OF CLAIMS FOR DAMAGES.

       (a) Filing of Administrative Claims With Commission.--
     Sections 1411(a) (22 U.S.C. 3771(a)) and 1412 (22 U.S.C. 
     3772) are each amended in the last sentence by striking out 
     ``within 2 years after'' and all that follows through ``of 
     1985,'' and inserting in lieu thereof ``within one year after 
     the date of the injury or the date of the enactment of the 
     Panama Canal Transition Facilitation Act of 1997,''.
       (b) Filing of Judicial Actions.--The penultimate sentence 
     of section 1416 (22 U.S.C. 3776) is amended--
       (1) by striking out ``one year'' the first place it appears 
     and inserting in lieu thereof ``180 days''; and
       (2) by striking out ``claim, or'' and all that follows 
     through ``of 1985,'' and inserting in lieu thereof ``claim or 
     the date of the enactment of the Panama Canal Transition 
     Facilitation Act of 1997,''.

     SEC. 3544. TOLLS FOR SMALL VESSELS.

       Section 1602(a) (22 U.S.C. 3792(a)) is amended--
       (1) in the first sentence, by striking out ``supply ships, 
     and yachts'' and inserting in lieu thereof ``and supply 
     ships''; and
       (2) by adding at the end the following new sentence: 
     ``Tolls for small vessels (including yachts), as defined by 
     the Commission, may be set at rates determined by the 
     Commission without regard to the preceding provisions of this 
     subsection.''.

     SEC. 3545. DATE OF ACTUARIAL EVALUATION OF FECA LIABILITY.

       Section 5(a) of the Panama Canal Commission Compensation 
     Fund Act of 1988 (22 U.S.C. 3715c(a)) is amended by striking 
     out ``Upon the termination of the Panama Canal Commission'' 
     and inserting in lieu thereof ``By March 31, 1998''.

     SEC. 3546. APPOINTMENT OF NOTARIES PUBLIC.

       Section 1102a (22 U.S.C. 3612a) is amended--
       (1) by redesignating subsection (g) as subsection (h); and
       (2) by inserting after subsection (f) the following new 
     subsection:
       ``(g)(1) The Commission may appoint any United States 
     citizen to have the general powers of a notary public to 
     perform, on behalf of Commission employees and their 
     dependents outside the United States, any notarial act that a 
     notary public is required or authorized to perform within the 
     United States. Unless an earlier expiration is provided by 
     the terms of the appointment, any such appointment shall 
     expire three months after the Canal Transfer Date.
       ``(2) Every notarial act performed by a person acting as a 
     notary under paragraph (1) shall be as valid, and of like 
     force and effect within the United States, as if executed by 
     or before a duly authorized and competent notary public in 
     the United States.
       ``(3) The signature of any person acting as a notary under 
     paragraph (1), when it appears with the title of that 
     person's office, is prima facie evidence that the signature 
     is genuine, that the person holds the designated title, and 
     that the person is authorized to perform a notarial act.''.

     SEC. 3547. COMMERCIAL SERVICES.

       Section 1102b (22 U.S.C. 3612b) is amended by adding at the 
     end the following new subsection:
       ``(e) The Commission may conduct and promote commercial 
     activities related to the management, operation, or 
     maintenance of the Panama Canal. Any such commercial activity 
     shall be carried out consistent with the Panama Canal Treaty 
     of 1977 and related agreements.''.

     SEC. 3548. TRANSFER FROM PRESIDENT TO COMMISSION OF CERTAIN 
                   REGULATORY FUNCTIONS RELATING TO EMPLOYMENT 
                   CLASSIFICATION APPEALS.

       Sections 1221(a) and 1222(a) (22 U.S.C. 3661(a), 3662(a)) 
     are amended by striking out ``President'' and inserting in 
     lieu thereof ``Commission''.

     SEC. 3549. ENHANCED PRINTING AUTHORITY.

       Section 1306(a) (22 U.S.C. 3714b(a)) is amended by striking 
     out ``Section 501'' and inserting in lieu thereof ``Sections 
     501 through 517 and 1101 through 1123''.

     SEC. 3550. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Clerical Amendments.--The table of contents in section 
     1 is amended--
       (1) by striking out the item relating to section 1210 and 
     inserting in lieu thereof the following:

``Sec. 1210. Air transportation.'';

       (2) by striking out the items relating to sections 1215, 
     1219, and 1225;
       (3) by inserting after the item relating to section 1232 
     the following new item:

``Sec. 1233. Transition separation incentive payments.'';

     and
       (4) by inserting after the item relating to the heading of 
     title III the following:

                        ``Chapter 1--Procurement

``Sec. 3101. Procurement system.
``Sec. 3102. Panama Canal Board of Contract Appeals.''.

       (b) Amendment To Reflect Prior Change in Compensation of 
     Administrator.--Section 5315 of title 5, United States Code, 
     is amended by striking out the following:
       ``Administrator of the Panama Canal Commission.''.
       (c) Amendments To Reflect Change in Travel and 
     Transportation Expenses Authority.--(1) Section 5724(a)(3) of 
     title 5, United States Code, is amended by striking out ``, 
     the Commonwealth of Puerto Rico,'' and all that follows 
     through ``Panama Canal Act of 1979'' and inserting in lieu 
     thereof ``or the Commonwealth of Puerto Rico''.
       (2) Section 5724a(j) of such title is amended--
       (A) by inserting ``and'' after ``Northern Mariana 
     Islands,''; and
       (B) by striking out ``United States, and'' and all that 
     follows through the period at the end and inserting in lieu 
     thereof ``United States.''.
       (3) The amendments made by this subsection shall take 
     effect on January 1, 1999.
       (d) Miscellaneous Technical Amendments.--
       (1) Section 3(b) (22 U.S.C. 3602(b)) is amended by striking 
     out ``the Canal Zone Code'' and all that follows through 
     ``other laws'' the second place it appears and inserting in 
     lieu thereof ``laws of the United States and regulations 
     issued pursuant to such laws''.
       (2)(A) The following provisions are each amended by 
     striking out ``the effective date of this Act'' and inserting 
     in lieu thereof ``October 1, 1979'': sections 3(b), 3(c), 
     1112(b), and 1321(c)(1).
       (B) Section 1321(c)(2) is amended by striking out ``such 
     effective date'' and inserting in lieu thereof ``October 1, 
     1979''.
       (C) Section 1231(c)(3)(A) (22 U.S.C. 3671(c)(3)(A)) is 
     amended by striking out ``the day before the effective date 
     of this Act'' and inserting in lieu thereof ``September 30, 
     1979''.
       (3) Section 1102a(h), as redesignated by section 3546(1), 
     is amended by striking out ``section 1102B'' and inserting in 
     lieu thereof ``section 1102b''.
       (4) Section 1110(b)(2) (22 U.S.C. 3620(b)(2)) is amended by 
     striking out ``section 16 of the Act of August 1, 1956 (22 
     U.S.C. 2680a),'' and inserting in lieu thereof ``section 207 
     of the Foreign Service Act of 1980 (22 U.S.C. 3927)''.
       (5) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by 
     striking out ``as last in effect before the effective date of 
     section 3530 of the Panama Canal Act Amendments of 1996'' and 
     inserting in lieu thereof ``as in effect on September 22, 
     1996''.
       (6) Section 1243(c)(2) (22 U.S.C. 3681(c)(2)) is amended by 
     striking out ``retroactivity'' and inserting in lieu thereof 
     ``retroactively''.
       (7) Section 1341(f) (22 U.S.C. 3751(f)) is amended by 
     striking out ``sections 1302(c)'' and inserting in lieu 
     thereof ``sections 1302(b)''.
                  TITLE XXXVI--MARITIME ADMINISTRATION
Sec. 3601. Authorization of appropriations for fiscal year 1998.
Sec. 3602. Repeal of obsolete annual report requirement concerning 
              relative cost of shipbuilding in the various coastal 
              districts of the United States.
Sec. 3603. Provisions relating to maritime security fleet program.
Sec. 3604. Authority to utilize replacement vessels and capacity.
Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.
Sec. 3606. Determination of gross tonnage for purposes of tank vessel 
              double hull requirements.

     SEC. 3601. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 
                   1998.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1998, to be available without fiscal year limitation if 
     so provided in appropriations Act, for the use of the 
     Department of Transportation for the Maritime Administration 
     as follows:
       (1) For expenses necessary for operations and training 
     activities, $70,000,000.
       (2) For expenses under the loan guarantee program 
     authorized by title XI of the Merchant Marine Act, 1936 (46 
     U.S.C. App. 1271 et seq.), $39,000,000 of which--
       (A) $35,000,000 is for the cost (as defined in section 
     502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661a(5))) of loan guarantees under the program; and
       (B) $4,000,000 is for administrative expenses related to 
     loan guarantee commitments under the program.

     SEC. 3602. REPEAL OF OBSOLETE ANNUAL REPORT REQUIREMENT 
                   CONCERNING RELATIVE COST OF SHIPBUILDING IN THE 
                   VARIOUS COASTAL DISTRICTS OF THE UNITED STATES.

       (a) Repeal.--Section 213 of the Merchant Marine Act, 1936 
     (46 U.S.C. App. 1123), is amended by striking out paragraph 
     (c).
       (b) Conforming Amendments.--Such section is further 
     amended--
       (1) by striking out ``on--'' in the matter preceding 
     paragraph (a) and inserting in lieu thereof ``on the 
     following:'';
       (2) by redesignating paragraphs (a) and (b) as paragraphs 
     (1) and (2), respectively;
       (3) by striking out the semicolon at the end of each of 
     those paragraphs and inserting in lieu thereof a period; and
       (4) by realigning those paragraphs so as to be indented 2 
     ems from the left margin.

     SEC. 3603. PROVISIONS RELATING TO MARITIME SECURITY FLEET 
                   PROGRAM.

       (a) Authority of Contractors To Operate Self-Propelled Tank 
     Vessels in Noncontiguous Domestic Trades.--Section 656(b) of 
     the Merchant Marine Act, 1936 (46 U.S.C. App. 1187e(b)) is 
     amended by inserting ``(1)'' after ``(b)'', and by adding at 
     the end the following new paragraph:
       ``(2) Subsection (a) shall not apply to operation by a 
     contractor of a self-propelled tank vessel in a noncontiguous 
     domestic trade, or to ownership by a contractor of an 
     interest in a self-propelled tank vessel that operates in a 
     noncontiguous domestic trade.''.
       (b) Relief From Delay in Certain Operations Following 
     Documentation.--Section 652(c) of the Merchant Marine Act, 
     1936 (46

[[Page H9203]]

     U.S.C. 1187a(c)) is amended by adding at the end the 
     following: ``The restrictions of section 901(b)(1) of this 
     Act concerning the building, rebuilding, or documentation of 
     a vessel in a foreign country shall not apply to a vessel for 
     any day the operator of that vessel is receiving payments 
     under an operating agreement under this subtitle.''.

     SEC. 3604. AUTHORITY TO UTILIZE REPLACEMENT VESSELS AND 
                   CAPACITY.

       Section 653(d)(1) of the Merchant Marine Act, 1936 (46 
     U.S.C. App. 1187b(d)(1)) is amended to read as follows:
       ``(1) a contractor or other person that commits to make 
     available a vessel or vessel capacity under the Emergency 
     Preparedness Program or another primary sealift readiness 
     program approved by the Secretary of Defense may, during the 
     activation of that vessel or capacity under that program, 
     operate or employ in foreign commerce a foreign-flag vessel 
     or foreign-flag vessel capacity as a temporary replacement 
     for the activated vessel or capacity; and''.

     SEC. 3605. AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET 
                   VESSEL.

       (a) Authority To Convey.--The Secretary of Transportation 
     may convey all right, title, and interest of the United 
     States Government in and to the vessel GOLDEN BEAR (United 
     States official number 239932) to the Artship Foundation, 
     located in Oakland, California (in this section referred to 
     as the ``recipient''), for use as a multi-cultural center for 
     the arts.
       (b) Terms of Conveyance.--
       (1) Delivery of vessel.--In carrying out subsection (a), 
     the Secretary shall deliver the vessel--
       (A) at the place where the vessel is located on the date of 
     conveyance;
       (B) in its condition on that date; and
       (C) at no cost to the United States Government.
       (2) Required conditions.--The Secretary may not convey a 
     vessel under this section unless--
       (A) the recipient agrees to hold the Government harmless 
     for any claims arising from exposure to hazardous material, 
     including asbestos and polychlorinated biphenyls, after 
     conveyance of the vessel, except for claims arising before 
     the date of the conveyance or from use of the vessel by the 
     Government after that date; and
       (B) the recipient has available, for use to restore the 
     vessel, in the form of cash, liquid assets, or a written loan 
     commitment, financial resources of at least $100,000.
       (3) Additional terms.--The Secretary may require such 
     additional terms in connection with the conveyance authorized 
     by this section as the Secretary considers appropriate.
       (c) Other Unneeded Equipment.--The Secretary may convey to 
     the recipient of the vessel conveyed under this section any 
     unneeded equipment from other vessels in the National Defense 
     Reserve Fleet, for use to restore the vessel conveyed under 
     this section to museum quality.

     SEC. 3606. DETERMINATION OF GROSS TONNAGE FOR PURPOSES OF 
                   TANK VESSEL DOUBLE HULL REQUIREMENTS.

       Section 3703a of title 46, United States Code, is amended 
     by adding at the end the following:
       ``(e)(1) For the purposes of this section and except as 
     otherwise provided in paragraphs (2) and (3) of this 
     subsection, the gross tonnage of a vessel shall be the gross 
     tonnage that would have been recognized by the Secretary on 
     July 1, 1997, as the tonnage measured under section 14502 of 
     this title, or as an alternate tonnage measured under section 
     14302 of this title as prescribed by the Secretary under 
     section 14104 of this title.
       ``(2)(A) The Secretary may waive the application of 
     paragraph (1) to a tank vessel if--
       ``(i) the owner of the tank vessel applies to the Secretary 
     for the waiver before January 1, 1998;
       ``(ii) the Secretary determines that--
       ``(I) the owner of the tank vessel has entered into a 
     binding agreement to alter the tank vessel in a shipyard in 
     the United States to reduce the gross tonnage of the tank 
     vessel by converting a portion of the cargo tanks of the tank 
     vessel into protectively located segregated ballast tanks; 
     and
       ``(II) that conversion will result in a significant 
     reduction in the risk of a discharge of oil;
       ``(iii) at least 60 days before the date of the issuance of 
     the waiver, the Secretary--
       ``(I) publishes notice that the Secretary has received the 
     application and made the determinations required by clause 
     (ii), including a description of the agreement entered into 
     pursuant to clause (ii)(I); and
       ``(II) provides an opportunity for submission of comments 
     regarding the application; and
       ``(iv) the alterations referred to in clause (ii)(I) are 
     completed before the later of--
       ``(I) the date by which the first special survey of the 
     tank vessel is required to be completed after the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 1998; or
       ``(II) July 1, 1999.
       ``(B) A waiver under subparagraph (A) shall not be 
     effective after the expiration of the 3-year period beginning 
     on the first date on which the tank vessel would have been 
     prohibited by subsection (c) from operating if the 
     alterations referred to in subparagraph (A)(ii)(I) were not 
     made.
       ``(3) This subsection does not apply to a tank vessel that, 
     before July 1, 1997, had undergone, or was the subject of a 
     contract for, alterations that reduce the gross tonnage of 
     the tank vessel, as shown by reliable evidence acceptable to 
     the Secretary.''.
       And the Senate agree to the same.
       That the Senate recede from its amendment to the title of 
     the bill.
     From the Committee on National Security, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Floyd Spence,
     Bob Stump,
     Duncan Hunter,
     John R. Kasich,
     Herbert H. Bateman,
     James V. Hansen,
     Curt Weldon,
     Joel Hefley,
     Jim Saxton,
     Steve Buyer,
     Tillie K. Fowler,
     John M. McHugh,
     James M. Talent,
     Terry Everett,
       (except for sections 355, 356, and 358-367),
     Roscoe G. Bartlett,
     Howard ``Buck'' McKeon,
     Ron Lewis,
     J.C. Watts, Jr.,
     Saxby Chambliss,
     Bob Riley,
     Ike Skelton,
     Norman Sisisky,
     John M. Spratt, Jr.,
       (except for the increase over the President's request for 
     research and development of a space-based laser and the 
     statement of managers on this program),
     Solomon P. Ortiz,
     Owen Pickett,
     Gene Taylor,
     Neil Abercrombie,
     Martin T. Meehan,
     Jane Harman,
     Paul McHale,
     Patrick J. Kennedy,
     Rod Blagojevich,
     Vic Snyder,
     As additional conferees from the Permanent Select Committee 
     on Intelligence, for consideration of matters within the 
     jurisdiction of that committee under clause 2 of rule XLVIII:
     Porter J. Goss,
     Jerry Lewis,
     Norm Dicks,
     As additional conferees from the Committee on Commerce for 
     consideration of sections 344, 601, 654, 735, 1021, 3143, 
     3144, 3201, 3202, 3402, and 3404 of the House bill, and 
     sections 338, 601, 663, 706, 1064, 2823, 3136, 3140, 3151, 
     3160, 3201, and 3402 of the Senate amendment, and 
     modifications committed to conference:
     Tom Bliley,
     Dan Schaefer,
     Provided that Mr. Oxley is appointed in lieu of Mr. Dan 
     Schaefer of Colorado for consideration of sections 344 and 
     1021 of the House bill and section 2823 of the Senate 
     amendment:
     Michael G. Oxley,
     Provided that Mr. Bilirakis is appointed in lieu of Mr. Dan 
     Schaefer of Colorado for consideration of sections 601, 654, 
     and 735 of the House bill, and sections 338, 601, 663, and 
     706 of the Senate amendment:
     Mike Bilirakis,
     Provided that Mr. Tauzin is appointed in lieu of Mr. Dan 
     Schaefer of Colorado for consideration of section 1064 of the 
     Senate amendment.
     Billy Tauzin,
     As additional conferees from the Committee on Education and 
     the Workforce, for consideration of sections 374, 658, and 
     3143 of the House bill, and sections 664 of the Senate 
     amendment, and modifications committed to conference:
     Bill Goodling,
     Harris W. Fawell,
     Loretta Sanchez,
     Provided that Mr. Riggs is appointed in lieu of Mr. Fawell 
     for consideration of section 658 of the House bill and 
     section 664 of the Senate amendment:
     Frank Riggs,
     As additional conferees from the Committee on Government 
     Reform and Oversight, for consideration of section 322 and 
     3527 of the House bill, and sections 1068, 1107, 2811, and 
     3527 of the Senate amendment, and modifications committed to 
     conference:
     Dan Burton,
     Stephen Horn,
     As additional conferees from the Committee on House 
     Oversight, for consideration of section 543 of the Senate 
     amendment, and modifications committed to conference:
     William M. Thomas,
     Bob Ney,
     As additional conferees from the Committee on the Judiciary, 
     for consideration of sections 374, 1057, 3521, 3522, and 3541 
     of the House bill, and sections 831, 1073, 1075, 1106, and 
     1201-1216 of the Senate amendment, and modifications 
     committed to conference:
     Henry J. Hyde,
     Lamar Smith,
     As additional conferees from the Committee on Resources, for 
     consideration of sections 214, 601, 653, 1021, 2835, 2901-
     2914 and 3404 of the House bill, and sections 234, 381-392, 
     601, 706, 2819, and 3158 of the Senate amendment, and 
     modifications committed to conference:
     Don Young,
     Billy Tauzin,
     Provided that Mr. Delahunt is appointed in lieu of Mr. Miller 
     of California for consideration of sections 2901-2914 of the 
     House bill and sections 381-392 of the Senate amendment.
     William Delahunt,

[[Page H9204]]

     As additional conferees from the Committee on Science, for 
     consideration of sections 214 and 3148 of the House bill, and 
     sections 234 and 1064 of the Senate amendment, and 
     modifications committed to conference:
     F. James Sensenbrenner, Jr.,
     Ken Calvert,
     George E. Brown, Jr.,
     Provided that Mr. Rohrabacher is appointed in lieu of Mr. 
     Calvert for consideration of section 1064 of the Senate 
     amendment:
     Dana Rohrabacher,
     As additional conferees from the Committee on Transportation 
     and Infrastructure for consideration of sections 345, 563, 
     601, 1021, 2861, and 3606 of the House bill, and section 601 
     of the Senate amendment, and modifications committed to 
     conference:
     Bud Shuster,
     Wayne T. Gilchrest,
     Robert A. Borski,
     As additional conferees from the Committee on Veterans' 
     Affairs for consideration of sections 751, 752, and 759 of 
     the House bill, and sections 220, 542, 751, 752, 758, 1069, 
     1074, and 1076 of the Senate amendment, and modifications 
     committed to conference:
     Christopher H. Smith,
     Mike Bilirakis,
     Joseph P. Kennedy,
                                Managers on the Part of the House.
     Strom Thurmond,
     John Warner,
     John McCain,
     Dan Coats,
     Bob Smith,
     Dirk Kempthorne,
     Jim Inhofe,
     Rick Santorum,
     Olympia Snowe,
     Pat Roberts,
     Carl Levin,
     Ted Kennedy,
     Jeff Bingaman,
     John Glenn,
     Robert C. Byrd,
     Chuck Robb,
     Joe Lieberman,
     Max Cleland,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 1119) to authorize 
     appropriations for fiscal year 1998 for defense activities of 
     the Department of Defense, for military construction, and for 
     defense programs of the Department of Energy, to prescribe 
     personnel strengths for such fiscal year for the Armed 
     Forces, and for other purposes, submit the following joint 
     statement to the House and the Senate in explanation of the 
     effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The Senate amendment struck out all of the House bill after 
     the enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment which is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.

                 Summary Statement of Conference Action

       The conferees recommend authorizations for the Department 
     of Defense for procurement, research and development, test 
     and evaluation, operation and maintenance, working capital 
     funds, military construction and family housing, weapons 
     programs of the Department of Energy, and the civil defense 
     that have budget authority implications of $268.2 billion.

                    Summary Table of Authorizations

       The defense authorization act provides authorizations for 
     appropriations but does not generally provide budget 
     authority. Budget authority is provided in appropriations 
     acts.
       In order to relate the conference recommendations to the 
     Budget Resolution, matter in addition to the dollar 
     authorizations contained in this bill must be taken into 
     account. A number of programs in the defense function are 
     authorized permanently or, in certain instances, authorized 
     in other annual legislation. In addition, this authorization 
     bill would establish personnel levels and include a number of 
     legislative provisions affecting military compensation.
       The following table summarizes authorizations included in 
     the bill for fiscal year 1998 and, in addition, summarizes 
     the implications of the conference action for the budget 
     totals for national defense (budget function 050).

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     Congressional defense committees
       The term ``congressional defense committees'' is often used 
     in this statement of the managers. It means the Defense 
     Authorization and Appropriations Committees of the Senate and 
     House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          Title I--Procurement

     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $42,883.0 million for Procurement in the 
     Department of Defense. The House bill would authorize 
     $46,595.9 million. The Senate amendment would authorize 
     $47,028.1 million. The conferees recommended an authorization 
     of $45,773.8 million. Unless noted explicitly in the 
     statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $1.162.5 million for Aircraft Procurement, 
     Army in the Department of Defense. The House bill would 
     authorize $1,535.3 million. The Senate amendment would 
     authorize $1,394.5 million. The conferees recommended an 
     authorization of $1,316.2 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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                          funding explanations

     UH-60 blackhawk
       The budget request included $246.1 million to procure 18 
     UH-60 Blackhawk helicopters.
       The House bill would authorize an increase of $96.0 million 
     for an additional 12 aircraft.
       The Senate amendment would authorize an increase of $127.3 
     million for 18 additional aircraft.
       The conferees agree to authorize an increase of $89.0 
     million for 10 additional aircraft, of which $6.0 million 
     would be used to procure kits to configure UH-60Q medical 
     evacuation aircraft.
     Kiowa warrior
       The budget request included $38.8 million for Kiowa Warrior 
     helicopter modifications.
       The House bill would authorize an increase of $175.0 
     million to procure 21 aircraft.
       The Senate amendment would authorize an additional $15.0 
     million for safety modifications to existing aircraft.
       The House recedes.
     Aircraft survivability equipment modifications
       The budget request included $4.6 million to support 
     aircraft survivability equipment modifications.
       The House bill would authorize an increase of $15.0 million 
     for laser detection sets for Army aircraft.
       The Senate amendment would authorize an additional $8.1 
     million for testing and integration of the suite of 
     integrated radio frequency countermeasures and the suite of 
     integrated infrared countermeasures systems.
       The conferees agree to authorize a total of $19.1 million 
     for aircraft survivability equipment modifications, of which 
     $7.0 million would be for laser detection sets and $7.5 
     million for advanced threat infrared countermeasures.
     Aircraft survivability equipment
       The budget request included $0.9 million to procure 
     aircraft survivability equipment.
       The House bill would authorize an increase of $14.8 million 
     to procure upgrades to the aircraft survivability equipment 
     trainer (ASET) IV system.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $7.4 
     million for ASET IV upgrades.
     Training devices
       The budget request included no funds for aircraft training 
     devices.
       The House bill and the Senate amendment would authorize an 
     increase of $18.6 million to procure upgrades to flight 
     simulators used in the Korean theater.
       The conferees agree to authorize an increase of $13.3 
     million for these critical simulator upgrades.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $1.178.2 million for Missile Procurement, 
     Army in the Department of Defense. The House bill would 
     authorize $1,176.5 million. The Senate amendment would 
     authorize $1,223.9 million. The conferees recommended an 
     authorization of $742.6 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Avenger
       The budget request included no funds for procurement of 
     Avenger missile systems.
       The House bill would authorize an increase of $13.3 million 
     for Avenger slew-to-cue modifications.
       The Senate amendment would authorize an increase of $15.0 
     million to the budget request: $13.0 million for Avenger 
     slew-to-cue modifications; and $2.0 million for Avenger table 
     top trainers for the Army National Guard.
       The conferees agree to authorize $7.4 million for Avenger 
     slew-to-cue modifications.
     Hellfire
       The budget request included $279.7 million for procurement 
     of Hellfire missile systems.
       The House bill would support the budget request.
       The Senate amendment would reduce the budget request by 
     $10.7 million.
       The conferees agree to reduce the Hellfire missile program 
     by $30.7 million.
     Multiple launch rocket system rocket
       The budget request included $2.9 million for procurement of 
     Multiple Launch Rocket System (MLRS) rockets.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $12.0 
     million for procurement of extended range MLRS rockets.
       The House recedes.
     Multiple launch rocket system launcher
       The budget request included $102.6 million to support 
     procurement of Multiple Launch Rocket System (MLRS) 
     launchers.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $25.1 
     million for MLRS launchers necessary to accelerate Army plans 
     to convert MLRS force structure to a new 2 X 9 configuration.
       The conferees agree to authorize $115.7 million for this 
     program. This total includes $25.1 million for additional 
     launchers and a transfer of $12.0 million to MLRS extended 
     range rockets.
     Brilliant anti-armor submunition
       The budget request included $85.2 million for procurement 
     of Brilliant Anti-Armor Submunition (BAT) submunitions.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees are concerned about the Army's procurement of 
     basic BAT munitions prior to production and fielding of the 
     objective preplanned product improvement (P3I) BAT system. 
     While the conferees understand that the Army plans to use the 
     basic BAT as a bridge to the P3I system for development and 
     fielding of the Block II Army Tactical Missile System, it is 
     clear that the basic BAT system is solely an interim solution 
     and cannot meet the entire range of system requirements. The 
     conferees agree to eliminate funding for the basic BAT 
     munition. The conferees, in support of an alternative to 
     procuring basic BAT munitions, agree to authorize a transfer 
     of $35.0 million to PE 64768A in order to accelerate 
     development and production of the P3I BAT.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $1,065.7 million for Weapons and Tracked 
     Combat Vehicles Procurement, Army in the Department of 
     Defense. The House bill would authorize $1,519.5 million. The 
     Senate amendment would authorize $1,179.1 million. The 
     conferees recommended an authorization of $1,297.6 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     Bradley base sustainment
       The budget request included $125.6 million to upgrade 
     Bradley Fighting Vehicles (BFV).
       The House bill would authorize the budget request but would 
     also authorize $120.0 million for A0 to A2 Operation Desert 
     Storm (ODS) upgrades for the Army National Guard (ARNG) in 
     the BFV funding line.
       The Senate amendment would authorize an increase of $62.4 
     million to maintain low-rate production rates for A3 upgrades 
     necessary prior to full scale production in 1999.
       The conferees agree to authorize an increase of $95.0 
     million for BFV ODS upgrades for the ARNG.
     Field artillery ammunition support vehicle
       The budget request included no funds for Field Artillery 
     Ammunition Support Vehicles (FAASV).
       The House bill would authorize an increase of $81.1 million 
     to procure 72 FAASV systems.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $40.0 million for the 
     FAASV systems necessary to support Army National Guard 
     artillery modernization.
     M109A6 paladin howitzer
       The budget request included $18.7 million for Paladin 
     howitzer artillery system support.
       The House bill would authorize an increase of $111.0 
     million to procure 72 Paladin howitzer systems.
       The Senate amendment would authorize the budget request.
       The Senate recedes with an amendment that would authorize 
     an increase of $56.0 million for no less than 36 Paladin 
     systems.
       The conferees agree to authorize $74.7 million for the 
     M109A6 Paladin in support of Army National Guard artillery 
     modernization.
     Improved recovery vehicle
       The budget request included $28.6 million for Improved 
     Recovery Vehicle (IRV) program support.
       The House bill would authorize an increase of $27.8 million 
     to procure an additional 12 vehicles.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $32.6 million for IRV 
     system requirements.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $336.8 million for Ammunition Procurement, 
     Navy and Marine Corps in the Department of Defense. The House 
     bill would authorize $470.4 million. The Senate amendment 
     would authorize $369.8 million. The conferees recommended an 
     authorization of $364.7 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $7,438.2 million for Shipbuilding and 
     Conversion Procurement, Navy in the Department of Defense. 
     The House bill would authorize $7,655.0 million. The Senate 
     amendment would authorize $8,593.4 million. The conferees 
     recommended an authorization of 8,195.3 million. Unless noted 
     explicitly in the statement of managers, all changes are made 
     without prejudice.

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     LPD-18
       The budget request included no funds for the LPD-18.
       The House bill would authorize $185.0 million for advance 
     procurement of this type ship.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $100.0 million for the 
     advance procurement of one LPD-17 class ship.
     Oceanographic survey ship
       The budget request included no funds for an additional 
     oceanographic survey ship.
       The House bill and Senate amendment would authorize $75.2 
     million for one TAGS-65 oceanographic survey ship.
       The conferees agree to authorize $16.0 million advance 
     procurement for one TAGS-65 oceanographic survey ship.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $2,825.5 million for Other Procurement, Navy 
     in the Department of Defense. The House bill would authorize 
     $3,073.4 million. The Senate amendment would authorize 
     $3,137.7 million. The conferees recommended an authorization 
     of $2,970.9 million. Unless noted explicitly in the statement 
     of managers, all changes are made without prejudice.

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     AN/WSN-7 inertial navigation system
       The budget request included $31.6 million for navigation 
     equipment, including $12.3 million for the procurement of 
     nine AN/WSN-7 ring laser gyros (RLGs).
       The House bill and the Senate amendment would authorize an 
     increase of $18.0 million for procurement and installation of 
     18 additional WSN-7 RLGs.
       The conferees agree to authorize an increase of $10.5 
     million for procurement and installation of additional WSN-7 
     RLGs.
     Self-contained breathing apparatus
       The budget request included $14.1 million for fire fighting 
     equipment, but did not include funding for procurement of 
     oxygen breathing apparatuses used for shipboard firefighting.
       The House bill would authorize an increase of $23.0 million 
     to begin outfitting the fleet with self-contained breathing 
     apparatuses (SCBAs), a non-developmental, commercial off-the-
     shelf more user-friendly and efficient shipboard firefighting 
     system to replace the antiquated oxygen-breathing apparatus 
     (OBA).
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million for procurement of SCBAs.
     Pollution control equipment
       The budget request included $156.8 million for pollution 
     control equipment.
       The House bill would authorize a decrease of $6.3 million 
     because an equivalent amount of excess fiscal year 1997 funds 
     is available to meet fiscal year 1998 program requirements.
       The Senate amendment would authorize a decrease of $8.8 
     million due to reduced requirements resulting from ship 
     deactivations.
       The conferees agree to authorize $135.8 million, a decrease 
     of $21.0 million, for pollution control equipment.
     AN/BPS-16 submarine navigation radar
       The budget request included no funds for the procurement of 
     AN/BPS-16 or AN/BPS-15H submarine navigation radar.
       The House bill would authorize $9.0 million for the AN/BPS-
     16 submarine navigation radar to initiate the backfit of the 
     radar on the Trident submarine fleet.
       The Senate amendment would authorize $9.0 million for the 
     procurement of additional AN/BPS-15H radar sets for 
     installation into Trident class submarines and for use as 
     training and refit facility assets.
       The conferees agree to authorize $9.0 million for AN/BPS-
     15H radar navigation sets.
     Cooperative engagement capability
       The budget request included no funds for procurement of 
     cooperative engagement capability (CEC) equipment.
       The House bill would authorize $114.8 million to restore 
     the Navy's CEC fielding plan by procuring and installing CEC 
     shipsets for two aircraft carrier battle groups.
       The Senate amendment would authorize $74.8 million to 
     procure and install CEC battle group equipment.
       The conferees agree to authorize an increase of $75.0 
     million for procurement and installation of CEC battle group 
     equipment.
     Information Technology-21
       The budget request included no funds for Information 
     Technology-21 (IT-21).
       The Senate amendment would authorize an increase of $157.2 
     million for IT-21. Of this amount $147.9 would be for 
     procurement and installation of IT-21 related equipment and 
     $9.3 million would be for related operations and maintenance 
     funding. These funds would provide an initial impetus to the 
     IT-21 initiative and assist the Navy to achieve its goal of a 
     fully outfitted fleet by the year 2000.
       The House bill would authorize the budget request.
       The conferees agree to authorize a total IT-21 procurement 
     increase of $58.0 million as follows:
      (1) JMCIS Afloat $6.0 million;
      (2) Naval Tactical Command Support System $31.0 million;
      (3) Ship Communications Automation $4.0 million;
      (4) SATCOM Ship Terminals (Space) $2.0 million;
      (5) Naval Shore Communications $12.0 million; and
      (6) Information Systems Security Program $3.0 million
     Sonobuoy procurement
       The Budget request included $54.8 million for the 
     procurement of AN/SSQ-36, AN/SSQ-53E, and AN/SSQ-62E 
     sonobuoys and Signal, Underwater Sound (SUS) Systems. The 
     budget request included no funds for the AN/SSQ-57 or the AN/
     SSQ-110 sonobuoys.
       The House bill would authorize an increase of $45.8 million 
     to be distributed as follows: $1.5 million for AN/SSQ-36; 
     $23.7 million for AN/SSQ-53; $4.5 million for AN/SSQ-57 
     retrofits; $8.6 million for SSQ-62; $5.0 million for AN/SSQ-
     110 shallow-water upgrades; and $2.5 million for Signal, 
     Underwater Sound (SUS).
       The Senate amendment would authorize increases of $19.0 
     million for AN/SSQ-53E and $7.0 million for AN/SSQ-62E 
     sonobuoys.
       The conferees agree to authorize the following increases to 
     the budget request: $0.3 million for AN/SSQ-36; $19.0 million 
     for AN/SSQ-53; $7.0 million for SSQ-62; and $0.5 million for 
     AN/SSQ-57.
     Mobile remote emitter simulator
       The budget request included $4.9 million for weapons range 
     support, but did not include any funding to procure Mobile 
     Remote Emitter Simulator (MRES) system.
       The House bill would authorize an increase of $9.5 million 
     to procure two MRES systems for the Atlantic test range 
     component of the Naval Air Warfare Center.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $6.0 
     million for MRES.
     NATO sea sparrow missile system low light level television
       The budget request included no funds for the NATO Sea 
     Sparrow missile system low light level television (LLTV) 
     charged coupled device (CCD) ordnance alternation (ORDALT).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $8.0 
     million above the budget request for the procurement of 
     additional CCD ORDALT kits.
       The conferees agree to an increase of $6.0 million for the 
     procurement of additional CCD ORDALT kits.
     AEGIS support equipment
       The budget request included $26.8 million for AEGIS support 
     equipment.
       The House bill would authorize an increase of $8.0 million 
     to backfit the computer-aided submode training lesson 
     authorizing system (CLASS) on AEGIS cruisers and destroyers 
     and to expand CLASS to other systems such as cooperative 
     engagement capability, joint maritime command information 
     system, and global command and control system.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a $21.1 million for AEGIS 
     support equipment.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $374.3 million of Marine Corps Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $442.8 million. The Senate amendment would 
     authorize $554.8 million. The conferees recommended an 
     authorization of $460.1 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Light tactical wheeled vehicle replacement
       The budget request included $0.7 million to support the 
     Marine Corps High Mobility Multipurpose Wheeled Vehicle 
     (HMMWV) program.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $55.0 
     million to accelerate a planned replacement program for a 
     deteriorating HMMWV fleet.
       The conferees agree to authorize an increase of $30.0 
     million.
     Chemical/biological incident response force equipment
       The budget request included $1.1 million for field medical 
     equipment and no funding for chemical/biological incident 
     response force (CBIRF) equipment.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $15.0 
     million for procurement of CBIRF equipment.
       The conferees agree to authorize an increase of $10.0 
     million for CBIRF requirements for a total of $11.1 million 
     for Marine Corps field medical equipment procurement.
     MK-19 grenade launcher
       The budget request included no funds for the MK-19 grenade 
     launcher.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $13.0 
     million to maintain production of the MK-19 grenade 
     launchers.
       The conferees agree to authorize a total of $8.0 million 
     for the MK-19 grenade launcher.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $890.9 million for Ammunition Procurement, 
     Army in the Department of Defense. The House bill would 
     authorize $1,093.8 million. The Senate amendment would 
     authorize $1,043.2 million. The conferees recommended an 
     authorization of $1,011.2 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $2,455.0 million for Other Procurement, Army 
     in the Department of Defense. The House bill would authorize 
     $2,640.3 million. The Senate amendment would authorize 
     $2,875.7 million. The conferees recommended an authorization 
     of $2,566.2 million. Unless noted explicitly in the statement 
     of managers, all changes are made without prejudice. 

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     Semitrailers
       The budget request included funds for a variety of 
     semitrailer requirements.
       The conferees note program delays for several semitrailer 
     procurements. In consideration of these delays, the conferees 
     agree to funding reductions of $7.4 million for 22.5 ton 
     semitrailer/container transporters; $4.6 million for 5,000 
     gallon tank semitrailers; and $7.4 million for 7,500 gallon 
     bulkhaul semitrailers. In addition, the conferees agree to 
     authorize $2.0 million for 22.5 ton semitrailer/container 
     transporters; $3.0 million for 5,000 gallon tank 
     semitrailers; and $3.0 million for 7,500 gallon bulkhaul 
     semitrailers.
     High mobility multi-purpose wheeled vehicle
       The budget request included $66.2 million for High Mobility 
     Multi-Purpose Wheeled Vehicle (HMMWV) production.
       The House bill would authorize an increase of $38.7 million 
     for 360 up-armored HMMWVs.
       The Senate amendment would authorize an increase of $75.0 
     million to maintain minimum production levels of HMMWVs.
       The conferees agree to authorize an increase of $65.0 
     million for HMMWV production.
     Family of heavy tactical vehicles
       The budget request included $9.1 million for Family of 
     Heavy Tactical Vehicles (FHTV) production support.
       The House bill would authorize an increase of $45.0 million 
     to procure 96 Heavy Equipment Transporters (HETS) for the 
     Army National Guard.
       The Senate amendment would authorize an increase of $128.0 
     million to maintain minimum production levels of FHTVs. This 
     funding would include $50.0 million for the Palletized Load 
     System (PLS); $45.0 million for HETS; and $33.0 million for 
     Heavy Expanded Mobility Tactical Truck (HEMTT) wreckers.
       The conferees agree to authorize an increase of $105.0 
     million for FHTV. Of this amount, $45.0 million is for HETS 
     and the remaining $60.0 million is for HEMTT wreckers and 
     PLS.
     Truck, tractor, line haul, M915/M916
       The budget request included $36.1 million to procure M915/
     916 line haul tractors.
       The House bill would reduce the request by $18.0 million to 
     achieve a more moderate rate of production.
       The Senate amendment would authorize the budget request.
       The conferees understand that there has been a delay in the 
     7,500 gallon bulkhaul semitrailer program, which is the type 
     of trailer towed by the M915/916 line haul tractor series. 
     Accordingly the conferees believe that revised Army 
     requirements can be met at lower average procurement rates 
     than previously planned and therefore agree to eliminate 
     funding for these tractors in fiscal year 1998. Further, the 
     Secretary of the Army is directed to review requirements for 
     this equipment and restructure the program to achieve an 
     annual procurement rate consistent with revised requirements 
     beginning in fiscal year 1999.
     Defense satellite communications system
       The budget request included $87.6 million for defense 
     satellite communications system requirements.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees note the budget request included funding for 
     acceleration of the production of a universal modem system. 
     The conferees understand that required testing for this 
     system will not be complete until late 1999. Therefore, the 
     conferees agree to reduce program funding by $2.0 million.
     Satellite terminals
       The budget request included $7.3 million for satellite 
     communication terminals.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees note the savings achieved from a joint Army/
     Air Force procurement in 1997. The conferees believe that 
     these savings should be used to offset funding requirements 
     for fiscal year 1998. Therefore, the conferees agree to 
     reduce program funding by $1.2 million.
     NAVSTAR global positioning system
       The budget request included $6.8 million for NAVSTAR Global 
     Positioning System (GPS) equipment.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees have been informed that both price and 
     quantities budgeted for NAVSTAR GPS equipment were reduced in 
     1997. Additionally, the conferees understand that 
     program management reductions have also yielded savings. 
     The conferees believe these savings should be used to 
     offset funding requirements for fiscal year 1998. 
     Therefore, the conferees agree to reduce funding for this 
     program by $1.2 million.
     Army data distribution system
       The budget request included $57.2 million to procure data 
     distribution systems, including $7.0 million for joint 
     tactical information distribution system (JTIDS) terminals.
       The House bill would authorize an increase of $37.4 million 
     to procure an additional 1,092 enhanced position location 
     reporting system (EPLRS) radios.
       The Senate amendment would authorize an increase of $37.3 
     million for 1,092 EPLRS radios.
       The conferees agree to authorize an increase of $30.4 
     million for EPLRS radios and transfer $20.1 million for JTIDS 
     terminals to ballistic missile defense procurement.
       The conferees agree to authorize $67.5 million for critical 
     data distribution systems.
     Area common user system modernization program
       The budget request included $82.4 million for Area Common 
     User System (ACUS) modernization.
       The House bill would authorize an increase of $10.0 million 
     to procure tactical communications technologies for 
     evaluation by Force XXI experimental forces.
       The Senate amendment would authorize an increase of $33.0 
     million to support ongoing modifications to the ACUS and 
     support migration to the Army's Warfighter Information 
     Network.
       The conferees agree to authorize an increase of $23.0 
     million for ACUS.
     Information system security program
       The budget request included $10.2 million to procure 
     information system security devices.
       The House bill would support the budget request.
       The Senate amendment would authorize an increase of $5.5 
     million to support minimum production requirements for 400 
     Airterm KY-100 devices.
       The conferees agree to authorize an increase of $3.5 
     million for Airterm KY-100 devices.
     Ground based common sensors
       The budget request included $26.8 million for ground based 
     common sensors.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees agree to eliminate funding in fiscal year 
     1998 based on the Army decision to reschedule the initial 
     operational test and evaluation for this program.
     Shortstop
       The budget request included no funds for the Shortstop 
     electronic protection system (SEPS).
       The House bill would authorize an increase of $9.0 million 
     to procure 42 additional SEPS needed in Korea.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $6.0 million for SEPS 
     devices needed by U.S. forces in Korea.
     Night vision
       The budget request included $85.3 million for night vision 
     systems.
       The House bill would authorize an increase of $30.8 million 
     that would be used to procure additional systems: $17.0 
     million for AN/PVS-7 night vision goggle systems; $5.4 
     million for ANVIS 25mm image intensifiers; and $8.4 million 
     for night vision driver viewers for the M113A3.
       The Senate amendment would authorize an increase of $36.0 
     million that would be used to procure additional night vision 
     systems: $8.0 million for AN/PEQ-2 aiming light systems; 
     $17.0 million for AN/PVS-7 night vision goggle systems; $10.0 
     million for AN/PAS-13 thermal weapon sight systems; and $1.0 
     million for 2,900 borelights.
       The conferees agree to authorize an increase of $26.4 
     million for night vision equipment: $11.0 million for AN/PVS-
     7 systems; $5.5 million for AN/PEQ-2 aiming light systems; 
     $6.9 million for AN/PAS-13 thermal weapon sights; $2.0 
     million for light weight video systems; and $1.0 million for 
     borelights.
     LOGTECH
       The budget request included $3.4 million for LOGTECH 
     systems.
       The House bill would authorize an increase of $11.7 million 
     to procure additional radio frequency (RF) tagging systems.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $10.0 
     million for additional RF tagging equipment.
     Maneuver control system
       The budget request included $15.7 million for the maneuver 
     control system (MCS).
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees note a history of significant problems with 
     the Army's efforts to develop the software requirements for 
     this program and corresponding delays in scheduled 
     operational testing. The conferees also note that this 
     system failed two of four development testing activities. 
     Until MCS meets all the established system requirements 
     and the Army validates corrective actions through 
     requisite testing, the conferees agree to eliminate 
     further funding for this program.
     Automated data processing equipment
       The budget request included $125.1 million for Automated 
     Data Processing Equipment (ADPE).
       The House bill would authorize an increase of $13.0 million 
     to procure additional Sustaining Base Information Services 
     (SBIS) hardware.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $7.0 
     million of SBIS hardware.
     Railway car, flat, 100 ton
       The budget request included $17.8 million for procurement 
     of 100 ton railway cars.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees agree to eliminate fiscal year 1998 funding 
     for procurement of railway cars. The conferees note that the 
     Army was able to take advantage of an unanticipated 
     opportunity to procure 86% of its rail car requirement in 
     calendar year 1997.
     Training devices, nonsystem
       The budget request included $49.7 million for nonsystem 
     training devices.

[[Page H9253]]

       The House bill would authorize an additional $4.0 million 
     for four fire training systems.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $4.0 
     million for four fire fighter training systems.
     Close combat tactical trainers
       The budget request included $92.9 million for simulation 
     network close combat tactical trainers (CCTT).
       The House bill would authorize a decrease of $11.5 million 
     due to the delay in initial operation test and evaluation for 
     the close combat tactical training systems.
       The Senate amendment would authorize a decrease of $10.0 
     million for procurement of training system components and 
     would authorize a transfer of an additional $11.5 million to 
     PE 64780A to resolve software problems.
       The conferees agree to authorize a decrease of $38.4 
     million in procurement funding for the program. Included in 
     this reduction is the transfer of $10.5 million to PE 64780A.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $6,086.0 million for Aircraft Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $6,173.0 million. The Senate amendment would 
     authorize $6,482.3 million. The conferees recommended an 
     authorization of $6,437.3 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H9257]]

     AV-8H Harrier remanufacture
       The budget request included $300.1 million to procure 11 
     AV-8B remanufactured aircraft for the Marine Corps. The 
     fiscal year 1997 plan for AV-8B remanufacture in fiscal year 
     1998 called for a procurement of 12 aircraft in fiscal year 
     1998. However, the budget request for fiscal year 1998 
     included 11 aircraft, a further indication of the Department 
     of Defense's inability to execute its own previously stated 
     procurement program.
       The House bill would authorize an increase of $33.0 million 
     for an additional aircraft.
       The Senate amendment would authorize an increase of $89.6 
     million, including $24.6 million for an additional aircraft 
     remanufacture and $65.0 million for training simulators.
       The conferees agree to authorize an increase of $6.2 
     million for an additional AV-8B remanufacture. The conferees 
     understand that an additional remanufacture can be funded 
     with this increase through program savings.
     T-45TS Goshawk
       The budget request included $269.8 million for 12 T-45 
     trainer aircraft and $6.2 million for advance procurement of 
     12 T-45C aircraft in fiscal year 1999.
       The House bill would authorize an increase of $100.0 
     million for the procurement of six additional aircraft.
       The Senate amendment would authorize an increase of $102.0 
     million for the same purpose.
       The conferees note with concern the recent grounding of the 
     T-2 trainers because of flight control malfunctions. The T-2s 
     are being replaced by the T-45. Accordingly, the conferees 
     agree to authorize $315.2 million, an increase of $45.4 
     million to accelerate fielding of the T-45 by increasing the 
     fiscal year 1998 acquisition from 12 to 15 aircraft.
     EA-6 Series
       The budget request included $86.8 million for EA-6B 
     modifications.
       The House bill would authorize an increase of $68.0 
     million, including $50.0 million for 10 wing center sections 
     (WCS) and $18.0 million to continue the turbine engine blade 
     containment system (TEBS).
       The Senate amendment would authorize an increase of $25.0 
     million to incorporate a low risk, affordable upgrade to the 
     EA-6B in conjunction with modifications already underway to 
     counter the new family of threats.
       The conferees agree to authorize an increase of $25.0 
     million to replace the WCS of 5 additional EA-6Bs. The 
     increase of $25.0 million for WCS is partially offset by a 
     $10.0 million reduction for late obligations, resulting in a 
     net increase of $15.0 million for EA-6B modifications. The 
     conferees urge the Secretary of the Navy to provide funds to 
     complete the WCS modifications in the fiscal year 1999 budget 
     request.
     P-3C anti-surface warfare improvement program
       The budget request included $164.9 million for P-3 series 
     modifications, $74.7 million of which is for the procurement 
     of four anti-surface warfare improvements program (AIP) kits, 
     and $41.3 million of which is for 11 sustained readiness 
     program (SRP) kits.
       The House bill would authorize an increase of $56.6 million 
     for an additional eight AIP kits and an increase of $35.1 
     million to procure 17 additional shipsets of SRP kits. In 
     addition, the House would authorize an increase of $11.0 
     million for light weight environmentally sealed parachute 
     assemblies (LESPA) and an increase of $1.4 million for oil 
     debris detection systems (ODDS).
       The Senate amendment would authorize an increase of $17.3 
     million for the procurement of two P-3C AIP kits and direct 
     the Secretary of the Navy to formally evaluate the 
     advisability of renegotiating the P-3C AIP contract to 
     eliminate the cost penalties that are being incurred as a 
     consequence of current Navy budgeting practices.
       The conferees agree to authorize the following increases to 
     the budget request: $25.0 million for sustained readiness 
     program (SRP) kits, $17.3 million for anti-surface warfare 
     improvement program (AIP) kits, and $8.0 million for light 
     weight environmentally sealed parachute assemblies.
     Power plant changes
       The budget request included $14.0 million for power plant 
     changes.
       The House bill would authorize an increase of $1.6 million 
     to incorporate the oil debris detection system (ODDS) on the 
     P-3, E-2 and C-2 fleets, with $1.4 million for the P-3 and 
     $100,000 for the E-2 and C-2 fleets. The House bill would 
     apportion the increase for ODDS in individual aircraft 
     modification accounts. The ODDS is an on-board detection 
     system that alerts air crews to the presence of metal chips 
     in engines and propeller gear boxes, allowing flights to be 
     terminated prior to catastrophic failure of critical 
     components.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $1.6 
     million in the power plant changes budget line item for the 
     incorporation of ODDS in P-3, E-2, and C-2 fleets.
     Common Avionics Changes
       The budget request included $131.6 million for common 
     avionics changes, but did not contain any funding to procure 
     AN/AWW-13 guided weapon control monitor sets. The AN/AWW-13 
     provides the data link capability for F/A-18 series aircraft 
     to employ the precision-guided Walleye and the Stand-off Land 
     Attack Missiles.
       The Senate amendment would authorize the budget request.
       The House bill would authorize an additional $9.0 million 
     to continue AN/AWW-13 production. The House bill would also 
     provide an additional $4.0 million in PE 64215N for 
     integration of the ground proximity warning system (GPWS) 
     into the Navy/Marine Corps helicopters fleets.
       The conferees agree to authorize $130.4 million, which 
     includes an additional $6.0 million to continue AN/AWW-13 
     production and $4.0 million for GPWS integration. These 
     increases are offset by a $10.0 million reduction for late 
     obligations and a $1.2 million reduction for systems 
     engineering growth in other programs funded in this budget 
     line.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $1,136.3 million for Weapons Procurement, 
     Navy in the Department of Defense. The House bill would 
     authorize $1,214.7 million. The Senate amendment would 
     authorize $1,200.4 million. The conferees recommended an 
     authorization of $1,089.4 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H9260]]

     Tactical Tomahawk
       The Department of the Navy and the Department of Defense 
     advised the conferees of a proposal by the current prime 
     Tomahawk contractor to upgrade the capability and reduce the 
     production unit cost of the Tomahawk cruise missile. The 
     upgraded missile, a variant of the current Tomahawk (known as 
     ``Tactical Tomahawk'' or the ``Tomahawk Block IV+''), would 
     include several enhancements to improve the tactical 
     responsiveness of the missile. The Navy and the contractor 
     would attempt to reduce Tomahawk missile unit cost by 
     exploiting commercial manufacturing practices for the 
     missile. Overall, the Navy is projecting that the Department 
     could achieve life cycle cost savings for the Tactical 
     Tomahawk of approximately $400.0 million, compared to similar 
     costs for the currently planned Tomahawk Block IV missile 
     system. The conferees also understand that the initial 
     operational capability (IOC), fiscal year 2002, for the 
     improved Tomahawk would be approximately two years later than 
     the IOC for Tomahawk Block IV, fiscal year 2000.
       Under the Navy's proposal, the Department would use 
     approximately $25.0 million in additional fiscal year 1998 
     research and development and other procurement funding to 
     begin the effort. The conferees understand that the 
     Department wants to implement such a program as early as 
     possible in fiscal year 1998. In fact, the Navy had asked the 
     conferees for the authority to divert these funds from the 
     Weapons Procurement, Navy account by terminating the last 
     year of the multi-year contract for procurement of the 
     Tomahawk Block III missile.
       In general, the conferees support the concept of a program 
     to upgrade the capabilities of the Tomahawk missile and to 
     reduce the missile's unit cost. However, there are 
     acquisition strategy and funding issues that must be 
     addressed before the conferees would agree to such a 
     proposal. Such questions include whether: (1) this program 
     should be a sole source award to the current prime 
     contractor; (2) the Navy and whichever prime contractor may 
     be selected for such a program should evaluate subsystem 
     alternatives such as engines on a ``least cost'' or ``best 
     value'' basis; and (3) buying the last increment of missiles 
     on the current contract is less important than beginning a 
     new program earlier.
       If the Secretary of Defense decides that starting the 
     program in fiscal year 1998 is critical, the Secretary of 
     Defense may submit a reprogramming request to transfer fiscal 
     year 1998 funds that would be necessary to implement an 
     alternative approach for the Tomahawk program. The conferees 
     expect that such a request would include more detailed 
     supporting rationale upon which the recommendation is based 
     and would address the acquisition strategy and funding issues 
     involved.
     Joint Standoff Weapon
       The budget request included $58.7 million for 113 Joint 
     Standoff Weapon (JSOW) missiles for the Navy. No funds were 
     requested to procure JSOW missiles for the Air Force until 
     fiscal year 1999.
       The House bill would authorize an increase of $10.0 million 
     for the Navy to procure 37 additional missiles and an 
     increase of $29.0 million for the Air Force to initiate 
     procurement of 100 missiles.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million for the Navy to procure a total of up to 150 JSOW, 
     and an increase of $19.0 million for the Air Force to 
     initiate acquisition of up to 100 JSOW.
     Penguin missile program
       The budget request included no funds for procurement of 
     Penguin missiles.
       The House bill would approve the request.
       The Senate amendment would authorize an increase of $15.0 
     million for procurement of additional missiles to satisfy 
     outstanding inventory objectives and sustain procurement of 
     the Penguin missile during fiscal year 1998 to reduce costs 
     by achieving labor learning and production stability.
       The conferees agree to authorize an increase of $7.5 
     million for procurement of Penguin missiles.
     Hellfire II missiles
       The budget request included no funds for Hellfire missiles 
     for the Navy or Marine Corps.
       The House bill would authorize $37.5 million for 700 
     Hellfire II missiles to address a shortfall in Navy and 
     Marine Corps inventory requirements.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $20.0 million for 
     procurement of Hellfire II missiles for the Navy and Marine 
     Corps.
     Close-in weapon system surface mode upgrade
       The budget request included $10.0 million for procurement 
     of close-in weapon system (CIWS), but did not include any 
     funding to procure surface mode upgrade kits for this system.
       The House bill would authorize an increase of $20.0 million 
     to procure CIWS upgrade kits for both surface combatants and 
     other ships equipped with this system.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $15.0 
     million for procurement of CIWS surface-mode upgrade kits.
     Pioneer logistic support
       The budget request included $4.0 million for support of 
     Pioneer unmanned aerial vehicle (UAV).
       The Senate amendment would authorize an increase of $3.0 
     million to continue common automatic recovery system (CARS) 
     logistic support in the Procurement, Defense-Wide account.
       The House bill would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million for logistic support in the Weapons Procurement, Navy 
     Pioneer budget line item.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $5,817.8 million for Aircraft Procurement, 
     Air Force in the Department of Defense. The House bill would 
     authorize $6,770.9 million. The Senate amendment would 
     authorize $6,048.9 million. The conferees recommended an 
     authorization of $6,425.7 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H9264]]

     F-15E
        The budget request included $159.0 million to continue the 
     procurement of F-15E strike aircraft.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $100.8 
     million for procurement of an additional three F-15E 
     aircraft.
       The conferees agree to authorize an increase of $67.3 
     million to procure an additional two F-15E aircraft.
     C-130J
        The budget request included $49.9 million for the 
     procurement of one C-130J aircraft.
       The House bill would authorize an increase of $522.6 
     million for an additional nine aircraft.
       The Senate amendment would authorize an increase of $371.1 
     million for five additional aircraft and associated logistic 
     support.
       The conferees agree to authorize a total of $527.5 million 
     for eight additional C-130J aircraft and support as shown 
     below:

                                                                     C-130 PROGRAMS                                                                     
                                                                  [Dollars in millions]                                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Budget request          House bill            Senate bill      Conference agreement
                              Type                               ---------------------------------------------------------------------------------------
                                                                   Quantity    Amount    Quantity    Amount    Quantity    Amount    Quantity    Amount 
--------------------------------------------------------------------------------------------------------------------------------------------------------
KC-130J.........................................................  .........  .........         +3     +179.7  .........  .........         +2     +120.0
WC-130J.........................................................  .........  .........  .........  .........         +3     +177.0         +2     +132.8
EC-130J.........................................................  .........  .........         +1      +49.9         +1      +70.5         +1      +74.6
C-130J..........................................................          1       49.9         +5     +293.0         -1      -49.9         -1      -49.9
C-130J ANG......................................................  .........  .........  .........  .........         +2      +95.8         +4     +226.0
Logistics:                                                                                                                                              
    WC-130J.....................................................  .........  .........  .........  .........  .........      +29.7  .........  .........
    C-130J......................................................  .........  .........  .........  .........  .........      +48.0  .........      +24.0
                                                                 ---------------------------------------------------------------------------------------
      Total.....................................................          1       49.9         +9     +522.6         +5     +371.1         +8     +527.5
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Predator Unmanned Aerial Vehicle
        The budget request included $116.5 million for 15 Predator 
     unmanned aerial vehicles (UAV).
       The House bill would authorize an increase of $30.0 million 
     for the procurement of attrition UAV and spares.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $25.0 
     million.
     F-15 modifications
        The budget request included $169.6 million for F-15 
     modifications.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $95.4 
     million, including $72.6 million to restore a reduction in F-
     15 modifications made by the Air Force in its budget request, 
     and $22.8 million to accelerate by one year the incorporation 
     of the PW-220E engine program.
       The conferees agree to authorize $181.4 million: an 
     increase of $11.8 million, for F-15 modifications; a decrease 
     of $5.0 million for terminated upgrades; an increase of $12.8 
     million for the PW-220E engine program; and an increase of 
     $4.0 million for data link acceleration.
     F-16 modifications
        The budget request included $216.2 million for F-16 
     modifications.
       The House bill would authorize an increase of $20.0 million 
     for a digital terrain system (DTS).
       The Senate amendment would authorize an increase of $8.6 
     million to procure non-developmental item (NDI) systems that 
     incorporate in one pod the targeting and navigation functions 
     of the low-altitude navigation and targeting infrared for 
     night (LANTIRN) pods.
       The conferees agree to authorize $209.2 million for F-16 
     modifications, a decrease of $7.0 million from the budget 
     request. The $7.0 million reduction is the result of a 
     reduction of $13.0 million for global positioning system 
     (GPS), a reduction of $6.0 million for late obligations, 
     offset by an increase of $12.0 million for DTS.
     Passenger safety and global air traffic management
        Although the budget request included funds to modify some 
     Air Force aircraft to comply with global air traffic 
     management (GATM) requirements, there was no specific request 
     for either GATM or passenger safety modifications for Air 
     Force aircraft.
       The House bill would authorize an increase of $67.7 million 
     for GATM, but no increase for passenger safety modifications.
       The Senate amendment would authorize the budget request. 
     The Senate report (S. Rept. 105-29) included specific 
     direction to the Secretary of Defense to encourage the use of 
     commercial off-the-shelf (COTS) technology and non-
     developmental item (NDI) solutions to GATM requirements.
       The conferees agree to authorize an increase of $17.5 
     million for the modification of Air Force aircraft to comply 
     with GATM requirements, and $32.5 million for passenger 
     safety modifications, to include initiation of navigation 
     safety phase II modifications, the traffic collision 
     avoidance system (TCAS), and the ground proximity warning 
     system (GPWS), as directed by the Secretary of Defense. The 
     conferees expect the Air Force to include in the fiscal year 
     1999 budget request and the Future Years Defense Program 
     (FYDP) sufficient funding to complete these required 
     upgrades.
     Defense Airborne Reconnaissance Program
       Procurement for the Defense Airborne Reconnaissance Program 
     (DARP) is contained in a number of procurement lines, 
     distributed among the individual services and the defense-
     wide procurement account. The budget request included:
       (1) $67.1 million in Aircraft Procurement, Air Force (APAF) 
     line 60;
       (2) $141.5 million in APAF, line 73;
       (3) $12.8 million in Other Procurement, Air Force (OPAF), 
     line 111; and
       (4) $97.5 million in Procurement, Defense-wide (PDW), line 
     7.
       The conferees agree to authorize increases in DARP 
     procurement as shown below:

          DEFENSE AIRBORNE RECONNAISSANCE PROCUREMENT PROGRAMS          
                        [In millions of dollars]                        
------------------------------------------------------------------------
                                            Proposed change             
            Program              Budget  -------------------- Conference
                                 request    House    Senate    agreement
------------------------------------------------------------------------
Rivet Joint mods..............      61.1  ........  ........       61.1 
Rivet Joint technology                                                  
 transfer.....................  ........      20.0      20.0        5.6 
Combat Sent mods..............       6.0  ........  ........        6.0 
RC-135 re-engining............  ........      52.0  ........       27.4 
RJ Sensors and spares.........  ........  ........  ........       35.0 
SR-71 mods....................  ........  ........       9.0        9.0 
                               -----------------------------------------
      Subtotal--APAF 60.......      67.1      72.0      29.0      144.1 
                               =========================================
Budget Request................     141.5  ........  ........      141.5 
RC-135 re-engining............  ........  ........      54.8          0 
Senior Glass..................  ........  ........      13.0       24.0 
SYERS.........................  ........       5.0  ........        5.0 
                               -----------------------------------------
      Subtotal--APAF 73.......     141.5       5.0      67.8      170.5 
                               =========================================
DARP RC 135...................      12.8  ........  ........       12.8 
RJ Sensors and spares.........  ........      35.0  ........  ..........
                               -----------------------------------------
      Subtotal--OPAF 111......      12.8      35.0  ........       12.8 
                               =========================================
DARP..........................      97.4  ........  ........       97.4 
Common automatic recovery                                               
 system.......................  ........  ........       5.0  ..........
                               -----------------------------------------
      Subtotal--PDW 7.........      97.4  ........       5.0       97.4 
------------------------------------------------------------------------

     Theater airborne warning system
       The budget request included no funds for the Theater 
     Airborne Warning System (TAWS) program, which is designed to 
     equip the existing fleet of Rivet Joint aircraft with a 
     medium-wave infrared sensor for ballistic missile detection.
       The House bill and Senate amendment would authorize an 
     increase of $20.0 million for the TAWS program.
       The conferees agree to authorize an increase of $5.6 
     million for the demonstration phase of the TAWS program. If 
     this phase of the program proves to be successful, the 
     conferees would be supportive of moving into the procurement 
     phase in order to equip the Rivet Joint fleet with this 
     capability.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $404.0 million for Ammunition Procurement, 
     Air Force in the Department of Defense. The House bill would 
     authorize $437.0 million. The Senate amendment would 
     authorize $420.8 million. The conferees recommended an 
     authorization of $398.5 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice. 

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     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $2,557.7 million for Missile Procurement, 
     Air Force in the Department of Defense. The House bill would 
     authorize $2,389.2 million. The Senate amendment would 
     authorize $2,411.2 million. The conferees recommended an 
     authorization of $2,376.3 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H9270]]

     AGM-130 powered GBU-15
       The budget request included $1.5 million for AGM-130 
     management, administration, and contractor support.
       The House bill would authorize an increase of $41.0 million 
     for the procurement of 100 AGM-130 missiles.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $25.0 million, an increase 
     of $23.5 million for AGM-130.
     AGM-65 Maverick
       The budget request included no funds for AGM-65 
     modifications.
       The House bill would authorize $11.0 million for AGM-65 
     modifications.
       The Senate amendment would authorize the budget request.
       The conferees understand that early-generation models of 
     the AGM-65 require upgrading to further extend their 
     longevity. The conferees are aware that the gap between the 
     completion of testing and the beginning of production could 
     significantly increase the cost of the upgrade, as well as 
     unacceptably delay its fielding. Therefore, the conferees 
     agree to authorize an increase of $8.0 million to eliminate 
     any gap with low-rate production and to ensure a smooth 
     transition to full-rate production, which the conferees 
     assume will occur in fiscal year 1999.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $6,561.3 million for Other Procurement, Air 
     Force in the Department of Defense. The House bill would 
     authorize $6,574.1 million. The Senate amendment would 
     authorize $6,798.5 million. The conferees recommended an 
     authorization of $6,543.6 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Theater deployable communications
       The budget request included $17.0 million for the 
     procurement of tactical communications and electronics 
     equipment.
       The House bill would authorize an increase of $25.0 million 
     for theater deployable communications equipment as part of 
     its National Guard and Reserve Equipment package.
       The Senate amendment would authorize an increase $38.0 
     million for theater deployable communications equipment.
       The conferees agree to authorize an increase of $18.0 
     million for procurement of theater deployable communications 
     equipment.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $1,695.1 million for Defense-wide 
     Procurement in the Department of Defense. The House bill 
     would authorize $1,837.0 million. The Senate amendment would 
     authorize $1,749.3 million. The conferees recommended an 
     authorization of $2,057.2 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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[[Page H9280]]

     Automated document conversion system
       The budget request included no funds for the automated 
     document conversion system (ADCS).
       The House bill would authorize $30.0 million for ADCS.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $20.0 million for ADCS.
     Advanced SEAL delivery system
       The budget request included $43.2 million for the special 
     operations Advanced SEAL Delivery System program.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees agree to a total authorization of $8.9 
     million and the transfer of $34.3 million to PE 116404BB, as 
     discussed in Title II of this conference agreement.
     Night firing scopes
       The budget request included $10.3 million for special 
     operations small arms procurement.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $2.4 
     million for night vision scopes for the M4 carbine.
       The conferees agree to authorize an increase of $1.0 
     million for night vision scopes.
     Overview
       The budget request for fiscal year 1998 contained no 
     authorization for National Guard and Reserve Procurement in 
     the Department of Defense. The House bill would authorize 
     $700.4 million. The Senate amendment would authorize $653.0 
     million. The conferees recommended an authorization of $643.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.
     Overview
       The conferees recognize the increasingly critical role that 
     reserve component forces play in worldwide deployments and 
     are concerned about current and prior year levels of funding 
     for reserve component modernization. It is essential that 
     both active and reserve component leadership work together to 
     identify total force modernization requirements and ensure 
     that these requirements are funded. The conferees strongly 
     encourage the Department of Defense to work closely with each 
     of the military departments to ensure the modernization of 
     the reserve components.
       The budget request included $968.5 million, as shown in the 
     table below, for National Guard and Reserve equipment.


           National Guard and Reserve Equipment and Aircraft


                                                               Millions
Procurement of WTCV, Army.........................................$22.1
Procurement of Ammunition, Army...................................143.8
Other Procurement, Army...........................................382.9
Aircraft Procurement, Navy.........................................35.1
Procurement of Ammunition (Navy & Marine Corps).....................6.0
Other Procurement, Navy.............................................3.9
Procurement, Marine Corps..........................................17.9
Aircraft Procurement, Air Force...................................238.2
Procurement of Ammunition, Air Force...............................29.5
Other Procurement, Air Force.......................................89.2
                                                               ________
                                                               
    Department of Defense total...................................968.5

       The conferees agree to authorize funding increases for 
     reserve component programs as follows:

                                                               Millions
UH-60 Blackhawk...................................................$89.0
M109A6 Paladin.....................................................56.0
Field Artillery Ammunition Support Vehicles........................40.0
Heavy Equipment Transporter vehicles...............................45.0
Bradley Fighting Vehicle upgrades..................................95.0
Theater Deployable Communications..................................18.0
Airborne Mine Counter-Measure equipment.............................7.5
KC-135 re-engining.................................................52.0
F-16 Improved Avionics Intermediate Shop...........................16.0
C-130 aircraft....................................................433.4
                                                               ________
                                                               
Total increase....................................................851.9

       Additionally, the conferees agree to authorize an increase 
     of $365.0 million to the budget request for National Guard 
     and Reserve miscellaneous equipment:

                                                               Millions
Army Reserve
  Miscellaneous...................................................$75.0
Navy Reserve
  Miscellaneous....................................................80.0
Marine Corps Reserve
  Miscellaneous....................................................65.0
Air Force Reserve
  Miscellaneous....................................................50.0
Army National Guard
  Miscellaneous....................................................70.0
Air National Guard
  Miscellaneous....................................................25.0
                                                               ________
                                                               
    Total Miscellaneous equipment.................................365.0

       The conferees direct that the miscellaneous funding be 
     allocated exclusively by reserve component chiefs and that 
     reserve component chiefs give priority consideration to the 
     following items: medium truck extended service programs; 
     carrier modifications; CH-47 helicopters; multiple launch 
     rocket systems; Avenger air defense systems (including table 
     top trainers); training simulator devices; night vision 
     equipment; mobile backscatter truck inspection system; heavy 
     expanded mobility tactical truck (HEMTT) wrecker; HEMTT fuel 
     tanker conversion kit; all terrain crane (20 ton); Atlas 10K 
     variable reach forklift; barge derrick; reverse osmosis water 
     purification unit, 3 thousand gallons per hour; 5KW generator 
     set; MK-19 grenade machine gun; F/A-18 modifications; C-9 
     replacement aircraft; SH-60B Seahawk helicopter; mobile 
     inshore underwater van upgrades; logistics vehicle system 
     (LVS); MK 48 front power unit; LVS rear body units; F/A-18+ 
     modifications; CH-53E helicopters; F-16 situational awareness 
     data link; F-16 laser designator/targeting pods; A-10 
     situational awareness data link; A-10 electronic warfare 
     management system; F-16 upgraded data transfer unit; HH-60 
     helicopter self protection system; F-16 electronic warfare 
     management system; ALQ-131 multiplexer bus interface; C-130 
     integrated electronic warfare suite; enhanced flightline 
     security systems; combat arms training equipment; C-5 
     simulator; vibration management enhancement program; 5 ton 
     truck; maneuver control system; CH-47D full authority digital 
     engine control; small arms engagement skills trainers; CH-47D 
     fuel cells; M917 dump trucks; B-1 enhancements; F-16/A-10 
     digital transfer cartridge; and F-16 C/D onboard oxygen 
     generating system.
       Funding allocated by reserve component chiefs for 
     miscellaneous equipment must meet the following criteria:
       (1) there is a requirement for the equipment that has been 
     validated by the Joint Requirements Oversight Council;
       (2) that such equipment is included for reserve component 
     modernization in the future-years defense program;
       (3) that such equipment is consistent with the use of 
     reserve component forces called for in Department warplans; 
     and
       (4) the funds can be obligated during the fiscal year for 
     which funds have been authorized and appropriated.
       Overall, the conferees agree to authorize a total of $2.2 
     billion for National Guard and Reserve equipment and 
     aircraft.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $620.7 million for Chemical Agent and 
     Munitions Destruction, Army in the Department of Defense. The 
     House bill would authorize $610.7 million. The Senate 
     amendment would authorize $614.7 million. The conferees 
     recommended an authorization of $600.7 million. Unless noted 
     explicitly in the statement of managers, all changes are made 
     without prejudice.

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[[Page H9282]]

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Chemical agents and munitions destruction program (sec. 107)
       The budget request included $620.7 million for the defense 
     chemical agents and munitions destruction program, to 
     include: $472.2 million for operation and maintenance; $82.2 
     million for procurement; and $66.3 million for research and 
     development. Additionally, the budget request included $131.6 
     million for military construction.
       The House bill contained a provision (sec. 107) that would 
     authorize $610.7 million for the chemical agents and 
     munitions destruction program.
       The Senate amendment contained a provision (sec. 107) that 
     would authorize $614.7 million for the chemical agents and 
     munitions destruction program, including an increase of $4.0 
     million for research and development to expedite and 
     accelerate the development and fielding of critical advanced 
     sensors that are part of the Army's mobile munitions 
     assessment system.
       The Senate recedes with an amendment.
       The conferees agree to a provision (sec. 107) that would 
     authorize $600.7 million for the defense chemical agents and 
     munitions destruction program, to include: $72.2 million for 
     procurement; $462.2 million for operation and maintenance; 
     and $66.3 million for research and development. Of the amount 
     authorized for research and development, $4.0 million shall 
     be available to expedite and accelerate the development and 
     fielding of critical advanced sensors that are part of the 
     Army's mobile munitions assessment system.
     Conduct of the chemical agents and munitions destruction 
         program
       Section 152 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106), directed the Secretary 
     of Defense to conduct an assessment of the chemical stockpile 
     disposal program and to consider measures that could be taken 
     to reduce program costs, while continuing to ensure the 
     maximum protection of the public, the workers, and the 
     environment. Section 152 also required the Secretary to 
     report the results of the assessment to the Congress with the 
     submission of the fiscal year 1998 defense budget request. 
     Consideration of the use of alternative demilitarization 
     technologies (other than incineration) was to be specifically 
     addressed.
       The conferees support the Department of Defense (DOD) 
     position and the National Research Council recommendation 
     that the Army proceed with the current baseline incineration 
     program until the evaluation of alternative chemical 
     munitions destruction technologies is concluded. The 
     conferees note the progress made in chemical demilitarization 
     operations at Johnston Atoll and Tooele, Utah, the approval 
     of environmental permits, and the award of the chemical 
     demilitarization facility construction contract at Umatilla, 
     Oregon, and the status of the environmental permitting 
     process for the chemical demilitarization sites at Anniston, 
     Alabama, and Pine Bluff Arsenal, Arkansas.
       The conferees support the Department's decision to continue 
     efforts to develop chemical neutralization technologies for 
     destruction of the chemical agents at the bulk-only chemical 
     storage sites. The conferees urge the appropriate and 
     expeditious pursuit of any necessary National Environmental 
     Policy Act (NEPA) analysis of the research and development 
     efforts to support pilot testing of these alternative 
     technologies for use at Aberdeen Proving Ground, Maryland, 
     and Newport Chemical Depot, Indiana.
       The conferees also agree with plans by the Department to 
     assess the feasibility of alternative technologies for 
     destruction of lethal chemical agents associated with 
     assembled chemical munitions and would support the 
     demonstration of those alternatives deemed feasible for 
     potential use at the chemical demilitarization sites at 
     Pueblo, Colorado, and Lexington-Blue Grass Army Depot, 
     Kentucky. As required by Section 142 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201), 
     the conferees expect the Secretary of Defense to submit a 
     report to the Congress by December 31, 1997, that identifies 
     the status of the assessment, the technologies that appear to 
     be feasible, the plans for further assessment and 
     demonstration of these technologies, and the potential impact 
     on the cost and schedule for completion of destruction 
     operations at Pueblo and Lexington-Blue Grass.
       The conferees understand that a major aspect of the 
     chemical non-stockpile materiel project is the development of 
     a system for disposal of the chemical agent identification 
     kits, which have been classified as chemical weapons/agents 
     for the purpose of the chemical disposal program, rather than 
     hazardous waste. The conferees direct the Secretary of 
     Defense to conduct an assessment of its policy, which 
     includes chemical agent identification kits in the chemical 
     agent demilitarization program, the current plans for 
     disposal, and the potential changes in policy and disposal 
     alternatives that could result in significant reductions in 
     the cost of the non-stockpile program with no reduction in 
     overall program safety. The assessment shall be conducted in 
     coordination with the National Research Council. The results 
     of the assessment and the Secretary's decision should be 
     provided to the congressional defense committees by March 31, 
     1998.
     Chemical stockpile emergency preparedness program (CSEPP)
       The conferees note the actions taken by the DOD and the 
     Army to improve management of the chemical weapons 
     demilitarization program and to make the program more 
     responsive to community concerns. The conferees believe that 
     the Army and the DOD must continue to emphasize the 
     involvement of the communities with chemical stockpile 
     storage sites that are part of the program's decision-making 
     process. The conferees also note progress in improving 
     emergency preparedness planning and preparations by both 
     states and local communities near the chemical stockpile 
     storage sites, but believe that continued effort is required.
       Section 1076(a) of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201) directed the 
     Secretary of the Army to submit a report to the Congress that 
     would assess the successful implementation of site specific 
     integrated product and process teams (IPT) as a management 
     tool for the chemical stockpile emergency preparedness 
     program (CSEPP). On July 9, 1997, the Secretary of Defense 
     advised the Congress that the Army and the Federal Emergency 
     Management Agency (FEMA) had reached an agreement on the 
     implementation and establishment of the site-specific IPTs, 
     and advised the Congress of changes in the management of the 
     CSEPP. The conferees understand that under the terms of the 
     agreement between the Army and FEMA, the State and local 
     community governments would be given the flexibility they 
     need to implement the emergency preparedness program. Under 
     the agreement, funding for, and the conduct of on-post 
     emergency preparedness and technical support for on-post and 
     off-post emergency preparedness will remain the 
     responsibility of the Army. FEMA will assume responsibility 
     and accountability for working with State and local 
     governments to enhance the required off-site emergency 
     preparedness capabilities within established resources. The 
     conferees are aware that the Director of FEMA intends to 
     empower the FEMA regional offices with the primary 
     responsibility and accountability for working with the State 
     and local communities, and to restructure FEMA headquarters 
     operations to create a more efficient and cost-effective 
     management structure.
       The conferees understand that the Army and FEMA believe 
     that legislative authority is necessary to codify the 
     agreement between the Army and FEMA. The conferees note that 
     FEMA already possesses considerable authority for off-site 
     emergency preparedness under existing law and that the fiscal 
     year 1998 budget contained no formal proposal to establish a 
     separate defense-related activities program account for FEMA. 
     The conferees direct the Secretary of Defense to submit any 
     proposed legislative changes and the budget for the CSEPP in 
     the fiscal year 1999 DOD budget request. The congressional 
     defense committees will review any proposed legislation and 
     the budget request for CSEPP during consideration of the 
     fiscal year 1999 budget request, as well as progress made in 
     emergency preparedness, the implementation of the site-
     specific IPT, and the working relationships among Federal, 
     State, and local authorities involved in the CSEPP.

                       Subtitle B--Army Programs

     Army helicopter modernization plan (sec. 111)
       The Senate amendment contained a provision (sec. 111) that 
     would require the Army to provide a plan to the Congress that 
     would address current and future helicopter modernization 
     requirements and proposed funding. Specifically, the 
     provision would require the Army to report on the following:
       (1) A detailed assessment of the Army's present and future 
     helicopter inventory, including number of aircraft, age of 
     aircraft, availability of spare parts, flight hour costs, 
     roles and functions assigned to the fleet as a whole and to 
     its individual types of aircraft, and the mix of active 
     component and reserve component aircraft in the fleet;
       (2) Estimates and analysis of requirements and funding 
     proposed for procurement of new aircraft;
       (3) An analysis of requirements and funding proposed for 
     extended service plans or service life extension plans for 
     fleet aircraft;
       (4) A plan for retiring aircraft no longer required or 
     capable of performing assigned functions, including a 
     discussion of opportunities to eliminate older aircraft 
     models and to focus future funding on current or future 
     generation aircraft;
       (5) The implications of the plan for the defense industrial 
     base;
       The provision would require the Secretary of the Army to 
     certify that the plan would be funded in the Future Years 
     Defense Program submitted to Congress in Fiscal Year 1998 and 
     would limit the obligation of funds to no more than 25 
     percent of the amounts authorized to be appropriated for 
     helicopter modifications or upgrades until 30 days after the 
     aircraft modernization plan is provided to the congressional 
     defense committees.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     obligation of funds to 80 percent of funds authorized for 
     helicopter modifications and would require the Secretary of 
     the Army to design the plan so that it could be funded within 
     the funding levels expected to be available for Army aircraft 
     programs in the next Future Years Defense Program.
     Multiyear procurement authority for specified Army programs 
         (sec. 112)
       The Senate amendment contained a provision (sec. 112) that 
     would authorize the Secretary of the Army to enter into a 
     multiyear

[[Page H9283]]

     procurement contract, beginning with fiscal year 1998, for 
     the procurement of the AH-64D fire control radar system. The 
     Senate amendment contained an additional provision (sec. 113) 
     that would authorize the Secretary of the Army to enter into 
     a multiyear procurement contract, beginning with fiscal year 
     1998, for the procurement of trucks associated with the 
     family of medium tactical wheeled vehicles.
       The House bill contained no similar provisions.
       The House recedes.
     M113 vehicle modifications (sec. 113)
       The conferees agree to a legislative provision (sec. 113) 
     that would make available $35.2 million only for procurement 
     and installation of A3 upgrade kits for the M113 vehicle.

                       Subtitle C--Navy Programs

     New Attack Submarine program (sec. 121)
       The budget request included $284.8 million for advance 
     procurement of components for future nuclear attack 
     submarines, and proposed a change in the acquisition strategy 
     contained in the National Defense Authorization Act for 
     Fiscal Year 1997 that directed competition between two 
     submarine shipbuilders. The proposed change in strategy 
     includes a contractor teaming agreement to build the first 
     four new attack submarines.
       The House bill authorized the budget request and contained 
     no provision on submarine teaming.
       The Senate amendment contained a provision (sec. 121) that 
     would authorize the Secretary of the Navy to enter into a 
     contract or contracts for the construction of four nuclear 
     attack submarines under the terms of a teaming arrangement 
     between Electric Boat and Newport News Shipbuilding.
       The House recedes.
     CVN-77 nuclear aircraft carrier program (sec. 122)
       The budget request included no funding for CVN-77.
       The House bill would authorize the budget request.
       The Senate amendment contained a provision (sec. 122) that 
     would:
       (1) authorize $345.0 million for procurement and 
     construction of components for the CVN-77 aircraft carrier 
     and authorize the Secretary of the Navy to enter into a 
     contract or contracts with the carrier shipbuilder for such 
     purposes;
       (2) authorize $35.0 million for research, development, 
     test, and evaluation of technologies that have potential for 
     use in the CVN-77; and
       (3) direct the Secretary to structure the procurement of 
     the CVN-77 so that the carrier is acquired for an amount not 
     to exceed $4.6 billion, with allowances for adjustments to 
     this amount due to:
       (a) outfitting and post delivery costs,
       (b) inflation occurring after or compliance with changes in 
     Federal, state, or local laws enacted after September 30, 
     1997,
       (c) increases or decreases in costs attributable to new 
     technology built into CVN-77 as compared to the technology 
     built into the baseline design of the CVN-76, and
       (d) increases or decreases in costs resulting from changes 
     the Secretary proposes in the funding plan of the so-called 
     Smart Buy proposal on which the projected savings are based.
       The House recedes with an amendment which would:
       (1) authorize the Secretary of the Navy to procure the CVN-
     77 subject to the availability of appropriations for that 
     purpose;
       (2) authorize $50.0 million for advance procurement and 
     advance construction of components for the CVN-77 and 
     authorize the Secretary of the Navy to enter into a contract 
     or contracts for such purposes;
       (3) permit the Secretary of Defense to transfer up to 
     $295.0 million to the CVN-77 program and allow this transfer 
     to be made in addition to the transfer authority limit 
     provided for elsewhere in the National Defense Authorization 
     Act for Fiscal Year 1998;
       (4) direct the Secretary of the Navy to obligate and expend 
     the funds available for advance procurement and advance 
     construction of carrier components for the CVN-77 in fiscal 
     year 1998 in a manner that is designed to result in cost 
     savings that will meet a cost limitation of $4.6 billion for 
     the procurement of that vessel;
       (5) direct the Secretary of Defense to make plans to attain 
     the cost savings in the funding plan presented to Congress by 
     the ship builder in March 1997; and
       (6) direct the Secretary of the Navy to structure and 
     manage the CVN-77 procurement program so that the $4.6 
     billion cost limitation is not exceeded, except for 
     adjustments to this amount resulting from:
       (a) outfitting and post delivery costs,
       (b) inflation occurring after or compliance with changes in 
     Federal, state, or local laws enacted after September 30, 
     1997,
       (c) increases or decreases in costs attributable to new 
     technology built into CVN-77 as compared to the technology 
     built into the baseline design of the CVN-76, and
       (d) increases or decreases in costs resulting from changes 
     the Secretary proposes in the funding plan on which the 
     projected savings are based.
       The conferees support construction of the CVN-77 and 
     believe that initiating advance procurement for it in fiscal 
     year 1998, rather than in fiscal year 2000 as currently 
     projected in the Future Years Defense Program (FYDP), has the 
     potential to produce considerable savings if additional funds 
     are provided in fiscal years 1998 through 2001. Therefore, 
     the conferees strongly encourage the Secretary of Defense to 
     make available up to $295.0 million in fiscal year 1998 and 
     to include in the FYDP accompanying the fiscal year 1999 
     budget request the funding necessary to achieve the savings 
     required to remain within the $4.6 billion cost limitation.
     Exclusion from cost limitation for Seawolf submarine program 
         (sec. 123)
       The Senate amendment contained a provision (sec. 123) that 
     would reaffirm the existing cost cap for Seawolf submarines 
     but would make it clear that certain costs associated with 
     now canceled Seawolf submarines should not be taken into 
     account.
       The House bill contained no similar provision.
       The House recedes with an amendment that would exclude from 
     the cost limitation for the Seawolf submarine program $272.4 
     million initial class design costs that were previously 
     allocated to other canceled ships in the class. The amendment 
     would also require the Inspector General of the Department of 
     Defense to determine whether:
       (1) the request of the Secretary of the Navy for exclusion 
     of $745.4 million of the costs associated with canceled 
     submarines is justified; and
       (2) any further exclusions from or increases to the cost 
     cap will be required.
       The Inspector General shall report the findings to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives not 
     later than March 30, 1998.

                     Subtitle D--Air Force Programs

     Authorization for B-2 bomber program (sec. 131)
       The budget request included $174.1 million for modification 
     of aircraft on order or already in the inventory to the Block 
     30 configuration.
       The House bill would authorize an increase of $331.2 
     million for long lead funding for an additional nine aircraft 
     above the 21 already authorized.
       The Senate amendment would authorize the budget request and 
     included a provision (sec. 131) that would prohibit the use 
     of any funds to procure any additional B-2 bomber aircraft or 
     to maintain any part of bomber industrial base solely for the 
     purpose of preserving the option to procure additional B-2 
     bomber aircraft in the future.
       The Senate recedes with an amendment.
       The conferees agree to authorize $331.2 million to be used 
     either for long lead activities related to the procurement of 
     additional B-2 aircraft, or for modification and repair of 
     the existing fleet of B-2 bomber aircraft, depending on the 
     President's determination of the requirement for additional 
     B-2 aircraft.
       The provision would also direct the Secretary of Defense to 
     ensure that all appropriate actions are taken to preserve the 
     options of the President until submission of the report 
     required by section 8131 of the Department of Defense 
     Appropriations Act for fiscal year 1998.
     ALR radar warning receivers (sec. 132)
       The Senate amendment contained a provision (sec. 132) that 
     would require a study of the comparative effectiveness of 
     upgrading the ALR-69 radar warning receiver and further 
     acquisition of the ALR-56M radar warning receiver.
       The House bill contained no similar provision.
       The House recedes.
     Analysis of requirements for replacement of engines on 
         military aircraft derived from Boeing 707 aircraft (sec. 
         133)
       The Senate amendment contained a provision (sec. 142) that 
     would require a study of re-engining priorities, options, and 
     benefits for military aircraft derived from Boeing 707 type 
     aircraft.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     requirements for the study.

                       Subtitle E--Other Matters

     Pilot program on sales of manufactured articles and services 
         of certain army industrial facilities without regard to 
         availability from domestic sources (sec. 141)
       The Senate amendment contained a provision (sec. 143) that 
     would authorize Army industrial facilities to sell articles 
     or services to an entity that will incorporate those articles 
     or services into a weapon system to be procured by the 
     Department of Defense or will use those articles or services 
     to manufacture weapon systems that will be ultimately 
     procured by the Department of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize a 
     two-year pilot program for not more than three facilities and 
     require a review by the Inspector General of the Department 
     of Defense.
     NATO Joint Surveillance/Target Attack Radar System (sec. 142)
       The Senate amendment contained a provision (sec. 144) that 
     would allow the Secretary of Defense to initiate contracts 
     for Phase I of a NATO Alliance Ground Surveillance (NATO AGS) 
     capability based on the Joint Surveillance/Target Attack 
     Radar System (JSTARS) following the conclusion of a 
     cooperative project agreement for a NATO AGS. The Senate 
     amendment would also authorize the transfer of funds from 
     U.S. JSTARS to the NATO AGS program, and

[[Page H9284]]

     would allow for the modification of two Air Force JSTARS 
     aircraft into a NATO configuration.
       The House bill contained no similar provision.
       The House recedes.

                   Legislative Provisions Not Adopted

     Limitation on obligation of funds for the Seawolf submarine 
         program
       The House bill contained a provision (sec. 121) that would 
     prohibit the obligation of more than 50 percent of the fiscal 
     year 1998 funds authorized and appropriated for the Seawolf 
     submarine until the Secretary of the Navy certifies that not 
     less than 50 percent of the New Attack Submarine technology 
     insertion opportunities for the first four submarines were 
     included in the Future Years Defense Program accompanying the 
     fiscal year 1999 budget request.
       The Senate amendment contained no similar provision.
       Having received written assurance from the Secretary that 
     the fiscal year 1999 budget request will comply with the 
     provision in the House bill, the House recedes.
     Reduction in authorization of appropriations
       The Senate amendment contained a provision (sec. 110) that 
     would reduce funds available to the Department of Defense for 
     Advisory and Assistance Services by $30.0 million.
       The House bill contained no similar provision.
       The Senate recedes.
     Airborne self-protection jammer
       The Senate amendment contained a provision (sec. 124) that 
     would place a limitation on the resumption of serial 
     production of the Airborne Self-Protection Jammer, pending a 
     certification by the Secretary of Defense.
       The House bill contained no similar provision.
       The Senate recedes.
     Prohibition on use of funds for acquisition or alteration of 
         private drydocks
       The Senate amendment contained a provision (sec. 141) that 
     would prevent the use of DOD funds for the expansion of 
     private drydocks.
       The House bill contained no similar provision.
       The Senate recedes.

         Title II--Research, Development, Test, and Evaluation

     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $35,934.5 million for Research and 
     Development in the Department of Defense. The House bill 
     would authorize $37,273.7 million. the Senate amendment would 
     authorize $36,957.0 million. The conferees recommended an 
     authorization of $36,537.0 million. Unless noted explicitly 
     in the statement of managers, all changes are made without 
     prejudice.

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     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $4,510.8 million for Army, Research and 
     Development in the Department of Defense. The House bill 
     would authorize $4,752.9 million. The Senate amendment would 
     authorize $4,745.5 million. The conferees recommended an 
     authorization of $4,633.5 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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                          FUNDING EXPLANATIONS

     University and industry research centers
       The budget request included $45.5 million in PE 61104A for 
     university and industry research centers.
       The House bill would authorize an increase of $1.9 million 
     in PE 61104A for electromechanics and hypervelocity physics.
       The Senate amendment would authorize an increase of $2.3 
     million in PE 61104A for the Army federated laboratory 
     advanced telecommunications and information distribution 
     research program (ATIRP).
       The conferees agree to authorize an increase of $1.0 
     million for electromechanics and hypervelocity physics. The 
     conferees also agree to authorize $2.3 million of the 
     remaining funds for the establishment of the ATIRP.
     Combat vehicle and automotive advanced technology
       The budget request included $33.1 million for Combat 
     Vehicle and Automotive Advanced Technology (PE 62601A).
       The House bill authorized an increase of $11.0 million for 
     a variety of innovative research projects.
       The Senate amendment would authorize an increase of $4.0 
     million for the National Automotive Center to fund 
     cooperative contracts using matching funds (PE 62601A).
       The conferees agree to authorize $40.612 million in PE 
     62601A, an increase of $7.5 million: $4.0 million for 
     continued funding of cooperative and dual-use contracts to 
     integrate commercial automotive technology into Army 
     vehicles; $1.0 million for completion of the High Output 
     Diesel Engine (HODE) project; and $2.5 million for new 
     alternative vehicle propulsion efforts with industry and 
     academia, including, but not limited to, innovation or 
     improvements related to diesel, internal combustion, fuel 
     cell, and electric propulsion technologies.
       The conferees commend the National Automotive Center for 
     its efforts to improve the automotive technology available in 
     Army ground vehicle systems while reducing the operating and 
     support costs, particularly through the use of affordable 
     commercial technology, competitive procedures, and matching 
     funds from industry.
     Plastic cased ammunition
       The budget request included $18.2 million in PE 63004A for 
     weapons and munitions advanced technology.
       The House bill would authorize an increase of $8.0 million 
     in PE 63004A: $5.0 million for electro-rheological fluids 
     recoil for future artillery systems; and $3.0 million for 
     plastic cased ammunition.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million for plastic cased ammunition research in PE 62624A. 
     The conferees also agree to authorize a reduction of $1.1 
     million, without prejudice, in PE 62624A.
     Electronics and electronic devices
       The budget request included $20.2 million in PE 62705A for 
     research and development in electronics and electronic 
     devices.
       The House bill would authorize an increase of $5.0 million 
     for field battery recharging capability (thermophotovoltaic) 
     research and $3.0 million for battery manufacturing 
     technology.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase: $1.5 million 
     for field battery recharging capability (thermophotovoltaic) 
     research; and $1.5 million for manufacturing technology 
     research associated with AA zinc batteries for military 
     applications.
     Bioremediation, education, science, and technology program
       The budget request included $17.5 million for environmental 
     quality technology within PE 62720A. The budget request 
     included no funds in that program element for the 
     bioremediation, education, science, and technology program 
     (BEST), which supports multidisciplinary research and 
     education in bioremediation science.
       The House bill would authorize an additional $4.0 million 
     in PE 62720A for the BEST program.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
       The conferees expect that the use of additional funds for 
     BEST will provide a direct benefit to the Department of 
     Defense efforts in the area of bioremediation.
     Plasma energy pyrolysis system
       The budget request included $17.5 million for environmental 
     technology in PE 62720A. No funding was specifically 
     identified for the Plasma Energy Pyrolysis System (PEPS) 
     technology.
       The House bill and Senate amendment would authorize $8.7 
     million for PEPS technology.
       The conferees agree to an increase of $6.0 million in PE 
     62720A for the ongoing joint effort between the U.S. Army 
     Environmental Center/Environmental Technology Division and 
     the Tennessee Valley Authority/Muscle Shoals Environmental 
     Research Center to develop, demonstrate, and validate the 
     PEPS technology.
       The purpose of PEPS is to develop plasma technology as a 
     method of producing heat for the breakdown of waste 
     materials. The Muscle Shoals Environmental Research Center 
     provides a level of technical expertise that stems from forty 
     years of experience in working with electric arc furnaces, a 
     thermal process similar to PEPS. For that reason, the 
     participation of the Muscle Shoals Environmental Research 
     Center is a necessary element of PEPS. However, the conferees 
     direct that no more than 15 percent of the PEPS funds be made 
     available for the participation of the Muscle Shoals 
     Environmental Research Center.
       The goals of the PEPS program are to evaluate the 
     capability of plasma technology for the destruction of 
     hazardous components, verify slag suitability for regular 
     landfill disposal, identify potential hazards associated with 
     the process emissions, and develop qualified cost estimates 
     for the future use of the process on large scale operations. 
     The conferees direct the Secretary of the Army to report to 
     the congressional defense committees on the progress made in 
     meeting these goals with fiscal year 1998 funds.
     Radford Environmental Development and Management Program
       The budget request included $17.5 million for environmental 
     quality technology within PE 62720A. No funding was 
     specifically identified to support the development of an 
     integrated environmental and pollution prevention management 
     and control system through the Radford Environmental 
     Development and Management Program (REDMAP).
       The House bill would direct the Secretary of the Army to 
     ensure adequate support for the REDMAP initiative within 
     funds authorized for environmental quality technology.
       The Senate amendment would authorize an increase of $5.0 
     million in PE 62720A to support REDMAP.
       The conferees agree to authorize an increase of $5.0 
     million in PE 62720A for REDMAP. The conferees note that some 
     of the basic research necessary for REDMAP has already been 
     accomplished through the Facility Environmental Management 
     and Monitoring System (FEMMS) at Tobyhanna Army Depot, 
     Pennsylvania. The conferees expect that REDMAP will use 
     relevant information developed through FEMMS.
     Military engineering technology
       The budget request included $36.4 million in PE 62784A for 
     military engineering technology.
       The Senate amendment would authorize an increase of $5.0 
     million in PE 62784A: $1.0 million to enhance research in 
     combat support, combat engineering, and base facility 
     construction, operations, and maintenance at locations 
     subject to cold weather; and $4.0 million for energy 
     efficient military applications.
       The House bill would authorize the budget request.
       The conferees agree to an increase of $1.0 million in PE 
     62784A for cold weather research. The conferees also agree to 
     an increase of $4.0 million in PE 65856A for fuel cell 
     military applications as mentioned elsewhere in the report.
     Medical advanced technology
       The budget request included $10.6 million in PE 63002A for 
     medical advanced technology.
       The House bill would authorize an increase of $5.8 million 
     in PE 63002A: $3.5 million for virtual reality emergency 
     medical telemedicine (VREMT); and $2.3 million for 
     telemedicine technology.
       The Senate amendment would authorize an increase of $4.6 
     million in PE 63002A: $1.0 million for intravenous membrane 
     oxygenator; and $3.6 million for Meals Ready-to-Eat nutrition 
     research.
       The conferees agree to authorize an increase of $2.5 
     million for VREMT. The conferees also agree to authorize an 
     increase of $3.5 million for nutrition research in PE 62787A.
     Combat vehicle and automotive advanced technology
       The budget request included $32.7 million to develop combat 
     vehicle and automotive technologies.
       The House bill would authorize an increase of $3.0 million 
     to support development of advanced composite materiel and 
     electric drive technology.
       The Senate amendment would authorize an increase of $9.0 
     million to further explore aluminum metal matrix 
     technologies.
       The conferees agree to authorize a total of $38.7 million 
     in PE 63005A. Of this amount, $2.0 million is for advanced 
     composite materiel development and $6.5 million is for 
     aluminum metal matrix technologies.
     Information systems technology, superiority, and security
       The budget request included $544.4 million for information 
     systems and information technology research, development, 
     test, and evaluation. Of that amount, $306.0 million was for 
     information security research, development, test, and 
     evaluation.
       The House bill would authorize the following increases to 
     the budget request:
       (1) $2.0 million in PE 63006A for tactical internet command 
     and control protection;
       (2) $6.7 million in PE 65604A for information operations/
     warfare survivability analysis of command, control, 
     communications, and computers/information electronic warfare 
     systems;
       (3) $1.6 million in PE 33150A for development and 
     application of information protection measures for the Army's 
     component of the global command and control systems for the 
     U.S. European Command; and
       (4) $2.7 million in PE 33140F for the Air Force information 
     protection program.

[[Page H9298]]

       The House report (H. Rept. 105-132) would also direct the 
     Secretary of Defense to provide to the congressional defense 
     committees, with the submission of the fiscal year 1999 
     budget request, an assessment of the progress in the 
     Department's information systems security program that 
     addresses the current status of the program, specific actions 
     being taken on the recommendations of the 1996 Defense 
     Science Board Task Force on Information Warfare-Defense, and 
     additional actions that should be taken to assure the 
     increased security and integrity of the Defense information 
     infrastructure. The House report would also require the 
     Secretary to address measures necessary to assure the 
     integrity of those elements of the National Information 
     Infrastructure on which the Defense Information 
     Infrastructure depends, and to identify any additional 
     resources and legislative authority which might be required.
       The Senate amendment would authorize the budget request. 
     The House recedes from its recommendation for additional 
     funding. The conferees, however, share the views expressed in 
     the House report regarding the need to treat information 
     technology as a vital strategic resource, and the need to 
     address the potential vulnerabilities of the information 
     infrastructure. The conferees direct the Secretary of Defense 
     to submit to the congressional defense committees the 
     assessment of the Department's information systems security 
     program as discussed in the House report.
     Missile and rocket advanced technology
       The budget request included $117.1 million to develop 
     missile technologies.
       The House bill would authorize a decrease of $57.7 million 
     for the enhanced fiber-optic guided missile (EFOG-M) program.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $31.4 million to continue 
     development of EFOG-M technologies and complete the advanced 
     concept technology demonstration (ACTD) planned for fiscal 
     year 1998. The conferees further direct that funds provided 
     for the ACTD be used exclusively for that activity and not 
     for procurement of additional missiles beyond those required 
     for the evaluation. The conferees also agree to authorize an 
     additional $3.0 million for the future missile technology 
     insertion program for a total authorization of $93.8 million 
     for PE 63313A.
     Landmine warfare and barrier advanced technology
       The budget request included $19.3 million to develop 
     landmine detection technologies.
       The House bill would authorize an additional $5.0 million 
     for countermine technologies.
       The Senate amendment would authorize an additional $6.6 
     million to support development and testing of vehicular 
     mounted mine detector technologies.
       The conferees agree to authorize $27.0 million in PE 
     63606A, an increase of $2.7 million for the vehicular mounted 
     mine detection system and an additional $5.0 million for 
     countermine technology development.
     Joint service small arms program
       The budget request included $4.8 million to conduct joint 
     development of future small arms requirements.
       The House bill would authorize an increase of $7.0 million 
     to support development of the objective individual combat 
     weapon (OICW) and advanced light anti-armor weapon system 
     (ALAWS) technology.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $4.5 
     million in PE 63607A. Of this amount, $3.0 million is for 
     OICW and $1.5 million is for ALAWS technology.
     Armament enhancement initiative
       The budget request included $40.3 million to develop future 
     generation main battle tank armaments.
       The House bill would authorize an additional $20.0 million 
     for accelerated development of the tank extended range 
     munition-kinetic energy (TERM-KE).
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a total of $38.3 million 
     for the Armament Enhancement Initiative (PE 63639A). The 
     conferees note an Army decision to terminate the Smart Target 
     Activated Fire and Forget (STAFF) munition and pursue further 
     development of the Tank Extended Range Munition-Kinetic 
     Energy (TERM-KE). The conferees, therefore, agree to 
     authorize a decrease of $17.0 million for STAFF and an 
     increase of $15.0 million for TERM-KE.
     Aviation-advanced development
       The budget request included $7.1 million to develop 
     aviation technologies.
       The House bill would authorize an additional $5.0 million 
     for development of retinal display technologies.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $12.1 million in PE 
     63801A.
     All source analysis system
       The budget request included $24.0 million to continue 
     development of the All Source Analysis System (ASAS).
       The House bill would authorize an increase of $3.5 million 
     for software upgrades.
       The Senate amendment would authorize an increase of $3.2 
     million to expand advanced fusion technology efforts.
       The House recedes.
     Light tactical wheeled vehicles
       The budget request included $9.9 million to develop light 
     tactical wheeled vehicle technologies.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $9.9 million 
     in PE 64642A and direct the Army to report on future light 
     tactical wheeled vehicle requirements. The conferees note the 
     Army has failed to provide a clear and definitized plan that 
     addresses future light tactical vehicle requirements and are 
     unsure about the future direction of Army wheeled vehicle 
     programs.
     Engineer mobility equipment development program
       The budget request included $56.2 million to support 
     improvements to engineer mobility equipment (PE 64649A).
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees agree to a total authorization of $52.2 
     million in PE 64649A, a decrease of $4.0 million. The 
     conferees note that the engineer mobility equipment 
     development program has suffered from late obligation and 
     system management problems.
     Automatic test equipment
       The budget request included $2.6 million to develop 
     automatic test equipment technologies.
       The House bill would authorize an increase of $2.3 million 
     for Integrated Family of Test Equipment (IFTE) technology 
     development.
       The Senate amendment authorized the budget request.
       The Senate recedes.
     Tactical exploitation of national capabilities
       The budget request included $107.2 million for the various 
     Tactical Exploitation of National Capabilities (TENCAP) and 
     related research and development projects within the military 
     services' Tactical Intelligence and Related Activities 
     aggregation and the Joint Military Intelligence Program.
       The House bill would authorize a decrease in these 
     individual accounts by approximately 10 percent.
       The Senate amendment would authorize the budget request.
       The House recedes.
       The conferees agree that the tactical 
     ``operationalization'' of space has become relatively 
     commonplace within military doctrine, planning, and 
     execution, and that specialized TENCAP projects to inform, 
     educate, and provide improved space-related capabilities 
     should be reviewed for possible reduction or reorientation. 
     While the conferees fully support the TENCAP program, they 
     believe there may be a need to begin to reduce and phase out 
     the specialized projects to exploit space and national 
     capabilities. Such exploitation should be the focus of new 
     programs from the outset of their development.
       Therefore, the conferees direct the Secretary of Defense to 
     submit a report to the congressional defense and intelligence 
     committees by March 15, 1998, describing the Secretary's 
     assessment of the continuing utility of the TENCAP program, 
     and recommendations for evolving or phasing out the existing 
     TENCAP program.
     Combined arms tactical trainer
       The budget request included $2.8 million to develop 
     combined arms tactical trainer (CATT) technologies.
       The House bill would authorize the budget request.
       The Senate amendment would authorize the transfer of 
     $11.5 million from procurement to PE 64780A to resolve 
     software problems associated with these trainers.
       The conferees agree to authorize $13.3 million in PE 
     64780A.
     Landmine warfare/barrier-engineering development
       The budget request included $22.6 million to develop 
     minefield detection technologies.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $13.9 
     million in PE 64808A for development work associated with the 
     airborne standoff minefield detection system (ASTAMIDS) as 
     technical difficulties with this technology have been 
     identified and the system is not ready to enter engineering 
     and manufacturing development (EMD).
     Sense and destroy armament missile-engineering development
       The budget request included $22.4 million to continue 
     development of the sense and destroy armament missile 
     (SADARM).
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $10.9 
     million for the SADARM program. The conferees note the 
     program has suffered from technical difficulties associated 
     with development of the baseline munition. The conferees 
     support the SADARM program but believe the baseline system 
     testing scheduled for calendar year 1998 should be completed 
     prior to funding preplanned product improvement work.
     Fuel cells
       The budget request included no funding for fuel cell 
     technology.
       The House bill would authorize an increase of $1.8 million 
     in PE 63712N to establish a cooperative research and 
     development effort for a cost-shared demonstration of proton 
     exchange membrane fuel cell technology and an increase of 
     $3.5 million in PE 63513N to continue the program for design 
     of a full scale ships service molten carbonate fuel cell

[[Page H9299]]

     power plant and demonstration of a 500 kilowatt molten 
     carbonate fuel cell.
       The Senate amendment would authorize an increase of $1.75 
     million in PE 63712N to establish a cooperative research and 
     development effort between the Naval Surface Warfare Center 
     (NSWC) in Crane, Indiana and private industry. The Senate 
     amendment also provided for an increase of $4.0 million in PE 
     62784A for additional technology development of energy 
     efficient military applications between the U.S. Army Corps 
     of Engineers, Construction Engineering Research Laboratories 
     and private industry. In each instance, the Senate amendment 
     directed participants from the private sector to contribute 
     an amount of funding that is equivalent to the Federal 
     funding level.
       The conferees agree to authorize an increase of $1.75 
     million in PE 63712N, as discussed in the House report (H. 
     Rept. 105-132) and the Senate report (S. Rept. 105-29), an 
     increase of $3.5 million in PE 63513N for continuation of 
     molten carbonate fuel cell development, as discussed in the 
     House report, and an increase of $4.0 million in PE 65856A 
     for additional technology development of energy efficient 
     military applications, as discussed in the Senate report.
       The conferees note that over the course of several budget 
     cycles there have been numerous funding adds for development 
     and utilization of fuel cell technology. The conferees 
     believe that there is an absence of a clearly defined 
     strategy and implementation program for the development and 
     application of advanced fuel cell technology and other energy 
     efficient applications for the Department of Defense (DOD). 
     The conferees direct the Secretary of Defense to develop a 
     strategy to address a broader spectrum of interests and 
     applications of fuel cell technology within the military 
     departments. The conferees expect that the strategy will 
     include private sector contribution in an amount that is, at 
     a minimum, equal to the Federal funding level for the 
     continuation and development of fuel cell technology.
       The conferees are also aware that the Department of Energy 
     (DOE) has been involved in the development and application of 
     advanced fuel cell technology. The conferees direct the 
     Secretary of Defense to work with the Secretary of Energy in 
     the development of a common strategy to avoid duplication of 
     effort between the two departments.
       The conferees direct the Secretary of Defense to report to 
     the congressional defense committees by March 31, 1998 on the 
     overall science and technology strategy for the development 
     and application of advanced fuel cell technology and other 
     energy efficient applications by the defense agencies and 
     military departments. Moreover, the report should explain the 
     common strategy developed by the Secretaries of Defense and 
     Energy in this area.
     Combat vehicle improvement program
       The budget request included $136.5 million to develop 
     combat vehicle improvements to existing systems.
       The House bill would authorize an increase of $20.1 million 
     for combat vehicle improvement purposes.
       The Senate amendment would authorize an increase of $20.0 
     million for combat vehicle improvement purposes.
       The conferees agree to authorize an increase of $22.5 
     million in PE 23735A for a total of $159.0 million. Of this 
     amount, $12.0 million is for development of field emission 
     display units for armored vehicles; $4.0 million is for 
     development of AN/VVR-1 Laser Warning Receivers; and $6.5 
     million is for the M1 system enhancement program (SEP).
     Aircraft modification/product improvement program
       The budget request included $2.6 million to support 
     improvements to existing aircraft systems.
       The House bill would authorize an increase of $20.0 million 
     for the improved cargo helicopter (ICH) program.
       The Senate amendment would authorize an increase of $30.0 
     million for ICH.
       The conferees agree to authorize an increase of $20.0 
     million for ICH in PE 23744 for a total of $22.6 million.
     Digitization
       The budget request included $157.0 million to support Army 
     digitization efforts.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $11.0 
     million for outstanding digitization requirements.
       The conferees note concerns expressed by defense 
     appropriations subcommittees regarding the funding of certain 
     Army digitization activities in the Digitization program 
     element (PE 23758A) of the Army Research and Development 
     budget request.
       The conferees agree to reallocate $100.0 million from the 
     Army request for digitization funding as follows:


            Research, Development, Test and Evaluation, Army


                                                            In millions
Digitization:
  Applique.........................................................$2.6
  Tactical Internet.................................................6.0
Other:
  Force XXI Initiatives............................................38.9
  Striker...........................................................3.9
  Mortar Fire Control..............................................10.0
  Radio Frequency Technology........................................1.7
  Light Weight Laser Designator.....................................2.8
  Combat Synthetic Training Assessment Range........................5.4
  Airborne Command & Control System................................11.0
Missile Procurement, Army:
  Avenger Slew-to-Cue...............................................7.4
Other Procurement, Army:
  Gun Laying Positioning System.....................................6.0
  PLS Enhanced......................................................3.0
  Radio Frequency Technology........................................1.2

       The conferees encourage the Army to further develop a clear 
     and comprehensive digitization program that depicts 
     requirements, funding, and timelines associated with the 
     ultimate goal of fielding a digitized Corps early in the next 
     century and to consult with the congressional defense 
     committees concerning that program. The conferees expect that 
     this effort will be fully funded in future budget submissions 
     and that congressional defense committees will be notified of 
     proposed acquisitions and activities. The conferees agree to 
     authorize $65.6 million for digitization in PE 23758A.
     Missile/air defense product improvement program
       The budget request included $17.4 million to support 
     improvements to existing air defense systems.
       The House bill would authorize an increase of $16.7 
     million, $10.0 million for Patriot PAC-3 development and $6.7 
     million for the Stinger Block II development effort.
       The Senate amendment would authorize an increase of $10.0 
     million for Patriot anti-cruise missile (PACM) development.
       The conferees agree to authorize $31.4 million, an increase 
     of $14.0 million in PE 23801A, $10.0 million for the 
     completion of the PACM development effort and $4.0 million 
     for the Stinger Block II program.
     Healthcare information protection demonstration
       The budget request included $9.6 million in PE 33140A for 
     the Army's information systems security program.
       The House bill would authorize an increase of $2.5 million 
     to initiate a demonstration program for military healthcare 
     information protection that would be consistent with national 
     healthcare and information initiatives, and would direct the 
     Secretary of the Army to report to the congressional defense 
     committees on related matters.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     End item industrial preparedness activities
       The budget request included $44.3 in PE 78045A for the 
     Army's manufacturing technology program.
       The House bill would authorize an increase of $15.0 million 
     for munitions manufacturing technology.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $15.0 
     million in PE 78045A to accelerate key munitions 
     manufacturing technologies in composites, electronics, 
     energetics, power supplies, and metal parts, as recommended 
     in the House report (H. Rept. 105-132). The conferees intend 
     this funding to be used to reduce the cost of future 
     munitions and to enable both government- and contractor-owned 
     munitions production facilities to produce research 
     quantities and production quantities of munitions 
     concurrently; to adopt design changes and product 
     improvements more rapidly; and to make short production runs 
     more feasible and less costly.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $7,611.0 million for Navy, Research and 
     Development in the Department of Defense. The House bill 
     would authorize $7,947.0 million. The Senate amendment would 
     authorize $7,813.0 million. The conferees recommended an 
     authorization of $7,774.9 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     Defense research sciences
       The budget request included $366.3 million in PE 61153N for 
     Navy defense research sciences.
       The House bill would authorize an increase of $10.0 million 
     to continue the program of basic research in molecular design 
     materials science that was initiated in 1994.
       The Senate amendment would authorize the budget request.
       The conferees agree to an increase of $8.0 million in PE 
     61153N. Further, the conferees agree with the direction 
     contained in the House report (H. Rept. 105-132) with regard 
     to the molecular design materials science program. The 
     Secretary of the Navy shall conduct an assessment of the 
     goals, objectives, and progress in the program, future 
     directions and funding requirements, and report the results 
     of the assessment to the congressional defense committees by 
     March 15, 1998.
     Marine mammal research program
       The budget request included $366.3 million in PE 61153N for 
     Navy Defense Research Sciences, including $137.1 million to 
     support basic research in ocean sciences.
       The House bill would authorize an increase of $500,000 to 
     continue the Navy's cooperative marine mammal research 
     program.
       The Senate amendment would authorize the budget request.
       The House recedes.
       The conferees direct the Secretary of the Navy to submit to 
     the congressional defense committees, by March 1, 1998, a 
     report on the research being conducted in the marine mammal 
     research program, the technological implications of this 
     research to Navy sonar requirements, and future plans for the 
     program.
     Power electronic building blocks
       The budget request included $46.9 million in PE 62121N for 
     applied research in surface ship technology.
       The House bill and the Senate amendment would authorize an 
     increase of $6.0 million for power electronic building block 
     (PEBB) technology.
       The conferees agree to an increase of $6.0 million in PE 
     62121N for the acceleration of the PEBB program to provide 
     electric power system options for future shipboard designs 
     that include electric drive and for meeting reduced manning 
     goals through automation of ship systems. The conferees urge 
     the use of virtual prototyping for simulation and evaluation 
     of advanced concept electrical systems in this effort.
     Power node control centers
       The budget request included $46.8 million in PE 62121N for 
     applied research in surface ship and submarine, hull, 
     mechanical, and electronic technology, logistics technology, 
     and environmental protection for all Navy platforms and shore 
     facilities.
       The House bill would authorize an increase of $1.5 million 
     in PE 62121N to continue the development of power node 
     control centers for advanced integrated electrical 
     distribution system fault detection, switching, 
     reconfiguration, and control of shipboard electrical systems.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Second source for carbon fibers
       The budget request included $76.7 million in PE 62234N for 
     materials, electronics, and computer technologies.
       The House bill and the Senate amendment would authorize an 
     increase of $2.0 million in PE 62234N to complete the 
     qualification of new processes for aviation platforms and the 
     development of a second source for carbon fibers.
       The conferees agree to authorize an increase of $2.0 
     million in PE 62334N to continue and complete the program 
     initiated in fiscal year 1997 to address new materials 
     processes such as resin transfer molding and to establish 
     second source qualification procedures for advanced 
     composites used in naval aircraft and prepreg systems.
     Titanium processing technology
       The budget request included $76.7 million in PE 62234N for 
     materials, electronics, and computer technologies.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $2.0 
     million in PE 62234N to support the development of the plasma 
     quench process for use in the production of ultra-fine 
     titanium powder and in the injection molding process.
       The House recedes.
       The conferees direct that all applicable competitive 
     procedures be used in the award of contracts or other 
     agreements under this program, and that cost sharing 
     requirements for non-federal participants be utilized where 
     appropriate.
     Arctic climate observations
       The budget request included $48.2 million in PE 62435N for 
     applied research in oceanographic and atmospheric 
     technologies. The request included no funds for continuation 
     of the ocean climate research program.
       The House bill would authorize an increase of $3.0 million 
     in PE 62435N to support the second year of the arctic 
     oceanographic observation program, a four-year, cooperative 
     program for the utilization of underwater acoustic techniques 
     to determine ocean climate and acoustic characteristics in a 
     large ocean basin.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.0 
     million to continue the program for investigation of the use 
     of long-range underwater sound transmissions to detect and 
     monitor changes in the ocean, as described in the House 
     report (H. Rept. 105-132).
     National Oceanographic Partnership Program
       The budget request included $48.2 million in PE 62435N for 
     applied research in oceanographic and atmospheric technology.
       The House bill and Senate amendment would authorize an 
     increase of $16.0 million in PE 62435N for the National 
     Oceanographic Partnership Program (NOPP).
       The conferees agree to an increase of $12.0 million in PE 
     62435N to maintain the momentum of the program until 
     additional funds for support of the program can be included 
     in the budget requests of other participating agencies and 
     departments.
        The conferees further direct the Secretary of Defense to 
     coordinate with the Secretaries of Commerce, Energy, and 
     Interior, the Director of the National Science Foundation, 
     the Administrators of the National Aeronautics and Space 
     Administration and the Environmental Protection Agency on 
     funding levels required in future budget requests for 
     continuation of the NOPP. The conferees direct the Secretary 
     of Defense to provide a report to the congressional defense 
     committees by February 28, 1998 on the funding for the 
     program identified in the fiscal year 1998 budget requests of 
     participating agencies and the Department of Defense.
     Antisubmarine warfare technology
       The budget request included $35.7 million in PE 62633N for 
     undersea warfare weaponry technology.
       The House bill would authorize an increase of $4.0 million 
     in PE 63747N to mature the development of hydrodynamics and 
     propulsion technologies for the 6.25'' torpedo vehicle and 
     expand guidance and control technologies.
       The Senate amendment would authorize an increase of $4.0 
     million in PE 62633N to accelerate technology leading to the 
     development of a quick reaction antisubmarine/anti-torpedo 
     weapon needed for close-range engagements and for the 
     protection of surface ships and submarines from torpedo 
     attack.
       The conferees agree to authorize an increase of $3.0 
     million in PE 62633N for antisubmarine warfare technologies 
     applicable to quick reaction antisubmarine systems, as 
     recommended in the House report (H. Rept. 105-132) and the 
     Senate report (S. Rept. 105-29). The additional funding 
     should be used to mature hydrodynamics, propulsion, and 
     guidance and control technologies for the 6.25'' torpedo 
     vehicle to accelerate its development and introduction into 
     the fleet.
     Composite helicopter hangar
       The budget request included no funds for composite 
     helicopter hangars.
       The House bill authorized the budget request.
       The Senate amendment would authorize an increase of $10.0 
     million above the budget request in PE 63508N to begin a 
     developmental effort to design and fabricate the outer shell 
     of a DDG-51 helicopter hangar structure using composite 
     materials.
       The conferees agree to authorize an increase of $10.0 
     million in PE 63508N for development of a composite 
     helicopter hangar development and a general reduction of $5.0 
     million to PE 63508N.
     Project ``M''
       The budget request included $39.7 million in PE 63508N for 
     technologies for submarine and surface ship handling, 
     machinery, and engineering systems.
       The House bill authorized an increase of $5.0 million to 
     continue the Navy's program for transition, development and 
     demonstration of advanced quieting technology developed under 
     the Defense Advanced Research Project Agency Project ``M''.
       The Senate amendment authorized the budget request.
       The conferees agree to authorize a $5.0 million increase 
     for Project ``M''.
     Marine Corps advanced technology demonstration
       The budget request included $34.2 million to support the 
     Marine Corps advanced technology demonstration (ATD).
       The House bill would authorize an increase of $19.8 million 
     to support the Commandant's Warfighting Laboratory. The House 
     bill would also provide $5.0 million for a low-cost, close-
     range unmanned aerial vehicle (UAV) project.
       The Senate amendment would authorize an increase of $15.0 
     million for the Commandant's Warfighting Laboratory.
       The conferees agree to authorize an increase of $19.5 
     million in PE 63640M. Of this amount, $17.5 million is for 
     the Commandant's Warfighting Laboratory and $2.0 million is 
     for the common automatic recovery system for a total of $53.7 
     million in this program element.
     Freeze-dried blood research project
       The budget request included $18.3 million in PE 63706N for 
     medical development programs.
       The House bill and Senate amendment would authorize an 
     increase of $2.5 million for the freeze-dried blood research 
     project.
       The conferees agree to authorize an increase of $1.5 
     million in PE 63706N to continue research on freeze-dried 
     blood processes to develop a safe and reliable supply of 
     blood for combat casualties. The conferees recognize the 
     commercial potential of this technology and urge the Navy to 
     pursue dual-use application and cost-sharing in this program 
     to the maximum extent practicable.

[[Page H9313]]

     Littoral antisubmarine warfare technology demonstration
       The budget request included $54.8 million in PE 63747N for 
     advanced development of undersea warfare advanced technology, 
     including $30.9 million for shallow water surveillance 
     advanced technology.
       The House bill would authorize an increase of $5.0 million 
     in PE 63747N for continued development, demonstration, and 
     evaluation of the technology for a mobile, high power 
     broadband acoustic surveillance source that is based upon the 
     adaptation of commercial-off-the-shelf (COTS) air-gun 
     technology that was developed originally for the oil 
     exploration industry.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million for the continuation of the COTS air-gun technology 
     demonstration and evaluation program and understand that this 
     will lead to a decision by the Navy on whether to proceed 
     with the development of COTS air-gun technology as an 
     acoustic surveillance source.
     Beach and surf zone obstacle clearance
       The budget request included $41.6 million in PE 63782N for 
     advanced development and demonstration of technology for 
     shallow water mine counter-measures.
       The House bill would authorize an increase of $750,000 to 
     complete the additional testing required for determination of 
     the GPU-5 gunpod's capability to breach beach and surf zone 
     obstacles safely, quickly, and decisively when mounted on an 
     air-cushion landing craft.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     High frequency surface wave radar
       The budget request included $87.2 million in PE 63792N for 
     the advanced technology transition program.
       The House bill and Senate amendment would authorize an 
     increase of $4.0 million for high frequency surface wave 
     radar (HFSWR) advanced technology demonstration.
       The conferees agree to an increase of $4.0 million in PE 
     63792N to complete the HFSWR demonstration.
     Visualization architecture and technology
       The budget request included $7.8 million for advanced 
     technology in aviation survivability (PE 63216N) and $33.2 
     million for major test and evaluation investments (PE 
     64759N).
       The House bill would authorize an increase of $3.0 million 
     in PE 64759N for visualization architecture and technology 
     that would focus on development of data display technologies, 
     enhanced situational awareness, and other capabilities 
     required to enhance the ability of developmental and 
     operational testers to assess complex, dynamic air combat 
     testing and operations.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million in PE 63216N for visualization architecture and 
     technology. The conferees direct that all applicable 
     competitive procedures be used in the award of contracts or 
     other agreements under this program, and that cost-sharing 
     requirements for non-federal participants be utilized, where 
     appropriate.
     Antisubmarine warfare systems development
       The budget request included $22.9 million in PE 63254N for 
     development of antisubmarine warfare systems.
       The House bill would authorize an increase of $3.8 million 
     to complete demonstration/validation of sonobuoy geo-
     positioning system integration and transducer enhancements 
     for improving the shallow water antisubmarine warfare 
     effectiveness of the air deployed low frequency projector.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a $2.0 million increase in 
     PE 63254N for improving the shallow water antisubmarine 
     warfare effectiveness of the air deployed low frequency 
     projector.
     CV(X) carrier system development
       The budget request included $98.6 million in PE 63512N for 
     future aircraft carrier research and development.
       The House bill would authorize a decrease of $88.4 million 
     for CV(X) carrier system development. The House report (H. 
     Rept. 105-132) expressed the belief that it would be neither 
     fiscally nor technically prudent to increase advanced carrier 
     systems research and development for the CV(X) to the degree 
     sought by the Navy. The report also expressed the belief that 
     increased emphasis should be placed on the research and 
     development program for the CVN-77 to provide a transition to 
     the CV(X).
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $20.6 million in PE 
     63512N, a reduction of $78.0 million for future aircraft 
     carrier research and development.
       The conferees encourage the Chief of Naval Operations to 
     define the operational requirement for the CV(X) aircraft 
     carrier program and develop a road map for the CV(X) 
     research, development, test and evaluation program to ensure 
     the capabilities of the CV(X) meet that requirement.
     Advanced submarine systems development
       The budget request included $59.1 million in PE 63561N for 
     innovative research and development in submarine technologies 
     and their subsequent evaluation, demonstration, and 
     validation for submarine platforms, in order to increase the 
     submarine technology base and provide subsystem design 
     options that are not currently feasible.
       The House bill would authorize an increase of $103.0 
     million for development (in parallel with development of the 
     New Attack Submarine(NAS)) of a large-scale vehicle (LSV) 
     demonstrator that would not be limited by form (hull or 
     appendages) or by a single hull design, and would also direct 
     the Secretary of the Navy to issue a competitive solicitation 
     for the demonstrator to the shipyards not currently involved 
     in the design or future construction of the NAS. The House 
     bill would further direct the transfer to the submarine large 
     scale demonstrator of funds in the Future Years Defense 
     Program accompanying the fiscal year 1998 budget for the 
     Arsenal Ship demonstrator.
       The Senate amendment would authorize an increase of $15.0 
     million to accelerate the development of what are now 
     considered far-term technologies, such as an advanced 
     propulsor, rim driven motors, and advanced hull forms.
       The conferees agree to authorize an increase of $54.9 
     million. The Secretary of the Navy is authorized to pursue a 
     third demonstrator that is not limited by form or single hull 
     design and issue a competitive solicitation to all 
     responsible sources for such a demonstrator. To avoid costly 
     oversights and conflicts between the LSV builder and the 
     technology providers, the Secretary of the Navy should ensure 
     that the NAS shipbuilders are participants, as appropriate, 
     in the process of including new technologies into the LSV.
       The Secretary of the Navy should provide the congressional 
     defense committees not later than the time at which the 
     fiscal year 1999 defense budget request is submitted a report 
     detailing the Navy's plans for LSV development.
     Cruiser conversion program design
       The budget request included $38.6 million for ship 
     preliminary design and feasibility studies in PE 63564N.
       The House bill would authorize the budget request.
       The Senate amendment would authorize a $25.0 million 
     increase in PE 64567N to initiate planning for mid-life 
     conversion of Aegis cruisers and reduce schedule risk on 
     development of DD-21.
       The conferees agree to authorize a $15.0 million increase 
     in PE 63564N to initiate the cruiser conversion program. The 
     conferees direct the Secretary of the Navy to provide a 
     report on the cruiser conversion plan to the congressional 
     defense committees with the submission of the fiscal year 
     1999 defense budget request.
     Intercooled recuperated gas turbine engine
       The budget request included $49.7 million in PE 63573N for 
     the Navy's advanced surface machinery program, including 
     $32.3 million to continue development of the intercooled 
     recuperated (ICR) gas turbine engine.
       The House bill would authorize the budget request. The 
     House report (H. Rept. 105-132) would direct the Secretary of 
     the Navy to report an assessment of the progress in the ICR 
     engine program.
       The Senate amendment would also authorize the budget 
     request. The Senate report (S. Rept. 105-29) would direct the 
     Secretary of the Navy to prepare and submit a plan that makes 
     provisions for at-sea testing, completion of development, and 
     introduction of the ICR engine into the fleet.
       The conferees agree to authorize a reduction to the budget 
     request for the ICR program of $2.0 million, without 
     prejudice. The conferees direct the Secretary of the Navy to 
     conduct an assessment of the progress in the ICR engine 
     program and plans for its continuation. The assessment shall 
     address the technical progress in the program, future plans 
     for engine testing and qualification (including plans for 
     testing at land-based test sites and at-sea), options for 
     completion of development and introduction of the ICR engine 
     into the fleet if testing proves successful, the status of 
     agreements with the United Kingdom and participating 
     countries regarding the conduct of, and funding for, 
     continuation of the program, and budget estimates of the 
     costs necessary to complete the program. The results of the 
     assessment shall be reported to the congressional defense 
     committees with the submission of the fiscal year 1999 
     defense budget request.
     Automatic target recognition/optical correlation
       The budget request included $34.2 million in PE 63609N for 
     Navy conventional munitions development, $26.2 million in PE 
     63601F for Air Force conventional weapons technology, and 
     $4.8 million in PE 63232D for automatic target recognition.
       The House bill would authorize an increase of $8.0 million 
     in PE 63609N for development and demonstration of a miniature 
     optical correlator for automatic target recognition and 
     improved aimpoint selection for the Standard Missile, and an 
     increase of $3.5 million in PE 63601F for the development and 
     demonstration of a miniature optical correlator for automatic 
     target recognition and aimpoint selection for the AGM-130 
     missile.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $4.2 
     million in PE 63609N and an increase of $1.5 million in PE 
     63601F for the development and demonstration of optical 
     correlation technology, as described in the

[[Page H9314]]

     House report (H. Rept. 105-132). The increase in PE 63601F is 
     offset by a reduction of $3.0 million for next generation 
     air-to-air threats.
     Marine Corps assault vehicles
       The budget request included $60.1 million to support the 
     development of the advanced amphibious assault vehicle 
     (AAAV).
       The House bill would authorize an increase of $10.0 million 
     to meet additional development requirements.
       The Senate amendment would authorize an increase of $10.1 
     million for the AAAV.
       The conferees agree to authorize an increase of $8.0 
     million for a total of $68.1 million in PE 63611M.
     Marine Corps ground combat/support systems
       The budget request included $36.5 million to support 
     development of Marine Corps ground combat systems.
       The House bill would authorize an increase of $3.6 million 
     to support development requirements for the lightweight 155mm 
     howitzer.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Cooperative engagement capability
       The budget request included $139.2 million in PE 63658N for 
     the cooperative engagement capability (CEC).
       The House bill would authorize a total increase of $50.0 
     million in PE 63658N for the CEC program: $15.0 million to 
     continue the accelerated development of the low cost common 
     equipment set; $5.0 million to support transfer of the CEC 
     design and development agent to industry; $20.0 million to 
     accelerate integration of the CEC into Navy E-2C and P-3 
     aircraft; $5.0 million to initiate development of an 
     integrated capability between CEC and the ship self defense 
     program (SSDS); and $5.0 million to accelerate joint service 
     integration and demonstration of CEC with the Army's Patriot 
     and the Marine Corps' Hawk air defense missile systems.
       The Senate amendment would authorize an increase of $9.5 
     million in PE 63658N to:
       (1) $5.0 million to continue the transition of design 
     responsibility from its developer to the CEC procurement 
     contractor; and
       (2) $4.5 million to continue integration of CEC into the 
     Marine Corps Hawk missile system.
       The Senate amendment would also authorize $5.0 million in 
     PE 64212N to initiate development of a Ku-band data link kit 
     for the SH-60B helicopter to avoid CEC interference.
       The conferees agree to authorize an increase of $33.0 
     million in PE 63658N as follows:
       (1) $15.0 million for low cost common equipment sets;
       (2) $10.0 million for P-3 and E-2C integration;
       (3) $5.0 million for CEC-SSDS integration; and
       (4) $3.0 million for CEC-Hawk missile system integration.
       The conferees agree not to authorize an increase in PE 
     64212N for the SH-60B Ku-band data link.
     Composite engineered materials
       The budget request included $1.7 million in PE 63725N for 
     advanced development of materials, electronics and computer 
     technologies.
       The House bill would authorize an increase of $3.0 million 
     to complete the shore facilities materials program in cost-
     shared research on carbon fiber-reinforced, recycled 
     thermoplastic engineered lumber.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million to complete the shore facilities materials program in 
     cost-shared research on carbon fiber-reinforced, recycled 
     thermoplastic engineered lumber.
     Land attack systems technology
       The budget request included $37.8 million in PE 63795N for 
     development, demonstration, and validation of land attack 
     systems technology for naval ship-to-shore fire support.
       The House bill would authorize the following increases:
       (1) $15.1 million to complete the development and commence 
     the integration of a fire control system to support the 
     initial operational capability of the advanced 5"/62 caliber 
     gun and the extended range guided munition;
       (2) $10.0 million for flight test demonstration and risk 
     reduction for the land attack Standard missile;
       (3) $20.0 million for program definition and risk reduction 
     activities to permit the Navy tactical missile system 
     (NTACMS) to begin accelerated engineering and manufacturing 
     development in fiscal year 1999; and
       (4) $5.0 million to continue the micro-electromechanical 
     systems (MEMS) technology guidance and control risk reduction 
     program.
       The Senate amendment would authorize the following 
     increases:
       (1) $15.1 million for the continued development of the 
     naval surface fire support warfare control system (NWCS);
       (2) $5.0 million to pursue a flight demonstration program 
     for the land attack Standard missile; and
       (3) $20.0 million for developing NTACMS.
       The conferees agree to authorize the following increases to 
     PE 63795N:
       (1) $8.0 million to complete the extended range guided 
     munition development and commence the integration of a fire 
     control system;
       (2) $3.0 million to pursue a flight demonstration program 
     for the land attack Standard missile;
       (3) $10.0 million for developing NTACMS; and
       (4) $2.0 million for MEMS.
       The conferees are concerned that the Navy is pushing 
     systems to flight test to meet surface fire support 
     requirements without an initial analysis of whether the 
     systems are capable of meeting Naval surface fire support 
     requirements. In addition, a number of mature systems, 
     sub-systems and components appear to be capable of 
     fulfilling surface fire support requirements without 
     further development. However, without the basic analysis 
     which would allow the Navy to narrow the field of 
     candidates intelligently, too many systems are moving 
     toward fulfilling the same requirement and too many 
     opportunities to take advantage of developed systems are 
     being missed. To correct these deficiencies, the conferees 
     strongly encourage the Navy to conduct the basic analysis 
     necessary to move forward with a focused effort to meet 
     the surface fire support requirement. To accomplish this, 
     the conferees suggest the Navy evaluate the concept of a 
     virtual land attack warfare development center that would 
     electronically link existing expertise while avoiding 
     expensive travel costs. The Navy should consider using 
     funding from prime systems for meeting the surface fire 
     support analytical requirement, including Standard 
     missile, Navy tactical missile system, and Tomahawk. The 
     conferees believe the Navy needs to conduct this analysis 
     to eliminate redundancy and take advantage of mature 
     technologies to make progress in meeting naval surface 
     fire support requirements.
     Nonlethal weapons and technologies of mass protection program
       The budget request included $16.8 million for the nonlethal 
     weapons (NLW) and technologies program.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $3.3 
     million to address underfunding by the Department of Defense 
     in support of nonlethal weapons technologies research and 
     development program.
       The Senate recedes.
       The Senate report (S. Rpt. 105-29) expressed the view that 
     the Department of Defense should continue to focus its 
     efforts on developing weapons and technologies to assist U.S. 
     military forces, who are increasingly involved in non-
     traditional military situations, with the necessary tools and 
     flexibility to manage, shape, deter, or contain future 
     conflicts across the operational spectrum. The conferees note 
     the recent decision by the Department of Defense to ship 
     nonlethal weapons and technologies to U.S. ground forces 
     participating in the North Atlantic Treaty Organization 
     (NATO) Stabilization Force (SFOR) during the recent violent 
     confrontations between American forces and Bosnian Serb 
     demonstrators.
       The conferees commend the military services for their 
     efforts in the NLW area and encourage the Department of 
     Defense (DOD) to increase its investments in the research, 
     development, and procurement of nonlethal weapons and 
     technologies, as well as associated doctrinal and training 
     initiatives. Further, the conferees expect the DOD to provide 
     the funds necessary to fulfill the requirements for nonlethal 
     weapons and technologies identified by the military services, 
     rather than requiring the military services to fund NLW 
     programs out of their existing budgets.
     CH-60 helicopter development
       The budget request included $31.8 million for CH-60 
     helicopter advance procurement.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a transfer of $31.8 
     million from Aircraft Procurement, Navy to PE 64212N to 
     enable the Navy to conduct non-recurring engineering efforts, 
     including drawings for engineering development.
     Parametric airborne dipping sonar
       The budget request included no funds for the parametric 
     airborne dipping sonar (PADS).
       The Senate amendment would authorize an increase of $10.0 
     million in PE 64212N for the continued development of PADS.
       The House bill authorized the budget request.
       The conferees agree to authorize an increase of $5.0 
     million increase for PADS in PE 64212N.
     P-3 maritime patrol aircraft modernization program
       The budget request included $3.2 million in PE 64221N to 
     continue engineering and manufacturing development of 
     upgrades to the P-3C aircraft system to enhance surface and 
     surface tracking, classification, and attack capabilities.
       The House bill would authorize an increase of $12.0 million 
     to continue and accelerate the integration of anti-surface 
     warfare improvement program (AIP) sensors to reduce operator 
     workload, modernize the operator-machine interface to take 
     advantage of new displays and controls, provide additional 
     sensor integration/enhancements, improve/automate tactical 
     planning aids, and provide for multi-sensor data correlation 
     and fusion.
       The Senate amendment would authorize the budget request.

[[Page H9315]]

       The conferees agree to authorize an increase of $10.0 
     million in PE 64221N for the P-3C maritime patrol aircraft 
     modernization program as recommended in the House report (H. 
     Rept. 105-132).
       The conferees note the continuing disparity between the 
     operational requirements of the unified commanders-in-chief 
     (CINCs) and the Navy's plans for modernization of the P-3C 
     fleet. The conferees direct the Secretary of the Navy to 
     provide an assessment of the implications of this disparity 
     to the congressional defense committees with the submission 
     of the fiscal year 1999 defense budget request.
     H-1 upgrades
       The budget request included $80.7 million to support H-1 
     upgrades.
       The House bill and Senate amendment would authorize a 
     transfer of $5.6 million from the H-1 program in Navy 
     procurement to support efforts to provide for a common 
     cockpit in PE 64245N.
       The conferees agree to authorize the transfer of $5.6 
     million from the H-1 upgrade program to PE 64245N for a total 
     of $86.3 million in that program element. The conferees 
     agree to authorize a total of $12.9 million for H-1 
     modifications.
     Advanced ranging source
       The budget request included $16.9 million in PE 64261N for 
     engineering and manufacturing development of acoustic search 
     sensors.
       The House bill would authorize an increase of $4.0 million 
     to accelerate the development of alternative shallow water-
     capable sound sources in the advanced extended echo ranging 
     (AEER) program and ensure that unique acoustic technology is 
     available for the advanced ranging source (ARS) and air 
     deployed low frequency project (ADLFP) comparative program 
     testing.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.0 
     million for the purposes identified in the House report (H. 
     Rept. 105-132).
     High Power Discriminator
       The budget request included no funds in PE 64307N to begin 
     development of a High Power Discriminator (HPD).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $35.0 
     million for the HPD Program.
       The conferees agree to authorize an increase of $25.0 
     million for the HPD Program in PE 64307N.
       The conferees support the concept of using existing X-Band 
     radar technology in support of the Navy's theater ballistic 
     missile defense effort. The proposed HPD would consist of a 
     solid state X-Band radar for long-range acquisition and 
     discrimination for theater ballistic missile defense and 
     cruise missile defense. This concept would leverage the 
     significant investment already made in the Army's ground-
     based radar.
     Maritime fire support demonstrator/arsenal ship
       The budget request included $102.9 million in PE 64310N for 
     the Navy and $47.2 million in PE 63763E for the Defense 
     Advanced Research Projects Agency (DARPA) to continue 
     development of the arsenal ship demonstrator. The budget 
     request also included $55.0 million in PE 64567N for the 
     Navy's next generation surface combatant, SC-21.
       The House bill would authorize no funding for the arsenal 
     ship program. It would direct the Under Secretary of Defense 
     (Acquisition and Technology) and the Secretary of the Navy to 
     review the acquisition strategy for the SC-21 program and 
     determine whether or not a prototyping strategy is 
     appropriate for the new surface combatant.
       The Senate amendment would authorize an increase of $25.0 
     million in PE 64310N to ensure that sufficiently robust 
     funding is available early in Phase III, the construction 
     phase for the arsenal ship (now redesignated the maritime 
     fire support demonstrator (MFSD)), for schedule risk 
     reduction and to promote the introduction of new technologies 
     into the demonstrator.
       The conferees agree to authorize $35.0 million in PE 64310N 
     and no funding in PE 63673E to continue the MFSD program, a 
     total reduction of $105.2 million. The reduction reflects the 
     concerns stated in the fiscal year 1997 and the fiscal year 
     1998 reports by the congressional defense committees and in 
     the statement of managers which accompanied the conference 
     report on H.R. 3230 (H. Rept. 104-724).
       As noted in the House report (H. Rept. 105-132), the Navy's 
     original concept for the arsenal ship was for the development 
     and demonstration of a ``proof-of-principle strike warfare 
     ship'' that would establish a new paradigm for the 
     development and construction of Navy ships. A stealthy, 
     highly survivable, heavily armed, and minimum manpower fire 
     support ship, the arsenal ship demonstrator would be the 
     prototype of a force of up to six such ships, each armed with 
     as many as 500 vertical launch cells.
       The Senate report (S. Rept. 105-29) noted that the Navy's 
     concept for execution of the land attack mission has evolved 
     from delivery of massive firepower from a limited number of 
     single-mission hulls to delivery of fires by a closely 
     interconnected, distributed network of multi-mission surface 
     combatants. This evolution is reflected in the preferred 
     option identified in the SC-21 cost and operational 
     effectiveness analysis: a multi-mission destroyer optimized 
     for land attack, the DD-21. The Navy has stated that the MFSD 
     lies on the critical path to successful development of a DD-
     21 design in time to begin lead ship construction in fiscal 
     year 2004. The Navy believes that all the technologies 
     identified in the arsenal ship concept development phase will 
     be relevant to the DD-21, and that the MFSD will also serve 
     as a test-bed for emerging technologies following completion 
     of the initial demonstration with the fleet in 2001. The 
     conferees are deeply concerned that, although the stated 
     purpose of the original arsenal ship demonstrator program 
     changed significantly with the Navy's announcement of the new 
     MFSD strategy in April 1997, the DARPA and the Navy continue 
     to pursue the MFSD program without any apparent near-term 
     change in the original program direction and without 
     addressing the issues that have been previously raised by the 
     congressional defense committees. The conferees understand 
     that the program now under contract continues to focus on the 
     development and demonstration of the arsenal ship concept, 
     not on the maritime fire support demonstrator and its 
     relationship to DD-21.
       The conferees note the views expressed in the House report 
     that the differences in ship size and mission capability 
     between the Arsenal Ship and DD-21, as conceived, could yield 
     two separate development programs and that the overlapping 
     schedules for the demonstrator and the DD-21 program do not 
     provide sufficient opportunity for the experience gained from 
     the demonstrator to provide maximum benefit to design and 
     construction of the DD-21.
       The conferees believe that, if the MFSD program is to be 
     relevant, the program must focus on the development and 
     demonstration of new processes and procedures for the 
     development and construction of Navy ships, and on the 
     development and demonstration of technologies that might 
     be used in the DD-21 or in other future Navy ship 
     construction programs. The demonstrator program must be 
     structured to achieve these ends and the development and 
     demonstration of the technologies to be evaluated on the 
     demonstrator must be explicitly defined, programmed, and 
     funded. The conferees do not believe that the MFSD, as a 
     demonstrator and test bed, should be funded in a program 
     element for engineering and manufacturing development.
       Therefore, the conferees direct the Secretary of Defense to 
     prepare and submit to the congressional defense committees a 
     plan for the development, demonstration, and evaluation of 
     the MFSD and for development, demonstration, and evaluation 
     of the various technologies that will be demonstrated and 
     evaluated on the demonstrator. The technologies should 
     include those being considered for incorporation in the 
     detailed design of the DD-21, for subsequent technology 
     insertion into the DD-21 program, or for use in other future 
     naval ship construction programs. The plan shall include the 
     management structure, program plan, schedule, and funding 
     required for development of the MFSD and for development, 
     demonstration and evaluation of each of the technologies 
     under consideration. The conferees further direct that of the 
     funds authorized to be appropriated for the MFSD program in 
     fiscal year 1998, not more than 50 percent may be obligated 
     until the plan is provided to the Congress.
       The conferees also direct that any program to convert the 
     MFSD to an operational surface combatant will require 
     completion of a Milestone II/IV review and decision by the 
     Secretary of Defense that formally addresses the same issues 
     regarding the requirement and program for the MFSD that have 
     been previously raised by the congressional defense 
     committees with regard to the arsenal ship.
     Multi-purpose processor
       The budget request included $42.3 million in PE 64503N for 
     SSN-688 and TRIDENT modernization, including $33.5 million 
     for submarine sonar improvement. However, the budget request 
     included no funds for the multi-purpose processor (MPP).
       The House bill would authorize an increase of $15.0 million 
     for advanced development and rapid introduction of the MPP 
     into the U.S. submarine fleet.
       The Senate amendment would authorize an increase of $25.0 
     million above the budget request in PE 64503N to be used as 
     an SBIR follow-on for advanced development of MPP 
     transportable software technology, technology insertion, 
     advanced processor software builds, and for providing MPP 
     units and training throughout the fleet and the Navy research 
     and development community.
       The conferees agree to authorize an increase of $15.0 
     million for the SBIR follow-on for advanced development of 
     MPP transportable software technology, technology insertion, 
     advanced processor software builds, and for providing MPP 
     units and training.
     Advanced submarine tactical electronic combat system
       The budget request included $311.1 million in PE 64558N to 
     continue engineering and manufacturing development for the 
     New Attack Submarine (NSSN), including $95.8 million for NSSN 
     combat system development.
       The House bill would authorize an increase of $17.0 million 
     in PE 64558N to restore the deferred elements of the advanced 
     submarine tactical electronic combat system (ASTECS) and the 
     integrated electronic support measures mast (IEM), ASTECS/IEM 
     program.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $8.0 
     million in PE 64558N to restore

[[Page H9316]]

     the deferred elements of the ASTECS/IEM program.
     CVN-77 research and development
       The budget request included $17.9 million in PE 64567N for 
     aircraft carrier contract design for the CVN-77.
       The House bill would authorize an increase of $17.0 million 
     to accelerate the evaluation of maturing advanced 
     technologies for potential incorporation into the design of 
     the CVN-77.
       The Senate amendment would authorize an increase of $17.0 
     million in PE 63564N.
       The conferees agree to authorize an increase of $17.0 
     million in PE 64567N to be used only for CVN-77 research, 
     development, test and evaluation to accelerate the evaluation 
     of maturing advanced technologies for potential incorporation 
     into the design of CVN-77.
     Ship self-defense system
       The budget request included $132.3 million in PE 64755N for 
     the Navy's ship self defense program including $8.2 million 
     for continued development of the NULKA active countermeasures 
     decoy.
       The House bill would authorize an increase of $8.6 million 
     to activate the integrated ship self-defense test site at 
     Wallops Island, and would direct the Secretary of the Navy to 
     provide $6.0 million from available funds to refurbish and 
     install an AN/SPS-48E air search radar at the test site. The 
     House bill would direct the Secretary of the Navy to reassess 
     the requirement for close-in defense of Navy surface ships 
     and report the results of the assessment and the plan for 
     meeting the requirement to the congressional defense 
     committees by February 28, 1998. Fiscal year 1998 funds would 
     not be authorized to be obligated for the rolling airframe 
     missile (RAM) upgrade program until 30 days after the 
     congressional defense committees receive the Secretary's 
     report.
       The Senate amendment would authorize an increase of $34.0 
     million in PE 64755N, including:
       (1) $19.0 to pursue the system integration needed to 
     integrate the cooperative engagement capability (CEC), the 
     advanced combat direction system (ACDS), and the ship self- 
     defense system (SSDS) local area networks to create a 
     single tactical picture and a central integrated combat 
     direction system;
       (2) $2.0 million for continued development of the NULKA 
     decoy; and
       (3) $13.0 million for accelerating the infrared search and 
     track program (IRST).
       The conferees agree to authorize the following ship self-
     defense increases to PE 64755N:
       (1) $10.0 million to pursue the system integration needed 
     to integrate the cooperative engagement capability (CEC), the 
     advanced combat direction system (ACDS), and the ship self-
     defense system (SSDS) local area networks to create a single 
     tactical picture and a central integrated combat direction 
     for a quick reaction combat capability (QRCC);
       (2) $4.0 million to activate the integrated ship self-
     defense test site at Wallops Island;
       (3) $2.0 million for continued NULKA development; and
       (4) $4.0 million to accelerate the IRST program.
       The conferees direct the Secretary of the Navy to assess 
     the requirement for close-in defense of Navy surface ships as 
     discussed in the House report (H. Rept. 105-132), and to 
     report the results of that assessment and the plans for 
     meeting the requirement to the congressional defense 
     committees by February 28, 1998.
     Safety and survivability enhancements
        The budget request included $263.9 million in PE 65864N 
     for test and evaluation support.
       The House bill would authorize an increase of $2.0 million 
     to continue the program for procurement, test, and 
     alveolation of commercial off-the-shelf non-development items 
     (COTS NDI) that have high potential for contributing to 
     safety of flight, fire fighting, damage control, emergency 
     preparedness ashore, survival at sea, and chemical/biological 
     warfare defense. The additional funds would permit the 
     program to assess COTS NDI that are new to the industrial 
     marketplace.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $1.0 
     million in PE 65864N for Navy safety and survivability 
     enhancements.
     E-2 eight-blade composite propeller system
       The budget request included $64.9 million in PE 24152N for 
     development of pre-planned product improvements in E-2C 
     aircraft and weapon system capabilities, involving $39.4 
     million for E-2C mission system improvements.
       The House bill would authorize an increase of $10.0 million 
     to initiate a 24 month program for development and 
     demonstration of an eight-blade composite propeller system 
     for the E-2C.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request. The 
     conferees understand that the Navy has advertised for bids 
     and plans to award a contract to develop a new eight-blade 
     composite propeller for the E-2C and C-2A aircraft to address 
     existing system limitations and reduce maintenance and 
     operations costs. The conferees direct the Secretary of the 
     Navy to ensure that the solicitation and contract award 
     process for the award of such a contract complies with 
     Federal Acquisition Regulations.
     Battle force tactical trainer
        The budget request included $59.0 million in PE 24571N for 
     consolidated training systems development, including $2.9 
     million for continued development of the battle force 
     tactical training (BFTT) system.
       The House bill would authorize an increase of $5.0 million 
     for the integration of ship and battle force electronic 
     surveillance systems into the BFTT system.
       The Senate amendment would authorize the budget request.
       The Senate recedes.
     Joint tactical combat training system
        The budget request included $59.0 million in PE 24571N for 
     consolidated training systems development, including $33.6 
     million for continued development of the joint tactical 
     combat training system (JTCTS). The JTCTS is a Navy-led, 
     joint Air Force/Navy program for the development of fixed, 
     transportable, and mobile range instrumentation for shore-
     based tactical air crew training and for deployable, at-sea 
     naval expeditionary force training.
       The House bill would authorize a reduction of $27.5 million 
     to the budget request for JTCTS and would direct the 
     Secretary of the Navy, in coordination with the Secretary of 
     the Air Force, to conduct an assessment of the JTCTS 
     requirement and development program and report the results of 
     the assessment to the congressional defense committees by 
     December 31, 1997.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request for the 
     JTCTS program. The conferees understand that JTCTS is an 
     Acquisition Category and an Office of the Secretary of 
     Defense (OSD) special interest program, and that a thorough 
     assessment and baseline review of the program was 
     successfully completed in May 1997 by the Secretary of the 
     Navy, the Secretary of the Air Force, a senior OSD review 
     team and the Defense Test and Training Steering Group. The 
     conferees further understand that the Navy Fleet commanders 
     in chief have endorsed the JTCTS as their number two training 
     range priority. The conferees also understand that the design 
     of JTCTS provides a neck-down strategy for replacement of 
     existing legacy training and test range instrumentation that 
     will result in considerable savings when the planned 
     transition to JTCTS begins in fiscal year 2000. The conferees 
     strongly support the development and fielding of common 
     training and test range instrumentation systems for the Air 
     Force and the Navy and encourage the Secretary of Defense to 
     ensure the maintenance of the schedule for development of 
     JTCTS. The results of the program assessment directed in 
     the House Report (H. Rept. 105-132) and any revisions to 
     the program baseline, funding requirements, and schedule 
     should be forwarded to the congressional defense 
     committees by January 31, 1998.
     Marine Corps communications systems
       The budget request included $38.3 million to support 
     development of Marine Corps communications systems.
       The House bill would authorize an increase of $9.9 million 
     to support development of Marine Corps communication system 
     requirements. Of this amount, $2.0 million was for the 
     tactical hand-held radio; $1.5 million was for tactical 
     remote sensors; $0.7 million was for Marine common hardware 
     suite (MCHS); $1.0 million was for the tactical electronic 
     reconnaissance processor and intelligence systems; $5.0 
     million was for close-range unmanned aerial vehicle (UAV) 
     data links; and a $0.3 million decrement was for the TENCAP 
     program.
       The Senate amendment would authorize an increase of $0.7 
     million for MCHS.
       The conferees agree to authorize an increase of $7.0 
     million for a total of $45.3 million in PE 26313M. Of this 
     amount, $2.0 million is for the tactical hand-held radios and 
     $5.0 million is for the close-range UAV data link.
     Marine Corps ground combat/supporting arms systems
       The budget request included $12.6 million for Marine Corps 
     ground combat system development initiatives.
       The House bill would authorize an increase of $5.0 million 
     in PE 26623M. Of this amount, $4.3 million would be used to 
     integrate and test the AN/VVR-1 laser warning receiver on the 
     M1A1 Abrams tank and $0.7 million would be used to support 
     the development of Marine Corps clothing requirements.
       The Senate amendment would support the budget request.
       The confeeres agree to authorize an increase of $2.1 
     million in PE 26623M for the integration and testing of the 
     AN/VVR-1 laser warning receiver on the Marine Corps M1A1 
     tank.
     Manufacturing technology programs
        The budget request included no funds for the Navy's 
     manufacturing technology (MANTECH) program.
       The House bill would authorize funding for the MANTECH 
     program through section 211 of Title II, as noted elsewhere.
       The Senate amendment would authorize an increase of $50.0 
     million in PE 78011N in order to address funding shortfalls 
     in the MANTECH program for fiscal year 1998. The Senate 
     amendment also required the Secretary of the Navy to provide 
     a report to the congressional defense committees on his plan 
     to strengthen and stabilize funding for the Navy MANTECH 
     program.

[[Page H9317]]

       The conferees agree to an increase of $55.0 million in PE 
     78011N for the MANTECH program. The conferees are once again 
     disappointed in the Navy's budget request for the 
     manufacturing technology (MANTECH) program. The program has 
     traditionally focused on making weapon systems and equipment 
     more affordable through the application of advanced 
     manufacturing methods to weapon systems production. In this 
     time of severe budget constraints, the conferees expect the 
     Navy to make every effort to pursue programs directed at 
     lowering the long-term cost of weapon systems.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $14,451.4 million for Air Force, Research 
     and Development in the Department of Defense. The House bill 
     would authorize $14,659.7 million. The Senate amendment would 
     authorize $14,302.3 million. The conferees recommended an 
     authorization of $14,338.9 million. Unless noted explicitly 
     in the statement of managers, all changes are made without 
     prejudice.

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     Integrated High Payoff Rocket Propulsion Technology
        The budget request included $48.1 million for rocket 
     propulsion technology in the Integrated High Payoff Rocket 
     Propulsion Technology (IHPRPT) initiative programs.
       The House bill would authorize $57.6 million for IHPRPT 
     programs, an increase of: $6.0 million to PE 62601F; $1.5 
     million to PE 63302F; $1.0 million to PE 62111N; and $1.0 
     million to PE 63217N.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $55.4 million for IHPRPT 
     initiative programs, an increase of: $4.8 million to PE 
     62601F; $1.5 million to PE 63302F; and $1.0 million to PE 
     63217N.
     Military Spaceplane
        The budget request included no funds for the Military 
     Spaceplane technology program.
       The House bill would authorize an increase of $15.0 million 
     in PE 63302F for the Military Spaceplane program.
       The Senate amendment would authorize an increase of $10.0 
     million in PE 63401F for the Military Spaceplane program.
       The conferees agree to authorize an increase of $10.0 
     million for the Military Spaceplane program in PE 63401F.
       Although the National Space Launch Policy assigns to NASA 
     the lead for reusable launch vehicle development, the 
     Department of Defense has been participating in such 
     activities for many years. The Air Force has developed a 
     military spaceplane program to complement NASA's efforts 
     while focusing on specific military requirements and 
     applications, a responsibility that does not reside with 
     NASA. The Commander-in-Chief of U.S. Space Command is in the 
     process of identifying military requirements for such a 
     program and the Air Force has established a program office 
     and a new program element to manage this activity. The Air 
     Force is also working to include funding in the Future Years 
     Defense Program for this effort. The conferees do not view 
     these actions as duplicative of NASA's work on reusable 
     launch vehicles.
       The conferees believe that the Department of Defense should 
     begin to define a military spaceplane concept that meets 
     legitimate military requirements in the future while 
     exploiting technological progress made in NASA's reusable 
     launch vehicle program. The conferees direct the Secretary of 
     Defense to provide a report describing the status of this 
     effort to the congressional defense committees by February 
     15, 1998.
     Solar thermionics orbital transfer vehicle
        The budget request included no funds for the solar 
     thermionics orbital transfer vehicle program.
       The House bill would authorize an increase of $20.0 million 
     in PE 63401F for the solar thermionics orbital transfer 
     vehicle program.
       The Senate amendment would authorize an increase of $10.0 
     million for this program.
       The conferees agree to authorize an increase of $7.5 
     million in PE 63401F for the solar thermionics orbital 
     transfer vehicle.
       The conferees have supported thermionics technology 
     development for space applications. The solar powered orbital 
     transfer vehicle has been identified by the Air Force as a 
     Third Millennium initiative. This program combines thermionic 
     technology for electricity production and thermal propulsion 
     which can be used to move spacecraft to higher or new orbits.
     Joint air-to-surface standoff missile/standoff land attack 
         missile-expanded response
        The budget request included $9.6 million in PE 64312N and 
     $203.3 million in PE 27325F for development of the Air Force/
     Navy Joint Air to Surface Standoff Missile (JASSM) program 
     and $28.9 million in PE 64603N to continue development of the 
     Navy's Standoff Land Attack Missile-Enhanced Response (SLAM-
     ER) program. The request also included $21.7 million for 
     procurement of 22 SLAM-ER missiles for the Navy.
       The House bill and the Senate amendment would authorize the 
     budget request for JASSM and for SLAM-ER.
       The conferees direct the Secretary of Defense to include 
     SLAM-ER plus and the two alternative systems that are funded 
     in the JASSM program in the Analysis of Alternatives for 
     JASSM.
       Accordingly, the conferees agree to authorize $5.5 million 
     in PE 64321N and $170.0 million in PE 27325F to continue the 
     JASSM program, $28.9 million in PE 64603N to continue the 
     development of SLAM-ER, and $21.7 million for SLAM-ER 
     procurement.

                       JOINT AIR-TO-SURFACE STANDOFF MISSILE/STANDOFF LAND ATTACK MISSILE                       
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                               Budget                       Conference          
               Program element and description                 request    HNSC      SASC     agreement   Change 
----------------------------------------------------------------------------------------------------------------
PE64312N--Tri-Service Standoff Attack Missile...............       9.6       9.6       9.6        5.5       -4.1
PE27325F--Joint Air-to-surface standoff missile.............     203.3     203.3     203.3      170.0      -33.3
PE64603N--Unguided Conventional Air-launched Weapons (SLAM                                                      
 ER)........................................................      28.9      28.9      28.9       28.9   ........
WPN line 18--Harpoon Mods (SLAM ER).........................      21.7      21.7      21.7       21.7   ........
                                                             ---------------------------------------------------
      Total.................................................     263.5     263.5     263.5      226.1      -37.4
----------------------------------------------------------------------------------------------------------------

       The conferees note that the lack of agreement between the 
     Navy and the Air Force on the conduct of the JASSM program 
     calls for clear guidance from the Secretary of Defense. The 
     Secretary has four obvious alternatives to examine that could 
     have entirely different effects on future budgets.
       (1) Develop JASSM to meet the operational needs of the Navy 
     and the Air Force, with SLAM-ER not procured beyond an 
     interim capability.
       (2) Continue the JASSM program as a joint program for both 
     the Navy and Air Force, while the Navy continues a separate 
     development of SLAM-ER as currently planned.
       (3) Develop separate programs for the Navy and the Air 
     Force, with SLAM-ER as the Navy choice, and JASSM as the Air 
     Force selection.
       (4) Develop SLAM-ER as the single program for both the Air 
     Force and the Navy.
       The conferees direct the Secretary of Defense to review the 
     SLAM-ER and JASSM programs and alternatives outlined above 
     and to report to the congressional defense committees within 
     60 days of the enactment of this Act.
     Major test and evaluation investment
        The budget request included $47.3 million in PE 64759F for 
     major test and evaluation investment.
       The House bill would authorize an increase of $14.8 million 
     for range improvement program/modernize range C41 
     capabilities.
       The Senate amendment would authorize a decrease of $6.0 
     million for infrastructure reduction.
       The conferees agree to authorize an increase of $10.0 
     million for the range modernization described in the House 
     report (H. Report. 105-132). The conferees also agree to a 
     general reduction of $3.0 million in PE 64759F.
     Smart monitoring system
        The budget request included $5.9 million for pollution 
     prevention in PE 65854F.
       House bill would authorize an additional $5.0 million in PE 
     65854F to expand Air Force demonstration efforts related to 
     the smart monitoring system, a real-time monitoring 
     technology for soil and groundwater contamination.
       The Senate amendment would authorize the budget request. 
     The conferees agree to authorize an increase of $4.0 million 
     in PE 65854F for the smart monitoring system.
     Rocket Systems Launch Program
        The budget request included $8.0 million in PE 65860F for 
     the Rocket Systems Launch Program (RSLP).
       The House bill would authorize an increase of $25.0 million 
     for RSLP to support the launch of an Atmospheric Intercept 
     Technology (AIT) demonstration payload.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $20.0 
     million for RSLP in support of the AIT program. The conferees 
     direct the Ballistic Missile Defense Organization and the Air 
     Force to develop a coordinated implementation plan for 
     executing the RSLP and AIT budgets in order to maximize the 
     benefit to the AIT program.
     Cruise missile defense
        The budget request included no funds to begin 
     transitioning sensor technology from the Defense Advanced 
     Research Projects Agency (DARPA) to the Air Force for 
     insertion into the Airborne Warning and Control System 
     (AWACS) or the Joint Surveillance Target Attack Radar System 
     (JSTARS) for cruise missile defense.
       The House bill would authorize the budget request.
       The Senate amendment would authorize increases of $10.0 
     million to PE 27417F to begin the necessary upgrades to 
     AWACS, and $10.0 million to PE 27581F to begin necessary 
     upgrades to JSTARS.
       The conferees agree to authorize an increase of $3.0 
     million in PE 27581F to begin necessary upgrades to JSTARS 
     for cruise missile defense.
       Given the growing threat posed by cruise missiles, the 
     conferees continue to support development of a comprehensive 
     cruise missile defense architecture, integrated into DOD's 
     overall air and theater missile defense efforts. Because 
     counter cruise missile technologies have matured at DARPA, 
     and because DARPA funding to support key sensor technologies 
     ends in fiscal year 1998, the conferees strongly urge the Air 
     Force to begin to integrate these technologies into 
     operational platforms, specifically into the AWACS and JSTARS 
     platforms. The conferees expect the Air Force to assume these

[[Page H9329]]

     two important initiatives. To support these efforts, the 
     conferees encourage the Air Force to prepare expeditiously 
     the report on cruise missile defense directed in the 
     statement of managers accompanying the conference report on 
     H.R. 2266 (H. Rept. 105-265). The conferees understand that 
     the Air Force's report could conclude that the Air Force 
     should apply additional funds to cruise missile defense 
     upgrades to the AWACS or JSTARS programs during fiscal year 
     1998 beyond those approved in this Act. If that is the 
     conclusion of the report, the conferees would be willing to 
     entertain a request to reallocate funds within the AWACS or 
     JSTARS programs, or to reprogram funds from other activities.
     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $9,069.7 million for Defense-Wide, Research 
     and Development in the Department of Defense. The House bill 
     would authorize $9,611.0 million. The Senate amendment would 
     authorize $9,796.8 million. The conferees recommended an 
     authorization of $9,546.1 million. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

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     University research initiatives
       The budget request included $237.7 million in PE 61103D for 
     university research initiatives including $10.0 million for 
     the Defense Experimental Program to Stimulate Competitive 
     Research (DEPSCoR).
       The House bill would authorize a decrease of $13.0 million 
     in PE 61103D: an increase of $10.0 million for (DEPSCoR); and 
     a decrease of $23.0 million.
       The Senate amendment would authorize $20.0 million for 
     DEPSCoR within the amount of the budget request.
       The conferees agree to authorize an increase of $10.0 
     million in PE 61103D for DEPSCoR in addition to the $10.0 
     million in the amount of the budget request. The conferees 
     also agree to a reduction, without prejudice, of $20.0 
     million in PE 61103D.
     Next generation internet
       The budget request included $40.0 million in PE 62110E for 
     the Defense Advanced Research Projects Agency (DARPA) 
     component of the Next Generation Internet (NGI) program.
       The House bill would authorize an increase of $15.0 million 
     in PE 62110E for specific connectivity, functionality, 
     services, and software among the applications communities and 
     regional consortia to maximize the value of the services 
     deployed under the NGI. The House bill would also direct the 
     use of competitive procedures in the award of contracts, 
     grants, or other transactions under the program and would 
     encourage the use of cost-sharing where feasible.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.0 
     million in PE 62110E for the purposes discussed in the House 
     report (H. Rept. 105-132). The conferees endorse the NGI 
     program and support the concept of involving the applications 
     communities, including federal agencies, state and local 
     governments, academia, and the private sector, to incorporate 
     networking technologies developed under the program to 
     achieve capabilities beyond those of the current Internet 
     infrastructure. The conferees also support the formation of 
     cooperative agreements within the regional consortia 
     established under the program to leverage the knowledge, 
     skills, and methods of the individual members from 
     government, industry, and academia. The conferees encourage 
     DARPA to consider supporting, under the NGI program, industry 
     and university consortia investigating and demonstrating 
     ultra-high speed, optical time-division-multiplexed 
     technologies for networks and interchanges.
     Chemical and biological defense program
       The budget request included $530.9 million for the chemical 
     and biological defense program ($320.9 million for research, 
     development, test and evaluation activities and $210.0 
     million for procurement) and $61.0 million for the Defense 
     Advanced Research Projects Agency (DARPA) biological defense 
     program.
       The House bill would authorize an increase of $16.6 million 
     for the chemical/biological defense program in the following 
     activities: a $10.8 million increase in PE 62384BP to 
     continue the SAFEGUARD proof-of-concept multi-spectral sensor 
     program; a $1.5 million increase in PE 63384BP for vaccine 
     advanced development; a $858,000 increase in PE 64384BP for 
     vaccine development and a $5.0 million increase in PE 63884BP 
     to support on-going development efforts in detectors, 
     decontamination equipment, and protective equipment for the 
     Chemical-Biological Quick Reaction Force (CBQRF) and its 
     components.
       The Senate amendment would authorize an increase of $6.5 
     million for the chemical-biological defense research and 
     development program for the following activities: $2.0 
     million for the development of a joint service prototype 
     hybrid integrated sensor array for chemical and biological 
     point detection; $4.5 million to meet unfunded requirements 
     for biological detectors for the Chemical-Biological Incident 
     Response Force (CBIRF); would make $1.5 million available 
     from funds requested for PE 62383E for a study on the use of 
     antibodies as medical defenses against biological agents; and 
     would reduce the budget request for PE 62383E by $6.5 
     million. Additionally, the amendment would recommend that 
     $16.1 million of fiscal year 1997 funds, identified by the 
     Department of Defense as excess to the program because of the 
     inability to execute the assembly of biological integrated 
     defense systems (BIDS) until the end of fiscal year 1999, be 
     used instead for unfunded research, development and 
     procurement efforts in the chemical-biological defense 
     program, counterproliferation and including counterterrorist 
     efforts to protect against the use of weapons of mass 
     destruction.
       The conferees agree to authorize an increase of $12.4 
     million to meet shortfalls in the chemical and biological 
     defense program for research and development of detection 
     capabilities, to include the following: $10.5 million in PE 
     62384BP, of which $3.0 million shall be available for the 
     SAFEGUARD program; and a $2.0 million increase in PE 61384BP 
     to increase efforts in research and development of chemical/
     biological detection capabilities. The conferees also agree 
     to a $6.5 million reduction in PE 62383E.
       To close gaps and funding shortfalls in medical defenses 
     against biological agents, the conferees direct that $1.5 
     million in PE 63384BP and $858,000 in PE 64384BP be made 
     available for vaccine development efforts, and that $1.5 
     million in PE 62383E be made available to study the use of 
     therapeutic human antibodies as medical defenses against 
     biological agents. Additionally, the conferees direct the 
     Secretary of Defense to submit the report required by the 
     Senate report on the National Defense Authorization Act for 
     Fiscal Year 1997 (S. Rept. 104-267) on the utility and 
     possible benefits of this technology, by March 31, 1998.
       The conferees have reviewed the Department of Defense March 
     1997 annual report to Congress on the nuclear, biological, 
     and chemical defense program. The conferees understand that 
     the Department has responded to all recommendations in the 
     General Accounting Office's report NSIAD-96-102 ``Chemical 
     and Biological Defense: Emphasis Remains Insufficient to 
     Resolve Continuing Problems.'' In addressing the 
     recommendations of the GAO, the conferees believe that the 
     Department is now better prepared to address the 
     shortcomings that still exist in the U.S. armed forces' 
     chemical-biological defense posture.
       However, funding constraints in the Department's budget 
     request could delay modernization and affect the training and 
     readiness of the force. The conferees understand that the 
     Joint Senior Leaders Course and the Toxic Agent Leader 
     Training Course have been dropped from the Army Chemical 
     School's training course list because of funding constraints. 
     The conferees also understand that the Department lacks a 
     mechanism to provide adequate information on the current 
     status of chemical-biological defense training, equipment, 
     and readiness. The conferees strongly recommend the 
     incorporation of an assessment of chemical-biological defense 
     training and readiness into the unit readiness reporting 
     system and direct the Department of Defense to report to the 
     congressional defense committees on steps that will be taken, 
     in lieu of reinstating the training courses, to ensure that 
     chemical-biological defense specialists maintain their 
     expertise, and how units and senior leaders in the armed 
     forces will maintain their proficiency in chemical-biological 
     matters.
       The Secretary of Defense recommended in the Quadrennial 
     Defense Review that the Department increase funding by 
     approximately $1.0 billion over the program plan on 
     counterproliferation, particularly for protective measures 
     against chemical weapons. In response to that recommendation, 
     the conferees expect that increased funding provided in 
     fiscal year 1998 for chemical and biological defenses will be 
     utilized in accordance with requirements identified as 
     shortfalls by the Joint Staff and the Counterproliferation 
     Program Review Committee (CPRC). Additionally, the conferees 
     expect the fiscal year 1999 budget request, and subsequent 
     budget requests, to reflect the recommendations contained in 
     the QDR for increased funding levels for the chemical-
     biological defense program.
       Despite congressional direction contained in the National 
     Defense Authorization Act for Fiscal Year 1994 (Public Law 
     103-160) that management and oversight of the chemical and 
     biological warfare defense program and the chemical and 
     biological medical defense be conducted by a single executive 
     agent and program manager, the conferees understand from the 
     Counterproliferation Program Review Committee's May 1997 
     ``Report on Activities and Program for Countering 
     Proliferation and NBC Terrorism'' that `` * * * beginning in 
     FY98, [the Defense Advanced Research Projects Agency (DARPA) 
     biological warfare defense program] will no longer be 
     incorporated into the CBD [chemical-biological defense] 
     Program management and oversight structure.'' The conferees 
     direct the Secretary of Defense to ensure that the DARPA 
     biological warfare defense program is coordinated and 
     integrated under the program management and oversight of the 
     Department's chemical-biological defense program.
       The conferees understand that the Department's policies on 
     anthrax vaccination of U.S. armed forces and support for 
     other than U.S. armed forces are awaiting final approval, and 
     that these decisions will affect total funding, vaccine 
     production, and storage requirements. The conferees also note 
     the impending award of a prime systems contract to develop 
     new biological defense vaccines, pursue vaccine licensing, 
     and produce stockpile vaccines to meet the Department's 
     requirements.
       The conferees understand that the Department of Defense is 
     currently dependent upon a single source of supply for 
     permeable chemical protective garment materials used in the 
     joint service chemical protective suit and related chemical 
     protective garments, and believe that the Department of 
     Defense should consider taking those actions necessary to 
     qualify additional sources of supply for these materials. The 
     conferees direct the Secretary of the Army, as executive 
     agent for the chemical-biological defense program, to report 
     to the congressional defense committees on any plans to 
     qualify additional sources for these materials.
       The conferees direct the Secretary of Defense to address 
     the above issues as specific areas of interest in the next 
     annual report to Congress on the NBC defense program.
     Tactical technology
       The budget request included $157.3 million in PE 62702E for 
     tactical technology programs.
       The House bill would authorize a decrease of $43.9 million 
     in PE 62702E.
       The Senate amendment would authorize an increase of $3.0 
     million to provide for

[[Page H9342]]

     lethality demonstration and the definition of a tactical 
     configuration of the small low-cost interceptor device 
     (SLID).
       The conferees agree to authorize a decrease of $16.0 
     million in PE 62702E: a general decrease of $10.0 million; a 
     decrease of $3.0 million for the compact laser program; and a 
     decrease of $3.0 million for chemically specific detection. 
     The conferees also agree to authorize $3.0 million of funds 
     available in PE 62702E for facial recognition technology.
       The conferees urge the Defense Advanced Research Projects 
     Agency to fund the SLID program in a manner to provide for 
     the greatest likelihood of a rapid, successful transition to 
     the Army.
     Integrated command and control
       The budget request included $37.0 million in PE 62708E for 
     integrated command and control technology.
       The House bill would authorize an increase of $23.0 million 
     for flat panel display initiative/high definition systems.
       The Senate amendment would authorize an increase of $18.0 
     million for flat panel display technology.
       The conferees agree to authorize an increase of $12.0 
     million in PE 62708E for flat panel display technology. The 
     conferees recommend that the program place increased emphasis 
     on the demonstration of flat panel displays for various 
     applications by the military services in order to facilitate 
     the transition of the program to the services for military 
     applications.
     Materials and electronics technology
       The budget request included $192.1 million in PE 62712E for 
     materials and electronics technology.
       The House bill would authorize an increase of $7.5 million 
     in PE 62712E for 3-D microelectronics.
       The Senate amendment would authorize an increase of $15.5 
     million in PE 62712E: $1.0 million for hard carbon coatings; 
     $7.5 million for seamless high off-chip connectivity (SHOCC); 
     and $7.0 million for mixed mode electronics multitechnology 
     insertion (MIME).
       The conferees agree to authorize the following increases in 
     PE 62712E: $5.0 million for 3-D microelectronics; $1.0 
     million for hard carbon coatings; $6.0 million for SHOCC; 
     $7.0 for MIME; $6.0 million to continue the program for 
     applied research in extreme ultraviolet lithography and 
     fabrication of nanoelectronic structures as recommended in 
     the House report (H. Rept. 105-132); $4.0 million to 
     accelerate the development of life support trauma and 
     transport (LSTAT) and the joint service program for the test 
     of the LSTAT that is being led by the Army as recommended in 
     the House report (H. Rept. 105-132), and $3.0 million for the 
     development of technologies for cryogenic electronics and 
     high temperature superconductivity as recommended by the 
     House report (H. Rept. 105-132).
       With regard to the LSTAT program, the conferees agree with 
     the requirement in the House report (H. Rept. 105-132), which 
     directs the Secretary of the Army to submit a report on the 
     plan for completing the joint service test program and plans 
     for fielding the LSTAT and other advanced battlefield life 
     support and evacuation systems to the congressional defense 
     committees with the submission of the defense budget request 
     for fiscal year 1999.
     Explosives demilitarization technology
       The budget request included $12.2 million for the 
     explosives demilitarization program (PE 63104D).
       The House bill would authorize an increase of $3.0 million 
     to maintain the level of funding necessary to permit the 
     acceleration of promising technologies and the evaluation of 
     additional alternative technologies in the explosives 
     demilitarization program (PE 63104D) established in the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106).
       The Senate amendment included a provision (sec. 235) that 
     would direct the Secretary of Defense to conduct an explosive 
     munitions demilitarization demonstration program, and using 
     competitive procedures, conduct a demonstration using an 
     existing, commercially available blast chamber technology as 
     an alternative to open burning, open pit detonation of 
     munitions; require the Secretary of Defense to submit to 
     Congress, along with the fiscal year 2000 budget, a report on 
     the results of the demonstration program and assessment of 
     the relative benefits of the blast chamber technology with 
     regard to levels of emissions and noise, and a cost benefit 
     analysis of this technology. The provision would increase the 
     budget request for the explosives demilitarization technology 
     program by $6.0 million for the demonstration program and 
     reduce by $6.0 million the budget request for the Army 
     account for special equipment for user testing.
       The Senate recedes.
       The conferees agree to authorize an increase of $4.0 
     million for the munitions standardization, effectiveness and 
     safety program (PE 65805A) which shall be used for the 
     explosives demilitarization technology program (PE 63104D) to 
     maintain the level of funding necessary to permit the 
     acceleration of promising technologies and to evaluate 
     alternative technologies. The conferees understand that 
     commercial technology that utilizes blast chamber technology 
     is available as a potential alternative technology to 
     demilitarize old conventional ammunition. The successful 
     demonstration of this technology could reduce the Army's 
     reliance on open burning and open detonation.
       The conferees direct that, from the authorized funds 
     available to the program in fiscal year 1998, the Secretary 
     of Defense shall conduct a demonstration program utilizing 
     commercially available blast chamber technology and provide a 
     report to the congressional defense committees no later than 
     March 1, 1999 on the results of the demonstration program. 
     The program shall be conducted using competitive procedures. 
     The report shall include an assessment of the relative 
     benefits of utilizing a blast chamber technology and the open 
     burning, open pit detonation process with regard to the 
     levels of emissions and noise that results from the use of 
     these processes and a cost benefit analysis of this 
     technology.
     Counterterror technical support program
       The budget request included $34.8 million for the 
     counterterror technical support program.
       The House bill would authorize $41.8 million, a $7.0 
     million increase for safety devices and facial recognition 
     technology.
       The Senate amendment would authorize a $20.0 million 
     increase for research and development activities on 
     structural response and mitigation, counterterrorist 
     explosive research, demonstration of non-intrusive inspection 
     technologies and facial recognition technology.
       The conferees agree to authorize an increase of $3.0 
     million for the counterterror technical support program for 
     efforts to develop innovative technologies to protect U.S. 
     forces and infrastructure against acts of terrorism. The 
     conferees note that $3.0 million is available for the facial 
     recognition technology program within the defense tactical 
     technology program (PE 62702E).
       Collaborative efforts with allies who have demonstrated 
     capabilities to counter terrorist acts, such as Israel and 
     the United Kingdom, should remain a high priority for the 
     United States. The tragic deaths of U.S. forces in Saudi 
     Arabia as a result of terrorist attacks on structures where 
     U.S. armed forces lived and worked highlight the urgent need 
     for the Department of Defense (DOD) to examine options to 
     retrofit existing structures and to develop design guidelines 
     for new and existing structures. The conferees support recent 
     collaborative efforts between the United States, Israel, and 
     the United Kingdom, to strengthen existing structures against 
     terrorist and ballistic missile attacks.
       The budget request included $13.0 million in the 
     physical security equipment program (PE 63228D) to test 
     and evaluate commercial equipment for force protection. 
     The conferees believe that fiscal year 1998 funds in this 
     program should be used to evaluate commercially available 
     technology that may provide the DOD with options to 
     retrofit existing structures, which would provide 
     increased protection to U.S. forces against terrorist 
     attacks.
       While Congress has supported the funding for a Pulsed Fast 
     Neutron Analysis (PFNA) technology program in prior years, 
     the conferees are concerned about the Department's continued 
     failure to request funds for this activity. Based on issues 
     raised by a recent General Accounting Office report on the 
     PFNA system technology, the conferees agree with the 
     recommendations in the House report (H. Rept. 105-32) that 
     direct the Secretary of Defense and the Secretary of Treasury 
     to conduct an assessment of the operational requirements for 
     a PFNA cargo inspection system, and report to the Congress on 
     the results of that assessment and the other issues raised by 
     the House by December 31, 1997. Should there be a joint 
     recommendation to continue the program, the conferees direct 
     the Department to notify the congressional defense committees 
     of its intention to use fiscal year 1998 funds in this 
     program for that purpose.
     Domestic emergency response to threats of terrorist use of 
         weapons of mass destruction
       The budget request included $170.2 million for key 
     Department of Defense programs to counter paramilitary and 
     terrorist threats involving weapons of mass destruction. This 
     total included $49.5 million to improve emergency response 
     preparedness and coordination with state and local agencies 
     through First Responder training, interagency exercises and 
     technical assistance.
       The House bill would authorize increases of $2.0 million in 
     the counterterror technical support program (PE 63122D), $5.0 
     million in the chemical/biological defense program (PE 
     63884BP), and a total of $12.0 million in the 
     counterproliferation support program (PE 65160D) for 
     improvements in emergency response force equipment and 
     training for response to potential terrorist use of weapons 
     of mass destruction.
       The Senate amendment would authorize the budget request. 
     The amendment would also make available, from the 
     verification and control technology activity of the 
     Department of Energy budget for other defense activities, 
     $3.0 million for training and related activities to prepare 
     Federal, State, and local First Responders to work 
     effectively as part of the domestic emergency response 
     program.
       The House recedes.
       The National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201) directed the President to take immediate 
     action to enhance the capability of the Federal government to 
     prevent and respond to terrorist incidents involving weapons 
     of mass destruction, and to provide enhanced support

[[Page H9343]]

     to improve the capabilities of state and local emergency 
     response agencies to prevent and respond to such incidents at 
     both the national and local levels. The President's 
     assessment and those actions taken at the interagency level 
     and within the Department of Defense are detailed in the 
     President's January 1997 report to the Congress and in the 
     Department of Defense May 1997 report to Congress, ``Domestic 
     Preparedness Program in the Defense against Weapons of Mass 
     Destruction.''
       The conferees note the actions taken to date to enhance 
     emergency domestic preparedness and response to terrorist 
     nuclear, biological, or chemical attacks under the 
     Department's counterproliferation support program and the 
     chemical-biological defense program. The conferees support 
     the Department's budget request to continue these efforts in 
     domestic emergency response preparedness through First 
     Responder training and assistance to metropolitan area 
     authorities, improvement of the Department's rapid chemical 
     and biological response capabilities, and the conduct of 
     preparedness exercises in coordination with Federal, state, 
     and local agencies.
       Public Law 104-201 requires the Secretary of Defense to 
     establish and maintain at least one chemical-biological 
     domestic terrorism rapid response team. The conferees direct 
     the Secretary of the Army, as executive agent for the 
     domestic emergency response program, to ensure that the 
     plans, programs, and budget of the Chemical-Biological Quick 
     Reaction Force (CBQRF) and its components are reviewed to 
     ensure full coordination and integration of participating DOD 
     assets. The conferees also direct the Assistant to the 
     Secretary of Defense (Nuclear, Chemical, and Biological 
     Defense Program) to ensure that all research, development, 
     and acquisition efforts in support of the CBQRF and its 
     components are fully integrated and coordinated within the 
     Department's chemical and biological defense program.
       The conferees note that an interagency training strategy is 
     being developed that would initially focus training under the 
     domestic emergency response preparedness program on 
     professional emergency response organizations in the 27 
     cities and metropolitan areas identified by the Federal 
     Bureau of Investigation as being at particularly high risk, 
     and would complete First Responder training for 126 major 
     metropolitan areas and cities within three years. The 
     training program and priorities must be coordinated with 
     State emergency management directors. The conferees agree 
     with the overall need to establish training priorities, but 
     recommend that emphasis also needs to be placed on training 
     the local volunteer emergency First Response organizations 
     that make up the majority of the nation's emergency response 
     forces. The conferees also believe that in addition to the 
     ``train the trainer'' approach being used in the existing 
     program, an exportable training package should be developed 
     that is oriented toward the training of volunteer emergency 
     First Responders.
       The conferees endorse the use of training exercises to test 
     and improve consequence management response capabilities, but 
     believe that the exercise site requirements should be based 
     on the training and exercise needs of the agencies to be 
     exercised, site capabilities, frequency of use, and proximity 
     to participating agencies. The conferees encourage the 
     development of an overall coordinated training exercise 
     strategy similar to that developed for training by the Senior 
     Interagency Group.
       Responding to domestic emergencies has been identified in 
     the report of the Quadrennial Defense Review (QDR) as an 
     appropriate mission for the National Guard. Consistent with 
     the President's January 1997 report to the Congress and the 
     May 1997 Department of Defense report on ``Domestic 
     Preparedness Program in the Defense against Weapons of 
     Mass Destruction,'' the conferees direct the Secretary of 
     Defense to report to the congressional defense committees 
     on the status of any plans for assigning the National 
     Guard a role in countering chemical and biological 
     terrorism in the United States. The report should define 
     any such missions of the National Guard and how that role 
     complements other Federal, State, and local authorities 
     with similar responsibilities; the cost for developing the 
     capability for National Guard personnel to train State and 
     local First Responders; the cost for chemical and 
     biological technology and equipment; and the need to 
     develop appropriate response plans, while avoiding 
     unnecessary duplication.
       The conferees direct the Secretary of Defense, in 
     coordination with the Director of the Federal Emergency 
     Management Agency and the Director of the Federal Bureau of 
     Investigation, to provide an annual assessment of progress in 
     the domestic emergency response preparedness program. The 
     report should be submitted to the congressional defense 
     committees beginning with the fiscal year 1999 budget request 
     and extending through fiscal year 2001.
     Counterproliferation support program
       The budget request included $65.3 million for the 
     counterproliferation support program (PE 63160D).
       The House bill would authorize an increase of $3.0 million 
     to continue the counterpro- liferation mission analysis and 
     planning system (CAPS).
       The Senate amendment would authorize an increase of $20.0 
     million to the budget request for the following activities: 
     $3.0 million for the high frequency active auroral research 
     program (HAARP), $1.0 million for development of a portable 
     trace element detection system; $6.0 million to continue the 
     SAFEGUARD proof-of-concept multi-spectral sensor program; and 
     $10.0 million to continue the CAPS program. In addition, the 
     amendment would recommend a $7.0 million increase to the 
     budget request for U.S. Special Operations Command (USSOCOM) 
     operations and maintenance for equipment to detect, and 
     destroy underground facilities, and for training activities 
     to destroy, render safe, transport or recover weapons of mass 
     destruction from deep underground structures.
       The conferees agree to authorize an increase of $10.0 
     million to the budget request for the counterproliferation 
     support program (PE 63160D) to continue CAPS ($7.0 million) 
     and HAARP ($3.0 million). The conferees also agree to a $7.0 
     million increase to the budget request for USSOCOM operations 
     and maintenance for WMD equipment and training.
       The conferees agree to a separate provision, described 
     elsewhere in this report, that would allow the Secretary of 
     Defense to reprogram up to $50.0 million from amounts 
     authorized for fiscal year 1998 for unfunded shortfalls in 
     key counterproliferation capabilities or other areas where 
     more counterproliferation progress can be achieved with 
     additional funding.
       In addition to the reprogramming notifications required by 
     law, the conferees direct the Secretary of Defense to notify 
     the congressional defense committees 30 days in advance of 
     its intent to obligate or expend fiscal year 1998 funds not 
     authorized by this Act for counterproliferation activities. 
     The notification shall include the purpose for which the 
     funds are to be utilized, and a certification that the 
     activity addresses a shortfall in existing and programmed 
     capabilities to counter the proliferation of weapons of mass 
     destruction (WMD) or their means of delivery, as identified 
     by the Commanders in Chief (CINCs) and the 
     Counterproliferation Program Review Committee (CPRC).
     Ballistic Missile Defense Organization funding
       The budget request included approximately $2.6 billion for 
     the Ballistic Missile Defense Organization (BMDO) for 
     research, development, test, and evaluation (RDT&E). The 
     budget request also included $386.4 million in procurement 
     funds formerly managed by BMDO that were transferred to the 
     military services. As addressed elsewhere in this report, the 
     conferees have agreed to include a legislative provision 
     requiring that these procurement funds be transferred back to 
     BMDO. In addition, the conferees have agreed to specifically 
     authorize these procurement funds in their original BMDO 
     program elements. Consistent with these changes, the 
     following direction addresses these fiscal year 1998 
     procurement funds as part of the budget request for BMDO. 
     Funding direction regarding BMDO military construction is 
     located elsewhere in this report. Specific programmatic and 
     funding guidance is provided below.

                                             BMDO FUNDING ALLOCATION                                            
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                                                       Total    
         Program element          Budget request    SASC change     HNSC change    Conf. change     authorized  
----------------------------------------------------------------------------------------------------------------
RDT&E:                                                                                                          
    Support Technology..........           249.5          +188.4           +35.0          +171.0           420.5
    THAAD \1\...................           556.1          -202.7           +45.0          -150.0           406.1
    Navy Lower Tier.............           267.8  ..............           +22.0           +22.0           289.8
    Navy Upper Tier.............           194.9           +80.0          +150.0          +150.0           344.9
    MEADS.......................            48.0  ..............  ..............  ..............            48.0
    BPI.........................            12.9            +5.0       \2\ -12.9            +3.5            16.4
    NMD.........................           504.1          +474.0          +474.0          +474.0           978.1
    Joint TMD...................           542.6           +34.0       \2\ -18.7           +39.0           581.6
    PAC-3 EMD...................           206.1  ..............  ..............  ..............           206.1
    Cooperative BMD.............  ..............  ..............          +123.1  ..............  ..............
Procurement:                                                                                                    
    TMD-BM/C3...................            20.1  ..............  ..............  ..............            20.1
    Navy Lower Tier.............            15.4  ..............  ..............  ..............            15.4
    PAC-3.......................           349.1  ..............  ..............  ..............           349.1
                                 -------------------------------------------------------------------------------

[[Page H9344]]

                                                                                                                
      BMDO Total................         2,966.6          +578.7          +817.5          +709.5         3,676.1
----------------------------------------------------------------------------------------------------------------
\1\ Following submission of the budget request, the Department of Defense submitted a revised fiscal year 1998  
  budget request for THAAD of $353.4 million for Dem/Val and no funds for EMD.                                  
\2\ Transfer to Cooperative BMD.                                                                                

                       low cost launch technology

       The budget request included no funds to support low cost 
     launch technologies, such as pressure fed engine technology.
       The House bill would authorize an increase of $15.0 million 
     in PE 63302F for development of the Scorpius low cost launch 
     concept.
       The Senate amendment would authorize an increase of $10.0 
     million in PE 63173C for low cost launch technology 
     development, including the Scorpius concept.
       The conferees agree to authorize an increase of $5.0 
     million in PE 63173C and an increase of $5.0 million in PE 
     63401F for low cost launch technology, including the Scorpius 
     and Excalibur concepts.


               theater high altitude area defense system

       The budget request included $556.1 million for the Theater 
     High Altitude Area Defense (THAAD) program, of which $294.6 
     million was included in PE 63861C and $261.5 million was 
     included in PE 64861C. The Department of Defense, after an 
     analysis of the THAAD program by the Quadrennial Defense 
     Review, submitted an amended budget request of $353.4 million 
     in PE 63861C and no funding in PE 64861C.
       The House bill would authorize the original budget request 
     in PE 63861C and $306.5 million in PE 64861C.
       The Senate amendment would authorize $353.4 million in PE 
     63861C and no funds for THAAD in PE 64861C.
       The conferees agree to authorize $406.1 million in PE 
     63861C for THAAD and no funds in PE 64861C.
       The conferees express their continued strong support for 
     THAAD and believe that fielding THAAD as expeditiously as 
     possible is a matter of highest priority.
       The conferees understand that the funding added for THAAD 
     demonstration and validation will be used for extensive risk 
     reduction activities to put the program on sounder technical 
     and programmatic footing when it enters engineering and 
     manufacturing development (EMD) in fiscal year 1999.
       The conferees also support DOD efforts to contain program 
     cost growth that could result from schedule delays and 
     technical complications. The conferees expect the Secretary 
     of Defense to review the full range of cost control options 
     applicable to the EMD phase of the program, including, but 
     not limited to, options involving competition and leader-
     follower. The conferees direct the Secretary of Defense to 
     submit a report on the results of this review to the 
     congressional defense committees by March 15, 1998.
       The conferees continue to note their concern over long 
     delays in the THAAD program. In the wake of the Gulf War, 
     Congress directed the deployment of effective theater missile 
     defenses at the earliest possible date. The THAAD program was 
     initiated in calendar year 1992 and deployment originally 
     planned for the mid-1990s. Yet BMDO now supports a 14-year 
     development program, with a first unit equipped (FUE) in 
     calendar year 2006, arguing that a 12-year development 
     program entails excessive programmatic and schedule risks.
       The conferees understand that the most recent THAAD 
     schedule supported by BMDO includes a number of opportunities 
     to accelerate the program, depending on the technical 
     progress. The conferees continue to believe that rapid 
     deployment is critical to meet well understood warfighter 
     requirements, and that every reasonable effort should be made 
     to achieve an FUE in calendar year 2004. The conferees direct 
     the Secretary of Defense to take all appropriate budgetary 
     and programmatic steps for fiscal year 1998 to ensure that 
     the program can be accelerated if opportunities arise to do 
     so.
       The conferees are also concerned that a delay in the 
     program will adversely affect THAAD EMD and procurement 
     funding in the FYDP. The conferees direct the Secretary of 
     Defense to submit a FYDP that fully funds a THAAD program 
     oriented toward the earliest possible deployment, consistent 
     with moderate program risk.


                     navy upper tier (theater wide)

       The budget request included $194.9 million in PE 63868C for 
     the Navy Upper Tier theater missile defense system.
       The House bill would authorize an increase of $150.0 
     million for the Navy Upper Tier program.
       The Senate amendment would authorize an increase of $80.0 
     million for the Navy Upper Tier program.
       The Senate recedes.
       The conferees are concerned that the Department of Defense 
     still has not thoroughly assessed the feasibility of 
     accelerating the currently planned Navy Upper Tier deployment 
     date of fiscal year 2008. Noting numerous administration 
     statements attaching high priority to TMD programs, the 
     conferees direct the Secretary of Defense to report to the 
     congressional defense committees no later than February 15, 
     1998, on the cost and technical feasibility of options for a 
     more robust Navy Upper Tier flight test program, the earliest 
     technically feasible deployment date, and costs associated 
     with such a deployment date.


                        national missile defense

       The budget request included $504.1 million in PE 63871C for 
     the National Missile Defense (NMD) program. Following the 
     budget submission, and pursuant to the Quadrennial Defense 
     Review, the Secretary of Defense requested that the NMD 
     budget request be increased by $474.0 million for fiscal year 
     1998.
       The House bill and Senate amendment would authorize an 
     increase of $474.0 million for the NMD program.
       The conferees agree to authorize an increase of $474.0 
     million for the NMD program.
       The conferees have expressed concern for some time that the 
     NMD program has been underfunded. The Department of Defense 
     has acknowledged this funding shortfall and recommended an 
     increase of $474.0 million in fiscal year 1998, and 
     approximately $2.3 billion over the years of the Future Years 
     Defense Program (FYDP). The conferees note that this does not 
     include any funding for the actual deployment of an NMD 
     system.
       Although the conferees are pleased that the Secretary of 
     Defense has sought to rectify NMD funding shortfalls, they 
     are disappointed that it has taken so long. Even with 
     significant congressional increases over the last two years, 
     the NMD program remains high risk, largely due to the 
     administration's failure to adequately fund robust testing 
     activities. Unfortunately, the addition of $474.0 million in 
     fiscal year 1998 will do little in the near-term to 
     compensate for this problem. The conferees are concerned by 
     the lack of detail accompanying the Secretary of Defense's 
     request to increase the NMD program budget by $2.3 billion 
     over the FYDP. In addition, the conferees are not satisfied 
     with the degree of information provided to date on how past 
     NMD funding increases have been spent. Therefore, the 
     conferees direct the Secretary of Defense to submit a report 
     to the congressional defense committees by February 15, 1998, 
     providing a detailed accounting of how NMD funds have been 
     spent since the beginning of fiscal year 1996 and a detailed 
     plan for the allocation of NMD funding in the FYDP. In 
     addition, the Secretary shall provide a detailed description 
     of the cost estimating and cost control mechanisms in place 
     within DOD for the NMD program, and an assessment of whether 
     they are adequate.
       The conferees believe that BMDO should continue to 
     understand issues associated with sea-based NMD options. The 
     conferees are aware of analysis that shows that a version of 
     the Navy Upper Tier TMD system could be employed in an NMD 
     role. Therefore, the conferees direct the Director of BMDO to 
     submit a report to the congressional defense committees by 
     February 15, 1998, describing whether and how the Navy Upper 
     Tier program could be upgraded in the future to provide a 
     limited NMD capability. The report should address the 
     technical issues associated with a sea-based NMD option as 
     well as costs associated with such a concept. The report 
     should also address whether and, if so, how a sea-based NMD 
     system could be integrated into and supplement a ground-based 
     NMD system, whether and, if so, how a sea-based system would 
     provide needed additional capabilities in support of the 
     requirements for the existing NMD program, and whether such a 
     system would comply with the ABM Treaty.


             cooperative ballistic missile defense program

       The budget request included $38.7 million for the Arrow 
     Continuation Experiments/Arrow Deployability (ACES/ADP) 
     program (PE 63872C), $12.9 million for the Unmanned Aerial 
     Vehicle Boost Phase Intercept (UAV BPI) program (PE 63870C), 
     and $16.5 million for the Tactical High Energy Laser (THEL) 
     program (PE 63308A), all of which are U.S.-Israeli 
     cooperative missile defense programs. The budget request 
     included no funding for the Russian American Observation 
     Satellite (RAMOS) program and the Active Plasma Experiment 
     (APEX) program, both of which are cooperative Russian-
     American programs.
       The House bill would authorize $123.1 million in a new BMDO 
     program element (63XXXC) for cooperative international BMD 
     programs, including $48.7 million for the Arrow program, an 
     increase of $10.0 million; the budget request for the UAV BPI 
     program; $38.2 million for THEL, of which $15.0 million 
     was a funding increase and another $6.7 million was to be 
     funded by BMDO administrative accounts; and $30.0 million 
     for RAMOS and APEX.
       The Senate amendment would authorize $53.7 million for 
     Arrow in PE 63872C, an increase of $15.0 million; $17.9 
     million for UAV BPI in PE 63870C, an increase of $5.0 
     million;

[[Page H9345]]

     $51.5 million for THEL in PE 63308A, an increase of $35.0 
     million; and no funding for RAMOS or APEX.
       The conferees agree to authorize $50.7 million for Arrow in 
     PE 63872C, an increase of $10.0 million; $16.4 million for 
     UAV BPI in PE 63870C, an increase of $3.5 million; $51.0 
     million for THEL in PE 63308A, an increase of $34.5 million; 
     $13.0 million for RAMOS in PE 63173C; and $8.0 million for 
     APEX in PE 63173C.
       The House recedes on its initiative to create a new 
     cooperative BMD PE for fiscal year 1998. A legislative 
     provision to create a new cooperative BMD program element for 
     fiscal year 1999 is described elsewhere in this report. The 
     conferees expect that these programs and other appropriate 
     programs will be managed through this new cooperative BMD 
     program element.


                           SPACE-BASED LASER

       The budget request included $28.9 million in PE 63173C for 
     the Space Based Laser (SBL) program.
       The House bill would authorize the budget request for the 
     SBL program.
       The Senate amendment would authorize an increase of $118.0 
     million for the SBL program.
       The conferees agree to authorize an increase of $98.0 
     million for the SBL program, for a total of $126.9 million in 
     fiscal year 1998.
       The conferees strongly endorse the recommendation of BMDO's 
     SBL Independent Review Team (IRT) to proceed on a low risk 
     path leading to the launch of an ABM Treaty compliant 
     Readiness Demonstrator (RD) in fiscal year 2005. In a letter 
     of August 15, 1997 to the Senate Majority Leader, the 
     Secretary of Defense confirmed that SBL technology ``has 
     reached a level of maturity enabling us to focus on 
     integration issues that could lead to a future space 
     demonstration of a sub-scale vehicle.'' The conferees believe 
     that such an SBL-RD can be developed and launched without 
     violating the ABM Treaty. Proceeding with an SBL-RD will not 
     commit the United States to development or deployment of an 
     operational SBL system, but will preserve this option for 
     future consideration.
       The conferees support the management structure that has 
     been established for the SBL program, with the Air Force 
     acting as the executive agent for BMDO, but believe that the 
     Air Force must program a share of the funding needed to 
     develop and launch the SBL-RD. The conferees understand that 
     the Air Force leadership is committed to such a cost-sharing 
     arrangement and look forward to this commitment being 
     reflected in the fiscal year 1999 budget request and in 
     future Air Force Program Objective Memorandum (POM) 
     submissions. The conferees also understand that the Secretary 
     of Defense is considering options for increasing funding for 
     the SBL program in the BMDO budget. The conferees recognize 
     that full funding of the SBL-RD program will allow a much 
     more efficient and lower risk program. Therefore, the 
     conferees strongly urge the Secretary of Defense to explore 
     all possible means of including the full SBL-IRT recommended 
     funding profile for a fiscal year 2005 launch in the combined 
     BMDO and Air Force Future Years Defense Program (FYDP), 
     starting with the fiscal year 1999 budget request.
       The conferees direct that all funds authorized to be 
     appropriated for the SBL program in fiscal year 1998 be 
     managed with the principal objective of developing an SBL-RD 
     capable of being launched in fiscal year 2005. The conferees 
     further direct that all funds authorized to be appropriated 
     in fiscal year 1998 for the SBL program be directly executed 
     by the Commander of the Air Force Space and Missile Systems 
     Center (SMC).
       The conferees recognize that the Commander of SMC may 
     recommend that some limited amount of critical and 
     potentially high payoff SBL technology research and 
     development be continued even if it does not directly support 
     the SBL-RD. However, due to the overarching priority of 
     launching the SBL-RD in fiscal year 2005, the conferees 
     direct that obligation of SBL funds for such activities be 
     limited, and only occur following consultation with the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives.
       The conferees direct the Commander of SMC to establish 
     promptly an SBL-RD baseline, to include a set of technical 
     objectives and requirements, a contracting strategy, a system 
     design, a program schedule, and a funding profile that would 
     support a launch in fiscal year 2005. The conferees 
     understand that the SBL-IRT focused primarily on a single 
     SBL-RD design. However, the conferees support the steps taken 
     by the Commander of SMC to rapidly assess technical and 
     contractual options that may allow a treaty compliant SBL-RD 
     to be developed and launched more rapidly and affordably. To 
     ensure that the focus of the program remains on a fiscal year 
     2005 launch, the conferees expect to be consulted prior to 
     the adoption of any excursions from the SBL-IRT recommended 
     baseline.
       The conferees note that the SBL-IRT concluded that a new 
     integrated test facility is an essential and relatively long-
     lead element of the SBL-RD effort. Therefore, the conferees 
     direct the Commander of SMC to proceed expeditiously in 
     fiscal year 1998 with the selection of a site for such a 
     facility. The Commander of SMC shall include the 
     requirements, costs, and schedule for this facility in the 
     SBL-RD baseline, as well as an assessment of the cost 
     effectiveness of continuing to operate other SBL test 
     facilities such as the one at Capistrano, California.
       The conferees direct the Secretary of Defense to submit a 
     report on the status of the SBL-RD baseline, and related 
     issues, to the congressional defense committees by March 1, 
     1998.
     Strategic environmental research and development program
       The budget request included $54.9 million in PE 63716D for 
     the Strategic Environmental Research and Development Program 
     (SERDP).
       The House bill would authorize an increase of $3.0 million 
     in PE 63716D to pursue projects that focus on the elimination 
     of toxic materials and solvents from explosives and other 
     energetic materials.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million in PE 63716D for the purpose of developing 
     environmentally benign energetic materials.
     Advanced electronics technologies
       The budget request included $277.0 million in PE 63739E for 
     advanced technology development of a variety of electronics 
     technologies.
       The House bill would authorize an increase of $6.0 million 
     for research in extreme ultraviolet (EUV) lithography and 
     fabrication of nanoelectronic structures and an increase of 
     $15.0 million for the transition of the x-ray lithography 
     program from the Defense Advanced Research Projects Agency 
     (DARPA) to the Navy.
       The Senate amendment would authorize an increase of $23.0 
     million to continue the proximity x-ray lithography program 
     and an increase of $2.0 million to complete the point-source 
     x-ray lithography program in fiscal year 1998. The Senate 
     amendment would also decrease by $3.0 million the amount of 
     funding authorized in project MT-06.
       The conferees agree to authorize an increase of $18.0 
     million for the proximity x-ray lithography program and an 
     increase of $2.0 million to complete the point-source x-ray 
     program in fiscal year 1998. The conferees also agree to 
     decrease by $4.0 million the amount authorized for project 
     MT-06.
       The conferees agree to authorize an increase of $6.0 
     million in PE 62712E for EUV lithography as discussed 
     elsewhere in the Statement of Managers for the National 
     Defense Authorization Act for Fiscal Year 1998.
       The conferees endorse the views expressed in the House 
     report (H. Rept. 105-132) regarding the need to ensure a 
     smooth transition of the proximity x-ray lithography program 
     from DARPA to the Navy and the private sector. The conferees 
     direct, therefore, that Naval Air Systems Command be 
     appointed executive agent for the program and that all funds 
     expended for research and development of proximity x-ray, and 
     related technologies, be coordinated through and meet the 
     program priorities of the Naval Air Systems Command and the 
     Naval Research Laboratory. The conferees urge the Navy to 
     coordinate research in cross-cutting technologies between the 
     proximity x-ray program, and related technologies, and the 
     DARPA sub-tenth micron advanced lithography program. The 
     conferees endorse the Senate report requirement (S. Rept. 
     105-29) that the Navy prepare and submit a plan to 
     expeditiously complete the transition of the program to 
     industry with fieldable technology. The plan must be 
     submitted to the congressional defense committees no later 
     than 180 days after the date of enactment of this Act.
     Electronic commerce resource centers
       The budget request included $14.9 million in PE 63753S for 
     electronic commerce resource centers (ECRC).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $3.0 
     million in PE 63753S for the establishment of a new ECRC.
       The conferees agree to authorize an increase of $6.0 
     million in PE 63753S: $3.0 million for the establishment of a 
     new center, as discussed in the Senate report (S. Rept. 105-
     29); and $3.0 million for the establishment of an additional 
     center. The conferees direct that all applicable competitive 
     and merit-based procedures be used in the award of contracts, 
     grants, or other agreements under this program, and that 
     cost-sharing requirements for non-federal participants be 
     utilized where appropriate.
     Land warfare technologies
       The budget request included $82.58 million in PE 63764E for 
     land warfare technologies advanced technology development.
       The House bill would authorize an increase of $6.6 million 
     in PE 63764E for the active structural control program and 
     $14.0 million for the DP-2 vectored thrust program. The House 
     bill would also authorize a $9.0 million reduction in PE 
     63764E.
       The Senate amendment would authorize an increase of $4.4 
     million for the active structural control program.
       The conferees agree to authorize an increase of $5.4 
     million for the active structural control program. The 
     conferees also agree to a decrease of $5.0 million in PE 
     63764E for the small unit operations program.
       The conferees are aware of recent progress in the 
     activities related to the DP-2 vectored thrust program. The 
     Office of Naval Research has recently sponsored the vectored 
     thrust program and prior year funds were transferred from the 
     Defense Advanced Research Projects Agency for this purpose. 
     The

[[Page H9346]]

     conferees encourage the Navy to reprogram additional funds to 
     support this program should initial testing prove successful.
     Defense Reconnaissance Support Activities
       The budget request included $49.4 million in PE 35159I for 
     Defense Reconnaissance Support Activities.
       The House bill would direct the Department of Defense to 
     discontinue, not later than October 1, 1999, the Defense 
     Space Reconnaissance Program (DSRP) and close the Defense 
     Space Program Office (DSPO).
       The Senate amendment contained no such direction and would 
     authorize the budget request.
       The House recedes.
       The conferees agree that there appears to be an overly 
     bureaucratic management of space reconnaissance support to 
     military operations. The DSPO was established in 1981 to 
     provide management support and oversight of programs which 
     improve satellite reconnaissance support to the operational 
     military commander. DSPO was established as an overt liaison 
     between the then unacknowledged National Reconnaissance 
     Office (NRO) and the military services. After public 
     acknowledgment of the NRO, the Director of the NRO: 
     (1) established direct support to military operations as a 
     core function of the Office; and (2) created the NRO 
     position of Deputy Director, Military Support to manage 
     this function and the DSPO organization.
       The conferees believe the Department needs to review the 
     need for continuing the DSPO in light of the NRO's public 
     acknowledgment and its stated military support mission. 
     Further, the conferees believe that the position of Deputy 
     Under Secretary of Defense for Space provides the additional 
     civilian oversight necessary to ensure the effective 
     application of space support to the military services.
       Therefore, the conferees believe the Secretary of Defense 
     should determine whether there is a need to retain the DSPO 
     management organization and the DSRP program it manages. The 
     conferees note that such a determination could benefit from 
     the advice of the Task Force on Defense Reform. The conferees 
     direct the Secretary to report to the congressional defense 
     and intelligence committees on the results of his 
     determination by March 1, 1998.
     Special operations tactical systems development
       The budget request included $73.1 million to support 
     special operations tactical systems development (PE 
     116404BB).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $2.7 
     million to support special operations tactical systems.
       The conferees agree to authorize the transfer of $36.4 
     million from special operations shipbuilding procurement to 
     the advanced SEAL delivery system (ASDS) to address funding 
     shortfalls. The conferees are concerned about the significant 
     problems associated with development and management over the 
     life of the ASDS program. The conferees have been notified of 
     the program shortfalls and corrective actions implemented by 
     the Navy to bring this program back on track. The conferees 
     agree to support the Navy request to use available 
     procurement funds to support proposed corrective actions and 
     expect the Navy to improve its oversight of this important 
     program. The conferees are aware that a realignment of funds 
     will be made in the fiscal year 1999 budget request to 
     complete ASDS-1. The conferees direct that, prior to February 
     15, 1998, the Secretary of the Navy report to the 
     congressional defense committees on the total projected costs 
     of the ASDS, the estimated date of construction completion, 
     and adjusted plans for sea trials and initial operating 
     capability. In addition, the report shall include the Future 
     Years Defense Program funding for the ASDS program.
       The conferees agree to authorize a total of $109.5 million 
     in PE 116404BB.
     Special operations intelligence systems development
       The budget request included $4.9 million to support special 
     operations intelligence systems development.
       The House bill would authorize an increase of $3.0 million 
     to support the mission familiarization virtual reality 
     project and an additional increase of $5.0 million for the 
     special operations forces intelligence vehicle.
       The Senate amendment would authorize an increase of $4.0 
     million to develop the joint threat warning system.
       The conferees agree to authorize an increase of $6.0 
     million for special operations system development. Of this 
     amount, $3.0 million is for the special operations forces 
     intelligence vehicle and $3.0 million is for the joint threat 
     warning system.


                       ITEMS OF SPECIAL INTEREST

     Army research institute
       The conferees note the continuing needs of the Army for 
     analyses related to personnel recruitment and training as 
     well as issues related to gender and racial integration. The 
     conferees note the studies in these areas carried out by the 
     Army Research Institute and urge the Army to consider its 
     requirements for further research before taking action to 
     reduce further the activities of the Institute.
     Aviation advanced technology
       The budget request included $31.3 million for aviation 
     advanced technology in PE 63003A. The conferees encourage the 
     Army, with the funds available, to consider exploring the 
     potential operational value and key technical issues related 
     to an integrated manned and unmanned aerial vehicle scout 
     team.
     BOL expendable dispenser system
       The conferees are aware of the important survivability 
     enhancement that the BOL expendable dispenser system provides 
     our operational F-14 aircraft, and the potential capability 
     that the system may provide for other aircraft.
       The Congress provided approximately $18.0 million in fiscal 
     year 1997 for final testing and qualification of the BOL on 
     the F/A-18C/D aircraft. The conferees understand that 
     progress in testing and qualification has been slow, despite 
     the Navy's expressed desire to accelerate the program for the 
     F/A-18C/D. The conferees direct the Secretary of the Navy to 
     report to Congress with the submission of the fiscal year 
     1999 budget on the results of the Navy's assessment and 
     intentions regarding qualification and potential fielding the 
     BOL system on the F/A-18C/D aircraft.
     Department of Defense science and technology program
       Today, U.S. military forces have the capabilities to deploy 
     anywhere in the world, sustain forward presence indefinitely, 
     and win decisively on any battlefield. Those capabilities are 
     a direct result of investments in research and technology 
     sustained over the last 50 years. Such investments have 
     played a crucial role in the development of advanced 
     technologies and in the education and training of scientific 
     personnel required to support the technological advances 
     necessary for maintaining military superiority.
       The conferees note with concern the continuing reduction in 
     the funding in real terms for science and technology programs 
     in the Department of Defense, especially in the programs 
     of the services. Because military forces will be smaller 
     in the future, effective application of technology will be 
     even more critical for battlefield superiority. 
     Investments in defense science and technology programs 
     should be strengthened in recognition of this reality. The 
     conferees urge the Department to include a robust level of 
     funding for science and technology programs in the request 
     for fiscal year 1998.
     High temperature superconductor power applications
       The conferees understand that the Navy is pursuing large-
     scale applications of high temperature superconductors (HTS) 
     for electric drive ship propulsion and other applications. 
     The conferees also note that the Submarine Technology 
     Assessment Panel, commissioned by the Assistant Secretary of 
     the Navy (Research, Development and Acquisition), recommended 
     in its final report that the Navy focus research and 
     development efforts to ensure the maturity of the 
     superconducting technology and the incorporation of electric 
     drive into a submarine design as soon as feasible. In light 
     of the initiation of the Navy development and production of 
     the New Attack submarine, SC-21 and CV(X), and the progress 
     realized by the commercial sector in the development and 
     application of this technology and its potential benefits, 
     the conferees encourage the Navy to consider this technology 
     for widespread use in propulsion and auxiliary equipment. The 
     conferees direct that Secretary of the Navy to submit a 
     report to the congressional defense committees, no later than 
     March 1, 1998, that describes the results of the tests 
     conducted on the prototype HTS motor.
     Improving collaboration between the Department of Defense and 
         the Department of Energy laboratories
       The conferees endorse the direction given on pages 425 and 
     426 of the Senate report (S. Rept. 105-29) regarding the 
     establishment of a pilot program proposal for direct 
     collaboration between the Department of Defense and the 
     Department of Energy laboratories and sites. However, in 
     order to provide for a more focused program, the conferees 
     direct that the Under Secretary of Defense for Acquisition 
     and Technology need only work in consultation with the 
     Assistant Secretary of Energy for Defense Programs in 
     preparing the pilot proposal.
     Interferometric synthetic aperture radar
       Forward deployed U.S. armed forces have a need for up-to-
     date and highly accurate maps that provide three-dimensional 
     location of targets, including altitude, latitude, and 
     longitude, and for reconstruction of terrain in a three-
     dimensional setting for planning combat missions. The 
     conferees understand that an airborne interferometric 
     synthetic aperture radar (IFSAR) has the potential to provide 
     imagery of one foot resolution and digital terrain elevation 
     data (DTED) at DTED level 4.
       The conferees understand that the Army and the Defense 
     Advanced Research Projects Agency recently demonstrated an 
     airborne IFSAR during operations in support of U.S. ground 
     forces in Bosnia. The test system is relatively small and for 
     test purposes was flown on a business jet, which proved 
     satisfactory in Bosnia. To operate in a major regional 
     contingency, however, U.S. armed forces would require a 
     larger, more capable system, flying at higher altitudes.
       The conferees direct the Secretary of Defense and the 
     Intelligence community to study the costs, feasibility, and 
     potential capability gains of placing an IFSAR on a U-2 or 
     high altitude endurance unmanned aerial vehicle, and to 
     report the results of this analysis to the congressional 
     defense committees with the submission of the fiscal year 
     1998 budget request.

[[Page H9347]]

     Naval biodynamics laboratory data bank
       For nearly thirty years, the NBDL focused on the intensive 
     test, study, and analysis of the human body's response to the 
     trauma of crashes, and developed a national data bank of 
     collective human crash response information based on 
     approximately 3,500 crash tests using live human subjects. In 
     1996, the NBDL ceased operations as a result of previous 
     decisions to close the laboratory, but was not able to 
     consolidate and safely store its research information in a 
     consistent, useful data bank format. The conferees believe 
     that the effort spent in amassing the unique human response 
     data by the NBDL should not be lost. Accordingly, the 
     conferees direct the Secretary of the Navy to develop a plan 
     that establishes a national crash survival data bank that 
     will safeguard the integrity of the data gathered by the NBDL 
     and to submit a report on the plan and the funding required 
     to establish the data bank with the fiscal year 1999 
     Department of Defense budget request.
     Strategic systems industrial capabilities
       The Department of Defense has consistently highlighted the 
     need to maintain certain industrial base skills and 
     technologies unique to strategic programs. The conferees 
     support the efforts that the Department and the services have 
     made to ensure that these technologies and skills are 
     maintained for future uses. The conferees support Air Force 
     efforts with respect to specialized materials, such as 2-2-3 
     carbon/carbon, that may be needed for future space and other 
     applications. The conferees urge the Secretary to review the 
     Future Years Defense Program to ensure that Strategic Systems 
     specialized industrial base issues are adequately funded.
     Telemedicine
       The conferees have a continuing interest in telemedicine 
     and in the promise that the application of telemedicine 
     technology holds for improvements in the health care of 
     service members on the battlefield, at sea, and in military 
     and civilian health care facilities. The conferees are aware 
     that the General Accounting Office (GAO) in its February 1997 
     report ``Telemedicine: Federal Strategy is Needed to Guide 
     Investments'' concluded that telemedicine has the 
     potential to revolutionize the way health care is 
     delivered and that recent increased interest in 
     telemedicine technology has resulted in widespread 
     applications throughout the United States. However, the 
     GAO also concluded that no overarching, government-wide 
     strategy exists to ensure that the most is gained from 
     federal telemedicine efforts. The conferees believe that 
     because the Department of Defense (DOD) is one of the 
     major federal investors in telemedicine and manages one of 
     the nation's largest health care systems, it would be in a 
     good position to help forge an overall telemedicine 
     strategy. A first step in this direction would be the 
     development of a department-wide telemedicine strategy.
       The conferees strongly recommend that the Secretary of 
     Defense develop and submit to the congressional defense 
     committees by March 31, 1998, an overarching telemedicine 
     research and development and operation strategy. The strategy 
     should clearly define the scope of telemedicine in the 
     Department, establish DOD-wide goals and objectives, and 
     identify actions and appropriate milestones for achieving 
     them; prioritize and target near- and long-term investments, 
     especially for goals related to combat casualty care and 
     operations other than war; and clarify the roles of DOD 
     oversight organizations. The conferees also recommend that 
     the Secretary coordinate with the Joint Working Group on 
     Telemedicine in the development of national goals and 
     objectives for telemedicine.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Dual-use technology program (sec. 203)
       The House bill contained a provision (sec. 203) that would 
     direct the Department of Defense to fund the dual-use science 
     and technology program in fiscal year 1998 as a percentage of 
     the science and technology program of each of the services.
       The Senate amendment contained a provision (sec. 216) that 
     would establish a set of goals with increasing levels of 
     funding for new starts in the applied research accounts of 
     the military services to be devoted to dual-use projects in 
     each of fiscal years 1998, 1999, and 2000. Under the 
     provision, the dual-use projects entered into by the military 
     services would have to require a minimum cost-share of 50 
     percent from non-federal participants in order to count 
     toward meeting the specified goal. The provision would also 
     assign oversight responsibility for implementation of dual-
     use technologies to an official who would report directly to 
     the Under Secretary of Defense for Acquisition and 
     Technology.
       The House recedes with an amendment that would increase the 
     goals set in the Senate provision and impose the percentages 
     to the entire applied research accounts of the military 
     services rather than new starts within those accounts for 
     each of fiscal years 1998, 1999, 2000, and 2001. The 
     provision would also place restrictions on the proportion of 
     in-kind contribution in the non-federal cost-share for dual-
     use projects that would be applied toward meeting the goals. 
     Finally the provision would specifically authorize $50.0 
     million for the Commercial Operations and Support Initiative 
     (COSSI) and $75.0 million for the dual-use science and 
     technology projects in fiscal year 1998. The conferees direct 
     that the funds authorized for the COSSI program in fiscal 
     year 1998 be used only to complete projects under existing 
     agreements and that no new solicitation under the COSSI 
     program be initiated until fiscal year 1999.
       The conferees direct the Secretary of Defense to submit to 
     the congressional defense committees, at the time of the 
     budget request for each of the fiscal years for which a goal 
     applies under the provision, a report on the plans for the 
     program for the fiscal year of the request. The report should 
     provide sufficient detail with respect to funding 
     allocations, priorities, and technology development goals for 
     both the science and technology program and the COSSI program 
     to allow Congress to make an informed decision on the 
     request.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     Manufacturing technology program (sec. 211)
       The House bill contained a provision (sec. 211) that would 
     amend section 2525 of title 10, United States Code, through 
     fiscal year 2000, to establish a funding requirement for the 
     manufacturing technology (MANTECH) program of 0.25 percent of 
     the amount available for demonstration and validation, 
     engineering and manufacturing development, operational system 
     development, and procurement programs of the Army, the Navy, 
     the Air Force, and Defense Agencies, or the amount authorized 
     by law for manufacturing technology projects of the military 
     departments and defense agencies, whichever amount is 
     greater. The provision would also require an annual report to 
     Congress through fiscal year 2000.
       The Senate amendment contained a provision (sec. 231) that 
     would amend section 2525(c)(2) of title 10, United States 
     Code, to clarify the rationale for the requirement that the 
     Department seek the participation of manufacturers of 
     manufacturing equipment in the projects under the MANTECH 
     program.
       The House recedes with an amendment that would include the 
     requirement for the Secretary of Defense to prepare a five 
     year plan for the MANTECH program that establishes 
     manufacturing technology goals, milestones, and priorities, 
     the investment strategy for the program, annual program 
     objectives, and annual funding for the program by defense 
     agencies and the military departments.
       The conferees strongly endorse the Department of Defense 
     manufacturing technology program. The program provides ``seed 
     funding'' for the development of moderate to high risk 
     material, process, and equipment technology to enable 
     production of advanced, high quality weapons systems with 
     shorter lead times and reduced acquisition costs. The 
     conferees also endorse the need to stabilize the funding 
     level for the MANTECH program and eliminate the uncertainty 
     in annual funding that has reduced the program's 
     effectiveness and efficiency. The conferees believe that 
     the program's objectives, investment strategy, and funding 
     level must be closely tied to the manufacturing technology 
     and process requirements of the various Defense 
     acquisition programs. To achieve this goal and to maintain 
     the Department of Defense MANTECH program at the funding 
     level needed to assure the availability of advanced 
     manufacturing technology and processes, the conferees 
     recommend that the Secretary establish a funding target 
     for the program of at least 0.25 percent of the amount 
     programmed by each of the military departments and defense 
     agencies for their demonstration and validation, 
     engineering and manufacturing development, operational 
     system development, and procurement programs.
     Report on operational field assessments program (sec. 212)
       The House bill contained a provision (sec. 220) that would 
     require the Secretary of Defense to submit to the Congress no 
     later than March 30, 1998 a report on the operational field 
     assessments program, including a description of future plans 
     for the program and funding requirements for planned 
     activities under the program.
       The Senate amendment contained no similar provision, but 
     authorized an increase of $8.0 million in PE 65118D for 
     operational field assessments in fiscal year 1998.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to report to the Congress on the manner 
     in which the operational field assessment program plan will 
     ensure responsiveness to the mission needs of the commanders 
     of the unified combatant commands. The conferees agree to 
     authorize an increase of $4.0 million in PE 65118D to support 
     operational field assessments in fiscal year 1998.
     Joint Strike Fighter Program (sec. 213)
       The Senate amendment contained a provision (sec. 211) that 
     would require the Secretary of Defense to submit a report to 
     the congressional defense committees on the options for the 
     sequence in which the variants of the Joint Strike Fighter 
     (JSF) are to be produced and fielded.
       The House bill contained no similar provision.
       The House recedes with an amendment that would include a 
     requirement for certification that the JSF program contains 
     sufficient funding to carry out an alternate engine program 
     that includes flight qualification of an alternate engine.

[[Page H9348]]

     Kinetic energy tactical anti-satellite technology program 
         (sec. 214)
       The Senate amendment contained a provision (sec. 218) that 
     would authorize $80.0 million in PE 63892D to continue the 
     Kinetic Energy Tactical Anti-Satellite (KE-ASAT) program in 
     fiscal year 1998. The provision would also prohibit the 
     obligation of funds in PE 65104D, relating to technical 
     studies and analyses, until the funds appropriated for the 
     KE-ASAT program for fiscal year 1998 have been released to 
     the KE-ASAT program manager.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     $37.5 million for the KE-ASAT program for fiscal year 1998.
       The conferees understand that the administration maintains 
     that there is no military requirement for the KE-ASAT program 
     and that the Department of Defense does not support it. 
     However, there appears to be some confusion regarding the 
     Department's support for some degree of KE-ASAT technology 
     development. The Department of Defense's recent Space Control 
     Architecture study appears to endorse continued development 
     of KE-ASAT technology, and the National Space Policy appears 
     to call for the development of active counter-satellite 
     capabilities.
       In light of these factors, the conferees direct the 
     Secretary of Defense to submit a report to the congressional 
     defense committees by February 15, 1998, to include the 
     following: (1) a determination as to whether the National 
     Space Policy and DOD Space Policy establish requirements for 
     the development of active counter-satellite capabilities; (2) 
     a summary of the DOD Space Control Architecture study, 
     including any updates to the study, and the study's findings 
     and recommendations regarding the KE-ASAT program; and (3) a 
     determination by the Secretary as to whether the Department 
     of Defense should develop active counter-satellite 
     capabilities and, if so, whether the Secretary intends to 
     sustain some level of KE-ASAT technology development. The 
     report shall be submitted in an unclassified form and, if 
     necessary, in a classified form.
       The conferees note that fiscal year 1997 funds remain 
     available for the KE-ASAT program. The conferees continue to 
     support the development of KE-ASAT technology.
     Micro-satellite technology development program (sec. 215)
       The Senate amendment contained a provision (sec. 219) that 
     would authorize $50.0 million in PE 63401F for the Clementine 
     2 program. The provision would also prohibit the obligation 
     of more than $35.0 million of funds authorized in PE 64480F 
     for the Global Positioning System Block IIF satellite system 
     until the Secretary of Defense certifies to Congress that the 
     Secretary has made available for obligation funds 
     appropriated for fiscal year 1998 for the Clementine 2 Micro-
     Satellite program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require: (1) 
     that the Clementine 2 program be restructured into a micro-
     satellite technology development program that supports a 
     range of space mission areas; and (2) the Secretary of 
     Defense to provide a report on the restructured micro-
     satellite program to the congressional defense committees.
       The conferees note that the Air Force and U.S. Space 
     Command have supported micro-satellite development activities 
     and that the Air Force has established and provided a limited 
     amount of funding for such a program in the Future Years 
     Defense Program. The conferees continue to support innovative 
     technology demonstrations designed to test key technologies 
     in space and urge the Secretary of Defense to ensure that the 
     restructured micro-satellite technology program continues 
     such efforts. The conferees note that the Air Force, in 
     conjunction with the office of the Deputy Undersecretary 
     of Defense for Space, has developed a range of options for 
     such a program. The conferees believe that funds 
     appropriated for the Clementine 2 program in prior years 
     should be used to support the restructured micro-satellite 
     program.
     High altitude endurance unmanned vehicle program (sec. 216)
       The Senate amendment contained a provision (sec. 213) that 
     would impose a cost cap on the High Altitude Endurance 
     Unmanned Aerial Vehicle (HAE UAV) program at the levels 
     requested in the fiscal year 1998 budget request.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     reporting requirement of the provisions and the certification 
     requirements for the program.
     F-22 aircraft program (sec. 217)
       The Senate amendment contained a provision (sec. 212) that 
     would impose cost caps on both the total cost of engineering 
     and manufacturing development (EMD) and the total cost of 
     production of the F-22. Additionally, the Senate amendment 
     would require an annual report by the Comptroller General 
     that would assess the progress of EMD and its prospect of 
     completion under the cost cap. The annual report would be 
     required until EMD is complete. Finally, the Senate amendment 
     would limit the obligation of funds authorized to be 
     appropriated each fiscal year to 90 percent until the 
     Comptroller General's annual report is submitted.
       The House bill contained no similar provision.
       The House recedes with an amendment that would allow 
     adjustments to the cost caps for economic inflation and 
     compliance with laws enacted after September 30, 1997.

             Subtitle C--Ballistic Missile Defense Programs

     National Missile Defense Program (sec. 231)
        The Senate amendment contained a provision (sec. 225) that 
     would require the Secretary of Defense to structure the 
     National Missile Defense (NMD) program to support an 
     integrated NMD system test in fiscal year 1999. The provision 
     would also require the Secretary of Defense to prepare a plan 
     for the development and deployment of an NMD system that 
     could achieve initial operational capability in fiscal year 
     2003. Finally, the provision would authorize $978.1 million 
     for NMD in fiscal year 1998.
       The House bill contained no similar provision.
       The House recedes.
     Budgetary treatment of amounts for procurement for ballistic 
         missile defense programs (sec. 232)
       The House bill contained a provision (sec. 231) that would 
     require future budget requests for procurement of the 
     National Missile Defense program and for core theater missile 
     defense programs to be within the accounts of the Ballistic 
     Missile Defense Organization (BMDO) rather than in the 
     accounts of the military services.
       The Senate amendment contained a provision (sec. 226) that 
     would direct the Secretary of Defense to transfer ballistic 
     missile defense program procurement funds previously managed 
     by the Ballistic Missile Defense Organization from military 
     service accounts back to their original BMDO procurement 
     accounts.
       The Senate recedes with an amendment that combines the 
     House and the Senate provisions.
     Cooperative Ballistic Missile Defense program (sec. 233)
       The House bill contained a provision (sec. 232) that would 
     establish a Cooperative Ballistic Missile Defense Program 
     within the Ballistic Missile Defense Organization (BMDO), to 
     support on-going and future technical and analytical 
     cooperative efforts between the United States and other 
     nations that contribute to U.S. missile defense capabilities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide the 
     Secretary of Defense discretion to exclude certain ballistic 
     missile defense acquisition programs from the cooperative 
     ballistic missile defense program element. The conferees 
     understand that BMDO has developed plans for the creation of 
     a dedicated cooperative ballistic missile defense program 
     element and look forward to this new program element in the 
     fiscal year 1999 budget request.
     Annual report on the threat posed to the United States by 
         weapons of mass destruction, ballistic missiles, and 
         cruise missiles (sec. 234)
       The House bill contained a provision (sec. 234) that would 
     direct the Secretary of Defense, in consultation with the 
     Director of Central Intelligence, to prepare and submit to 
     Congress by January 30 of each year, a report on threats 
     posed to the United States and its allies by cruise missiles, 
     ballistic missiles, and weapons of mass destruction, and the 
     proliferation of such technologies.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Director of Ballistic Missile Defense Organization (sec. 235)
       The House bill contained a provision (sec. 235) that would 
     require that the Director of the Ballistic Missile Defense 
     Organization (BMDO) carry the grade of lieutenant general or 
     general or, in the case of an officer of the Navy, vice 
     admiral or admiral. It would also require that the Director 
     of BMDO report directly to the Secretary of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit the 
     appointment of a civilian official of equivalent grade as 
     Director of BMDO and eliminate the requirement that the 
     Director report directly to the Secretary of Defense.
       The conferees direct the Secretary of Defense to ensure 
     that the director of BMDO is accorded full access to the 
     Secretary and all other senior Department of Defense 
     officials on matters pertaining to the management of 
     ballistic missile defense programs for which the director has 
     responsibility.
     Repeal of required deployment dates for core theater missile 
         defense programs (sec. 236)
       The House bill contained a provision (sec. 233) that would 
     amend section 234(a) of the Ballistic Missile Defense Act of 
     1995 by eliminating deployment dates for certain core theater 
     missile defense (TMD) programs and modifying the deployment 
     date for the Theater High Altitude Area Defense (THAAD) 
     program. The provision also made technical and conforming 
     changes to section 234(a).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     all deployment dates for core TMD programs from section 
     234(a) of the Ballistic Missile Defense Act of 1995.

[[Page H9349]]

       The conferees continue to support the earliest possible 
     deployment of effective theater missile defenses, consistent 
     with acceptable program risk, as a matter of high national 
     priority. The conferees believe that the mandated deployment 
     dates made clear the high priority attached by Congress to 
     all four core theater missile defense programs. These dates 
     and congressional funding increases have propelled the Navy 
     Area Theater Ballistic Missile Defense program into 
     engineering and manufacturing development and the Patriot 
     Advanced Capability-3 (PAC-3) program into procurement. 
     Congressionally mandated deployment dates were also motivated 
     by the Department of Defense's failure to commit firmly to a 
     deployment schedule for the Navy Theater Wide and THAAD 
     programs that would result in deployment of these vital 
     capabilities at the earliest opportunity consistent with 
     acceptable technical and program risk.
       Henceforth, the conferees anticipate that a statement of 
     congressional intent concerning the management of the core 
     TMD programs will be issued annually. The conferees believe 
     that the flexibility of annual statements will allow for 
     rigorous and effective congressional oversight.

                       Subtitle D--Other Matters

     Restructuring of National Oceanographic Partnership Program 
         organization (sec. 241)
        In signing the National Defense Authorization Act for 
     Fiscal Year 1997, the President issued a statement that the 
     statute's method for the appointment of certain members of 
     the National Ocean Leadership Council would violate the 
     Appointments Clause of the Constitution. Although the 
     statement provided that the Council should not exercise 
     significant governmental authority, the administration 
     allowed the Council to be convened with the 12 members whose 
     appointment did not raise any constitutional issue, pending 
     the enactment of corrective legislation.
       The House bill contained a provision (sec. 214) that would 
     amend section 7902 of title 10, United States Code, to 
     provide that the President, or his designee, shall appoint 
     members of the National Ocean Research Council who are not 
     already government officers, to represent the views of the 
     ocean industries, state governments, and academia, and such 
     other views as the President considers appropriate.
       The Senate amendment contained a provision (sec 234) that 
     would amend section 7902(b) to revise the membership of the 
     Council by removing those members whose appointment would 
     raise constitutional questions. The National Ocean Leadership 
     Council would remain as currently established by the 
     administration, with members representing the 12 Federal 
     agencies with significant oceanographic interest. The 
     provision also recommended that the membership of the 
     Council's Ocean Research Advisory Panel be expanded to 
     include representatives from the National Academy of 
     Sciences, the National Academy of Engineering, and the 
     Institute of Medicine, as well as government, academia, and 
     the oceans industry.
       The House recedes with an amendment that would clarify the 
     role of the Ocean Research Advisory Panel with regard to 
     membership and responsibilities.
     Maintenance and repair of real property at Air Force 
         installations (sec. 242)
       The House bill contained a provision (sec. 215) that would 
     amend chapter 949 of title 10, United States Code, by adding 
     a new provision to permit the use of both research, 
     development, test, and evaluation funds and operations and 
     maintenance funds for maintenance and repair of real property 
     at Air Force installations.
       The Senate amendment contained no similar provision.
        The Senate recedes.
     Expansion of eligibility for the defense experimental program 
         to stimulate competitive research (sec. 243)
       The House bill contained a provision (sec. 216) that would 
     amend section 257 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337) to ensure the 
     eligibility of the Commonwealth of Puerto Rico and other U.S. 
     territories to participate in the Defense Experimental 
     Program to Stimulate Competitive Research.
       The Senate amendment contained a similar provision (sec. 
     233).
       The House recedes.
     Bioassay testing of veterans exposed to ionizing radiation 
         during military service (sec. 244)
       The House bill contained a provision (sec. 217) that would 
     authorize $300,000 for the Nuclear Test Personnel Program 
     conducted by the Defense Special Weapons Agency.
       The Senate amendment contained a similar provision (sec. 
     220) that would authorize $300,000 for the Nuclear Test 
     Personnel Program conducted by the Defense Special Weapons 
     Agency for the third phase of bioassay testing of radiation-
     exposed veterans who participated in radiation-risk 
     activities, and would direct the collection of samples by the 
     appropriate department of agency appropriate agency, and the 
     transfer under appropriate chain of custody to the Brookhaven 
     National Laboratory.
       The House recedes with an amendment that would authorize 
     $300,000 for the Nuclear Test Personnel Program from funds 
     authorized for the Defense Special Weapons Agency to conduct 
     the third phase of bioassay testing of veterans exposed to 
     ionzing radiation during their military service.
        The conferees agree that neither the Brookhaven National 
     Laboratory, nor the Defense Special Weapons Agency (DSWA), 
     have the capability to collect the samples from the veterans 
     who participated in the United States atmospheric nuclear 
     testing program or the occupation of Hiroshima and Nagasaki, 
     Japan. Therefore, the conferees direct the appropriate 
     department or agency, with access to the veterans who 
     participated in these activities, to collect the required 
     bioassay samples and transfer them to Brookhaven National 
     Laboratory under the appropriate chain of custody.
     Sense of Congress regarding Comanche program (sec. 245)
       The House bill contained a provision (sec. 218) that would 
     express support for Comanche program technology transfer and 
     acquisition efforts.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of Congress that the Department of Defense should 
     evaluate potential technology transfer and acquisition 
     initiatives within the Army Comanche program that have the 
     potential to increase the efficiency of the program or reduce 
     risk. If the Department identifies an initiative with merit, 
     the conferees expect that funding will be identified for the 
     initiative in the future years defense program.

                   Legislative Provisions Not Adopted

     Strategic environmental research and development program
       The House bill contained a provision (sec. 212) that would 
     direct the Secretary of Defense to submit a report on the 
     Strategic Environmental Research and Development Program 
     (SERDP) by February 28, 1998. In relation to each SERDP 
     project, the report would specify the following: (1) defense-
     unique and mission-relevant aspects; and (2) certify that it 
     does not duplicate other environmental research, development, 
     and demonstration efforts of other government entities 
     or organizations.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees have been advised by the Department of 
     Defense that technologies funded through SERDP are carefully 
     screened to identify projects that may duplicate efforts 
     within the Department. The conferees direct the Department of 
     Defense to ensure that every effort is made to avoid 
     redundant research and development efforts in the area of 
     environmental technology.
     Tactical unmanned aerial vehicles
       The House bill contained a provision (sec. 213) that would 
     prohibit the obligation of funds for the Outrider Advanced 
     Concept Technology Demonstration (ACTD) program.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees are disappointed with the progress of the 
     Outrider ACTD program to date. The conferees believe that the 
     program has suffered irreparably from unstable and ambiguous 
     joint requirements and note that the program appears to be on 
     a path to failure with respect to its operational 
     capabilities. In the future, the conferees will look less 
     favorably on ACTD programs that are not limited 
     demonstrations of mature technologies, but rather thinly 
     veiled attempts to evade the regular order of the acquisition 
     process.
       Accordingly, the conferees agree to authorize $45.0 million 
     for completion of the Outrider ACTD development and user 
     activities, but not procurement of operational Outrider 
     systems. Moreover, the conferees agree to authorize these 
     Outrider ACTD activities in PE 63003A, Advanced Aviation 
     Technology program.
     Land attack standard missile
       The House bill contained a provision (sec. 219) that would 
     authorize an increase of $10.0 million increase in PE 63795N 
     for flight test demonstration and risk reduction activities 
     for the Land Attack Standard Missile. In addition, the 
     provision would decrease PE 63217N (Air Systems and Weapons 
     Advance Technology) by $5.0 million and PE 63508N (Ship Hull 
     Mechanical and Electrical Technology) by $5.0 million.
       The Senate amendment contained no similar provision.
       The House recedes. The conferees agree to authorize an 
     increase of $3.0 million in PE 63795N for the Land Attack 
     Standard Missile as discussed elsewhere in this report.
     Tactical High Energy Laser program
       The House bill contained a provision (sec. 236) that would 
     transfer the Tactical High Energy Laser (THEL) program from 
     the Department of the Army to the Ballistic Missile Defense 
     Organization, and authorize $38.2 million for THEL in fiscal 
     year 1998.
       The Senate amendment contained no similar provision.
       The House recedes. Fiscal year 1998 funding for THEL is 
     addressed elsewhere in this report.
     Advanced anti-radiation guided missile program
       The Senate amendment contained a provision (sec. 214) that 
     would authorize the Secretary of the Navy to use up to $25.0 
     million of the amount authorized for fiscal year 1997 for the 
     advanced anti-radiation guided missile (AARGM) program to 
     fund fiscal year 1998 research development, test, and 
     evaluation programs of the Navy that have a higher priority.
       The House bill contained no similar provision, but would 
     authorize an increase of $35.0

[[Page H9350]]

     million in PE 25601N to continue the ARRGM program.
       The Senate recedes.
       The conferees share the concerns expressed in the House 
     report (H. Rept. 105-132) that the high degree of concurrency 
     in the schedule for development and demonstration of the 
     AARGM results in increased risk to the program and that a 
     more sequential development program may be warranted. 
     Accordingly, the conferees reiterate the guidance in the 
     House report (H. Rept. 105-132) that the Secretary of the 
     Navy conduct an independent assessment of the program plan, 
     development and demonstration schedule, program execution, 
     technical performance, and program risk. The Secretary shall 
     report the results of the assessment to the congressional 
     defense committees by March 31, 1998.
       The report should also include the Secretary's 
     recommendations regarding the objectives of the program, 
     revisions to the program schedule, and the funding required 
     to complete the program.
     Federally funded research and development centers
       The Senate amendment contained a provision (sec. 215) that 
     would prohibit the Department of Defense (DOD) from funding 
     more than 6,206 staff years of technical effort for federally 
     funded research and development centers (FFRDC's) out of the 
     funds authorized to be appropriated for the DOD for fiscal 
     year 1998.
       The House bill contained no similar provision.
       The Senate recedes.
     Department of Defense/Veterans' Administration cooperative 
         research program
       The Senate amendment contained a provision (sec. 221) that 
     would authorize $15.0 million for the Department of Defense/
     Veterans Administration (DOD/VA) cooperative research program 
     from the funds authorized to be appropriated for research, 
     development, test, and evaluation for defense agencies in 
     fiscal year 1998.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize $15.0 million in PE 63738D 
     for the Cooperative DOD/VA Medical Research Program of which 
     $4.5 million is authorized for the Persian Gulf illness 
     clinical trials program discussed on page 161 of the House 
     report (H. Rept. 105-132). The conferees direct that all 
     applicable competitive, merit-based procedures be used in the 
     award of contracts, grants or other agreements under the 
     Cooperative DOD/VA Medical Research Program. The conferees 
     further direct the Secretary of Defense to ensure that any 
     Department of Defense funds authorized for fiscal year 
     1998 program be expended for research on the medical 
     problems of men and women associated with military 
     service.
     Multitechnology integration in mixed-mode electronics
       The Senate amendment contained a provision (sec. 222) that 
     would authorize an increase of $7.0 million for 
     multitechnology integration in mixed-mode electronics (MIME) 
     research. The Senate provision would reduce by an equal 
     amount the funds authorized to be appropriated for 
     procurement for the reserve components of the armed services 
     and made available for special equipment for user testing.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $7.0 
     million in PE 62712E for applied research in MIME technology, 
     as discussed elsewhere in this report.
     Facial recognition technology program
       The Senate amendment contained a provision (sec. 223) that 
     would authorize an increase of $5.0 million for a facial 
     recognition technology program.
       The House bill contained no similar provision, but would 
     authorize $5.0 million for a facial recognition technology 
     program in the counterterror technical support program (PE 
     63122D).
       The Senate recedes. The conferees agree to authorize $3.0 
     million for a facial recognition technology program in the 
     defense tactical technology program (PE 62702E).
     Explosives demilitarization technology
       The Senate amendment included a provision (sec. 235) that 
     would direct the Secretary of Defense to conduct an explosive 
     munitions demilitarization demonstration program, and using 
     competitive procedures, conduct a demonstration using an 
     existing, commercially available blast chamber technology as 
     an alternative to open burning, open pit detonation of 
     munitions; require the Secretary of Defense to submit to 
     Congress, along with the fiscal year 2000 budget, a report on 
     the results of the demonstration program and assessment of 
     the relative benefits of the blast chamber technology with 
     regard to levels of emissions and noise, and a cost benefit 
     analysis of this technology. The provision would increase the 
     budget request for the explosives demilitarization technology 
     program by $6.0 million for the demonstration program and 
     reduce by $6.0 million the budget request for the Army 
     account for special equipment for user testing.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agreed to authorize an increase of $4.0 
     million for the munitions standardization, effectiveness and 
     safety program (PE 65805A) from which a demonstration program 
     utilizing commercially available blast chamber technology may 
     be conducted, and is described elsewhere in this title.

                  Title III--Operation and Maintenance

     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $93,195.7 million for Operation and 
     Maintenance in the Department of Defense and $2,163.4 for 
     Working Capital Fund Accounts in fiscal year 1998. The House 
     bill would authorize $92,616.2 million for Operation and 
     Maintenance and $2,153.6 for Working Capital Fund Accounts. 
     The Senate amendment would authorize $93,292.9 million for 
     Operation and Maintenance and $1,488.1 for Working Capital 
     Fund Accounts. The conferees recommended an authorization of 
     $93,794.2 million for Operation and Maintenance and $2,031.9 
     for Working Capital Fund Accounts for fiscal year 1998. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice. 

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[[Page H9374]]

                       ITEMS OF SPECIAL INTEREST

     Arms control implementation
       The budget request included $315.1 million for arms control 
     implementation programs in the military services and the 
     Department of Defense. This request is based on anticipated 
     dates of implementation of the various arms control treaties.
       The House bill would authorize a decrease of $25.5 million, 
     which would result in an $11.2 million reduction to the On 
     Site Inspection Agency (OSIA) operations and maintenance 
     account and a $14.3 million reduction to the Defense Special 
     Weapons Agency (DSWA) verification demonstration technology 
     program (PE 63711H). These reductions were due to slippage in 
     the entry into force of the Open Skies Treaty, the Strategic 
     Arms Reduction Treaty II, the Comprehensive Test Ban Treaty 
     (CTBT), and non-implementation of the Bilateral Destruction 
     Agreement (BDA).
       The Senate amendment would authorize a decrease of $20.0 
     million, which would result in a $10.0 million reduction to 
     the OSIA operations and maintenance account and a $10.0 
     million reduction to the DSWA verification demonstration 
     technology program.
       The conferees agree to authorize a decrease of $25.5 
     million to the budget request for arms control implementation 
     for fiscal year 1998, as follows: $11.2 million for the OSIA 
     operations and maintenance account; and $14.3 million for the 
     DSWA verification technology demonstration program (PE 
     63711H).
       The conferees direct the Department of Defense to provide 
     the congressional defense committees with a program plan for 
     the nuclear control technology research program (PE 63711H) 
     in support of the CTBT, and include the estimated costs. The 
     Department should also include in the report its assessment 
     of recommendations by the National Research Council on 
     research deemed to be necessary to meet nuclear test 
     monitoring goals, and how the nuclear arms control technology 
     activity meets congressionally mandated objectives. The 
     conferees are willing to provide adequate funding for 
     programs that would enable the United States to independently 
     monitor and detect nuclear test activities worldwide and 
     fulfill its obligations under a comprehensive test ban, if 
     and when that treaty enters into force, and do not wish the 
     funding reduction to nuclear control technology activities 
     (PE 63711H) to be misconstrued.
     National Defense Sealift Fund (NDSF)
       The budget request included $812.9 million in the National 
     Defense Sealift Fund (NDSF) for sealift acquisition. Of this 
     amount, $581.3 million would be for the procurement of two 
     large medium speed roll-on/roll-off (LMSR) strategic sealift 
     ships, $131.5 million for resolution of cost growth that has 
     occurred on LMSRs authorized in prior years, $70.0 million 
     for advance procurement of components for an LMSR that is 
     planned for authorization in fiscal year 1999, and $30.1 
     million for completion of ships authorized in prior years.
       The House bill would authorize a decrease of $9.8 million.
       The Senate amendment would authorize a decrease of $651.3 
     million for procurement and for advance procurement of LMSRs. 
     The Senate amendment would also authorize a decrease of $25.0 
     million because of contract savings in previously authorized 
     and appropriated NDSF programs. In addition, the Senate 
     amendment would authorize an increase of $1.0 million to 
     provide support for a Department of Defense study of future 
     requirements and specifications for maritime prepositioning 
     force recapitalization.
       The conferees agree to authorize $581.3 million for 
     procurement of two LMSRs, $70.0 for advance procurement, and 
     $30.1 million for completion of prior year ships. The 
     conferees further agree to a decrease of $131.5 million which 
     includes a decrease of $131.0 million for prior year cost 
     growth, which the conferees believe can be deferred until 
     fiscal year 1999; and a decrease of $0.5 million as a result 
     of fiscal year 1997 contract savings.
     National imagery and mapping agency
       The budget request included $680.3 million in Operations 
     and Maintenance, Defensewide, for the Joint Military 
     Intelligence Program portion of the National Imagery and 
     Mapping Agency (NIMA).
       The House bill would authorize the following: (1) a 
     reduction of $30.0 million for production and customer 
     support on the grounds that migration to the Digital 
     Processing System should have resulted in significant 
     reductions in operations and maintenance costs; (2) a 
     reduction of $10.0 million for mission support in 
     anticipation of significant cost reductions as a result of 
     various mission and organization consolidations; (3) a 
     reduction of $15.0 million to accelerate the downsizing of 
     NIMA's personnel consistent with the Digital Processing 
     System phase- out; and (4) a reduction of $23.2 million for 
     continued research and development efforts for an 
     interferometric synthetic aperture radar (IFSAR) mission on 
     board the Space Shuttle to collect Digital Terrain Elevation 
     Data (DTED) level 2 information for mapping because of a 
     belief that other, more cost-effective, commercial 
     alternatives to the IFSAR mission exist.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the following reductions, 
     as reflected in the Classified and Intelligence line within 
     Operations and Maintenance, Defensewide: $35.0 million in 
     production; $11.0 million in mission support; $15.0 million 
     in management and customer support; and $3.2 million for the 
     Shuttle IFSAR mission, with the remaining funding to be used 
     to fund commercial alternatives to the shuttle DTED mapping 
     mission if the NIMA Director determines that such 
     alternatives are cost- and mission-effective, or to continue 
     preparation for the shuttle mission. The conferees also agree 
     to authorize the budget request for NIMA civilian personnel. 
     The conferees direct the Director of NIMA to submit the 
     personnel plan specified in the House report (H. Rept. 105-
     132).
     Travel re-engineering
       The House report (H. Rept. 105-132), which raised concerns 
     over the compliance by the Department of Defense with section 
     356 of the National Defense Authorization Act for Fiscal Year 
     1996, would direct the Secretary of Defense to comply with 
     the reporting requirement in that section, and would 
     prohibit the Department from processing a Request for 
     Proposal. The conferees are aware that Secretary of 
     Defense has now complied with the reporting requirement, 
     and note that the Request for Proposal has been released.
       The House report also expressed concern about the impact of 
     any new system on small and medium-sized travel agencies and 
     the possible restriction of fair competition in the travel 
     industry. The challenge facing the Department is to automate 
     a largely unautomated and expensive travel system. The 
     conferees expect the Secretary of Defense to ensure that this 
     effort to automate the system will be interoperable with 
     existing commercial systems to ensure that small and medium-
     sized travel agencies continue to have an equal opportunity 
     to compete to provide actual travel services, and will 
     incorporate the best business practices of the commercial 
     travel industry. According to the schedule provided by the 
     Department of Defense, system testing in Region 6 will occur 
     during the second quarter of fiscal year 1998.
       The conferees direct the Secretary of Defense to report to 
     the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives, not later than May 1, 1998, the lessons 
     learned as a result of establishing the Defense Travel System 
     in Region 6. This report shall include, at a minimum: 
     industry response to the Request for Proposal; the 
     performance measures that were used to evaluate the system 
     testing; the cost of the Region 6 program, including 
     infrastructure development, software development, hardware 
     acquisition, and administration; the quantitative and 
     qualitative benefits of the program; the plan for integrating 
     the Defense Travel System in other regions; any differences 
     between the Region 6 contract and those anticipated for 
     subsequent expansion to other regions; and the evaluation 
     plan for full implementation.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Fisher House trust funds (sec. 304)
       The House bill contained a provision (sec. 1006) that would 
     provide permanent authorization for the expenditure of funds 
     from the Fisher House trust fund.
       The Senate amendment contained a provision (sec. 305) that 
     would authorize $150,000 to be appropriated from the Fisher 
     House Trust Fund, Department of the Army, and $150,000 to be 
     appropriated from the Fisher House Trust Fund, Department of 
     the Navy. No funds were authorized to be appropriated from 
     the Fisher House Trust Fund, Department of the Air Force.
       The House recedes with an amendment that would increase the 
     amount authorized to be appropriated from the Army Fisher 
     House Trust Fund to $250,000.
     Refurbishment of M1A1 Tanks (sec. 306)
       The House bill contained a provision (sec. 306) that would 
     authorize $35.0 million for the refurbishment of M1A1 tanks 
     at the Anniston Army Depot under the Department of the Army's 
     Abrams Integrated Management XXI (AIM XXI) program if the 
     Secretary of Defense determines that the program is cost 
     effective.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would not require 
     this work to be performed at the Anniston Army Depot.
     Operation of prepositioned fleet, National Training Center, 
         Fort Irwin, California (sec. 307)
       The House bill contained a provision (sec. 313) that would 
     provide funding associated with the operation of the 
     preposition fleet of equipment used by Army units during 
     training rotations at the National Training Center (NTC).
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees are concerned with the Department of the 
     Army's decision to change the way unit rotations to the NTC 
     are funded. Currently, the Army provides funding to the 
     National Training Center from a central account to defray the 
     costs associated with units' use of pre-positioned equipment 
     at the NTC. Under a new Army proposal, starting in fiscal 
     year 1998, units scheduled to go to the NTC would have to pay 
     for the use of the pre-positioned equipment out of the funds 
     provided for home station training. The conferees believe 
     that this would have a detrimental impact upon unit readiness 
     as home station training, and thus total training, was 
     reduced.

[[Page H9375]]

     Refurbishment and installation of air search radar (sec. 308)
       The House bill contained a provision (sec. 305) that would 
     authorize $6.0 million for the refurbishment and installation 
     of the AN/SPS-48E air search radar for the Ship Self-Defense 
     Systems at the Integrated Ship Defense Systems Engineering 
     Center, Walllops Island, Virginia.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make the 
     provision permissive.
     Contracted training flight services (sec. 309)
       The Senate amendment contained a provision (sec. 371) that 
     would authorize $12.0 million for contracted training flight 
     services.
       The House bill contained no similar provision.
       The House recedes.
     Procurement technical assistance programs (sec. 310)
       The House bill contained a provision (sec. 307) that would 
     authorize $15.0 million for a consolidated Procurement 
     Technical Assistance Center (PTAC) and the Electronic 
     Commerce Resource Center (ECRC) programs.
       The Senate amendment contained a provision (sec. 821) that 
     would authorize $12.0 million for the PTAC program.
       The House recedes.
     Operation of Fort Chaffee, Arkansas (sec. 311)
       The Senate amendment contained a provision (sec. 306) that 
     would authorize $6.854 million for the operation of Fort 
     Chaffee, Arkansas.
       The House bill contained no similar provision.
       The House recedes.

                 Subtitle B--Military Readiness Issues

     Monthly reports on allocation of funds within operation and 
         maintenance budget subactivities (sec. 321)
       The House bill contained a provision (sec. 312) that would 
     require the Secretary of Defense to notify and receive 
     approval from the congressional defense committees prior to 
     the reallocation of operation and maintenance funds above a 
     certain threshold.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Department of Defense to provide a monthly report to Congress 
     outlining the reallocation of funds within the operation and 
     maintenance accounts and the effect of this reallocation on 
     the ability of the Department to perform the functions for 
     which the funds were originally appropriated.
     Expansion of scope of quarterly readiness reports (sec. 322)
       The House bill contained a provision (sec. 311) that would 
     expand the Quarterly Readiness Report required by section 361 
     of the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106) to include data and analysis on 
     additional readiness indicators, which would provide a more 
     comprehensive readiness assessment.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include 
     additional factors to be included in these reports such as 
     personnel skills and pre-positioned equipment.
     Semiannual reports on transfers from high-priority readiness 
         appropriations (sec. 323)
       The House bill contained a provision (sec. 315) that would 
     extend through November 1, 2000, the requirement for the 
     Secretary of Defense to report semi-annually on transfers 
     from high-priority readiness accounts, in compliance with 
     section 362 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106). This provision would 
     also expand the number of readiness accounts to be considered 
     in the report.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make it a 
     semiannual report.
     Annual report on aircraft inventory (sec. 324)
       The Senate amendment contained a provision (sec. 1037) that 
     would require the Undersecretary of Defense (Comptroller) to 
     submit with the budget request an annual report to the 
     Congress on the aircraft in the inventory of the Department 
     of Defense. The provision would also require the modification 
     of budget data exhibits to display total numbers of aircraft 
     where numbers of primary aircraft or primary authorized 
     aircraft are displayed in exhibits.
       The House bill contained no similar provision.
       The House recedes.
     Administrative actions adversely affecting military training 
         or other readiness activities (sec. 325)
       The Senate amendment contained a provision (sec. 363) that 
     would require the Secretary of Defense to provide the 
     President, the Committee on Armed Services of the Senate, the 
     National Security Committee of the House of Representatives, 
     and the head of any relevant Federal agency with written 
     notification of any Federal administrative action that has or 
     would have a significant adverse effect on the military 
     readiness of any of the armed forces or a critical component 
     of the armed forces, such as a Marine battalion preparing for 
     deployment as part of a Marine Expeditionary Unit, or Special 
     Operations Forces dedicated to a specific mission. 
     Notification would be provided as soon as the Secretary 
     becomes aware of an adverse administrative action or proposed 
     administrative action. The notification would delay the 
     implementation of the action for a period of 30 days unless 
     the Secretary determines that the compliance with the 
     proposed action is in the best interest of the American 
     public, or the President directs the Secretary to comply 
     based on a determination that the implementation of the 
     action is more important than the effects on military 
     readiness.
       The House bill contained no similar provision.
       The House recedes.
     Common measurement of operations and personnel tempo (sec. 
         326)
       The Senate amendment contained a provision (sec. 1032) that 
     would require the Chairman of the Joint Chiefs of Staff to 
     develop, to the maximum extent practicable, a common 
     measurement of operations tempo (OPTEMPO) and personnel tempo 
     (PERSTEMPO).
       The House bill contained no similar provision.
       The House recedes.
     Inclusion of Air Force depot maintenance as operation and 
         maintenance budget activity group (sec. 327)
       The House bill contained a provision (sec. 373) that would 
     require the Secretary of the Air Force, beginning in fiscal 
     year 1999, to identify funding for depot maintenance in a 
     discreet subactivity group.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Prohibition of implementation of tiered readiness system 
         (sec. 328)
       The House bill contained a provision (sec. 314) that would 
     prohibit the implementation of any tiered readiness system 
     which would change military service-specific methods of 
     determining priorities for allocating funding, personnel, 
     equipment, equipment maintenance, and training resources to 
     military units, and the associated level of readiness of 
     those units that result from those priorities, from the 
     system that existed on October 1, 1996, until the Secretary 
     of Defense provides Congress with a report recommending a new 
     tiered readiness system along with legislative proposals and 
     these proposals are enacted by the Congress.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     the implementation of a new tiered or cyclical readiness 
     system based on the results of the reviews as required by 
     section 329 and section 330 of this Act, or any other review. 
     The amendment would clarify that the prohibition does not 
     preclude the Secretary of Defense from taking necessary 
     action to maintain the combat preparedness of the active and 
     reserve components of the United States Armed Forces.
       The conferees note that this provision does not block the 
     ability of the Department of Defense to routinely adjust the 
     manner in which it manages force readiness, particularly as 
     it pertains to maintaining necessary combat capabilities. 
     Rather, the provision precludes the adoption of a new tiered 
     or cyclical readiness system, as outlined in section 329 and 
     section 330 of this Act, pending subsequent congressional 
     review and concurrence given the significant policy issues 
     associated with such proposals. Accordingly, the provision 
     allows for the Secretary of Defense, following the completion 
     of the reviews required by sections 329 and 330 of this Act, 
     or any other review the Secretary may deem appropriate, to 
     submit, for Congressional consideration, a request for relief 
     from this prohibition.
     Report on military readiness requirements of the Armed Forces 
         (sec. 329)
       The Senate amendment contained a provision (sec. 1034) that 
     would direct the Department to further explore the potential 
     for tiered readiness. This provision would require the 
     Chairman and the service chiefs, together with the Commander 
     in Chief of the Special Operations Command and the commanders 
     of the other unified commands, to prepare a second report 
     that would examine the extent to which the readiness of the 
     armed forces could be tiered. Rather than looking at a 
     generic major regional conflict, this report would require an 
     examination of the tiered readiness concept within the force 
     structure advocated by the Quadrennial Defense Review, 
     including the armed forces required to deter or defeat a 
     strategic attack upon the United States. The report would 
     include a rotational examination of the tiering of the armed 
     forces that would focus on the brigade and battalion levels 
     of the Army and Marine Corps Divisions, the squadron levels 
     of the Air Force, Navy and Marine Corps Wings, and the Navy 
     Fleets.
       The House bill contained no similar provision.
       The House recedes.
     Assessment of cyclical readiness posture of the Armed Forces 
         (sec. 330)
       The Senate amendment contained a provision (sec. 1035) that 
     would require the Secretary of Defense to report on the 
     impact of moving to a cyclical readiness approach for major 
     warfighting units. Under this approach, a high state of 
     readiness alternates from one unit to another, as is already 
     done with the blue and gold crews on ballistic missile 
     submarines. The report should identify the savings and risks 
     associated with cyclical readiness.

[[Page H9376]]

       The House bill contained no similar provision.
       The House recedes.
     Report on military exercises conducted under certain training 
         exercise programs (sec. 331)
       The House bill contained a provision (sec. 316) that would 
     require the Secretary of Defense to report by January 15, 
     1998, on both past and planned joint training exercises 
     sponsored by the Chairman, Joint Chiefs of Staff (CJCS) 
     Exercise Program and the Partnership for Peace (PFP) program. 
     The report would include the type, description, duration, 
     objectives, the percentage of service-unique training 
     accomplished, and an assessment of the training value of each 
     CJCS and PFP exercise.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include 
     exercises funded through the Cooperative Threat Reduction 
     Program. The conference agreement would also require the 
     report to include an assessment of the value provided through 
     enhanced military to military relationships between the 
     participating nations, and the extent to which the training 
     exercises enhanced the readiness capabilities of all forces 
     involved in the exercise.
     Report on overseas deployment (sec. 332)
       The Senate amendment contained a provision (sec. 1033) that 
     would require the Department of Defense to report on the 
     number of personnel deployed overseas as of June 30, 1996 and 
     June 30, 1997. The report would distinguish between personnel 
     who are forward deployed as their permanent duty station and 
     those deployed overseas for temporary duty, such as service-
     specific exercises, joint exercises, exercises with allies, 
     and deployments for contingency operations.
       The House bill contained no similar provision.
       The House recedes.

                  Subtitle C--Environmental Provisions

     Revision of membership terms for Strategic Environmental 
         Research and Development Program Scientific Advisory 
         Board (sec. 341)
       The House bill contained a provision (sec. 341) that would 
     amend section 2904(b)(4) of title 10, United States Code, to 
     provide that appointments to the Strategic Environmental 
     Research and Development Program (SERDP) Scientific Advisory 
     Board be for not less than two years and not more than four 
     years. The Department of Defense recommended this provision 
     to give the SERDP director the flexibility to fill unexpected 
     vacancies on the Board.
       The Senate amendment contained a similar provision.
       The Senate recedes.
     Amendment to authority to enter into agreements with other 
         agencies in support of environmental technology 
         certification (sec. 342)
       The House bill contained a provision (sec. 342) that would 
     expand the authority of the Secretary of Defense under 
     section 327 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201). Section 327 authorizes 
     the Secretary to initiate a program to provide for 
     cooperative agreements with state and local governmental 
     agencies in support of multi-state and regional certification 
     of environmental cleanup technologies. The House provision 
     would specifically authorize the Secretary to enter into 
     agreements with Indian tribes and would broaden the range of 
     technologies subject to evaluation for certification.
       The Senate amendment contained a provision (sec. 335) that 
     would require the Department to prepare guidelines for cost-
     sharing related to the cooperative agreements authorized 
     under section 327.
       The Senate recedes with an amendment that would expand the 
     scope of the program as proposed in the House bill, but 
     require the Department of Defense to prepare guidelines and 
     meet expanded reporting requirements. The new authority would 
     become effective 30 days after the date of submission of the 
     guidelines required by the provision.
     Modifications of authority to store and dispose of non-
         defense toxic and hazardous materials (sec. 343)
       The House bill contained a provision (sec. 344) that would 
     amend section 2692 of title 10, United States Code, to 
     clarify exemptions from the prohibition against Department of 
     Defense (DOD) storage or disposal of toxic or hazardous 
     material that is not owned by the Department. The 
     administration recommended this provision to ensure that the 
     Department has appropriate authority to control munitions 
     stored or disposed of in connection with the following DOD 
     activities: (1) storage of explosive and hazardous materials 
     in conjunction with space launch programs; (2) storage of 
     member personal property, such as guns, ammunition, and 
     related material, when such storage is in the interest of 
     public safety; (3) storage of allied/foreign munitions during 
     joint testing, exercises or coalition warfare; (4) storage of 
     explosives and hazardous materials in support of other U.S. 
     Government agencies, to include State and local law 
     enforcement agencies; (5) storage of contractor owned 
     explosive materials when performing a service for the benefit 
     of the U.S. Government; and (6) storage of commercial 
     explosives on DOD installations participating in full or 
     partial privatization.
       The Senate amendment contained a similar provision (sec. 
     331).
       The Senate recedes with a clarifying amendment.
     Annual report on payments and activities in response to fines 
         and penalties assessed under environmental laws (sec. 
         344)
       The Senate amendment contained a provision (sec. 332) that 
     would require an annual report of fines and penalties 
     assessed against the Department of Defense (DOD) under 
     Federal, State, or local environmental laws.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Annual report on environmental activities of the Department 
         of Defense overseas (sec. 345)
       The Senate amendment contained a provision (sec. 333) that 
     would require the Department of Defense (DOD) to report 
     annually on overseas environmental restoration, compliance, 
     and other international environmental activities.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees hold a strong interest in ensuring 
     appropriate oversight of funds used in support of the 
     Department's overseas environmental policy.
     Review of existing environmental consequences of the presence 
         of the United States Armed Forces in Bermuda (sec. 346)
       The Senate amendment contained a provision (sec. 1091) that 
     would require the Secretary of Defense, not later than 120 
     days after the date of enactment of this Act, to submit a 
     report to the congressional defense committees that describes 
     the remaining environmental effects of the presence of the 
     United States Armed Forces in Bermuda.
       The House bill contained no similar provision.
       The House recedes.
     Sense of Congress on deployment of United States Armed Forces 
         abroad for environmental preservation activities (sec. 
         347)
       The House bill contained a provision (sec. 1062) that would 
     express the sense of Congress that the United States Armed 
     Forces should not be deployed outside the United States to 
     provide assistance to another nation in connection with 
     environmental preservation activities within that nation.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Recovery and sharing of costs of environmental restoration at 
         Department of Defense sites (sec. 348)
       In relation to Department of Defense cost-sharing policies 
     and practices at cleanup sites, the Senate amendment 
     contained a provision (sec. 337) that would direct the 
     Secretary of Defense to: (1) provide guidance to the military 
     departments and the Defense Logistics Agency (DLA) that 
     resolves current inconsistencies in recovering cleanup costs 
     from potentially responsible third parties; (2) require the 
     military departments and DLA to aggressively pursue future 
     cost reimbursement and recovery actions; (3) require the 
     military departments and the DLA to identify contractors or 
     other private third parties involved in contamination at 
     Department of Defense (DOD) sites; (4) require the military 
     departments and DLA to obtain all relevant data regarding 
     contractors or other responsible parties identified 
     contributing to site contamination, regardless of wrongdoing; 
     (5) require the military departments and DLA to gather and 
     maintain the most timely and accurate cost data available 
     from the departments' and other agencies' records; (6) 
     require the military departments and DLA to provide 
     consistent estimates, including all cleanup costs for DOD 
     environmental reports to Congress, regardless of the source 
     of funds; and (7) require the military departments to offset 
     environmental restoration budget requirements with amounts 
     recovered from liable third parties or contractors.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees note that there have been a series of General 
     Accounting Office (GAO) reports on DOD environmental cleanup 
     which indicate that the Department has incurred a significant 
     amount of cleanup expenses in instances in which a third 
     party may have contributed to the contamination of government 
     property. The GAO has reported that the DOD lacks uniform 
     guidance regarding the policies and practices for recovery of 
     such costs. The conferees have concluded that inconsistent 
     policies have contributed to a lack of focus and minimal 
     cost-recovery or cost-sharing at third party sites, 
     particularly at government-owned/ contractor-operated 
     facilities.
     Partnerships for investment in innovative environmental 
         technologies (sec. 349)
       The House bill contained a provision (sec. 346) that would 
     support the administration's proposal to authorize the 
     Secretary of Defense to enter into partnerships with private 
     sector entities in order to demonstrate and validate 
     innovative environmental technologies. All partnership 
     relationships would be contingent upon a determination that 
     there is a clear potential for the technology to be of 
     significant value to Department of Defense environmental 
     activities. The authority would be subject to expiration 
     three years after the enactment of this Act and

[[Page H9377]]

     the Secretary of Defense would have to provide annual reports 
     to Congress on the use of this authority.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) 
     require the use of competitive procedures for the selection 
     of any private sector participants in a partnership; (2) 
     require that parties other than the Department of Defense 
     provide at least 50 percent of the funding in any partnership 
     (not including in-kind contributions or pre-existing 
     investments); (3) permit partnerships only in the case of 
     technologies that the Secretary determines would not be 
     developed without the commitment of Department of Defense 
     funds and are likely to be of significant value to the 
     Department at a substantial number of clean-up sites; and (4) 
     require the Secretary to develop appropriate regulations to 
     ensure that all Department of Defense funds committed to a 
     partnership are expended to develop the technologies 
     authorized in the partnership agreement.
       In addition, the amendment would require the Secretary of 
     Defense, before entering into any partnership, to evaluate: 
     (1) the potential for the technology to be used by the 
     Department for environmental remediation; (2) the technical 
     feasibility and maturity of the technology being considered; 
     (3) the adequacy of financial and management plans; (4) a 
     cost and benefit analysis of the proposed technologies; (5) 
     the potential for transfer or commercialization of the 
     technology; and (6) the proposed cost-sharing arrangement.
     Procurement of recycled copier paper (sec. 350)
       The Senate amendment contained a provision (sec. 340) that 
     would codify and extend the Executive Order 12873 
     requirements for Federal agencies to increase the use of 
     recycled-content paper products, as specifically applied to 
     the Department of Defense (DOD). The provision would 
     specifically require the Department to use recycled-content 
     copier paper, as follows: 20 percent, January 1, 1998; 30 
     percent, January 1, 1999; and 50 percent, January 1, 2004, 
     but if DOD is unable to meet the 2004 deadline the Secretary 
     of Defense must certify that fact to Congress one year prior, 
     which would vitiate the deadline. The Department would not be 
     required to meet any of these deadlines if the cost 
     differential between recycled-content paper and virgin paper 
     exceeds seven percent.
       The House bill contained no similar provision.
       The House recedes with an amendment that would replace the 
     seven percent cost differential with a requirement that the 
     relevant departmental secretary make a finding that there is 
     a ``significant'' price difference between recycled-content 
     and virgin copier paper.
     Pilot program for the sale of air pollution emission 
         reduction incentives (sec. 351)
       The Senate amendment contained a provision (sec. 338) that 
     would support the administration's proposal to give the 
     military departments the authority to sell emission reduction 
     credits, also known as incentives. The provision directs the 
     Secretary of Defense to promulgate regulations that would 
     provide for the retention of the proceeds at the facility 
     that developed the credits for sale. The provision would also 
     allow for use of proceeds from the sale of emission reduction 
     credits to pay for fees and other charges associated with 
     identifying, quantifying, or valuing the credits. Subsequent 
     to the development of credits, less than $500,000 may be 
     retained Defense-wide.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees view the retention and use of proceeds at the 
     facility level as a key element of this provision. In 
     addition, the costs associated with identifying, quantifying, 
     or valuing a facility's emission reduction credits should not 
     be subject to the $500,000 cap on proceeds retention. 
     Finally, the conferees expect that this new authority would 
     be utilized at active facilities within the Department of 
     Defense.

                   Subtitle D--Depot-Level Activities

       The House bill contained six provisions (secs. 331-336) 
     that would govern the activities of the Department of Defense 
     (DOD) in relation to the maintenance and repair of military 
     equipment. The Senate amendment contained two similar 
     provisions, and seven additional provisions not contained in 
     the House bill.
       The conference agreement includes thirteen provisions 
     concerning depot maintenance policy. The conferees believe 
     these provisions will provide the Department with additional 
     flexibility to utilize the most efficient source of 
     maintenance and repair services that are consistent with the 
     national security requirements of the United States.
     Definition of depot-level maintenance and repair (sec. 355)
       The House bill contained a provision (sec. 333(a)) that 
     would establish a statutory definition of depot-level 
     maintenance and repair, based on the definition contained in 
     current DOD regulations. This provision would require the 
     inclusion of all depot-level maintenance and repair, 
     including maintenance performed under other names such as 
     interim contractor support (ICS) and contractor logistics 
     support (CLS), for purposes of calculating the amount of 
     depot maintenance performed by public and private sector 
     activities, as required by section 2466 of title 10, United 
     States Code, and other applicable sections.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would codify a 
     definition of depot maintenance that is similar to the 
     definition contained in the House bill, except that it would 
     not include the procurement of a major weapon system 
     modification or upgrade designed to improve program 
     performance, the nuclear refueling of an aircraft carrier, or 
     the procurement of parts for a safety modification.
     Core logistics capabilities of Department of Defense (sec. 
         356)
       The House bill contained a provision (sec. 334) that would 
     amend section 2464 of title 10, United States Code, to make 
     it clear that it is essential for national defense that the 
     Department of Defense (DOD) maintain a core logistics 
     capability that is government-owned and government-operated. 
     The provision would require the Secretary of Defense to 
     identify those logistics activities necessary to maintain a 
     core logistics capability that would include the capability, 
     facilities, and equipment to maintain and repair those 
     weapons systems necessary to meet the requirements of the 
     National Military Strategy.
       The provision would require that, within four years of 
     initial operational capability, DOD develop the capability to 
     repair new weapons systems purchased by the Department that 
     are identified as requiring a core logistics capability at 
     government-owned and government-operated facilities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to identify those logistics capabilities 
     that are necessary to maintain and repair the weapon systems 
     and other military equipment that are required to enable the 
     armed forces to fulfill the strategic and contingency plans 
     prepared by the Chairman of the Joint Chiefs of Staff. The 
     provision would require the performance of core logistics 
     workloads necessary to maintain this capability within public 
     depot activities.
       The provision does not require that maintenance for all 
     weapon systems necessary for the execution of DOD strategic 
     and contingency plans be performed at public facilities. 
     Rather, it requires that the capability to perform 
     maintenance and repair on these systems be retained in the 
     public depot activities and that these activities be assigned 
     sufficient workload to ensure that they are operated as cost 
     efficiently as possible while preserving sufficient surge 
     capacity to support the strategic and contingency plans of 
     the U.S. Armed Forces. The conferees recognize that an 
     efficient operation that preserves this surge capability does 
     not require more than a single work shift at the depots 
     during peacetime.
       The conference agreement creates specific exemptions from 
     the core capability requirements, including an exemption for 
     commercial systems purchased by DOD where these purchases do 
     not constitute a majority of the sales of that item. The 
     provision would also make conforming changes to existing 
     sections of law.
     Increase in percentage of depot-level maintenance and repair 
         that may be contracted for performance by non-government 
         personnel (sec. 357)
       The Senate amendment contained a provision (sec. 311) that 
     would allow the Department of Defense to utilize private 
     entities to perform greater amounts of depot maintenance on 
     military equipment. The provision would allow each of the 
     military departments to spend up to 50 percent of their depot 
     maintenance funds on contracts for maintenance at locations 
     other than public depots. The remaining fifty percent of 
     funding would have to be expended for maintenance at public 
     depot activities; whether performed by government or non-
     governmental personnel. This authority would become effective 
     on October 1, 1998.
       The House bill had no similar provision.
       The House recedes with an amendment that would allow the 
     military departments to increase from 40 percent to 50 
     percent the share of depot level maintenance performed by the 
     private sector. These percentages would continue to be 
     calculated based on whether the maintenance is performed 
     by public or private sector personnel.
     Annual Report on depot-level maintenance and repair (sec. 
         358)
       The Senate amendment contained a provision (sec. 314) that 
     would require the Secretary of Defense to provide an annual 
     report to the Congress detailing the percentage of depot 
     maintenance funds used during the preceding fiscal year for 
     performance of depot-level maintenance and repair workloads 
     at public and private facilities. The provision would also 
     require that the Comptroller General of the United States 
     provide the Congress with his views on whether the Department 
     of Defense has complied with the requirements of section 2466 
     of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Requirement for use of competitive procedures in contracting 
         for performance of depot-level maintenance and repair 
         workloads formerly performed at closed or realigned 
         military installations (sec. 359)
       The House bill contained a provision (sec. 333(b)) that 
     would restrict the Secretary of

[[Page H9378]]

     Defense, or the secretary of a military department, from 
     entering into a contract for the performance of depot-level 
     maintenance and repair at any facility that was approved in 
     1995 for closure under the Defense Base Closure and 
     Realignment Act (BRAC), unless the following requirements are 
     met:
       (1) The secretary concerned would certify to the Congress 
     that all of the other maintenance and repair facilities of 
     that department are at 80 percent capacity, as defined by the 
     BRAC Commission in 1995;
       (2) The secretary concerned would certify to the Congress 
     that the total cost of the proposed contract would be less 
     than if the depot-level maintenance or repair were 
     accomplished in facilities owned and operated by the 
     Department of Defense;
       (3) All of the data used to determine the total costs would 
     be available for examination; and
       (4) None of the depot-level maintenance and repair work 
     proposed under the contract was considered to be a core 
     logistics capability of the military department concerned 
     prior to July 1, 1995.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would replace the 
     restrictions on privatizing-in-place the workloads at the 
     closing public depot activities with a requirement to conduct 
     fair and open competitions for these workloads. The 
     requirement would only apply to those workloads that are 
     proposed to be competed for outsourcing after enactment of 
     the National Defense Authorization Act for Fiscal Year 1998. 
     The requirement does not apply to those workloads that may 
     not be outsourced because they are necessary to retain a core 
     depot maintenance capability in public depot activities, 
     workloads that were outsourced before the enactment of the 
     National Defense Authorization Act for Fiscal Year 1998, or 
     workloads that would be consolidated within another public 
     depot activity.
       The provision outlines a number of requirements that the 
     Department of Defense must satisfy in the conduct of these 
     competitions. The conferees understand that these are only a 
     few of the issues that the Department will have to address in 
     the solicitation for, and consideration of, bids.
       (1) The source selection process must permit both public 
     and private offerors to submit bids.
       (2) The source selection process must take into account the 
     fair market value of any land, plant, or equipment at a 
     closed or realigned military installation that is proposed to 
     be used by the private offeror in the performance of the 
     workload.
       (3) The source selection process must take into account the 
     total direct and indirect costs that will be incurred by the 
     Department of Defense and the total direct and indirect 
     savings that will be derived by the Department of Defense. 
     Such savings would include any overhead savings (e.g., 
     reduced administrative costs, more efficient utilization of 
     facilities) that would result from the consolidation of 
     workloads to the remaining public depot activities.
       (4) The cost standards used to determine the depreciation 
     of facilities and equipment shall provide, to the maximum 
     extent practicable, identical treatment for all public and 
     private offerors. The conferees expect that this will 
     include, at a minimum, identical depreciation periods for 
     plant and equipment at public and private facilities.
       (5) Any offeror, whether public or private, must be 
     permitted to team with any other public or private entity to 
     perform the workload at any location or locations of their 
     choosing. The provision specifically states that no offeror 
     may be given any preferential consideration for, or in any 
     way be limited to, performing the workload at the closed or 
     realigned facility or at any other specific location. The 
     conferees expect full and open competitions for these 
     workloads and expect that private sector bidders would submit 
     proposals to perform these workloads at locations other than 
     the closed or realigned installations. The Department would 
     be expected to consider real differences among bidders in 
     cost or capability to perform the work based on factors that 
     would include the proposed location or locations of the 
     workloads. The consideration of such differences does not 
     constitute ``preferential treatment.''
       (6) The provision would authorize the bundling of unrelated 
     workloads into one contract only if the Secretary of Defense 
     determines in writing that individual workloads cannot be 
     performed separately by qualified bidders as logically and 
     economically as the combined workloads can be performed by a 
     single entity. The conferees are concerned that the bundling 
     of these workloads could disadvantage bidders that are fully 
     qualified to perform one or more of the individual workloads 
     but cannot adequately perform all of the workloads 
     combined. This would allow more offerors to participate in 
     the competition and might yield increased savings to the 
     taxpayer.
       (7) Before a request for proposal for these workloads can 
     be issued, the Secretary of Defense must provide the Congress 
     with a detailed directive or plan describing the procedures 
     DOD would use to conduct these competitions. The conferees 
     expect that the Secretary's report will explain any 
     differences between the evaluation criteria or other 
     procedures that will be used for these upcoming competitions 
     and those that were used in the recent competition for the C-
     5 aircraft maintenance workload. The report should also 
     describe any special requirements or criteria for these 
     competitions, whether required by this provision or by the 
     Department of Defense, that the Department does not 
     anticipate applying to future public-private competitions 
     that do not involve closed or realigned facilities.
       The provision would also require that the Comptroller 
     General review the solicitations and competitions conducted 
     pursuant to this authority and determine if the Department 
     has complied with the requirements of this provision. The 
     conferees note that section 716 of title 13, United States 
     Code, gives the Comptroller General access to the information 
     necessary to make his determination. This section requires 
     each agency to provide the Comptroller General with all 
     necessary information. The Comptroller General is required to 
     maintain the same level of confidentiality for a record made 
     available under this section, as is required of the head of 
     the releasing agency. On the basis of this section, agencies 
     have historically provided the General Accounting Office with 
     information on the conduct of a procurement, regardless of 
     whether a contract has yet been awarded. The conferees expect 
     the Air Force to provide similar access in the case of 
     public-private competitions covered by this section.
       The conferees are concerned that access to information was 
     not provided to the Comptroller General during the recent 
     competition for the C-5 workload. The refusal on the part of 
     the Source Selection Authority and General Counsel of the Air 
     Force to provide such information is inexplicable given the 
     authority in title 13 cited above. The conferees note that 
     the legislation restricting access to source selection 
     material specifically states that ``[N]othing in this section 
     shall be construed to authorize the withholding of any 
     information from the Congress, any committee or subcommittee 
     thereof, a Federal agency, any board of contract appeals of a 
     Federal agency, the Comptroller General, or an Inspector 
     General of a Federal agency'' (41 U.S.C. 423).
       The new provision would also provide a mechanism for the 
     public depots (or any other offeror) to appeal directly to 
     the Secretary of Defense, or his designee, if they believe 
     the competition was conducted unfairly. The Secretary could 
     not designate the source selection authority or an official 
     within the same military department to perform this 
     responsibility. The conferees expect that the procedures 
     established by the Secretary will clarify that the Secretary 
     need not consider on the merits any protest that has already 
     been decided on the merits by the General Accounting Office.
       Finally, the provision would require the Secretary to 
     report to the Congress on the proposed allocation of 
     workloads currently performed at Kelly and McClellan Air 
     Force Bases. Although the report must include a capacity 
     utilization analysis based on the maximum potential capacity 
     certified for the 1995 Base Realignment and Closure 
     Commission, the conferees note that nothing precludes the 
     Secretary from including additional analysis that would 
     utilize any alternative baseline believed to be appropriate.
     Clarification of prohibition on management of depot employees 
         by constraints on personnel levels (sec. 360)
       The Senate amendment contained a provision (sec. 313) that 
     would prohibit the management of personnel who are involved 
     in depot maintenance on the basis of any constraint or 
     limitation in terms of man years, end strength, full-time 
     equivalent positions, or maximum number of employees.
       The House bill contained no similar provision.
       The House recedes.
       The conferees believe personnel assigned to perform depot 
     maintenance should be managed by the amount of workload 
     required to be performed and the amount of funds provided for 
     its performance.
     Centers of industrial and technical excellence (sec. 361)
       The House bill contained a provision (sec. 335) that would 
     direct the Secretary of Defense to establish Centers of 
     Industrial and Technical Excellence at existing Department of 
     Defense (DOD) maintenance and repair depots to encourage the 
     reengineering of industrial processes, the adoption of best 
     business practices, and to enable public-private partnerships 
     for the performance of depot-level maintenance and repair.
       The Senate amendment contained a similar provision (sec. 
     312).
       The House recedes with an amendment that would apply the 
     provisions of section 2667(d) of title 10, United States 
     Code, and allow lease proceeds and other receipts from these 
     partnerships to be credited to the account that incurred the 
     costs. That credit would permit the centers to be reimbursed 
     for expenses related to these partnerships. The conferees 
     direct the Secretary of Defense to annually report to the 
     congressional defense committees on the revenues received 
     pursuant to this authority.
     Extension of authority for aviation depots and naval 
         shipyards to engage in defense related production and 
         services (sec. 362)
       The House bill contained a provision (sec. 331) that would 
     extend through fiscal year 1999 the authority provided by 
     section 1425 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101--510) for naval shipyards 
     and aviation depots of all the military departments to bid on 
     defense-related production and services.

[[Page H9379]]

       The Senate amendment contained a similar provision (sec. 
     318) that would extend this authority through fiscal year 
     1998.
       The Senate recedes.
     Repeal of conditional repeal of certain depot-level 
         maintenance and repair laws and a related reporting 
         requirement (sec. 363)
       The Senate amendment contained a provision (sec. 317) that 
     would repeal section 311 of the National Defense 
     Authorization Act for Fiscal Year 1996, which would have 
     repealed sections 2466 and 2469 of title 10, United States 
     Code, contingent upon the submission of a new policy by 
     Department of Defense (DOD) to replace those statutes. 
     Section 311 would be irrelevant because the DOD failed to 
     submit an acceptable plan.
       The House bill contained no similar provision.
       The House recedes.
     Personnel reductions, Army depots participating in Army 
         Workload and Performance System (sec. 364)
       The House bill contained a provision (sec. 336) that would 
     prohibit any reduction in force of any civilian employees at 
     the five Army maintenance depots participating in the 
     demonstration and testing of the Army Workload and 
     Performance System (AWPS), until the Secretary of the Army 
     certifies to the Congress that the AWPS is fully operational 
     and the manpower audits being performed by the General 
     Accounting Office, the Army Audit Agency, and the Army 
     Inspector General have been completed.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     prohibit the initiation of any reduction in force of any 
     civilian employees at the five Army maintenance depots 
     participating in the demonstration and testing of AWPS, until 
     a report is provided by the Secretary of the Army certifies 
     to the Congress that the AWPS is fully operational. This 
     prohibition does not apply to any reductions in force 
     necessary to implement the BRAC 1995 decisions at Letterkenny 
     and Red River Army Depots. The conferees believe that because 
     this personnel system is used to determine the number of 
     employees that are necessary to perform the work at the 
     depots, it should be operational before a determination is 
     made regarding additional reductions in force. The conferees 
     do not view this provision as a precedent for prohibiting 
     reductions in force at Department of Defense installations.
     Report on allocation of core logistics activities among 
         Department of Defense facilities and private sector 
         facilities (sec. 365)
       The Senate amendment contained a provision (sec. 315) that 
     would require the Department of Defense to evaluate and 
     report to the Congress on an alternative set of criteria for 
     distinguishing core from non-core maintenance.
       The House bill contained no similar provision.
       The House recedes.
     Review of use of temporary duty assignments for ship repair 
         and maintenance (sec. 366)
       The Senate amendment contained a provision (sec. 316) that 
     would require the General Accounting Office to review the 
     Navy's policies for using Temporary Duty shipyard workers to 
     perform ship maintenance work at home ports.
       The House bill contained no similar provision.
       The House recedes.
     Sense of Congress regarding realignment of performance of 
         ground communication-electronic workload (sec. 367)
       The Senate amendment contained a provision (sec. 319) that 
     would express the Sense of the Congress that the transfer of 
     the ground communication-electronic workload to Tobyhanna 
     Army Depot, Pennsylvania, should be carried out in adherence 
     to the schedule prescribed for that transfer by the Defense 
     Depot Maintenance Council on March 13, 1997.
       The House bill contained no similar provision.
       The House recedes.

           Subtitle E--Commissaries and Nonappropriated Fund

     Reorganization of laws regarding commissaries and exchanges 
         and other morale, welfare, and recreation activities 
         (sec. 371)
       The House bill contained a provision (sec. 361) that would 
     reorganize chapter 147 of title 10, United States Code, so 
     that the chapter deals exclusively with provisions of law 
     relating to commissaries, exchanges, and other morale, 
     welfare and recreation activities.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Merchandise and pricing requirements for commissary stores 
         (sec. 372)
       The House bill contained a provision (sec. 362) that would 
     amend section 2486 of title 10, United States Code, to 
     restrict the categories of merchandise that may be sold in 
     commissaries; require that no change in the current 
     commissary surcharge could occur without a prior 
     authorization in law; and provide that the Secretary of 
     Defense may not make any change in pricing policies without 
     advance notice to Congress and a waiting period of 90 
     legislative days.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that any proposed change to the authorized product list be 
     submitted annually and would establish, in law, that the 
     amount of the surcharge would be five percent of the sale 
     price of merchandise sold.
     Limitation on noncompetitive procurement of brand-name 
         commercial items for resale in commissary stores (sec. 
         373)
       The House bill contained a provision (sec. 363) that would 
     amend section 2486(e) of title 10, United States Code, to 
     make more rigorous the standard for determining brand name 
     commercial items that may be sold by commissaries.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Treatment of revenues derived from commissary store 
         activities (sec. 374)
       The House bill contained a provision (sec. 366) that would 
     provide that amounts received by the Defense Commissary 
     Agency (DECA) from certain sources be deposited in the 
     surcharge account.
       The Senate amendment contained a similar provision (sec. 
     351).
       The House recedes with an amendment that would not permit 
     earnings from the sale of tobacco products to be deposited in 
     the surcharge account.
     Maintenance, repair, and renovation of Armed Forces 
         Recreation Center, Europe (sec. 375)
       The conferees agree to a provision that would clarify the 
     authority of the Secretary of Defense to use appropriated 
     funds to maintain, repair, and renovate real property at the 
     Armed Forces Recreation Center, Europe.
     Plan for use of public and private partnerships to benefit 
         morale, welfare and recreation activities (sec. 376)
       The House bill contained a provision (sec. 365) that would 
     permit the Secretary of Defense to authorize nonappropriated 
     fund instrumentalities to enter into leases, licensing 
     agreements, concession agreements, and other contracts with 
     private persons and state or local governments involving real 
     and personal property under the control of such 
     nonappropriated fund instrumentalities in order to facilitate 
     the provision of facilities, goods, or services to authorized 
     patrons.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to develop a comprehensive plan defining 
     the purpose and goals, and describing how the Department 
     would implement and administer leases, licensing agreements, 
     concession agreements, and other contracts with private 
     persons and state or local governments involving real and 
     personal property under the control of such nonappropriated 
     fund instrumentalities in order to facilitate the provision 
     of facilities, goods, or services to authorized patrons, and 
     submit the plan to the Congress.

                           Instrumentalities

                       Subtitle F--Other Matters

     Assistance to local educational agencies that benefit 
         dependents of members of the armed forces and Department 
         of Defense civilian employees (sec. 381)
       The House bill contained a provision (sec. 371) that would 
     authorize $35.0 million for educational assistance to local 
     education agencies where the standard for the minimum level 
     of education within the state could not be maintained because 
     of the large number of military connected students or the 
     effects of base realignments and closures.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Center for Excellence in Disaster Management and Humanitarian 
         Assistance (sec. 382)
       The Senate amendment contained a provision (sec. 362) that 
     would authorize the Secretary of Defense to operate a Center 
     for Excellence in Disaster Management and Humanitarian 
     Assistance at Tripler Army Medical Center to address the 
     military's role in a wide range of disaster initiatives 
     throughout Southeast Asia and the Pacific Basin region.
       The House bill contained no similar provision.
       The House recedes with an amendment that would not require 
     the location of this center to be at the Tripler Army Medical 
     Center.
     Applicability of Federal printing requirements to Defense 
         Automated Printing Service (sec. 383)
       The House bill contained a provision (sec. 377) that would 
     clarify that the Defense Automated Printing Service (DAPS) 
     shall comply with chapter 5 of title 44, United States Code, 
     regarding printing services.
       The Senate amendment contained no similar provision.
       The Senate recedes a technical amendment.
     Study and notification requirements for conversion of 
         commercial and industrial type functions to contractor 
         performance (sec. 384)
       The House bill contained a provision (sec. 1412) that would 
     amend current law dealing with congressional notification of 
     any decision to study a commercial function of the Department 
     of Defense for possible outsourcing to the private sector, 
     and any decision to ultimately outsource such a function.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     current law to expand

[[Page H9380]]

     congressional notifications and to include a timetable for 
     conversion to contractor performance.
     Collection and retention of cost information data on 
         contracted out services and functions (sec. 385)
       The House bill contained a provision (sec. 1413) that would 
     require the Secretary of Defense to collect and permanently 
     retain, cost information data regarding performance of the 
     service or function by private contractor employees.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     time that the data would have to be retained to ten years.
     Financial assistance to support additional duties assigned to 
         Army National Guard (sec. 386)
       The Senate amendment contained a provision (sec. 364) that 
     would authorize the Secretary of the Army to contribute funds 
     to the Army National Guard in order to pay for the costs of 
     those services carried out by the Guard in the performance of 
     maintenance and other responsibilities of the Secretary.
       The House bill contained no similar provision.
       The House recedes.
     Competitive procurement of printing and duplication services 
         (sec. 387)
       The House bill contained a provision (sec. 1404) that would 
     extend the authority under the fiscal year 1996 act that 
     would require the Secretary of Defense to procure 70 percent 
     of the non-classified printing services from the commercial 
     sector. The provision would also prohibit the Defense 
     Automation and Printing Service from imposing a surcharge on 
     printing and duplication services when those services are 
     procured outside the Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Continuation and expansion of demonstration program to 
         identify overpayments made to vendors (sec. 388)
       The House bill contained a provision (sec. 376) that would 
     reauthorize, through fiscal year 1998, section 354 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106), which provides for a demonstration 
     program to identify overpayments made to vendors. The 
     authority provided by this specific provision is restricted 
     to the identification of any overpayments and does not extend 
     to the collection of debts. Authority for the procurement of 
     debt collection services is already provided by section 3718 
     of title 31, United States Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     General Accounting Office to review the program and report to 
     Congress any significant findings such as the amount of funds 
     that were recovered, together with any problems that occurred 
     during the collection of these funds.
     Standard forms regarding performance work statement and 
         request for proposal for conversion of services and 
         functions at military installations (sec. 389)
       The House bill contained a provision (sec. 1411) that would 
     require the Secretary of Defense to develop standard 
     performance work statements and standard requests for 
     proposal to be used when considering outsourcing of 
     commercial functions. The use of such forms would provide 
     relief from certain cumbersome procedures and requirements of 
     OMB circular A-76.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would allow the 
     Secretary to develop certain forms to meet the requirements 
     of A-76. The conferees encourage the Secretary, when 
     developing such forms, to give priority to services and 
     functions that have already been converted by 50 percent.
     Base operations support for military installations on Guam 
         (sec. 390)
       The House bill contained a provision (sec. 378) that would 
     prohibit the use of nonimmigrant aliens, as defined in 
     section 101(a)(15)(H)(ii) of title 8, United States Code, for 
     any base operations support contract to be performed on Guam.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Warranty claims recovery pilot program (sec. 391)
       The Senate amendment contained a provision (sec. 367) that 
     would authorize a pilot program to recover any refunds owed 
     the Air Force for maintenance work performed in public depots 
     on aircraft engines while under warranty. Receipts under this 
     program would be returned to the appropriations account from 
     which the maintenance work was funded.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Comptroller General to review this program and report the 
     results to the Congress.
     Program to investigate fraud, waste, and abuse within 
         Department of Defense (sec. 392)
       The House bill contained a provision (sec. 372) that would 
     authorize the continuation of Operation Mongoose through 
     fiscal year 2003. The section would establish the Under 
     Secretary of Defense (Comptroller) as the executive agent for 
     this program and would require a report on the activities of 
     the operation.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that permanently 
     provides for a program in the Department of Defense that 
     coordinates the identification and prevention of fraudulent 
     financial actions within Department of Defense (DOD). The 
     conferees support the acceleration of transportation and 
     vendor pay review and believe in expanding the program to use 
     information from other government agencies to detect fraud 
     within DOD. By mining financial information, the Department 
     of Defense would be able to expand its current fraud 
     detection efforts to improve the integrity of its 
     financial management systems while reducing waste, fraud, 
     and abuse.
       In addition, the conferees direct the Secretary of Defense 
     to provide a report to the Committee on Armed Services of the 
     Senate and the Committee on National Security of the House of 
     Representatives by December 31, 1997, on the activities 
     reviewed by Operation Mongoose, the savings or costs 
     avoidance identified by activity, the number of cases 
     referred for investigation, and the number of cases 
     investigated by the investigating agency.
     Multitechnology automated reader card demonstration program 
         (sec. 393)
       The Senate bill contained a provision (sec. 369) that would 
     require the Secretary of the Navy to carry out a two year 
     demonstration program during 1998 and 1999 to expand the use 
     of multitechnology automated reader cards throughout the Navy 
     and Marine Corps. This demonstration would include the use of 
     ``smartship'' technology.
       The House bill included no similar provision.
       The House recedes.
     Plan for reduction in overhead costs of inventory control 
         points (sec. 394)
       The House bill contained a provision (sec. 1421) that would 
     require the Secretary of Defense to develop and implement a 
     plan to reduce the overhead costs of the supply management 
     activities of the Defense Logistics Agency and the military 
     services to eight percent of the annual net sales.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     development of a plan on how the Department will reduce its 
     overhead costs of the Inventory Control Points (ICPs) to 
     eight percent by October 1, 2000.
     Schedule for implementation of best inventory management 
         practices at Defense Logistic Agency (sec. 395)
       The Senate amendment contained a provision (sec. 366) that 
     would direct the Director of the Defense Logistics Agency to 
     develop and submit to Congress a schedule for the 
     implementation of the best inventory management practices 
     found in the commercial sector that are consistent with 
     military requirements.
       The House bill contained no similar provision.
       The House recedes with an amendment that would expand the 
     list of items to include pharmaceutical, automotive, and 
     other supplies.
       The conferees are concerned with recent reports of the 
     excess inventory maintained by the Department of Defense. The 
     retention of this inventory requires the expenditure of 
     resources for storage and administration. The conferees note 
     the recent General Accounting Office report outlining the 
     significant quantities of excess inventory prepositioned in 
     Europe and direct the Department to take those actions 
     necessary to reduce the items for which there is no 
     identified need and where disposal would result in long-term 
     savings to the Federal Government.

                   Legislative Provisions Not Adopted

     Quarterly reports on execution of operation and maintenance 
         appropriations
       The House bill contained a provision (sec. 317) that would 
     require the Secretary of Defense to report quarterly on the 
     execution of the operation and maintenance budget.
       The Senate amendment contained no similar provision.
       The House recedes.
     Exclusion of certain large maintenance and repair projects 
         from percentage limitation on contracting for depot-level 
         maintenance
       The House bill contained a provision (sec. 332) that would 
     exclude from the restrictions contained in section 2466 of 
     title 10, United States Code, an aircraft carrier or a 
     submarine repair or overhaul project that represents five 
     percent or more of the total amount made available to the 
     Department of the Navy for depot-level maintenance and 
     repair.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees agree that the exception to the definition of 
     depot maintenance for the refueling of nuclear aircraft 
     carriers contained within section 355 of the Act together 
     with the additional flexibility provided by the change from 
     60/40 to 50/50, should provide the same flexibility the House 
     bill intended to provide.
     Authorization to pay negotiated settlement for environmental 
         cleanup at former department of defense sites in Canada
       The House bill contained a provision (sec. 343) that would 
     authorize the Secretary of

[[Page H9381]]

     Defense to pay the Government of Canada up to $100.0 million 
     through annual payments over a ten year period for the 
     environmental cleanup of four sites formerly operated by the 
     U.S. Armed Forces in Canada: 21 Distant Early Warning (DEW) 
     Line sites; Goose Bay Airfield; Haines-Fairbanks Pipeline 
     sites; and the U.S. Naval Station, Argentia. The 
     authorization request was based on a bilateral agreement 
     between the United States and Canada. The agreement provided 
     for the payment of the $100.0 million into the Foreign 
     Military Sales (FMS) Trust Fund Account so that the Canadian 
     Government could draw against this account to purchase 
     unspecified military equipment from an undetermined 
     manufacturing source.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees decline to provide the requested 
     authorization and direct the Department to focus on funding 
     and conducting environmental cleanup at sites where there is 
     an existing legal obligation.
     Revision of report requirement of Navy program to monitor 
         ecological effects of organotin
       The House bill contained a provision (sec. 345) that would 
     extend the date and expand the scope of a reporting 
     requirement originally established in section 333 of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201).
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees intend to monitor the progress made by the 
     Environmental Protection Agency (EPA) and the Navy in 
     implementation of criteria established by EPA for control of 
     organotin. If the permitting process is not consistent with 
     the EPA criteria, the conferees are prepared to revisit this 
     issue in relation to the Department's fiscal year 1999 budget 
     request.
     Pilot program to test an alternative technology for 
         eliminating solid and liquid waste emissions during ship 
         operations
       The House bill contained a provision (sec. 347) that would 
     authorize the Secretary of the Navy to establish a pilot 
     program to demonstrate plasma arc technology for treating 
     shipboard solid and liquid waste. The technology would 
     consist of a compact, stationary, high alumina refractory 
     hearth, plasma arc melter system for incineration of waste.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that the Navy is currently investigating 
     the applications of plasma arc technology for the destruction 
     of shipboard solid waste. That work is taking place in an 
     approved research and development program. As a part of that 
     program, the Navy tested the feasibility of using a high 
     alumina refractory hearth for shipboard applications and 
     determined that the hearth structure was unacceptable because 
     the variable shipboard waste streams produce a molten slag 
     that dissolves high alumina hearth walls. However, that was 
     only one aspect of the plasma arc technology research and 
     development efforts. Therefore, the conferees encourage the 
     Navy to continue its current effort to develop the plasma arc 
     thermal destruction technology.
     Transfer of jurisdiction over exchange, commissary, and 
         morale, welfare and recreation activities to Under 
         Secretary of Defense Comptroller
       The House bill contained a provision (sec. 364) that would 
     amend section 135 of title 10, United States Code, to 
     transfer administrative responsibility within the Department 
     of Defense for the areas of exchange, commissary, and 
     nonappropriated fund instrumentalities regarding morale, 
     welfare and recreation activities from the Under Secretary of 
     Defense for Personnel and Readiness to the Under Secretary of 
     Defense (Comptroller).
       The Senate amendment contained no similar provision.
       The House recedes.
     Authorized use of appropriated funds for relocation of Navy 
         Exchange Service Command
       The House bill contained a provision (sec. 367) that would 
     provide that the Navy Exchange Service Command (NEXCOM) shall 
     not be required to reimburse the United States for 
     appropriated funds allotted to NEXCOM during fiscal years 
     1994, 1995, and 1996 for costs incurred in connection with 
     the relocation of NEXCOM headquarters to Virginia Beach, 
     Virginia and for the lease of headquarters space.
       The Senate amendment contained no similar provision.
       The House recedes.
     Prohibition on use of Special Operations Command budget for 
         base operation support
       The House bill contained a provision (sec. 375) that would 
     amend section 167(f) of title 10, United States Code, to 
     prohibit the use of funds provided for the Special Operations 
     Command for base operations support expenses incurred at 
     military installations.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that Congress established the Special 
     Operations Command, including a separate major force budget 
     program (MFP-11), to correct serious deficiencies in special 
     operations capabilities and to ensure special operations 
     combat readiness. The conferees believe that the regular 
     practice of using MFP-11 funds for base operations support 
     would be in conflict with the original intent for these 
     funds. However, the conferees recognize the need to provide 
     the Commander-in-Chief of the Special Operations Command with 
     the flexibility to use these funds in this manner should the 
     necessity arise. Therefore, the conference agreement does not 
     contain this provision. However, the conferees intend to 
     monitor this issue closely to ensure that MFP-11 funds are 
     used in a manner consistent with the intentions of Congress 
     and agree to revisit the issue should the need arise.
     Availability of funds for separation pay for defense 
         acquisition personnel
       The House bill contained a provision (sec. 1303) that would 
     authorize $100.0 million in operations and maintenance 
     funding for payment of separation pay to the Department of 
     Defense civilian acquisition personnel.
       The Senate amendment contained no similar provision.
       The House recedes.
     Competitive procurement of finance and accounting services
       The House bill contained a provision (sec. 1401) that would 
     require the Secretary of Defense to competitively procure 
     finance and accounting services currently provided by the 
     Defense Finance and Accounting Service from among government 
     and private sector sources.
       Senate amendment contained no similar provision.
       The House recedes.
     Competitive procurement of services to dispose of surplus 
         defense property
       The House bill contained a provision (sec. 1402) that would 
     require the Secretary of Defense to make available for 
     competition those functions of the Defense Reutilization and 
     Marketing Service that are associated with the disposal of 
     surplus Department of Defense property.
       The Senate amendment contained no similar provision.
       The House recedes.
     Competitive procurement of functions performed by Defense 
         Information Systems Agency
       The House bill contained a provision (sec. 1403) that would 
     require the Secretary of Defense to competitively procure 
     commercial and industrial type functions performed by the 
     Defense Information Systems Agency.
       The Senate amendment contained no similar provision.
       The House recedes.
     Competitive procurement of commercial and industrial type 
         functions by defense agencies
       The House bill contained a provision (sec. 1406) that would 
     require the Secretary of Defense to competitively procure 
     commercial and industrial type functions performed by defense 
     agencies.
       The Senate amendment contained no similar provision.
       The House recedes.
     Consolidation of procurement technical assistance centers and 
         electronic commerce resource centers
       The House bill contained a provision (sec. 1422) that would 
     require consolidation of the Procurement Technical Assistance 
     Center (PTAC) and the Electronic Commerce Resource Center 
     (ECRC) programs in fiscal year 1998. The provision would also 
     require the use of competitive procedures in granting awards 
     under the consolidated program.
       The Senate amendment contained no similar provision.
       The House recedes.
     Risk assessments under the defense environmental restoration 
         program
       The Senate amendment contained a provision (sec. 336) that 
     would direct the Secretary of Defense to define the elements 
     of a relative risk site evaluation methodology, to develop 
     uniform guidance for site assessment and ranking, and to 
     ensure consistent application of the guidance. The 
     Department's relative risk site evaluation involves three 
     site categories for justifying requirements and allocating 
     funds: high; medium; and low. According to the Department, 
     the high relative risk sites are given a greater funding 
     priority than the medium and low relative risk sites.
       The House bill contained no similar provision.
       The Senate recedes.
     Tagging system for identification of hydrocarbon fuels used 
         by the Department of Defense
       The Senate amendment contained a provision (sec. 339) that 
     would authorize the Department of Defense to conduct a pilot 
     program to determine if hydrocarbon fuels used by the 
     Department can be tagged in order to deter theft and 
     facilitate the determination of the source of surface and 
     underground pollution in locations having separate fuel 
     storage facilities from the Department and civilian 
     companies.
       The House bill contained no similar provision.
       The Senate recedes.
     Report on options for the disposal of chemical weapons and 
         agents
       The Senate amendment contained a provision (sec. 341) that 
     would require the Secretary of Defense to submit a report to 
     Congress on the options available to the Department of 
     Defense for the disposal of chemical weapons and agents 
     without building additional chemical weapons disposal 
     facilities in the continental United States.

[[Page H9382]]

       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106) directed the 
     Secretary of Defense to conduct an assessment of the chemical 
     stockpile disposal program and to consider measures that 
     could be taken to reduce program costs. Further discussion on 
     the results of the assessment are addressed elsewhere in the 
     statement of managers.
     Integration of military exchange services
       The Senate amendment contained a provision (sec. 352) that 
     would require the secretaries of the military departments to 
     integrate the three military exchange systems by September 
     30, 2000.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees endorse the concept of exchange integration. 
     The conferees recognize that the Department of Defense is 
     currently conducting a due diligence study to determine which 
     functions could be integrated to yield savings and 
     efficiencies while preserving high levels of customer 
     service. The conferees direct the Secretary of Defense, upon 
     completion of the due diligence study and if the study so 
     recommends, to develop a plan for integrating the functions 
     identified in the report. The plan must include a timeline 
     for accomplishing each of the integration functions. The plan 
     shall be submitted to the Congress not later than 120 days 
     after the due diligence study is completed.

              Title IV--Military Personnel Authorizations


                     LEGISLATIVE PROVISIONS ADOPTED

                       Subtitle A--Active Forces

     End strengths for active forces (sec. 401)
       The House bill contained a provision (sec. 401) that would 
     authorize end strengths for the active forces, as indicated 
     in the table below:

------------------------------------------------------------------------
                                                  Fiscal year 1998--    
                  Service                   ----------------------------
                                               Request    Recommendation
------------------------------------------------------------------------
Army.......................................      495,000        495,000 
Navy.......................................      390,802        395,000 
Marine Corps...............................      174,000        174,000 
Air Force..................................      371,577        381,000 
                                            ----------------------------
      Total................................    1,431,379      1,445,000 
------------------------------------------------------------------------

       The Senate amendment contained a provision (sec. 401) that 
     would authorize active duty end strengths for fiscal year 
     1998, as shown below:

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
Army:                                                                   
    Total......................      495,000     495,000       485,000  
    Officers...................       80,300    ........        80,300  
Navy:                                                                   
    Total......................      407,318     390,802       390,802  
    Officers...................       56,265    ........        55,695  
Marine Corps:                                                           
    Total......................      174,000     174,000       174,000  
    Officers...................       17,978    ........        17,978  
Air Force:                                                              
    Total......................      381,000     371,577       371,577  
    Officers...................       74,458    ........        72,732  
------------------------------------------------------------------------

       The House recedes with an amendment that would authorize 
     active duty end strengths for fiscal year 1998 as shown 
     below:

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997         1998         1998    
                                 authorization   request   authorization
------------------------------------------------------------------------
Army...........................      495,000      495,000      495,000  
Navy...........................      407,318      390,802      390,802  
Marine Corps...................      174,000      174,000      174,000  
Air Force......................      381,100      371,577      371,577  
                                ----------------------------------------
      Total....................    1,457,418    1,431,379    1,431,379  
------------------------------------------------------------------------

     Permanent end strength levels to support two major regional 
         contingencies (sec. 402)
       The Senate amendment contained a provision (sec. 402) that 
     would repeal section 691 of title 10, United States Code, as 
     amended by section 402 of the National Defense Authorization 
     Act for Fiscal Year 1997.
       The House bill contained a similar provision.
       The House recedes with an amendment that would amend 
     section 691 of title 10, United States Code to make the end 
     strength floors consistent with the active duty end strengths 
     authorized in section 401 of the conference agreement. 
     Additionally, the amendment would provide the Army one and 
     one-half percent flexibility below the floor while retaining 
     one percent flexibility for the Navy, Marine Corps and the 
     Air Force.
       The conferees are concerned about the strains being placed 
     on military personnel and their families. There is an 
     apparent incongruence between the number and frequency of 
     deployments, the extraordinary pace of operations, and the 
     continued pressure through the budget process to reduce 
     military personnel levels. The conferees intend to continue 
     to examine closely and challenge, as appropriate, any 
     recommendations of the Department of Defense, the Quadrennial 
     Defense Review, or the National Defense Panel to further 
     reduce military personnel. The conferees will be especially 
     vigilant for reductions in military personnel levels that 
     appear to be driven purely by budget pressures, and not 
     supported by the fielding modern systems that require fewer 
     personnel or changes in the requirements of the national 
     military strategy.
       The conferees note that section 691 of title 10, United 
     States Code, as amended by the conference report, requires 
     the Secretary of Defense to fully fund and maintain the end 
     strength floors in future budgets.

                       Subtitle B--Reserve Forces

     End strengths for Selected Reserve (sec. 411)
       The House bill contained a provision (sec. 411) that would 
     authorize end strengths for the Selected Reserve as indicated 
     in the table below:

------------------------------------------------------------------------
                                      Fiscal       Fiscal year 1998--   
                                     year 1997 -------------------------
                                    authorized   Request  Recommendation
------------------------------------------------------------------------
ARNG..............................    366,758    366,516       366,516  
USAR..............................    215,179    208,000       208,000  
USNR..............................     96,304     94,294        94,294  
USMCR.............................     42,000     42,000        42,000  
ANG...............................    109,178    107,377       107,377  
USAFR.............................     73,311     73,431        73,431  
Coast Guard.......................      8,000      8,000         8,000  
                                   -------------------------------------
      Total.......................    910,730    899,618       899,618  
------------------------------------------------------------------------

       The Senate amendment contained a provision (sec. 411) that 
     would authorize Selected Reserve end strengths for fiscal 
     year 1998 as shown below:

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States.................      366,758     366,516       361,516  
The Army Reserve...............      215,179     208,000       208,000  
The Naval Reserve..............       96,304      94,294        94,294  
The Marine Corps Reserve.......       42,000      42,000        42,000  
The Air National Guard of the                                           
 United States.................      109,178     107,377       108,002  
The Air Force Reserve..........       73,311      73,431        73,542  
The Coast Guard Reserve........        8,000       8,000         8,000  
------------------------------------------------------------------------

       The House recedes with an amendment that would authorize 
     Selected Reserve end strengths for fiscal year 1998 as shown 
     below:

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States.................      366,758     366,516       361,516  
The Army Reserve...............      215,179     208,000       208,000  
The Naval Reserve..............       96,304      94,294        94,294  
The Marine Corps Reserve.......       42,000      42,000        42,000  
The Air National Guard of the                                           
 United States.................      109,178     107,377       108,002  
The Air Force Reserve..........       73,311      73,431        73,542  
The Coast Guard Reserve........        8,000       8,000         8,000  
------------------------------------------------------------------------

       The conferees recommend an Army National Guard end strength 
     below the 1998 request as a result of the Off-Site Review the 
     Army announced on June 5, 1997, in which the active Army, the 
     Army Reserve, and the Army National Guard agreed on personnel 
     reductions recommended by the Quadrennial Defense Review. The 
     conferees recommend increased end strengths for the Air 
     National Guard and the Air Force Reserve to accommodate 
     retention of the PAA C-130 aircraft at current levels. The 
     conferees also recommend an adjustment to the Air Force 
     Reserve end strength consistent with the recommendation that 
     would prohibit the Secretary of the Air Force from replacing 
     civilian base security personnel with active guard and 
     reserve personnel. The conferees adjusted the recommended 
     authorization of appropriations to reflect these 
     recommendations.
     End strengths for Reserves on active duty in support of the 
         Reserves (sec. 412)
       The House bill contained a provision (sec. 412) that would 
     authorize the end strengths of the reserves on active duty in 
     support of the reserves as indicated in the table below. 
     These end strengths are included within the total end 
     strengths authorized for the Selected Reserve.

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
ARNG...........................       22,798      22,310        22,310  
USAR...........................       11,729      11,500        11,500  
USNR...........................       16,603      16,136        16,136  
USMCR..........................        2,559       2,559         2,559  
ANG............................       10,403      10,616        10,616  
USAFR..........................          655         963           748  
                                ----------------------------------------
      Total....................       64,747      64,084        63,869  
------------------------------------------------------------------------

       The Senate amendment contained a provision (sec. 412) that 
     would authorize full-time support end strengths for fiscal 
     year 1998 as shown below:

------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States.................       22,798      22,310        22,310  
The Army Reserve...............       11,729      11,500        11,500  
The Naval Reserve..............       16,603      16,136        16,136  
The Marine Corps Reserve.......        2,559       2,559         2,559  
The Air National Guard of the                                           
 United States.................       10,403      10,616        10,671  
The Air Force Reserve..........          655         963           963  
------------------------------------------------------------------------

       The House recedes with an amendment that would authorize 
     full-time support end strengths for fiscal year 1998 as shown 
     below:

[[Page H9383]]



------------------------------------------------------------------------
                                              Fiscal year--             
                                ----------------------------------------
                                      1997        1998         1998     
                                 authorization   request  recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States.................       22,798      22,310        22,310  
The Army Reserve...............       11,729      11,500        11,500  
The Naval Reserve..............       16,603      16,136        16,136  
The Marine Corps Reserve.......        2,559       2,559         2,559  
The Air National Guard of the                                           
 United States.................       10,403      10,616        10,671  
The Air Force Reserve..........          655         963           867  
                                ----------------------------------------
      Total....................       64,747      64,084        64,043  
------------------------------------------------------------------------

       The recommended change to the end strength for reserves on 
     active duty in support of the Air Force Reserve results from 
     an increase to support the retention of C-130 PAA aircraft at 
     the current levels, a reduction from the budget request 
     consistent with the recommendation that would prohibit the 
     Secretary of the Air Force from replacing civilian base 
     security personnel with active guard and reserve 
     personnel, and an increase to accommodate the creation of 
     deployable force protection teams in the Air Force 
     Reserve. The conferees adjusted the recommended 
     authorization of appropriations to reflect these changes.
       Additionally, the conferees are concerned about a range of 
     issues related to management, utilization, and assignment of 
     persons participating in the active guard and reserve 
     programs. The committees of jurisdiction intend to examine 
     these matters during the second session of the 105th 
     Congress.
     End strengths for military technicians (dual status) (sec. 
         413)
       The House bill contained a provision (sec. 413) that would 
     authorize military technician end strength as indicated by 
     the fiscal year 1998 recommendation below and would require 
     future defense budget requests to include a legislative 
     provision specifically detailing the end strength of the dual 
     status military technicians to be authorized.

------------------------------------------------------------------------
                                                 Fiscal year--          
                                     -----------------------------------
               Service                  1997      1998         1998     
                                       program   request  recommendation
------------------------------------------------------------------------
ARNG................................    23,125    22,991        23,125  
USAR................................     5,503     5,205         5,503  
ANG.................................    22,853    22,574        22,853  
USAFR...............................     9,802     9,622         9,802  
                                     -----------------------------------
      Total.........................    61,283    60,392        61,283  
------------------------------------------------------------------------

       The Senate amendment contained a provision that increased 
     above the budget request the authorized levels of military 
     technicians in the Air National Guard and in the Air Force 
     Reserve to support revised C-130 aircraft levels (sec. 413).
       The Senate recedes.

              Subtitle C--Authorization of Appropriations

     Authorization of appropriations for military personnel (sec. 
         421)
       The House bill contained a provision (sec. 421) that would 
     authorize $69,539,862,000 to be appropriated for military 
     personnel, an increase of $66,100,000 to the budget request.
       The Senate amendment contained a provision (sec. 421) that 
     would authorize $69,244,962,000 to be appropriated to the 
     Department of Defense for military personnel.
       The House recedes with an amendment that would authorize 
     $69,470,505,000 to be appropriated for military personnel.
       The conferees recommended the following modifications to 
     the budget request for military personnel:


            Fisal year 1998 Military Personnel Budget Items

                        [In millions of dollars]

Increases
  Fed. Civilian Military Leave.....................................85.0
  C-130 Force Structure (AFR & ANG).................................5.4
  Army End Strength Separation Cost................................90.0
  Increase Family Separation Pay...................................25.0
  Field Duty Income Protection.....................................18.0
  Increase Hazardous Incentive Pay.................................22.1
  Dental Pay Incentives............................................15.0
  WWII Subsistence Allowances.......................................1.0
  Transfer from Contigency Operations Funds.......................213.6
    Total Adds....................................................475.1
Reductions:
  FY 98 AC End Strength Underexecution Savings....................297.5
    Army..........................................................240.0
    Navy...........................................................10.0
    USMC............................................................3.6
    Air Force......................................................43.9
  USAF 15-year Retirement Savings..................................58.5
  Army NG 5K End Strength Reduction................................22.0
  RC Support Total Force...........................................13.0
  Health Professional Scholarship..................................25.6
  Foreign Currency Fluctuation.....................................62.0
                                                               ________
                                                               
    Total reductions..............................................478.6
Net Change from President's Budget.................................-3.5


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Increase in number of members in certain grades authorized to 
         serve on active duty in support of the reserves
       The House bill contained a provision (sec. 414) that would 
     authorize increases in the grades of reserve members 
     authorized to serve on active duty or on full-time national 
     guard duty for the administration of the reserves or the 
     national guard.
       The Senate amendment contained no similar provision.
       The House recedes.

                   Title V--Military Personnel Policy


                       ITEMS OF SPECIAL INTEREST

     Personal finance training
       The conferees are concerned about reports of personal 
     financial difficulties being experienced by military 
     personnel, especially lower ranking personnel. The conferees 
     commend the Department of Defense and the services for their 
     on-going efforts to assist and educate young service members 
     and their families in ways and means of successfully managing 
     their personal finances. The conferees urge the Secretary of 
     Defense and the Secretaries of the Military Departments to 
     review the adequacy of their training programs with regard 
     to personal finance training to ensure a continuum of 
     training that would provide all service members with the 
     basic skills required to manage their personal finances. 
     These courses should include checkbook management, credit 
     card management, and debt management.
     Sequester of Department of Defense funds as a result of a 
         prohibition against military recruiting on campuses of 
         Connecticut State colleges and universities
       The conferees are aware that the Connecticut State 
     Legislature and the State Supreme Court have taken steps to 
     prohibit military recruiting on the campuses of state funded 
     colleges and universities. As a result of this prohibition, 
     and in accordance with section 558 of the National Defense 
     Authorization Act for Fiscal Year 1995, the Department of 
     Defense suspended payment of contract and grant funding to 
     these colleges and universities.
       The conferees note that the Connecticut State Legislature 
     is not scheduled to meet until February 1998. The Governor 
     has pledged that he will ensure the passage of legislation 
     that would remedy the matter concerning access of military 
     recruiters to Connecticut state institutions of higher 
     education.
       In order to provide the State of Connecticut with the 
     opportunity to repeal its prohibition, the conferees direct 
     the Secretary of Defense not to use funds that would have 
     been used for contracts or grants to higher education 
     institutions in Connecticut as sources in a reprogramming 
     request nor to submit such funds as part of a rescission 
     offer until March 29, 1998. If the State of Connecticut has 
     not repealed the prohibition as of March 29, 1998, the 
     Secretary of Defense may use the funds in a reprogramming or 
     rescission activity.
       Notwithstanding this sequestering of funds, the conferees 
     insist that military recruiters be afforded access to 
     institutions of higher education or face the consequence of 
     loss of federal funds.

                     Legislative Provisions Adopted

                  Subtitle A--Officer Personnel Policy

     Limitation on number of general and flag officers who may 
         serve in positions outside their own service (sec. 501)
       The House bill contained a provision (sec. 501) that would 
     limit the number of general and flag officers serving in 
     external assignments to no more than 24.5 percent of the 
     total number of such officers authorized by Congress.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish 
     the number of general and flag officers serving in external 
     assignments to no more than 26.5 percent of the total number 
     of such officers authorized by Congress, and would increase 
     the length of time a general or flag officer may serve in a 
     Joint Task Force without counting against the limit imposed 
     by this provision.
       The conferees agree that the limit is computed in the 
     aggregate and not by individual service, and that the 
     designation of ``dual-hatted'' positions as external or 
     internal service billets shall be in accordance with service 
     policies and regulations.
     Exclusion of certain retired officers from limitation on 
         period of recall to active duty (sec. 502)
       The House bill contained a provision (sec. 502) that would 
     exclude retired military chaplains, health care 
     professionals, and officers serving on the American Battle 
     Monuments Commission from being subject to the statutory 
     limits on the period of time that recalled retirees may serve 
     on active duty.
       The Senate amendment contained a similar provision (sec. 
     504).
       The Senate recedes with a clarifying amendment.
     Clarification of officers eligible for consideration by 
         promotion boards (sec. 503)
       The House bill contained a provision (sec. 503) that would 
     clarify that officers serving on active duty and in the 
     reserve components may be excluded from consideration from 
     promotion to the next higher grade if they are on a promotion 
     board report, even if that report had not yet been approved 
     by the President.
       The Senate amendment contained a similar provision.
       The House recedes with a clarifying amendment.
     Authority to defer mandatory retirement for age of officers 
         serving as chaplains (sec. 504)
       The House bill contained a provision (sec. 504) that would 
     repeal the prohibition on Navy chaplains on the retired list 
     from serving as the Chief or Deputy Chief of Chaplains in the 
     Navy. This provision would also increase the mandatory 
     retirement age for the Chief or Deputy Chief of Chaplains in 
     the

[[Page H9384]]

     Navy from 62 to 68 years of age. In addition, the provision 
     would permit service secretaries to defer the retirement of 
     officers serving as chaplains until age 68 if the chaplains 
     served in direct support of units and installations.
       The Senate amendment contained a similar provision.
       The Senate recedes with an amendment that would permit 
     service secretaries to defer the retirement of chaplains 
     until age 68 as long as the secretary considers the deferment 
     in the best interest of the service.
     Increase in number of officers allowed to be frocked to 
         grades of colonel and Navy captain (sec. 505)
       The Senate amendment contained a provision (sec. 502) that 
     would increase the number of officers who may wear the grade 
     and insignia of an O-6 (colonels in the Army, Air Force, and 
     Marine Corps and captains in the Navy).
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Increased years of commissioned service for mandatory 
         retirement of regular generals and admirals in grades 
         above major general and rear admiral (sec. 506)
       The Senate amendment contained a provision (sec. 505) that 
     would increase the mandatory retirement point for three-star 
     generals and admirals to 38 years of commissioned service and 
     for four-star generals and admirals to 40 years of 
     commissioned service.
       The House bill contained no similar provision.
       The House recedes.
       The conferees do not intend that all three- and four-star 
     officers be allowed to serve to the increased mandatory 
     retirement points. The mandatory retirement points were 
     increased to permit certain general and flag officers to 
     serve long enough to develop and implement the long-term 
     plans and policies required of certain senior positions 
     without jeopardizing their chances of serving in positions of 
     increased responsibility before reaching mandatory 
     retirement. The conferees recognize that the improper 
     implementation of this provision could have serious effects 
     on the promotion flow points to other grades. The services 
     retain all of their general and flag officer management tools 
     which enable them to manage the career of those officers who 
     become the most senior leaders within the military services 
     without negatively affecting the career opportunities for 
     junior officers.
     Uniform policy for requirement of exemplary conduct by 
         commanding officers and others in authority (sec. 507)
       The Senate amendment contained a provision (sec. 554) that 
     would establish, in statute, exemplary standards for 
     commanding officers and others in positions of authority and 
     responsibility.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Report on the command selection process for District 
         Engineers of the Army Corps of Engineers (sec. 508)
       The Senate amendment contained a provision (sec. 1079) that 
     would require the Secretary of Defense to report to the 
     Congress concerning the selection and assignment policies and 
     procedures pertaining to District Engineers of the Army Corps 
     of Engineers.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of the Army to provide the report to the Congress.

                 Subtitle B--Reserve Component Matters

     Individual Ready Reserve activation authority (sec. 511)
       The House bill contained a provision (sec. 511) that would 
     authorize the President, under the Presidential Selective 
     Reserve Call-up authority, to recall up to 30,000 members of 
     a new category of the Individual Ready Reserve that would 
     consist of those personnel, in the military skills designated 
     by the Secretary of Defense, who had volunteered for this 
     category prior to leaving active duty.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Termination of Mobilization Income Insurance Program (sec. 
         512)
       The House bill contained a provision (sec. 512) that would 
     terminate the Ready Reserve Mobilization Income Insurance 
     Program effective upon enactment of the National Defense 
     Authorization Act for Fiscal Year 1998.
       The Senate amendment contained a similar provision (sec. 
     511).
       The Senate recedes.
     Correction of inequities in medical and dental care and death 
         and disability benefits for reserve members who incur or 
         aggravate an illness in the line of duty (sec. 513)
       The House bill contained a provision (sec. 513) that would 
     authorize medical and dental care for the family member of a 
     reservist who incurs or aggravates an injury or illness in 
     the line of duty while serving on active duty for a period of 
     30 days or less and whose orders are subsequently modified to 
     extend the period of active duty.
       The Senate amendment contained a similar provision (sec. 
     661).
       The Senate recedes with a clarifying amendment.
     Authority to permit non-unit assigned officers to be 
         considered by vacancy promotion board to general officer 
         grades (sec. 514)
       The House bill contained a provision (sec. 515) that would 
     authorize the Secretary of the Army to permit officers not 
     assigned to units of the Selected Reserve to compete for 
     promotion to brigadier general and major general within the 
     same promotion board process as officers who are assigned to 
     units.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Prohibition on use of Air Force Reserve AGR personnel for Air 
         Force base security functions (sec. 515)
       The House bill contained a provision (sec. 517) that would 
     prohibit the Secretary of the Air Force from using members of 
     the Air Force Reserve who are on active duty in support of 
     the reserves (known as active guard and reserve or AGR 
     personnel) to perform force protection, base security, or 
     security police functions at an Air Force facility in the 
     United States until six months after the Secretary submits a 
     report to the Congress on the use of AGR personnel in these 
     functions.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     replacing security related military technician or civilian 
     positions at the Air Force Reserve bases with AGR personnel 
     during fiscal year 1998.
       The conferees view the Air Force proposal to provide base 
     security at four Air Force Reserve bases in the United States 
     as an attempt to eliminate civilian technician positions. Use 
     of the AGRs for this security mission would replace 72 Air 
     Reserve technicians and 136 Department of Defense civilians 
     now providing base security at these bases. For these 
     reasons, the conferees would prohibit the Secretary of the 
     Air Force from utilizing AGRs for base security at United 
     States bases during fiscal year 1998. In another provision in 
     the conference report, the conferees direct the Secretary of 
     Defense to submit a report to the Congress on the feasibility 
     and advisability of converting all active guard and reserve 
     positions to military technicians. Until this study is 
     complete, any conversion of military technician positions to 
     active guard and reserve would be premature.
     Involuntary separation of reserve officers in an inactive 
         status (sec. 516)
       The Senate amendment contained a provision (sec. 512) that 
     would permit the President to discharge or retire a reserve 
     commissioned officer in an inactive status who cannot or will 
     not retire.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees expect that the service secretaries exercise 
     prudence and discretion when they use this authority. The 
     decision to involuntarily discharge or retire any officer is 
     one that must be reached only after careful deliberation. The 
     conferees do not intend that this authority be used 
     indiscriminately or to limit the career potential of 
     individual officers without compelling justification.
     Federal status of service by National Guard members as honor 
         guards at funerals of veterans (sec. 517)
       The Senate amendment contained a provision (sec. 514) that 
     would permit National Guard members who serve on funeral 
     details for veterans of the armed forces to receive credit as 
     a period of drill or training otherwise required.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees expect that participation of National Guard 
     personnel in a funeral detail or honor guard will be strictly 
     voluntary and that this authority will not be used as a basis 
     for justifying force structure, end strength, or 
     appropriations.

                    Subtitle C--Military Technicians

     Authority to retain on the reserve active-status list until 
         age 60 military technicians in the grade of brigadier 
         general (sec. 521)
       The House bill contained a provision (sec. 521) that would 
     restore the authority that existed prior to the enactment of 
     the Reserve Officer Personnel Management Act (ROPMA) that 
     permitted the Secretaries of the Army and Air Force to retain 
     brigadier general military technicians on the active-status 
     list up to age 60.
       The Senate amendment contained a similar provision (sec. 
     513).
       The Senate recedes.
     Military technicians (dual status) (sec. 522)
       The House bill contained a provision (sec. 522) that would 
     define a military technician (dual status) as a federal 
     civilian employee who is hired in accord with titles 5 or 32, 
     United States Code, and who, as a condition of federal 
     civilian employment, must maintain military membership in the 
     Selected Reserve, and who also must be assigned to a position 
     as a technician in the administration and training of the 
     Selected Reserve, or to a position in the maintenance and 
     repair of supplies or equipment issued to the Selected 
     Reserve or armed forces and require that, unless exempted by 
     law, all military technicians hired on or after December 1, 
     1995, (the date of enactment of Public Law

[[Page H9385]]

     104-61) would be required to maintain military membership in 
     the Selected Reserve unit by which they are employed as a 
     military technician, or in a unit they are employed as a 
     military technician to support.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Non-dual status military technicians (sec. 523)
       The House bill contained a provision (sec. 523) that would 
     cap the numbers of non-dual status technicians permitted in 
     each of the reserve components in fiscal year 1998, and 
     require the service secretaries in future years to reduce the 
     number of non-dual status technicians by at least 10 percent 
     per year.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the number of non-dual status technicians in each component, 
     and require the Secretary of Defense to report to the 
     Congress, not later than 90 days after enactment, the actual 
     number of non-dual status technicians in each component, and 
     to submit to Congress, not later than 180 days after 
     enactment, a plan to ensure that by the end of fiscal year 
     2007, and thereafter, all military technician positions are 
     only occupied by military technicians (dual status).
     Report on feasibility and desirability of conversion of AGR 
         personnel to military technicians (dual status) (sec. 
         524)
       The House bill contained a provision (sec. 524) that would 
     require the Secretary of Defense to report to the Congress on 
     the feasibility and desirability of converting active guard 
     and reserve personnel to dual status military technicians.
       The Senate amendment contained no similar provision.
       The Senate recedes.

  Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit 
                               Attrition

     Reform of military recruiting systems (sec. 531)
       The House bill contained a provision (sec. 531) that would 
     require the Secretary of Defense to undertake a series of 
     department-wide reforms to improve the efficiency and 
     effectiveness of military recruiting.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include the 
     use of pre-enlistment waivers among those codes and systems 
     to be revised and updated.
     Improvements in medical prescreening of applicants for 
         military service (sec. 532)
       The House bill contained a provision (sec. 532) that would 
     direct the Secretary of Defense to undertake a number of 
     reforms, to include:
       (1) Requiring each applicant for military service to 
     provide the name of the applicant's medical insurer, the 
     names of past medical providers, and a release to obtain the 
     applicant's medical records;
       (2) Revising the questions asked of applicants to tie the 
     questions more directly to conditions that most frequently 
     result in medical separations;
       (3) Assigning to a contractor or agency other than the 
     Military Entrance Processing Command (MEPCOM) the 
     responsibility for evaluating medical conditions of recruits 
     that are missed during MEPCOM's accession processing; and
       (4) Requiring all applicants for military service be tested 
     for use of illegal drugs at the MEPCOM station. The Senate 
     amendment contained no similar provision. The Senate recedes 
     with a clarifying amendment.
     Improvements in physical fitness of recruits (sec. 533)
       The House bill contained a provision (sec. 533) that would 
     direct the Secretary of Defense to undertake a range of 
     measures to improve the level of physical fitness of new 
     recruits prior to the start of basic training, including the 
     use of incentives, monetary and otherwise, for new recruits 
     in the delayed entry program to voluntarily participate in 
     supervised conditioning activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees expect that any activities developed to 
     improve the physical fitness of recruits will be organized, 
     formally scheduled, and supervised by personnel who have been 
     appropriately trained to conduct physical readiness training. 
     The conferees do not intend that recruits will be afforded 
     unescorted, unsupervised access to military fitness 
     facilities.

              Subtitle E--Military Education and Training

                   Part I--Officer Education Programs

     Requirement for candidates for admission to United States 
         Naval Academy to take oath of allegiance (sec. 541)
       The House bill contained a provision (sec. 543) that would 
     codify what now is implemented by policy--that persons 
     seeking admission to the United States Naval Academy take and 
     subscribe to an oath of allegiance to the United States as a 
     requirement for admission. This provision would make the 
     requirement for an oath consistent in law for all three 
     service academies.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Service academy foreign exchange program (sec. 542)
       The House bill contained a provision (sec. 546) that would 
     authorize the Air Force Academy to enter into agreements with 
     foreign governments in order to carry out a military academy 
     foreign exchange program.
       The Senate amendment contained a provision (sec. 521) that 
     would authorize exchange programs at each of the service 
     academies.
       The Senate recedes with an amendment that would authorize 
     exchange programs at all three service academies and would 
     establish cost and enrollment limits.
     Reimbursement of expenses incurred for instruction at service 
         academies of persons from foreign countries (sec. 543)
       The House bill contained a provision (sec. 544) that would 
     constrain the Secretary of Defense's waiver authority for the 
     cost of attendance for international students entering the 
     service academies after the date of enactment to no more than 
     25 percent of the per-person cost of attendance by an 
     international student, but would permit the Secretary, in 
     exceptional cases, to waive more than 25 per cent of the cost 
     for up to five international students at each of the service 
     academies, and would recommend a reduction in fiscal year 
     1998 of $4.2 million in Defense-wide Operations and 
     Maintenance accounts and a $1.0 million reduction in the 
     amounts authorized for military personnel in the Army, Navy 
     and Air Force.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish 
     the amount of the cost of attendance for international 
     students at the service academies permitted to be waived at 
     35 percent, but would permit the Secretary to waive more than 
     35 per cent of the cost for up to five international students 
     at each of the service academies, would make the restrictions 
     effective for students entering the academies after May 1998, 
     and would restore the reductions to the military personnel 
     and operations and maintenance accounts.
     Continuation of support to senior military colleges (sec. 
         544)
       The House bill contained a provision (sec. 567) that would 
     require that the Secretary of Defense continue support to the 
     senior military colleges (Texas A&M University, Norwich 
     University, The Virginia Military Institute, The Citadel, 
     Virginia Polytechnic Institute and State University, and 
     North Georgia College and State University) in three 
     principal ways: 1) retention of the long-standing 
     commitment by the Army to provide active duty service for 
     all graduates of the colleges who desire it and who are 
     recommended for it by their respective professors of 
     military science; 2) participation by the active duty 
     personnel assigned to the Reserve Officers' Training Corps 
     (ROTC) detachments at each college in the leadership, 
     academic and military development of the corps of cadets, 
     beyond ROTC programs; and 3) continued operation of the 
     ROTC program at each of the colleges.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would ensure 
     active duty service for graduates of the senior military 
     colleges who request such service, who are medically and 
     physically qualified, and are recommended by the professor of 
     military science. Additionally, the amendment would ensure 
     continued operation of the ROTC program at each of the senior 
     military colleges.
     Report on making United States nationals eligible for 
         participation in Senior Reserve Officers' Training Corps 
         (sec. 545)
       The House bill contained a provision (sec. 572) that would 
     require the Secretary of Defense to report to the Congress on 
     the utility of permitting United States nationals to 
     participate in the Senior Reserve Officers' Training Corps.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Coordination of establishment and maintenance of Junior 
         Reserve Officers' Training Corps units to maximize 
         enrollment and enhance efficiency (sec. 546)
       The Senate amendment contained a provision (sec. 525) that 
     would require the Secretary of Defense to coordinate the 
     establishment and maintenance of Junior Reserve Officers' 
     Training Corps in order to maximize enrollment and to take 
     into consideration openings of new schools and consolidation 
     of schools.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     requirement from the Secretary of Defense to the secretaries 
     of the military departments and delete the requirement that 
     the Secretary of Defense seek additional funding from the 
     local educational agencies.

                    Part II--Other Education Matters

     United States Naval Postgraduate School (sec. 551)
       The House bill contained a provision (sec. 545) that would 
     amend the current authority governing admittance of civilians 
     at the Naval Postgraduate School, and create new authority to 
     admit enlisted personnel to the school. Thus, the section 
     would authorize the Secretary of the Navy to admit civilians 
     on a space-available basis, with reimbursement being required 
     either on an in-kind basis or on a cost-reimbursable basis, 
     and would also authorize enlisted members to attend courses 
     on a space-available basis.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit 
     enlisted personnel to attend courses on a space-available 
     basis.

[[Page H9386]]

     Community College of the Air Force (sec. 552)
       The House bill contained a provision (sec. 573) that would 
     permit enlisted members of the Army, Navy, or Marine Corps 
     who are assigned as instructors in Air Force technical 
     schools and enlisted students in Air Force training programs 
     to participate in and receive associate degrees through the 
     Community College of the Air Force.
       The Senate amendment contained a provision (sec. 522) that 
     would permit enlisted members of the Army, Navy, or Marine 
     Corps who are assigned as instructors in Air Force technical 
     schools to participate in and receive associate degrees 
     through the Community College of the Air Force.
       The House recedes with a clarifying amendment.
     Preservation of entitlement to educational assistance of 
         members of the Selected Reserve serving on active duty in 
         support of a contingency operation (sec. 553)
       The Senate amendment contained a provision (sec. 523) that 
     would ensure that members of the Selected Reserve who are 
     ordered to active duty in support of a contingency operation, 
     and required to discontinue a course of study under the GI 
     Bill benefit, would not have those months charged against 
     their GI Bill entitlement.
       The House bill contained no similar provision.
       The House recedes.

               Part III--Training of Army Drill Sergeants

     Reform of Army drill sergeant selection and training process 
         (sec. 556)
       The House bill contained a provision (sec. 542) that would 
     require the Secretary of the Army to institute a number of 
     reforms in the processes by which drill sergeants are 
     selected and trained.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Training in human relations matters for Army drill sergeant 
         trainees (sec. 557)
       The House bill contained a provision (sec. 547) that would 
     require the Secretary of the Army to expand the human 
     relations instruction now provided to drill sergeant trainees 
     to at least two days of instruction.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.

 Subtitle F--Commission on Military Training and Gender-Related Issues

     Commission on Military Training and Gender-Related Issues 
         (secs. 561-566)
       The House bill contained a provision (sec. 541) that would 
     require the establishment of a panel to review the basic 
     training programs of the Army, Navy, Air Force, and Marine 
     Corps, and to make recommendations for improvements to these 
     programs.
       The Senate amendment contained a provision (sec. 552) that 
     would establish an 11-member commission to study issues 
     related to gender integration in the military services.
       The House recedes with an amendment that would integrate 
     the scope of the independent panel into that of the 
     commission, and reduce the membership of the commission to 
     10, five of which would be appointed by the chairman and 
     ranking member of the Committee on Armed Services of the 
     Senate and the remaining five appointed by the chairman and 
     ranking member of the National Security Committee of the 
     House of Representatives.
       The House bill contained a provision (sec. 548) that would 
     require each of the secretaries of military departments to 
     submit a report to the Committee on Armed Services of the 
     Senate and the National Security Committee of the House of 
     Representatives, within 180 days after the date of enactment, 
     on gender-segregated basic training.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would incorporate 
     the information required by the report into the provision 
     that would establish a commission for review of gender 
     integration in the military departments.

              Subtitle G--Military Decorations and Awards

     Purple Heart to be awarded only to members of the Armed 
         Forces (sec. 571)
       The House bill contained a provision (sec. 552) that would 
     limit eligibility for the award of the Purple Heart to 
     members of the armed forces.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Eligibility for Armed Forces Expeditionary Medal for 
         participation in Operation Joint Endeavor or Operation 
         Joint Guard (sec. 572)
       The House bill contained a provision (sec. 553) that would 
     require the Secretary of Defense to designate participation 
     by service members in Operation Joint Endeavor or Operation 
     Joint Guard in the Republic of Bosnia and Herzegovina as 
     meeting the requirements for award of the Armed Forces 
     Expeditionary Medal.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Clarification of eligibility of members of Ready Reserve for 
         award of service medal for heroism (sec. 574)
       The Senate amendment contained a provision (sec. 531) that 
     would authorize members of the Ready Reserve to be awarded 
     the service medal for heroism on the same basis as active 
     duty service members.
       The House bill contained no similar provision.
       The House recedes.
     One-year extension of period for receipt of recommendations 
         for decorations and awards for certain military 
         intelligence personnel (sec. 575)
       The Senate amendment contained a provision (sec. 533) that 
     would extend, by one year, the time in which military 
     intelligence personnel could apply for consideration of an 
     award for service in the Cold War era.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Eligibility of certain World War II military organizations 
         for award of unit decorations (sec. 576)
       The Senate amendment contained a provision (sec. 534) that 
     would authorize the service secretaries to award a unit 
     decoration to any unit or other organization of the armed 
     forces of the United States that supported the planning or 
     execution of combat operations during World War II.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Retroactivity of Medal of Honor special pension (sec. 577)
       The Senate amendment contained a provision (sec. 535) that 
     would authorize retroactive payment of the special pension to 
     which recipients of the Medal of Honor are entitled to those 
     African-American World War II soldiers who were awarded the 
     Medal of Honor as a result of legislation in the National 
     Defense Authorization Act for Fiscal Year 1996.
       The House bill contained no similar provision.
       The House recedes.

                  Subtitle H--Military Justice Matters

     Amendments to the Uniform Code of Military Justice (secs. 581 
         and 582)
       The House bill contained two provisions (secs. 569 and 570) 
     that would amend the Uniform Code of Military Justice. 
     Section 569 would authorize a general court-martial to 
     adjudge a sentence of confinement for life without 
     eligibility for parole. Section 570 would limit to the 
     President or the Secretary concerned, without delegation, 
     the authority to grant parole to an offender serving a 
     life sentence on appeal from a denial of parole.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                       Subtitle I--Other Matters

     Sexual harassment investigations and reports (sec. 591)
       The Senate amendment contained a provision (sec. 553) that 
     would establish rigorous reporting requirements and time 
     lines for completing investigations into allegations of 
     sexual harassment within the armed services.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Sense of the Senate regarding study of matters relating to 
         gender equity in the Armed Forces (sec. 592)
       The Senate amendment contained a provision (sec. 551) that 
     would express the sense of the Congress that the Comptroller 
     General of the United States should conduct a study on any 
     inequality, or perception of inequality, in the treatment of 
     men and women in the armed forces and report to Congress 
     within one year of enactment of the National Defense 
     Authorization Act for Fiscal Year 1998.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of the Senate that the Comptroller General of the 
     United States should conduct a study on any inequality, or 
     perception of inequality, in the treatment of men and women 
     in the armed forces and report to the Senate within one year 
     of enactment of the National Defense Authorization Act for 
     Fiscal Year 1998.
     Authority for personnel to participate in management of 
         certain non-Federal entities (sec. 593)
       The House bill contained a provision (sec. 563) that would 
     authorize service secretaries to approve on a case-by-case 
     basis the limited service of military and civilian personnel 
     as directors, trustees, or officers of a military welfare 
     society, such as Army Emergency Relief, or other designated 
     entities.
       The Senate amendment contained a similar provision (sec. 
     555).
       The Senate recedes with an amendment that would require 
     that the approved non-Federal agencies be limited to not-for-
     profit agencies and would not permit participation as part of 
     the service member's official duties.
       The conferees support the participation of military and 
     civilian personnel in the military welfare agencies and other 
     non-Federal, not-for-profit entities without compensation and 
     at no cost to the Federal Government.

[[Page H9387]]

     Treatment of participation of members in Department of 
         Defense civil military programs (sec. 594)
       The House bill contained a provision (sec. 566) that would 
     prohibit the secretary of a military department from 
     requiring or requesting a service member to submit, for 
     consideration by a selection board, evidence of the service 
     member's support and service to non-Department of Defense 
     organizations. In addition, the section would prohibit 
     promotion and selection boards from using involvement in 
     civil-military and community support programs as a special 
     evaluation criteria.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would permit 
     consideration by promotion boards of voluntarily submitted 
     information. The conferees recognize that there are currently 
     precise policies governing communication with and information 
     available to selection boards.
     Comptroller General study of Department of Defense civil 
         military programs (sec. 595)
       The House bill contained a provision (sec. 565) that would 
     require the Comptroller General to conduct a study to 
     evaluate the civil military programs of the military 
     services.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Establishment of public affairs specialty in the Army (sec. 
         596)
       The House bill contained a provision (sec. 571) that would 
     establish public affairs as a special branch of the Army.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish a 
     public affairs speciality within the Army.
     Grade of defense attache in France (sec. 597)
       The Senate amendment contained a provision (sec. 557) that 
     would require the Secretary of Defense and Chairman of the 
     Joint Chiefs of Staff to ensure that the defense attache in 
     France is an officer who holds or is promotable to the grade 
     of brigadier general or, in the case of the Navy, rear 
     admiral (lower half).
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Report on crew requirements of WC-130J aircraft (sec. 598)
       The House bill contained a provision (sec. 564) that would 
     preclude navigator and other manpower requirements of units 
     engaged in eyewall penetration of tropical cyclones from 
     being reduced below the requirements established as of 
     October 1, 1997 until the end of a six-month period after the 
     Secretary of the Air Force reports to the Congress on the 
     manpower requirements for WC-130J aircraft.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the prohibition on reducing personnel levels in WC-130J 
     units, and would add a requirement that the Secretary of the 
     Air Force submit a plan to the Congress for assisting 
     personnel in these units transition to other units or job 
     specialities.
     Improvement of missing persons authorities applicable to 
         Department of Defense (sec. 599)
       The House bill contained a provision (sec. 568) that would 
     restore provisions pertaining to U.S. prisoners of war, those 
     missing in action, and unaccounted for persons, enacted in 
     the National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106) and subsequently repealed by the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201). Specifically, the section would expand 
     the scope of current law by:
       (1) Making it applicable to Department of Defense civilians 
     and contractors accompanying armed forces in the field;
       (2) Establish a 48-hour suspense for the commander's 
     initial report of a missing person's status;
       (3) Require the theater component commander's involvement 
     in the initial assessment of a missing person's status;
       (4) Require the status of persons who were last known alive 
     to be reviewed every 3 years for 30 years following initial 
     report;
       (5) Re-establish criminal penalties for the knowing and 
     willful withholding of information from a missing person's 
     file;
       (6) Restore the requirement that a status review board 
     (when making determinations of death) must provide a 
     description of the location of body, if recovered, and, if 
     the body is not identifiable, a certification by ``a 
     practitioner of an appropriate forensic science that the body 
     recovered is that of the missing person;'' and
       (7) Restore the ability of certain persons to request 
     status reviews of a limited number of Korean War cases.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would expand 
     current law:
       (1) Making it applicable to certain Department of Defense 
     civilians and contractors in direct support of or 
     accompanying armed forces in the field;
       (2) Require that an advisory copy of a missing person 
     report be provided to the theater component commander;
       (3) Require that if a body is recovered, and is not 
     identifiable by visual means, a certification by a forensic 
     pathologist that the body recovered is that of the missing 
     person is required before the status may be changed;
       (4) For pre-enactment cases, define ``new information'' as 
     information found or received by the primary next of kin, 
     member of the immediate family or a previously designated 
     person or information that is identified in records of the 
     United States that is relevant to the case of one or more 
     unaccounted for persons, and require that such information be 
     credible before a new file is created;
       (5) Require that the identity of the counsel for the 
     missing person be made known to the primary next of kin or 
     the previously designated person, and permit the primary next 
     of kin or the previously designated person to provide 
     information to the counsel of the missing person in 
     connection with the initial review board;
       (6) Require that an extract of any debriefing report be 
     placed in the file of every missing person mentioned in the 
     report; require that an extract of such debriefing reports be 
     made available to family members of missing persons, or if 
     the reports are withheld, notify the family that such 
     information exists; and
       (7) Require that, if as allowed by law, classified 
     information is withheld from the file of a missing person,the 
     notice of that withholding be made reasonably available to 
     the families of the missing person.

                   Legislative Provisions Not Adopted

     Time-in-grade requirements for reserve commissioned officers 
         retired during the drawdown period
       The House bill contained a provision (sec. 514) that would 
     authorize the secretaries of the military departments to 
     reduce the required time in grade for a reserve officer to 
     retire in the highest grade held from three to not less than 
     two years.
       The Senate amendment contained no similar provision.
       The House recedes.
     Grade requirement for officers eligible to serve on 
         involuntary separation boards
       The House bill contained a provision (sec. 516) that would 
     reduce the grade required for officer separation board 
     members in the reserve components from 0-6 and above to 0-5 
     and above.
       The Senate amendment contained no similar provision.
       The House recedes.
     Study of new decorations for injury or death in line of duty
       The House bill contained a provision (sec. 551) that would 
     require the Secretary of Defense, in cooperation with the 
     secretaries of the military departments and the Secretary of 
     the Treasury with regard to the Coast Guard, to determine the 
     appropriate name, policy, award criteria, and design for two 
     new decorations.
       The Senate amendment contained no similar provision.
       The House recedes.
     Suspension of temporary early retirement authority
       The House bill contained a provision (sec. 561) that would 
     suspend the authorization for the early retirement program 
     during fiscal year 1998.
       The Senate amendment contained no similar provision.
       The House recedes.
       Recognizing the savings that can be achieved by using this 
     authority early in the year, the conferees reduced the amount 
     authorized to be appropriated to the Air Force for this 
     program by $49.0 million.
     Treatment of educational accomplishments of National Guard 
         ChalleNGe program participants
       The House bill contained a provision (sec. 562) that would 
     deem a general education diploma certificate achieved as a 
     result of the individual's participation in a National Guard 
     ChalleNGe program the same as a high school diploma for the 
     purpose of determining the eligibility of the person for 
     enlistment in the armed forces.
       The Senate amendment contained no similar provision
       The House recedes.
     Repeal of certain staffing and safety requirements for the 
         Army Ranger Training Brigade
       The Senate amendment contained a provision (sec. 524) that 
     would repeal section 4303 of title 10, United States Code, 
     which specified minimum manning levels for the Ranger 
     Training Brigade and required the establishment of training 
     safety cells.
       The House bill contained no similar provision.
       The Senate recedes.

          Title VI--Compensation and Other Personnel Benefits

                     Legislative Provisions Adopted

                     Subtitle A--Pay and Allowances

     Increase in basic pay for fiscal year 1998 (sec. 601)
       The House bill contained a provision (sec. 601) that would 
     provide a 2.8 percent military pay raise as proposed in the 
     President's budget request.
       The Senate amendment contained a provision (sec. 601) that 
     would waive section 1009 of title 37, United States Code, and 
     increase the rates of basic pay for members of the uniformed 
     services by 2.8 percent effective January 1, 1998.

[[Page H9388]]

       The Senate recedes with a clarifying amendment.
     Reform of basic allowance for subsistence (sec. 602)
       The House bill contained a provision (sec. 603) that would 
     re-engineer the basic allowance for subsistence (BAS) by 
     providing the Secretary of Defense greater flexibility to 
     continue to pay BAS when rations in kind are available; index 
     the annual growth in the subsistence allowance to increases 
     in the cost of the moderate food plan of the U.S. Department 
     of Agriculture; and repeal the current process of increasing 
     the basic allowance for subsistence at the same rate as the 
     military pay raise.
       The Senate amendment contained three provisions (sec. 611-
     613) that would reform the BAS for all members of the 
     uniformed services by linking the BAS for officers and 
     enlisted members to the Department of Agriculture food plan 
     indexes; provide a transition period during which annual 
     increases in the current enlisted allowance would be limited 
     to one percent until such time as the transition period 
     allowance equals the new Department of Agriculture based 
     allowance; and provide a new, partial subsistence allowance 
     for junior enlisted personnel who are not currently eligible 
     for any subsistence allowance.
       The House recedes with an amendment that would merge the 
     provisions into one.
     Consolidation of basic allowance for quarters, variable 
         housing allowance, and overseas housing allowances (sec. 
         603)
       The House bill contained a provision (sec. 604) that would 
     consolidate the basic allowance for quarters and the variable 
     housing allowance; would authorize $35.0 million to reduce 
     out-of-pocket housing costs for individuals receiving Basic 
     Allowance for Quarters; would index the annual growth in 
     housing allowances to increases in the national average 
     monthly cost of housing; repeal the current process of 
     increasing the basic allowance for quarters at the same rate 
     as the military pay raise; incorporate the authorities for 
     overseas station housing allowance and family separation 
     housing allowance; and would protect service members from 
     reductions in the rate of overseas station allowance not 
     attributable to fluctuations in foreign currency rates, so 
     long as the member's housing costs have not been reduced.
       The Senate amendment contained six provisions (sec. 616, 
     617, 619-622) that would adopt a single, price-based housing 
     allowance based on a national index of housing costs and 
     authorize a housing allowance that would vary with pay grade 
     and dependency status and would be based on local private 
     sector housing costs.
       The Senate recedes with an amendment that would merge the 
     provisions into one, except that the conferees did not agree 
     to authorize $35.0 million to reduce out-of-pocket housing 
     costs.
     Revision of authority to adjust compensation necessitated by 
         reform of subsistence and housing allowances (sec. 604)
       The Senate amendment contained a provision (sec. 626) that 
     would revise the authority to adjust compensation of 
     uniformed services personnel when federal civilian pay is 
     adjusted.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees direct the Secretary of Defense to study the 
     need for and cost effectiveness of establishing a locality 
     pay system for military personnel that is comparable to the 
     system in place for federal civilian employees, and to report 
     the results of the study to the Committee on Armed Services 
     of the Senate and the Committee on National Security of the 
     House of Representatives, not later than March 31, 1998.
     Protection of total compensation of members while performing 
         certain duty (sec. 605)
       The House bill contained a provision (sec. 602) that would 
     repeal the legislative link between military and federal 
     civilian pay raises and would require military pay raises to 
     be independently calculated using the Employment Cost Index 
     and would ensure that total pay and allowances of a service 
     member will not be reduced when assigned to field conditions 
     at home station or temporary duty away from home station.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would ensure that 
     the total pay and allowances of a service member will not be 
     reduced when the service member is assigned to field duty at 
     home station or to temporary duty away from home station and 
     would strike the remainder of the provision.

           Subtitle B--Bonuses and Special and Incentive Pays

     One-year extension of certain bonuses and special pay 
         authorities for reserve forces (sec. 611)
       The House bill contained a provision (sec. 611) that would 
     extend the authority for the selected reserve reenlistment 
     bonus, the selected reserve enlistment bonus, the selected 
     reserve affiliation bonus, the ready reserve enlistment and 
     reenlistment bonus, and the prior service enlistment bonus 
     until September 30, 1999.
       The Senate amendment contained a provision (sec. 631) that 
     would extend the authority to pay the special pay for 
     critically short wartime health specialists in the Selected 
     Reserve, the Selected Reserve reenlistment bonuses, the 
     Selected Reserve enlistment bonuses, the special pay for 
     enlisted members assigned to certain high priority units in 
     the Selected Reserve, the Selected Reserve affiliation bonus, 
     the Ready Reserve enlistment and reenlistment bonus, the 
     repayment of loans for certain health professionals who serve 
     in the Selected Reserve, and the prior service enlistment 
     bonus until September 30, 1999.
       The House recedes with a clarifying amendment.
     One-year extension of certain bonuses and special pay 
         authorities for nurse officer candidates, registered 
         nurses, and nurse anesthetists (sec. 612)
       The House bill contained a provision (sec. 612) that would 
     extend the authority for the nurse officer candidate 
     accession program, the accession bonus for registered nurses, 
     and the incentive special pay for nurse anesthetists until 
     September 30, 1999.
       The Senate amendment contained a provision (sec. 632) that 
     would extend the authority to pay certain bonuses and special 
     pays for nurse officer candidates, registered nurses, and 
     nurse anesthetists until September 30, 1999.
       The Senate recedes.
     One-year extension of authorities relating to payment of 
         other bonuses and special pays (sec. 613)
       The House bill contained a provision (sec. 613) that would 
     extend the authority for the aviation officer retention 
     bonus, special pay for health care professionals who serve in 
     the selected reserve in critically short wartime specialties, 
     reenlistment bonus for active members, enlistment bonuses for 
     critical skills, special pay for enlisted members of the 
     selected reserve assigned to certain high priority units, 
     special pay for nuclear qualified officers extending the 
     period of active service, and nuclear career accession bonus 
     to September 30, 1999. The provision would also extend the 
     authority for repayment of educational loans for certain 
     health professionals who serve in the selected reserve and 
     the nuclear career annual incentive bonus until October 1, 
     1999.
       The Senate amendment contained a provision (sec. 633) that 
     would extend the authority to pay the aviation officer 
     retention bonus, the reenlistment bonus for active members, 
     the enlistment bonuses for critical skills, the special pay 
     for nuclear qualified officers extending the period of active 
     service, the nuclear career accession bonus, and the nuclear 
     career annual incentive bonus until September 30, 1999.
       The Senate recedes with a clarifying amendment.
     Increase in minimum monthly rate of hazardous duty incentive 
         pay for certain members (sec. 614)
       The House bill contained a provision (sec. 614) that would 
     increase the amount paid to service members engaged in 
     certain hazardous duties to $150 a month; would increase the 
     minimum amount paid to service members engaged in non-aviator 
     aircrew duties and air weapons controller aircrew duties to 
     $150 a month; and would increase the amount paid to service 
     members engaged in free fall parachute jumping to $225 a 
     month.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       To provide for the increases, the conferees recommend an 
     increase of $22.1 million in the military personnel accounts.
     Increase in aviation career incentive pay (sec. 615)
       The Senate amendment contained a provision (sec. 634) that 
     would increase the aviation career incentive pay for aviators 
     with more than 14 years of service. The recommended provision 
     would be effective October 1, 1998.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     effective date to January 1, 1999.
     Modification of aviation officer retention bonus (sec. 616)
       The Senate amendment contained a provision (sec. 635) that 
     increase the maximum amount of the aviation officer 
     continuation pay from $12,000 to $25,000.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     required years of committment to receive a bonus.
     Availability of multiyear retention bonus for dental officers 
         (sec. 617)
       The House bill contained a provision (sec. 615) that would 
     amend section 301d of title 37, United States Code, to give 
     the Secretary of Defense discretionary authority to provide 
     multi-year contracts to dental officers, particularly 
     critical specialists. These contracts would obligate dentists 
     for up to four years and would enhance retention and 
     management of the dental corps. The provision would require 
     that dentists with a specialty in oral and maxillofacial 
     surgery with at least eight years of service be automatically 
     eligible for these contracts.
       The Senate amendment contained a provision (sec. 636) that 
     would authorize multiyear retention bonuses for dental 
     officers similar to those authorized for medical officers.
       The Senate recedes.
     Increase in variable and additional special pays for certain 
         dental officers (sec. 618)
       The House bill contained a provision (sec. 616) that would 
     amend section 302b(a) of title

[[Page H9389]]

     37, United States Code, to increase special pay for dental 
     officers with eight or more years of service.
       The Senate amendment contained a provision (sec. 637) that 
     would increase the amount of the special pay for dental 
     officers of the armed forces and modify the number of years 
     of service required to qualify for certain levels of the 
     special pay.
       The Senate recedes.
     Availability of special pay for duty at designated hardship 
         duty locations (sec. 619)
       The House bill contained a provision (sec. 617) that would 
     authorize a hardship duty pay for service members serving in 
     locations that present quality of life hardships up to a 
     maximum of $300 per month.
       The Senate amendment contained no similar provision.
       The Senate recedes a clarifying amendment.
     Definition of sea duty for purposes of career sea pay (sec. 
         620)
       The House bill contained a provision (sec. 651) that would 
     authorize duty on a ship-based staff to be designated as sea 
     duty for the purpose of qualifying for career sea pay.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Modification of Selected Reserve reenlistment bonus (sec. 
         621)
       The House bill contained a provision (sec. 618) that would 
     restructure the payment options available to the secretaries 
     of the military departments for the Selected Reserve 
     reenlistment bonus, and would extend the period of 
     eligibility for the bonus from members with less than 10 
     years total military service to members with less than 14 
     years service.
       The Senate amendment contained a provision (sec. 638) that 
     would provide service secretaries discretionary authority to 
     determine the annual payment amounts for reserve reenlistment 
     bonuses. The initial payment would be limited to not more 
     than one-half of the total bonus. The recommended provision 
     would also permit a member to receive a bonus when electing a 
     three-year term of reenlistment twice in lieu of a single 
     six-year term.
       The House recedes with a clarifying amendment.
     Modification of Selected Reserve enlistment bonus for former 
         enlisted members (sec. 622)
       The House bill contained a provision (sec. 619) that would 
     restructure the payment options available to the secretaries 
     of the military departments for the Selected Reserve 
     enlistment bonus for former enlisted members, and would 
     extend the period of eligibility for the bonus from members 
     with less than 10 years total military service to those with 
     less than 14 years service.
       The Senate amendment contained a provision (sec. 639) that 
     would modify the Selected Reserve prior service enlistment 
     bonus to permit a member to receive a bonus for a three-year 
     term of enlistment and a subsequent three-year reenlistment 
     in lieu of a single six-year enlistment option.
       The Senate recedes with a clarifying amendment.
     Expansion of reserve affiliation bonus to include Coast Guard 
         Reserve (sec. 623)
       The House bill contained a provision (sec. 623) that would 
     extend the authority to pay a bonus for separating active 
     duty personnel who agree to serve in a reserve unit to the 
     Coast Guard Reserve.
       The Senate amendment contained a similar provision.
       The House recedes with a clarifying amendment.
     Increase in special pay and bonuses for nuclear-qualified 
         officers (sec. 624)
       The Senate amendment contained a provision (sec. 640) that 
     would increase the maximum authorized rate for three nuclear 
     special pays and bonuses for nuclear qualified officers of 
     the Navy.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Provision of bonuses in lieu of special pay for enlisted 
         members extending tours of duty at designated locations 
         overseas (sec. 625)
       The House bill contained a provision (sec. 620) that would 
     authorize the payment of a bonus, as an alternative to a 
     monthly special pay, to enlisted members who extend their 
     tours of duty overseas.
       The Senate amendment contained a provision (sec. 641) that 
     would authorize the service secretaries to pay a lump sum 
     payment of up to $2,000 per year to qualified enlisted 
     members who extend their duty at designated overseas 
     locations. The recommended provision:
       (1) authorizes the service secretaries to fix the rate of 
     payment as of the date of the extension agreement is accepted 
     by the service;
       (2) establishes the government's ability to recover 
     payments for which service agreements are not completed; and
       (3) removes the entitlement to such payment for those 
     members who elect to receive government-funded rest and 
     recuperative absences or transportation.
       The House recedes with a clarifying amendment.
     Increase in amount of family separation allowance (sec. 626)
       The House bill contained a provision (sec. 621) that would 
     increase the amount of family separation allowance paid to 
     service members to $100 a month.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       To provide for the increase, the conferees agree to 
     authorize an increase of $25.0 million in the military 
     personnel accounts.
     Deadline for payment of Ready Reserve muster duty allowance 
         (sec. 627)
       The House bill contained a provision (sec. 622) that would 
     authorize the payment of the muster duty allowance not later 
     than 30 days after the service member performs the duty.
       The Senate amendment contained a provision (sec. 627) that 
     would repeal the requirement that members of the Ready 
     Reserve be paid for muster duty on or before the date on 
     which they perform the duty, and would require that the 
     allowance be paid on or before, but not later than 30 days 
     following the date on which the duty is performed.
       The Senate recedes with a clarifying amendment.

            Subtitle C--Travel and Transportation Allowances

     Travel and transportation allowances for dependents before 
         approval of member's court-martial sentence (sec. 631)
       The House bill contained a provision (sec. 631) that would 
     remove the restrictions on authorizing travel and 
     transportation allowances to a dependent of a service member 
     who receives certain court-martial sentences.
       The Senate amendment contained a provision (sec. 662) that 
     would permit the service secretaries to move family members 
     when a crime has been committed by the military sponsor.
       The Senate recedes with a clarifying amendment.
     Dislocation allowance (sec. 632)
       The House bill contained a provision (sec. 632) that would 
     establish grade-based rates for dislocation allowances and 
     would index the annual growth of dislocation allowances to 
     increases in the national average monthly cost of housing.
       The Senate amendment contained a provision (sec. 618) that 
     would establish the amount of the dislocation allowance for a 
     service member to be equal to 160 percent of the national 
     average cost of housing determined for members of the same 
     grade and dependency status and for those service members 
     entitled to a second dislocation allowance, the second 
     allowance would be equal to 130 percent of the national 
     average cost of housing determined for members of the same 
     grade and dependency status.
       The Senate recedes with an amendment that would merge the 
     provisions into one.

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

     One-year opportunity to discontinue participation in Survivor 
         Benefit Plan (sec. 641)
       The Senate amendment contained a provision (sec. 651) that 
     would permit a participant in the Survivor Benefit Plan to 
     elect to discontinue participation at any time during a one-
     year period beginning on the second year anniversary of the 
     date on which the member retired.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Time in which change in survivor benefit coverage from former 
         spouse to spouse may be made (sec. 642)
       The House bill contained a provision (sec. 641) that would 
     remove the requirement that service members may change the 
     beneficiary for the Survivor Benefit Plan from a former 
     spouse to a spouse within one year of the date of remarriage.
       The Senate amendment contained a provision (sec. 652) that 
     would permit a military retiree to change the beneficiary of 
     his or her Survivor Benefit Plan from a former spouse to a 
     current spouse at any time after the retiree remarries.
       The House recedes with a clarifying amendment.
     Review of Federal former spouse protection laws (sec. 643)
       The Senate amendment contained a provision (sec. 1039) that 
     would require the Secretary of Defense to conduct a 
     comprehensive review of the Uniformed Services Former Spouse 
     Protection Act. The review would include other laws affecting 
     federal civil service retirement and current civil practices 
     regarding division of retirement pay or pensions in order to 
     assess whether the Uniformed Services Former Spouse 
     Protection Act should be amended. The recommended provision 
     requires the report to be provided to Congress by September 
     30, 1999.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     areas to be considered during the review of the Uniformed 
     Services Former Spouse Protection Act.
     Annuities for certain military surviving spouses (sec. 644)
       The Senate amendment contained a provision (sec. 654) that 
     would authorize an annuity of $165 a month for surviving 
     spouses of former active duty service members who died before 
     March 21, 1974, and were retired from active duty. The 
     recommended provision would also apply to surviving spouses 
     of service members retired from the reserves between 
     September 21, 1972 and October 1, 1978. These surviving 
     spouses, known as ``Forgotten Widows,'' are the survivors of 
     retired military personnel who died before any survivor 
     benefit program was enacted.

[[Page H9390]]

       The House bill contained no similar provision.
       The House recedes.
     Administration of benefits for so-called minimum income 
         widows (sec. 645)
       The conferees agree to include a provision that would 
     clarify the authority of the Secretary of Veterans Affairs to 
     consolidate certain annuities currently paid by the Secretary 
     of Defense to the widows of military retirees into a single 
     payment.

                       Subtitle E--Other Matters

     Loan repayment program for commissioned officers in certain 
         health professions (sec. 651)
       The House bill contained a provision (sec. 652) that would 
     amend chapter 109 of title 10, United States Code, to 
     establish an education loan repayment program for specific 
     health professions.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Conformance of NOAA commissioned officers separation pay to 
         separation pay for members of other uniformed services 
         (sec. 652)
       The House bill contained a provision (sec. 653) that would 
     remove the limitations on the amount of separation pay that 
     may be paid to commissioned officers of the National Oceanic 
     and Atmospheric Administration (NOAA) and would exclude that 
     portion of separation pay withheld for income taxes from the 
     amount that must be repaid before becoming eligible for 
     disability payments from the Department of Veterans Affairs. 
     This section would conform the separation pay authority for 
     NOAA commissioned officers with the separation pay authority 
     for members of the armed services.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Eligibility of Public Health Service officers and NOAA 
         commissioned corps officers for reimbursement of adoption 
         expenses (sec. 653)
       The House bill contained a provision (sec. 654) that would 
     authorize officers of the Commissioned Corps of the Public 
     Health Service to receive reimbursement for adoption expenses 
     in the same manner as members of the armed forces.
       The Senate amendment contained a provision (sec. 663) that 
     would extend the authorization for reimbursement of adoption 
     expenses in effect for the armed forces to the Public Health 
     Service and the National Oceanic and Atmospheric 
     Administration.
       The House recedes with a clarifying amendment.
     Payment of back quarters and subsistence allowances to World 
         War II veterans who served as guerrilla fighters in the 
         Philippines (sec. 654)
       The House bill contained a provision (sec. 655) that would 
     authorize the payment of quarters and subsistence allowances 
     to qualified individuals who served as guerilla fighters 
     during the period from January 1942 through February 1945.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Subsistence of members of the Armed Forces above the poverty 
         level (sec. 655)
       The House bill contained a provision (sec. 657) that would 
     direct the Secretary of Defense to conduct a study of members 
     of the armed forces and their dependents who subsist at, 
     near, or below the poverty line.
       The Senate amendment contained a similar provision (sec. 
     664).
       The House recedes with a clarifying amendment.
       The conferees do not intend that implementation of this 
     provision would cause current recipients of supplemental food 
     benefits within the United States to be removed from the 
     program. The conferees encourage the committees of 
     jurisdiction to examine the need for a supplemental food 
     program for members of the armed services and eligible 
     civilians living overseas and provide the funding needed to 
     operate the overseas program while sustaining the program 
     within the United States. The conferees note that the 
     Secretary of Defense may use Departement of Defense funds to 
     conduct this program until funding is received from the 
     Secretary of Agriculture.

                   Legislative Provisions Not Adopted

     Space available travel for members of Selected Reserve
       The House bill contained a provision (sec. 656) that would 
     provide authority for members of the Selected Reserve and 
     their accompanying dependents to receive transportation on 
     Department of Defense aircraft on a space available basis 
     under the same terms and conditions that apply to active duty 
     members of the armed forces and their dependents.
       The Senate amendment contained no similar provision.
       The House recedes.
     Implementation of Department of Defense Supplemental Food 
         Program for military personnel outside the United States
       The House bill contained a provision (sec. 658) that would 
     authorize the Secretary of Defense to use operations and 
     maintenance funding to operate the program until funding is 
     received from the Secretary of Agriculture.
       The Senate amendment contained a similar provision within 
     section 664.
       The House recedes.
     Paid-up coverage under Survivor Benefit Plan
       The Senate amendment contained a provision (sec. 653) that 
     would terminate Survivor Benefit Plan payments following 30 
     years of payments and attaining the age of 70.
       The House bill contained no similar provision.
       The Senate recedes.

                   Title VII--Health Care Provisions

                     Legislative Provisions Adopted

                    Subtitle A--Health Care Services

     Expansion of retiree dental insurance plan to include 
         surviving spouse and child dependents of certain deceased 
         members (sec. 701)
       The House bill contained a provision (sec. 701) that would 
     amend section 1076c(b)(4) of title 10, United States Code, to 
     allow the survivors of members who died while on active duty 
     to participate in the retiree dental insurance plan.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Provision of prosthetic devices to covered beneficiaries 
         (sec. 702)
       The House bill contained a provision (sec. 702) that would 
     amend section 1077(a) of title 10, United States Code, to 
     allow for prosthetic devices to be provided to CHAMPUS 
     beneficiaries for significant conditions, as determined by 
     the Secretary of Defense.
       The Senate amendment contained a similar provision (sec. 
     707).
       The Senate recedes.
     Study concerning the provision of comparative information 
         (sec. 703)
       The Senate amendment contained a provision (sec. 711) that 
     would require the Secretary of Defense to conduct a study 
     concerning the provision of information to TRICARE 
     beneficiaries and report the results to the Congress.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                      Subtitle B--TRICARE Program

     Addition of definition of TRICARE program to title 10 (sec. 
         711)
       The House bill contained a provision (sec. 711) that would 
     amend section 1072 of title 10, United States Code, to 
     include a definition of the TRICARE Program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Plan for expansion of managed care option of TRICARE program 
         (sec. 712)
       The House bill contained a provision (sec. 712) that would 
     require the Secretary of Defense to prepare a plan for 
     expanding the managed care option of TRICARE--TRICARE Prime--
     into areas located outside the catchment areas of military 
     treatment facilities where the Department determines it is 
     cost effective to do so.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.

          Subtitle C--Uniformed Services Treatment Facilities

     Implementation of designated provider agreements for 
         Uniformed Services Treatment Facilities (sec. 721)
       The House bill contained a provision (sec. 721) that would 
     amend section 722(c) of the National Defense Authorization 
     Act for Fiscal Year 1997 (Public Law 104-201) to clarify the 
     implementation date of the designated provider program of the 
     Uniformed Services Treatment Facilities (USTFs), and allow 
     the USTFs to begin delivery of health care services as a 
     designated provider within six months of signing the new 
     designated provider agreement with the Department of Defense, 
     or upon implementation of TRICARE in the USTFs region, 
     whichever date is later.
       The Senate amendment contained a provision (sec. 731) that 
     would clarify the implementation date of the designated 
     provider program of the Uniformed Services Treatment 
     Facilities (USTFs); allow the USTFs to begin delivery of 
     health care services as a designated provider within six 
     months of signing the new designated provider agreement 
     with the Department of Defense, or upon implementation of 
     TRICARE in the USTFs region, whichever date is later; 
     require the Secretary of Defense to submit to binding 
     arbitration; impose limits on contracting out primary care 
     services and permit flexibility on the date on which the 
     uniform benefit must be implemented.
       The Senate recedes.
     Continued acquisition of reduced-cost drugs (sec. 722)
       The House bill contained a provision (sec. 723) that would 
     allow the Uniform Services Treatment Facilities to continue 
     to purchase pharmaceuticals under the preferred pricing 
     levels applicable to government agency purchases.
       The Senate amendment contained a similar provision (sec. 
     733).
       The House recedes.
     Limitation on total payments (sec. 723)
       The House bill contained a provision (sec. 722) that would 
     clarify the limitation on total program payments established 
     in section 726(b) of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201).
       The Senate amendment contained a similar provision (sec. 
     732).
       The House recedes.

[[Page H9391]]

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

     Improvements in health care coverage and access for members 
         assigned to certain duty locations far from sources of 
         care (sec. 731)
       The Senate amendment contained a provision (sec. 701) that 
     would make active duty service members assigned to certain 
     remote duty locations eligible for health care under the 
     Civilian Health and Medical Program of the Uniformed Services 
     (CHAMPUS), and would direct the secretaries of the military 
     departments to waive the annual fees, deductibles, and 
     copayments associated with CHAMPUS.
       The House bill contained no similar amendment.
       The House recedes with an amendment that would retain the 
     Senate provision and would direct the Secretary of Defense to 
     improve the supplemental care program consistent with the 
     TRICARE program in order to provide care to active duty 
     personnel who are assigned to duty locations more than 50 
     miles from a military treatment facility.
     Waiver or reduction of copayments under overseas dental 
         program (sec. 732)
       The House bill contained a provision (sec. 731) that would 
     amend section 1076a(h) of title 10, United States Code, to 
     waive the dental copayment requirements for family members of 
     active-duty members stationed overseas when they receive 
     host-nation dental care under the Overseas Dental Program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Premium collection requirements for medical and dental 
         insurance programs; extension of deadline for 
         implementation of dental insurance program for military 
         retirees (sec. 733)
       The House bill contained a provision (sec. 732) that would 
     amend section 1076b(b) and 1076c(c) of title 10, United 
     States Code, to change the premium collection method 
     prescribed for the Selected Reserve Dental Program and the 
     Retiree Dental Program.
       The Senate amendment contained a similar provision (sec. 
     705).
       The Senate recedes with an amendment that would modify the 
     date on which the retiree dental plan must be effective.
       The conferees continue to insist that the Secretary of 
     Defense provide comprehensive dental insurance programs for 
     the Selected Reserve and for retirees and their families at 
     the lowest possible cost.
       The conferees expect the Secretary of Defense to use the 
     allotment or payroll deduction process to the maximum extent 
     possible for dental insurance premium collection. The 
     conferees urge the Secretary to review the feasibility of 
     including electronic funds transfer as an alternative means 
     of premium collection. The conferees expect the Secretary to 
     forward a legislative proposal if it is determined that 
     electronic funds transfer is a viable alternative and that 
     legislation is required to facilitate that method of premium 
     collection.
       The conferees urge the Secretary of Defense to develop a 
     regional premium similar to the common practices of the 
     commercial insurance industry to ensure that those who live 
     in low-cost areas do not subsidize those in higher cost 
     areas. The conferees note that it is common commercial 
     practice to limit the availability of certain benefits for 
     some period of time after the beneficiary enrolls in the 
     program, or to require a minimum enrollment period. The 
     conferees urge the Secretary of Defense to consider including 
     these commercial practices in the retiree dental plan.
     Dental insurance plan coverage for retirees of the Public 
         Health Service and NOAA (sec. 734)
       The Senate amendment contained a provision (sec. 706) that 
     would extend eligibility for the retiree dental plan of the 
     Department of Defense to retirees of the Public Health 
     Service and the National Oceanic and Atmospheric 
     Administration.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Consistency between CHAMPUS and Medicare in payment rates for 
         services (sec. 735)
       The House bill contained a provision (sec. 733) that would 
     amend section 1079(h) of title 10, United States Code, to 
     provide for greater consistency between CHAMPUS reimbursement 
     rates for health care services and Medicare reimbursement 
     rates.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Use of personal services contracts for provision of health 
         care services and legal protection for providers (sec. 
         736)
       The House bill contained a provision (sec. 734) that would 
     clarify that personal services contract employees providing 
     health care services, including fee-basis physicians, are 
     covered by the same malpractice litigation rules as other 
     Department of Defense health care providers and would enable 
     the Secretary of Defense the authority to provide for 
     reasonable attorney's fees in any litigation in which 
     government attorneys do not provide representation.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would sunset the 
     provision after one year, would require the Secretary of 
     Defense to report to the Congress on alternative methods to 
     provide medical screening to the Military Entrance and 
     Processing stations, including use of the TRICARE Managed 
     Support contracts and outsourcing, and would extend the 
     authority to the Secretary of Transportation for the Coast 
     Guard.
     Portability of State licenses for Department of Defense 
         health care professionals (sec. 737)
       The House bill contained a provision (sec. 735) that would 
     amend section 1094 of title 10, United States Code, to 
     authorize members of the armed forces licensed to practice 
     medicine and other health professions to practice such 
     professions in any state, the District of Columbia, or a 
     territory or possession of the United States while performing 
     authorized duties for the Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Standard form and requirements regarding claims for payment 
         for services (sec. 738)
       The House bill contained a provision (sec. 736) that would 
     amend section 1106 of title 10, United States Code, to 
     eliminate the requirement for non-participating providers who 
     provide services to Civilian Health and Medical Program of 
     the Uniformed Services (CHAMPUS) beneficiaries to submit 
     claims for payment for services on behalf of the beneficiary.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees believe that this provision will improve 
     access to health care by reducing the administrative burden 
     on health care providers which should make providing care 
     under the CHAMPUS system more attractive to these providers. 
     Increasing the number of CHAMPUS providers, especially in 
     rural and under served areas, should enhance the health care 
     options for Department of Defense health care beneficiaries. 
     Beneficiaries who elect to receive care from a non-
     participating health care provider may have to file a claim 
     for reimbursement from the CHAMPUS system. The conferees note 
     that eliminating the requirement for non-participating 
     providers to submit claims for payment for services on behalf 
     of the beneficiary does not apply to health care providers 
     who participate in the TRICARE network.
     Chiropractic health care demonstration program (sec. 739)
       The Senate amendment contained a provision (sec. 709) that 
     would increase the number of sites and extend the length of 
     the chiropractic health care demonstration authorized by the 
     National Defense Authorization Act for Fiscal Year 1995.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                       Subtitle E--Other Matters

     Continued admission of civilians as students in physician 
         assistant training program of Army Medical Department 
         (sec. 741)
       The House bill contained a provision (sec. 741) that would 
     amend chapter 407 of title 10, United States Code, to provide 
     permanent authority for a demonstration program established 
     by the National Defense Authorization Act for Fiscal Year 
     1995 (Public Law 103-337) to allow students from civilian 
     accredited institutions of higher education to attend 
     physician assistant training at the Academy of Health 
     Sciences at Fort Sam Houston, Texas, in return for the 
     provision of certain academic services from the respective 
     civilian institutions.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Payment for emergency health care overseas for military and 
         civilian personnel of the On-Site Inspection Agency (sec. 
         742)
       The House bill contained a provision (sec. 742) that would 
     amend chapter 152 of title 10, United States Code, to 
     authorize the Secretary of Defense to pay for emergency 
     health care services obtained by a military member, civilian 
     employee, or contractor employee of the On-Site Inspection 
     Agency while on permanent or temporary duty in a former 
     Soviet Union or former Warsaw Pact state.
       The Senate amendment contained a provision (sec. 702) that 
     would provide authority for the Secretary of Defense to pay 
     for emergency health care costs of military and civilian 
     personnel assigned to the On-Site Inspection Agency, while 
     participating in arms control inspections overseas, from 
     funds available to the On-Site Inspection Agency (OSIA).
       The House recedes with a clarifying amendment.
     Authority for agreement for use of medical resource facility, 
         Alamogordo, New Mexico (sec. 743)
       The Senate amendment contained a provision (sec. 710) that 
     would permit the Secretary of the Air Force to enter into an 
     agreement, the contents of which are specified in the 
     provision, with Gerald Champion Hospital in Alamogordo, New 
     Mexico in which the hospital would provide health care 
     services at a discount, provided that the facility is 
     constructed in part with funds provided by the Secretary of 
     the Air Force.
       The House bill contained no similar amendment.

[[Page H9392]]

       The House recedes with an amendment that would retain the 
     essence of the Senate provision but would require that the 
     funds be provided from Air Force Operations and Maintenance 
     funds; would include additional information in the agreement; 
     and would require the Secretary of Defense to review the 
     proposed agreement and provide comments to the Congress 
     before the agreement could be signed.
     Disclosures of cautionary information on prescription 
         medications (sec. 744)
       The Senate amendment contained a provision (sec. 703) that 
     would require that each prescription dispensed through the 
     Military Health Care System, including the TRICARE and 
     CHAMPUS programs, be accompanied by information containing 
     cautions about use, possible side effects, and potential 
     negative interaction with food or beverages.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Competitive procurement of certain ophthalmic services (sec. 
         745)
       The House bill contained a provision (sec. 1405) that would 
     require the Secretary of Defense to competitively procure, 
     from the private sector, all ophthalmic services unless it is 
     more cost effective or is necessary to meet readiness 
     requirements to perform these services within the armed 
     services.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Comptroller General study of adequacy and effect of maximum 
         allowable charges for physicians under CHAMPUS (sec. 746)
       The House bill contained a provision (sec. 743) that would 
     require the Comptroller General of the United States to study 
     the adequacy of the CHAMPUS reimbursement rates, and the 
     effect of these rates on the participation of physicians in 
     the CHAMPUS program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Comptroller General study of Department of Defense pharmacy 
         programs (sec. 747)
       The House bill contained a provision (sec. 744) that 
     would require the Comptroller General of the United States 
     to evaluate the pharmacy programs of the Department of 
     Defense. The required study would examine the merits and 
     feasibility of establishing a uniform formulary for 
     military treatment facility pharmacies and civilian 
     contractor pharmacies.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that the study include a review of the merits and feasibility 
     of using private sector cost control mechanisms and the 
     existence of any barriers to the use of such mechanisms.
     Comptroller General study of Navy graduate medical education 
         program (sec. 748)
       The House bill contained a provision (sec. 745) that would 
     require the Comptroller General of the United States to 
     evaluate recommendations made by the Medical Education Policy 
     Council of the Navy Bureau of Medicine and Surgery to 
     restructure the Navy's graduate medical education program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Study of expansion of pharmaceuticals by mail program to 
         include additional Medicare-eligible covered 
         beneficiaries (sec. 749)
       The House bill contained a provision (sec. 746) that would 
     require the Secretary of Defense to provide a report to 
     Congress, within six months of enactment of this Act, on the 
     feasibility, advisability and cost of extending the current 
     mail-order pharmacy program for Medicare-eligible 
     beneficiaries in areas affected by base closures to all 
     Medicare-eligible beneficiaries who do not reside near a 
     military medical treatment facility.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Comptroller General study of requirement for military medical 
         facilities in the National Capital Region (sec. 750)
       The House bill contained a provision (sec. 747) that would 
     require the Comptroller General to conduct a study to 
     evaluate the requirement for Army, Navy, and Air Force 
     medical facilities in the National Capital Region.
       The Senate amendment contained no similar amendment.
       The Senate recedes.
     Report on policies and programs to promote healthy lifestyles 
         for members of the Armed Forces and their dependents 
         (sec. 751)
       The Senate amendment contained a provision (sec. 1042) that 
     would require the Secretary of Defense to report to the 
     Congress on the effectiveness of the policies and programs 
     intended to promote healthy lifestyles among members of the 
     armed forces and their families.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Sense of Congress regarding quality health care for retirees 
         (sec. 752)
       The Senate amendment contained a provision (sec. 708) that 
     would express the sense of the Congress that the United 
     States has a moral obligation to provide quality health care 
     to military retirees and their families.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                    Subtitle F--Persian Gulf Illness

     Plan for health care services for Persian Gulf veterans (sec. 
         762)
       The House bill contained a provision (sec. 752) that would 
     require the Secretary of Defense and the Secretary of 
     Veterans Affairs to prepare a joint plan to provide 
     appropriate health care to Persian Gulf veterans who suffer 
     from a Gulf War illness.
       The Senate amendment contained a similar amendment (sec. 
     752).
       The Senate recedes with a clarifying amendment.
     Comptroller General study of revised disability criteria for 
         physical evaluation boards (sec. 763)
       The House bill contained a provision (sec. 753) that would 
     require the Comptroller General to conduct a study evaluating 
     the revisions made by the Secretary of Defense to the 
     criteria used by Physical Evaluation Boards to set disability 
     ratings for members of the armed forces who are no longer 
     medically qualified for continuaton on active duty.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Medical care for certain reserves who served in Southwest 
         Asia during the Persian Gulf War (sec. 764)
       The Senate amendment contained a provision (sec. 704) that 
     would entitle a member of a reserve component who is a 
     Persian Gulf War veteran, registers a symptom or illness in 
     the Persian Gulf War Veterans Health Surveillance System of 
     the Department of Defense, and is not otherwise entitled to 
     medical and dental care from the Military Health Care System 
     to medical and dental care to the same extent and under the 
     same conditions as a member on active duty.
       The House bill contained no similar provision.
       The House recedes with an amendment that would entitle a 
     member of a reserve component who is a Persian Gulf War 
     veteran, registers a symptom or illness in the Persian Gulf 
     War Veterans Health Surveillance System of the Department of 
     Defense, and is not otherwise entitled to medical and dental 
     care from the Military Health Care System or the Veterans 
     Affairs medical system to medical care to the same extent and 
     under the same conditions as a member on active duty.
     Improved medical tracking system for members deployed 
         overseas in contingency or combat operations (sec. 765)
       The House bill contained a provision (sec. 754) that would 
     require the Secretary of Defense to establish a system to 
     assess the medical condition of members of the armed forces 
     who are deployed outside the United States as part of a 
     contingency operation.
       The Senate amendment contained a similar provision (sec. 
     753).
       The Senate recedes with a clarifying amendment.
     Notice of use of investigational new drugs or drugs 
         unapproved for their applied use (sec. 766)
       The House bill contained a provision (sec. 757) that would 
     require the Secretary of Defense to notify a member of the 
     armed forces before the member is administered an 
     investigational new drug or a drug unapproved for its applied 
     use.
       The Senate amendment contained a similar provision (sec. 
     756).
       The Senate recedes with a clarifying amendment.
     Sense of Congress regarding the deployment of specialized 
         units for detecting and monitoring chemical, biological, 
         and similar hazards in a theater of operations (sec. 768)
       The House bill contained a provision (sec. 756) that would 
     require the Secretary of Defense to submit a plan to the 
     Congress regarding the deployment of a specialized unit of 
     the armed forces with the capability and expertise to detect 
     and monitor the presence of chemical, biological, and similar 
     hazards.
       The Senate amendment contained a similar provision (sec. 
     755).
       The House recedes with an amendment that would express the 
     Sense of Congress that the Secretary of Defense, in 
     conjunction with the Chairman of the Joint Chiefs of Staff, 
     should take such actions as are necessary to ensure that 
     units of the armed forces deployed in a theater of operations 
     for a contingency operation include specialized units with 
     the capability to detect and monitor the presence of 
     chemical, biological, and similar hazards.
     Sense of Congress concerning Gulf War illness (sec. 771)
       The House bill contained a provision (sec. 760) that would 
     express the sense of the Congress that all promising 
     technology and treatments related to Gulf War illness should 
     be fully explored and tested to facilitate treatment for 
     members of the armed forces who are stricken with Persian 
     Gulf illness.
       The Senate amendment contained no similar provision.
       The Senate recedes.

[[Page H9393]]

                   Legislative Provisions Not Adopted

     Medical personnel conscience clause
       The House bill contained a provision (sec. 737) that would 
     require the Secretary of Defense to establish a uniform 
     policy with regard to a conscience clause for abortion and 
     family planning services. Under this policy, medical 
     personnel who, for moral, ethical, or religious reasons, 
     object to performing an abortion or to providing family 
     planning services would not be required to perform such 
     procedures unless their refusal to do so poses life-
     threatening risks to the patient.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that the service policies with regard 
     to conscience clauses should be uniform. The conferees note 
     that the Army has proposed a policy change that would make 
     their policy consistent with that of the other services. Once 
     the change is promulgated, the Secretary of the Army is 
     directed to provide a copy of the regulation to the Committee 
     on Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives.

  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters


                       items of special interest

     Cost accounting standards board
       The conferees believe that much progress has been made over 
     the past several years to bring needed reform and 
     streamlining to the federal acquisition process. However, the 
     conferees note that concerns have been raised that the cost 
     accounting standards governing the allocation of direct and 
     indirect costs on government contracts, as promulgated by the 
     Cost Accounting Standards Board (CAS), are an impediment to 
     acquisition streamlining.
       The conferees endorse the House report (H. Rept. 105-132), 
     which requires the General Accounting Office (GAO) to conduct 
     a study that would analyze and assess the mission of the CAS 
     Board. The conferees believe that such a study, in which all 
     views are represented, would help the Congress to determine 
     the best way to balance the interest of taxpayers and the 
     need for greater acquisition streamlining.

                     Legislative Provisions Adopted

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

     Expansion of authority to enter into contracts crossing 
         fiscal years to all severable service contracts not 
         exceeding a year (sec. 801)
       The House bill contained a provision (sec. 802) that would 
     broaden the current limited authority of the Department of 
     Defense to expend appropriated funds for severable service 
     contracts that cross fiscal years.
       The Senate amendment contained a similar provision (sec. 
     803).
       The House recedes with an amendment clarifying that the 
     current authority of the Coast Guard to expend funds for such 
     contracts is intended to be unaffected by the provision.
       The conferees direct that the Secretary of Defense review 
     the Department's operations under this provision and no later 
     than 30 days after the end of both fiscal years 1998 and 1999 
     submit reports to the congressional defense committees 
     containing the following information for each fiscal year:
       (1) the total amount and sources of funds obligated under 
     the provision;
       (2) the types of services procured under the provision;
       (3) when the services were ordered and when provided; and
       (4) the reasons in each case why the authority under the 
     section was required to be used.
       A copy of each report shall be provided simultaneously to 
     the Comptroller General.
       No later than 180 days after receipt of the report of the 
     Department of Defense for fiscal year 1999, the Comptroller 
     General shall submit a report to the congressional defense 
     committees addressing:
       (1) any abuses of the provision, such as efforts to 
     circumvent year-end spending limitations; and
       (2) recommendations for legislative or administrative 
     changes to the authority under the section that the 
     Comptroller General may believe to be appropriate.
     Vesting of title in the United States under contracts paid 
         under progress payment arrangements or similar 
         arrangements (sec. 802)
       The House bill contained a provision (sec. 803) that would 
     establish in statute the title vesting provisions currently 
     used by the Department of Defense in contractual agreements 
     involving certain forms of contract financing.
       The Senate amendment contained a similar provision (sec. 
     812).
       The House recedes.
     Restriction on undefinitized contract actions (sec. 803)
       The House bill contained a provision (sec. 804) that would 
     add disaster relief, humanitarian, and peacekeeping 
     operations to the types of operations for which the head of 
     an agency may waive limitations on the use of undefinitized 
     contracts.
       The Senate amendment contained a similar provision (sec. 
     802).
       The House recedes.
     Limitation and report on payment of restructuring costs under 
         defense contracts (sec. 804)
       The House bill contained a provision (sec. 805) that would 
     codify in title 10, United States Code, the policy 
     restrictions in section 8115 of the Omnibus Appropriations 
     Act for Fiscal Year 1997 (Public Law 104-208) relating to the 
     allowability of restructuring costs under defense contracts. 
     The House provision would also consolidate the requirements 
     of section 818 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public 103-337) into a codifed provision.
       The Senate amendment contained a provision (sec. 841) that 
     would extend for two years the reporting requirements under 
     section 818 and would require a report from the General 
     Accounting Office on the effects of defense business 
     combinations on competition and on contract weapon system 
     prices.
       The House recedes with an amendment combining the two 
     provisions.
     Multiyear procurement contracts (sec. 806)
       The House bill contained a provision (sec. 807) that would 
     provide that no future multiyear procurement contract may be 
     entered into by the Secretary of Defense unless such contract 
     is specifically authorized by law in an act other than an 
     appropriations act. The House provision would also codify 
     various requirements that the Secretary of Defense must meet 
     in order to enter into or to terminate a multiyear 
     procurement contract.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     requirement that future multiyear procurement contracts be 
     authorized in law to contracts in amounts over $500.0 
     million.
     Audit of procurement of military clothing and clothing-
         related items by military installations in the United 
         States (sec. 807)
       The House bill contained a provision (sec. 810) that would 
     require the Department of Defense Inspector General to carry 
     out a random audit of procurements of goods by the military 
     installations in fiscal years 1996 and 1997 to determine the 
     extent to which such installations procured goods made in 
     countries other than the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     audit to a determination of the extent to which military 
     installations procured military clothing and clothing-related 
     items in procurements above $2,500 in violation of the Buy 
     American Act.
     Limitation on allowability of compensation for certain 
         contractor personnel (sec. 808)
       The Senate amendment contained a provision (sec. 804) that, 
     for the purpose of determining the allowability of costs 
     under section 2324 of title 10, United States Code, and 
     section 306 of the Federal Property and Administrative 
     Services Act of 1949, would:
       (1) limit the reimbursement of senior executive salaries to 
     the median of salary of senior executives in all public 
     corporations with annual sales in excess of $50.0 million, 
     regardless of the size of the company;
       (2) define executive compensation to include the total 
     amount of wages, salary, bonuses, and deferred compensation 
     that is recorded in the contractor's cost accounting records 
     for the year; and
       (3) apply the limitations applicable to the five most 
     highly-paid executives of a contractor, or any division of a 
     contractor.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide that 
     the limitation applies to costs incurred after January 1, 
     1998. In addition to making other clarifying changes, the 
     amendment would also provide that no other limitation on the 
     reimbursement of senior executive salaries covered under this 
     section shall apply after that date.
     Elimination of certification requirement for grants (sec. 
         809)
       The Senate amendment contained a provision (sec. 807) that 
     would eliminate the drug-free workplace certification 
     requirements in relation to federal grants in a similar 
     manner provided for federal contracts in section 4301(a)(3) 
     of the National Defense Authorization Act for Fiscal Year 
     1996.
       The House bill contained no similar provision.
       The House recedes.
       The conferees strongly support the continued requirement 
     that persons accept and enforce the drug-free workplace laws 
     as a condition for the award of a contract or grant with a 
     federal agency.
     Repeal of limitation on adjustment of shipbuilding contracts 
         (sec. 810)
       The Senate amendment contained a provision (sec. 808) that 
     would repeal section 2405 of title 10, United States Code, 
     and apply the current six-year limitation for the submission 
     of claims in the Contract Disputes Act as the sole limitation 
     on shipbuilding claims. The House bill contained no similar 
     provision.
       The House recedes.
     Item-by-item and country-by-country waivers of domestic 
         source limitations (sec. 811)
       The House bill contained a provision (sec. 801) that would 
     require the Secretary of Defense to apply the waiver 
     authority with respect to section 2534 of title 10, United 
     States Code only on a case-by-case basis on specific 
     procurements.
       The Senate amendment contained a provision (sec. 809) that 
     would provide the Secretary of Defense with blanket waiver 
     authority for the domestic source restrictions in section 
     2534.

[[Page H9394]]

       The Senate recedes with an amendment that would provide the 
     Secretary with the authority to grant waivers to the 
     restrictions in section 2534 for a particular item and a 
     particular foreign country. Each such waiver would be 
     effective for up to one year, as determined by the Secretary. 
     The provision would require the Secretary, 15 days before the 
     effective date of a waiver, to notify the congressional 
     defense committees and to publish in the Federal Register a 
     notice of the determination to exercise the waiver.

              Subtitle B--Acquisition Assistance Programs

     One-year extension of pilot mentor-protege program (sec. 821)
       The Senate amendment contained a provision (sec. 822) that 
     would extend the period in which mentor firms may incur costs 
     for furnishing developmental assistance under the Department 
     of Defense mentor-protege program until September 30, 2000. 
     The provision would also extend the period during which new 
     agreements under the program may be entered into until 
     September 30, 1999.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     General Accounting Office to review the implementation of the 
     mentor-protege program and report on the extent to which the 
     program is achieving the purposes established under this 
     section.
       The conferees intend to use the results of this report in 
     reassessing the long-term viability of the mentor-protege 
     program during the next legislative cycle.
     Test program for negotiation of comprehensive subcontracting 
         plans (sec. 822)
       The Senate amendment contained a provision (sec. 823) that 
     would extend from September 30, 1998 to September 30, 2000 
     the expiration date for the current test program for 
     negotiating comprehensive subcontracting plans with 
     Department of Defense (DOD) contractors. The provision would 
     also address participating contractors acting as 
     subcontractors under a DOD prime contract by allowing them to 
     include their major subcontracts within their subcontracting 
     plans.
       The House bill contained no similar provision.
       The House recedes.
       The conferees believe that the DOD should expand the 
     program in a manner that would encourage prime contractors to 
     enter the program on a plant or facility basis.

                 Subtitle C--Administrative Provisions

     Retention of expired funds during the pendency of contract 
         litigation (sec. 831)
       The Senate amendment contained a provision (sec. 831) that 
     would permit federal agencies to retain amounts collected 
     pursuant to the Contract Disputes Act of 1978 to satisfy a 
     settlement reached between parties or a judgment rendered in 
     favor of a contractor through the Federal Courts or the Armed 
     Services Board of Contract Appeals. The provision would also 
     require the Comptroller of the Department of Defense to 
     provide an annual report to Congress on the amounts available 
     for obligation under the authority of this provision.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     authority under the provision to the military services and 
     defense agencies, as well as make other clarifying changes.
     Protection of certain information from disclosure (sec. 832)
       The Senate amendment contained a provision (sec. 832) that 
     would amend section 2371 of title 10, United States Code, to 
     clarify that certain information submitted by outside parties 
     in transactions governed by the authority under that section 
     is protected from disclosure under section 552 of title 5, 
     United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Unit cost reports (sec. 833)
       The Senate amendment contained a provision (sec. 834) that 
     would eliminate duplicative reporting requirements on unit 
     costs of major defense acquisition programs.
       The House bill contained no similar provision.
       The House recedes.
     Plan for providing contracting information to general public 
         and small business (sec. 834)
       The Senate amendment contained a provision (sec. 835) that 
     would require the Under Secretary of Defense (Acquisition and 
     Technology) to designate an official in his office to serve 
     as a central point of contact for persons seeking information 
     about how and where to respond to contract solicitations, 
     procedures for being included on approved suppliers lists, 
     and other contracting information.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to develop a plan for improving the 
     responsiveness of the Department of Defense to persons from 
     the general public and small businesses seeking information 
     on contracting and technology development opportunities with 
     the Department of Defense. Such plan is to include an 
     assessment of the designation of a single point of contact 
     within the Office of the Secretary of Defense for that 
     purpose.
     Two-year extension of crediting of certain purchases toward 
         meeting subcontracting goals (sec. 835)
       The conferees agree to include a provision that would 
     extend for an additional two years the authority to credit 
     purchases from qualified nonprofit agencies for the blind or 
     other severely handicapped toward meeting subcontracting 
     goals of defense contractors.

                       Subtitle D--Other Matters

     Repeal of certain acquisition requirements and reports (sec. 
         841)
       The House bill contained a provision (sec. 821) that would 
     repeal a number of miscellaneous acquisition reporting 
     requirements.
       The Senate amendment contained similar repeals (secs. 801 
     and 833).
       The Senate recedes with an amendment that would combine 
     certain elements from both provisions.
     Use of major range and test facility installations by 
         commercial entities (sec. 842)
       The House bill contained a provision (sec. 822) that would 
     amend section 2681 of title 10, United States Code, to delay 
     for two years the expiration of existing authority allowing 
     the Department of Defense test and evaluation facilities to 
     make excess capacity available to the commercial sector.
       The Senate amendment contained a similar provision (sec. 
     232) that would delay the expiration of the authority in 
     section 2681 for three years.
       The House recedes with an amendment that would delay the 
     expiration of the authority for four years.
     Requirement to develop and maintain list of firms not 
         eligible for defense contracts (sec. 843)
       The House bill contained a provision (sec. 823) that would 
     amend section 2327 of title 10, United States Code, to 
     require the Secretary of Defense to develop and maintain a 
     list of all firms and subsidiaries of firms that, for the 
     preceding five years, have been prohibited from entering into 
     contracts with the Department of Defense because of 
     substantial ownership by a foreign government supporting acts 
     of international terrorism. The House provision would also 
     prohibit defense contractors from providing any equipment, 
     parts, or services to the Department of Defense from such 
     listed firms.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would allow 
     individuals to request the Secretary of Defense to have firms 
     included on the list. The provision would also exclude listed 
     firms from receiving subcontracts under contracts with the 
     Department of Defense in a manner similar to firms that are 
     suspended or debarred under subpart 9.4 of the Federal 
     Acquisition Regulation.
     Sense of Congress regarding allowability of costs of employee 
         stock ownership plans (sec. 844)
       The House bill contained a provision (sec. 824) that would 
     prohibit the Secretary of Defense from making a determination 
     of the allowability of costs of employee stock ownership 
     plans (ESOP), in accordance with a rule that had been 
     proposed and withdrawn in prior years.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of Congress that the Defense Contract Audit Agency 
     (DCAA) should not disallow interest costs associated with 
     ESOPs incurred before January 1, 1994. It also states that 
     the Department of Defense should not disallow costs related 
     to ESOP debt, control premiums, or marketability discounts 
     associated with the valuation of ESOP stock of closely held 
     companies that were incurred before January 1, 1995.
       The conferees have been informed that retroactive 
     application of changes to DCAA policy on these issues could 
     have severe economic consequences for ESOP defense 
     contractors. Therefore, the conferees have included a 
     provision that would address retroactivity. The provision is 
     not intended to pass judgment on the changes. The conferees 
     do not intend that the provision supercede any agreement that 
     a contractor may have entered into with the Department of 
     Defense that provides for a different treatment of ESOP 
     costs.
       The conferees understand that a number of other federal 
     agencies may have an interest in the accounting rules 
     applicable to ESOP costs. The conferees direct the Secretary 
     to consult with the Office of Management and Budget, the 
     General Accounting Office, and accounting experts in such 
     other federal agencies to determine whether a consistent, 
     government-wide approach to the relevant accounting and 
     policy issues can be developed. Any interagency process 
     addressing these issues should provide for public comment.
     Expansion of personnel eligible to participate in 
         demonstration project relating to acquisition workforce 
         (sec. 845)
       The House bill contained a provision (sec. 825) that would 
     expand the personnel eligible to participate in the workforce 
     demonstration project authorized in section 4308 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit to 
     95,000 the total number of persons who may participate in the 
     demonstration project.

[[Page H9395]]

     Time for submission of annual report relating to Buy American 
         Act (sec. 846)
       The House bill contained a provision (sec. 826) that would 
     reduce the time for the Department of Defense to prepare and 
     submit the annual report relating to the Buy American Act 
     required under section 827 of the National Defense 
     Authorization Act for Fiscal Year 1997 from 120 to 60 days 
     after the end of each fiscal year.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require a 
     report 90 days after the end of each fiscal year.
     Repeal of requirement for contractor guarantees on major 
         weapon systems (sec. 847)
       The House bill contained a provision (sec. 1503) that would 
     repeal section 2403 of title 10, United States Code, 
     requiring the Secretary of Defense to obtain contractor 
     guarantees on major weapon systems contracts.
       The Senate amendment contained a provision (sec. 811) that 
     would modify the requirements in section 2403 to provide 
     flexibility to the Secretary of Defense and the 
     secretaries of the military services to decide the 
     appropriate use of such contractor guarantees.
       The Senate recedes.
       The conferees direct the Secretary of Defense to issue 
     regulations to ensure that program managers actively and 
     thoroughly examine the value and utility of contractor 
     guarantees on major systems and pursue such guarantees where 
     appropriate and cost effective.
     Requirements relating to micro-purchases (sec. 848)
       The House bill contained a provision (sec. 1504) that would 
     require the use of micro-purchase methods for contracts below 
     the micro-purchase threshold unless a member of the Senior 
     Executive Service or a general or flag officer makes a 
     written determination that such procedures should not apply 
     for specified reasons.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to ensure that 60 percent of all 
     eligible purchases of goods or services for an amount less 
     than the micro-purchase threshold will be made through 
     streamlined micro-purchase procedures by October 1, 1998 and 
     that 90 percent of such purchases be made through streamlined 
     procedures by October 1, 2000. The provision would require 
     the Secretary of Defense to define ``eligible purchases'' for 
     the purposes of this requirement and to exclude those 
     categories of purchases determined not to be appropriate or 
     practicable for streamlined micro-purchase procedures. The 
     provision would also require the Secretary of Defense to 
     provide a plan implementing the requirements under this 
     section by March 1, 1998, and to annually report through 
     March 1, 2001 on procurement actions by the Department of 
     Defense for amounts less than the micro-purchase threshold.
     Promotion rate for officers in an acquisition corps (sec. 
         849)
       The Senate amendment contained a provision (sec. 843) that 
     would require the Under Secretary of Defense for Acquisition 
     and Technology to report annually through October 1, 2000 on 
     the extent to which each military service is complying with 
     promotion opportunity requirement in section 1731(b) of title 
     10, United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Use of electronic commerce in federal procurement (sec. 850)
       The Senate amendment contained a provision (sec. 844) that 
     would allow federal agencies greater flexibility in 
     implementing uniformly the electronic commerce capability 
     requirements in the Federal Acquisition Streamlining Act of 
     1994.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     heads of agencies to give due consideration to the use or 
     partial use of existing electronic commerce systems, such as 
     the Federal Acquisition Computer Network (FACNET), before 
     developing new systems using this authority. The amendment 
     would also require the Administrator for Federal Procurement 
     Policy to submit annual reports to the Congress detailing 
     progress made in implementing this section.
     Conformance of policy on performance based management of 
         civilian acquisition programs with policy established for 
         defense acquisition programs (sec. 851)
       The Senate amendment contained a provision (sec. 845) that 
     would conform the policy on performance based management of 
     civilian acquisition programs with the similar policy 
     applicable to defense acquisition programs under the Federal 
     Acquisition Streamlining Act of 1994 (Public Law 103-355).
       The House bill contained no similar provision.
       The House recedes.
     Modification of process requirements for the solutions-based 
         contracting pilot program (sec. 852)
       The Senate amendment contained a provision (sec. 846) that 
     would amend the solutions-based contracting pilot program 
     established in section 5312 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106).
       The House bill contained no similar provision.
       The House recedes.
     Guidance and standards for defense acquisition workforce 
         training requirements (sec. 853)
       The Senate amendment contained a provision (sec. 847) that 
     would extend for an additional two years the authority of the 
     Department of Defense to use alternative fulfillment 
     standards for purposes of the training requirements in the 
     Defense Acquisition Workforce Improvement Act (title XII of 
     Public Law 101-510).
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct the 
     Secretary of Defense to develop appropriate guidance and 
     standards to ensure that the Department will continue to 
     contract out the training of acquisition personnel in 
     appropriate cases while maintaining necessary control over 
     the content and quality of such training.
     Study and report to Congress assessing dependence on foreign 
         sources for resistors and capacitors (sec. 854)
       The House bill contained a provision (sec. 1061) that would 
     require the Secretary of Defense to conduct a study of the 
     capacitor and resistor industries in the United States to 
     determine the importance of the industry to national security 
     and the impact on the industry of the removal of tariffs 
     under the Information Technology Agreement.
       The Senate amendment contained a similar provision (sec. 
     1048).
       The House recedes with an amendment.
       The conferees believe that, in preparing the study, the 
     Secretary of Defense should consider industries involved with 
     the development and manufacture of the full spectrum of 
     capacitors and resistors, including fixed resistors, 
     wirewound resistors, film resistors, solid tantalum 
     capacitors, multi-layer ceramic capacitors, wet tantalum 
     capacitors, disc ceramic capacitors, aluminum electrolytic 
     capacitors, film capacitors, and oil-filled capacitors.
     Department of Defense and Federal Prison Industries joint 
         study (sec. 855)
       The Senate amendment contained a provision (sec. 848) that 
     would require the Department of Defense (DOD) and Federal 
     Prison Industries (FPI) to jointly conduct a study of the 
     existing procedures that govern procurement transactions 
     between DOD and FPI, and to make recommendations to improve 
     the efficiency and reduce the cost of such transactions.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                   Legislative Provisions Not Adopted

     Domestic source limitation amendments
       The House bill contained a provision (sec. 808) that would 
     amend section 2534 of title 10, United States Code, to add 
     shipboard work stations to the list of naval vessel 
     components required to be procured from domestic sources. The 
     provision would also make permanent the expired requirement 
     to procure certain valves and machine tools from domestic 
     sources.
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of expiration of domestic source limitation for 
         certain naval vessel propellers
       The House bill contained a provision (sec. 809) that would 
     amend section 2534 of title 10, United States Code, to make 
     the existing limitation on the procurement of naval vessel 
     propellers permanent.
       The Senate amendment contained no similar provision.
       The House recedes.
     Availability of simplified procedures to commercial item 
         procurements
       The House bill contained a provision (sec. 1505) that would 
     revise the authority in section 2304 of title 10, United 
     States Code, and in section 303 of title 41, United States 
     Code, to test simplified procedures for commercial item 
     procurements. The provision would allow such test procedures 
     to be used in cases where a contracting officer reasonably 
     expects that offers will include other than commercial items.
       The Senate amendment contained no similar provision.
       The House recedes.
     Price preference for small and disadvantaged businesses
       The Senate amendment contained a provision (sec. 824) that 
     would condition the use of the 10 percent price preference in 
     section 2323 of title 10, United States Code, on the failure 
     of the Department of Defense to meet in the prior fiscal year 
     the five percent goal specified in section 2323.
       The House bill contained no similar provision.
       The Senate recedes.
       The Senate conferees intend to review the need for 
     continuing the price preference authority during hearings 
     next year and may include in a future defense bill a 
     provision similar to that contained in the Senate amendment.

      Title IX--Department of Defense Organization and Management

                     Legislative Provisions Adopted

Subtitle A--Department of Defense Positions and Organizations and Other 
                            General Matters

     Assistants to the Chairman of the Joint Chiefs of Staff for 
         National Guard matters and for Reserve matters (sec. 901)
       The Senate amendment contained a provision (sec. 905) that 
     would establish the position of Senior Representative of the 
     National

[[Page H9396]]

     Guard Bureau in the grade of general and would add this 
     position as a member of the Joint Chiefs of Staff.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish 
     two positions on the Joint Staff. There would be an Assistant 
     to the Chairman of the Joint Chiefs of Staff for National 
     Guard Matters and an Assistant to the Chairman of the Joint 
     Chiefs of Staff for Reserve Matters. These positions would be 
     established in the grade of major general, or in the case of 
     the Navy, rear admiral. The provision would establish the 
     term of office as two years and incumbents may be reappointed 
     for one additional term. In time of war, the term limit would 
     be suspended.
       The provision would establish a procedure for appointing 
     the Assistant to the Chairman of the Joint Chiefs of Staff 
     for National Guard Matters in which the Governors would 
     recommend National Guard officers to fill the position. The 
     conferees appreciate the necessity for the Governors to 
     participate in the selection process for this important 
     position. The procedure for appointing the Assistant to the 
     Chairman of the Joint Chiefs of Staff for Reserve Matters 
     requires the secretaries of the military departments to 
     recommend officers from their respective reserve force. As in 
     the case of the National Guard, the conferees believe that 
     the participation of the secretaries of the military 
     departments is an essential element of the selection process 
     for the Assistant to the Chairman of the Joint Chiefs of 
     Staff for Reserve Matters.
       The conferees recognize that there currently is a Reserve 
     Mobilization Assistant position, filled by a National Guard 
     major general, assigned to the Office of the Director of the 
     Joint Staff. The conferees established the two new positions 
     in lieu of the current position to ensure that the Chairman 
     and the Joint Staff have the benefit of the best advice with 
     regard to all the reserve forces, in particular as it 
     pertains to their unique capabilities and requirements.
       The conferees urge the Chairman of the Joint Chiefs of 
     Staff to ensure that these assistants have access to the 
     Joint Staff and that they are included in discussions 
     pertaining to resource matters, employment of National Guard 
     or reserve forces, and war plans. The conferees expect that 
     the Secretary of Defense and the Chairman of the Joint Chiefs 
     will ensure that these assistants are able to participate, at 
     the appropriate level, in the Defense Resources Board.
       The provision would also require that the Secretary of 
     Defense, in consultation with the Chairman, develop 
     appropriate guidance to ensure that the level of reserve 
     component officer representation on the Joint Staff is 
     commensurate to the significant and important role assigned 
     to reserve components in the total force. The conferees are 
     convinced that reserve component officers are an excellent 
     resource of expertise and experience that would add a 
     valuable perspective to the increasingly complex mission of 
     the Joint Staff.
       The conferees note that the requirements of this provision 
     are intended to be implemented within the clearly established 
     principles of the Goldwater-Nichols Department of Defense 
     Reorganization Act of 1986 (Public Law 99-433), which vests 
     the Chairman with unequivocal control over the selection and 
     management of all officers assigned to the Joint Staff. While 
     the conferees find it appropriate to establish these two 
     positions to ensure that advice on reserve component matters 
     provided to the Chairman is of the highest quality and value, 
     in no way are these positions intended to operate 
     independently from or in conflict with the direction of the 
     Chairman.
       The common purpose of protecting U.S. national security 
     interests must remain the paramount concern for all 
     components of the total force. The mission must not be 
     undermined by continued feuding over resources, bureaucratic 
     standing, and attempts to enhance political equities. The 
     conferees are dismayed and frustrated with the animosity and 
     mistrust that exists between the Army and the National Guard. 
     The conferees expect the Secretary of Defense, the Secretary 
     of the Army, and the Chief of Staff of the Army to work with 
     the Chief of the National Guard Bureau and The Adjutants 
     General to resolve the divisive sentiments and suspicion that 
     exists on both sides. The Secretary of Defense must ensure 
     that the Secretary of the Army does not treat the National 
     Guard in a cavalier manner, ignoring valid requirements and 
     intentionally under-resourcing the National Guard, with the 
     assumption that Congress will make up the shortfalls. The 
     National Guard must work within the existing systems and 
     processes to ensure that National Guard units are able to 
     complement the active force and are ready to meet the wartime 
     or contingency requirements they may be deployed to meet.
     Use of CINC Initiative Fund for force protection (sec. 902)
       The Senate amendment contained a provision (sec. 903) that 
     would provide the commanders-in-chief (CINCs) with the 
     authority to utilize funding from the CINC Initiative Fund to 
     provide for any force protection requirements that emerge in 
     their respective areas of operation.
       The House bill contained no similar provision.
       The House recedes.
     Revision to required frequency for provision of policy 
         guidance for contingency plans (sec. 903)
       The House bill contained a provision (sec. 906) that would 
     amend section 113(g)(2) of title 10, United States Code, to 
     permit policy guidance for contingency plans to be given 
     every two years or more frequently, as needed, rather than 
     annually.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Annual justification for Department of Defense advisory 
         committees (sec. 904)
       The House bill contained a provision (sec. 1508) that would 
     terminate existing advisory committees, would prohibit any 
     future advisory committee, board, or commission, unless 
     established in law, and would require the Secretary of 
     Defense to submit an annual report justifying any advisory 
     committee the Secretary proposes to support in the next 
     fiscal year.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to submit an annual report justifying 
     any advisory committee the Secretary proposes to support in 
     the next fiscal year.
     Defense Airborne Reconnaissance Office (sec. 905)
       The House bill contained a provision (sec. 907) that would 
     terminate the Defense Airborne Reconnaissance Office (DARO) 
     and transfer its oversight responsibilities to the Defense 
     Intelligence Agency (DIA).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would transfer 
     the airborne reconnaissance systems acquisition and program 
     management responsibilities from the DARO and the unmanned 
     aerial vehicle joint program office (UAV JPO) back to the 
     military services and retains Office of the Secretary of 
     Defense (OSD)--level oversight responsibilities for airborne 
     reconnaissance architecture determination and systems 
     interface requirements within the DARO. The conferees direct 
     the Secretary of Defense to ensure that the Task Force on 
     Defense Reform makes specific recommendations for the 
     distribution of authority to carry out legitimate management 
     oversight responsibilities for airborne reconnaissance 
     programs within the OSD and the UAV JPO. The conferees do not 
     intend to make any changes within the cruise missile 
     activities of the UAV JPO. The conferees understand that a 
     principal focus of the Task Force is ensuring that program 
     management-like responsibilities within OSD are shifted to 
     the Service or Defense Agencies. The conferees expect that 
     the Task Force recommendations will address this specific 
     issue, as well as the appropriate organizational 
     relationships for overseeing airborne reconnaissance 
     programs within OSD.
       The conferees agree with the concerns that led to the House 
     provision. The congressional defense committees have 
     repeatedly stated concerns with respect to both manned and 
     unmanned airborne reconnaissance, yet there has been little 
     improvement noted. The conferees note the Hicks & Associates 
     report, which recommends that the OSD should focus 
     ``exclusively on top leadership and management tasks, 
     assigning program management and execution tasks and lower 
     priority tasks elsewhere in DOD.'' This report goes on to say 
     that ``OSD is a staff and advisory component . . .'' that 
     should divest itself of hands-on management. The conferees 
     agree.
       The conferees believe there is a very different environment 
     with respect to joint operations and developments in the 
     Pentagon today than existed when the Congress first directed 
     creation of the DARO in 1993. The changes include: 
     strengthened oversight by the Joint Requirements Oversight 
     Council (JROC); the Chairman of the JROC (or the Director for 
     Force Structure, Resources, and Assessment) participation as 
     a member of the Defense Acquisition Board, and the Defense 
     Airborne Reconnaissance Steering Committee to monitor joint 
     reconnaissance issues. The conferees believe this senior 
     oversight can provide sufficient direction, control, and 
     monitoring of service efforts to ensure joint 
     interoperability of reconnaissance systems.
       The conferees also believe that there should be a 
     coordinating management function within OSD specifically 
     charged with oversight of service airborne reconnaissance 
     systems and their development. Whatever the final repository 
     of the airborne reconnaissance management oversight function 
     within the OSD organization, the conferees intend that the 
     responsibilities of the position be limited to coordinating 
     budget developments, ensuring adherence to standards and 
     interoperability requirements, and avoiding unnecessary 
     duplication of effort. The conferees believe that:
       (1) a streamlined DARO can provide the proper OSD 
     management oversight, coupled with the necessary JROC 
     requirements direction, while devolving the authorities and 
     responsibilities for equipping the military forces to the 
     services; and
       (2) legitimate management oversight does not include either 
     controlling execution year obligation of operations and 
     maintenance funding, or acting as the acquisition agent for 
     airborne reconnaissance systems.
       The conferees direct the Secretary of Defense to provide 
     the Congress with a plan to implement the directed 
     reorganization and transfers of authority, based on the Task 
     Force report, no later than March 1, 1998. The conferees 
     direct the Secretary to complete implementation of the plan 
     not later than September 30, 1998.

[[Page H9397]]

     Termination of Armed Services Patent Advisory Board (sec. 
         906)
       The House bill contained a provision (sec. 1506) that would 
     terminate the Armed Services Patent Advisory Board and 
     transfer the functions of the board to the Defense Technology 
     Security Administration.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees direct the Department of Defense to provide 
     adequate staff resources to the Defense Technology Security 
     Agency to support the functions of the agency including those 
     transferred from the Armed Services Patent Advisory Board 
     under this provision.
     Coordination of Department of Defense criminal investigations 
         and audits (sec. 907)
       The House bill contained a provision (sec. 1507) that would 
     create two new statutory boards in the Department of Defense: 
     a Board on Criminal Investigations, consisting of the 
     Assistant Secretary of Defense for Command, Control, 
     Communications, and Intelligence and the heads of the three 
     military criminal investigative organizations; and a Board on 
     Audits, consisting of the Under Secretary of Defense 
     (Comptroller), the Auditors General of the military 
     departments, and the Director of the Defense Contract Audit 
     Agency. The Department of Defense Inspector General would be 
     a nonvoting member of both boards. These boards would be 
     charged with providing for cooperation among the military 
     departments' criminal investigative and audit organizations 
     to avoid duplication of effort and maximize resources.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     heads of the military departments' criminal investigative and 
     auditing organizations to take such actions as may be 
     practicable to conserve limited resources by sharing 
     personnel, expertise, infrastructure, training, equipment, 
     software, and other resources. These officials are to meet on 
     a regular basis to determine the manner and extent to which 
     such resources will be shared. The Secretary of Defense shall 
     submit, by December 31, 1997, a plan to maximize the 
     resources available to these organizations.
       This provision is not intended to affect the responsibility 
     of the Under Secretary of Defense (Comptroller); the 
     Assistant Secretary of Defense for Command, Control, 
     Communications, and Intelligence; or the secretaries of the 
     military departments for determining resource allocation and 
     related policies for audit and investigative organizations in 
     the Department of Defense. In addition, it is not intended to 
     affect the existing authority of the Inspector General of the 
     Department of Defense regarding the coordination of audit and 
     investigative functions within the Department of Defense.

         Subtitle B--Department of Defense Personnel Management

     Reduction in personnel assigned to management headquarters 
         and headquarters support activities (sec. 911)
       The House bill contained a provision (sec. 1301) that would 
     require the Secretary of Defense to reduce the number of 
     personnel assigned to management headquarters and 
     headquarters support activities by 25 percent over four 
     years.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require a 
     25 percent reduction in the number of personnel assigned to 
     management headquarters and headquarters support activities 
     over five years, would direct a five percent reduction in the 
     number of personnel assigned to management headquarters and 
     headquarters support activities during fiscal year 1998, 
     would direct a five percent reduction in the number of 
     personnel assigned to management headquarters and 
     headquarters support activities within the United States 
     Transportation Command during fiscal year 1998, and would 
     direct the Secretary of Defense to require the Task Force on 
     Defense Reform to include an examination of the missions, 
     functions, and responsibilities of various headquarters 
     activities and management headquarters support activities and 
     to submit a report on the results of the examination by the 
     Task Force on Defense Reform to the Congress not later than 
     March 1, 1998.
       The conferees intend that the reductions in the United 
     States Transportation Command made during fiscal year 1998 
     count towards the aggregate Department-wide reduction of five 
     percent.
     Additional reduction in defense acquisition workforce (sec. 
         912)
       The House bill contained a provision (sec. 1302) that would 
     mandate a reduction in the size of the defense acquisition 
     workforce by 124,000 individuals by October 1, 2001. The 
     provision would require a phased implementation of the 
     reduction and include a requirement to reduce the size of the 
     workforce by 40,000 individuals in fiscal year 1998.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require a 
     reduction of 25,000 in the number of defense acquisition 
     personnel positions in fiscal year 1998. The provision would 
     provide authority for the Secretary of Defense to waive up to 
     15,000 of that number based on a determination that a greater 
     reduction would be inconsistent with cost-effective 
     management of the defense acquisition system to obtain best 
     value equipment and would adversely affect military 
     readiness. The provision would also require a report on the 
     reduction in the number of acquisition positions in the 
     Department of Defense since 1989 and a definition of the 
     defense acquisition workforce that can be uniformly applied 
     throughout the Department of Defense. With regard to the 
     definition, the conferees are encouraged by the foundational 
     analysis of the issue recently completed for the Department 
     of Defense by an outside contractor.
       The provision would also require a review of acquisition 
     organizations and functions by both the Secretary of Defense 
     and the Task Force on Defense Reform. The conferees expect 
     that these reviews will be conducted in a thorough manner and 
     that the reports by the Secretary of Defense on these reviews 
     will be submitted to Congress in a timely fashion.

         Subtitle C--Department of Defense Schools and Centers

     Professional military education schools (sec. 921)
       The House bill contained a provision (sec. 902) that would 
     modify the definition of the National Defense University by 
     adding the Information Resources Management College, and 
     would also clarify the authority of the Secretary of Defense 
     to hire professors, lecturers, and instructors for the 
     Information Resources Management College.
       The Senate amendment contained a provision (sec. 902) that 
     would designate the Information Resources Management College 
     as a component of the National Defense University. The 
     recommended provision would also make a technical change to 
     the name of the Institute for National Strategic Study to 
     read the Institute for National Strategic Studies, and would 
     include the Marine Corps University among professional 
     military education schools.
       The House recedes with an amendment that would meld the two 
     provisions into one.
     Center for Hemispheric Defense Studies (sec. 922)
       The Senate amendment contained a provision (sec. 906) that 
     would include the Center for Hemispheric Defense Studies as a 
     component of the National Defense University.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Correction to reference to George C. Marshall European Center 
         for Security Studies (sec. 923)
       The Senate amendment contained a provision (sec. 1106) that 
     would permit employees of the George C. Marshall European 
     Center for Security Studies to qualify for naturalization by 
     waiving the permanent residency requirements.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide 
     employees of the George C. Marshall European Center for 
     Security Studies the same status as was provided for 
     employees of the United States Army Russian Institute, the 
     former name of the George C. Marshall Center. The amendment 
     would not waive the permanent residency requirements.

     Subtitle D--Department of Defense Intelligence-Related Matters

     Transfer of certain military department programs from TIARA 
         budget aggregation (sec. 931)
       The Senate amendment contained a provision (sec. 904) that 
     would transfer specified programs from the Tactical 
     Intelligence and Related Activities (TIARA) aggregation to 
     other accounts of the military services.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) retain 
     the directed TIARA program transfers as specified in the 
     original Senate provision; (2) require an assessment by the 
     Secretary of Defense as to the adequacy and currency of 
     current criteria for judging which programs belong in the 
     TIARA aggregation; and (3) provide the Secretary with 
     discretion to defer any directed transfer based on the 
     outcome of his assessment.
     Report on coordination of access of commanders and deployed 
         units to intelligence collected and analyzed by the 
         intelligence community (sec. 932)
       The Senate amendment contained a provision (sec. 1061) that 
     would require the Secretary of Defense to report to the 
     Congress regarding the specific steps taken or that are being 
     taken to ensure adequate coordination of operational 
     intelligence support for combatant commanders and deployed 
     units.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Protection of imagery, imagery intelligence, and geospatial 
         information and data (sec. 933)
       The Senate amendment contained a provision (sec. 1062) that 
     would amend sections 455 and 467 of title 10, United States 
     Code, to clarify the authority of the Secretary of Defense to 
     permit selective releases of geospatial information 
     representing little military value while protecting the most 
     sensitive information.
       The House bill contained no similar provision.

[[Page H9398]]

       The House recedes with a clarifying amendment.
     POW/MIA intelligence analysis (sec. 934)
       The Senate amendment contained a provision (sec. 1067) that 
     would direct the Director of Central Intelligence, in 
     consultation with the Secretary of Defense, to provide 
     intelligence analytical support on matter concerning missing 
     persons to all departments and agencies of the Federal 
     Government involved in such matters.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                   Legislative Provisions Not Adopted

     Limitation on operation and support funds for the Office of 
         the Secretary of Defense
       The House bill contained a provision (sec. 901) that would 
     reduce the funding associated with the operation and support 
     activities of the Office of the Secretary of Defense (OSD) by 
     twenty percent, and would restrict the obligation of ten 
     percent of funding authorized in fiscal year 1998 until the 
     Department conforms to the requirements of section 901 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106) and section 904 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201).
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees remain concerned with the Department's non-
     compliance with section 901 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106) 
     that requires a report on specific plans for improving 
     organizational efficiency and effectiveness of the Office of 
     the Secretary (OSD). In addition, the conferees note that OSD 
     failed to implement personnel reductions at a rate sufficient 
     to achieve the statutory requirement by October 1, 1997, as 
     specified in section 903 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201).
     Center for the Study of Chinese Military Affairs
       The House bill contained a provision (sec. 904) that would 
     require the Department of Defense to establish a Center for 
     the Study of Chinese Military Affairs.
       The Senate amendment contained no similar provision.
       The House recedes.
     White House Communications Agency
       The House bill contained a provision (sec. 905) that would 
     limit funding for the White House Communications Agency 
     (WHCA) to $55.0 million, an amount slightly below fiscal year 
     1997 levels.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that Department of Defense funds for 
     WHCA should only be spent on telecommunication support for 
     the President, and the Department should be reimbursed for 
     non-telecommunication support services.
       The WHCA is staffed with approximately eight civilians and 
     908 military personnel. Of those 908 military positions, 103 
     are for the provision of non-telecommunications support 
     services. The conferees believe that there is little 
     justification to provide non-telecommunications support 
     services to the President with military personnel assigned to 
     WHCA. In an era when the administration is calling for 
     further reductions in military end-strength, the conferees 
     believe that the military billets dedicated to non-
     telecommunications support for WHCA could be better used 
     elsewhere within the Department of Defense to perform 
     missions that are truly in support of national defense. The 
     conferees believe that non-telecommunications support 
     services provided by WHCA can, and should, be provided by 
     civilian personnel.
       Furthermore, the conferees note that the WHCA budget 
     incorrectly included the WHCA procurement items in the 
     Operation and Maintenance (O&M) budget request. Therefore, 
     the conferees agree to transfer the $7.2 million for WHCA 
     procurement from the O&M account to the procurement account.
     Personnel reductions in the United States Transportation 
         Command
       The House bill contained a provision (sec. 1304) that would 
     mandate a 1,000 person reduction in the United States 
     Transportation Command during fiscal year 1998.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that another section of the conference 
     agreement directs a reduction in the number of personnel 
     assigned to management headquarters and headquarters support 
     activities within the United States Transportation Command of 
     five percent during fiscal year 1998.
     Commission on Defense Organization and Streamlining
       The House bill contained a series of provisions (sec. 1601-
     1609) that would establish a Commission on Defense 
     Organization and Streamlining. The purpose of the commission 
     would be to examine the missions, functions, and 
     responsibilities of the Office of the Secretary of Defense, 
     the management headquarters and headquarters support 
     activities of the military departments and defense agencies, 
     and the various acquisition organizations of the Department 
     of Defense; to propose alternative organizational structures; 
     and to identify areas of duplication and recommend options to 
     eliminate the duplications.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that other provisions of the conference 
     agreement direct the Secretary of Defense to require a Task 
     Force on Defense Reform to examine the missions, functions, 
     and responsibilities of the Department's acquisition 
     organizations and its various headquarters activities and 
     management headquarters support activities; and to submit 
     reports on the results of the examinations by the Task Force 
     to the Congress in early 1998.
     Principal duty of Assistant Secretary of Defense for Special 
         Operations and Low Intensity Conflict
       The Senate amendment contained a provision (sec. 901) that 
     would revise the original legislation concerning the 
     principal duty of the Assistant Secretary of Defense for 
     Special Operations and Low Intensity Conflict to put the 
     emphasis on the Assistant Secretary's supervision of the 
     budgetary, development, and acquisition activities of the 
     Commander in Chief of the Special Operations Command.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees are aware that the Secretary of Defense has 
     established a Task Force on Defense Reform that is, inter 
     alia, focusing on the reform of the Office of the Secretary 
     of Defense (OSD). In another section, the conference 
     agreement would require the Secretary of Defense to submit 
     the Task Force's report with the comments and recommendations 
     of the Secretary of Defense to the Committee on Armed 
     Services of the Senate and the Committee on National Security 
     of the House of Representatives. The conferees believe that 
     any changes to the duties of senior OSD officials should take 
     into account the recommendations contained in that report.

                      Title X--General Provisions


                       items of special interest

     Global Positioning System alternate master control station
       The Global Positioning System (GPS) has become or soon will 
     be fully integrated into most facets of U.S. military 
     planning and operational capabilities. GPS has also been 
     integrated significantly into civil and commercial navigation 
     planning. As such, the conferees recognize the expanding 
     importance of GPS as a national asset, one that is critical 
     to U.S. national security and economic interests. The 
     conferees are aware of potential command and control 
     vulnerabilities associated with the GPS master control 
     station at Falcon Air Force Base, Colorado. The conferees 
     understand that GPS is the only critical national satellite 
     system that does not have an adequate, separate, and secure 
     backup control station. The conferees believe that the 
     Department of Defense and the Air Force should pursue, as an 
     urgent priority, a secure backup GPS system operations 
     facility that is geographically separate from the existing 
     facility.
       Therefore, the conferees direct the Secretary of the Air 
     Force to proceed in fiscal year 1998 with the development of 
     an alternate master control station at a location outside the 
     Colorado Springs area. The conferees expect this new 
     alternate master control station to be operational by fiscal 
     year 2001. The conferees further direct the Secretary of the 
     Air Force to submit a report to the congressional defense 
     committees on this issue not later than February 15, 1998.

                     Legislative Provisions Adopted

                     Subtitle A--Financial Matters

     Transfer authority (sec. 1001)
       The House bill contained a provision (sec. 1001) that would 
     permit the transfer of $2.0 billion of amounts made available 
     in Division A of the bill for any fiscal year to any other 
     authorization made available in Division A upon determination 
     by the Secretary of Defense that such a transfer would be in 
     the national interest.
       The Senate amendment contained a similar provision (sec. 
     1001) that would authorize the budget request level of $2.5 
     billion in transfer authority.
       The Senate recedes.
     Incorporation of classified annex (sec. 1002)
       The House bill contained a provision (sec. 1002) that would 
     incorporate the classified annex prepared by the Committee on 
     National Security into this act.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment providing 
     that the classified annex prepared by the committee of 
     conference is incorporated into this act.
     Authority for obligation of unauthorized fiscal year 1997 
         defense appropriations (sec. 1003)
       The House bill contained a provision (sec. 1003) that would 
     authorize fiscal year 1997 programs that received 
     appropriations but no authorization.
       Senate amendment contained a similar provision (sec. 1002).
       The Senate recedes.
     Authorization of prior emergency supplemental appropriations 
         for fiscal year 1997 (sec. 1004)
       The House bill contained a provision (sec. 1004) that would 
     extend authorization to those items appropriated by the 
     fiscal year

[[Page H9399]]

     1997 emergency supplemental appropriations legislation.
       The Senate amendment contained a similar provision (sec. 
     1003).
       The House recedes.
     Increase in fiscal year 1996 transfer authority (sec. 1005)
       The House bill contained a provision (sec. 1005) that would 
     provide an increase in authorization transfer authority 
     provided by section 1001 of the National Defense 
     Authorization Act for Fiscal Year 1996.
       The Senate amendment contained a similar provision (sec. 
     1004).
       House recedes with a technical amendment.
     Revision of authority for Fisher House trust funds (sec. 
         1006)
       The Senate amendment contained a provision (sec. 1006) that 
     would amend section 914 of the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106) to require the 
     Secretary of the Air Force to deposit an appropriate amount 
     of funds to establish the corpus of the Fisher House Trust 
     Fund, Department of the Air Force.
       The House bill contained no similar provision.
       The House recedes.
     Flexibility in financing closure of certain outstanding 
         contracts for which a small final payment is due (sec. 
         1007)
       The House bill contained a provision (sec. 1007) that would 
     permit the Secretary of Defense to establish an account to 
     transfer funds into for the purpose of making small final 
     payments on certain outstanding contracts for which funds 
     appropriated for that purpose have expired.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment that 
     clarifies that the total amount of all transfers into the 
     account may not exceed $1.0 million without additional 
     congressional authority.
     Biennial financial management improvement plan (sec. 1008)
       The Senate amendment contained a provision (sec. 1005) that 
     would require a strategic financial management plan within 
     the Department of Defense to determine goals for improving 
     and reengineering the finance and accounting functions.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     intent of the report.
     Estimates and requests for procurement and military 
         construction for the reserve components (sec. 1009)
       The House bill contained a provision (sec. 122) that would 
     require the Secretary of Defense to submit an annual report 
     to Congress that describes the measures taken within the 
     Department of Defense to ensure that the reserve components 
     are appropriately funded and lists the major weapons and 
     items of equipment provided for these components. The section 
     would also require the Secretary of Defense to display in all 
     future years defense program updates the amounts programmed 
     for the procurement of equipment for the reserve components.
       The Senate amendment contained a provision (sec. 1008) that 
     would require the Department of Defense to specify estimated 
     expenditures and proposed appropriations for reserve 
     component modernization at the same level of detail as the 
     active forces in the annexes provided with the Future Years 
     Defense Program (FYDP).
       The House recedes.
     Sense of Congress regarding funding for reserve component 
         modernization not requested in the President's budget 
         (sec. 1010)
       The Senate amendment contained a provision (sec. 1059) that 
     would require the Congress, to the extent practicable, to 
     consider authorization of appropriation for reserve component 
     modernization activities not included in the budget request 
     if certain criteria are met:
       (1) There is a Joint Requirements Oversight Council 
     validated requirement for the equipment;
       (2) The equipment is included for reserve component 
     modernization in the modernization plan of the military 
     department concerned and is incorporated into the future 
     years defense program;
       (3) The equipment is consistent with the use of reserve 
     component forces; and
       (4) The funds can be obligated in the fiscal year.
       The provision also calls for Congress to obtain the views 
     of the Chairman, Joint Chiefs of Staff on whether equipment 
     not included in the budget request is appropriate for the 
     employment of reserve component forces in Department of 
     Defense warfighting plans.
       The House bill contained no similar provision.
       The House recedes.
     Management of working-capital funds (sec. 1011)
       The Senate amendment contained a provision (sec. 370) that 
     would modify section 2208 of title 10, United States Code, 
     the authority under which the working capital funds are now 
     being managed, to make contract authority available for 
     obtaining capital assets. The Senate amendment also contained 
     a provision (Sec. 361) that would limit the use of advance 
     billing and establish procedures to notify the congressional 
     defense committees within 30 days of advance billings being 
     posted to the working capital funds.
       The House bill contained no similar provisions.
       The House recedes with an amendment that would continue to 
     restrict the Department of the Navy and establish procedures 
     for the Department of Defense to notify the congressional 
     defense committees in a timely manner when advance billing 
     occurs. The conferees are concerned that excessive advance 
     billing has continued, despite congressional guidance and 
     initiatives to limit the practice. Advance billing has become 
     a normal operating practice rather than an unusual exception. 
     In the case of Navy Working Capital Funds, advance billing is 
     continually used without any plans for significant 
     reductions. Failure to properly budget for these activities 
     and allowing these activities to operate by deficit spending 
     each year is not consistent with good business practices and 
     puts the future force readiness at risk.
       The conferees further agree that the removal of activities 
     from the working capital funds, use of direct appropriations 
     to fund these activities, or allowing working capital 
     activities to change rates in the year of execution are not 
     viable solutions to problems in the working capital funds. 
     Proper budgeting and the use of full costing policies allow 
     for the proper financial management of working capital fund 
     activities.
     Authority of Secretary of Defense to settle claims relating 
         to pay, allowances, and other benefits (sec. 1012)
       The Senate amendment contained a provision (sec. 1060) that 
     would provide the Secretary of Defense authority, upon 
     request of a secretary of a military department, to waive the 
     time limits in the case of a claim for pay and allowances up 
     to a maximum of $25,000. The recommended provision that would 
     modify and clarify the authority granted by section 607 of 
     the National Defense Authorization Act for Fiscal Year 1997 
     to ensure that the Department of Defense has adequate 
     authority to address these claims.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Payment of claims by members for loss of personnel property 
         due to flooding in Red River Basin (sec. 1013)
       The Senate amendment contained a provision (sec. 1081) that 
     would authorize the secretary of a military department to pay 
     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.
       The House bill contained no similar provision.
       The House recedes with an amendment that would add a 
     requirement that the Secretary of Defense report to the 
     Congress on the Department's policy regarding the payment of 
     claims for loss or damage to personal property as a result of 
     a natural disaster by members of the armed forces who are not 
     assigned to quarters of the United States.
     Advances for payment of public services (sec. 1014)
       The House bill contained a provision (sec. 1509) that would 
     allow the Department of Defense to pay utility expenses on a 
     budget billing basis.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     United States Man and the Biosphere Program limitation (sec. 
         1015)
       The House bill contained a provision (sec. 1008) that would 
     prohibit the use of funds appropriated for fiscal year 1998 
     to support the United States Man and the Biosphere Program or 
     any related project.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

                Subtitle B--Naval Vessels and Shipyards

     Procedures for sale of vessels stricken from the Naval Vessel 
         Register (sec. 1021)
       The Senate amendment contained a provision (sec. 1012) that 
     would authorize the sale of vessels stricken from the Naval 
     Vessel Register using negotiation as an alternative to the 
     sealed-bid process. This authority would allow such issues as 
     environmental concerns to be addressed more effectively in 
     the process of the sale.
       The House bill contained no similar provision.
       The House recedes.
     Authority to enter into a long-term charter for a vessel in 
         support of the Surveillance Towed-Array Sensor (SURTASS) 
         program (sec. 1022)
       The House bill contained a provision (sec. 1022) that would 
     authorize the Secretary of the Navy to enter into a contract 
     in accordance with section 2401 of title 10, United States 
     Code, for the charter of the vessel RV CORY CHOUEST through 
     fiscal year 2003 in support of the SURTASS program.
       The Senate amendment contained a provision (sec. 1011) that 
     would authorize the Navy to enter into a long-term lease for 
     a vessel to support the surveillance towed array sensor and 
     low frequency active programs through fiscal year 2004.
       The Senate recedes.
     Transfer of two specified obsolete tugboats of the Army (sec. 
         1023)
        The House bill contained a provision (sec. 1023) that 
     would allow the Secretary of the Army to transfer two 
     obsolete tugboats to the Brownsville Navigation District, 
     Brownsville, Texas.

[[Page H9400]]

       The Senate amendment contained no similar provision.
       The Senate recedes.
     Congressional review period with respect to transfer of the 
         ex-U.S.S. Midway (CV-41) and ex-U.S.S. Hornet (CV-12) 
         (sec. 1024)
        The House bill contained a provision (sec. 1025) that 
     would allow for a 30 calendar day congressional review period 
     with respect to the transfer of the decommissioned aircraft 
     carrier ex-U.S.S. Midway (CV-41).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would substitute 
     30 days for 60 days of continuous session of Congress when 
     applying section 7603 of title 10 to ex-U.S.S. Midway (CV-41) 
     and ex-U.S.S. Hornet (CV-12). If only one qualified entity 
     applies for transfer of ex-U.S.S. Midway (CV-41) or ex-U.S.S. 
     Hornet (CV-12), the amendment would also allow the Secretary 
     of the Navy to transfer the vessel after 10 days of 
     continuous session of Congress
     Transfers of naval vessels to certain foreign countries (sec. 
         1025)
        The Senate amendment contained a provision (sec. 1013) 
     that would transfer on a sale basis one Hunley class 
     submarine tender, one Kaiser class oiler, seven Knox class 
     frigates, two Oliver Hazard Perry class guided missile 
     frigates, and three Newport class tank landing ships to 
     various countries.
       The House bill contained no similar provision.
       The House recedes.
     Reports relating to export of vessels that may contain 
         polychlorinated biphenyls (sec. 1026)
        The House bill contained a provision (sec. 1021) that 
     would amend three sections of the United States Code in order 
     to permit the sale of obsolete vessels that contain 
     polychlorinated biphenyl compounds: section 7305 of title 10, 
     to eliminate Toxic Substances Control Act restrictions on 
     export of vessels for disposal; section 7306a of title 10, to 
     provide that a sinking of a military vessel does not qualify 
     as a prohibited export or disposal under Toxic Substances 
     Control Act; and section 1160 of title 46 App., to resume the 
     practice of selling ships in approved foreign markets under 
     the Merchant Marine Act of 1936.
       The Toxic Substances Control Act (TSCA) (15 U.S.C. 1605(e)) 
     prohibits the manufacture, processing, use, or distribution 
     in commerce of polychlorinated biphenyls (PCBs) that are not 
     ``totally enclosed.'' The term ``totally enclosed'' means any 
     manner that ensures ''insignificant'' human health and 
     environmental exposures to PCBs, as determined by the 
     Environmental Protection Agency (EPA). TSCA directed the EPA 
     to promulgate rules for the disposal of PCBs. In vessels 
     identified for sale, scrap, transfer, or sinking, the Navy 
     has discovered minute quantities of PCBs that the Navy has 
     concluded are bound and non-leachable. The existing EPA 
     regulations make it difficult for the Navy and the Maritime 
     Administration to dispose of these vessels.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Navy, the Administrator of the Maritime 
     Administration, and the Administrator of the EPA to report to 
     Congress on the implementation of an agreement that has been 
     reached between the Navy and the EPA on PCB vessel disposal 
     issues. The conferees understand that this agreement is in 
     effect and is not contingent upon a new rule to be published 
     later this year, which will incorporate the agreement between 
     the Navy and EPA. The amendment would also make technical 
     modifications to the provisions of the National Maritime 
     Heritage Act of 1994 (16 U.S.C. 5405) that address the 
     scrapping and sale of obsolete vessels.
       The conferees understand that the purpose of section 9 of 
     the Shipping Act of 1916 (46 U.S.C. App. 808) is to enable 
     the Maritime Administration to manage the fleet of privately-
     owned United States-flag commercial vessels capable of 
     meeting national security needs and not to enforce the 
     environmental laws. The conferees expect that any agreement 
     between the Maritime Administration and the EPA concerning 
     the export of such vessels for scrapping outside the United 
     States will respect the role of the Maritime Administration 
     by not requiring it to play any greater role in the 
     enforcement of the environmental laws than it currently 
     plays. The conferees acknowledge that it may be appropriate 
     for the Maritime Administration to inform the EPA of export 
     applications received pursuant to section 9(c) of the 
     Shipping Act of 1916 (46 U.S.C. App. 808(3)).
       The provisions concerning the Maritime Administration, the 
     disposal of National Defense Reserve Fleet vessels, and the 
     National Maritime Heritage Act (16 U.S.C. 5404) were resolved 
     through consultations among the House and Senate conferees, 
     the Committees on Commerce, Science, and Transportation of 
     the Senate, and the Committees on Commerce, Transportation 
     and Infrastructure, and Resources of the House of 
     Representatives.
     Conversion of defense capability preservation authority to 
         Navy shipbuilding capability preservation authority (sec. 
         1027)
        The Senate amendment contained a provision (sec. 806) that 
     would amend section 808 of the National Defense Authorization 
     Act for Fiscal Year 1996 to restrict its application to 
     shipbuilding and to vest the Secretary of the Navy with the 
     authority to enter into modified capability preservation 
     agreements. The provision would also limit applicability of 
     the agreements to costs incurred after the date of 
     enactment of this Act for commercial contracts that became 
     effective on or after January 26, 1996.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                  Subtitle C--Counter-Drug Activities

       The budget request for drug interdiction and other counter-
     drug activities of the Department of Defense totals $808.6 
     million. That amount includes the $652.6 million in the drug 
     interdiction account and $156.0 million in the operating 
     budgets of the military services for authorized counter-drug 
     operations. These amounts compare with the $957.4 million 
     authorized for these activities during fiscal year 1997; 
     $796.5 million for the drug interdiction account and $160.9 
     million in the services' operating budgets. The reduction of 
     $148.8 million equates to a real decline of 17.5 percent 
     after accounting for inflation. The conferees recommend an 
     additional $14.3 million for the counter-drug activities of 
     the Department of Defense.


 Drug Interdiction & Counter-drug Activities Operations and Maintenance

         (In thousands of dollars; may not add due to rounding)

Fiscal Year 1998 Drug and Counterdrug Request..................$808,588
  Source Nation Support.........................................183,031
  Detection and Monitoring......................................238,149
  Disruption of Drug Mafia Organizations.........................54,306
  Law Enforcement Agency........................................249,864
  Demand Reduction...............................................83,238
Increases:
  Riverine Interdiction Initiative...............................$4,200
  Gulf States Counterdrug Initiative..............................4,100
  Multi-Jurisdictional Task Force.................................1,000
  Southwest Border Fence Project..................................5,000
Recommendation.................................................$822,888
     Ongoing initiatives
        In fiscal year 1997, the Congress authorized additional 
     funding for three counter-drug initiatives: the Mexico-
     Southwest Border Initiative; the Caribbean and South American 
     Initiative; and the Domestic Counter-Narcotics Initiative. 
     These initiatives were intended to provide enhanced 
     capabilities to stem the flow of drugs into the United States 
     and disrupt narcotics operations within our own borders.
       Although, the conferees are pleased with the initial 
     progress that has been made with these initiatives, the 
     conferees are concerned about the early difficulties in 
     fulfilling some of the goals of the Mexico-Southwest Border 
     Initiative. Due to the delay caused by these difficulties, 
     the administration has requested an extension of the 
     authority to provide assistance to the Government of Mexico. 
     That authority was originally provided for a single year with 
     the understanding that future support would be provided from 
     funds available to the Department of State pursuant to the 
     Foreign Assistance Act of 1961. Unfortunately, the 
     administration failed to provide the necessary funds within 
     the fiscal year 1998 budget request of the Department of 
     State. If it is the intent of the administration to turn such 
     international counter-drug activities of the United States 
     over to the Department of Defense for execution, the 
     conferees believe that this intent should be demonstrated 
     within the budget request by shifting funds from the State 
     Department's counternarcotics budget to that of the 
     Department of Defense. However, because the conferees 
     understand the value of this particular assistance and the 
     need to explore all available options to stem the flow of 
     drugs across the Southwest border, the conferees agree to a 
     provision (sec. 1032), that would extend for one year the 
     authority to provide additional support for counter-drug 
     activities of the government of Mexico. The total amount of 
     support provided pursuant to this authority would be limited 
     to $8.0 million for the two year period from fiscal year 1997 
     to 1998. In providing this support, the Secretary of Defense 
     would be required to consult with the Secretary of State.
       The conferees continue to support the Gulf States Counter-
     drug Initiative (GSCI) and are pleased to note that the 
     budget request included $3.4 million for this program. 
     However, the conferees are concerned that this funding level 
     does not adequately cover the costs for required software 
     maintenance, training, and network support. Therefore, the 
     conferees agree to authorize an increase of $4.1 million to 
     fund these activities.
       The conferees agree to authorize an additional $1.0 million 
     for the Multi-Jurisdictional Task Force and an additional 
     $5.0 million for border fence construction.
     Riverine interdiction initiative
        The conferees agree to authorize an increase of $4.2 
     million to the Department's counterdrug program for riverine 
     operations and include a provision (sec. 1033), that would 
     grant a five year authorization to the Secretary of Defense, 
     in consultation with the Secretary of State, to assist the 
     Peruvian and Colombian governments with the acquisition of 
     the requisite equipment to actively engage riverine counter-
     drug activities. The amount of support that could be

[[Page H9401]]

     provided pursuant to this authority would be limited to $9.0 
     million in fiscal year 1998 and $20.0 million during any of 
     the fiscal years 1999 through 2002. Funds would be restricted 
     from initial obligation until 60 days after the Secretary of 
     Defense, in consultation with the Secretary of State, submits 
     a detailed riverine counter-drug plan to congressional 
     defense committees. The Secretary would also be required to 
     submit any revisions to this plan before obligating any funds 
     for this initiative in the subsequent years.
       The conferees direct the Department of Defense, in 
     coordination with other federal agencies involved in counter-
     narcotic activities, to develop an integrated regional plan 
     to establish a riverine program that can be sustained by the 
     source nations at the end of the five-year period. The 
     Department would be required to provide the details of this 
     plan to the Committees on Armed Services and Foreign 
     Relations of the Senate and the Committees on National 
     Security and International Relations of the House of 
     Representatives before any assistance is provided pursuant 
     to this authority. This plan would provide details as to 
     how the riverine program fits into the overall national 
     drug strategy.
     Use of National Guard for State drug interdiction and 
         counterdrug activities (sec. 1031)
       The House bill contained a provision (sec. 1031) that would 
     amend section 112 of title 32, United States Code, to 
     prohibit the use of counter-drug funding for National Guard 
     Civil-Military Activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would ensure that 
     National Guard participation in counter-drug activities is 
     directly related to military training and readiness in 
     accordance with section 2012(d) of title 10, United States 
     Code, and could support youth and charitable organizations 
     designated as eligible to receive such support by section 508 
     of title 32, United States Code. In addition, the provision 
     would direct the Secretary of Defense to submit an annual 
     report to congressional defense committees regarding the 
     assistance provided, and activities conducted, under State 
     drug interdiction and counter-drug activities plan.
     Authority to provide additional support for counter-drug 
         activities of the government of Mexico (sec. 1032)
       The Senate amendment contained a provision (sec. 1021) that 
     would extend for one year the authority to provide additional 
     support for counterdrug activities of the Government of 
     Mexico.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend for 
     one year the authority to provide additional support for 
     counter-drug activities of the government of Mexico. The 
     total amount of support provided pursuant to this authority 
     would be limited to $8.0 million for the two year period from 
     fiscal year 1997 to 1998. In providing this support, the 
     Secretary of Defense would be required to consult with the 
     Secretary of State.
     Authority to provide additional support for counter-drug 
         activities of Peru and Colombia (sec. 1033)
       The Senate amendment contained a provision (sec. 1022) 
     which would grant a five year authorization to the Secretary 
     of Defense to assist the Peruvian and Colombian governments 
     with the acquisition of the requisite equipment to actively 
     engage in the Riverine Operations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would grant a five 
     year authorization to the Secretary of Defense, in 
     consultation with the Secretary of State, to assist the 
     Peruvian and Colombian governments with the acquisition of 
     the requisite equipment to actively engage riverine counter-
     drug activities. The amount of support that could be provided 
     pursuant to this authority would be limited to $9.0 million 
     in fiscal year 1998 and $20.0 million during any of the 
     fiscal years 1999 through 2002.
     Annual report on development and deployment of narcotics 
         detection technology (sec. 1034)
       The House bill contained a provision (sec. 1033) that would 
     require the Director of the Office of National Drug Control 
     Policy to submit a report to the Congress and the President 
     regarding the development and deployment of narcotics 
     detection technologies by federal agencies.
       The Senate amendment contained no similar provision.
       The Senate recedes.

       Subtitle D--Miscellaneous Report Requirements and Repeals

     Repeal of miscellaneous reporting requirements (sec. 1041)
       The House bill contained a provision (sec. 1041) that would 
     repeal certain obsolete reporting requirements imposed upon 
     the Department of Defense.
       The Senate amendment contained a similar provision (sec. 
     1031).
       The House recedes with an amendment.
     Study of transfer of modular airborne fire fighting system 
         (sec. 1042)
       The House bill contained a provision (sec. 1063) that would 
     require the Secretary of Defense to consult with the 
     Secretary of Agriculture and submit a report that would 
     evaluate the feasibility of transferring jurisdiction over 
     units of modular firefighting equipment from the Department 
     of Agriculture to the Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Overseas infrastructure requirements (sec. 1043)
       The Senate amendment contained a provision (sec. 1036) that 
     would require the Secretary of Defense to provide a report to 
     the Committee on Armed Services of the Senate and the 
     National Security Committee of the House of Representatives 
     outlining the current and future forward-basing requirements 
     of the Department of Defense along with the international 
     agreements necessary to provide these facilities.
       The House bill contained no similar provision.
       The House recedes.
     Additional matters for annual report on activities of the 
         General Accounting Office (sec. 1044)
       The Senate amendment contained a provision (sec. 1040) that 
     would require the General Accounting Office to include within 
     its annual report to Congress the amount of work performed 
     at the request of members of Congress, the amount of work 
     performed to fulfill a specific legislative requirement, 
     and the amount of work initiated by the Comptroller 
     General in performance of his general responsibilities.
       The House bill contained no similar provision.
       The House recedes.
     Eye safety at small arms firing ranges (sec. 1045)
       The Senate amendment contained a provision (sec. 1041) that 
     would require the Secretary of Defense to conduct a study of 
     eye safety at small arms firing ranges, and report to the 
     Congress on the development of a protocol for reporting eye 
     injuries incurred during small arms firing activities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     date on which the study is to begin.
     Reports on Department of Defense procedures for investigating 
         military aviation accidents and for notifying and 
         assisting families of victims (sec. 1046)
       The Senate amendment contained a provision (sec. 1044) that 
     would require the Secretary of Defense to provide a series of 
     reports to the Congress related to investigations of military 
     aviation accidents; assistance provided to families of 
     casualties; and a review of the Federal Aviation 
     Administration and the National Transportation Safety Board 
     procedures for providing information and assistance to 
     families of casualties of non-military aviation accidents.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees believe that military families deserve the 
     best possible care, attention, and information, especially at 
     a time of tragic personal loss. Breakdowns in the 
     implementation of the established family notification 
     procedures that are applicable in case of armed forces and 
     Department of Defense civilian personnel casualties can cause 
     significant distress and mistrust. The conferees believe that 
     Department of Defense representatives involved in casualty 
     notifications should have the training and experience to 
     provide meaningful information about any investigations. The 
     notification personnel should have access to persons 
     qualified to provide effective grief counseling. Procedures 
     for civilian family notification that have been adopted by 
     the Federal Aviation Administration and National 
     Transportation Safety Board might serve as a useful model for 
     improvements to Department of Defense procedures.
       The requirement for the report on aviation accident 
     investigation procedures is not intended to create the 
     perception that the current procedures are inadequate. Rather 
     the requirement is an opportunity to assess proposals to 
     combine the two investigations into a single, public 
     investigation process in order to clarify possible 
     misconceptions or misunderstandings related to the current 
     Department of Defense procedures. The conferees recognize 
     that, although the Department of Defense provides much needed 
     logistical support, including transportation and care of 
     remains, survivor counseling, and other benefits for 
     tragedies like the crash of the C-130 aircraft on November 
     22, 1996, this support may be insufficient to meet the 
     immediate emotional and personal needs of affected family 
     members. It is important that the flow of information to 
     surviving family members be accurate and timely, and, to the 
     extent possible, be provided to family members in advance of 
     media reports. Therefore, the conferees believe the 
     Department of Defense should give a high priority, to the 
     extent practicable, to providing family members with all 
     relevant information about an accident as soon as it becomes 
     available, consistent with the national security interests of 
     the United States, and to allowing the family members full 
     access to any public hearings or public meetings about the 
     accident.

               Subtitle E--Matters Relating to Terrorism

     Oversight of counterterrorism and antiterrorism programs and 
         activities of the United States (sec. 1051)
       The House bill contained a provision (sec. 1064) that would 
     direct the Office of Management and Budget to establish a 
     reporting

[[Page H9402]]

     system and collect information from executive agencies on 
     their counterterrorism and antiterrorism programs, 
     activities, budgets, and expenditures; to provide a report on 
     executive branch activities and programs from 1995 through 
     1997 and submit the information to Congress. The provision 
     would also require an annual report to Congress on this 
     information.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     requirement to report to Congress on executive branch 
     activities and programs from 1995 through 1997, and require 
     an annual report on prospective U.S. government 
     counterterrorism and antiterrorism activities, programs, 
     budgets, and expenditures.
     Report on policies and practices relating to the protection 
         of members of the armed forces abroad from terrorist 
         attack (sec. 1052)
       The House bill contained a provision (sec. 1043) that would 
     require the Secretary of Defense to report on antiterrorism 
     activities and programs of the Department of Defense, to 
     include a description of the various programs, deficiencies 
     in the programs, and actions taken by the Secretary to 
     improve implementation of those programs.
       The Senate amendment contained two provisions regarding the 
     policies and practices of the Department of Defense (DOD) in 
     protecting members of the armed forces against terrorist 
     attack; one provision (sec. 1043) that would require the 
     Secretary of Defense to submit a report to Congress that 
     would assess the policies and practices of the Department to 
     protect U.S. Armed Forces from terrorist attack and assess 
     the procedures for determining accountability in the chain of 
     command in the event a terrorist incident results in loss of 
     life at a U.S. military facility abroad; another provision 
     (sec. 1053) that would direct the Secretary of Defense to 
     take appropriate actions to ensure that units of the U.S. 
     Armed Forces engaged in peace operations have adequate 
     troop protection equipment for such operations.
       The conferees agree to a single provision that would direct 
     the Secretary of Defense to take appropriate actions to 
     ensure that U.S. Armed Forces engaged in peace operations 
     have the necessary equipment to adequately protect 
     themselves; would direct the Secretary to designate a DOD 
     official with responsibility for oversight of troop 
     protection equipment; would require the Secretary of Defense 
     to submit a report to Congress on antiterrorism programs and 
     actions conducted by DOD, and the roles of the chain of 
     command in providing force protection guidance and support to 
     U.S. Armed Forces deployed overseas before and after the two 
     terrorist bombings against U.S. Armed Forces in Saudi Arabia 
     in 1995 and 1996.

            Subtitle F--Matters Relating to Defense Property

     Lease of nonexcess personal property of the military 
         departments (sec. 1061)
       The House bill contained a provision (sec. 1058) that would 
     require the military departments to compete any lease in 
     excess of one year for personal property valued over $100,000 
     and notify the Congress 45 days prior to entering into such a 
     lease.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Lease of nonexcess property of defense agencies (sec. 1062)
       The Senate amendment contained a provision (sec. 842) that 
     would extend to the directors of defense agencies authority 
     currently granted to the service secretaries to lease 
     nonexcess property under certain circumstances.
       The House bill contained no similar provision.
       The House recedes with an amendment that would incorporate 
     portions in the Senate provision regarding fair market value 
     and competition requirements for such lease agreements.
     Donation of excess chapel property to churches damaged or 
         destroyed by arson or other acts of terrorism (sec. 1063)
       The Senate amendment contained a provision (sec. 1078) that 
     would allow the Department of Defense to donate excess Army 
     chapel property to churches that were destroyed or damaged by 
     an act of arson or terrorism.
       The House bill contained no similar provision.
       The House recedes with an amendment that would expand the 
     authority to apply to all excess chapel property within the 
     Department of Defense.
     Authority of the Secretary of Defense concerning disposal of 
         1assets under cooperative agreements on air defense in 
         Central Europe (sec. 1064)
       The Senate amendment contained a provision (sec. 1089) that 
     would provide authority for the Secretary of Defense, 
     pursuant to amendments to the European air defense agreements 
     agreed to on December 6, 1983 and July 12, 1984, to provide 
     defense articles owned and acquired by the United States to 
     the Federal Republic of Germany.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that pursuant to amendments to the 
     European Air Defense Agreements agreed to on December 6, 1983 
     and July 12, 1984, the Patriot-Roland Cooperative Agreement 
     (section 1007, Public Law 98-525, and section 132, Public Law 
     99-83) enabled the United States and the Federal Republic of 
     Germany to enhance central European air defenses by utilizing 
     Patriot batteries and the Roland short range air defense 
     systems, which are owned by the United States but operated by 
     the Federal Republic of Germany.
       Since January 1996, negotiations between the United States 
     and the Federal Republic of Germany have been underway to 
     modify and extend the current agreement. The Department of 
     Defense (DOD) has informed the conferees that the current 
     proposal would allow the transfer of ownership for 12 Patriot 
     batteries and 27 Roland short range air defense systems to 
     the Federal Republic of Germany in exchange for equitable 
     compensation. The DOD has further informed the conferees that 
     modifying the current agreements to provide for this transfer 
     of ownership would be an equitable solution with regard to 
     the assets involved in the original agreement, and would 
     enable continued cooperation in the air defense mission area. 
     The conferees understand that legislation is necessary to 
     accomplish these transfers as the original agreements do not 
     provide the required transfer authority and this particular 
     transfer would fall outside of the coverage of the more 
     traditional authorities contained in the Arms Export Control 
     Act, 22 U.S.C. 2751.
       The conferees direct the Secretary of Defense to provide a 
     report to Congress on the status of the negotiations on the 
     Patriot-Roland Follow-On Implementing Agreement (FOIA). The 
     conferees further direct that prior to the transfer of title 
     for any Patriot or Roland systems, the Secretary of Defense 
     shall provide the congressional defense committees with a 
     report on the financial and non-financial benefits to the 
     United States of the transfer of the equipment, the mission 
     value of the FOIA compensation components, the terms of the 
     equipment transfer (including the use of mission value as 
     compensation), the ability of the United States to meet its 
     NATO obligations, and any potential obstacles to the 
     performance of FOIA missions.
     Sale of excess, obsolete, or unserviceable ammunition and 
         ammunition components (sec. 1065)
       The Senate amendment contained a provision (sec. 365) that 
     would authorize the Secretary of the Army to competitively 
     sell excess, obsolete, or unserviceable ammunition and 
     ammunition components to licensed manufacturers that have the 
     capability to modify, reclaim, transport, and either store or 
     sell ammunition or ammunition components. The ammunition 
     or ammunition components purchased under this authority 
     would be required to be demilitarized or used in such a 
     way as the Secretary of the Army determines is consistent 
     with the public interest.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require all 
     receipts to be deposited into the Federal Treasury and would 
     require an Army Audit Agency report during the first three 
     years on the effect of this authorization.
     Transfer of B-17 aircraft to museum (sec. 1066)
       The Senate amendment contained a provision (sec. 1070) that 
     would authorize the Secretary of the Air Force to transfer 
     the B-17 aircraft known as Picadilly Lilly to the Planes of 
     Fame Museum in Chino, California. The provision would require 
     that the plane be demilitarized and that the cost of the 
     demilitarization be paid by the museum.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees note that the particular circumstances 
     surrounding this case, including the museum's possession of a 
     bill of sale transferring this plane from the Federal 
     Government to the museum, are unique and that this provision 
     does not establish any precedent regarding the transfer of 
     aircraft.
     Report on disposal of excess and surplus materials (sec. 
         1067)
       The Senate amendment contained a provision (sec. 1038) that 
     would require the Secretary of Defense to submit a report to 
     the Congress outlining the actions required to ensure that 
     the Department better manages the Defense Reutilization and 
     Marketing System so as to eliminate, or at least minimize, 
     the problems.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     incorporate the reporting requirements contained in the House 
     report language regarding this issue.

                       Subtitle G--Other Matters

     Authority for special agents of the Defense Criminal 
         Investigative Service to execute warrants and make 
         arrests (sec. 1071)
       The House bill contained a provision (sec. 1051) that would 
     grant the Secretary of Defense authority to authorize special 
     agents of the Defense Criminal Investigative Service (DCIS) 
     to execute and serve warrants and other process issued under 
     the authority of the United States, and to authorize them to 
     make warrantless arrests in certain situations. The authority 
     of a special agent under this provision could only be 
     exercised in accordance with guidelines prescribed by the 
     Attorney General.
       The Senate amendment contained a similar provision (sec. 
     1065).

[[Page H9403]]

       The Senate recedes with a clarifying amendment.
       Since the authority granted by this provision is to be 
     exercised in accordance with guidelines prescribed by the 
     Inspector General of the Department of Defense and approved 
     by the Attorney General, proposed guidelines should be 
     submitted by the Inspector General to the Attorney General as 
     expeditiously as possible.
     Study of investigative practices of military criminal 
         investigative organizations relating to sex crimes (sec. 
         1072)
       The House bill contained a provision (sec. 1052) that would 
     require the Secretary of Defense to commission from the 
     National Academy of Public Administration an independent 
     study of the policies, procedures, and practices of the 
     military criminal investigative organizations in 
     investigating sex crimes and other criminal sexual misconduct 
     in the armed forces.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Technical and clerical amendments (sec. 1073)
       The House bill contained a provision (sec. 1053) that would 
     make various technical and clerical amendments to existing 
     law.
       The Senate amendment contained a provision (sec. 556) that 
     would make a technical correction to a cross-reference in 
     section 14317(d) of title 10, United States Code.
       The conferees agree to a provision that would incorporate 
     portions of these technical amendments.
     Sustainment and operation of the Global Positioning System 
         (sec. 1074)
       The Senate amendment contained a provision (sec. 1064) that 
     would endorse and enact into law the presidential policy on 
     the sustainment and operation of the Global Positioning 
     System (GPS) issued in March 1996.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide that 
     the Interagency GPS Executive Board, established pursuant to 
     the presidential GPS policy, be the forum for interagency 
     review of any proposed international agreement on the civil 
     use of GPS. The amendment would also direct the Secretary of 
     Defense not to accept any restriction on the GPS system 
     proposed by the head of any other department or agency in the 
     exercise of that official's regulatory authority that would 
     adversely affect the military potential of GPS.
     Protection of safety-related information voluntarily provided 
         by air carriers (sec. 1075)
       The House bill contained a provision (sec. 1056) that would 
     protect from disclosure certain air safety information 
     voluntarily submitted to the Department of Defense by an air 
     carrier providing charter air transportation to the 
     Department.
       The Senate amendment contained a similar provision (sec. 
     1063).
       The Senate recedes with an amendment.
     National Guard ChalleNGe Program to create opportunities for 
         civilian youth (sec. 1076)
       The House bill contained a provision (sec. 1057) that would 
     provide the Secretary of Defense, acting through the Chief of 
     the National Guard Bureau, authority to conduct a program 
     known as the National Guard ChalleNGe Program and would 
     authorize the Department of Defense to provide up to $50.0 
     million in funding to support the program. The section would 
     also limit the Department of Defense share of the costs of 
     operating a program in each state to 75 percent in fiscal 
     year 1998--with that share decreasing by 5 percent each year, 
     to 60 percent in fiscal year 2001. Finally, the section would 
     increase by $30.0 million the $20.0 million included in the 
     budget request. To pay for the increase, the committee would 
     reallocate to the ChalleNGe program the $15.0 million that it 
     had intended to add to the Army National Guard military 
     personnel accounts for initial entry and military skill 
     training. In addition, the committee recommends a reduction 
     in the amounts requested in the President's budget for Army 
     and Air National Guard operations and maintenance funding by 
     $7.5 million each.
       The Senate amendment contained a provision (sec. 1052) that 
     would extend the authorization for the National Guard 
     Civilian Youth Opportunities Pilot Program until September 
     30, 1998. The provision would limit the number of programs to 
     15, would limit the amount which may be obligated in support 
     of the program during fiscal year 1998 to $20.0 million, and 
     would require non-Federal funding to match the Federal 
     Government contribution to the program in each state.
       The Senate recedes.
     Disqualification from certain burial-related benefits for 
         persons convicted of capital crimes (sec. 1077)
       The House bill contained a provision (sec. 1060) that would 
     prohibit the Secretary of Defense from providing military 
     honors at the funeral of a person who has been convicted of a 
     crime under state or federal law for which death is a 
     possible punishment and for which the person was sentenced to 
     death or life imprisonment without parole.
       The Senate amendment contained a provision (sec. 1076) that 
     would disqualify persons convicted of a capital offense under 
     Federal law from burial in cemeteries administered by the 
     Secretary of Defense and the Secretary of Veterans Affairs 
     and would prohibit such a person from receiving other burial 
     benefits prescribed by federal law.
       The House recedes with an amendment that would incorporate 
     the House provision and would prohibit a person convicted of 
     a capital offense from being buried in any cemetery 
     administered by the Secretary of Defense, as well as 
     Arlington National Cemetery.
     Restrictions on the use of human subjects for testing of 
         chemical or biological agents (sec. 1078)
       The Senate amendment contained a provision (sec. 1086) that 
     would prohibit the United States government from using human 
     subjects for chemical or biological tests or experiments. The 
     provision would not apply to research, tests, or experiments 
     related to medical, therapeutic, pharmaceutical, 
     agricultural, and industrial activities, or research, tests, 
     or experiments directly related to protection against toxic 
     chemicals, or to protection against chemical or biological 
     agents, U.S. military purposes not related to the use of 
     chemical weapons, and law enforcement activities, including 
     domestic riot control and the imposition of capital 
     punishment. The provision would also require the Department 
     of Defense to report to Congress annually on the conduct of 
     chemical and biological tests involving human subjects, with 
     a certification by the Secretary of Defense that informed 
     consent was obtained from each subject, prior to testing, and 
     would repeal section 808 of the Department of Defense 
     Appropriation Authorization Act for Fiscal Year 1978 (50 
     U.S.C. 1520).
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit the 
     Secretary of Defense, either directly or by contract, from 
     conducting tests or experiments using chemical or biological 
     agents on human subjects and would require the Secretary of 
     Defense to report to Congress thirty days prior to date that 
     the Department of Defense intends to conduct a chemical or 
     biological test or experiment involving human subjects.
     Treatment of military flight operations (sec. 1079)
       The Senate amendment contained a provision (sec. 1072) that 
     would modify section 303(c) of title 49, United States Code, 
     the Department of Transportation Act of 1966. Section 303(c) 
     currently requires the Department of Transportation to review 
     transportation programs or projects that use parks, refuges, 
     or historic sites and to determine that no alternative to the 
     public land use is available and that harm to the public land 
     is minimized. The Senate provision specifies that a military 
     airspace proposal for national security-related activities is 
     not a ``transportation program or project'' to which section 
     303(c) applies.
       The House bill contained no similar provision.
       The House recedes.
     Naturalization of certain foreign nationals who serve 
         honorably in the Armed Forces during a period of conflict 
         (sec. 1080)
       The Senate amendment contained a provision (sec. 1073) that 
     would modify the Immigration and Naturalization Act, title 8, 
     United States Code, to permit foreign national service 
     members who reenlist on board U.S. public vessels to qualify 
     for naturalization without regard to the location of the 
     vessel. The effective date of the provision would be 
     retroactive to cover those foreign nationals who reenlisted 
     on board U.S. vessels since January 1, 1990.
       The House bill contained no similar provision.
       The House recedes with an amendment that would remove a 
     portion of the Senate provision waiving certain provisions of 
     the Immigration Act of 1990 pertaining to processing 
     applications for naturalization.
     Applicability of certain pay authorities to members of 
         specified independent study organizations (sec. 1081)
       The Senate amendment contained a provision (sec. 1069) that 
     would exempt retired federal employees and retired military 
     personnel who have been appointed as members of the 
     Commission on Servicemembers and Veterans Transition 
     Assistance from limitations pertaining to receiving federal 
     pay while concurrently receiving a federal retirement 
     annuity.
       The House bill contained no similar provision.
       The House recedes with an amendment that would exempt 
     retired Federal employees and retired military personnel who 
     have been appointed as members of the National Defense Panel 
     as well as those appointed to the Commission on 
     Servicemembers and Veterans Transition Assistance.
     Display of POW/MIA flag (sec. 1082)
       The House bill contained a provision (sec. 1054) that would 
     expand the dates on which the POW/MIA flag must be flown, as 
     well as the locations where it must be flown on the 
     prescribed dates. In addition, the section would repeal 
     existing law that terminates the requirement to display the 
     POW/MIA flag upon the President's determination that the 
     fullest possible accounting has been made of all members of 
     the armed forces and civilian employees of the United States 
     who have been identified as prisoner of war or missing in 
     action in Southeast Asia.
       The Senate amendment contained a similar provision (sec. 
     1077).
       The Senate recedes with a clarifying amendment.
     Program to commemorate 50th anniversary of the Korean 
         conflict (sec. 1083)
       The House bill contained a provision (sec. 374) that would 
     authorize the Secretary of

[[Page H9404]]

     Defense, to begin to plan, coordinate, and execute a program 
     to commemorate the 50th anniversary of the Marshall Plan and 
     the Korean Conflict.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Department of Defense to expend up to $100,000 for the 
     planning, coordination, and execution of a program to 
     commemorate the 50th anniversary of the Korean conflict.
     Commendation of members of the Armed Forces and Government 
         civilian personnel who served during the cold war; 
         certificate of recognition (sec. 1084)
       The House bill contained a provision (sec. 1059) that would 
     recognize the service and sacrifices of military and civilian 
     personnel who served during the Cold War era.
       The Senate amendment contained a provision (sec. 536) that 
     would authorize the secretaries of the military departments 
     to award a medal to military personnel who served honorably 
     during the Cold War era.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to develop a certificate recognizing 
     service during the Cold War era and to make the certificate 
     available upon request by qualified personnel.
     Sense of Congress on granting of statutory Federal charters 
         (sec. 1085)
       The conferees agree to include a provision that would 
     express the sense of Congress that no statutory federal 
     charter should be enacted unless the charter is approved by 
     the Congress upon a favorable report by the committees of 
     jurisdiction of the respective houses.
     Sense of Congress regarding military voting rights (sec. 
         1086)
       The Senate amendment contained three provisions (sec. 541-
     543) that would establish a short title of ``Military Voting 
     Rights Act of 1997'', amend the Soldiers' and Sailors' Civil 
     Relief Act of 1940 to preclude a military member from losing 
     a claim to State residency for the purpose of voting in 
     federal and state elections because of absence due to 
     military orders, and amend the Uniformed and Overseas 
     Citizens Absentee Voting Act to require each State to permit 
     absent military voters to use absentee registration 
     procedures and to vote by absentee ballot in elections for 
     state and local offices, in addition to federal offices as 
     provided in current law.
       The House bill contained no similar provision.
       The House recedes with an amendment that would substitute 
     the sense of Congress that would affirm the absolute right of 
     military members to vote in federal, state, and local 
     elections; state that a military member's extended absence 
     from a place of residency or domicile due to military orders 
     would not be grounds for loss or change of residency or 
     domicile; and call for legislation to confirm the voting 
     rights of military personnel following a review of the need 
     for legislation and the impact of such legislation on the 
     right of states to set voter registration requirements.
       The conferees are concerned that, in the absence of 
     legislation that would guarantee military voting rights in 
     state and local elections, such rights are subject to 
     challenge. Accordingly, the conferees direct that the 
     Secretary of Defense, in consultation with the Attorney 
     General, study the issue, determine the need for legislation, 
     assess the consequences of such legislation for the right of 
     states to set voter registration requirements, and recommend 
     a course of action for the Congress, to include proposed 
     legislation, if appropriate. The conferees direct that a 
     report on the matters outlined above be submitted to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives not 
     later than March 1, 1998. The conferees anticipate that both 
     Committees will hold hearings to consider the need for such 
     legislation in the coming year.
     Designation of Bob Hope as an honorary veteran of the Armed 
         Forces of the United States (sec. 1087)
       The Senate amendment contained a provision (sec. 1074) that 
     would designate Mr. Bob Hope as an honorary veteran of the 
     Armed Forces of the United States.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees recognize that Bob Hope has contributed many 
     years of service to enhancing the morale and welfare of 
     members of the Armed Forces of the United States. He has 
     traveled to virtually every post, camp, and station where 
     military personnel are assigned overseas, including those in 
     war zones, bringing entertainment, laughter, cheer, and a 
     touch of home, sometimes at great personal risk.
       Thanks for the memories, Bob.
     Five-year extension of aviation insurance program (sec. 1088)
       The Senate amendment contained a provision (sec. 1071) that 
     would extend through September 30, 2002 the aviation 
     insurance program authorized in section 44310 of title 49, 
     United States Code.
       The House bill contained no similar provision.
       The House recedes.

                   Legislative Provisions Not Adopted

     Naming of a DDG-51 class destroyer the U.S.S. Thomas F. 
         Connolly
       The House bill contained a provision (sec. 1024) that would 
     express the sense of Congress that the Secretary of the Navy 
     should name one of the ships of the DDG-51 class of 
     destroyers the U.S.S. Thomas F. Connolly in honor of Vice 
     Admiral Connolly.
       The Senate amendment contained no similar provision.
       The House recedes.
     Assignment of Department of Defense personnel to assist 
         immigration and naturalization service and custom service
       The House bill contained a provision (sec. 1032) that would 
     authorize the Secretary of Defense to assign up to 10,000 
     U.S. military personnel to assist the Immigration and 
     Naturalization Service and the U.S. Customs Service in their 
     border enforcement duties at the request of the Attorney 
     General or the Secretary of the Treasury.
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of annual report requirement relating to training of 
         special operations forces with friendly foreign forces
       The House bill contained a provision (sec. 1042) that would 
     amend section 2011 of title 10, United States Code, to repeal 
     the requirement that the Department of Defense prepare an 
     annual report relating to training of U.S. Special Operations 
     Forces with the forces of friendly foreign governments.
       The Senate bill contained no similar provision.
       The House recedes.
     Armament retooling and manufacturing support initiative
       The House bill contained a provision (sec. 1065) that would 
     expand the purpose of the Armament Retooling and 
     Manufacturing Support Initiative to allow for the use of 
     ammunition manufacturing facilities by other entities for the 
     purpose of modernization, development, and restoration of the 
     facilities. The authority would also allow the government to 
     enter into 99 year leases with private entities that want to 
     operate on these facilities.
       The Senate amendment contained no similar provision.
       The House recedes.
     Long-term charter contracts for acquisition of auxiliary 
         vessels for the Department of Defense
       The House bill contained a provision (sec. 1501) that would 
     authorize the Secretary of the Navy to enter into long-term 
     lease agreements for the procurement of combat logistics 
     force (CLF) ships.
       The Senate amendment contained no similar provision.
       The House recedes.
     Availability of certain fiscal year 1991 funds for payment of 
         contract claim
       The Senate amendment contained a provision (sec. 1007) that 
     would authorize the Secretary of the Army to reimburse the 
     Treasury judgment fund out of a certain fiscal year 1991 
     appropriation for any judgment against the United States that 
     might be rendered in the case Appeal of McDonnell Douglas 
     Company, Number 48029, presently before the Armed Services 
     Board of Contract Appeals.
       The House bill contained no similar provision.
       The Senate recedes.
     Psychotherapist-patient privilege in the Military Rules of 
         Evidence
       The Senate amendment contained a provision (sec. 1051) that 
     would require the Secretary of Defense to submit to the 
     President, for consideration for promulgation under article 
     36 of the Uniform Code of Military Justice (10 U.S.C. 836), a 
     recommended amendment to the Military Rules of Evidence that 
     would recognize a testimonial privilege regarding disclosure 
     by a psychotherapist of confidential communications with a 
     patient. The privilege was to be applicable to patients who 
     are not subject to the Uniform Code of Military Justice and, 
     upon a determination by the Secretary of Defense, to 
     individuals subject to the Code.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the Department of Defense has 
     already made significant progress toward drafting a 
     recommended amendment to the Military Rules of Evidence 
     incorporating the above-described privilege. The conferees 
     urge the Department of Defense to submit the proposed 
     amendment to the President at the earliest opportunity.
     Acceptance and use of landing fees for use of overseas 
         military airfields by civil aircraft
       The Senate amendment contained a provision (sec. 1055) that 
     would authorize a military service to accept and retain fees 
     for the use of foreign-based military airfields by civil 
     aircraft.
       The House bill contained no similar provision.
       The Senate recedes.
     Protection of employees from retaliation for certain 
         disclosures of classified information
       The Senate amendment contained a provision (sec. 1068) that 
     would amend the Whistleblower Protection Act to protect 
     certain government employees from reprisal for disclosing 
     classified information to certain members or employees of 
     Congress in the

[[Page H9405]]

     course of providing evidence of violations of law or other 
     wrongdoing.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that existing law prohibits reprisals 
     against covered employees for disclosing information--whether 
     classified or not--to the Congress, if that information 
     relates to violations of law or regulation, gross 
     mismanagement or waste, abuses of authority, or dangers to 
     public health or safety. The conferees direct the Secretary 
     of Defense to report to the Committee on Armed Services of 
     the Senate and the Committee on National Security of the 
     House of Representatives not later than March 1, 1998, on the 
     following:
       (1) the mechanisms presently in law or regulation under 
     which federal or contractor employees may report violations 
     of law, fraud, waste, or abuse to the Congress or within the 
     executive branch where classified information is involved;
       (2) the steps the Department of Defense has taken to ensure 
     that such employees are aware of those mechanisms; and
       (3) the protections in effect in law or regulation to 
     ensure that the employees who use these mechanisms are 
     protected against reprisal.
     Criminal prohibition on the distribution of certain 
         information relating to explosives, destructive devices, 
         and weapons of mass destruction
       The Senate amendment contained a provision (sec. 1075) that 
     would amend section 842 of title 18, United States Code, to 
     make it a crime for a person to teach, demonstrate the making 
     of explosives, destructive devices or weapons of mass 
     destruction, or to distribute information on the manufacture 
     or use of explosives, destructive devices, and weapons of 
     mass destruction.
       The House bill contained no similar provision.
       The Senate recedes.
     Restrictions on quantities of alcoholic beverages available 
         for personnel overseas through Department of Defense 
         sources
        The Senate amendment contained a provision (sec. 1090) 
     that would require the Secretary of Defense to prescribe 
     regulations relative to the quantity of alcoholic beverages 
     that are available to service members assigned overseas 
     through the Department of Defense, including alcoholic 
     beverages available through nonappropriated fund 
     instrumentalities. The regulations would be required to be 
     consistent with the goal of preventing the blackmarket sale 
     of American alcoholic beverages at overseas locations.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees remain concerned about the problem of the 
     blackmarket resale of American products overseas, 
     particularly alcoholic beverages in countries such as Korea. 
     However, the conferees understand that the Department of the 
     Army has taken administrative steps to reduce the 
     opportunities for black marketing of alcoholic beverages in 
     Korea and other overseas locations. Therefore, the conferees 
     direct the Secretary of Defense to submit to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives a report that would 
     describe the rules that govern the quantities of alcoholic 
     beverages available to service members overseas and the 
     administrative actions taken by each of the military 
     departments to control the illegal resale of alcoholic 
     beverages at overseas military installations. The report 
     shall identify circumstances that contribute to the problem 
     of blackmarket resale of products sold in exchanges in South 
     Korea, and shall include an assessment of the extent to which 
     South Korean trade restrictions on beer and other products 
     are a contributing factor. The report should be submitted no 
     later than March 31, 1998.

           Title XI--Department of Defense Civilian Personnel

                     Legislative Provisions Adopted

     Use of prohibited constraints to manage Department of Defense 
         personnel (sec. 1101)
       The Senate amendment contained a provision (sec. 1101) that 
     would require the secretaries of the military departments and 
     heads of defense agencies to certify directly to the 
     Committee on Armed Services of the Senate and the Committee 
     on National Security of the House of Representatives that the 
     civilian workforce under their jurisdiction is not and has 
     not during the preceding six months been the subject of any 
     constraint or limitation in terms of man years, full-time 
     equivalent positions, or maximum number of employees.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     reporting requirement to an annual report.
     Veterans' preference status for certain veterans who served 
         on active duty during the Persian Gulf War (sec. 1102)
       The House bill contained a provision (sec. 323) that would 
     permit veterans preference to be awarded to military 
     personnel who served on active duty during the Persian Gulf 
     War.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Repeal of deadline for placement consideration of 
         involuntarily separated military reserve technicians 
         (sec. 1103)
       The Senate amendment contained a provision (sec. 1104) that 
     would eliminate the time limitation within which 
     involuntarily separated military reserve technicians would be 
     given priority placement consideration.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Rate of pay of Department of Defense overseas teachers upon 
         transfer to General Schedule position (sec. 1104)
       The House bill contained a provision (sec. 321) that would 
     provide the Secretary of Defense authority to adjust a 
     Department of Defense Dependents Schools educator's salary up 
     to 20 percent when that person is moved from a position under 
     the Teaching Position (TP) pay system to a position under the 
     General Schedule (GS) pay system.
       The Senate amendment contained a provision (sec. 1105) that 
     would authorize the Secretary of Defense to prescribe 
     regulations to control the amount of salary increase awarded 
     to certain overseas professional educators who transfer from 
     positions compensated under the ``Teaching Pay'' system to 
     positions compensated under the ``General Schedule'' pay 
     system.
       The House recedes with an amendment that would clarify the 
     Senate provision.
     Garnishment and involuntary allotment (sec. 1105)
       The Senate amendment contained a provision (sec. 1107) that 
     would restore the requirement that the cost of garnishment or 
     involuntary allotments be borne by the federal employee.
       The House bill contained no similar provision.
       The House recedes.
     Extension and revision of voluntary separation incentive pay 
         authority (sec. 1106)
       The Senate amendment contained a provision (sec. 1103) that 
     would extend the authority for the Voluntary Separation 
     Incentive Pay Program for the Department of Defense until 
     September 30, 2001.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Use of approved fire-safe accommodations by Government 
         employees on official business (sec. 1107)
       The House bill contained a provision (sec. 322) that would 
     require that each government agency ensure that not less than 
     90 percent of the commercial-lodging room nights for 
     employees of that agency be booked at approved accommodations 
     and would require that each government agency establish 
     explicit procedures to meet this requirement.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would retain the 
     90 percent standard; require the Federal Emergency Management 
     Agency to prepare an accurate fire-safe hotel list; and 
     require the General Services Administration to submit a one-
     time report on implementation of the requirements.
     Navy higher education pilot program regarding administration 
         of business relationships between Government and private 
         sector (sec. 1108)
       The Senate amendment contained a provision (sec. 1108) that 
     would establish a pilot program of higher education at the 
     Naval Undersea Warfare Center and would authorize $2.5 
     million to be appropriated to fund the program.
       The House bill contained no similar amendment.
       The House recedes with an amendment that would provide the 
     Secretary of the Navy the authority to establish and fund a 
     pilot program of higher education available to employees of 
     the Naval Undersea Warfare Center, employees of the Naval Sea 
     Systems Command, and employees of the Acquisition Center for 
     Excellence of the Navy.
     Authority for Marine Corps University to employ civilian 
         faculty members (sec. 1109)
       The House bill contained a provision (sec. 903) that would 
     authorize the Secretary of the Navy to employ civilian 
     professors at any of the seven colleges within the Marine 
     Corps University whose principal course of instruction is 10-
     months or more long.
       The Senate amendment contained a similar provision (sec. 
     1102).
       The Senate recedes with a clarifying amendment.

              Title XII--Matters Relating to Other Nations

                     Legislative Provisions Adopted

    Subtitle A--United States Armed Forces in Bosnia and Herzegovina

     Limitation on the use of funds for the deployment of U.S. 
         forces in Bosnia beyond June 30, 1998 (secs. 1201-1206)
       The House bill contained provisions (secs. 1201, 1210-1212) 
     on Bosnia that would require the Secretary of Defense to 
     submit a report to Congress identifying the non-military 
     tasks performed by U.S. armed forces participating in the 
     NATO Stabilization Force (SFOR) in Bosnia; would direct the 
     President to report on the political and military conditions 
     in Bosnia and the costs associated with the continued 
     presence of U.S. armed forces in Bosnia, and would limit the 
     expenditure of a portion of the fiscal year 1998 defense 
     funds authorized and appropriated for operations in Bosnia 
     until such time as the report is submitted to Congress. In 
     addition, a provision in the House bill would limit the use 
     of fiscal year 1998 defense funds for the deployment of U.S. 
     armed forces in Bosnia after June 30, 1998.

[[Page H9406]]

       The Senate amendment contained a provision (sec. 1083) that 
     would express the sense of the Senate that U.S. ground combat 
     forces should be withdrawn from Bosnia by June 30, 1998 and 
     should not participate in a follow-on force; that a Western 
     European Union-led, or a NATO-led, force without U.S. ground 
     combat forces are suitable for a follow-on force after June 
     30; that, if necessary, the United States may appropriately 
     provide support, including command and control, intelligence, 
     logistics and, if required, a ready reserve force in the 
     region; and that the President should inform European allies 
     of the views expressed by the Congress, strongly urging them 
     to take appropriate steps to prepare a follow-on force to 
     maintain peace in Bosnia, and consult with Congress on any 
     support provided by the United States to a WEU-led or NATO-
     led follow-on force after June 30, 1998.
       The conferees agree to a series of provisions that would 
     express findings of the Congress regarding the deployment of 
     U.S. armed forces in Bosnia and express the sense of Congress 
     that a WEU-led or NATO-led force without participation of 
     U.S. ground combat forces may be suitable for a follow-on 
     force to the SFOR, and that the United States may decide to 
     provide appropriate support to such a follow-on force. 
     Another provision would limit the use of fiscal year 1998 
     funds authorized for the Department of Defense after June 30, 
     1998 for the deployment of U.S. ground combat forces in 
     Bosnia, unless the President certifies to the Congress that 
     the continued presence of U.S. ground combat forces is in the 
     national security interests, and that it will remain the 
     policy of the United States that U.S. ground forces will not 
     be used as civil police in Bosnia. Concurrent with this 
     certification, the President would be required to submit a 
     report on the rationale for a continued U.S. armed forces 
     presence, the number of U.S. military personnel to be 
     deployed in and around Bosnia, the expected duration of the 
     deployment, the mission and objectives of the U.S. armed 
     forces deployed in and around Bosnia after June 30, 1998, the 
     exit strategy and incremental costs associated with the 
     deployment of the U.S. military in and around Bosnia after 
     June 30, 1998, and other issues associated with extending the 
     presence of the U.S. military forces in and around Bosnia. In 
     addition, the conferees agree to a provision that would 
     require the President to submit concurrently with the 
     certification and report, a supplemental appropriations 
     request for such amounts as are necessary to continue the 
     deployment of U.S. military forces in and around Bosnia after 
     June 30, 1998.
       Another provision (sec. 1204) would require the Secretary 
     of Defense to submit two reports to Congress regarding 
     activities and tasks carried out by U.S. forces assigned 
     to the Stabilization Force (SFOR), or any successor force 
     to SFOR.
       Lastly, the conferees agree to a provision (sec. 1205) that 
     would require the President to submit a report to Congress by 
     February 1, 1998 on the political and military conditions in 
     Bosnia, that would include, but not be limited to, an 
     assessment of progress made in implementing the Dayton Peace 
     Agreement, other matters related to a follow-own force to 
     SFOR, the possible involvement of U.S. military forces 
     supporting peacekeeping activities in Bosnia following the 
     withdrawal of U.S. ground combat forces from Bosnia, and a 
     detailed explanation and timetable for withdrawing U.S. 
     ground combat forces from Bosnia by June 30, 1998.

       Subtitle B--Export Controls on High Performance Computers

     Export controls on high performance computers (secs. 1211-
         1215)
       The House bill contained provisions (secs. 1231-1234) that 
     would express concerns about recent reports that United 
     States-origin supercomputers were obtained by countries of 
     proliferation concern for possible use in weapons-related 
     activities and that these countries have refused to allow the 
     United States to conduct post-shipment verification of the 
     supercomputers to ensure that they are not being used for 
     military purposes. The provision would prohibit the export, 
     or re-export, of supercomputers with a composite theoretical 
     performance of more than 2,000 millions of theoretical 
     operations per second (MTOPS) to any Tier III country without 
     the prior written approval of the Secretary of Commerce, the 
     Secretary of Defense, the Secretary of Energy, the Secretary 
     of State, and the Director of the Arms Control and 
     Disarmament Agency. It would also require the President to 
     report to Congress on all supercomputers with a computational 
     capability of over 2,000 MTOPS that have been exported to all 
     countries since January 1996. Finally, it would require post-
     shipment verification of U.S. origin supercomputers that 
     exceed 2,000 MTOPS that have been exported to Tier III 
     countries and require a report on the results of post-
     shipment verification.
       The Senate amendment contained a provision (sec. 1080) that 
     would require the General Accounting Office (GAO) to conduct 
     a study on the national security risks of selling 
     supercomputers with a computational capability of 2,000-7,000 
     MTOPS to end-users in Tier III countries and to conduct an 
     assessment of foreign availability of supercomputers in the 
     2,000-7,000 MTOPS range. The provision would require the 
     Secretary of Commerce to publish a list of military and 
     nuclear end-users and establish procedures by which U.S. 
     exporters may seek information on questionable end-users.
       The conferees agree to a series of provisions. One 
     provision (sec. 1211) would require that no computer with a 
     composite theoretical performance of more than 2,000 MTOPS, 
     or such other composite theoretical performance level 
     established by the President, may be exported or re-exported 
     to covered countries without a license if the sale without a 
     license is objected to in writing by the Secretary of 
     Commerce, the Secretary of Defense, the Secretary of Energy, 
     the Secretary of State, or the Director of the Arms Control 
     and Disarmament Agency. Such objection would have to be made 
     within ten days of receiving the notice of proposed export, 
     or re-export. The provision would allow the President, after 
     consultation with the same department and agency heads, to 
     change the threshold of the composite theoretical performance 
     levels that would require the aforementioned ten day review 
     before being exported without license to covered countries. 
     However, the provision would delay implementation of such a 
     threshold adjustment for 180 days after receipt by Congress 
     of a report that justifies the change of the threshold. In 
     addition, the provision would allow the President to add or 
     delete countries from the list of covered countries, after 
     consultation with the same department and agency heads, but 
     would delay implementation of deletions from the list for 120 
     days after receipt by Congress of a report that justifies the 
     deletion, and would preclude the deletion of certain 
     countries of proliferation concern from this list. Another 
     provision (sec. 1212) would require a report to Congress on 
     the sales of high performance computers to Tier III countries 
     since January 1996. The conferees also agree to a provision 
     (sec. 1213) that would require post-shipment verification of 
     high performance computers sold to covered countries and an 
     annual report on the results of post-shipment verification. 
     Lastly, the conferees direct the GAO to study the national 
     security risks of exporting high performance computers to 
     Tier III countries and to provide an analysis of the foreign 
     availability of high performance computers (sec. 1214).

                       Subtitle C--Other Matters

     Temporary use of general purpose vehicles and nonlethal 
         military equipment under acquisition and cross servicing 
         agreements (sec. 1222)
       The House bill contained a provision (sec. 1204) that would 
     amend section 2350(1) of title 10, United States Code, to 
     clarify the conditions under which the Department of Defense 
     may enter into acquisition and cross servicing agreements, 
     and define certain provisions of the United States Munitions 
     List to apply under those conditions in order to permit the 
     Department of Defense to use general purpose vehicles and 
     nonlethal military equipment in contingency military 
     operations.
       The Senate amendment contained no similar provision.
       The conferees direct the Secretary of Defense to provide a 
     report to the congressional defense committees by May 1, 1998 
     on the Department's use of this authority to enter 
     acquisition and cross servicing agreements that would permit 
     the temporary use of general purpose vehicles and nonlethal 
     military equipment in contingency military operations.
     Sense of Congress and reports regarding financial costs of 
         enlargement of the North Atlantic Treaty Organization 
         (sec. 1223)
       The House bill contained a provision (sec. 1207) that would 
     limit the amount spent by the United States on enlarging the 
     membership of the North Atlantic Treaty Organization (NATO) 
     to ten percent of the cost of expansion, or a total of $2.0 
     billion, whichever is less, for fiscal years 1998 through 
     2010.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include 
     findings on the differing assessments of the costs of 
     enlarging NATO in reports submitted to Congress by the 
     Department of Defense, the Congressional Budget Office and 
     the RAND Corporation, and the General Accounting Office; 
     would express the sense of Congress that the costs associated 
     with enlarging the Alliance will be major factors during 
     Senate consideration of the instruments of ratification, and 
     the congressional authorization and appropriation of funds. 
     The provision would require the Secretary of Defense to 
     provide to Congress by March 31, 1998, an assessment of the 
     NATO analysis of the military requirements and the estimated 
     financial costs to the Alliance of integrating Poland, the 
     Czech Republic, and Hungary into NATO. In addition, the 
     provision would require the Secretary of Defense to submit 
     with the fiscal year 1999 budget a report on the costs of 
     NATO enlargement reflected in the Department of Defense 
     budget and with appropriate detail in the budget 
     justification materials submitted to Congress.
     Sense of Congress regarding expansion of the North Atlantic 
         Treaty Organization (sec. 1224)
       The Senate amendment contained a provision (sec. 1087) that 
     would express the sense of the Senate commending the North 
     Atlantic Treaty Organization (NATO) for its commitment to 
     review the prospect of further enlarging the Alliance in 
     1999, and for its recognition of progress made by Romania

[[Page H9407]]

     and Slovenia in meeting the guidelines for prospective 
     membership in NATO.
       The House bill contained no similar provision.
       The House recedes with a technical and clarifying 
     amendment.
     Sense of the Congress relating to level of United States 
         military personnel in the East Asia and Pacific region 
         (sec. 1225)
       The House bill contained a provision (sec. 1208) that would 
     express the sense of Congress that the United States should 
     maintain at least approximately 100,000 U.S. military 
     personnel in the East Asia-Pacific region to ensure stability 
     in that critical area.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Report on future military capabilities and strategy of the 
         People's Republic of China (sec. 1226)
       The House bill contained a provision (sec. 1203) that would 
     require the Department of Defense to prepare an assessment of 
     the future military capabilities and strategy of the People's 
     Republic of China.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Sense of Congress on need for Russian openness on the 
         Yamantau Mountain Project (sec. 1227)
       The House bill contained a provision (sec. 1209) that would 
     express the sense of Congress for the need for more openness 
     on the part of the Russian government on the purpose of a 
     massive underground facility at Yamantau Mountain.
       The Senate amendment did not contain a similar provision.
       The Senate recedes with a clarifying amendment.
       The United States and Russia have been working to establish 
     a new strategic relationship based on cooperation and 
     openness, which has resulted in the conclusion of several 
     far-reaching arms control agreements designed to further 
     reduce bilateral threats and to limit the proliferation of 
     weapons of mass destruction. Despite good faith efforts on 
     both sides to comply with the letter and spirit of these 
     agreements, the conferees are concerned about reports that a 
     massive underground facility is currently under construction 
     at Yamantau Mountain. In seeking answers to questions about 
     the purpose of the project at Yamantau Mountain, it appears 
     that the Russian Federation has deliberately misled the 
     United States about the purpose of this facility on a number 
     of occasions. The facility appears to be designed to survive 
     a nuclear war and appears to exceed reasonable defense 
     requirements.
       The Russian Federation has offered numerous stories about 
     the construction activities at Yamantau Mountain and the city 
     of Mezhgorye and the purpose of such activities. In 1991 and 
     1992, the commandant of Beloretsk-15 and Beloretsk-16, 
     People's Deputy Leonid A. Tskirkunov told two stories about 
     these activities. First, he said they were building a mining 
     and ore-processing complex. Later, he changed that 
     explanation to one of constructing an underground food and 
     clothing warehouse. In 1992, a former communist official in 
     the region, M.Z. Shakiorov, alleged that the Russian 
     Federation was building a shelter for its national 
     leadership, in case of war.
       In 1996, sources from the Russian newspaper Segodnya 
     claimed that the facility was associated with a nuclear 
     retaliatory command and control system for strategic missiles 
     known as ``Dead Hand.'' This claim was denied by General Igor 
     Sergeyev, the Commander-in-Chief of the Strategic Rocket 
     Forces. In that same year, a Deputy of the State Assembly, R. 
     Zhukov, claimed the facility at Yamantau Mountain belonged to 
     the ``atomic scientists.''
       The United States has learned that Russia's 1997 budget 
     lists the Yamantau Mountain project as a Ministry of Defense 
     installation on a closed territory. However, First Deputy of 
     Defense Andre Kokoshin denied Ministry of Defense involvement 
     with the activity.
       The conferees are concerned that the Russian Federation 
     should be more forthcoming in providing the United States 
     with more information on the Yamantau Mountain Project. The 
     sense of Congress expressed the need for the Federation to 
     provide the United States with a detailed explanation of the 
     purpose of the Yamantau Mountain Project, and that the 
     Russian Government allow the United States Delegations to 
     visit the facility, and facilities in the southern and 
     northern settlements located near Yamantau.
     Assessment of the Cuban threat to United States national 
         security (sec. 1228)
       The Senate amendment contained a provision (sec. 1046) that 
     would require the Department of Defense to submit a report on 
     an assessment of the threat posed by Cuba to U.S. national 
     security.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Report on Helsinki Joint Statement (sec. 1229)
       The Senate amendment contained a provision (sec. 1045) that 
     would require the President to submit a report to Congress on 
     the agreement reached by the United States and the Russian 
     Federation on future reductions in nuclear forces and the 
     United States approach to implementing the Helsinki Joint 
     Statement, to include verification implications.
       The House bill contained no similar provision.
       The House recedes.
     Commendation of Mexico on free and fair elections (sec. 1230)
       The Senate amendment contained a provision (sec. 3601) that 
     would express a sense of Congress that Mexico is to be 
     commended for its holding of free and fair elections on July 
     6, 1997.
       The House bill contained no similar provision.
       The House recedes.
     Sense of Congress regarding Cambodia (sec. 1231)
       The Senate amendment contained a provision (sec. 3602) that 
     would express a sense of Congress that the conditions that 
     existed in Cambodia prior to the actions of Hun Sen, who 
     ousted his democratically-elected co-Prime Minister Prince 
     Ranariddh, should be restored, and that assistance by the 
     United States and other donor nations to Cambodia should be 
     suspended until that time.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Congratulating Governor Christopher Patten of Hong Kong (sec. 
         1232)
       The Senate amendment contained a provision (sec. 3603) that 
     would express a sense of Congress that Christopher Patten, 
     British governor of Hong Kong until the time the British 
     colony was turned over to the People's Republic of China, is 
     to be commended for his leadership of Hong Kong under British 
     rule.
       The House bill contained no similar provision.
       The House recedes.

              Title XIII--Arms Control and Related Matters

                     Legislative Provisions Adopted

     Presidential report concerning detargeting of Russian 
         strategic missiles (sec. 1301)
       The House bill contained a provision (sec. 1206) that would 
     require the President to certify to Congress by January 1, 
     1998 whether the United States is able to verify by technical 
     means that Russian intercontinental ballistic missiles 
     (ICBMs) are not targeted at the United States; the length of 
     time it would take for a detargeted Russian ICBM to be 
     retargeted against a site in the United States; and whether a 
     detargeted Russian ICBM would be automatically retargeted 
     against a site in the United States in the event of an 
     accidental launch.
       The Senate amendment contained no similar provision.
       The conferees note that the Secretary of Defense was 
     directed in the House report on H.R. 3230 (H. Rept. 104-563), 
     the National Defense Authorization Act for Fiscal Year 1997, 
     to provide a report on the verifiability and military 
     significance of the Moscow Declaration of January 14, 1994. 
     On May 16, 1997, the Secretary submitted a report to Congress 
     which stated that the United States could not independently 
     verify that Russian intercontinental ballistic missiles were 
     no longer targeted at the United States and that detargeted 
     Russian ICBMs could be quickly retargeted within minutes. 
     With regard to detargeted U.S. ICBMs, the report stated that 
     these missiles could be retargeted in a short time.
       The conferees believe that efforts between the United 
     States and the Russian Federation to lower the threat of a 
     massive nuclear exchange are laudable goals and encourage 
     measures that would make a substantive contribution toward 
     enhancing strategic stability. The conferees agree that it is 
     important to have a full understanding of what particular 
     agreements mean relative to achieving those goals. The 
     conferees support a careful analysis of the advantages and 
     limitations of the missile detargeting agreement. Therefore, 
     the conferees agree to a provision that would require the 
     President to submit a report to Congress that addresses 
     issues regarding the detargeting of Russian strategic 
     missiles.
     Limitation on retirement or dismantlement of strategic 
         nuclear delivery systems (sec. 1302)
       The Senate amendment contained a provision (sec. 1054) that 
     would preclude the reduction of certain strategic delivery 
     systems unless the START II Treaty enters into force and the 
     President waives this prohibition. The provision would also 
     prohibit substantial early deactivation of strategic nuclear 
     delivery systems, such as warhead removal, unless the 
     Secretary of Defense meets certain requirements, as specified 
     in the provision. Finally, the provision would require the 
     Secretary of Defense to prepare a plan for the contingency 
     sustainment of a START I force beyond 1998, should START II 
     not enter into force by 2004.
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit the 
     obligation of funds available to the Department of Defense 
     during fiscal year 1998 to implement an agreement that 
     results in substantial early deactivations of U.S. strategic 
     forces until the President makes certain determinations.
     Assistance for facilities subject to inspection under the 
         Chemical Weapons Convention (sec. 1303)
       The Senate amendment contained a provision (sec. 1057) that 
     would allow the Department of Defense (DOD), through the On-
     Site

[[Page H9408]]

     Inspection Agency (OSIA), to provide technical assistance to 
     companies that are subject to routine or challenge inspection 
     under the terms of the Chemical Weapons Convention (CWC), 
     provided that OSIA is reimbursed for such assistance by the 
     U.S. National Authority established under the CWC.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees note that the CWC imposes new obligations on 
     private U.S. companies that may lead them to seek assistance 
     from DOD in preparing their facilities for inspections to be 
     carried out under the Convention's terms. The conferees 
     recognize that the On-Site Inspection Agency possesses the 
     technical experience to assist companies in this process. 
     However, this is not part of OSIA's mission and the DOD would 
     incur significant costs in providing such assistance. To this 
     end, the conferees agree that DOD may not provide any CWC-
     related assistance to private companies unless the Secretary 
     of Defense determines that the Department will be reimbursed 
     for the costs incurred in providing such assistance.
       The conferees note that the CWC implementing legislation 
     passed by the Senate contains a similar provision. The 
     conferees expect DOD to adhere to the additional requirements 
     that govern the process by which the Department is to be 
     reimbursed.
     Transfers of authorizations for high-priority 
         counterproliferation programs (sec. 1304)
       The Senate amendment contained a provision (sec. 217) that 
     would authorize the Secretary of Defense to transfer up to 
     $50.0 million from funds authorized in fiscal year 1998 for 
     the Department of Defense to conduct counterproliferation 
     programs, projects, and activities that are identified as a 
     high priority by the Counterproliferation Review Committee.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Advice to the President and Congress regarding the safety, 
         security, and reliability of United States nuclear 
         weapons stockpile (sec. 1305)
       The Senate amendment contained a provision (sec. 1084) that 
     would extend to the directors of Department of Energy nuclear 
     weapons laboratories, the Commander in Chief of the U.S. 
     Strategic Command, and any member of the Joint Nuclear 
     Weapons Council protection against adverse action by 
     employees of the Federal Government in cases where those 
     individuals gave advice or opinions to the President or 
     Congress relating to a safety, security, or reliability 
     issue with the nuclear weapons stockpile.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify 
     section 3159(b) of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201) to require that reports 
     on problems with the nuclear weapons stockpile prepared by 
     the directors of the nuclear weapons laboratories be 
     submitted to the President, in addition to Congress, and to 
     extend protection to the Department of Energy nuclear weapons 
     production plant managers. Section 3159(b) would be modified 
     to require the Department of Energy Assistant Secretary for 
     Defense Programs to forward any such reports in their 
     entirety, with any comments the Assistant Secretary deems 
     appropriate, within ten days.
       The conferees note that the Congress has frequently 
     expressed its view that the stewards of the nuclear weapons 
     stockpile must freely give their best advice on the safety 
     and reliability of the stockpile. The conferees note that 
     earlier legislation has provided for reports on such advice.
     Reconstitution of Commission to Assess the Ballistic Missile 
         Threat to the United States (sec. 1306)
        The conferees agree to include a provision that would 
     extend by one year the time for the Commission to Assess the 
     Ballistic Missile Threat to the United States, established 
     pursuant to Subtitle B of Title XIII of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201), 
     to complete its original charter.
     Sense of Congress regarding the relationship between 
         environmental laws and United States obligations under 
         the Chemical Weapons Convention (sec. 1307)
        The Senate amendment contained a provision (sec. 1058) 
     that would express the sense of the Senate that the President 
     should use the authority available under existing law to 
     ensure that the United States is able to construct and 
     operate the facilities necessary to destroy the United States 
     stockpile of lethal chemical agents and munitions within the 
     time allowed by the Chemical Weapons Convention (CWC) and 
     that the President should encourage negotiations between 
     appropriate Federal Government officials and officials of the 
     State and local governments concerned to attempt to meet 
     their concerns about the actions being taken to carry out the 
     obligations of the United States under the convention.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     provision to express the sense of Congress regarding 
     obligations of the United States under the CWC and would add 
     findings from a February 1997 General Accounting Office study 
     regarding matters that affect the schedule and costs of the 
     chemical demilitarization program.
     Extension of counterproliferation authorities for support of 
         United Nations Special Commission on Iraq (sec. 1308)
        The House bill contained a provision (sec. 1202) that 
     would extend the authority through fiscal year 1998 for the 
     Department of Defense (DOD) to continue to provide support to 
     the United Nations Special Commission on Iraq (UNSCOM).
       The Senate amendment contained a similar provision (sec. 
     1056).
       The Senate recedes with a technical amendment.
       The conferees support the extension of this authority given 
     ongoing concerns over Iraq's continued possession of weapons 
     of mass destruction and missile delivery systems. However, 
     the conferees are concerned that the DOD role in providing 
     assistance has transitioned from a short-term requirement to 
     a semi-permanent element of the effort to contain Iraq.
       Pursuant to United Nations Security Council Resolutions 986 
     and 1111, which took effect December 10, 1996 and June 8, 
     1997, respectively, Iraq is authorized to sell limited 
     quantities of oil with most of the proceeds going to pay for 
     humanitarian needs and to support UNSCOM activities. In 
     addition, UNSCOM activities are also funded by frozen Iraqi 
     assets and from direct and indirect contributions from other 
     nations. The conferees would note that the Department of 
     Defense is the primary source of U.S. government funding for 
     the UNSCOM mission, providing specialized equipment and 
     services otherwise unavailable to UNSCOM.
       The conferees believe that continued vigilance is warranted 
     to ensure that Iraq does not acquire or maintain proscribed 
     military capabilities. However, the conferees do not believe 
     that the costs of providing specialized support to UNSCOM 
     should be permanently borne by the Department of Defense. To 
     this end, the conferees support efforts by the Department to 
     seek reimbursement for expenses incurred in providing support 
     to UNSCOM and encourage the administration to negotiate 
     formal agreements to this effect.
     Annual report on moratorium on use by Armed Forces of 
         antipersonnel landmines (sec. 1309)
        The House bill contained a provision (sec. 1055) that 
     would require the Secretary of Defense, after consultation 
     with the Chairman of the Joint Chiefs of Staff, to certify to 
     Congress prior to the implementation of any moratorium by law 
     on the use of antipersonnel landmines (APL) by U.S. Armed 
     Forces, that any such moratorium would not adversely affect 
     the ability of U.S. Armed Forces to defend themselves, until 
     such time as effective substitutes exist to replace 
     antipersonnel landmines.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would contain 
     findings describing the actions and decisions by the 
     President relating to U.S. policy regarding antipersonnel 
     landmines and the status of current law; express the sense of 
     Congress regarding implementation of a landmine moratorium 
     and support for development of alternatives to antipersonnel 
     landmines. The provision would also require the Secretary 
     of Defense to submit an annual report describing the 
     military utility of the continued U.S. deployment of 
     antipersonnel landmines, progress in developing and 
     fielding systems that are effective substitutes for 
     antipersonnel landmines, their costs and an estimated 
     timetable for developing and fielding those systems, the 
     number and type of pure antipersonnel and mixed anti-tank 
     mine systems, the cost and effect of the elimination of 
     the former and the impact of their elimination on the 
     deterrence and warfighting ability of U.S. forces, and the 
     benefits to U.S. military and civilian personnel of an 
     international treaty banning the production, use, transfer 
     and stockpiling of antipersonnel landmines.
       The conferees endorse the President's September 17, 1997 
     pledge to increase U.S. support for worldwide demining 
     efforts.
       Further, the conferees believe that international support, 
     and increased funding, for practical efforts such as clearing 
     landmines and providing medical assistance and rehabilitation 
     to the wounded, could be highly effective in reducing the 
     landmine casualty count and reclaiming land for its intended 
     use.

  Title XIV--Cooperative Threat Reduction With States of Former Soviet 
                                 Union

                     Legislative Provisions Adopted

     Cooperative threat reduction (CTR) program (secs. 1401-1410)
        The budget request included $382.2 million for the 
     Cooperative Threat Reduction (CTR) program.
       The House bill contained provisions (secs. 1101-1111) that 
     would: authorize $284.7 million for the Cooperative Threat 
     Reduction (CTR) program, a $97.5 million reduction to the 
     budget request; specify CTR programs; allocate fiscal year 
     1998 funding for the various CTR programs and activities; 
     prohibit the use of CTR funds for specific purposes; prohibit 
     the obligation of CTR funds until various reports, 
     notifications, and certifications are submitted to the 
     Congress; make prior year unobligated CTR balances available 
     for three fiscal years; and make fiscal year 1998 CTR funds 
     available for three fiscal

[[Page H9409]]

     years. The House bill would also add funds for the Department 
     of Energy (DOE) budget to carry out nuclear reactor core 
     conversion activities in Russia under the auspices of the CTR 
     program.
       The Senate amendment contained provisions (secs. 1009 and 
     1085) that would authorize the budget request of $382.2 
     million; would make funds authorized in fiscal year 1997 for 
     international border security activities available for three 
     years; and would provide the Secretary of Defense authority 
     to exceed the sublimits established in fiscal years 1996 and 
     1997 for CTR activities. The provisions would also limit the 
     obligation or expenditure of certain fiscal year 1998 funds 
     until receipt of either a certification by the President 
     regarding Russian progress in solving outstanding compliance 
     issues under bilateral chemical weapons agreements, or a 
     presidential certification that U.S. national security 
     interests would be undermined if CTR chemical weapons 
     destruction activities were not carried out.
       The conferees agree to a series of provisions that would 
     authorize $382.2 million for the CTR program, establish 
     sublimits for CTR activities and would provide the Secretary 
     of Defense with authority to exceed the established sublimits 
     in fiscal years 1996, 1997, and 1998 for strategic 
     elimination activities in Russia and Ukraine. The obligation 
     of fiscal year 1998 CTR funds is contingent upon the 
     submission of various reports, notifications, and 
     certifications to the Congress. The use of the word 
     ``agreements'' in these provisions does not preclude the 
     possibility that the conditions set forth can be met by the 
     implementing agreements routinely entered into between the 
     Department of Defense (DOD) and the CTR partner for specific 
     projects.
       The conferees reiterate their traditional support for CTR 
     assistance in the elimination of strategic nuclear weapons 
     systems in Russia and Ukraine. However, given the economic 
     and financial conditions in Russia, the conferees are 
     concerned about Russia's willingness to contribute its share 
     of the costs of eliminating its strategic offensive arms and 
     its declared stockpile of chemical weapons. As noted in 
     recent U.S. resolutions of ratification of arms control 
     agreements, the U.S. believes that Russia must contribute its 
     share of the costs of complying with its arms control 
     commitments.
       The conferees note that the Department of Defense is 
     seeking congressional approval of fiscal year 1998 funds for 
     certain projects where fiscal year 1997 funds have not yet 
     been fully obligated because of the lack of the necessary 
     implementing agreements. As a general management principle, 
     the conferees believe that fiscal year 1998 funds should not 
     be obligated for those projects until the fiscal year 1997 
     CTR funds have been obligated.
       The conferees are also concerned about recent reports that 
     Russia has applied taxes, duties, overhead charges, and other 
     arbitrary assessments on U.S. assistance. The conferees agree 
     to a provision that would require the Secretary of Defense to 
     report to the Congress on the impact of these charges on the 
     CTR program, and what can be done to reduce or eliminate such 
     charges.
       Finally, the conferees maintain their belief that the 
     proliferation of weapons of mass destruction, delivery 
     systems, components, materials, and related technologies, 
     represents a growing threat to the United States and to U.S. 
     interests. In this regard, the conferees note that section 
     1424 of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201) authorized $15.0 million of 
     CTR funds for international border security. This program 
     would provide assistance to customs officials and border 
     guard officials in the independent states of the former 
     Soviet Union, such as Azerbaijan, Armenia, Georgia, the 
     Baltic states, and other countries in Eastern Europe. The 
     conferees understand that funds authorized for this activity 
     have not been obligated or expended. The conferees note the 
     continued congressional support for this activity and direct 
     the Department to take appropriate actions to establish this 
     activity and to obligate the funds available as soon as 
     possible. These activities provide an early line of defense 
     by improving the detection and interdiction of such weapons, 
     materials, and technologies before they cross international 
     borders.

         Title XV--Federal Charter for the Air Force Sergeants

                     Legislative Provisions Adopted

     Federal Charter for the Air Force Sergeants Association 
         (secs. 1501-1516)
       The Senate amendment contained a series of provisions (sec. 
     1201-1216) that would grant a federal charter for the Air 
     Force Sergeants Association.
       The House bill contained no similar provision.
       The House recedes.
       The leadership of the Committee on Armed Services of the 
     Senate and the Committee on National Security of the House of 
     Representatives recognize the current moratorium on granting 
     of federal charters and agree that, in the future, amendments 
     to the National Defense Authorization Bill that would grant a 
     federal charter should not be included in a conference 
     agreement unless favorably recommended by the committees of 
     jurisdiction.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS


                                overview

       The budget request for fiscal year 1998 included 
     $8,383,248,000 for military construction and family housing.
       The House bill would authorize $9,123,748,000 for military 
     construction and family housing.
       The Senate amendment would provide $9,077,061,000 for this 
     purpose.
       The conferees recommend authorization of appropriations of 
     $9,173,748,000 for military construction and family housing, 
     including general reductions and termination of prior year 
     projects.

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[[Page H9428]]



    FY 1998/1999 BUDGET ESTIMATES--FY 1998 BRAC MILITARY CONSTRUCTION   
                                PROJECTS                                
                        [In thousands of dollars]                       
------------------------------------------------------------------------
 State and installation/location          Description           Amount  
------------------------------------------------------------------------
              Army: BRAC III Construction, fiscal Year 1998             
                                                                        
Texas:                                                                  
    Fort Bliss...................  Repair Aircraft Hanger          3,650
                                    (46865) III.                        
                                                            ------------
                                     Subtotal Army Texas...        3,650
                                   Total for Army BRAC III         3,650
                                    Construction, FY 1998.              
                                                                        
               Army BRAC IV Construction, fiscal Year 1998              
                                                                        
Alaska:                                                                 
    Fort Wainwright..............  Missile Test Facility             600
                                    (46159) IV.                         
                                                            ------------
                                     Subtotal Army Alaska..          600
California:                                                             
    Camp Parks...................  Army Reserve Center             9,500
                                    Facility (46206) IV.                
    Sierra Army Depot............  Consolidated Security             900
                                    (45872) IV.                         
    Travis Air Force Base........  Administrative Facility         2,250
                                    (47187) IV.                         
                                                            ------------
                                     Subtotal Army                12,650
                                    California.                         
Colorado:                                                               
    Fitzsimons Army Medical Ctr..  Sanitary Sewer (46341)          2,100
                                    IV.                                 
    Fort Carson..................  Readiness Group Admin           2,500
                                    Facility (46413) IV.                
                                                            ------------
                                     Subtotal Army Colorado        4,600
District of Columbia:                                                   
    Walter Reed AMC..............  Nurse Training Facility         1,500
                                    (463342).                           
                                                            ------------
                                     Subtotal Army District        1,500
                                    of Columbia.                        
Maryland:                                                               
    Fort Detrick.................  Health Clinic (46329) IV          650
    Fort Meade...................  Administrative Facility         6,300
                                    (47237) IV.                         
                                                            ------------
                                     Subtotal Army Maryland        6,950
Michigan:                                                               
    Detroit Arsenal..............  Storage Facility (46300)        5,900
                                    IV.                                 
                                                            ------------
                                     Subtotal Army Michigan        5,900
Missouri:                                                               
    Fort Leonard Wood............  Range Modifications            17,500
                                    (46094) IV.                         
                                   Military Operations in          6,900
                                    Urbanized Terrain                   
                                    Facility (45892) IV.                
                                                            ------------
                                     Subtotal Army Missouri       24,400
New York:                                                               
    Fort Totten..................  Storage Facility (46258)        1,900
                                    IV.                                 
                                                            ------------
                                     Subtotal Army New York        1,900
Nevada:                                                                 
    Hawthorne Army Ammo Pit......  Warehouse (46217) IV....        1,550
    Nellis Air Force Base........  Administrative Facility         3,850
                                    (46291) IV.                         
                                                            ------------
                                     Subtotal Army Nevada..        5,400
South Carolina:                                                         
    Fort Jackson.................  DoD Polygraph                   4,600
                                    Instructional Fac                   
                                    (45839) IV.                         
                                                            ------------
                                     Subtotal Army South           4,600
                                    Carolina.                           
Virginia:                                                               
    Fort Pickett.................  Reserve Center Building         3,100
                                    (46354) IV.                         
                                                            ------------
                                     Subtotal Army Virginia        3,100
Washington:                                                             
    Fort Lewis...................  CHPPM Ctr for Health            3,150
                                    Promotion (46354) IV.               
                                                            ------------
                                     Subtotal Army                 3,150
                                    Washington.                         
Various Locations................  Program Management IV...        3,750
                                   Total for Army BRAC IV         78,500
                                    Construction, FY 1998.              
                                                                        
                   Navy BRAC III Construction, FY 1998                  
                                                                        
California                                                              
    NAS, Lemoore.................  Administrative Office           2,586
                                    (186T) III.                         
    MCAS, Miramar................  Support Facilities             48,773
                                    (007T) III.                         
    Pacific Fleet AWTC, San Diego  Gym (387T) III..........        3,501
    NSB, San Diego...............  Pier Renovation (124T)            891
                                    III.                                
    PWC, San Diego...............  Public Works Shop (175T)        1,821
                                    III.                                
                                                            ------------
                                     Subtotal Navy                57,572
                                    California.                         
Florida:                                                                
    NAD, Jacksonville............  Administrative Building         5,074
                                    (220T) III.                         
    NAS, Jacksonville............  Aviation Physiology             3,383
                                    Training Building                   
                                    (831T) III.                         
    NTC, Orlando.................  Facility Modifications          2,686
                                    (001T) III.                         
                                                            ------------
                                     Subtotal Navy Florida.      111,143
Georgia:                                                                
    NAS, Atlanta.................  Marine Reserve Training         9,053
                                    Facility (906T) III.                
                                                            ------------
                                     Subtotal Navy Georgia.        9,053
Hawaii:                                                                 
    PMRF, Barking Sands..........  Ordnance Facilities               612
                                    (297T) III.                         
    MCAS, Kaneohe Bay............  Aviation Supply                 1,491
                                    Facilities (274T) III.              
                                   Utilities Upgrade (504T)        2,168
                                    III.                                
                                   Ordnance Facilities             1,160
                                    (508T) III.                         
    NS, Pearl Harbor.............  Fleet Imaging Center            1,005
                                    (524T) III.                         
    PWC, Pearl Harbor............  Utility System                  1,492
                                    Modifications (539T)                
                                    III.                                
                                                            ------------
                                     Subtotal Navy Hawaii..        7,928
Virginia:                                                               
    NS, Norfolk..................  Administrative Facility           995
                                    (360T) III.                         
                                                            ------------
                                     Subtotal Navy Virginia          995
Washington:                                                             
    Navy Hospital, Bremerton.....  Outpatient Clinic (019T)       10,409
                                    III.                                
                                                            ------------
                                     Subtotal Navy                10,409
                                    Washington.                         
Wisconsin:                                                              
    Fort McCoy...................  Equipment Maintenance           2,295
                                    Facility (701T) III.                
                                                            ------------
                                     Subtotal Navy                 2,295
                                    Wisconsin.                          
                                   Total for Navy BRAC III        99,395
                                    Construction, FY 1998.              
                                                                        
               Navy BRAC IV Construction, Fiscal Year 1998              
                                                                        
California:                                                             
    MCAS, Miramar................  Administrative/Training         1,403
                                    Spaces (020U) IV.                   

[[Page H9429]]

                                                                        
    NAS, North Island............  Operational Facility and       28,750
                                    Parking (820U) IV.                  
                                   Intermediate Maintenance        1,273
                                    Facility (822U) IV.                 
                                                            ------------
                                     Subtotal Navy                31,426
                                    California.                         
District of Columbia:                                                   
    Commandant, Naval District     Naval Sea Systems Cmd          86,045
     Washington.                    Hdq Relocation (088U)               
                                    IV.                                 
                                                            ------------
                                     Subtotal Navy District       86,045
                                    of Columbia.                        
Florida:                                                                
    NAS, Jacksonville............  Medical/Dental Additions        2,985
                                    (231U) IV.                          
                                   S-3 Naval Maintenance           1,329
                                    Trng Grp Mods (239U) IV.            
                                                            ------------
                                     Subtotal Navy Florida.        4,314
Guam:                                                                   
    Naval Activities.............  Building Renovation               597
                                    (416U) IV.                          
                                                            ------------
                                     Subtotal Navy Guam....          597
Pennsylvania:                                                           
    NSWC, Philadelphia...........  Accoustics R&D Facility         6,151
                                    (185U) IV.                          
                                                            ------------
                                     Subtotal Navy                 6,151
                                    Pennsylvania.                       
Virginia:                                                               
    NAS, Oceana..................  Flight Simulator                8,998
                                    Building Addition                   
                                    (160U) IV.                          
                                   Corrosion Control Hangar        4,775
                                    (576U) IV.                          
                                   Hanger Utilities                1,244
                                    Improvements (165U) IV.             
                                   F/A 18 Aviation                 2,686
                                    Maintenance Additions               
                                    (164U) IV.                          
                                   Renovate/Addition               5,671
                                    Training Facility                   
                                    (161U) IV.                          
    FISC, Williamsburg...........  Building Renovation             2,437
                                    (028U) IV.                          
                                   Cargo Staging Area              1,443
                                    (029U) IV.                          
                                                            ------------
                                     Subtotal Navy Virginia       27,254
                                     Total Navy BRAC IV          155,787
                                    Construction, FY 1998.              
                                                                        
            Air Force BRAC III Construction, Fiscal Year 1998           
                                                                        
California:                                                             
    Travis AFB...................  Land Purchase                   2,055
                                    (XDAT973300) III.                   
                                   Total for Air Force BRAC        2,055
                                    III Construction, FY                
                                    1998.                               
                                                                        
               Air Force BRAC III Family Housing, FY 1998               
                                                                        
California:                                                             
    Travis AFB...................  Improve Family Housing         46,010
                                    (XDAT950000) III.                   
                                   Total for Air Force BRAC       46,010
                                    III Family Housing, FY              
                                    1998.                               
                                                                        
                 Air Force BRAC IV Construction, FY 1998                
                                                                        
California:                                                             
    Beale AFB....................  Dining Facility                 2,100
                                    (PRJ891009R1) IV.                   
                                   938 Engineering Install         8,100
                                    Sqd (PRJY911023R2) IV.              
                                   Enlisted Dormitory              9,000
                                    (PRJY93103R2) IV.                   
                                   Add to Child Development        2,100
                                    Center (PRJY95301R1) IV.            
                                   Vehicle Maintenance             1,450
                                    Facility (PRJY953009R1)             
                                    IV.                                 
                                   Air Force Res KC-135            1,700
                                    Flight Sim                          
                                    (PRJY953046R1) IV.                  
    Palmdale Plant 42............  Add/Alt QLA Secure                580
                                    Warehouse                           
                                    (PRJY953008R2) IV.                  
                                                            ------------
                                     Subtotal Air Force           25,030
                                    California.                         
Colorado:                                                               
    Falcon AFB...................  Satellite Control              16,000
                                    Facility (GLEN973008A)              
                                    IV.                                 
                                   Add to Dining Facility            500
                                    (GLEN973009) IV.                    
                                   Technical Support               6,400
                                    Facility (GLEN973010)               
                                    IV.                                 
                                   Alter Operations Support          760
                                    Facility (GLEN973020)               
                                    IV.                                 
                                   Add to Fitness Center             300
                                    (GLEN983023) IV.                    
    Peterson AFB.................  Enlisted Dormitory              1,200
                                    (TDKA963004) IV.                    
                                                            ------------
                                     Subtotal Air Force           25,160
                                    Colorado.                           
New York:                                                               
    Fort Drum....................  Vehicle OPS Heated              1,700
                                    Parking (WOXG959613) IV.            
                                   Add to Fire Station               300
                                    (FPBB969510) IV.                    
                                                            ------------
                                     Subtotal Air Force New        2,000
                                    York.                               
Ohio:                                                                   
    Wright-Patterson AFB.........  Renovte QLA Support             2,500
                                    Facility (PRJY921012R1)             
                                    IV.                                 
                                                            ------------
                                     Subtotal Air Force            2,500
                                    Ohio.                               
Oklahoma:                                                               
    Vance AFB....................  Add to Child Development          330
                                    Center (XTLF983303) IV.             
                                                            ------------
                                     Subtotal Air Force              330
                                    Oklahoma.                           
Texas:                                                                  
    Brooks.......................  Add/Alter YAD/textile           3,900
                                    Laboratory (CNBC993000)             
                                    IV.                                 
    Kelly AFB....................  Comm Infrastructure             2,500
                                    Support (MBPB993225R1)              
                                    IV.                                 
    Lackland AFB.................  838th Engineer                  5,600
                                    Installation Sqd                    
                                    (MBPB993201R1) IV.                  
                                   Child Development Center          480
                                    (MBPB993209R2) IV.                  
                                   Add to Auto Hobby Shop          1,100
                                    (MBPB993222R1) IV.                  
    Laughlin AFB.................  Engine Staging Facility         2,950
                                    (MXDP973004R2) IV.                  
                                                            ------------
                                     Subtotal Air Force           16,530
                                    Texas.                              
Various Locations................  Planning and Design             4,157
                                    (BCL98RD4) IV.                      
                                   Total for Air Force BRAC       75,707
                                    IV Construction, FY                 
                                    1998.                               
                                                                        
                Air Force BRAC IV Family Housing, FY 1998               
                                                                        
Texas                                                                   
    Lackland AFB.................  General Officers                  790
                                    Quarters (MBPB993203R2)             
                                    IV.                                 
                                   Total for Air Force BRAC          790
                                    IV Family Housing, FY               
                                    1998.                               
------------------------------------------------------------------------

       DLA and DISA had no projects relating to any BRAC round 
     requested in FY 1998.

                            Title XXI--Army

                            Fiscal Year 1998

     Overview
       The House bill would authorize $2,055,364,000 for Army 
     military construction and family housing programs for fiscal 
     year 1998.
       The Senate amendment would authorize $1,951,478,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $2,010,466,000 for Army military construction and family 
     housing for fiscal year 1998.
       The conferees agree to a general reduction of $36,600,000 
     in the authorization of appropriations for the Army military 
     construction account. The general reduction is to be offset 
     by savings from adjustments to foreign currency exchange 
     rates for military construction projects and the support of 
     military family housing outside the United States. The 
     general reduction shall not cancel any military construction 
     authorized by of this Act.


                       ITEMS OF SPECIAL INTEREST

     Planning and design, Army
       The Senate report on S.924 (S. Rept. 105-29) directed that, 
     of the amount authorized for

[[Page H9430]]

     appropriations for Army planning and design, not more than 
     $1,000,000 may be directed toward the design of the gymnasium 
     at the United States Military Academy, New York.
       The conferees direct that from the funds authorized for 
     appropriations for planning and design, the Secretary of the 
     Army may use funds as necessary to initiate planning and 
     design activities for the renovation of the gymnasium at the 
     United States Military Academy, New York and authorize 
     $3,100,000 for planning and design activities for the 
     construction of the National Ground Intelligence Center, 
     Charlottesville, Virginia.
     Improvements of military family housing, Army
       The conferees recommend that, within authorized amounts for 
     improvements of military family housing and facilities, the 
     Secretary of the Army execute the following projects: 
     $9,600,000 for Whole Neighborhood Revitalization (52 units) 
     at Fort Richardson, Alaska; $8,300,000 for Whole Neighborhood 
     Revitalization (32 units) at Fort Wainwright, Alaska; 
     $7,000,000 for Whole Neighborhood Revitalization (106 units) 
     at Fort Riley, Kansas; $6,000,000 for Whole Neighborhood 
     Revitalization, Phase IV (60 units) at Fort Campbell, 
     Kentucky; $5,400,000 for Whole Neighborhood Revitalization 
     (56 units) at the United States Military Academy, New York; 
     and $5,000,000 for Whole Neighborhood Revitalization (48 
     units) at Fort Belvoir, Virginia.

                     Legislative Provisions Adopted

     Correction in authorized uses of funds, Fort Irwin, 
         California (sec. 2105)
       The Senate amendment contained a provision (sec. 2105) that 
     would authorize the Secretary of the Army to construct a 
     heliport at Fort Irwin, California, using funds authorized 
     and appropriated in fiscal years 1995 and 1996 for 
     construction of the National Training Center Airfield, Fort 
     Irwin, California. The provision would make available $20.0 
     million for the construction of the heliport.
       The House bill contained a similar provision (sec. 2105).
       The House recedes with a technical amendment.

                            Title XXII--Navy

     Overview
       The House bill would authorize $2,053,025,000 for Navy 
     military construction and family housing programs for fiscal 
     year 1998.
       The Senate amendment would authorize $1,898,924,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $2,027,339,000 for Navy military construction and family 
     housing for fiscal year 1998.
       The conferees agree to a general reduction of $17,163,000 
     in the authorization of appropriations for the Navy military 
     construction account. $8,463,000 of the reduction is to be 
     offset by savings from favorable bids, reduction in overhead 
     costs, and cancellation of projects due to force structure 
     changes. $8,700,000 of the reduction is to be offset by 
     savings from adjustments to foreign currency exchange rates 
     for military construction projects and the support of 
     military family housing outside the United States. The 
     general reduction shall not cancel any military construction 
     authorized by title XXII of this Act.


                       ITEMS OF SPECIAL INTEREST

     Improvements of military family housing, Navy
       The conferees recommend that, within authorized amounts for 
     improvements to military family housing and facilities, the 
     Secretary of the Navy execute the following projects: 
     $4,193,000 for Whole House Revitalization (120 units) at 
     Naval Air Warfare Center China Lake, California; $7,700,000 
     for Whole House Revitalization (64 units) at Public Works 
     Center Great Lakes, Illinois; $9,000,000 for Whole House 
     Revitalization (90 units) at Naval Air Warfare Center 
     Patuxent River, Maryland; $2,863,000 for Whole House 
     Revitalization (37 units) at Camp Lejeune, North Carolina; 
     and $6,000,000 for Whole House Revitalization (83 units) at 
     Marine Corps Air Station Cherry Point, North Carolina.

                     Legislative Provisions Adopted

     Authorization of military construction project at Naval 
         Station, Pascagoula, Mississippi, for which funds have 
         been appropriated (sec. 2205)
       The House bill contained a provision (sec. 2205) that would 
     authorize $4,900,000 to extend the west quaywall at Naval 
     Station, Pascagoula, Mississippi, for which funds were 
     previously appropriated pursuant to the Military Construction 
     Appropriations Act for Fiscal Year 1997 (Public Law 104-196).
       The Senate amendment contained a similar provision (sec. 
     2205).
       The Senate recedes with a technical amendment.
     Increase in authorization for military construction projects 
         at Naval Station Roosevelt Roads, Puerto Rico (sec. 2206)
       The Senate amendment contained a provision (sec. 2206) that 
     would amend section 2201(b) of the Military Construction Act 
     for Fiscal Year 1997 (Division B of Public Law 104-201) to 
     increase the authorization for the construction of a barracks 
     at Naval Station Roosevelt Roads, Puerto Rico from $23.6 
     million to $24.1 million. The section would also make certain 
     conforming changes.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                         Title XXIII--Air Force

                            Fiscal Year 1998

     Overview
       The House bill would authorize $1,810,120,000 for Air Force 
     military construction and family housing programs for fiscal 
     year 1998.
       The Senate amendment would authorize $1,793,949,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $1,791,640,000 for Air Force military construction and family 
     housing for fiscal year 1998.
       The conferees agree to a general reduction of $36,158,000 
     in the authorization of appropriations for the Air Force 
     military construction account. $23,858,000 of the reduction 
     is to be offset by savings from favorable bids, reduction in 
     overhead costs, and cancellation of projects due to force 
     structure changes. $12,300,000 of the reduction is to be 
     offset by savings from adjustments to foreign currency 
     exchange rates for military construction projects and the 
     support of military family housing outside the United States. 
     The general reduction shall not cancel any military 
     construction authorized by title XXIII of this Act.


                       ITEMS OF SPECIAL INTEREST

     Improvements of military family housing, Air Force
       The conferees recommend that, within authorized amounts for 
     improvements of military family housing and facilities, the 
     Secretary of the Air Force execute the following projects: 
     $5,000,000 for family housing improvements (72 units) at 
     Cannon Air Force Base, New Mexico; $4,600,000 for family 
     housing improvements (60 units) at Tinker Air Force Base, 
     Oklahoma; $7,000,000 for family housing improvements (78 
     units) at Charleston Air Force Base, South Carolina; and 
     $5,000,000 for family housing improvements (50 units) at Shaw 
     Air Force Base, South Carolina.

                     Legislative Provisions Adopted

     Authorization of military construction project at McConnell 
         Air Force Base, Kansas, for which funds have been 
         appropriated (sec. 2305)
       The House bill contained a provision (sec. 2305) that would 
     authorize $6,700,000 for a consolidated education center at 
     McConnell Air Force Base, Kansas, for which funds were 
     previously appropriated pursuant to the Military Construction 
     Appropriations Act, 1997 (Public Law 104-196).
       The Senate amendment contained a similar provision (sec. 
     2305).
       The House recedes with a technical amendment.

                      Title XXIV--Defense Agencies

                            Fiscal Year 1998

     Overview
       The House bill would authorize $650,907,000 for Defense 
     Agencies military construction and family housing programs 
     for fiscal year 1998.
       The Senate amendment would authorize $717,677,000 for this 
     purpose.
       The conferees recommend authorization of appropriations of 
     $684,016,000 for Defense Agencies military construction and 
     family housing for fiscal year 1998. The conferees agree to a 
     general reduction of $1,200,000 in the authorization of 
     appropriations for the Defense Agencies military construction 
     account. The general reduction is to be offset by savings 
     from adjustments to foreign currency exchange rates for 
     military construction projects and the support of military 
     family housing outside the United States. The general 
     reduction shall not cancel any military constructions 
     authorized by title XXIV of this Act.

                     Legislative Provisions Adopted

     Clarification of authority relating to fiscal year 1997 
         project at Naval Station, Pearl Harbor, Hawaii (sec. 
         2406)
       The Senate amendment contained a provision (sec. 2406) that 
     would amend the table in section 2401 (a) of the Military 
     Construction Authorization Act for Fiscal Year 1997 (Division 
     B of Public Law 104-201), to change the location of the 
     Special Operations Command military construction project from 
     Ford Island, Pearl Harbor, Hawaii, to Naval Station, Pearl 
     City Peninsula, Pearl Harbor, Hawaii.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Correction in authorized uses of funds, McClellan Air Force 
         Base, California (sec. 2407)
       The Senate amendment contained a provision (sec. 2407) that 
     would authorize the Secretary of Defense to use funds 
     appropriated and authorized in fiscal year 1995 for life 
     saving improvements at McClellan Air Force Base Hospital. The 
     funds would be authorized for use in the following manner: 
     (1) $3.7 million for the construction of an addition to the 
     Aeromedical Clinic, Anderson Air Force Base, Guam; and (2) 
     $6.5 million for the construction of an occupational health 
     clinic, Tinker Air Force Base, Oklahoma.
       The House bill contained a similar provision (sec. 2406).
       The House recedes with a technical amendment.
     Modification of authority to carry out fiscal year 1995 
         projects (sec. 2408)
       The Senate amendment contained a provision (sec. 2408) that 
     would amend section 2401 of the Military Construction 
     Authorization

[[Page H9431]]

     Act for Fiscal Year 1995, as amended. The provision would 
     authorize an increase of funding for the construction of the 
     Chemical Demilitarization Facilities at Pine Bluff Arsenal, 
     Arkansas, from $115.0 million to $134.0 million, and at 
     Umatilla Army Depot, from $186.0 million to $187.0 million, 
     due to cost increases resulting from a delay in receiving the 
     appropriate permits.
       The House bill contained a similar provision (sec. 2407).
       The House recedes with a technical amendment.

   Title XXV--North Atlantic Treaty Organization Security Investment 
                                Program

                            Fiscal Year 1998

     Overview
       The House bill would authorize $166,300,000 for the U.S. 
     contribution to the NATO Security Investment Program for 
     fiscal year 1998.
       The Senate amendment would authorize $152,600,000 for this 
     purpose.
       The conferees agree to authorize $152,600,000 for the 
     United States contribution to the NATO Security Investment 
     Program.

            Title XXVI--Guard and Reserve Forces Facilities

                            Fiscal Year 1998

     Overview
       The House bill would authorize $327,208,000 for military 
     construction and land acquisition for fiscal year 1998 for 
     the Guard and Reserve components.
       The Senate amendment would authorize $507,279,000 for this 
     purpose.
       The conferees recommend authorization of appropriations of 
     $448,033,000 for military construction and land acquisition 
     for fiscal year 1998. This authorization would be distributed 
     as follows:

Army National Guard........................................$113,750,000
Army Reserve.................................................66,267,000
Naval/Marine Corps Reserve...................................47,329,000
Air National Guard..........................................190,444,000
Air Force Reserve............................................30,243,000

       The conferees agree to a general reduction of $7,900,000 in 
     the authorization of appropriations for the Air Force Reserve 
     military construction account. The general reduction is to be 
     offset by savings from favorable bids, reduction in overhead 
     costs, and cancellation of projects due to force structure 
     changes. The general reduction shall not cancel any military 
     constructions authorized by title XXVI of this Act.


                       items of special interest

     Reserve construction project, Oakdale, Pennsylvania
       The conference agreement provides $6.0 million for phase I 
     construction of a reserve center with an organizational 
     maintenance shop and area maintenance support center at 
     Oakdale, Pennsylvania to support the Army Reserve. The 
     conferees urge the Secretary of the Army to make every effort 
     to include the appropriate level of funding for the remaining 
     phases of construction in the fiscal year 1999 budget 
     request.

                     Legislative Provisions Adopted

     Authorization of military construction projects for which 
         funds have been appropriated (sec. 2602)
       The House bill contained a provision (sec. 2602) that would 
     authorize $5,900,000 for the Army National Guard for 
     additions and alterations to an aviation support facility at 
     Hilo, Hawaii, and $4,800,000 for the Naval Reserve for a 
     bachelor enlisted quarters at Naval Air Station, New 
     Orleans, Louisiana, for which funds were previously 
     appropriated pursuant to the Military Construction 
     Appropriations Act, 1997 (Public Law 104-196).
       The Senate amendment contained a similar provision (sec. 
     2602).
       The Senate recedes.
     Army Reserve construction project, Camp Williams, Utah (sec. 
         2603)
       The House bill contained a provision (sec. 2603) that would 
     authorize the Secretary of the Army to accept financial or 
     in-kind contributions from the State of Utah for land 
     acquisition, site preparation, and relocation, in connection 
     with the construction of a reserve center and organization 
     maintenance shop in Salt Lake City, Utah.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary and the State to enter into an agreement under 
     which the State would provide financial or in-kind 
     contributions for land acquisition, site preparation, 
     relocation, and other costs in connection with the 
     construction of a reserve center and organization maintenance 
     shop at Camp Williams, Utah.

        Title XXVII--Expiration and Extension of Authorizations

                     Legislative Provisions Adopted

     Extension of authorizations of certain fiscal year 1995 
         projects (sec. 2702)
       The House bill contained a provision (sec. 2702) that would 
     provide for selected extension of certain fiscal year 1994 
     military construction authorizations until October 1, 1998, 
     or the date of the enactment of the Act authorizing funds for 
     military construction for fiscal year 1999, whichever is 
     later.
       The Senate amendment contained a similar provision (sec. 
     2702).
       The House recedes with a technical amendment.
     Extension of authorizations of certain fiscal year 1994 
         projects (sec. 2703)
       The Senate amendment contained a provision (sec. 2703) that 
     would provide for selected extension of certain fiscal year 
     1994 military construction authorizations until October 1, 
     1998, or the date of the enactment of the Act authorizing 
     funds for military construction for fiscal year 1998, 
     whichever is later.
       The House bill contained a similar provision (sec. 2703).
       The House recedes with a technical amendment.
     Extension of authorizations of certain fiscal year 1993 
         projects (sec. 2704)
       The House bill contained a provision (sec. 2704) that would 
     provide for selected extension of certain fiscal year 1993 
     military construction authorizations until October 1, 1998, 
     or the date of the enactment of the Act authorizing funds for 
     military construction for fiscal year 1999, whichever is 
     later.
       The Senate amendment contained a similar provision (sec. 
     2704).
       The Senate recedes.
     Extension of availability of funds for construction of 
         relocatable over-the-horizon radar, Naval Station 
         Roosevelt Roads, Puerto Rico (sec. 2706)
       The House bill contained a provision (sec. 2706) that would 
     provide for an extension of authority to construct a 
     relocatable over-the-horizon radar at Naval Station Roosevelt 
     Roads, Puerto Rico authorized by the Defense Appropriations 
     Act, 1995 (Public Law 103-335) until October 1, 1998, or the 
     date of the enactment of the Act authorizing funds for 
     military construction for fiscal year 1999, whichever is 
     later.
       The Senate amendment contained a similar provision (sec. 
     2409).
       The Senate recedes with a technical amendment.

                    Title XXVIII--General Provisions

                     Legislative Provisions Adopted

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

     Use of mobility enhancement funds for unspecified minor 
         construction (sec. 2801)
       The House bill contained a provision (sec. 2801) that would 
     authorize the use of funds made available for mobility 
     enhancement for unspecified minor construction. Under the 
     provision, mobility enhancement funds could not be used for 
     unspecified minor construction if the cost of the 
     construction project would exceed $1,500,000.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Limitation on the use of operation and maintenance funds for 
         facility repair projects (sec. 2802)
       The House bill contained a provision (sec. 2802) that would 
     clarify the definition of repair of facilities using 
     operations and maintenance funds.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Leasing of military family housing, United States Southern 
         Command, Miami, Florida (sec. 2803)
       The House bill contained a provision (sec. 2803) that would 
     amend section 2828 of title 10, United States Code, to 
     authorize the Secretary of the Army to lease not more than 
     eight housing units in the vicinity of Miami, Florida, for 
     key and essential personnel of United States Southern 
     Command, as determined by the Secretary, for which the annual 
     rental of such units would exceed the expenditure limitations 
     established by law. This section would establish certain new 
     expenditure limitations related to such housing units.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Use of financial incentives provided as part of energy 
         savings and water conservation activities (sec. 2804)
       The Senate amendment contained a provision (sec. 2804) that 
     would amend section 2865 of title 10, United States Code, to 
     authorize the Secretary of Defense to credit financial 
     incentives received from gas or electric utilities to an 
     appropriation designated by the Secretary. The impact of this 
     authority would be reflected in the Secretary's annual energy 
     report. The provision would also include a conforming 
     amendment.
       The House bill contained a similar provision (sec. 2804).
       The House recedes with a technical amendment.
     Congressional notification requirements regarding use of 
         Department of Defense housing funds for investments in 
         nongovernmental entities (sec. 2805)
       The House bill contained a provision (sec. 2805) that would 
     provide for a 30-day notice-and-wait requirement on requests 
     to use funds appropriated or otherwise made available under 
     the authority of subchapter IV of chapter 169 of title 10, 
     United States Code, as a cash contribution by the Department 
     of Defense toward the investment cost in any project entered 
     into under those authorities.
       The Senate amendment contained no similar provision.
       The Senate recedes.

        Subtitle B--Real Property and Facilities Administration

     Increase in ceiling for minor land acquisition projects (sec. 
         2811)
       The House bill contained a provision (sec. 2811) that would 
     increase the maximum limit

[[Page H9432]]

     for minor land acquisitions from $200,000 to $500,000.
       The Senate amendment contained a similar provision (sec. 
     2801).
       The Senate recedes.
     Permanent authority regarding conveyance of utility systems 
         (sec. 2812)
       The House bill contained a provision (sec. 1423) that would 
     authorize the secretary of a military department to convey, 
     with or without consideration, a utility system, or part of a 
     utility system, to a municipal, private, regional, district, 
     or cooperative utility company or other entity. Such utility 
     systems could include electrical generation and supply 
     systems, water supply and treatment systems, waste water 
     collection and treatment system, steam, hot or chilled water 
     generation and supply systems, natural gas supply systems, 
     and sanitary landfills or lands to be used for sanitary 
     fills. The provision would require the secretary concerned to 
     submit a 21-day notice-and-wait announcement, to include a 
     report containing an economic analysis of the proposed 
     conveyance, to Congress prior to entering into any agreement 
     to convey a utility.
       The Senate amendment contained a provision (sec. 2802) that 
     would authorize the service secretaries to convey all or part 
     of government utility systems located on military 
     installations to commercial or public utilities. The 
     utilities that may be conveyed include, but are not limited 
     to: electrical generation and supply; water treatment; water 
     supply; wastewater collection and treatment; steam, hot, 
     chilled water generation and supply, and natural gas supply. 
     The conveyance would be for fair market value, either as a 
     lump-sum payment or as a reduction in utility charges, 
     consistent with applicable Federal and State laws or 
     regulations, for a period sufficient to amortize the monetary 
     value of the utility system, including any conveyed real 
     property. Any lump sum payment received would be credited to 
     an appropriation available for the purchase of like utility 
     services or to an appropriation for the construction of 
     energy and water conservation projects or improvements to 
     other utility systems at the installation. The provision 
     would waive the cost comparison study between civilian and 
     government workers required by chapter 146 of title 10, 
     United States Code. The secretaries would not be authorized 
     to enter an agreement to convey until 21 days after the 
     service secretaries submit an economic analysis to the 
     congressional defense committees.
       The House recedes with an amendment that would strike the 
     waiver of a cost comparison study between civilian and 
     government workers required by chapter 146 of title 10, 
     United States Code. The amendment would add the authority to 
     convey a system for the transmission of telecommunications 
     and would require that if the payment for the utility is in 
     the form of reduced utility rates, that these rates be 
     consistent with Federal and state regulations. The amendment 
     would also make certain technical corrections.
     Administrative expenses for certain real property 
         transactions (sec. 2813)
       The House bill contained a provision (sec. 2812) that would 
     authorize the secretary of a military department to accept 
     reimbursement from non-federal entities for the cost of 
     certain real estate services and transactions, including real 
     estate exchanges, grants, and licenses, done at the request 
     of, and for the benefit of, those entities.
       The Senate amendment contained a similar provision (sec. 
     2803).
       The Senate recedes with an amendment that would delete the 
     conveyances of real property as a transaction covered by this 
     authority.
     Screening of real property to be conveyed by the Department 
         of Defense (sec. 2814)
       The Senate amendment contained a provision (sec. 2805) that 
     would require the Administrator of the General Services 
     Administration (GSA) to screen for federal interest any real 
     property whose conveyance is authorized by the Congress. The 
     Administrator would be required to complete a screen of the 
     property within 30 days of enactment. If the Administrator 
     establishes a federal interest, the property would be 
     conveyed pursuant to the Federal Property and Administrative 
     Services Act of 1949. If it is determined that there is no 
     other federal interest and the property is surplus to the 
     United States Government, the Secretary of the appropriate 
     military department would be authorized to transfer the real 
     property to the designated recipient.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Administrator to screen the property authorized for 
     conveyance for federal interest. Upon notification by the 
     Administrator of the interest of a Federal agency in the 
     property, the Secretary concerned would be required to notify 
     the Committee on Armed Services of the Senate and the 
     Committee on National Security of the House of 
     Representatives. The notification shall include the name of 
     the agency, the proposed use of the property, and the 
     estimated fair market value of the property and improvements. 
     The Secretary shall take no further action for 180 days. If, 
     after that period, the Congress has not rescinded the 
     conveyance, the Secretary may convey the property as 
     specified in the legislation. This requirement would apply to 
     any conveyances of real property enacted in any legislation 
     after December 31, 1997.
     Disposition of proceeds from sale of Air Force Plant 78, 
         Brigham City, Utah (sec. 2815)
       The Senate amendment contained a provision (sec. 2831) that 
     would authorize the Secretary of the Air Force to use the 
     funds deposited by the Administrator of General Services in 
     the account established under section 204(h)(2)(A) of the 
     Federal Property and Administrative Services Act of 1949 from 
     the sale of Air Force Plant 78, Brigham City, Utah, for 
     maintenance and repair of facilities, or environmental 
     restoration, at other industrial plants of the Air Force.
       The House bill contained a similar provision (sec. 2813).
       The House recedes with a technical amendment.
     Fire protection and hazardous materials protection at Fort 
         Meade, Maryland (sec. 2816)
       The Senate amendment contained a provision (sec. 1047) that 
     would require the Secretary of the Army to submit a plan to 
     the congressional defense committees outlining requirements 
     for fire protection services and hazardous materials 
     protection services at Fort Meade, Maryland. The report would 
     also outline a schedule for the implementation of the plan 
     and a detailed list of the funding options available.
       The House bill contained no similar provision.
       The House recedes.

            Subtitle C--Defense Base Closure and Realignment

     Consideration of military installations as sites for new 
         Federal facilities (sec. 2821)
       The House bill contained a provision (sec. 2821) that would 
     require the head of a federal agency to consult with the 
     Secretary of Defense on the availability of federal property 
     or facilities at a military installations to be closed or 
     realigned prior to acquiring non-federal real property.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     head of the federal agency to consult with and obtain the 
     concurrence of the redevelopment authority regarding the 
     availability and suitability of a former military 
     installation as the location for a new or replacement federal 
     facility. This requirement would expire on July 31, 2001.
     Adjustment and diversification assistance to enhance 
         performance of military family support services by 
         private sector sources (sec. 2822)
       The Senate amendment contained a provision (sec. 368) that 
     would amend section 2391(b)(5) of title 10, United States 
     Code, to authorize the Secretary of Defense, through the 
     Office of Economic Development, to make grants, conclude 
     cooperative agreements, and supplement other federal funds to 
     assist state or local governments in supporting the efforts 
     of the Department of Defense in privatizing family support 
     activities. These support services would include, but would 
     not be limited to, privatization and outsourcing of military 
     family housing, family housing referrals, child development 
     centers, and library services.
       The House bill contained no similar provision.
       The House recedes.
     Security, fire protection, and other services at property 
         formerly associated with Red River Army Depot, Texas 
         (sec. 2823)
       The Senate amendment contained a provision (sec. 1088) that 
     would authorize the Secretary of the Army to enter into an 
     agreement to provide the local redevelopment authority at Red 
     River Army Depot, fire, security, and hazardous material 
     response services on a reimbursable basis.
       The House bill contained no similar provision.
       The House recedes.
     Report on closure and realignment of military installations 
         (sec. 2824)
       The Senate amendment contained a provision (sec. 2832) that 
     would require the Secretary of Defense to submit to the 
     congressional defense committees a report on the costs and 
     savings attributable to the four base closure rounds 
     conducted under the base closure laws and on the need, if 
     any, for additional base closure rounds. The report would 
     have to be submitted not later than the fiscal year 2000 
     budget. The Congressional Budget Office and the Comptroller 
     General would be required to conduct a review of the report. 
     The provision would express a sense of Congress urging the 
     Secretary to develop a system to quantify costs and savings 
     attributable to the closure and realignment of military 
     installations under the base closure process.
       The House bill contained no similar provision.
       The House recedes with an amendment that would include an 
     assessment of the effect of previous base closure rounds on 
     the military capabilities and the ability of the Armed Forces 
     to fulfill the National Military Strategy. The amendment 
     would also make certain technical corrections.
     Sense of Senate regarding utilization of savings derived from 
         base closure process (sec. 2825)
       The Senate amendment contained a provision (sec. 2833) that 
     would make it the sense of the Senate that the savings 
     identified from base closure be made available to the 
     Department of Defense solely for the purpose of modernization 
     of weapons systems.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

[[Page H9433]]

     Prohibition against conveyance of property at Long Beach 
         Naval Station to China Ocean Shipping Company (sec. 2826)
       The House bill contained a provision (sec. 2822) that would 
     prohibit the Secretary of Defense from conveying, by sale, 
     lease, or other method, any portion of real property to be 
     disposed under the Defense Base Closure and Realignment Act 
     of 1990 (part A of title XXIX of Public Law 101-510) to a 
     state-owned shipping company. The section would also preclude 
     the Secretary, as a condition on each conveyance of real 
     property, from subsequently conveying the property to a 
     state-owned shipping company. The section would provide for a 
     reversionary interest of the United States in such property 
     in the event of a conveyance to, or use by, a state-owned 
     shipping company.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would specify 
     that the Secretary of Navy may not convey property at the 
     former Naval Station, Long Beach, California under the 
     Defense Base Closure and Realignment Act of 1990 (part A of 
     title XXIX of Public Law 101-510) to the China Ocean Shipping 
     Company (COSCO) or any successor of the company. The section 
     would also preclude the Secretary, as a condition on each 
     conveyance of real property, from subsequently conveying that 
     property to that company. The section would provide for a 
     reversionary interest of the United States in such property 
     in the event of a conveyance to, or use by, COSCO. The 
     provision would require the Secretary of Defense and the 
     Director of the Federal Bureau of Investigations to 
     separately prepare a report on the potential national 
     security implications of transferring the property to COSCO. 
     It would also include the authority for the President to 
     waive the restriction if it is determined that the transfer 
     would not adversely impact national security or significantly 
     increase the counter intelligence burden on the United States 
     intelligence community. The waiver would be effective 30 days 
     after the President notifies the Speaker of the House and the 
     President of the Senate.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

     Land conveyance, Army Reserve Center, Greensboro, Alabama 
         (sec. 2831)
       The Senate amendment contained a provision (sec. 2820) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, to Hale County, Alabama approximately 5.17 
     acres located at the Army Reserve Center, Greensboro, 
     Alabama. The property was conveyed to the United States by 
     warranty deed dated September 12, 1988, for the purpose of 
     constructing a reserve center which is no longer required.
       The House bill amendment contained no similar provision.
       The House recedes.
     Land Conveyance, James T. Coker Army Reserve Center, Durant, 
         Oklahoma (sec. 2832)
       The House bill contained a provision (sec. 2831) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements in 
     Durant, Oklahoma to Big Five Community Services, 
     Incorporated. The property is to be used for educational 
     purposes. The cost of any surveys necessary for the 
     conveyance shall be borne by Big Five Community Services, 
     Incorporated.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Gibson Army Reserve Center, Chicago, 
         Illinois (sec. 2833)
       The House bill contained a provision (sec. 2838) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements in 
     Chicago, Illinois, to the Lawndale Business and Local 
     Development Corporation. The cost of any surveys necessary 
     for the conveyance shall be borne by the Lawndale Business 
     and Local Development.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make the 
     conveyance subject to the condition that the corporation use 
     the property conveyed for economic development purposes.
     Land conveyance, Fort A.P. Hill, Virginia (sec. 2834)
       The House bill contained a provision (sec. 2832) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of unimproved real property at Fort 
     A.P. Hill, Virginia, to Caroline County, Virginia. The 
     property is to be used for a waste transfer station. The 
     costs of any surveys necessary for the conveyance shall be 
     borne by the County.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     specify that the County shall permit the Army, at no cost, to 
     dispose of not less than 1,800 tons of solid waste annually 
     at the facility established on the conveyed property.
     Land conveyances, Fort Dix, New Jersey (sec. 2835)
       The House bill contained a provision (sec. 2839) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements at 
     Fort Dix, New Jersey, to the Borough of Wrightstown, New 
     Jersey and a parcel with improvements to the Board of 
     Education of New Hanover, New Jersey. The property is to be 
     used for educational and economic purposes. The cost of any 
     surveys necessary for the conveyance shall be borne by the 
     Borough.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include a 
     reversionary clause in the event the Secretary determines 
     that the conveyed property is not being utilized in 
     accordance with the conditions and purposes of the 
     conveyance.
     Land conveyances, Fort Bragg, North Carolina (sec. 2836)
       The House bill contained a provision (sec. 2837) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of unimproved real property at Fort 
     Bragg, North Carolina, to the Town of Spring Lake, North 
     Carolina. The property is to be used for improved access to a 
     waste treatment facility and to permit economic development. 
     The cost of any surveys necessary for the conveyance shall be 
     borne by the Town.
       The Senate amendment contained a provision (sec. 2823) that 
     would authorize the conveyance, without consideration, of 157 
     acres of land at Fort Bragg, North Carolina to Harnett 
     County, North Carolina for educational and economic 
     development purposes. The provision would also authorize the 
     conveyance, at fair market value, of a parcel of land in the 
     amount of 137 acres at Fort Bragg, North Carolina to Harnett 
     County. The provisions would explicitly transfer any 
     environmental liability from the United States government to 
     the county.
       The conference agreement includes both provisions. The 
     Senate recedes with an amendment that would require the real 
     property conveyed to the Town of Spring Lake be subject to 
     the reversionary clause contained in the Senate provision. 
     The House recedes with an amendment that would strike the 
     transfer of liability from the United States government to 
     the county. The conferees understand that this transfer is 
     not required.
     Land conveyance, Hawthorne Army Ammunition Depot, Mineral 
         County, Nevada (sec. 2837)
       The Senate amendment contained a provision (sec. 2813) that 
     would authorize the Secretary of the Army to convey, without 
     reimbursement, to Mineral County, Nevada, approximately 33.1 
     acres of real property and improvements that constitute the 
     Schweer Drive Housing Area. The conveyance would be 
     contingent upon the County's acceptance of the property 
     subject to such easements or rights of way as the Secretary 
     considers appropriate. The provision would also require the 
     County to reimburse the United States in the event the 
     property is sold within 10 years. The reimbursement would be 
     equal to the lesser of the amount of the sale of the property 
     sold, or the fair market value of the property sold, 
     excluding the value of any improvements made by the County.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Expansion of land conveyance authority, Indiana Army 
         Ammunition Plant,
       Charlestown, Indiana (sec. 2838)
       The House bill contained a provision (sec. 2833) that would 
     amend section 2858 of the Military Construction Authorization 
     Act for Fiscal Year 1996 (division B of Public Law 104-106) 
     to provide for the additional conveyance of 500 acres of real 
     property to the State of Indiana.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Modification of land conveyance, Lompoc, California (sec. 
         2839)
       The House bill contained a provision (sec. 2834) that would 
     modify the purpose of the conveyance authorized by section 
     834(b)(1) of the Military Construction Authorization Act, 
     1985 (Public Law 98-407). The modification would permit the 
     real property to be conveyed by the Secretary of the Army to 
     the City of Lompoc, California, to be used for educational or 
     recreational purposes.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Modification of land conveyance, Rocky Mountain Arsenal, 
         Colorado (sec. 2840)
       The House bill contained a provision (sec. 2835) that would 
     permit the Administrator of General Services to enter into a 
     negotiated sale of 815 acres of real property at Rocky 
     Mountain Arsenal, Colorado, to Commerce City, Colorado.
       The Senate amendment contained a provision (sec. 2819) that 
     would authorize the conveyance of the 815 acres at fair 
     market value, as determined jointly by the Administrator and 
     Commerce City.
       The House recedes with a clarifying amendment.
     Correction of land conveyance authority, Army Reserve Center, 
         Anderson, South Carolina (sec. 2841)
       The House bill contained a provision (sec. 2836) that would 
     correct the name of the conveyee in the conveyance authorized 
     by section 2824 of the Military Construction Authorization 
     Act for Fiscal Year 1997 (division B of Public Law 104-201). 
     The correction would permit the conveyance to be made by the 
     Secretary of the Army to the Board of Education, Anderson 
     County, South Carolina.

[[Page H9434]]

       The Senate amendment contained a similar provision (sec. 
     2812).
       The House recedes with a technical amendment.

                       Part II--Navy Conveyances

     Land conveyance, Topsham Annex, Naval Air Station, Brunswick, 
         Maine (sec. 2851)
       The Senate amendment contained a provision (sec. 2815) that 
     would authorize the Secretary of the Navy to convey, without 
     consideration, to the Maine School Administrative District 
     No. 75, Topsham, Maine, a parcel of real property, consisting 
     of approximately 40 acres located at the Topsham Annex, Navy 
     Air Station, Brunswick, Maine. The provision would require 
     the district to use the conveyed property for educational 
     purposes. It would further provide for an interim lease of 
     the property until the property is conveyed. As compensation 
     for the lease, the district would provide security and 
     maintenance.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Land conveyance, Naval Weapons Industrial Reserve Plant No. 
         464, Oyster Bay, New York (sec. 2852)
       The Senate amendment contained a provision (sec. 2816) that 
     would authorize the Secretary of the Navy to convey, without 
     consideration, to the County of Nassau, New York, all right, 
     title, and interest of the United States in and to a parcel 
     of real property consisting of approximately 110 acres and 
     improvements comprising the Naval Weapons, Industrial Reserve 
     Plant No. 464, Oyster Bay, New York. The purpose of the 
     conveyance would be for economic development and would 
     include equipment, fixtures, and other personal property 
     located on the parcel as the Secretary determines not to be 
     required by the Navy. The provision would authorize the Navy 
     to enter into an interim lease with the County. The County 
     would provide security services, fire protection, and 
     maintenance work, as specified by the Secretary. The 
     provision would specify that, if the Secretary determines 
     within a 5-year period after the conveyance that the property 
     is not used in accordance with the condition of the 
     conveyance, the property would revert to the United States.
       The House amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Correction of lease authority, Naval Air Station, Meridian, 
         Mississippi (sec. 2853)
       The House bill contained a provision (sec. 2851) that would 
     change the name of the conveyee in the conveyance authorized 
     by section 2837 of the Military Construction Authorization 
     Act for Fiscal Year 1997 (division B of Public Law 104-201). 
     The correction would permit the conveyance to be made by the 
     Secretary of the Navy to the County of Lauderdale, 
     Mississippi.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                    Part III--Air Force Conveyances

     Land transfer, Eglin Air Force Base, Florida (sec. 2861)
       The House bill contained a provision (sec. 2861) that would 
     authorize the Secretary of Transportation to transfer, 
     without reimbursement, to the administrative jurisdiction of 
     the Secretary of the Air Force a parcel of real property with 
     improvements at Cape San Blas, Gulf County, Florida, 
     previously withdrawn for use as the location of a lighthouse. 
     The Secretary of the Air Force would incorporate the property 
     as part of Eglin Air Force Base, Florida.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, March Air Force Base, California (sec. 2862)
       The House bill contained a provision (sec. 2863) that would 
     authorize the Secretary of the Air Force to convey a parcel 
     of real property at March Air Force Base, California, to Air 
     Force Village West, Incorporated, of Riverside, California. 
     As consideration for the parcel to be conveyed, the 
     Corporation shall pay to the United States an amount equal to 
     the fair market value of the real property, as determined by 
     the Secretary. The section would also make technical 
     modifications to section 835 of the Military Construction 
     Authorization Act, 1985 (Public Law 98-407).
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Land conveyance, Hancock Field, Syracuse, New York (sec. 
         2864)
       The Senate amendment contained a provision (sec. 2821) that 
     would authorize the conveyance, without consideration, of 
     approximately 15 acres of excess real property located at 
     Hancock Field, Syracuse, New York. The provision would 
     include a reversionary clause in the event the property is 
     not used for economic redevelopment.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Land conveyance, Havre Air Force Station, Montana, and Havre 
         Training Site, Montana (sec. 2865)
       The Senate amendment contained a provision (sec. 2822) that 
     would authorize the Secretary of the Air Force to convey, 
     without consideration, two parcels of real property in the 
     amount of 94 acres comprising the former Havre Air Force 
     Station and the former Havre Training Site, Montana. The 
     purpose of the conveyance would be for housing and economic 
     development.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Charleston Family Housing Complex, Bangor, 
         Maine (sec. 2866)
       The Senate amendment contained a provision (sec. 2817) that 
     would authorize the Secretary of the Air Force to convey, 
     without consideration, to the City of Bangor, Maine, a parcel 
     of real property consisting of approximately 19 acres and 
     improvements located in Bangor, Maine and known as the 
     Charleston Family Housing Complex. The purpose of the 
     conveyance would be for economic development. The provision 
     would require the city to reimburse the United States in the 
     event the property is sold within 10 years. The reimbursement 
     would be equal to the lesser of the amount of the sale of the 
     property sold, or, the fair market value of the property sold 
     excluding the value of any improvements made by the city.
       The House bill contained no similar provision.
       The House recedes.
     Study of land exchange options, Shaw Air Force Base, South 
         Carolina (sec. 2867)
       The House bill contained a provision (sec. 2862) that would 
     amend section 2874 of the Military Construction Authorization 
     Act for Fiscal Year 1996 (division B of Public Law 104-106) 
     to require the Secretary of the Air Force to conduct a study 
     to identify real property suitable for exchange to affect the 
     land exchange at Shaw Air Force Base, South Carolina, 
     authorized pursuant to that law.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                       Subtitle E--Other Matters

     Repeal of requirement to operate Naval Academy Dairy Farm 
         (sec. 2871)
       The House bill contained a provision (sec. 2881) that would 
     repeal section 810 of the Military Construction Authorization 
     Act of 1968 (Public Law 90-110), which prohibits the 
     Department of the Navy from taking any action to close, 
     dispose, or phase out the operation of the Naval Academy 
     Dairy Farm.
       The Senate amendment contained a similar provision (sec. 
     1066).
       The Senate recedes with a clarifying amendment.
     Long-term lease of property, Naples, Italy (sec. 2872)
       The House bill contained a provision (sec. 2882) that 
     would permit the Secretary of the Navy to enter into a 
     long-term lease, not to exceed twenty years, for 
     structures and real property relating to a regional 
     hospital complex in Naples, Italy, that the Secretary 
     determines to be necessary for purposes of the Naples 
     Improvements Initiative.
       The Senate amendment contained a similar provision (sec. 
     2814).
       The Senate recedes.
     Designation of military family housing at Lackland Air Force 
         Base, Texas, in honor of Frank Tejeda, a former Member of 
         the House of Representatives (sec. 2873)
       The House bill contained a provision (sec. 2883) that would 
     authorize the Secretary of the Air Force to designate 
     military family housing developments to be constructed at 
     Lackland Air Force Base, Texas, in honor of the late Frank 
     Tejeda, a Representative in Congress from the State of Texas.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Fiber-optics based telecommunications linkage of military 
         installations (sec. 2874)
       The House bill contained a provision (sec. 1502) that would 
     require the Department of Defense to install a fiber-optics 
     based telecommunications network to link the military 
     installations in a metropolitan area.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide 
     sufficient time for the competition of such a contract and 
     would allow the Department to tailor the network to its 
     requirements. The conferees note that the Secretary could 
     build on and expand ongoing Department of the Navy 
     initiatives to meet these requirements. The conferees also 
     encourage the Secretary to have a signed contract to 
     implement this provision by December 1, 1998.

                   Legislative Provisions Not Adopted

     Modification of authority for disposal of certain real 
         property, Fort Belvoir, Virginia
       The Senate amendment contained a provision (sec. 2811) that 
     would repeal section 2821 of the Military Construction Act 
     for Fiscal Years 1990 and 1991, as amended by section 2854 of 
     the Military Construction Authorization Act for Fiscal Year 
     1996. These provisions would have authorized the conveyance 
     of the parcel of real property, including improvements 
     thereon, at Fort Belvoir, Virginia, consisting of 
     approximately 820 acres known as the Engineer Proving Ground.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees direct the Secretary of the Army to provide 
     to the Committee on Armed Services of the Senate and the 
     Committee on

[[Page H9435]]

     National Security of the House of Representatives a report on 
     the status of the conveyance and redevelopment of the 
     Engineer Proving Ground. The report shall be coordinated with 
     the appropriate officials in Fairfax County and shall be 
     submitted six months after enactment of this Act and annually 
     thereafter until the redevelopment is completed.

                   Title XXIX--Sikes Act Improvement

     Sikes Act Improvement (secs. 2901-2914)
       The House bill contained several provisions (secs. 2901-
     2914) that would amend and reauthorize the Sikes Act, which 
     was last amended in 1986, and had an authorization that 
     expired in 1993. In its current form, the Sikes Act 
     authorizes the Secretary of Defense to enter into cooperative 
     plans with the Secretary of Interior and the appropriate 
     State fish and wildlife agencies. The House provisions would 
     require the secretary of each military department to develop 
     a more comprehensive integrated natural resources plan for 
     each military installation. Each plan must be consistent with 
     the use of military lands to ensure military preparedness, 
     and cannot result in any net loss in the capability to 
     support the military mission.
       The Senate amendment (secs. 381-392) and the House bill 
     (secs. 2901-2914) contained similar provisions. However, the 
     Senate amendment (sec. 383) would require the completion of 
     integrated natural resources management plans three years 
     after the date of the initial report to Congress, rather than 
     the two years provided for in the House bill (sec. 2905). 
     There is also a difference between the House bill (sec. 2911) 
     and the Senate amendment (sec. 386) reference to the funds 
     underlying cooperative agreements. The House bill provides 
     for the use of ``funds appropriated'' and the Senate 
     amendment provides for the use of ``funds made available'' 
     for the cost of goods and services covered under cooperative 
     agreements.
       The House recedes with an amendment that would require the 
     completion of integrated natural resources management plans 
     three years following the submission of the initial report to 
     Congress. The provision would specify that goods and services 
     provided under a cooperative agreement would be paid for with 
     ``funds appropriated.'' The provision would also include 
     minor legislative drafting modifications.
       The conferees note that the reauthorization of the Sikes 
     Act would directly affect the nearly 25 million acres managed 
     by the Department of Defense. The conferees agree that 
     reauthorization of the Sikes Act is not intended to expand 
     the management authority of the U.S. Fish and Wildlife 
     Service or the State fish and wildlife agencies in relation 
     to military lands. Moreover, it is expected that integrated 
     natural resources management plans shall be prepared to 
     facilitate installation commanders' conservation and 
     rehabilitation efforts that support the use of military lands 
     for readiness and training of the armed forces.
       The conferees note that the military departments will have 
     completed approximately 60 percent of the required integrated 
     natural resources management plans by October 1, 1997. The 
     conferees understand that most of these plans have been 
     prepared consistent with the criteria established under this 
     provision. In addition, the conferees note the significant 
     investment made by the military departments in the completion 
     of current integrated natural resources management plans. The 
     conferees intend that the plans that meet the criteria 
     established under this provision should not be subject to 
     renegotiation and reaccomplishment.
       Finally, the conferees understand that approximately $5.0 
     million is programmed for the preparation of integrated 
     natural resources management plans on an annual basis. The 
     conferees have been assured by the Department of Defense that 
     the reauthorization of the Sikes Act will not result in 
     increased funds for the plans. Based on the Department's 
     assurances as to the programmed funding level, the conferees 
     expect that each of the military departments will have 
     sufficient funds in fiscal year 1998 and subsequent fiscal 
     years to complete plans by the statutory deadline.

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

      Title XXXI--Department of Energy National Security Programs

     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $13,597.6 million for the Defense Nuclear 
     Activities. The House bill would authorize $10,951.9 million. 
     The Senate amendment would authorize $11,204.4 million. The 
     conferees recommended an authorization of $11,502.8 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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                     Legislative Provisions Adopted

         Subtitle A--National Security Programs Authorizations

     Weapons activities (sec. 3101)
       The House bill contained a provision (sec. 3101) that would 
     authorize $4.0 billion for the Department of Energy (DOE) 
     weapons activities.
       The Senate amendment contained a similar provision (sec. 
     3101) that would authorize $4.0 billion for DOE weapons 
     activities.
       The Senate recedes with an amendment that would authorize 
     $4.1 billion for this account for the following activities: 
     $1.9 billion for stockpile stewardship; $2.0 billion for 
     stockpile management; and $250.0 million for program 
     direction. The authorization includes a general reduction of 
     $22.6 million. The conferees recommend a reduction of $53.5 
     million to the budget request for program direction. The 
     conferees note that recent independent assessments from the 
     Institute for Defense Analysis and the General Accounting 
     Office have identified a number of recommendations regarding 
     how best to streamline the management structure within the 
     Office of Defense Programs. The conferees believe that 
     implementing such recommendations would reduce management 
     costs and increase the effectiveness of the Department's 
     weapons programs.
       The budget request included $15.7 million for the 
     incremental component of the construction upgrades at the 
     Chemistry and Metallurgy Research Facility at Los Alamos 
     National Laboratory. Because of cost overruns and pending the 
     outcome of the Department's ongoing review into this project, 
     the conferees recommend $5.0 million for this activity. The 
     conferees adopt this position, without prejudice.
       The conferees recommend $217.0 million, the amount 
     requested, for the inertial confinement fusion operating 
     program. Within the total amount authorized for this 
     activity, the conferees recommend that $26.1 million be made 
     available for the University of Rochester's Laboratory for 
     Laser Energetics, an increase of $2.5 million.
       The conferees recommend an additional $10.0 million for a 
     surety program to improve waste minimization efforts related 
     to the Department's stockpile management program and an 
     additional $8.0 million to continue tritium facility upgrades 
     initiated in fiscal year 1997 at the Savannah River Site.
       The conferees recommend $65.3 million for technology 
     transfer and education. Of this amount, the conferees 
     recommend that $10.0 million be made available for the 
     American Textiles Partnership program.
     Environmental restoration and waste management (sec. 3102)
       The House bill contained a provision (sec. 3102) that would 
     authorize $5.3 billion for Department of Energy (DOE) 
     environmental restoration and waste management activities.
       The Senate amendment contained a similar provision (sec. 
     3102) that would authorize $5.1 billion for DOE environmental 
     restoration and waste management activities. The Senate 
     amendment authorized $274.7 million for Defense Environmental 
     Management Privatization projects in a separate provision.
       The Senate recedes with an amendment that would authorize 
     $5.5 billion for Environmental Management activities, 
     including: $1.0 billion for environmental restoration; $1.6 
     billion for waste management; $220.0 million for technology 
     development; $1.3 billion for nuclear material and facility 
     stabilization; $20.0 million for policy and management; $55.0 
     million for the Environmental Management science program; 
     $875.0 million for closure projects; $345.8 million for 
     program direction; and $224.7 million for defense 
     Environmental Management privatization. The authorization 
     includes a general reduction of $50.0 million.
       The conferees recommend an additional $10.0 million for 
     environmental restoration. Of this increase, the conferees 
     recommend an additional $5.0 million to accelerate closure of 
     the Hanford 100 Area in Richland, Washington.
       The conferees recommend an additional $35.3 million for 
     waste management. Of the funds available for waste 
     management, the conferees recommend an additional $12.0 
     million for the Savannah River site to increase production at 
     the Defense Waste Processing Facility (DWPF) and $8.2 million 
     to support high-level waste research and development work at 
     the Idaho National Engineering and Environmental Laboratory. 
     The conferees direct the Department to make available an 
     additional $25.0 million to allow the consolidated 
     incineration facility to operate at full capacity, as 
     originally intended, to assure that the DWPF operates at its 
     designed capacity, and that the site has sufficient funds to 
     accelerate the disposal of transuranic waste.
       The conferees urge the Department to assess the cost 
     savings that may be available if it is able to develop a 
     successful spent fuel or high level waste storage cask system 
     using high density concrete. Of the waste management funds 
     authorized in section 3102 of this title, no more than $3.0 
     million may be made available for this demonstration project.
       The conferees recommend an increase of $58.0 million to 
     nuclear material and facility stabilization to be allocated 
     as follows: $47.0 million for nuclear material stabilization 
     operations at the F- and H-canyon facilities and $11.0 
     million for the National Spent Fuel Program.
       The conferees recommend $220.0 million for technology 
     development, a $37.9 million reduction. This reduction 
     reflects the Department's proposed reduction to the 
     Technology Deployment Initiative and greater cost-sharing 
     with technology user organizations within the Department. The 
     conferees are supportive of the Office of Science and 
     Technology's efforts to move technologies from the late 
     stages of research and development into use. The conferees 
     believe that Environmental Management line organizations 
     should place a greater emphasis on innovative technical 
     approaches when executing records of decision, meeting tri-
     party agreement milestones, or selecting clean up and waste 
     management approaches. The Department has a poor record in 
     deploying DOE-developed cleanup and waste management 
     technologies. The conferees believe that senior management 
     attention will be required if the Department is to benefit 
     from those technologies that have already been developed by 
     the Department, but have not been applied at DOE 
     facilities.
       The conferees recommend $55.0 million for the Environmental 
     Management science program, an increase of $5.0 million.
       The conferees recommend $20.0 million for the Office of 
     Policy, a $3.1 million reduction.
       The conferees recommend $345.8 million for program 
     direction, a $42.5 million reduction.
       The conferees recommend $875.0 million for the project 
     closure account, an increase of $860.0 million. The increase 
     to this account has been derived from the following sources: 
     a transfer of $743.6 million from environmental restoration, 
     a transfer of $45.2 million from the operations and 
     maintenance account within the stockpile management program, 
     and an additional $71.2 million. The conferees recommend 
     allocating closure project account funds as follows: $648.4 
     million for the Rocky Flats Environmental Technology Site and 
     $226.6 million for the Fernald Environmental Management 
     Project. The conferees strongly support the efforts of the 
     adjacent communities to close these two sites within the next 
     ten years.
       The transfer of $45.2 million from stockpile management 
     represents the costs associated with the provision of 
     security at the Rocky Flats Site and the Fernald Site. The 
     conferees are aware that this transfer of funds will also 
     require the Office of Environmental Management to accept 
     custodial responsibility of weapons grade special nuclear 
     material, which constitutes a change in current practice.
     Other defense activities (sec. 3103)
       The budget request included $1.606 billion for Other 
     Defense Activities of the Department of Energy (DOE) for 
     fiscal year 1998.
       The House bill contained a provision (sec. 3103) that would 
     authorize $1.5 billion for Other Defense Activities, a 
     reduction of $93.4 million to the budget request.
       The Senate amendment contained a provision (sec. 3103) that 
     would authorize $1.6 billion for Other Defense Activities, an 
     increase of $28.0 million to the budget request.
       The conferees agree to a provision that would authorize 
     $1.636 billion for Other Defense Activities.
     Verification and control technology
       The conferees agree to authorize $478.2 million for 
     verification and control technology.
       The conferees are concerned by recent reports that a 
     substantial portion of the aid intended for Russian 
     scientists under the Initiatives for Proliferation Prevention 
     (IPP) program is being siphoned off by duties, regional 
     taxes, overhead charges and other assessments by Russian 
     entities. The conferees direct the Secretary of Energy to 
     report to the Congress by March 31, 1998 on the impact of 
     these charges on the program and to provide detailed 
     recommendations on how these problems can be corrected.
       To close gaps identified in DOE's nuclear smuggling 
     program, the conferees agree to provide $16.0 million for 
     nuclear smuggling activities, a $3.0 million increase, from 
     funds available in verification and control technology, to 
     enhance further and accelerate the Department's nuclear 
     forensic analytical capability. The conferees have been 
     supportive of efforts by the Department of Defense (DOD) and 
     DOE to respond to any domestic terrorist use of weapons of 
     mass destruction. From the funds authorized for verification 
     and control technology, $2.0 million is available for 
     training and related activities to prepare federal, state, 
     and local first responders to work effectively as part of the 
     domestic emergency response program. The conferees understand 
     that nuclear training curriculum for local first responders 
     has been prepared by the DOE defense programs, and that this 
     program is coordinated with the DOD, the agency responsible 
     for preparing the chemical and biological training and 
     exercise programs. In order to maximize the number of 
     participants in the exercises, and to take advantage of cost 
     savings, the conferees recommend that DOE continue to 
     coordinate the activities of its exercises with the executive 
     agent and program manager for the DOD domestic emergency 
     preparedness program in order to integrate mixed scenarios of 
     chemical, biological and nuclear incidents in the exercises.
       The Secretary of Energy was directed in the statement of 
     managers accompanying the conference report for the National 
     Defense Authorization Act for Fiscal Year 1997 (Public Law 
     102-201) to provide an annual evaluation to the Congress of 
     the expected powers and expected limits that define the 
     extent to which science and technology can aid the 
     nonproliferation effort. The conferees direct the Secretary 
     to submit the first annual report on February 1, 1998. The 
     conferees continue to believe that advances in

[[Page H9457]]

     science and technology will improve the ability to detect the 
     presence, transportation, and use of weapons of mass 
     destruction. The ability of such advanced technologies to be 
     developed and used may, however, be impeded or otherwise 
     affected by regional powers and interests. The evaluation to 
     be conducted should include an analysis of regional and local 
     situations, requirements, and power structures that can 
     either aid or deter deployment of new technology for 
     nonproliferation efforts.
     International nuclear safety
       The conferees agree to provide $47.0 million for nuclear 
     energy, including $35.0 million for international nuclear 
     safety activities.
       The conferees were recently notified that the DOE fiscal 
     year 1999 funding for these activities will not be included 
     in DOE national security programs. The conferees appreciate 
     the administration's intent to comply with congressional 
     guidance and to seek funding for these activities from 
     sources other than the defense accounts.
     Naval reactors
       The conferees recommend an increase of $44.5 million to the 
     budget request for naval reactors to expedite decommissioning 
     and decontamination activities at surplus training 
     facilities.
       The conferees consider the naval reactors program to be a 
     critical defense activity. The conferees are concerned that 
     the DOE has demonstrated a pattern of consistently 
     underestimating funding requirements for this program in 
     budget requests. The conferees strongly encourage the 
     Department to request adequate funding for this program in 
     future fiscal year budget requests to allow this program 
     to accomplish the stated objectives in an efficient 
     manner.
     Declassification productivity initiative
       The conferees continue to support the Declassification 
     Productivity Initiative. The conferees are concerned that the 
     Department of Energy lacks both the appropriate technical 
     personnel and integrating components required to carry out 
     successfully this program. Recognizing the complexities 
     surrounding the development of a computer-aided system to 
     improve the efficiency and security of the declassification 
     process, the conferees are concerned that the limited funds 
     provided to this program are being allocated among numerous 
     laboratories, universities, and industry without clear 
     technical direction or coordination by the Department. The 
     conferees direct the Director of the Office of 
     Declassification to begin to develop a management and 
     integration strategy to coordinate and streamline the various 
     initiatives carried out within the Declassification 
     Productivity Initiative. In addition, the conferees strongly 
     discourage any shifting of funds from the Declassification 
     Productivity Initiative to other declassification activities.
     Environment, safety and health
       The conferees recommend $94.0 million for environment, 
     safety and health (ES&H) activities, an increase of $40.0 
     million to the budget request. Of the amount authorized, the 
     conferees recommend $20.0 million for ES&H program direction. 
     The conferees believe that costs associated with implementing 
     and conducting oversight of the ES&H program should be 
     reflected in the same programmatic activity.
     Independent cost assessment
       The conferees recommend $15.0 million to be used by the 
     Department of Energy to provide for external reviews of the 
     Department's individual construction and privatization 
     projects. The conferees direct the Secretary of Energy to 
     provide the congressional defense committees with all reports 
     generated in the process of conducting this assessment, and 
     to consult with the committees regarding all aspects of this 
     review, including contractor selection.

                Subtitle B--Recurring General Provisions

     Limits on general plant projects (sec. 3122)
       The House bill contained a provision (sec. 3122) that would 
     authorize the Secretary of Energy to carry out any 
     construction project authorized under general plant projects 
     if the total estimated cost would not exceed $2.0 million. 
     The provision would require the Secretary to submit a report 
     to Congress if the cost of the project is revised to exceed 
     $2.0 million. The report would fully explain the reasons for 
     the cost variation.
       The Senate amendment contained a similar provision (sec. 
     3122) that would authorize a construction project as a 
     general plant project if the current estimated cost for that 
     project would exceed $5.0 million. If the Secretary of Energy 
     determines that the estimated cost of any project will exceed 
     $5.0 million, the congressional defense committees must be 
     notified of the reasons for the cost variation.
       The House recedes.
       The conferees note that the report required by section 3122 
     of the National Defense Authorization Act for Fiscal Year 
     1997 (Public Law 104-201) to support increasing the threshold 
     for general plant projects was submitted late. The conferees 
     urge the Department to submit reports on or before the 
     required due dates in the future.
     Fund transfer authority (sec. 3124)
       The House bill contained a provision (sec. 3124) that would 
     permit funds authorized by the bill to be transferred to 
     other agencies of the government for performance of work for 
     which the funds were authorized and appropriated. The 
     provision would permit the merger of such funds with the 
     authorizations of the agency to which they are transferred. 
     This provision would also limit, to no more than five 
     percent, the amount of such funds that may be transferred 
     between authorization accounts in the Department of Energy 
     that were authorized pursuant to this act.
       The Senate amendment contained a similar provision (sec. 
     3124).
       The Senate recedes with a clarifying amendment.
     Authority for conceptual and construction design (sec. 3125)
       The House bill contained a provision (sec. 3125) that would 
     limit the Secretary of Energy's authority to request 
     construction funding until the Secretary certifies that a 
     conceptual design has been completed, except in the case of 
     emergencies. This limitation would apply to construction 
     projects with a total estimated cost in excess of $2.0 
     million. If the estimated cost of the design exceeds $3.0 
     million, the provision would require the Secretary to request 
     funds for the design before requesting funds for the 
     construction project. The provision would also require the 
     Secretary to submit to Congress a report on each conceptual 
     design completed under this paragraph.
       The Senate amendment contained a similar provision (sec. 
     3125) that would apply to construction projects with a total 
     estimated cost in excess of $5.0 million.
       The Senate recedes with an amendment that would limit the 
     Secretary's authority to request construction funding for 
     projects with an estimated cost in excess of $5.0 million 
     until the Secretary has certified a conceptual design has 
     been completed, except in emergencies.
     Availability of funds (sec. 3128)
       The Senate amendment contained a provision (sec. 3128) that 
     would authorize amounts appropriated for operating expenses 
     or for plant and capital equipment to remain available until 
     expended.
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct that 
     funds authorized to be appropriated for program direction 
     activities in fiscal year 1998 would be available to be 
     expended until the end of fiscal year 2000.
     Transfers of defense environmental management funds (sec. 
         3129)
       The House bill contained a provision (sec. 3128) that would 
     provide the manager of each field office of the Department of 
     Energy (DOE) with the limited authority to transfer fiscal 
     year 1998 defense environmental management funds from one 
     program or project under the jurisdiction of the office to 
     another such program or project, once in the fiscal year.
       The Senate amendment contained a similar provision (sec. 
     3137) that would extend and make permanent the limited 
     authority to transfer defense environmental management funds 
     originally authorized in section 3139 of the National Defense 
     Authorization Act for Fiscal Year 1997.
       The Senate recedes with a clarifying amendment.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

     Memorandum of understanding for use of national laboratories 
         for Ballistic Missile Defenses programs (sec. 3131)
       The House bill contained a provision (sec. 3131) that would 
     establish a program within the Department of Energy weapons 
     laboratories for the purpose of assisting the Department of 
     Defense in the testing and development of a ballistic missile 
     defense program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of Energy and the Secretary of Defense to enter 
     into a memorandum of understanding as to how the Department 
     of Energy national laboratories could be utilized more fully 
     to support the ballistic missile defense program.
     Defense environmental management privatization projects (sec. 
         3132)
       The Senate amendment contained a provision (sec. 3131) that 
     would establish criteria for the initiation of Department of 
     Energy Defense Environmental Management Privatization 
     contracts.
       The provision would prohibit the Department from incurring 
     any contractual obligations for a privatization contract 
     until 30 days after the date on which the Department submits 
     to the congressional defense committees a report on that 
     privatization project that describes the Department's 
     anticipated contractual commitments for such project, the 
     cost of the proposed project versus the baseline cost, any 
     assumptions underlying cost savings estimates, and a 
     discussion of the Department's plans to maintain financial 
     and programmatic accountability under such contracts.
       The provision would direct the Department to report on the 
     Secretary's ability to enter into privatization contracts in 
     the absence of sufficient appropriations to meet obligations 
     under such contracts.
       The House bill contained a provision (sec. 3145) that would 
     place similar restrictions on the tank waste remediation 
     system project.
       The House recedes with an amendment that would provide the 
     Secretary discretionary authority to use a privatization 
     contract to carry out a project for which funds are 
     authorized pursuant to section 3102 of this Act. The 
     provision would also require

[[Page H9458]]

     the Department of Energy to provide a detailed justification 
     and analysis of the comparative costs to the United States of 
     constructing two nuclear waste vitrification plants under the 
     tank waste remediation system project, should the Secretary 
     of Energy choose to do so.
       The conferees direct the Secretary of Energy to examine and 
     report to the congressional defense committees on the 
     Department's authority to create an escrow account to offset 
     any reasonably foreseeable costs to the government that may 
     arise if any privatization contracts are canceled or 
     terminated for the convenience of the government. The report 
     should also recommend any legislation needed to eliminate any 
     potential conflicts arising from the anti-deficiency 
     provisions found in section 3191 of title 31, United States 
     Code.
     International cooperative stockpile stewardship programs 
         (sec. 3133)
       The Senate amendment contained a provision (sec. 3132) that 
     would prohibit the Department of Energy (DOE) from pursuing 
     cooperative stockpile stewardship and management activities 
     with certain nations.
       The House bill contained no similar provision.
       The House recedes.
       The conferees remain concerned that initiation of an 
     ongoing international cooperative stockpile stewardship and 
     management program could have unintended detrimental effects 
     on U.S. national security interests. This provision would 
     extend for one year the prohibition established by section 
     3138 of the National Defense Authorization Act for Fiscal 
     Year 1997. The intent of this provision is to prohibit 
     establishment of a permanent program of international 
     cooperative stockpile stewardship, with an exception for 
     activities that might be undertaken with the United Kingdom 
     and France. The provision would not apply to activities 
     carried out by DOE under cooperative threat reduction 
     programs with nations of the former Soviet Union, or to the 
     Department of Energy materials protection, control, and 
     accounting or the initiatives for proliferation prevention 
     programs. The prohibition would apply to all other DOE 
     activities, including but not limited to laboratory directed 
     research and development funds.
       The conferees do not intend this prohibition to prevent the 
     President's ability to respond to developments which might 
     threaten the national security of the United States. The 
     conferees believe that the President has sufficient 
     flexibility to address such specific incidents should they 
     arise and the provision would not prohibit such action.
     Modernization of enduring nuclear weapons complex (sec. 3134)
       The House bill contained a provision (sec. 3101) that would 
     provide an increase of $85.0 million for the Department of 
     Energy's (DOE) stockpile management program to be used for 
     weapons production plants infrastructure upgrades and the 
     Stockpile Life Extension, Enhanced Surveillance, and Advanced 
     Development Programs carried out at DOE production plants.
       The Senate amendment contained a provision (sec. 3133) that 
     would provide an additional $15.0 million to support 
     modernization efforts being carried out at the Department of 
     Energy's four nuclear weapons production plants (Pantex, 
     Kansas City, Y-12, and Savannah River). The provision would 
     require the Department to submit, not later than 30 days 
     after enactment of this provision, a report describing the 
     Department's plans to allocate the funds authorized by this 
     section and the relevance of each allocation to implementing 
     the decisions in the Final Programmatic Environmental Impact 
     Statement for Stockpile Stewardship and Management. The funds 
     authorized for this activity could not be obligated until 30 
     days after the congressional defense committees receive the 
     Department's proposed allocation report as required by this 
     provision.
       The House recedes with an amendment that would increase 
     funding for the stockpile management account to provide an 
     additional $85.0 million for these activities.
       The conferees direct that the funds be allocated as 
     follows: $25.0 million for the Pantex Plant for basic 
     infrastructure needs including roof repair, electric power 
     service upgrades, steam and condensate piping upgrades, fire 
     enunciation systems, and Enhanced Surveillance Program 
     activities; $25.0 million for the Kansas City Plant for basic 
     infrastructure needs including roof repair, installation of 
     advanced manufacturing equipment, and Advanced Manufacturing 
     Program activities; and $35.0 million for the Y-12 plant for 
     basic infrastructure needs, W-87 work load requirements, 
     Advanced Manufacturing Program activities, and Stockpile Life 
     Extension Program activities. Of the amounts made available 
     by this provision, not more than five percent shall be 
     allocated collectively to management overhead, program 
     direction, and technical budgetary, accounting, and other 
     analytical support to the DOE. The remainder shall be 
     expended by the four production plants exclusively for the 
     programs described.
       The conferees concur with the Department's goal to 
     implement advanced manufacturing technology at DOE plants and 
     laboratories to improve production efficiencies and maintain 
     core competencies within the DOE nuclear weapons production 
     complex. The conferees understand that such modernization 
     upgrades will require coordination among the four production 
     plants and the three design laboratories.
       The conferees remain concerned with the Department's plans 
     to maintain the capability and capacity to refurbish and, 
     when necessary, remanufacture nuclear weapons components in 
     the Nation's nuclear weapons stockpile. The committee is 
     concerned that the Department may be overly relying on new, 
     ``science-based'' stockpile stewardship and management 
     approaches at the risk of losing manufacturing capabilities 
     and expertise.
       The conferees are deeply troubled that the Department has 
     failed to meet fully the intent of section 3137 of the 
     National Defense Authorization Act for Fiscal Year 1996 and 
     section 3132 of the National Defense Authorization Act for 
     Fiscal Year 1997 calling for modernization of the four 
     nuclear weapons production plants.
       The conferees believe that the Department did not fully 
     meet the requirements or intent of these sections and related 
     guidance provided in conference reports accompanying these 
     Acts and the 1996 and 1997 Energy and Water Development 
     Appropriations Acts. The conferees note that the General 
     Accounting Office has identified certain Nuclear Weapons 
     Stockpile Memorandum requirements that may not be met by the 
     Department due to insufficient resources being allocated to 
     the four traditional production plants. The conferees believe 
     that the manufacturing facilities must be modernized as 
     directed in the National Defense Authorization Act for Fiscal 
     Year 1996 and the National Defense Authorization Act for 
     Fiscal Year 1997, or these problems will continue.
     Tritium production (sec. 3135)
       The Senate amendment contained a provision (sec. 3134) that 
     would make available $262.0 million for the Department of 
     Energy (DOE) tritium production program. The provision would 
     require DOE to select a tritium production technology not 
     later than June 30, 1998. The provision would also prohibit 
     the Department from obligating funds appropriated or 
     otherwise made available pursuant to this Act for exploration 
     of any tritium production technology option, other than those 
     being examined under the Department's ``dual track'' 
     approach, until July 30, 1998, or 30 days after such time 
     that the Department selects a preferred technology option, 
     whichever comes later. The provision would also require the 
     Secretary of Energy to submit a report describing for each 
     technology option any regulatory barriers, licensing 
     difficulties, potential for production rate variability, 
     scientific benefits, revenue generation and other ancillary 
     benefits.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Department of Energy to select a tritium production 
     technology not later than December 31, 1998.
       The conferees continue to believe that the Department can 
     move faster to select a preferred technology option and 
     acquire a permanent new tritium production source capable of 
     meeting the requirements of the Nuclear Weapons Stockpile 
     Memorandum, which identifies a new tritium production date in 
     the year 2005 in the case a reactor option is selected and 
     2007 if an accelerator option is selected. While the 
     conferees recognize that future tritium requirements could 
     change if the United States enters into treaties that reduce 
     the numbers of strategic and tactical nuclear weapons, the 
     production capacity that the United States will need to 
     maintain at START I and START II levels will remain 
     essentially constant.
     Processing, treatment, and disposition of spent nuclear fuel 
         rods and other legacy nuclear materials at the Savannah 
         River Site (sec. 3136)
       The Senate amendment contained a provision (sec. 3135) that 
     would make available an additional $47.0 million above the 
     budget request for the F-canyon and H-canyon facilities to 
     accelerate the stabilization of legacy materials at the 
     Savannah River Site. The provision would further require that 
     the Secretary of Energy maintain a high state of readiness of 
     the F-canyon and H-canyon facilities.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that the House bill recommended $41.0 
     million for similar activities.
     Limitations on use of funds for laboratory directed research 
         and development purposes (sec. 3137)
       The Senate amendment contained a provision (sec. 3136) that 
     would modify section 3136 of the National Defense 
     Authorization Act for Fiscal Year 1997 by requiring the 
     annual report on uses of Laboratory Directed Research and 
     Development (LDRD) funds be provided to the congressional 
     defense committees not later than February 1 of each year. 
     The provision would also prohibit the Department of Energy 
     (DOE) from obligating more than 30 percent of the funds 
     appropriated or otherwise made available to the DOE in fiscal 
     year 1998 for LDRD programs until the Department submits the 
     annual report for fiscal year 1997.
       The provision would limit the use of funds appropriated or 
     otherwise made available to the DOE under section 3101 of 
     this Act to LDRD and technology transfer activities that 
     support the weapons activities of the Department. The 
     provision would similarly limit use of funds appropriated or 
     otherwise made available to the DOE under section 3102 of 
     this Act to those activities that support

[[Page H9459]]

     the environmental restoration, waste management, or materials 
     stabilization activities of the Department.
       The provision would require the Department to include in 
     the fiscal year 1998 annual report an assessment of the 
     funding required to carry out an effective LDRD program, 
     including any recommendations for the percentage of funds 
     that should be provided to the National Laboratories for LDRD 
     activities by the Federal Government.
       The House bill contained no similar provision.
       The House recedes.
       The conferees recognize that programs such as LDRD are 
     essential to maintaining the core competencies of the 
     National Laboratories. The conferees will assess the 
     Department's recommendations regarding the appropriate 
     percentage of funds to be provided to this program in 
     conjunction with any existing or future restrictions that 
     might be considered for this program.
     Pilot program relating to use of proceeds of disposal or 
         utilization of certain Department of Energy assets (sec. 
         3138)
       The Senate amendment contained a provision (sec. 3140) that 
     would permit the Secretary of Energy to establish a pilot 
     program to promote the sale of certain real and personal 
     property surplus to the needs of the Federal government 
     and allow the Department of Energy (DOE) to retain in the 
     DOE defense Environmental Restoration and Waste Management 
     accounts 50 percent of the net proceeds from such sales. 
     The retained funds would be available for use, subject to 
     appropriation acts, in the Environmental Restoration and 
     Waste Management programs. The provision would authorize 
     the Department to initiate six asset disposition pilots 
     and would permit the Department to deduct costs associated 
     with preparing the asset for sale prior to calculating the 
     net proceeds from the sale.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make clear 
     that all net proceeds from sales under the pilot program 
     would not be retained by the Department of Energy, but 
     instead would be returned to the Treasury as miscellaneous 
     receipts.
     Modification and extension of authority relating to 
         appointment of certain scientific, engineering, and 
         technical personnel (sec. 3139)
       The House bill contained a provision (sec. 3144) that would 
     extend through fiscal year 1999 the authority of the 
     Secretary of Energy to appoint certain scientific, 
     engineering, and technical personnel to positions within the 
     Department without regard to the provisions governing the 
     appointments in the competitive service, and General Schedule 
     classification schedules and pay rates contained in title 5, 
     United States Code.
       The Senate amendment contained a similar provision (sec. 
     3152) that would also repeal the requirement for the 
     Administrator of the Environmental Protection Agency to 
     submit a report to Congress on the effects of this hiring 
     authority on the cleanup carried out at sites listed on the 
     National Priorities List (also known as ``Superfund'' sites).
       The House recedes.
     Limitation on use of funds for subcritical nuclear weapons 
         tests (sec. 3140)
       The House bill contained a provision (sec. 3146) that would 
     require the submission of a detailed report on the manner in 
     which funds available to the Secretary of Energy for fiscal 
     years 1996 and 1997 to conduct subcritical experiments were 
     used. The provision would prohibit the Secretary from using 
     any funds authorized in fiscal year 1998 to conduct 
     subcritical experiments until 30 days after receipt of such 
     report.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would allow the 
     Secretary to conduct subcritical experiments prior to 
     submittal of the report, if the Secretary determines that it 
     is in the national security interests of the United States to 
     do so. While the conferees strongly support these tests, they 
     are concerned that over $100.0 million has apparently been 
     spent with only two tests completed.
     Limitation on use of certain funds until future use plans are 
         submitted (sec. 3141)
       The House bill contained a provision (sec. 3147) that would 
     limit the ability of the Secretary of Energy to spend funds 
     authorized for the Office of Policy and Management within the 
     defense environmental management program until the draft 
     future use plans and the final future use plans required 
     under section 3153(f) of the National Defense Authorization 
     Act for Fiscal Year 1997 (Public Law 104-201) are submitted.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would allow the 
     Secretary to identify an alternative date for individual site 
     plans if the Secretary finds that a site cannot meet the 
     current due date of March 15, 1998 for submittal of its final 
     future use plan.

                       Subtitle D--Other Matters

     Plan for stewardship, management, and certification of 
         warheads in the nuclear weapons stockpile (sec. 3151)
       The House bill contained a provision (sec. 3141) that would 
     require the Secretary of Energy to report annually on the 
     Department of Energy (DOE) plan for the Stockpile Stewardship 
     and Management Program. The report would describe the status 
     and condition of the U.S. nuclear weapons stockpile, based on 
     the requirements set forth in the Nuclear Weapons Stockpile 
     Memorandum. This report would be submitted in both a 
     classified and unclassified form and would be provided in 
     lieu of a number of other reporting requirements which have 
     been superseded and would be repealed by this section.
       The Senate amendment contained a similar provision (sec. 
     3153).
       The Senate recedes with an amendment that would consolidate 
     the repeal of obsolete reporting requirements in a separate 
     section in Title XXXI of this Act.
     Repeal of obsolete reporting requirements (sec. 3152)
       The House bill contained a provision (sec. 3142) that would 
     repeal a number of obsolete reporting requirements.
       The Senate amendment contained a similar provision (sec. 
     3155).
       The House recedes.
     Study and funding relating to implementation of workforce 
         restructuring plans (sec. 3153)
       The House bill contained a provision (sec. 3143) that would 
     modify and repeal selected provisions of section 3161 of the 
     National Defense Authorization Act for Fiscal Year 1993 
     (Public Law 102-484). The provision would eliminate the 
     authority of the Department of Energy (DOE) to make 
     assistance grants without approval by the Secretary of 
     Commerce and the Secretary of Labor, as appropriate; reduce 
     from 120 days, to 90 days the applicable notice periods 
     provided to employees to be separated; allow DOE to fund the 
     program from available unobligated balances; and require a 
     study by an outside auditor to assess the costs and 
     benefits provided by this program since its inception.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would change the 
     date of the required report from January 1, 1998 to March 31, 
     1998; restore the direction in current law for a 120-day 
     waiting period prior to implementation of a separation plan; 
     modify the requirement for the Secretaries of Commerce and 
     Labor to approve grants; and eliminate the use of uncosted 
     balances to offset the fiscal year 1998 budget for worker 
     transition activities.
       The conferees note that the direction found in section 3161 
     of the National Defense Authorization Act for Fiscal Year 
     1993 (Public Law 102-484) to give contract employees at DOE 
     sites a 120-day waiting period prior to separations of large 
     numbers of employees is a target only. The conferees further 
     note current law mandates only a 60-day waiting period prior 
     to large separations. The conferees encourage the Secretary 
     of Energy and the Secretary of Defense to identify and seek 
     to make available to the auditing firm conducting the study 
     any relevant documents in the possession of other federal 
     agencies. In encouraging access to all relevant documents, 
     the conferees do not anticipate any document that could 
     interfere with or jeopardize any ongoing investigation of the 
     DOE Office of Inspector General or other federal agencies 
     would be made available.
     Plan for external oversight of national laboratories (sec. 
         3154)
       The House bill contained a provision (sec. 3148) that would 
     require the Secretary of Energy to develop a plan for the 
     external oversight of the national laboratories. The plan 
     would provide for the establishment of an external oversight 
     committee comprised of representatives of industry and 
     academia for the purpose of making recommendations to the 
     Secretary of Energy and to the congressional defense 
     committees on the productivity of the laboratories and on the 
     excellence, relevance, and appropriateness of the research 
     conducted at the laboratories. The plan also would provide 
     for the establishment of a competitive peer review process 
     for funding basic research at the laboratories.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to prepare a report on existing and potential new 
     external oversight practices at the national laboratories. 
     The report would be due not later than July 1, 1999, and 
     would include any recommendations from the Secretary and a 
     plan to implement such recommendations.
     University-based research collaboration program (sec. 3155)
       The House bill contained a provision (sec. 3149) that would 
     require the Secretary of Energy to establish a university-
     based research center to coordinate the collaboration among 
     national laboratories, universities and industry in support 
     of scientific and engineering advancement in key Department 
     of Energy defense program areas.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to establish a university-based collaborative 
     program to coordinate national laboratory, university, and 
     industry cooperation in support of scientific and engineering 
     advancement in key Department of Energy defense program 
     areas.
     Stockpile stewardship program (sec. 3156)
       The House bill contained a provision (sec. 3150) that would 
     provide that, as a matter of U.S. policy, the Department of 
     Energy stockpile stewardship program shall be conducted in 
     conformity with the Non-Proliferation

[[Page H9460]]

     Treaty and the Comprehensive Test Ban Treaty, if and when 
     that treaty enters into force. The provision would also state 
     that it is the policy of the United States to conduct a 
     stockpile stewardship and management program to ensure the 
     safety, security, effectiveness, and reliability of the U.S. 
     nuclear weapons stockpile, consistent with U.S. national 
     security requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Reports on advanced supercomputer sales to certain foreign 
         nations (sec. 3157)
       The House bill contained a provision (sec. 3151) that would 
     require companies that participate in the Department of 
     Energy Accelerated Strategic Computing Initiative (ACSI) 
     program to report to the Secretary of Energy and the 
     Secretary of Defense, on a quarterly basis, the sale of each 
     computer that exceeds an operating speed of 2,000 million 
     theoretical operations per seconds (MTOPs) in which a Tier 
     III country is the purchaser. The provision would require the 
     Secretary of Energy to provide an annual report to Congress 
     on the sales of computers in excess of 2,000 MTOPs by 
     companies participating in the ACSI program the preceding 
     year.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Transfers of real property at certain Department of Energy 
         facilities (sec. 3158)
       The House bill contained a provision (sec. 3152) that would 
     direct the Secretary of Energy to issue guidelines for the 
     sale or lease of real or personal property at Department of 
     Energy (DOE) defense nuclear facilities. The provision would 
     also provide the Secretary discretionary authority to grant 
     indemnification for damage to real or personal property from 
     certain activities by DOE on the land to be transferred.
       The Senate contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary to issue regulations governing the sale or transfer 
     of land at DOE defense nuclear facilities that is excess to 
     DOE needs. The regulations should address when it is 
     appropriate for the Department to transfer or lease real 
     property below fair market value or at fair market value. The 
     DOE should look for guidance from the regulations issued 
     by the Department of Defense governing transfers at 
     closing military bases.
       Such leases and transfers would take place to enhance 
     economic redevelopment and reuse activities in the local 
     communities surrounding DOE defense facilities. As the DOE 
     downsizes and closes facilities, many of the local 
     communities in the vicinity of a DOE facility will need 
     assistance to transition away from a local economy focused 
     largely on DOE activities, to one based on private sector or 
     other, non-DOE, federal activities.
       The amendment would also provide discretionary authority to 
     the Secretary to indemnify transferees of real property at 
     DOE defense nuclear facilities. This provision would 
     establish procedures that are similar to authorities provided 
     to the Secretary of Defense at closing military bases by 
     section 330 of the National Defense Authorization Act for 
     Fiscal Year 1993. The conferees urge the Secretary to 
     exercise the discretionary authority provided under this 
     title only when it is deemed essential for the purposes of 
     facilitating local reuse or redevelopment.
     Requirement to delegate certain authorities to site manager 
         of Hanford Reservation (sec. 3159)
       The House bill contained a provision (sec. 3153) that would 
     modify section 3173(b) of the National Defense Authorization 
     Act for Fiscal Year 1997 by making delegation of authority to 
     the manager of the Hanford Reservation in Richland, 
     Washington, described in that section, mandatory rather than 
     discretionary.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     mandatory transfer of authority to a period of one year.
     Submittal of biennial waste management reports (sec. 3160)
       The Senate amendment contained a provision (sec. 3154) that 
     would amend section 3153 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 104-360) 
     by changing the future date for the next biennial Baseline 
     Environmental Management Report to 1999, rather than 1997.
       The House bill contained no similar provision.
       The House recedes.
     Board on security functions of Department of Energy (sec. 
         3161)
       The Senate amendment contained a provision (sec. 3156) that 
     would establish a commission to review the sufficiency of 
     Department of Energy (DOE) nuclear weapons and materials 
     safeguards and security programs. This commission would 
     review threat determinations and assumptions, relevant DOE 
     orders, and other requirements governing safeguards and 
     security of nuclear weapons, weapons components, nuclear 
     materials, and sensitive nuclear weapons information at DOE 
     facilities. The commission would report its findings and any 
     recommendations to the Secretary of Energy and congressional 
     defense committees not later than February 15, 1998.
       The House bill contained no similar provision.
       The House recedes with an amendment that would create a 
     permanent Department of Energy Safeguards and Security 
     Oversight Board to review and assess the DOE safeguards and 
     security program. The Board would be comprised of the DOE 
     Secretary, Assistant Secretary for Defense Programs, 
     Assistant Secretary of Environment, Safety and Health, 
     Director of Non-proliferation and National Security, Director 
     of Field Management, and five additional members, who are not 
     employees of the Department of Energy or its contractors, to 
     be appointed as follows: three by the Secretary of Defense, 
     one by the Director of Central Intelligence, and one by the 
     Director of the Federal Bureau of Investigation.
     Submittal of annual report on status of security functions at 
         nuclear weapons facilities (sec. 3162)
       The Senate amendment contained a provision (sec. 3156) that 
     would establish a commission to review the sufficiency of 
     Department of Energy nuclear weapons and materials safeguards 
     and security programs. The provision would require the 
     commission to report annually to the Congress on its 
     activities and findings.
       The House bill contained no similar provision.
       The conferees agree to include a new provision that would 
     direct the Secretary of Energy to submit to the congressional 
     defense committees the annual report to the President on the 
     Status of Safeguards and Security of Domestic Nuclear Weapons 
     Facilities. For fiscal years 1998 through 2000, the Secretary 
     would include with the annual report any comments from 
     individual members of the Department of Energy Safeguards and 
     Security Oversight Board.
     Modification of authority on commission on maintaining United 
         States nuclear weapons expertise (sec. 3163)
       The Senate amendment contained a provision (sec. 3157) that 
     would extend by one year the due date for the report to be 
     prepared by the Commission on Maintaining United States 
     Nuclear Weapons Expertise. The provision would amend section 
     3162 of the National Defense Authorization Act for Fiscal 
     Year 1997, which established the Commission. The provision 
     would permit the Senate Majority Leader to designate a 
     chairman of the Commission, after consultation with the 
     Speaker of the House of Representatives, upon appointment of 
     the fifth member of the Commission. The provision would allow 
     the Commission to begin its work when a chairman is 
     appointed. The provision would also extend the due date for 
     the Commission's report from March 15, 1998 to March 15, 
     1999.
       The House bill contained no similar provision.
       The House recedes with an amendment that would permit the 
     Majority Leader of the Senate to appoint a chairman after 
     January 1, 1998.
     Land transfer, Bandelier National Monument (sec. 3164)
       The Senate amendment contained a provision (sec. 3158) that 
     would direct the Secretary of Energy to transfer ownership of 
     approximately 4.5 acres of land at the Department of Energy's 
     Los Alamos National Laboratory site in Los Alamos County, New 
     Mexico, to the Department of the Interior.
       The House bill contained no similar provision.
       The House recedes.
       The Department of the Interior constructed and manages 
     sewage lagoons on this parcel of land. The transfer would 
     allow the Department of the Interior to manage the lagoons in 
     a more efficient manner.
     Final settlement of Department of Energy community assistance 
         obligations with respect to Los Alamos National 
         Laboratory, New Mexico (sec. 3165)
       The Senate amendment contained a provision (sec. 3160) that 
     would require the Department of Energy (DOE) to identify and 
     transfer to the County of Los Alamos and the Secretary of the 
     Interior, in trust for the Pueblo San Ildefonso, those lands 
     that are part of the Los Alamos National Laboratory that are 
     surplus to the needs of the Federal government. The provision 
     establishes time deadlines for DOE to identify and report to 
     Congress on the recommended parcels of land to be 
     transferred, to conduct title searches on the parcels, to 
     complete environmental impact assessments, and to transfer 
     title or administrative control of the land. The provision 
     would prohibit the Department from making any further 
     assistance payments under sections 91 and 94 of the Atomic 
     Energy Community Act of 1955 to county or city governments in 
     the vicinity of the Los Alamos National Laboratory.
       The House bill contained no similar provision.
       The House recedes with clarifying amendments.
     Sense of Congress regarding the Y-12 Plant in Oak Ridge, 
         Tennessee (sec. 3166)
       The Senate amendment contained a provision (sec. 3161) that 
     would designate the Department of Energy Y-12 plant in Oak 
     Ridge, Tennessee as the National Prototype Center.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express a 
     sense of Congress that the Y-12 plant should serve as a 
     national prototype center.

[[Page H9461]]

     Support for public education in the vicinity of Los Alamos 
         National Laboratory, New Mexico (sec. 3167)
       The Senate amendment contained a provision (sec. 3162) that 
     would authorize the Department of Energy (DOE) to make a $5.0 
     million payment to a not-for-profit education foundation in 
     the area around the Los Alamos National Laboratory to enrich 
     educational activities of the local school system. DOE 
     contributions to this foundation would be used to establish a 
     fund, the corpus of which would remain in trust and the 
     annual revenue used to support the local school system.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     DOE to report on how such payments would be terminated not 
     later than September 2002 and how such payments will satisfy 
     the Department's full obligation to provide education 
     assistance to the local school system.
       The conferees expect that the Secretary of Energy will make 
     no more than five total annual payments to this fund for a 
     total contribution of $25.0 million. The conferees further 
     expect that upon completion of the final payment, all such 
     DOE assistance to the local school system will have been 
     provided.
     Improvements to Greenville Road, Livermore, California (sec. 
         3168)
       The Senate amendment contained a provision (sec. 3163) that 
     would authorize the Department of Energy to pay $3.5 million 
     and $3.8 million in fiscal years 1998 and 1999, respectively, 
     for improvements to Greenville Road, a road which abuts the 
     Lawrence Livermore National Laboratory in Livermore, 
     California.
       The House bill contained no similar provision.
       The House recedes with an amendment that would decrease the 
     payment authorized to be made in fiscal year 1999 from $3.8 
     million to $3.3 million, consistent with the Department's 
     request.
       The conferees agree with the Department's proposal to 
     collect these funds from indirect charges at the two 
     laboratories located at the Livermore Site, Lawrence 
     Livermore National Laboratory and Sandia National Laboratory-
     Livermore. These payments will constitute the final 
     contribution from the Department of Energy to this project.
     Report on alternative system for availability of funds (sec. 
         3169)
       The Senate amendment contained a provision (sec. 3128) that 
     would authorize amounts appropriated for operating expenses 
     or for plant and capital equipment to remain available until 
     expended.
       The House bill contained no similar provision.
       The conferees agree to include a new provision that would 
     direct the Secretary of Energy to submit to the congressional 
     defense committees a report setting forth a proposal to bring 
     the Department of Energy (DOE) more closely into line with 
     other federal agencies. In preparing the report, the 
     Secretary is instructed to look carefully at all of the DOE 
     national security program funds and determine the length of 
     time, by account, the funds should be available for 
     obligation. The conferees expect the plan would be 
     incorporated into the President's budget request for fiscal 
     year 2000.
     Report on remediation under the Formerly Utilized Sites 
         Remedial Action Program (sec. 3170)
       The Senate amendment contained a provision (sec. 3138) that 
     would require the Secretary of Energy to prepare a report on 
     the progress, costs, and liability issues associated with 
     remediation activities carried out pursuant to the Formerly 
     Utilized Sites Remedial Action Program. The report would be 
     due not later than March 1, 1998.
       The House bill contained no similar provision.
       The House recedes.


                   legislative provisions not adopted

     Report on proposed contract for Hanford tank waste 
         vitrification project
       The House bill contained a provision (sec. 3145) that would 
     require prior notice to the congressional defense committees 
     before entering into a contract for the Hanford tank waste 
     vitrification project. The provision would also require the 
     submission of a detailed report describing the activities to 
     be carried out under the contract, the contractual and 
     financial aspects of the contract, and an analysis of the 
     cost to the United States of the proposed contract over the 
     life of the project.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees agree to include the substance of this 
     provision in another section in Title XXXI of this Act 
     dealing with defense environmental management privatization 
     projects.
     Defense environmental management privatization
       The Senate amendment contained a provision (sec. 3104) that 
     would authorize $274.0 million for the Defense Environmental 
     Management Privatization program.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize funding for these projects 
     in section 3102 of this Act.
     Tritium production in commercial facilities
       The Senate amendment contained a provision (sec. 3139) that 
     would amend section 91 of the Atomic Energy Act (AEA) to 
     authorize the Secretary of Energy to produce tritium for 
     defense-related purposes in a commercial nuclear power 
     reactor.
       The House bill contained no similar provision.
       The Senate recedes.
       Tritium gas, an isotope of hydrogen, is an essential 
     ingredient in all modern nuclear weapons. Tritium has a 
     radioactive half life of 12.3 years, and decays at a rate of 
     five percent per year. As a result, the tritium in weapons in 
     the U.S. nuclear weapons stockpile must be replaced 
     periodically. Based on current projections of the size of the 
     U.S. nuclear weapons stockpile, recycling tritium from 
     weapons eliminated from the stockpile cannot fulfill this 
     requirement.
       In December 1995, the Department of Energy announced its 
     dual-track strategy for new tritium production. Utilizing the 
     dual-track strategy since that time, the Department has been 
     pursuing the two most promising tritium production 
     technologies: (1) the purchase of an operating or partially 
     complete commercial light-water reactor, or lease of a 
     completed reactor, or the purchase of irradiation services 
     from the owner or operator of such a reactor; and (2) the 
     design, construction, and testing of critical components of a 
     proton accelerator system for the production of tritium. The 
     dual-track strategy will enable the Department to select a 
     primary option for tritium production by December 1998, 
     consistent with current Department of Defense and nuclear 
     weapons stockpile requirements, policy, and life-cycle cost 
     budgetary considerations. The option not selected would serve 
     as a backup capability in the event of technical or other 
     difficulties.
       Over the last 19 months, DOE has gained increased 
     confidence in the abilities of both options to produce an 
     assured supply of tritium.
       The accelerator program has made significant advances 
     through the use of superconducting and other design concepts 
     to reduce the cost and technical risks that have been 
     identified in conjunction with the accelerator. The 
     commercial light water reactor program has also made 
     significant progress in designing and producing tritium 
     target rods. In the fall of 1997, DOE will place these 
     tritium target rods in a commercial reactor in an effort to 
     demonstrate the safety and reliability of tritium production 
     in a light water reactor.
       Each track has additional uncertainties that must be 
     addressed and answered to enable the Department to make its 
     primary tritium production decision by December 1998.
       The conferees agreed to withdraw the proposed amendment to 
     the AEA in order to allow a full and robust debate on the 
     policy and legal implications of producing tritium for 
     nuclear weapons in a commercial nuclear facility. While 
     questions exist as to whether or not current law prohibits 
     production of tritium in a commercial facility, and because 
     concerns have been raised regarding the effect that a 
     decision to produce tritium in this manner would have on U.S. 
     non-proliferation strategy, the conferees believe the policy, 
     legal, and regulatory issues that have been raised must be 
     addressed in a comprehensive manner prior to passage of any 
     amendments to facilitate such a choice.
       The commercial reactor track contains many sub-options for 
     tritium production. As a practical matter, each of the 
     different reactor sub-options has different legal and policy 
     issues associated with it. The conferees believe that it 
     would be helpful to the effort to secure necessary 
     legislative changes if DOE could identify the preferred 
     commercial reactor sub-option in advance of the final tritium 
     production technology decision, preferably by March 1, 1998.
       The conferees believe that it is essential for DOE to 
     identify and assess any policy issues associated with the 
     various reactor sub-options in conjunction with other federal 
     agencies including the Nuclear Regulatory Commission, the 
     Department of Defense, and the Department of State arms 
     control offices. The conferees direct the Secretary of Energy 
     to utilize a senior level, interagency process to review and 
     assess the issues associated with the commercial reactor 
     option. This assessment should be completed before DOE 
     identifies a preferred reactor sub-option.
       The conferees request the DOE propose to the Committee on 
     Armed Services of the Senate and the Committee on National 
     Security of the House of Representatives, by March 15, 1998, 
     any legislation necessary to resolve the issues associated 
     with either of the dual-track production technologies. This 
     would allow the legislation to be in place in advance of the 
     DOE's final decision in December 1998. The conferees 
     expect the Secretary of Energy to include full funding to 
     continue to evaluate each tritium production technology in 
     the dual-track strategy. The conferees will continue to 
     work closely with DOE to gain the knowledge necessary to 
     address and resolve issues associated with the dual-track 
     tritium production technologies in order to allow the 
     Department to select the tritium production option that 
     best meets U.S. policy, national security and budgetary 
     requirements.
     Administration of certain Department of Energy activities
       The Senate amendment contained a provision (sec. 3151) that 
     would amend sections 501 and 624 of the Department of Energy 
     Organization Act and repeal section 17 of the Federal Energy 
     Act. This provision would bring

[[Page H9462]]

     the Department of Energy (DOE) under the full scope of the 
     Federal Advisory Committee Act and would bring DOE under the 
     full scope of the Administrative Procedure Act when issuing 
     regulations dealing with public property, loans, grants, or 
     contracts.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that this provision was enacted into law 
     by ``The Department of Energy Standardization Act of 1997'' 
     (Public Law 105-28).
     Participation of the national security activities in Hispanic 
         Outreach Initiative of the Department of Energy
       The Senate amendment contained a provision (sec. 3159) that 
     would direct the Secretary of Energy to ensure the adequate 
     participation of the Department of Energy (DOE) national 
     security activities in the National Hispanic Outreach 
     Initiative.
       The House bill contained no similar provision.
       The Senate recedes.
       The Secretary of Energy has established, for each DOE 
     program element, participation goals to utilize Hispanic and 
     other predominately or historically minority institutions, in 
     carrying out DOE missions. The defense programs have not 
     participated in a meaningful way in the Hispanic portions of 
     the initiative.
       The initiative was announced by the DOE with much fanfare 
     and yet, particularly in northern New Mexico, there has been 
     little indication that DOE is working to fulfill its promises 
     to utilize more fully Hispanic institutions in carrying out 
     defense program missions. The conferees encourage the 
     Secretary of Energy to seek uniform participation in this 
     initiative.

          Title XXXII--Defense Nuclear Facilities Safety Board

     Overview
       The budget request for fiscal year 1998 contained an 
     authorization of $17.5 million for the Defense Nuclear 
     Facilities Safety Board. The House bill would authorize $17.5 
     million. The Senate amendment would authorize $17.5 million. 
     The conferees recommended an authorization of $17.5 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.


                     LEGISLATIVE PROVISIONS ADOPTED

     Report on external regulation of defense nuclear facilities 
         (sec. 3202)
       The House bill contained a provision (sec. 3202) that would 
     require the Defense Nuclear Facilities Safety Board (DNFSB) 
     to develop a plan, in consultation with the Secretary of 
     Energy and the Nuclear Regulatory Commission (NRC), for the 
     transfer of DNSFB's functions to the NRC.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Board to submit a report recommending which facilities should 
     be retained under the jurisdiction of the Board and which 
     facilities should be transferred to an external regulatory 
     agency; require the Board to assess regulatory requirements 
     and jurisdictional issues surrounding the defense 
     environmental management privatization initiative and the 
     proposed commercial light water reactor option for tritium 
     production; remove the repeal of section 210 of the 
     Department of Energy National Security and Military 
     Applications of Nuclear Energy Authorization Act of 1981 (42 
     U.S.C. 7272); and require the Board to submit an interim 
     report within 6 months of the date of enactment of this 
     section and a final report within 12 months.

                Title XXXIII--National Defense Stockpile


                     LEGISLATIVE PROVISIONS ADOPTED

     Definitions (sec. 3301)
       The Senate amendment contained a provision (sec. 3301) 
     defining the National Defense Stockpile and National Defense 
     Stockpile Transaction Fund as those which are established 
     under the Strategic and Critical Materials Stock Piling Act.
       The House bill contained no similar provision.
       The House recedes.
     Authorized uses of stockpile funds (sec. 3302)
       The House bill contained a provision (sec. 3301) that would 
     authorize $73.0 million from the National Defense Stockpile 
     Transaction Fund for the operation and maintenance of the 
     National Defense Stockpile for fiscal year 1998. This 
     provision would also permit the use of additional funds for 
     extraordinary or emergency conditions after a notification to 
     Congress.
       The Senate amendment contained a provision (sec. 3302) that 
     would authorize the Stockpile Manager to obligate $60.0 
     million from the National Defense Stockpile Transfer Fund 
     during fiscal year 1998 for the authorized uses of funds 
     under section 9(b)(2) of the Strategic and Critical Materials 
     Stockpiling Act.
       The Senate recedes.
     Disposal of beryllium copper master alloy in National Defense 
         Stockpile (sec. 3303)
       The House bill contained a provision (sec. 3302) that would 
     authorize the Department of Defense to dispose of all 
     beryllium copper master alloy from the National Defense 
     Stockpile, contingent upon certification by the National 
     Defense Stockpile Manager that any disposal of this material 
     will not adversely affect the strategic and critical material 
     needs of the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Disposal of titanium sponge in the National Defense Stockpile 
         (sec. 3304)
       The House bill contained a provision (sec. 3303) that would 
     authorize the Department of Defense to dispose of 34,800 
     short tons of titanium sponge in the National Defense 
     Stockpile.
       The Senate amendment contained a provision (sec. 3303) that 
     would authorize the disposal of several materials from the 
     National Defense Stockpile including titanium sponge.
       The Senate recedes.
     Disposal of cobalt in National Defense Stockpile (sec. 3305)
       The Senate amendment contained a provision (sec. 3303) that 
     would authorize the Department of Defense to dispose of 20 
     materials from the National Defense Stockpile and would 
     establish specific revenue targets that the Secretary of 
     Defense must meet in the disposal of these materials.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the disposal of up to 14,058,014 pounds of cobalt, beginning 
     in fiscal year 2003, and would require specific revenue 
     targets for this disposal each year until fiscal year 2007 in 
     order to offset direct spending provisions elsewhere in this 
     Act.
     Required procedures for disposal of strategic and critical 
         materials (sec. 3306)
       The House bill contained a provision (sec. 3306) that would 
     amend section 6(b) of the Strategic and Critical Materials 
     Stock Piling Act (50 U.S.C. 98e(b)) to clarify the procedures 
     used by the Department of Defense for the sale of materials 
     from the National Defense Stockpile.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Return of surplus platinum from the Department of the 
         Treasury (sec. 3307)
       The House bill contained a provision (sec. 3304) that would 
     establish conditions for the transfer of platinum contained 
     in the National Defense Stockpile to the United States 
     Treasury for minting of platinum coins.
       The Senate amendment contained a provision (sec. 3304) that 
     would require any platinum contained within the National 
     Defense Stockpile and loaned by the Department of Defense to 
     the Department of Treasury to be made available to the 
     Department of Defense upon request of the Secretary of 
     Defense.
       The House recedes with an amendment that would preclude the 
     expenditure of any funds available to the Department of 
     Defense for the transfer of any platinum to the Treasury.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Restrictions on disposal of certain manganese ferro
       The House bill contained a provision (sec. 3305) that would 
     repeal section 3304 of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106), which placed 
     restrictions on the disposal of Manganese Ferro from the 
     National Defense Stockpile.
       The Senate amendment contained no similar provision.
       The House recedes.

                 Title XXXIV--Naval Petroleum Reserves


                     legislative provisions adopted

     Price requirement on sale of certain petroleum during fiscal 
         year 1998 (sec. 3402)
       The House bill contained a provision (sec. 3402) that would 
     require the Secretary of Energy to sell petroleum produced 
     for the Naval Petroleum Reserves at not less than 90 percent 
     of established prices.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Repeal of requirement to assign Navy officers to Office of 
         Naval Petroleum and Oil Shale Reserves (sec. 3403)
       The House bill contained a provision (sec. 3403) that would 
     repeal section 2 of Public Law 96-137, which requires the 
     Secretary of the Navy to assign naval officers to the office 
     of Naval Petroleum and Oil Shale Reserves.
       The Senate amendment contained a similar provision (sec. 
     3403).
       The House recedes.
     Transfer of jurisdiction, Naval Oil Shale Reserves numbered 1 
         and 3 (sec. 3404)
       The House bill contained a provision (sec. 3404) that would 
     transfer the jurisdiction of the Naval Oil Shale Reserves 
     Numbered one and three to the Department of the Interior and 
     for lease pursuant to the provisions of the Mineral Leasing 
     Act, which would provide for the sharing of the revenues 
     between the State of Colorado and the Federal Treasury.
       The Senate amendment contained a similar provision (sec. 
     3402) that would authorize the lease of these reserves 
     through the Department of Energy, which would allow 100 
     percent of the proceeds to be returned to the Federal 
     Treasury.
       The Senate recedes with an amendment that would require 
     that the Federal Treasury be reimbursed for all costs 
     incurred by the Federal Government related to these reserves, 
     including costs associated with capital improvements and 
     environmental cleanup, prior to the sharing of any revenues 
     with the State of Colorado.

[[Page H9463]]

                  Title XXXV--Panama Canal Commission

     Panama Canal Commission (secs. 3501-3550)
       The House bill contained provisions (secs. 3501-3504) that 
     would authorize the expenditure of funds by the Panama Canal 
     Commission to cover its operating, maintenance, 
     administrative, and capital improvement expenses, and to 
     purchase vehicles built in the United States. The House bill 
     also contained provisions (secs. 3511-3550) that would give 
     the Commission certain authorities to facilitate the 
     transition of the Canal to Panamanian control in December 
     1999.
       The Senate amendment contained identical provisions (secs. 
     3501, 3502, 3504-3512, 3523, 3524, 3526, and 3528-3550) and 
     similar provisions (3503, 3521, 3522, 3525, and 3527).
       The conferees agree to include a series of provisions that 
     would authorize the operations of the Panama Canal 
     Commission. The provision in the House bill relating to the 
     purchase of vehicles (sec. 3503) required that the vehicles 
     purchased be built in the United States, while the provision 
     in the Senate amendment (sec. 3503) had no such requirement. 
     The provisions in the House bill and Senate amendment 
     relating to the administrator of the Panama Canal Authority 
     (sec. 3521 in both), post-transfer personnel authorities 
     (sec. 3522 in both), recruitment and retention authorities 
     (sec. 3525 in both) and labor-management relations (sec. 3527 
     in both) differed only technically.
       The House recedes with respect to the provision relating to 
     the purchase of vehicles (sec. 3503). The conferees note, 
     however, that the Commission has in the past purchased only 
     vehicles built in the United States and encourage the 
     continuation of that practice.
       The House recedes with respect to the provision relating to 
     the administrator of the Panama Canal Authority (sec. 3521), 
     and recedes with technical amendments with respect to the 
     provisions relating to post-transfer personnel authorities 
     (sec. 3522) and labor-management relations (sec. 3527). The 
     Senate recedes with a technical amendment with respect to the 
     provision relating to to enhanced recruitment and retention 
     authorities (sec. 3525).

                  Title XXXVI--Maritime Administration

       Title XXXVI of the House bill contained a number of 
     provisions that would provide authorization for the Maritime 
     Administration and related matters. The conferees resolved 
     these matters through extensive consultations between the 
     House and Senate conferees and the Senate Committee on 
     Commerce, Science, and Transportation, which would normally 
     exercise jurisdiction within the Senate on these matters.


                     LEGISLATIVE PROVISIONS ADOPTED

     Authorization of appropriations for fiscal year 1998 (sec. 
         3601)
       The House bill contained a provision (sec. 3601) that would 
     authorize $109.0 million for fiscal year 1998, as requested 
     in the President's budget, for the United States Maritime 
     Administration.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Repeal of obsolete annual report requirement concerning 
         relative cost of shipbuilding in the various coastal 
         districts of the United States (sec. 3602)
       The House bill contained a provision (sec. 3602) that would 
     repeal the obsolete requirement for an annual report on the 
     relative cost of shipbuilding in the various coastal 
     districts contained in section 213 of the Merchant Marine 
     Act, 1936, as amended (46 U.S.C. App. 1123).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Provisions relating to maritime security fleet program (sec. 
         3603)
       The House bill contained a provision (sec. 3603) that would 
     amend section 656(b) of the Merchant Marine Act, 1936, as 
     amended (46 U.S.C. App. 1187e(b)) to make clear that it does 
     not restrict the operation or entry of U.S. flag self-
     propelled tankers in the domestic trades. This provision 
     would also amend section 652(c) of the Merchant Marine Act, 
     1936, to eliminate the 3-year delay in eligibility to carry 
     certain preference cargoes of vessels that are reflagged as 
     U.S. flag vessels in order to participate in the Maritime 
     Security Fleet Program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     section 652(c) of the Act to exempt a vessel from the 
     restrictions concerning the building, rebuilding, or 
     documentation of a vessel in a foreign country referred to in 
     section 901(b) of the Act, 1936 (46 U.S.C. App. 1187a(c)) for 
     any day the operator of the vessel is receiving payments 
     under an operating agreement under the subtitle.
     Authority to utilize replacement vessels and capacity (sec. 
         3604)
       The House bill contained a provision (sec. 3604) that would 
     amend section 653(d) of the Merchant Marine Act, 1936, as 
     amended (46 U.S.C. App. 1187b(d)(1)), to authorize a U.S. 
     flag operator to utilize a foreign flag replacement vessel 
     for a U.S. flag vessel that is activated by the Secretary of 
     Defense under the terms of an Emergency Preparedness 
     Agreement or other primary sealift readiness program approved 
     by the Secretary of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority to convey National Defense Reserve Fleet vessel 
         (sec. 3605)
       The House bill contained a provision (sec. 3605) that would 
     authorize the Secretary of Transportation to convey a surplus 
     National Defense Reserve Fleet vessel to the Artship 
     Foundation, a non-profit organization located in Oakland, 
     California.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add two 
     required conditions to the terms of conveyance.
     Determination of gross tonnage for purposes of tank vessel 
         double hull requirements (sec. 3606)
       The House bill contained a provision (sec. 3606) that would 
     stop an industry practice of reducing the gross tonnage of 
     single-hull tank vessels in order to delay the phase-out date 
     of the vessels under the Oil Pollution Act of 1990.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify the 
     circumstances under which the House provision would apply.

     From the Committee on National Security, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Floyd Spence,
     Bob Stump,
     Duncan Hunter,
     John R. Kasich,
     Herbert H. Bateman,
     James V. Hansen,
     Curt Weldon,
     Joel Hefley,
     Jim Saxton,
     Steve Buyer,
     Tillie K. Fowler,
     John M. McHugh,
     James M. Talent,
     Terry Everett,
       (except for sections 355, 356, and 358-367),
     Roscoe G. Bartlett,
     Howard ``Buck'' McKeon,
     Ron Lewis,
     J.C. Watts, Jr.,
     Saxby Chambliss,
     Bob Riley,
     Ike Skelton,
     Norman Sisisky,
     John M. Spratt, Jr.,
       (except for the increase over the President's request for 
     research and development of a space-based laser and the 
     statement of managers on this program),
     Solomon P. Ortiz,
     Owen Pickett,
     Gene Taylor,
     Neil Abercrombie,
     Martin T. Meehan,
     Jane Harman,
     Paul McHale,
     Patrick J. Kennedy,
     Rod Blagojevich,
     Vic Snyder,
     As additional conferees from the Permanent Select Committee 
     on Intelligence, for consideration of matters within the 
     jurisdiction of that committee under clause 2 of rule XLVIII:
     Porter J. Goss,
     Jerry Lewis,
     Norm Dicks,
     As additional conferees from the Committee on Commerce for 
     consideration of sections 344, 601, 654, 735, 1021, 3143, 
     3144, 3201, 3202, 3402, and 3404 of the House bill, and 
     sections 338, 601, 663, 706, 1064, 2823, 3136, 3140, 3151, 
     3160, 3201, and 3402 of the Senate amendment, and 
     modifications committed to conference:
     Tom Bliley,
     Dan Schaefer,
     Provided that Mr. Oxley is appointed in lieu of Mr. Dan 
     Schaefer of Colorado for consideration of sections 344 and 
     1021 of the House bill and section 2823 of the Senate 
     amendment:
     Michael G. Oxley,
     Provided that Mr. Bilirakis is appointed in lieu of Mr. Dan 
     Schaefer of Colorado for consideration of sections 601, 654, 
     and 735 of the House bill, and sections 338, 601, 663, and 
     706 of the Senate amendment:
     Mike Bilirakis,
     Provided that Mr. Tauzin is appointed in lieu of Mr. Dan 
     Schaefer of Colorado for consideration of section 1064 of the 
     Senate amendment.
     Billy Tauzin,
     As additional conferees from the Committee on Education and 
     the Workforce, for consideration of sections 374, 658, and 
     3143 of the House bill, and sections 664 of the Senate 
     amendment, and modifications committed to conference:
     Bill Goodling,
     Harris W. Fawell,
     Loretta Sanchez,
     Provided that Mr. Riggs is appointed in lieu of Mr. Fawell 
     for consideration of section 658 of the House bill and 
     section 664 of the Senate amendment:
     Frank Riggs,
     As additional conferees from the Committee on Government 
     Reform and Oversight, for consideration of sections 322 and 
     3527 of the House bill, and sections 1068, 1107, 2811, and 
     3527 of the Senate amendment, and modifications committed to 
     conference:
     Dan Burton,

[[Page H9464]]

     Stephen Horn,
     As additional conferees from the Committee on House 
     Oversight, for consideration of section 543 of the Senate 
     amendment, and modifications committed to conference:
     William M. Thomas,
     Bob Ney,
     As additional conferees from the Committee on the Judiciary, 
     for consideration of sections 374, 1057, 3521, 3522, and 3541 
     of the House bill, and sections 831, 1073, 1075, 1106, and 
     1201-1216 of the Senate amendment, and modifications 
     committed to conference:
     Henry J. Hyde,
     Lamar Smith,
     As additional conferees from the Committee on Resources for 
     consideration of sections 214, 601, 653, 1021, 2835, 2901-
     2914 and 3404 of the House bill, and sections 234, 381-392, 
     601, 706, 2819, and 3158 of the Senate amendment, and 
     modifications committed to conference:
     Don Young,
     Billy Tauzin,
     Provided that Mr. Delahunt is appointed in lieu of Mr. Miller 
     of California for consideration of sections 2901-2914 of the 
     House bill, and sections 381-392 of the Senate amendment.
     William Delahunt,
     As additional conferees from the Committee on Science for 
     consideration of sections 214 and 3148 of the House bill, and 
     sections 234 and 1064 of the Senate amendment, and 
     modifications committed to conference:
     F. James Sensenbrenner, Jr.,
     Ken Calvert,
     George E. Brown, Jr.,
     Provided that Mr. Rohrabacher is appointed in lieu of Mr. 
     Calvert for consideration of section 1064 of the Senate 
     amendment.
     Dana Rohrabacher,
     As additional conferees from the Committee on Transportation 
     and Infrastructure for consideration of sections 345, 563, 
     601, 1021, 2861, and 3606 of the House bill, and section 601 
     of the Senate amendment, and modifications committed to 
     conference:
     Bud Shuster,
     Wayne T. Gilchrest,
     Robert A. Borski,
     As additional conferees from the Committee on Veterans' 
     Affairs for consideration of sections 751, 752, and 759 of 
     the House bill, and sections 220, 542, 751, 752, 758, 1069, 
     1074, and 1076 of the Senate amendment, and modifications 
     committed to conference:
     Christopher H. Smith,
     Michael Bilirakis,
     Joseph P. Kennedy,
                                Managers on the Part of the House.
     Strom Thurmond,
     John Warner,
     John McCain,
     Dan Coats,
     Bob Smith,
     Dirk Kempthorne,
     Jim Inhofe,
     Rick Santorum,
     Olympia Snowe,
     Pat Roberts,
     Carl Levin,
     Ted Kennedy,
     Jeff Bingaman,
     John Glenn,
     Robert C. Byrd,
     Chuck Robb,
     Joe Lieberman,
     Max Cleland,
     Managers on the Part of the Senate.

                          ____________________