[Congressional Record Volume 144, Number 130 (Friday, September 25, 1998)]
[House]
[Pages H8657-H8719]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 CONFERENCE REPORT ON H.R. 4103, DEPARTMENT OF DEFENSE APPROPRIATIONS 
                               ACT, 1999

  Mr. YOUNG of Florida submitted the following conference report and 
statement on the bill (H.R. 4103) making appropriations for the 
Department of Defense for the fiscal year ending September 30, 1999, 
and for other purposes:

                  Conference Report (H. Rept. 105-746)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4103) ``making appropriations for the Department of Defense 
     for the fiscal year ending September 30, 1999, and for other 
     purposes,'' having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:

     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 1999, for military functions 
     administered by the Department of Defense, and for other 
     purposes, namely:

                                TITLE I

                           MILITARY PERSONNEL

                        Military Personnel, Army

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Army on active 
     duty (except members of reserve components provided for 
     elsewhere), cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42 
     U.S.C. 402 note), to section 229(b) of the Social Security 
     Act (42 U.S.C. 429(b)), and to the Department of Defense 
     Military Retirement Fund; $20,841,687,000.

                        Military Personnel, Navy

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Navy on active 
     duty (except members of the Reserve provided for elsewhere), 
     midshipmen, and aviation cadets; and for payments pursuant to 
     section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
     note), to section 229(b) of the Social Security Act (42 
     U.S.C. 429(b)), and to the Department of Defense Military 
     Retirement Fund; $16,570,754,000.

                    Military Personnel, Marine Corps

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Marine Corps on 
     active duty (except members of the Reserve provided for 
     elsewhere); and for

[[Page H8658]]

     payments pursuant to section 156 of Public Law 97-377, as 
     amended (42 U.S.C. 402 note), to section 229(b) of the Social 
     Security Act (42 U.S.C. 429(b)), and to the Department of 
     Defense Military Retirement Fund; $6,263,387,000.

                     Military Personnel, Air Force

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Air Force on 
     active duty (except members of reserve components provided 
     for elsewhere), cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42 
     U.S.C. 402 note), to section 229(b) of the Social Security 
     Act (42 U.S.C. 429(b)), and to the Department of Defense 
     Military Retirement Fund; $17,211,987,000.

                        Reserve Personnel, Army

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     Reserve on active duty under sections 10211, 10302, and 3038 
     of title 10, United States Code, or while serving on active 
     duty under section 12301(d) of title 10, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     reserve training, or while performing drills or equivalent 
     duty or other duty, and for members of the Reserve Officers' 
     Training Corps, and expenses authorized by section 16131 of 
     title 10, United States Code; and for payments to the 
     Department of Defense Military Retirement Fund; 
     $2,167,052,000.

                        Reserve Personnel, Navy

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Navy 
     Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Reserve Officers' Training Corps, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund; $1,426,663,000.

                    Reserve Personnel, Marine Corps

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Marine 
     Corps Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Marine Corps platoon leaders class, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund; $406,616,000.

                      Reserve Personnel, Air Force

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air Force 
     Reserve on active duty under sections 10211, 10305, and 8038 
     of title 10, United States Code, or while serving on active 
     duty under section 12301(d) of title 10, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     reserve training, or while performing drills or equivalent 
     duty or other duty, and for members of the Air Reserve 
     Officers' Training Corps, and expenses authorized by section 
     16131 of title 10, United States Code; and for payments to 
     the Department of Defense Military Retirement Fund; 
     $852,324,000.

                     National Guard Personnel, Army

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     National Guard while on duty under section 10211, 10302, or 
     12402 of title 10 or section 708 of title 32, United States 
     Code, or while serving on duty under section 12301(d) of 
     title 10 or section 502(f) of title 32, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund; $3,489,987,000.

                  National Guard Personnel, Air Force

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air 
     National Guard on duty under section 10211, 10305, or 12402 
     of title 10 or section 708 of title 32, United States Code, 
     or while serving on duty under section 12301(d) of title 10 
     or section 502(f) of title 32, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund; $1,377,109,000.

                                TITLE II

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army


                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Army, as authorized by law; 
     and not to exceed $11,437,000 can be used for emergencies and 
     extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Army, and payments may be 
     made on his certificate of necessity for confidential 
     military purposes; $17,185,623,000 and, in addition, 
     $50,000,000 shall be derived by transfer from the National 
     Defense Stockpile Transaction Fund: Provided, That of the 
     funds appropriated in this paragraph, not less than 
     $355,000,000 shall be made available only for conventional 
     ammunition care and maintenance.

                    Operation and Maintenance, Navy


                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Navy and the Marine Corps, 
     as authorized by law; and not to exceed $5,360,000 can be 
     used for emergencies and extraordinary expenses, to be 
     expended on the approval or authority of the Secretary of the 
     Navy, and payments may be made on his certificate of 
     necessity for confidential military purposes; $21,872,399,000 
     and, in addition, $50,000,000 shall be derived by transfer 
     from the National Defense Stockpile Transaction Fund.

                Operation and Maintenance, Marine Corps

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Marine Corps, as authorized 
     by law; $2,578,718,000.

                  Operation and Maintenance, Air Force


                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Air Force, as authorized by 
     law; and not to exceed $7,968,000 can be used for emergencies 
     and extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Air Force, and payments may 
     be made on his certificate of necessity for confidential 
     military purposes; $19,021,045,000 and, in addition, 
     $50,000,000 shall be derived by transfer from the National 
     Defense Stockpile Transaction Fund.

                Operation and Maintenance, Defense-Wide

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of activities and agencies of the 
     Department of Defense (other than the military departments), 
     as authorized by law; $10,914,076,000, of which not to exceed 
     $25,000,000 may be available for the CINC initiative fund 
     account; and of which not to exceed $29,000,000 can be used 
     for emergencies and extraordinary expenses, to be expended on 
     the approval or authority of the Secretary of Defense, and 
     payments may be made on his certificate of necessity for 
     confidential military purposes: Provided, That of the funds 
     appropriated under this heading, $10,000,000 shall be made 
     available only for use in federally owned educational 
     facilities located on military installations for the purpose 
     of transferring title of such facilities to the local 
     educational facilities.

                Operation and Maintenance, Army Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Army Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications; 
     $1,202,622,000.

                Operation and Maintenance, Navy Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Navy Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications; 
     $957,239,000.

            Operation and Maintenance, Marine Corps Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Marine Corps Reserve; repair of 
     facilities and equipment; hire of passenger motor vehicles; 
     travel and transportation; care of the dead; recruiting; 
     procurement of services, supplies, and equipment; and 
     communications; $117,893,000.

              Operation and Maintenance, Air Force Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Air Force Reserve; repair of 
     facilities and equipment; hire of passenger motor vehicles; 
     travel and transportation; care of the dead; recruiting; 
     procurement of services, supplies, and equipment; and 
     communications; $1,747,696,000.

             Operation and Maintenance, Army National Guard

       For expenses of training, organizing, and administering the 
     Army National Guard, including medical and hospital treatment 
     and related expenses in non-Federal hospitals; maintenance, 
     operation, and repairs to structures and facilities; hire of 
     passenger motor vehicles; personnel services in the National 
     Guard Bureau; travel expenses (other than mileage), as 
     authorized by law for Army personnel on active duty, for Army 
     National Guard division, regimental, and battalion commanders 
     while inspecting units in compliance with National Guard 
     Bureau regulations when specifically authorized by the Chief, 
     National Guard Bureau; supplying and equipping the Army 
     National Guard as authorized by law; and expenses of repair, 
     modification, maintenance, and issue of supplies and 
     equipment (including aircraft); $2,678,015,000: Provided, 
     That not later than March 15, 1999, the Director of the Army 
     National Guard shall provide a report to the congressional 
     defense committees identifying the allocation, by 
     installation and activity, of all base operations funds 
     appropriated under this heading.

[[Page H8659]]

             Operation and Maintenance, Air National Guard

       For operation and maintenance of the Air National Guard, 
     including medical and hospital treatment and related expenses 
     in non-Federal hospitals; maintenance, operation, repair, and 
     other necessary expenses of facilities for the training and 
     administration of the Air National Guard, including repair of 
     facilities, maintenance, operation, and modification of 
     aircraft; transportation of things, hire of passenger motor 
     vehicles; supplies, materials, and equipment, as authorized 
     by law for the Air National Guard; and expenses incident to 
     the maintenance and use of supplies, materials, and 
     equipment, including such as may be furnished from stocks 
     under the control of agencies of the Department of Defense; 
     travel expenses (other than mileage) on the same basis as 
     authorized by law for Air National Guard personnel on active 
     Federal duty, for Air National Guard commanders while 
     inspecting units in compliance with National Guard Bureau 
     regulations when specifically authorized by the Chief, 
     National Guard Bureau; $3,106,933,000.

             Overseas Contingency Operations Transfer Fund


                     (including transfer of funds)

       For expenses directly relating to Overseas Contingency 
     Operations by United States military forces; $439,400,000, to 
     remain available until expended: Provided, That the Secretary 
     of Defense may transfer these funds only to operation and 
     maintenance accounts within this title, and to working 
     capital funds: Provided further, That the funds transferred 
     shall be merged with and shall be available for the same 
     purposes and for the same time period, as the appropriation 
     to which transferred: Provided further, That the transfer 
     authority provided in this paragraph is in addition to any 
     other transfer authority contained elsewhere in this Act.

          United States Court of Appeals for the Armed Forces

       For salaries and expenses necessary for the United States 
     Court of Appeals for the Armed Forces; $7,324,000, of which 
     not to exceed $2,500 can be used for official representation 
     purposes.

                    Environmental Restoration, Army


                     (including transfer of funds)

       For the Department of the Army, $370,640,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Army shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of the Army, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Army, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this 
     appropriation: Provided further, That not more than 
     twenty-five per centum of funds provided under this 
     heading may be obligated for environmental remediation by 
     the Corps of Engineers under total environmental 
     remediation contracts.

                    Environmental Restoration, Navy


                     (including transfer of funds)

       For the Department of the Navy, $274,600,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Navy shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of the Navy, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Navy, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

                  Environmental Restoration, Air Force


                     (including transfer of funds)

       For the Department of the Air Force, $372,100,000, to 
     remain available until transferred: Provided, That the 
     Secretary of the Air Force shall, upon determining that such 
     funds are required for environmental restoration, reduction 
     and recycling of hazardous waste, removal of unsafe buildings 
     and debris of the Department of the Air Force, or for similar 
     purposes, transfer the funds made available by this 
     appropriation to other appropriations made available to the 
     Department of the Air Force, to be merged with and to be 
     available for the same purposes and for the same time period 
     as the appropriations to which transferred: Provided further, 
     That upon a determination that all or part of the funds 
     transferred from this appropriation are not necessary for the 
     purposes provided herein, such amounts may be transferred 
     back to this appropriation.

                Environmental Restoration, Defense-Wide


                     (including transfer of funds)

       For the Department of Defense, $26,091,000, to remain 
     available until transferred: Provided, That the Secretary of 
     Defense shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of Defense, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of Defense, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

         Environmental Restoration, Formerly Used Defense Sites


                     (including transfer of funds)

       For the Department of the Army, $225,000,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Army shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris at 
     sites formerly used by the Department of Defense, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Army, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

             Overseas Humanitarian, Disaster, and Civic Aid

       For expenses relating to the Overseas Humanitarian, 
     Disaster, and Civic Aid programs of the Department of Defense 
     (consisting of the programs provided under sections 401, 402, 
     404, 2547, and 2551 of title 10, United States Code); 
     $50,000,000, to remain available until September 30, 2000.

                  Former Soviet Union Threat Reduction

       For assistance to the republics of the former Soviet Union, 
     including assistance provided by contract or by grants, for 
     facilitating the elimination and the safe and secure 
     transportation and storage of nuclear, chemical and other 
     weapons; for establishing programs to prevent the 
     proliferation of weapons, weapons components, and weapon-
     related technology and expertise; for programs relating to 
     the training and support of defense and military personnel 
     for demilitarization and protection of weapons, weapons 
     components and weapons technology and expertise; 
     $440,400,000, to remain available until September 30, 2001: 
     Provided, That of the amounts provided under this heading, 
     $35,000,000 shall be available only to support the 
     dismantling and disposal of nuclear submarines and submarine 
     reactor components in the Russian Far East.

                 Quality of Life Enhancements, Defense

       For expenses, not otherwise provided for, resulting from 
     unfunded shortfalls in the repair and maintenance of real 
     property of the Department of Defense (including military 
     housing and barracks); $455,000,000, for the maintenance of 
     real property of the Department of Defense (including minor 
     construction and major maintenance and repair), which shall 
     remain available for obligation until September 30, 2000, as 
     follows:
       Army, $137,000,000;
       Navy, $121,000,000;
       Marine Corps, $27,000,000;
       Air Force, $108,000,000;
       Army Reserve, $26,000,000;
       Navy Reserve, $12,400,000;
       Marine Corps Reserve, $7,600,000;
       Air Force Reserve, $6,000,000; and
       Air National Guard, $10,000,000.

                   Pentagon Renovation Transfer Fund


                     (including transfer of funds)

       For expenses, not otherwise provided for, resulting from 
     the Department of Defense renovation of the Pentagon 
     Reservation; $279,820,000 shall be derived by transfer from 
     the Operation and Maintenance accounts in this Act, for the 
     renovation of the Pentagon Reservation, which shall remain 
     available for obligation until September 30, 2000, as 
     follows:
       Army, $96,000,000;
       Navy, $32,087,000;
       Marine Corps, $9,513,000;
       Air Force, $52,200,000; and
       Defense-Wide, $90,020,000.

                               TITLE III

                              PROCUREMENT

                       Aircraft Procurement, Army

       For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of 
     title; and procurement and installation of equipment, 
     appliances, and machine tools in public and private 
     plants; reserve plant and Government and contractor-owned 
     equipment layaway; and other expenses necessary for the 
     foregoing purposes; $1,388,268,000, to remain available 
     for obligation until September 30, 2001.

                       Missile Procurement, Army

       For construction, procurement, production, modification, 
     and modernization of missiles, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $1,226,335,000, to remain available for obligation until 
     September 30, 2001.

[[Page H8660]]

        Procurement of Weapons and Tracked Combat Vehicles, Army

       For construction, procurement, production, and modification 
     of weapons and tracked combat vehicles, equipment, including 
     ordnance, spare parts, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including the land necessary therefor, for 
     the foregoing purposes, and such lands and interests therein, 
     may be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; and other expenses necessary for the 
     foregoing purposes; $1,548,340,000, to remain available for 
     obligation until September 30, 2001.

                    Procurement of Ammunition, Army

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854 of title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $1,065,955,000, to remain available for obligation until 
     September 30, 2001.

                        Other Procurement, Army

       For construction, procurement, production, and modification 
     of vehicles, including tactical, support, and non-tracked 
     combat vehicles; the purchase of not to exceed 37 passenger 
     motor vehicles for replacement only; and the purchase of 54 
     vehicles required for physical security of personnel, 
     notwithstanding price limitations applicable to passenger 
     vehicles but not to exceed $230,000 per vehicle; 
     communications and electronic equipment; other support 
     equipment; spare parts, ordnance, and accessories therefor; 
     specialized equipment and training devices; expansion of 
     public and private plants, including the land necessary 
     therefor, for the foregoing purposes, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $3,339,486,000, to remain available for obligation until 
     September 30, 2001.

                       Aircraft Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     spare parts, and accessories therefor; specialized equipment; 
     expansion of public and private plants, including the land 
     necessary therefor, and such lands and interests therein, may 
     be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; $7,541,709,000, to remain available 
     for obligation until September 30, 2001.

                       Weapons Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of missiles, torpedoes, other weapons, and 
     related support equipment including spare parts, and 
     accessories therefor; expansion of public and private plants, 
     including the land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant and 
     Government and contractor-owned equipment layaway; 
     $1,211,419,000, to remain available for obligation until 
     September 30, 2001.

            Procurement of Ammunition, Navy and Marine Corps

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854 of title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $484,203,000, to remain available for obligation until 
     September 30, 2001.

                   Shipbuilding and Conversion, Navy

       For expenses necessary for the construction, acquisition, 
     or conversion of vessels as authorized by law, including 
     armor and armament thereof, plant equipment, appliances, and 
     machine tools and installation thereof in public and private 
     plants; reserve plant and Government and contractor-owned 
     equipment layaway; procurement of critical, long leadtime 
     components and designs for vessels to be constructed or 
     converted in the future; and expansion of public and private 
     plants, including land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title, as follows:
       NSSN, $1,498,165,000;
       NSSN (AP), $504,736,000;
       CVN-77 (AP), $124,515,000;
       CVN Refuelings (AP), $274,980,000;
       DDG-51 destroyer program, $2,667,078,000;
       DDG-51 destroyer program (AP), $7,396,000;
       LPD-17 amphibious transport dock ship, $638,780,000;
       LHD-8 (AP), $45,000,000;
       Oceanographic ship program, $60,341,000;
       LCAC landing craft air cushion program, $16,000,000; and
       For craft, outfitting, post delivery, conversions, and 
     first destination transportation, $198,761,000;

     In all: $6,035,752,000, to remain available for obligation 
     until September 30, 2003: Provided, That 
     additional obligations may be incurred after September 30, 
     2003, for engineering services, tests, evaluations, and 
     other such budgeted work that must be performed in the 
     final stage of ship construction: Provided further, That 
     none of the funds provided under this heading for the 
     construction or conversion of any naval vessel to be 
     constructed in shipyards in the United States shall be 
     expended in foreign facilities for the construction of 
     major components of such vessel: Provided further, That 
     none of the funds provided under this heading shall be 
     used for the construction of any naval vessel in foreign 
     shipyards.

                        Other Procurement, Navy

       For procurement, production, and modernization of support 
     equipment and materials not otherwise provided for, Navy 
     ordnance (except ordnance for new aircraft, new ships, and 
     ships authorized for conversion); the purchase of not to 
     exceed 246 passenger motor vehicles for replacement only; and 
     the purchase of one vehicle required for physical security of 
     personnel, notwithstanding price limitations applicable to 
     passenger vehicles but not to exceed $225,000 per vehicle; 
     lease of passenger motor vehicles; expansion of public and 
     private plants, including the land necessary therefor, and 
     such lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; 
     $4,072,662,000 to remain available for obligation until 
     September 30, 2001.

                       Procurement, Marine Corps

       For expenses necessary for the procurement, manufacture, 
     and modification of missiles, armament, military equipment, 
     spare parts, and accessories therefor; plant equipment, 
     appliances, and machine tools, and installation thereof in 
     public and private plants; reserve plant and Government and 
     contractor-owned equipment layaway; vehicles for the Marine 
     Corps, including the purchase of not to exceed 37 passenger 
     motor vehicles for replacement only; and expansion of public 
     and private plants, including land necessary therefor, and 
     such lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     $874,216,000, to remain available for obligation until 
     September 30, 2001.

                    Aircraft Procurement, Air Force

       For construction, procurement, and modification of aircraft 
     and equipment, including armor and armament, specialized 
     ground handling equipment, and training devices, spare parts, 
     and accessories therefor; specialized equipment; expansion of 
     public and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things; 
     $8,095,507,000, to remain available for obligation until 
     September 30, 2001.

                     Missile Procurement, Air Force

       For construction, procurement, and modification of 
     missiles, spacecraft, rockets, and related equipment, 
     including spare parts and accessories therefor, ground 
     handling equipment, and training devices; expansion of public 
     and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things; 
     $2,069,827,000, to remain available for obligation until 
     September 30, 2001.

                  Procurement of Ammunition, Air Force

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854 of title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $379,425,000, to remain available for obligation until 
     September 30, 2001.

                      Other Procurement, Air Force

       For procurement and modification of equipment (including 
     ground guidance and electronic control equipment, and ground 
     electronic and communication equipment), and supplies, 
     materials, and spare parts therefor, not otherwise

[[Page H8661]]

     provided for; the purchase of not to exceed 267 passenger 
     motor vehicles for replacement only; the purchase of one 
     vehicle required for physical security of personnel, 
     notwithstanding price limitations applicable to passenger 
     vehicles but not to exceed $240,000 per vehicle; lease of 
     passenger motor vehicles; and expansion of public and private 
     plants, Government-owned equipment and installation thereof 
     in such plants, erection of structures, and acquisition of 
     land, for the foregoing purposes, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon, prior to approval of title; reserve plant 
     and Government and contractor-owned equipment layaway; 
     $6,960,483,000, to remain available for obligation until 
     September 30, 2001.

                       Procurement, Defense-Wide

       For expenses of activities and agencies of the Department 
     of Defense (other than the military departments) necessary 
     for procurement, production, and modification of equipment, 
     supplies, materials, and spare parts therefor, not otherwise 
     provided for; the purchase of not to exceed 346 passenger 
     motor vehicles for replacement only; the purchase of 4 
     vehicles required for physical security of personnel, 
     notwithstanding price limitations applicable to passenger 
     vehicles but not to exceed $165,000 per vehicle; expansion of 
     public and private plants, equipment, and installation 
     thereof in such plants, erection of structures, and 
     acquisition of land for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; $1,944,833,000, to remain available for obligation 
     until September 30, 2001.

                  National Guard and Reserve Equipment

       For procurement of aircraft, missiles, tracked combat 
     vehicles, ammunition, other weapons, and other procurement 
     for the reserve components of the Armed Forces; $352,000,000, 
     to remain available for obligation until September 30, 2001: 
     Provided, That the Chiefs of the Reserve and National Guard 
     components shall, not later than 30 days after the enactment 
     of this Act, individually submit to the congressional defense 
     committees the modernization priority assessment for their 
     respective Reserve or National Guard component.

                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment; $5,031,788,000, to remain available 
     for obligation until September 30, 2000: Provided, That of 
     the funds made available under this heading, $15,000,000 
     shall be available only to commence in fiscal year 1999 a 
     live fire, side-by-side operational test and evaluation of 
     the air-to-air Starstreak and air-to-air Stinger missiles 
     fired from the AH-64D Apache helicopter: Provided further, 
     That in conjunction with the development of a test plan, the 
     Secretary of the Army shall certify the following, in 
     writing, to the congressional defense committees:
       (1) Engagement tests can be safely conducted with both 
     Starstreak and Stinger missiles from the AH-64D helicopter at 
     air speeds consistent with the normal operating limits of 
     that aircraft;
       (2) The Starstreak missiles utilized in the test will be 
     provided at no cost to the United States Government;
       (3) None of the $15,000,000 provided will be used to 
     develop modifications to the Starstreak or the Stinger 
     missiles; and
       (4) Both the Starstreak and Stinger missiles can be fired 
     from the AH-64D aircraft consistent with the survivability of 
     the aircraft and missile performance standards contained in 
     the Army's Air-to-Air Missile Capability Need Statement 
     approved by the Department of the Army in January 1997.

            Research, Development, Test and Evaluation, Navy

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment; $8,636,649,000, to remain available 
     for obligation until September 30, 2000: Provided, That funds 
     appropriated in this paragraph which are available for the V-
     22 may be used to meet unique requirements of the Special 
     Operation Forces: Provided further, That notwithstanding 10 
     U.S.C. 2366, none of the funds made available under this 
     heading may be used to conduct system-level live-fire shock 
     tests on the SSN-21 class of submarines unless the Commander-
     in-Chief of the United States Atlantic Command certifies in 
     writing to the congressional defense committees that such 
     testing must be conducted to meet operational requirements 
     for those submarines.

         Research, Development, Test and Evaluation, Air Force

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment; $13,758,811,000, to remain 
     available for obligation until September 30, 2000.

        Research, Development, Test and Evaluation, Defense-Wide

       For expenses of activities and agencies of the Department 
     of Defense (other than the military departments), necessary 
     for basic and applied scientific research, development, test 
     and evaluation; advanced research projects as may be 
     designated and determined by the Secretary of Defense, 
     pursuant to law; maintenance, rehabilitation, lease, and 
     operation of facilities and equipment; $9,036,551,000, to 
     remain available for obligation until September 30, 2000: 
     Provided, That not less than $310,446,000 of the funds made 
     available under this heading shall be made available only for 
     the Sea-Based Wide Area Defense (Navy Upper-Tier) program: 
     Provided further, That funding for the Sea-Based Wide Area 
     Defense (Navy Upper-Tier) program in this or any other Act 
     shall be used for research, development and deployment 
     including, but not limited to, continuing ongoing risk 
     reduction activities, initiating system engineering for an 
     initial Block I capability, and deployment at the earliest 
     feasible time following Aegis Lightweight Exoatmospheric 
     Projectile (LEAP) intercept flight tests.

               Developmental Test and Evaluation, Defense

       For expenses, not otherwise provided for, of independent 
     activities of the Director, Test and Evaluation in the 
     direction and supervision of developmental test and 
     evaluation, including performance and joint developmental 
     testing and evaluation; and administrative expenses in 
     connection therewith; $258,606,000, to remain available for 
     obligation until September 30, 2000.

                Operational Test and Evaluation, Defense

       For expenses, not otherwise provided for, necessary for the 
     independent activities of the Director, Operational Test and 
     Evaluation in the direction and supervision of operational 
     test and evaluation, including initial operational test and 
     evaluation which is conducted prior to, and in support of, 
     production decisions; joint operational testing and 
     evaluation; and administrative expenses in connection 
     therewith; $34,245,000, to remain available for obligation 
     until September 30, 2000.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       For the Defense Working Capital Funds; $94,500,000.

                     National Defense Sealift Fund


                     (including transfer of funds)

       For National Defense Sealift Fund programs, projects, and 
     activities, and for expenses of the National Defense Reserve 
     Fleet, as established by section 11 of the Merchant Ship 
     Sales Act of 1946 (50 U.S.C. App. 1744); $708,366,000, to 
     remain available until expended: Provided, That none of the 
     funds provided in this paragraph shall be used to award a new 
     contract that provides for the acquisition of any of the 
     following major components unless such components are 
     manufactured in the United States: auxiliary equipment, 
     including pumps, for all shipboard services; propulsion 
     system components (that is; engines, reduction gears, and 
     propellers); shipboard cranes; and spreaders for shipboard 
     cranes: Provided further, That the exercise of an option in a 
     contract awarded through the obligation of previously 
     appropriated funds shall not be considered to be the award of 
     a new contract: Provided further, That notwithstanding any 
     other provision of law, of the funds available under this 
     heading, $28,800,000 shall be transferred to ``Alteration of 
     Bridges'': Provided further, That the Secretary of the 
     military department responsible for such procurement may 
     waive the restrictions in the first proviso on a case-by-case 
     basis by certifying in writing to the Committees on 
     Appropriations of the House of Representatives and the Senate 
     that adequate domestic supplies are not available to meet 
     Department of Defense requirements on a timely basis and that 
     such an acquisition must be made in order to acquire 
     capability for national security purposes.

                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       For expenses, not otherwise provided for, for medical and 
     health care programs of the Department of Defense, as 
     authorized by law; $10,149,872,000, of which $9,727,985,000 
     shall be for Operation and maintenance, of which not to 
     exceed two per centum shall remain available until September 
     30, 2000, of which $402,387,000, to remain available for 
     obligation until September 30, 2001, shall be for 
     Procurement, and of which $19,500,000, to remain available 
     for obligation until September 30, 2000, shall be for 
     Research, development, test and evaluation: Provided, That of 
     the amounts made available under this heading for Operation 
     and maintenance, not less than $25,000,000 shall be only for 
     breast cancer treatment and access to care.

            Chemical Agents and Munitions Destruction, Army

       For expenses, not otherwise provided for, necessary for the 
     destruction of the United States stockpile of lethal chemical 
     agents and munitions in accordance with the provisions of 
     section 1412 of the Department of Defense Authorization Act, 
     1986 (50 U.S.C. 1521), and for the destruction of other 
     chemical warfare materials that are not in the chemical 
     weapon stockpile; $780,150,000, of which $491,700,000 shall 
     be for Operation and maintenance, $115,670,000 shall be for 
     Procurement to remain available until September 30, 2001, and 
     $172,780,000 shall be for Research, development, test and 
     evaluation to remain available until September 30, 2000: 
     Provided, That of the funds available under this heading, 
     $1,000,000 shall be available until expended each year only 
     for a Johnston Atoll off-island leave program: Provided 
     further, That the Secretaries concerned shall, pursuant to 
     uniform regulations, prescribe travel and transportation 
     allowances for travel by participants in the off-island leave 
     program.

         Drug Interdiction and Counter-Drug Activities, Defense


                     (including transfer of funds)

       For drug interdiction and counter-drug activities of the 
     Department of Defense, for transfer

[[Page H8662]]

     to appropriations available to the Department of Defense for 
     military personnel of the reserve components serving under 
     the provisions of title 10 and title 32, United States Code; 
     for Operation and maintenance; for Procurement; and for 
     Research, development, test and evaluation; $735,582,000: 
     Provided, That the funds appropriated under this heading 
     shall be available for obligation for the same time period 
     and for the same purpose as the appropriation to which 
     transferred: Provided further, That the transfer authority 
     provided in this paragraph is in addition to any transfer 
     authority contained elsewhere in this Act.

                    Office of the Inspector General

       For expenses and activities of the Office of the Inspector 
     General in carrying out the provisions of the Inspector 
     General Act of 1978, as amended; $132,064,000, of which 
     $130,764,000 shall be for Operation and maintenance, of which 
     not to exceed $500,000 is available for emergencies and 
     extraordinary expenses to be expended on the approval or 
     authority of the Inspector General, and payments may be made 
     on his certificate of necessity for confidential military 
     purposes; and of which $1,300,000, to remain available until 
     September 30, 2001, shall be for Procurement.

                               TITLE VII

                            RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

       For payment to the Central Intelligence Agency Retirement 
     and Disability System Fund, to maintain proper funding level 
     for continuing the operation of the Central Intelligence 
     Agency Retirement and Disability System; $201,500,000.

               Intelligence Community Management Account


                     (including transfer of funds)

       For necessary expenses of the Intelligence Community 
     Management Account; $129,123,000, of which $30,290,000 for 
     the Advanced Research and Development Committee shall remain 
     available until September 30, 2000: Provided, That of the 
     funds appropriated under this heading, $27,000,000 shall be 
     transferred to the Department of Justice for the National 
     Drug Intelligence Center to support the Department of 
     Defense's counter-drug intelligence responsibilities, and of 
     the said amount, $1,500,000 for Procurement shall remain 
     available until September 30, 2001, and $3,000,000 for 
     Research, development, test and evaluation shall remain 
     available until September 30, 2000.

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

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

                 National Security Education Trust Fund

       For the purposes of title VIII of Public Law 102-183, 
     $3,000,000, to be derived from the National Security 
     Education Trust Fund, to remain available until expended.

                               TITLE VIII

                           GENERAL PROVISIONS

       Sec. 8001. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes not 
     authorized by the Congress.
       Sec. 8002. During the current fiscal year, provisions of 
     law prohibiting the payment of compensation to, or employment 
     of, any person not a citizen of the United States shall not 
     apply to personnel of the Department of Defense: Provided, 
     That salary increases granted to direct and indirect hire 
     foreign national employees of the Department of Defense 
     funded by this Act shall not be at a rate in excess of the 
     percentage increase authorized by law for civilian employees 
     of the Department of Defense whose pay is computed under the 
     provisions of section 5332 of title 5, United States Code, or 
     at a rate in excess of the percentage increase provided by 
     the appropriate host nation to its own employees, whichever 
     is higher: Provided further, That this section shall not 
     apply to Department of Defense foreign service national 
     employees serving at United States diplomatic missions whose 
     pay is set by the Department of State under the Foreign 
     Service Act of 1980: Provided further, That the limitations 
     of this provision shall not apply to foreign national 
     employees of the Department of Defense in the Republic of 
     Turkey.
       Sec. 8003. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year, unless expressly so provided herein.
       Sec. 8004. No more than 20 per centum of the appropriations 
     in this Act which are limited for obligation during the 
     current fiscal year shall be obligated during the last two 
     months of the fiscal year: Provided, That this section shall 
     not apply to obligations for support of active duty training 
     of reserve components or summer camp training of the Reserve 
     Officers' Training Corps.


                          (transfer of funds)

       Sec. 8005. Upon determination by the Secretary of Defense 
     that such action is necessary in the national interest, he 
     may, with the approval of the Office of Management and 
     Budget, transfer not to exceed $1,650,000,000 of working 
     capital funds of the Department of Defense or funds made 
     available in this Act to the Department of Defense for 
     military functions (except military construction) between 
     such appropriations or funds or any subdivision thereof, to 
     be merged with and to be available for the same purposes, and 
     for the same time period, as the appropriation or fund to 
     which transferred: Provided, That such authority to transfer 
     may not be used unless for higher priority items, based on 
     unforeseen military requirements, than those for which 
     originally appropriated and in no case where the item for 
     which funds are requested has been denied by Congress: 
     Provided further, That the Secretary of Defense shall notify 
     the Congress promptly of all transfers made pursuant to this 
     authority or any other authority in this Act: Provided 
     further, That no part of the funds in this Act shall be 
     available to prepare or present a request to the Committees 
     on Appropriations for reprogramming of funds, unless for 
     higher priority items, based on unforeseen military 
     requirements, than those for which originally appropriated 
     and in no case where the item for which reprogramming is 
     requested has been denied by the Congress.


                          (transfer of funds)

       Sec. 8006. During the current fiscal year, cash balances in 
     working capital funds of the Department of Defense 
     established pursuant to section 2208 of title 10, United 
     States Code, may be maintained in only such amounts as are 
     necessary at any time for cash disbursements to be made from 
     such funds: Provided, That transfers may be made between such 
     funds: Provided further, That transfers may be made between 
     working capital funds and the ``Foreign Currency 
     Fluctuations, Defense'' appropriation and the ``Operation and 
     Maintenance'' appropriation accounts in such amounts as may 
     be determined by the Secretary of Defense, with the approval 
     of the Office of Management and Budget, except that such 
     transfers may not be made unless the Secretary of Defense has 
     notified the Congress of the proposed transfer. Except in 
     amounts equal to the amounts appropriated to working capital 
     funds in this Act, no obligations may be made against a 
     working capital fund to procure or increase the value of war 
     reserve material inventory, unless the Secretary of Defense 
     has notified the Congress prior to any such obligation.
       Sec. 8007. Funds appropriated by this Act may not be used 
     to initiate a special access program without prior 
     notification 30 calendar days in session in advance to the 
     congressional defense committees.
       Sec. 8008. None of the funds provided in this Act shall be 
     available to initiate: (1) a multiyear contract that employs 
     economic order quantity procurement in excess of $20,000,000 
     in any one year of the contract or that includes an unfunded 
     contingent liability in excess of $20,000,000; or (2) a 
     contract for advance procurement leading to a multiyear 
     contract that employs economic order quantity procurement in 
     excess of $20,000,000 in any one year, unless the 
     congressional defense committees have been notified at least 
     30 days in advance of the proposed contract award: Provided, 
     That no part of any appropriation contained in this Act shall 
     be available to initiate a multiyear contract for which the 
     economic order quantity advance procurement is not funded at 
     least to the limits of the Government's liability: Provided 
     further, That no part of any appropriation contained in this 
     Act shall be available to initiate multiyear procurement 
     contracts for any systems or component thereof if the value 
     of the multiyear contract would exceed $500,000,000 unless 
     specifically provided in this Act: Provided further, That no 
     multiyear procurement contract can be terminated without 10-
     day prior notification to the congressional defense 
     committees: Provided further, That the execution of multiyear 
     authority shall require the use of a present value analysis 
     to determine lowest cost compared to an annual procurement.
       Funds appropriated in title III of this Act may be used for 
     multiyear procurement contracts as follows:
       E-2C aircraft;
       Longbow Hellfire missile; and
       Medium Tactical Vehicle Replacement (MTVR).
       Sec. 8009. Within the funds appropriated for the operation 
     and maintenance of the Armed Forces, funds are hereby 
     appropriated pursuant to section 401 of title 10, United 
     States Code, for humanitarian and civic assistance costs 
     under chapter 20 of title 10, United States Code. Such funds 
     may also be obligated for humanitarian and civic assistance 
     costs incidental to authorized operations and pursuant to 
     authority granted in section 401 of chapter 20 of title 10, 
     United States Code, and these obligations shall be reported 
     to Congress on September 30 of each year: Provided, That 
     funds available for operation and maintenance shall be 
     available for providing humanitarian and similar assistance 
     by using Civic Action Teams in the Trust Territories of the 
     Pacific Islands and freely associated states of Micronesia, 
     pursuant to the Compact of Free Association as authorized by 
     Public Law 99-239: Provided further, That upon a 
     determination by the Secretary of the Army that such action 
     is beneficial for graduate medical education programs 
     conducted at Army medical facilities located in Hawaii, the 
     Secretary of the Army may authorize the provision of medical 
     services at such facilities and transportation to such 
     facilities, on a nonreimbursable basis, for civilian patients 
     from American Samoa, the Commonwealth of the Northern Mariana 
     Islands, the Marshall Islands, the Federated States of 
     Micronesia, Palau, and Guam.
       Sec. 8010. (a) During fiscal year 1999, the civilian 
     personnel of the Department of Defense may not be managed on 
     the basis of any end-strength, and the management of such 
     personnel during that fiscal year shall not be subject to any 
     constraint or limitation (known as an end-strength) on the 
     number of such personnel who may be employed on the last day 
     of such fiscal year.
       (b) The fiscal year 2000 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2000 Department of 
     Defense budget request shall be prepared and submitted to the 
     Congress as if subsections (a) and (b) of this provision were 
     effective with regard to fiscal year 2000.
       (c) Nothing in this section shall be construed to apply to 
     military (civilian) technicians.
       Sec. 8011. Notwithstanding any other provision of law, none 
     of the funds made available by

[[Page H8663]]

     this Act shall be used by the Department of Defense to 
     exceed, outside the 50 United States, its territories, and 
     the District of Columbia, 125,000 civilian workyears: 
     Provided, That workyears shall be applied as defined in the 
     Federal Personnel Manual: Provided further, That workyears 
     expended in dependent student hiring programs for 
     disadvantaged youths shall not be included in this workyear 
     limitation.
       Sec. 8012. None of the funds made available by this Act 
     shall be used in any way, directly or indirectly, to 
     influence congressional action on any legislation or 
     appropriation matters pending before the Congress.
       Sec. 8013. (a) None of the funds appropriated by this Act 
     shall be used to make contributions to the Department of 
     Defense Education Benefits Fund pursuant to section 2006(g) 
     of title 10, United States Code, representing the normal cost 
     for future benefits under section 3015(c) of title 38, United 
     States Code, for any member of the armed services who, on or 
     after the date of enactment of this Act--
       (1) enlists in the armed services for a period of active 
     duty of less than three years; or
       (2) receives an enlistment bonus under section 308a or 308f 
     of title 37, United States Code,

     nor shall any amounts representing the normal cost of such 
     future benefits be transferred from the Fund by the Secretary 
     of the Treasury to the Secretary of Veterans Affairs pursuant 
     to section 2006(d) of title 10, United States Code; nor shall 
     the Secretary of Veterans Affairs pay such benefits to any 
     such member: Provided, That in the case of a member covered 
     by clause (1), these limitations shall not apply to members 
     in combat arms skills or to members who enlist in the armed 
     services on or after July 1, 1989, under a program continued 
     or established by the Secretary of Defense in fiscal year 
     1991 to test the cost-effective use of special recruiting 
     incentives involving not more than nineteen noncombat arms 
     skills approved in advance by the Secretary of Defense: 
     Provided further, That this subsection applies only to active 
     components of the Army.
       (b) None of the funds appropriated by this Act shall be 
     available for the basic pay and allowances of any member of 
     the Army participating as a full-time student and receiving 
     benefits paid by the Secretary of Veterans Affairs from the 
     Department of Defense Education Benefits Fund when time spent 
     as a full-time student is credited toward completion of a 
     service commitment: Provided, That this subsection shall not 
     apply to those members who have reenlisted with this option 
     prior to October 1, 1987: Provided further, That this 
     subsection applies only to active components of the Army.
       Sec. 8014. None of the funds appropriated by this Act shall 
     be available to convert to contractor performance an activity 
     or function of the Department of Defense that, on or after 
     the date of enactment of this Act, is performed by more than 
     ten Department of Defense civilian employees until a most 
     efficient and cost-effective organization analysis is 
     completed on such activity or function and certification of 
     the analysis is made to the Committees on Appropriations of 
     the House of Representatives and the Senate: Provided, That 
     this section and subsections (a), (b), and (c) of 10 U.S.C. 
     2461 shall not apply to a commercial or industrial type 
     function of the Department of Defense that: (1) is included 
     on the procurement list established pursuant to section 2 of 
     the Act of June 25, 1938 (41 U.S.C. 47), popularly referred 
     to as the Javits-Wagner-O'Day Act; (2) is planned to be 
     converted to performance by a qualified nonprofit agency for 
     the blind or by a qualified nonprofit agency for other 
     severely handicapped individuals in accordance with that Act; 
     or (3) is planned to be converted to performance by a 
     qualified firm under 51 per centum Native American ownership.


                          (transfer of funds)

       Sec. 8015. Funds appropriated in title III of this Act for 
     the Department of Defense Pilot Mentor-Protege Program may be 
     transferred to any other appropriation contained in this Act 
     solely for the purpose of implementing a Mentor-Protege 
     Program developmental assistance agreement pursuant to 
     section 831 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301 note), 
     as amended, under the authority of this provision or any 
     other transfer authority contained in this Act.
       Sec. 8016. None of the funds in this Act may be available 
     for the purchase by the Department of Defense (and its 
     departments and agencies) of welded shipboard anchor and 
     mooring chain 4 inches in diameter and under unless the 
     anchor and mooring chain are manufactured in the United 
     States from components which are substantially manufactured 
     in the United States: Provided, That for the purpose of this 
     section manufactured will include cutting, heat treating, 
     quality control, testing of chain and welding (including the 
     forging and shot blasting process): Provided further, That 
     for the purpose of this section substantially all of the 
     components of anchor and mooring chain shall be considered to 
     be produced or manufactured in the United States if the 
     aggregate cost of the components produced or manufactured in 
     the United States exceeds the aggregate cost of the 
     components produced or manufactured outside the United 
     States: Provided further, That when adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis, the Secretary of the service 
     responsible for the procurement may waive this restriction on 
     a case-by-case basis by certifying in writing to the 
     Committees on Appropriations that such an acquisition must be 
     made in order to acquire capability for national security 
     purposes.
       Sec. 8017. None of the funds appropriated by this Act 
     available for the Civilian Health and Medical Program of the 
     Uniformed Services (CHAMPUS) shall be available for the 
     reimbursement of any health care provider for inpatient 
     mental health service for care received when a patient is 
     referred to a provider of inpatient mental health care or 
     residential treatment care by a medical or health care 
     professional having an economic interest in the facility to 
     which the patient is referred: Provided, That this limitation 
     does not apply in the case of inpatient mental health 
     services provided under the program for the handicapped under 
     subsection (d) of section 1079 of title 10, United States 
     Code, provided as partial hospital care, or provided pursuant 
     to a waiver authorized by the Secretary of Defense because of 
     medical or psychological circumstances of the patient that 
     are confirmed by a health professional who is not a Federal 
     employee after a review, pursuant to rules prescribed by the 
     Secretary, which takes into account the appropriate level of 
     care for the patient, the intensity of services required by 
     the patient, and the availability of that care.
       Sec. 8018. Funds available in this Act may be used to 
     provide transportation for the next-of-kin of individuals who 
     have been prisoners of war or missing in action from the 
     Vietnam era to an annual meeting in the United States, under 
     such regulations as the Secretary of Defense may prescribe.
       Sec. 8019. Notwithstanding any other provision of law, 
     during the current fiscal year, the Secretary of Defense may, 
     by executive agreement, establish with host nation 
     governments in NATO member states a separate account into 
     which such residual value amounts negotiated in the return of 
     United States military installations in NATO member states 
     may be deposited, in the currency of the host nation, in lieu 
     of direct monetary transfers to the United States Treasury: 
     Provided, That such credits may be utilized only for the 
     construction of facilities to support United States military 
     forces in that host nation, or such real property maintenance 
     and base operating costs that are currently executed through 
     monetary transfers to such host nations: Provided further, 
     That the Department of Defense's budget submission for fiscal 
     year 2000 shall identify such sums anticipated in residual 
     value settlements, and identify such construction, real 
     property maintenance or base operating costs that shall be 
     funded by the host nation through such credits: Provided 
     further, That all military construction projects to be 
     executed from such accounts must be previously approved in a 
     prior Act of Congress: Provided further, That each such 
     executive agreement with a NATO member host nation shall be 
     reported to the congressional defense committees, the 
     Committee on International Relations of the House of 
     Representatives and the Committee on Foreign Relations of the 
     Senate 30 days prior to the conclusion and endorsement of any 
     such agreement established under this provision.
       Sec. 8020. None of the funds available to the Department of 
     Defense may be used to demilitarize or dispose of M-1 
     Carbines, M-1 Garand rifles, M-14 rifles, .22 caliber rifles, 
     .30 caliber rifles, or M-1911 pistols.
       Sec. 8021. Notwithstanding any other provision of law, none 
     of the funds appropriated by this Act shall be available to 
     pay more than 50 per centum of an amount paid to any person 
     under section 308 of title 37, United States Code, in a lump 
     sum.
       Sec. 8022. No more than $500,000 of the funds appropriated 
     or made available in this Act shall be used during a single 
     fiscal year for any single relocation of an organization, 
     unit, activity or function of the Department of Defense into 
     or within the National Capital Region: Provided, That the 
     Secretary of Defense may waive this restriction on a case-by-
     case basis by certifying in writing to the congressional 
     defense committees that such a relocation is required in the 
     best interest of the Government.
       Sec. 8023. A member of a reserve component whose unit or 
     whose residence is located in a State which is not contiguous 
     with another State is authorized to travel in a space 
     required status on aircraft of the Armed Forces between home 
     and place of inactive duty training, or place of duty in lieu 
     of unit training assembly, when there is no road or railroad 
     transportation (or combination of road and railroad 
     transportation between those locations): Provided, That a 
     member traveling in that status on a military aircraft 
     pursuant to the authority provided in this section is not 
     authorized to receive travel, transportation, or per diem 
     allowances in connection with that travel.
       Sec. 8024. (a) In addition to the funds provided elsewhere 
     in this Act, $8,000,000 is appropriated only for incentive 
     payments authorized by section 504 of the Indian Financing 
     Act of 1974 (25 U.S.C. 1544): Provided, That contractors 
     participating in the test program established by section 854 
     of Public Law 101-189 (15 U.S.C. 637 note) shall be eligible 
     for the program established by section 504 of the Indian 
     Financing Act of 1974 (25 U.S.C. 1544).
       (b) Section 8024 of the Department of Defense 
     Appropriations Act (Public Law 105-56) is amended by striking 
     out ``That these payments'' and all that follows through 
     ``Provided further,''.
       Sec. 8025. During the current fiscal year, funds 
     appropriated or otherwise available for any Federal agency, 
     the Congress, the judicial branch, or the District of 
     Columbia may be used for the pay, allowances, and benefits of 
     an employee as defined by section 2105 of title 5, United 
     States Code, or an individual employed by the government of 
     the District of Columbia, permanent or temporary indefinite, 
     who--
       (1) is a member of a Reserve component of the Armed Forces, 
     as described in section 10101 of title 10, United States 
     Code, or the National Guard, as described in section 101 of 
     title 32, United States Code;
       (2) performs, for the purpose of providing military aid to 
     enforce the law or providing assistance to civil authorities 
     in the protection or saving of life or property or prevention 
     of injury--

[[Page H8664]]

        (A) Federal service under sections 331, 332, 333, or 12406 
     of title 10, or other provision of law, as applicable; or
        (B) full-time military service for his or her State, the 
     District of Columbia, the Commonwealth of Puerto Rico, or a 
     territory of the United States; and
       (3) requests and is granted--
        (A) leave under the authority of this section; or
        (B) annual leave, which may be granted without regard to 
     the provisions of sections 5519 and 6323(b) of title 5, if 
     such employee is otherwise entitled to such annual leave:

     Provided, That any employee who requests leave under 
     subsection (3)(A) for service described in subsection (2) of 
     this section is entitled to such leave, subject to the 
     provisions of this section and of the last sentence of 
     section 6323(b) of title 5, and such leave shall be 
     considered leave under section 6323(b) of title 5, United 
     States Code.
       Sec. 8026. None of the funds appropriated by this Act shall 
     be available to perform any cost study pursuant to the 
     provisions of OMB Circular A-76 if the study being performed 
     exceeds a period of 24 months after initiation of such 
     study with respect to a single function activity or 48 
     months after initiation of such study for a multi-function 
     activity.
       Sec. 8027. Funds appropriated by this Act for the American 
     Forces Information Service shall not be used for any national 
     or international political or psychological activities.
       Sec. 8028. Notwithstanding any other provision of law or 
     regulation, the Secretary of Defense may adjust wage rates 
     for civilian employees hired for certain health care 
     occupations as authorized for the Secretary of Veterans 
     Affairs by section 7455 of title 38, United States Code.
       Sec. 8029. None of the funds appropriated or made available 
     in this Act shall be used to reduce or disestablish the 
     operation of the 53rd Weather Reconnaissance Squadron of the 
     Air Force Reserve, if such action would reduce the WC-130 
     Weather Reconnaissance mission below the levels funded in 
     this Act.
       Sec. 8030. (a) Of the funds for the procurement of supplies 
     or services appropriated by this Act, qualified nonprofit 
     agencies for the blind or other severely handicapped shall be 
     afforded the maximum practicable opportunity to participate 
     as subcontractors and suppliers in the performance of 
     contracts let by the Department of Defense.
       (b) During the current fiscal year, a business concern 
     which has negotiated with a military service or defense 
     agency a subcontracting plan for the participation by small 
     business concerns pursuant to section 8(d) of the Small 
     Business Act (15 U.S.C. 637(d)) shall be given credit toward 
     meeting that subcontracting goal for any purchases made from 
     qualified nonprofit agencies for the blind or other severely 
     handicapped.
       (c) For the purpose of this section, the phrase ``qualified 
     nonprofit agency for the blind or other severely 
     handicapped'' means a nonprofit agency for the blind or other 
     severely handicapped that has been approved by the Committee 
     for the Purchase from the Blind and Other Severely 
     Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-
     48).
       Sec. 8031. During the current fiscal year, net receipts 
     pursuant to collections from third party payers pursuant to 
     section 1095 of title 10, United States Code, shall be made 
     available to the local facility of the uniformed services 
     responsible for the collections and shall be over and above 
     the facility's direct budget amount.
       Sec. 8032. During the current fiscal year, the Department 
     of Defense is authorized to incur obligations of not to 
     exceed $350,000,000 for purposes specified in section 
     2350j(c) of title 10, United States Code, in anticipation of 
     receipt of contributions, only from the Government of Kuwait, 
     under that section: Provided, That upon receipt, such 
     contributions from the Government of Kuwait shall be credited 
     to the appropriations or fund which incurred such 
     obligations.
       Sec. 8033. Of the funds made available in this Act, not 
     less than $28,300,000 shall be available for the Civil Air 
     Patrol Corporation, of which $23,497,000 shall be available 
     for Civil Air Patrol Corporation operation and maintenance to 
     support readiness activities which includes $3,800,000 for 
     the Civil Air Patrol counterdrug program: Provided, That 
     funds identified for ``Civil Air Patrol'' under this section 
     are intended for and shall be for the exclusive use of the 
     Civil Air Patrol Corporation and not for the Air Force or any 
     unit thereof.
       Sec. 8034. (a) None of the funds appropriated in this Act 
     are available to establish a new Department of Defense 
     (department) federally funded research and development center 
     (FFRDC), either as a new entity, or as a separate entity 
     administrated by an organization managing another FFRDC, or 
     as a nonprofit membership corporation consisting of a 
     consortium of other FFRDCs and other non-profit entities.
       (b) Limitation on Compensation--Federally Funded Research 
     and Development Center (FFRDC).--No member of a Board of 
     Directors, Trustees, Overseers, Advisory Group, Special 
     Issues Panel, Visiting Committee, or any similar entity of a 
     defense FFRDC, and no paid consultant to any defense FFRDC, 
     except when acting in a technical advisory capacity, may be 
     compensated for his or her services as a member of such 
     entity, or as a paid consultant by more than one FFRDC in a 
     fiscal year: Provided, That a member of any such entity 
     referred to previously in this subsection shall be allowed 
     travel expenses and per diem as authorized under the Federal 
     Joint Travel Regulations, when engaged in the performance of 
     membership duties.
       (c) Notwithstanding any other provision of law, none of the 
     funds available to the department from any source during 
     fiscal year 1999 may be used by a defense FFRDC, through a 
     fee or other payment mechanism, for construction of new 
     buildings, for payment of cost sharing for projects funded by 
     government grants, for absorption of contract overruns, or 
     for certain charitable contributions, not to include employee 
     participation in community service and/or development.
       (d) Notwithstanding any other provision of law, of the 
     funds available to the department during fiscal year 1999, 
     not more than 6,206 staff years of technical effort (staff 
     years) may be funded for defense FFRDCs: Provided, That of 
     the specific amount referred to previously in this 
     subsection, not more than 1,105 staff years may be funded for 
     the defense studies and analysis FFRDCs.
       (e) Within 60 days after enactment of this Act, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report presenting the specific amounts 
     of staff years of technical effort to be allocated by the 
     department for each defense FFRDC during fiscal year 1999: 
     Provided, That, after the submission of the report required 
     by this subsection, the department may not reallocate more 
     than five per centum of an FFRDC's staff years among other 
     defense FFRDCs until 30 days after a detailed justification 
     for any such reallocation is submitted to the congressional 
     defense committees.
       (f) The Secretary of Defense shall, with the submission of 
     the department's fiscal year 2000 budget request, submit a 
     report presenting the specific amounts of staff years of 
     technical effort to be allocated for each defense FFRDC 
     during that fiscal year.
       (g) Notwithstanding any other provision of law, the 
     Secretary of Defense shall control the total number of staff 
     years to be performed by defense FFRDCs during fiscal year 
     1999 so as to reduce the total amounts appropriated in titles 
     II, III, and IV of this Act by $62,000,000: Provided, That 
     the total amounts appropriated in titles II, III, and IV of 
     this Act are hereby reduced by $62,000,000 to reflect savings 
     from the use of defense FFRDCs by the department.
       (h) Notwithstanding any other provision of law, none of the 
     reductions for advisory and assistance services contained in 
     this Act shall be applied to defense FFRDCs.
       Sec. 8035. None of the funds appropriated or made available 
     in this Act shall be used to procure carbon, alloy or armor 
     steel plate for use in any Government-owned facility or 
     property under the control of the Department of Defense which 
     were not melted and rolled in the United States or Canada: 
     Provided, That these procurement restrictions shall apply to 
     any and all Federal Supply Class 9515, American Society of 
     Testing and Materials (ASTM) or American Iron and Steel 
     Institute (AISI) specifications of carbon, alloy or armor 
     steel plate: Provided further, That the Secretary of the 
     military department responsible for the procurement may waive 
     this restriction on a case-by-case basis by certifying in 
     writing to the Committees on Appropriations of the House of 
     Representatives and the Senate that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes: Provided further, That these 
     restrictions shall not apply to contracts which are in 
     being as of the date of enactment of this Act.
       Sec. 8036. For the purposes of this Act, the term 
     ``congressional defense committees'' means the National 
     Security Committee of the House of Representatives, the Armed 
     Services Committee of the Senate, the Subcommittee on Defense 
     of the Committee on Appropriations of the Senate, and the 
     Subcommittee on National Security of the Committee on 
     Appropriations of the House of Representatives.
       Sec. 8037. During the current fiscal year, the Department 
     of Defense may acquire the modification, depot maintenance 
     and repair of aircraft, vehicles and vessels as well as the 
     production of components and other Defense-related articles, 
     through competition between Department of Defense depot 
     maintenance activities and private firms: Provided, That the 
     Senior Acquisition Executive of the military department or 
     defense agency concerned, with power of delegation, shall 
     certify that successful bids include comparable estimates of 
     all direct and indirect costs for both public and private 
     bids: Provided further, That Office of Management and Budget 
     Circular A-76 shall not apply to competitions conducted under 
     this section.
       Sec. 8038. (a)(1) If the Secretary of Defense, after 
     consultation with the United States Trade Representative, 
     determines that a foreign country which is party to an 
     agreement described in paragraph (2) has violated the terms 
     of the agreement by discriminating against certain types of 
     products produced in the United States that are covered by 
     the agreement, the Secretary of Defense shall rescind the 
     Secretary's blanket waiver of the Buy American Act with 
     respect to such types of products produced in that foreign 
     country.
       (2) An agreement referred to in paragraph (1) is any 
     reciprocal defense procurement memorandum of understanding, 
     between the United States and a foreign country pursuant to 
     which the Secretary of Defense has prospectively waived the 
     Buy American Act for certain products in that country.
       (b) The Secretary of Defense shall submit to Congress a 
     report on the amount of Department of Defense purchases from 
     foreign entities in fiscal year 1999. Such report shall 
     separately indicate the dollar value of items for which the 
     Buy American Act was waived pursuant to any agreement 
     described in subsection (a)(2), the Trade Agreement Act of 
     1979 (19 U.S.C. 2501 et seq.), or any international agreement 
     to which the United States is a party.
       (c) For purposes of this section, the term ``Buy American 
     Act'' means title III of the Act entitled ``An Act making 
     appropriations for the Treasury and Post Office Departments 
     for the fiscal

[[Page H8665]]

     year ending June 30, 1934, and for other purposes'', approved 
     March 3, 1933 (41 U.S.C. 10a et seq.).
       Sec. 8039. Appropriations contained in this Act that remain 
     available at the end of the current fiscal year as a result 
     of energy cost savings realized by the Department of Defense 
     shall remain available for obligation for the next fiscal 
     year to the extent, and for the purposes, provided in section 
     2865 of title 10, United States Code.


                     (including transfer of funds)

       Sec. 8040. Amounts deposited during the current fiscal year 
     to the special account established under 40 U.S.C. 485(h)(2) 
     and to the special account established under 10 U.S.C. 
     2667(d)(1) are appropriated and shall be available until 
     transferred by the Secretary of Defense to current applicable 
     appropriations or funds of the Department of Defense under 
     the terms and conditions specified by 40 U.S.C. 485(h)(2)(A) 
     and (B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to 
     be available for the same time period and the same purposes 
     as the appropriation to which transferred.
       Sec. 8041. During the current fiscal year, appropriations 
     available to the Department of Defense may be used to 
     reimburse a member of a reserve component of the Armed Forces 
     who is not otherwise entitled to travel and transportation 
     allowances and who occupies transient government housing 
     while performing active duty for training or inactive duty 
     training: Provided, That such members may be provided lodging 
     in kind if transient government quarters are unavailable as 
     if the member was entitled to such allowances under 
     subsection (a) of section 404 of title 37, United States 
     Code: Provided further, That if lodging in kind is provided, 
     any authorized service charge or cost of such lodging may be 
     paid directly from funds appropriated for operation and 
     maintenance of the reserve component of the member concerned.
       Sec. 8042. The President shall include with each budget for 
     a fiscal year submitted to the Congress under section 1105 of 
     title 31, United States Code, materials that shall identify 
     clearly and separately the amounts requested in the budget 
     for appropriation for that fiscal year for salaries and 
     expenses related to administrative activities of the 
     Department of Defense, the military departments, and the 
     Defense Agencies.
       Sec. 8043. Notwithstanding any other provision of law, 
     funds available for ``Drug Interdiction and Counter-Drug 
     Activities, Defense'' may be obligated for the Young Marines 
     program.
       Sec. 8044. During the current fiscal year, amounts 
     contained in the Department of Defense Overseas Military 
     Facility Investment Recovery Account established by section 
     2921(c)(1) of the National Defense Authorization Act of 1991 
     (Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
     until expended for the payments specified by section 
     2921(c)(2) of that Act: Provided, That none of the funds made 
     available for expenditure under this section may be 
     transferred or obligated until thirty days after the 
     Secretary of Defense submits a report which details the 
     balance available in the Overseas Military Facility 
     Investment Recovery Account, all projected income into the 
     account during fiscal years 1999 and 2000, and the specific 
     expenditures to be made using funds transferred from this 
     account during fiscal year 1999.
       Sec. 8045. Of the funds appropriated or otherwise made 
     available by this Act, not more than $119,200,000 shall be 
     available for payment of the operating costs of NATO 
     Headquarters: Provided, That the Secretary of Defense may 
     waive this section for Department of Defense support provided 
     to NATO forces in and around the former Yugoslavia.
       Sec. 8046. During the current fiscal year, appropriations 
     which are available to the Department of Defense for 
     operation and maintenance may be used to purchase items 
     having an investment item unit cost of not more than 
     $100,000.
       Sec. 8047. (a) During the current fiscal year, none of the 
     appropriations or funds available to the Department of 
     Defense Working Capital Funds shall be used for the purchase 
     of an investment item for the purpose of acquiring a new 
     inventory item for sale or anticipated sale during the 
     current fiscal year or a subsequent fiscal year to customers 
     of the Department of Defense Working Capital Funds if such an 
     item would not have been chargeable to the Department of 
     Defense Business Operations Fund during fiscal year 1994 and 
     if the purchase of such an investment item would be 
     chargeable during the current fiscal year to appropriations 
     made to the Department of Defense for procurement.
       (b) The fiscal year 2000 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 2000 Department of 
     Defense budget shall be prepared and submitted to the 
     Congress on the basis that any equipment which was classified 
     as an end item and funded in a procurement appropriation 
     contained in this Act shall be budgeted for in a proposed 
     fiscal year 2000 procurement appropriation and not in the 
     supply management business area or any other area or category 
     of the Department of Defense Working Capital Funds.
       Sec. 8048. None of the funds appropriated by this Act for 
     programs of the Central Intelligence Agency shall remain 
     available for obligation beyond the current fiscal year, 
     except for funds appropriated for the Reserve for 
     Contingencies, which shall remain available until September 
     30, 2000: Provided, That funds appropriated, transferred, or 
     otherwise credited to the Central Intelligence Agency Central 
     Services Working Capital Fund during this or any prior or 
     subsequent fiscal year shall remain available until expended.
       Sec. 8049. Notwithstanding any other provision of law, 
     funds made available in this Act for the Defense Intelligence 
     Agency may be used for the design, development, and 
     deployment of General Defense Intelligence Program 
     intelligence communications and intelligence information 
     systems for the Services, the Unified and Specified Commands, 
     and the component commands.
       Sec. 8050. Of the funds appropriated by the Department of 
     Defense under the heading ``Operation and Maintenance, 
     Defense-Wide'', not less than $8,000,000 shall be made 
     available only for the mitigation of environmental impacts, 
     including training and technical assistance to tribes, 
     related administrative support, the gathering of information, 
     documenting of environmental damage, and developing a system 
     for prioritization of mitigation and cost to complete 
     estimates for mitigation, on Indian lands resulting from 
     Department of Defense activities.
       Sec. 8051. Amounts collected for the use of the facilities 
     of the National Science Center for Communications and 
     Electronics during the current fiscal year pursuant to 
     section 1459(g) of the Department of Defense Authorization 
     Act, 1986, and deposited to the special account established 
     under subsection 1459(g)(2) of that Act are appropriated and 
     shall be available until expended for the operation and 
     maintenance of the Center as provided for in subsection 
     1459(g)(2).
       Sec. 8052. None of the funds appropriated in this Act may 
     be used to fill the commander's position at any military 
     medical facility with a health care professional unless the 
     prospective candidate can demonstrate professional 
     administrative skills.
       Sec. 8053. (a) None of the funds appropriated in this Act 
     may be expended by an entity of the Department of Defense 
     unless the entity, in expending the funds, complies with the 
     Buy American Act. For purposes of this subsection, the term 
     ``Buy American Act'' means title III of the Act entitled ``An 
     Act making appropriations for the Treasury and Post Office 
     Departments for the fiscal year ending June 30, 1934, and for 
     other purposes'', approved March 3, 1933 (41 U.S.C. 10a et 
     seq.).
       (b) If the Secretary of Defense determines that a person 
     has been convicted of intentionally affixing a label bearing 
     a ``Made in America'' inscription to any product sold in or 
     shipped to the United States that is not made in America, the 
     Secretary shall determine, in accordance with section 2410f 
     of title 10, United States Code, whether the person should be 
     debarred from contracting with the Department of Defense.
       (c) In the case of any equipment or products purchased with 
     appropriations provided under this Act, it is the sense of 
     the Congress that any entity of the Department of Defense, in 
     expending the appropriation, purchase only American-made 
     equipment and products, provided that American-made equipment 
     and products are cost-competitive, quality-competitive, and 
     available in a timely fashion.
       Sec. 8054. None of the funds appropriated by this Act shall 
     be available for a contract for studies, analysis, or 
     consulting services entered into without competition on the 
     basis of an unsolicited proposal unless the head of the 
     activity responsible for the procurement determines--
       (1) as a result of thorough technical evaluation, only one 
     source is found fully qualified to perform the proposed work;
       (2) the purpose of the contract is to explore an 
     unsolicited proposal which offers significant scientific or 
     technological promise, represents the product of original 
     thinking, and was submitted in confidence by one source; or
       (3) the purpose of the contract is to take advantage of 
     unique and significant industrial accomplishment by a 
     specific concern, or to insure that a new product or idea of 
     a specific concern is given financial support:
     Provided, That this limitation shall not apply to contracts 
     in an amount of less than $25,000, contracts related to 
     improvements of equipment that is in development or 
     production, or contracts as to which a civilian official of 
     the Department of Defense, who has been confirmed by the 
     Senate, determines that the award of such contract is in the 
     interest of the national defense.
       Sec. 8055. (a) Except as provided in subsections (b) and 
     (c), none of the funds made available by this Act may be 
     used--
       (1) to establish a field operating agency; or
       (2) to pay the basic pay of a member of the Armed Forces or 
     civilian employee of the department who is transferred or 
     reassigned from a headquarters activity if the member or 
     employee's place of duty remains at the location of that 
     headquarters.
       (b) The Secretary of Defense or Secretary of a military 
     department may waive the limitations in subsection (a), on a 
     case-by-case basis, if the Secretary determines, and 
     certifies to the Committees on Appropriations of the House of 
     Representatives and Senate that the granting of the waiver 
     will reduce the personnel requirements or the financial 
     requirements of the department.
       (c) This section does not apply to field operating agencies 
     funded within the National Foreign Intelligence Program.
       Sec. 8056. Funds appropriated by this Act for intelligence 
     activities are deemed to be specifically authorized by the 
     Congress for purposes of section 504 of the National Security 
     Act of 1947 (50 U.S.C. 414) during fiscal year 1999 until the 
     enactment of the Intelligence Authorization Act for Fiscal 
     Year 1999.
       Sec. 8057. Notwithstanding section 303 of Public Law 96-487 
     or any other provision of law, the Secretary of the Navy is 
     authorized to lease real and personal property at Naval Air 
     Facility, Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for 
     commercial, industrial or other purposes: Provided, That 
     notwithstanding any other provision of law, the Secretary of 
     the Navy may remove hazardous materials from facilities, 
     buildings, and structures at Adak, Alaska, and may demolish 
     or otherwise dispose of such facilities, buildings, and 
     structures.

[[Page H8666]]

                             (RESCISSIONS)

       Sec. 8058. Of the funds provided in Department of Defense 
     Appropriations Acts, the following funds are hereby rescinded 
     as of the date of enactment of this Act from the following 
     accounts and programs in the specified amounts:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1988/2001'':
       TRIDENT ballistic missile submarine program, $3,062,696;
       SSN-688 attack submarine program, $8,146,796;
       CG-47 cruiser program, $4,000,000;
       LSD-41 cargo variant ship program, $256,141;
       LHD-1 amphibious assault ship program, $505,938;
       For craft, outfitting, and post delivery, $3,459,756;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1989/2000'':
       TRIDENT ballistic missile submarine program, $2,750,679;
       SSN-688 attack submarine program, $5,663,109;
       AO conversion program, $881,619;
       T-AGOS surveillance ship program, $1,989,383;
       T-AO fleet oiler program, $3,451,287;
       MHC coastal mine hunter program, $150,000;
       For craft, outfitting, and post delivery, $2,521,413;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1990/2002'':
       TRIDENT ballistic missile submarine program, $6,746,000;
       LSD-41 cargo variant ship program, $8,701,615;
       Aircraft carrier service life extension program, $890,209;
       For craft, outfitting, and post delivery, $2,636,339;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/2001'':
       Service craft program, $143,740;
       LCAC landing craft air cushion program, $126,698;
       For craft, outfitting, and post delivery, $1,549,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1992/2001'':
       For craft, outfitting, and post delivery, $3,307,524;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1993/2002'':
       For craft, outfitting, and post delivery, $4,540,746.
       ``Missile Procurement, Air Force, 1997/1999'', $8,000,000;
       ``Research, Development, Test and Evaluation, Defense-Wide, 
     1997/1998'', $67,000,000;
       ``Missile Procurement, Army, 1998/2000'', $12,800,000;
       ``Procurement of Weapons and Tracked Combat Vehicles, Army, 
     1998/2000''; $6,700,000;
       ``Other Procurement, Army, 1998/2000'', $24,000,000;
       ``Weapons Procurement, Navy, 1998/2000'', $2,000,000;
       ``Procurement of Ammunition, Navy and Marine Corps, 1998/
     2000'', $12,560,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1998/2002'':
       CVN refuelings, $35,000,000;
       ``Other Procurement, Navy, 1998/2000'', $28,500,000;
       ``Aircraft Procurement, Air Force, 1998/2000'', $8,934,000;
       ``Missile Procurement, Air Force, 1998/2000'', $4,200,000;
       ``Procurement of Ammunition, Air Force, 1998/2000'', 
     $14,106,000;
       ``Other Procurement, Air Force, 1998/2000'', $3,508,000;
       ``Research, Development, Test and Evaluation, Navy, 1998/
     1999'', $20,500,000;
       ``Research, Development, Test and Evaluation, Air Force, 
     1998/1999'', $17,620,000;
       ``National Defense Sealift Fund, Public Law 104-208'', 
     $65,000,000; and
       ``National Defense Sealift Fund, Public Law 104-61'', 
     $20,000,000.
       Sec. 8059. None of the funds available in this Act may be 
     used to reduce the authorized positions for military 
     (civilian) technicians of the Army National Guard, the Air 
     National Guard, Army Reserve and Air Force Reserve for the 
     purpose of applying any administratively imposed civilian 
     personnel ceiling, freeze, or reduction on military 
     (civilian) technicians, unless such reductions are a direct 
     result of a reduction in military force structure.
       Sec. 8060. None of the funds appropriated or otherwise made 
     available in this Act may be obligated or expended for 
     assistance to the Democratic People's Republic of North Korea 
     unless specifically appropriated for that purpose.
       Sec. 8061. During the current fiscal year, funds 
     appropriated in this Act are available to compensate members 
     of the National Guard for duty performed pursuant to a plan 
     submitted by a Governor of a State and approved by the 
     Secretary of Defense under section 112 of title 32, United 
     States Code: Provided, That during the performance of such 
     duty, the members of the National Guard shall be under State 
     command and control: Provided further, That such duty shall 
     be treated as full-time National Guard duty for purposes of 
     sections 12602(a)(2) and (b)(2) of title 10, United States 
     Code.
       Sec. 8062. Funds appropriated in this Act for operation and 
     maintenance of the Military Departments, Unified and 
     Specified Commands and Defense Agencies shall be available 
     for reimbursement of pay, allowances and other expenses which 
     would otherwise be incurred against appropriations for the 
     National Guard and Reserve when members of the National Guard 
     and Reserve provide intelligence or counterintelligence 
     support to Unified Commands, Defense Agencies and Joint 
     Intelligence Activities, including the activities and 
     programs included within the National Foreign Intelligence 
     Program (NFIP), the Joint Military Intelligence Program 
     (JMIP), and the Tactical Intelligence and Related Activities 
     (TIARA) aggregate: Provided, That nothing in this section 
     authorizes deviation from established Reserve and National 
     Guard personnel and training procedures.
       Sec. 8063. During the current fiscal year, none of the 
     funds appropriated in this Act may be used to reduce the 
     civilian medical and medical support personnel assigned to 
     military treatment facilities below the September 30, 1998 
     level: Provided, That the Service Surgeons General may waive 
     this section by certifying to the congressional defense 
     committees that the beneficiary population is declining in 
     some catchment areas and civilian strength reductions may be 
     consistent with responsible resource stewardship and 
     capitation-based budgeting.


                     (including transfer of funds)

       Sec. 8064. None of the funds appropriated in this Act may 
     be transferred to or obligated from the Pentagon Reservation 
     Maintenance Revolving Fund, unless the Secretary of Defense 
     certifies that the total cost for the planning, design, 
     construction and installation of equipment for the renovation 
     of the Pentagon Reservation will not exceed $1,118,000,000.
       Sec. 8065. (a) None of the funds available to the 
     Department of Defense for any fiscal year for drug 
     interdiction or counter-drug activities may be transferred to 
     any other department or agency of the United States except as 
     specifically provided in an appropriations law.
       (b) None of the funds available to the Central Intelligence 
     Agency for any fiscal year for drug interdiction and counter-
     drug activities may be transferred to any other department or 
     agency of the United States except as specifically provided 
     in an appropriations law.


                          (transfer of funds)

       Sec. 8066. Appropriations available in this Act under the 
     heading ``Operation and Maintenance, Defense-Wide'' for 
     increasing energy and water efficiency in Federal buildings 
     may, during their period of availability, be transferred to 
     other appropriations or funds of the Department of Defense 
     for projects related to increasing energy and water 
     efficiency, to be merged with and to be available for the 
     same general purposes, and for the same time period, as the 
     appropriation or fund to which transferred.
       Sec. 8067. None of the funds appropriated by this Act may 
     be used for the procurement of ball and roller bearings other 
     than those produced by a domestic source and of domestic 
     origin: Provided, That the Secretary of the military 
     department responsible for such procurement may waive this 
     restriction on a case-by-case basis by certifying in writing 
     to the Committees on Appropriations of the House of 
     Representatives and the Senate, that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes.
       Sec. 8068. Notwithstanding any other provision of law, 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to American Samoa: 
     Provided, That notwithstanding any other provision of law, 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to the Indian Health 
     Service when it is in conjunction with a civil-military 
     project.
       Sec. 8069. None of the funds in this Act may be used to 
     purchase any supercomputer which is not manufactured in the 
     United States, unless the Secretary of Defense certifies to 
     the congressional defense committees that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes that is not available from United States 
     manufacturers.
       Sec. 8070. Notwithstanding any other provision of law, the 
     Naval shipyards of the United States shall be eligible to 
     participate in any manufacturing extension program financed 
     by funds appropriated in this or any other Act.
       Sec. 8071. Notwithstanding any other provision of law, each 
     contract awarded by the Department of Defense during the 
     current fiscal year for construction or service performed in 
     whole or in part in a State which is not contiguous with 
     another State and has an unemployment rate in excess of the 
     national average rate of unemployment as determined by the 
     Secretary of Labor, shall include a provision requiring the 
     contractor to employ, for the purpose of performing that 
     portion of the contract in such State that is not contiguous 
     with another State, individuals who are residents of such 
     State and who, in the case of any craft or trade, possess or 
     would be able to acquire promptly the necessary skills: 
     Provided, That the Secretary of Defense may waive the 
     requirements of this section, on a case-by-case basis, in the 
     interest of national security.
       Sec. 8072. During the current fiscal year, the Army shall 
     use the former George Air Force Base as the airhead for the 
     National Training Center at Fort Irwin: Provided, That none 
     of the funds in this Act shall be obligated or expended to 
     transport Army personnel into Edwards Air Force Base for 
     training rotations at the National Training Center.
       Sec. 8073. (a) The Secretary of Defense shall submit, on a 
     quarterly basis, a report to the congressional defense 
     committees, the Committee on International Relations of the 
     House of Representatives and the Committee on Foreign 
     Relations of the Senate setting forth all costs (including 
     incremental costs) incurred by the Department of Defense 
     during the preceding quarter in implementing or supporting 
     resolutions of the United Nations Security Council, including 
     any such resolution calling for international sanctions, 
     international peacekeeping operations, and humanitarian 
     missions undertaken by the Department of Defense. The 
     quarterly report shall include an aggregate of all such 
     Department of Defense costs by operation or mission.

[[Page H8667]]

       (b) The Secretary of Defense shall detail in the quarterly 
     reports all efforts made to seek credit against past United 
     Nations expenditures and all efforts made to seek 
     compensation from the United Nations for costs incurred by 
     the Department of Defense in implementing and supporting 
     United Nations activities.
       Sec. 8074. (a) Limitation on Transfer of Defense Articles 
     and Services.--Notwithstanding any other provision of law, 
     none of the funds available to the Department of Defense for 
     the current fiscal year may be obligated or expended to 
     transfer to another nation or an international organization 
     any defense articles or services (other than intelligence 
     services) for use in the activities described in subsection 
     (b) unless the congressional defense committees, the 
     Committee on International Relations of the House of 
     Representatives, and the Committee on Foreign Relations of 
     the Senate are notified 15 days in advance of such transfer.
       (b) Covered Activities.--This section applies to--
       (1) any international peacekeeping or peace-enforcement 
     operation under the authority of chapter VI or chapter VII of 
     the United Nations Charter under the authority of a United 
     Nations Security Council resolution; and
       (2) any other international peacekeeping, peace-
     enforcement, or humanitarian assistance operation.
       (c) Required Notice.--A notice under subsection (a) shall 
     include the following:
       (1) A description of the equipment, supplies, or services 
     to be transferred.
       (2) A statement of the value of the equipment, supplies, or 
     services to be transferred.
       (3) In the case of a proposed transfer of equipment or 
     supplies--
        (A) a statement of whether the inventory requirements of 
     all elements of the Armed Forces (including the reserve 
     components) for the type of equipment or supplies to be 
     transferred have been met; and
        (B) a statement of whether the items proposed to be 
     transferred will have to be replaced and, if so, how the 
     President proposes to provide funds for such replacement.
       Sec. 8075. To the extent authorized by subchapter VI of 
     chapter 148 of title 10, United States Code, the Secretary of 
     Defense shall issue loan guarantees in support of United 
     States defense exports not otherwise provided for: Provided, 
     That the total contingent liability of the United States for 
     guarantees issued under the authority of this section may not 
     exceed $15,000,000,000: Provided further, That the exposure 
     fees charged and collected by the Secretary for each 
     guarantee, shall be paid by the country involved and shall 
     not be financed as part of a loan guaranteed by the United 
     States: Provided further, That the Secretary shall provide 
     quarterly reports to the Committees on Appropriations, Armed 
     Services and Foreign Relations of the Senate and the 
     Committees on Appropriations, National Security and 
     International Relations in the House of Representatives on 
     the implementation of this program: Provided further, That 
     amounts charged for administrative fees and deposited to the 
     special account provided for under section 2540c(d) of title 
     10, shall be available for paying the costs of administrative 
     expenses of the Department of Defense that are attributable 
     to the loan guarantee program under subchapter VI of chapter 
     148 of title 10.
       Sec. 8076. None of the funds available to the Department of 
     Defense shall be obligated or expended to make a financial 
     contribution to the United Nations for the cost of an United 
     Nations peacekeeping activity (whether pursuant to assessment 
     or a voluntary contribution) or for payment of any United 
     States arrearage to the United Nations.
       Sec. 8077. None of the funds available to the Department of 
     Defense under this Act shall be obligated or expended to pay 
     a contractor under a contract with the Department of Defense 
     for costs of any amount paid by the contractor to an employee 
     when--
       (1) such costs are for a bonus or otherwise in excess of 
     the normal salary paid by the contractor to the employee; and
       (2) such bonus is part of restructuring costs associated 
     with a business combination.
       Sec. 8078. (a) None of the funds appropriated or otherwise 
     made available in this Act may be used to transport or 
     provide for the transportation of chemical munitions or 
     agents to the Johnston Atoll for the purpose of storing or 
     demilitarizing such munitions or agents.
       (b) The prohibition in subsection (a) shall not apply to 
     any obsolete World War II chemical munition or agent of the 
     United States found in the World War II Pacific Theater of 
     Operations.
       (c) The President may suspend the application of subsection 
     (a) during a period of war in which the United States is a 
     party.
       Sec. 8079. None of the funds provided in title II of this 
     Act for ``Former Soviet Union Threat Reduction'' may be 
     obligated or expended to finance housing for any individual 
     who was a member of the military forces of the Soviet Union 
     or for any individual who is or was a member of the military 
     forces of the Russian Federation.


                     (including transfer of funds)

       Sec. 8080. During the current fiscal year, no more than 
     $10,000,000 of appropriations made in this Act under the 
     heading ``Operation and Maintenance, Defense-Wide'' may be 
     transferred to appropriations available for the pay of 
     military personnel, to be merged with, and to be available 
     for the same time period as the appropriations to which 
     transferred, to be used in support of such personnel in 
     connection with support and services for eligible 
     organizations and activities outside the Department of 
     Defense pursuant to section 2012 of title 10, United States 
     Code.
       Sec. 8081. For purposes of section 1553(b) of title 31, 
     United States Code, any subdivision of appropriations made in 
     this Act under the heading ``Shipbuilding and Conversion, 
     Navy'' shall be considered to be for the same purpose as any 
     subdivision under the heading ``Shipbuilding and Conversion, 
     Navy'' appropriations in any prior year, and the 1 percent 
     limitation shall apply to the total amount of the 
     appropriation.
       Sec. 8082. During the current fiscal year, in the case of 
     an appropriation account of the Department of Defense for 
     which the period of availability for obligation has expired 
     or which has closed under the provisions of section 1552 of 
     title 31, United States Code, and which has a negative 
     unliquidated or unexpended balance, an obligation or an 
     adjustment of an obligation may be charged to any current 
     appropriation account for the same purpose as the expired or 
     closed account if--
       (1) the obligation would have been properly chargeable 
     (except as to amount) to the expired or closed account before 
     the end of the period of availability or closing of that 
     account;
       (2) the obligation is not otherwise properly chargeable to 
     any current appropriation account of the Department of 
     Defense; and
       (3) in the case of an expired account, the obligation is 
     not chargeable to a current appropriation of the Department 
     of Defense under the provisions of section 1405(b)(8) of the 
     National Defense Authorization Act for Fiscal Year 1991, 
     Public Law 101-510, as amended (31 U.S.C. 1551 note): 
     Provided, That in the case of an expired account, if 
     subsequent review or investigation discloses that there was 
     not in fact a negative unliquidated or unexpended balance in 
     the account, any charge to a current account under the 
     authority of this section shall be reversed and recorded 
     against the expired account: Provided further, That the total 
     amount charged to a current appropriation under this section 
     may not exceed an amount equal to 1 percent of the total 
     appropriation for that account.


                          (TRANSFER OF FUNDS)

       Sec. 8083. Upon enactment of this Act, the Secretary of 
     Defense shall make the following transfers of funds: 
     Provided, That the amounts transferred shall be available for 
     the same purposes as the appropriations to which transferred, 
     and for the same time period as the appropriation from which 
     transferred: Provided further, That the amounts shall be 
     transferred between the following appropriations in the 
     amount specified:
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1988/2001'':
       Trident ballistic missile submarine program, $2,674,000;
       SSN-688 attack submarine program, $32,232,000;
       CG-47 cruiser program, $10,886,000;
       Carrier replacement program, $40,360,000;
       LHD-1 amphibious assault ship program, $3,001,000;
       LSD-41 cargo variant ship program, $790,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1995/2001'':
       Carrier replacement program, $89,943,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1989/2000'':
       Trident ballistic missile submarine program, $3,028,000;
       LHD-1 amphibious assault ship program, $2,153,000;
       MHC coastal minehunter program, $1,298,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1995/2000'':
       Carrier replacement program, $6,479,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1990/2002'':
       Trident ballistic missile submarine program, $10,796,000;
       SSN-688 attack submarine program, $1,000,000;
       DDG-51 destroyer program, $5,066,000;
       LCAC landing craft, air cushioned program, $509,000;
       MCM mine countermeasures ship program, $1,200,000;
       AOE combat support ship program, $1,674,000;
       AO(J) jumboized oiler program, $1,899,000;
       Oceanographic research program, $394,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1995/2002'':
       Carrier replacement program, $22,538,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/2001'':
       DDG-51 destroyer program, $1,500,000;
       LHD-1 amphibious assault ship program, $7,500,000;
       LSD-41 cargo variant ship program, $1,227,000;
       LCAC landing craft, air cushioned program, $392,000;
       MHC coastal minehunter program, $2,400,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/2001'':
       SSN-21 attack submarine program, $13,019,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1992/2001'':
       Prior year escalation, $52,934,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/2001'':
       SSN-21 attack submarine program, $16,967,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1994/2001'':
       MCS(C) mine warfare command and control ship program, 
     $5,729,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1995/2001'':
       DDG-51 destroyer program, $24,261,000;
       Carrier replacement program, $5,977,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1993/2002'':

[[Page H8668]]

       AOE combat support ship program, $7,753,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1995/2002'':
       DDG-51 destroyer program, $7,753,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1996/2000'':
       SSN-21 attack submarine program, $26,526,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1995/2000'':
       DDG-51 destroyer program, $368,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1996/2000'':
       DDG-51 destroyer program, $2,756,000;
       LHD-1 amphibious assault ship program, $21,850,000;
       Fast Patrol craft program, $345,000;
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1997/2000'':
       AGOR SWATH oceanographic research program, $1,207,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1998/2002'':
       DDG-51(AP) destroyer program, $9,009,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1998/2002'':
       DDG-51 destroyer program, $9,009,000.
       Sec. 8084. The Under Secretary of Defense (Comptroller) 
     shall submit to the congressional defense committees by 
     February 1, 1999 a detailed report identifying, by amount and 
     by separate budget activity, activity group, subactivity 
     group, line item, program element, program, project, 
     subproject, and activity, any activity for which the fiscal 
     year 2000 budget request was reduced because Congress 
     appropriated funds above the President's budget request for 
     that specific activity for fiscal year 1999.
       Sec. 8085. Funds appropriated in title II of this Act for 
     supervision and administration costs for facilities 
     maintenance and repair, minor construction, or design 
     projects may be obligated at the time the reimbursable order 
     is accepted by the performing activity: Provided, That for 
     the purpose of this section, supervision and administration 
     costs includes all in-house Government cost.
       Sec. 8086. The Secretary of Defense may waive reimbursement 
     of the cost of conferences, seminars, courses of instruction, 
     or similar educational activities of the Asia-Pacific Center 
     for Security Studies for military officers and civilian 
     officials of foreign nations if the Secretary determines that 
     attendance by such personnel, without reimbursement, is in 
     the national security interest of the United States: 
     Provided, That costs for which reimbursement is waived 
     pursuant to this subsection shall be paid from appropriations 
     available for the Asia-Pacific Center.
       Sec. 8087. (a) Notwithstanding any other provision of law, 
     the Chief of the National Guard Bureau may permit the use of 
     equipment of the National Guard Distance Learning Project by 
     any person or entity on a space-available, reimbursable 
     basis. The Chief of the National Guard Bureau shall establish 
     the amount of reimbursement for such use on a case-by-case 
     basis.
       (b) Amounts collected under subsection (a) shall be 
     credited to funds available for the National Guard Distance 
     Learning Project and be available to defray the costs 
     associated with the use of equipment of the project under 
     that subsection. Such funds shall be available for such 
     purposes without fiscal year limitation.
       Sec. 8088. Using funds available by this Act or any other 
     Act, the Secretary of the Air Force, pursuant to a 
     determination under section 2690 of title 10, United States 
     Code, may implement cost-effective agreements for required 
     heating facility modernization in the Kaiserslautern Military 
     Community in the Federal Republic of Germany: Provided, That 
     in the City of Kaiserslautern such agreements will include 
     the use of United States anthracite as the base load energy 
     for municipal district heat to the United States Defense 
     installations: Provided further, That at Landstuhl Army 
     Regional Medical Center and Ramstein Air Base, furnished heat 
     may be obtained from private, regional or municipal services, 
     if provisions are included for the consideration of United 
     States coal as an energy source.
       Sec. 8089. During the current fiscal year, the amounts 
     which are necessary for the operation and maintenance of the 
     Fisher Houses administered by the Departments of the Army, 
     the Navy, and the Air Force are hereby appropriated, to be 
     derived from amounts which are available in the applicable 
     Fisher House trust fund established under 10 U.S.C. 2221 for 
     the Fisher Houses of each such department.
       Sec. 8090. During the current fiscal year, refunds 
     attributable to the use of the Government travel card by 
     military personnel and civilian employees of the Department 
     of Defense and refunds attributable to official Government 
     travel arranged by Government Contracted Travel Management 
     Centers may be credited to operation and maintenance accounts 
     of the Department of Defense which are current when the 
     refunds are received.
       Sec. 8091. During the current fiscal year, not more than a 
     total of $60,000,000 in withdrawal credits may be made by the 
     Marine Corps Supply Management activity group of the Navy 
     Working Capital Fund, Department of Defense Working Capital 
     Funds, to the credit of current applicable appropriations of 
     a Department of Defense activity in connection with the 
     acquisition of critical low density repairables that are 
     capitalized into the Navy Working Capital Fund.
       Sec. 8092. Notwithstanding 31 U.S.C. 3902, during the 
     current fiscal year interest penalties may be paid by the 
     Department of Defense from funds financing the operation of 
     the military department or defense agency with which the 
     invoice or contract payment is associated.
       Sec. 8093. At the time the President submits his budget for 
     fiscal year 2000 and any fiscal year thereafter, the 
     Department of Defense shall transmit to the congressional 
     defense committees a budget justification document for the 
     active and reserve Military Personnel accounts, to be known 
     as the ``M-1'', which shall identify, at the budget activity, 
     activity group, and subactivity group level, the amounts 
     requested by the President to be appropriated to the 
     Department of Defense for military personnel in any budget 
     request, or amended budget request, for that fiscal year.
       Sec. 8094. None of the funds appropriated in title IV of 
     this Act may be used to procure end-items for delivery to 
     military forces for operational training, operational use or 
     inventory requirements: Provided, That this restriction does 
     not apply to end-items used in development, prototyping, and 
     test activities preceding and leading to acceptance for 
     operational use: Provided further, That this restriction 
     does not apply to programs funded within the National 
     Foreign Intelligence Program: Provided further, That the 
     Secretary of Defense may waive this restriction on a case-
     by-case basis by certifying in writing to the Committees 
     on Appropriations of the House of Representatives and the 
     Senate that it is in the national security interest to do 
     so.
       Sec. 8095. The budget of the President for fiscal year 2000 
     submitted to Congress pursuant to section 1105 of title 31, 
     United States Code, and each annual budget request 
     thereafter, shall include budget activity groups (known as 
     ``subactivities'') in all appropriations accounts provided in 
     this Act, as may be necessary, to separately identify all 
     costs incurred by the Department of Defense to support the 
     North Atlantic Treaty Organization and all Partnership For 
     Peace programs and initiatives. The budget justification 
     materials submitted to Congress in support of the budget of 
     the Department of Defense for fiscal year 2000, and 
     subsequent fiscal years, shall provide complete, detailed 
     estimates for all such costs.
       Sec. 8096. None of the funds made available in this Act may 
     be obligated or expended to enter into or renew a contract 
     with a contractor that is subject to the reporting 
     requirement set forth in subsection (d) of section 4212 of 
     title 38, United States Code, but has not submitted the most 
     recent report required by such subsection for 1998 or a 
     subsequent year.
       Sec. 8097. None of the funds made available in this Act may 
     be used to approve or license the sale of the F-22 advanced 
     tactical fighter to any foreign government.
       Sec. 8098. None of the funds appropriated or otherwise made 
     available by this Act may be made available for the United 
     States Man and the Biosphere Program, or related projects.
       Sec. 8099. (a) The Secretary of Defense may, on a case-by-
     case basis, waive with respect to a foreign country each 
     limitation on the procurement of defense items from foreign 
     sources provided in law if the Secretary determines that the 
     application of the limitation with respect to that country 
     would invalidate cooperative programs entered into between 
     the Department of Defense and the foreign country, or would 
     invalidate reciprocal trade agreements for the procurement of 
     defense items entered into under section 2531 of title 10, 
     United States Code, and the country does not discriminate 
     against the same or similar defense items produced in the 
     United States for that country.
       (b) Subsection (a) applies with respect to--
       (1) contracts and subcontracts entered into on or after the 
     date of the enactment of this Act; and
       (2) options for the procurement of items that are exercised 
     after such date under contracts that are entered into before 
     such date if the option prices are adjusted for any reason 
     other than the application of a waiver granted under 
     subsection (a).
       (c) Subsection (a) does not apply to a limitation regarding 
     construction of public vessels, ball and roller bearings, 
     food, and clothing or textile materials as defined by section 
     11 (chapters 50-65) of the Harmonized Tariff Schedule and 
     products classified under headings 4010, 4202, 4203, 6401 
     through 6406, 6505, 7019, 7218 through 7229, 7304.41 through 
     7304.49, 7306.40, 7502 through 7508, 8105, 8108, 8109, 8211, 
     8215, and 9404.
       Sec. 8100. Notwithstanding 31 U.S.C. 1552(a), of the funds 
     provided in Department of Defense Appropriations Acts, not 
     more than the specified amounts from the following accounts 
     shall remain available for the payment of satellite on-orbit 
     incentive fees until the fees are paid:
       ``Missile Procurement, Air Force, 1995/1997'', $20,978,000; 
     and
       ``Missile Procurement, Air Force, 1996/1998'', $16,782,400.
       Sec. 8101. None of the funds in this Act may be used by the 
     National Imagery and Mapping Agency for mapping, charting, 
     and geodesy activities unless contracts for such services are 
     awarded in accordance with the qualifications based selection 
     process in 40 U.S.C. 541 et seq. and 10 U.S.C. 2855: 
     Provided, That such agency may continue to fund existing 
     contracts for such services for not more than 180 days from 
     the date of enactment of this Act: Provided further, That an 
     exception shall be provided for such services that are 
     critical to national security after a written notification 
     has been submitted by the Deputy Secretary of Defense to the 
     Committees on Appropriations of the House of Representatives 
     and the Senate.
       Sec. 8102. Funds made available to the Civil Air Patrol in 
     this Act under the heading ``Drug Interdiction and Counter-
     Drug Activities, Defense'' may be used for the Civil Air 
     Patrol Corporation's counterdrug program, including its 
     demand reduction program involving youth programs, as well as 
     operational and training drug reconnaissance missions for 
     federal, state and

[[Page H8669]]

     local government agencies; for administrative costs, 
     including the hiring of Civil Air Patrol Corporation 
     employees; for travel and per diem expenses of Civil Air 
     Patrol Corporation personnel in support of those missions; 
     and for equipment needed for mission support or performance: 
     Provided, That of these funds, $300,000 shall be made 
     available to establish and operate a distance learning 
     program: Provided further, That the Department of the Air 
     Force should waive reimbursement from the Federal, State and 
     local government agencies for the use of these funds.
       Sec. 8103. During fiscal year 1999, advance billing for 
     services provided or work performed by the Working Capital 
     Fund activities of the Department of the Air Force in excess 
     of $100,000,000 is prohibited.
       Sec. 8104. The Secretary of Defense shall undertake a 
     review of all distributed learning education and training 
     programs in the Department of Defense and shall issue a plan 
     to implement a department-wide, standardized, cost-effective 
     Advanced Distributed Learning framework to achieve the goals 
     of commonality, interoperability, and reuse: Provided, That 
     the Secretary shall report to Congress on the results of this 
     review and present a detailed implementation and budget plan 
     no later than July 30, 1999.
       Sec. 8105. Notwithstanding any other provision in this Act, 
     the total amount appropriated in title II is hereby reduced 
     by $70,000,000 to reflect savings resulting from 
     consolidations and personnel reductions as mandated in the 
     Defense Reform Initiative.
       Sec. 8106. The Secretary of Defense shall submit to the 
     congressional defense committees an in-depth analysis 
     comparing the cost of any proposed establishment or expansion 
     of depot facilities by the Reserve Components to the cost of 
     performing the same work at existing depot facilities or by 
     the private sector: Provided, That for purposes of this 
     section, the term ``depot level maintenance'' does not 
     include General Support Level maintenance activities, 
     Intermediate Level maintenance activities, or lower echelon 
     maintenance activities.
       Sec. 8107. Notwithstanding any other provision of law, the 
     TRICARE managed care support contracts in effect, or in final 
     stages of acquisition as of September 30, 1998, may be 
     extended for two years: Provided, That any such extension may 
     only take place if the Secretary of Defense determines that 
     it is in the best interest of the government: Provided 
     further, That any contract extension shall be based on the 
     price in the final best and final offer for the last year of 
     the existing contract as adjusted for inflation and other 
     factors mutually agreed to by the contractor and the 
     government: Provided further, That notwithstanding any other 
     provision of law, all future TRICARE managed care support 
     contracts replacing contracts in effect, or in the final 
     stages of acquisition as of September 30, 1998, may include a 
     base contract period for transition and up to seven one-year 
     option periods.
       Sec. 8108. Notwithstanding any other provision in this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $400,600,000 to reflect savings from revised economic 
     assumptions, to be distributed as follows:
       ``Operation and Maintenance, Army'', $24,000,000;
       ``Operation and Maintenance, Navy'', $32,000,000;
       ``Operation and Maintenance, Marine Corps'', $4,000,000;
       ``Operation and Maintenance, Air Force'', $31,000,000;
       ``Operation and Maintenance, Defense-Wide'', $17,600,000;
       ``Operation and Maintenance, Army Reserve'', $2,000,000;
       ``Operation and Maintenance, Navy Reserve'', $2,000,000;
       ``Operation and Maintenance, Air Force Reserve'', 
     $2,000,000;
       ``Operation and Maintenance, Army National Guard'', 
     $4,000,000;
       ``Operation and Maintenance, Air National Guard'', 
     $4,000,000;
       ``Drug Interdiction and Counter-Drug Activities, Defense'', 
     $2,000,000;
       ``Environmental Restoration, Army'', $1,000,000;
       ``Environmental Restoration, Navy'', $1,000,000;
       ``Environmental Restoration, Air Force'', $1,000,000;
       ``Environmental Restoration, Defense-Wide'', $1,000,000;
       ``Defense Health Program'', $36,000,000;
       ``Aircraft Procurement, Army'', $4,000,000;
       ``Missile Procurement, Army'', $4,000,000;
       ``Procurement of Weapons and Tracked Combat Vehicles, 
     Army'', $4,000,000;
       ``Procurement of Ammunition, Army'', $3,000,000;
       ``Other Procurement, Army'', $9,000,000;
       ``Aircraft Procurement, Navy'', $22,000,000;
       ``Weapons Procurement, Navy'', $4,000,000;
       ``Procurement of Ammunition, Navy and Marine Corps'', 
     $1,000,000;
       ``Shipbuilding and Conversion, Navy'', $18,000,000;
       ``Other Procurement, Navy'', $12,000,000;
       ``Procurement, Marine Corps'', $2,000,000;
       ``Aircraft Procurement, Air Force'', $23,000,000;
       ``Missile Procurement, Air Force'', $7,000,000;
       ``Procurement of Ammunition, Air Force'', $1,000,000;
       ``Other Procurement, Air Force'', $17,500,000;
       ``Procurement, Defense-Wide'', $5,800,000;
       ``Chemical Agents and Munitions Destruction, Army'', 
     $3,000,000;
       ``Research, Development, Test and Evaluation, Army'', 
     $10,000,000;
       ``Research, Development, Test and Evaluation, Navy'', 
     $20,000,000;
       ``Research, Development, Test and Evaluation, Air Force'', 
     $39,000,000; and
       ``Research, Development, Test and Evaluation, Defense-
     Wide'', $26,700,000:
     Provided, That these reductions shall be applied 
     proportionally to each budget activity, activity group and 
     subactivity group and each program, project, and activity 
     within each appropriation account.
       Sec. 8109. (a) Disposal of Certain Materials in National 
     Defense Stockpile.--Subject to subsection (c), the President 
     shall dispose of materials contained in the National Defense 
     Stockpile and specified in the table in subsection (b) so as 
     to result in receipts to the United States in the amount of 
     $100,000,000 by the end of fiscal year 1999.
       (b) Disposal Quantities.--The total quantities of materials 
     authorized for disposal by the President under subsection (a) 
     may not exceed the amounts set forth in the following table:


                     Authorized Stockpile Disposals
------------------------------------------------------------------------
   Material for disposal                              Quantity
------------------------------------------------------------------------
Beryllium Metal...........................  20 short tons
Chromium Ferroalloy.......................  25,000 short tons
Columbium Carbide Powder..................  21,372 pounds of contained
                                             Columbium
Diamond, Stones...........................  600,000 carats
Platinum..................................  100,000 troy ounces
Platinum--Palladium.......................  150,000 troy ounces
Tantalum Carbide Powder...................  22,688 pounds of contained
                                             Tantalum
Tantalum Metal Ingots.....................  25,000 pounds of contained
                                             Tantalum
Tantalum Metal Powder.....................  25,000 pounds of contained
                                             Tantalum
------------------------------------------------------------------------

       (c) Minimization of Disruption and Loss.--The President may 
     not dispose of materials 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 the materials proposed for 
     disposal; 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 a result of the disposal of 
     materials authorized for disposal under subsection (a) shall 
     be deposited into the general fund of the Treasury.
       (e) Relationship to Other Disposal Authority.--(1) 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 the 
     materials specified in such subsection.
       (2) The disposal authority provided in subsection (a) is 
     referred to in section 3303 of the National Defense 
     Authorization Act for Fiscal Year 1999, and the quantities of 
     the materials specified in the table in subsection (b) are 
     included in the quantities specified in the table in 
     subsection (b) of such section 3303.
       (f) Definition.--In this section, 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).
       Sec. 8110. (a) Transfers of Vessels by Grant.--The 
     Secretary of the Navy is authorized to transfer vessels to 
     foreign countries on a grant basis under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:
       (1) To the Government of Argentina, the NEWPORT class tank 
     landing ship NEWPORT (LST 1179).
       (2) To the Government of Greece--
       (A) the KNOX class frigate HEPBURN (FF 1055); and
       (B) the ADAMS class guided missile destroyers STRAUSS (DDG 
     16), SEMMS (DDG 18), and WADDELL (DDG 24).
       (3) To the Government of Portugal, the STALWART class ocean 
     surveillance ship ASSURANCE (T-AGOS 5).
       (4) To the Government of Turkey, the KNOX class frigates 
     PAUL (FF 1080), MILLER (FF 1091), and W.S. SIMMS (FF 1059).
       (b) Transfers of Vessels by Sale.--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 NEWPORT class tank 
     landing ships CAYUGA (LST 1186) and PEORIA (LST 1183).
       (2) To the Government of Chile--
       (A) the NEWPORT class tank landing ship SAN BERNARDINO (LST 
     1189); and
       (B) the auxiliary repair dry dock WATERFORD (ARD 5).
       (3) To the Government of Greece--
       (A) the OAK RIDGE class medium dry dock ALAMAGORDO (ARDM 
     2); and
       (B) the KNOX class frigates VREELAND (FF 1068) and TRIPPE 
     (FF 1075).
       (4) To the Government of Mexico--
       (A) the auxiliary repair dock SAN ONOFRE (ARD 30); and
       (B) the KNOX class frigate PHARRIS (FF 1094).
       (5) To the Government of the Philippines, the STALWART 
     class ocean surveillance ship TRIUMPH (T-AGOS 4).
       (6) To the Government of Spain, the NEWPORT class tank 
     landing ships HARLAN COUNTY (LST 1196) and BARNSTABLE COUNTY 
     (LST 1197).
       (7) To the Taipai 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)--

[[Page H8670]]

       (A) the KNOX class frigates PEARY (FF 1073), JOSEPH HEWES 
     (FF 1078), COOK (FF 1083), BREWTON (FF 1086), KIRK (FF 1987), 
     and BARBEY (FF 1088);
       (B) the NEWPORT class tank landing ships MANITOWOC (LST 
     1180) and SUMTER (LST 1181);
       (C) the floating dry dock COMPETENT (AFDM 6); and
       (D) the ANCHORAGE class dock landing ship PENSACOLA (LSD 
     38).
       (8) To the Government of Turkey--
       (A) the OLIVER HAZARD PERRY class guided missile frigates 
     MAHLON S. TISDALE (FFG 27), REID (FFG 30), and DUNCAN (FFG 
     10); and
       (B) the KNOX class frigates REASONER (FF 1063), FANNING (FF 
     1076), BOWEN (FF 1079), MCCANDLESS (FF 1084), DONALD BEARY 
     (FF 1085), AINSWORTH (FF 1090), THOMAS C. HART (FF 1092), and 
     CAPODANNO (FF 1093).
       (9) To the Government of Venezuela, the medium auxiliary 
     floating dry dock bearing hull number AFDM 2.
       (c) Transfers of Vessels on a Combined Lease-Sale Basis.--
     The Secretary of the Navy is authorized to transfer vessels 
     to foreign countries on a combined lease-sale basis under 
     sections 61 and 21 of the Arms Export Control Act (22 U.S.C. 
     2796, 2761) and in accordance with subsection (d) as follows:
       (1) To the Government of Brazil, the CIMARRON class oiler 
     MERRIMACK (AO 179).
       (2) To the Government of Greece, the KIDD class guided 
     missile destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT 
     (DDG 995), and CHANDLER (DDG 996).
       (d) Conditions Relating To Combined Lease-Sale Transfers.--
     A transfer of a vessel on a combined lease-sale basis 
     authorized by subsection (c) shall be made in accordance with 
     the following requirements:
       (1) The Secretary may initially transfer the vessel by 
     lease, with lease payments suspended for the term of the 
     lease, if the country entering into the lease for the vessel 
     simultaneously enters into a foreign military sales agreement 
     for the transfer of title to the vessel.
       (2) The Secretary may not deliver to the purchasing country 
     title to the vessel until the purchase price of the vessel 
     under such a foreign military sales agreement is paid in 
     full.
       (3) Upon payment of the purchase price in full under such a 
     sales agreement and delivery of title to the recipient 
     country, the Secretary shall terminate the lease.
       (4) If the purchasing country fails to make full payment of 
     the purchase price in accordance with the sales agreement by 
     the date required under the sales agreement--
       (A) the sales agreement shall be immediately terminated;
       (B) the suspension of lease payments under the lease shall 
     be vacated; and
       (C) the United States shall be entitled to retain all funds 
     received on or before the date of the termination under the 
     sales agreement, up to the amount of the lease payments due 
     and payable under the lease and all other costs required by 
     the lease to be paid to that date.
       (5) If a sales agreement is terminated pursuant to 
     paragraph (4), the United States shall not be required to pay 
     any interest to the recipient country on any amount paid to 
     the United States by the recipient country under the sales 
     agreement and not retained by the United States under the 
     lease.
       (e) Funding for Certain Costs of Transfers.--There is 
     established in the Treasury of the United States a special 
     account to be known as the Defense Vessels Transfer Program 
     Account. There is hereby appropriated into that account such 
     sums as may be necessary for the costs (as defined in section 
     502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a)) 
     of the lease-sale transfers authorized by subsection (c). 
     Funds in that account are available only for the purpose of 
     covering those costs.
       (f) Notification of Congress.--Not later than 30 days after 
     the date of the enactment of this Act, the Secretary of the 
     Navy shall submit to Congress, for each naval vessel that is 
     to be transferred under this section before January 1, 1999, 
     the notifications required under section 516 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321j) and section 525 of 
     the Foreign Operations, Export Financing, and Related 
     Programs Appropriations Act, 1998 (Public Law 105-118; 111 
     Stat. 2413).
       (g) Grants not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of a vessel transferred 
     to another country on a grant basis under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to 
     authority provided by subsection (a) shall not be counted for 
     the purposes of subsection (g) of that section in the 
     aggregate value of excess defense articles transferred to 
     countries under that section in any fiscal year.
       (h) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by this 
     section shall be charged to the recipient (notwithstanding 
     section 516(e)(1) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321j(e)(1)) in the case of a transfer authorized to 
     be made on a grant basis under subsection (a)).
       (i) 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.
       (j) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the two-
     year period beginning on the date of the enactment of this 
     Act.
       Sec. 8111. None of the funds in this Act may be used to 
     compensate an employee of the Department of Defense who 
     initiates a new start program without notification to the 
     Office of the Secretary of Defense and the congressional 
     defense committees, as required by Department of Defense 
     financial management regulations.
       Sec. 8112. None of the funds made available by this Act 
     shall be used by the Army to reduce civilian personnel 
     workforce levels at United States Army, Pacific (USARPAC) 
     bases and at Major Range and Test Facility Bases (MRTFBs) in 
     the United States in fiscal year 1999 below levels assumed in 
     this Act unless the Secretary of the Army notifies the 
     Congressional defense committees not less than 30 days prior 
     to implementation of any civilian personnel workforce 
     reductions.


                     (including transfer of funds)

       Sec. 8113. Of the funds made available under title II of 
     this Act, the following amounts shall be transferred to the 
     Defense Working Capital Funds for the purpose of funding 
     operations of the Defense Commissary Agency:
       ``Operation and Maintenance, Army'', $338,400,000;
       ``Operation and Maintenance, Navy'', $255,000,000;
       ``Operation and Maintenance, Marine Corps'', $86,600,000; 
     and
       ``Operation and Maintenance, Air Force'', $302,071,000:

     Provided, That the transfer authority provided in this 
     section is in addition to any other transfer authority 
     contained elsewhere in this Act.
       Sec. 8114. Of the amounts made available in title II of 
     this Act under the heading ``Operation and Maintenance, 
     Navy'', $20,000,000 is available only for emergency and 
     extraordinary expenses associated with the accident involving 
     a United States Marine Corps A-6 aircraft on February 3, 
     1998, near Cavalese, Italy: Provided, That these funds shall 
     remain available until expended: Provided further, That 
     notwithstanding any other provision of law, the funds made 
     available by this section may be available for payments to 
     persons, communities, or other entities in Italy for 
     reimbursement for property damages resulting from the 
     accident involving a United States Marine Corps A-6 aircraft 
     on February 3, 1998, near Cavalese, Italy: Provided further, 
     That notwithstanding any other provision of law, funds made 
     available under this section may be used to rebuild or 
     replace the funicular system in Cavalese destroyed on 
     February 3, 1998 by that aircraft: Provided further, That any 
     amount paid to any individual or entity from the amount 
     appropriated under this section shall be credited against any 
     amount subsequently determined to be payable to that 
     individual or entity under chapter 163 of title 10, United 
     States Code, section 127 of that title, or any other 
     authority provided by law for administrative settlement of 
     claims against the United States with respect to damages 
     arising from the accident described in this section: Provided 
     further, That payment of an amount under this section shall 
     not be considered to constitute a statement of legal 
     liability on the part of the United States or otherwise to 
     prejudge any judicial proceeding or investigation arising 
     from the accident described in this section: Provided 
     further, That no part of any payment authorized by this 
     section shall be paid to or received by agents or attorneys 
     for services rendered in connection with obtaining such 
     payment, any contract to the contrary notwithstanding.
       Sec. 8115. (a) None of the funds appropriated or otherwise 
     made available under this Act may be obligated or expended 
     for any additional deployment of forces of the Armed Forces 
     of the United States to Yugoslavia, Albania, or Macedonia 
     unless and until the President, after consultation with the 
     Speaker of the House of Representatives, the Majority Leader 
     of the Senate, the Minority Leader of the House of 
     Representatives, and the Minority Leader of the Senate, 
     transmits to Congress a report on the deployment that 
     includes the following:
       (1) The President's certification that the presence of 
     those forces in each country to which the forces are to be 
     deployed is necessary in the national security interests of 
     the United States.
       (2) The reasons why the deployment is in the national 
     security interests of the United States.
       (3) The number of United States military personnel to be 
     deployed to each country.
       (4) The mission and objectives of forces to be deployed.
       (5) The expected schedule for accomplishing the objectives 
     of the deployment.
       (6) The exit strategy for United States forces engaged in 
     the deployment.
       (7) The costs associated with the deployment and the 
     funding sources for paying those costs.
       (8) The anticipated effects of the deployment on the 
     morale, retention, and effectiveness of United States forces.
       (b) Subsection (a) does not apply to a deployment of 
     forces--
       (1) in accordance with United Nations Security Council 
     Resolution 795; or
       (2) under circumstances determined by the President to be 
     an emergency necessitating immediate deployment of the 
     forces.
       (c) 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.
       Sec. 8116. (a) Ensuring Year 2000 Compliance of Information 
     Technology and National Security Systems.--None of the funds 
     appropriated or otherwise made available by this Act may 
     (except as provided in subsection (b)) be obligated or 
     expended on the development or modernization of any 
     information technology or national security system of the 
     Department of Defense in use by the Department of Defense 
     (whether or not the system is a mission critical system) if 
     the date-related data processing capability of that system 
     does not

[[Page H8671]]

     meet certification level 1a, 1b, or 2 (as prescribed in the 
     April 1997 publication of the Department of Defense entitled 
     ``Year 2000 Management Plan'').
       (b) Exception for Certain Information Technology and 
     National Security Systems.--The limitation in subsection (a) 
     does not apply to an obligation or expenditure for an 
     information technology or national security system that is 
     reported to the Office of the Secretary of Defense by October 
     1, 1998, in accordance with the preparation instructions for 
     the May 1998 Department of Defense quarterly report on the 
     status of year 2000 compliance, if--
       (1) the obligation or expenditure is directly related to 
     ensuring that the reported system achieves year 2000 
     compliance;
       (2) the system is being developed and fielded to replace, 
     before January 1, 2000, a noncompliant system or a system to 
     be terminated in accordance with the May 1998 Department of 
     Defense quarterly report on the status of year 2000 
     compliance; or
       (3) the obligation or expenditure is required for a 
     particular change that is specifically required by law or 
     that is specifically directed by the Secretary of Defense.
       (c) Unallocated Reductions of Funds Not To Apply to Mission 
     Critical Systems.--Funds appropriated or otherwise made 
     available by this Act for mission critical systems are not 
     subject to any unallocated reduction of funds made by or 
     otherwise applicable to funds appropriated or otherwise made 
     available by this Act.
       (d) Current Services Operations Not Affected.--Subsection 
     (a) does not prohibit the obligation or expenditure of funds 
     for current services operations of information technology and 
     national security systems.
       (e) Waiver Authority.--The Secretary of Defense may waive 
     subsection (a) on a case-by-case basis with respect to an 
     information technology or national security system if the 
     Secretary provides the congressional defense committees with 
     written notice of the waiver, including the reasons for the 
     waiver and a timeline for the testing and certification of 
     the system as year 2000 compliant.
       (f) Required Report.--(1) Not later than December 1, 1998, 
     the Secretary of Defense shall submit to the congressional 
     defense committees a report describing--
       (A) an executable strategy to be used throughout the 
     Department of Defense to test information technology and 
     national security systems for year 2000 compliance (to 
     include functional capability tests and military exercises);
       (B) the plans of the Department of Defense for ensuring 
     that adequate resources (such as testing facilities, tools, 
     and personnel) are available to ensure that all mission 
     critical systems achieve year 2000 compliance; and
       (C) the criteria and process to be used to certify a system 
     as year 2000 compliant.
       (2) The report shall also include--
       (A) an updated list of all mission critical systems; and
       (B) guidelines for developing contingency plans for the 
     functioning of each information technology or national 
     security system in the event of a year 2000 problem in any 
     such system.
       (g) Capability Contingency Plans.--Not later than December 
     30, 1998, the Secretary of Defense shall have in place 
     contingency plans to ensure continuity of operations for 
     every critical mission or function of the Department of 
     Defense that is dependent on an information technology or 
     national security system.
       (h) Inspector General Evaluation.--The Inspector General of 
     the Department of Defense shall selectively audit information 
     technology and national security systems certified as year 
     2000 compliant to evaluate the ability of systems to 
     successfully operate during the actual year 2000, including 
     the ability of the systems to access and transmit information 
     from point of origin to point of termination.
       (i) Definitions.--For purposes of this section:
       (1) The term ``information technology'' has the meaning 
     given that term in section 5002 of the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1401).
       (2) The term ``national security system'' has the meaning 
     given that term in section 5142 of such Act (40 U.S.C. 1452).
       (3) The term ``development or modernization'' has the 
     meaning given that term in paragraph E of section 180203 of 
     the Department of Defense Financial Management Regulation 
     (DOD 7000.14-R), but does not include any matter covered by 
     subparagraph 3 of that paragraph.
       (4) The term ``current services'' has the meaning given 
     that term in paragraph C of section 180203 of the Department 
     of Defense Financial Management Regulation (DOD 7000.14-R).
       (5) The term ``mission critical system'' means an 
     information technology or national security system that is 
     designated as mission critical in the May 1998 Department of 
     Defense quarterly report on the status of year 2000 
     compliance.
       Sec. 8117. (a) Evaluation of Year 2000 Compliance as Part 
     of Training Exercises Programs.--Not later than December 15, 
     1998, the Secretary of Defense shall submit to Congress a 
     plan for the execution of a simulated year 2000 as part of 
     military exercises described in subsection (c) in order to 
     evaluate, in an operational environment, the extent to which 
     information technology and national security systems involved 
     in those exercises will successfully operate during the 
     actual year 2000, including the ability of those systems to 
     access and transmit information from point of origin to point 
     of termination.
       (b) Evaluation of Compliance in Selected Exercises.--In 
     conducting the military exercises described in subsection 
     (c), the Secretary of Defense shall ensure that--
       (1) at least 25 of those exercises (referred to in this 
     section as ``year 2000 simulation exercises'') are conducted 
     so as to include a simulated year 2000 in accordance with the 
     plan submitted under subsection (a);
       (2) at least two of those exercises are conducted by the 
     commander of each unified or specified combatant command; and
       (3) all mission critical systems that are expected to be 
     used if the Armed Forces are involved in a conflict in a 
     major theater of war are tested in at least two exercises.
       (c) Covered Military Exercises.--A military exercise 
     referred to in this section is a military exercise conducted 
     by the Department of Defense, during the period beginning on 
     January 1, 1999, and ending on September 30, 1999--
       (1) under the training exercises program known as the 
     ``CJCS Exercise Program'';
       (2) at the Naval Strike and Air Warfare Center, the Army 
     National Training Center, or the Air Force Air Warfare 
     Center; or
       (3) as part of Naval Carrier Group fleet training or Marine 
     Corps Expeditionary Unit training.
       (d) Alternative Testing Method.--In the case of an 
     information technology or national security system for which 
     a simulated year 2000 test as part of a military exercise 
     described in subsection (c) is not feasible or presents undue 
     risk, the Secretary of Defense shall test the system using a 
     functional end-to-end test or through a Defense Major Range 
     and Test Facility Base. The Secretary shall include the plans 
     for these tests in the plan required by subsection (a). Tests 
     under this subsection are in addition to the 25 tests 
     required by subsection (b).
       (e) Authority for Exclusion of Systems Not Capable of 
     Performing Reliably in Year 2000 Simulation.--(1) In carrying 
     out a year 2000 simulation exercise, the Secretary of Defense 
     may exclude a particular information technology or national 
     security system from the year 2000 simulation phase of the 
     exercise if the Secretary determines that the system would be 
     incapable of performing reliably during the year 2000 
     simulation phase of the exercise. In such a case, the system 
     excluded shall be replaced in accordance with the year 2000 
     contingency plan for the system.
       (2) If the Secretary of Defense excludes an information 
     technology or national security system from the year 2000 
     simulation phase of an exercise as provided in paragraph (1), 
     the Secretary shall notify Congress of that exclusion not 
     later than two weeks before commencing that exercise. The 
     notice shall include a list of each information technology or 
     national security system excluded from the exercise, a 
     description of how the exercise will use the year 2000 
     contingency plan for each such system, and a description of 
     the effect that continued year 2000 noncompliance of each 
     such system would have on military readiness.
       (3) An information technology or national security system 
     with cryptological applications that is not capable of having 
     its internal clock adjusted forward to a simulated later time 
     is exempt from the year 2000 simulation phase of an exercise 
     under this section.
       (f) Comptroller General Review.--Not later than January 30, 
     1999, the Comptroller General shall review the report and 
     plan submitted under subsection (a) and submit to Congress a 
     briefing evaluating the methodology to be used under the plan 
     to simulate the year 2000 and describing the potential 
     information that will be collected as a result of 
     implementation of the plan, the adequacy of the planned 
     tests, and the impact that the plan will have on military 
     readiness.
       (g) Definitions.--For the purposes of this section:
       (1) The term ``information technology'' has the meaning 
     given that term in section 5002 of the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1401).
       (2) The term ``national security system'' has the meaning 
     given that term in section 5142 of such Act (40 U.S.C. 1452).
       (3) The term ``mission critical system'' means an 
     information technology or national security system that is 
     designated as mission critical in the May 1998 Department of 
     Defense quarterly report on the status of year 2000 
     compliance.
       Sec. 8118. During the current fiscal year and hereafter, no 
     funds appropriated or otherwise available to the Department 
     of Defense may be used to award a contract to, extend a 
     contract with, or approve the award of a subcontract to any 
     person who within the preceding 15 years has been convicted 
     under section 704 of title 18, United States Code, of the 
     unlawful manufacture or sale of the Congressional Medal of 
     Honor.
       Sec. 8119. (a) The Secretary of Defense shall submit to the 
     Committees on Appropriations of the Senate and the House of 
     Representatives a report on food stamp assistance for members 
     of the Armed Forces. The Secretary shall submit the report at 
     the same time that the Secretary submits to Congress, in 
     support of the fiscal year 2001 budget, the materials that 
     relate to the funding provided in that budget for the 
     Department of Defense.
       (b) The report shall include the following:
       (1) The number of members of the Armed Forces and 
     dependents of members of the Armed Forces who are eligible 
     for food stamps.
       (2) The number of members of the Armed Forces and 
     dependents of members of the Armed Forces who received food 
     stamps in fiscal year 1998.
       (3) A proposal for using, as a means for eliminating or 
     reducing significantly the need of such personnel for food 
     stamps, the authority under section 2828 of title 10, United 
     States Code, to lease housing facilities for enlisted members 
     of the Armed Forces and their families when Government 
     quarters are not available for such personnel.
       (4) A proposal for increased locality adjustments through 
     the basic allowance for housing and other methods as a means 
     for eliminating or reducing significantly the need of such 
     personnel for food stamps.
       (5) Other potential alternative actions (including any 
     recommended legislation) for eliminating or reducing 
     significantly the need of such personnel for food stamps.

[[Page H8672]]

       (6) A discussion of the potential for each alternative 
     action referred to in paragraph (3) or (4) to result in the 
     elimination or a significant reduction in the need of such 
     personnel for food stamps.
       (c) Each potential alternative action included in the 
     report under paragraph (3) or (4) of subsection (b) shall 
     meet the following requirements:
       (1) Apply only to persons referred to in paragraph (1) of 
     such subsection.
       (2) Be limited in cost to the lowest amount feasible to 
     achieve the objectives.
       (d) In this section:
       (1) The term ``fiscal year 2001 budget'' means the budget 
     for fiscal year 2001 that the President submits to Congress 
     under section 1105(a) of title 31, United States Code.
       (2) The term ``food stamps'' means assistance under the 
     Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
       Sec. 8120. None of the funds appropriated or otherwise made 
     available by this Act in Titles III and IV may be used to 
     enter into or renew a contract with any company owned, or 
     partially owned, by the People's Republic of China or the 
     People's Liberation Army of the People's Republic of China.
       Sec. 8121. (a) Chapter 157 of title 10, United States Code, 
     is amended by inserting after section 2641 the following:

     ``Sec. 2641a. Transportation of American Samoa veterans on 
       Department of Defense aircraft for certain medical care in 
       Hawaii

       ``(a) Transportation Authorized.--The Secretary of Defense 
     may provide transportation on Department of Defense aircraft 
     for the purpose of transporting any veteran specified in 
     subsection (b) between American Samoa and the State of Hawaii 
     if such transportation is required in order to provide 
     hospital care to such veteran as described in that 
     subsection.
       ``(b) Veterans Eligible for Transport.--A veteran eligible 
     for transport under subsection (a) is any veteran who--
       ``(1) resides in and is located in American Samoa; and
       ``(2) as determined by an official of the Department of 
     Veterans Affairs designated for that purpose by the Secretary 
     of Veterans Affairs, must be transported to the State of 
     Hawaii in order to receive hospital care to which such 
     veteran is entitled under chapter 17 of title 38 in 
     facilities of such Department in the State of Hawaii.
       ``(c) Administration.--(1) Transportation may be provided 
     to veterans under this section only on a space-available 
     basis.
       ``(2) A charge may not be imposed on a veteran for 
     transportation provided to the veteran under this section.
       ``(d) Definitions.--In this section:
       ``(1) The term `veteran' has the meaning given that term in 
     section 101(2) of title 38.
       ``(2) The term `hospital care' has the meaning given that 
     term in section 1701(5) of title 38.''.
       (b) The table of sections at the beginning of chapter 157 
     of such title is amended by inserting after the item relating 
     to section 2641 the following new item:

``2641a. Transportation of American Samoa veterans on Department of 
              Defense aircraft for certain medical care in Hawaii.''.

       Sec. 8122. Additional Funding for Korean War Veterans 
     Memorial. Section 3 of Public Law 99-572 (40 U.S.C. 1003 
     note) is amended by adding at the end the following:
       ``(c) Additional Funding.--
       ``(1) In general.--In addition to amounts made available 
     under subsections (a) and (b), the Secretary of the Army may 
     expend, from any funds available to the Secretary on the 
     date of enactment of this paragraph, $2,000,000 for repair 
     of the memorial.
       ``(2) Disposition of funds received from claims.--Any funds 
     received by the Secretary of the Army as a result of any 
     claim against a contractor in connection with construction of 
     the memorial shall be deposited in the general fund of the 
     Treasury.''.
       Sec. 8123. Of the funds available under title VI for 
     ``Chemical Agents and Munitions Destruction, Army'' for 
     research and development, $18,000,000 shall be made available 
     for the program manager for the Assembled Chemical Weapons 
     Assessment (under section 8065 of the Department of Defense 
     Appropriations Act, 1997) for demonstrations of technologies 
     under the Assembled Chemical Weapons Assessment, for planning 
     and preparation to proceed from demonstration of an 
     alternative technology immediately into the development of a 
     pilot-scale facility for the technology, and for the design, 
     construction, and operation of a pilot facility for the 
     technology.
       Sec. 8124. The Secretary of the Navy may carry out a 
     competitively awarded vessel scrapping pilot program during 
     fiscal years 1999 and 2000 using funds made available in this 
     Act under the heading ``Operation and Maintenance, Navy'': 
     Provided, That the Secretary of the Navy shall define the 
     program scope sufficient to gather data on the cost of 
     scrapping Government vessels and to demonstrate cost 
     effective technologies and techniques to scrap such vessels 
     in a manner that is protective of worker safety and health 
     and the environment.
       Sec. 8125. From within the funds provided under the heading 
     ``Operation and Maintenance, Army'', up to $500,000 shall be 
     available for paying subcontractors and suppliers for work 
     performed at Fort Wainwright, Alaska, in 1994, under Army 
     services contract number DACA85-93-C-0065. Subcontractors and 
     suppliers are to be paid interest calculated in accordance 
     with the Contract Dispute Act of 1978, 41 U.S.C. 601-613.
       Sec. 8126. (a) The Secretary of the Army and the Secretary 
     of the Air Force may each enter into one or more multiyear 
     leases of nontactical firefighting equipment, nontactical 
     crash rescue equipment, or nontactical snow removal 
     equipment. The period of a lease entered into under this 
     section shall be for any period not in excess of 10 years. 
     Any such lease shall provide that performance under the lease 
     during the second and subsequent years of the contract is 
     contingent upon the appropriation of funds and shall provide 
     for a cancellation payment to be made to the lessor if such 
     appropriations are not made.
       (b) Lease payments made under subsection (a) shall be made 
     from amounts provided in this or future appropriations Acts.
       (c) This section is effective for all fiscal years 
     beginning after September 30, 1998.
       Sec. 8127. From within funds available for the Department 
     of Defense under title VI of this Act for ``Chemical Agents 
     and Munitions Destruction, Army'', or the unobligated 
     balances of funds available for ``Chemical Agents and 
     Munitions Destruction, Defense'', under any other Act making 
     appropriations for military functions administered by the 
     Department of Defense for any fiscal year, the Secretary of 
     Defense may use not more than $25,000,000 for the Assembled 
     Chemical Weapons Assessment to complete the demonstration of 
     alternatives to baseline incineration for the destruction of 
     chemical agents and munitions and to carry out the pilot 
     program under section 8065 of the Department of Defense 
     Appropriations Act, 1997 (section 101(b) of Public Law 104-
     208; 110 Stat. 3009-101; 50 U.S.C. 1521 note). The amount 
     specified in the preceding sentence is in addition to any 
     other amount that is made available under title VI of this 
     Act to complete the demonstration of the alternatives and to 
     carry out the pilot program: Provided, That none of these 
     funds shall be taken from any ongoing operational chemical 
     munitions destruction programs.
       Sec. 8128. (a) Findings.--The Congress finds that--
       (1) child experts estimate that as many as 250,000 children 
     under the age of 18 are currently serving in armed forces or 
     armed groups in more than 30 countries around the world;
       (2) contemporary armed conflict has caused the deaths of 
     2,000,000 minors in the last decade alone, and has left an 
     estimated 6,000,000 children seriously injured or permanently 
     disabled;
       (3) children are uniquely vulnerable to military 
     recruitment because of their emotional and physical 
     immaturity, are easily manipulated, and can be drawn into 
     violence that they are too young to resist or understand;
       (4) children are most likely to become child soldiers if 
     they are poor, separated from their families, displaced from 
     their homes, living in a combat zone, or have limited access 
     to education;
       (5) orphans and refugees are particularly vulnerable to 
     recruitment;
       (6) one of the most egregious examples of the use of child 
     soldiers is the abduction of some 10,000 children, some as 
     young as 8 years of age, by the Lord's Resistance Army (in 
     this section referred to as the ``LRA'') in northern Uganda;
       (7) the Department of State's Country Reports on Human 
     Rights Practices for 1997 reports that in Uganda the LRA 
     kills, maims, and rapes large numbers of civilians, and 
     forces abducted children into ``virtual slavery as guards, 
     concubines, and soldiers'';
       (8) children abducted by the LRA are forced to raid and 
     loot villages, fight in the front line of battle against the 
     Ugandan army and the Sudan People's Liberation Army (SPLA), 
     serve as sexual slaves to rebel commanders, and participate 
     in the killing of other children who try to escape;
       (9) former LRA child captives report witnessing Sudanese 
     government soldiers delivering food supplies, vehicles, 
     ammunition, and arms to LRA base camps in government-
     controlled southern Sudan;
       (10) children who manage to escape from LRA captivity have 
     little access to trauma care and rehabilitation programs, and 
     many find their families displaced, unlocatable, dead, or 
     fearful of having their children return home;
       (11) Graca Machel, the former United Nations expert on the 
     impact of armed conflict on children, identified the 
     immediate demobilization of all child soldiers as an 
     urgent priority, and recommended the establishment through 
     an optional protocol to the Convention on the Rights of 
     the Child of 18 as the minimum age for recruitment and 
     participation in armed forces; and
       (12) the International Committee of the Red Cross, the 
     United Nations Children's Fund (UNICEF), the United Nations 
     High Commission on Refugees, and the United Nations High 
     Commissioner on Human Rights, as well as many nongovernmental 
     organizations, also support the establishment of 18 as the 
     minimum age for military recruitment and participation in 
     armed conflict.
       (b) In General.--The Congress hereby--
       (1) deplores the global use of child soldiers and supports 
     their immediate demobilization;
       (2) condemns the abduction of Ugandan children by the LRA;
       (3) calls on the Government of Sudan to use its influence 
     with the LRA to secure the release of abducted children and 
     to halt further abductions; and
       (4) encourages the United States delegation not to block 
     the drafting of an optional protocol to the Convention on the 
     Rights of the Child that would establish 18 as the minimum 
     age for participation in armed conflict.
       (c) Sense of the Congress.--It is the sense of the Congress 
     that the President and the Secretary of State should--
       (1) support efforts to end the abduction of children by the 
     LRA, secure their release, and facilitate their 
     rehabilitation and reintegration into society;
       (2) not block efforts to establish 18 as the minimum age 
     for participation in conflict through

[[Page H8673]]

     an optional protocol to the Convention on the Rights of the 
     Child; and
       (3) provide greater support to United Nations agencies and 
     nongovernmental organizations working for the rehabilitation 
     and reintegration of former child soldiers into society.
       Sec. 8129. Notwithstanding any other provision of law, the 
     Secretary of Defense shall obligate the funds provided for 
     Counterterror Technical Support in the Department of Defense 
     Appropriations Act, 1998 (under title IV of Public Law 105-
     56) for the projects and in the amounts provided for in House 
     Report 105-265 of the House of Representatives, One Hundred 
     Fifth Congress, First Session: Provided, That the funds 
     available for the Pulsed Fast Neutron Analysis Project should 
     be executed through cooperation with the Office of National 
     Drug Control Policy.
       Sec. 8130. Training and Other Programs. (a) Prohibition.--
     None of the funds made available by this Act may be used to 
     support any training program involving a unit of the security 
     forces of a foreign country if the Secretary of Defense has 
     received credible information from the Department of State 
     that a member of such unit has committed a gross violation of 
     human rights, unless all necessary corrective steps have been 
     taken.
       (b) Monitoring.--Not more than 90 days after enactment of 
     this Act, the Secretary of Defense, in consultation with the 
     Secretary of State, shall establish procedures to ensure that 
     prior to a decision to conduct any training program referred 
     to in subsection (a), full consideration is given to all 
     information available to the Department of State relating to 
     human rights violations by foreign security forces.
       (c) Waiver.--The Secretary of Defense, after consultation 
     with the Secretary of State, may waive the prohibition in 
     subsection (a) if he determines that such waiver is required 
     by extraordinary circumstances.
       (d) Report.--Not more than 15 days after the exercise of 
     any waiver under subsection (c), the Secretary of Defense 
     shall submit a report to the congressional defense committees 
     describing the extraordinary circumstances, the purpose and 
     duration of the training program, the United States forces 
     and the foreign security forces involved in the training 
     program, and the information relating to human rights 
     violations that necessitates the waiver.
       Sec. 8131. Notwithstanding any other provision of law, and 
     notwithstanding the provisions of section 509(b) of title 32, 
     United States Code, of the funds made available for Civil 
     Military Programs to the Department of Defense in this Act, 
     not less than $62,394,000 shall be made available for the 
     National Guard ChalleNGe Program.
       Sec. 8132. (a) Notwithstanding any other provision of law, 
     the Secretary of the Air Force may convey, without 
     consideration, to Indian tribes located in the State of 
     Montana relocatable military housing units located at 
     Malmstrom Air Force Base, Montana, that are excess to the 
     needs of the Air Force.
       (b) Processing of Requests.--(1) The Secretary of the Air 
     Force shall convey military housing units under subsection 
     (a) in accordance with the requests for such units that are 
     submitted to the Secretary by the Operation Walking Shield 
     Program on behalf of Indian tribes located in the State of 
     Montana.
       (2) The Operation Walking Shield Program shall resolve any 
     conflicts among requests of Indian tribes for housing units 
     under subsection (a) before submitting such requests to the 
     Secretary of the Air Force under paragraph (1).
       (c) Indian Tribe Defined.--In this section, the term 
     ``Indian tribe'' means any recognized Indian tribe included 
     on the current list published by the Secretary of the 
     Interior under section 104 of the Federally Recognized Indian 
     Tribe List Act of 1994 (Public Law 103-454; 108 Stat. 4792; 
     25 U.S.C. 479a-1).
       Sec. 8133. (a) The Secretary of Defense, in coordination 
     with the Secretary of Health and Human Services, may carry 
     out a program to distribute surplus dental equipment of the 
     Department of Defense, at no cost to the Department of 
     Defense, to Indian health service facilities and to 
     federally-qualified health centers (within the meaning of 
     section 1905(l)(2)(B) of the Social Security Act (42 U.S.C. 
     1396d(l)(2)(B))).
       (b) Not later than March 15, 1999, the Secretary of Defense 
     shall submit to Congress a report on the program, including 
     the actions taken under the program.
       Sec. 8134. The total amount appropriated in Title III of 
     this Act is hereby reduced by $142,100,000.
       Sec. 8135. Notwithstanding any other provision in this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $193,600,000 to reflect savings from favorable foreign 
     currency fluctuations, to be distributed as follows:
       ``Military Personnel, Army'', $5,300,000;
       ``Military Personnel, Navy'', $12,000,000;
       ``Military Personnel, Marine Corps'', $4,200,000;
       ``Military Personnel, Air Force'', $8,100,000;
       ``Operation and Maintenance, Army'', $111,500,000;
       ``Operation and Maintenance, Navy'', $11,500,000;
       ``Operation and Maintenance, Marine Corps'', $3,300,000;
       ``Operation and Maintenance, Air Force'', $26,200,000; and
       ``Operation and Maintenance, Defense-Wide'', $11,500,000.
       Sec. 8136. Notwithstanding any other provision in this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $502,000,000 to reflect savings from reductions in the 
     price of bulk fuel, to be distributed as follows:
       ``Operation and Maintenance, Army'', $36,000,000;
       ``Operation and Maintenance, Navy'', $167,000,000;
       ``Operation and Maintenance, Marine Corps'', $8,000,000;
       ``Operation and Maintenance, Air Force'', $176,000,000;
       ``Operation and Maintenance, Defense-Wide'', $67,000,000;
       ``Operation and Maintenance, Army Reserve'', $1,400,000;
       ``Operation and Maintenance, Navy Reserve'', $8,200,000;
       ``Operation and Maintenance, Air Force Reserve'', 
     $11,700,000;
       ``Operation and Maintenance, Army National Guard'', 
     $3,500,000; and
       ``Operation and Maintenance, Air National Guard'', 
     $23,200,000.
       Sec. 8137. Global Positioning System Frequency Spectrum.--
     In order to guard against disruption of Global Positioning 
     System services that are vital to the national security and 
     economic interests of the United States, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report setting forth a national strategy to (a) protect the 
     integrity of the Global Positioning System frequency spectrum 
     against interference and disruption, (b) achieve full and 
     effective use by GPS of radio frequency spectrum currently 
     allocated by the International Telecommunications Union for 
     transmission of satellite navigation signals, and (c) provide 
     for any additional allocation of spectrum necessary for GPS 
     evolution. Such report shall be submitted to the 
     congressional defense committees within 120 days of enactment 
     of this Act.
       Sec. 8138. The Secretary of Defense shall submit a report 
     to Congress concurrent with submission of the fiscal year 
     2000 President's budget regarding past military deployment 
     rates and future deployment rate goals. Such report shall 
     contain a listing of the monthly overseas deployment rates 
     for military personnel of each service covering each fiscal 
     year beginning with fiscal year 1989, the location and size 
     of each deployment, a description of the methodology used to 
     determine the deployment rates for each service, and a 
     discussion of the maximum yearly deployment rates for each 
     service that can be sustained on a continuous basis in non-
     emergency situations over the next five years given the 
     resources and personnel end strengths contained in the Future 
     Years Defense Plan.
       Sec. 8139. (a) Conveyance Required.--The Secretary of the 
     Air Force shall convey, without consideration, to the Town of 
     Newington, New Hampshire, all right, title, and interest of 
     the United States in and to a parcel of real property, 
     together with improvements thereon, consisting of 
     approximately 1.3 acres located at former Pease Air Force 
     Base, New Hampshire, and known as the site of the old Stone 
     School.
       (b) Inapplicability of Certain Disposal Authorities.--The 
     Secretary shall make the conveyance required by subsection 
     (a) without regard to the provisions of section 204(b) of the 
     Defense Authorization Amendments and Base Closure and 
     Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note).
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Secretary.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interest of the United 
     States.
       Sec. 8140. (a) The Secretary of the Navy may lease to the 
     University of Central Florida (in this section referred to as 
     the ``University''), or a representative or agent of the 
     University designated by the University, such portion of the 
     property known as the Naval Air Warfare Center, Training 
     Systems Division, Orlando, Florida, as the Secretary 
     considers appropriate as a location for the establishment of 
     a center for research in the fields of law enforcement, 
     public safety, civil defense, and national defense.
       (b) Notwithstanding any other provision of law, the term of 
     the lease under subsection (a) may not exceed 50 years.
       (c) As consideration for the lease under subsection (a), 
     the University shall--
       (1) undertake and incur the cost of the planning, design, 
     and construction required to establish the center referred to 
     in that subsection; and
       (2) during the term of the lease, provide the Secretary 
     such space in the center for activities of the Navy as the 
     Secretary and the University jointly consider appropriate.
       (d) The Secretary may require such additional terms and 
     conditions in connection with the lease authorized by 
     subsection (a) as the Secretary considers appropriate to 
     protect the interest of the United States.
       Sec. 8141. (a) The Secretary of the Air Force may enter 
     into an agreement to lease from the City of Phoenix, Arizona, 
     the parcel of real property described in subsection (b), 
     together with improvements on the property, in consideration 
     of annual rent not in excess of one dollar.
       (b) The real property referred to in subsection (a) is a 
     parcel, known as Auxiliary Field 3, that is located 
     approximately 12 miles north of Luke Air Force Base, Arizona, 
     in section 4 of township 3 north, range 1 west of the Gila 
     and Salt River Base and Meridian, Maricopa County, Arizona, 
     is bounded on the north by Bell Road, on the east by 
     Litchfield Road, on the south by Greenway Road, and on the 
     west by agricultural land, and is composed of approximately 
     638 acres, more or less, the same property that was formerly 
     an Air Force training and emergency field developed during 
     World War II.
       (c) The Secretary may require such additional terms and 
     conditions in connection with the lease under subsection (a) 
     as the Secretary considers appropriate to protect the 
     interests of the United States.

[[Page H8674]]

       Sec. 8142. Notwithstanding any other provision of law, the 
     Secretary of Defense may retain all or a portion of the 
     family housing at Fort Buchanan, Puerto Rico, as the 
     Secretary deems necessary to meet military family housing 
     needs arising out of the relocation of elements of the U.S. 
     Army South to Fort Buchanan.
       Sec. 8143. (a) Conveyance Authorized.--The Secretary of the 
     Navy may convey to the City of Seattle, Washington (in this 
     section referred to as the ``City''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, together with improvements thereon, consisting of 
     approximately 11.82 acres, the location of the Magnolia 
     housing area, Seattle, Washington, less such areas as the 
     Secretary determines are required to support continued Navy 
     family housing requirements.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the City shall pay to the United States 
     an amount equal to the fair market value (as determined by 
     the Secretary) of the portion of the real property to be 
     conveyed under subsection (a) that was not donated to the 
     United States by the City. The portion of the real property 
     to be conveyed under subsection (a) that was donated to the 
     United States by the City will be returned to the City at no 
     cost.
       (c) Condition.--The conveyance authorized by subsection (a) 
     shall be subject to the condition that the City accept the 
     real property in its condition at the time of conveyance.
       (d) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed for monetary 
     consideration; as well as the acreage of the portion to be 
     returned to the City at no cost as described in subsection 
     (b), shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the City.
       (e) Use of Funds.--(1) The Secretary shall use any amounts 
     paid to the Secretary under subsection (b) for Navy family 
     housing purposes in the Puget Sound region. (2) If amounts 
     referred to in paragraph (1) remain unexpended after the use 
     for Navy family housing purposes referred to in that 
     paragraph, the Secretary shall deposit such unexpended 
     amounts in the account established under section 204(h) of 
     the Federal Property and Administrative Services Act (40 
     U.S.C. 485(h)).
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
       Sec. 8144. (a) Conveyance Authorized.--The Secretary of the 
     Army may convey to the city of Reading, Pennsylvania, 
     hereafter referred to as the ``City'' or to another entity 
     designated by the City, all right and title, and interest of 
     the United States in and to a parcel of real property 
     (including improvements thereon) consisting of approximately 
     1.8 acres at the Army Reserve Center located at 1800 North 
     12th Street in Reading, Pennsylvania, for redevelopment 
     purposes.
       (b) Consideration.--The conveyance authorized under 
     subsection (a) shall be subject to the condition that the 
     City--
       (1) Will pay fair market value for the property, if the 
     property is to be conveyed to or used by a business 
     enterprise.
       (2) Will obtain the property without consideration if the 
     property is to be used by a state or local governmental 
     agency.
       (c) Administrative Expenses.--In connection with the 
     conveyance under subsection (a), the Secretary may accept 
     amounts provided by the city or other persons to cover 
     administrative expenses incurred by the Secretary in entering 
     into the transaction. Amounts collected under this subsection 
     (b) 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.
       (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 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. 8145. Notwithstanding any other provision of law, 
     using funds previously appropriated into the Department of 
     Defense Base Closure Account 1990 established by section 
     2906(a)(1) of the Department of Defense Authorization Act, 
     1991 (Public Law 101-510), the Secretary of the Air Force 
     shall obligate up to $7,646,000 for demolition and related 
     environmental restoration of 31 buildings, possessing 
     asbestos and lead-based paint, at the former Norton Air Force 
     Base, California.
       Sec. 8146. Liquidity of Working-Capital Funds. (a) 
     Increased Cash Balances.--The Secretary of Defense shall 
     administer the working-capital funds of the Department of 
     Defense during fiscal year 1999 so as to ensure that the 
     total amount of the cash balances in such funds on September 
     30, 1999, exceeds the total amount of the cash balances in 
     such funds on September 30, 1998, by $1,300,000,000.
       (b) Actions Regarding Unbudgeted Losses.--The Under 
     Secretary of Defense (Comptroller) shall take such actions 
     regarding unbudgeted losses for the working-capital funds as 
     may be necessary in order to ensure that such unbudgeted 
     losses do not preclude the Secretary of Defense from 
     achieving the increase in cash balances in working-capital 
     funds required under subsection (a).
       (c) Waiver.--The Secretary of Defense may waive the 
     requirements of this section upon certifying to Congress, in 
     writing, that the waiver is necessary to meet requirements 
     associated with--
       (A) a contingency operation (as defined in section 
     101(a)(13) of title 10, United States Code); or
       (B) an operation of the Armed Forces that commenced before 
     October 1, 1998, and continues during fiscal year 1999.
       (2) The waiver authority under paragraph (1) may not be 
     delegated to any official other than the Deputy Secretary of 
     Defense.
       (3) The waiver authority under paragraph (1) does not apply 
     to the limitation in subsection (d) or the limitation in 
     section 2208(l)(3) of title 10, United States Code (as added 
     by subsection (e)).
       (d) Permanent Limitation on Advance Billings.--(1) Section 
     2208(l) of title 10, United States Code, is amended--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) The total amount of the advance billings rendered or 
     imposed for all working-capital funds of the Department of 
     Defense in a fiscal year may not exceed $1,000,000,000.''.
       (2) Section 2208(l)(3) of such title, as added by paragraph 
     (1), applies to fiscal years after fiscal year 1999.
       (e) Semiannual Report.--(1) The Under Secretary shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on National Security of the House of 
     Representatives--
       (A) not later than May 1, 1999, a report on the 
     administration of this section for the six-month period 
     ending on March 31, 1999; and
       (B) not later than November 1, 1999, a report on the 
     administration of this section for the six-month period 
     ending on September 30, 1999.
       (2) Each report shall include, for the period covered by 
     the report, the following:
       (A) The profit and loss status of each working-capital fund 
     activity.
       (B) The actions taken by the Secretary of each military 
     department to use assessments of surcharges to correct for 
     unbudgeted losses.
       Sec. 8147. The Secretary of Defense shall establish, 
     through a revised Defense Integrated Military Human Resources 
     System (DIMHRS), a defense reform initiative enterprise pilot 
     program for military manpower and personnel information: 
     Provided, That this pilot program should include all 
     functions and systems currently included in DIMHRS and shall 
     be expanded to include all appropriate systems within the 
     enterprise of personnel, manpower, training, and 
     compensation: Provided further, That in establishing a 
     revised DIMHRS enterprise program for manpower and personnel 
     information superiority the functions of this program shall 
     include, but not be limited to: (1) an analysis and 
     determination of the number and kinds of information systems 
     necessary to support manpower and personnel within the 
     Department of Defense; and (2) the establishment of programs 
     to develop and implement information systems in support of 
     manpower and personnel to include an enterprise level 
     strategic approach, performance and results based management, 
     business process improvement and other non-material 
     solutions, the use of commercial or government off-the-shelf 
     technology, the use of modular contracting as defined by 
     Public Law 104-106, and the integration and consolidation of 
     existing manpower and personnel information systems: Provided 
     further, That the Secretary of Defense shall re-instate 
     fulfillment standards designated as ADS-97-03-GD, dated 
     January, 1997: Provided further, That the requirements of 
     this section should be implemented not later than six months 
     after the date of enactment of this Act.
       Sec. 8148. (a) The Secretary of Defense, after consultation 
     with the Chairman of the Joint Chiefs of Staff and the 
     military service chiefs, shall conduct a comprehensive 
     reassessment of existing military compensation, benefits, and 
     related programs. The Secretary shall consider the 
     effectiveness of these programs in providing an adequate 
     standard of living and family support for service members and 
     dependents, the current and projected effects of these 
     programs on recruiting and retention of service members, and 
     improvements which could be gained by potential changes in 
     these programs.
       (b) In conducting this assessment, the Secretary's analysis 
     shall consider, but not be limited to, the following areas:
       (1) Military pay and benefits, to include special pay and 
     targeted bonus programs;
       (2) The military retirement system, including an assessment 
     of the effects of the significant changes made to the 
     retirement system in 1986;
       (3) Health care programs; and
       (4) Housing, family support, and morale, welfare and 
     recreation programs.
       (c) The Secretary shall consider the cumulative and 
     complementary ability of these programs, and the effects of 
     potential modifications to these programs, in terms of their 
     ability to contribute to the attainment of existing and 
     future manpower requirements of the military services, as 
     well as the provision of a fair and equitable quality of life 
     for service members and their dependents.
       (d) The Secretary shall provide an initial report on these 
     issues to the congressional defense committees within 60 days 
     of the enactment of this Act.
       (e) Concurrent with submission of the fiscal year 2000 
     budget, the Secretary shall provide a comprehensive 
     assessment of these issues, and proposed changes in existing 
     programs should he determine they are warranted, to the 
     Congress.
       This Act may be cited as the ``Department of Defense 
     Appropriations Act, 1999''.

[[Page H8675]]

       And the Senate agree to the same.
     Bill Young,
     Joe McDade,
     Jerry Lewis,
     Joe Skeen,
     David L. Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Ernest J. Istook, Jr.,
     Randy ``Duke'' Cunningham,
     Bob Livingston,
     John P. Murtha,
     Norman D. Dicks,
     W.G. (Bill) Hefner,
     Martin Olav Sabo,
     Julian C. Dixon,
     Peter J. Visclosky,
                                Managers on the Part of the House.

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

                      JOINT EXPLANATORY STATEMENT

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 4103), making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 1999, and for other purposes, 
     submit the following joint statement to the House and the 
     Senate in explanation of the effect of the action agreed upon 
     by the managers and recommended in the accompanying 
     conference report.
       The conference agreement on the Department of Defense 
     Appropriations Act, 1999, incorporates some of the provisions 
     of both the House and Senate versions of the bill. The 
     language and allocations set forth in House Report 105-591 
     and Senate Report 105-200 should be complied with unless 
     specifically addressed in the accompanying bill and statement 
     of the managers to the contrary.
       Senate Amendment: The Senate deleted the entire House bill 
     after the enacting clause and inserted the Senate bill. The 
     conference agreement includes a revised bill.

              Definition of Program, Project, and Activity

       The conferees agree that for the purposes of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (Public Law 
     99-177) as amended by the Balanced Budget and Emergency 
     Deficit Control Reaffirmation Act of 1987 (Public Law 100-
     119) and by the Budget Enforcement Act of 1990 (Public Law 
     101-508), the term program, project, and activity for 
     appropriations contained in this Act shall be defined as the 
     most specific level of budget items identified in the 
     Department of Defense Appropriations Act, 1999, the 
     accompanying House and Senate Committee reports, the 
     conference report and accompanying joint explanatory 
     statement of the managers of the Committee of Conference, the 
     related classified annexes and reports, and the P-1 and R-1 
     budget justification documents as subsequently modified by 
     Congressional action. The following exception to the above 
     definition shall apply:
       For the Military Personnel and the Operation and 
     Maintenance accounts, the term ``program, project, and 
     activity'' is defined as the appropriations accounts 
     contained in the Department of Defense Appropriations Act. At 
     the time the President submits his budget for fiscal year 
     2000, the conferees direct the Department of Defense to 
     transmit to the congressional defense committees budget 
     justification documents to be known as the ``M-1'' and ``O-
     1'' which shall identify, at the budget activity, activity 
     group, and subactivity group level, the amounts requested by 
     the President to be appropriated to the Department of Defense 
     for operation and maintenance in any budget request, or 
     amended budget request, for fiscal year 2000.


                         special interest items

       Items for which the conferees have specifically provided 
     funds through a conference agreement or through adoption of 
     original House or Senate recommendations in Research, 
     Development, Test, and Evaluation or Procurement 
     appropriations are Congressional special interest items for 
     the purpose of the Base for Reprogramming (DD Form 1414). 
     These items are identified in the respective committee or 
     conference reports using the phrases ``only for'' or ``only 
     to'' or are specifically identified in the tables. Each item 
     will be carried on the DD form 1414 in the amount agreed to 
     by the conferees. The Department of Defense shall consult 
     with the congressional defense committees before issuing the 
     DD form 1414 so there is common agreement on items of special 
     interest. In no case will the Department of Defense transfer 
     funds from special interest items through the below threshold 
     reprogramming process. In addition, the term program in 
     Section 8111 includes any subprogram, modification, project, 
     or subproject not previously justified and appropriated in a 
     given appropriation account by the Congress through the 
     normal budget process.

                      TITLE I--MILITARY PERSONNEL

       The conferees agree to the following amounts for the 
     Military Personnel accounts as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Active personnel:
    Army........................................      21,002,051      20,908,851      20,822,051      20,841,687
    Navy........................................      16,613,053      16,560,253      16,532,153      16,570,754
    Marine Corps................................       6,272,089       6,241,189       6,253,189       6,263,387
    Air Force...................................      17,311,683      17,201,583      17,205,660      17,211,987
Reserve personnel:
    Army........................................       2,152,075       2,171,675       2,152,075       2,167,052
    Navy........................................       1,387,379       1,427,979       1,387,379       1,426,663
    Marine Corps................................         401,888         403,513         401,888         406,616
    Air Force...................................         856,176         850,576         856,176         852,324
National Guard personnel:
    Army........................................       3,404,595       3,413,195       3,499,595       3,489,987
    Air Force...................................       1,376,097       1,372,997       1,376,097       1,377,109
                                                 ---------------------------------------------------------------
      Total, Military Personnel.................      70,777,086      70,551,811      70,486,263      70,607,566
----------------------------------------------------------------------------------------------------------------

                           pay raise increase

       The conferees recommend an increase of $202,455,000 to 
     active and Guard and Reserve personnel accounts to provide 
     for a 3.6 percent military pay raise, an increase of a half 
     percent over the budget request of 3.1 percent.


                        force structure changes

       The conferees recommend a total of $106,200,000 in the 
     Military Personnel and Operation and Maintenance accounts for 
     restoration of force structure that was reduced in the budget 
     request, as follow:

                         [Dollars in thousands]
------------------------------------------------------------------------
                               Milpers      O&M       Proc.      Total
------------------------------------------------------------------------
Air Force B-52 aircraft.....      3,600     40,100     10,300     54,000
Army Reserve AGR's..........     15,000  .........  .........     15,000
Navy Reserve P-3 aircraft...      2,600      7,600  .........     10,200
Army National Guard civilian  .........     27,000  .........     27,000
 technicians................
------------------------------------------------------------------------

                    personnel underexecution savings

       The conferees recommend a total reduction of $220,800,000 
     for active and reserve military personnel accounts due to 
     lower than projected end strengths, and differences in the 
     actual grade mix of officers and enlisted recommended in the 
     budget request. The General Accounting Office estimates that 
     the active duty components will have approximately 15,000 
     fewer personnel on board beginning in fiscal year 1999, and 
     the Reserve components approximately 3,700 personnel. As a 
     result, the fiscal year 1999 requirements are overstated.

[[Page H8676]]

                   replacement medals and decorations

       The conferees encourage the Secretary of Defense to take 
     all actions necessary to eliminate the backlog of requests of 
     former service members for replacement medals and 
     decorations.


                     backlog of unpaid retired pay

       The conferees direct the Secretary of Defense to take all 
     actions necessary to eliminate any backlog of unpaid retired 
     pay for former service members, to include those retired from 
     the Guard and Reserve. Not later than ninety days after 
     enactment of this Act, the Secretary of Defense shall submit 
     a report on the backlog of unpaid retired pay. The report 
     shall include the actions taken to eliminate any backlog; the 
     extent of any remaining backlog; and a description of any 
     additional actions required to ensure that retired pay is 
     paid in a timely manner.

                          Active End Strength

                           [Fiscal year 1999]
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. Budget
------------------------------------------------------------------------
Army.............................      480,000      480,000  ...........
Navy.............................      372,696      372,696  ...........
Marine Corps.....................      172,200      172,200  ...........
Air Force........................      370,882      370,984         +102
                                  --------------------------------------
      Total, Active Personnel....    1,395,778    1,395,880         +102
------------------------------------------------------------------------

                        Military Personnel, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
MILITARY PERSONNEL, ARMY:
ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER BASIC        3,439,898       3,439,898       3,439,898       3,439,898
 PAY............................................
RETIRED PAY ACCRUAL.............................       1,038,849       1,038,849       1,038,849       1,038,849
BASIC ALLOWANCE FOR HOUSING.....................         561,424         561,424         561,424         561,424
BASIC ALLOWANCE FOR SUBSISTENCE.................         147,905         147,905         147,905         147,905
INCENTIVE PAYS..................................          64,469          64,469          64,469          64,469
SPECIAL PAYS....................................         190,936         190,936         190,936         190,936
ALLOWANCES......................................         102,643         102,643         102,643         102,643
SEPARATION PAY..................................         142,731         142,731         142,731         142,731
SOCIAL SECURITY TAX.............................         298,713         298,713         298,713         298,713
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..................       5,987,568       5,987,568       5,987,568       5,987,568
                                                 ===============================================================
ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED             7,437,252       7,437,252       7,437,252       7,437,252
 PERSONNEL BASIC PAY............................
RETIRED PAY ACCRUAL.............................       2,246,050       2,246,050       2,246,050       2,246,050
BASIC ALLOWANCE FOR HOUSING.....................       1,171,828       1,171,828       1,171,828       1,171,828
INCENTIVE PAYS..................................          68,068          68,068          68,068          68,068
SPECIAL PAYS....................................         165,166         175,166         165,166         165,166
ALLOWANCES......................................         513,801         513,801         513,801         513,801
SEPARATION PAY..................................         325,993         325,993         325,993         325,993
SOCIAL SECURITY TAX.............................         635,065         635,065         635,065         635,065
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2..................      12,563,223      12,573,223      12,563,223      12,563,223
                                                 ===============================================================
ACTIVITY 3: PAY AND ALLOWANCES OF CADETS ACADEMY          39,084          39,084          39,084          39,084
 CADETS.........................................
ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL            774,529         774,529         774,529         774,529
 BASIC ALLOWANCE FOR SUBSISTENCE................
SUBSISTENCE-IN-KIND.............................         366,887         366,887         366,887         366,887
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4..................       1,141,416       1,141,416       1,141,416       1,141,416
                                                 ===============================================================
ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL           115,723         115,723         115,723         115,723
 ACCESSION TRAVEL...............................
TRAINING TRAVEL.................................          49,249          49,249          49,249          49,249
OPERATIONAL TRAVEL..............................         143,258         143,258         143,258         143,258
ROTATIONAL TRAVEL...............................         575,172         575,172         575,172         575,172
SEPARATION TRAVEL...............................         161,505         161,505         161,505         161,505
TRAVEL OF ORGANIZED UNITS.......................          16,731          16,731          16,731          16,731
NON-TEMPORARY STORAGE...........................          25,271          25,271          25,271          25,271
TEMPORARY LODGING EXPENSE.......................          11,638          11,638          11,638          11,638
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 5..................       1,098,547       1,098,547       1,098,547       1,098,547
                                                 ===============================================================
ACTIVITY 6: OTHER MILITARY PERSONNEL COSTS                   780             780             780             780
 APPREHENSION OF MILITARY DESERTERS.............
INTEREST ON UNIFORMED SERVICES SAVINGS..........             534             534             534             534
DEATH GRATUITIES................................           1,962           1,962           1,962           1,962
UNEMPLOYMENT BENEFITS...........................         116,010         116,010         116,010         116,010
SURVIVOR BENEFITS...............................           7,740           7,740           7,740           7,740
EDUCATION BENEFITS..............................          76,807          76,807          76,807          76,807
ADOPTION EXPENSES...............................             380             380             380             380
ADVANCE MILITARY PAY............................         161,000  ..............  ..............  ..............
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 6..................         365,213         204,213         204,213         204,213
                                                 ===============================================================
LESS REIMBURSABLES..............................        -193,000        -193,000        -193,000        -193,000
FOREIGN CURRENCY FLUCTUATION....................  ..............          -5,500          -7,000  ..............
PERSONNEL UNDEREXECUTION........................  ..............         -10,700         -12,000         -60,000
MILITARY PAY SHORTFALL..........................  ..............          74,000  ..............  ..............
PAY RAISE INCREASE..............................  ..............  ..............  ..............          60,636
                                                 ---------------------------------------------------------------
      TOTAL, MILITARY PERSONNEL, ARMY...........      21,002,051      20,908,851      20,822,051      20,841,687
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 6: Other Military Personnel Costs:
  2620 Advance Military Pay....................................-161,000
Undistributed:
  Personnel Underexecution......................................-60,000
  Pay Raise Increase.............................................60,636

                        Military Personnel, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
MILITARY PERSONNEL, NAVY:
ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER--BASIC       2,419,133       2,419,133       2,419,133       2,419,133
 PAY............................................
RETIRED PAY ACCRUAL.............................         730,578         730,578         730,578         730,578

[[Page H8677]]

 
BASIC ALLOWANCE FOR HOUSING.....................         516,471         516,471         516,471         516,471
BASIC ALLOWANCE FOR SUBSTITUTE..................         102,537         102,537         102,537         102,537
INCENTIVE PAYS..................................         113,365         113,365         113,365         113,365
SPECIAL PAYS....................................         214,711         214,711         214,711         214,711
ALLOWANCES......................................          73,643          73,643          73,643          73,643
SEPARATION PAY..................................          71,505          71,505          71,505          71,505
SOCIAL SECURITY TAX.............................         205,083         205,083         205,083         205,083
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..................       4,447,026       4,447,026       4,447,026       4,447,026
                                                 ===============================================================
ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED             5,975,635       5,975,635       5,975,635       5,975,635
 PERSONNEL--BASIC PAY...........................
RETIRED PAY ACCRUAL.............................       1,802,223       1,802,223       1,802,223       1,802,223
BASIC ALLOWANCE FOR HOUSING.....................       1,320,566       1,320,566       1,320,566       1,320,566
INCENTIVE PAYS..................................          88,091          88,091          88,091          88,091
SPECIAL PAYS....................................         487,881         497,281         487,881         487,881
ALLOWANCE.......................................         435,031         435,031         435,031         435,031
SEPARATION PAY..................................         175,754         175,754         175,754         175,754
SOCIAL SECURITY TAX.............................         516,201         516,201         516,201         516,201
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2..................      10,801,382      10,810,782      10,801,382      10,801,382
                                                 ===============================================================
ACTIVITY 3: PAY AND ALLOWANCES OF MIDSHIPMEN....          35,947          35,947          35,947          35,947
ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL--          514,384         514,384         514,384         514,384
 BASIC ALLOWANCE FOR SUBSISTENCE................
SUBSISTENCE-IN-KIND.............................         281,190         281,190         281,190         281,190
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4..................         795,574         795,574         795,574         795,574
                                                 ===============================================================
ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL--          45,760          45,760          45,760          45,760
 ACCESSION TRAVEL...............................
TRAINING TRAVEL.................................          59,548          59,548          59,548          59,548
OPERATONAL TRAVEL...............................         150,000         150,000         150,000         150,000
ROTATIONAL TRAVEL...............................         223,494         223,494         223,494         223,494
SEPARATION TRAVEL...............................         108,796         108,796         108,796         108,796
TRAVEL OF ORGANIZED UNITS.......................          16,840          16,840          16,840          16,840
NON-TEMPORARY STORAGE...........................          13,910          13,910          13,910          13,910
TEMPORARY LODGING EXPENSE.......................           5,751           5,751           5,751           5,751
OTHER...........................................           4,638           4,638           4,638           4,638
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 5..................         628,737         628,737         628,737         628,737
                                                 ===============================================================
ACTIVITY 6. OTHER MILITARY PERSONNEL COSTS--                 826             826             826             826
 APPREHENSION OF MILITARY DESERTERS.............
INTEREST ON UNIFORMED SERVICES SAVINGS..........              40              40              40              40
DEATH GRATUITIES................................           1,806           1,806           1,806           1,806
UNEMPLOYMENT BENEFITS...........................          62,922          62,922          62,922          62,922
SURVIVOR BENEFITS...............................           3,540           3,540           3,540           3,540
EDUCATION BENEFITS..............................          19,888          33,788          19,888          19,888
ADOPTION EXPENSES...............................             272             272             272             272
ADVANCE MILITARY PAY............................          69,000  ..............  ..............  ..............
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 6..................         158,294         103,194          89,294          89,294
                                                 ===============================================================
LESS REIMBURSABLES..............................        -253,907        -253,907        -253,907        -253,907
FOREIGN CURRENCY FLUCTUATION....................  ..............          -9,100          -5,300  ..............
PERSONNEL UNDEREXECUTION........................  ..............          -8,000          -6,600         -25,000
ACTIVE DUTY SPECIAL WORK........................  ..............          10,000  ..............           5,000
PAY RAISE INCREASE..............................  ..............  ..............  ..............          46,701
                                                 ---------------------------------------------------------------
      TOTAL, MILITARY PERSONNEL, NAVY...........      16,613,053      16,560,253      16,532,153      16,570,754
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 6: Other Military Personnel Costs:
  5450 Advance Military Pay.....................................-69,000
Undistributed:
  Personnel Underexecution......................................-25,000
  Active Duty Special Work........................................5,000
  Pay Raise Increase.............................................46,701

                    Military Personnel, Marine Corps

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

                                            (In thousands of dollars)
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
        MILITARY PERSONNEL, MARINE CORPS
ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER;
    BASIC PAY...................................         780,978         780,978         780,978         780,978
    RETIRED PAY ACCRUAL.........................         235,855         235,855         235,855         235,855
    BASIC ALLOWANCE FOR HOUSING.................         132,455         132,455         132,455         132,455
    BASIC ALLOWANCE FOR SUBSISTENCE.............          33,795          33,795          33,795          33,795
    INCENTIVE PAYS..............................          39,657          39,657          39,657          39,657
    SPECIAL PAYS................................             938             938             938             938
    ALLOWANCES..................................          18,583          18,583          18,583          18,583
    SEPARATION PAY..............................          15,288          15,288          15,288          15,288
    SOCIAL SECURITY TAX.........................          65,947          65,947          65,947          65,947
                                                 ---------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 1................       1,323,496       1,323,496       1,323,496       1,323,496
ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED
 PERSONNEL:
    BASIC PAY...................................       2,638,628       2,638,628       2,638,628       2,638,628
    RETIRED PAY ACCRUAL.........................         794,902         794,902         794,902         794,902
    BASIC ALLOWANCE FOR HOUSING.................         401,062         401,062         401,062         401,062
    INCENTIVE PAYS..............................           8,376           8,376          13,376           8,376
    SPECIAL PAY.................................          56,918          59,918          56,918          56,918
    ALLOWANCES..................................         148,132         148,132         148,132         148,132
    SEPARATION PAY..............................          62,104          62,104          62,104          62,104
    SOCIAL SECURITY TAX.........................         224,831         224,831         224,831         224,831
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2..................       4,334,953       4,337,953       4,339,953       4,334,953
ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL:
    BASIC ALLOWANCE FOR SUBSISTENCE.............         228,436         228,436         228,436         228,436
    SUBSISTENCE-IN-KIND.........................         134,007         134,007         134,007         134,007
                                                 ---------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 4................         362,443         362,443         362,443         362,443
ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL:
    ACCESSION TRAVEL............................          30,096          30,096          30,096          30,096
    TRAINING TRAVEL.............................           5,071           5,071           5,071           5,071
    OPERATIONAL TRAVEL..........................          52,995          52,995          52,995          52,995
    ROTATIONAL TRAVEL...........................          87,581          87,581          87,581          87,581

[[Page H8678]]

 
    SEPARATION TRAVEL...........................          42,012          42,014          42,014          42,014
    TRAVEL OF ORGANIZED UNITS...................             771             771             771             771
    NON-TEMPORARY STORAGE.......................           4,726           4,726           4,726           4,726
    TEMPORARY LODGING EXPENSE...................           2,802           2,802           2,802           2,802
    OTHER.......................................           1,698           1,698           1,698           1,698
                                                 ---------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 5................         227,754         227,754         227,754         227,754
ACTIVITY 6: OTHER MILITARY PERSONNEL COSTS
    APPREHENSION OF MILITARY DESERTERS..........             927             927             927             927
    INTEREST ON UNIFORMED SERVICES SAVINGS......              16              16              16              16
    DEATH GRATUITIES............................             990             990             990             990
    UNEMPLOYMENT BENEFITS.......................          27,846          27,846          27,846          27,846
    SURVIVOR BENEFITS...........................           1,614           1,614           1,614           1,614
    EDUCATION BENEFITS..........................           6,039          11,939          11,039           6,039
    ADOPTION EXPENSES...........................              47              47              47              47
    ADVANCE MILITARY PAY........................          18,000  ..............  ..............  ..............
                                                 ---------------------------------------------------------------
    TOTAL, BUDGET ACTIVITY 6....................          55,479          43,379          42,479          37,479
    LESS REIMBURSABLES..........................         -32,036         -32,036         -32,036         -32,036
    FOREIGN CURRENCY FLUCTUATION................  ..............          -3,200          -2,000  ..............
    PERSONNEL UNDEREXECUTION....................  ..............         -18,600          -8,900          -9,000
    PAY RAISE INCREASE..........................  ..............  ..............  ..............          18,598
                                                 ---------------------------------------------------------------
        TOTAL, MILITARY PERSONNEL, MARINE CORPS.       6,272,089       6,241,189       6,253,189       6,263,387
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 6: Other Military Personnel Costs:
  Advance Military Pay..........................................-18,000
Undistributed:
  Personnel Underexecution.......................................-9,300
  Pay Raise Increase.............................................18,598

                     Military Personnel, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
MILITARY PERSONNEL, AIR FORCE
ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER
BASIC PAY.......................................       3,346,985       3,346,985       3,346,985       3,346,985
RETIRED PAY ACCRUAL.............................       1,010,789       1,010,789       1,010,789       1,010,789
BASIC ALLOWANCE FOR HOUSING.....................         579,333         579,333         579,333         579,333
BASIC ALLOWANCE FOR SUBSISTENCE.................         136,285         136,285         136,285         136,285
INCENTIVE PAYS..................................         208,497         208,497         208,497         208,497
SPECIAL PAYS....................................         188.576         188,576         188,576         188,576
ALLOWANCES......................................          92,782          92,782          92,782          92,782
SEPARATION PAY..................................         108,876         108,876         108,876         108,876
SOCIAL SECURITY TAX.............................         289,575         289,575         289,575         289,575
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..................       5,961,698       5,961,698       5,961,698       5,961,698
ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED
 PERSONNEL
BASIC PAY.......................................       5,851,982       5,851,982       5,851,982       5,851,982
RETIRED PAY ACCRUAL.............................       1,767,299       1,767,299       1,767,299       1,767,299
BASIC ALLOWANCE FOR HOUSING.....................       1,008,454       1,008,454       1,008,454       1,008,454
INCENTIVE PAYS..................................          25,744          25,744          25,744          25,744
SPECIAL PAYS....................................          80,528          80,528          80,528          80,528
ALLOWANCES......................................         415,835         415,835         415,835         415,835
SEPARATION PAY..................................          66,262          66,262          66,262          66,262
SOCIAL SECURITY TAX.............................         508,263         508,263         508,263         508,263
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2..................       9,724,367       9,724,367       9,724,367       9,724,367
ACTIVITY 3: PAY AND ALLOWANCES OF CADETS
ACADEMY CADETS..................................          36,021          36,021          36,021          36,021
ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL
BASIC ALLOWANCE FOR SUBSISTENCE.................         683,108         683,108         683,108         683,108
SUBSISTENCE-IN-KIND.............................         111,954         111,954         111,954         111,954
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4..................         795,062         795,062         795,062         795,062
ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL
ACCESSION TRAVEL................................          54,193          54,193          54,193          54,193
TRAINING TRAVEL.................................          56,225          56,225          56,225          56,225
OPERATIONAL TRAVEL..............................         149,492         149,492         149,492         149,492
ROTATIONAL TRAVEL...............................         443,964         443,964         443,964         443,964
SEPARATION TRAVEL...............................          96,955          96,955          96,955          96,955
TRAVEL OF ORGANIZED UNITS.......................          27,455          27,455          27,455          27,455
NON-TEMPORARY STORAGE...........................          22,714          22,714          22,714          22,714
TEMPORARY LODGING EXPENSE.......................          38,417          38,417          38,417          38,417
OTHER...........................................           2,531           2,531           2,531           2,531
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 5..................         891,946         891,946         891,946         891,946
ACTIVITY 6: OTHER MILITARY PERSONNEL COSTS
APPREHENSION OF MILITARY DESERTERS..............             100             100             100             100
INTEREST ON UNIFORMED SERVICES SAVINGS..........             575             575             575             575
DEATH GRATUITIES................................           1,470           1,470           1,470           1,470
UNEMPLOYED BENEFITS.............................          41,623          37,623          41,623          37,623
SURVIVOR BENEFITS...............................           4,442           4,442           4,442           4,442
EDUCATION BENEFITS..............................           5,193           5,193           5,193           5,193
ADOPTION EXPENSES...............................             800             800             800             800
ADVANCE MILITARY PAY............................          53,000  ..............  ..............  ..............
OTHER...........................................             550             550             550             550
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 6..................         107,753          50,753          54,753          50,753
LESS REIMBURSABLES..............................        -205,164        -205,164        -205,164        -205,164
FOREIGN CURRENCY FLUCTUATION....................  ..............          -3,100          -3,623  ..............
PERSONNEL UNDEREXECUTION........................  ..............         -50,000         -53,000         -97,000
B-52 FORCE STRUCTURE............................  ..............  ..............           3,600           3,600
PAY RAISE INCREASE..............................  ..............  ..............  ..............          50,704
                                                 ---------------------------------------------------------------
      TOTAL, MILITARY PERSONNEL, AIR FORCE......      17,311,683      17,201,583      17,205,660      17,211,987
----------------------------------------------------------------------------------------------------------------


[[Page H8679]]

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 6: Other Military Personnel Costs:
  Unemployment Benefits..........................................-4,000
  Advance Military Pay..........................................-53,000
Undistributed:
  Personnel Underexecution......................................-97,000
  B-52 Force Structure............................................3,600
  Pay Raise Increase.............................................50,704

                   National Guard and Reserve Forces

       The conferees agree to provide $9,719,751,000 in Reserve 
     personnel appropriations, $9,810,398,000 in Operation and 
     maintenance appropriations and $352,000,000 in National Guard 
     and Reserve Equipment appropriation. These funds support a 
     Selected Reserve strength of 877,290 as shown below.

                          Reserve End Strength

                           [Fiscal year 1998]
------------------------------------------------------------------------
                                                              Conference
                                         Budget   Conference  vs. Budget
------------------------------------------------------------------------
Select Reserve:
    Army Reserve.....................    208,000     208,000  ..........
    Navy Reserve.....................     90,843      91,039        +196
    Marine Corps Reserve.............     40,018      40,018  ..........
    Air Force Reserve................     74,242      74,242  ..........
    Army National Guard..............    357,000     357,000  ..........
    Air National Guard...............    106,991     106,991  ..........
                                      ----------------------------------
      Total..........................    877,094     877,290        +196
                                      ==================================
AGR/TARS:
    Army Reserve.....................     11,804      12,804      +1,000
    Navy Reserve.....................     15,590      15,618         +28
    Marine Corps Reserve.............      2,362       2,362  ..........
    Air Force Reserve................        991         991  ..........
    Army National Guard..............     21,763      21,763  ..........
    Air National Guard...............     10,930      10,930  ..........
                                      ----------------------------------
      Total..........................     64,440      64,468      +1,028
                                      ==================================
Technicians:
    Army Reserve.....................      6,474       6,474  ..........
    Air Force Reserve................      9,761       9,761  ..........
    Army National Guard..............     23,815      24,761        +946
    Air National Guard...............     22,750      22,750  ..........
                                      ----------------------------------
      Total..........................     62,800      63,746        +946
------------------------------------------------------------------------

                        Reserve Personnel, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
 RESERVE PERSONNEL, ARMY:
     ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING:
       PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48)........      869,736      869,736      869,736      869,736
       PAY GROUP B TRAINING (BACKFILL FOR ACTIVE DUTY)......       26,345       26,345       26,345       26,345
       PAY GROUP F TRAINING (RECRUITS)......................      140,498      140,498      140,498      140,498
      PAY GROUP P TRAINING (PIPELINE RECRUITS)..............        8,024        8,024        8,024        8,024
                                                             ---------------------------------------------------
        TOTAL, BUDGET ACTIVITY 1............................    1,044,603    1,044,603    1,044,603    1,044,603
                                                             ===================================================
ACTIVITY 2: OTHER TRAINING AND SUPPORT:
    MOBILIZATION TRAINING...................................        7,330        7,330        7,330        7,330
    SCHOOL TRAINING.........................................       92,702       92,702       92,702       92,702
    SPECIAL TRAINING........................................      101,455      101,455      101,455      101,455
    ADMINISTRATION AND SUPPORT..............................      795,108      795,108      795,108      795,108
    EDUCATION BENEFITS......................................       20,996       20,996       20,996       20,996
    ROTC--SENIOR, JUNIOR SCHOLARSHIP........................       57,547       57,547       57,547       57,547
    HEALTH PROFESSION SCHOLARSHIP PROGRAM...................       21,554       21,554       21,554       21,554
    OTHER PROGRAMS..........................................       10,780       10,780       10,780       10,780
                                                             ---------------------------------------------------
        TOTAL, BUDGET ACTIVITY 2............................    1,107,472    1,107,472    1,107,472    1,107,472
                                                             ===================================================
PERSONNEL UNDEREXECUTION....................................  ...........       -5,400  ...........       -5,400
FULL TIME SUPPORT/AGR'S.....................................  ...........       25,000  ...........       15,000
PAY RAISE INCREASE..........................................  ...........  ...........  ...........        5,377
                                                             ---------------------------------------------------
      TOTAL RESERVE PERSONNEL, ARMY.........................    2,152,075    2,717,675    2,152,075    2,167,052
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Undistributed:
  Personnel Underexecution.......................................-5,400
  Full-time Support/AGR's........................................15,000
  Pay Raise Increase..............................................5,377

                        Reserve Personnel, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
RESERVE PERSONNEL, NAVY:
    ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING:
      PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48).........      551,421      551,421      551,421      551,421
                                                             ---------------------------------------------------
        TOTAL, BUDGET ACTIVITY 1............................      551,421      551,421      551,421      551,421
    ACTIVITY 2: OTHER TRAINING AND SUPPORT:
      MOBILIZATION TRAINING.................................        3,028        3,028        3,028        3,028
      SCHOOL TRAINING.......................................        6,091        6,091        6,091        6,091
      SPECIAL TRAINING......................................       21,741       21,741       21,741       21,741
      ADMINISTRATION AND SUPPORT............................      757,567      757,567      757,567      757,567
      EDUCATION BENEFITS....................................        3,983        3,983        3,983        3,983
      ROTC--SENIOR, JUNIOR, SCHOLARSHIP.....................       21,175       21,175       21,175       21,175
      HEALTH PROFESSION SCHOLARSHIP PROGRAM.................       18,892       18,892       18,892       18,892
      OTHER PROGRAMS........................................        3,481        3,481        3,481        3,481
                                                             ---------------------------------------------------
        TOTAL BUDGET ACTIVITY 2.............................      835,958      835,958      835,958      835,958
PERSONNEL UNDEREXECUTION....................................  ...........       -5,000  ...........       -5,000
CONTRIBUTORY SUPPORT TO CINCS...............................  ...........       10,000  ...........        5,000
ANNUAL TRAINING.............................................  ...........       33,000  ...........       33,000
P-3 SQUADRONS...............................................  ...........        2,600  ...........        2,600
PAY RAISE INCREASE..........................................  ...........  ...........  ...........        3,684
                                                             ---------------------------------------------------
    TOTAL, RESERVE PERSONNEL, NAVY..........................    1,387,379    1,427,979    1,387,379    1,426,663
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Undistributed:
  Personnel Underexection........................................-5,000
  Contributory Support to CINCs...................................5,000
  Annual Training................................................33,000
  P-3 Squadrons...................................................2,600
  Pay Raise Increase..............................................3,684

                    Reserve Personnel, Marine Corps

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

[[Page H8680]]


                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
RESERVE PERSONNEL, MARINE CORPS:
  ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING:
      PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48).........      142,438      142,438      142,438      142,438
      PAY GROUP B TRAINING (BACKFILL FOR ACTIVE DUTY).......       14,951       14,951       14,951       14,951
      PAY GROUP F TRAINING (RECRUITS).......................       57,276       57,276       57,276       57,276
      PAY GROUP P TRAINING (PIPELINE RECRUITS)..............          286          286          286          286
                                                             ---------------------------------------------------
        TOTAL, BUDGET ACTIVITY 1............................      214,951      214,951      214,951      214,951
ACTIVITY 2: OTHER TRAINING AND SUPPORT:
    MOBILIZATION TRAINING...................................        1,933        1,933        1,933        1,933
    SCHOOL TRAINING.........................................        8,736        8,736        8,736        8,736
    SPECIAL TRAINING........................................       23,417       23,417       23,417       23,417
    ADMINISTRATION AND SUPPORT..............................      126,402      126,402      126,402      126,402
    EDUCATION BENEFITS......................................       14,240       14,240       14,240       14,240
    ROTC--SENIOR, JUNIOR, SCHOLARSHIP.......................        3,184        3,184        3,184        3,184
    OTHER PROGRAMS..........................................        9,025        9,025        9,025        9,025
                                                             ---------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2..............................      186,937      186,937      186,937      186,937
PERSONNEL UNDEREXECUTION....................................  ...........       -2,000  ...........  ...........
INCREASED USE OF GUARD AND RESERVE..........................  ...........        3,400  ...........        3,400
JROTC.......................................................  ...........          225  ...........          225
PAY RAISE INCREASE..........................................  ...........  ...........  ...........        1,103
                                                             ---------------------------------------------------
    TOTAL, RESERVE PERSONNEL, MARINE CORPS..................      401,888      403,513      401,888      406,616
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Undistributed:
  Increased Use of Guard and Reserve..............................3,400
  JROTC Program.....................................................225
  Pay Raise Increase..............................................1,103

                      Reserve Personnel, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
RESERVE PERSONNEL, AIR FORCE:
ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING PAY             419,362         419,362         419,362         419,362
 GROUP A TRAINING (15 DAYS & DRILLS 24/48)......
PAY GROUP B TRAINING (BACKFILL FOR ACTIVE DUTY).          78,998          78,998          78,998          78,998
PAY GROUP F TRAINING (RECRUITS).................           4,452           4,452           4,452           4,452
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..................         502,812         502,812         502,812         502,812
                                                 ===============================================================
ACTIVITY 2: OTHER TRAINING AND SUPPORT                     2,779           2,779           2,779           2,779
 MOBILIZATION TRAINING..........................
SCHOOL TRAINING.................................          62,254          62,254          62,254          62,254
SPECIAL TRAINING................................         143,526         143,526         143,526         143,526
ADMINISTRATION AND SUPPORT......................          85,601          85,601          85,601          85,601
ROTC--SENIOR, JUNIOR, SCHOLARSHIP...............          34,922          34,922          34,922          34,922
HEALTH PROFESSION SCHOLARSHIP...................          24,282          24,282          24,282          24,282
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2..................         353,364         353,364         353,364         353,364
                                                 ===============================================================
PERSONNEL UNDEREXECUTION........................  ..............          -5,600  ..............          -6,000
PAY RAISE INCREASE..............................  ..............  ..............  ..............           2,148
                                                 ---------------------------------------------------------------
      TOTAL, RESERVE PERSONNEL, AIR FORCE.......         856,176         850,576         856,176         852.324
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Undistributed:
  Personnel Underexecution.......................................-6,000
  Pay Raise Increase..............................................2,148

                     National Guard Personnel, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
NATIONAL GUARD PERSONNEL, ARMY
ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING PAY           1,650,385       1,650,385       1,650,385       1,650,385
 GROUP A TRAINING (15 DAYS & DRILLS 24/48)......
PAY GROUP F TRAINING (RECRUITS).................         154,688         154,688         154,688         154,688
PAY GROUP P TRAINING (PIPELINE RECRUITS)........          12,867          12,867          12,867          12,867
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..................       1,817,940       1,817,940       1,817,940       1,817,940
                                                 ===============================================================
ACTIVITY 2: OTHER TRAINING AND SUPPORT SCHOOL             81,189         126,189         167,189         146,189
 TRAINING.......................................
SPECIAL TRAINING................................          28,845          58,845          28,845          49,845
ADMINISTRATION AND SUPPORT......................       1,433,393       1,433,393       1,442,393       1,433,393
EDUCATION BENEFITS..............................          43,228          43,228          43,228          43,228
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2..................       1,586,655       1,661,655       1,681,655       1,672,655
                                                 ===============================================================
PERSONNEL UNDEREXECUTION........................  ..............         -66,400  ..............         -10,000
PAY RAISE INCREASE..............................  ..............  ..............  ..............           9,392
                                                 ---------------------------------------------------------------
      TOTAL, NATIONAL GUARD PERSONNEL, ARMY.....       3,404,595       3,413,195       3,499,595       3,489,987
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 2: Other Training and Support:
  School Training................................................65,000
  Special Training...............................................21,000
Undistributed:
  Personnel Underexecution......................................-10,000
  Pay Raise Increase..............................................9,392

                  National Guard Personnel, Air Force

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

[[Page H8681]]


                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
National Guard Personnel, Air Force:
Activity 1: Unit and Individual Training:.......
Pay Group A Training (15 Days & Drills 24/48)...         590,972         590,972         590,972         590,972
Pay Group F Training (Recruits).................          22,395          22,395          22,395          22,395
Pay Group P Training (Pipeline Recruits)........           1,064           1,064           1,064           1,064
                                                 ---------------------------------------------------------------
      Total, Budget Activity 1..................         614,431         614,431         614,431         614,431
                                                 ===============================================================
Activity 2: Other Training and Support School             95,105          95,105          95,105          95,105
 Training.......................................
Special Training................................          60,780          60,780          60,780          60,780
Administration and Support......................         598,634         598,634         598,634         598,634
Education Benefits..............................           7,147           7,147           7,147           7,147
                                                 ---------------------------------------------------------------
      Total, Budget Activity 2..................         761,666         761,666         761,666         761,666
                                                 ===============================================================
Personnel Underexecution........................  ..............          -3,100  ..............          -3,100
Pay Raise Increase..............................  ..............  ..............  ..............           4,112
                                                 ---------------------------------------------------------------
      Total, National Guard Personnel, Air Force       1,376,097       1,372,997       1,376,097       1,377,109
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Undistributed:
  Personnel Underexecution.......................................-3,100
  Pay Raise Increase..............................................4,112


                      air national guard engineers

       The conferees direct the Secretary of the Air Force to 
     report no later than March 1, 1999, on how Air National Guard 
     and Air Force Reserve civil engineering personnel are 
     utilized in the war plans. The report should have the 
     concurrence or view of the Chief of the National Guard Bureau 
     and the Chief of the Air Force Reserve.

                  TITLE II--OPERATION AND MAINTENANCE

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
               RECAPITULATION
 
O & M, ARMY.................................      17,223,063       16,936,503       17,212,463       17,185,623
    TRANSFER--STOCKPILE.....................         (50,000)         (50,000)         (50,000)         (50,000)
    TRANSFER TO QUALITY OF LIFE ENHANCEMENTS  ...............  ...............       (-130,000)  ...............
    TRANSFER TO PENTAGON RENOVATION TRANSFER  ...............  ...............        (-96,000)        (-96,000)
     FUND...................................
O & M, NAVY.................................      21,877,202       21,638,999       21,813,315       21,872,399
    TRANSFER--STOCKPILE.....................         (50,000)         (50,000)         (50,000)         (50,000)
    TRANSFER TO QUALITY OF LIFE ENHANCEMENTS  ...............  ...............        (-48,000)  ...............
    TRANSFER TO PENTAGON RENOVATION TRANSFER  ...............  ...............        (-32,087)        (-32,087)
     FUND...................................
O & M, MARINE CORPS.........................       2,523,703        2,585,118        2,576,190        2,578,718
    TRANSFER TO QUALITY OF LIFE ENHANCEMENTS  ...............  ...............        (-36,000)  ...............
    TRANSFER TO PENTAGON RENOVATION TRANSFER  ...............  ...............         (-9,513)         (-9,513)
     FUND...................................
O & M, AIR FORCE............................      19,127,004       19,024,233       19,064,941       19,021,045
    TRANSFER--STOCKPILE.....................         (50,000)         (50,000)         (50,000)         (50,000)
    TRANSFER TO QUALITY OF LIFE ENHANCEMENT.  ...............  ...............        (-50,000)  ...............
    TRANSFER TO PENTAGON RENOVATION TRANSFER  ...............  ...............        (-52,200)        (-52,200)
     FUND...................................
O & M, DEFENSEWIDE..........................      10,750,601       10,804,542       10,259,231       10,914,076
    TRANSFER TO PENTAGON RENOVATION TRANSFER  ...............  ...............  ...............        (-90,020)
     FUND...................................
O & M, ARMY RESERVE.........................       1,202,622        1,201,222        1,202,622        1,202,622
O & M, NAVY RESERVE.........................         928,639          949,039          928,639          957,239
O & M, MARINE CORPS RESERVE.................         114,593          119,093          114,593          117,893
O & M, AIR FORCE RESERVE....................       1,744,696        1,735,996        1,744,696        1,747,696
O & M, ARMY NATIONAL GUARD..................       2,436,815        2,570,315        2,661,815        2,678,015
O & M, AIR NATIONAL GUARD...................       3,093,933        3,075,233        3,113,933        3,106,933
OVERSEAS CONTINGENCY OPERATIONS TRANSFER             746,900          746,900          746,900          439,400
 FUND.......................................
PENTAGON RENOVATION TRANSFER FUND...........  ...............  ...............         279,820   ...............
TRANSFER....................................  ...............  ...............  ...............        (279,820)
UNITED STATES COURT OF APPEALS FOR THE ARMED           7,324            7,324            7,324            7,324
 FORCES.....................................
ENVIRONMENTAL RESTORATION, ARMY.............         377,640          342,640          370,640          370,640
ENVIRONMENTAL RESTORATION, NAVY.............         281,600          281,600          274,600          274,600
ENVIRONMENTAL RESTORATION, AIR FORCE........         379,100          379,100          372,100          372,100
ENVIRONMENTAL RESTORATION, DEFENSE-WIDE.....          26,091           26,091           23,091           26,091
ENVIRONMENTAL RESTORATION, FORMERLY USED             195,000          195,000          225,000          225,000
 DEFENSE SITES..............................
OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC            63,311           56,111           50,000           50,000
 AID........................................
FORMER SOVIET UNION THREAT REDUCTION........         442,400          417,400          440,400          440,400
CONTINGENCY OPERATIONS MWR FUND.............  ...............  ...............          50,000   ...............
QUALITY OF LIFE ENHANCEMENTS, DEFENSE.......  ...............         850,000   ...............         455,000
TRANSFER....................................  ...............  ...............        (264,000)  ...............
                                             -------------------------------------------------------------------
      GRAND TOTAL, O & M....................      83,542,237       83,942,459       83,532,313       84,042,814
TRANSFERS...................................        (150,000)        (150,000)       (-129,820)        (150,000)
                                             -------------------------------------------------------------------
      TOTAL FUNDS AVAILABLE, O & M..........      83,692,237       84,092,459       83,402,493       84,192,814
----------------------------------------------------------------------------------------------------------------

                           military readiness

       The conferees agree with the concerns delineated in Section 
     8160 of the Senate-passed fiscal year 1999 Defense 
     Appropriations bill, and the concerns expressed in the report 
     accompanying the House-passed fiscal year 1999 defense 
     Appropriations bill with regards to the indications of 
     declining readiness within the Military Services.
       Accordingly, the conferees direct the Secretary of Defense 
     to submit a report to the congressional defense committees 
     not later than June 1, 1999, on the readiness of the Armed 
     Forces of the United States. The Secretary shall include in 
     the report detailed information on each of the following 
     issues: (1) An assessment of current force structure and its 
     sufficiency to execute the National Security Strategy; (2) A 
     service-by-service outline of the force structure expected to 
     be committed to a major regional contingency as envisioned in 
     the National Security Strategy; (3) A comparison of the force 
     structure outlined in item (2) with the service-by-service 
     order of battle in Desert Shield/Desert Storm as a 
     representative recent major regional conflict; (4) An 
     assessment of the force structure and projected defense 
     appropriations increases necessary to execute the National 
     Security Strategy of the United States assuming current 
     projected ground force levels assigned to the peacekeeping 
     mission in Bosnia are unchanged; (5) A discussion of the 
     United States ground, naval and air force levels in Bosnia 
     that can be sustained without impacting the ability of the 
     Armed Forces to execute the National Security Strategy 
     assuming no increase in force structure or defense 
     appropriations during the period in which forces are assigned 
     to Bosnia; and (6) A complete assessment of recent trends in 
     the Measured readiness of United States forces with a focus 
     on current manning shortfalls, recent declines in aviation 
     mission capable rates, and below standard levels of ground 
     forces training.


                operation and maintenance reprogrammings

       The conferees agree that proposed transfers of funds 
     between O-1 budget activities in excess of $15,000,000 are 
     subject to normal, prior approval reprogramming procedures. 
     In addition, due to continuing concerns about force readiness 
     and the diversion of Operation and Maintenance funds, the 
     conferees agree that the Department should provide written 
     notification to the congressional defense committees for the 
     cumulative value of any and all transfers in excess of 
     $15,000,000 from the following budget activities and 
     subactivity group categories:

[[Page H8682]]

     Operation and Maintenance, Army
       Land Forces: Divisions, Corps combat forces, Corps support 
     forces, Echelon above corps forces, Land forces operations 
     support; Land Forces Readiness: Land forces depot 
     maintenance; Logistics operations: Ammunition management.
     Operation and Maintenance, Navy
       Air Operations: Mission and other flight operations, Fleet 
     air training, Aircraft depot maintenance; Ship Operations: 
     Mission and other ship operations, Ship operational support 
     and training, Intermediate maintenance, Ship depot 
     maintenance.
     Operation and Maintenance, Marine Corps
       Expeditionary Forces: Operational forces, depot 
     maintenance.
     Operation and Maintenance, Air Force
       Air Operations: Primary combat forces, Primary combat 
     weapons, Air operations training, Depot maintenance; Mobility 
     Operations: Airlift operations, Depot maintenance, Payments 
     to the transportation business area; Basic Skills and 
     Advanced Training: Depot maintenance; Logistics Operations: 
     Depot maintenance.
       Further, the Department should follow prior approval 
     reprogramming procedures for transfers in excess of 
     $15,000,000 out of the following budget subactivities.
     Operation and Maintenance
       Depot maintenance
     Operation and Maintenance, Navy:
       Aircraft depot maintenance,
       Ship depot maintenance
     Operation and Maintenance, Marine Corps:
       Depot maintenance
     Operation and Maintenance, Air Force:
       Air Operations, Depot maintenance,
       Mobility Operations, Depot maintenance,
       Basic Skills and Advanced Training, Depot maintenance, and
       Logistics Operations, Depot maintenance.


            operation and maintenance budget execution data

       The conferees support the position expressed in the House 
     report accompanying the Defense Appropriations bill for 
     fiscal year 1999 requiring the Department of Defense to 
     provide the congressional defense committees with quarterly 
     budget execution data. Such data should be provided not later 
     than forty-five days past the close of each quarter of the 
     fiscal year, and should be provided for each O-1 budget 
     activity, activity group, and subactivity for each of the 
     active, defense-wide, reserve and national guard components. 
     For each O-1 budget activity, activity group and subactivity, 
     these reports should include: the budget request and actual 
     obligations; the DoD distribution of unallocated 
     congressional adjustments to the budget request; all 
     adjustments made by DoD during the process of rebaselining 
     the O&M accounts; all adjustments resulting from below 
     threshold reprogrammings; and all adjustments resulting from 
     prior approval reprogramming requests.
       In addition, the conferees require that the Department of 
     Defense provide semiannual written notifications to the 
     congressional defense committees which summarize Operation 
     and Maintenance budget execution to include the effect of 
     rebaselining procedures, other below threshold 
     reprogrammings, and prior approval reprogrammings. The 
     conferees further direct that the Department of Defense 
     provide the House and Senate Committees on Appropriations 
     written notification 30 days prior to executing procedures to 
     rebaseline the Operation and Maintenance accounts.


                   pentagon renovation transfer fund

       The conferees agree to Senate language which establishes 
     the Pentagon Renovation Transfer Fund, totaling $279,820,000 
     by transfer from the active component and Defense-Wide 
     Operation and Maintenance accounts.


             dod outsourcing and privatization initiatives

       The conferees are aware of large scale efforts by DoD to 
     privatize many of its support and infrastructure functions in 
     order to reduce costs and free up resources for readiness and 
     modernization. For example, the Defense Reform Initiative 
     projected that DoD could save $6 billion from competing 
     150,000 civilian positions over the next five years. However, 
     the conferees harbor significant concerns about DoD's 
     privatization strategy, primarily due to the risk of building 
     unrealistic savings estimates into the budget request. 
     Specifically, these concerns include: 1) uncertainty as to 
     the criteria used to select activities or functions as 
     candidates for outsourcing; 2) the apparent lack of any 
     method to validate savings assumed in DoD budget estimates; 
     and, 3) the lack of any systems or methods to assess the 
     impact of outsourcing on the readiness or combat power of DoD 
     forces. Accordingly, the conferees direct that the Secretary 
     of Defense submit a report, not later than March 31, 1999, 
     which provides a detailed assessment of the results of DoD's 
     privatization strategy to date. The report shall specify 
     those functions or activities selected for outsourcing, and 
     the criteria used select these functions or activities. The 
     report shall also detail the net savings achieved by 
     outsourcing in fiscal years 1996-1998. This element of the 
     report shall also include estimates of the number of 
     contractor workyears compared to the number of civilian 
     workyears required to perform functions which have been 
     privatized.


                   lightweight maintenance enclosures

       The conferees direct that $5,000,000 of the funds made 
     available in Operation and Maintenance, Marine Corps be used 
     only for the acquisition of lightweight maintenance 
     enclosures.


                     competitive banking procedures

       It is the conferees' intent that the provision of banking 
     services provided by any bank or credit union on military 
     installations and at facilities in the United States shall 
     include the broad range of services including at least all of 
     the following: the receipt of money for deposit, check or 
     draft cashing services, the origination of loans or other 
     extensions of credit, the issuance of promissory notes, and 
     the provision of electronic banking and automated teller 
     machines. The conferees direct the Department of Defense to 
     submit a report to the Committees on Appropriations by 
     February 1, 1999, on the DoD and services policies and 
     procedures for provision of banking services on the basis of 
     full and open competition.


                report on security in the taiwan strait

       On or before February 1, 1999, the Department of Defense 
     shall provide to Congress a report, in both classified and 
     unclassified form, detailing the security situation in the 
     Taiwan Strait. Such report shall include an analysis of the 
     military forces facing Taiwan from the People's Republic of 
     China, evaluating recent additions to the offensive military 
     capabilities of the People's Republic of China. It should 
     also assess new challenges to the deterrent forces of the 
     Republic of China on Taiwan, consistent with the commitments 
     made by the United States in the Taiwan Relations Act, Public 
     Law 96-8.

                    Operation and Maintenance, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
         OPERATION AND MAINTENANCE, ARMY
 
BUDGET ACTIVITY 1: OPERATING FORCES:
LAND FORCES:
    DIVISIONS...................................      1,091,232       1,152,432       1,098,732       1,172,932
    CORPS COMBAT FORCES.........................        299,739         299,739         299,739         299,739
    CORPS SUPPORT FORCES........................        316,361         316,361         316,361         316,361
    ECHELON ABOVE CORPS FORCES..................        434,579         434,579         434,579         434,579
    LAND FORCES OPERATIONS SUPPORT..............        824,557         824,557         824,557         824,557
LAND FORCES READINESS:
    FORCE READINESS OPERATIONS SUPPORT..........        973,814         973,814         974,814         974,814
    LAND FORCES SYSTEMS READINESS...............        375,038         375,038         375,038         375,038
    LAND FORCES DEPOT MAINTENANCE...............        570,723         620,723         570,723         590,723
LAND FORCES READINESS SUPPORT:
    BASE SUPPORT................................      2,332,231       2,549,179       2,332,231       2,334,231
    MAINTENANCE OF REAL PROPERTY................        641,651         641,651         641,651         641,651
    MANAGEMENT AND OPERATIONAL HEADQUARTERS.....        110,538         110,538         110,538         110,538
    UNIFIED COMMANDS............................         71,990          71,990          71,990          71,990
    MISCELLANEOUS ACTIVITIES....................         63,478          63,478          63,478          63,478
                                                 ---------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 1................      8,105,931       8,434,079       8,114,431       8,210,631
BUDGET ACTIVITY 2: MOBILIZATION:
MOBILITY OPERATIONS:
    STRATEGIC MOBILIZATION......................        314,541         314,541         314,541         314,541
    ARMY PREPOSITIONED STOCKS...................        165,349         165,349         165,349         165,349
    INDUSTRIAL PREPAREDNESS.....................         78,645          58,845          78,645          58,845
    MAINTENANCE OF REAL PROPERTY................         66,100          66,100          66,100          66,100
                                                 ---------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 2................        624,635         604,835         624,635         604,835
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:
ACCESSION TRAINING:
    OFFICER ACQUISITION.........................         63,580          63,580          62,180          62,180

[[Page H8683]]

 
    RECRUIT TRAINING............................         14,264          14,264          14,264          14,264
    ONE STATION UNIT TRAINING...................         14,909          14,909          14,909          14,909
    RESERVE OFFICER TRAINING CORPS (ROTC).......        130,270         130,270         131,270         131,270
    BASE SUPPORT (ACADEMY ONLY).................         72,999          78,631          72,999          72,999
    MAINTENANCE OF REAL PROPERTY (ACADEMY ONLY).         42,979          42,979          42,979          42,979
BASIC SKILL/ADVANCE TRAINING:
    SPECIALIZED SKILL TRAINING..................        215,964         215,964         215,964         215,964
    FLIGHT TRAINING.............................        226,501         226,501         226,501         226,501
    PROFESSIONAL DEVELOPMENT EDUCATION..........        192,720          88,920         185,020          77,020
    TRAINING SUPPORT............................        488,799         488,799         488,799         488,799
    BASE SUPPORT (OTHER TRAINING)...............        782,265         842,622         782,265         782,265
    MAINTENANCE OF REAL PROPERTY (OTHER                 258,927         258,927         258,927         258,927
     TRAINING)..................................
RECRUITING/OTHER TRAINING:
    RECRUITING AND ADVERTISING..................        234,154         234,154         234,154         234,154
    EXAMINING...................................         71,593          71,593          71,593          71,593
    OFF-DUTY AND VOLUNTARY EDUCATION............        100,203         101,203         100,203         100,203
    CIVILIAN EDUCATION AND TRAINING.............         73,517          73,517          73,517          73,517
    JUNIOR ROTC.................................         73,423          73,423          73,423          73,423
    BASE SUPPORT (RECRUITING LEASES)............        178,496         178,496         178,496         178,496
                                                 ---------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 3................      3,235,563       3,198,752       3,227,463       3,119,463
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
 ACTIVITIES:
SECURITY PROGRAMS:
    SECURITY PROGRAMS...........................        404,340         404,340         404,340         404,340
LOGISTICS OPERATIONS:
    SERVICEWIDE TRANSPORTATION..................        398,473         398,473         398,473         398,473
    CENTRAL SUPPLY ACTIVITIES...................        370,824         370,824         370,824         370,824
    LOGISTIC SUPPORT ACTIVITIES.................        336,403         342,403         336,403         342,403
    AMMUNITION MANAGEMENT.......................        400,299         400,299         400,299         400,299
SERVICEWIDE SUPPORT:
    ADMINISTRATION..............................        304,679         305,679         305,679         306,679
    SERVICEWIDE COMMUNICATIONS..................        606,379         566,379         606,379         606,379
    MANPOWER MANAGEMENT.........................        142,081         142,081         142,081         142,081
    OTHER PERSONNEL SUPPORT.....................        150,483         150,483         150,483         150,483
    OTHER SERVICE SUPPORT.......................        618,384         618,384         525,384         621,384
    ARMY CLAIMS ACTIVITIES......................        118,886         118,886         118,886         118,886
    REAL ESTATE MANAGEMENT......................         68,815          68,815          68,815          68,815
    BASE SUPPORT................................        700,689         754,752         700,689         708,689
    COMMISSARY OPERATIONS.......................        338,400         338,400         338,400         338,400
    MAINTENANCE OF REAL PROPERTY................         82,578          82,578          88,078          88,078
SUPPORT OF OTHER NATIONS:
    INTERNATIONAL MILITARY HEADQUARTERS.........        227,377         227,377         227,377         227,377
    MISC SUPPORT OF OTHER NATIONS...............         37,844          34,144          37,844          34,314
                                                 ---------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 4................      5,306,934       5,324,297       5,220,434       5,327,904
    CLASSIFIED PROGRAMS UNDISTRIBUTED...........  ..............          4,500          -2,200           3,750
    CIVILIAN PERSONNEL UNDERSTRENGTH............  ..............       -164,000        -120,000         -62,700
    GENERAL REDUCTION, NATIONAL DEFENSE                 -50,000         -50,000         -50,000         -50,000
     STOCKPILE FUND.............................
    FOREIGN CURRENCY FLUCTUATION................  ..............       -139,700         -81,300   ..............
    BASE SUPPORT................................  ..............  ..............        185,000         204,000
    TDY EXPENSES................................  ..............        -31,600   ..............        -31,600
    MEMORIAL EVENTS.............................  ..............            400   ..............            400
    HEADQUARTERS AND ADMIN ACTIVITIES...........  ..............        -38,500   ..............  ..............
    RENTS.......................................  ..............         -7,000   ..............         -7,000
    COMMUNICATIONS PURCHASES....................  ..............         -4,400   ..............         -4,400
    FUEL REPRICING..............................  ..............        -22,300         -36,000   ..............
    CONTRACT AND ADVISORY SERVICES..............  ..............        -40,200   ..............  ..............
    MISC EQUIPMENT..............................  ..............        -20,000   ..............        -15,000
    CRIMINAL INVESTIGATORS COMPUTERS & TRAINING   ..............        -18,000   ..............        -18,000
     EFFICIENCY.................................
    ADP LEGACY SYSTEM EFFICIENCIES..............  ..............        -96,660   ..............        -96,660
    REAL PROPERTY MAINTENANCE...................  ..............  ..............        130,000   ..............
    CONSEQUENCE MANAGEMENT......................  ..............          2,000   ..............  ..............
                                                 ---------------------------------------------------------------
        TOTAL, OPERATION AND MAINTENANCE, ARMY..     17,223,063      16,936,503      17,212,463      17,185,623
            TRANSFER............................        (50,000)        (50,000)        (50,000)        (50,000)
            TRANSFER TO QUALITY OF LIFE           ..............  ..............      (-130,000)  ..............
             ENHANCEMENTS.......................
            TRANSFER TO PENTAGON RENOVATION       ..............  ..............       (-96,000)       (-96,000)
             TRANSFER FUND......................
                                                 ---------------------------------------------------------------
        TOTAL FUNDING AVAILABLE.................    (17,273,063)    (16,986,503)    (17,036,463)    (17,139,623)
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  Readiness Training-National Training Center (NTC)..............60,200
  Soldier life support systems...................................18,000
  Cold weather boots; 2ID.........................................2,000
  Parachute maintenance and repair................................1,000
  Ultra lightweight camouflage net system...........................500
  Fort Chaffee Training Center....................................1,000
  Depot Maintenance..............................................20,000
  Ft Irwin, George AFB............................................2,000
Budget Activity 2: Mobilization:
  Industrial Preparedness.......................................-19,800
Budget Activity 3: Training and Recruiting:
  Service academic; foreign students.............................-1,400
  Air Battle Captain Program......................................1,000
  Foreign military students; Fort Leavenworth.......................800
  National Defense University consolidation......................-8,500
  Defense Acquisition University...............................-108,000
Budget Activity 4: Administration and Servicewide Activities:
  Super computing Work............................................6,000
  Advanced local emergency response team..........................1,000
  Lewis & Clark...................................................1,000
  Army conservation and ecosystem management......................3,000
  UC-35A Basing and Sustainment...................................8,000
  Rock Island bridge repairs......................................5,500
  Program increase..................................................170
  Misc Support to Other Nations..................................-3,700
Undistributed:
  Classified Programs Undistributed...............................3,750
  Civilian Personnel Underexecution.............................-62,700
  Base support shortfalls.......................................204,000
  Temporary Duty Travel.........................................-31,600
  Memorial Events...................................................400
  Rents..........................................................-7,000
  Communications Purchases.......................................-4,400
  Miscellaneous Equipment.......................................-15,000
  Criminal Investigators Computers & Training...................-18,000
  ADP Legacy System efficiencies................................-96,660


               domestic preparedness sustainment training

       The conferees direct that of the funds provided in 
     Operation and Maintenance, Army, $1,500,000 be used only to 
     commence establishment of a Domestic Preparedness Sustainment 
     Training Center at Pine Bluff Arsenal, as recommended in 
     Senate Report 105-200.


                             army arsenals

       The conferees are concerned about the effect of DoD's 
     outsourcing and privatization initiatives in certain critical 
     defense functions. Accordingly, the conferees direct that the 
     Army provide 90 days prior notice to the congressional 
     defense committees before awarding any new contracts pursuant 
     to A-76 related studies at Pine Bluff Arsenal, Pine Bluff, 
     Arkansas; Rock Island Arsenal, Rock

[[Page H8684]]

     Island, Illinois; or Watervliet Arsenal, Watervliet, New 
     York.


                rotary wing aircraft sustainment project

       The conferees direct that $3,500,000 shall be used for the 
     rotary wing aircraft sustainment project at the Corpus 
     Christi Army Depot, from within the funds provided in 
     Operation and Maintenance, Army.


              army institute for professional development

       The conferees agree that of the funds provided for 
     Operation and Maintenance, Army, $1,000,000 should be used 
     only for the Army Institute for Professional Development.

                    Operation and Maintenance, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
       OPERATION AND MAINTENANCE, NAVY
 
4300 BUDGET ACTIVITY 1: OPERATING FORCES:
  AIR OPERATIONS:
    MISSION AND OTHER FLIGHT OPERATIONS.....       2,089,630        2,134,630        2,142,130        2,098,630
    FLEET AIR TRAINING......................         751,533          751,533          751,533          751,533
    INTERMEDIATE MAINTENANCE................          46,925           46,925           46,925           46,925
    AIR OPERATIONS AND SAFETY SUPPORT.......          88,459           88,459           88,459           88,459
    AIRCRAFT DEPOT MAINTENANCE..............         735,731          810,731          735,731          735,731
    AIRCRAFT DEPOT OPERATIONS SUPPORT.......          20,249           20,249           20,249           20,249
    BASE SUPPORT............................         772,678          772,678          772,678          772,678
    MAINTENANCE OF REAL PROPERTY............         283,600          283,600          283,600          283,600
  SHIP OPERATIONS:
    MISSION AND OTHER SHIP OPERATIONS.......       1,987,873        1,987,873        1,987,873        1,987,873
    SHIP OPERATIONAL SUPPORT AND TRAINING...         541,069          541,069          541,069          541,069
    INTERMEDIATE MAINTENANCE................         388,408          388,408          388,408          388,408
    SHIP DEPOT MAINTENANCE..................       1,947,424        2,037,424        1,977,424        1,977,424
    SHIP DEPOT OPERATIONS SUPPORT...........       1,147,209        1,147,209        1,147,209        1,147,209
    BASE SUPPORT............................         832,789          832,789          832,789          832,789
    MAINTENANCE OF REAL PROPERTY............         248,601          248,601          248,601          248,601
  COMBAT OPERATIONS/SUPPORT:
    COMBAT COMMUNICATIONS...................         234,450          234,450          234,450          234,450
    ELECTRONIC WARFARE......................           7,734            7,734            7,734            7,734
    SPACE SYSTEMS AND SURVEILLANCE..........         138,271          138,271          138,271          138,271
    WARFARE TACTICS.........................         134,014          134,014          140,014          140,014
    OPERATIONAL METEOROLOGY AND OCEANOGRAPY.         228,159          228,159          242,659          242,659
    COMBAT SUPPORT FORCES...................         444,072          444,072          444,072          444,072
    EQUIPMENT MAINTENANCE...................         170,937          171,937          170,937          171,937
    DEPOT OPERATIONS SUPPORT................             694              694              694              694
    BASE SUPPORT............................         312,259          312,259          312,259          312,259
    MAINTENANCE OF REAL PROPERTY............          52,603           52,603           52,603           52,603
  WEAPONS SUPPORT:
    CRUISE MISSILE..........................         121,192          116,292          121,192          116,292
    FLEET BALLISTIC MISSILE.................         812,041          812,041          812,041          812,041
    IN-SERVICE WEAPONS SYSTEMS SUPPORT......          61,598           61,598           61,598           61,598
    WEAPONS MAINTENANCE.....................         389,469          394,469          419,469          419,469
    BASE SUPPORT............................         119,868          119,868          119,868          119,868
    MAINTENANCE OF REAL PROPERTY............          31,675           31,675           31,675           31,675
    WORKING CAPITAL FUND SUPPORT:
      NWCF SUPPORT..........................          43,300           43,300           43,300           43,300
                                             -------------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 1............      15,184,514       15,395,614       15,317,514       15,270,114
                                             ===================================================================
BUDGET ACTIVITY 2: MOBILIZATION:
    READY RESERVE AND PREPOSITIONING FORCES:
      SHIP PREPOSITIONING AND SURGE.........         428,775          428,775          434,775          432,775
ACTIVATIONS/INACTIVATIONS:
    AIRCRAFT ACTIVATIONS/INACTIVATIONS......             651              651            8,151            8,151
    SHIP ACTIVATIONS/INACTIVATIONS..........         511,976          511,976          511,976          511,976
MOBILIZATION PREPAREDNESS:
    FLEET HOSPITAL PROGRAM..................          23,496           23,496           23,496           23,496
    INDUSTRY READINESS......................          16,166           14,466           16,166           14,466
    COAST GUARD SUPPORT.....................          17,229           17,229           17,229           17,229
                                             -------------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 2..............         998,293          996,593        1,011,793        1,008,093
                                             ===================================================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:
    ACCESSION TRAINING:
      OFFICER ACQUISITION...................          75,643           75,643           74,243           74,243
      RECRUIT TRAINING......................           4,556            4,556            4,556            4,556
      RESERVE OFFICERS TRAINING CORPS (ROTC)          69,087           69,087           69,087           69,087
      BASE SUPPORT..........................          57,036           57,036           57,036           57,036
      MAINTENANCE OF REAL PROPERTY..........          81,371           81,371           81,371           81,371
BASIC SKILLS AND ADVANCED TRAINING:
    SPECIALIZED SKILL TRAINING..............         237,916          237,916          237,916          237,916
    FLIGHT TRAINING.........................         315,874          315,874          315,874          315,874
    PROFESSIONAL DEVELOPMENT EDUCATION......          71,780           71,780           73,280           73,280
    TRAINING SUPPORT........................         138,319          145,319          138,319          145,319
    BASE SUPPORT............................         331,607          331,607          331,607          331,607
    MAINTENANCE OF REAL PROPERTY............          92,400           92,400           92,400           92,400
RECRUITING, AND OTHER TRAINING AND
 EDUCATION:
    RECRUITING AND ADVERTISING..............         130,415          151,215          130,415          130,415
    OFF-DUTY AND VOLUNTARY EDUCATION........          74,669           74,669           74,669           74,669
    CIVILIAN EDUCATION AND TRAINING.........          37,425           37,425           37,425           37,425
    JUNIOR ROTC.............................          22,830           22,830           22,830           22,830
    BASE SUPP0ORT...........................             451              451              451              451
    MAINTENANCE OF REAL PROPERTY............              61               61               61               61
                                             -------------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 3..............       1,741,440        1,769,240        1,743,540        1,748,540
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
 ACTIVITIES:
    SERVICEWIDE SUPPORT:
      ADMINISTRATION........................         565,193          565,193          565,193          565,193
      EXTERNAL RELATIONS....................          21,456           21,456           21,456           21,456
      CIVILIAN MANPOWER AND PERSON                   140,247          103,847          140,247          122,247
       MANAGEMENT...........................
      MILITARY MANPOWER AND PERSON                   125,125          125,125          125,125          125,125
       MANAGEMENT...........................
      OTHER PERSONNEL SUPPORT...............         201,014          201,014          201,014          201,014
      SERVICEWIDE COMMUNICATIONS............         244,766          244,766          244,766          244,766
      BASE SUPPORT..........................         228,046          228,046          228,046          228,046
      MAINTENANCE OF REAL PROPERTY..........          44,827           44,827           44,827           44,827
      COMMISSARY OPERATIONS.................         255,000          255,000          255,000          255,000
    LOGISTICS OPERATIONS AND TECHNICAL
     SUPPORT:
      SERVICEWIDE TRANSPORTATION............         144,245          144,245          144,245          144,245
      PLANNING, ENGINEERING AND DESIGN......         262,615          262,615          262,615          262,615
      ACQUISITION AND PROGRAM MANAGEMENT....         473,159          475,659          473,159          475,649
      AIR SYSTEMS SUPPORT...................         280,437          280,437          280,437          280,437
      HULL, MECHANICAL AND ELECTRICAL                 55,467           55,467           55,467           55,467
       SUPPORT..............................
      COMBAT/WEAPONS SYSTEMS................          41,700           41,700           41,700           41,700
      SPACE AND ELECTRONIC WARFARE SYSTEMS..          72,178           72,178           72,178           72,178
      BASE SUPPORT..........................         219,826          220,176          219,826          220,176

[[Page H8685]]

 
      MAINTENANCE OF REAL PROPERTY..........          40,722           40,722           55,722           55,722
    SECURITY PROGRAMS:
      SECURITY PROGRAMS.....................         568,257          568,257          568,257          568,257
      BASE SUPPORT..........................           8,814            8,814            8,814            8,814
      MAINTENANCE OF REAL PROPERTY..........           1,426            1,426            1,426            1,426
    SUPPORT OF OTHER NATIONS:
      INTERNATIONAL HEADQUARTERS AND                   8,435            8,435            8,435            8,435
       AGENCIES.............................
                                             -------------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 4............       4,002,955        3,969,405        3,987,868        4,003,805
    CLASSIFIED PROGRAMS UNDISTRIBUTED.......  ...............          17,367              500           17,867
    GENERAL REDUCTION, NATIONAL DEFENSE              -50,000          -50,000          -50,000          -50,000
     STOCKPILE FUND.........................
    FOREIGN CURRENCY FLUCTUATION............  ...............         -15,900           -7,900   ...............
    CIVILIAN PERSONNEL UNDERSTRENGTH........  ...............         -95,000         -106,000          -14,300
    BASE SUPPORT............................  ...............  ...............          35,000           39,000
    REAL PROPERTY MAINTENANCE...............  ...............  ...............          48,000   ...............
    TDY EXPENSES............................  ...............         -22,900   ...............         -22,900
    HEADQUARTERS AND ADMIN ACTIVITIES.......  ...............         -32,000   ...............  ...............
    EXCESS CARRY OVER (NCCOSC)..............  ...............         -52,000   ...............         -26,000
    FUEL REPRICING..........................  ...............        -108,700         -167,000   ...............
    FEDERAL EXCISE/STATE TAXES FOR FUELS....  ...............          -3,000   ...............          -3,000
    CONTRACT AND ADVISORY SERVICES..........  ...............         -31,000   ...............  ...............
    MISC EQUIPMENT..........................  ...............         -15,000   ...............         -15,000
    ADP LEGACY SYSTEMS EFFICIENCIES.........  ...............         -87,820   ...............         -87,820
    NAVY ENVIRONMENTAL LEADERSHIP PROGRAM...  ...............           4,000   ...............           3,000
    EXECUTIVE EDUCATION DEMONSTRATION PRJECT  ...............           1,000   ...............           1,000
                                             -------------------------------------------------------------------
        TOTAL, OPERATION AND MAINTENANCE,         21,877,202       21,638,999       21,813,315       21,872,399
         NAVY...............................
    TRANSFER................................         (50,000)         (50,000)         (50,000)         (50,000)
    TRANSFER TO QUALITY OF LIFE ENHANCEMENTS  ...............  ...............        (-48,000)  ...............
    TRANSFER TO PENTAGON RENOVATION TRANSFER  ...............  ...............        (-32,087)        (-32,087)
     FUND...................................
                                             -------------------------------------------------------------------
      TOTAL FUNDING AVAILABLE...............     (21,927,202)     (21,688,999)     (21,783,228)     (21,890,312)
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  ALQ-165 maintenance and repair..................................9,000
  Ship depot maintenance.........................................16,000
  Shipyard Apprentice Program....................................14,000
  PMRF............................................................6,000
  National Oceanography Partnering Program........................7,500
  Navy Meteorology and Oceanography Command.......................7,000
  Reverse Osmosis Desalinators....................................1,000
  Tactical Tomahawk..............................................-4,900
  Tomahawk recertification.......................................15,000
  Mk-45 overhaul line............................................10,000
  CIWS overhaul...................................................5,000
Budget Activity 2: Mobilization:
  6350 Dredging support inactive Reserve fleet....................4,000
  6450 Ship disposal initiative...................................7,500
  6650 Industrial Preparedness...................................-1,700
Budget Activity 3: Training and Recruiting:
  Service academies; foreign students............................-1,400
  Experimental MBA Program........................................1,500
  Interactive Distance Learning Courses-Electricity & Electronics.4,000
  CNET............................................................3,000
Budget Activity 4: Administration and Servicewide Activities:
  Pesonnel Management program growth............................-18,000
  NISE-East.......................................................1,000
  ATIS............................................................2,500
  Removal of Docks at Sound Lab.....................................350
  Adak facilities remediation and disposal.......................15,000
Undistributed:
  9360 Classified Programs Undistributed.........................17,867
  9390 Civilian Personnel Underexecution........................-14,300
  9395 Base support shortfalls...................................39,000
  9430 Temporary Duty Travel....................................-22,900
  9470 Excess Carryover (NCCOSC)................................-26,000
  9490 Federal Excise/State Sales Tax for fuels..................-3,000
  9510 Miscellaneous Equipment..................................-15,000
  9520 ADP Legacy System efficiencies...........................-87,820
  9540 Navy Environmental Leadership Program (East Coast).........3,000
  9590 Executive Education Demonstration Project..................1,000


                        ship disposal initiative

       The conferees concur with the Senate allocation of 
     $7,500,000 for a ship disposal initiative. This program is 
     not related to Section 8124 of this Act regarding ship 
     scrapping.


                  nas lemoore quality of life projects

       The conferees agree that the Navy must place priority on 
     constructing and upgrading quality of life facilities at 
     Naval Air Station Lemoore. The lack of adequate support 
     facilities at this location is having an adverse impact on F/
     A-18 pilot retention rates. The conferees direct the 
     Secretary of the Navy to review the five-year plan for 
     quality of life projects at this location and take 
     appropriate actions to add new projects to the plan and to 
     accelerate implementation of all quality of life projects at 
     this location.

                Operation and Maintenance, Marine Corps

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
   OPERATION AND MAINTENANCE, MARINE CORPS
 
BUDGET ACTIVITY 1: OPERATING FORCES:
    EXPEDITIONARY FORCES:
        OPERATIONAL FORCES..................         375,531          400,531          389,831          389,831
        FIELD LOGISTICS.....................         221,693          221,693          221,693          221,693
        DEPOT MAINTENANCE...................          78,713           99,413           78,713           99,413
        BASE SUPPORT........................         692,716          701,539          692,716          692,716
        MAINTENANCE OF REAL PROPERTY........         292,216          292,216          292,216          292,216
    USMC PREPOSITIONING:
        MARITIME PREPOSITIONING.............          81,325           81,325           81,325           81,325
        NORWAY PREPOSITIONING...............           4,328            4,328            4,328            4,328
                                             -------------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..........       1,746,522        1,801,045        1,760,822        1,781,522
                                             ===================================================================
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:
    ACCESSION TRAINING:
        RECRUIT TRAINING....................          10,202           10,202           10,202           10,202
        OFFICER ACQUISITION.................             289              289              289              289
        BASE SUPPORT........................          53,526           54,208           53,526           53,526
        MAINTENANCE OF REAL PROPERTY........          17,292           17,292           17,292           17,292
    BASIC SKILLS AND ADVANCED TRAINING:
        SPECIALIZED SKILLS TRAINING.........          28,269           28,269           28,269           28,269
        FLIGHT TRAINING.....................             161              161              161              161
        PROFESSIONAL DEVELOPMENT EDUCATION..           6,478            6,478            6,478            6,478
        TRAINING SUPPORT....................          81,338           81,338           88,338           87,338

[[Page H8686]]

 
        BASE SUPPORT........................          55,771           56,481           55,771           55,771
        MAINTENANCE OF REAL PROPERTY........          24,009           24,009           24,009           24,009
    RECRUITING AND OTHER TRAINING EDUCATION:
        RECRUITING AND ADVERTISING..........          80,798           92,798           80,798           80,798
        OFF-DUTY AND VOLUNTARY EDUCATION....          15,016           15,016           15,016           15,016
        JUNIOR ROTC.........................           9,201           10,616            9,201           10,616
        BASE SUPPORT........................           8,496            8,496            8,496            8,496
        MAINTENANCE OF REAL PROPERTY........           2,440            2,440            2,440            2,440
                                             -------------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 3..........         393,286          408,093          400,286          400,701
                                             ===================================================================
    RECRUITING AND OTHER TRAINING EDUCATION:
        RECRUITING AND ADVERTISING..........          80,798           92,798           80,798           80,798
        OFF-DUTY AND VOLUNTARY EDUCATION....          15,016           15,016           15,016           15,016
        JUNIOR ROTC.........................           9,201           10,616            9,201           10,616
        BASE SUPPORT........................           8,496            8,496            8,496            8,496
        MAINTENANCE OF REAL PROPERTY........           2,440            2,440            2,440            2,440
                                             -------------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 3..........         393,286          408,093          400,286          400,701
                                             ===================================================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
 ACTIVITIES:
    SERVICEWIDE SUPPORT:
        SPECIAL SUPPORT.....................         224,668          224,668          215,155          224,668
        SERVICEWIDE TRANSPORTATION..........          29,630           29,630           29,630           29,630
        ADMINISTRATION......................          26,509           26,509           26,509           26,509
        BASE SUPPORT........................          14,557           14,742           14,557           14,557
        MAINTENANCE OF REAL PROPERTY........           1,931            1,931            1,931            1,931
        COMMISSARY OPERATIONS...............          86,600           86,600           86,600           86,600
                                             -------------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..........         383,895          384,080          374,382          383,895
                                             ===================================================================
FOREIGN CURRENCY FLUCTUATION................  ...............          -2,700           -2,300   ...............
FUEL PRICING DIFFERENTIAL...................  ...............  ...............          -8,000   ...............
REAL PROPERTY MAINTENANCE...................  ...............  ...............          36,000   ...............
BASE SUPPORT................................  ...............  ...............          15,000           18,000
TDY EXPENSES................................  ...............            -400   ...............            -400
MISC EQUIPMENT..............................  ...............          -5,000   ...............          -5,000
                                             ------------------
      TOTAL, OPERATION AND MAINTENANCE,            2,523,703        2,585,118        2,576.190         2,578.71
       MARINE CORPS.........................
                                             ===================================================================
          TRANSFER TO QUALITY OF LIFE         ...............  ...............        (-36,000)  ...............
           ENHANCEMENTS.....................
                                             -------------------------------------------------------------------
          TRANSFER TO PENTAGON RENOVATION     ...............  ...............         (-9,513)         (-9,153)
           TRANSFER FUND....................
                                             -------------------------------------------------------------------
      TOTAL FUNDING AVAILABLE...............      (2,523,703)      (2,585,118)      (2,530,677)      (2,569,205)
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  Initial Issue Gear.............................................12,600
  NBC defense equipment...........................................1,700
  Depot Maintenance..............................................20,700
Budget Activity 3: Training and Recruiting:
  Distance learning...............................................6,000
  Marine Corps Junior ROTC........................................1,415
Undistributed:
  Base support shortfalls........................................18,000
  Temporary Duty Travel............................................-400
  Miscellaneous Equipment........................................-5,000


                     marine corps depot maintenance

       The conferees are concerned about the substantial reduction 
     in the Marine Corps depot maintenance budget from fiscal year 
     1998 to 1999 and the impact that this will have on the 
     backlog of Marine Corps equipment. The conferees are also 
     concerned that the budgeted depot maintenance program may 
     have caused the Marine Corps to prematurely consider 
     initiating reductions-in-force among its civilian personnel 
     at the Marine Corps Logistics Base at Barstow. Accordingly, 
     the conferees agree to increase funding for the Marine Corps 
     depot maintenance program by $20,700,000 above the budget 
     request to address this shortfall, and hereby direct the 
     Marine Corps to include adequate funding in future budget 
     submissions.

                  Operation and Maintenance, Air Force

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

                                            [in thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
    OPERATION AND MAINTENANCE, AIR FORCE
 
BUDGET ACTIVITY 1: OPERATING FORCES:
    AIR OPERATIONS:
        PRIMARY COMBAT FORCES...............       2,311,299        2,427,799        2,461,399        2,355,399
        PRIMARY COMBAT WEAPONS..............         236,147          236,147          234,347          234,347
        COMBAT ENHANCEMENT FORCES...........         196,036          196,036          196,036          196,036
        AIR OPERATIONS TRAINING.............         562,839          563,839          567,939          567,939
        DEPOT MAINTENANCE...................         958,706          958,706          958,706          958,706
        COMBAT COMMUNICATIONS...............       1,022,087        1,068,366        1,022,087        1,035,387
        BASE SUPPORT........................       1,538,126        1,620,152        1,538,126        1,538,126
        MAINTENANCE OF REAL PROPERTY........         575,656          575,656          575,656          575,656
    COMBAT RELATED OPERATIONS:
        GLOBAL C3I AND EARLY WARNING........         669,379          669,379          669,379          669,379
        NAVIGATION/WEATHER SUPPORT..........         118,337          118,337          118,337          118,337
        OTHER COMBAT OPS SUPPORT PROGRAMS...         221,593          222,821          221,593          222,821
        JCS EXERCISES.......................          30,521           30,521           30,521           30,521
        MANAGEMENT/OPERATIONAL HEADQUARTERS.         117,540          117,540          117,540          117,540
        TACTICAL INTEL AND OTHER SPECIAL             227,980          227,980          227,980          227,980
         ACTIVITIES.........................
    SPACE OPERATIONS:
        LAUNCH FACILITIES...................         221,046          221,046          216,046          216,046
        LAUNCH VEHICLES.....................         102,064          102,064          102,064          102,064
        SPACE CONTROL SYSTEMS...............         246,940          246,940          257,940          253,940
        SATELLITE SYSTEMS...................          36,152           36,152           36,152           36,152
        OTHER SPACE OPERATIONS..............          85,292           85,292           90,292           90,292
        BASE SUPPORT........................         309,406          325,906          309,406          309,406
        MAINTENANCE OF REAL PROPERTY........         122,525          122,525          122,525          122,525
                                             -------------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..........       9,909,671       10,172,204       10,074,071        9,978,599
                                             ===================================================================
BUDGET ACTIVITY 2: MOBILIZATION:
    MOBILITY OPERATIONS:
        AIRLIFT OPERATIONS..................       1,326,774        1,383,774        1,326,774        1,326,774
        AIRLIFT OPERATIONS C3I..............          21,676           21,676           21,676           21,676
        MOBILIZATION PREPAREDNESS...........         134,807          111,107          136,607          121,107
        DEPOT MAINTENANCE...................         316,485          330,815          316,485          316,485
        PAYMENTS TO TRANSPORTATION BUSINESS          470,000          470,000          470,000          470,000
         AREA...............................
        BASE SUPPORT........................         390,876          411,721          390,876          390,876

[[Page H8687]]

 
        MAINTENANCE OF REAL PROPERTY........         148,331          148,331          148,331          148,331
                                             -------------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 2..........       2,808,949        2,877,424        2,810,749        2,795,249
                                             ===================================================================
    ACCESSION TRAINING: BUDGET ACTIVITY 3:
     TRAINING AND RECRUITING:
        OFFICER ACQUISITION.................          57,679           57,679           56,279           56,279
        RECRUIT TRAINING....................           4,360            4,360            4,360            4,360
        RESERVE OFFICER TRAINING CORPS                46,522           46,522           46,522           46,522
         (ROTC).............................
        BASE SUPPORT (ACADEMIES ONLY).......          58,828           61,965           58,828           58,828
        MAINTENANCE OF REAL PROPERTY                  37,655           37,655           37,655           37,655
         (ACADEMIES ONLY)...................
    BASIC SKILLS AND ADVANCED TRAINING:
        SPECIALIZED SKILL TRAINING..........         215,477          218,477          215,477          218,477
        FLIGHT TRAINING.....................         406,940          406,940          406,940          406,940
        PROFESSIONAL DEVELOPMENT EDUCATION..          90,709           90,709           90,709           90,709
        TRAINING SUPPORT....................          65,742           65,742           65,742           65,742
        DEPOT MAINTENANCE...................          12,186           12,186           12,186           12,186
        BASE SUPPORT (OTHER TRAINING).......         370,961          370,961          370,961          370,961
        MAINTENANCE OF REAL PROPERTY (OTHER          102,238          102,238          102,238          102,238
         TRAINING)..........................
    RECRUITING, AND OTHER TRAINING AND
     EDUCATION:
        RECRUITING AND ADVERTISING..........          54,775           54,775           54,775           54,775
        EXAMINING...........................           2,668            2,668            2,668            2,668
        OFF DUTY AND VOLUNTARY EDUCATION....          84,122           84,122           84,122           84,122
        CIVILIAN EDUCATION AND TRAINING.....          61,124           61,124           61,124           61,124
        JUNIOR ROTC.........................          26,557           26,557           26,557           26,557
                                             -------------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 3............       1,698,543        1,725,015        1,697,143        1,700,143
                                             ===================================================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
 ACTIVITIES:
    LOGISTICS OPERATIONS:
        LOGISTICS OPERATIONS................         706,893          706,893          706,893          706,893
        TECHNICAL SUPPORT ACTIVITIES........         389,685          389,685          389,685          389,685
        SERVICEWIDE TRANSPORTATION..........         196,178          196,178          196,178          196,178
        DEPOT MAINTENANCE...................          69,344           72,484           69,344           69,344
        BASE SUPPORT........................         916,165          953,863          916,165          916,165
    SERVICEWIDE ACTIVITIES:
        ADMINISTRATION......................         140,879          140,879          140,879          140,879
        SERVICEWIDE COMMUNICATIONS..........         234,065          235,065          234,065          234,065
        PERSONNEL PROGRAMS..................         127,718          104,518          127,718          115,718
        RESCUE AND RECOVERY SERVICES........          48,466           48,466           48,466           48,466
        ARMS CONTROL........................          30,005           30,005           30,005           30,005
        OTHER SERVICEWIDE ACTIVITIES........         517,780          517,780          465,580          517,780
        OTHER PERSONNEL SUPPORT.............          31,828           31,828           31,828           31,828
        CIVIL AIR PATROL CORPORATION........          13,927           19,697           23,964           22,310
        COMMISSARY OPERATIONS...............         302,071          302,071          302,071          302,071
        BASE SUPPORT........................         180,221          189,832          180,221          185,221
        MAINTENANCE OF REAL PROPERTY........          26,067           26,067           26,067           26,067
    SECURITY PROGRAMS:
        SECURITY PROGRAMS...................         557,256          557,256          557,256          557,256
    SUPPORT TO OTHER NATIONS:
        INTERNATIONAL SUPPORT...............          13,608           13,608           13,608           13,608
                                             -------------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..........       4,759,841        4,792,860        4,717,678        4,761,224
                                             ===================================================================
CLASSIFIED PROGRAMS UNDISTRIBUTED...........  ...............          -1,500           -1,000            2,000
CIVILIAN PERSONNEL UNDERSTRENGTH............  ...............  ...............         -83,600   ...............
GENERAL REDUCTION, NATIONAL DEFENSE                  -50,000          -50,000          -50,000          -50,000
 STOCKPILE FUND.............................
FOREIGN CURRENCY FLUCTATION.................  ...............         -29,400          -19,200   ...............
INFORMATION RESOURCE MANAGEMENT.............  ...............  ...............          10,100           10,100
BASE SUPPORT................................  ...............  ...............          35,000           39,000
REAL PROPERTY MAINTENANCE...................  ...............  ...............          50,000   ...............
TDY EXPENSES................................  ...............         -77,500   ...............         -77,500
HEADQUARTERS AND ADMIN ACTIVITIES...........  ...............        -105,200   ...............  ...............
RENTS.......................................  ...............          -2,000   ...............          -2,000
COMMUNICATIONS PURCHASES....................  ...............         -13,600   ...............         -13,600
FUEL REPRICING..............................  ...............        -116,000         -176,000   ...............
CONTRACT AND ADVISORY SERVICES..............  ...............         -30,900   ...............  ...............
MISC EQUIPMENT..............................  ...............         -15,000   ...............         -20,000
ADP LEGACY SYSTEMS EFFICIENCIES.............  ...............         -95,620   ...............         -95,620
ELIMINATION OF FIRST PROGRAM................  ...............          -7,000   ...............          -7,000
MINORITY AVIATION TRAINING..................  ...............             450   ...............             450
                                             -------------------------------------------------------------------
      TOTAL, O&M, AIR FORCE.................      19,127,004       19,024,233       19,064,941       19,021,045
                                             ===================================================================
TRANSFER....................................         (50,000)         (50,000)         (50,000)         (50,000)
TRANSFER TO QUALITY OF LIFE ENHANCEMENTS....  ...............  ...............        -(50,000)  ...............
TRANSFER TO PENTAGON RENOVATION TRANSFER      ...............  ...............        -(52,200)        -(52,200)
 FUND.......................................
                                             -------------------------------------------------------------------
      TOTAL FUNDING AVAILABLE...............     (19,177,004)     (19,074,233)     (19,012,741)     (19,018,845)
----------------------------------------------------------------------------------------------------------------

                    ADJUSTMENTS TO BUDGET ACTIVITIES

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  B-52 attrition reserve.........................................40,100
  Battelabs.......................................................4,000
  LANTIRN PMA Offices............................................-1,800
  Combat training ranges..........................................5,100
  Depot Maintenance-Air Operations...............................13,300
  SIMVAL..........................................................1,228
  Maintenance of Delta-1/Delta-9 facilities.......................5,000
  Test launch delays............................................-10,000
  SPECECOM Operations.............................................7,000
  University partnering for operational support...................5,000
Budget Activity 2: Mobilization:
  Industrial Preparedness.......................................-13,700
Budget Activity 3: Training and Recruiting:
  Service academies; foreign students............................-1,400
  Educational Satellite and Airspace Training System..............3,000
Budget Activity 4: Administration and Service- wide Support:
  Personnel Management program growth...........................-12,000
  Civil Air Patrol Corporation....................................5,770
  CAP Counternarcotics OPTEMPO....................................2,613
  Rail Easement...................................................5,000
Undistributed:
  Classified Programs Undistributed...............................2,000
  REMIS..........................................................10,100
  Base support shortfalls........................................39,000
  Temporary Duty Travel.........................................-77,500
  Rents..........................................................-2,000
  Communications Purchases......................................-13,600
  Miscellaneous Equipment.......................................-20,000
  ADP Legacy System efficiencies................................-95,620
  Elimination of First Program...................................-7,000
  Minority Aviation Training........................................450


                            civil air patrol

       The conferees recognize that changes have occurred in the 
     relationship between the Air Force and the Civil Air Patrol 
     Corporation, in that the principal source of support from the 
     Air Force to the Civil Air Patrol Corporation is not excess 
     supplies and equipment, but appropriated funds from the Air 
     Force budget. Also, changes in the Civil Air Patrol 
     Corporation headquarters staff have affected the relationship 
     and funding between Air Force and the Civil Air Patrol. Of

[[Page H8688]]

     the funds appropriated for the Civil Air Patrol Corporation, 
     the conferees direct that no more than fifteen percent may be 
     spent for the Civil Air Patrol Corporation headquarters staff 
     and operations and the National Executive Committee and 
     Board. Further, the Civil Air Patrol Corporation shall 
     provide the Secretary of the Air Force with a quarterly 
     execution report, detailing the utilization of appropriated 
     funds.


                           flotation devices

       The conferees direct that of the funds provided in 
     Operation and Maintenance, Air Force $1,000,000 be used only 
     to begin the planned acquisition of passive flotation 
     devices.


                 finley air force station north dakota

       The conferees direct the Air Force to expedite the 
     abatement of hazardous substances in housing located at the 
     Finley Air Force Station.


                          havre air force base

       Of the funds available in Operation and Maintenance, Air 
     Force, the conferees agree to provide the Bear Paw 
     Development Council, Montana, $150,000 for redevelopment of 
     the Havre Air Force Base and Training Site.

                Operation and Maintenance, Defense-Wide

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                            Budget             House              Senate           Conference
----------------------------------------------------------------------------------------------------------------
 OPERATION AND MAINTENANCE, DEFENSE-
                WIDE
 
BUDGET ACTIVITY 1: OPERATING FORCES:
    JOINT CHIEFS OF STAFF...........            412,065            412,065            417,065            414,065
    SPECIAL OPERATIONS COMMAND......          1,149,328          1,154,978  .................          1,159,978
                                     ---------------------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 1....          1,559,393          1,567,043            417,065          1,574,043
                                     ===========================================================================
BUDGET ACTIVITY 2: MOBILIZATION:
    DEFENSE LOGISTICS AGENCY........             38,934             38,934             38,934             38,934
BUDGET ACTIVITY 3: TRAINING AND
 RECRUITING:
    DEFENSE ACQUISITION UNIVERSITY..  .................             95,000  .................             95,000
    AMERICAN FORCES INFORMATION                  11,059             11,059             11,059             11,059
     SERVICE........................
    SPECIAL OPERATIONS COMMAND......             42,408             42,408  .................             42,408
                                     ---------------------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 3....             53,467            148,467             11,059            148,467
                                     ===========================================================================
BUDGET ACTIVITY 4: ADMIN &
 SERVICEWIDE ACTIVITIES:
    AMERICAN FORCES INFORMATION                  93,815             93,815             93,595             93,815
     SERVICE........................
    CIVIL MILITARY PROGRAMS.........             44,894             44,894             88,394             87,394
    CLASSIFIED AND INTELLIGENCE.....          3,803,561          3,845,018          3,767,161          3,798,361
    DEFENSE CONTRACT AUDIT AGENCY...            330,087            325,712            330,087            325,712
    DEFENSE FINANCE AND ACCOUNTING               83,277             48,711             83,277             83,277
     SERVICE........................
    DEFENSE HUMAN RESOURCES ACTIVITY            198,923            188,023            192,923            183,523
    DEFENSE INFORMATION SYSTEMS                 771,106            751,706            763,706            751,706
     AGENCY.........................
    DEFENSE LEGAL SERVICES AGENCY...              9,027              9,027              9,027              9,027
    DEFENSE LOGISTICS AGENCY........          1,140,137          1,147,122          1,153,137          1,146,237
    PROCUREMENT TECHNICAL ASSISTANCE  .................  .................             17,000  .................
     PROGRAM........................
    DEFENSE POW/MISSING PERSONS                  14,110             14,110             14,110             14,110
     OFFICE.........................
    DEFENSE SECURITY ASSISTANCE                   4,610  .................              4,610              3,010
     AGENCY.........................
    DEFENSE SECURITY SERVICE........             83,419             81,219             83,419             83,419
    DEFENSE THREAT REDUCTION AND                304,745            290,345            251,445            276,945
     TREATY COMPLIANCE AGENCY.......
    DEPARTMENT OF DEFENSE DEPENDENTS          1,347,718          1,354,968          1,348,118          1,355,518
     EDUCATION......................
    JOINT CHIEFS OF STAFF...........            139,616            134,816            112,716            137,916
    OFFICE OF ECONOMIC ADJUSTMENT...             31,233             32,733             31,233             56,733
    OFFICE OF THE SECRETARY OF                  369,836            356,086            375,836            359,736
     DEFENSE........................
    SPECIAL OPERATIONS COMMAND......             47,117             47,117  .................             47,117
    WASHINGTON HEADQUARTERS SERVICE.            281,676            270,676            224,376            264,276
    REPAIRS TO FEDERALLY-FUNDED       .................  .................             10,000             10,000
     SCHOOLS........................
                                     ---------------------------------------------------------------------------
        TOTAL, BUDGET ACTIVITY 4....          9,098,907          9,036,098          8,954,170          9,087,832
                                     ===========================================================================
BUDGET ACTIVITY 5:
    SPECIAL OPERATIONS COMMAND......  .................  .................          1,252,503  .................
    LEGACY..........................  .................  .................             10,000             10,000
    CIVILIAN PERSONNEL UNDERSTRENGTH  .................  .................           -349,000             -5,200
    FOREIGN CURRENCY FLUCTUATION....  .................             -6,000             -8,500  .................
    UNDISTRIBUTED REDUCTION.........               -100  .................  .................  .................
    IMPACT AID......................  .................             35,000  .................             35,000
    ADP LEGACY SYSTEMS EFFICIENCIES.  .................            -18,000  .................            -18,000
    ADMINISTRATIVE AND CONTRACTOR     .................            -40,000  .................  .................
     SUPPORT........................
    FUEL SAVINGS....................  .................  .................            -67,000  .................
    MILITARY PERSONNEL INFORMATION    .................             38,000  .................             38,000
     SYSTEM.........................
    NIPC TECHNICAL SUPPORT..........  .................              5,000  .................              5,000
                                     ---------------------------------------------------------------------------
        TOTAL, OPERATION AND                 10,750,601         10,804,542         10,259,231         10,914,076
         MAINTENANCE, DEFENSE-WIDE..
            TRANSFER TO PENTAGON      .................  .................          (-90,020)          (-90,020)
             RENOVATION TRANSFER
             FUND...................
                                     ---------------------------------------------------------------------------
        TOTAL FUNDING AVAILABLE.....       (10,750,601)       (10,804,542)       (10,169,211)       (10,824,056)
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  JCS--Mobility Enhancements.....................................10,000
  JCS--Exercise Northern Edge.....................................7,000
  JCS--Joint Exercises..........................................-13,000
  SOCOM--Joint Threat Warning System..............................1,000
  SOCOM--Counter Proliferation/WMD................................7,650
  SOCOM--Patrol Coastal Operations...............................-4,000
  SOCOM--Maritime Training........................................5,000
  SOCOM--Language Training........................................1,000
Budget Activity 3: Training and Recruiting:
  DAU--Tranfer...................................................95,000
Budget Activity 4: Administration and Service- wide Activities:
  Civil-Military Programs........................................42,500
  Classified and Intelligence....................................-5,200
  DCAA--Within Grade Increases...................................-2,375
  DCAA--Price Growth Error.......................................-2,000
  DHRA--DCPDS....................................................-7,000
  DHRA--Field Activity Consolidation.............................-4,500
  DHRA--Pay Rate Error...........................................-3,900
  DISA--GCSS....................................................-10,900
  DISA--Lower Priority Program Increases.........................-6,700
  DISA--Management Headquarters Reduction........................-1,800
  DLA--Equipment and Misc. Purchases............................-17,900
  DLA--Warstopper Increase.......................................-3,000
  DLA--Improved Cargo Methods and Technologies....................2,000
  DLA--Automated Document Conversion.............................25,000
  Defense Security Assistance Agency.............................-1,600
  DTRA--Partnership for Peace (National Guard)....................1,000
  DTRA--Partnership for Peace excess growth.....................-15,400
  DTRA--PfP Information Management System.........................2,000
  DTRA--OSIA....................................................-15,400
  DoDEA--Facility Maintenance Contract...........................-3,850
  DoDEA--Math Leadership Program....................................400
  DoDEA--New Parent Support Program...............................8,000
  DoDEA--Family Counseling and Crisis Services....................2,000
  DoDEA--Desiccant Demo...........................................1,250
  JCS--JMEANS.....................................................3,100

[[Page H8689]]

  JCS--Management Headquarters Reduction.........................-4,800
  OEA--Agile Port Capability Study..................................500
  OEA--Fitzsimmons Army Hospital.................................10,000
  OEA--Shipyard Infrastructure Repair............................10,000
  OEA--Pico Rivera................................................4,000
  OEA--Planning...................................................1,000
  OSD--Youth Development and Leadership Program.....................400
  OSD--Lower Priority Program Increases.........................-10,500
  WHS--Defense Travel Schedule Slip..............................-6,400
  WHS--Lower Priority Program Increases.........................-10,000
  WHS--White House Defense Fellows...............................-1,000
  Repairs to Federally Funded Schools............................10,000
Undistributed:
  Legacy.........................................................10,000
  Civilian Personnel Underexecution..............................-5,200
  Impact Act.....................................................35,000
  ADP Legacy Systems efficiencies...............................-18,000
  Military Personnel Information System..........................38,000
  NIPC Technical Support..........................................5,000

                        Civil/Military Programs

       The conferees recommend a total of $87,394,000 for the 
     Department's civil/military programs. In addition, the 
     conferees recommend a new general provision, Section 8131, 
     which waives the limitation on expenditures for the National 
     Guard Challenge Program for fiscal year 1999. The conferees 
     recognize that both the Department of Justice and Department 
     of Defense have taken steps in developing programs for at-
     risk youth. The National Guard's highly effective Youth 
     Challenge Program is an example of 22 states working to make 
     productive citizens out of high school drop-outs. The 
     conferees encourage both Departments to work together, 
     combining strengths and successes of each program, exchange 
     ideas, and, when possible, share available resources to 
     enhance and expand the effectiveness of these initiatives. 
     The funding for the civil/military programs for fiscal year 
     1999 follows:

                       [In thousands of dollars]

National Guard Youth Challenge Program...........................62,394
Innovative Readiness Training Program............................20,000
Starbase Program..................................................5,000
                                                       ________________
                                                       
Total............................................................87,394


                  oea--shipyard infrastructure repairs

       The conferees have agreed to provide $10,000,000 only for 
     shipyard infrastructure repairs as recommended by the Senate 
     under the Operation and Maintenance, Navy appropriation 
     account.


                              h.l. hunley

       Of the funding provided for the Legacy Program, the 
     conferees agree to provide $300,000 to prepare conservation 
     plans to preserve the H.L. Hunley, and to develop an 
     emergency recovery plan associated with raising the ship.


                       on-site inspection agency

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


                             security locks

       The conferees agree with the Senate report language 
     directing the Department of Defense to provide a report on 
     their security locks retrofit program by December 15, 1998. 
     Furthermore, the conferees agree that of the funds provided 
     in this account $15,000,000 is for the purchase of additional 
     security locks which meet federal specification FF-L-2740A.


                         job placement program

       The conferees are disappointed with the Department's lack 
     of responsiveness to last year's direction to implement a job 
     placement and community outreach services program. Therefore, 
     the conferees again direct the Department to provide at least 
     $6,000,000 from within available funds for the implementation 
     of this effort which would market and coordinate involvement 
     of existing qualified service providers through the Job 
     Training Partnership Act, facilitate municipal offering of 
     community outreach services and provide data for the 
     evaluation of federal job placement programs.

                Operation and Maintenance, Army Reserve

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
           OPERATION AND MAINTENANCE, ARMY RESERVE
 
BUDGET ACTIVITY 1: OPERATING FORCES:
LAND FORCES:
    DIVISION FORCES.........................................       10,918       10,918       10,918       10,918
    CORPS COMBAT FORCES.....................................       17,890       17,890       17,890       17,890
    CORPS SUPPORT FORCES....................................      165,897      165,897      165,897      165,897
    ECHELON ABOVE CORPS FORCES..............................       86,565       86,565       86,565       86,565
MISSION OPERATIONS:
    LAND FORCES OPERATIONS SUPPORT..........................      227,856      227,856      227,856      227,856
LAND FORCES READINESS:
    FORCES READINESS OPERATIONS SUPPORT.....................      123,824      123,824      123,824      123,824
    LAND FORCES SYSTEM READINESS............................       13,757       13,757       13,757       13,757
    DEPOT MAINTENANCE.......................................       47,342       47,342       47,342       47,342
LAND FORCES READINESS SUPPORT:
    BASE SUPPORT............................................      305,760      305,760      305,760      305,760
    MAINTENANCE OF REAL PROPERTY............................       61,177       61,177       61,177       61,177
    UNIFIED COMMANDS........................................          107          107          107          107
    MISCELLANEOUS ACTIVITIES................................        1,383        1,383        1,383        1,383
                                                             ---------------------------------------------------
        TOTAL, BUDGET ACTIVITY 1............................    1,062,476    1,062,476    1,062,476    1,062,476
                                                             ===================================================
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:
ADMINISTRATINO AND SERVICEWIDE ACTIVITIES:
    STAFF MANAGEMENT HEADQUARTERS...........................       27,465       27,465       27,465       27,465
    INFORMATION MANAGEMENT..................................       23,601       23,601       23,601       23,601
    PERSONNEL/FINANCIAL ADMINISTRATION......................       47,327       47,327       47,327       47,327
    RECRUITING AND ADVERTISING..............................       41,753       41,753       41,753       41,753
    FUEL REPRICING..........................................  ...........       -1,400  ...........  ...........
                                                             ---------------------------------------------------
        TOTAL, BUDGET ACTIVITY 4............................      140,146      138,746      140,146      140,146
                                                             ---------------------------------------------------
        TOTAL, OPERATION AND MAINTENANCE, ARMY RESERVE......    1,202,622    1,201,222    1,202,622    1,202,622
----------------------------------------------------------------------------------------------------------------

                       army/navy reserve centers

       The conferees understand that there are two Army Reserve 
     Centers in Florida and one in Youngstown, Ohio which are in 
     extensive need of repair and renovation. In addition, the 
     Navy Reserve has a facility located in Youngstown, Ohio, 
     which is vacant and needs remediation. The conferees have 
     provided additional funds for Real Property Maintenance for 
     the Army Reserve and Navy Reserve, and directs that 
     $2,000,000 be designated to each component to meet these 
     requirements.


                    joint military training complex

       The conferees understand that several Reserve units in 
     central Florida have been impacted by the closure of the 
     Orlando Naval Training Center, and the Department is 
     considering the possibility of developing a joint complex in 
     the Orlando area. The conferees recommend that $300,000 of 
     the funds provided for ``Operation and Maintenance, Army 
     Reserve'' be used for feasibility studies and environmental 
     assessments in the support of the joint complex.

                Operation and Maintenance, Navy Reserve

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

[[Page H8690]]


                                            In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
     OPERATION AND MAINTENANCE, NAVY RESERVE
 
BUDGET ACTIVITY 1: OPERATION FORCES:
    RESERVE AIR OPERATIONS
    MISSION AND OTHER FLIGHT OPERATIONS.........         300,682         300,682         300,682         300,682
    FLEET AIR TRAINING..........................             484             484             484             484
    INTERMEDIATE MAINTENANCE....................          17,271          17,271          17,271          17,271
    AIR OPERATION AND SAFETY SUPPORT............           3,044           3,044           3,044           3,044
    AIRCRAFT DEPOT MAINTENANCE..................         121,740         132,740         121,740         132,740
    AIRCRAFT DEPOT OPS SUPPORT..................             323             323             323             323
    BASE SUPPORT................................         101,963         101,963         101,963         101,963
    MAINTENANCE OF REAL PROPERTY................          24,370          24,370          24,370          24,370
    RESERVE SHIP OPERATIONS
    MISSION AND OTHER SHIP OPERATIONS...........          61,924          71,924          61,924          71,924
    SHIP OPERATIONAL SUPPORT AND TRAINING.......             611             611             611             611
    INTERMEDIATE MAINTENANCE....................           9,472           9,472           9,472           9,472
    SHIP DEPOT MAINTENANCE......................          79,257          79,257          79,257          79,257
    SHIP DEPOT OPERATIONS SUPPORT...............           1,459           1,459           1,459           1,459
    RESERVE COMBAT OPERATIONS SUPPORT
    COMBAT SUPPORT FORCES.......................          28,355          28,355          28,355          28,355
    BASE SUPPORT................................          34,411          34,411          34,411          34,411
    MAINTENANCE OF REAL PROPERTY................           9,606           9,606           9,606           9,606
    RESERVE WEAPONS SUPPORT
    WEAPONS MAINTENANCE.........................           5,217           5,217           5,217           5,217
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..................         800,189         821,189         800,189         821,189
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
 ACTIVITIES:
    ADMINISTRATION AND SERVICEWIDE ACTIVITIES
    ADMINISTRATION..............................           6,209           6,209           6,209           6,209
        CIVILIAN MANPOWER AND PERSONNEL                    1,015           1,015           1,015           1,015
         MANAGEMENT.............................
        MILITARY MANPOWER AND PERSONNEL                   25,420          25,420          25,420          25,420
         MANAGEMENT.............................
        SERVICEWIDE COMMUNICATIONS..............          50,534          50,534          50,534          50,534
        BASE SUPPORT............................          29,571          29,571          29,571          29,571
        MAINTENANCE OF REAL PROPERTY............           7,182           7,182           7,182           7,182
        COMBAT/WEAPONS SYSTEMS..................           5,398           5,398           5,398           5,398
        GENERAL DEFENSE INTELLIGENCE PROGRAM....             587             587             587             587
    LOGISTICS OPERATIONS AND TECHNICAL SUPPORT:
        AIR SYSTEMS SUPPORT.....................           2,534           2,534           2,534           2,534
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4..................         128,450         128,450         128,450         128,450
FUEL REPRICING..................................             ---          -8,200             ---             ---
P-3 SQUADRONS...................................             ---           7,600             ---           7,600
                                                 ===============================================================
      TOTAL, OPERATION AND MAINTENANCE, NAVY             928,639         949,039         928,639         957,239
       RESERVE..................................
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  Aircraft Depot Maintenance/C-20 Repair.........................11,000
  Mission and Other Ship Operations/MCM Steaming Days............10,000
Undistributed:
    P-3 Squadrons                                                 7,600


                          navy reserve forces

       The conferees concur in the House direction of House Report 
     105-591, page 81, regarding Navy Reserve force structure and 
     operations.


                      navy reserve training center

       The conferees understand the City of Gary, Indiana objects 
     to the current leasing arrangement between the Navy and the 
     City of Gary relating to the presence of a Naval Reserve 
     Training Center on city-owned property. The conferees urge 
     the Navy to negotiate with the City of Gary the relocation of 
     its facility.

            Operation and Maintenance, Marine Corps Reserve

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
 OPERATION AND MAINTENANCE, MARINE CORPS RESERVE
    BUDGET ACTIVITY 1: OPERATING FORCES:
MISSION FORCES:
        TRAINING................................          14,435          14,435          14,435          14,435
        OPERATING FORCES........................          33,823          33,823          33,823          33,823
        BASE SUPPORT............................          16,272          16,272          16,727          16,272
        MAINTENANCE OF REAL PROPERTY............           6,976           6,976           6,976           6,976
        DEPOT MAINTENANCE.......................           2,821           2,821           2,821           2,821
                                                 ---------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 1..............          74,327          74,327          74,327          74,327
    BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
     ACTIVITIES:
ADMINISTRATION AND SERVICEWIDE ACTIVITIES:
        RECRUITING AND ADVERTISING..............           7,920           9,120           7,920           7,920
        SPECIAL SUPPORT.........................          11,080          11,080          11,080          11,080
        SERVICEWISE TRANSPORTATION..............           4,714           4,714           4,714           4,714
        ADMINISTRATION..........................           8,763           8,763           8,763           8,763
        BASE SUPPORT............................           7,789           7,789           7,789           7,789
        INCREASED USE OF GUARD AND RESERVE......  ..............           1,200  ..............           1,200
        ACTIVE DUTY FOR SPECIAL WORK............  ..............           2,100  ..............           2,100
                                                 ---------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..............          40,266          44,766          40,266          43,566
                                                 ---------------------------------------------------------------
          TOTAL, O&M, MARINE CORPS RESERVE......         114,593         119,093         114,593         117,893
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 4: Administration and Servicewide Activities:
  Increased Use of Guard and Reserve..............................1,200
  Active Duty for Special Work....................................2,100

              Operation and Maintenance, Air Force Reserve

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

[[Page H8691]]


                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
  OPERATION AND MAINTENANCE, AIR FORCE RESERVE
    BUDGET ACTIVITY 1: OPERATING FORCES:
AIR OPERATIONS:
        AIRCRAFT OPERATIONS:....................       1,038,509       1,038,509       1,038,509       1,038,509
        MISSION SUPPORT OPERATIONS..............          40,926          40,926          40,926          40,926
        BASE SUPPORT............................         223,606         223,606         223,606         223,606
        MAINTENANCE OF REAL PROPERTY............          61,616          61,616          61,616          61,616
        DEPOSIT MAINTENANCE.....................         298,493         298,493         298,493         298,493
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..................       1,663,150       1,663,150       1,663,150       1,663,150
                                                 ===============================================================
    BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
     ACTIVITIES:
ADMINISTRATION AND SERVICEWIDE ACTIVITIES:
        ADMINISTRATION..........................          46,002          46,002          46,002          46,002
        MILITARY MANPOWER AND PERSONNEL                   20,205          20,205          20,205          20,205
         MANAGEMENT.............................
        RECRUITING AND ADVERTISING..............           8,360          11,360           8,360          11,360
        OTHER PERSONNEL SUPPORT.................           6,366           6,366           6,366           6,366
        AUDIOVISUAL.............................             613             613             613             613
        FUEL REPRICING..........................  ..............         -11,700  ..............  ..............
                                                 ---------------------------------------------------------------
          TOTAL, BUDGET ACTIVITY 4..............          81,546          72,846          81,546          84,546
                                                 ===============================================================
          TOTAL, O&M AIR FORCE RESERVE..........       1,744,696       1,735,996       1,744,696       1,747,696
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustment to the budget activities is as follows:

                       [In thousands of dollars]

Budget Activity 4: Administration and Servicewide Activities:
  25400 Recruiting and Advertising................................3,000

             Operation and Maintenance, Army National Guard

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD
BUDGET ACTIVITY 1: OPERATING FORCES:
MISSION OPERATIONS
LAND FORCES.....................................       1,302,542       1,402,542       1,361,042       1,402,542
LAND FORCES READINESS...........................         144,113         144,113         144,113         144,113
LAND FORCES READINESS SUPPORT...................         839,066         843,266         853,066         843,266
DEPOT MAINTENANCE...............................  ..............  ..............          32,500  ..............
MAINTENANCE OF REAL PROPERTY....................  ..............  ..............          65,000          45,000
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..................       2,285,721       2,389,921       2,455,721       2,454,921
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE
 ACTIVITIES:
ADMINISTRATION AND SERVICEWIDE ACTIVITIES:
PERSONNEL ADMINISTRATION........................          59,249          59,249          59,249          59,249
STAFF MANAGEMENT................................          33,490          33,490          33,490          33,490
INFORMATION MANAGEMENT..........................          21,793          24,593          76,793          66,793
RECRUITING AND ADVERTISING......................          36,562          36,562          36,562          36,562
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 4..................         151,094         153,894         206,094         196,094
FUEL REPRICING..................................  ..............          -3,500  ..............  ..............
MILITARY (CIVILIAN) TECHNICIANS.................  ..............          27,000  ..............          27,000
CONSEQUENCE MANAGEMENT..........................  ..............           3,000  ..............  ..............
                                                 ---------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  Land Forces/Ground Optempo....................................100,000
  Land Forces Readiness/Depot Maintenance........................20,000
  Land Forces Readiness Support/Angel Gate Academy................4,200
  Maintenance of Real Property...................................45,000
Budget Activity 4: Administration and Servicewide Activities:
  Information Management/Distance Learning.......................35,000
  Information Management/Communications Shortfall................10,000
Undistributed:
  Military (civilian) Technicians................................27,000


                 army national guard distance learning

       The conferees agree to provide an increase of $25,000,000 
     in Operation and Maintenance, Army National Guard and an 
     increase of $28,000,000 in Other Procurement, Army for 
     distance learning and information management requirements.
       Of this amount, $2,800,000 is only to continue efforts to 
     demonstrate cost effective ways to use the National Guard 
     Distance Learning Network to meet DoD training requirements 
     as provided for in House Report 105-591. In addition, 
     $4,600,000 is only for the Montana Army Guard for a distance 
     learning demonstration project as described in Senate Report 
     105-200.


                        chicago military academy

       The conferees recommend that $10,000,000 of the funds 
     provided for Operation and Maintenance, Army National Guard 
     are for the conversion of the Eighth Regiment National Guard 
     Armory into a Chicago Military Academy, in order to provide a 
     JROTC instruction program.


                       camp dawson, west virginia

       The conferees urge the Army National Guard to develop a 
     concept plan for the future of Camp Dawson.


                            camp dodge, iowa

       The conferees recommend that $6,000,000 of the funds 
     available for Real Property Maintenance in Operation and 
     Maintenance, Army National Guard be used for repair of storm 
     damage at Camp Dodge, Iowa.

             Operation and Maintenance, Air National Guard

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
  OPERATION AND MAINTENANCE, AIR NATIONAL GUARD
BUDGET ACTIVITY 1: OPERATION FORCES:
    AIR OPERATIONS:
        AIRCRAFT OPERATIONS.....................       1,935,880       1,937,380       1,945,880       1,945,880
        MISSION SUPPORT OPERATIONS..............         340,884         340,884         340,884         340,884
        BASE SUPPORT............................         295,163         295,163         295,163         295,163
        MAINTENANCE OF REAL PROPERTY............          82,633          82,633          82,633          82,633
        DEPOT MAINTENANCE.......................         428,708         428,708         438,708         428,708
                                                 ---------------------------------------------------------------
      TOTAL, BUDGET ACTIVITY 1..................       3,083,268       3,084,768       3,103,268       3,093,268
BUDGET ACTIVITY ADMIN & SERVICEWIDE ACTIVITIES:
    SERVICEWIDE ACTIVITIES:
        ADMINISTRATION..........................           2,913           2,913           2,913           2,913

[[Page H8692]]

 
        RECRUITING AND ADVERTISING..............           7,752          10,751           7,752          10,752
        FUEL REPRICING..........................  ..............         -23,200  ..............  ..............
      TOTAL, BUDGET ACTIVITY 4..................          10,665          -9,535          10,665          13,665
                                                 ===============================================================
      TOTAL, O&M AIR, NATIONAL GUARD............       3,093,933       3,075,233       3,113,933       3,106,933
----------------------------------------------------------------------------------------------------------------

                       search and rescue support

       The conferees direct that the Air National Guard provide 
     support for Coast Guard seasonal search and rescue mission 
     requirements at the Francis S. Gabreski Airport in Hampton, 
     New York. Assistance to the Coast Guard will include access 
     to necessary facilities, runway, hangar, operations center, 
     berthing, and maintenance spaces. Seasonal Coast Guard access 
     will be maintained between April 15 and October 15, 1999. The 
     Director of the Air National Guard and the Commandant of the 
     Coast Guard shall enter into a memorandum of agreement (MOA) 
     for use of these facilities and shall provide copies of that 
     agreement to the Committees on Appropriations not later than 
     December 1, 1998.


                   defense systems evaluation program

       The conferees direct that $2,250,000 of the funds provided 
     for Operation and Maintenance, Air National Guard be for the 
     Defense Systems Evaluation program for support of test and 
     training operations at White Sands Missile Range, New Mexico, 
     and Fort Bliss, Texas.

             Overseas Contingency Operations Transfer Fund

       The conferees agree to provide $439,400,000 for the 
     Overseas Contingency Operations Transfer Fund. This amount 
     covers estimated DoD costs of continuing operations in 
     Southwest Asia.

          United States Court of Appeals for the Armed Forces

       The conference agreement provides $7,324,000 for the United 
     States Court of Appeals for the Armed Forces as requested in 
     the budget.

                    Environmental Restoration, Army

       The conferees agree to provide $370,640,000 for 
     Environmental Restoration, Army.

                    Environmental Restoration, Navy

       The conferees agree to provide $274,600,000 for 
     Environmental Restoration, Navy.

                  Environmental Restoration, Air Force

       The conferees agree to provide $372,100,000 for 
     Environmental Restoration, Air Force.

                Environmental Restoration, Defense-wide

       The conferees agree to provide $26,091,000 for 
     Environmental Restoration, Defense-Wide

         Environmental Restoration, Formerly Used Defense Sites

       The conferees agree to provide $225,000,000 for 
     Environmental Restoration, Formerly Used Defense Sites.


                 building demolition and debris removal

       To minimize mobilization costs at remote sites, the 
     Department may perform building demolition and debris removal 
     at formerly used defense sites (FUDS) using fiscal year 1999 
     funds available under this heading. The conferees direct the 
     Department to conduct building demolition and debris removal 
     at the following formerly used defense sites: Collision 
     Point, Nuvagapak Point and Cape Sarichef, Alaska, or 
     alternative sites in Alaska to optimize cost effectiveness on 
     a regional basis.


                        charleston macalloy site

       The conferees concur with the Senate's recommended 
     reporting requirements regarding the Defense Logistics Agency 
     inventory location in Charleston, South Carolina. The 
     conferees expect that, if the Department determines that this 
     site is eligible for formerly used defense sites (FUDS) 
     funding, $10,000,000 shall be made available as expeditiously 
     as possible considering departmental policies on the 
     allocation of such funds.


         government owned contractor operated (goco) facilities

       The conferees are concerned about the Army's limited 
     progress in recovering the costs associated with 
     environmental restoration at former ammunition production 
     GOCO facilities. Therefore, the conferees direct the Army to 
     take the following actions and, by the dates noted, report on 
     their findings to the congressional defense committees.
       No later than March 30, 1999, the Army should (1) identify 
     all GOCO ammunition production facilities, the contractors 
     that operated the facilities, and the prime contract numbers 
     of each contract for the operation of the facilities (2) 
     document the current environmental cleanup status, including 
     past and projected clean up costs, for each GOCO facility (3) 
     compile a summary of historical third-party insurance 
     coverage for each GOCO facility, including the names of all 
     the insurers, policy numbers, policy periods, and terms, 
     conditions, and limits of coverage (4) ascertain whether 
     notices of accidents or occurrences, or other appropriate 
     notices, have been given to each of the insurers, including 
     any notices provided by the operating contractor, and (5) 
     determine if any of the GOCO facilities was placed on a 
     standby status and whether insurance coverage remained in 
     force during that period.
       Not later than June 15, 1999, the conferees expect the 
     Department to (1) file notices of claims with as many of the 
     insurers as possible and to provide a timetable for filing 
     all remaining notices of claims (2) prepare a detailed legal 
     analysis of the potential claims for each of the GOCO 
     facilities including an assessment of applicable case law, 
     potential effect of specific indemnification provisions, 
     pollution exclusion and limitations in the scope of coverage 
     (3) analyze alternative approaches, such as pursuing claims 
     in groups, to maximize insurance recovery, including legal 
     strategy and timetables, and decide on a recommended course 
     of action.


             notification of environmental contract awards

       The conferees direct each military service to notify 
     interested State and local authorities and interested Members 
     of Congress upon release of draft solicitations for contracts 
     anticipated to exceed $5,000,000. The conferees further 
     direct that this requirement shall also apply to all 
     increments of indefinite delivery indefinite quantity-type 
     contracts which meet this threshold.


   total environmental remediation contracts (terc)/remedial action 
                            contracts (rac)

       The conferees direct that not more than twenty-five percent 
     of funding obligated by the Corps of Engineers for 
     environmental remediation shall be executed through TERC 
     contracts. Additionally, the conferees are concerned with the 
     Navy's increasing reliance on the RAC to accomplish 
     environmental remediation. Accordingly, the conferees direct 
     the Secretary of the Navy to report to the congressional 
     defense committees no later than January 15, 1999, on their 
     use of RAC during fiscal year 1998. The conferees further 
     direct that this information be provided quarterly throughout 
     fiscal year 1999.


                   mitigation of environmental damage

       In entering into contracts for the mitigation of 
     environmental damage on Indian lands, the Department is 
     encouraged to extend a preference to Native American owned or 
     operated businesses with experience in the mitigation of 
     environmental damage or environmental technology.

             Overseas Humanitarian, Disaster, and Civic Aid

       The conferees agree to provide $50,000,000 for Overseas 
     Humanitarian, Disaster, and Civic Aid.

                  Former Soviet Union Threat Reduction

       The conferees agree to provide $440,400,000, for the Former 
     Soviet Union Threat Reduction program.

                  Quality of Life Enhancement, Defense

       The conferees agree to provide a total of $455,000,000 for 
     Quality of Life Enhancement, Defense. Given the substantial 
     backlog of real property maintenance in the areas of 
     barracks, dormitories and related facilities, the conferees 
     direct that these funds be applied to workload for such 
     projects within the United States and its territories. In the 
     case of the Reserve components, these additional funds should 
     be utilized to reduce the backlog in mission and support 
     facilities. The conferees further direct the Secretaries of 
     each of the Military Services to provide the congressional 
     defense committees with a report on each additional project 
     to be funded from funds available in this account prior to 
     solicitation for these projects. This report shall include 
     the location, estimated cost and projected commencement and 
     completion dates for each project.

                         TITLE III--PROCUREMENT

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
                     SUMMARY
 
ARMY:
    AIRCRAFT....................................       1,325,943       1,400,338       1,408,652       1,388,268
    MISSILES....................................       1,205,768       1,140,623       1,188,739       1,226,335

[[Page H8693]]

 
    WEAPONS, TRACKED COMBAT VEHICLES............       1,433,608       1,513,540       1,484,055       1,548,340
    AMMUNITION..................................       1,008,855       1,099,155         998,655       1,065,955
    OTHER.......................................       3,198,811       3,101,130       3,395,729       3,339,486
                                                 ---------------------------------------------------------------
      TOTAL, ARMY...............................       8,172,985       8,254,786       8,475,830       8,568,384
                                                 ===============================================================
NAVY:
    AIRCRAFT....................................       7,466,734       7,599,968       7,473,403       7,541,709
    WEAPONS.....................................       1,327,545       1,191,219       1,324,045       1,211,419
    AMMUNITION..................................         429,539         473,803         488,939         484,203
    SHIPS.......................................       6,252,672       5,973,452       6,067,272       6,035,752
    OTHER.......................................       3,937,737       3,990,553       3,886,475       4,072,662
    MARINE CORPS................................         745,858         812,618         954,177         874,216
                                                 ---------------------------------------------------------------
      TOTAL, NAVY...............................      20,160,085      20,041,613      20,194,311      20,219,961
                                                 ===============================================================
AIR FORCE:
    AIRCRAFT....................................       7,756,475       8,384,735       7,967,023       8,095,507
    MISSILES....................................       2,359,803       2,191,527       2,219,299       2,069,827
    AMMUNITION..................................         384,161         388,925         384,161         379,425
    OTHER.......................................       6,974,387       7,034,217       6,904,164       6,960,483
                                                 ---------------------------------------------------------------
      TOTAL, AIR FORCE..........................      17,474,826      17,999,404      17,474,647      17,505,242
                                                 ===============================================================
DEFENSE-WIDE....................................       2,041,650       2,055,432       1,932,250       1,944,833
NATIONAL GUARD AND RESERVE EQUIPMENT............  ..............         120,000         500,000         352,000
                                                 ---------------------------------------------------------------
      TOTAL PROCUREMENT.........................      47,849,546      48,471,235      48,577,038      48,590,420
----------------------------------------------------------------------------------------------------------------

                       Aircraft Procurement Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           AIRCRAFT PROCUREMENT, ARMY
 
C-XX (MEDIUM RANGE) AIRCRAFT...................  ...........  ...........       30,000            5       27,000
UH-60 BLACKHAWK (MYP)..........................      218,820      297,320      292,765           29      272,365
AH-634 MODS....................................       52,902       55,902       54,402  ...........       56,902
CH-47 CARGO HELICOPTER MODS (MYP)..............      101,176       88,476       73,876  ...........       81,176
C-12 CARGO AIRPLANE MODS.......................        2,658        9,658        8,658  ...........        8,658
KIOWA WARRIOR..................................       40,466       56,446       52,646  ...........       52,646
EH-60 QUICKFIX MODS............................        3,015        3,015  ...........  ...........  ...........
AIRCRAFT SURVIVABILITY EQUIPMENT...............        5,144       12,544       18,944  ...........       12,544
COMMON GROUND EQUIPMENT........................       30,107       31,307       30,107  ...........       31,307
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -1,584  ...........  ...........       -1,584
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousand of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
UH-60 BLACKHAWK (MYP):                                            218,820      297,320      292,765      272,365
    Additional aircraft.....................................            0       78,500       78,500       58,100
    Engineering change orders...............................            0            0       -4,555       -4,555
AH-64 MODS:                                                        52,902       55,902       54,402       56,902
    VMEP for National Guard.................................            0        3,000            0        3,000
    AH-64 T701C engine upgrade..............................            0            0        1,500        1,000
KIOWA WARRIOR:                                                     40,446       56,446       52,646       52,646
    System safety enhancement...............................            0       16,000        9,600        9,600
    Crew station mission equipment trainer..................            0            0        2,600        2,600
----------------------------------------------------------------------------------------------------------------

                       Missile Procurement, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           MISSILE PROCUREMENT, ARMY
 
HELLFIRE SYS SUMMARY...........................      360,625      313,325      360,625        2,000      360,625
JAVELIN (AAWS-M) SYSTEM SUMMARY................      319,988      319,988      349,988        3,316      339,988
MLRS ROCKET....................................       16,513        3,413  ...........  ...........  ...........
MLRS LAUNCHER SYSTEMS..........................       85,387      110,387      143,787           24      123,787
ATACMS/BAT.....................................       49,083       49,083       24,083           30       49,083
BAT............................................      100,425      100,425       50,225          420      100,425
AVENGER MODS...................................        8,425  ...........        8,425  ...........        8,425
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -7,604  ...........  ...........       -7,604
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
MLRS LAUNCHER SYSTEMS:..........................          85,387         110,387         143,787         123,787
    National Guard launchers....................               0          25,000          50,000               0
    COTS to procure joint technical architecture               0               0           8,400           8,400
    National Guard MLRS support equipment.......  ..............  ..............  ..............          30,000
----------------------------------------------------------------------------------------------------------------

        Procurement of Weapons and Tracked Combat Vehicles, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           PROCUREMENT OF W&TCV, ARMY
 
BRADLEY BASE SUSTAINMENT.......................      285,844      371,844      283,844  ...........      356,844
BFVS SERIES (MOD)..............................       58,998       58,998       78,998  ...........       75,498
IMPROVED RECOVERY VEHICLE (M88 MOD)............       38,175       38,175       55,075           21       51,075
HEAVY ASSAULT BRIDGE (HAB) SYS (MOD)...........       50,401       50,401       43,748  ...........       50,401
M1 ABRAMS TANK (MOD)...........................       53,301       58,301       46,601  ...........       36,301
ABRAMS UPGRADE PROGRAM.........................      412,661      403,661      408,061  ...........      419,061

[[Page H8694]]

 
ARMOR MACHINE GUN, 7.62MM M240 SERIES..........        6,496        6,496       12,996          673       11,496
GRENADE LAUNCHER, AUTO, 40MM, MK19-3...........       12,191       12,191       15,191          697       15,191
M16 RIFLE MODS.................................        6,241        6,241        5,241  ...........        5,241
DIRECT SUPPORT ELECTRICAL TEST SETS (DSETS)....  ...........  ...........       25,000  ...........       20,000
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -2,068  ...........  ...........       -2,068
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
BRADLEY BASE SUSTAINMENT:                                285,844         371,844         283,844         356,844
    A0 to ODS variant...........................               0          80,000               0          70,000
    AN/VIC-3....................................               0           6,000               0           3,000
    Software delays.............................               0               0          -2,000          -2,000
BFVS SERIES (MOD):                                        58,998          58,998          78,998          75,498
    Reactive armor tiles........................               0               0          20,000          16,500
M1 ABRAMS TANK (MOD):                                     53,301          58,301          46,601          36,301
    AN/VIC-3....................................               0           5,000               0           3,000
    M1A1D program savings.......................               0          -6,700               0         -20,000
ABRAMS UPGRADE PROGRAM:                                  412,661         403,661         408,061         419,061
    M1A1D termination...........................               0         -20,000               0               0
    Tank upgrades...............................               0          11,000               0          11,000
    Overhead rates--M1A2 program................               0          -4,600               0          -4,600
DIRECT SUPPORT ELECTRICAL TEST SETS (DSETS):                   0               0          25,000          20,000
    Abrams upgrade program......................               0               0           5,000           4,000
    BFIST.......................................               0               0           5,000           4,000
    Bradley C2 vehicle..........................               0               0           5,000           4,000
    Bradley legacy fleet........................               0               0           5,000           4,000
    Bradley stinger.............................               0               0           5,000           4,000
----------------------------------------------------------------------------------------------------------------

                    Procurement of Ammunition, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
        PROCUREMENT OF AMMUNITION, ARMY
 
CTG, 5.56MM, ALL TYPES.........................       91,620       97,220       77,620  ...........       94,420
CTG, 7.62MM ALL TYPES..........................       10,463       14,463        7,263  ...........       12,463
CTG, 25MM, ALL TYPES...........................       59,618       80,418       71,618  ...........       80,418
CTG MORTAR 60MM PRACTICE M766..................  ...........        5,000  ...........  ...........        2,500
CTG MORTAR 120MM HE M934 W/MO FUZE.............       29,087       38,087       29,087           33       37,087
CTG MORTAR 120MM ILLUM XM930 W/MTSQ FZ.........  ...........        8,500  ...........  ...........        5,000
CTG 120MM APFSDS-T M829A2/M829E3...............        9,732       19,732        9,732            2       14,732
CTG 120MM HEAT-MP-T M830A1.....................  ...........       10,000       15,000  ...........       10,000
CTG ARTY 105MM DPICM XM915.....................  ...........        7,500  ...........  ...........  ...........
CTG ARTY 105 M927..............................  ...........        5,000  ...........  ...........        5,000
PROJ ARTY 155MM SADARM M898....................       56,542       36,542       31,542          550       31,542
PROJ ARTY 155MM HE M107........................       25,650       35,650       25,650          124       32,650
FUZE ARTY ELEC TIME M767.......................  ...........  ...........        5,000  ...........        4,000
MINE AT M87 (VOLCANO)..........................  ...........  ...........       15,000  ...........       12,000
BUNKER DEFEATING MUNITION (BDM)................  ...........       10,000  ...........  ...........       10,000
PROVISION OF INDUSTRIAL FACILITIES.............       47,660       52,560       47,660  ...........       50,660
CONVENTIONAL AMMO DEMILITARIZATION.............       97,983       97,983       82,983  ...........       82,983
----------------------------------------------------------------------------------------------------------------

                     kinetic energy tank ammunition

       The conferees direct the Army to submit by December 1, 
     1998, their plan for funding the M829A2 at a minimum 
     sustaining rate until the M829E3 enters production.


                         m830a1 tank ammunition

       The conferees encourage the Army to include funding for the 
     M830A1 and M830A1 to XM908 conversion programs in its fiscal 
     year 2000 budget submission.

                        Other Procurement, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
            OTHER PROCUREMENT, ARMY
 
TACTICAL TRAILERS/DOLLY SETS...................       11,948       11,948       19,448  ...........       17,948
HI MOB MULTI-PURP WHLD VEH (HMMWV).............       12,144       58,476       77,844          110       67,144
FAMILY OF MEDIUM TACTICAL VEH (FMTV)...........      332,044      312,424      382,044        2,038      332,044
MEDIUM TRUCK EXTENDED SVC PGM (ESP)............       37,247       37,247       63,647        1,085       50,447
LINE HAUL ESP..................................        4,883        4,983        4,883           62        4,983
HEAVY ARMORED SEDAN............................        5,956        5,956  ...........           54        5,956
PASSENGER CARRYING VEHICLES....................          867          867  ...........           37          867
GENERAL PURPOSE VEHICLES.......................        1,059        1,059  ...........  ...........        1,059
PROJECT MANAGEMENT SUPPORT.....................        2,437        2,437        1,437  ...........        1,437
SYSTEM FIELDING SUPPORT (TACOM)................        4,166        4,166        3,166  ...........        3,166
SMART-T (SPACE)................................       57,743       33,143       57,743  ...........       57,743
ARMY DATA DISTRIBUTION SYSTEM (ADDS)...........       24,048       27,048       52,048  ...........       47,048
SINCGARS FAMILY................................       13,212       51,212       63,212  ...........       57,212
ACUS MOD PROGRAM (WIN-T/T).....................       97,080       97,080      132,080  ...........      129,830
INFORMATION SYSTEM SECURITY PROGRAM--ISSP......       29,714       31,714       33,714  ...........       33,714
INFORMATION SYSTEMS............................       91,213       91,213      122,213  ...........      119,213
ALL SOURCE ANALYSIS SYS (ASAS) (TIARA).........       24,117       24,117       24,117  ...........       30,867
JTT/CIBS-M (TIARA).............................        5,340       10,340        5,340           56       10,340
IEW--GND BASE COMMON SENSORS (TIARA)...........       25,388       14,188  ...........  ...........       12,071
JOINT STARS (ARMY) (TIARA).....................       87,229       90,229       87,229  ...........       87,229
TACTICAL EXPLOITATION OF NATIONAL CAPABILITY...        1,690        1,690        1,690  ...........        6,090
COMMON IMAGERY GRD/SURFACE SYS.................  ...........        2,508  ...........  ...........        2,508
ITEMS LESS THAN $2.0M (TIARA)..................          530          530        2,530  ...........        1,530
SHORTSTOP......................................  ...........       15,000  ...........  ...........       10,000
NIGHT VISION DEVICES...........................       29,636       38,636       53,136  ...........       43,636
LTWT VIDEO RECON SYSTEM (LWVRS)................        3,364        3,364        9,364          110        8,364
MOD OF IN-SVC EQUIP (TAC SURV).................        5,477       23,227        5,477  ...........       16,477
LOGTECH........................................        3,238        3,238        9,238  ...........        8,238
GUN LAYING AND POS SYS (GLPS)..................       11,781        6,331       11,781          126        6,331
ISYSCON EQUIPMENT..............................       34,175       10,175       34,175  ...........       15,175
ARMY TRAINING XX1 MODERNIZATION................       32,635  ...........       32,635  ...........       32,635
AUTOMATED DATA PROCESSING EQUIP................      130,712      120,712      130,712  ...........      123,712

[[Page H8695]]

 
ITEMS LESS THAN $2.0M (CSS-EQ).................        4,749        4,749        4,749  ...........        5,749
HYDRAULIC EXCAVATOR............................        6,402        8,902        6,402           26        6,402
CRANE, WHEEL MTD, 25T, \3/4\ CU YD, RT.........       11,553       11,553       11,553           47       19,553
PUSHER TUG, SMALL..............................        4,269        8,569        4,269            3        8,569
FLOATING CRANE, 100-250 TON....................  ...........       15,000  ...........            1       15,000
GENERATORS AND ASSOCIATED EQUIP................       82,749       69,049       82,749  ...........       69,049
ROUGH TERRAIN CONTAINER CRANE..................       13,615        3,615       13,615           30        8,615
TRAINING DEVICES, NONSYSTEM....................       56,755       67,755       44,655  ...........       60,755
SIMNET/CLOSE COMBAT TACTICAL TRAINER...........      113,927       76,527       88,927  ...........       88,927
FIRE SUPPORT COMBINED ARMS TACTICAL TRAINER....       28,124  ...........       28,124  ...........       16,000
INTEGRATED FAMILY OF TEST EQUIPMENT (IFTE).....       54,051       69,051       64,051  ...........       66,551
BASE LEVEL COM'L EQUIPMENT.....................        9,697        9,697        9,697  ...........       12,697
MODIFICATION OF IN-SVC EQUIPMENT (OPA-3).......       17,667       22,467       17,667  ...........       22,667
VEHICLE LEASES.................................  ...........  ...........          400  ...........  ...........
ADVISORY AND ASSISTANCE SERVICES...............  ...........        4,030  ...........  ...........        4,030
R-2000 ENGINE FLUSH SYSTEM.....................  ...........        5,000  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
ACUS MOD PROGRAM (WIN-T/T)..................................       97,080       97,080      132,080      129,830
    Program increase........................................            0            0       35,000       30,000
    High speed multiplexer (moved from 203761A).............            0            0            0        2,750
INFORMATION SYSTEM SECURITY PROGRAM--ISSP...................       29,714       31,714       33,714       33,714
    ``Uninterruptible'' universal power supply sys..........            0        2,000            0        1,000
    Tactical Secure Terminal Equipment......................            0            0        4,000        3,000
ALL SOURCE ANALYSIS SYS (ASAS) (TIARA)......................       24,117       24,117       24,117       30,867
    Analysis control team (Note: Transferred from 0203761A).            0            0            0        6,750
JOINT STARS (ARMY) (TIARA)..................................       87,229       90,229       87,229       87,229
    Common Ground Station (Note: Of the available funds,                0        3,000            0            0
     $2,000,00 is only to procure additional workstations
     for field units in Korea and Bosnia)...................
TACTICAL EXPLOITATION OF NATIONAL CAPABILITY................        1,690        1,690        1,690        6,090
    Grendier Brat (Note: Transferred from 0203761A).........            0            0            0        4,400
NIGHT VISION DEVICES........................................       29,636       38,636       53,136       43,636
    Increase procurement--various sytems....................            0        9,000            0        6,000
    25mm gen III image intensifier..........................            0            0       10,000        8,000
LTWT VIDEO RECON SYSTEM (LWVRS).............................        3,364        3,364        9,364        8,364
    Increase procurement....................................            0            0        6,000        5,000
MOD OF IN-SVC EQUIP (TAC SURV)..............................        5,477       23,227        5,477       16,477
    Firefinder..............................................            0       16,000            0       10,000
    Automated Integrated Surveying Instrument...............            0        1,750            0        1,000
AUTOMATED DATA PROCESSING EQUIP.............................      130,712      120,712      130,712      123,172
    Ammo AIT................................................            0       10,000            0       10,000
    JCALS...................................................            0      -20,000            0      -17,000
ITEMS LESS THAN $2.0M (CSS-EQ)..............................        4,749        4,749        4,749        5,749
    Lightweight maintenance shelters........................            0            0      [2,000]        1,000
HYDRAULIC EXCAVATOR.........................................        6,402        8,902        6,402        6,402
    Hydraulic excavator--active.............................            0        1,000            0            0
    Hydraulic excavator--reserves (Note: Funds are provided             0        1,500            0            0
     under Modification of In-service Equipment)............
CRANE, WHEEL MTD, 25T, 3/4 CU YD, RT........................       11,553       11,553       11,553       19,553
    All terrain crates for the Army reserves................            0            0            0        8,000
TRAINING DEVICES, NONSYSTEM.................................       56,755       67,755       44,655       60,755
    Firefighter trainers....................................            0        3,000        4,000        3,000
    Aerial weapons scoring system...........................            0        3,000            0        2,000
    Engagement skills trainers--NTL GRD.....................            0        5,000            0        3,000
    MILES...................................................            0            0      -16,100       -8,000
    MILES--Cope Thunder exercise............................            0            0      [4,000]        4,000
BASIC LEVEL COM'L EQUIPMENT.................................        9,697        9,697        9,697       12,697
    R-2000 Engine Flush System (Note: House provided funds              0            0            0        3,000
     under R-2000 Engine Flush System project)..............
MODIFICATION OF IN-SVC EQUIPMENT (OPA-3)....................       17,667       22,467       17,667       22,667
    Laser leveling systems..................................            0        4,800            0        3,500
    Laser leveling systems for hydraulic excavator systems              0            0            0        1,500
     (Note: House provided funds under Hydraulic Excavator
     Systems)...............................................
R-2000 ENGINE FLUSH SYSTEM (Note: Project is funded under               0        5,000            0            0
 base level com' equipment).................................
----------------------------------------------------------------------------------------------------------------

                             tactical radios

       The conferees encourage FORSCOM to procure off-the-shelf 
     radios such as the AN/PRC-138 and AKLR/MIBTR to mee tthe 82nd 
     Airborne Division's requirement to replace its aging non-
     secure radios.

                       Aircraft Procurement, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
          AIRCRAFT PROCUREMENT, NAVY:
AV-8B (V/STOL) HARRIER.........................      282,713      279,513      282,713           12      279,513
F/A-18E/F (FIGHTER) HORNET.....................    2,787,783    2,568,083    2,787,783           30    2,772,783
V-22 (MEDIUM LIFT).............................      610,766      696,266      610,766            7      610,766
CH-60..........................................      106,027      144,027      106,027            5      125,027
T-45TS (TRAINER) GOSHAWK.......................      282,667      267,167      282,667           15      293,567
T-45TS (TRAINER) GOSHAWK (AP-CY)...............       60,159       60,159        8,000  ...........        8,000
KC-130J........................................  ...........      112,400  ...........            2      112,400
EA-6 SERIES....................................       75,735      114,735       80,735  ...........       95,735
AV-8 SERIES....................................       99,109      112,409       99,109  ...........       86,509
F-14 SERIES....................................      223,661      224,361      223,661  ...........      216,361
F-18 SERIES....................................      198,049      211,149      198,049  ...........      194,149
AH-1W SERIES...................................       22,394       27,894       33,394  ...........       27,894
H-1 SERIES.....................................       18,220       30,220       18,220  ...........       26,220
EP-3 SERIES....................................        5,437        6,937        7,437  ...........        7,437
P-3 SERIES.....................................      268,633      341,033      279,133  ...........      291,633
S-3 SERIES.....................................       45,997       69,797       45,997  ...........       45,997
E-2 SERIES.....................................       91,502       96,502       91,502  ...........       93,502
CARGO/TRANSPORT A/C SERIES.....................       27,179       27,179       38,179  ...........       27,179
E-6 SERIES.....................................       64,660       60,060       64,660  ...........       64,660
COMMON ECM EQUIPMENT...........................       37,375       33,075       58,875  ...........       37,075
COMMON AVIONICS CHANGES........................      104,697      109,197      104,697  ...........      102,697
SPARES AND REPAIR PARTS........................      727,838      719,438      727,838  ...........      727,838
COMMON GROUND EQUIPMENT........................      330,952      315,552      333,952  ...........      321,952
AIRCRAFT INDUSTRIAL FACILITIES.................       13,753       11,953       13,753  ...........       11,953
ADVISORY AND ASSISTANCE SERVICES...............  ...........      -15,394  ...........  ...........      -15,394
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
F/A-18E/F (FIGHTER) HORNET......................       2,787,783       2,568,083       2,787,783       2,772,783

[[Page H8696]]

 
    Reduction of aircraft.......................               0        -204,700               0               0
    Program Reduction...........................               0         -15,000               0         -15,000
T-45TS (TRAINER) GOSHAWK........................         282,667         267,167         282,667         293,567
    Authorization reduction, GSE/training equip.               0         -15,500               0               0
    Aircraft pricing............................               0               0               0          10,900
AV-8 SERIES.....................................          99,109         112,409          99,109          86,509
    Transfer from RDT&E.........................               0          11,000               0               0
    ALR-67 antennas.............................               0           2,300               0           2,300
    OSCAR.......................................               0               0               0         -14,900
F-14 SERIES.....................................         223,661         224,361         223,661         216,361
    LANTIRN.....................................               0           8,000               0               0
    Authorization reduction, structural mods....               0          -7,300               0          -7,300
F-18 SERIES.....................................         198,049         211,149         198,049         194,149
    Modification of Naval Reserve aircraft......               0          17,000               0               0
    Authorization reduction, installation costs.               0          -3,900               0          -3,900
EP-3 SERIES.....................................           5,437           6,937           7,437           7,437
    Flat panel displays.........................               0           1,500               0             800
    JSAF test...................................               0               0           2,000           1,200
P-3 SERIES......................................         268,633         341,033         279,133         291,633
    Transfer from RDT&E.........................               0          28,700               0               0
    Lightweight environmentally sealed parachute               0          10,000           7,400           7,400
     assembly...................................
    One additional AIP kit......................               0          12,200          12,200          12,200
    Specific emitter identification.............               0          15,000               0           7,500
    Advanced digital recorders..................               0           6,500               0           5,000
    Weapon system trainer.......................               0               0          -9,100          -9,100
COMMON ECM EQUIPMENT............................          37,375          33,075          58,875          37,075
    AN/ALR-67(V)2 radar warning receiver                       0           5,000           5,000           5,000
     upgrades...................................
    IDECM, transfer to RDT&E....................               0          -9,300               0          -9,300
    AN/APR-39 radar warning receivers...........               0               0           6,500           4,000
    ALQ-165 suites..............................               0               0          10,000               0
COMMON AVIONICS CHANGES.........................         104,697         109,197         104,697         102,697
    Transfer from RDT&E.........................               0           6,500               0               0
    Authorization reduction, ARC-210 radio                     0          -2,000               0          -2,000
     installs...................................
COMMON GROUND EQUIPMENT.........................         330,952         315,552         333,952         321,952
    Authorization reduction, CASS cost growth...               0         -15,400               0         -12,000
    Naval Reserve direct support squadron                      0               0           3,000           3,000
     readiness training.........................
----------------------------------------------------------------------------------------------------------------
(Note: The conferees agree to the Senate direction that up to $5,000,000 is available for the replacement data
  storage system.)

                       Weapons Procurement, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           WEAPONS PROCUREMENT, NAVY:
TRIDENT II (AP-CY).............................       62,800       62,800       42,800  ...........       52,800
TOMAHAWK.......................................      129,758       33,258      129,758  ...........       33,258
AMRAAM.........................................       62,641       55,641       51,641          115       51.641
JSOW...........................................      125,207      110,207      125,207          328      117,707
SLAM-ER........................................  ...........       39,506  ...........           54       39,506
STANDARD MISSILE...............................      225,702      205,702      210,702          120      215,602
PENGUIN........................................  ...........       10,000        7,500  ...........  ...........
AERIAL TARGETS.................................       75,474       72,774       75,474  ...........       72,774
DRONES AND DECOYS..............................          298          298       10,298  ...........        8,298
HARPOON MODS...................................       39,506  ...........       39,506  ...........  ...........
WEAPONS INDUSTRIAL FACILITIES..................       27,133       24,333       27,133  ...........       26,133
MK-48 TORPEDO ADCAP MODS.......................       52,813       50,613       52,813  ...........       50,163
CIWS MODS......................................        2,778        6,778       12,778  ...........       10,778
5/54 GUN MOUNT MODS............................          909          909       15,909  ...........       13,909
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -4,126  ...........  ...........       -4,126
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Amraam..........................................          62,641          55,641          51,641          51.641
    Program Reduction/Merger Savings............               0          -7,000         -11,000         -11,000
STANDARD MISSILE................................         225,702         205,702         210,702         215,602
    Support costs...............................               0         -20,000               0          -4,000
    Block IVA support costs.....................               0               0          -8,900               0
Program reduction/merger savings................               0               0          -6,100          -6,100
----------------------------------------------------------------------------------------------------------------

            Procurement of Ammunition, Navy and marine Corps

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
 PROCUREMENT OF AMMUNITION, NAVY & MARINE CORP:
GENERAL PURPOSE BOMBS..........................       22,904       22,904       34,904  ...........       31,904
JDAM...........................................       41,363       41,363       41,363          747       38,063
PRACTICE BOMBS.................................       40,134       60,134       40,134  ...........       55,134
EXTENDED RANGE GUIDED MUNITIONS (ERGM).........       27,452       27,452       37,452  ...........       27,452
5.56 MM, ALL TYPES.............................       25,750       26,350       26,250  ...........       26,250
.50 CALIBER....................................        1,180        1,180        1,680  ...........        1,680
60 MM. ALL TYPES...............................  ...........  ...........        8,200  ...........        7,000
120MM. ALL TYPES...............................       14,054       14,054       18,054  ...........       16,054
120MM TPCSDS-T M865............................  ...........          500  ...........  ...........          500
120 MM TP-T M831...............................  ...........          700  ...........  ...........          700
CTG 25MM, ALL TYPES............................        3,860        4,760        4,860  ...........        4,760
9 MM ALL TYPES.................................        2,332        3,132        3,332  ...........        3,132
GRENADES, ALL TYPES............................        4,893        8,093        5,893  ...........        5,893
ROCKETS, ALL TYPES.............................       21,346       38,346       39,346  ...........       39,346
DEMOLITION MUNITIONS, ALL TYPES................        7,737        8,337        7,737  ...........        8,337
FUZE, ALL TYPES................................       13,645       13,645       16,145  ...........       15,145
ADVISORY AND ASSISTANCE SERVICES...............  ...........         -736  ...........  ...........         -736
----------------------------------------------------------------------------------------------------------------

                   Shipbuilding and Conversion, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
        SHIPBUILDING & CONVERSION, NAVY:
DDG-51.........................................    2,672,078    2,662.078    2,672,078            3    2,667,078

[[Page H8697]]

 
LHD-8 ADVANCE PROCUREMENT......................  ...........  ...........       50,000  ...........       45,000
OUTFITTING.....................................       95,680       80,680       95,680  ...........       90,680
POST DELIVERY..................................      123,277      114,977      123,277  ...........      117,277
ADVISORY AND ASSISTANCE SERVICES...............  ...........      -10,520  ...........  ...........      -10,520
----------------------------------------------------------------------------------------------------------------

                            nimitz overhaul

       The conferees withdraw direction in the fiscal year 1998 
     conference report that $20,000,000 of the amount budgeted for 
     the Nimitz overall is only for the ship self-defense system, 
     since the Navy has requested and this Act provides funds in 
     the fiscal year 1999 Other Procurement, Navy appropriation 
     for the same purpose.


                                 lpd-17

       The Navy desires to move to the more capable advanced 
     enclosed mast system (EMS) for the LPD-17 class ships and has 
     informed the Appropriations Committees it has sufficient 
     funds for this program. The conferees direct the Navy to 
     include the AEMS on LPD 17 and 18 and to provide sufficient 
     funds for the AEMS on subsequent ships. Should additional 
     funding be required the Navy is directed to request 
     reprogramming or ship cost adjustments next year. The 
     conferees concur with the House direction regarding the 
     evaluation of combat systems and ship self defense 
     alternatives for the LPD-17 class ships. Currently planned 
     systems are not sufficient to meet the anti-ship cruise 
     missile and other threat scenarios. The report to the 
     Appropriations Committees shall include, but not be limited 
     to, alternatives such as multi-function radars together with 
     an evolved sea sparrow to enhance cruise missile defense and 
     Navy plans to ensure the post delivery availability or 
     backfit of enhanced combat system and ship self defense 
     alternatives for the LPD-17 class ships.

                        Other Procurement, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
            OTHER PROCUREMENT, NAVY
 
OTHER GENERATORS...............................        9,637        9,637        8,437  ...........        8,437
OTHER NAVIGATION EQUIPMENT.....................       45,259       63,259       57,259  ...........       59,259
POLLUTION CONTROL EQUIPMENT....................      149,669      130,269      123,669  ...........      130,269
HM&E ITEMS UNDER $2.0 MILLION..................       58,121       55,021       58,121  ...........       56,121
REACTOR POWER UNITS............................      227,338      200,038      227,338  ...........      227,338
REACTOR COMPONENTS.............................      211,382      200,882      211,382  ...........      211,382
NUCLEAR ALTERATIONS............................       96,752       90,752       96,752  ...........       96,752
RADAR SUPPORT..................................        1,260       23,260       10,260  ...........       23,260
FFG UPGRADES...................................  ...........  ...........  ...........  ...........       11,000
AN/SQQ-89 SURF ASW COMBAT SYSTEM...............       27,432       18,732       27,432  ...........       23,432
SSN ACOUSTICS..................................      133,535      132,335      148,535  ...........      144,735
SONAR SWITCHES AND TRANSDUCERS.................       12,785       11,785       12,785  ...........       12,785
C-3 COUNTERMEASURES............................        6,080       12,580        6,080  ...........       10,080
BATTLE GROUP PASSIVE HORIZON EXTEN.............       73,542       73,542       65,328  ...........       65,328
NAVY TACTICAL DATA SYSTEM......................           34       10,034           34  ...........        8,034
COOPERATIVE ENGAGEMENT CAPABILITY..............       47,332       82,332       19,432  ...........       82,332
COMMON IMAGERY GRD/SURFACE SYS.................  ...........       65,827  ...........  ...........       65,827
MINESWEEPING SYSTEM REPLACEMENT................       32,934       17,034       17,039  ...........       17,039
STRATEGIC PLATFORM SUPPORT EQUIP...............       12,687       11,687       12,687  ...........       12,687
NATIONAL AIR SPACE SYSTEM......................       28,201  ...........       28,201  ...........        8,018
ID SYSTEMS.....................................       15,330       13,430       15,330  ...........       13,430
JMCIS TACTICAL/MOBILE..........................        3,982       25,982        3,982  ...........       23,982
INTEG COMBAT SYSTEM TEST FACILITY..............        4,482        4,482        6,482  ...........        6,482
SHORE ELEC ITEMS UNDER $2.0 MILLION............        2,559       10,559        2,559  ...........       10,559
SHIPBOARD TACTICAL COMMUNICATIONS..............       34,397       34,397       38,397  ...........       37,397
SHIP COMM ITEMS UNDER $2.0 MILLION.............       24,220       22,320       24,220  ...........       22,320
SUBMARINE COMMUNICATION EQUIPMENT..............       64,583       64,583       50,283  ...........       60,583
SATCOM SHIP TERMINALS (SPACE)..................      145,193      155,193      145,193  ...........      152,193
INTEGRATED BROADCAST SERVICE...................  ...........       10,271  ...........  ...........       10,271
JEDMICS........................................  ...........        5,000       10,000  ...........        7,000
NAVAL SHORE COMMUNICATIONS.....................      113,546      110,546      113,546  ...........      110,546
WEAPONS RANGE SUPPORT EQUIPMENT................        8,064       13,064       23,064  ...........       26,064
AIRCRAFT LAUNCH & RECOVERY EQUIPMENT...........       39,749       35,649       39,749  ...........       35,649
METEOROLOGICAL EQUIPMENT.......................       32,892       28,492       32,892  ...........       28,492
GUN FIRE CONTROL EQUIPMENT.....................       20,203       35,203       20,203  ...........       31,203
ENGAGEMENT SYSTEMS SUPPORT.....................          307  ...........          307  ...........  ...........
SHIP SELF DEFENSE SYSTEM.......................       22,944       43,944       22,944  ...........       38,944
AEGIS SUPPORT EQUIPMENT........................       83,169       85,169       95,169  ...........       94,169
SURFACE TOMAHAWK SUPPORT EQUIPMENT.............       90,209      103,009       90,209  ...........       98,009
STRATEGIC MISSILE SYSTEMS EQUIP................      283,612      278,612      283,612  ...........      278,612
ANTI-SHIP MISSILE DECOY SYSTEM.................       21,504        8,004       22,504  ...........       22,504
SURFACE TRAINING DEVICE MODS...................        5,891        6,891        5,891  ...........        6,891
ARMORED SEDANS.................................          255          255  ...........  ...........          255
PASSENGER CARRYING VEHICLES....................        3,224        3,224          246  ...........        2,540
POLLUTION CONTROL EQUIPMENT....................       28,039       22,539       28,039  ...........       21,039
VEHICLE LEASING................................  ...........  ...........          806  ...........          684
TRAINING SUPPORT EQUIPMENT.....................        2,174        7,174        2,174  ...........        5,174
COMMAND SUPPORT EQUIPMENT......................       17,916       19,916       17,916  ...........       19,916
OPERATING FORCES SUPPORT EQUIPMENT.............        4,684        6,184        4,684  ...........        6,184
SPARES AND REPAIR PARTS........................      279,028      247,528      271,028  ...........      247,528
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -4,594  ...........  ...........       -4,594
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
OTHER NAVIGATION EQUIPMENT:.....................          45,259          63,259          57,259          59,259
    WSN-7 ring laser gyro.......................               0          12,000          12,000          10,000
    WQN-2 doppler sonar velocity log............               0           6,000               0           2,000
    Doppler sonar velocity log alternate                       0               0               0           2,000
     competitive source.........................
    (Note: This item was funded in RDT&E, Navy
     in the Senate bill)
POLLUTION CONTROL EQUIPMENT.....................         149,669         130,269         123,669         130,269
    Authorization reduction.....................               0         -19,400               0         -19,400
    Shore-based program.........................               0               0         -15,000               0
    Ship-based program..........................               0               0         -11,000               0
    (Note: The conferees direct that none of the
     reduction be applied to ship conversions of
     refrigeration equipment from refrigerant
     CFC-114 to ozone-friendly CFC substitutes)
FFG UPGRADES....................................               0               0               0          11,000
    (Note: These funds are only for FFG upgrades
     to support the Naval Reserve Force Western
     Hemisphere mission. Funding will allow for
     upgrades that include, but are not limited
     to, consoles, radar, and tracking software
     as well as maintenance logistics costs)
SSN ACOUSTICS...................................         133,535         132,335         148,535         144,735
    Authorization reduction.....................               0          -1,200               0               0
    Acoustic rapid COTS insertion...............               0               0          15,000          11,200
C-3 COUNTERMEASURES.............................           6,080          12,580           6,080          10,080
    Outlaw Bandit ship signature reduction kits.               0           6,000               0           4,000
    (Note: Outlaw Bandit funds provided in this
     Act in both RDT&E and OPN are of special
     interest)
    Cancelled MK-12 field changes...............               0          -1,900               0          -1,900

[[Page H8698]]

 
JMCIS TACTICAL/MOBILE...........................           3,982          25,982           3,982          23,982
    Littoral surveillance system................               0          12,000               0          12,000
    (Note: Funds are only to procure an
     engineering development model for
     operational use to support Naval Reserve
     operations of the Pacific Disaster Center).
    Mobile inshore undersea warfare van                        0          10,000               0           8,000
     improvements...............................
    (Note: $4,000,000 is for MIUW improvements
     and $4,000,000 is only to establish
     integrated logistics support for the MIUW
     system)
    Submarine high data rate communications.....               0               0         -14,300          -4,000
WEAPONS RANGE SUPPORT EQUIPMENT.................           8,064          13,064          23,064          26,064
    Rangeless air combat training...............               0           5,000               0           5,000
    Mobile remote emitter simulator for 2nd                    0               0           5,000           3,000
     location...................................
    PMRF upgrades...............................               0               0          10,000          10,000
AEGIS SUPPORT EQUIPMENT.........................          83,169          85,169          95,169          94,169
    Wireless sensors............................               0           2,000               0           1,000
    Smart ship equipment........................               0               0          12,000          10,000
SURFACE TOMAHAWK SUPPORT EQUIPMENT..............          90,209         103,009          92,209          98,009
    Afloat planning system......................               0          10,000               0           5,000
    Tactical Tomahawk...........................               0           2,800               0           2,800
----------------------------------------------------------------------------------------------------------------

                       Procurement, Marine Corps

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           PROCUREMENT, MARINE CORPS
MODIFICATION KITS (TRKD VEH)...................        5,726        5,726       25,326  ...........        7,726
MOD KITS (ARTILLERY)...........................        1,809        1,809        4,309  ...........        2,809
155MM LIGHTWEIGHT TOWED HOWITZER...............       10,002       10,002       10,002  ...........  ...........
PEDESTAL MOUNTED STINGER (PMS) (MYP)...........          218          218        5,218  ...........        3,218
AUTO TEST EQUIP SYS............................       19,312       19,312       34,312  ...........       29,312
MOD KITS (INTEL)...............................        4,791        4,791        7,891  ...........        7,391
ITEMS LESS THAN $2.OM (INTELL).................  ...........        2,000  ...........  ...........        2,000
NIGHT VISION EQUIPMENT.........................       11,563       11,563       50,063  ...........       33,663
COMMAND POST SYSTEMS...........................        7,134       12,134        7,134  ...........       17,134
COMM & ELEC INFRASTRUCTURE SUPPORT.............       57,862       89,862      131,962  ...........      105,862
MOD KITS MAGTF C41.............................       27,427       27,427       27,427  ...........       33,927
COMMERCIAL PASSENGER VEHICLES..................        1,248        1,248           53           37        1,248
COMMERCIAL CARGO VEHICLES......................        8,821        8,821        7,624  ...........        8,821
VEHICLE LEASES.................................  ...........  ...........          611  ...........  ...........
MEDIUM TACTICAL VEHICLE REPLACEMENT............       83,717       69,717       83,717          240       69,717
LT TACTICAL VEHICLE REMANUFACTURE (LTRV).......       39,263       72,763       66,263  ...........       69,263
POWER EQUIPMENT ASSORTED.......................        5,097        5,097       14,597  ...........        9,597
SHOP EQ CONTACT MAINTENANCE (SECM).............        5,972        5,972       11,372  ...........        8,372
COMMAND SUPPORT EQUIPMENT......................          514        4,914          514  ...........        4,914
MATERIAL HANDLING EQUIP........................        6,453       11,453       16,853  ...........       11,453
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -1,140  ...........  ...........       -1,140
----------------------------------------------------------------------------------------------------------------

                 EXPLANATION OF PROJECT LEVEL ADJUSTMENTS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
MODIFICATION KITS (TRKD VEH)....................           5,726           5,726          25,326           7,726
    Mod kits for tracked vehicles...............               0               0           4,600            2,00
    JTF enhanced core communications............               0               0          15,000               0
    (Note: Funds are provided under Command Post
     Systems)
AUTO TEST EQUIPMENT SYSTEM......................          19,312          19,312          34,312          29,312
    DSESTS-LAV, TOW2 and Abrams.................               0               0          15,000          10,000
NIGHT VISION EQUIPMENT..........................          11,563          11,563          50,063          33,663
    Borelights..................................               0               0           1,000           1,000
    Medium power laser illuminator..............               0               0           3,800           2,000
Laser aiming modules............................               0               0           5,000           3,000
Gen III tubes...................................               0               0           6,100           6,100
AN/AVS-6 night vision goggle OMNI retrofit......               0               0          22,600          10,000
COMMAND POST SYSTEMS............................           7,134          12,134           7,134          17,134
    JTF Enhanced Core Communications............               0           5,000               0          10,000
    (Note: Senate added $15,000,000 under
     Modification Kits (Trked Vehicles))
COMM & ELEC INFRASTRUCTURE SUPPORT..............          57,862          89,862         131,962         105,862
    Upgrades--Quantico, 29 Palms, Barstow.......               0          32,000               0          32,000
    Upgrades non-specific.......................               0               0          74,100          16,000
    (Note: Funds are provided for Quantico MCB,
     29 Palms MCB, Barstow MCB, and Albany MCB)
MOD KITS MAGTF C41..............................          27,427          27,427          27,427          33,927
MEWSS...........................................               0               0               0           6,500
----------------------------------------------------------------------------------------------------------------

                direct support electrical system test sets

       The conferees urge the DoD to include the general purpose 
     Direct Support Electrical System Test Sets (DSESTS) in the 
     DoD automatic test system family. DSESTS are currently in use 
     by the Army and Marine Corps as automatic test equipment 
     (ATE) on several wheeled and tracked combat vehicles. DSESTS 
     are proven test equipment that are comparable to other ATE 
     included in the ATE family.

                    Aircraft Procurement, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
        AIRCRAFT PROCUREMENT, AIR FORCE
 
ADVANCED TACTICAL FIGHTER (F-22)...............      595.094      525.094      595.094            2      581,094
F-16 C/D (MYP).................................  ...........       60,000  ...........            1       30,000
EC-130J........................................  ...........       51,500  ...........            1       85,000
C-130J.........................................       63,782      237,782       30,000  ...........       30,000
WC-130.........................................  ...........       59,700       75,400            1       75,400
JPATS..........................................      107,086      102,186       97,186           22      106,186
CIVIL AIR PATROL A/C...........................        2,619        3,000        2,619           27        3,000
SMALL VCX......................................  ...........  ...........       79,600            1       39,800
E-8C (AP-CY)...................................  ...........       72,000  ...........  ...........       36,000
B-1B...........................................       91,614       91,614       58,514  ...........       91,614
B-52...........................................       38,308       38,308       48,608  ...........       46,608
F-15...........................................      196,579      241,579      236,579  ...........      241,579
F-16...........................................      229,319      235,319      239,219  ...........      239,119
C-5............................................       63,635       98,635       63,635  ...........       78,635
T-38...........................................       53,570       46,570       53,570  ...........       50,570
C-130..........................................      119,592      148,292      119,592  ...........      120,592
C-135..........................................      291,070      341,070      381,070  ...........      291,070
DARP...........................................      139,242      139,242       83,942  ...........      139,242
E-3............................................      114,181      107,181      114,181  ...........      114,181
E-4............................................       13,987       13,987        9,317  ...........        9,317

[[Page H8699]]

 
E-8............................................       44,179       44,179       50,179  ...........       44,179
PASSENGER SAFETY MODIFICATIONS.................  ...........       50,000       50,000  ...........       30,000
SPARES AND REPAIR PARTS........................      524,829      522,398      551,829  ...........      522,398
COMMON SUPPORT EQUIPMENT.......................      152,109      158,109      152,109  ...........      158,109
B-2A...........................................      189,869      275,869      159,869  ...........      239,869
F-16 POST PRODUCTION SUPPORT...................       27,289       42,289       27,289  ...........       37,289
WAR CONSUMABLES................................       49,396       49,396       49,396  ...........       34,720
MISC PRODUCTION CHARGES........................      221,464      207,864      210,564  ...........      207,064
COMMON ECM EQUIPMENT...........................        4,963       20,663        4,963  ...........       11,963
DARP...........................................      152,113      141,813      152,113  ...........      141,813
ADVISORY AND ASSISTANCE SERVICES...............  ...........      -11,490  ...........  ...........      -11,490
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

 
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
EC-130J.....................................................            0       51,500            0       85,000
  (Note: USAF will utilize all remaining unobligated EC-130J
   appropriations, regardless of fiscal year, to perform
   three Commndo Solo (EC-130J) modifications)
C-130J......................................................       63,782      237,782       30,000       30,000
  Additional aircraft for Air National Guard................            0      174,000            0            0
  C-130J aircraft trainer...................................            0            0       30,000       30,000
  Active aircraft reduction.................................            0            0      -63,782      -63,782
JPATS.......................................................      107,086      102,186       97,186      106,186
  Three additional aircraft.................................            0        9,100        9,100        9,100
  GBTS concurrency..........................................            0      -14,000            0      -10,000
  GBTS delays...............................................            0            0      -15,000            0
  Other government cost growth..............................            0            0       -4,000            0
B-52........................................................       38,308       38,308       48,608       46,608
  Modifications for 94 aircraft fleet.......................            0            0       10,300       10,300
  Program reduction.........................................            0            0            0       -2,000
F-15........................................................      196,579      241,579      236,579      241,579
  ``E'' kit engine upgrades.................................            0       20,000       25,000       20,000
  ALQ-135 jammer............................................            0       25,000       15,000       25,000
F-16........................................................      229,319      235,319      239,219      239,119
  600 gal fuel tanks........................................            0        6,000        4,000        4,000
  Digital terrain system....................................            0            0        5,900        4,000
  ALR-56M...................................................            0            0            0        1,800
C-130.......................................................      119,592      148,292      119,592      120,592
  EC-130 modifications......................................            0       24,700            0            0
  Aluminum mesh system......................................            0        4,000            0        1,000
C-135.......................................................      291,070      341,070      381,070      291,070
  Reengine 2 KC-135 aircraft................................            0       50,000            0            0
  C-135 engine lease program................................            0            0       90,000            0
SPARES AND REPAIR PARTS.....................................      524,829      522,398      551,829      522,398
  PACER COIN................................................            0       -2,431            0       -2,431
  WC-130J modifications.....................................            0            0       27,000            0
B-2A........................................................      189,869      275,869      159,869      239,869
  B-2 upgrades..............................................            0       86,000            0       50,000
  Software investment.......................................            0            0      -20,000            0
  Initial spares............................................            0            0      -10,000            0
WAR CONSUMABLES.............................................       49,396       49,396       49,396       34,720
  LAU-117 contract savings..................................            0            0            0      -14,676
MISC PRODUCTION CHARGES.....................................      221,464      207,864      210,564      207,064
  Harm Targeting System.....................................            0      -10,100            0            0
  JTCTS.....................................................            0       -3,500            0       -3,500
  GPS user equipment production testing.....................            0            0       -3,000       -3,000
  GPS undefined hardware....................................            0            0       -2,700       -2,700
  Program reduction.........................................            0            0       -5,200       -5,200
COMMON ECM EQUIPMENT........................................        4,963       20,663        4,963       11,963
  ALQ-184 sustainment.......................................            0       10,000            0        5,000
  ALE-50 decoys.............................................            0        5,700            0        2,000
----------------------------------------------------------------------------------------------------------------

                 DEFENSE AIRBORNE RECONNAISSANCE PROGRAM

       The conferees direct that the Air Force use the previously 
     appropriated funds and, if necessary, a below threshold 
     reprogramming to complete the demonstration and test of the 
     Theater Airborne Warning System (TAWS). The conferees believe 
     that any continuation of this program should be budgeted for 
     in the Air Force's fiscal year 2000 request.

                     Missile Procurement Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Confernece
----------------------------------------------------------------------------------------------------------------
         MISSILE PROCUREMENT, AIR FORCE
 
AMRAAM.........................................      114,627       93,727       87,323          180       93,727
TARGET DRONES..................................       36,263       36,263       26,263  ...........       26,263
MM III MODIFICATIONS...........................       90,618      136,618      120,618  ...........      120,618
AGM-65H MAVERICK...............................  ...........        3,000  ...........  ...........        3,000
GLOBAL POSITIONING (MYP) SPACE (AP-CY).........       77,400  ...........       77,400  ...........  ...........
INERITIAL UPPER STAGES SPACE...................       48,012       46,012       37,812  ...........       44,012
TITAN SPACE BOOSTERS SPACE.....................      578,540      550,540      548,540  ...........      548,540
MEDIUM LAUNCH VEHICLE SPACE....................      188,406      177,406      188,406            5      177,406
DEFENSE SUPPORT PROGRAM SPACE..................       89,904       82,904       89,904  ...........       89,904
SPECIAL UPDATE PROGRAMS........................      224,299      204,999      131,299  ...........      151,299
SPECIAL PROGRAMS...............................      616,271      576,271      616,271  ...........      531,271
ADVISORY AND ASSISTANCE SERVICES...............  ...........      -11,676  ...........  ...........      -11,676
----------------------------------------------------------------------------------------------------------------

                 EXPLANATION OF PROJECT LEVEL ADJUSTMENTS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
AMRAAM:                                                  114,627          93,727          87,323          93,727
    Merger savings/program reduction............               0         -20,900         -27,304         -20,900
    Restructured program........................               0               0         -10,000         -10,000
----------------------------------------------------------------------------------------------------------------

                  Procurement of Ammunition, Air Force

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

[[Page H8700]]


                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
      PROCUREMENT OF AMMUNITION, AIR FORCE
 
JOINT DIRECT ATTACK MUNITION...................       53,157       53,157       53,157        1,819       46,157
PRACTICE BOMBS.................................  ...........        5,000  ...........  ...........        2,500
ADVISORY AND ASSISTANCE SERVICES...............  ...........         -236  ...........  ...........         -236
----------------------------------------------------------------------------------------------------------------

                      Other Procurement, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
          OTHER PROCUREMENT, AIR FORCE
 
SEDAN, 4 DR 4X2................................          780          780  ...........  ...........  ...........
STATION WAGON, 4X2.............................          413          413  ...........  ...........  ...........
BUSES..........................................        5,174        5,174  ...........  ...........  ...........
AMBULANCES.....................................          306          306  ...........  ...........  ...........
ARMORED SEDAN..................................          239          239  ...........  ...........  ...........
TRUCK, CARGO-UTILITY, 3/4T, 4X4................        6,160        6,160  ...........  ...........  ...........
TRUCK, CARGO-UTILITY, 1/2T, 4X2................        2,612        2,612  ...........  ...........  ...........
TRUCK, PICKUP, 1/2T, 4X2.......................        3,379        3,379  ...........  ...........  ...........
TRUCK, PICKUP, COMPACT.........................        2,445        2,445  ...........  ...........  ...........
TRUCK, UTILITY.................................        3,347        3,347  ...........          124        3,347
CAP VEHICLES...................................          744        1,400          744  ...........        1,400
INTELLIGENCE DATA HANDLING SYS.................       17,574       21,174       17,574  ...........       20,674
INTELLIGENCE COMM EQUIP........................        5,697        8,697        5,697  ...........        8,697
AIR TRAFFIC CTRL/LAND SYS (ATCALS).............  ...........  ...........       16,000  ...........  ...........
NATIONAL AIRSPACE SYSTEM.......................       45,308       45,308       45,308  ...........       13,400
THEATER AIR CONTROL SYS IMPROVEMENT............       30,002       32,502       30,002  ...........       35,002
TAC SIGINT SUPPORT.............................        1,883  ...........        1,883  ...........  ...........
AUTOMATIC DATA PROCESSING EQUIP................       33,190       33,190       33,190  ...........       36,190
AF GLOBAL COMMAND & CONTROL SYS................        5,819        4,519        5,819  ...........        4,519
COMBAT TRAINING RANGES.........................       13,194       12,694       13,194  ...........       22,694
C3 COUNTERMEASURES.............................       10,228       10,228       17,728  ...........       17,728
BASE LEVEL DATA AUTO PROGRAM...................       28,876       28,876       27,000  ...........       27,000
BASE INFORMATION INFRASTRUCTURE................      159,383      180,383      158,383  ...........      159,383
AFE SATELLITE CONTROL NETWORK SPACE............       26,007       23,007       26,007  ...........       23,007
TACTICAL C-E EQUIPMENT.........................       31,064       27,364       31,064  ...........       27,364
COMBAT SURVIVOR/EVADER LOCATER RADIO...........       13,757  ...........       13,757  ...........        3,000
CAP COM & ELECT................................          378          450          378  ...........          450
NIGHT VISION GOGGLES...........................        8,118        6,118        8,118  ...........        6,118
MECHANIZED MATERIAL HANDLING EQUIP.............       14,516       14,516       14,516  ...........       18,516
BASE PROCURED EQUIPMENT........................        5,644       10,244        5,644  ...........        7,744
AIR BASE OPERABILITY...........................        5,363        5,363       12,363  ...........        5,363
PRDUCTIVITY INVESTMENTS........................       12,304       17,304       12,304  ...........       12,304
INTELLIGENCE PRODUCTION ACTIVITY...............       72,605       71,605       72,605  ...........       72,605
COMMON IMAGERY GRD/SURFACE SYS.................  ...........        5,681  ...........  ...........        5,681
DARP RC135.....................................       12,656       16,456       12,656  ...........       16,456
SELECTED ACTIVITIES............................    5,322,644    5,405,644    5,256,344  ...........    5,354,744
SPECIAL UPDATE PROGRAM.........................      179,813      149,813      179,813  ...........      169,813
FIRST DESTINATION TRANSPORTATION...............       16,442       16,442       16,000  ...........       16,000
SPARES AND REPAIR PARTS........................       52,712       52,712       52,712  ...........       49,012
VEHICLE LEASES.................................  ...........  ...........        4,887  ...........        2,400
VEHICLE PURCHASE...............................  ...........  ...........  ...........  ...........       12,200
ADVISORY AND ASSISTANCE SERVICES...............  ...........       -4,802  ...........  ...........       -4,802
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
THEATER AIR CONTROL SYS IMPROVEMENT.............          30,002          32,502          30,002          35,002
    Mobile Radar Approach Control (RAPCON) for                 0           8,000               0           8,000
     Air National Guard.........................
    Contract savings............................               0          -5,500               0          -3,000
AUTOMATIC DATA PROCESSING EQUIP.................          33,190          33,190          33,190          36,190
    Battle lab collaborative network............               0           3,000               0           3,000
    Commercially available equipment............               0          -3,000               0          -3,000
    Spares Information System (transfer)........               0               0               0           3,000
COMBAT TRAINING RANGES..........................          13,194          12,694          13,194          22,694
    Rangeless training..........................               0           5,000               0          15,000
    JTCTS.......................................               0          -5,500               0          -5,500
BASE INFORMATION INFRASTRUCTURE.................         159,383         180,383         158,383         159,383
    Base information protection improvements....               0          20,000               0               0
    Office of Security and Investigations                      0           1,000               0           1,000
     computer crime investigations..............
    Program reduction...........................               0               0          -1,000          -1,000
MECHANIZED MATERIAL HANDLING EQUIP:.............          14,516          14,516          14,516          18,516
    Supply Asset Tracking System (transfer).....               0               0               0           4,000
BASE PROCURED EQUIPMENT.........................           5,644          10,244           5,644           7,744
    Ultimate Building Machines for Air National                0           1,800               0             800
     Guard......................................
    Ultimate Building Machines for Air Force....               0             800               0             300
    Automated Integrated Surveying Equipment....               0           2,000               0           1,000
----------------------------------------------------------------------------------------------------------------

                       Procurement, Defense-Wide

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
           PROCUREMENT, DEFENSE-WIDE
 
MAJOR EQUIPMENT, OSD...........................      100,245      137,245      100,245  ...........      120,245
DARP...........................................       77,435        3,419       77,435  ...........        3,419
DEFENSE AIRBORNE RECONNAISSANCE PROGRAM........       11,988        8,569       11,988  ...........       11,988
DEFENSE SUPPORT ACTIVITIES.....................       68,682       68,682       88,682       68,682
AUTOMATIC DOCUMENT CONVERSION SYSTEM...........  ...........       25,000  ...........  ...........       20,000
MAJOR EQUIPMENT, DSPO..........................       16,214  ...........       16,214  ...........        3,913
PATRIOT PAC-3..................................      343,235      303,235      192,735           40      248,235
C-130 MODIFICATIONS............................       58,359       58,359       63,359  ...........       60,859
SOF ORDNANCE ACQUISITION.......................       15,707       15,707       21,707  ...........       18,707
MARITIME EQUIPMENT MODIFICATIONS...............       26,012       22,012       26,012  ...........       22,012
CLASSIFIED PROGRAMS............................       73,991       79,084       84,091  ...........       84,091
CONSEQUENCE MANAGEMENT.........................  ...........       15,000  ...........  ...........  ...........
CLASSIFIED PROGRAMS............................      349,694      407,032      349,694  ...........      370,594
MILITARY PERSONNEL INFORMATION SYSTEM..........  ...........       12,000  ...........  ...........       12,000
----------------------------------------------------------------------------------------------------------------


[[Page H8701]]

                 EXPLANATION OF PROJECT LEVEL ADJUSTMENTS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
MAJOR EQUIPMENT, OSD:                                    100,245         137,245         100,245         120,245
    Mentor-Protege Program......................               0          10,000               0          10,000
    High Performance Computing Hardware.........               0          27,000               0          10,000
MAJOR EQUIPMENT, DSPO:                                    16,214               0          16,214           3,913
    Program reduction...........................               0          -7,826               0          -3,913
    IBS transfer................................               0          -8,388               0          -8,388
PATRIOT PAC-3:                                           343,235         303,235         192,735         248,235
    Reduction due to schedule slip..............               0               0        -150,500         -55,000
    Transfer....................................               0         -40,000               0         -40,000
CLASSIFIED PROGRAMS;                                      73,991          79,084          84,091          84,091
    Program increase............................               0           5,093               0               0
    Program increase............................               0               0          10,100          10,100
----------------------------------------------------------------------------------------------------------------

                 Patriot Advanced Capability 3 (PAC-3)

       The conferees agree to provide $248,235,000, a decrease of 
     $95,000,000 to the budget request for Patriot PAC-3 
     procurement, based on delays in the test program and in 
     execution of the fiscal year (FY) 1998 Low Rate Initial 
     Procurement (LRIP). The conferees direct that the FY 1998 
     PAC-3 LRIP funds may not be obligated until the PAC-3 missile 
     successfully completes two intercept flight tests.

                  National Guard and Reserve Equipment

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
       NATIONAL GUARD & RESERVE EQUIPMENT
 
RESERVE EQUIPMENT:
    ARMY RESERVE: MISCELLANEOUS EQUIPMENT......  ...........       20,000       45,000  ...........       20,000
    NAVY RESERVE:
        MISCELLANEOUS EQUIPMENT................  ...........       20,000       25,000  ...........       20,000
        C-9 REPLACEMENT........................  ...........  ...........       40,000  ...........       40,000
    MARINE CORPS RESERVE: MISCELLANEOUS          ...........       20,000       30,000  ...........       20,000
     EQUIPMENT.................................
    AIR FORCE RESERVE: MISCELLANEOUS EQUIPMENT.  ...........       20,000       35,000  ...........       20,000
NATIONAL GUARD EQUIPMENT:
    ARMY NATIONAL GUARD: MISCELLANEOUS           ...........       20,000       72,000  ...........       20,000
     EQUIPMENT.................................
    AIR NATIONAL GUARD:
        MISCELLANEOUS EQUIPMENT................  ...........       20,000       40,000  ...........       20,000
        C-130J.................................  ...........  ...........      128,000            3      192,000
        EC-130J................................  ...........  ...........       85,000  ...........  ...........
----------------------------------------------------------------------------------------------------------------

                        miscellaneous equipment

       The conferees agree that each of the Chiefs of the Reserve 
     and National Guard components should exercise control of 
     modernization funds provided in this account including 
     aircraft and aircraft modernization. The conferees further 
     agree that separate submissions of a detailed assessment of 
     its modernization priorities by the component commanders is 
     required to be submitted to the defense committees. The 
     conferees expect the component commanders to give priority 
     consideration to the following items: Reconfigurable Mission 
     Simulator, Mobile Backscatter Radar, F-16 ALR-56M Radar 
     Warning Receivers WR, P-3C Reserve Modernization, AN/PVS-7 
     and AN/PVS-14 Night Vision Devices, C-17 Simulator, Early 
     Production and Fielding Program, F-15 Night Vision Imaging 
     Systems, Frequency Hopping Multiplexer, Full Mission Trainer 
     Upgrades, MIDS System Intergration, D7 Tractor Bulldozer PIP, 
     D7 Tractor Bulldozer, IREMBASS, Sandbagger, CH-47 Internal 
     Crashworthy Fuel Cells, A20DS, Counterdrug Sensor Upgrades, 
     Armored Combat Earth Movers, ATARS MAEO Sensors, Bradley 
     A20D, C-130 Modernization, C-130J Flight Simulators, C-22 
     Replacement, HH-60 Combat Rescue Upgrades, D-7 Bulldozers and 
     Product Improvements, Engagement Skills Trainers, F-15 
     Fighter Data Link, F-16 Situation Awareness Data Link, F-16 
     Targeting Pods, F-16 Unit Training Devices, F-16 Midlife 
     Update, Heavy Tactical Vehicles, Field Artillery Ammunition 
     Support Vehicles, LITENING Targeting pod system, M88 A2, 
     Material Handling Equipment Product Improvements, Mobile 
     Electronic Warfare Support Systems, Simulators, SINCGARS 
     radios, Onboard Oxygen Generating System, Outfitting of the 
     220th ADA Patriot Battalion, Paladin, Theater 
     Aircommunication Equipment, UC-35A, UH-1 Modernization, 
     Vibration Management Enhancement Program, UH-60Q Upgrades, 
     WC-130J Modifications, Masters Cranes, F-16 Intermediate 
     Avionics Shop, Medium Truck Extended Service Program, MJU-52 
     IR Expendable Countermeasures and Trucks and Support 
     Equipment for Transportation Companies.


                  national guard and reserve aircraft

       The conferees agree to provide $232,000,000 specifically 
     for the acquisition and modernization of the following 
     aircraft to support Reserve and National Guard missions:

C-9 replacement for the Navy Reserve........................$40,000,000
C-130J aircraft for the Air National Guard (3)..............192,000,000

          TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
                       RECAPITULATION
 
RDTE, ARMY..................................................    4,780,545    4,967,446    4,891,640    5,031,788
RDTE, NAVY..................................................    8,108,923    8,297,986    8,215,519    8,636,649
RDTE, AIR FORCE.............................................   13,598,093   13,577,441   13,693,153   13,758,811
RDTE, DEFENSE-WIDE..........................................    9,314,665    8,776,318    9,032,908    9,036,551
DEVELOPMENTAL TEST AND EVALUATION...........................      251,106      263,606      249,106      258,606
OPERATIONAL TEST AND EVALUATION.............................       25,245       35,245       25,245       34,245
                                                             ---------------------------------------------------
      GRAND TOTAL, RDTE.....................................   36,078,577   35,918,042   36,107,571   36,756,650
----------------------------------------------------------------------------------------------------------------

            Research, Development, Test and Evaluation, Army

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
            RESEARCH DEVELOPMENT TEST & EVAL ARMY
 
IN-HOUSE LABORATORY INDEPENDENT RESEARCH....................       14,902       13,678       14,902       13,678
DEFENSE RESEARCH SCIENCES...................................      137,399      121,827      129,463      126,463
TRACTOR ROSE................................................        6,000        6,000  ...........  ...........
MATERIALS TECHNOLOGY........................................       10,137       10,137       15,137       13,137
SENSORS AND ELECTRONIC SURVIVABILITY........................       18,738       18,738       16,895       16,895
AVIATION TECHNOLOGY.........................................       29,746       29,746       25,160       25,160
MISSILE TECHNOLOGY..........................................       25,180       24,880       30,680       30,380
MODELING AND SIMULATION TECHNOLOGY..........................       27,981       22,531       24,153       21,653
COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY....................       40,107       30,107       44,362       39,562

[[Page H8702]]

 
BALLISTICS TECHNOLOGY.......................................       31,115       31,115       27,475       27,475
WEAPONS AND MUNITIONS TECHNOLOGY............................       29,489       25,689       31,489       29,189
ELECTRONICS AND ELECTRONIC DEVICES..........................       22,329       29,829       25,479       25,479
HUMAN FACTORS ENGINEERING TECHNOLOGY........................       13,369       21,169       18,169       16,619
ENVIRONMENTAL QUALITY TECHNOLOGY............................       13,842       42,342       51,742       64,842
MILITARY ENGINEERING TECHNOLOGY.............................       37,488       42,488       42,188       52,688
MEDICAL TECHNOLOGY..........................................       67,255      155,740       70,255      139,255
DUAL USE APPLICATIONS PROGRAM...............................       20,000       20,000       10,000       10,000
WARFIGHTER ADVANCED TECHNOLOGY..............................       32,969       27,369       32,969       30,669
MEDICAL ADVANCED TECHNOLOGY.................................       11.012      179,012       30,012      230,862
AVIATION ADVANCED TECHNOLOGY................................       30,048       40,048       51,048       45,048
WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY...................       24,555       27,055       29,055       25,055
COMBAT VEHICLE AND AUTOMOTIVE ADVANCED TECHNOLOGY...........       54,435       54,435       49,535       61,735
COMMAND, CONTROL, COMMUNICATIONS ADVANCED TECHNOLOGY........       20,109       28,109       20,109       24,109
MISSILE AND ROCKET ADVANCED TECHNOLOGY......................       86,096       47,896       92,096       71,896
LANDMINE WARFARE AND BARRIER ADVANCED TECHNOLOGY............       21,944       24,944       25,844       23,944
JOINT SERVICE SMALL ARMS PROGRAM............................        5,173       10,673        8,673        9,673
LINE-OF-SIGHT TECHNOLOGY DEMONSTRATION......................       20,099  ...........       20,099       12,000
NIGHT VISION ADVANCED TECHNOLOGY............................       23,960       23,960       26,460       27,460
MILITARY ENGINEERING ADVANCED TECHNOLOGY....................       13,564       13,564       16,264       15,564
TACTICAL TOWED ARRAY SONAR (H)..............................       54,419  ...........       54,419  ...........
JOINT TACTICAL RADIO........................................       15,600       15,600       15,600       10,100
ARMY MISSILE DEFENSE SYSTEMS INTEGRATION....................       12,200       21,240       38,240       37,740
ARMAMENT ENHANCEMENT INITIATIVE.............................       26,526       46,526       28,526       36,026
ARMY DATA DISTRIBUTION SYSTEM...............................       17,281        6,281        6,300       15,281
NATO RESEARCH AND DEVELOPMENT...............................       11,161  ...........        9,161        4,161
AVIATION--ADV DEV...........................................        7,487       12,487       11,487       11,487
LOGISTICS AND ENGINEER EQUIPMENT--ADV DEV...................       17,478       17,478       19,978       18,978
ARTILLERY SYSTEMS--DEM/VAL..................................      313,166      313,166      313,166      317,166
AIRCRAFT AVIONICS...........................................        7,878        7,878       17,878       14,878
COMANCHE....................................................      367,823      391,823      349,208      367,823
EW DEVELOPMENT..............................................       85,989       90,989       90,589       86,989
ALL SOURCE ANALYSIS SYSTEM..................................       28,081       36,081       28,081       34,081
FOLLOW-ON TO TOW............................................       48,106       48,106        8,106  ...........
FAMILY OF HEAVY TACTICAL VEHICLES...........................  ...........        3,000        1,250        8,300
ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.....................       63,069       76,069       66,569       71,069
COMBAT FEEDING, CLOTHING, AND EQUIPMENT.....................       62,218       82,218       53,568       68,218
TERRAIN INFORMATION--ENG DEV................................        2,999        2,999        2,999        6,229
AIR DEFENSE COMMAND, CONTROL AND INTELLIGENCE...............        6,476        6,476        6,476       11,606
AUTOMATIC TEST EQUIPMENT DEVELOPMENT........................        7,030       12,030        7,030       10,030
TACTICAL EXPLOITATION OF NATIONAL CAPABILITIES..............       44,674       40,074       44,674       44,674
BRILLIANT ANTI-ARMOR SUBMUNITION (BAT)......................      134,858      128,858      134,858      128,858
AVIATION--ENG DEV...........................................        6,599       12,599       11,599       11,599
WEAPONS AND MUNITIONS--ENG DEV..............................       37,725       40,725       35,725       35,725
LANDMINE WARFARE/BARRIER--ENG DEV...........................       46,905       41,405       46,905       52,905
SENSE AND DESTROY ARMAMENT MISSILE--ENG DEV.................       20,813  ...........       33,813       31,813
RADAR DEVELOPMENT...........................................        2,786        2,786        6,786        6,786
FIREFINDER..................................................       19,822       19,822       20,722       20,722
DUAP COMMERCIAL OPERATIONS AND SUPPORT SAVINGS..............       33,600       19,700       23,600       21,600
ARTILLERY SYSTEMS--EMD......................................          100        2,600          100        1,100
THREAT SIMULATOR DEVELOPMENT................................       11,935       11,935       13,935       12,935
MAJOR T&E INVESTMENT........................................       40,284       40,284       32,142       37,284
ARMY KWAJALEIN ATOLL........................................      142,710      142,710      122,710      134,710
CONCEPTS EXPERIMENTATION PROGRAM............................       17,441       17,441       10,541       10,541
ARMY TECHNICAL TEST INSTRUMENTATION AND TARGETS.............       33,439       43,439       40,439       43,939
SURVIVABILITY/LETHALITY ANALYSIS............................       30,498       36,498       34,498       34,498
DOD HIGH ENERGY LASER TEST FACILITY.........................       15,022       28,022       23,022       24,022
DISTRIB/IMAGERY COMMON-GRD SYSTEMS..........................  ...........        8,912  ...........  ...........
MUNITIONS STANDARDIZATION, EFFECTIVENESS AND SAFETY.........        8,497       11,497       12,497       10,497
POLLUTION PREVENTION........................................        8,694        8,694       10,694       10,694
ENVIRONMENTAL COMPLIANCE....................................       44,116       47,116       51,116       49,116
MAINTENANCE AND REPAIR (RPM)--RDT&E.........................       49,233       49,233       80,233       80,233
MAINTENANCE HEADQUARTERS (RESEARCH AND DEVELOPMENT).........        4,683        4,683       22,683       22,683
MLRS PRODUCT IMPROVEMENT PROGRAM............................       20,244       32,744       20,244       25,244
AEROSTAT JOINT PROJECT OFFICE...............................      103,937  ...........       45,000       15,000
AIRBORNE RECONNAISSANCE SYSTEMS.............................  ...........        7,500  ...........  ...........
ADV FIELD ARTILLERY TACTICAL DATA SYSTEM....................       35,111       35,111       40,381       34,881
COMBAT VEHICLE IMPROVEMENT PROGRAMS.........................       94,756      101,856      108,256      104,756
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...............        2,948       11,948        6,948        6,948
DIGITIZATION................................................       45,007       45,007       48,007       47,007
FORCE TWENTY-ONE (XXI), WARFIGHTING RAPID ACQUISITION.......       99,528       64,528       69,528       27,168
TACTICAL SIMULATOR INTERFACE UNIT...........................  ...........  ...........  ...........        1,500
MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT PROGRAM.............       11,252       19,252       11,252       15,252
SPECIAL ARMY PROGRAM........................................        6,537        7,537       12,037        9,787
INFORMATION SYSTEMS SECURITY PROGRAM........................        7,433       12,433        7,433       11,433
DIGITAL INFORMATION TECHNOLOGY TEST BED.....................  ...........  ...........        6,600        3,500
TACTICAL UNMANNED AERIAL VEHICLES...........................       75,636       53,636       97,838       53,636
ADVANCED TECHNOLOGY.........................................  ...........  ...........        7,500        7,500
COMMON IMAGERY GROUND/SURFACE SYS...........................  ...........  ...........        8,912        8,912
END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.................       30,511       59,711       37,861       52,861
NATO JOINT START............................................        6,405        6,405  ...........        3,000
ADVISORY AND ASSISTANCE SERVICES............................  ...........      -20,000  ...........      -20,000
CONSEQUENCE MANAGEMENT......................................  ...........        15,00  ...........  ...........
CIVILIAN PRESONNEL UNDEREXECUTION...........................  ...........  ...........  ...........       -6,400
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES...................................      137,399      121,827      129,463      126,463
Program Growth..............................................            0      -15,572            0       -3,000
    Nutrition research......................................            0      [3,700]            0      [3,700]
    Scientific problems with military applications growth...            0            0       -7,936       -7,936
    University and Industry Research Centers (Note: The            48,459       45,138       45,138       45,138
     conferees direct that the reduction is to be allocated
     on a fair share basis).................................
AVIATION TECHNOLOGY.........................................       29,746       29,746       25,160       25,160
    Air mobility concept....................................            0            0       -1,923       -1,923
    Precision kill and nonlethal weapon integration and                 0            0       -2,663       -2,663
     manned/unmanned system technology......................
MISSILE TECHNOLOGY..........................................       25,180       24,880       30,680       30,380
    MLRS Smart Tactical Rocket..............................            0         -300            0         -300
    Acoustic detection......................................            0            0        1,500        1,500
    Scramjet missile technology.............................            0            0        3,000        2,000
    Counteractive protection................................            0            0        5,000        2,000
    Compact kinetic energy missile..........................            0            0       -4,000            0
    Solid state dye laser...................................            0            0      [3,000]      [2,000]
MODELING AND SIMULATION TECHNOLOGY..........................       27,981       22,531       24,153       21,653
    AAN applied research project............................            0       -5,450       -4,450       -5,450
    Standards development and testing.......................            0            0       -1,600       -1,600
    Advanced concepts and technology........................            0            0       -1,778       -1,778
    Photonics research......................................            0            0        4,000        2,500
COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY....................       40,107       30,107       44,362       39,562

[[Page H8703]]

 
    Next generation light truck.............................            0       -5,000            0       -2,500
    Future infantry and combat system.......................            0       -5,000       -5,245       -5,245
    Alternative vehicle propulsion system...................            0            0        2,500        1,700
    Robotic and manned ground systems enhancements..........            0            0        4,500        3,000
    Commercial automotive technology........................            0            0        2,500        2,500
BALLISTICS TECHNOLOGY.......................................       31,115       31,115       27,475       27,475
    Electric gun technology (Note: The conferees direct that            0            0       -3,640       -3,640
     the first priority for the available funding is ETC
     technology)............................................
WEAPONS AND MUNITIONS TECHNOLOGY............................       29,489       25,689       31,489       29,189
    SADARM sensor improvements..............................            0       -3,800            0       -1,300
    Future direct support weapon system (Note: The Army                 0            0        2,000        1,000
     shall use the additional funding to produce a 5,000
     pound version of the howitzer using the soft-recoil
     technology)............................................
ELECTRONICS AND ELECTRONIC DEVICES..........................       22,329       29,829       25,479       25,479
    MEMS--deep silicon etching process technology (Note:                0       07,500            0            0
     MEMS funds transferred to DARPA).......................
    Improved high rate alkaline cell........................            0            0          700          700
    Low cost reusable alkaline maganese-zinc................            0            0          900          900
    Rechargeable coin cells.................................            0            0          650          650
    Coin cell zinc air......................................            0            0          900          900
HUMAN FACTORS ENGINEERING TECHNOLOGY........................       13,369       21,169       18,169       16,619
    Medical Teams...........................................            0        4,800        4,800        3,000
    Life Support Trauma and Transport.......................            0        3,000            0            0
    Pharmacokinetics Research...............................            0            0            0          250
ENVIRONMENTAL QUALITY TECHNOLOGY............................       13,842       42,342       51,742       64,842
    Plasma Energy Pyrolysis System..........................            0        3,000        5,000        3,000
    Sustainable Green Manufacturing initiative..............            0        5,000            0        3,000
    Computer based land management..........................            0        3,000            0        2,500
    ARO--chemical and hazardous material disposal...........            0        2,000            0        1,500
    Commercialization Tech, to Lower Defense Costs                      0        7,500            0        6,000
     Initiatives............................................
    Electronic Equipment Demanufacturing....................            0        8,000            0        6,000
    MP4 Initiative (NDCEE)..................................            0            0       20,000       15,000
    Lightweight spectrophotometer system....................            0        [500]            0        [500]
    Small Business Development Center.......................            0            0        5,400        4,000
    Agriculturally based bioremediation.....................            0            0        4,000         4,00
    Radford environmental development and management system.            0            0        3,500        2,000
    Western Environmental Technology Office.................            0            0      [5,000]        4,000
MILITARY ENGINEERING TECHNOLOGY.............................       37,488       42,488       42,188       52,688
    Construction Engineering Research Labs--fuel cells......            0        5,000            0        3,000
    Cold regions research and development...................            0            0        1,700        1,200
    University partnering for operational support...........            0            0        3,000        3,000
    GEOSAR (Note: transferred from DARPA)...................            0            0            0        8,000
MEDICAL TECHNOLOGY..........................................       67,255      155,740       70,255      139,255
    Disaster Relief and Emergency Medical Services..........            0        9,985            0       10,000
    LSTAT...................................................            0            0        3,000        2,000
    Advanced Cancer Detection...............................            0        3,500            0        3,500
    Diagnostic and surgical breast imaging..................            0        3,000            0        2,000
    Minimally invasive......................................            0       15,000            0       11,500
    Musculoskeletal injuries................................            0        3,000            0        2,000
    Neurofibromatosis.......................................            0       15,000            0       11,500
    Neurotoxin..............................................            0       25,000            0       20,000
    Osteoporosis............................................            0        5,000            0        2,500
    Pain....................................................            0        1,000            0      [1,000]
    Portable cardiopulmonary bypass pum and oxygenator......            0        3,000            0        2,000
    Technology Roadmap......................................            0        2,000            0        2,000
    Teleradiology...........................................            0        3,000            0        3,000
MEDICAL ADVANCED TECHNOLOGY.................................       11,012      179,012       30,012      230,862
    Disaster Relief and Emergency Medical Services..........            0            0       10,000            0
    Assistive Technology....................................            0        8,000            0        6,000
    Diabetes................................................            0        9,000            0        4,500
    Digital x-ray...........................................            0        5,000            0        4,000
    National Medical Testbed................................            0       11,000            0        8,000
    Nutrition Research......................................            0            0        2,000            0
    Breast Cancer Peer Review...............................            0      135,000            0      135,000
    Intravenous membrane oxygenator.........................            0            0        1,000          850
    Prostate [Note: The conferees provide $50,000,000 for               0            0            0       50,000
     peer reviewed prostate research.]......................
    Prostate--Walter Reed [Note: the conferees provide                  0            0        2,000        7,500
     $7,500,000 to continue the intramural research effort
     conducted by the Walter Reed Center for Prostate
     Disease Research in the area of prostate cancer
     detection and treatment.]..............................
    Volume Angiocat.........................................            0            0        4,000        4,000
WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY...................       24,555       27,055       29,055       25,055
    MLRS Smart Tactical Rocket..............................            0       -5,000            0       -5,000
    ER fluid recoil system..................................            0        5,000            0        2,500
    Precision guided mortar munition........................            0            0        4,500        3,000
COMBAT VEHICLE AND AUTOMOTIVE ADVANCED TECHN................       54,435       54,435       49,535       61,735
    Aluminum metal matrix...................................            0            0        6,500        4,000
    Heavy truck propulsion systems..........................            0            0        3,600        2,500
    Geisel engine testing...................................            0            0        2,000          800
    Program reduction.......................................            0            0      -17,000            0
MISSILE AND ROCKET ADVANCED TECHNOLOGY......................       86,096       47,896       92,096       71,896
    EFOG....................................................            0      -35,700            0      -15,700
    MLRS Smart Tactical Rocket..............................            0       -2,500            0       -2,500
    Future missile technology integration...................            0            0        6,000        4,000
JOINT SERVICE SMALL ARMS PROGRAM............................        5,173       10,673        8,673        9,673
    Objective crew served weapon............................            0        3,500        3,500        3,500
    Objective individual combat weapon......................            0        2,000            0        1,000
NIGHT VISION ADVANCED TECHNOLOGY............................       23,960       23,960       26,460       27,460
    Millimeter wave technology (Note: funds are to be                   0            0        2,500        3,500
     allocated for low cost millimeter wave technology
     ($500,000) and passive millimeter wave camera
     technology ($3,000,000))...............................
JOINT TACTICAL RADIO........................................       15,600       15,600       15,600       10,100
    General Provision.......................................            0            0    [-10,981]       -5,500
ARMY MISSILE DEFENSE SYSTEMS INTEGRATION....................       12,240       21,240       38,240       37,740
    SSDC Battlelab..........................................            0        9,000       11,000        8,000
    Tactical High Energy Laser..............................            0            0       15,000       12,500
    Range Upgrades to support upper state flight experiments            0            0            0        5,000
     (Note: Senate provided funds under 0603401F)...........
ARMAMENT ENHANCEMENT INITIATIVE.............................       26,526       46,526       28,526       36,026
    Tank Extended Range Munition--Kinetic Energy............            0       20,000       10,000       17,500
    M829E3 development......................................            0            0       -8,000       -8,000
ARMY DATA DISTRIBUTION SYSTEM...............................       17,281        6,281        6,300       15,281
    Near Term/Digital Tactical Radio........................            0      -11,000            0       -2,000
    General Provision.......................................            0            0     [10,981]            0
ARTILLERY SYSTEMS--DEM/VAL..................................      313,166      313,166      313,166      317,166
    Alternative transmission................................            0            0            0        4,000
EW DEVELOPMENT..............................................       85,989       90,989       90,589       86,989
    ATIRCM/CMWS integration.................................            0        5,000        8,600        5,000
    Ground base common sensor...............................            0            0       -4,000       -4,000
FAMILIY OF HEAVY TACTICAL VEHICLES..........................            0        3,000        1,250        8,300
    Trailer development.....................................            0        3,000            0        2,500
    HETS highway use trailer................................            0            0        1,250        1,000
    Passenger Safety System for heavy tactical vehicles.....            0            0      [1,300]        1,000
    Forward repair system heavy (Note: Transferred from                 0            0            0        3,800
     0203761A)..............................................
ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.....................       63,069       76,069       66,569       71,069
    Grizzly--prototype (Note: Funds are to procure one                  0       13,000            0        6,000
     Grizzly simulator).....................................
    DSETS...................................................            0            0        3,500        2,000
COMBAT FEEDING, CLOTHING, AND EQUIPMENT.....................       62,218       82,218       53,568       68,218
    Transfer from OP, A.....................................            0       20,000            0       10,000
    Contract modification and engineering change proposals..            0            0       -4,000       -4,000

[[Page H8704]]

 
    Landwarrior product improvement.........................            0            0       -4,650            0
TERRAIN INFORMATION--ENG DEV................................        2,999        2,999        2,999        6,229
    Digitial topographic support system (Note: Transferred              0            0            0        3,230
     from 0203761A).........................................
AIR DEFENSE COMMAND, CONTROL AND INTELLIGENCE...............        6,476        6,476        6,476       11,606
    Air and missile defense planning (Note: Transferred from            0            0            0        5,130
     0203761A)..............................................
AUTOMATIC TEST EQUIPMENT DEVELOPMENT........................        7,030       12,030        7,030       10,030
    IFTE (Note: Funds are only for IFTE off-system, pre-                0        5,000            0        3,000
     planned product improvements and related test program
     set development).......................................
WEAPONS AND MUNITIONS--ENG DEV..............................       37,725       40,725       35,725       35,725
    Trajectory correctable munition (Note: Transferred to               0        3,000            0            0
     USMC)..................................................
    Motar fire control system contract savings..............            0            0       -2,000       -2,000
LANDMINE WARFARE/BARRIER--ENG DEV...........................       46,905       41,405       46,905       52,905
    Remote anti-armor mine system...........................            0       -5,500            0            0
    NSD-A program delays....................................            0            0      -12,000            0
    Landmine alternatives...................................            0            0       12,500            0
    NSD-A and mixed alternatives studies....................            0            0            0        6,000
MAJOR T&E INVESTMENT........................................       40,284       40,284       32,142       37,284
    Program reduction.......................................            0            0       -1,000            0
    USAKA (Kwajalein Atoll).................................            0            0       -7,142       -3,000
ARMY TECHNICAL TEST INSTRUMENTATION AND TARGETS.............       33,439       43,439       40,439       43,939
    Testing instrumentation and targets (WSMR)..............            0       10,000        7,000       10,000
    Phase III SBIR Characterization and Quantification of               0            0            0          500
     missile debris hazard to aircraft--WSMR................
DOD HIGH ENERGY LASER TEST FACILITY.........................       15,022       28,022       23,022       24,022
    Solid state laser.......................................            0        8,000        8,000        8,000
    Hybrid HMMWV............................................            0        5,000            0        1,000
MUNITIONS STANDARDIZATION, EFFECTIVENESS AND SAFETY.........        8,497       11,497       12,497       10,497
    Environmentally sound technologies for demilitarization             0        3,000            0            0
     of ammunition..........................................
    Lexington Blue Grass Army Depot Blast Chamber...........            0            0        2,000        1,000
    Anniston Army Depot Blast Chamber.......................            0            0        2,000        1,000
ENVIRONMENTAL COMPLIANCE....................................       44,116       47,116       51,116       49,116
    Climate change fuel cell................................            0            0        5,000        3,000
    Low emissions gas boiler demo...........................            0        3,000        2,000        2,000
MAINTENANCE AND REPAIR (RPM)--RDT&E.........................       49,233       49,233       80,233       80,233
    White Sands Missile Range...............................            0            0       20,800       20,800
    Aberdeen Proving Ground (PG)/Dugway PG/Yuma PG..........            0            0        9,200        9,200
    Cold Regions Research Lab...............................            0            0        1,000        1,000
MANAGEMENT HEADQUARTERS (R&D)...............................        4,683        4,683       22,683       22,683
    Akamai (Note: Off the additional funds $4,000,000 is                0            0       18,000       18,000
     only for Hyperspectral diagonistic imaging and
     $2,000,000 is only for remote access to medical
     specialists program)...................................
MLRS PRODUCT IMPROVEMENT PROGRAM............................       20,244       32,744       20,244       25,244
    Commercial component usage and joint service                        0        8,300            0            0
     communications.........................................
    HIMARS..................................................            0        6,000            0        5,000
    Improved launcher mechanical system.....................            0        3,200            0            0
    Guided MLRS MOU.........................................            0       -5,000            0            0
ADV FIELD ARTILLERY TACTICAL DATA SYSTEM....................       35,111       35,111       40,439       34,881
    Airspace deconfliction and technical fire support                   0            0       12,500        7,000
     (AFATDS) enhancement...................................
    AFATDS 2000 software development........................            0            0       -7,230       -7,230
COMBAT VEHICLE IMPROVEMENT PROGRAMS.........................       94,756      101,856      108,256      104,756
    M-1 Flat Panel Dispays (FED)............................            0        7,100        7,000        7,000
    DSESTS..................................................            0            0        6,500        3,000
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...............        2,948       11,948        6,948        6,948
    Fadec...................................................            0        5,000        2,000        2,000
    Variable Vane Pump (Note: Funding is only for helicopter            0        4,000        2,000        2,000
     secondary power unit application)......................
DIGITIZATION................................................       45,007       45,007       48,007       47,007
    Digitization research at Ft. Hood.......................            0            0        3,000        2,000
    Digital intelligence situation mapboard.................            0            0      [2,000]      [2,000]
FORCE TWENTY-ONE (XXI), WARFIGHTING RAPID ACQUISITION.......       99,528       64,528       69,528       27,168
    Program reduction.......................................            0      -35,000      -30,000      -35,000
    Air and missile defense planning (Note: Transferred to              0            0            0       -5,130
     0604741A)..............................................
    Analysis control team (Note: Transferred to OPA P-67)...            0            0            0       -6,750
    Grenadier Brat (Note: Transferred to OPA P-75)..........            0            0            0       -4,400
    High speed multiplexer (Note: Transferred to OPA P-44)..            0            0            0       -2,750
    Digital topographic support system (Note: Transferred to            0            0            0       -3,230
     0604716A)..............................................
    Tactical simulation (Note: Transferred to new program               0            0            0       -1,500
     element)...............................................
    Forward repair system (Note: Transferred to 0604622A)...            0            0            0       -3,800
    CCTT (Note: The conferees deny funding for this                     0            0            0       -7,300
     initiative)............................................
    Global combat support system (Note: The conferees deny              0            0            0       -2,500
     funding for this initiative)...........................
TACTICAL SIMULATION INTERFACE UNIT (Note: Transferred from              0            0            0        1,500
 0203761A)..................................................
END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.................       30,511       59,711       37,861       52,861
    Munitions manufacturing technology......................            0       13,200        5,000       10,000
    Instrumented factory for gears..........................            0        4,000        4,000        4,000
    Totally integrated munitions enterprise.................            0        9,000            0        7,000
    Composite armor vehicle technology......................            0        1,000            0          500
    Center for optics manufacturing.........................            0        2,000            0        1,000
    Undefined projects......................................            0            0       -1,650       -1,650
    Electronic circuit board manufacturing development                  0            0      [2,000]        1,500
     center.................................................
ALTERNATIVE VEHICLE PROPULSION TECHNOLOGIES.................            0     [10,000]            0            0
CIVILIAN PERSONNEL UNDER EXECUTION..........................            0            0            0       -6,400
----------------------------------------------------------------------------------------------------------------

                     aerostat joint project office

       The conferees have provided $15,000,000 for the Aerostat 
     program to participate in joint demonstrations of 
     surveillance technologies and to continue development 
     efforts. Within the available funds, the conferees urge the 
     Defense Department to investigate issues associated with 
     building and demonstrating a deployable mobile large 
     aerostate system platform.


                   landmine warfare/barrier--eng dev

       The conferees understand that the Department has launched a 
     search for alternatives to anti-personnel landmines with the 
     goal of fielding such alternatives as soon as practicable. 
     The conferees support this effort relating to the 
     identification, adaption, modification, research, and 
     development of existing and new technologies and concepts 
     that are militarily equivalent cost effective and safe. These 
     efforts should result in: (1) a combat capability that is 
     equivalent to the combat capability provided by non-self 
     destructing anti-personnel landmines; (2) a combat capability 
     that is equivalent to the combat capability provided by anti-
     personnel (AP) submunitions used in mixed anti-tank mine 
     systems; or (3) a combat capability to replace the entire 
     mixed munitions.
       The conference recommendation provides a total of 
     $32,200,000 as follows: $17,200,000 ($12,500,000 in RDT&E, 
     Army and $4,700,000 in RDT&E, Defense-Wide) for the Army's 
     current Non-Self Destruct Alternatives (NSD-A); $2,000,000 
     for studies of NSD-4 designs, beyond man-in-the-loop 
     technology; and $4,000,000 to research, identify and adapt 
     technology and concepts that could replace capabilities now 
     provided by mixed system or the AP submunitions in mixed 
     systems. The Secretary of Defense shall submit a report to 
     the congressional defense committees not later than April 1, 
     2000 and April 1, 2001, describing progress made in 
     identifying and fielding such alternative, and future plans 
     in this effort.
       The conferees direct that the Secretary of Defense obtain 
     the recommendations of two appropriate scientific 
     organizations regarding concepts that would provide 
     comparable combat capabilities to current anti-personnel 
     landmines and anti-personnel landmines used in mixed systems.


                army missile defense systems integration

       The conferees are aware of the High Accuracy Guidance (HAG) 
     system and its potential to improve the capability of the 
     seeker found in certain missile defense interceptors. 
     Therefore, the conferees strongly urge the Department to 
     conduct additional tests of the HAG system.


                     ANTI-ARMOR WEAPONS MASTER PLAN

       The conferees agree with the House direction with regard to 
     submission of an Anti-Tank Weapon Master Plan and further 
     direct that the scope of the report be expanded to include 
     all DoD weapon systems with an anti-armor capability.


  Ultra-Light Steel Based High mobility Multi-purpose Wheeled Vehicle 
                                (HMMWV)

       The conferees direct the Secretary of the Army to submit a 
     report to the congressional defense committees with the 
     fiscal

[[Page H8705]]

     year 2000 budget request assessing the potential benefits of 
     integrating advanced commercially based tactical truck 
     platforms incorporating leading edge ultra-steel concepts 
     into its HMMWV fleet replacement plan.


                  Medical Research Program Management

       The conferees commend the Army for organizing outstanding 
     medical research initiatives in various fields of study that 
     have received high marks from independent review panels and 
     from various advocacy groups. The conferees not especially 
     the 1997 review of the Army's breast cancer research program 
     by the Institute of Medicine of the National Research 
     Council. This review concluded that the Army's program 
     ``fills a unique niche among public and private funding 
     sources for cancer research . . . and is a promising vehicle 
     for forging new ideas and scientific breakthroughs in the 
     nation's fight against breast cancer.'' The conferees have 
     received similar reports about the other medical research 
     programs managed by the Army. The conferees expect the Army 
     to continue its emphasis on coordinating and integrating its 
     medical research programs with those of the National 
     Institutes of Health to avoid duplication and to accelerate 
     promising avenues of treatment. In setting annual research 
     priorities, the Army should consider ways to maximize 
     involvement from responsible advocacy and survivor groups, 
     especially in the Prostate research program. The conferees 
     also urge the Army to consider ways to lengthen the terms of 
     peer review group members for the Neurofibromatosis program 
     and other smaller programs to promote consistency of guidance 
     and direction.


                           Metals Remediation

       The conferees urge the Department to provide up to 
     $2,750,000 for a metals remediation demonstration project at 
     Wheeler Army Air Field. This effort would demonstrate the 
     technology in the fragile Pacific ecosystems and potentially 
     reduce infrastructure and environmental cleanup costs.


                           Diabetes Research

       The conference agreement includes $4,500,000 to continue 
     the successful diabetes research program currently underway. 
     The conferees urge the Department to work to include the 
     activities identified in House Report 105-591.

            Research, Development, Test and Evaluation, Navy

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
      RESEARCH DEVELOPMENT TEST & EVAL NAVY
IN-HOUSE LABORATORY INDEPENDENT RESEARCH........          14,734          14,248          14,734          14,734
DEFENSE RESEARCH SCIENCES.......................         347,945         324,495         347,945         347,945
AIR AND SURFACE LAUNCHED WEAPONS TECHNOLOGY.....          37,140          41,140          40,140          41,140
SHIP, SUBMARINE & LOGISTICS TECHNOLOGY..........          43,177          45,177          46,177          56,677
AIRCRAFT TECHNOLOGY.............................          23,229          27,029          30,729          29,229
MARINE CORPS LANDING FORCE TECHNOLOGY...........          12,132          13,632          12,132          13,132
HISTORICALLY BLACK COLLEGES AND UNIVERSITIES....           4,699           6,699           4,699           6,699
COMMUNICATIONS, COMMAND AND CONTROL,                      65,033          60,033          68,033          64,033
 INTELLIGENCE...................................
HUMAN SYSTEMS TECHNOLOGY........................          29,722          31,722          29,722          31,722
MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY..          77,617          80,617          93,117          88,117
ELECTRONIC WARFARE TECHNOLOGY...................          23,849          22,849          23,849          22,849
UNDERSEA WARFARE SURVEILLANCE TECHNOLOGY........          50,619          51,119          50,619          51,119
OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY........          56,722          70,222          57,472          69,222
UNDERSEA WARFARE WEAPONRY TECHNOLOGY............          34,856          36,856          44,356          40,856
DUAL USE APPLICATIONS PROGRAM...................          20,000          20,000          10,000          10,000
AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY.....          48,143          46,143          43,143          48,143
PRECISION STRIKE AND AIR DEFENSE TECHNOLOGY.....          58,306          62,306          54,406          54,406
SURFACE SHIP & SUBMARINE HM&E ADVANCED                    39,264          47,264          46,264          51,264
 TECHNOLOGY.....................................
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION            41,931          51,931          52,931          56,931
 (ATD)..........................................
MEDICAL DEVELOPMENT.............................          18,728          69,028          20,728          68,728
MANPOWER, PERSONNEL AND TRAINING ADV TECH DEV...          21,042          26,042          23,042          26,542
ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED              20,919          20,919          26,919          22,919
 TECHNOLOG......................................
UNDERSEA WARFARE ADVANCED TECHNOLOGY............          56,827          56,827          60,027          58,827
MINE AND EXPEDITIONARY WARFARE ADVANCED                   41,710          41,710          42,710          42,710
 TECHNOLOGY.....................................
ADVANCED TECHNOLOGY TRANSITION..................          74,392          59,392          84,392          73,892
C3 ADVANCED TECHNOLOGY..........................          22,294          28,294          29,794          40,294
MARITIME TECHNOLOGY.............................  ..............  ..............          20,000          19,000
AIR/OCEAN TACTICAL APPLICATIONS.................          28,824          25,824          28,824          25,824
AVIATION SURVIVABILITY..........................           8,164          13,164           8,164          11,164
ASW SYSTEMS DEVELOPMENT.........................          20,184          35,184          20,184          26,184
ADVANCED COMBAT SYSTEMS TECHNOLOGY..............           8,653           6,653           8,653           6,653
ADVANCED SUBMARINE COMBAT SYSTEMS DEVELOPMENT...          68,402          75,802          68,402          73,402
SURFACE SHIP TORPEDO DEFENSE....................  ..............           6,000  ..............           5,000
CARRIER SYSTEMS DEVELOPMENT.....................         154,307          64,307          74,307          74,307
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT..........          27,725          28,725          24,725          25,725
SHIP CONCEPT ADVANCED DESIGN....................          14,900          19,900          14,900          14,900
SHIP PRELIMINARY DESIGN & FEASIBILITY STUDIES...          42,668          42,668           8,000          44,596
ADVANCED SURFACE MACHINERY SYSTEMS..............          58,419          34,919          63,419          58,419
CONVENTIONAL MUNITIONS..........................          39,775          42,775          39,775          40,775
MARINE CORPS ASSAULT VEHICLES...................         104,822         108,822         104,822         104,822
MARINE CORPS MINE/COUNTERMEASURES SYSTEMS--ADV             1,958           2,958           1,958           1,958
 DEV............................................
MARINE CORPS GROUND COMBAT/SUPPORT SYSTEM.......          37,133          39,633          50,633          53,133
COOPERATIVE ENGAGEMENT..........................         131,623         186,123         141,623         196,123
ENVIRONMENTAL PROTECTION........................          59,438          73,138          61,938          74,438
NAVY LOGISTICS PRODUCTIVITY.....................  ..............           3,000  ..............           3,000
RETRACT MAPLE...................................         117,186         115,686         117,186         115,686
RETRACT ELM.....................................          11,665          22,165          11,665          19,665
NATO RESEARCH AND DEVELOPMENT...................          11,004  ..............           9,004           9,004
LAND ATTACK TECHNOLOGY..........................         110,104         103,104          92,404         105,604
JOINT STRIKE FIGHTER (JSF)--DEM/VAL.............         463,402         463,402         478,402         470,902
NONLETHAL WEAPONS--DEM/VAL......................          22,592          25,092          35,892          34,592
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM                9,827           9,827           9,827           3,000
 (HDSTDS).......................................
SPACE AND ELECTRONIC WARFARE (SEW) ARCHITECTURE/          17,955          17,955          20,955          19,955
 ENGINE.........................................
OTHER HELO DEVELOPMENT..........................         231,120         231,620         253,120         262,120
AV-8B AIRCRAFT--ENG DEV.........................          13,787          50,387          13,787          40,587
S-3 WEAPON SYSTEM IMPROVEMENT...................          31,469           4,376          26,469           4,376
H-1 UPGRADES....................................          98,542         122,542         121,942         121,942
ACOUSTIC SEARCH SENSORS.........................          29,637          31,637          29,637          30,637
AIR CREW SYSTEMS DEVELOPMENT....................           9,454          12,454           9,454          11,954
EW DEVELOPMENT..................................         128,586         137,886         138,586         137,886
SURFACE COMBATANT COMBAT SYSTEM ENGINEERING.....         132,561         169,061         134,561         164,061
STANDARD MISSILE IMPROVEMENTS...................           1,320           1,320           6,320          11,320
AIRBORNE MCM....................................          24,967          30,967          26,967          28,967
SSN-688 AND TRIDENT MODERNIZATION...............          50,300          60,300          65,300          62,300
AIR CONTROL.....................................           4,198           4,198           8,198           7,698
NEW DESIGN SSN..................................         218,816         240,816         231,816         235,816
SSN-21 DEVELOPMENTS.............................          27,456          22,456          27,456          22,456
SUBMARINE TACTICAL WARFARE SYSTEM...............          28,573          28,573          30,573          28,573
SHIP CONTRACT DESIGN/ LIVE FIRE T&E.............         133,645          60,845         137,645         130,717
NAVY TACTICAL COMPUTER RESOURCES................           8,249          44,749           8,249          28,249
NAVY ENERGY PROGRAM.............................           5,544           5,544           3,544           3,544
JOINT STANDOFF WEAPON SYSTEMS...................          73,022           8,022          73,022          48,022
LOW COST STAND-OFF WEAPON.......................  ..............          10,000  ..............  ..............
SHIP SELF DEFENSE--EMD..........................         148,165         148,165         156,665         156,665
MEDICAL DEVELOPMENT.............................           4,321           9,721           5,321           5,821
DISTRIBUTED SURVEILLANCE SYSTEM.................          42,017          55,417          42,017          50,017
COMMERCIAL OPERATIONS AND SUPPORT SAVINGS                 28,500          14,600          18,500          16,500
 INITIATIVE.....................................
TARGET SYSTEMS DEVELOPMENT......................          54,800          54,800          50,800          54,800
MAJOR T&E INVESTMENT............................          17,281          23,281          17,281          21,281
STUDIES AND ANALYSIS SUPPORT-NAVY...............          10,132           6,132          10,132           6,132
TECHNICAL INFORMATION SERVICES..................           8,513           8,513           6,013           6,013
DISTRIB/IMAGERY COMMON GRD SYSTEMS..............  ..............           4,966  ..............  ..............

[[Page H8706]]

 
RDT&E SCIENCE AND TECHNOLOGY MANAGEMENT.........          64,455          54,455          64,455          64,455
RDT&E SHIP AND AIRCRAFT SUPPORT.................          57,421          55,421          57,421          55,421
TEST AND EVALUATION SUPPORT.....................         260,601         256,801         245,601         255,801
SEW SURVEILLANCE/RECONAISSANCE SUPPORT..........          13,185          15,185          17,185          16,185
AIRBORNE RECONNAISSANCE SYS.....................  ..............          16,448  ..............  ..............
MARINE CORPS PROGRAM WIDE SUPPORT...............           7,132          14,632           7,132          13,632
SSBN SECURITY TECHNOLOGY PROGRAM................          33,588          28,588          33,588          31,088
F/A-18 SQUADRONS................................         357,214         288,805         336,314         308,805
TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER             66,727         165,300          66,727         166,300
 (TMPC).........................................
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT.......          28,390          32,490          35,390          36,890
HARM IMPROVEMENT................................          18,921          33,921          18,921          30,921
SURFACE ASW COMBAT SYSTEM INTEGRATION...........           9,390           9,390           9,390          13,390
AVIATION IMPROVEMENTS...........................          64,956          61,956          68,956          63,956
NAVY SCIENCE ASSISTANCE PROGRAM.................  ..............  ..............          12,000          12,000
MARINE CORPS COMMUNICATIONS SYSTEMS.............          50,594          56,390          50,594          55,390
MARINE CORPS GROUND COMBAT/SUPPORTING ARMS                14,699          14,699          17,699          18,699
 SYSTEMS........................................
TACTICAL UAV....................................  ..............          55,200  ..............          51,192
TACTICAL UAV (MC)...............................  ..............           8,000  ..............           6,000
VERTICAL TAKEOFF LANDING........................  ..............  ..............          10,000  ..............
ADVANCED SENSORS/TECH...........................  ..............  ..............           8,448          16,448
COMMON IMAGERY GROUND/FURFACE SYS...............  ..............  ..............           4,966           4,966
MANNED RECONNAISSANCE SYSTEMS...................             342          42,751             342          30,342
INTEGRATED BROADCAST SERVICE....................  ..............          14,580  ..............          14,580
DEPOT MAINTENANCE (NON-IF)......................          69,967  ..............          49,967          69,967
INDUSTRIAL PREPAREDNESS.........................          59,060          69,060          59,060          69,060
CLASSIFIED PROGRAMS.............................         521,541         542,041         528,241         531,741
ADVISORY AND ASSISTANCE SERVICES................  ..............         -50,000  ..............         -50,000
CIVILIAN PERSONNEL UNDEREXECUTION...............  ..............  ..............  ..............          -5,000
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                              Budget        House        Senate      Conference
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES................................      347,945      324,495       347,945       347,945
    Budget growth........................................            0      -23,450             0             0
    Marine mammal research...............................            0            0          (500)         (500)
      (Note: Other than marine mammal research, Defense
       Reserch Sciences funds may not be diverted to or
       augmented via below-threshold reprogramming for
       projects not requested in the fiscal year 1999
       budget)
SHIPS, SUBMARINE & LOGISTICS TECHNOLOGY..................       43,177       45,177        46,177        56,677
    Ship machinery component level intelligent                       0        2,000             0         1,500
     distributed control systems for AUVs................
    Stainless steel double hull..........................            0            0         3,000         2,000
    High precision fabrication technology for large steel            0            0             0         5,000
     structural components requiring compound curvatures
     and precise dimensional control to be used in
     advanced ship designs...............................
    Bioenvironmental hazards.............................            0            0             0         5,000
      (Note: Bioenvironmental hazards was funded in a
       different line in the House bill)
AIRCRAFT TECHNOLOGY......................................       23,229       27,029        30,729        29,229
    Vectored thrust ducted propeller.....................            0        2,000         7,500         5,000
    Advanced 1000-plus line resolution charged coupled               0        1,800             0         1,000
     device II night vision camera.......................
COMMUNICATIONS, COMMAND AND CONTROL, INTELLIGENCE........       65,033       60,033        68,033        64,033
    Hybrid wireless fiber optic communications...........            0        1,000             0         1,000
    Infrared search and track............................            0       -1,000             0             0
    General reduction....................................            0       -5,000             0        -5,000
    USEA radar...........................................            0            0        11,000        11,000
    Strategic sustainment program........................            0            0        -8,000        -8,000
MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY...........       77,617       80,617        93,117        88,117
    Advanced energy devices..............................            0            0         1,000             0
    Nanoscale materials and devices......................            0            0         1,000             0
    Advanced materials intelligent processing center.....            0            0         5,000         3,000
    High temperature superconducting ship propulsion/                0            0         2,000         2,000
     auxillary systems...................................
    Superconducting waveform generator...................            0        3,000             0         1,000
    Materials micronization technology...................            0            0             0         4,000
    Carbon-carbon materials for reentry bodies...........            0        1,000         2,500         1,500
    Silicon carbide semiconductor substrates.............            0        3,500         2,500         3,500
    Ultra-high thermal conductivity fibers...............            0        2,500         1,500         2,500
    Terfenol-D...........................................            0       (1,800)            0             0
    General reduction....................................            0       -7,000             0        -7,000
      (Note: Funds for materials micronization technology
       are only to initiate a program to demonstrate
       newly developed technology to micronize coal and
       other particles to sizes approaching five microns
       to reduce the cost precursors for composite
       materials, fuel cell membranes, filtration
       technology, diesel fuel, and other materials and
       processes important to national defense)
OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY.................       56,722       70,222        57,472        69,222
    Autonomous underwater vehicle and sensor development.            0       10,000             0        10,000
    Naval Surface Warfare Center South Florida test                  0        2,750             0         2,000
     facility............................................
    PM-10 clean air study................................            0          750           750           500
UNDERSEA WARFARE WEAPONTRY TECHNOLOGY....................       34,856       36,856        44,356        40,856
    Micro electromechanical technology...................            0        2,000             0         1,000
    Lithium carbon monoflouride batteries for mine                   0            0           500             0
     applications........................................
    Computational engineering research...................            0            0         3,000         3,000
    Half-length torpedo..................................            0            0         3,000         2,000
    6.25 anti-torpedo torpedo............................            0            0         3,000             0
DUAL USE APPLICATIONS PROGRAM............................       20,000       20,000       -10,000       -10,000
    National Technology Alliance Program.................            0      (15,000)            0             0
    Program decrease.....................................            0            0       -10,000       -10,000
AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY..............       48,143       46,143        43,143        48,143
    VECTOR...............................................            0       -7,000        -5,000        -2,000
    DP-2.................................................            0        5,000             0         2,000
PRECISION STRIKE AND AIR DEFENSE TECHNOLOGY..............       58,306       62,306        54,406        54,406
    Mobile off-shore basing..............................            0        5,000         5,000         5,000
    General reduction....................................            0       -1,000             0             0
    Fleet ATDs...........................................            0            0        -8,900        -8,900
      (Note: Concerning mobile off-shore basing, the
       conferees do not agree to House language but
       direct that $1,000,000 of the $5,000,000 provided
       in this Act be provided to the OSD Office of
       Acquisition and Technology (PE 0603728D) only for
       joint community MOB assessments and studies)
SURFACE SHIP & SUBMARINE HM&E ADVANCED TECHNOLOGY........       39,264       47,264        46,264        51,264
    Power electronic building blocks.....................            0        6,000         3,000         6,000
    Power node converters................................            0        2,000             0         2,000
    Composite helicopter hangar..........................            0            0         5,000         5,000
    Advanced electronic systems..........................            0            0        -1,000        -1,000
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD).....       41,931       51,931        52,931        56,931
    BURRO project........................................            0        5,000         5,000         5,000
    SMAW product improvement program.....................            0        5,000             0         5,000
    Warfighting lab Modeling and Simulation..............            0            0         5,000         4,000
    K-band training and test instrumentation system......            0            0         1,000         1,000
MEDICAL DEVELOPMENT......................................       18,728       69,028        20,728        68,728
    Bone marrow donor program............................            0       34,000             0        34,000
    Naval blood research laboratory......................            0        3,000             0         1,500
    Dental research......................................            0        4,000             0         3,000
    National Biodynamics Laboratory......................            0        1,800             0         1,800
    Medical readiness telemedicine initiative............            0        4,500            0,         3,000
    Rural health.........................................            0        3,000             0         3,000
    Freeze dried blood...................................            0            0         1,000           850
    Directly transfusable cryoprotected blood products...            0            0         1,000           850

[[Page H8707]]

 
    Center for disaster management (Note: $1,000,000 is              0            0             0         1,000
     only for the Center for Disaster Management and
     Humanitarian Assistance)............................
    Telemedicine (Note: $1,000,000 is only for a                     0            0             0         1,000
     university/community hospital telemedicine/
     telehealth consortium)..............................
MANPOWER, PERSONNEL AND TRAINING ADVANCED TECH                  21,042       26,042        23,042        26,542
 DEVELOPMENT.............................................
    Advanced distributed learning........................            0        5,000             0         4,500
    Integrated manufacturing studies.....................            0            0         2,000         1,000
ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECHNOLOGY..       20,919       20,919        26,919        22,919
    Asbestos removal.....................................            0            0         4,000             0
    Visualization of technical information...............            0            0         2,000         2,000
UNDERSEA WARFARE ADVANCED TECHNOLOGY.....................       56,827       56,827        60,027        58,827
    Terfenol-D...........................................            0            0         3,200         2,000
      (Note: The conferees direct that fiscal year 1998
       funds appropriated only for Terfenol-D be moved to
       this program for execution)
ADVANCED TECHNOLOGY TRANSITION...........................       74,392       59,392        84,392        73,892
    General reduction....................................            0      -15,000             0       -10,000
    SLICE trailer........................................            0            0        10,000         9,500
C3 ADVANCED TECHNOLOGY...................................       22,294       28,294        29,794        40,294
    Dominant battlespace command.........................            0        6,000             0         3,000
    National Technology Alliance Program.................            0            0         7,500        15,000
      (Note: The National Technology Alliance consists of
       the National Information Display Laboratory, the
       National Center for Applied Technologies, and the
       National Media Laboratory)
MARITIME TECHNOLOGY......................................            0            0        20,000        19,000
    Transfer from DARPA..................................            0            0        15,000        15,000
    Program increase.....................................            0            0         5,000         4,000
      (Note: The conferees direct the Secretary of the
       Navy to provide $2,400,000 to the Maritime
       Administration to complete testing of the
       potential interim solution to remediate potential
       damage resulting from oil spills from existing
       tank vessels such as the ``American Underpressure
       System.'' The conferees believe that this system
       may have significant defense applications and may
       also provide environmental safeguards for tank
       vessels.)
AVIATION SURVIVABILITY...................................        8,164       13,164         8,164        11,164
    Escape system dynamic flow test facility.............            0        3,000             0         1,000
    Helicopter aircrew integrated life support system....            0        2,000             0         2,000
ASW SYSTEMS DEVELOPMENT..................................       20,184       35,184        20,184        26,184
    Beartrap acoustic processor for SH-60B LAMPS                     0        9,000             0         5,000
     helicopter..........................................
      (Note: Conferees do not agree to House language
       that these funds be solely for RAINBOW processors)
    Beartrap advanced ASW technologies...................            0        3,000             0             0
    SSQ-62 sonobuoy at-sea performance evaluation........            0        3,000             0         1,000
ADVANCED COMBAT SYSTEMS TECHNOLOGY.......................        8,653        6,653         8,653         6,653
    General reduction....................................            0       -2,000             0        -2,000
    Visualization architecture and technology............            0            0        (2,000)            0
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT...................       27,725       28,725        24,725        25,725
    150 Kilowatt static frequency converters.............            0        1,000             0         1,000
    Shipboard auxiliary systems development..............            0            0        -3,000        -3,000
SHIP PRELIMINARY DESIGN & FEASIBILITY STUDIES............       42,668       42,668         8,000        44,596
    SSGN study...........................................            0            0         1,000         1,000
    CV feasibility studies...............................            0            0       -35,688        -5,000
    CVX red team.........................................            0            0        (5,000)            0
    ADC(X)...............................................            0            0             0             0
      (Note: Funds for ADC(X) were requested in the
       budget and have been transferred to this line for
       execution based on Navy assessment of program
       maturity)
ADVANCED SURFACE MACHINERY SYSTEMS.......................       58,419       34,919        63,419        58,419
    Intercooled recuperated gas turbine engine...........            0      -23,500         5,000             0
MARINE CORPS GROUND COMBAT/SUPPORT SYSTEM................       37,133       39.633        50,633        53,133
    Lightweight howitzer.................................            0        2,500             0         7,000
      (Note: Of the amount provided for lightweight
       howitzer, $4,500,000 is transferred from
       Procurement, Marine Corps)
    Trajectory corrected munitions.......................            0            0         7,500         5,000
    SMAW follow-on.......................................            0            0         4,000         3,000
    Predator.............................................            0            0         2,000         1,000
COOPERATIVE ENGAGEMENT...................................      131,623      186,123       141,623       196,123
    Aegis integration....................................            0       -9,500             0        -9,500
    LAMPS data link......................................            0       -3,000             0        -3,000
    Battlegroup developmental-and operational testing....            0       20,000             0        20,000
    Design agent transitioin.............................            0       15,000             0        15,000
    Large network capability.............................            0       13,000             0        13,000
    Low cost common equipment set........................            0       10,000             0        10,000
    Land based network...................................            0        9,000             0         9,000
    CEC/SBIRS integration................................            0            0        10,000        10,000
ENVIRONMENTAL PROTECTION.................................       59,438       73,138        61,938        74,438
    Aviation depot maintenance technology................            0        2,700             0         2,000
    Resource recovery technology center..................            0        7,000             0         7,000
    Asbestos removal.....................................            0        4,000             0         4,000
    Molten salt oxidation technology.....................            0            0         2,500         2,000
NATO RESEARCH AND DEVELOPMENT............................       11,004            0         9,004         9,004
    VECTOR...............................................            0       -5,000             0             0
    General reduction....................................            0       -6,004        -2,000        -2,000
      (Note: Within the amount provided for NATO R&D, is
       $1,000,000 is only for international cooperative
       R&D applying Norwegian mine clearing technology)
LAND ATTACK TECHNOLOGY...................................      110,104      103,104        92,404       105,604
    Vertical gun system..................................            0       -7,000       -10,000       -10,000
    Surface fire support integration.....................            0            0        -7,700        -2,500
    Extended range guided munition.......................            0            0             0         8,000
      (Note: ERGM was funded in the Procurement of
       Ammunition, Navy account in the Senate bill)
NONLETHAL WEAPONS--DEM/VAL...............................       22,592       25,092        35,892        34,592
    Joint non-lethal directorate human effects panel.....            0        2,500             0         2,000
    Accelerate non-lethal technologies...................            0            0         6,300         5,000
    Non-lethal tactical denial system....................            0            0         7,000         5,000
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM (HDBTDS).....        9,827        9,827         9,827         3,000
    Program reduction....................................            0            0        (9,827)       -9,827
    Analysis of alternative..............................            0            0             0         3,000
OTHER HELO DEVELOPMENT...................................      231,120      231,620       253,120       262,120
    LAMPS data link (transfer from CEC)..................            0        3,000             0         3,000
    CH-60 mine countermeasures testing...................            0       15,000             0        12,000
    Naval Air Warfare Center aircraft division ship                  0        1,000             0         1,000
     ground station......................................
    Advanced low frequency sonar.........................            0      -18,500             0             0
    SH-60 LAMPS COTS acoustic/radar data processor.......            0            0        15,000        10,000
    Parametric airborne dipping sonar....................            0            0         8,000         6,000
    Helicopter development CDR...........................            0            0        -1,000        -1,000
    AV-8B AIRCRAFT--ENG DEV..............................       13,787       50,387        13,787        40,587
    Open systems core avionics...........................            0       31,500             0        26,800
    Landing signal officer automated shipboard operating             0        5,100             0             0
     bulletin............................................
S-3 WEAPON SYSTEM IMPROVEMENT............................       31,469        4,376        26,469         4,376
    Common support aircraft..............................            0      -27,093        -5,000       -27,093
    Common support aircraft, floor amendment.............            0            0        (8,000)            0
SURFACE COMBATANT COMBAT SYSTEM ENGINEERING..............      132,561      169,061       134,561       164,061
    CEC integration (transfer from CEC)..................            0        9,500             0         9,500
    Aegis baseline software development..................            0       27,000             0        20,000
    High dynamic range, low-cost, towed array receiver/              0       (9,000)            0             0
     beamformer sonar....................................
    Labs and field activities monitoring efforts.........            0            0        -3,000        -3,000
    DDG-51 composite director room.......................            0            0         5,000         5,000
STANDARD MISSILE IMPROVEMENTS............................        1,320        1,320         6,320        11,320
    ADSAM demonstration..................................            0            0         5,000         5,000
    Optical correlators..................................            0            0             0         5,000
AIRBORNE MCM.............................................       24,967       30,967        29,967        28,967
    CH-60 borne autonomous mine destruction..............            0        2,000         2,000         2,000
    SWIMS acoustic projector.............................            0        4,000             0         2,000
NEW DESIGN SSN...........................................      218,816      240,816       231,816       235,816
    Submarine technology insertion.......................            0       10,000             0         5,000
    Glass-reinforced plastic/rubber sandwich sonar domes.            0        7,000         7,000         7,000

[[Page H8708]]

 
    Non-propulsion electronics...........................            0        5,000         6,000         5,000
SHIP CONTRACT DESIGN/LIVE FIRE T&E.......................      133,645       60,845       137,645       130,717
    DD-21................................................            0      -68,872             0             0
    ADC(X)...............................................            0       -5,928             0        -5,928
    Smart propulsor product model........................            0        2,000         4,000         3,000
NAVY TACTICAL COMPUTER RESOURCES.........................        8,249       44,749         8,249        28,249
    UYQ-70 display improvements..........................            0       17,000             0        15,000
    Virtual prototyping of electronic circuits...........            0       14,500             0             0
    Computer aided dead reckoning tracer.................            0        5,000             0         5,000
SHIPS SELF DEFENSE--EMD..................................      148,165      148,165       156,665       156,665
    Infrared search and track............................            0            0         6,500         6,500
    NULKA................................................            0            0         2,000         2,000
      (Note: Funds for infrared search and track are only
       to develop a production-representative IRST
       system, to support testing coincident with the
       multi-function radar system, whose development and
       testing must include deployment in a permanent
       installation in an active Navy warship)
MEDICAL DEVELOPMENT......................................        4,321        9,721         5,321         5,821
    Filtration materials with high-flow biocide                      0        2,000             0        (2,000)
     characteristics.....................................
    Voice instructional device modifications.............            0        3,400         1,000         1,500
DISTRIBUTED SURVEILLANCE SYSTEM..........................       42,017       55,417        42,017        50,017
    All-optical deployable system........................            0        6,700             0         4,000
    ADS automation and data fusion.......................            0        6,700             0         4,000
TEST AND EVALUATION SUPPORT..............................      260,601      256,801       245,601       255,801
    General reduction....................................            0       -5,800       -15,000        -5,800
    Man-overboard indicator..............................            0        2,000             0         1,000
SEW SURVEILLANCE/RECONNAISSANCE SUPPORT..................       13,185       15,185        17,185        16,185
    COTS visualization software and database servers.....            0        2,000             0         1,000
    Global C4ISR visualization...........................            0            0         4,000         2,000
MARINE CORPS PROGRAM WIDE SUPPORT........................        7,132       14,632         7,132        13,632
    Interim biological agent detection system, phase III.            0        4,000             0         3,500
    Probable cause detection system......................            0        3,500             0         3,000
F/A-18 SQUADRONS.........................................      357,214      288,805       336,314       308,805
    Superhornet advanced reconnaissance pod..............            0      -43,409         2,500       -43,409
    Excessive budget growth..............................            0      -25,000             0        -5,000
    Tactical reconnaissance development..................            0            0       -23,400             0
TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER (TMPC).....       66,727      165,300        66,727       166,300
    Tactical tomahawk....................................            0       98,573             0        98,573
    Alternate turbine engine.............................            0            0        (1,000)        1,000
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT................       28,390       32,490        35,390        36,890
    Rangeless training...................................            0        5,000             0         2,500
    Conversion of BFTT trainer to Windows operating                  0        6,000         7,000         6,000
     enviroinment........................................
    Joint tactical combat training system................            0       -6,900        (9,827)            0
SURFACE ASW COMBAT SYSTEM INTEGRATION....................        9,390        9,390         9,390        13,390
    High dynamic range, low-cost, towed array receiver/              0            0             0         4,000
     beamformer sonar system.............................
      (Note: this item was funded in the Surface
       Combatant Combat System Engineering program in the
       House bill)
AVIATION IMPROVEMENTS....................................       64,956       61,956        68,956        63,956
    Engine component improvement.........................            0       -3,000             0        -3,000
    Eddy current sensors.................................            0            0         4,000         2,000
MARINE CORPS COMMUNICATIONS SYSTEMS......................       50,594       56,390        50,594        55,390
    Joint task force enhanced communications.............            0        5,000             0         4,000
    Tactical control and analysis center.................            0          796             0           796
MARINE CORPS GROUND COMBAT/SUPPORTING ARMS SYSTEMS.......       14,699       14,699        17,699        18,699
    Automatic target tracker.............................            0            0         3,000         2,000
    Shortstop............................................            0            0        (5,000)        2,000
TACTICAL UAV.............................................            0       55,200             0        51,192
    Multiple participant competitive demonstration.......            0       14,008             0        10,000
    Multi-function self-aligned gate technology..........            0        4,000             0         4,000
    Common systems development (transfer from R&D Defense-           0        5,048             0         5,048
     wide)...............................................
    Tactical control system..............................            0       32,144             0        32,144
ADVANCED SENSORS/TECH....................................            0            0         8,448        16,448
    Program transfer.....................................            0            0         8,448         8,448
    EO framing (on-chip FMC).............................            0            0             0         8,000
      (Note: this item was funded in Advanced Sensors/
       Technology program in the Senate bill.)
DEPOT MAINTENANCE (NON-IF)...............................       69,967            0        49,967        69,067
    Transfer to APN......................................            0      -69,967             0             0
    General reduction....................................            0            0       -20,000             0
CIVILIAN PERSONNEL UNDERSTRENGTH.........................            0            0             0        -5,000
----------------------------------------------------------------------------------------------------------------

                common integrated electric drive systems

       The conferees agree to Senate direction requiring a report 
     on a common integrated electric drive system for surface 
     combatant ships, but direct that development of 
     superconducting DC homopolar motor technology also be 
     addressed in the report.


           vectored thrust ducted propeller (vdtp) helicopter

       The conferees direct the Navy to submit to the Congress by 
     December 1, 1998, a specific plan for accomplishing a flight 
     demonstration of the VDTP compound helicopter technology. The 
     conferees reiterate last year's language which directed that 
     the Navy's H-60 program office shall have the responsibility 
     for the management and execution of this program.


      semi-autonomous underwater vehicle for intervention missions

       The conferees have just been advised of a potential funding 
     shortfall for the Semi-Autonomous Underwater Vehicle for 
     Intervention Missions (SAUVIM) program in the upcoming year. 
     The conferees encourage the Navy to ensure that sufficient 
     funding is provided for this program to carry it through 
     until the end of 1999.


                               project m

       The Congress appropriated $5,000,000 in fiscal year 1998 
     for Project M, including funds for a prototype system for 
     surface ships. The Navy has yet to obligate funds for a 
     surface ship application. Of the amount requested in the 
     fiscal year 1999 budget and appropriated in this Act for 
     Project M, $1,000,000 is only to begin development of a 
     prototype system for surface ships. The conferees direct that 
     the Navy budget funds in the future to ensure an at-sea 
     demonstration of a full scale active control of machinery 
     raft within two years.


                                 adc(x)

       The conferees direct that fiscal year 1999 funds may not be 
     obligated for an ADC(X) program unless the program plan 
     includes ship construction in at least two shipyards.


                               icr engine

       The conferees agree to provide the amount requested in the 
     budget to continue development of the intercooled recuperated 
     gas turbine engine. The conferees direct the Secretary of 
     Defense to limit obligation of additional funds, while 
     allowing the program to proceed in an orderly basis, until an 
     international memorandum of understanding has been 
     promulgated ending United States government participation in 
     the ICR development program after design review five at a 
     cost of no more than $60,000,000 in fiscal year 1999 and 
     subsequent fiscal years.


                           tactical tomahawk

       The conferees are aware that the contract solicitation for 
     the tactical Tomahawk weapons control system does not specify 
     the type of display to be used. The recent contract award for 
     the standard Navy display system for air, surface, and 
     subsurface applications specified that development of new 
     configurations to meet legacy equipment replacement 
     requirements would be accomplished under that contract. 
     Accordingly, the Navy should avoid duplication in development 
     costs and take advantage of the economies of scale and 
     infrastructure support by developing the tactical Tomahawk 
     display under this contract.


                           seawolf shock test

       The conferees agree to House language concerning system-
     level, live-fire shock testing of Seawolf submarines and note 
     that the Commander in Chief of the Atlantic Command has 
     recently indicated that he has no requirement for such a 
     test. The conferees fully endorse the existing live fire 
     legislation and testing for weapon systems in a normal 
     acquisition cycle. The conferees fully expect that the 
     Defense Department will conduct such a test on the New Attack 
     Submarine early in its production cycle, where the lessons-
     learned from the test can be incorporated into future 
     production of that weapon system. The unique circumstances 
     that caused the Congress not to support the Seawolf shock 
     test should not be viewed either that Congress no longer 
     requires live fire testing nor as a precedent for other

[[Page H8709]]

     weapon systems to be exempted from the requirements of law.


                           rangeless training

       The House proposed to terminate the Joint Tactical Combat 
     Training System (JTCTS) and eliminate a total of $17,300,000 
     in four procurement or RDT&E line items. The House also 
     proposed an alternate system, the integrated Large Area 
     Tracking Range (LATR)/Kadena Interim Training System (KITS), 
     and provided a total of $15,000,000 in three procurement or 
     RDT&E line items. The Senate provided the amount requested by 
     the Defense Department for JTCTS, with an increase of 
     $9,827,000 in the Navy RDT&E account to provide an initial 
     JTCTS system to support Cope Thunder exercises. The budget 
     requested funds to initiate JTCTS production in fiscal year 
     1999.
       Since JTCTS has not entered into production, and 
     development and testing has not been completed, there is an 
     opportunity to ensure that the Defense Department has 
     identified the best technical solution prior to expenditure 
     of significant amounts of funds in future years for rangeless 
     training equipment. The conferees also want assurance that 
     combat training systems for tactical aircraft will be 
     compatible with surface ship and submarine training range 
     systems, to the extent practicable, for joint service 
     exercise or Navy battlegroup training. The conferees direct 
     that the Defense Department conduct a technical evaluation, 
     using actual equipment, to compare the capabilities, 
     performance, and costs of an integrated LATR/KITS system to 
     JTCTS. The conferees therefore agree to provide the full 
     amount requested in RDT&E for JTCTS, plus an additional 
     $2,500,000 in the Navy RDT&E account only for LATR/KITS 
     integration. The conferees agree to a reduction of a total of 
     $9,000,000 in Air Force procurement accounts requested for 
     JTCTS, but an increase of a total of $20,000,000 in Navy and 
     Air Force Other Procurement accounts which is only for 
     purchase of equipment needed to conduct the technical 
     evaluation, and purchase of objective systems once reporting 
     requirements in the next paragraph have been met. Of this 
     amount, $8,000,000 is only to begin installation of a 
     rangeless training system to support Cope Thunder exercises. 
     Further, the conferees direct that the JTCTS RDT&E funds are 
     provided to proceed with equipping CAG 5 with an initial 
     JTCTS training capability in fiscal year 1999.
       The goal of the technical evaluation is to ensure that the 
     Defense Department has identified the best technical solution 
     to meet its rangeless training needs which minimizes 
     technical risk at lowest life cycle cost based on performance 
     of real equipment in a realistic environment. The conferees 
     direct that no funds may be obligated for rangeless training 
     production, other than those needed to conduct the technical 
     evaluation, until the following criteria have been met:
       The Director of Operational Test and Evaluation in the 
     Office of the Secretary of Defense has certified to the 
     congressional defense committees that the Defense Department 
     has established a technical evaluation between JTCTS and 
     integrated LATR/KITS which is reasonable, realistic, and 
     objective in order to determine the relative performance of 
     the systems;
       The technical evaluation has been conducted and the results 
     reported to the congressional defense committees; and
       The Undersecretary of Defense for Acquisition and 
     Technology has certified to the congressional defense 
     committees that the best technical solution to meet DOD 
     rangeless training requirements at the best value has been 
     identified and validated by the results of the technical 
     evaluation. His certification should include a determination 
     whether the most cost effective method to satisfy future Navy 
     and Air Force training needs is to continue development and 
     deployment of JTCTS, begin an evolutionary LATR/KITS system 
     development and deployment, or expand the JTCTS program to 
     include integrated LATR/KITS features.

         Research, Development, Test and Evaluation, Air Force

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
      RESEARCH DEVELOPMENT TEST AND EVAL AF
 
DEFENSE RESEARCH SCIENCES.......................         209,395         202,751         209,395         210,395
MATERIALS.......................................          62,578          72,578          68,678          75,278
AEROSPACE PROPULSION............................          69,061          74,061          69,561          69,561
PHILLIPS LAB EXPLORATORY DEVELOPMENT............         116,139         116,139         125,139         129,139
COMMAND CONTROL AND COMMUNICATION...............          65,175          67,675          65,175          72,175
DUAL USE APPLICATIONS PROGRAM...................          19,606          19,606          10,000          10,000
LOGISTICS SYSTEMS TECHNOLOGY....................           8,677           9,677           8,677           9,177
ADVANCED MATERIALS FOR WEAPON SYSTEMS...........          21,006          37,006          25,006          33,006
AEROSPACE PROPULSION SUBSYSTEMS INTEGRATION.....          30,814          30,814          27,814          27,814
ADVANCED AVIONICS FOR AEROSPACE VEHICLES........          26,442          26,442          29,442          28,642
AEROSPACE PROPULSION AND POWER TECHNOLOGY.......          38,984          38,984          36,984          36,984
CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY          16,603          22,603          35,103          30,053
ELECTRONIC COMBAT TECHNOLOGY....................          25,553          31,553          39,553          25,553
SPACE AND MISSILE ROCKET PROPULSION.............          21,121          25,121          21,121          24,121
ADVANCED SPACECRAFT TECHNOLOGY..................          42,571          54,571          65,071          60,571
ADVANCED WEAPONS TECHNOLOGY.....................          40,153          50,153          46,153          53,653
AIRBORNE LASER PROGRAM..........................         292,219         292,219         235,219         267,219
SATELLITE SYSTEM SURVIVABILITY..................  ..............  ..............          15,000           7,500
NATO RESEARCH AND DEVELOPMENT (H)...............          11,117  ..............          10,717           4,117
INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.....          29,360          42,360          16,360          27,337
GLOBAL BROADCAST SERVICE........................          70,147          67,947          70,147          70,147
AIR FORCE/NRO PARTNERSHIP (AFNP)................          17,645  ..............          17,645          17,645
SPACE-BASED LASER...............................          35,000          25,000          35,000          35,000
VARIABLE STABILITY IN-FLIGHT SIMULATOR TEST       ..............  ..............           7,400           4,000
 AIRCRAFT.......................................
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM                9,803           9,803  ..............           3,000
 (HDBTDS).......................................
F-22 EMD........................................       1,582,217       1,582,217       1,582,217       1,575,417
EW DEVELOPMENT..................................          90,126          95,126         100,126          98,626
SPACE BASED INFRARED SYSTEM (SBIRS) HIGH EMD....         538,438         538,438         543,238         541,938
GLOBAL POSITIONING SYSTEM BLOCK IIF (SPACE).....          62,591          62,591          84,591          73,591
LIFE SUPPORT SYSTEMS............................           3,744           6,744           3,744           6,244
COMBAT TRAINING RANGES..........................          14,581          13,181          14,581          14,581
COMPUTER RESOURCE TECHNOLOGY TRANSITION (CRTT)..             200           4,200             200           2,200
COMMERCIAL OPERATIONS AND SUPPORT SAVINGS                 27,937          14,037          17,937          15,937
 INITIATIVE.....................................
EVOLVED EXPENDABLE LAUNCH VEHICLE PROGRAM                280,297         230,297         280,297         260,297
 (SPACE)........................................
THREAT SIMULATOR DEVELOPMENT....................          32,582          29,582          39,582          34,582
TARGET SYSTEMS DEVELOPMENT......................           1,666           1,666           9,666           6,666
MAJOR T&E INVESTMENT............................          34,518          42,018          39,518          41,068
INITIAL OPERATIONAL TEST & EVALUATION...........          24,541          24,541          24,541          29,541
TEST AND EVALUATION SUPPORT.....................         370,168         376,168         366,168         363,168
DEVELOPMENT PLANNING............................           6,075           6,075           4,075           4,075
POLLUTION PREVENTION............................           1,673           1,673           6,673           5,173
ROCKET SYSTEMS LAUNCH PROGRAM (SPACE)...........           7,865          18,865           7,865          14,865
B-52 SQUADRONS..................................           6,436           6,436           5,036           6,436
REGION/SECTOR OPERATION CONTROL CENTER                    13,592          21,792          18,792          21,792
 MODERNIZATION..................................
F-16 SQUADRONS..................................         125,076         125,076         145,076         140,076
ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE                  45,078          15,078          36,078          36,078
 (AMRAAM).......................................
SPECIAL EVALUATION PROGRAM......................          92,551          72,551         102,551         102,551
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...          92,069         117,069          92,069          97,069
JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM)...         132,870         129,870         132,870         129,870
AIRBORNE WARNING AND CONTROL SYSTEM (AWACS).....          28,189          28,189          36,189          34,189
EVALUATION AND ANALYSIS PROGRAM.................          84,950          84,950          72,150          72,150
ADVANCED PROGRAM TECHNOLOGY.....................          74,707          79,707          74,707          77,207
THEATER BATTLE MANAGEMENT (TBM) C4I.............          27,292          27,292          32,292          30,792
AIRBORNE RECON SYSTEMS..........................  ..............          47,362  ..............  ..............
JOINT SURVEILLANCE AND TARGET ATTACK RADAR               123,793          98,193          98,793         101,793
 SYSTEM.........................................
SEEK EAGLE......................................          17,590          19,590          17,090          19,090
ADVANCED PROGRAM EVALUATION.....................         272,914         260,914         251,014         208,314
TACTICAL INFORMATION PROGRAM (TIP)..............          10,685  ..............          10,685  ..............
INFORMATION WARFARE SUPPORT.....................           1,375           1,375           3,375           2,375
FOREIGN TECHNOLOGY DIVISION.....................           1,234           1,234           1,834           2,134
MISSILE AND SPACE TECHNICAL COLLECTION..........          18,595          26,595          12,595          20,595
E-4B NATIONAL AIRBORNE OPERATIONS CENTER (NAOC).           4,233           4,233           2,143           2,143
DEFENSE SATELLITE COMMUNICATIONS SYSTEM (SPACE).          15,641          13,141          15,641          14,141

[[Page H8710]]

 
INFORMATION SYSTEMS SECURITY PROGRAM............           8,420          10,420           8,420           9,420
SECURITY AND INVESTIGATIVE ACTIVITIES...........             458           1,458             458           1,458
TITAN SPACE LAUNCH VEHICLES (SPACE).............          87,443          87,443          77,443          77,443
DEFENSE METEOROLOGICAL SATELLITE PROGRAM (SPACE)          20,432          17,932          20,432          17,932
NAVSTAR GLOBAL POSITIONING SYSTEM (USER                   67,238          62,238          36,638          36,638
 EQUIPMENT).....................................
ENDURANCE UNMANNED AERIAL VEHICLES..............           4,307         182,975         155,457         188,957
ADVANCED SENSORS/TECHNOLOGY.....................  ..............  ..............         134,768         126,768
COMMON IMSGERY GROUND/SURFACE SYS...............  ..............  ..............          20,379  ..............
MANNED RECONNAISSANCE SYSTEMS...................  ..............          25,800          21,566          38,366
DISTRIBUTED COMMON GROUND/SURFACE SYSTEM          ..............          14,701  ..............          21,159
 INTEROPERABIL..................................
SPACETRACK (SPACE)..............................          39,532          38,532          42,832          45,832
C-5 AIRLIFT SQUADRONS...........................          47,940          47,940          33,736          33,736
C-17 AIRCRAFT...................................         123,069         123,069         108,069         119,069
KC-135S.........................................          11,093          11,093           1,093           1,093
INDUSTRIAL PREPAREDNESS.........................          50,997          50,997          53,997          52,997
PRODUCTIVITY, RELIABILITY, AVAILABILITY,                     970             970          14,970          10,470
 MAINTAIN.......................................
COBRA BALL (FLD)................................  ..............  ..............           8,000           6,000
CLASSIFIED PROGRAMS.............................       4,420,330       4,188,138       4,189,930       4,281,116
CIVILIAN PERSONNEL UNDEREXECUTION...............  ..............  ..............  ..............          -9,600
ADVISORY AND ASSISTANCE SERVICES................  ..............         -40,000  ..............         -40,000
COMPASS CALL....................................  ..............          20,000  ..............          12,500
----------------------------------------------------------------------------------------------------------------


                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES.......................         209,395         202,751         209,395         210,395
    Coal derived jet fuel.......................               0           3,500               0           3,000
    Center for Adaptive Optics..................               0           3,000               0           2,000
    Basic Research reduction....................               0         -13,144               0          -4,000
    Sacramento Peak Observatory.................               0           [650]           [650]           [650]
    Air Force Research Lab mission-focused                     0               0         [3,000]         [3,000]
     research projects through AFIT.............
MATERIALS.......................................          62,578          72,578          68,678          75,278
    Advanced Material Research..................               0          10,000               0           8,000
    Friction stir welding.......................               0               0           1,500           1,200
    Environmentally safe aircraft coating.......               0               0           2,000           1,500
    Inorganic/organic optical limiters..........               0               0           2,600           2,000
AEROSPACE PROPULSION............................          69,061          74,061          69,561          69,561
    Variable dispacement vane pump for KC-135...               0           5,000           2,000           3,000
    Program reduction...........................               0               0          -4,000          -4,000
    Thermophotovoltaics.........................               0               0           2,500           1,500
PHILLIPS LAB EXPLORATORY DEVELOPMENT............         116,139         116,139         125,139         129,139
    HAARP.......................................               0               0           9,000           9 000
    Terabit.....................................               0               0               0           4,000
COMMAND CONTROL AND COMMUNICATIONS..............          65,175          67,676          65,175          72,175
    Protein memory..............................               0           2,500               0           2,000
    Cyber security program......................               0               0         [8,000]           5,000
ADVANCED MATERIALS FOR WEAPON SYSTEMS...........          21,006          37,006          25,006          33,006
    Advanced low observable coatings............               0           9,000               0           4,000
    National Center for Industrial                             0           7,000               0           5,000
     Competitiveness............................
    Aerospace metals programs...................               0               0           4,000           3,000
CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY          16,603          22,603          35,103          30,053
    Ejection seat technology....................               0           3,000               0               0
    Aircrew laser eye protection................               0           3,000           5,500           4,250
    Panoramic night vision goggles..............               0               0           3,000           2,200
    ACES II risk reduction......................               0               0           2,000           2,000
    Helmet display technology...................               0               0           8,000           5,000
BALLISTIC MISSILE TECHNOLOGY....................               0          16,000          16,000          16,000
    Missile and GPS range safety technology dev.               0          16,000          16,000          16,000
     and demonstration..........................
ADVANCED SPACECRAFT TECHNOLOGY..................          42,571          54,571          65,071          60,571
    Scorpius....................................               0           5,000               0           2,500
    Miniature satellite threat reporting system.               0           7,000               0           5,000
    Range upgrades to support upper stage flight               0               0           5,000               0
     experiments................................
    Solar orbital transfer vehicle..............               0               0           7,500           4,500
    Micro-Satellite Technology Program..........               0               0          10,000           6,000
ADVANCED WEAPONS TECHNOLOGY.....................          40,153          50,153          46,153          53,653
    Geo Space Object Imaging....................               0          10,000               0           7,500
    Field laser radar upgrade...................               0               0           6,000           6,000
AIRBORNE LASER PROGRAM..........................         292,219         292,219         235,219         267,219
    Aircraft purchase and integration...........               0               0         -97,000               0
    Ground testing and targets..................               0               0          40,000               0
    Concurrency.................................               0               0               0         -25,000
INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.....          29,360          42,360          16,360          27,337
    Conventional ICBM ACTD......................               0          13,000               0          11,000
    Advanced IMU................................               0               0          -8,000          -6,000
    AIMU interferometer fiber opic gyro.........               0               0          -3,000          -3,000
    Sensor/instrumentation integration..........               0               0          -2,000          -2,000
    Evaluate force applications technologies of                0               0               0          -2,023
     AF Global Studies..........................
VARIABLE STABILITY IN-FLIGHT SIMULATOR TEST                    0               0           7,400           4,000
 AIRCRAFT.......................................
    3NF-16D VISTA support.......................               0               0           3,800               0
    NF-16D VISTA VSS:
        Improvements............................               0               0           1,100               0
        Ground simulator........................               0               0           1,500               0
        Hotbench................................               0               0           1,000               0
        NF-16D VISTA Support and VSS............               0               0               0           4,000
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM                9,803           9,803               0           3,000
 (HDBTDS).......................................
    Complete Joint Analysis of Alternatives.....               0               0               0           3,000
    F-22 EMD....................................       1,582,217       1,582,217       1,582,217       1,575,417
    Unused award fees identified by GAO.........               0               0               0          -6,800
EW DEVELOPMENT..................................          90,126          95,126         100,126          98,626
    Advanced flares for B-1 and C-17............               0           5,000               0           4,000
    Classified adjustment.......................               0               0          10,000               0
    PLAID for AN/ALR-69 (transfer from 0603270F)               0               0               0           4,500
THREAT SIMULATOR DEVELOPMENT....................          32,582          29,582          39,582          34,582
    JMASS delays................................               0          -3,000               0          -3,000
    REDCAP/DIADS................................               0               0               0           5,000
        Integration with ECIT...................               0               0           4,000               0
        Simulation threat correlation...........               0               0             600               0
        Special project laydowns................               0               0           1,000               0
        Technology proliferation................               0               0           1,400               0
MAJOR T&E INVESTMENT............................          34,518          42,018          39,518          41,068
    Santa Rosa Island range complex.............               0           5,000               0           2,500
    Eglin Range Complex.........................               0           2,500               0           1,250
    Hypersonic wind tunnel......................               0               0           5,000           2,800
TEST AND EVALUATION SUPPORT.....................         370,168         376,168         366,168         363,168
    Air Force Flight Test Center safety                        0           6,000               0           3,000
     improvements...............................
    Program reduction...........................               0               0          -4,000         -10,000
JOINT SURVEILLANCE AND TARGET ATTACK RADAR               123,793          98,193          98,793         101,793
 SYSTEM.........................................
    RTIP reduction..............................               0         -25,600         -25,000         -25,000
    JSTARS multi-service datalink competition...               0               0               0           3,000
SEEK EAGLE......................................          17,590          19,590          17,090          19,090
    LongShot....................................               0           2,000               0           1,500

[[Page H8711]]

 
    Program reduction...........................               0               0            -500               0
NAVSTAR GLOBAL POSITIONING SYSTEM (USER                   67,238          62,238          36,638          36,638
 EQUIPMENT).....................................
    NAVWAR pricing..............................               0          -5,000               0               0
    NAVWAR EMD..................................               0               0         -28,600         -28,600
    Undefined product improvement efforts.......               0               0          -2,000          -2,000
ENDURANCE UNMANNED AERIAL VEHICLES..............           4,307         182,975         155,457         188,957
    Darkstar....................................               0          40,518               0          34,000
    Global Hawk transfer/increase...............               0          90,051         115,051         102,551
    CGS transfer................................               0          48,099          36,099          48,099
ADVANCED SENSORS/TECHNOLOGY.....................               0               0         134,768         126,768
    Transfer....................................               0               0         125,768         125,768
    EO framing..................................               0               0           9,000               0
    High Data Rate Laser Comms..................               0               0               0           1,000
COMMON IMAGERY GROUND/SURFACE SYS...............               0               0          20,379               0
MANNED RECONNAISSANCE SYSTEMS...................               0          25,800          21,566          38,366
    U-2 transfers...............................               0          25,800           7,466          26,766
    Fuel conversion.............................               0               0           3,600           3,600
    Glass cockpit...............................               0               0           3,000           3,000
    RAS-1R......................................               0               0           7,500           5,000
DISTRIBUTED COMMON GROUND/SURFACE SYSTEM........               0          14,701               0          21,519
    INTEROPERABILITY, NIMA......................
SPACETRACK (SPACE)..............................          39,532          38,532          42,832          45,832
    HAVE STARE..................................               0          -1,000               0          -1,000
    AEOS activities.............................               0               0           3,300           7,300
    (NOTE: The AEOS activities increase is
     provided for the following: $1,400,000 is
     only for the spectrograph program;
     $1,300,000 is only for AEOS-related
     acquisition and research; and $4,000,000 is
     only for MSSS research and development
     efforts.)
C-5 Airlift Squadrons...........................          47,940          47,940          33,736          33,736
System design and test..........................               0               0          -8,415          -8,415
    Preproduction fabrication...................               0               0          -3,209          -3,209
    Software development........................               0               0          -2,580          -2,580
INDUSTRIAL PREPAREDNESS.........................          50,997          50,997          53,997          52,997
    Aerospace metals programs...................               0               0           3,000           2,000
    Wright Technology Network...................               0         [1,000]               0         [1,000]
PRODUCTIVITY, RELIABILITY, AVAILABILITY,                     970             970          14,970          10,470
 MAINTAIN.......................................
    Aging Landing Gear Life Extension Program...               0               0           6,000           4,000
    Blade repair facility.......................               0               0           8,000           5,500
----------------------------------------------------------------------------------------------------------------

                            aviation safety

       The Committee understands that the U.S. Air Force is 
     working with the Federal Aviation Administration (FAA) to use 
     the capabilities at the FAA Airworthiness Assurance Center of 
     Excellence and other FAA research resources for projects that 
     will enhance the safety of both military and civilian 
     aircraft. The Committee encourages increased coordination to 
     maximize improvements in safety research and to avoid 
     duplicative efforts.


                         airborne laser program

       The conferees have provided $267,219,000, a reduction of 
     $25,000,000 to the budget request. The conferees direct that 
     the first priority within the available funds shall be to 
     conduct a meaningful ground demonstration of the capability 
     to produce a high energy beam, compensate the beam for 
     atmospheric disturbances, and measure the deposition of laser 
     energy on a target under realistic test conditions. The 
     funding level recommended by the conferees reduces 
     concurrency in the program to enable the lessons learned from 
     the test to be incorporated in the program.


              hard and deeply buried target defeat system

       The conferees have provided a total of $6,000,000, with 
     $3,000,000 in the RDT&E, Navy account and $3,000,000 in the 
     RDT&E, Air Force account. The conferees direct that the 
     $6,000,000 shall be available only for completion of a joint 
     analysis of alternatives (AOA) as well as planning efforts 
     associated with establishing a joint hard and deeply buried 
     target defeat program.


                       target SYSTEMS DEVelopment

       The conferees agree with the Senate direction with regard 
     to the KC-135 Big Crow report and further direct that the 
     report be provided no later than December 31, 1998.


                   tactical air reconnaissance system

       The conferees believe that if the Defense Department 
     decides to acquire additional sensors for the AF Tactical Air 
     Reconnaissance System (TARS) program, the Department should 
     consider the CA 261, the MAEO and other sensors based on best 
     value, capability and stated Air Force requirements.


                               warfighter

       The conferees continue to support the Warfighter-1 program. 
     The conferees are concerned however, that the license 
     amendment for commercial operation of the Warfighter-1 sensor 
     has still to be adjudicated 13 months after initial 
     application. While the conferees recognize the importance of 
     a stringent national security review before any commercial 
     remote sensing license is granted, the excessive length of 
     the review process may jeopardize program milestones and 
     objectives.
       The conferees therefore, strongly encourage the Secretary 
     of Defense and the Director of Central Intelligence to take 
     immediate steps to resolve remaining license issues and 
     report to the Committees on Appropriations no later than 
     November 15, 1998 on the resolution of all outstanding issues 
     concerning the commercial operation of the Warfighter-1 
     program.


                evolved expendable launch vehicle (eelv)

       The conferees agree to provide $260,297,000 for the Evolved 
     Expendable Launch Vehicle Program, a reduction of $20,000,000 
     to the budget request. The conferees also agree to House 
     language directing that reports and certifications regarding 
     the EELV program be provided to the Committees on 
     Appropriations and necessary program information be provided 
     to the Comptroller General. The conferees do not agree that 
     the obligation of fiscal year 1999 appropriations for the 
     EELV program should be restricted pending the receipt of said 
     reports and certifications.


             defense satellite communications system (dscs)

       The conferees agree to the House language requiring the Air 
     Force to report to the Committees on Appropriations on the 
     resolution of difficulties associated with the completion of 
     the operational requirements document for the DSCS follow-on 
     system. The conferees do not agree that the report needs to 
     be provided prior to the release of any draft RFP for the 
     DSCS follow-on system.

        Research, Development, Test and Evaluation, Defense-Wide

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
    RESEARCH DEVELOPMENT TEST & EVAL DEFWIDE:
UNIVERSITY RESEARCH INITIATIVES.................         216,320         218,400         219,320         229,420
GULF WAR ILLNESS................................          19,646          19,646          19,646          23,796
GOVERNMENT/INDUSTRY COSPONSORSHIP OF UNIVERSITY            9,870  ..............           9,870           4,870
 RESEAR.........................................
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.........          25,282          25,282          30,282          28,782
NEXT GENERATION INTERNET........................          40,000          53,000          30,000          50,000
SUPPORT TECHNOLOGIES--APPLIED RESEARCH..........          86,866          81,866         100,866          97,866
MEDICAL FREE ELECTRON LASER.....................           9,706          17,206          16,706          14,706
COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY.         417,723         390,723         346,323         331,323
BIOLOGICAL WARFARE DEFENSE......................          88,000          88,000          82,500          82,000
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.........          57,683          57,683          66,683          63,583
TACTICAL TECHNOLOGY.............................         188,995         151,995         192,995         175,395
INTEGRATED COMMAND AND CONTROL TECHNOLOGY.......          34,000          40,000          42,000          40,000
MATERIALS AND ELECTRONICS TECHNOLOGY............         244,408         253,408         271,408         277,908
WMD RELATED TECHNOLOGIES........................         203,598         204,598         221,598         215,598
EXPLOSIVES DEMILITARIZATION TECHNOLOGY..........          11,650          13,650          14,850          14,650
COUNTERTERROR TECHNICAL SUPPORT.................          35,813          35,813          40,813          38,313
COUNTERPROLIFERATION SUPPORT--ADV DEV...........          70,611          55,611          77,611          53,111
SUPPORT TECHNOLOGIES--ADVANCED TECHNOLOGY                166,676         193,676         299,676         277,676
 DEVELOPMENT....................................
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--                 42,762          55,262          42,762          51,762
 ADVANCED DEV...................................

[[Page H8712]]

 
VERIFICATION TECHNOLOGY DEMONSTRATION...........          63,052          48,052          63,052          58,052
GENERIC LOGISTICS R&D TECHNOLOGY DEMONSTRATIONS.          17,788          25,388          21,788          23,788
STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM........  ..............          59,419  ..............          59,419
JOINT WARFIGHTING PROGRAM.......................          23,700          23,700          19,100          19,100
COOPERATIVE DOD/VA MEDICAL RESEARCH.............  ..............          11,000  ..............           6,000
ADVANCED ELECTRONICS TECHNOLOGIES...............         244,737         264,537         261,337         264,637
MARITIME TECHNOLOGY.............................          15,000          15,000  ..............  ..............
ELECTRIC VEHICLES...............................  ..............  ..............  ..............           9,000
ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS......         116,330          81,076         110,330          89,830
HIGH PERFORMANCE COMPUTING MODERNIZATION PROGRAM         140,927         120,927         163,927         153,927
COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS.....         200,100         172,600         177,000         181,300
COMMUNICATION AND SIMULATION TECHNOLOGY.........          56,114          56,114          56,114          54,114
SENSOR AND GUIDANCE TECHNOLOGY..................         213,154         203,654         233,054         208,054
LAND WARFARE TECHNOLOGY.........................         108,490          96,890          93,490          92,990
CLASSIFIED DARPA PROGRAMS.......................          55,500          42,000          55,500          51,000
DUAL USE APPLICATION PROGRAMS...................           6,000  ..............           6,000           6,000
JOINT WARGAMING SIMULATION MANAGEMENT OFFICE....          70,696          70,696          61,496          61,496
PHYSICAL SECURITY EQUIPMENT.....................          31,792          31,792          25,792          25,792
ADVANCED SENOR APPLICATIONS PROGRAM.............          15,147          15,147          17,147          18,147
CALS INITIATIVE.................................           1,863          11,363           6,863           7,863
NATO RESEARCH AND DEVELOPMENT...................          10,762  ..............           8,462           5,762
THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD..         497,752         392,752         497,752         445,252
NAVY THEATER WIDE...............................         190,446         340,446         295,446         338,446
MEADS CONCEPTS--DEM/VAL.........................          43,027          43,027          10,027          10,027
BOOST PHASE INTERCEPT THEATER MISSILE DEFENSE     ..............  ..............          10,000           6,500
 ACQUISIT.......................................
JOINT THEATER MISSILE DEFENSE--DEM/VAL..........         176,846         176,846         209,346         207,846
BMD TECHNICAL OPERATIONS........................         190,147         190,147         192,147         191,147
INTERNATIONAL COOPERATIVE PROGRAMS..............          50,676          50,676          62,676          59,676
THREAT AND COUNTERMEASURES......................          22,113          22,113          25,113          24,613
HUMANITARIAN DEMINING...........................          17,234           8,234          19,234          18,734
JOINT ROBOTICS PROGRAM--ENG DEV.................          11,307          11,307          18,307          15,307
COMMERCIAL OPERATIONS AND SUPPORT SAVINGS                 13,410          13,410          13,410           8,000
 INITIATIVE.....................................
THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD--         323,942          22,942  ..............  ..............
 EMD............................................
PATRIOT PAC-3 THEATER MISSILE DEFENSE                    137,265         177,265         182,265         182,265
 ACQUISITION....................................
JOINT THEATER AIR AND MISSILE DEFENSE                     17,423          17,423          17,423         109,923
 ORGANIZATION...................................
CLASSIFIED PROGRAM USD(P).......................  ..............           3,387  ..............           3,387
CLASSIFIED PROGRAMS--C3I........................             439             439           6,439           6,439
DEFENSE TECHNOLOGY ANALYSIS.....................           5,010           5,010           8,010           8,010
DEFENSE TECHNICAL INFORMATION SERVICES (DTIC)...          46,469          46,469          45,469          45,469
INFORMATION SYSTEMS SECURITY PROGRAM............         239,081         239,081         239,081         251,081
DEFENSE IMAGERY AND MAPPING PROGRAM.............         114,417         109,417         114,417         109,417
DISTRIB/IMAGERY COMMON GRD SYS..................  ..............           9,358  ..............           5,080
DISTRIB COMMON GRD SYS..........................  ..............           2,540  ..............  ..............
DEFENSE RECONNAISSANCE SUPPORT ACTIVITIES                 40,504          30,617          48,504          44,609
 (SPACE)........................................
AIRBORNE RECONNAISSANCE SYSTEMS.................         162,666  ..............          15,000  ..............
MANNED RECONNAISSANCE SYSTEMS...................          10,840  ..............           5,874  ..............
MANNED RECONNAISSANCE SYSTEMS...................           4,085           4,085           4,085           9,959
DISTRIBUTED COMMON GROUND SYSTEMS...............          34,985  ..............           4,200  ..............
TACTICAL CRYPTOLOGIC ACTIVITIES.................         104,510         201,810         104,510         115,564
PARTNERSHIP FOR PEACE ACTIVITIES................           1,957           5,957           1,957           4,957
SPECIAL OPERATIONS ADVANCED TECHNOLOGY                     8,020          34,020           8,020          29,020
 DEVELOPMENT....................................
SPECIAL OPERATIONS TACTICAL SYSTEMS DEVELOPMENT.         106,238         106,238         113,238         107,738
SPECIAL OPERATIONS INTELLIGENCE SYSTEMS                    1,805          10,805           1,805           8,805
 DEVELOPMENT....................................
SOF OPERATIONAL ENHANCEMENTS....................          33,799          47,604          33,799          45,599
CLASSIFIED PROGRAMS.............................       1,057,100       1,141,826       1,163,100       1,157,958
ADVISORY AND ASSISTANCE SERVICE.................  ..............         -50,000  ..............         -50,000
CIVILIAN PERSONNEL UNDEREXECUTION...............  ..............  ..............  ..............          -7,200
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES.......................          65,102          65,102          65,102          65,102
    Interdisciplinary research in anticorrosion.               0               0         [1,200]         [1,000]
    Research on applications of spectral hole                  0               0         [2,000]         [1,400]
     burning....................................
UNIVERSITY RESEARCH INITIATIVES.................         216,320         218,400         219,320         229,420
    Southern observatory for astronomical                      0               0           3,000           2,200
     research (SOAR)............................
    Anticorrosion research on aluminum clad                    0               0         [1,250]         [1,250]
     systems used in aircraft fleets............
    Defense Experimental Program to Stimulate                  0          15,000        [20,000]        [20,000]
     Competitive Research.......................
    Software quality and productivity...........               0               0         [1,300]         [1,300]
    Photoacoustic detection device..............               0           1,800               0           1,200
    Medical ultrasound technology...............               0           1,600               0           1,200
    Program reduction...........................               0         -16,320               0               0
    Military Family Research Institute..........               0         [9,000]               0         [8,000]
    Acoustic sensor technology development                     0               0         [1,000]           1,000
     planning...................................
    New Starts..................................               0               0               0           5,500
    Computational neuroscience (Note: $2,000,000               0               0               0           2,000
     shall be available only to add a multi-
     disciplinary URI topic area on
     computational neuroscience and vision
     studies for learning and human/machine
     interaction.)..............................
NEXT GENERATION INTERNET........................          40,000          53,000          30,000          50,000
    Program reduction...........................               0               0         -10,000               0
    Program increase............................               0          13,000               0          10,000
    Partnerships between centers with super                    0               0               0         [5,000]
     computers purchased with DOD RDT&E funds
     and DOD MSRCs..............................
SUPPORT TECHNOLOGIES--APPLIED RESEARCH..........          86,866          81,866         100,866          97,866
    Wideband gap semiconductor research.........               0           5,000          14,000          11,000
    Space-based laser...........................               0         -10,000               0               0
COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY.         417,723         390,723         346,323         331,323
    Hand free interface.........................               0               0          -7,500          -7,500
    Joint infrastructure protection.............               0               0         -69,900         -69,900
    Software security research..................               0               0             500             500
    Asset source for software engineering                      0               0           2,500           2,500
     technology [ASSET].........................
    Reuse technology adoption program...........               0               0           3,000           2,000
    Multi-spectral imaging......................               0           5,000               0           2,000
    Computer security...........................               0           2,000               0           1,000
    Networking..................................               0         -34,000               0         -20,000
    Applied Software Engineering (Note:                        0               0               0           3,000
     $3,000,000 is only for the National Applied
     Software Engineering Center to perform a
     Microelectronics and Very Large-Scale
     Integration (VSLI) software initiative to
     demonstrate the integration of artificial
     intelligence software technologies with
     VLSI microelectronics circuits.)...........
BIOLOGICAL WARFARE DEFENSE......................          88,000          88,000          82,500          82,000
    Program reduction...........................               0               0          -7,000          -7,000
    Biological warfare multimedia demonstration.               0               0           1,500           1,000
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.........          57,683          57,683          66,683          63,583
    Chemical and biological detection sensor....               0               0           5,000           3,500
    Safeguard...................................               0               0           4,000           2,400
TACTICAL TECHNOLOGY.............................         188,995         151,995         192,995         175,395
    Center of excellence for research in ocean                 0               0           7,000           7,000
     sciences [CEROS]...........................
    Simulation-based design.....................               0           2,000           5,000           2,000
    Microadaptive flow control..................               0               0          -3,000          -3,000
    Counterartillery force protection...........               0               0          -5,000          -5,000
    High performance algorithm development......               0          -5,600               0          -5,600
    Advanced fire support system................               0          -8,000               0          -4,000
    Program reduction...........................               0         -25,400               0          -5,000

[[Page H8713]]

 
MATERIALS AND ELECTRONICS TECHNOLOGY............         244,408         253,408         271,408         277,908
    Multitechnology integration in mixed-mode                  0               0           8,000           5,000
     electronics [MIME].........................
    3-D diamond electronics.....................               0               0           9,000           5,500
    Seamless high off chip connectivity [SHOCC].               0               0           8,000           5,000
    Cryogenic/superconducting electronics.......               0               0           8,000           5,000
    Electromagnetic pulse [EMP].................               0               0           2,000               0
    Sonoelectronics.............................               0               0          -8,000          -8,000
    MEMS deep silicon etching process technology               0           7,500               0           7,000
    Nanophase magnetic particle (advanced                      0           4,000               0           7,000
     materials research institute)..............
    Polymer materials and processing............               0           5,000               0           4,000
    Strategic Materials Manufacturing...........               0               0         [2,000]         [2,000]
    Laser diode array alignment (Note:                         0               0               0           3,000
     $3,000,000 is only for the development of
     automated laser diode bar mounting
     techniques.)...............................
WMD RELATED TECHNOLOGIES........................         203,598         204,598         221,598         215,598
    Nuclear weapons effects technology..........               0               0          10,000           7,000
    Thermionics.................................               0               0           5,000           3,000
    Deep digger.................................               0               0           3,000           2,000
    Facial recognition technology...............               0           1,000               0               0
EXPLOSIVES DEMILITARIZATION TECHNOLOGY..........          11,650          13,650          14,850          14,650
    Program increase............................               0           2,000           2,000           2,000
    Demilitarization advanced cutting technology               0               0           1,200           1,000
COUNTERTERROR TECHNICAL SUPPORT.................          35,813          35,813          40,813          38,313
    Facial recognition technology...............               0               0           4,000           2,500
    Pulsed fast neutron analysis................               0               0           1,000               0
    Transfer....................................               0         -25,000               0               0
COUNTERPROLIFERATION SUPPORT--ADV DEV...........          70,611          55,611          77,611          53,111
    HAARP.......................................               0               0           3,000           1,500
    Counterproliferation analysis planning                     0          10,000           4,000           6,000
     system [CAPS]..............................
    Transfer (special reconnaissance                           0         -25,000               0         -25,000
     capabilities)..............................
SUPPORT TECHNOLOGIES--ADVANCED TECHN.                    166,676         193,676         299,676         277,676
 DEVELOPMENT....................................
    Scorpius space launch tech..................               0           5,000           5,000           4,000
    Excalibur space launch tech.................               0               0           5,000           4,000
    Space-based laser demonstrator..............               0               0          94,000          74,000
    Atmospheric interceptor technology..........               0          22,000          22,000          22,000
    Photoconduction on active pixel sensors.....               0               0           5,000           5,000
    Silicon thick film mirror coatings..........               0               0           2,000           2,000
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--                 42,762          55,262          42,762          51,762
 ADVANCED DEV...................................
    Biocide-based protective ensembles..........               0           2,500               0           1,500
    Exposure to low levels of chemical agents                  0          10,000               0           7,500
     and sub-chronic exposures..................
VERIFICATION TECHNOLOGY DEMONSTRATION...........          63,052          48,052          63,052          58,052
    Program reduction...........................               0         -25,000               0         -15,000
    Nuclear detection, analysis and forensics                  0          10,000               0          10,000
     systems (Note: $5,000,000 is only for
     continuation of the industry based program
     and $5,000,000 is only for accelerated
     development of nuclear detection systems.).
    Peer reviewed basic and applied research to                0        [12,000]               0         [8,500]
     support nuclear testing (Note: Of the
     $8,500,000, $7,300,000 shall be available
     only for basic peer-reviewed explosion
     seismology research; and $1,200,000 shall
     be available only for applied peer-reviewed
     explosion seismology research. The
     conferees direct that the applied seismic
     research program address the specific
     prioritized research topics recommended to
     the Department by the National Research
     Council.)..................................
STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM........               0          59,419               0          59,419
    Transfer from RDTE,A........................               0          54,419               0          54,419
    Environmental workers safety................               0           2,000               0           2,000
    Risk-based approach to research effects of                 0           3,000               0           3,000
     toxic chemicals............................
ADVANCED ELECTRONICS TECHNOLOGIES...............         244,737         264,537         261,337         264,637
    X-ray masks for F-22, Apache Longbow........               0               0          10,000           7,000
    Advanced lithography........................               0               0          10,000           7,000
    Defense techlink center.....................               0               0           1,000           1,000
    Center for advanced microstructures and                    0         [4,000]           4,000           4,000
     devices....................................
    Molecular level printing program                           0               0          -3,300          -3,300
     acceleration...............................
    Submarine sensor suite development..........               0               0          -5,100          -5,100
    Cryogenic electronics.......................               0           9,500               0               0
    Laser plasma x-ray source technology........               0           7,000               0           6,000
    Nanotechnology and crystalline control                     0           3,300               0           3,300
     arrays.....................................
HIGH PERFORMANCE COMPUTING MODERNIZATION PROGRAM         140,927         120,927         163,927         153,927
    Operation and upgrade of supercomputing                    0               0          20,000          20,000
     centers, purchased with RDT&E funds........
    High performance visualization center.......               0               0           3,000           3,000
    Program reduction...........................               0         -20,000               0         -10,000
COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS.....         200,100         172,600         177,000         181,300
    Cynamic data bases program..................               0               0          -5,000          -5,000
    Joint forward air component commander                      0               0          -5,800          -5,800
     [JFACC] acceleration.......................
    Dynamic multiuser information fusion [DMIF].               0               0          -8,000          -8,000
    JSIMS program reduction.....................               0               0          -4,300               0
    Program reduction...........................               0         -27,500               0               0
SENSOR AND GUIDANCE TECHNOLOGY..................         213,154         203,654         233,054         208,054
    Enhanced global positioning receiver (GPX)..               0               0          -5,600          -5,600
    Low cost cruise missile defense airframe                   0               0          -7,500          -7,500
     design and integration.....................
    Air directed surface-to-air missile                        0               0          30,000               0
     demonstration (ADSAM)......................
    Large millimeter telescope..................               0               0           3,000           1,500
    GPS Guidance Package........................               0           6,500               0           6,500
    GEOSAR (transfer to Army)...................               0          11,000               0               0
    Tactical Radar/Discoverer II................               0         -27,000               0               0
LAND WARFARE TECHNOLOGY.........................         108,490          96,890          93,490          92,990
    Reconnaissance, surveillance, and targeting                0               0          -9,000          -4,500
     vehicle....................................
    Tactical mobile robots acceleration.........               0               0          -3,000          -3,000
    Situational awareness system program growth.               0               0          -3,000          -8,000
    Program reduction...........................               0         -11,600               0               0
CLASSIFIED DARPA PROGRAMS.......................          55,500          42,000          55,200          51,000
    Program reduction--UCAV.....................               0         -13,500               0          -4,500
PHYSICAL SECURITY EQUIPMENT.....................          31,792          31,792          25,792          25,792
    Analytic system software for safeguards and                0               0         [3,000]         [3,000]
     security...................................
    Program reduction...........................               0               0          -6,000          -6,000
ADVANCED SENSOR APPLICATIONS PROGRAM............          15,147          15,147          17,147          18,147
    HAARP.......................................               0               0           2,000           2,000
    Stochastic Resonance Technology.............               0               0               0           1,000
CALS INITIATIVE.................................           1,863          11,363           6,863           7,863
    IDE/continuous acquisition and life-cycle                  0           4,000           5,000           4,000
     support....................................
    Commodity management........................               0           3,000               0               0
    Paperless contracting.......................               0           2,500               0           2,000
THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD..         497,752         392,752         497,752         445,252
    User operational evaluation system (40                     0               0        -180,000               0
     missiles, spares)..........................
    Demonstration/validation....................               0               0         180,000          52,500
    User operational evaluation system (40                     0        -105,000               0        -105,000
     missiles)..................................
NAVY THEATER WIDE...............................         190,446         340,446         295,446         338,446
    Program increase............................               0         150,000          70,000         120,000
    Radar improvements competition..............               0               0          35,000          28,000
MEADS CONCEPTS--DEM/VAL.........................          43,027          43,027          10,027          10,027
    Program termination.........................               0               0         -43,027         -43,027
    Air directed surface-to-air missile                        0               0          10,027          10,027
     demonstration (ADSAM)......................
JOINT THEATER MISSILE DEFENSE--DEM/VAL..........         176,846         176,846         209,346         207,846
    Extended air defense testbed................               0               0           7,500           6,000
    Pacific Missile Range Facility TMD upgrades.               0               0          20,000          20,000
    Optical-electro sensors.....................               0               0           5,000           5,000
    Kauai test facility.........................               0               0         [5,000]         [5,000]
FAMILY-OF-SYSTEMS ENGINEERING AND INTEGRATION...          96,915          96,915          96,915          96,915
    Air directed surface-to-air missile                        0               0        [10,000]        [10,000]
     demonstration (ADSAM)......................
BMD TECHNICAL OPERATIONS........................         190,147         190,147         192,147         191,147

[[Page H8714]]

 
    Advanced research center....................               0               0           7,000           6,000
    Program reduction...........................               0               0          -5,000          -5,000
HUMANITARIAN DEMINING...........................          17,234           8,234          19,234          18,734
    Acoustic technologies.......................               0               0           [800]           [800]
    Humanitarian demining.......................               0               0           2,000           1,500
    Program reduction...........................               0          -9,000               0               0
JOINT ROBOTICS PROGRAM--ENG DEV.................          11,307          11,307          18,307          15,307
    Joint robotics technology...................               0               0           6,000           3,000
    Robotic combat support system [RCSS] with                  0               0           1,000           1,000
     flailhead for demining.....................
PATRIOT PAC-3 THEATER MISSILE DEFENSE                    137,265         177,265         182,265         182,265
 ACQUISITION....................................
    TRANSFER OF FUNDS...........................               0          40,000          40,000          40,000
    PAC-3 air directed surface-to-air missile                  0               0           5,000           5,000
     testing....................................
JOINT THEATER AIR AND MISSILE DEFENSE                     17,423          17,423          17,423         109,923
 ORGANIZATION...................................
    ADSAM Demonstration.........................               0               0               0          92,500
INFORMATION SYSTEMS SECURITY PROGRAM............         239,081         239,081         239,081         251,081
    High security computational structure                      0               0           [500]           [500]
     project....................................
    Protection of vital data....................               0               0               0          12,000
DEFENSE RECONNAISSANCE SUPPORT ACTIVITIES                 40,504          30,617          48,504          44,609
 (SPACE)........................................
    IBS Transfer................................               0          -9,887               0          -3,895
    Pacific disaster center.....................               0               0           8,000           8,000
MANNED RECONNAISSANCE SYSTEMS...................           4,085           4,085           4,085           9,959
    U-2 transfer................................               0               0               0           5,874
TACTICAL CRYPTOLOGIC ACTIVITIES.................         104,510         201,810         104,510         115,564
    Adv Sensors transfer........................               0               0               0           6,359
    Adv Technology (NSA)........................               0               0               0           8,641
    DCP program decrease........................               0               0               0          -3,946
PARTNERSHIP FOR PEACE ACTIVITIES................           1,957           5,957           1,957           4,957
    International medical programs global                      0           4,000               0           3,000
     satellite surveillance system..............
SPECIAL OPERATIONS ADVANCED TECHNOLOGY                     8,020          34,020           8,020          29,020
 DEVELOPMENT....................................
    Advanced lightweight grenade launcher.......               0           1,000               0           1,000
    Special reconnaissance capabilities program.               0          25,000               0          20,000
SPECIAL OPERATIONS TACTICAL SYSTEMS DEVELOPMENT.         106,238         106,238         113,238         107,738
    Special operations intelligence vehicle.....               0               0           5,000               0
    Light vehicle intercom system...............               0               0           2,000           1,500
SPECIAL OPERATIONS INTELLIGENCE SYSTEMS                    1,805          10,805           1,805           8,805
 DEVELOPMENT....................................
    Joint threat warning system.................               0           4,000               0           2,000
    Special operations intelligence vehicle.....               0           5,000               0           5,000
SOF OPERATIONAL ENHANCEMENTS....................          33,799          47,604          33,799          45,599
    Advanced special warfare craft/vsv..........               0           6,000               0           6,000
    Classified program..........................               0           7,805               0           5,800
----------------------------------------------------------------------------------------------------------------

                            missile defense

       The conferees are concerned by recent evidence that the 
     theater ballistic missile threat is emerging more rapidly and 
     in a more sophisticated form than previously projected. 
     Further, the recent ballistic missile launch by North Korea 
     clearly demonstrates that longer range missiles, even 
     intercontinental class, could soon be within the reach of our 
     adversaries. Thus, world events continue to clearly validate 
     the Defense Department requirement for national missile 
     defenses as well as a mix of upper and lower tier TMD systems 
     to defend U.S. interests and forward-deployed forces.
       Testimony this year by the Chief of Naval Operations, Army 
     Chief of Staff, and Director of the Ballistic Missile Defense 
     Organization established that the department's two upper tier 
     systems, THAAD and Navy Theater Wide, are complements, not 
     substitutes, for each other. The conferees are concerned by 
     the THAAD program's failure to achieve an intercept in five 
     attempts. However, believing that additional testing is the 
     appropriate course of action, the conferees have provided 
     $445,252,000 to continue the THAAD Demonstration and 
     Validation flight test program during fiscal year 1999.
       The Navy Theater Wide program offers the capability to 
     defend a large area against the medium and longer range 
     ballistic missiles our adversaries are seeking to acquire. 
     The deployability of Navy Theater Wide systems will allow 
     this nation to respond to the theater ballistic missile 
     threat whenever and wherever required. The conferees have a 
     dedicated $338,446,000 to Navy Theater Wide development and 
     strongly urge the Department of Defense to proceed 
     aggressively with development and adequate testing.
       The conferees have also provided $950,473,000 for the 
     development of a national missile defense system. The 
     conferees are pleased that this program is now poised to make 
     critical progress given the recent NMD contract award. The 
     conferees view NMD as a national priority and place full 
     responsibility on the Department of Defense to prudently and 
     aggressively complete the technical work and testing 
     necessary for an effective national missile defense system 
     which can provide protection for all 50 states.
       The conferees also recognize the Airborne Laser as a high 
     priority and promising program for our nation's defense. The 
     program is proceeding on budget and schedule, and the 
     conferees look forward to the results of ground 
     demonstrations which will provide confidence in the 
     capability of the ABL design.


              information systems security program (issp)

       The conferees have agreed to provide a total of 
     $251,081,000 for the Information Systems Security Program 
     (ISSP); $12,000,000 over the amount proposed by both the 
     House and the Senate. In its recommendation, the House 
     included a $15,000,000 increase in a different program 
     element and directed that the funding be transferred to the 
     ISSP. The conference agreement reduces the recommended 
     increase to $12,000,000 and funds the program in the correct 
     program element, which eliminates the need for a transfer of 
     funds. The additional $12,000,000 is for a new program to 
     establish a clearinghouse for information related to the 
     protection of vital systems data as addressed in the 
     classified annex accompanying the House-passed fiscal year 
     1999 Department of Defense Appropriations bill.


                 support technologies--applied research

       The conferees urge the Department of Defense to give strong 
     consideration to the potential benefits, both military and 
     civilian offered by the EXCEL Stern Cell process. Providing 
     funding for the EXCEL program in fiscal year 1999 would ready 
     technology for clinical trials and provide the nation with a 
     new and aggressive treatment for individuals exposed to 
     weapons of mass destruction.


                            GULF WAR ILLNESS

       The conferees have provided $23,796,000 for Gulf War 
     Illness research, an increase over the budget of $4,150,000. 
     The conferees agree that within this increase, $3,000,000 may 
     be provided for research into Gulf War Syndrome that includes 
     multi-disciplinary studies of fibromyalgia, chronic fatigue 
     syndrome, multiple chemical sensitivity and the use of 
     research methods of cognitive and computational neuroscience.


                   nuclear effects testing capability

       The conferees are concerned that insufficient resources and 
     attention are being paid to ensure the continued 
     survivability of weapon platforms and supporting C3I systems 
     from the effects of a nuclear explosion, particularly in 
     light of India and Pakistan's recent nuclear testing. With 
     the termination of underground nuclear testing and the 
     emerging nuclear capability of rogue states, there is an 
     urgent national security requirement for continued above 
     ground qualification and verification testing of new and 
     upgraded military components and subsystems. The conferees 
     agree that the current industry-based Defense Threat 
     Reduction Agency X-ray simulator program should have 
     increased funding for timely development of affordable pulsed 
     power based x-ray test capabilities that were lost with the 
     cessation of underground nuclear tests and encourage the 
     Department to fund this program at adequate levels in future 
     budgets.

               Developmental Test and Evaluation, Defense

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DEVELOPMENTAL TEST & EVAL. DEFENSE:
    CENTRAL TEST AND EVALUATION INVESTMENT DEVELOPMENT......      122,169      134,669      122,169      131,669

[[Page H8715]]

 
    DEVELOPMENT TEST AND EVALUATION.........................       96,253       96,253       94,253       94,253
----------------------------------------------------------------------------------------------------------------

                 Explanation of Project Level Adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
CENTRAL TEST AND EVALUATION INVESTMENT DEVELOPMENT..........      122,169      134,669      122,169      131,669
    Airborne separation video system........................            0        9,500            0        8,000
    Roadway simulator.......................................            0        3,000            0        1,500
----------------------------------------------------------------------------------------------------------------

                 Operation Test and Evalaution, Defense

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
OPERATIONAL TEST & EVALUATION, DEFENSE:
    LIVE FIRE TESTING.......................................        9,934       19,934        9,934       18,934
----------------------------------------------------------------------------------------------------------------

                 Explanation of Project Level Adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
LIVE FIRE TESTING...........................................        9,934       19,934        9,934       18,934
    Vulnerability assessments...............................            0        4,000            0        4,000
    Modeling and simulation.................................            0        6,000            0        5,000
----------------------------------------------------------------------------------------------------------------

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Defense Working Capital Funds...............................       94,500       94,500       94,500       94,500
National Defense Sealift Fund...............................      418,166      673,366      669,566      703,366
                                                             ---------------------------------------------------
    Total, Revolving and Management Funds...................      512,666      767,866      764,066      797,866
----------------------------------------------------------------------------------------------------------------

                     Defense Working Capital Funds

       The conferees agree to provide $94,500,000 for the Defense 
     Working Capital Fund.


                           commissary funding

       In view of the Department of Defense decision to move the 
     appropriations requested in support of commissary operations 
     back into the Military Services' operation and maintenance 
     accounts, the conferees expect to see a significant 
     adjustment in the fiscal year 2000 budget request for the 
     Defense Commissary Agency (DeCA) headquarters. The conferees 
     direct the Department of Defense to report to the 
     congressional defense committees on the adjusted 
     responsibilities and purposes of the DeCA headquarters 
     organization in light of this development, no later than 
     December 1, 1998.

                     National Defense Sealift Fund

       The conferees agree to provide $708,366,000, an increase of 
     $290,200,000 to the budget request. The increase consists of 
     $251,400,000 for a Large Medium Speed Roll-on/Roll-off (LMSR) 
     ship, $28,800,000 to be transferred as specified in the House 
     bill, and $10,000,000 only for Marine Corps' maritime 
     prepositioning ship research and development.
       In fiscal year 1997, the Congress provided $250,000,000 
     above the budget as an initiative to enhance the capabilities 
     of the Maritime Prepositioning Force through procurement of 
     two ships. The Congress recognized that these ships could not 
     only significantly enhance the capability of the Marine Corps 
     during combat operations but also provide a strategic 
     national asset. In order to expedite fielding of the ships, 
     the Marine Corps chose to convert used commercial ships 
     rather than build new ones. The conferees recently discovered 
     that, as was the case in conversion of used commercial ships 
     for Army strategic sealift, the second and third MPF-E ship 
     conversions have suffered significant cost and schedule 
     difficulties. The conferees understand that the Navy issued a 
     solicitation for the third MPF-E ship, but subsequently 
     cancelled it after issues arose on the second ship. The 
     conferees further understand that the Marine Corps must now 
     divert a substantial amount of funds from the third ship to 
     finance increased costs on the second ship in order to make 
     it viable. Given the unfortunate recent events in this 
     program, the conferees have rescinded $65,000,000 from the 
     fiscal year 1997 funds for the third MPF-E ship and direct 
     the Department of the Navy to use the remaining funds for the 
     first two ships in order to keep their fielding on track. 
     Since the third ship is no longer viable, the conferees agree 
     to provide $10,000,000 only for maritime prepositioning ship 
     research and development to begin work on design of a new-
     construction ship to meet MPF-2010 requirements. The 
     conferees suggest that the CVN-77 ``transition-ship'' model, 
     to bridge from the capabilities of current MPF sealift ships 
     to the objective future configuration, should be considered. 
     The conferees direct the Secretary of Defense to develop and 
     budget for a new-construction maritime prepositioning ship 
     program and to report by February 1, 1999 to the 
     congressional defense committees on how technical issues in 
     the MPF-E conversion program will be resolved and the new-
     construction program implemented.
       The conferees also agree to rescind funding appropriated in 
     fiscal year 1996 for the National Defense Features (NDF) 
     program by $20,000,000 because of serious funding shortages. 
     The conferees continue to believe that the NDF program would 
     provide great benefits to the defense sealift capabilities of 
     the nation. Therefore, the conferees direct that the 
     remaining $20,000,000 funding be available only for the NDF 
     program and that no funds may be reprogrammed from this 
     program without the approval of the Committees on 
     Appropriations.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

       The conferees agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Defense Health..................................      10,055,822      10,127,622      10,337,322      10,149,872
Chemical Agents and Munitions Destruction, Army.         855,100         796,100         780,150         780,150
Drug Interdiction and Counter-Drug Activities,           727,582         764,595         742,582         735,582
 Defense........................................
Office of the Inspector General.................         132,064         132,064         132,064         132,064
                                                 ---------------------------------------------------------------
      Total, Other Department of Defense              11,770,568      11,820,381      11,992,118      11,797,668
       Programs.................................
----------------------------------------------------------------------------------------------------------------


[[Page H8716]]

                         Defense Health Program


                 explanation of project level adjustments

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference
----------------------------------------------------------------------------------------------------------------
Epideremolysis Bullosa.......................               0           1,000                0            1,000
Lyme Disease.................................               0               0          [3,000]          [3,000]
Brain Injury.................................               0           1,500                0            1,500
Breast Cancer................................               0          25,000                0         [25,000]
Molecular Genetics...........................               0           4,000                0            3,000
Nervous System Studies.......................               0           5,000                0            4,000
Ovarian Cancer...............................               0          10,000                0           10,000
Personel Identification Carrier..............               0           7,300                0            5,000
Post Polio...................................               0           1,000                0            1,000
POW Studies..................................               0           1,000                0              750
Prostate Cancer Research.....................               0          10,000                0                0
Non-invasive Prostate/Coronary Reversal......               0          (2,500)               0          [2,500]
Proton Beam..................................               0           6,000                0            4,000
Air Force Research Laboratory................               0               0          (11,000)         (11,000)
Alaska Federal Healthcare Partnership........               0               0            1,900            1,900
Brown Tree Snakes............................               0               0            1,000            1,000
Cancer Control Program.......................               0               0            5,600            5,600
Center for Disaster Management...............               0               0            [760]            [760]
Disaster Management Training.................               0               0            5,000            5,000
Graduate School of Nursing...................               0               0            2,300            2,300
Military Health Services Information                        0               0           10,000            8,500
 Management..................................
Military Nursing Programs....................               0               0            5,000            5,000
Pacific Island Health Care...................               0               0            5,000            5,000
PACMEDNET....................................               0               0           10,000           10,000
Uniformed Services University of Health                     0               0          [8,310]          [8,310]
 Sciences....................................
Medical Research and Development.............               0               0          250,000           19,500
USTF reduction...............................               0               0          -14,300                0
----------------------------------------------------------------------------------------------------------------

                               pacmednet

       The conferees have provided $10,000,000 to continue this 
     activity, including implementation of automated clinical 
     practice guidelines and outcome management on an individual, 
     as well as a population, basis.


                      medical research activities

       Within the Defense Health Program, the conferees provide an 
     additional $19,500,000 for medical research activities 
     conducted by the Department. The funds are to be used for 
     research that focuses on issues pertinent to our military 
     forces.
       Such efforts would include: alcoholism research; sleep 
     management; chemical weapons treatment; disease management; 
     healthcare information protection; lung research; laser eye 
     injury/eye cancer research and treatment; mustard gas 
     anecdote; prostate diagnostic imaging; retinal display 
     technology for cardiovascular research; smoking cessation; 
     neurological examination equipment; digital mammography; 
     Paget's disease; and pediatric asthma. The conferees direct 
     the Deputy Secretary of Defense to work with the Surgeons 
     General of the Services to establish a medical research 
     program that satisfies military objectives in this area.


                 ablatable disc laser vision correction

       The conferees are aware of the successful clinical trials 
     involving laser vision correction technology and believe this 
     could have the potential to enhance the combat effectiveness, 
     especially in critical night operations, for nearsighted 
     military personnel. The conferees therefore encourage the 
     Department to determine the cost-effectiveness, utility and 
     desirability of ablatable disc laser vision correction 
     technology for military personnel.


                           smoking cessation

       The conferees agree that not later than 60 days after 
     enactment, effective tobacco cessation products and 
     counseling may be provided for members of the Armed Forces 
     (including retired members), former members of the Armed 
     Forces entitled to retired or retainer pay and dependents of 
     such members and former members who are identified as likely 
     to benefit from such assistance in a manner that does not 
     impose costs on the individual.


                       chronic disease management

       The conferees strongly request that the Department conduct 
     a study of chronic disease management and the provision of 
     comprehensive care for chronically ill patients outside the 
     hospital emergency room. The conferees believe that such a 
     study may result in a reduction in the number of emergency 
     room visits for chronically ill patients and therefore has 
     the potential to provide savings and a better quality of 
     life.


                          dental care policies

       The conferees direct the Secretary of Defense to prepare 
     and submit a report regarding the policies, practices and 
     experience of the uniformed services pertaining to the 
     provision of dental care to dependents, 18 years of age and 
     younger, of active duty members of the uniformed services to 
     the defense congressional oversight committees not later than 
     March 15, 1999.


                         improving patient care

       The conferees are encouraged by Department of Defense 
     efforts to reengineer medical care in accordance with Program 
     Decision Memorandum (PDM) number 1, directed by the Under 
     Secretary of Defense for Personnel and Readiness, the 
     Director of Program Analysis and Evaluation and the Surgeons 
     General. This initiative should improve inpatient and out-
     patient care in several major urban centers and provide for 
     greater efficiency in the Military Health System. The 
     conferees strongly urge the Department to continue such 
     reengineering efforts and direct the Department to provide a 
     report to the congressional defense committees on subsequent 
     initiatives to accomplish these goals by February 15, 1999.


                            gallo institute

       The conferees strongly support the comprehensive efforts of 
     the Cancer Institute of New Jersey and commend the work of 
     the Gallo Institute to address prostate cancer.

            Chemical Agents and Munitions Destruction, Army

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
   CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY
CHEM DEMILITARIZATION--O&M.....................      531,650      508,650      491,700  ...........      491,700
CHEM DEMILITARIZATION--PROC....................      140,670      124,670      115,670  ...........      115,670
CHEM DEMILITARIZATION--RDTE....................      182,780      162,780      172,780  ...........      172,780
----------------------------------------------------------------------------------------------------------------

         Drug Interdiction and Counter-drug Activities, Defense

       The conference agreement is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Educate America's youth.........................          12,830          13,730          12,830          13,730
    Young Marines...............................             500           1,400             500           1,400
Increase safety of Citizens.....................          86,669         112,069         106,669         121,869
    Indiana HIDTA...............................               0             500               0           1,000
    Gulf States Counter-drug Initiative C31.....           1,147          10,147           8,147          10,147
    Gulf States Counter-drug Initiative RCTA....           2,209           3,209               0           3,809
    Multi-Jurisdictional Counter-drug Task Force           2,007           6,207               0           6,207
    C-26 Aircraft Photo Reconnaissance Upgrade..               0           5,500               0           5,000
    Marijuana Eradication/Guard Counter-drug                   0           5,200           6,000           7,400
     Activities.................................
        Kentucky................................               0           5,200           3,800           5,200
        Hawaii..................................               0               0           2,200           2,200

[[Page H8717]]

 
    Northeast Counterdrug Training Center.......               0               0           2,000           2,000
    Counternarcotics Center at Hammer, WA.......               0               0           5,000           5,000
Reduce health and social costs..................          72,936          72,936          72,936          72,936
Shield America's frontiers......................         301,334         325,334         329,334         306,334
    National Guard Cargo/Mail Inspection........          29,000               0          29,000               0
    National Guard General Support..............         118,620         158,620         138,620         147,620
    Southwest Border Fence......................               0           5,000               0           3,000
    Caribean/eastern Pacific Surface                       8,500          12,500          16,500           8,500
     Interdiction...............................
    Southwest Border Information Systems........               0           4,000               0           2,000
Break drug sources of supply....................         253,813         240,526         220,813         220,713
    Southern Air Force Counter-drug Support.....          26,416           7,416          26,416          22,416
    Joint Interagency Task Force South..........          23,063           7,663           6,063           6,063
    Operation Caper Focus.......................               0          10,500               0               0
    Civil Air Patrol............................           1,187           3,800           1,187           1,187
    SOUTHCOM Observation/Spray Aircraft.........               0           8,000               0               0
    Ground-based End Game--SOUTHCOM.............          27,660          27,660          17,660          23,660
    Ground-based End Game--Mexico...............          16,000          16,000          10,000           7,900
                                                 ---------------------------------------------------------------
      Total.....................................         727,582         764,595         742,582         735,582
----------------------------------------------------------------------------------------------------------------

                   caribbean counter-drug enhancement

       The conferees direct that up to $8,500,000 may be made 
     available to support restoration of enhanced counter-
     narcotics operations around the island of Hispaniola, for 
     procurement of 2 Schweizer observation/spray aircraft, and 
     for upgrades for 3 UH-1N helicopters for Colombia.

                    Office of the Inspector General

       The conferees agree to provide $132,064,000 for the Office 
     of the Inspector General. Of this amount, $130,764,000 shall 
     be for operation and maintenance activities and $1,300,000 
     shall be for procurement.

                      TITLE VII--RELATED AGENCIES

       The conferees agree to the following amounts for Related 
     Agencies:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference
----------------------------------------------------------------------------------------------------------------
Intelligence Community Management Account.......         138,623         136,123         134,623         129,123
Central Intelligence Agency Retirement and               201,500         201,500         201,500         201,500
 Disability System Fund.........................
Payment to Kaho'olawe Island Conveyance,                  15,000          15,000          25,000          25,000
 Remediation, and Environmental Restoration
 Trust Fund.....................................
National Security Education Trust Fund..........           5,000           3,000           3,000           3,000
----------------------------------------------------------------------------------------------------------------

               intelligence community management account

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

                     TITLE VIII--GENERAL PROVISIONS

       The conference agreement incorporates general provisions of 
     the House and Senate versions of the bill which were not 
     amended. Those general provisions that were amended in 
     conference follow:
       The conferees included a general provision (Section 8005) 
     which amends language concerning transfer authority.
       The conferees included a general provision (Section 8014) 
     which amends language requiring the Department of Defense to 
     report to the Congress on contracting out Department of 
     Defense functions performed by ten or more Department of 
     Defense personnel.
       The conferees included a general provision (Section 8033) 
     which amends House language to earmark funds for the Civil 
     Air Patrol.
       The conferees included a general provision (Section 8034) 
     governing the activities of defense federally funded research 
     and development centers (FFRDCs).
       The conferees included a general provision (Section 8056) 
     which amends Senate language authorizing intelligence 
     activities.
       The conferees included a general provision (Section 8058) 
     which amends language recommending rescissions. The 
     rescissions are:


                                                             Conference
Fiscal year 1988:
  Shipbuilding and Conversion, Navy: Excess funds..........-$19,431,327
Fiscal year 1989:
  Shipbuilding and Conversion, Navy: Excess funds...........-17,407,490
Fiscal year 1990:
  Shipbuilding and Conversion, Navy: Excess funds...........-18,974,163
Fiscal year 1991:
  Shipbuilding and Conversion, Navy: Excess funds............-1,819,438
Fiscal year 1992:
  Shipbuilding and Conversion, Navy: Excess funds............-3,307,524
Fiscal year 1993:
  Shipbuilding and Conversion, Navy: Excess funds............-4,540,746
Fiscal year 1997:
  Research, Development, Test and Evaluation, Defense-wide: -67,000,000
  Missile Procurement, Air Force: Classified program.........-8,000,000
Fiscal year 1998:
  Missile Procurement, Army: EFOGM..........................-12,800,000
  Procurement of Weapons and Tracked Combat Vehicles, Army: M-6,700,000
  Other Procurement, Army: NATO AGS.........................-24,000,000
  Shipbuilding and Conversion, Navy: CVN Refueling..........-35,000,000
  Weapons Procurement, Navy: MA-31 target delay..............-2,000,000
                                               Other Procurement, Navy:
    NULKA decoy delay.......................................-15,000,000
    WLQ-4 cancelled requirements.............................-1,500,000
    Type 8B Mod 3 periscopes, cancelled requirement..........-3,000,000
    Other Navigation Equipment, contract savings.............-1,700,000
    Pollution Control Equipment, decommissioned ships........-3,600,000
    Other training equipment, BFTT contract savings..........-1,400,000
    AN/SQQ-62 sonobouy, contract savings.....................-2,300,000
                                                       ________________
                                                       
      Subtotal..............................................-28,500,000
                                                       ================

  Procurement of Ammunition, Navy and Marine Corps: JDAM....-12,560,000
  Aircraft Procurement, Air Force: F-15 Advance Procurement..-8,934,000
  Missile Procurement, Air Force: Classified program.........-4,200,000
  Procurement of Ammunition, Air Force: JDAM................-14,106,000
  Other Procurement, Air Force: Classified program...........-3,508,000
                      Research, Development, Test and Evaluation, Navy:
    NATO R&D, Vector.........................................-3,000,000
    Navigation/ID systems....................................-1,000,000
    Lightweight torpedo, contract savings....................-1,500,000
    High Power Discriminator................................-15,000,000
                                                       ________________
                                                       
      Subtotal..............................................-20,500,000
                                                       ================

                 Research, Development, Test and Evaluation, Air Force:
    Terminated AAIS program..................................-3,200,000
    NATO JSTARS..............................................-7,000,000
    Classified program.......................................-7,420,000
                                                       ________________
                                                       
      Subtotal..............................................-17,620,000
                                                       ================

                                         National Defense Sealift Fund:
    Defense features........................................-20,000,000
    MPF-E third ship program delay..........................-65,000,000
       The conferees included a general provision (Section 8080) 
     which amends House language making funds available for 
     Reserve peacetime support to active duty and civilian 
     activities.

[[Page H8718]]

       The conferees included a general provision (Section 8083) 
     which amends a Senate provision transferring funds to cover 
     unanticipated shipbulding cost increases.
       The conferees included a general provision (Section 8090) 
     which amends House language regarding the use of refunds from 
     Government travel cards.
       The conferees included a general provision (Section 8095) 
     which amends a Senate provision requiring the Department of 
     Defense to identify costs incurred by the Department of 
     Defense to support the North Atlantic Treaty Organization.
       The conferees included a general provision (Section 8099) 
     which amends Senate language concerning reciprocal trade 
     agreements and the condition under which the Secretary of 
     Defense may issue waivers to the Buy America Act.
       The conferees included a general provision (Section 8101) 
     to provide permanent clarification of the application of the 
     ``Brooks Act'' qualifications based selection (QBS) process 
     to surveying, mapping, charting and geodesy contracts of the 
     National Imagery and Mapping Agency (NIMA). The conferees 
     expect the officials responsible for the Federal Acquisition 
     Regulations (FAR) to strike and revise the last sentence of 
     section 36.601-4(a)(4) of the FAR (48CFR 36.601-4(a)(4)) to 
     define ``Surveying and mapping'' in such a manner as to 
     include contracts and subcontracts for services for Federal 
     agencies for collecting, storing, retrieving, or 
     disseminating graphical or digital data depicting natural or 
     man made physical features, phenomena and boundaries of the 
     earth and any information related thereto, including but not 
     limited to surveys, maps, charts, remote sensing data and 
     images and aerial photographic services.
       The conferees have included a general provision (Section 
     8105) which amends Senate language reducing funds available 
     to the Department of Defense by $70,000,000 for efficiencies 
     realized as a result of the Defense Reform Initiative.
       The conferees included a general provision (Section 8106) 
     which amends House language requiring the Secretary of 
     Defense to submit an in-depths analysis of any proposed 
     establishment or expansion of depot facilities by the Reserve 
     components.
       The conferees included a general provision (Section 8109) 
     which amends Senate language on National Defense Stockpile 
     Asset sales.
       The conferees included a general provision (Section 8110) 
     which amends House language related to the transfer of 
     specific ships under certain conditions.
       The conferees included a general provision (Section 8114) 
     which amends House language regarding the Cavalese, Italy 
     accident.
       The conferees included a general provision (Section 8115) 
     which amends Senate language regarding limitations on 
     deployment of United States forces to Yugoslavia, Albania, or 
     Macedonia.
       The conferees included a general provision (Section 8116) 
     which amends House language prohibiting the expenditure of 
     funds on developing or modernizing any information technology 
     or national security system until that system has been 
     independently certified as Year 2000 compliant.
       The conferees included a general provision (Section 8117) 
     which amends House language requiring the Department to 
     include Year 2000 simulations as part of their major military 
     exercises.
       The conferees remain concerned about the progress the 
     Department is making in bringing its systems into Year 2000 
     compliance. However, the conferees are encouraged by the 
     actions outlined in recent letters from the Secretary of 
     Defense and Deputy Secretary of Defense regarding Year 2000 
     compliance. The conferees believe a strong and sustained 
     effort by the Department is critical to minimizing the risk.
       The conferees included a general provision (Section 8119) 
     which amends Senate language requesting a report on the need 
     for food stamp assistance by military families.
       The conferees included a general provision (Section 8120) 
     which amends House language prohibiting the Department from 
     contracting with the People's Republic of China (PRC) or the 
     People's Liberation Army of the PRC.
       The conferees included a general provision Section 8124) 
     which amends Senate language regarding a vessel scrapping 
     pilot program.
       The conferees included a general provision (Section 8125) 
     which amends Senate language providing funds for work 
     performed at Fort Wainwright, Alaska.
       The conferees included a general provision (Section 8128) 
     which amends Senate language to express a sense of Congress 
     regarding the use of child soldiers in armed conflicts.
       The conferees included a new general provision (Section 
     8131) which waives limitations on expenditures for the 
     National Guard Youth ChalleNGe Program for fiscal year 1999.
       The conferees included a new general provision (Section 
     8132) which allows the Air Force to convey surplus 
     relocatable shelters.
       The conferees included a new general provision (Section 
     8133) which amends Senate language regarding the donation of 
     surplus dental equipment to Indian Health Service facilities.
       The conferees included a new general provision (Section 
     8134), reducing funds in Title III, Procurement, by 
     $142,100,000. The House had recommended reducing the budget 
     request by $142,100,000 in Title II, Operation and 
     Maintenance, in order to reduce total funding requested for 
     advisory and assistance services. The conferees have instead 
     agreed to levy a $142,100,000 reduction against Title III.
       The conferees included a new general provision (Section 
     8135) which reduces funding available for the Military 
     Personnel and Operation and Maintenance accounts by 
     $193,600,000 due to foreign currency fluctuation.
       The conferees included a new general provision (Section 
     8136) which reduces funding available for the Operation and 
     Maintenance accounts by $502,000,000 due to declining prices 
     for bulk fuel.
       The conferees included a new general provision (Section 
     8137) concerning the Global Positioning System. Section 8137 
     requires the Secretary of Defense to develop strategy to 
     protect the integrity of the GPS frequency spectrum against 
     interference and disruption. The conferees expect this 
     strategy to be devised with the support of the Secretaries of 
     State, Commerce, and Transportation, the director of the 
     Office of Science and Technology Policy, and interested user 
     and industry representatives. The required report shall 
     include plans for collection and analysis of test and 
     demonstration data to be completed in time for presentation 
     by the United States at the World Radiocommunications 
     Conference 2000. The report shall also include 
     recommendations for additional filings for both space-based 
     and ground-based services, as appropriate, to meet civil 
     safety-of-life applications within existing international 
     spectrum bands allocated for radionavigation satellite 
     operations.
       The conferees included a new general provision (Section 
     8138) which requires the Secretary of Defense to submit a 
     report regarding military deployment rates for each service.
       The conferees have included a general provision (Section 
     8139) which amends Senate language directing the Secretary of 
     the Air Force to convey property at the former Pease Air 
     Force Base to the Town of Newington, New Hampshire.
       The conferees have included a new general provision 
     (Section 8142) which allows the Secretary of Defense to 
     retain family housing at Fort Buchanan, Puerto Rico.
       The conferees have included a new general provision 
     (Section 8143) which allows the Secretary of the Navy to 
     convey the Magnolia housing area to the City of Seattle, 
     Washington.
       The conferees have included a new general provision 
     (Section 8144) which conveys an Army Reserve Center in 
     Reading, Pennsylvania to the City of Reading, Pennsylvania.
       The conferees have included a new general provision 
     (Section 8145) which directs the Secretary of the Air Force 
     to obligate up to $7,646,000 of previously appropriated funds 
     for demolition and related environmental restoration of 31 
     buildings at the former Norton Air Force Base, California. 
     Sufficient funds remain available for obligational 
     adjustments within ``Base Realignment and Closure Account, 
     Part I'' to absorb this cost within existing balances in the 
     Base Realignment and Closure Accounts.
       The conferees have included a new general provision 
     (Section 8146) which establishes a cash objective and policy 
     for unbudgeted operating losses in the Defense Working 
     Capital Funds.
       The conferees have included a new general provision 
     (Section 8147) which addresses the Military Personnel 
     Information Systems. The conferees concur in the direction in 
     the House Report regarding military personnel information 
     systems and the revised Defense Integrated Military Human 
     Resources System (DIMHRS). Section 8147 establishes a revised 
     DIMHRS program, a defense reform initiative enterprise pilot 
     program for military and manpower personnel information 
     systems. Manpower and personnel information systems shall 
     include, but not be limited to, personnel, manpower, 
     training, and compensation. Health and dependent systems 
     should only be included for interoperability and coordination 
     purposes. The conferees have provided the budget request for 
     DIMHRS and the Navy Standard Integrated Personnel System 
     (NSIPS) and direct that DIMHRS funding be used for the 
     revised DIMHRS enterprise level pilot program. The conferees 
     direct DoD to provide full funding for this revised program 
     in future budget requests and defense plans. The conferees 
     have provided an additional $38,000,000 in Operation and 
     Maintenance, Defense-Wide and $12,000,000 in Procurement, 
     Defense-Wide and direct these funds be obligated as directed 
     in the House Report.
       The Department shall identify, develop and approve 
     strategic functional requirements for the current and revised 
     enterprise DIMHRS program through the Under Secretary of 
     Defense for Personnel and Readiness, and in full coordination 
     with the individual services and Joint Chiefs, no later than 
     nine months from the date of enactment of this Act. The DoD 
     Chief Information Officer and Director, Program Analysis and 
     Evaluation, shall establish and incorporate into the budget 
     process mission performance goals and measures and identify 
     functional savings resulting from business process 
     improvements. The Department shall identify changes to the 
     planning, programming, and budgeting system needed to 
     implement the revised DIMHRS enterprise solution including, 
     but not limited to, instituting program elements and activity 
     based costing for this enterprise solution. The conferees 
     direct that configuration management and budget oversight of 
     all manpower and personnel legacy systems be centralized with 
     day to day

[[Page H8719]]

     operational management remaining with the services. The 
     Department shall provide a report to the Appropriations 
     Committees by May 1, 1999 on the revised enterprise DIMHRS, 
     and how the revised program, budget changes and business 
     process improvement changes comply with Appropriations 
     Committee direction and with Public Laws 104-106 and 103-62.
       The conferees included a new general provision (Section 
     8148) regarding a review of military compensation. The 
     conferees are deeply concerned with the increasing demands 
     placed on our military personnel, which affect the ability to 
     recruit and retain the highly skilled personnel needed to 
     maintain the all-volunteer force. Operating tempos, 
     particularly for those forces deployed in support of 
     contingency operations, are at historic high rates at the 
     same time force structure has been reduced. People are 
     working harder and under more challenging circumstances. At 
     the same time, outside employment opportunities for highly 
     skilled military personnel, especially in certain career 
     fields, are readily available due to the nation's prolonged 
     period of economic prosperity. In this environment, while 
     none of our military personnel serve for financial 
     advancement, we should not expect them to serve and suffer 
     financial hardship.
       These competing demands are being compounded by a 
     widespread perception within the force that there has been, 
     and will continue to be, a steady erosion in those programs 
     associated with military compensation and benefits. For 
     example, the conferees note that while the Administration has 
     in recent years proposed increases in pay rates consistent 
     with existing legal limits, those increases have not reversed 
     the gap between military and private compensation. Of even 
     more concern, it is becoming steadily more apparent that the 
     changes in the military retirement system enacted in 1986 are 
     having a direct impact on the services' reenlistment rates, 
     and have raised fundamental questions of equity between those 
     service members who are under the previously established 
     retirement structure and those who have joined the force 
     since 1986. Finally, the conferees continue to observe 
     persistent problems in other programs intended to provide for 
     an adequate quality of life for service members and their 
     families, including medical care, housing programs, and 
     family support programs. The conferees are convinced that 
     these problems, coupled with the high level of demands being 
     placed on the force and the effects of a healthy economy, are 
     directly responsible for the emergence of downward trends in 
     recruiting and retention of personnel. If these interweaving 
     issues are not dealt with soon, and in a meaningful manner, 
     the conferees fear it could inevitably result in a dramatic 
     decline in the capability of the nation's armed forces.
       The conferees believe that a long-term solution to these 
     issues cannot be found by simply focusing on one aspect of 
     these problems, such as pay or retirement, in isolation from 
     the others. The complexity of these issues requires a more 
     broad approach if the Department of Defense is to truly 
     address the new and different demands confronting the 
     military force of the future. Therefore, in Section 8148, the 
     conferees direct the Secretary of Defense, in consultation 
     with the nation's senior military leadership, to undertake a 
     comprehensive reassessment of the array of existing 
     compensation and benefit programs, and the need, if any, for 
     changes in these programs in order to meet both future 
     manpower and quality of life requirements. The conferees 
     intend that this effort provide the underpinning for a total 
     review of these programs and issues by both the executive and 
     legislative branches as soon as possible, and therefore 
     direct that the Secretary provide an interim report on these 
     issues to the congressional defense committees within 60 days 
     of the enactment of the fiscal year 1999 Department of 
     Defense Appropriations Act. In order to provide for full 
     consideration of these matters in the next Congress, the 
     Secretary is also directed to provide his recommendations on 
     these issues to the Congress in conjunction with submission 
     of the fiscal year 2000 budget request.


                   Conference total--with Comparisons

       The total new budget (obligational) authority for the 
     fiscal year 1999 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 1998 amount, the 1999 
     budget estimates, and the House and Senate bills for 1999 
     follow:

New budget (obligational) authority, fiscal year 1998..$247,708,522,000
Budget estimates of new (obligational) authority, fiscal250,998,803,000
House bill, fiscal year 1999............................250,727,097,000
Senate bill, fiscal year 1999...........................250,518,092,000
Conference agreement, fiscal year 1999..................250,510,548,312
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 1998..+2,802,026,312
  Budget estimates of new (obligational) authority, fiscal -488,254,688
  House bill, fiscal year 1999.............................-216,548,688
  Senate bill, fiscal year 1999..............................-7,543,688
     Bill Young,
     Joe McDade,
     Jerry Lewis,
     Joe Skeen,
     David L. Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Ernest J. Istook, Jr.,
     Randy ``Duke'' Cunningham,
     Bob Livingston,
     John P. Murtha,
     Norman D. Dicks,
     W.G. (Bill) Hefner,
     Martin Olav Sabo,
     Julian C. Dixon,
     Peter J. Visclosky,
                                Managers on the Part of the House.

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

                          ____________________